HomeMy WebLinkAboutCDN 2017-09-11 Item 2C - Permit - Temporary Use Permit at Foster Golf Course from Seattle City LightELty of Tukwila
Allan Ekberg, Mayor
TO: Community Development and Neighborhoods Committee
FROM: Rick Still, Parks and Recreation Director
CC: Mayor Ekberg
DATE: August 30, 2017
SUBJECT: Foster Golf Links Temporary Use Permit
ISSUE
Temporary Use permit of the City of Seattle — City Light Department fee -owned right located at
Foster Golf Links.
BACKGROUND
The City of Seattle — City Light Department (SCL) completed an audit of their properties and
discovered that a property they own, located at Foster Golf Links, is not currently under a
Temporary Use Permit and that SCL is not currently being compensated for use of the property
by the City of Tukwila. SCL property may only be used for non-utility private or governmental
purposes if SCL receives fair market value compensation for the use.
The subject property is detailed in Attachment B. It encompasses a significant portion of the
parking lot, landscaping to the west of parking lot, the trail, and potentially the sidewalk. The
total area being used at Foster Golf Links as a right-of-way is 83,236 square feet, according to a
survey completed by SCL.
DISCUSSION
Parks and Recreation has carefully considered the options for this property, and worked
with SCL to find a mutually beneficial agreement. Attachment A is a two-year temporary
permit for use for the SCL property. SCL offers a 50% discount for the presence of
power lines, and a 10% capitalization rate for commercial uses of SCL owned property.
SCL is willing to increase the discount to 75% for the continued care of the property
(landscaping and parking lot maintenance).
Below is an example of the fee breakdown:
Market Value: $23.33
Discount: 50%
Capitalization Rate: 10%
Price per Sq. Ft.: $1.17
Square Feet: 83,236
Monthly Rate: $8091.23
Washington State Excise Tax (12.84%): $1038.90
Total: $9130.14 per month
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NFORMATIONAL MEMO
Page 2
Discount 75%, Monthly Rate: $2282.54
Washington State Excise Tax (12.84%): $293.08
Total: $2575.62
SCL has taken into consideration the budget impact and set the initial base permit fee at
$2500 per month, increasing by 3% annually. Beginning September 1, 2018, the
monthly fee will increase to $2575.00 and on September 1, 2019 the monthly fee will
increase to $2652.25.
FINANCIAL IMPACT
The financial impact is as follows:
Monthly Fee Total
September — December 2017 $2500.00 $10,000.00
January — August 2018 $2575.00 $25,600,00
September 2018 — August 2019 $2652.25 $31,827.00
Total Impact $67,427.00
RECOMMENDATION
Staff appreciates the 75% discount SCL is extending and recommends entering into a two-year
agreement.
A. City of Seattle — City Light Department Temporary Permit
B. Seattle City Light property map
MAGoIASCL properYSCL Lease Info Memo 9,5,17,doc
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Attachment A
L
CITY OF SEATTLE - CITY LIGHT DEPARTMENT
TEMPORARY PERMIT
P.M. 4230414-3-408
THIS PERMIT is issued by THE CITY OF SEATTLE, a Washington Municipal Corporation
acting through its CITY LIGHT DEPARTMENT ("City"), to CITY OF TUKWILA a Washington
Municipal Corporation ("Permittee"), for temporary use of a portion of the City's fee -owned
transmission line corridor property ("Premises") described as follows:
Permitted Area:
A total of 83,236 square feet of the City of Seattle PNTTransrnission Line Corridor being a
portion of the West half of Section 14, Township 23 North, Range 4 East, W.M., in King County,
Washington.
Permitted Area is depicted on "Exhibit A" attached hereto and by this reference incorporated
herein, Subject to the following terms and conditions:
TERMS AND CONDITIONS
1. Use. Permittee's temporary use of the Premises shall be for parking of vehicles associated
with operating their business.
2. Term. The term of this Permit shall begin on September 1, 2017, and shall continue on a
month-to-month basis until August 31, 2019, or until cancelled by either party as provided in
Section 23 herein, whichever occurs first. The term may be extended by mutual written
agreement of the Pat -ties through amendment to this Permit.
