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HomeMy WebLinkAbout18-093 - Tukwila Nails Inc - Public Safety Plan Settlement Agreement18-093 Council Approval 6/18/18 SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS TUKWILA NAILS INC ("Tukwila Nails") and CITY OF TUKWILA, a Washington municipal corporation ("the City"), collectively ("the Parties"), hereby enter into this Settlement Agreement. I. RECITALS A. On November 6, 2017, the Tukwila City Council adopted Ordinance No. 2554, authorizing the City to acquire all property rights necessary to complete its Public Safety Plan Projects (the "Projects") through negotiation and/or the use of eminent domain, if necessary. B. On December 8, 2017, the City filed a Petition in Eminent Domain ("Petition") to acquire property located at 15011, 15015, and 15019 Tukwila International Boulevard, Tukwila, Washington, also known as King County Parcel No. 004100-0516 (the "Property"). C. Tukwila Nails is a lessee on the Property and was served with the City's Petition on December 19, 2017. Tukwila Nails did not timely appear after being served with the Petition, and an Order of Default, Default Judgment, and Decree of Appropriation was entered against Tukwila Nails on February 9, 2018. D. The Parties desire to resolve any and all issues related to the City's acquisition of the Property by entering into this Agreement. The Parties intend that this Agreement will fully resolve these matters and that Tukwila Nails waives any and all rights to bring litigation related to the City's acquisition of the Property, the Projects, or relocation expenses. NOW, THEREFORE, for and in consideration of obligations and exchange of promises set forth herein, the Parties agree as follows: II. AGREEMENT 1. City Payment. The City shall pay Tukwila Nails the sum of Fifty Thousand Dollars and No/100 ($50,000.00), which payment shall be made to Tukwila Nails as follows: (1) payment in the amount of $12,500 to be paid within thirty (30) days after execution of this Agreement; and (2) payment of the remaining balance of $37,500 to be paid within thirty (30) days after Tukwila Nails has vacated the Property and such vacation has been verified by the City, provided that all other settlement conditions have also been met. Payments will be made by check made payable to Tukwila Nails and mailed to: 3811 South 252nd Street, Kent, Washington 98032-9767. 2. Lease Agreement and Rent. If and when the City acquires title to the Property, the City agrees to enter into a lease agreement with Tukwila Nails for continued use of the Property through March 31, 2019. Rent under such lease shall be in the reduced amount of $925 per month, plus leasehold excise tax in the amount of $119.00. Tukwila Nails agrees to enter into such lease agreement with the City within fifteen (15) days of the date that the City acquires title to the Property. This reduction in rent will be offered only to Quang Nguyen and Duong Nguyen. This lease shall be a triple net lease, and Tukwila Nails will be required to pay all taxes, insurance, SETTLEMENT AGREEMENT - 1 rat al a utilities, and property maintenance expenses. The lease shall require that Tukwila Nails provide reasonable access to the Property for the purpose(s) of permitting the City and its agents to conduct surveys, building assessments, and other related inspections. The lease shall provide that Tukwila Nails may remain on the Property until March 31, 2019, provided the City has acquired the Property prior to that date. Tukwila Nails may terminate said lease upon fifteen (15) days' written notice to the City. Tukwila Nails agrees that it will not enter into any subleases relating to the Property. 3. Permit Fee Credit. Should Tukwila Nails decide to relocate its business operations to another location within the City of Tukwila, Tukwila Nails shall be entitled to a permit fee credit of up to $2,500 to be applied to any permit fees required by the City of Tukwila related to a tenant improvement made by Tukwila Nails at such new location. This credit can be applied to any land use, building permit, mechanical permit, electrical permit, plumbing permit, sign permit, or public works permit. This credit is non -transferable, has no cash value, and shall expire on January 1, 2020. 