HomeMy WebLinkAbout15-195 - Washington Towers LP - Building and Impact Fee Deferral AgreementCity of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Contract Number: 15- 195(1)
Council Approval N/A
BUILDING PERMIT AND IMPACT FEE DEFERRAL AGREEMENT
Amendment #1
Between the City of Tukwila and Washington Towers, LP Incorporated.
WHEREAS, after execution of the Building Permit and Impact Fee Deferral
Agreement, Contract No. 15 -195, the City recalculated the exact amount of the fees to be
paid and determined the actual amounts are less than as stated in the contract;
NOW, THEREFORE, that portion of Contract No. 15 -195 between the City of
Tukwila and Washington Towers, LP Incorporated, is amended as follows:
Section II.A.1, Building Permit Fee Deferral, is hereby amended to read as follows:
1. Subject to the terms and conditions herein, the City agrees to defer Developer's obligation to pay the
building permit fee in the amount of $372,532.75 $364,432.75 as provided herein.
Section II.B.1, Impact Fees Deferral, is hereby amended to read as follows:
1. Subject to the terms and conditions herein, the City agrees to defer Developer's obligation to pay the
impact fees in the amount of $693,775.80 $678,904.00 as provided herein.
Exhibits A, B and C are hereby amended as attached.
All other provisions of the contract shall remain in full force and effect.
Dated this 0q61- day of A4J
CITY OF TUKWILA
By
Name Allan Ekberg
Title Mayor
Date 5/210 h (�
CA: 2012
, 20i�
WASHINGTON TOWERS, LP
By: South Center WA, LLC, its General Partner
'V\ By
stine Lee, Member
AO&
Omar Lee, Member
Date
67-4,20/Azep/
/ 54--6 d. ---o`er
Page 1 of 2
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
APPROVED AS TO FORM
Byittd/tiLe.
City Attorney
ATTEST /AUTHENTICATED
City Clerk L'LL Cij retAr_
CA: 2012
Contract Number:
Page 2 of 2
Revised Exhibit A
Payment Forecast Building Permit Fee Deferral
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Revised: May 16, 2016
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Revised Exhibit B
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Revised: May 16, 2016
Printed: 05/18/2016 11:23 AM
Building Permit and Impact Fee Deferral Agreement
By and Between
City of Tukwila and Washington Towers, LP
15 -195
Council Approval N/A
This Building Permit and Impact Fee Deferral Agreement (the "Agreement ") is entered into by and
between the City of Tukwila, Washington (the "City "), a non - charter, optional code city organized under
the laws of the State of Washington, and Washington Towers, LP, a limited partnership organized under
the laws of the State of Washington ( "Developer").
I. RECITALS
WHEREAS, on October 19, 2015, the Tukwila City Council adopted City Council Resolution No. 1867
and City Council Ordinances Nos. 2484, 2485, and 2486 providing for the deferral of building permit and
impact fees for developments within a certain area of the City; and
WHEREAS, on May 19, 2015, the Developer submitted a complete building permit application, D15-
0111, to the City's Department of Community Development; and
WHEREAS, as planned in D15 -0111, the Developer proposes to construct a multi -story, mixed use
building with over 100 residential units (the "Project ") at 223 Andover Park East in the Transit Oriented
Development area of the City's Southcenter District; and
WHEREAS, per Tukwila Municipal Code Chapter 16.04 and City Council Resolution No. 1867, the
Developer is required to pay the City a building permit fee in the amount of $372,532.75 at time of
issuance of the building permit; and
WHEREAS, per Tukwila Municipal Code Chapters 9.48, 16.26, and 16.28 the Developer is required to
pay the City transportation, fire and park impact fees in the amount of $693.775.80 at the time of
issuance of the building permit; and
WHEREAS, the Project meets the criteria for building permit fee deferral outlined in City Council
Resolution No. 1867, section 5, subsection C; and
WHEREAS, the Project meets the criteria for impact fee deferral outlined in City Council Ordinances
Nos. 2484, 2485, and 2486; and
WHEREAS, Developer and City desire to enter into an agreement to allow deferral of building permit
and impact fees; and
NOW THEREFORE, in consideration of the mutual promises and benefits set forth herein, the Parties
hereby agree as follows:
II. AGREEMENT
A. Building Permit Fee Deferral
1
191-of
1. Subject to the terms and conditions herein, the City agrees to defer Developer's obligation
to pay the building permit fee in the amount of $372,532.75 as provided herein.
