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Home My WebLink AboutReg 2013-03-18 Item 4A - Ordinance - 223 Andover Park East Development Agreement with South Center WA LLCCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Ma is review Council review 02/25/13 DCS k'i if 03/11/13 DCS ❑ Resolution Mtg Date Ordinance 03/18/13 DCS ❑ Other Mtg Date Mtg Date Mtg Date 03/18/13 Mtg Date 3/11/13 SPONSOR ❑ Council ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P &R ❑ Police ❑ PLY/ ITEM INFORMATION ITEM No. 4.A. aaaitionai into 11 STAFF SPONSOR: DEREK SPECK ORIGINAL AGENDA DATE: 2/25/13 AGENDA ITEM TITLE 223 Andover Park East Development Agreement (DA) CATEGORY /1 Discussion 02/25/13 ❑ Motion Mtg Date ❑ Resolution Mtg Date Ordinance ❑ Bid Award Mtg Date 0 Public Hearing ❑ Other Mtg Date Mtg Date Mtg Date 03/18/13 Mtg Date 3/11/13 SPONSOR ❑ Council ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P &R ❑ Police ❑ PLY/ /1 Mayor 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. ❑ Utilities Cmte DATE: 1/28/13 I1 CA &P Cmte ❑ F &S Cmte ❑ Transportation Cmte ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: EKBERG ❑ Arts Comm. 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 Forward to 3/11/13 Committee of the Whole meeting 03/11/13 Forward to next Regular Meeting 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 03/11/13 As above 03/18/13 Ordinance in final form, with Development Agreement in track - changes format and aaaitionai into 11 12 City of Tukwila Washington Ordinance No. 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. 2399, 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. W: Word Processing \Ordinances\223 APE DA 2 -20 -13 SK:bjs Page 1 of 2 13 14 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 W: Word Processing \Ordinances\223 APE DA 2 -20 -13 SK:bjs Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 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 Mall and the Sounder Commuter Rail Station; and WHEREAS, the proposed development is for the construction of h---p-aof—attitched, 17 s-tiffy—buildings which would-be two buildings 141212 180 feet in height aithal would comprise approximately 170 hotel guest rooms and .2-8925Q residential units; and WHEREAS, this site lies within the core of Tukwila's Urban Center (TUC). The Tukwila Urban Center Element of the Comprehensive Plan outlines 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.." This site is located in the TUC core and would add housing that is walkable to transit, retail, and entertainment; thus, it supports the Comprehensive Plan; and WHEREAS, Tukwila's Urban Center is one of the region's 17 designated urban centers. The Countywide Planning Policies defines and envisions urban centers 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 1 15 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, Thisthe 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 Ciiy in meeting its housing targets as required by the Growth Management Act and as deternUned 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 WHEREAS, the City Council, pursuant to City Ordinance No. approved this Development Agreement as proposed and authorized execution of this Development Agreement; and WHEREAS, 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: H. 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-: .'41:p to two eig,hteen story buildings and related parking facilities. The 2 16 Property is located within the Tukwila Urban Center. Exhibit A (legal description) and B (site map). t i-IlThe current anticipated use of the ro )ert consists of approximately 170 hotel guest rooms and -N2,-0350 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 accepted by 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 beensvee development may iny for the a development by that date, this Development Agreement shall be void n ci de 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 to achieve public benefits, respond to changing community needs, or encourage modifications that provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. Pursuant thereto and during the Effective Period, the provisions of this Section 4 set forth the development standards that differ from or supplement those Standards set forth in the City's development regulations. Accordingly, the following developinent standards shall apply to and govern and vest the development and use of the Project in lieu of any conflicting or different standards or requirements elsewhere in the Governing Regulations. 4.3 Additional Building Height. The maximum building height for 50 percent of the 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 a complete building permit application. This increase in building height is consistent with the goals ()f the Comprehensive Plan to encourage residential development within the Urban Center and is consistent with the City's vision of increased urban density. 4.4 Residential Units. The development must include at least 250 but no more than 450 residential units. Gi-ty will allow icing units to bfro1i-41-uetekle-fi4h-e Site. 4.5 Condominium DecIaratiomIem In order to receive a Certificate of Occupancy the Developer must €1-efta+. provide the Cit a co _y of a Washington condominium declaration nit', been recorded for all residential units built, along with the survey 3 17 map and plans, which show surveying data for the overall parcel, as well as details of buildings and the location of units. These documents do not have to he recorded but must otherwise be in conformance with RCW 64.34 et seq. In addition, each residential unit must have an individual electric meter. „ nt plan.' ie—C° y—fe* feSidC. C * on St-ate 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 ,amendment shall be incorporated into this Development Agreement as an amendment. The City Council may approve Major Amendments to the Development Agreement in accordance with the same process for approval of the Development Agreement. 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 not materially modify the size or scope of the development, and does not modify the Vesting Period or term of this Development Agreement. 