4. Participation in Condemnation Proceedings and Release. In exchange for payment, reduced rent, and permit fee credit provided to Tukwila Nails under this Agreement, Tukwila Nails knowingly and voluntarily agrees to release and forever discharge the City (including its past and present officers, officials, directors, shareholders, employees and successors in interest) from all claims, demands, liabilities, and causes of action of any nature related in any way to the City's acquisition of the Property, the Project, relocation assistance under chapter 8.26 RCW or federal law, or arising from Tukwila Nails' current lease agreement with Hee Yeol Kang and See Jee Kang, whether the bases of such claims, demands, liabilities, and/or causes of action are currently known or unknown and whether such claims, demands, liabilities, and/or causes of action have accrued in the past or will first accrue in the future. Tukwila Nails agrees not to contest public use and necessity of the Project and agrees to grant the City immediate possession and use upon the City's request for such. Tukwila Nails further agrees not to not move to vacate any judgments against it that have arisen from the City's condemnation proceedings to acquire the Property. 5. Subleases and Assignment. Tukwila Nails affirms and acknowledges that is has no subleases in the tenant space it currently occupies. Tukwila Nails agrees not to enter into any subleases, and Tukwila Nails shall not assign or subcontract any portion of the services contemplated by this Agreement without the express written consent of the City. 6. No Admissions. This Agreement does not constitute an admission of liability by the Parties. In the event of future inquiries, the Parties agree not to disparage any other with respect to the subject matter of this Agreement. This paragraph does not preclude or otherwise impact the City's obligation to comply with the Public Records Act, nor does it preclude either party from seeking to enforce the terms of this Agreement. In any dispute resolution proceeding between the Parties in connection with this Agreement, the prevailing party will be entitled to recover its reasonable attorneys' fees and costs from the other party. 7. Authority. The signatories to this Agreement represent that they have the full right and authority to enter into this Agreement on behalf of the Parties and the full right and authority to fully bind the Parties to the terms and obligations of this Agreement. Tukwila Nails Further SETTLEMENT AGREEMENT - 2 represents affirms and acknowledges that there are no subleases to the tenant space it currently occupies, and Tukwila Nails expressly agrees not to enter into any such subleases. 8. Counterparts. This Agreement may be executed in duplicate counterparts, in which case each executed counterpart shall be deemed to be an original and all counterparts together shall constitute one and the same instrument. Signed versions of this Agreement transmitted by facsimile copy or electronic mail shall be the equivalent of original signatures on original versions. 9. Entire Agreement; Venue; Attorney's Fees. This Agreement contains all of the agreements of the Parties with respect to any matter covered or mentioned in this Agreement. No provision of this Agreement may be amended or modified except by written agreement signed by the Parties. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any teiiii of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. 10. Effective Date. The effective date of this Agreement is June 19, 2018. 11. Knowing and Voluntary Execution. The Parties hereto enter into this Agreement knowingly, willingly, voluntarily, freely, and without any coercion. The parties have been advised to consult with an attorney concerning this Agreement and have had adequate opportunity to seek the advice of legal counsel in connection with this Agreement. AGREED TO BY: THE CITY OF TUKWILA a Washington municipal corpora ion By: Name: Title: m"for- Approved as to form: Rachel B. Turpin City Attorney TUKWILA NAILS INC. P >. (7'/(A7A--(— Quang N Duong Nguyen SETTLEMENT AGREEMENT - 3 NOTARY ACKNOWLEDGEMENT STATE OF WASHINGTON ) ) ss. COUNTY OF KING I certify that I know or have satisfactory evidence that Quang Nguyen and Duong Nguyen signed this instrument and, on oath, stated that they were authorized to execute the instrument and acknowledged it as the Db.-) (President/Vice-President/Secretary) of TUKWILA NAILS, INC., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED this itsrday of ‘...) i4- , 2018. DcLn ok 7A-1 m (Did -Con Printed Name: t a-ev- 04 tv, b") Di`cte_o Notary Public in and for the State of Vashington. My commission expires la — / SETTLEMENT AGREEMENT - 4