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Home My WebLink AboutCOW 2004-10-11 Item 4C - Lease Offer - Land for Sound Transit Link Light Rail (Duwamish Riverbend Hill) COUNCIL AGENDA SYNOPSIS k J 'l-,,.� ys 2', Initials ITEM NO. �14,��1 Meetinj Date 1 Prepared by 1 Mayor's review 1 Council review 1 t �.i� o 1 10/11/04 1 BF 1 v L 17. H 1 N rte` 1 1 r �'p'w_ I I 1 1 1-11 r 1 1 1 1 C I I 1 I ITEM INFORMATION 1 CAS NUMBER: 04-140 I ORIGINAL AGENDA DATE: OCTOBER 11, 2004 AGENDA ITEM TITLE Sound Transit Lease Offer CATEGORY X Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date10/ 11/ 04 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Aden Svcs DCD ❑Finance Fire Legal X P&R Police P1F SPONSOR'S Sound Transit has submitted a land lease offer to the City for their Central Link Light SUMMARY Rail Project. The lease is for the flat area of the Duwamish Riverbend Hill property for a construction staging area. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. X Parks Comm. Planning Comm. DATE: 9/15/04 (Parks Cmsn); 9/28/04 (CA &P) RECOMMENDATIONS: SPONSOR /ADMIN. Send to full Council for further discussion COMMIT rEE Same as Sponsor I COST IMPACT FUND SOURCEI EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED 8233,800.00 Fund Source: Comments: The appropriation is revenue to the city for park development. MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 10/11/04 Memo from Bruce Fletcher dated 9/23/04 Sound Transit Lease Offer dated 6/1/04 I CAP minutes dated 9/28/04 I Parks and Recreation Department Bruce Fletcher, Director MEMORANDUM TO: Steve Mullet, Mayor Community Affairs and Parks Committee FROM: Bruce Fletcher, Director, Parks and Recreation ~- CC: Rhonda Berry, City Administrator Jim Morrow, Director, Public Works ~ Steve Lancaster, Director, Community Development DATE: September 23, 2004 SUBJECT: Sound Transit Lease Offer Sound Transit has submitted a land lease offer to the City of Tukwila for their Central Link light rail project. In the lease, Sound Transit would like to use the flat area of the Duwamish Riverbenc~ Hill property (141,060 square feet of land) for their construction staging area. The lease terms are for 24 months with an option to extend the original term for one year. Based upon the fair market value determined in the appraisal, Sound Transit has offered a total of $233,800.00 for the 24-month lease pnce. The optional lease extension would be an additional $9,741.66 per month. If acceptable to the City Council, the leased funds would be used for park development at the staging area location. The cost estimate for park construction is between $500,000 and $600 000 and all remaining funds will be secured through grant applications. The Parks and Recreation Department, the Tukwila Parks Commission, Cascade Land Conservancy and members of the Duwamish Riverbend Hill Friends support the proposed lease with Sound Transit. The Parks Department would like to further discuss the proposed lease and make the following recommendations: · Hire an independent Real Estate Appraiser to determine the fair market value of the land. · Require a final termination date on the lease contract. · Require Sound Transit to leave a clean site, which includes passing an environmental assessment at their expense. · Allow volunteer and park staff access to the Hill during the entire lease agreement. · Allow the City to approve all construction materials delivered to and stored at the staging area, · Follow all applicable City rules and regulations on the property. It is the hope of the Parks and Recreation Department to further discuss this proposed land lease with the Community Affairs and Parks Committee, and forward it to the next COW Council meeting. Chair John Ladenburg Pierce County Executive OFFER TO LEASE Vice Chairs June I, 2004 Return Receipt Greg Nickels Seattle Mayor Mark Olson Bruce Fletcher, Director Everett Councihnember Tukwila Parks and Recereation Department 12424 42nd Avenue S. Tukwila, WA 98168 Fred Butler lssaquah Deputy Council President Re: Regional Transit Authority - Sound Transit Central Link Light Rail Project Jack Crawford Parcel No: 1023049057 Kenmore Councilmember R/W No: TUK-026.1 David Enslow Sumner Councilmember Dear Mr. Fletcher: Doug MacDonald Sound Transit is proceeding with the initial segment of the Central Link light rail Washington State Department project. In order to begin operating Link by 2009, light rail construction is of Transportation Secretary scheduled to begin within the Tnkwila Segment in 2005. As the owner of an affected parcel, we are notifying you that a portion of your property will need to Connie Marshall be acquired in advance of construction. Bellevue Mayor Richard McIver A qualified appraiser and review apprmser have examined and carefully Seattle Councilmember considered all the elements of the property to establish its Fair Market Value and consequent Just Compensation. Based upon the Fair Market Value determined in JuliaPatterson the appraisal, please consider this letter