HomeMy WebLinkAbout14-160 - United States Government - Memorandum of Understanding (Boulevard Motel)14 -160
Council Approval 3/17/14
U.S. Department of Justice
United States Marshals Service
MEMORANDUM OF UNDERSTANDING
BETWEEN
UNITED STATES GOVERNMENT
AND
CITY OF TUKWILA
On August 27, 2013, the United States filed a Civil Complaint for Forfeiture In Rem against the
real property located at 14440 Tukwila International Boulevard, Tukwila, Washington, King
County parcel number 004000 - 0190,. also commonly known as the Boulevard Motel. See
Docket No. 1; United States v. 14420 Tukwila Intl Blvd., et al., C13 -1532 JCC, WDWA.
All parties who appeared in this action to claim an interest in the above - captioned defendant
real property agreed to its forfeiture and withdrew or settled their claim.,
On August 18, 2014, the Court in the above referenced civil forfeiture matter entered a
Judgment of Forfeiture, forfeiting the real property located at 14440 Tukwila International:
Boulevard, Tukwila, Washington, King County parcel number 004000 -0190, also commonly
known as the Boulevard Motel, in its entirety to the United States, with no right or title existing
in any other party. See Docket No. 113.
Pursuant to terms of the attached Judgment of Forfeiture and the attached Settlement
Agreement between the United States and Whidbey Island Bank, the government will transfer
all right, title and interest in the real property, commonly known as the Great Bear Motor Inn,
to the City of Tukwila via a Quit Claim Deed.
Digitally signed by PAUL
BAXLEY
_Date; 2014.09.14 08:20:53
Signed:
Paul L. Baxley, on behalf of the United States
Signed:
Jim H rton, on alf of the City of Tukwila
1540
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Case 2:13 -cv- 01532 -JCC Document 113_ Filed 08/18/14 Page 1 of 5
THE HONORABLE JOHN C. COUGHENOUR
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
UNITED STATES OF AMERICA,
Plaintiff,
v.
REAL PROPERTY LOCATED AT
14420 TUKWILA INTERNATIONAL
BOULEVARD, TUKWILA,
WASHINGTON, KING COUNTY
PARCEL NUMBER 004000 - 0175, et al.,
Defendants.
CASE NO. C13 -1532 -JCC
ORDER
This matter comes before the Court on the government's motion for a judgment of
forfeiture of the real property located at 14440 Tukwila International Boulevard, Tukwila,
Washington, King County parcel number 004000 -0190, also commonly known as the Boulevard
Motel ( "Boulevard Motel ") together with its buildings, improvements, appurtenances, fixtures,
attachments and easements. (Dkt. No. 108.)
The Government filed its initial Verified Complaint for Forfeiture in rem on August 27,
2013, seeking forfeiture of the Boulevard Motel, along with certain other property. The
Government's initial Complaint for forfeiture in rem alleged that the Defendant Boulevard Motel
was subject to forfeiture pursuant to 21 U.S.C. . 881(a)(7) for violations of 21 U.S.C. §
856(a)(2) (Maintaining a drug involved premises), and 21 U.S.C. 841(a)(1) (distribution of
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Case 2:13 -cv- 01532 -JCC .Document 113 Filed 08/18/14 Page 2 of 5
controlled substances); and pursuant to 18 U.S.C. § 981(a)(1)(A) for violation of 18 U.S.C. §
1956(a)(1)(B)(i) (Concealment Money Laundering):
On September 12; 2013, Lakhvir Pawar, by and through his counsel, filed a verified
claim to the above- captioned defendant real property. On September 19, 2013, Jaspal and Puar,
LLC and Kuldip Puar, by and through their counsel, filed a verified claim to the above- captioned
defendant real property. On September 26, 2013, Whidbey Island Bank, by and through its
counsel, filed a verified claim to the above- captioned defendant real property.
On January 7, 2014, the United States, upon being granted leave by the Court, filed its
Amended Complaint for Forfeiture in rem against the Defendant Boulevard Motel and various
other real and personal properties. The purpose of the amended complaint was to add additional
personal property as defendants in rem, while maintaining the same cause of action against the
above - referenced defendant real property. .
