HomeMy WebLinkAboutCOW 2013-02-25 Item 4C - Ordinance - 223 Andover Park East Development Agreement with South Center WA LLCCOUNCIL AGENDA SYNOPSIS
-I dials
Meeting Date
Prepared by
Ma r's review
Cowed 1 review
02/25/13
DCS
,,,ii c
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3/11/13
03/11/13
DCS
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Motion
Date
03/18/13
DCS
• Bid
Award
a Public Healig
• Other
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Mtg
ITEM INFORMATION
hEm No.
4.C.
39
STAFF SPONSOR: DEREK SPECK
ORIGINAL AGENDA DATE: 2/25/13
AGENDA ITEM TITLE 223 Andover Park East Development
Agreement
(DA)
CA FEGORY 0 Discussion
02/25/13
•
Motion
Date
1111 Resolution
Mtg Date
a Ordnance
• Bid
Award
a Public Healig
• Other
Mtg Date
Mtg
Mtg Date 03/18/13
Mtg Date
Mtg Date 3/11/13
Mtg Date
SPONSOR 11 Council L Mayor • HR 11 DCD • Finance • Fire • IT
• P&R • Polzce • PW
SPONSOR'S The owner of 223 Andover Park East (the former Circuit City property) has requested
SUMMARY permission to construct buildings that would exceed the current limits for building height
and residential units. The Council is being asked review the proposed DA at the 2/25/13
Committee of the Whole. If the Council has suggested changes on 2/25, they will be
incorporated into the DA that will come back before the Council on 3/11/13 for a public
hearing and further discussion. The Council will be asked to approve the DA on 3/18/13.
REVIEWED BY
• COW Mtg.
Cmte
0
CA&P Cmte • F&S Cmte
Comm
CHAIR:
• Transportation
Cmte
1111 Utilities
•
Arts Comm. • Parks
U Planning Comm.
DATE: 1/28/13
COMMITTEE
EKBERG
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
Mayor's Office
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
02/25/13
MTG. DATE
ATTACHMENTS
02/25/13
Informational Memorandum dated 1/23/13
Letter from Omar Lee dated 1/17/13
Conceptual sketches from Mulvanny G2 architecture firm dated 1/23/13
Mass and scale sketches dated December 2012
Ordinance authorizing the Development Agreement
Draft Development Agreement
Minutes from the Community Affairs and Parks Committee meeting of 1/28/13
39
40
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Community Affairs and Parks Committee
FROM: Derek Speck, Economic Development Administrator
DATE: January 23, 2013
SUBJECT: 223 Andover Park East Proposed Development Agreement
ISSUE
The owner of 223 Andover Park East (the former Circuit City site) has asked the City for
permission to construct a building that would exceed some current zoning limits at that site.
BACKGROUND
In 2010, Omar and Christine Lee, as the managing members of South Center WA LLC,
purchased the property at 223 Andover Park East, which was the former Circuit City site. Since
that time the owners have conducted preliminary feasibility analysis to redevelop the site. Their
current concept is to construct a pair of attached, seventeen story buildings that would be
almost 180 feet tall and would comprise approximately 170 hotel guest rooms and 280
residential units.
Current zoning at this location does not allow residential units and has a height limit of 115 feet.
The owners would now like to perform additional analysis to determine if this project is
financially feasible. Before they invest the additional funds necessary for the more in -depth
analysis, however, they would like approval of the residential use and additional height. They
are not requesting any other approvals at this time. The project would still go through the City's
regular design review and building permitting processes.
DISCUSSION
The key question for the City is whether we want to encourage this type of development in this
location. This development would be a significant change for the area.
The site is located in the core of the Tukwila Urban Center (TUC), which is between Westfield
Southcenter and the Sounder commuter rail station. The TUC is also known to some people as
Tukwila's Southcenter District. Bringing this many residents into the Southcenter District will be
a significant step toward the area feeling more like a downtown for Tukwila and would have the
effect of adding a new neighborhood and constituency. These would also be the tallest buildings
in Tukwila.
Staff believes this is an excellent project that will serve as a positive catalyst for the City's vision
for future growth in the Southcenter District for the following reasons:
1. Fosters a Neighborhood: This project will be a catalyst to create a pedestrian friendly,
walkable neighborhood in the core of Tukwila's Southcenter District. The people who
41
INFORMATIONAL MEMO
Page 2
would choose to stay or live in this development would do so for the convenient access
to the freeways but also for the convenience of walking to restaurants, entertainment,
shopping, buses, and the commuter rail station.
2. Supports Existing Business: This project's guests and residents will support existing
businesses.
3. Improves City Image: The project will be high quality and will improve the image of
Tukwila's Southcenter District and identity for the entire City.
4. Encourages Residential Development: The project will stimulate additional development
in the Southcenter District's core by serving as an example of the financial feasibility of
residential development.