Sound Transit's formal offer to Lease for King County Councilmenlbet a total of $233,800.00. Dwight Pelz This offer consists of $233,800.00 for 141,060 square feet of land, as identified in King County Councilmember the attached Lease. Sound Transit is offering to pay you in advance for the Lease Kevin Phelps based upon an estimated use period of twenty four (24) months. ~ the event, tacoma Councibnember Sound Transit needs to use your property for more than a total of twenty four (24) months, Sound Transit will pay $9,741.66 per mouth for each additional month's Dm'y Phillips use. The Lease is required for a construction staging area. Chair, King County Council Aaron Reardon Please take the time to consider the merits of Sound Transit's offer. You may Snohomish County Executive wish to employ professional services to independently evaluate this offer. Sound Transit will reimburse up to $5,000.00 of reasonable and actual costs to engage a ~on sims qualified real estate apprmser, provided you submit the actual bills or paid King CountyExecutive receipts for these costs. Claudia Thomas Lakewood Councilmember Pete yon Reichbauar Central Puget Sound ~ice Chair, King County R~s[onal lransit Authority Council Union Station / 401 S. Ja¢l~son St. Scathe, WA 98104-2826 Reception (206) 398-5000 Chief Executive Officer Facsimite (206) 398.5499 Joni Earl Page 2 R/W No.: TUK026.1 The receipt below is for file documentation that you regeived this offer and does not in any way indicate your acceptance. Please sign the receipt and return it using the enclosed prepaid postage envelope. If we can provide additional information to assist you in reaching a decision, please feel free to direct any questions you may have to Erie Kuehl, Acquisition Agent at (206) 623-1633. We look forward to working with you and to making this project a success for you, Sound Transit and the public. Si.ncere3y, . --,u/~' Scott Kirkpatrick Real Estate Program Manger List of Attached Documents: Lease Also Enclosed: Appraisal Cc: Michelle Connor, Cascade Land Conservancy Receipt of this letter is hereby acknowledged. Signature does not mean[ acceptance of this offer. I By: Date: ~OUNDTRAN$1T Link Segment: 750 R/W and Parcel Nos. TUK026.1 1023049057 Landlord: City of Tukwila LEASE AGREEMENT 1. Parties. This Lease, dated for reference purposes as of June ,2004, is be- tween the City of Tukwila ("Landlord"), and Central Puget Sound Regional Transit Authority, a regional transit authority organized under Washington law ("Tenant"). 2. Lease. Landlord hereby leases to Tenant. and Tenant hereby leases from Land- lord, the Premises hereinafter described, subject to the terms, conditions, covenants, and condi- tions hereinafter set forth. 3. Premises. As used in this Lease, a reference to "Premises" is to the land legally described on Exhibit "A" attached hereto and incorporated by this reference, together with any improvements located on the Premises. 4. Term. 4.1 Initial Term. The term of this Lease is two years. The lease shall com- mence upon initiation of Tenant's construction activities, but no sooner than March 1, 2005 and shall remain in force for 24 months (the "Term"). Tenant shall provide fourteen (14) days written notice to the Landlord prior to commencement of the lease term. 4.2 Option to Extend. The Tenant shall have the option to extend the original term of this Lease for a period' of up to one additional year on the same terms and conditions as this Lease, except for the payment of rent. After the exercise of the option to extend, all refer- ences in this Lease to the term shall be considered to mean the term as extended, and all refer- ences to termination or to the end of the term shall be considered to mean the termination or end of the term as extended. The Tenant's right to exercise the option to extend is subject to the fol- lowing conditions precedent: 4.2.1 The Lease shall be in effect at the time notice 9f exercise is given and on the last day of the prior term. 4.2.2 The Tenant shall not be in default under any material provision of this Lease at the time notice of exercise is given or at the time the renewal term is to commence; pro- vided that a party shall not be deemed to be in default unless the other party has notified that party in writing of the claimed breach and the period provided by this Lease for curing such de- fault has expired. 4.2.3 Compliance with the following proce'dure for exercising options: 4.2.3.1 At least thirty (30) days before the last day of the initial term, the Tenant shall give the Landlord notice in writing irrevocably exercising the option. Such no- tice shall include the period of time for which the Tenant is exercising the option (e.g., one month, six weeks, the full one year). 