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HomeMy WebLinkAbout04-075 - Northfield Ventures LLC - Property Exchange Agreement• When recorded return to: City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 1 111 00 0 20080430002510 PAAOE00tROF 002 W0 43 00 KINGOCOUNTY14WA8 E2344021 04/30/2008 14:28 KING COUNTY, WA STAE 5s14,156.00 5785,000.00 Filed for Record at Request of Pacific NorthWest Escrow Corporation Escrow Number: P7522 Grantor. Northfield Ventures LLC, a Washington Limited Liability Company Grantee: City of Tukwila Statutory Warranty Deed 20080430002510.001 PAGE001 OF 001 THE GRANTOR Northfield Ventures LLC, a Washington Limited Liability Company for and in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION in hand paid, conveys and warrants to City of Tukwila, a municipal corporation the following described real estate, situated in the County of King, State of Washington Abbreviated Legal: Lot A King County Lot Line Adjustment No. 983059 Rec. No. 8901180986, being a portion of Lots 8 and 26-28, Block 2, First Add. To Adam's Home Tracts Tax Parcel Number(s): 0041000130 LEGAL DESCRIPTION AS PER ATTACHED EXHIBIT "A" Dated April 29, 2008 Northfield Ventures L Liability many C, a Washington Limited By: Andrew Berg, Manager STATE OF Washington } COUNTY OF SNbttOry i 514 } SS: =-c A O: per' vmisZ. I certify that I know or have satisfactory evidence that Andrew Berg i O ,5 LIO �, ',,9-09 �„s''�' the person who appeared before me, and said person acknowledged thdttl Lya 5 H 1i;G' 'she signed this iustiument and acknowledge it to be <Oiler iitkiwi TVil}Imtary act for the uses and purpo_es mentioned in this isutrament, as the managing member of Northfield Ventures LLC. FILED FOR RECORD AT THE REQUEST OF ' LandAmerica Commercial Services \\'''`N��\\\\111 ` PNNON �� 0��`SSlO4 �� .i�� = o �OTgA ,tp, Dated: April , 2008 ORIGINAL Notary Public in and for the State of Washington Residing at L41Amo d 3,21I My appointment expires: 5 VI I p9 LPB 10-05(i-1) Page 1 of 1 • • EXHIBIT"A" 20080430002510.002 THAT PORTION OF LOTS 8, 27 AND 2.8 IN BLOCK 2 OF FIRST ADDITION TO ADAM'S HOME TRACTS, AS PER PLAT RECORDED IN VOLUME 12 OF PLATS, PAGE 50, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH UNE OF SOUTH 150TH STREET AND THE EASTERLY UNE OF STATE ROAD NO. 1; THENCE NORTH 18°28'40" EAST ALONG THE EASTERLY LINE OF SAID ROAD 126.43 FEET TO THE TRUE POINT OF BEGINNING WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY UNE THEREOF; THENCE SOUTH 89°44'10" EAST ALONG SAID NORTH LINE 190.31 FEET TO A POINT ON THE EAST UNE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 00°33'50" WEST ALONG THE EAST LINE OF LOTS 27 AND 8, A DISTANCE OF 220.39 FEET; THENCE NORTH 89°44'10" WEST 114.60 FEET TO THE EAST LINE OF STATE ROAD NO. 1; THENCE ON SAID EAST LINE SOUTH 18°28'40" WEST 232 FEET TO THE TRUE POINT OF BEGINNING; AND THAT PORTION OF LOT 26 IN BLOCK 2 OF SAID PLAT, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH UNE OF SOUTH 1501}4 STREET AND THE EAST UNE OF STATE ROAD NO. 1 (HIGHWAY 99); THENCE NORTH 18°28'40" EAST, ALONG THE EASTERLY LINE OF SAID ROAD, 126.43 FEET TO POINT WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY LINE THEREOF; THENCE SOUTH 89°44'10" EAST, ALONG SAID NORTH LINE, 190.31 FEET TO A POINT ON THE EAST LINE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 00°33'50" WEST, ALONG THE EAST UNE OF LOT 27, A DISTANCE OF 55.89 FET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 00°33'50" WEST ALONG THE EAST UNE OF LOT 27, A DISTANCE OF 137,48 FEET TO THE NORTH LINE OF LOT 27; THENCE EAST 23.30 FEET ALONG THE NORTH LINE OF LOT 26 WHICH LINE IS A PROLONGATION OF THE NORTH LINE OF IAT 27; THENCE SOUTHWEST 139.06 FEET TO THE TRUE POINT OF BEGINNING; (ALSO KNOWN AS LOT A OF LOT UNE ADJUSTMENT NO. 983059, RECORDED UNDER RECORDING NO. 8901180986); TOGETHER WITH AN EASEMENT FOR INGRESS AND EGRESS GRANTED UNDER RECORDING NO. 20060822001723. SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON. • SETTLEMENT AGREEMENT THIS SETTLEMENT AGREEMENT is made and entered into as of the date of the last party signing below, by and between the City of Tukwila, a municipal corporation (hereinafter "Tukwila" or "City"), and Northfield Ventures, LLC (hereinafter "Northfield"). RECITALS A. The City owned property located at 14840 Pacific Highway South, in the City of Tukwila, King County, Washington, more fully described at Exhibit A and incorporated