5.3 Major Amendment Defined. A proposed amendment me t amendment etnhdeDnet does not Agreement shall be considered a Major Amendm .f the e p o p os constitute a Minor Amen drnent. 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. If the application does not provide sufficient information, the Mayor may request additional information from the Developer or reject the application. Upon receipt of sufficient information to determine if the proposal set forth in the application constitutes a Minor Amendment, the Mayor shall determine if the proposal constitutes a Minor Amendment. In the event that the Mayor determines that the proposed amendment is a Minor Amendment, the Minor Amendment may be administratively approved by the Mayor. In the event that the Mayor determines that the proposal constitutes a Major Amendment, the Developer shall submit the proposal in accordance with the same process for approval of a Development Agreement, withdraw its proposed amendment, or modify and re-submit its proposed amendment. The determination of the Mayor shall be a final decision. 4 18 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 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 f to time, from time o , 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.iir;f; and that the Parties are entitled to compel specific performance of all material terms of this evelopment 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 Agreeinent shall terrninate 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. ,'Assignment and Assumption. The Developer shall not have the right to sell, assign or transfer iliislpevelopment Agreement with all its rights, title and interests therein to any person, firm or corporation at any time during the term of this Development Agreement ovided that,tlie,Develo rier assign, or transfer this Development Agreement with all its hts, title, and -rests therePir to any firm or corporation in which the Develpper has a majority interest. Developer shall provide the City with written notice of any intent to sell, assign, or transfer 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 incorporated 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 5 19 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. 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 an d assigns. No other person shall have any right of action based upon any provision of this Development Agreement. Section 15. Interpretation. The Parties intend this Development greement to be interpreted to the full extent authorized by law as an exercise of the City's authority to enter into development agreements pursuant to RCW 36.708.170, et 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 power authority ority which is prohibited by law from being subject to a mutual agreement with consideration. This Development Agreement has been reviewed and revised by legal counsel for both Parties, an d 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 to give to any other Party shall be in writing and either (i) delivered personally, (ii) sent by facsimile transmission with an additional copy mailed first class, or (iii) deposited in the U.S. mail, certified mail postage prepaid, return receipt requested, and addressed as follows: If to the 0ty: City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Attn: Mayor's Office With a copy to: City Attorney City of Tukwila Kenyon Disend, PLLC 20 6 11 Front Street South Issaquah, Washington 98027-3820 General: 425-392-7090 Fax: 425-392-7071 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 notwithstanding anything to t e contrary in this Development Agreement, neither Party shall be in default in the P erfoimance or the failure of performance of e its obligations under this Development Agre ment 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 em arioes lack of transportation, court order, delays or failures of performance by any governmentarl authority or utility company (so long as the Party seeking the extension has adequately comp with the applicable processing requirements of such governmental authority or utility companley), wdelays 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 r necessitate delay, delays resulting from 'ligation (including suits filed by third parties concerning or arising out of this g 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 the Improvemen t s, are not causes beyond the reasonable control or without the fault of Developer) beyond the reas.onbabillie t control or without the fault of the Party claiming an extension of time to perform or an inability performance. The extension of time for any cause shall be from the time of the event exists or rise to such period of delay until the date that the cause for the extension no longer emits r is no longer applicable, in each case as evidenced by a notice from the Party claiming 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 lextension 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. 7 21 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, which are and by or result from any negligent act or omission of the Party's own officers, agents, atn em loyees in performing services pursuant to 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 ynegligent action or omissions gave rise to the claim shall defend the other Party at the indemnifying itsgParty's sole cost and expense; and if final judgment be rendered against the other Party and officers, agents, and employees or jointly the Parties and their respective officers, afgenhs,saanmde;emplOyees, the Parties whose actions or omissions gave rise to the claim shall satisfy y tme 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 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 accordantcei with the laws of the State of Washington. If litigation is initiated to enforce the terms o f h Developinent Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys fees 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 Challenge. 