3. Rent. The Permittee agrees to pay the following fees for its temporary use of the Premises as
above stated:
Initial Base Rent. The initial base rent for the Premises shall be Two Thousand Five
Hundred Dollars ($2,500.00) per month. payable in advance.
b. Base Rent Escalation, Review, and Adjustment. The Base Rent for this Permit shall
increase by 3% per year beginning September 1. 2017 and every September I"
thereafter should the term be extended by written amendment to this Permit. For
example, base rent plus leasehold excise tax for the years 2017 and 2018 is calculated
as follows:
September 2018 $2,575.00 (Rent)
15
September 2019 $2,652.25 (Rent)
In addition, the base rent shall be reviewed and adjusted on June 1, 2020 should the term be
extended by written amendment to this Permit and every three (3) years on June I"
thereafter should the term be extended by written amendment to this Permit. In the case of
this Permit, the review and adjustments will occur in the years 2020, 2023, 2026, and so
oil, for as long as this Permit is in effect. Adjustments to the base rent will be based on the
fair market value of the underlying land and the City's expected rate of return. In the years
where the base rent is being reviewed and adjusted, the rent will increase by the greater of:
i) 3%; or ii) the increase in the underlying land value and any adjustment made to the City's
expected rate of return. Under no circumstances will the base rent be decreased.
c. To assure proper posting of payments, Permittee shall note on its checks "City Light
Permit P.M. #230414-3-408", an(I include the payment stub from the invoice.
d. Permittee hereby agrees that. in case of an increase in rent or other fees, all other
provisions of this Pert -nit shall remain in full force, changed only by such alterations
in the amount of rent or other fees and not otherwise. Permittee further agrees to
Pay the correct amount of total rent due irrespective of any billing statement
Permittee may receive from the City, and without prompting from the City.
4. Taxes and Other Fees. Permittee shall pay all license, excise and occupation taxes in
connection with Permittee's business conducted on the Premises, and all taxes on the
Pernnittee's interest created by this Temporary Permit.
5. Buildings or Structures. No building Or Structure shall be constructed, placed, or allowed to
remain upon the Premises. No ponds, ditches or open water retention facilities of any kind shall
be constructed, created, or allowed to remain on the Premises.
6. Cuts or Fills. Permittee agrees to submit plans furnishing details of any blacktopping, grading,
I -
cuts. or fills for approval by the CEO and General Manager of City Light, or his representative,
prior to the undertaking of any such blacktopping, grading, Cut or fill operation on the Premises.
The City reserves the right to prohibit grading or filling on the Premises.
7. Damage to Permittec's Property. Permittee agrees that the City shall not be liable for any
damage to Permittee's personal property by reason of any construction, alterations,
maintenance or improvements made or performed within the Premises by the City, its agents
or representatives.
8. Other Uses. Perrilittee agrees not to use the Premises for any other purpose whatsoever than
as set forth above and agrees that the CEO and General Manager of Seattle City Light shall be
the sole judge of any conflict or violation of such use as above stated.
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9. Permit for Use of Premises Only. This Permit is for use of the Premises only and shall not
be construed to replace or be used in lieu of any permits or licenses which may be required,
granted, or supervised by any other subdivision of government charged with licensing,
policing, or supervising the operations of the Permittee.
Z7�
10. Zoning. Permittee agrees that use of the Premises must be consistent with applicable zoning
laws and reoulations-, where the proposed use is not consistent with said laws and regulations,
said use is made conditional upon the Permittee obtaining conditional zoning or a zoning
variance if necessary.
11. Property Condition. Permittee agrees to maintain the Premises occupied or used in an
orderly, fit and sanitary condition. At the termination of this Permit, Permittee shall restore
the Premises to as good a condition or better than that which existed prior to issuance of this
Permit.
12. Ciq's Access. The Permittee shall not at any time interfere with the City's access to, over, or
through the Premises.