as if fully set forth herein ("Parcel A"). B. Northfield owned property located at 14224 Pacific Highway South in the City of Tukwila, King County, Washington, more fully described at Exhibit B and incorporated as if fully set forth herein ("Parcel B"). C. On September 17, 2004, the parties entered into a Property Exchange Agreement for the exchange of Parcels A and B ("the Contract"). A true and correct copy of the Contract is attached hereto at Exhibit C. D. The Contract required Northfield to begin construction of a new car wash on Parcel A and to vacate Parcel B within the fifteen months from the date of execution of the Contract. When these milestones were not met, a dispute arose between the parties as to whether Northfield breached the Contract and whether the City processed Northfield's development permit application for construction of a new car wash in a timely manner. These claims are now pending in King County Superior Court under Cause Number 06- 2-37028-7-KNT ("the Lawsuit"). In addition, the City filed a separate unlawful detainer action in King County Superior Court under Cause Number 08-2-08559-7KNT seeking restoration of its possession of Parcel B ("Unlawful Detainer Action"). E. Northfield and the City now desire to settle and resolve all claims relating to the Lawsuit and the Unlawful Detainer Action without further expense or delay. AGREEMENT In consideration of the mutual promises and agreements contained herein, Northfield and the City agree as follows: 1. Northfield shall: A. Take all steps necessary to transfer ownership of Parcel A, free of all liens and encumbrances, to the City on April 30, 2008 by delivering to Closing Agent an executed Statutory Warranty Deed, Excise Tax Affidavit and closing statement; and Page 1 of 6 M: WPDOCStBerg, AndKity of Tukwila\Settlement Agreement clean final 04 25 08-SCRUBBED.doc C� O4PY • • B. Take all steps necessary to vacate Parcel B on or before 5:00 PM on Friday, October 10, 2008. At its option, Northfield may remove any personal property on Parcel B; however, any personal property remaining on Parcel B after 5:00 PM on Friday, October 10, 2008 will be deemed abandoned by Northfield and thereafter deemed to be the property of the City. Northfield shall give notice to the City, as specified in Paragraph 10 herein, once it has vacated the property; and C. Stipulate that a Writ of Restitution shall issue in the Unlawful Detainer Action restoring Parcel B to the City's possession if Northfield does not vacate Parcel B on or before 5:00 PM on Friday, October 10, 2008. D. Northfield instructs the Closing Agent to pay or deliver to the City when the closing agent has for the account of Northfield the documents and funds required by this Agreement. 2. The City shall: A. Pay all costs associated with Northfield's transfer of Parcel A to the City and execute a Real Estate Tax Affidavit and Closing Statement; and .B. At the time of closing of Northfield's transfer of Parcel A to the City, the City shall pay to Northfield the sum of Five Hundred Eighty Thousand Dollars ($580,000.00 U.S.); and C. At the time of closing of Northfield's transfer of Parcel A to the City, the City shall deposit Two Hundred Seventy -Five Thousand Dollars ($275,000.00 U.S.) into an interest bearing escrow account which shall become payable to Northfield following its vacation of Parcel B pursuant to Paragraph 1.B herein. Within ten business days following the City's receipt of notice by Northfield that Parcel B has been vacated, whether as a result of the voluntary act of Northfield or execution of the Writ of Restitution, the City shall pay to Northfield by wire transfer to the Purcell & Adams Trust Account, the sum of Two Hundred Seventy -Five Thousand Dollars ($275,000.00 U.S.), plus all interest earned thereon. D. The City instructs the Closing Agent to pay or deliver to Northfield when the closing agent has for the account of the City the documents required by this Agreement. The City agrees to wire transfer to Closing Agent all funds necessary to comply with paragraphs A and B hereof. E. The Purchase Price of Parcel A is $795,000. Any additional amounts payable to Northfield shall be as additional consideration for the settlement of Northfield's claims. Page 2 of 6 M:\#WPDOCS\Berg, Andy\City of Tukwila\Settlement Agreement clean final 04 25 08•SCRUBBED.doc • • 3. Mutual Release of All Claims. Northfield and its Managing