2. City shall not charge Developer a prepayment penalty for early payment of all or any portion
of the deferred building permit fee.
3. Developer shall pay the deferred building permit fee, plus accrued interest, to the City
within twenty -four (24) months of issuance of the building permit or prior to issuance of the
certificate of occupancy, whichever occurs first.
4. Developer agrees and understands that it is required to pay all other fees associated with
D15 -0111 that may be charged after permit issuance and to pay for any fees for other
permits associated with the project as provided on the example payment schedule attached
as Exhibit A hereto. The City may provide updated payment schedules from time to time
reflecting current payments due.
5. Developer shall pay interest on the deferred building permit fee at an interest rate per
annum equal to the yield on two (2) year United States Treasury notes as of the close of
business on the day the building permit is issued, as announced on Bloomberg.com or
another reliable source selected by City. Interest shall be compounded annually and shall
begin to accrue upon issuance of the building permit for D15 -0111.
B. Impact Fees Deferral
1. Subject to the terms and conditions herein, the City hereby agrees to defer Developer's
obligation to pay impact fees in the amount of $693,775.80 as provided herein.
2. The City agrees to not charge Developer a prepayment penalty for early payment of all or any
portion of the deferred impact fee.
3. The Developer agrees to pay the City the deferred impact fee, plus accrued interest, in eight
(8) equal installments of principal and interest as provided on the example payment schedule
attached as Exhibit B hereto, with the first payment due to the City no later than thirty -six
(36) months after issuance of building permit D15 -0111, and successive payments due
annually thereafter as provided on the payment schedule attached Exhibit B hereto. The City
may provide updated payment schedules from time to time reflecting current payments due.
4. Developer shall pay interest on the deferred impact fee at an interest rate per annum equal
to the yield on ten (10) year United States Treasury notes as of the close of business on the
day the building permit is issued, as announced on Bloomberg.com or another reliable source
selected by City. Interest shall be compounded annually and shall begin to accrue upon
issuance of building permit D15 -0111.
C. Security of Fee Deferrals
2
1. As security for Developer's obligations under this Agreement, the Developer shall provide the
City an irrevocable standby letter of credit ( "Letter of Credit ") naming the City as beneficiary
in an amount equal to the total unpaid building and impact fees plus all interest that would
be due as of the expiration date of the Letter of Credit. The Developer shall deliver the Letter
of Credit to the City no later than thirty (30) days after issuance of building permit D15 -0111.
The Letter of Credit, or a renewal or replacement thereof, shall remain in effect for the
duration of this Agreement until all fees deferred, plus accrued interest, have been paid in
full. Developer may provide renewal Letters of Credit that meet the same standards in this
Agreement. A conceptual Letter of Credit Obligation Forecast is attached as an example in
Exhibit C hereto.
2. Each Letter of Credit provided under this Agreement shall be in a form approved by the City
in its sole discretion. The issuer under each Letter of Credit shall be a financial institution
acceptable to the City and having a branch in Washington, Oregon, or California; provided,
however, that the City shall not withhold its consent to any financial institution having a long
term debt rating of at least A- from Standard and Poor's Corporation, or at least A2 from
Moody Investor Services. Developer shall provide the City with a renewal or replacement
letter of credit at least forty -five (45) days prior to the expiration of the existing Letter of
Credit, or within ninety (90) days after a downgrade of the long term debt rating, set forth
above, of the financial institution that issued the Letter of Credit. Each Letter of Credit shall
provide that it will be honored by presentation or at sight at an office of the issuer upon
presentment of a certification signed by an authorized officer of the City stating (i) Developer
has defaulted on its obligation under this Agreement that is secured by the Letter of Credit
and (ii) that the City is entitled to draw on the Letter of Credit.
D. Default By Developer
1. Default. The Developer shall be in default upon the occurrence of any of the following:
a. Failure to secure and /or provide to the City an initial Letter of Credit as outlined in section
C -1 of this Agreement;
b. Failure to timely make any payment required by this Agreement;
c. Failure to maintain the Letter of Credit;
d. Failure to secure and /or provide to the City a renewal or replacement Letter of Credit
within forty -five (45) days of expiration of the existing Letter of Credit; or
e. Failure to comply with the City's fee deferral policies, City of Tukwila Council Resolution
No. 1867 and City Council Ordinances Nos., 2484, 2485, and 2486.
