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Home My WebLink About20-122 - Segale Properties, LLC - Agreement for Reimbursement of Development Review Costs20-122 Council Approval N/A AGREEMENT FOR REIMBURSEMENT OF DEVELOPMENT REVIEW COSTS THIS AGREEMENT is entered into between the City of Tukwila ("the City") and Segale Properties LLC ("Segale"), individually a "party" and collectively the "parties", for the purposes set forth herein. WHEREAS, on June 8, 2009the City and Segale entered into a Development Agreement to govern the development, use, and mitigation of environmental impacts associated with the development of a major new employment and housing base in Tukwila South ('Property") and WHEREAS, Section 2 of the Development Agreement allows Segale to develop the Property in accordance with the Tukwila South Master Man, which permits residential development, and WHEREAS, currently, there are no residential development standards or guidelines for the Property, and WHEREAS, Segale has proposed updates to the City's platting procedure to ensure maximum flexibility in attracting future development, and WHEREAS, Segale desires to facilitate mixed use development, including residential development, on the Property, and WHEREAS, the City desires to implement residential development standards and guidelines for the Property but is constrained in its ability to do so by limited staff time and resources due to budget shortfatls stemming firom the COVID-19 pandemic, and WHEREAS, the City and Segale desire to work jointly to move development of the Property forward as quickly and as efficiently as possible; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, Segale agrees to reimburse the City for staff review time and the City agrees to dedicate staff time to accomplish such review, subject to the following terms and conditions: 1. Project Management Position The City shall designate a staff person in the Office of Economic Development to serve as the City's 'Project Manager' for development review related to the Property. The City's Project Manager shall provide the following services: m4091*56.00c;3> a. Oversee any proposed code amendments for the Property. The proposed scope of code amendments includes developing residential design guidelines and standards, drafting amendments to the City's subdivision code for preliminary plat modifications and administrative review of final plats. b. Keep items moving forward, identifying key issues for resolution, and coordinating decisions from the various decision makers. It is understood by both parties that the person assigned to the Pject Manager position is not the final decision maker. c. Serve as the City's Pject Manager for future desin review and construction permits that are anticipated to be submitted to the City for construction projects related to the Property. The Project Manager will help move the prjects through the City's permit process in a timely manner. d. Serve as a City ombudsman for issues that might arise during the Project including permitting, management of the Development Agreement, inquiries from businesses and developers looking to invest in the Property. e. Serve as a single point of contact for Segale for dev&opment issues related to the Property, including marketing, branding, and promoting the area. Provide improved communications between the City and Segale representatives. Manage any third -party contracts required by the City to move development of the Property forward. Q. Other work items mutually agreed on by the parties related to the Property. 2. Other Staff Positions The City agrees to assistaff from other City Departments to review proposed code amendments, residential design standards, and other applications and submittals that might be needed to move forward with development of the Property. -2 - 3. Reimbursement for City Staff a. Segale agrees to reimburse the City as follows: i For the Project Manager position: 1. 2020: November -December 2020: $3,273.73 per month. 2. 2021: $3,283.71.66 per month 3. 3022: $3,332.42 per month ii. Costs for the pject manager position shall be billed in advance forthree'nnonthperiodsbeginnin0onNovernber1,3O2O b. Loaded (hourly and benefits) hourly costs associated with staff reviewing and processing proposed code amendments, and such costs are subject to prior agreement by both parties. Each month, the Pject Manager will provide Segale a work plan and estimate of the hours needed in the next month to complete the work plan. Segale and the Pject Manager shall agree on the work plan and any subsequently needed additional staff. c. Hourly costs associated with consultant services that may be needed for drafting code amendments and developing residential design guidelines preparing any environmental documentation related to any proposed code amendments. The parties will meet prior to the City contracting with any consultant for work pursuant to the Project to discuss the need for such service and the scope of work for any consultant. d. The parties recognize that permit applications may be filed by others who acquire interests in Tukwila South. Because such permits assist Segale's goal to advance the overall Tukwila South Prject, Segale will pay the costs of the P'ectK8anager,as|istedabove,associatedvvithanypnocess of those permit applications through by the City. However, Segale will not be responsible for payment of City Staff or consultant services associated with permit review for applications filed by others. 