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HomeMy WebLinkAboutOrd 2761 - Tukwila South Development Extension with Segale Properties (Thru 12/1/2025)City of Tukwila Washington Ordinance No. ()/ '4" AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, EXTENDING THE TERM OF A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TUKWILA AND SEGALE PROPERTIES LLC AND ITS SUCCESSORS FOR THE TUKWILA SOUTH DEVELOPMENT FOR FIVE MONTHS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the "Tukwila South Project' comprises approximately 512 acres of real property, and Segale Properties LLC and its successors owns or controls approximately 503 of those acres, which is known as the "Tukwila South Property;" and WHEREAS, on June 8, 2009, the City of Tukwila passed Ordinance No. 2233, which adopted the Development Agreement by and between the City of Tukwila and Segale Properties LLC (formerly known as La Pianta LLC) (the "Original Agreement") regarding the Tukwila South project; and WHEREAS, the Original Agreement was revised six times, with the First, Third, and Fourth Amendments recorded at King County recording nos. 20100726001101, 20140624000980, and 20250109000508, and two Addenda recorded at King County recording nos. 20130228000691, and 20130228000692, and the Second Amendment, dated November 20, 2012, which remains unrecorded; and WHEREAS, MAS TUKWILA LLC, a Washington limited liability company ("Mas Tukwila"), LIT INDUSTRIAL LIMITED PARTNERSHIP, a Delaware limited partnership ("LIT Industrial"), H&H ANDOVER PARK, LLC, a Washington limited liability company ("H&H Andover Park") and CONTINENTAL MILLS, INC., a Washington for profit corporation (`Continental Mills") (collectively, "Successors") have each acquired certain parcels subject to the Original Agreement; and WHEREAS, the City of Tukwila owns real property operated as Fire Station 51, located at 17951 Southcenter Parkway, Tukwila, Washington 98188 (King County parcel nos. 3523049008 & 3523049040 (shown as vacant)) within the Tukwila South project area, which Segale Properties dedicated to the City pursuant to a Fire Facilities Agreement (Contract No. 14-065); and 2025 Legislation: Extending Tukwila South Development Agreement Version. 05/01/2025 Staff: Nora Gierloff, Derek Speck Brandon Miles Page 1 of 3 WHEREAS, under Section 5.2.3 of the Development Agreement, the Tukwila South Project's vesting of development regulations applies for fifteen (15) years from the effective date of the annexation of the Tukwila South Property to the City of the Tukwila (the "Term" of the Development Agreement); and WHEREAS, the effective date of the annexation of the Tukwila South Property to the City of Tukwila was June 20, 2009, such that the Term of the Original Agreement, as revised, was to expire on December 22, 2024; and WHEREAS, on December 20, 2024, the City of Tukwila, Segale Properties LLC, and its successors executed the Fourth Amendment to the Development Agreement, which extended the Term by six months, such that the Term of the Original Agreement, as revised, expires on June 23, 2025; and WHEREAS, the City of Tukwila, Segale Properties LLC, and its successors have agreed to an additional five -month extension of the Term of the Original Agreement, as revised, which extension also applies to Section 5.2.3 of the Original Agreement, Scope of Vesting; and WHEREAS, pursuant to RCW 36.70B.200 and TMC 18.86.050, a public hearing was held for this ordinance on May 19, 2025; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Extension of Development Agreement Term. The Term of the Development Agreement between the City of Tukwila, Segale Properties LLC, and its successors, as approved by Ordinance 2233 and as subsequently revised, shall be extended by five (5) months, making the new expiration date of the Development Agreement December 1, 2025, as set forth in the attached "Fifth Amendment to Development Agreement for the Tukwila South Development," a copy of which is attached hereto as "Exhibit A" and by this reference fully incorporated herein. Section 2. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk, and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force five (5) days after passage and publication as provided by law. 2025 Legislation: Extending Tukwila South Development Agreement Version: 05/01/2025 Staff: Nora Gierloff, Derek Speck Brandon Miles Page 2 of 3 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this ?,Nb day of /)utr42-, 2025. ATTEST/AUTHENTICATED: Andy Youn-Barnett, City Clerk Th. mas McLeod, APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk: 5 'Z/ '�5 Passed by the City Counci : 6 -2- Published: 6 -5-) Effective Date: 6 - l u - Ordinance Number: Attachment: Exhibit A — Fifth Amendment to Development Agreement 2025 Legislation: Extending Tukwila South Development Agreement Version: 05/01/2025 Staff: Nora Gierloff, Derek Speck Brandon Miles Page 3 of 3 When Recorded Return to: Nancy Bainbridge Rogers Cairncross & Hempelmann, P.S. 524 Second Avenue, Suite 500 Seattle, WA 98104-2323 FIFTH AMENDMENT TO DEVELOPMENT AGREEMENT FOR THE TUKWILA SOUTH DEVELOPMENT Reference Number(s) of Documents assigned or released: 20100726001100; 20100726001101; 20130228000691; 20130228000692; 20140624000980; and 20250109000508 Grantor: SEGALE PROPERTIES LLC, a Washington limited liability company MAS TUKWILA LLC, a Washington limited liability company LIT INDUSTRIAL LIMITED PARTNERSHIP, a Delaware limited partnership H&H ANDOVER PARK, LLC, a Washington limited liability company CONTINENTAL MILLS, INC., a Washington for profit corporation Grantee: CITY OF TUKWILA, a non -charter, optional code Washington municipal corporation Abbreviated Legal: Tax Parcel Nos.: N/A 870021-0050; 870021-0100; 870021-0130; 870040-0230; 870040-0180; 870040-0070; 870040-0120; 870040-0170; 870021-0040; 870021-0090; 032204-9062; 870040-0240; 870040-0190; 870040-0082; 870040-0130; 870040-0010; 870021-0030; 870021-0080; 870040-0200; 870040-0250; 870040-0040; 870040-0090; 870040-0140; 870040-0020; 1 870021-0020; 870021-0110; 870040-0210; 870040-0260; 870040-0050; 870040-0100; 870040-0150; 870040-0030; 870021-0010; 870021-0120; 870040-0220; 870040-0270; 870040-0060; 870040-0110; 870040-0160; 352304-9109 FIFTH AMENDMENT TO DEVELOPMENT AGREEMENT FOR THE TUKWILA SOUTH DEVELOPMENT THIS FIFTH AMENDMENT TO THE DEVELOPMENT AGREEMENT (the "Fifth Amendment") is made and entered into this day of April, 2025, by and between the CITY OF TUKWILA, a non -charter, optional code Washington municipal corporation ("City"), SEGALE PROPERTIES LLC, a Washington limited liability company ("Segale"), MAS TUKWILA LLC, a Washington limited liability company ("Mas Tukwila"), LIT INDUSTRIAL LIMITED PARTNERSHIP, a Delaware limited partnership ("LIT Industrial"), H&H ANDOVER PARK, LLC, a Washington limited liability company ("H&H Andover Park") and CONTINENTAL MILLS, INC., a Washington for profit corporation ("Continental Mills") (together, the "Parties"). I. RECITALS WHEREAS, on June 10, 2009, the City and Segale (formerly known as La Pianta LLC) entered a Development Agreement (the "Original Agreement") regarding the Tukwila South project, then comprising approximately 512 acres of real property, and recorded the Original Agreement at King County recording no. 20100726001100, and the Original Agreement was revised six times, with the First, Third, and Fourth Amendments recorded at King County recording nos. 20100726001101, 20140624000980, and 20250109000508 and two Addenda recorded at King County recording nos. 20130228000691 and 20130228000692, and the Second Amendment, dated November 20, 2012, which remains unrecorded. WHEREAS, Mas Tukwila, LIT Industrial, H&H Andover Park, and Continental Mills have each acquired certain parcels subject to the Original Agreement. WHEREAS, the Original Agreement, as revised, is set to expire on June 23, 2025, and all Parties wish to enter a further extension. NOW, THEREFORE, in consideration of the mutual promises set forth herein and the long-term benefit to the Parties, the Parties hereby agree as follows: II. AGREEMENT 1. The first sentence of Section 9.13 of the Original Agreement is hereby amended to read: "The Term of this Agreement is extended to December 1, 2025." The Parties agree the December 1, 2025 expiration date also applies to Section 5.2.3, Scope of Vesting. [signature pages to follow] 2 CITY OF TUKWILA, a Washington municipal corporation By: Name: Thomas McLeod Its: Mayor Date: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney STATE OF WASHINGTON COUNTY OF KING ) ) ) ss. On this day personally appeared before me , to me known to be the mayor of CITY OF TUKWILA, a Washington municipal corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said Washington municipal corporation for the uses and purposes therein mentioned, and on oath stated that is authorized to execute said instrument. 