2. Remedies. The City shall have the following remedies upon default by the Developer:
3
a. If the Developer is in default for the reason outlined in Section D -1, subsection a, the City
may, in its sole discretion, revoke the issued building permit. Developer hereby waives its
right to appeal or any other legal challenges regarding the City's decision to revoke the
building permit.
b. If the Developer is in default for any of the reasons outlined in Section 0-1, subsections
b -e, the Developer's obligation to pay the building permit fee and the impact fees shall
be accelerated, and the City may, in its sole discretion, draw on the Letter of Credit for
the total accelerated balance due for both the building and impact fee deferral, including
accrued interest.
c. Prior to exercising the City's option under the Letter of Credit under subsection D -2.b.,
the City will provide notice and five (5) days opportunity to cure. Notice shall be given as
provided in Section O. below. Notwithstanding the foregoing, the City shall not be
required to provide notice and an opportunity to cure prior to exercising its option under
the Letter of Credit if the Developer defaults less than fifteen (15) days prior to the
expiration of the Letter of Credit.
d. ,Nothing in this section shall be interpreted to limit the City from exercising any other legal
remedies permitted to it under law.
E. Termination. This Agreement shall terminate as provided below:
1. This Agreement shall terminate upon Developer's complete payment of the fee deferral
amounts, plus accrued interest.
2. Developer may provide notice of intent to terminate this Agreement upon written notice to
City. If Developer provides such notice to terminate pursuant to this subsection, the City may
execute its rights under the Letter of Credit to receive payment of all outstanding deferred
fees and accrued interest. The termination shall not be effective unless and until the date the
City receives full payment of all outstanding deferred fees and accrued interest. In the event
of termination pursuant to this subsection, Developer may apply to City for a prorated refund
of deferred building and impact fees. The refundable amount shall be determined by the City
and shall be paid per normal City procedures. The City retains the same authority and
discretion in determining the prorated fee due that it has for other building permits and
impacts.
3. Nothing in this Agreement shall extend the expiration date of any permit or approval issued
by the City for any development.
F. Parties Obligations. The Parties obligations under this Agreement shall not be contingent upon
construction completion of the building contemplated by this Agreement.
4
G. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with
the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the
U.S. District Court for Western Washington.
H. Assignability. Neither party may assign its rights and /or obligations under this Agreement. This
Agreement shall, however, be binding upon City, Developer, and their respective successors and assigns.
I. Attorneys' Fees. In the event of any litigation or dispute arises between the Parties regarding an
alleged breach of this Agreement, the prevailing Party shall be entitled to award of attorneys' fees.
J. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is
not intended to benefit any other person or entity, and no person or entity not a signatory to this
Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No
other person or entity not a Party to this Agreement may enforce the terms and provisions of this
Agreement.
K. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph
preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein.
L. Severability. The provisions of this Agreement are separate and severable. The invalidity of any
clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to
any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity
of its application to other persons or circumstances.
M. Integration. This Agreement and its exhibits represent the entire agreement of the parties with
respect to the subject matter hereof. There are no other agreements, oral or written, except as expressly
set forth herein.
N. Authority. The Parties each represent and warrant that they have full power and actual authority
to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons
are executing this Agreement in their representative capacities and represent and warrant that they have
full power and authority to bind their respective organizations.
0. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be
amended by mutual consent of all of the Parties, provided that any such amendments are in writing.
P. Notices. All notices or demands to the City or Developer under this Agreement shall be in writing
and shall be either (i) sent by a nationally recognized overnight courier, in which case notice shall be
deemed delivered one business day after deposit with such courier; or (ii) delivered personally, in which
case notice shall be deemed given on the date of such service, or (iii) sent by registered or certified mail,
postage prepaid, in which case notice shall be deemed delivered three (3) days following the date of post
mark. The addresses for City and Developer are set forth below. Such addresses may be changed by
written notice to the other party; provided that no notice of a change of address shall be effective until
actual receipt of such notice:
5
Developer
Washington Towers, LP
C/O Omar and Christine Lee
18230 East Valley Hwy #195
Kent, WA 98032
Cites
City of Tukwila
Office of the City Clerk
6200 Southcenter Blvd
Tukwila, WA 98188
Q. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel
for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting
the document shall apply to the interpretation or enforcement of this Agreement.