Member, Andrew Berg, on behalf of themselves and their affiliates, successors and assigns, releases and forever discharges and covenants not to sue with respect to any and all further or remaining claims, rights, demands, and causes of action, whether known or unknown, liquidated or unliquidated (including attorneys' fees and costs), which Northfield and/or Andrew Berg has, had, or could have asserted against the City, its affiliates, its past or present elected officials, officers, directors, agents, representatives, or employees, which relate to or arise from the Lawsuit. The City, on behalf of itself and its affiliates, successors and assigns, releases and forever discharges and covenants not to sue with respect to any and all further or remaining claims, rights, demands, and causes of action, whether known or unknown, liquidated or unliquidated (including attorneys' fees and costs), which the City has, had, or could have asserted against the Northfield, its affiliates, successors and assigns, which relate to or arise from the Lawsuit. This provision does not prohibit the City from seeking issuance of a Writ of Restitution in the Unlawful Detainer Action restoring Parcel B to its possession if Northfield does not vacate Parcel B pursuant to Paragraph 1.B herein. This provision does not prohibit any party from bringing a claim for breach of this Agreement. 4. Closing, This Agreement shall be closed on April 30, 2008 ("Closing") and it is agreed that Pacific Northwest Escrow Corporation ("Closing Agent") shall act as closing agent for all parties in closing this transaction. City shall pay all costs of Closing, including the escrow fee. All money received by the Closing Agent is to be deposited in a trust account pending final closing. Upon receipt of the funds and properly executed documents required by this Settlement Agreement, the closing agent is directed to record the necessary documents and complete the closing. Date of closing means the date on which all documents are recorded. Execution of a document by a party shall be approval of it. Closing Agent is authorized to correct typographical errors in the documents and any errors or omissions on the settlement statement shall be corrected and paid by, or refunded to, the appropriate party. It is understood and agreed that the execution of any document will be considered approval thereof. The Closing Agent makes no representations or warranties regarding the condition of title. The legal description has been provided to the closing agent and it is the responsibility of Northfield and the City to determine that it is a complete and accurate description. It is agreed by the parties that the closing agent shall not be Page 3 of 6 M:\#WPDOCS\Berg, Andy\City of Tukwila\Settlement Agreement clean final 04 25 08-SCRUBBED.doc • • required to search the public records and shall have no responsibility with respect to the condition of title other than to exercise reasonable care and the recording of documents as directed by this Agreement. No policy of title insurance is being issued in connection with this transaction. 5. No Admission. This Agreement is not an admission of liability or wrongdoing by any party. 6. Dismissal of Lawsuits. Promptly following the execution of this Agreement by all parties, the City shall dismiss the Lawsuit. If Northfield vacates Parcel B pursuant to Paragraph 1.B herein, then the City agrees to dismiss the Unlawful Detainer Action within ten business days following the City's verification that Parcel B has been vacated. 7. Assignment. Neither party may assign its rights or obligations under this Agreement without the written consent of the other, which shall not be unreasonably withheld. 8. Successors and Assigns. This Agreement, together with all exhibits now or hereafter made a part, shall be binding on the parties and their respective heirs, executors, administrators, successors, and assigns. 9. Entire Agreement. This Agreement represents the complete agreement between the parties with respect to the subject matter hereof. Any prior written or oral representations or agreements to the contrary are of no effect. 10. Amendment. This Agreement may not be amended or modified except by a writing, signed by the parties to be bound thereby, or signed by their respective attorneys as authorized. 