2025. GIVEN under my hand and official seal this day of , (Print name of notary) NOTARY PUBLIC in and for the State of Washington, residing at My commission expires 3 SEGALE PROPERTIES LLC, a Washington limited liability company By: Metro Land Developmei , hoc. Its: Manager By: Name: Mark A. S . • a e Its: President Date: U STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me Mark A. Segale, to me known to be the person who signed as President of Metro Land Development, Inc., the manager of SEGALE PROPERTIES LLC, a Washington limited liability company, that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that said individual is authorized to execute said instrument. GIVEN under my hand and official seal this day of tl?y y ,2025. Er►c R. 015 a" a NOTARY 54(2;1 PUBLif (Print name of notary) NOTARY PUBLIC in and forte Statr o f Washington, residing at �jo pj/l 144 My commission expires .3 / i /) c/ 4 MAS TUKWILA LLC, a Was fngton li liability company By: � - Brett Jacob ' V Manager Date: 6 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me BRETT JACOBSEN, to me known to be a manager of the MAS TUKWILA Limited Liability Company, the limited liability company that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that said individual is authorized to execute said instrument. GIVEN under my hand and official seal this 1 day of M".67 , 2025. 9"—"1" .. __— 1 f Ange�1ano I Notary Public 1 State of Washington d My Appointment Expires 8/21/2027 I 'Ai h Numb r 33028426 PvY16t IA Ma ho— (Print name of notary) NOTARY PUBLIC in and f r the State of Washington, residing at My commission expires 4. 21. 202"1 5 LIT INDUSTRIAL LIMITED PARTNERSHIP, a Delaware limited partnership By: LIT Holdings GP, LLC, a Delaware limited liability company Its: General Partner By: Name: Its: Managing Director Date: 5/8/2025 STATE OF Tex.te COUNTY OF Dc,alp,� ss. On this day personally appeared before me B CD4dc.to me known to be a In Mcv- c V ethoctofLIT Holdings GP, LLC, a Dela re limited liability company, the general pparter of LIT INDUSTRIAL LIMITED PARTNERSHIP, a Delaware limited partnership that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited partnership, for the uses and purposes therein mentioned, and on oath stated that said individual is authorized to execute said instrument. GIVEN under my hand and official seal this crday of Mpu,., 0""14,, BRITTANY MCCARTHY =W .`ll:Notary Public, State of Texas 4= Comm. Expires 10-07-2028 Notary ID 135120198 1 , 2025. (Print name of notary) NOTARY PUBLIC in and for the State of TPvn''i'WasPriftgien; residing ato.1`am Ccxk My commission expires ip - 7 •- aoa, 6 H&H ANDOVER PARK, LLC, a Washington limited liability company By: Peter Hollomon Director Ala/ d' 14 cw,25 - Date: STATE OF WASHINGTON ) ) ss. COUNTY OF KING On this day personally appeared before me PETER IIOLLOMON, to me known to be a member of the H&H ANDOVER PARK Limited Liability Company, the limited liability company that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that said individual is authorized to execute said instrument. GIVEN under m„hn d and official seal this soss`‘0,\HAEL,1 *�''O° .p • JUNF;;O11i0% • C : U N � G '1 1. PUBL\G °i Nj, •••C p1 p 4.� *44, O p men scs ...,00 n cY day of /Wy , 2025. (Print name of notary) NOTARY PUBLIC in and for the State of Washington, residing at Afi0z/-,ems 24/4— My commission expires 7 CONTINENTAL MILLS, INC., a Washington for profit corporation By: /`\ Robert Dilworth CFO Date: May 8th, 2025 STATE OF WASHINGTON ) ss. COUNTY OF KING On this day personally appeared before me ROBERT DILWORTH, to me known to be CFO of CONTINENTAL MILLS, INC., the corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that is authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. 2025. GIVEN under my hand and official seal this tbli4 day of Mal ASHLEY SUSANNA NYAL HENDERSON I Notary Public State of Washington 11 Commission # 20103646 1 My Comm. Expires Feb 25, 2028 Li IA j.4.44.4, # 20(0,44 t��tt� I�Sai'1 (Print name f notary) y) NOTARY PUBLIC in and for the State of Washington, residing at My commission expires 2 8 City of Tukwila Public Notice of Ordinance Adoption for Ordinance 2760-2761. On June 2, 2025, the City Council of the City of Tukwila, Washington, adopted the following ordinance, the main points of which are summarized by title as follows: ORDINANCE 2760: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING OR-DINANCE NO. 2441 AS CODIFIED AT TUKWILA MU-NICIPAL CODE (TMC) CHAPTER 14.19, "SEWER CONNECTIONS — PRELIMINARY PLAT OF TUKWILA SOUTH"; RETITLING THE CHAPTER, DELETING AN OUTDATED PLAT MAP AND PROVIDING A DIFFER -ENT METHOD OF CALCULATING SEWER CONNEC-TION FEES FOR NEW DEVELOPMENT; REPLACING FIGURE 14-7 AND DELETING FIGURE 14-8; PROVIDING FOR SEVERABILITY; AND ESTABLISH-ING AN EFFECTIVE DATE.. ORDINANCE 2761: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, EXTENDING THE TERM OF A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TUKWILA AND SEGALE PROPERTIES LLC AND ITS SUCCESSORS FOR THE TUKWILA SOUTH DEVELOPMENT FOR FIVE MONTHS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. The full text of this ordinance will be provided upon request. Andy Youn-Barnett, City Clerk Published Seattle Times: June 5, 2025