5. Encourages Apartments in Other Neighborhoods to Improve: The residential units will
encourage the private sector to redevelop or renovate existing apartments in Tukwila by
showing demand for higher quality units and rents that justify new construction.
6. Supports Comprehensive Plan: This site lies within the core of Tukwila's Urban Center
(TUC). The City's Comprehensive Plan has a vision for the TUC to be a "great place for
working, shopping, doing business, living, or playing." One of the noted future features is
"a core area of high quality, walkable retail, entertainment, housing, public spaces, and
employment..." Since this site is located in the TUC core and would add housing that is
walkable to transit, retail, and entertainment, it supports the Comprehensive Plan.
7. Supports Housing Targets: The residential units will help the City meet its housing
targets as required by the State Growth Management Act and as determined through
King County's Countywide Planning Policies.
8. Supports Urban Center Designation: The TUC was designated as one of the region's
urban centers, which are described in the Countywide Planning Policies as areas of
concentrated employment and housing with direct service by high capacity transit. As
such, the TUC earns preferential treatment for transit service and facility improvements.
The housing and employment with this project supports the TUC's urban center
designation.
Southcenter Plan
The City of Tukwila is preparing a plan for the Southcenter District. The Plan will present the
community's vision for the evolution and continued growth of the area for the next 20 years and
will include related changes to zoning and development standards and requirements. Although
the Plan is still in development, it appears that the owners' development proposal is very likely
to fit within the vision of the Plan.
The Tukwila Planning Commission has completed their review of the most recent draft
Southcenter Plan documents and approved the draft documents as presented at their October
25, 2012 meeting. Those documents support residential uses at this site but would set a height
limit of 70 feet. However, it should be noted that the owners secured a major investor just prior
to the Planning Commission's approval and so the height issues inherent in this project were not
fully considered. At the Planning Commission's October 25, 2012 meeting, this project was
W: \Derek \Omar Lee \Council Memo V2.doc
42
INFORMATIONAL MEMO
Page 3
briefly discussed and the Commission indicated strong support. If the Council approves a
development agreement allowing this height at this site, the draft Southcenter Plan documents
can be revised to take this policy into account.
Development Agreement
In order to build to this height and allow residential uses at this site, the City would need to
either change the zoning for the neighborhood or execute a development agreement for that
specific property. Since the City is currently working on the Southcenter Plan it is more
appropriate at this time to execute a development agreement for this site. A development
agreement would require the Council to hold a public hearing and approve the agreement by
ordinance.
Staff recommends the basic terms of the agreement to be as follows:
1. The City would grant the current owners the right to construct buildings on the Circuit
City parcel up to 180 feet for up to 50% of the lot area. The remainder of the lot would
have height limits as determined by the zoning in effect at the time that a complete
design review application is submitted.
2. The City would grant the owners the right to include up to 300 residential housing units.
3. The owners must submit a complete building permit application to the City before the
end of 2015. Otherwise, these rights expire. Once a complete building permit
application is accepted by the City, the vesting rights apply as under State law.
4. The residential housing units must be platted as condos and the water intrusion system
must meet the state's laws as required for condos.
This agreement would provide the owners almost three years to complete the financial
feasibility, complete environmental analysis, secure hotel agreements, arrange financing,
complete design review, and create construction documents for building permit submittal.
This agreement would not change any other governing regulations. The rest of the zoning
codes, building codes, and other development standards would be applied as for any other
project. This agreement would not change any fees related to the project. In the future the
owners may request the City waive, amend, or defer fees but that would be a future decision for
the City Council.
Staff is seeking feedback from the Committee on proposed terms. If the Committee is
interested in this proposal, then staff will prepare a draft development agreement and ordinance
for Council approval. Staff would like the Council to hold a public hearing at the Committee of
the Whole meeting on March 11 and schedule a vote for the Regular meeting on March 18.
Official notice for the public hearing would be published on February 25.
The Committee could reconsider this item with the draft agreement and ordinance at its meeting
on February 25 and then decide whether to forward the item to the full Council. However, staff
recommends the Committee forward this item to the full Council's Committee of the Whole
meeting on February 25. That would enable the full council to have extra time to review and
discuss the draft agreement and ordinance.
W: \Derek \Omar Lee \Council Memo V2.doc
43
INFORMATIONAL MEMO
Page 4
FINANCIAL IMPACT
There is no additional budget requested for this item. If this project gets developed as
proposed, it would generate additional sales and property taxes and fees and additional
requests for public service.
RECOMMENDATION
The Council is being asked to consider this item at the February 25, 2013 Committee of the
Whole meeting, hold a public hearing at the March 11, 2013 Committee of the Whole meeting,
and take action at the March 18, 2013 Regular Meeting.
