HomeMy WebLinkAbout14-040 - BBCN Bank - Memorandum of Understanding for Traveler's Choice Motel14- 040(a)
Council Approval N /A.
ADDENDUM TO MEMORANDUM OF UNDERSTANDING BETWEEN
CITY OF TUKWILA AND BBCN BANK
The parties agree that nothing in the MOU or any other agreement between the
City of Tukwila and BBCN Bank may preclude BBCN from pursuing recovery of all
remaining funds owed to it under the Promissory Note or any other agreement regarding
the below described real property between BBCN and the original signatories to the
Promissory Note or any other agreement, to the extent BBCN, its assignee or successor,
is entitled to do so by the terms of the Promissory Note, or pursuant to any applicable
provision of Washington State law.
Real property located at 3747 S. 146th Street, Tukwila, Washington, King County
parcel number 004000 -0911, also commonly known as the Travelers Choice
Motel, together with its buildings, improvements, appurtenances, fixtures,
attachments and easements, more particularly described as:
THE EAST 88 FEET OF LOT 11, BLOCK 7, ADAMS HOME TRACTS,
ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 11 OF
PLATS, PAGE(S) 31, IN KING COUNTY, WASHINGTON. EXCEPT THE
NORTH 10 FEET THEREOF CONVEYED TO THE CITY OF TUKWILA BY
DEED RECORDED UNDER RECORDING NUMBER 9208261189.
City of Tukwila
ATTEST/AUTHENTICATED:
City Clerk,
FTa
'fie
ty O rty
APPROVED AS TO FORM:
ete
Office of the City Attorney
BB Bank
ame /4
Hagg ;, ayor Title
Grant Courtney
Attorney for BBCN Bank
Lee Anav Chung LLP
MAY 13 2014
RECEIVED
MEMORANDUM OF UNDERSTANDING
CITY OF TUKWILA AND BBCN BANK
14 -040
Council Approval 1/21/14
This Memorandum of Understanding ( "MOU "), dated this attbi day of March, 2014, is
made and entered into by and between the City of Tukwila ( "City ") and the BBCN Bank
("BBCN"), each of which is referred to individually as a "Party" or collectively as the "Parties."
RECITALS
WHEREAS, BBCN is a bona fide purchaser for value of the right, title, or interest in the
real property located at 3747 S. 146th Street, Tukwila, Washington, King County parcel number
004000 -0911, also commonly known as the Traveler's Choice Motel, its buildings,
improvements, appurtenances, fixtures, attachments and easements (the "Property "). The
Property is more particularly described in Exhibit A hereto; and
WHEREAS, the Property was seized by the United States in August, 2013, for violations
of Title 21, United States Code, Sections 841(a)(1) and 856(a)(2), which occurred at the Property
without the knowledge and consent of BBCN; and
WHEREAS, BBCN and the United States are currently negotiating a stipulated
settlement agreement under which all claims by BBCN to the Property, including Deed of Trust
No. 20070511000618 and Commercial Security Agreement No. 200713163515, will be released
upon payment to BBCN of $900,000; and
WHEREAS, the Property is also encumbered by Deeds of Trust Nos. 20031015001787
and 20070607000206, both held by Whidbey Island Bank, and the United States is
contemporaneously negotiating a stipulated settlement agreement with Whidbey Island Bank to
release Whidbey Island Bank's interests in the Property; and
WHEREAS, the Parties expect that upon execution of the stipulated settlement agreement
between the United States and BBCN, a Final Judgment of Forfeiture shall be entered, forfeiting
the Property to the United States; and
WHEREAS, the City desires to acquire the Property via intergovernmental transfer from
the United States and the Tukwila City Council has authorized purchase of the Property for up to
$900,000;
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
1. Upon entry of a Final Judgment of Forfeiture forfeiting the Property to the United
States, and contemporaneously with transfer of title to the Property from the United
States to the City via quit claim deed, the City shall present to the United States
Marshals Service, and or its agents and /or representatives, a cashier's check made
payable to BBCN in the sum of $900,000.00 in United States Funds. This cashier's
check will then be delivered by the U.S. Marshals Service to BBCN, by and through
its undersigned counsel and /or any other authorized agent or representativ-te..
ti
1
2. The City shall accept the property as is.
3. BBCN agrees to release all claims by BBCN to the Property including, but not limited
to, the following interests:
a. A Deed of Trust recorded against the Property with the King County
Recorder under document number 20070511000618; and
b. A Commercial Security Agreement against all personal property
associated with the Property recorded with the King County Recorder
under document number 200713163515.
4. The Parties acknowledge that the Parties' commitments under this MOU are
contingent upon Whidbey Island Bank forfeiting and releasing all interests in and
claims to the Property, including but not limited to Deeds of Trust Nos.
20031015001787 and 20070607000206.
City of Tukwila
ATTEST/AUTHENTICATED:
City Clerk, Christy O'Flaherty
APPROVED AS TO FORM:
Office of the City Attorney
BBCN Bank
Grant Courtney
Attorney for BBCN Bank
2
EXHIBIT A
THE EAST 88 FEET OF LOT 11, BLOCK 7, ADAMS HOME TRACTS, ACCORDING TO
THE PLAT THEREOF RECORDED IN VOLUME 11 OF PLATS, PAGE(S) 31, IN KING
COUNTY, WASHINGTON. EXCEPT THE NORTH 10 FEET THEREOF CONVEYED TO
THE CITY OF TUKWILA BY DEED RECORDED UNDER RECORDING NUMBER
9208261189.
3