HomeMy WebLinkAbout17-130 - Tukwila Village Development Associates LLC - Payment in Lieu of Constructing Frontage Implrovements for Tukwila Village17-130
Council Approval N/A
Reference 12-129
AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA
AND TUKWILA VILLAGE DEVELOPMENT ASSOCIATES, LLC
FOR PAYMENT IN LIEU OF CONSTRUCTING FRONTAGE IMPROVEMENTS
This Agreement ("Agreement") is made and entered into this day of July, 2017 by
and between the CITY OF TUKWILA ("City"), a non -charter, optional code Washington
municipal corporation, and the TUKWILA VILLAGE DEVELOPMENT ASSOCIATES, LLC,
Washington limited liability company ("Developer").
RECITALS
WHEREAS, the Developer has entered into that certain Disposition and
Development Agreement (the "DDA") dated as of October 30, 2012 with the City which gives
the Developer exclusive rights to acquire and develop certain parcels of real property owned by
the City located at the intersection of Tukwila International Boulevard and S. 144th Street, as
more particularly described in the Legal Description contained in Attachment A hereto and as
depicted on Attachment B hereto (collectively, the "Tukwila Village Property"); and
WHEREAS, Section 5.3 of the Disposition and Development Agreement describes the
terms of the Developer Infrastructure Work, including street improvements, utilities, and other
infrastructure improvements; and
WHEREAS, under Tukwila Municipal Code ("TMC") Section 11.12.030, this
Development is required to install curbs and gutters, sidewalks and other frontage improvements
in accordance with specifications and standards of the TMC and approved by the Public Works
Department; and
WHEREAS, all roadway design in the City shall meet the design guidelines and
requirements in the Transportation Element of the Comprehensive Land Use Plan, other
applicable subarea plans, and the requirements of the TMC; and
WHEREAS, the Developer has incurred costs in developing the design of the required
frontage improvements along S 144th Street ("Frontage Design") to a 90% level of completion
and desires to be credited for these expenses; and
WHEREAS, the City has funded and will complete a street improvement project titled
South 144th Street Phase II ("Project") that will construct the required frontage improvements, as
well as other amenities in accordance with specifications and standards of the TMC and
approved by the Public Works Department; and
WHEREAS, the Developer has provided the Frontage Design to the City to be included
in the Project; and
WHEREAS, under TMC Section 11.12.030(C) payment in lieu of improvements is an
option that may be exercised by the Developer if approved by the Director of Public Works; and
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WHEREAS, the City and Developer have agreed that street frontage improvements
would be more efficiently constructed as part of the City's Project and the Developer agrees to
pay the City an amount equal to the cost of installing the required frontage improvements as
specified in this Agreement; and
WHEREAS, the City and the Developer agree to continue coordination between the site
development and the roadway projects to avoid duplicating work or interfering with safe and
efficient construction methods and that adjustments to the designs and schedule for mutual
benefit may arise; and
WHEREAS, the City and the Developer agree to cause their respective general
contractors and their respective subcontractors to use their best efforts to coordinate all
construction activities to avoid any unnecessary delays or conflicts; and
WHEREAS, pursuant to TMC 11.12.030(C) the Developer and City hereby enter into
this Agreement pursuant to the terms and conditions set forth herein;
NOW THEREFORE, in consideration of the foregoing mutual promises and other good
and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as
follows:
AGREEMENT
1. Improvements. The Director has determined that street frontage improvements
required for the Development should be constructed as part of the City's Project.
2. Payment. The Developer has provided documentation satisfactory to the
Director that establishes the cost of materials, labor and quantities in an amount equal to the
property owner's cost of installing frontage improvements. The Developer shall pay the City a
total amount of $594,293.00 in lieu of designing and constructing frontage improvements in one
payment, paid upon substantial completion of the City's Project, as determined by the City. This
payment reflects a credit of $80,000 for the costs incurred by the Developer to begin the design
of the S 144th Street frontage improvements. After the payment has been received by the City,
the City will prepare a letter of receipt for the Developer that identifies the total amount paid to
the City on behalf of the Developer that was credited toward the installation of the City required
frontage improvements constructed within the City owned right-of-way. The City shall not
consider payment made in lieu of frontage improvement during the Residual Land Value
Analysis conducted under the DDA.
3. Ownership of Design Documents. The Developer shall turn over the ownership
to the City of all engineering work done for the frontage improvements which was completed by
Barghausen Consulting Engineers, Inc. This transfer of ownership is effective with this
Agreement and is not subject to Section 13 below of this Agreement.