ATTACHMENTS
Letter from Omar Lee dated January 17, 2013
Conceptual sketches from Mulvanny G2 dated January 23, 2013
Mass and scale sketches dated December 2012
W: \Derek \Omar Lee \Council Memo V2.doc
44
South Center WA, LLC
18230 East Valley Highway Suite 195 Washington 98032
Telephone (425) 251 -1600 Facsimile (425) 251 -1900
January 17, 2013
Mayor Haggerton,
We have enjoyed working with you and your staff on the future development of our
property located at 223 Andover Park East, which was formerly a Circuit City store. We
purchased this property in October of 2010, because we like the location and believe in the future
of Tukwila's Central Business District (CBD).
At our first meeting in late 2010, you and your staff shared your vision for Tukwila's
CBD. This meeting inspired us to seriously consider building a pair of seventeen -story towers
consisting of apartments and a luxury hotel. To date, we have made a significant investment into
evaluating the financial feasibility of this project. However, before taking the next step with the
development, we must have certainty regarding the allowable building height. The current
zoning height limit is 115 feet. This development project requires up to 180 feet excluding
mechanical appendages. We respectfully submit that requesting the City grant us a variance in
the form of a development agreement.
Although the project will change as our plans develop due to lender /investor
requirements and market demand, our current concept is to include 171 hotel rooms and 282
residential units. We will also include some retail and restaurant space on the ground floor.
We believe this project is a great opportunity for the City of Tukwila, as it will set the
stage for additional developments in the CBD. This project will create many jobs and attract
more customers to local businesses. Furthermore, it will improve Tukwila's image by
demonstrating its status as a desirable location for large development projects and pro - growth
attitude.
Our investors and we have a strong track record for developing quality projects (please
see a copy of my resume attached hereto). We have developed many retail and commercial
properties, office buildings, apartment complexes and shopping malls. Our nearest project is only
a few miles away at the Great Wall Shopping Mall in Kent. We transformed what used to be an
abandoned hardware store into a thriving Asian shopping mall that provides hundreds of jobs and
45
is now used as a central location for food, entertainment and shopping. We look forward to
performing a similar transformation with this currently abandoned Circuit City building.
We are very excited to get this project underway and are looking forward to working with
you and your staff. Thank you for your support, time and consideration.
Very Truly Yours,
46
mar . Lee
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Images provided by the Department of Community Development. All images are approximate.
AFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, RELATING TO DEVELOPMENT
AGREEMENTS AUTHORIZED PURSUANT TO CHAPTER 18.86 OF
THE TUKWILA MUNICIPAL CODE; APPROVING AND
AUTHORIZING THE PROPOSED 223 ANDOVER PARK EAST
DEVELOPMENT AGREEMENT WITH SOUTH CENTER WA, LLC, A
WASHINGTON LIMITED LIABILITY COMPANY; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, RCW 36.70B.170, et seq. and Tukwila Municipal Code (TMC) Chapter
18.86 authorize development agreements between the City and persons having
ownership or control of real property in order to establish development standards to
govern and vest the development, use and mitigation of real properties; and
WHEREAS, the City of Tukwila and South Center WA, LLC wish to enter into a
Development Agreement for the 223 Andover Park East development, a copy of which
is attached hereto as Exhibit A; and
WHEREAS, as required pursuant to TMC Section 18.86.050, a public hearing was
conducted on the 11th day of March 2013 to take public testimony regarding this
Development Agreement, as proposed; and
WHEREAS, the City Council, pursuant to City Ordinance No. 23xx, approved this
Development Agreement as proposed and authorized execution of this Development
Agreement;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. The 223 Andover Park East Development Agreement by and between
the City of Tukwila and South Center WA, LLC, a copy of which is attached hereto as
Exhibit A, is hereby approved, and the Mayor is authorized and directed to execute said
Development Agreement on behalf of the City of Tukwila.
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Page 1 of 2
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Section 2. Corrections by City Clerk or Code Reviser. 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 days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2013.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Exhibit A — Development Agreement
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68
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Page 2of2
DEVELOPMENT AGREEMENT
FOR THE
223 ANDOVER PARK EAST DEVELOPMENT
THIS DEVELOPMENT AGREEMENT ( "Development Agreement") is entered into as
of the day of , 2013 by and between the City of Tukwila, a municipal
corporation operating under the laws of the State of Washington as a non-charter code city (the
"City"), and South Center WA, LLC, a Washington limited liability company ("Developer"),
pursuant to the authority of RCW 36.70B.170, et seq. and Chapter 18.86 of the Tukwila
Municipal Code, and in consideration of the mutual benefits to be derived. The City and
Developer are sometimes collectively referred to in this Development Agreement as the
"Parties," and individually as a "Party." The Parties have, entered into this Development
Agreement with reference to the following facts:
I. RECITALS
WHEREAS, RCW 36.70B.170, et seq. and FMC Ch. 18.86 authorize development
agreements between the City and persons having ownership or control of real property in order
to establish development standards to govern and vest the development, use and mitigation of
real properties; and
WHEREAS, the site of this development is located in the core of the Tukwila Urban
Center, between Westfield Southcenter Maii . and the Sounder Commuter Rail Station; an d
WHEREAS, the proposed development is for the construction of a pair of attached, 17-
story buildings which would be 180 feet in height and would comprise approximately 170 hotel
guest rooms and 280 residential units ; and
1-1 E'
AS this site lies within the core of Tukwila's Urban Center (TUC). The
Tukwila Urban Center Elernent of theCornprehensive Plan outlines a vision for the TUC to be a
"great place ft?:wor mg, shopping. business, living, or playing." One of the noted future
features is "a core area o f higli1P cigu'ality,walkable retail, entertainment, housing, public space s ,
and employment.T i
his site is in the TUC core and would add housing that is walkable
to transit, retail, and entertainment; thus, it supports the Comprehensive Plan; and
WHEREAS, Tukwil:al's Urban Center is one of the region's 17 designated urban centers.