4. Timelines for Development Inquiries and Project Permitting. a. Whenever pre -application inquiries are made that require input from staff in the Department of Community Development (DCD), the Department of Public Works, or any other City Department, the Project Manager shall facilitate receipt of answers within two weeks. 3- b. When permit applications are filed with DCD, the Project Manager shall facilitate timely processing of those permits, with the goa of meeting the statutory 120 -day permit clock. c. Segale agrees to utilize the pject manager as a central point of contact. 5. General Terms a. City's Responsibilities and Obligations The City agrees to advance any agreed upon code amendments through the City's Iegislative process without undue delay; provided that, Segale acknowledges that the City makes no guarantees that the City Council will ultimately approve any proposed code amendments. b. 5ega|e's Responsibilities and Obligations Segale agrees to timely provideanyreasonabk/requestedrnatehab associated with any Segale initiated permit or legislative submittal. Segale also agrees to work collaboratively with the City, staff, and consultants to advance the P'8ct. c. Reporting and Dispute Resolution i The Pject Manager reports to the Mayor's Office. City department staff working on Tukwila South matters, including permit applications filed by others, report to the City Administrator who reports to the Mayor. In the event of a dispute between City staff, the Project Manager shall propose a resolution to the Mayor, and the Mayor shall consider, revise as necessary, and implement the resolution. ii. In the event of a dispute involving Segale, the parties shati meet promptly and work cooperatively to resolve the dispute in good faith. If no resolution can be reached, either the City or Segale may initiate the dispute resolution process under the Development Agreement or may terminate this Agreement pursuant to Section 5(d). d. Termination Either party may terminate this agreement with prior writte notice to the other party. No cause need be provided. Segale shall be -4- responsible for any reimbursement or costs incurred pursuant to this Agreement prior to termination. e. Expiration Unless terminated pursuant to Section 5(d) above, this Agreement shaU automatically expire on January 1, 2023, unless extended by written agreement of both parties. Segale shafl be responsible for any reimbursement or costs incurred prior to expiration. f. Police Powers Nothing in this Agreement shall be interpreted to limit, restrict, or diminish the police powers of the City conveyed upon it by state law. g. Notification Any notification pursuant to this Agreement shall be made as foliows: To Segale: MarkSega|e 5811 Segale Park Drive C Tukwila, WA 98188 To City: City Clerk Tukwila City Hall G2OOSouLhcenterBlvd Tukwila, WA 98188 With a copy to: Office of Economic Development Tukwila City Hall 6200 Southcenter Blvd Tukwila, WA 98188 h. Attorney Fees All fees and expenses for mediation or arbitration shall be borne by the parties equally. However, each party shall bear the expense of its own counsel, experts, witnesses, and preparation and presentation of {0*091456.00c;3} evidence. ri any claim or Iawsuit for damages arising from the parties performance of this Agreement, each party shall pay all its legal costand attorney's fees incurred in defending or bringing such claim or lawsuit, in addition to any other recovery or award provided by law. Governing Law/Venue This Agreement shall be governed by the laws of the State of Washington. Any sult to enforce or relating to this Agreement shall ony be filed in King County Superior Court, King County, Washington. j. Entire Agreement This Agreement constitutes the entire understanding and agreement between the parties as to the subject matter herein and no other agreements or understandings, written or otherwise, shall be binding upon the parties upon execution and acceptance hereof. k. No Third -Party Beneficiaries There are no thirdparty beneficiaries of this Agreement. I. Effective Date This Agreement is effective on the Iatest date it is executed by both parties. (4.4 EXECUTED this 45 day of November, 2020. Allan Ekberg illtslaazo mmymsaomCy> '6' By: Mark A. S s Manager