5. Use. Beginning on the Lease Commencement Date, Tenant may use the Promises for the purpose of storage and staging of personnel, materials and equipment related to construc- tion of its rapid transit facilities to be located in the vicinity of the Premises, and for activities related thereto, but for no other purpose without the prior written consent of Landlord, which Landlord may grantor deny, in Landlord's unfettered discretion. Tenant's use and occupancy of the Premises shall at all times be in full compliance with applicable laws and regulations, and any cost of compliance shall be borne by Tenant. 6. Rent. 6.1 Initial Term. Prior to the lease commencement date, Tenant shall pay Landlord a sum of Two Hundred Thirty Three Thousand Eight Hundred Dollars ($233,800.00) as full rent for the initial term. No additional base monthly or periodic rent shall be payable during the initial term hereof. 6.2 Extension Term. The rent for an extension term as to which the Tenant has validly exercised an extension option shall be the sum of Nine Thousand Seven Hundred Forty One & 66/100 Dollars ($9,741.66) per month, prorated for the period of the extension exercised, payable on the first day of the extension term and on the first day of the calendar month thereafter. In the event Tenant exercises its extension option for a period that includes a partial calendar month, rent shall be pro-rated for that partial month. 7. Removal of Improvements and Personal Property. Landlord shall remove all personal property located on the Premises before the Lease Commencement Date. In the event Landlord has not removed such personal property when Tenant takes possession of the Premises, Tenant shall have the right to remove and dispose of such personal property at Landlord's ex- pense. Landlord shall pay the cost of such removal to Tenant within thirty (30) days of receiving an invoice for such costs. 8. Taxes and Assessments. Landlord shall pay all real and personal property taxes, general and special assessments, and other charges of every description levied on or assessed against the Premises, improvements located on the Premises, personal property located on or in the land or improvements, or the leasehold estate, to the full extent of installments falling due during the term of this Lease, except for personal property taxes chargeable against Tenant, which shall be the responsibility of the Tenant. 9. Hazardous Substances. Tenant shall not bring to or keep on the Premises, or suffer or permit others to do so, any substance which is regulated as being dangerous, toxic, haz- ardous, or harmful to persons or to the environment by any federal, state or local law or regula- tion, except in strictest compliance with all laws and regulations governing the storage, handling and transportation thereof, and Tenant shall in no event release or permit others to release on the Premises any such substances. Tenant shall be liable to Landlord, and shall defend, indemnify and hold Landlord and Landlord's successors in interest harmless from any loss, damage, cost or expense incurred on account of Tenant's breach of these duties to include, without limitation, Ii- Page 2 ability for inspection costs, cleanup costs, engineers' and consultants' fees, civil or criminal fines, damages or penalties, and attorneys fees incurred in connection therewith or in enforcing this indemnity. 10. Default; Remedies. 10.1 Tenant's Default. Each of the following events shall be a default by Ten- ant and a breach of this Lease: 10.1.1 Abandonment or surrender of the Premises or of the leasehold es- tate, or failure or refusal to pay when due any installment of rent or any other sum required by this Lease to be paid by Tenant, or to perform as required or coffditioned by any other covenant or condition of this Lease. Failure to occupy the Premises shall not be deemed abandonment or surrender. 10.1.2 Failure by Tenant to perform any obligation hereunder to Landlord as and when due. 10.2 Notice and Right to Cure. As a precondition to pursuing any remedy for an alleged default by Tenant, (the word "default" to include broach), Landlord shall, before pur- suing any remedy, give written notice of default to Tenant stating that the notice was for the pur- pose of notice under this provision. Each notice of default shall specify in detail the alleged event of default and the intended remedy. Tenant shall have ten (10) days from receipt of such notice to cure the alleged default before Landlord pursues any remedy therefor; provided, that if the default specified is of a nature that cannot reasonably be cured within ten days, then Tenant shall not be in default if Tenant commences a cure within such ten-day period and diligently prosecutes the cure to completion. 10.3 Landlord's Remedies. If any default by Tenant shall continue uncured fol- lowing written notice of default as required by this Lease and the expiration of the period al- lowed for cure, Landlord may, in addition to any remedies available to Landlord at law, termi- nate Tenant's rights under this Lease by giving Tenant notice of termination. Promptly after no- tice of termination, Tenant shall surrender and vacate the Premises in the condition required at the expiration of the Lease term, and Landlord may reenter and take possession of the Premises and eject all or any parties in possession. Termination under this paragraph shall not relieve Tenant from the payment of any sum then due to Landlord or from any claim for damages previ- ously accrued or then accruing against Tenant. 