Notice of the amended forfeiture action was published on the www.forfeiture.gov website
for at least thirty consecutive days, starting on January 10, 2014. All interested persons were
advised to file their claims pursuant to Supplemental Rule G(5) of the Federal Rules of Civil
Procedure with the Clerk of the Court within sixty days after the first date of publication and to
serve their Answers to the Complaint within twenty -one days after filing a claim.
On February 27, 2014, Abdi Molaim d/b /a Camel Foods (hereinafter "Camel Foods ") by
and through its counsel, filed a verified claim to the. above- captioned defendant real property.
On March 4, 2014, the United States, Claimants Japsal and Puar, LLC. and Kuldip Puar,
by and through their counsel, and potential Interested Parties Gurdip Pawar, Takhvir Singh, and
Sukhvir Singh entered into a settlement agreement wherein .Claimants Japsal and Puar, LLC and
Kuldip Puar agreed to the withdrawal of their claims -to the defendant Boulevard Motel, and
potential Interested Parties Gurdip Pawar, Takhvir Singh, and Sukhvir Singh agreed not to assert
an interest or file a claim as to the defendant Boulevard Motel.
ORDER
PAGE -2
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Case 2:,13 -cv- 01532 -JCC Document 113 Filed 08/18/14 Page 3 of 5
On March 27, 2014, Clear Channel Outdoor, Inc. (hereinafter "Clear Channel ") by and
through its counsel, filed a verified claim to the above - captioned defendant real property:
On April 4, 2014, the United States and Claimant Lakhvir Pawar entered into a settlement
agreement wherein Claimant Lakhvir Pawar agreed to the withdrawal of his claim to the
defendant Boulevard Motel.
On June 26, 2014, the United States and Claimant Whidbey Island Bank, by and through
its counsel, entered into a settlement agreement wherein Claimant Whidbey Island Bank agreed
to withdraw its claim. In consideration for . the withdrawal of this claim, the United States agreed
that upon the disposition of the defendant Boulevard motel after the entry of a Judgment of
Forfeiture, the United States will pay the following to Claimant Whidbey Island Bank:
DESCRIPTION
AMOUNT
Principal Balance
$782,651.81
Interest to 6/15/14
$114,441.09
Late Charges
$353.27
Reconveyance Fees
$226.00
UCC Release Fees
$270.00
Legal. Fees & Cost
$12,186.07
Misc. Fees & Costs
$606.20
Total Payoff effective to 6/15/14
$910,734.44
Per Diem Interest from June 15, 2014 to the date of the Government to
Government transfer of title
$456.55
On July 23, 2014, the United States and Claimant Camel Foods entered into a stipulation
wherein the parties agreed that defendant funds also named as a defendant in rem in this action,
$32,225.54 in United States Funds :Contained in Bank of America Account Number * ** *8507,
ORDER
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Case 2:13 -cv- 01532 -JCC Document 113 Filed. 08/18/14 Page 4 of 5
held in the name of Jaspal and Puar, LLC DBA Boulevard Motel, (hereinafter "defendant
funds "), will act as substitute res for the defendant Boulevard Motel for the pendency of any
litigation between the parties as to Claimant Camel Foods' claim, which therefore has been
withdrawn as to the Defendant Boulevard Motel.
On August 7, 2014,. the United States and Claimant Clear Channel Outdoor, Inc., by and
through its counsel, entered into a settlement agreement wherein the United States recognized the
claim of Claimant Clear Channel and warranted that upon the entry of a Final Judgment of
Forfeiture, forfeiting the above - referenced defendant real property located at 14440 Tukwila
International Boulevard in its entirety to the United States, the United States will engage in a
government to government transfer of title of the defendant real property with the City of
Tukwila subject to the terms of Claimant Clear Channel's commercial lease agreement.
All parties believed to have an interest in the above - captioned defendant real property
have been properly served. All parties who have appeared in this action to claim an interest in the
above - captioned defendant real property have agreed to its forfeiture and withdrawn or
substituted their claim, or have stipulated to substitute another asset as the substitute res for their
claim to the above - captioned defendant real property. .
More than sixty (60) days have passed since the notice of the forfeiture action was
published on the www.forfeiture.gov website. To date, no other claims to the above- captioned
defendant real property have been filed and no other answers to the complaint have been filed,
and the times for doing so have expired.