The Countywide Planning Policies defines and envisions urban cen t ers as areas of concentrated
employment and housing with direct service by high-capacity transit. This proposed
development would place concentrated employment and housing within the core of the Tukwila
Urban Center and helps the City meet the intended purpose of the urban center; and
WHEREAS, this development will be a catalyst to create a pedestrian friendly, walkable
neighborhood in the core of Tukwila's Urban Center. People who would choose to stay or live
in this development would do so for the convenient access to the freeways but also for the
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convenience of walking to restaurants, entertainment, shopping, buses, and the commuter rail
station; and
WHEREAS, the development will be of high quality and will improve the image of
Tukwila's Southcenter District and identity for the entire City; thereby having the potential to
attract further high quality development; and
WHEREAS, This development will stimulate additional residential development in the
area by demonstrating the financial feasibility of this type of development and demonstrating
demand for high quality housing stock; and
WHEREAS, residential units will assist the City in meeting its housing targets as
required by the Growth Management Act and as determined through King County's Countywide
Planning Policies; and
WHEREAS, the City has a goal to encourage ownership of housing as a method to foster
stability in our population and schools. This project would be developed with the ability to
readily convert to condominiums; and
WHEREAS, as required pursuant to TMC 18.86.050, a public hearing was conducted on
the 1 lth day of March, 2013 to take public testimony regarding this Development Agreement, as
proposed; and
\VIIEREAS, the City Council, pursuant to City Ordinance No.
approved this
Development Agreement as proposed and authored executiOnef this Development Agreement;
and
WI IEREAS. pursuant to TMC 18.86.080, the decision of the City Council to approve or
reject Developer's request for a development agreement is a discretionary, legislative act; and
WHEREAS, the Parties desire to enter into this Development Agreement upon the terms
and conditions as set forth herein,
NOW, THEREFORE, in consideration of the mutual agreements contained herein, as
well as other valuable consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, the City and Developer hereby agree as follows:
II. AGREEMENT
Section 1. Incorporation of Recitals. The Parties agree that the foregoing recitals
are true and correct to the best of their knowledge and are incorporated by this reference as
though fully set forth herein.
Section 2. Project Description. This development involves the construction of two
attached 17-story buildings and related parking facilities. The Property is located within the
2
Tukwila Urban Center. Exhibit A (legal description) and B (site map). Use of the Property will
consist of approximately 170 hotel guest rooms and 280 residential units, as well as related
parking facilities.
Section 3. Statement of Authority and Intent. This Development Agreement is
entered into pursuant to the authorization of RCW 36.70B.170 and TMC 18.86 and is intended
and designed to vest this development to certain terms and conditions. Other than those terms
and conditions specifically identified in this Agreement, the City's regulatory codes in effect at
the time of a complete building permit application are accepted1Dy the City shall apply.
Section 4. Development Standards; Conditions.
4.1 Effective Period of this Agreement. This Development Agreement shall be valid
until December 31, 2015. If Developer has not submitted, and the City has not accepted, a
complete building permit application and building permits have not been secured for the
development by that date, this Development Agreement shall be void and development may
occur on the subject site pursuant to the then-adopted development regulations,
4.2 Application of Development Standards. 'RCW 36.70B 180(3)(d) and TMC
18.86.030 authorize the establishment :of design standards by a development agreement. More
specifically, TMC 18.86.030 provides that, a development agreement may allow development
standards different from those otherwise imposed under the Tukwila Municipal Code in order to
provide flexibility achieve public benefifutsn, r.espond to changing community needs, or
encourage modificatio 9ehithavte provide the ell ti equivalent or adequately achieve the
purposes of otherwise onafspplicable City standards. 'ePursuant thereto and dduring the Effective
Period, the provisions this Section 4 set forth the development standards that differ from or
supplement those standards set the City's regulations. Accordingly, th e
following development standards shall apply to and govern and vest the development and use of
f
the Project in lieu of any conflicting or different standards or requirements elsewhere in the
Governing Regulations.
4.3 Additional Building 1 Icight. The maximum building height for 50 percent of th e
site shall be 180 'feet. The remainder of the site would be limited in height by the zoning code in
effect that the time of complete building permit application. This increase in building height is
consistent with the goals of the Comprehensive Plan to encourage residential development within
the Urban Center and iseensistent with the City's vision of increased urban density.