11. Insurance. Tenant shall pay for, keep in force and maintain at all times during the Lease term, public liability insurance and property damage insurance with combined limits of $2,000,000.00 (Two Million Dollars), naming Landlord as additional insured, and Tenant will furnish Landlord with a certificate of such insurance. Tenant, its successors or assigns, will protect, indemnify and hold harmless Landlord, their au- thorized agents and employees from all claims, actions, costs, damages or expenses of any nature whatsoever by reason of the acts or omissions of Tenant, its assigns, agents, contractors, licen- Page 3 sees, invitees, employees, or any person whomsoever, arising out of or in connection with any acts or activities authorized by this Lease. Tenant further agrees to defend Landlord, their agents or employees in any claim or litigation, including payment of any costs or attorneys' fees for any claims or action commenced, arising out of, or in connection with, acts or activities authorized by this Lease, whether those claims, actions, costs, damages or expenses result from acts or activities occurring on or off the Prom- ises. 12. Miscellaneous Provisions. 12.1 Waiver. No waiver of any default shall ~onstitute a waiver of any other breach or default, whether of the same or any other covenant o¥ condition. 12.2 Attorneys' Fees. If either party brings any action or proceeding to enforce, protect or establish any right or remedy under this Lease, the prevailing party shall be entitled to recover from the other party its reasonable attorneys' fees and related costs incurred therein, or in preparing therefor, or in any appeal therefrom. 12.3 Notices. 12.3.1 As used in this Lease, notice includes but is not limited to the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, and appointment. No notice of the exerctse of any option or election is required unless the provision giving the election or option expressly requires notice. Rent shall be sent in the manner provided for giving notice. 12.3.2 All notices must be in writing. 12.3.3 Notice is considered given either (a) when delivered in person to the recipient named or (b) three days after being deposited in the United States mail in a sealed envelope, certified mail, return recmpt requested, postage prepaid, addressed by name and ad- dress to the party or person intended as follows: To Landlord: Attn: Bruce Fletcher, Director Tukwila Parks and Recreation Department 12424 42na Avenue S. Tukwila, WA 98168 Page 4 To Tenant: Sound Transit with a copy to: Jennifer Belk 401 S. Jackson Street Legal Counsel Seattle, WA 98104 Sound Transit Attn: Real Estate Department 401 S. Jackson Street Seattle, WA 98104 12.3.4 Either party may, by notice given at any time or from time to time, require subsequent notices to be given in the manner set forth above to another individual person, whether a party or an officer, or representative, or to a different address, or both. 12.4 Captions. The captions of the various articles and paragraphs of this Lease are for convenience and ease of reference only and do not define, limit, augment, or describe the scope, content, or intent of this Lease or of any part or parts of this L~ase. 12.5 Entire Agreement. This Lease, together with the Residential Lease and the Stipu- lation contain the entire agreement between the parties. No promise, representation, warranty, or covenant not included in this Lease, the Residential Lease or the Stipulation has been or is relied on by either party. 12.6 Severabilit¥. The invalidity or illegality of any provision shall not affect the re- mainder of the Lease. 12.7 Successors. The covenants and conditions of this Lease shall be binding on and shall inure to the benefit of the heirs, successors, executors, administrators, assigns, and personal representatives of the respective parties. 12.8. Counterparts. This Lease may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. Dated as of the day and year first above written. Page 5 Tenant: Central Puget Sound Regional Transit Authority, a regional transit authority organized under Washington law By: Agnes Govern Its: Chief Administrative Officer Landlord: City of Tukwila Bruce Fletcher Cascade Land Conservancy Concurrence Whereas the Cascade Land Conservancy is the "Grantee" of a "Grant of Permanent Access and Stewardship Easement" dated March 10, 2004 and whereas such agreemem assigns "Steward- ship" rights to the Grantee; Cascade Land Conservancy hereby concurs with this lease. Michelle Connor APPROVED AS TO FORM SOUND TRANSIT By: Name: Title: Sound Transit Legal Counsel Date: Page 6 STATE OF WASHINGTON ) ) § COUNTY OF KING ) On this day of ,2003, before me, the undersigned notary public in and for the State of Washington, duly commissioned and