R. Legal Representation. In entering into this Agreement, Developer represents that it has been
advised to seek legal advice and counsel from its attorney concerning the legal consequences of this
Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs
the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions
of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
dates set forth below:
CITY OF TUKWILA
By Ai. AuserVi A4trsi By
im Ha
WASHINGTON TOWERS, LP
By: South - r WA, LLC, it
eral Partner
Title Mayor Date
By
Date / /l 02 d /J
APPROVED AS TO FORM:
By(
City Attorney
ATTEST:
By
City Clerk
6
Omar Lee, Member
Date /i3//‘7c720/3
Exhibit A
Example of Payment Due Dates for Building Permit Fee Deferral (Illustrative Purposes Only)
Annual Interest Rate:
Years:
Total # of Payments
Deferred Building Fee:
One Time Payment:
0.98% Exact Interest Rate will be determined on day of permit issuance.
2
1
$ 372,532.75
$ 379,870.17
Total: $ 7,337.42 $ 372,532.75 $ 379,870.17
Notes:
a. Interest rate shall be based on the Two Year Treasury note on the date the permit is issued and is fixed for the term.
Interest rate shown above is example only.
b. Interest starts to accrue when permit is issued and is compounded annually.
c. Assumes permit is issued on 12/18/15.
d. Payment in full for fee and interest is due 24 months after permit issuance or prior to issuance of C of 0,
which ever occurs first. This example assumes payment of principal and interest occurs at the end of
2017 (year 2).
e. This table is an example only, the final table may be provided after issuance of the building permit.
Printed: 12/16/2015 11:56 AM
Beginning
Balance
Accrued
Interest
Payment
Outstanding
Balance
Year
Interest
Fee
Total
2015
$ 372,532.75
2016
$ 372,532.75
$ 3,650.82
$ -
$ -
$ -
$ 376,183.57
2017
$ 376,183.57
$ 3,686.60
$ 7,337.42
$ 372,532.75
$ 379,870.17
$ -
Total: $ 7,337.42 $ 372,532.75 $ 379,870.17
Notes:
a. Interest rate shall be based on the Two Year Treasury note on the date the permit is issued and is fixed for the term.
Interest rate shown above is example only.
b. Interest starts to accrue when permit is issued and is compounded annually.
c. Assumes permit is issued on 12/18/15.
d. Payment in full for fee and interest is due 24 months after permit issuance or prior to issuance of C of 0,
which ever occurs first. This example assumes payment of principal and interest occurs at the end of
2017 (year 2).
e. This table is an example only, the final table may be provided after issuance of the building permit.
Printed: 12/16/2015 11:56 AM
Exhibit B
Example of Payment Due Dates for Impact Fee Deferal (Illustrative Purposes Only)
Annual Interest Rate:
Years
Payments:
Payments Per Year:
Deferred Impact Fee Amount:
Amount Payments are based upon:
Payment Amount:
2.28% Exact Interest Rate will be determined on day of permit issuance.
10
8
1
$ 693,775.80
$ 725,772.63
$ 100,274.29
Notes:
$ 108,418.53 $
693,775.80 $
802,194.33
a. Interest rate shall be based on ten year treasury note on the date the permit is issued and is fixed for the term.
Interest rate shown above is example only.
b. Interest starts to accrue when permit is issued and is compounded annually.
c. Assumes permit is issued on 12/18/15.
e. First payment is due 36 months after permit is issued, with yearly payments required thereafter.
d. Payments are assumed to be made at end of year.
e. This table is an example only, the final table may be provided after issuance of the building permit.
Printed: 12/16/2015 11:57 AM
Beginning
Balance
Accrued
Interest
Payments
Outstanding
Balance
Year
Interest
Fee
Total
2015
$ 693,775.80
2016
$ 693,775.80
$ 15,818.09
$ -
$ -
$ -
$ 709,593.89
2017
$ 709,593.89
$ 16,178.74
$ -
$ -
$ -
$ 725,772.63
2018
$ 725,772.63
$ 16,547.62
$ 48,544.44
$ 51,729.85
$ 100,274.29
$ 642,045.95
2019
$ 642,045.95
$ 14,638.65
$ 14,638.65
$ 85,635.64
$ 100,274.29
$ 556,410.31
2020
$ 556,410.31
$ 12,686.16
$ 12,686.16
$ 87,588.14
$ 100,274.29
$ 468,822.17
2021
$ 468,822.17
$ 10,689.15
$ 10,689.15
$ 89,585.15
$ 100,274.29
$ 379,237.03
2022
$ 379,237.03
$ 8,646.60
$ 8,646.60
$ 91,627.69
$ 100,274.29
$ 287,609.34
2023
$ 287,609.34
$ 6,557.49
$ 6,557.49
$ 93,716.80
$ 100,274.29
$ 193,892.54
2024
$ 193,892.54
$ 4,420.75
$ 4,420.75
$ 95,853.54
$ 100,274.29
$ 98,039.00
2025
$ 98,039.00
$ 2,235.29
$ 2,235.29
$ 98,039.00
$ 100,274.29
$ 0.00
Notes:
$ 108,418.53 $
693,775.80 $
802,194.33
a. Interest rate shall be based on ten year treasury note on the date the permit is issued and is fixed for the term.