4.4 Residential Units. The City will allow up to 300 residential housing units to be
constructed on the Site.
4.5 Condominium Designation. In order to receive a Certificate of Occupancy the
Developer must demonstrate that a Washington condominium declaration has been recorded for
all residential units built, along with the survey map and plans, which show surveying data for
the overall parcel, as well as details of buildings and the location of units. These documents
must be in conformance with RCW 64.34 et seq. In addition, all applicable development plans
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submitted to the City for the residential building must show that the Site's water intrusion system
meets the Washington State standards for condominium development.
Section 5. Major and Minor Amendments - Development Agreement. All
proposed amendments to the Development Agreement shall be considered in accordance with
this Section 5.
5.1 Process. The Mayor may approve Minor Amendments to the Development
Agreement proposed by the City or Developer and mutually agreed to by the Parties. Such
approval shall be in writing and the resulting amendmen i
be incorporated into this
Development Agreement as an amendment. The City Council :may approve Major Amendments
to the Development A re ement in accordance with process
the ,Same for approval of the
Development Agreemengt.A Major Amendment to the%Development Agreement approved by the
City Council, and mutually agreed to by the Parties; shall be incorporated into this Development
Agreement as an amendment pursuant to Section:21 hereof.
5.2 Minor Amendment Defined. A proposed amendment to the Development
Agreement shall be considered a minor amendment if the proposed amendment does not modify
the Governing Regulations or Section -4 (Development Standards; Conditions) hereof , does n. ot
materially modify the size or scope (4 the development, and does not modify the Vesting Period
or term of this Development Agreement.
5.3 Major Amendment Defined. A proposed amendment to the Development
Agreement shall be considered a Major Amendment if the proposed amendment does not
constitute a Minor Amendmen t
5.4 Determination. An application for ;a Minor Amendment shall be made to the
Mayor. The application shall describe the proposed Minor Amendment in sufficient detail such
that the Mayor can determine whether or not the proposal qualifies as a Minor Amendment.
the application does not provide -sufficient information, qtlhe Mayor may request additional
information 'from the Developer or reject the application. Upon receipt of sufficient information
to determine if the roposal set forth the application constitutdesPa Minor Amendment, the
Mayor shall deterniiPne the the proposal constitutes a Minor Amen ment. In the event that the
Mayor determines that proposed amendment is a Minor Amendment, the Minor Amendment
may be administratiVely;Proved by the Mayor. In the event that the Mayor determines that the
proposal constitutes a Major Aamendment, the Developer shall submit the proposal in accordance
with the same process for approval of a Development Agreement, withdraw its proposed
amendment, or modify andrre-sPuPbmit its proposed amendment. The determination of the Mayor
shall be a final decision.
Section 6. Further Discretionary Actions. Developer acknowledges that the
Development Agreement contemplates the exercise of further discretionary powers by the City.
These powers include, but are not limited to, review of permit applications under SEPA.
Nothing in this Development Agreement shall be construed to limit the authority or the
obligation of the City to hold legally required public hearings, or to limit the discretion of the
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City and any of its officers or officials in complying with or applying Governing Regulations and
the development standards and conditions set forth in Section 4 hereof
Section 7. Existing Land Use Fees and Impact Fees. Generally applicable land use
fees and impact fees adopted by the City by resolution or ordinance as of the effective date of
this Development Agreement may be increased by the City from time to time, and the new fees
applied to subsequent permits and approvals for the Property.
Section 8, Specific Performance. The Parties specifically agree that damages are
not an adequate remedy for breach of this Development Agreeme and nd that the Parties are
entitled to compel specific performance of all material terms of this Development Agreement by
any Party in default hereof.
Section 9. Termination. This Development Agreement shall expire and/or terminate
on the earlier of the termination/expiration provisions set forth as follows:
9.1 This Development Agreement shall terminate upon the expiration of the Effective
Period identified in Section 4 hereof.
9.2 Upon termination of this Development Agreement, the City shall record a notice
of such termination in a form satisfactory to the City Attorney that the Development Agreement
has been terminated.
Section 10. A n
t and Assumption. The Developer shall have the right to sell,
assign or transfer this velonpmeent Agreement with all its right's, title and interests therein to any
person, firm or corporation at any time duriny, the term of this Development Agreement.
Developer shall provide the City with written notice of any intent to sell, assign, or transfer all or
a portion of the Subject Property, at least 30 days in advance of such action.
Section 11. Covenants Running With the Land; Recording. The conditions and
covenants 'set forth in this Development Agreement and o i
incorporated rated herein by the Exhibits shall
run with the land and the benefits and burdens shall bind and inure to the benefit of the Parties.