sworn, personally appeared Agnes Govern, to me known to be the Chief Administrative Of- ricer of Central Puget Sound Regional Transit Authority, a regional transit authority organized under Washington law, the authority that executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said authority, for the uses and pur- poses therein mentioned, and on oath stated that he/she was duly authorized to execute the same. WITNESS my hand and official seal hereto the day arid year ~n this Certificate first above written. ~ Signature: Notary Public in and for the State of Washington Notary (print name) Residing at My appointment expires: STATE OF WASHINGTON ) ) § COUNTY OF KING ) I certify that I know or have satisfactory evidence that Bruce Fletcher ~igned this instrument, on oath stated that she was authorized to execute the instrument and acknowledged it to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Signature: Notary Public in and for the State of Washington Notary (print name) Residing at My appointment expires: Page 7 NE~/4 NW~/,~ SEC I0, T 25 N, R ~ E: W.M. R/W NO, TUK-026,1 CASCADE LAND CONSERVANCY ACCESS Community and Parks Committee September 28, 2004 Present: Pam Linder, Chair; Joe Duffle, Dave Fe'nton Steve Lancaster, Bruce Fletcher, R_honda Ben'y, Cyndy Knighton, Lucy Lauterbach; Stacy Tressler, Ross Fenton, Chris Slatt, Steve Beck 1. Starfire Sports Complex Update The Committee toured the Starfire site, taking in the nearly-completed sports complex and center building of the sports venture. They were able to see the fields and where the scoreboard signs are. Chris also showed the walls surrounding the stadium he would like to put advertising on. The Committee members appreciated the tour, and expressed their admiration for the fields, the work being done ~y Starfire, and the building. Back at City Hail, the Committee members and Chris had a free-ranging discussion ranging from the master sign process, to sewers and hotel rooms. Steve L noted the staff's recommended master sign plan that was presented a year ago has now devolved to possibly needing fewer changes to the sign code and not a special sign code for the park. There are several places inside the Starfire park where signs would only be seen by those in the park. However, some of the' changes that would allow those signs could have negative results if used on school sports fields in residential areas. Making signs a Type 2 level decision could leave the final decision up to the Planning Director. Both sides were glad to have talked face to face, and agreed they understood each other's positions much better as a result. Information. 2. Ikawa Park Impacts Ross and Stacy presented the current proposals for improving 1-405. The original proposal was to put two new lanes in each direction, and extend Tukwila Parkway to Interurban where it would have an entry to 1-405. The State passed a 5 cent (nickel) package for transportation, including studying [-405. Planners then scaled back their plans to adding one lane in each direction. Beyond that there is no construction money. Another project being considered for funding include SR 167, which is also considered in 1-405 plans. Any construction is likely to be years away. The Committee agreed with the. recommendation to move the additions to the north rather than south side ofi-405. Mitigation for impacting Ikawa Park could involve widening the park, or using the whole south lawn for the park. Construction will be years away, but two members preferred the third option of using the whole lawn for the project. That will be decided when the plans become more realistic. Approval to move 1-405 north; information. 3.Sound Transit Lease Offer Sound Transit's offer to lease the flat land of Riverbend Hill Park has been approved by all the groups who helped fund ,ind plan the park. Bruce had some considerations he wanted to propose based on all those comments. Pam L added a consideration of the possible third year lease needed if the proj eot takes longer than expected. The monthly fee for the third year is $9,742/month when it is at $11,000/mo/nth duri,ng the term of the two ye, ars. / Community and Parks September 28 ~ 2004 Page 2 The Committee members all agreed with the lease otherwise, and wanted to preserve access to the park for others during the staging. Brace said the funds will be used for park development. Kiverbank stabilization, sidewalks, curbs and gutters as well as parking will all need funding. He'll use Sound Transit's offer 0f$5,000 to do another appraisal also. Recommend lease agreement with conditions. 4. Naming TIB Sounder S~ation Naming the station at S. 154th has been delayed because of the decmion on the permit. Other station names have been decided. Several suggestions from others have already been given to Sound Transit, and it was evident that most of those were fi.om Sea Tac. The Committee agreed that Tukwila Station was the only name that made sense just now. Recommend name to Regular Meeting. [7<ol"~Committee chair approval