Interest rate shown above is example only.
b. Interest starts to accrue when permit is issued and is compounded annually.
c. Assumes permit is issued on 12/18/15.
e. First payment is due 36 months after permit is issued, with yearly payments required thereafter.
d. Payments are assumed to be made at end of year.
e. This table is an example only, the final table may be provided after issuance of the building permit.
Printed: 12/16/2015 11:57 AM
Exhibit C
Example of Letter of Credit Obligation Forecast (Illustrative Purposes Only)
Deferred building permit fee:
Deferred impact fees:
Total deferred fees:
$ 372,532.75
$ 693,775.80
$ 1,066,308.55
(Year
Beginning Outstanding Balance
Building Impact
Fee Fee
Additional Interest
Building Impact
Total
LOC
Obligation
2015 $
2016 $
2017 $
2018 $
2019 $
2020 $
2021 $
2022 $
2023 $
2024 $
2025 $
372,532.75
376,183.57
$ - $
$ 693,775.80 $
$ 709,593.89 $
$ 725,772.63 $
$ 642,045.95 $
$ 556,410.31 $
$ 468,822.17 $
$ 379,237.03 $
$ 287,609.34 $
$ 193,892.54 $
$ 98,039.00 $
3,650.82
3,686.60
7,337.42
15,818.09
16,178.74
16,547.62
14, 638.65
12,686.16
10,689.15
8,646.60
6,557.49
4,420.75
2,235.29
108,418.53
1,085,777.46
1,105, 642.80
742, 320.24
656, 684.60
569,096.47
479,511.32
387,883.63
294,166.83
198,313.29
100, 274.29
Payments
379,870.17
100,274.29
100,274.29
100,274.29
100,274.29
100,274.29
100,274.29
100,274.29
100,274.29
1,182,064.50
a. This example assumes the building permit is issued on 12/18/15 and payments are made on anniversy date.
b. Interest is compounded annually, interest is determined at date of permit issuance (See Agreement for details)
c. Total letter of credit (LOC) obligation assumes the obligation is through the expiration of the letter of credit with
letters of credit renewed at year end immediately after the annual payment.
e. As an example, the LOC during 2016 needs to allow a draw up to $1,189,852.60. If the developer pays $392,888.02
at the end of 2016, then for 2017 the LOC needs to allow a draw up to $814,577.50.
f. This table is an example only, the final table may be provided after issuance of the building permit.
Printed: 12/16/2015 11:58 AM
0201661636520 CessmONEWA .5161 63COBESPIONOSOPOZOOM
ORIGINAL
CflTHflJ BAC1K
• A subsidiary of Cathay General Bancorp
International Department
9650 Flair Drive, 1st Floor
El Monte, CA 91731
RECEIVED
MAY 18 2018
CITY OF TUKWILA 15- 195
CITY CLERK
IRREVOCABLE STANDBY LETTER OF CREDIT NO. ISBSMH180046
DATE: MAY 17, 2018
BENEFICIARY:
CITY OF TUKWILA
6200 SOUTHCENTER BLVD.
TUKWILA, WA 98188
ATTN: CITY CLERK
TEL: (206) 433-1800
APPLICANT:
WASHINGTON TOWERS, LP
18230 E. VALLEY HWY SUITE 195
KENT, WA 98032
AMOUNT: USD781,087.00
(SEVEN HUNDRED EIGHTY ONE THOUSAND AND EIGHTY SEVEN U.S. DOLLARS)
DATE AND PLACE OF EXPIRY: MAY 15, 2019 AND SUBJECT TO
AUTOMATIC EXTENSION CLAUSE
AT CATHAY BANK'S COUNTER
LADIES AND GENTLEMEN:
AT THE REQUEST OF WASHINGTON TOWERS, LP, WE HEREBY ISSUE THIS IRREVOCABLE LETTER
OF CREDIT IN YOUR FAVOR IN THE AMOUNT STATED ABOVE, AVAILABLE BY PAYMENT BY
DRAFT(S) DRAWN AT SIGHT ON CATHAY BANK.