The Developer, and every purchaser, assignee or transferee of an interest in the Property, or any
portion thereof, shall be obligated and bound by the terms and conditions of this Development
Agreement, and shall be:the beneficiary thereof and a party thereto, but only with respect to the
Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser,
assignee or transferee shall observe and fully perform all of the duties and obligations of a
Developer contained in this Development Agreement, as such duties and obligations pertain to
the portion of the Property sold, assigned or transferred to it.
Section 12. Amendment to Agreement; Effect of Agreement on Future Actions.
This Development Agreement may be amended by mutual consent of all of the Parties, provided
that any such amendment shall follow the process established for Major and Minor Amendments
as set forth in this Development Agreement.
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Section 13. Releases. Developer, and any subsequent owner, may be released from
further obligations relating to the sold, assigned, or transferred portion of the Property, provided
that the buyer, assignee or transferee expressly assumes the obligations under this Development
Agreement as provided herein.
Section 14. No Third-Party Beneficiary. This Development Agreement is made and
entered into for the sole protection and benefit of the Parties hereto and their successors and
assigns. No other person shall have any right of action base d upon any provision of this
Development Agreement.
Section 15. Interpretation. The Parties intend this Development Agreement to be
l
interpreted to the full extent authorized by aw as an exercise Ofthe City's authority to enter into
development agreements pursuant to RCW 36.7013.17 0 , e t seq., and this Development
Agreement shall be construed to exclude from the scope of this Development Agreement and to
reserve to the City, only that police powe.rd authority i which is prohilDited by law from being
subject to a mutual agreement with consideration. rat on. This Development Agreement has been
reviewed and revised by legal counsel for both Parties, rties and no presumption or rule construing
ambiguity against the drafter of the document shall apply to the interpretation or enforcement of
this Development Agreement.
Section 16. Notice. All communications, notices, and demands of any kind that a
Party under this Development Agreement requires or desires n
to give to any other Party shall be in
writing and either (i) delivered personally i, (ii) sent by facsimile transmission with an additional
copy mailed first class, or (iii) deposited n the U.S. mail, certified mail postage prepaid, return
receipt requested, and addressed as follows:
74
If to the City:
y of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
ttn: Mayor's Office
With a copy to:
City Attorney
City of Tukwila
Kenyon Disend, PLLC
11 Front Street South
Issaquah, Washington 98027-3820
General: 425-392-7090
Fax: 425-392-7071
6
If to Developer:
South Center WA, LLC
18230 East Valley Highway, Suite 195
Kent, WA 98032
425 -251 -1600
Notice by hand delivery or facsimile shall be effective upon receipt. If deposited in the mail,
notice shall be deemed delivered forty -eight (48) hours after deposited. Any Party at any time by
notice to the other Party may designate a different address or person to which such notice or
communication shall be given.
Section 17. Excusable Delay (Force Majeure) In addition to specific provisions of
this Development Agreement, and notwithstandinganything to the contrary in this Development
Agreement, neither Party shall be in default in the performance or 'the failure of performance of
its obligations under this Development Agreement, or in the delay of its performance, where
such failure or delay is due to war, insurrection, strikes, lock -outs or other labor disturbances,
one or more acts of a public enemy, war, riot, sabotage, blockade, embargo, floods, earthquakes,
fires, quarantine restrictions, freight embargoes, lack of transportation, court ;birder, delays or
failures of performance by any governmental authority or utility company (so long as the Party
seeking the extension has adequately complied ..with the applicable processing requirements of
such governmental authority or utility con)pany) L delays resulting from changes in any applicable
laws, rules, regulations, ordinances or codes, or a change in the interpretation thereof by any
governing body with jurisdiction. delays resulting from the - weather or soils conditions which
necessitate delay, delays resulting from litigation (including suits filed by third parties
concerning or arising out of this Development Agreement) or any other cause (lack of funds of
Developer, Developer's inability ` to ,finance the construction of the development, and
Developer's inability to lease ovements, are not causes beyond the reasonable control or
without the fault of Developer) beyond the reasonable control or without the fault of the Party
claiming an extension of time to perform or an'inability of performance. The extension of time
for any cause shall be from the time of the event that gave rise to such period of delay until the
date that the cause for the extension no longer exists or is no longer applicable, in each case as
evidenced by a; notice from the,Party cl aiming the extension. An extension of time for the
duration of such event will be deemed granted if notice by the Party claiming such extension is
sent to the other as to any of the above causes other than Permit Delays, within 10 days from the
commencement of the cause and such extension of time is not rejected in writing by the other
Party within 10 days of receipt of the notice (such extension of time is referred to herein as
"Force Majeure "). Times for performance under this Development Agreement may also be
extended in writing by the City and Developer in accordance with Section 11 herein.
