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HomeMy WebLinkAboutReg 2010-05-17 Item 7E - Ordinance - Amendments to Tukwila South Development Agreement with Segale Properties1 CAS NUMBER: 10-059 Fund Source: Comments: MTG. DATE 5/17/10 MTG. DATE 5/17/10 1I CATEGORY Discussion 1 1 Motion Mtg Date 5/17/10 Mtg Date EXPENDITURE REQUIRED $o Meeting Date 05/17/10 1 .7 9 COUNCIL AGENDA SYNOPSIS 1 1 Mtg Date Prepared by SMK Initials ITEM INFORMATION M�ayoor 1 r'sze ouncil_r�eview RI MEWED BY 1 1 COW Mtg. 11 CA &P Cmte n F &S Cmte ORIGINAL AGENDA DATE: MAY 17, 2010 AGE NDA ITEM TITLE Amendment to Development Agreement by and between the City of Tukwila and Segale Properties. Resolution Ordinance n Bid Award Public Hearing n Other Mtg Date 5/17/10 Mtg Date SPONSOR Council 1 1 Mayor Li Adm Svcs n DCD Finance f v Fire I I Legal I P&R n Police U PW SPONSOR'S SUMMARY Due to delay in Federal 404 Permit issuance, the method of right of way acquisition needs to be modified so that the City's construction of Southcenter Parkway can begin on schedule. Utilities Cmte Arts Comm. Parks Comm. COST IMPACT/ FUND SOURCE AMOUNT BUDGETED $o Mtg Date 5/17/10 Mtg Dale I DATE: RECOMMENDATIONS: SPONSOR /ADMIN. Approve Development Agreement Amendment No 1 COMMI I"I•EE RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated May 11, 2010 Ordinance in final form, with first amendment to the Development Agreement Development Agreement in Strike -thru Underline format IrEMNo. Transportation Cmte Planning Comm. APPROPRIATION REQUIRED $o 271 272 TO: RECOMMENDATION City of Tukwila Approve the amendment as presented. INFORMATIONAL MEMORANDUM Mayor Haggerton City Council FROM: Shelley Kerslake, City Attorney DATE: May 11, 2010 SUBJECT: First Amendment to Development Agreement with La Pianta (now known as Segale Properties) ATTACHMENTS Ordinance in final form -First Amendment to Development Agreement by and between the City of Tukwila and La Pianta (now known as Segale Properties, LLC). Jim Haggerton, Mayor ISSUE Whether the development agreement with La Pianta should be amended to require immediate transfer of right of way to facilitate timely construction of Southcenter Parkway extension and extend the time for obtaining a 404 permit. BACKGROUND The development agreement entered into with Segale Properties in June 2009, contemplated that the Army Corp of Engineers would issue a 404 permit by June 30, 2010. This permit allows for the levee modification work that needs to be accomplished to facilitate development as well as the City's road project. Final permit approval has not yet occurred, and is still in process. Should the 404 permit issuance be delayed any further, the City has the ability to obtain a Nationwide Permit to complete the road project; thus, the City's project can proceed. However, because the issuance of the 404 permit was a critical path item in the development agreement, amendments are necessary to seek relief from those dates. In addition, the Southcenter Parkway Extension Project requires that the City has the deeds to the right -of -way, before a contract is awarded, to ensure that there is no financial impact to the City should the development be delayed or halted by federal permit issues. DISCUSSION The proposed amendments accomplish two primary goals: (1) Allow the City's road project to proceed. The amendment calls for deeds to be put in escrow for the City, to be released upon completion of the Southcenter Parkway Extension Project and allows for storm drainage contingencies; and (2) Addresses the reality of the federal permitting process, which is outside of the control of the parties and is taking longer than expected. Alternatives: (1) Approve the amendment to the development agreement. (2) Decline to approve the amendment and the Agreement will terminate and will cause the City to reject all bids and return the funds obtained for the Southcenter Parkway Extension Project. 273 274 Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney ty of Tukwlla Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING BY REFERENCE THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TUKWILA AND SEGALE PROPERTIES LLC FOR THE TUKWILA SOUTH DEVELOPMENT; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTWE DATE. WHEREAS, on June 8, 2009, the City of Tukwila adopted Ordinance No. 2233, which authorized the Mayor to sign and enter into that certain Development Agreement No. 09 -100 (the "Development Agreement between La Pianta LLC and the City of Tukwila relating to the Tukwila South development; and WHEREAS, La Pianta LLC formally changed their name from La Pianta LLC to Segale Properties LLC effective January 1, 2010; and WHEREAS, the City is prepared to begin construction of the Southcenter Parkway Extension project in June 2010, but Segale Properties LLC