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), or assign(s). In such event, Developer and/or such successor(s) or assign(s) shall hold the ';City harrnless 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' fees and expenses of 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 the City. The City shall act in good faith and shall not unreasonably withhold consent to settle. Section 21 . S everability. 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 invali d 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 Development Agreement, that Party may elect to terminate this Development Agreement as to all of its obligations remaining unperformed. 8 22 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 reference to "days" shall mean calendar day t s. If any time for action occurs on a weekend or legal holiday in the State of Washington, then the time period 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 written, except as expressly set forth herein and this Development Agreement supersedes all previous agreements, oral or written. HIS SECTION INTENTIONALLY LEFT BLANK 9 23 AS OF THE DATE FIRST WRITTEN ABOVE, the Parties evidence their agreement to the Terms of this Development Agreement by signing below: Attest: By: CITY: CITY OF TUKWILA, a municipal corporation By: Jinvii4ggerton •Mayor Christy O'Flaherty, City Clerk Approved As To Form: By: 24 Shelley Kerslake City Attorney DEVELOPER: South Center WA, LLC 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 , WI I NESS niy hand and official seal. Print Name: NOTARY PUBLIC in and for the State of Washington, residing at My commission expires: 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 persOniWhose 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. WI I NESS my hand and official seal. Print Name: NOTARY PUBLIC in and for he State of Washington, residing at My commission expires: 11 25 Exhibit A Exhibit B EXHIBITS: Legal Description of Property Depiction of the Property 26 12 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 27 28 0010 .5Gbb0 St 0031 10' UTIL. ESMT. Exhibit B Depiction of the Property 14820 SF 0032 78 2 5 6.5 32530 SF 0037 152.01 32537 SFk\ 0038 -)e, 9S 0 I 30 BAKER BLVD 90 a M 173.34 142.10 UTIL. ESMT. TR. 8 STRIAL PARK NO. 2 49757 SF 1.14 AC 008.5 33392 SF:r 0087 0 a/ r1 C a1 W` ct a, LLfl Z' of mi 575.27 52134 SIT 0080 33 -25 -27 6d 212237 S 4.87 AC 0075 148507 SF 3.41 AC 0090 Subject Propert 022320 ANDOVER INI PARK NO. 3G:; 14 g-25 -27 y 2 USTRIAL REF. TOY. BLA k L94-0026 04052 3 m 0 m 29 30 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: City Council FROM: Derek Speck, Economic Development Administrator DATE: March 14, 2013 SUBJECT: 223 Andover Park East Proposed Development Agreement ISSUE Attached is a proposed development agreement for 223 Andover Park East that has been revised from the version that was in the previous Council packets. This memo explains the revisions. BACKGROUND The owner of 223 Andover Park East (the former Circuit City site) has asked the City for permission to construct up to two buildings that would exceed the height and residential use zoning limits at that site. More background details are available in the staff memo that was included in the Council packet on February 25, 2013 and March 11, 2013. DISCUSSION Following are the significant revisions in the proposed development agreement: Section 4.4— The residential range now sets a minimum of 250 units and a maximum of 450 units. The developer's current concept includes approximately 350 residential units. The minimum is intended to meet the City's desire for a minimum number of residences. The maximum is intended to meet the City's desire to avoid excess density while balancing the developer's desire for flexibility. Section 4.5— Under the revised language the developer is not required to record the condominium declaration, survey and map now but only to create it and provide the City a copy. This change is intended to meet the developer's need to get construction and permanent financing since it is likely a lender would not be interested if the project must be recorded as condos. Creating the declaration, survey and map at this point does not guarantee the units will become condominiums but makes the conversion process easier and more likely. Section 4.5— The language related to the water intrusion system was removed because upon further research, staff has confirmed that State law applies the same water intrusion design and inspection standards for construction of multiunit residential buildings permitted after August 1, 2005 (RCW 64.55.005). Thus, there is no higher standard in the building codes for condominiums as compared to apartments for water intrusion. Section 4.5— The language now requires each residential unit to have a separate electric meter. This requirement is intended to balance the City's desire for the units to be convenient to 31 32 INFORMATIONAL MEMO Page 2 convert to condominiums while meeting the Developer's desire for flexibility in determining the design of the other utilities at a later date. Section 10 — The language better clarifies the original intent which is to grant the development rights only to the Developer while allowing the Developer to put the development into another form of organization such as a limited liability corporation. Condominium Standards — The Council asked questions and expressed interest in the development being constructed to condominium standards. Upon further research, staff has confirmed that Washington State does not allow building code standards to be different for condominiums as compared to apartments (RCW 63.34.050). Developers can choose to build apartments or condominiums to higher standards than are required by the building code. That is typically decided by the developer through consultation with their architect. Other than the requirement for an electric meter for each residential unit, this proposed development agreement does not require standards above the State building code so that the developer can make those decisions when they have more information later in the design process. RECOMMENDATION The Council is being asked to approve the development agreement at the March 18, 2013 Regular Meeting. ATTACHMENTS Revised proposed development agreement W: \Derek \Circuit City Site \Council Memo 032513 V3.doc