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Section 18. Indemnification. Except as otherwise specifically provided elsewhere in
this Development Agreement and any Exhibits hereto, each Party shall protect, defend,
indemnify and hold harmless the other Party and their officers, agents, and employees, or any of
them, from and against any and all claims, actions, suits, liability, loss, costs, expenses, and
damages of any nature whatsoever, whic h are caused by or result from any negligent act or
omission of the Party's own officers, agents, and employees in performing services pursuant to
h
this Development Agreement. In the event that any suit based upon such a claim, action, loss, or
damage is brought against a Party, the Party whose osng
negligent action or omissions gave rise to the
claim shall defend the other Party at the indemnifying y ihgParty's sole cost and expense; and if final
Party judgment be rendered against the other arty a n its
d officers, agents, and employees or jointly
the Parties and their respective officers, . afgetnhts,saanmde;employees, the Parties whose actions or
omissions gave rise to the claim shall satisfy y provided that, in the event of concurrent
negligence, each Party shall indemnify an. hot the other Parties harmless only to the extent of
that Party's negligence. The indemnification to City hereunder shall be for the benefit of the
City as an entity, and not for members of the general public.
Section 19. Applicable Law and Attorneys' Fees. This Development Agreement
shall be construed and enforced in accordance with the laws of the State of Washington. If
litigation is initiated to enforce the terms o f Develppment Agreement, the prevailing Party
shall be entitled to recover its reasonable attorneys fees and costs from the non-prevailing Party.
Venue for any action shall lie in King County Superior Court or the U.S. District Court for
Western Washington.
Section 20. Third Party Legal Challenie. In 'the event any legal action or special
proceeding is commenced by any person or entity other than a Party, or successor or assign of
Developer, to challenge this Development Agreement or any provision herein, the City may elect
to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or
successor(s) assign(s). In slid) event. Developer' and/or such successor(s) or assign(s) shall
hold the City harmless from and defend the City from all costs and expenses incurred in the
defense of such lawsuit- or individual claims In the lawsuit, including, but not limited to,
attorneys':fecs and expenses nf litigation,, and damages awarded to the prevailing party or parties
in such litigation. The Developer and/or such successor(s) or assign(s) shall not settle any
lawsuit without the consent of i
the City. The City shall act in good faith and shall not
unreasonably withhold consent in .settle.
Section 21. Severability. If any phrase, provision or section of this Development
Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, or
if any provision of this Development Agreement is rendered invalid or unenforceable according
to the terms of any statute of the State of Washington which became effective after the effective
date of the ordinance adopting this Development Agreement, and either Party in good faith
determines that such provision or provisions are material to its entering into this
i
Agreement, that Party may elect to terminate this Development Agreement as to all of its
obligations remaining unperformed.
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Section 22. Authority. Each Party respectively represents and warrants that it has the
power and authority, and is duly authorized, to enter into this Development Agreement on the
terms and conditions herein stated, and to deliver and perform its obligations under this
Development Agreement.
Section 23. Exhibits and Appendices Incorporated. Each Exhibit attached hereto or
referenced is incorporated herein by such reference as if fully set forth herein.
Section 24. Headings. The headings in this Development Agreement are inserted for
reference only and shall not be construed to expand, limit or otherwise modify the terms and
conditions of this Development Agreement.
Section 25. Time of the Essence. Time is of the essence of this Development
Agreement and of every provision hereof. Unless otherwise set forth in this Development
Agreement, the referen. i
reference to "days" shall mean hc,aleridar days. If an period y time for action occurs on a
weekend or legal holiday in the State of Was mgton, then the time shall be extended
automatically to the next business day.
Section 26. Entire Agreement. This Development Agreement, and the DDA
referenced herein, represents the entire agreement of the parties with respect to the subject matter
hereof. There are no other agreements, oral or w. ritten, except as expressly set forth herein and
this Development Agreement supersedes all previous agreements, oral or written.
9
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AS OF THE DATE FIRST WRITTEN ABOVE, the Parties evidence their agreement to
the Terms of this Development Agreement by signing below:
Attest:
By:
Christy O'Flaherty, City Clerk
Approved As To Form:
By:
78
Shelley Kerslake
City Attorney
CITY:
CITY OF TUKWILA, a municipal corporation
By:
Jim Haggerton
Mayor
DEVELOPER:
By:
10
Omar Lee
Manager
STATE OF WASHINGTON )
)ss
COUNTY OF
On , 20 , before me, the undersigned, a Notary Public, personally appeared
JIM HAGGERTON, personally known to me (or proved to me on the basis of satisfactory
evidence) as the person whose name is subscribed to the within instrument, and acknowledged to
me that he executed the same in his authorized capacity as MAYOR OF THE CITY OF
TUKWILA, and that by his signature on the instrument the entity upon behalf of which he
acted, executed the instrument.
STATE OF WASHINGTON)
,
)ss
COUNTY OF,
WITNESS thy hand and official seal.
. ,
On , 20 , before me, the undersigned, a Notary Public, personally appeared
OMAR LEE, personally known to me (or proved to me on the basis of satisfactory evidence) to
be the person whose name is subscribed to the within instrument, and acknowledged to me that
he executed the same in his authorized capacity, as MANAGER OF SOUTH CENTER WA,
LLC, and that by his signature on the instrument the entity upon behalf of which he acted,
executed the instrument.
