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Home My WebLink About12-101 - White Horse Tavern Property - Settlement Agreement12 -101 Council Approval N/A Settlement Agreement Between Citv of Tukwila and Beneficiaries of Deed of Trust Resuectina Lien for Delinquent Gamblina. Taxes, Interest Penalties on White Horse Tavern Proaerty This Settlement Agreement is a legally binding and enforceable contract signed by persons and entities duly authorized to bind the parties hereto and intended by the parties hereto as a full and final resolution of all matters relating to the subject matter hereof as follows: Whereas the City of Tukwila is a Lien Claimant with a Lien for Delinquent Gambling Taxes, Interest Penalties bearing King County Recording No. 20110210000825 (hereinafter "Gambling Tax Lien encumbering real property with a Physical Address of 14935 Interurban Ave. S., Tukwila, WA 98168, Assessor's Tax Parcel ID Number 3597000445 (hereinafter "White White Horse Tavern Property"); Whereas the Entity Indebted to the Lien Claimant, Bow Car Bow, Inc d /b /a White Horse Bar and Grill, has not been financially responsible with respect to payment of the above referenced Lien; Whereas Mele and Paula Bogovich and Ellen Galeno are the sole surviving beneficiaries of a Deed of Trust respecting the above described White Horse Tavern Property, Deed of Trust Recording No. 20010302000755, Ellen Galeno having succeeded to the interest of her late husband, Fred J. Galeno, through a Testamentary Trust, hereinafter collectively "Beneficiaries Whereas the Entity Indebted to Beneficiaries under said Deed of Trust, Bow Car Bow, Inc. d /b /a White Horse Bar and Grill, has violated the terms of said Deed of Trust by, among other violations, failing to make payments due and owing and failing to keep the property free and clear of liens; Whereas it is the desire of the City of Tukwila and Beneficiaries to resolve any and all issues surrounding the above referenced Gambling Tax Lien and to satisfy said Lien so as to permit the White Horse Tavern Property to be swiftly restored to productive use for the benefit of the community and to prevent said Property from falling into disrepair and becoming a blight upon the community; Whereas it is the desire of the City of Tukwila to secure the prompt recovery of the sums due to the City under the Gambling Tax Lien to the benefit of the public and the desire of the Beneficiaries to secure the prompt recovery of the White Horse Tavern Property upon such terms as are financially practicable and upon such terms as will inure to the benefit of all; Whereas the City recognizes the desire of Beneficiaries to restore the White Horse Tavern Property to productive use by Beneficiaries or by and through their managing agent, Roger Lorge, and that such an undertaking to be successful will require Settlement Agreement between Initials of Signator s City :ity of Tukwila and Beneficiaries Beneficiarie s Re Gambling Tax Lien 1 I V j -`'r� a (eQv,� substantial attention, expertise, effort, investment and expense on the part of Beneficiaries and/or their managing agent, Roger Lorge; Wherefore, it is hereby agreed as follows: 1. Beneficiaries will proceed, at their sole expense, to obtain legal title to the White Horse Tavern Property pursuant to a non judicial foreclosure already initiated and trustee's sale to be held as soon as practicable; 2. If Beneficiaries successfully obtain legal title to the White Horse Tavern Property through the trustee's sale, they shall, no later than thirty (30) days following their obtaining full legal title, pay to the City of Tukwila the sum of One Hundred Thousand Dollars ($100,000.00) and shall pay to the City of Tukwila an additional sum of Twenty -Five Thousand Dollars ($25 no later than ninety (90) days following their obtaining full legal title; all payments shall be made in cashier checks or other cash equivalent acceptable to the City of Tukwila, care of law offices of Kenyon Disend PLLC, 11 Front Street South, Issaquah, WA 98027 -3820; 3. Upon receipt of the total sum of One Hundred Twenty -Five Thousand Dollars ($125,000.00), the City of Tukwila shall immediately prepare and record a partial satisfaction of the Gambling Tax Lien; the payment of this sum shall constitute full satisfaction of any obligation owed by Beneficiaries to the City of Tukwila for the Gambling Tax Lien; the City of Tukwila shall prepare and record a full satisfaction of the Gambling Tax Lien twelve months after Beneficiaries have obtained legal title if no sale or voluntary transfer of ownership from Beneficiaries has occurred in the intervening period; 4. In the event, within twelve (12) months of obtaining legal title, the Beneficiaries sell the White Horse Tavern Property to any person or entity (with the exception of Roger Lorge who also is bound to the terms of this Agreement as a signatory below), the City of Tukwila shall be entitled to receive fifty percent (50 of the net proceeds of sale towards satisfaction of the remaining, unpaid value of the Gambling Tax lien; "net proceeds of sale" shall mean all amounts above the sum of (i) the amount bid in by Beneficiaries in connection with the foreclosure sale by which Beneficiaries acquired title to the White Horse Tavern Property, (ii) all costs incurred in connection with that sale; (iii) $125,000.00. 