ALL DRAFTS MUST BE MARKED "DRAWN UNDER CATHAY BANK LETTER OF CREDIT
NO. ISBSMH180046 DATED MAY 17, 2018".
WE WARRANT TO YOU THAT ALL YOUR DRAFTS UNDER THIS IRREVOCABLE LETTER OF CREDIT
WILL BE DULY HONORED UPON PRESENTATION AT CATHAY BANK AT 9650 FLAIR DRIVE, EL
MONTE, CA, 91731 ON OR BEFORE THE EXPIRATION DATE, AS THE EXPIRATION DATE MAY BE
AUTOMATICALLY EXTENDED AS SET FORTH BELOW:
SWIFT: CATHUS6L TEL: (626)279-3775 FAX: (626)279-3807
Page 1 of 3
MEN
me
WPM,
CATHflJ Bflf1K
A subsidiary of Cathay General Bancorp
International Department
9650 Flair Drive, 1st Floor
El Monte, CA 91731
THIS IS AN INTEGRAL PART OF STANDBY LETTER OF CREDIT NO. ISBSMH180046
THIS IRREVOCABLE LETTER OF CREDIT IS EFFECTIVE MAY 17, 2018;AND EXPIRES ON MAY 15,
2019, BUT WILL BE AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR ADDITIONAL
PERIODS OF ONE YEAR FROM THE CURRENT EXPIRATION DATE AND ANY FUTURE EXPIRATION
DATES UNLESS, AT LEAST 60 DAYS PRIORTO EXPIRATION DATE, WE NOTIFY YOU IN WRITING BY
COURIER THAT WE ELECT NOT TO RENEW THIS LETTER OF CREDIT FOR SUCH ADDITIONAL ONE
YEAR PERIODS. UPON RECEIPT OF SUCH NOTICE, YOU. MAY DRAW ON THIS LETTER OF CREDIT BY
PRESENTATION OF THE DOCUMENTS MENTIONED HEREIN.
THIS CREDIT IS ISSUED IN CONNECTION WITH THE OBLIGATION OF WASHINGTON TOWERS, LP
UNDER THE BUILDING PERMIT AND IMPACT FEE DEFERRAL AGREEMENT DATED DECEMBER 16,
2015, ENTERED INTO BY AND BETWEEN THE CITY OF TUKWILA AND WASHINGTON TOWERS, LP
(CITY OF TUKWILA CONTRACT NO. 15-195). A DRAWING UNDER THIS CREDIT SHALL BE MADE
BY YOUR PRESENTING TO US THIS LETTER OF CREDIT, AND A DEMAND IN WRITING SIGNED BY A
PERSON WHO HAS BEEN DULY AUTHORIZED TO SIGN ON YOUR BEHALF. SAID DEMAND SHALL
REFER TO THIS CREDIT BY THE ABOVE NUMBER, SHALL STATE THE AMOUNT DEMANDED AND
SHALL INCLUDE A STATEMENT ISSUED AND SIGNED BY BENEFICIARY, CERTIFYING AS FOLLOWS:
"I, THE UNDERSIGNED DULY AUTHORIZED SIGNER FOR THE CITY OF TUKWILA, HEREBY CERTIFY;
THAT WASHINGTON TOWERS, LP IS IN DEFAULT OF ITS OBLIGATIONS UNDER THE BUILDING.
PERMIT AND IMPACT FEE DEFERRAL AGREEMENT DATED DECEMBER 16, 2015 (CITY OF
TUKWILA CONTRACT NO. 15-195), AND HAS FAILED TO CURE SUCH DEFAULT WITHIN ANY
APPLICABLE CURE PERIOD PROVIDED FOR UNDER SAID AGREEMENT."