Now, therefore, upon Motion of the Plaintiff for a Judgment finally forfeiting the
defendant real property located at 14440 Tukwila International Boulevard, Tukwila, Washington,
King County parcel number 004000 -0190, also commonly known as the Boulevard Motel,
together with its buildings, improvements, appurtenances, fixtures, attachments and easements,
to the United States of America, it is hereby
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Case 2:13 -cv- 01532 -JCC Document 113 Filed 08/18/14 Page 5 of 5
ORDERED, ADJUDGED and DECREED as follows:
1. This Court has jurisdiction over this action under 28 U.S.C. §§ 1345 and 1355,
and venue pursuant to 28 U.S.C. § 1395.
2. The defendant real property located at 14440 Tukwila International Boulevard,
Tukwila, Washington, King County parcel number 004000 -0190, also commonly known as the
Boulevard Motel, together with its buildings, improvements, appurtenances, fixtures,
attachments and easements, more particularly described as:
THE SOUTH 25 FEET OF TRACTS 12 AND 13 AND THE NORTH 75 FEET
OF TRACTS 24 AND 25 BLOCK 2 ADAMS HOME TRACTS, ACCORDING
TO THE PLAT THEREOF RECORDED IN VOLUME 11 OF PLATS, PAGE
31, IN KING COUNTY, WASHINGTON, EXCEPT THOSE PORTIONS
THEREOF CONVEYED TO THE STATE OF WASHINGTON FOR
HIGHWAY BY DEEDS RECORDED UNDER RECORDING NUMBERS
2014228 AND 2014230
is hereby forfeited to the United States of America and no right, title or interest in the above -
described defendant real property shall exist in, any other party, except for the interest of
Claimant Clear Outdoor, Inc., as noted herein.
3. The United States Marshals Service, and/or its agents and representatives shall
dispose of the defendant real property in accordance with the law.
4. The Court shall deliver three (3) "raised seal," certified copies of this Judgment of
Forfeiture to the United .States Attorney's Office in Seattle, WA.
DATED this 18th day_ of August 2014.
L(,ce7
John C. Coughenour
UNITED STATES DISTRICT JUDGE
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Case 2:13 -cv- 01532 -JCC Document 94 Filed 06/26/14 Page 1 of 8
The Honorable John C. Coughenour
UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE . .
UNITED STATES OF AMERICA,
Plaintiff
v.
REAL PROPERTY LOCATED. AT 14440
TUKWILA INTERNATIONAL
BOULEVARD, TUKWILA, WASHINGTON,
KING COUNTY PARCEL NUMBER
004000 -0190
Defendant,
and
Whidbey Island Bank,
Claimant.
NO: C13-1532 JCC
EXPEDITED SETTLEMENT
AGREEMENT AS TO REAL PROPERTY
LOCATED AT 14440 TUKWILA
INTERNATIONAL BOULEVARD,
TUKWILA, WASHINGTON
IT 1S HEREBY STIPULATED by and between the United States of America and
Claimant Whidbey Island Bank (hereinafter "Whidbey "), to compromise and settle its
interest in the following real property: ..
Real property located at 14440 Tukwila International Boulevard, Tukwila,
Washington, King County parcel number 004000 -0190, also commonly known as
the Boulevard Motel, together with its buildings, improvements, appurtenances,
fixtures, attachments and easements, more particularly described as:
SETTLEMENT AGREEMENT - 1
C13- 1532U.S. V. Real Property located at 14420 Tukwila. International Blvd., et al.:
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206)553 -7970
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Case 2:13 -cv- 01532 -JCC Document 94 Filed 06/26/14 Page 2 of 8
THE SOUTH 25 FEET OF TRACTS 12 AND 13 AND THE NORTH 75
FEET OF TRACTS 24 AND 25 BLOCK 2 ADAMS HOME TRACTS,
ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 11
OF PLATS, PAGE 31, IN KING COUNTY, WASHINGTON,
EXCEPT THOSE PORTIONS THEREOF CONVEYED TO THE STATE
OF WASHINGTON FOR HIGHWAY BY DEEDS RECORDED UNDER
RECORDING NUMBERS 2014228 AND 2014230;
hereinafter referred to as "defendant real property."