has not yet obtained final approval of the 404 Permit and the Levee Modification (all as defined in the Development Agreement); and WHEREAS, the Development Agreement provides in Section 4.2 that it will automatically terminate on June 30, 2010 if by that date final approval of the 404 Permit and the Levee Modification have not been obtained; and if the Development Agreement terminates as set forth in Section 4.2, the City will not be able to commence construction of the Southcenter Parkway project in June 2010; and WHEREAS, Segale Properties LLC desires to cooperate with the City in amending the Development Agreement to allow for the commencement of construction of the Southcenter Parkway project in June 2010, including the dedication of necessary right -of -way for the Southcenter Parkway project; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Development Agreement Amendment Adopted. The City of Tukwila hereby adopts and authorizes the Mayor to sign the "First Amendment to the Development Agreement By and Between the City of Tukwila and Segale Properties LLC for the Tukwila South Development," a copy of which is attached hereto as "Exhibit A" and by this reference fully incorporated herein. Section 2. SeverabiIity. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 3. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2010. ATTEST/ AUTHENTICATED: Exhibit A: First Amendment to the Development Agreement By and Between the City of Tukwila and Segale Properties LLC for the Tukwila South Development W: \Word Processing Ordinances Segale Development Agreement.doc SK:1sn 05/12/2010 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 1 of 1 275 276 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND SEGALE PROPERTIES LLC, FOR THE TUKWILA SOUTH DEVELOPMENT I. RECITALS Strike Through THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "Amendment is made and entered into this day of May, 2010, by and between the CITY OF TUKWILA "City a non charter, optional code Washington municipal corporation, and SEGALE PROPERTTFS LLC, a Washington limited liability company "Segale formerly known as "LA PIANTA LLC." WHEREAS, the City and Segale entered into that certain Development Agreement relating to the Tukwila South development, dated June 10, 2009 (the "Development Agreement WHEREAS, the City is prepared to begin construction of the Southcenter Parkway project in June 2010, but Segale has not yet obtained final approval of the 404 Peimit and the Levee Modification (all as defined in the Development Agreement). WHEREAS, the Development Agreement provides in Section 4.2 that it will automatically terminate on June 30, 2010 if by that date final approval of the 404 Peunit and the Levee Modification had not been obtained. If the Development Agreement terminates as set forth in Section 4.2, the City will not be able to commence construction of the Southcenter Parkway project in June 2010. WHEREAS, Segale desires to cooperate with the City in amending the Development Agreement to allow for the commencement of construction of the Southcenter Parkway project in June 2010, including the dedication of necessary right -of- way for the Southcenter Parkway project. NOW, THEREFORE, in consideration of the mutual promises set forth herein and the long -term benefit to both the City and Segale, the parties hereby agree as follows: II. AGREEMENT 1. Defined teens used herein shall have the meanings set forth in the Development Agreement. Segale and La Pianta may be used interchangeably, and shall be deemed to refer to the same entity. 2. Section 4.2 of the Development Agreement is hereby amended to read as follows: 277 278 4.2 Levee Modification and 404 Permit Approval. The City has submitted to the U.S. Army Corps of Engineers, Seattle District "ACOE an application for modification of the levee system in the Tukwila South Property which will, among other things, peniiit the removal of the existing cross -levee structure at South 196 Street (the "Levee Modification La Pianta has submitted to ACOE an application for a Section 404 permit under the Clean Water Act, to permit the grading, filling and development of the Tukwila South Property as contemplated in the Tukwila South Master Plan (the "404 Permit The parties will take all reasonable steps necessary to secure from the ACOE the issuance of the Levee Modification and the 404 Permit in a timely manner. If either the Levee Modification or the 404 Permit has not been issued by the Corps, and all appeal periods having passed with no appeals filed, by JttneSeptember 3040, 20110 (the "Outside Approval Date then upon written notice given by Segale to the City no later than October 15, 2011 (the "Termination Notice"). this Agreement and the Escrow will terminate and all obligations of La Pianta and the City herein will be extinguished. effective as of the Outside Approval Date. except that the following obligations of the respective parties shall survive such termination: (i) the obligation of La Pianta to dedicate property for Southcenter Parkway under Section. 