4. Amendment. This Agreement shall only be amended by a written agreement
executed by both the Developer and the City.
Page 2 of 8
5. Recording. The terms and conditions of this Agreement shall be covenants
running with the land. The Developer authorizes this to be recorded in the office of the
Recorder, King County, Washington. After receipt of the payment set forth in Section 2 above,
the City shall record a termination of this Agreement in the office of the Recorder, King, County,
Washington.
6. Enforcement. This Agreement may only be enforced by the parties hereto. No
third party shall have standing to enforce the terms of this Agreement. This Agreement shall be
governed by the laws of the State of Washington.
7. Waiver of Objection. The Developer, for itself and its successors and assigns
hereby waives any objection that it may have to the payment. City and the Developer agree that
the Developer's payment of $594,293.00 to City as provided in Section 2 above shall constitute
full and complete satisfaction of the Developer's obligation to construct or reimburse the City for
the street frontage improvements in connection with the Development.
8. Severability. If any section, sentence, clause, provision or portion of this
Agreement is declared unlawful or unconstitutional for any reason, the remainder of this
Agreement shall continue in full force and effect.
9. Notice. All notices or communications provided for by this Agreement must be
in writing, and may either be delivered personally, by certified mail, or by express delivery
service, return receipt requested. Such notices shall be deemed delivered on the date of receipt,
as evidenced by the return receipt or the equivalent, (e.g., date stamp of recipient). All notices or
communications shall be given to the Parties at their addresses set forth below:
For the City of Tukwila:
City Clerk
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
For Tukwila Village Development Associates, LLC:
Tukwila Village Development Associates, LLC
Attn: Bryan M. Park
201 — 27th Avenue SE, Building A, Suite 300
Puyallup, WA 98374
10. Entire Agreement. This Agreement contains the entire agreement between the
Developer and the City regarding this subject matter.
Page 3 of 8
11. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original and all of which shall constitute but one original.
12. Recitals. The Recitals set forth above are hereby incorporated in and made a part
of this Agreement by this reference.
13. Termination. This Agreement shall terminate upon the Developer making final
payment in accordance with Section 2 above. This Agreement may be terminated by either party
in the event that the sale of the Properties by the City to the Developer is not concluded. The
party initiating the early termination shall provide the other party 30 days written notice of intent
to terminate the Agreement. No payment shall be required by the Developer in the event of an
early termination.
[The remainder of this page is intentionally left blank. The executing signatures of the
parties are on the following pages.]
Page 4 of 8
ON BEHALF OF CITY OF TUKWILA, a Washington municipal corporation
Its: Mayor
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Date:
Attest/Authenticated:
Approved as to Form:
Christy O'Flaherty, City Clerk City Attorney
STATE OF WASHINGTON )
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COUNTY OF
On 3�'' a3 , 2017, before me, the undersigned, a Notary Public, personally appeared
ALLAN EKBERG, personally known to me (or proved to me on the basis of satisfactory
evidence) as the person whose name is subscribed to the within instrument, and acknowledged to
me that he executed the same in his authorized capacity as MAYOR of THE CITY OF
TUKWILA, and that by his signature on the instrument the entity upon behalf of which he
acted, executed the instrument.
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Print Name: -DA. -0. 6 `� l Yf 0 idetP-L.
NOTARY PUBLIC in and for the State of
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My commission expires: /a / 9 /
Page 5 of 8
ON BEHALF OF TUKWILAaVVILLAGE DEVELOPMENT ASSOCIATES, LLC
By:
Bryan M. Park
Its: Manager
Date:
STATE OF WASHINGTON )
)ss
COUNTY OF KING )
On �v a-0 , 2017, before me, the undersigned, a Notary Public, personally appeared
BRYAN ». PARK, personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person whose name is subscribed to the within instrument, and acknowledged
to me that he executed the same in his authorized capacity, as MANAGER of TUKWILA
VILLAGE DEVELOPMENT ASSOCIATES, LLC, and acknowledged it to be the free and
voluntary act of such party for the uses and purposes mentioned in the instrument.
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Page 6 of 8
ATTACHMENT A
LEGAL DESCRIPTION
Parcels A, B and C, City of Tukwila Lot Consolidation No. L13-021, as recorded under King County
Recording No. 20150428900001; and
Parcel A, City of Tukwila Lot Consolidation No. L16-031, as recorded under King County Recording No.
20160629900001.
Page 7 of 8
ATTACHMENT B
DEPICTIONS
[See the attached Depictions B-1 and B-2]
Page 8 of 8
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