This stipulated settlement is entered into between the parties pursuant to the
following terms:
1. The parties to this Agreement hereby stipulate that Whidbey is a bona fide
purchaser for value of the right, title, or interest in the real property located
at 14440 Tukwila International Boulevard, and that any violations of Title
21, United States Code, Sections 841(a)(1) and 856(a)(2) occurred without
the knowledge and consent of Whidbey.
2. The United States agrees and recognizes that the interest of Claimant
Whidbey Bank arises out of a promissory note in the original amount of
$1,017,563.23 in United States funds secured by various instruments,
including, but not limited to the following:
a. A first- position Deed of Trust recorded against the above-
referenced defendant real property located at 14440 Tukwila
International Boulevard with King County Recorder under
document number 20031014002680 (hereinafter sometimes
referred to as "Deed ") on October 14, 2003; and
b. A Commercial Security Agreement against all personal
property associated with the above - referenced real property
recorded with the King County Recorder under document
number 20031014002681.
SETTLEMENT AGREEMENT - 2
C13- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al..
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553 -7970
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Case 2:13 -cv- 01532 -JCC Document 94 Filed 06/26/14 Page 3 of 8
3.. Claimant Whidbey warrants that, as of June 15, 2014, the payoff amount
for this promissory note is $910,734.44 in United States funds which
includes the following:
DESCRIPTION
AMOUNT
Principal Balance
$782,651.81
Interest to 6/15/14
$114,441.09
Late Charges
$353.27
Reconveyance Fees
$226.00
UCC Release Fees
$270.00
Legal Fees & Cost
$12,186.07
Misc. Fees & Costs
$606.20
Total Payoff effective to 6/15/14
$910,734.44
Per Diem Interest from and after June 15, 2014
$456.55
4. Pursuant to the terms contained within this stipulated agreement, Claimant
Whidbey agrees to withdraw its claims to the above - referenced defendant
real property and further consents to forfeiture of that defendant real
property to the United States.
5. The United States warrants that upon the entry of a Final Judgment of
Forfeiture, forfeiting the above- referenced defendant real property located
at 14440 Tukwila International Boulevard in its entirety to the United
States, the United States will engage in a government to government
transfer of title with the City of Tukwila for the cash price of $1,090,000.00
in United States funds(. The transfer will be effectuated through the
recording of a Quit Claim Deed with the King County.
6. In consideration for Claimant Whidbey withdrawing its claims to the
above - referenced defendant real property, the United States agrees to pay to
the Claimant Whidbey the above- referenced $910,734.44, plus interest at
1 This amount reflects a June 30, 2013 appraisal value, conducted on behalf of the City of Tukwila by Kidder
Matthews. City of Tukwila has initiated an action in eminent domain to acquire certain properties located on
International Boulevard. This appraisal value reflects the amount that the City of Tukwila would have offered to the
titled owners of the real property upon which the Boulevard Motel is located. City of Tukwila has indicated that
they will honor this appraisal amount.
SETTLEMENT AGREEMENT - 3
C13- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553-7970
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Case 2:13-cv-01532-JCC Document 94 Filed 06/26/14 Page 4 of 8
the per diem rate of $456.55 from and after the 15th day of June, 2014, to
the date of the completion and recording of the government to government
transfer of title, in United States funds, comprising the full proceeds of the
above- referenced government to government transfer, to Claimant Whidbey
in full satisfaction of its promissory note relating to the defendant real
property located at 14440 Tukwila International Boulevard.
7. The payments to Claimant Whidbey shall be in full settlement and
satisfaction of all claims by Whidbey to the real property, and of all claims
arising from and relating to the seizure, detention, and forfeiture of the real
property.
8. Upon payment, Claimant Whidbey agrees to release and hold harmless the
United States, and any agents, servants, and employees of the United States
(and any involved state or local law enforcement agencies and their agents,
servants, or employees), in their individual or official capacities, from any
and all claims by Claimant. Whidbey and their agents that currently exist or
that may arise as a result of the Government's actions against and relating
to the real property.