UPON RECEIPT OF THE SAID DOCUMENTS WE SHALL PAY TO YOU THE AMOUNT STATED IN THE
SAID DEMAND TO BE PAYABLE TO YOU WITHOUT INQUIRING WHETHER YOU HAVE A RIGHT TO
SUCH AMOUNT AS BETWEEN YOURSELF AND WASHINGTON TOWERS, LP, PROVIDED THAT SUCH
AMOUNT, TOGETHER WITH THE OTHER AMOUNTS PAID TO YOU UNDER THIS CREDIT, IF ANY,
DO NOT EXCEED THE TOTAL AMOUNT OF THE CREDIT.
PURSUANT TO U.S. LAW, WE ARE PROHIBITED FROM ISSUING, TRANSFERRING, ACCEPTING OR
PAYING LETTERS OF CREDIT TO ANY PARTY OR ENTITY THAT MAY BE SUBJECT OF THE OFFICE OF
FOREIGN ASSET CONTROL, U.S. DEPARTMENT OF THE TREASURY REGULATIONS OR OTHER
APPLICABLE U.S. LAWS AND REGULATIONS.
SWIFT: CATHUS6L TEL: (626)279-3775 FAX: (626)279-3807
Page 2 of 3
ORIGINAL
CflTHflJ B RflI
A subsidiary of Cathay General Bancorp
International Department
9650 Flair Drive, 1st Floor
8 Monte, CA 91731
THIS IS AN INTEGRAL PART OF STANDBY LETTER OF CREDIT NO. ISBSMH180046
ALL BANK CHARGES AND COMMISSIONS INCURRED IN THIS TRANSACTION ARE FOR THE
APPLICANT'S ACCOUNT.
THIS CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES 1998 (ISP98),
INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 590.
YOURS TRULY,
FOR AND ON BEHALF OF
CATHAY BANK
YEN CHIANG
VP AND [NTT BANKING OFFICER
WINNIE TSE
VP AND INT'L BANKING OFFICER
SWIFT: CATHUS6L TEL: (626)279-3775 FAX: (626)279-3807
Page 3 of 3
casseffeareasmessemasaselesereasnamosseossameaseossourarergo
d
rP
_ .ee----
A subsidiary of Cathay General Bancorp
International Department
9650 Flair Drive, 1st Floor
El Monte, CA 91731
IRREVOCABLE STANDBY LETTER OF CREDIT NO. ISBSMH160026
DATE: MAY 16, 2016
BENEFICIARY:
CITY OF TUKWILA
6200 SOUTHCENTER BLVD.
TUKWILA, WA 98188
ATTN: CITY CLERK
TEL: (206) 433-1800
APPLICANT:
WASHINGTON TOWERS, LP
18230 E.VALLEY HWY SUITE 195
KENT,WA 98032
AMOUNT: USD1,080,567.81
(ONE MILLION EIGHTY THOUSAND FIVE HUNDRED SIXTY SEVEN AND 81/100 U.S. DOLLARS)
DATE AND PLACE OF EXPIRY: MAY 15, 2017 AND SUBJECT TO
AUTOMATIC EXTENSION CLAUSE
AT CATHAY BANK'S COUNTER
LADIES AND GENTLEMEN:
AT THE REQUEST OF WASHINGTON TOWERS, LP,WE HEREBY ISSUE THIS IRREVOCABLE LETTER
OF CREDIT IN YOUR FAVOR IN THE AMOUNT STATED ABOVE, AVAILABLE BY PAYMENT BY
DRAFT(S) DRAWN AT SIGHT ON CATHAY BANK.
ALL DRAFTS MUST BE MARKED "DRAWN UNDER CATHAY BANK LETTER OF CREDIT
NO. ISBSMH160026 DATED MAY 16, 2016".
WE WARRANT TO YOU THAT ALL YOUR DRAFTS UNDER THIS IRREVOCABLE LETTER OF CREDIT
WILL 1'3Iw DI.,NLY HONORED UPON PRESENTATION AT CATHAY BANK AT 9650 FLAIR DRIVE, EL
MON'T E, CA, 91.731 ON OR BEFORE THE EXPIRATION DATE, AS THE EXPIRATION DATE MAY BE
AUTOMATICALLY EXTENDED AS SET FORTH BELOW:
Page I of 3
'4a ORIGINAL
Jt
3�l_��1'ti , '
WT A subsidiary of Cathay General Bancorp
International Department
9650 Flair Drive, 1st Floor
El Monte, CA 91731
THIS IS AN INTEGRAL PART OF STANDBY LETTER OF CREDIT NO. ISBSMH160026
THIS IRREVOCABLE LETTER OF CREDIT IS EFFECTIVE MAY 16, 2016, AND EXPIRES ON MAY 15,
2017, BUT WILL BE AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR ADDITIONAL
PERIODS OF ONE YEAR FROM THE CURRENT EXPIRATION DATE AND ANY FUTURE EXPIRATION
DATES UNLESS,AT LEAST 60 DAYS PRIOR TO EXPIRATION DATE, WE NOTIFY YOU IN WRITING BY
COURIER THAT WE ELECT NOT TO RENEW THIS LETTER OF CREDIT FOR SUCH ADDITIONAL ONE
YEAR PERIODS. UPON RECEIPT OF SUCH NOTICE, YOU MAY DRAW ON THIS LETTER OF CREDIT BY
PRESENTATION OF THE DOCUMENTS MENTIONED HEREIN.