WITNESS my hand and official seal.
Print Name:
NOTARY PUBLIC in and for the State of
Washington, residing at
My commission expires:
11
79
Exhibit A
Exhibit B
EXHIBITS:
Legal Description of Property
Depiction of the Property
12
80
Exhibit A
Legal Description of the Property
ANDOVER INDUSTRIAL PARK # 2 PORTION OF TRACT 9 - BEGIN NW CORNER TH
SELY ALONG CURVE TO LEFT RADIUS OF 573.69 FT CENTER BEARING N 86 -37-
32 E ARC DISTANCE OF 15.07 FT TO POB TH S 88 -25 -27 W 208.90 FT TH S 88 -25-
14 E 140.09 FT TH S 88 -25 -27 E 224.93 FT TAP ON E LINE OF TRACT 9 TH ALONG
PERIMETER OF TRACT 9 S 01 -05 -08 W 273 FT TH N 88 -25 -27 W 505.43 FT TH N
14 -39 -30 W 184.47 FT TH ALONG CURVE TO RIGHT RADIUS OF 573.69 FT ARC
DISTANCE OF 97.91 FT TO POB
13
81
82
0010
tc;
,62,,:,110 00
0031
101 UT1L. ESMT.
172
Exhibit B
Depiction of the Property
14820 F
0032
78
6.59
32530 sr '
0037.
152.01
32537
0038
1)
ffaRAMWRMSWM-.4:-
triF
eei
212
101 WEIL, eomy,
OnM
0101 STRIAlj PARK NO, 2
01
208.90
BAKER BLVD 90
49757 SF
1.14 AC
0085
142,10
TR. 8
gr
575,27
N 88-25-27
212237 313
4.87 AC
0075
Subject r .22 7
Propert
0
c-1
33392 SF.
Ob87
140.09
573.90 +1-
TR. 9
022320
173 . 34
3,
0
0
f"
52134 39'
0080 E
. .
ANDOVER IN ti USTRIAL
PARK NO. 3,
14
148507 SF
3.41. AC
0890
REF. •UK BLA * L94-0026 94052
30 i 30
01
.01
30
18
30
.00
Ni
83
84
City of Tukwila
Community Affairs and Parks Committee
COMMUNITY AFFAIRS AND PARKS COMMITTEE
Meeting Minutes
January 28, 2013 — 5:15 p.m.
PRESENT
Counci (members:
Staff:
Guests:
De'Sean Quinn, Acting Chair; Kathy Hougardy (filling in for Allan Ekberg) and Kate Kruller
Jack Pace, Bob Benedicto, Kathy Stetson, Derek Speck, Evie Boykan, Peggy McCarthy, David
Cline and Kimberly Matej
Omar Lee, South Center WA LLC; Christine Lee, South Center WA LLC; Jerry Quinn,
MulvannyG2; Craig Davenport, MulvannyG2; Cho Suzumura, MulvannyG2
CALL TO ORDER: Acting Committee Chair Quinn called the meeting to order at 5:22 p.m.
The order of agenda items was changed from that as outlined on the original agenda cover sheet in order to accommodate
attendees.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Memorandum of Understanding: Joint Human Services Application and Funding Program
Staff is seeking Council approval to enter into a Memorandum of Understanding (MOU) with 19 cities,
including Tukwila, for the implementation of a joint human services application and funding program. This
item is being brought forward to Council as it is comparable to, and largely considered an interlocal
agreement, and all such agreements require Council approval.
Staff explained that the MOU formalizes processes for application and online reporting for human services
funding that has been utilized since 2010. Overall, the program creates administrative efficiency, reduces
costs, and coordinates activities. The program will be managed by the City of Kent and will cost the City of
Tukwila $500 annually. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 4 REGULAR
MEETING CONSENT AGENDA.
B. Proposed Development Agreement: 223 Andover Park East
Staff is seeking Committee approval to forward a proposed development agreement to full Council for
discussion. The agreement is regarding the property located at 223 Andover Park East (the former Circuit
City site). A development agreement is being considered for this site because the proposed development
would conflict with current zoning limits for the site. Specifically, the building height would be 180 feet,
surpassing the current City limit of 115 feet in this location as well as incorporating 280 residential units
into the development in an area that does not currently allow residential.
The developers are interested in conducting additional studies, research, and analysis in order to determine
the feasibility of the project. However, prior to investing substantial monies for such they are seeking to
enter into a development agreement that would approve the residential dwellings and additional height. This
agreement would not provide design approval. it would provide the developers with almost three years to
complete the feasibility studies, additional analysis and create construction documents for building permits.
The agreement would not change any other governing regulations.
After discussion among Committee Members, staff and developer representatives, the Committee was in
favor of this item moving forward to full Council for discussion. A draft development agreement will be
submitted to full Council for review, after which a public hearing will he scheduled as appropriate.
UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 25 COW FOR DISCUSSION.
85