13. Non -Exclusivity, Where this permit is issued for access, it shall not be deemed or held to be
an exclusive permit, or prohibit City Light from granting other permits of like or other nature;
provided, however, that no other use of the Premises shall be permitted if such use Would
unreasonably interfere with Pert-nittee's use of the Premises.
14. Access Road Maintenance. To avoid damage to Permittee's access road and parking lot, if
any, City Light recommends that the Permittee maintain all access roads to American
Association of State Flighway and Transportation Officials H-93 loading standards (heavy
loading). Should City Light, its authorized agents, or employees, or any other individual or
entity permitted by City Light to access the Premises ("other permittees"), be required to do
any work to the Premises, such work will be done in a workman like manner and the access
road and pat -king lot on the Premises will be restored to the same or better condition that it was
in prior to commencement of the work.
15. Vehicles, Equipment, Signs. The Permittee agrees to not to allow vehicles or other equipment
within five (5) feet of any pole or transformer within the Premises and to maintain at least a 15
foot vertical clearance from power lines. Permittee further agrees not to place signs or any
material or objects whatsoever against any transmission line, tower, or pole.
16. Warning Signs, The City reserves the right to require the Permittee to place signs or other
warning devices of hazards if any governmental agency or the City determines such hazards
exist,
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17. Laws and Regulations. The Permittee agrees to comply with all Federal, State and local
electrical safety laws and regulations.
18. Indemnification and Insurance.
a) Permittee agrees to indemnify and hold harmless The City of Seattle from all claims,
actions or damages of every kind and description, including all claims, actions or
damages brought by Permittee's employees., contractors, agents, representatives,
tenants, or invitees, which may accrue from or be suffered by reason of Permittee's use
of the Premises, the performance of any work in connection with such use. or
Permittee's breach of any of its obligations under this Permit. In case of any suit or
action brought against the City arising out of or by reason of any of the above causes.,
Permittee shall, upon notice to Permittee of the commencement of such action, defend
the same at no cost or expense to the City, and Permittee will fully satisfy any judgment
rendered in said action adversely to the City, except to the extent of the negligence or
willful misconduct of the City, its agents or representatives. By this indemnity
provision, the Permittee expressly waives any immunity its businesses may have from
claims by its businesses' employees under any workers' compensation or industrial
insurance law arising Out of workplace injuries, as defined under RCW 51.24.030, in
connection with Permittee's use of the Premises.
b. The Permittee shall obtain and maintain continuously for the term of this Permitat
its own expense, an occurrence form Commercial General Liability insurance policy
covering the use of the property by the Permittee. Minimum limit of liability shall
be $2,000,000 each occurrence combined single limit bodily injury and property
damage.
Such insurance shall include "the City of Seattle" as an additional insured for
primary and non-contributory limits of liability , and shall not canceled unless no
less than thirty (30) days prior written notice is provided to the City, except ten ( 10)
days notice with respect to cancellation for non-payment of premium. Failure to maintain
required insurance shall be considered a material breach of contract, Subject to the
remedies laid out in Paragraph 25 below.
The permittee shall send certification of insurance meeting the minimum
coverages, In -nits and terms as specified above to:
Seattle City Light, Real Estate Services
700 Fifth Avenue, Room 3325
P.O. Box 34023
W.
Seattle, Washington 98124-4023
Such certification shall include an actual copy of the policy provision(s) documenting that "The
City of Seattle" is all additional insured for primary and non contributory limits of liability.
19. Inspection. The CEO and General Manager of City Light, or his representatives, shall have
the right at all times to inspect said Premises for the purpose of observing the conditions
thereof, and the manner of compliance by the Permittee with the terms and conditions of this
Permit.
20. Dight to_Suspend. The CEO and General Manager of City Light shall have the right at all
times to Suspend any or all operations on the Premises which he deems to be detrimental to the
best interest of the City or the public.
21. Hazardous Materials. Permittee covenants and agrees that neither they, nor their employees,
contractors, agents, or invitees will store, dump, bury or transfer any hazardous substances,
flammable materials, inoperable vehicles, chemicals, oils, fuels, or containers for said
substances, chemicals, oils, fuels, etc., on the Premises, and shall comply with all Federal. State
and local environmental laws and regulations.
