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HomeMy WebLinkAbout09-100 Amd E - Segale Properties (La Pianta LLC) - Tukwila South Development Agreement09-100(e) Council Approval N/A AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND SEGALE PROPERTIES LLC, FOR THE TUKWILA SOUTH DEVELOPMENT THIS AGREEMENT (Agreement) is made and entered into this 30 t day of October, 2013, by and between the CITY OF TUKWILA ("City"), a non -charter, optional code Washington municipal corporation, and SEGALE PROPERTIES LLC, a Washington limited liability company ("Segale"), formerly known as "LA PIANTA LLC." I. RECITALS WHEREAS, the City and Segale entered into a certain Development Agreement relating to the Tukwila South development ("Tukwila South"), dated June 10, 2009 (the "Development Agreement") as amended pursuant to that certain First Amendment to Development Agreement dated May 18, 2010 (the "First Amendment"); and WHEREAS, Section 4.8.3 of the Development Agreement requires the Parties to agree on the development of accounting protocols in order to track operations and maintenance costs related to servicing Tukwila South, as well as tracking revenue generated by the development; and WHEREAS, the parties agree that before accounting protocols are developed, it would be beneficial to review the assumptions upon which the need for accounting protocols was based; and WHEREAS, this Agreement does not materially modify the intent and policy of the Development Agreement for the purposes of Section 8 of the Development Agreement; and NOW, THEREFORE, in consideration of the mutual promises set forth herein and the long-term benefit to both the City and Segale, the parties hereby agree as follows: II. AGREEMENT 1. Defined terms used herein shall have the meanings set forth in the Development Agreement. Segale and La Pianta may be used interchangeably, and shall be deemed to refer to the same entity. 2. The parties agree to extend the deadline for development of the accounting protocols, pursuant to Section 4.8.3 of the Development Agreement to April 30, 2014, pursuant to the following conditions: a. The parties will meet and confer no later than November 30, 2013 to discuss options related to the financial guarantee, outlined in Section 4.8 of the Development Agreement. �,4 a d 1^lc��Y b. The City agrees that any proposal it makes regarding alternatives to the financial guarantee will relate to and benefit the Tukwila South development. c. The parties expressly acknowledge that the requirement for the accounting protocols cannot be modified without an amendment to the Development Agreement. This amendment will require approval by the City Council. If the parties desire to amend the Development Agreement for the purposes discussed herein, a proposed amendment must be presented to the City Council no later than January 13, 2013 and it must be approved by the City Council no later than March 3, 2013. d. If agreement cannot be reached regarding alternatives to the financial guarantee by March 3, 2014, the accounting protocols shall be developed and agreed upon no later than April 30, 2014. e. In the event the parties do not agree on the accounting protocols by April 30, 2014, the Development Agreement shall terminate, pursuant to Section 4.8.3 of the Development Agreement. 3. This Agreement shall be enforced consistent with terms and conditions of the Development Agreement, including the dispute resolution provisions set forth therein. DATED this 36 b day of October, 2013. CITY OF TUKWILA IM Attest/Authenticated: . City Clerk Approved as to Form: q-ff-utes� — 1 Office of the City Attorney SEGALE PROPERTIES LLC -2- Mgfiager: Metlp Ld Development Mark A. Segale,\Ui -President E§]', SEGALE PROPERTIES A LIMITED LIABILITY COMPANY COMMERCIAL • INDUSTRIAL • AGRICULTURAL • NATURAL RESOURCES April 30, 2014 Jim Haggerton Mayor City of Tukwila 6300 Southcenter Blvd., #100 Tukwila, WA 98188 Re: Accounting Protocols Deadline Dear Mayor Haggerton, I am writing to you concerning the October 30, 2013 agreement between Segale Properties LLC and the City of Tukwila, which agreement extends the deadline for establishing accounting protocols pursuant to the Tukwila South Development Agreement. As you know, Segale and the City have worked hard to meet the deadlines set forth in the agreement, and we have developed an alternative to the financial guarantee that we hope to present to the City Council in the coming weeks. Therefore, I propose that we extend the deadline for agreeing on accounting protocols from April 30, 2014 to June 16, 2014. If you agree on the proposed deadline extension, please sign the acknowledgement below and return a copy of this letter to me. Very truly yours, z PROPERTIESSegalesident Acknowledgement: CITY OF TUKWILA Dated: 6-P /1-3,0 PO BOX 88028 • TUKWILA, WA 98138 • 5811 SEGALE PARK DRIVE C • TUKWILA, WA 98188 P 206.575.2000 ■ F 206.575.1837 • www.segaleproperties.com