4.3.2, (ii) the obligation of .La Pianta to nay certain fees and costs associated with the construction, relocation and/or upgrade of certain power and water utility systems in connection with the Southcenter Parkway project under Sections 4.3.4, 4.3.4.1 and 4.3.4.2: (iii) the obligation of La Pianta to provide no- cost permanent easements to the storm ponds pursuant to Section 4.3.5.1: and (iv) the obligations of the City under Sections 4.3.8. 4.11 and 4.12. I.f Segale does not timely provide the Termination Notice, then this Agreement shall remain in full force and effect. The Outside Approval Date may be extended by mutual agreement of the parties. As provided herein, the parties will place in the Escrow (as established under Section 4.8.4.6 below) all documents, payments and other undertakings required to be delivered prior to the Outside Approval Date. Upon approval of the Levee Modification and issuance of the 404 Permit, the Escrow Agent (hereinafter defined) shall be instructed to release, deliver or record, as appropriate, all sums and documents held in escrow unless expressly provided otherwise in this Agreement. The City shall incur no costs for the maintenance of the new levee constructed as a result of the Levee Modification. p I +wee T a Pianta to secure shall-result in denial of said permit. Segale shall secure maintenance for the levee prior to certification of the Levee Modification. 3. The City shall cooperate with Segale in good faith, and use reasonable efforts, to secure the issuance of the 404 Permit and Levee Modification. 4. Section 4.3.2 of the Development Agreement is amended in its entirety to read as follows: 4.3.2 Land Dedication for Southcenter Parkway Project. La Pianta agrees to dedicate, at no cost to the City, the land necessary to construct the Southcenter Parkway as depicted in Exhibit 7. La Pianta waives all credit for this dedication of land against any traffic impact fee assessed for the Project. In addition, La Pianta agrees to waive any claim for just compensation pursuant to RCW 8.12 and any claims under the Washington and Federal Constitutions in connection with the dedication of this right-of-way. La Pianta shall deliver a cc and easements unacceptable to the City) for this land and a signed and dated right of way easement encumbers —tha came property described in the deed, in commercially reasonable foam acceptable to the City, to the Escrow no later than 5 days after the effective date of the annexation specified in Section 4.1. Segale shall also deliver a signed but undated statutory warranty deed (free of all encumbrances and easements unacceptable to the City) for this land to the Escrow no later than May 28, 2010. The City shall prepare and provide to Segale the legal description for the right of way being conveyed no later than May 24, 2010, which legal description shall be subject to the approval of Segale, which approval will not be unreasonably withheld. Upon receipt, the City shall record the right of way easement and retain the undated deed in Escrow until the City is prepared to vacate Frager Road/Southcenter Parkway as provided in Section 4.10. Simultaneously with the transfer of the properties described in Section 4.10, the City shall cause the deed delivered by La Pianta into Escrow to be dated and recorded. Notwithstanding any teiniination of the Agreement under Section 4.2, the Escrow shall continue to hold such deed, and the City shall be entitled to cause the Escrow Agent to release the deed to the City for recording upon final completion, as evidenced by the City Council's acceptance of contract completion of the Southcenter Parkway Proiect. not delivered in the time specified-by this Section, this Agreement will terminate. For the purpose of the real estate excise tax, the City acknowledges that the transfer of property pursuant to this section shall be for a "public use in connection with the development of real property" as provided under WAC 458 61A -205. Y Y 5. Pursuant to the Clearing and Grading Pell niit application, Segale proposes to construct, at is sole cost, temporary stoiniwater detention ponds "Temporary Ponds for the purpose of detaining stoiniwater runoff from Southcenter Parkway and South 200 Street. Accordingly, Section 4.3.5.1 of the Development Agreement is hereby amended in its entirety to read as follows: South Facility. Easements and stormwater facilities for the South Facility may, at the discretion of La Pianta, be temporary, provided however, that except as provided in Section 4.3.5.3 below, La Pianta