5. If, for any reason, Beneficiaries are unable to obtain legal title to the White Horse Tavern Property through the trustee's sale or otherwise fail to make full, timely payment of the sums contemplated in this Agreement, then this Agreement shall be null and void and the City of Tukwila may seek to enforce and collect the full outstanding value of the Gambling Tax Settlement Agreement between Initials of Signatoriep City nn City of Tukwila and Beneficiaries Beneficiaries: ILA Re Gambling Tax Lien 2 Lien, including the full amount of any penalties or interest then accrued or due, by any means available under the law and in equity. 6. Attornev's Fees and Costs. Each party shall bear its own attorney's fees and costs in connection with the matters covered by this Agreement. 7. Choice of Law: Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Washington, and venue for any action arising out of this Agreement shall be in King County Superior Court. 8. Free Will. Each party hereby represents and warrants that they have entered into this Agreement of their own free will and in accordance with their own judgment and upon advice of their own legal counsel, and state that they have not been induced to enter into this Agreement by any statement, act or representation of any kind or character on the part of anyone except as expressly set forth in this Agreement. 9. Authoritv. The individual signatories to this Agreement represent that they have been duly authorized to execute this Agreement on behalf of the parties they purport to represent herein. 10, Amendments. This Agreement may not be amended or modified except by writing, signed by the parties to be bound thereby, or signed by their respective attorneys as authorized. 11. Entire Aareement. This Agreement constitutes the final written expression of all the terms of this Agreement and is a complete and exclusive statement of the terms of the Agreement. In the event that either party resorts to litigation to enforce any term of this Agreement, the substantially prevailing party in any such litigation shall be entitled to an award of reasonable attorney fees and expert witness fees, together with actual court costs, expended in such litigation. 12. Counterparts. This Agreement may be executed in counterparts by one or more of the parties named herein and all such counterparts once so executed shall together be deemed to constitute one final agreement, as if one document had been signed by all parties hereto; and each such counterpart, upon execution and delivery, shall be deemed a complete original, binding the parties to this Agreement. Electronic or faxed signatures shall be treated as originals. 13. Effectiveness. This Agreement shall become effective upon the signing of the last party to this Agreement. Settlement Agreement between Initials of Signatories: City L City of Tukwila and Beneficiaries Beneficiaries: L' Re Gambling Tax Lien 3 14. Captions. The captions contained in the paragraphs of this Agreement are for convenience of reference only and do not in any way limit, expand or modify the terms or provisions of this Agreement. 15. Successor and Assians: No Unauthorized Assionment. Because the terms and conditions of this Agreement concern resolution of claims relating to the White Horse Tavern Property, this Agreement shall run with the land its terms and conditions shall inure to the benefit of and be binding upon the parties' respective successors, heirs and assigns. Neither party may assign its rights or obligations under this Agreement without the written consent of the other, which shall not be unreasonably withheld. Signed by the duly authorized representatives below: CITY OF TU WILA Dated: tj 2 eblaajlo\ Approved as to Form: and thro authorized V4VY) A gent, tle: �uthrr V Kari L. Sand Assistant City Attorney BENEFICIARIES Dated: f 2 VIB govi ch Dated: Paula Bogovich Ellen Galeno, individually, and Under Testamentary Trust of Fred Galeno Dated: ROGER LORGE, in his individual capacity C Dated: Q 1 "v tot z Rog L*ge.,/ Settlement Agreement between Initials of Signat ri Cit /t City of Tukwila and Beneficiaries Beneficiaries: aL, Re Gambling Tax Lien 4 Aug 17 12 11:17a Galeno 4257470978 p,1 14. Caotions. The captions contained in the paragraphs of this Agreement are for convenience of reference only and do not in any way limit, expand or modify the terms or provisions of this Agreement 15. Successor and Assions: No Unauthorized Assionment. Because the terms and conditions of this Agreement concern resolution of claims relating to the White Horse Tavern Property, this Agreement shall run with the land its terms and conditions shall inure to the benefit of and be binding upon the parties' respective successors, heirs and assigns. Neither party may assign its rights or obligations under this Agreement without the written consent of the other, which shall not be unreasonably withheld. Signed by the duly authorized representatives below: CITY OF TUKWILA Dated: By and through its authorized Agent, Title: BENEFICIARIES Mele Bogovich Paula Bogovich s Dated: x&A.. 7 Dated: fZ ue /r o f2— Ellen Galena, individually, and Under Testamentary Trust of Fred Galena ROGER LORGE, in his individual capacity Roger Large Dated: Settlement /agreement between initials of Signatories: City City of Tukwila and Beneficiaries Beneficiaries E f Re Gambling Tax Lien 4 U