22. Cancellation. This Permit may be cancelled at any time upon sixty (60) days written notice
by either party to the other party, mailed to the other party's last known address.
23. Temporary Nature of Permit. Permittee understands and agrees that Perrilittee's status under
this Permit is only that of temporary licensee, with term permitted temporary use of tile
Premises limited by the terms of this Permit and the City's need to use the Premises and
Permittee also understands and agrees that cancellation or non -renewal of this Permit for any
reason whatsoever shall not place any obligation oil the City to provide Permittee any
alternative rental property or facilities. This permit vests no permanent property rights in the
Permittee and cancellation or non -renewal thereof does not render Permittee a "displaced
person" as defined under RCW 8.26.020 or Chapter 20.84 Seattle Municipal Code.
24. Violation of Terms. Should the Permittee violate, breach or fail to keep or perform any
covenant, agreement, term or condition of this Permit, Permittee shall forfeit any and all rights
herein Permitted, and the City shall have the right to immediately cancel and terminate said
Permit and all of the Permittee's rights hereunder without liability for loss or damage that the
Permittee may thereby sustain; and upon termination of this Permit, the Permittee will vacate
the Premises and remove its personal property therefrom.
15. Removal of Personal Propertv. Permittee shall remove all of its personal property from the
Premises on or before the termination date of this Permit. If Permittee fails to remove such
personal property on or before the termination of this Permit, the same shall, at the City's
option, become a part of the realty and the property of The City of Seattle, or the City may, at
19
its election, remove the same without liability to the Permittee for loss, injury or damage
thereto, and the cost of such removal and restoration of said premises to their former condition
shall be paid by the Permittee to the City upon demand.
26. Survival. All of the licensing, Permitting, tax and other legal requirements or obligations
incurred by the Permittee hereunder shall survive the cancellation or termination date of this
Permit. All of the indemnification and hold harmless provisions, as well as the hazardous
substance covenant, of this Permit shall Survive the cancellation or termination date hereof.
27. Assipnnient. This Permit is not transferable or assignable, in whole or in part, nor may any
portion of the rented premises be sublet, without the express written approval of the CEO and
General Manager of City Light, or his representative.
GRANTED this __._ _ day of
FOR THI-.,' CITY OF SEATTLE CITY LIGHT DEPARTMENT-,
Maureen L. Barnes
Real Estate Manager
ACCEPTED:
PERMITTEE:
CITY OF TLJKW ILA
ES
20
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A PORTION OF P85 FORMER PUGET SOUND ELECTRIC RAILWAY
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REFERENCES
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RECORD OF SURVEY- REOXIRGO4G 24iXeliePO221211*.i'
ROCCA.° OF SURVEY- REEDREOLG INFLEDER 040105.200044
RECORD CIF SARNEY RECOREANG MADER 01-060424407
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STA. 1245-410 TY TO 156.24.22
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4ES 2-0.0' ACM POE TOPFX.DIVIOX 5222257 042' xOEXEAN
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ALS 2X0470.0 MAO NO CAP AMMO OMR, DOWN DX
47•550 0' MASS 045NEWIN TAO RUN) -E% 0.0022257 217074
NEWEST' TILE MEMEL STALEPED 232.0r,
220070. 250., Al CASE, 002244 020' 570 27
PUBLIC LAND SURVEY SYSTEM INDEX
0.24I.t4 '22E/4 1.4 57010.0*24, 217242028423 eases. PASSE 4 EWE loVJA
NOVA OP 74E 524122 REORDEL 5,7402242420 24321247 I:W.1257 45557,220.0.
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A PORTION OF Th FORMER PUGET SOUND ELECTRIC RAILWAY
LYING IN THE STEPHEN FOSTER DONATION LAND CLAIM NO. 3a
TUIGYILA, WASHINGTON
SURVEYED 227 SAE
00.0.24 ED SAE I
B'21 YES
227548
02210. 03-7.0--2012
224504 JOS 1440-4 1261023
NAND 12E4E423-4
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