shall. prior to the issuance of the first construction pen for a new building development in the Tukwila South Project outside of the existing Segale Business Park. either: (i) provide permanent, no- 279 280 In addition, items #2 and #4 in the table set forth in Section 5.4.3.1 are hereby amended as follows: cost easement and stormwater facilities in the South Facility- p34et= tethe issuance of the first construction permit for a now building developmei South Project; and (ii) ensure that the South Facility will be operational and ready for use not later than the end of the construction season in the year following the calendar year in which the 404 Permit is issued. In the event this Development Agreement tenninates as set forth in Section 4.2 above, Segale shall provide the City with no -cost permanent easements to the storm ponds constructed pursuant to the Clearing and Grading Pennit and the Shoreline Substantial Development permit (as set forth in Section 4.9). Those ponds shall then become the permanent stormwater facilities to sereve Southce.nter Parkway. For the purposes of this section. a "construction season" shall begin on Mav 1 and terminate on October 15, 2. Install a long -term construction stormwater polymer treatment system. 3. Construct the elevation of the separating berm between the Green River and the Green River Off Channel Habitat Area excavation to prevent Green River inflow to the excavation during the high flow season. 5. Prepare and implement the SAMP wetland mitigation plan to compensate for the filling of low -value wetlands. 6. Prepare and implement a fisheries mitigation plan pursuant to the SAMP. The South Facility shall be €constructed and operational not later than the end of the construction season commencing in the year following the calendar year in which the 404 Permit is issued. as set forth in Section 4.3.5.1 aboveprior to the start of any discharges from the site. }Prior to first wet season gradingconstruction activities within the Green River Off Channel Habitat Area after issuance of the 404 Permit. Approval of SAMP plan by the Department of Community Development Director prior to the start of site mass grading of the area rcauirinc4 the 404 Permitdufing the first COBStRret season; wetland mitigation construction will start not later than the secondthe first year of construction and be complete duringon or before the fourtht-liirel year of construction. Approval of the SAMP plan by the Department of Community Development Director prior to the start of site mass grading of the area requiring a 404 Permit mitigation construction will start not later than the second year of constructiontl3e first -year of construction and be complete on or before the end of the fourthdin-g 6. This Amendment shall be recorded against the Tukwila South Property as a covenant running with the land. 7. Notice address for Segale shall be as follows: 8. Except as amended herein, the te,.uis and provisions of the Development Agreement remain in full force and effect. In Witness Whereof, the parties have caused this Amendment to be executed, effective on the day and year set forth on the first page hereof. CITY OF TUKWILA, a Washington municipal corporation By: Date: Segale Properties LLC, a Washington limited liability corporation By: Metro Land Development, Inc., Its: Manager By: Date: If to Segale: Segale Properties LLC P.O. Box 88028 Tukwila, Washington 98138 -2028 Attn: Mr. Mark A. Segale Jim Haggerton, Its Mayor Mark_A. Segale, Vice President the third year of construction. 281 282 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND SEGALE PROPERTIES LLC, FOR THE TUKWILA SOUTH DEVELOPMENT THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "Amendment is made and entered into this day of May, 2010, by and between the CITY OF TUKWILA "City a non charter, optional code Washington municipal corporation, and SEGALE PROPERTIES LLC, a Washington limited liability company "Segale formerly known as "LA PIANTA LLC." I. RECITALS WHEREAS, the City and Segale entered into that certain Development Agreement relating to the Tukwila South development, dated June 10, 2009 (the "Development Agreement WHEREAS, the City is prepared to begin construction of the Southcenter Parkway project in June 2010, but Segale has not yet obtained final approval of the 404 Permit and the Levee Modification (all as defined in the Development Agreement). WHEREAS, the Development Agreement provides in Section 4.2 that it will automatically terminate on June 30, 2010 if by that date final approval of the 404 Peunit and the Levee Modification had not been obtained. If the Development Agreement terminates as set forth in Section 4.2, the City will not be able to commence construction of the Southcenter Parkway project in June 2010. WHEREAS, Segale desires to cooperate with the City in amending the Development Agreement to allow for the commencement of construction of the Southcenter Parkway project in June 2010, including the dedication of necessary right -of- way for the Southcenter Parkway project. NOW, THEREFORE, in consideration of the mutual promises set forth herein and the long -tei benefit to both the City and Segale, the parties hereby agree as follows: II. AGREEMENT 1, Defined terms used herein shall have the meanings set forth in the Development Agreement. Segale and La Pianta may be used interchangeably, and shall be deemed to refer to the same entity. 