9. Claimant Whidbey agrees not to pursue against the United States any other
rights that it may have under the Deed or Commercial Security Agreement
attached to any personal property related the defendant real property,
including but not limited to the right to assess additional interest or
penalties, or the right to initiate a non judicial foreclosure action. The
parties agree that nothing in this stipulation, however, precludes Claimant
Whidbey from pursuing recovery of all remaining funds owed to it under
the Promissory Note from the original signatories to the Promissory Note or
any guarantors thereof, to the extent it is entitled to do so by the terms of
the Promissory Note or other loan documents, or pursuant to any applicable
provision of Washington State law.
SETTLEMENT AGREEMENT - 4
C13- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 STEWART STREET. SUITE 5220
SEATTLE. WASHINGTON 98101
(206 ) 553.7970
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Case 2:13 -cv- 01532 -JCC . Document 94 Filed 06/26/14 Page .5 of 8
10. Claimant Whidbey agrees to join or not oppose any government motions
for interlocutory or stipulated sale of the property::
11. Claimant Whidbey understands and agrees that by entering into this
expedited settlement of its interest in the real property, it waives any rights
to litigate further its interest in the real property and to petition for
remission or mitigation of the forfeiture. If this Agreement is approved by
the Court, then unless specifically directed by an order of the Court,
Claimant Whidbey shall be excused and relieved from further participation
in this action as to the above- described defendant real property.
12. The parties agree to execute further documents, to the extent necessary, to
convey clear title to the real property to the United States and to implement
further the terms of this settlement.
13. Each party agrees to bear its own costs and attorneys' fees, except as
provided for above.
SETTLEMENT AGREEMENT - 5 UNITED STATES ATTORNEY
C13-1532U.S. v. Real Property located at 14420 Tukwila International Blvd,, et al: 700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553 -7970
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Case 2:13 -cv- 01532 -JCC Document 94 Filed 06/26/14 Page 6 of 8
14. Payment to the Claimant Whidbey made pursuant to this settlement
agreement is contingent upon forfeiture of the real property to the United
States. Further, the terms of this settlement agreement shall be subject to
approval by the United States district court. Violation of any terms or .
conditions herein shall be construed as a violation of an order of the court.
DATED this 26-‘t---day of
DATED: 4.-- zer.. + `►'-
..J 1„, , 2014.
Respectfully submitted,
JENNY D
DATED: 6 -2.c
CHARD E. COHEN
JUSTIN W. ARNOLD
JILL OTAKE
Assistant United States Attorneys
700 Stewart Street, Suite 5220.
Seattle, Washington 98101
(206) 553 -2242; fax (206) 553 -6934
E -Mail: Richard:E.Cohen @usdoj.gov
WILLIAM
Attorney for Claimant ' idbey Island Bank
Hutchison & Foster
P.O.Box69.
4300 198th St. SW, Ste :100
Lynnwood, WA 98046
(425) 776- 2.147; fax (425) 7.76-2147
SETTLEMENT AGREEMENT - 6
C13- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al..
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553 -7970
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Case 2:13 -cv- 01532 -JCC Document 94 Filed 06/26/14 Page 7 of 8
ORDER
This Settlement Agreement regarding the defendant real property located at 14440
Tukwila International Boulevard, Tukwila, Washington, King County parcel number
004000 -0190, is hereby approved under the terms and conditions set forth in the
foregoing agreement: .
DATED this day of , 2014.
JOHN C. COUGHENOUR
UNITED STATES DISTRICT JUDGE
SETTLEMENT AGREEMENT - 7
C]3- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al.
UN [TED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553 -7970
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Case 2:13 -cv- 01532 -JCC Document 94 Filed 06/26/14 Page 8 of 8
CERTIFICATE OF SERVICE
I hereby certify that on June 26, 2014, I electronically filed the foregoing with the
Clerk of the Court using the CM/ECF system which will send notification of such filing
to the attorney(s) of record for the defendants and petitioner(s).
s/ Michael McLaren
MICHAEL MCLAREN
FSA Paralegal IV
United States Attorney's Office
700 Stewart Street, Suite 5220
Seattle, Washington 98101 -1271
Phone: (206) 553 -2242
SETTLEMENT AGREEMENT - 8
C13- 1532U..S, v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553-7970