THIS CREDIT IS ISSUED IN CONNECTION WITH THE OBLIGATION OF WASHINGTON TOWERS, LP
UNDER THE BUILDING PERMIT AND IMPACT FEE DEFERRAL AGREEMENT DATED DECEMBER 16,
2015, ENTERED INTO BY AND BETWEEN THE CITY OF TUKWILA AND WASHINGTON TOWERS, LP
(CITY OF TUKWILA CONTRACT NO. 15-195). A DRAWING UNDER THIS CREDIT SHALL BE MADE
BY YOUR PRESENTING TO US THIS LETTER OF CREDIT,AND A DEMAND IN WRITING SIGNED BY A
PERSON WHO HAS BEEN DULY AUTHORIZED TO SIGN ON YOUR BEHALF. SAID DEMAND SHALL
REFER TO THIS CREDIT BY THE ABOVE NUMBER, SHALL STATE THE AMOUNT DEMANDED AND
SHALL INCLUDE A STATEMENT ISSUED AND SIGNED BY BENEFICIARY, CERTIFYING AS FOLLOWS:
"I, THE UNDERSIGNED DULY AUTHORIZED SIGNER FOR THE CITY OF TUKWILA, HEREBY CERTIFY
THAT WASHINGTON TOWERS, LP IS IN DEFAULT OF ITS OBLIGATIONS UNDER THE BUILDING
PERMIT AND IMPACT FEE DEFERRAL AGREEMENT DATED DECEMBER 16, 2015 (CITY OF
TUKWILA CONTRACT NO. 15-195), AND HAS FAILED TO CURE SUCH DEFAULT WITHIN ANY
APPLICABLE CURE PERIOD PROVIDED FOR UNDER SAID AGREEMENT."
UPON RECEIPT OF THE SAID DOCUMENTS WE SHALL PAY TO YOU THE AMOUNT STATED IN THE
SAID DEMAND TO BE PAYABLE TO YOU WITHOUT INQUIRING WHETHER YOU HAVE A RIGHT TO
SUCH AMOUNT AS BETWEEN YOURSELF AND WASHINGTON TOWERS, LP, PROVIDED THAT SUCH
AMOUNT,TOGETHER WITH THE OTHER AMOUNTS PAID TO YOU UNDER THIS CREDIT, IF ANY,
DO NOT EXCEED THE TOTAL AMOUNT OF THE CREDIT.
PURSUANT TO U.S. LAW, WE ARE PROHIBITED FROM ISSUING,TRANSFERRING, ACCEPTING OR
PAYING LETTERS OF CREDIT TO ANY PARTY OR ENTITY THAT MAY BE SUBJECT OF THE OFFICE OF
FOREIGN ASSET CONTROL, U.S. DEPARTMENT OF THE TREASURY REGULATIONS OR OTHER
APPLICABLE U.S. LAWS AND REGULATIONS.
Page 2 of 3
ORIGINAL
2 j
-- -__
A subsidiary of Cathay General Bancorp
International Department
9650 Flair Drive, 1 st Floor
El Monte, CA 91731
THIS IS AN INTEGRAL PART OF STANDBY LETTER OF CREDIT NO. ISBSMH160026
ALL BANK CHARGES AND COMMISSIONS INCURRED IN THIS TRANSACTION ARE FOR THE
APPLICANT'S ACCOUNT.
THIS CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES 1998 (ISP98),
INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 590.
YOURS TRULY,
FOR AND ON BEHALF OF
CATHAY BANK
w
AILEEN LUH YLN` BY CHIANG
FVP, MANAGER, INVL BANKING VP, INT'L BANKING OFFICER
Page 3 off`3