2. Section 4.2 of the Development Agreement is hereby amended to read as follows: 283 284 4.2 Levee Modification and 404 Permit Approval. The City has submitted to the U.S. Army Corps of Engineers, Seattle District "ACOE an application for modification of the levee system in the Tukwila South Property which will, among other things, permit the removal of the existing cross -levee structure at South 196 Street (the "Levee Modification La Pianta has submitted to ACOE an application for a Section 404 permit under the Clean Water Act, to permit the grading, filling and development of the Tukwila South Property as contemplated in the Tukwila South Master Plan (the "404 Permit The parties will take all reasonable steps necessary to secure from the ACOE the issuance of the Levee Modification and the 404 Permit in a timely manner. If either the Levee Modification or the 404 Permit has not been issued by the Corps, and all appeal periods having passed with no appeals filed, by September 30, 2011 (the "Outside Approval Date then upon written notice given by Segale to the City no later than October 15, 2011 (the "Termination Notice this Agreement will terminate and all obligations of La Pianta and the City herein will be extinguished, effective as of the Outside Approval Date, except that the following obligations of the respective parties shall survive such termination: (i) the obligation of La Pianta to dedicate property for Southcenter Parkway under Section 4.3.2, (ii) the obligation of La Pianta to pay certain fees and costs associated with the construction, relocation and/or upgrade of certain power and water utility systems in connection with the Southcenter Parkway project under Sections 4.3.4, 4.3.4.1 and 4.3.4.2; (iii) the obligation of La Pianta to provide no -cost permanent easements to the storm ponds pursuant to Section 4.3.5.1; and (iv) the obligations of the City under Sections 4.3.8, 4.11 and 4.12. If Segale does not timely provide the Termination Notice, then this Agreement shall remain in full force and effect. The Outside Approval Date may be extended by mutual agreement of the parties. As provided herein, the parties will place in the Escrow (as established under Section 4.8.4.6 below) all documents, payments and other undertakings required to be delivered prior to the Outside Approval Date. Upon approval of the Levee Modification and issuance of the 404 Permit, the Escrow Agent (hereinafter defined) shall be instructed to release, deliver or record, as appropriate, all sums and documents held in escrow unless expressly provided otherwise in this Agreement. The City shall incur no costs for the maintenance of the new levee constructed as a result of the Levee Modification. Segale shall secure maintenance for the levee prior to certification of the Levee Modification. 3. The City shall cooperate with Segale in good faith, and use reasonable efforts, to secure the issuance of the 404 Permit and Levee Modification. 4. Section 4.3.2 of the Development Agreement is amended in its entirety to read as follows: 4.3.2 Land Dedication for Southcenter Parkway Proiect. La Pianta agrees to dedicate, at no cost to the City, the land necessary to construct the Southcenter Parkway as depicted in Exhibit 7. La Pianta waives all credit for this dedication of land against any traffic impact fee assessed for the Project. In addition, La Pianta agrees to waive any claim for just compensation pursuant to RCW 8.12 and any claims under the Washington and Federal Constitutions in connection with the dedication of this right -of -way. La Pianta shall deliver a signed and dated right of way easement, in commercially reasonable form acceptable to the City, to the Escrow no later than 5 days after the effective date of the annexation specified in Section 4.1. Segale shall also deliver a signed but undated statutory warranty deed (free of all encumbrances and easements unacceptable to the City) for this land to the Escrow no later than May 28, 2010. The City shall prepare and provide to Segale the legal description for the right of way being conveyed no later than May 24, 2010, which legal description shall be subject to the approval of Segale, which approval will not be unreasonably withheld. Upon receipt, the City shall record the right of way easement and retain the undated deed in Escrow until the City is prepared to vacate Frager Road/Southcenter Parkway as provided in Section 4.10. Simultaneously with the transfer of the properties described in Section 4.10, the City shall cause the deed delivered by La Pianta into Escrow to be dated and recorded. Notwithstanding any termination of the Agreement under Section 4.2, the Escrow shall continue to hold such deed, and the City shall be entitled to cause the Escrow Agent to release the deed to the City for recording upon final completion, as evidenced by the City Council's acceptance of contract completion of the Southcenter Parkway Project. For the purpose of the real estate excise tax, the City acknowledges that the transfer of property pursuant to this section shall be for a "public use in connection with the development of real property" as provided under WAC 458 61A -205. 5. Pursuant to the Clearing and Grading Permit application, Segale proposes to construct, at is sole cost, temporary stormwater detention ponds "Temporary Ponds for the purpose of detaining stormwater runoff from Southcenter Parkway and South 200 Street. Accordingly, Section 4.3.5.1 of the Development Agreement is hereby amended in its entirety to read as follows: South Facility. Easements and stormwater facilities for the South Facility may, at the discretion of La Pianta, be temporary, provided however, that except as provided in Section 4.3.5.3 below, La Pianta shall, prior to the issuance of the first construction permit for a new building development in the Tukwila South Project outside of the existing Segale Business Park, provide peinnanent, no -cost easement and stormwater facilities in the South Facility and ensure that the South Facility will be operational and ready for use not later than the end of the construction season in the year following the calendar year in which the 404 Penult is issued. In the event this Development Agreement terminates as set forth in Section 4.2 above, Segale shall provide the City with no -cost peunanent easements to the storm ponds constructed pursuant to the Clearing and Grading Permit and the Shoreline Substantial Development permit (as set forth in Section 285 286 4.9). Those ponds shall then become the permanent stormwater facilities to serve Southcenter Parkway. For the purposes of this section, a "construction season" shall begin on May 1 and terminate on October 15. In addition, items #2 and #4 in the table set forth in Section 5.4.3.1 are hereby amended as follows: 2. Install a long -term construction stormwater polymer treatment system. 3. Construct the elevation of the separating berm between the Green River and the Green River Off Channel Habitat Area excavation to prevent Green River inflow to the excavation during the high flow season. 5. Prepare and implement the SAMP wetland mitigation plan to compensate for the filling of low -value wetlands. 6. Prepare and implement a fisheries mitigation plan pursuant to the SAMP. 7. Notice address for Segale shall be as follows: If to Segale: Segale Properties LLC P.O. Box 88028 Tukwila, Washington 98138 -2028 Attn: Mr. Mark A. Segale The South Facility shall be constructed and operational not later than the end of the construction season commencing in the year following the calendar year in which the 404 Permit is issued, as set forth in Section 4.3.5.1 above. Prior to first wet season grading activities within the Green River Off Channel Habitat Area after issuance of the 404 Permit. Approval of SAMP plan by the Department of Community Development Director prior to the start of site mass grading of the area requiring the 404 Permit; wetland mitigation construction will start not later than the second year of construction and be complete on or before the fourth year of construction. Approval of the SAMP plan by the Department of Community Development Director prior to the start of site mass grading of the area requiring a 404 Permit; mitigation construction will start not later than the second year of construction and be complete on or before the end of the fourth year of construction. 6. This Amendment shall be recorded against the Tukwila South Property as a covenant running with the land. 8. Except as amended herein, the teiins and provisions Agreement remain in full force and effect. In Witness Whereof, the parties have caused this Amendment to be the day and year set forth on the first page hereof. CITY OF TUKWILA, a Washington municipal corporation By: Date: Segale Properties LLC, a Washington limited liability corporation By: Metro Land Development, Inc., Its: Manager By: Date: Jim Haggerton, Its Mayor Mark A. Segale, Vice- President of the Development executed, effective on 287