11. Notices. All notices, demands, requests, and other communications required or permitted hereunder shall be in writing and shall be deemed delivered on the earlier of (i) three days after posting of registered or certified mail, addressed to the addressee at its address set forth below or at such other address as such party may have specified theretofore by notice delivered in accordance with this Section, or (ii) actual receipt by the addressee, as follows: TO CITY: City of Tukwila Attn: City Clerk 6200 Southcenter Blvd. Tukwila, WA 98188 Page 4 of 6 M:1#WPDOCS\Berg, Andy\City of Tukwila\Settlement Agreement clean final 04 25 08-SCRUBBED.doc • With a copy to: Ms. Shelley Kerslake, Esq. Kenyon Disend, PLLC 11 Front St. S. Issaquah, WA 98027 TO NORTHFIELD: c/o Andrew Berg PO Box 60057 Seattle, WA 98160 With a copy to: Mr. Douglas Purcell, Esq. Purcell & Adams, PLLC 7127 — 196th St. S.W., Suite 201 Lynnwood, WA 98036 12. Attorney and Expert Witness Fees. 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 attorneys' fees and expert witness fees, together with actual court costs, expended in such litigation. 13. Execution. This Agreement may be executed by facsimile, which shall be deemed to be an original. 14. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. Venue for any action arising out of this Agreement shall be in King County Superior Court. 15. Authority. The persons executing this Agreement on behalf of the respective parties hereby represent and warrant that they are authorized to enter into this Settlement Agreement on the terms and conditions herein stated. 16. Equal Opportunity to Participate in Drafting. The parties have had an equal opportunity to participate in the preparation of this Agreement. 17. Full Understanding; Independent Counsel. The parties each acknowledge, represent and agree that they have read this Agreement; that they fully understand the terms thereof; and that they have been fully advised by their independent legal counsel or have had the opportunity to be so advised in connection with the terms of this Agreement. Page 5 of 6 M:\#WPDOCS\Berg, Andy\City of Tukwila\Settlement Agreement clean final 04 25 08-SCRUBBED.doc • CITY OF TUKWILA Jirr� �s Haggeiy NOR - IEI VENTURES, LLC Andr-w Berg, Managrhg Member Date: 125i tO Page6of6 M:1#WPDOCS1Berg, Andy\City of Tukwila\Settlement Agreement clean final 04 25 08-SCRUBBED.doc • 111 LandAmerica Transnation May 1, 2008 City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 OUR NO.: 11284836 COMMERCIAL SERVICES Two Union Square 601 Union Street Suite 1100 Seattle, WA 98101 Phone: 206-628-2873 Fax 2C5-528-0631 Attached is your ALTA 2006 Owners Policy policy of title insurance. Please retain it for future reference with your other closing papers. Marc Wise • • OWNER'S POLICY OF TITLE INSURANCE Issued by Transnation Title Insurance Company im LandAmerica ,.. Transnation Policy/File No.: 11284836 Transnation Title Insurance Company is a member of the LandAmerica family of rn., title insura,nre underwriters Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, TRANSNATION TITLE INSURANCE COMPANY, a Nebraska corporation (the "Company") insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of. 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. 3. Unmarketable Title. 4 No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. 9. Title being vested other than as stated in Schedule A or being defective (a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 10, Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this Policy, but only to the extent provided in the Conditions. ALTA 2006 Owner's Policy Jacket Valid Only If Schedules A and B are Attached Form B1190-128 Itil LandAmerica Transnation Policy/File No: 11284836 POLICY OF TITLE INSURANCE Issued by Transnation Title Insurance Company SCHEDULE A File No.: 11284836 Address Reference: 14840 Pacific Highway South, Tukwila, WA Amount of Insurance: $795,000.00 Date of Policy: April 30, 2008 at 2:28 P.M. 1. Name of Insured: City of Tukwila, a municipal corporation 2. The estate or interest in the land described herein and which is covered by this policy is: a fee simple estate 3. Title is vested in: City of Tukwila, a municipal corporation 4. The land referred to in this policy is described as follows: In the Exhibit "A" attached hereto and made a part hereof. Transnation Title Insurance Company /1141— Authorized Signature ALTA 2006 Owner's Policy Page 1 • • Policy/File No, : 11284836 EXHIBIT "A" THAT PORTION OF LOTS 8, 27 AND 28 IN BLOCK 2 OF FIRST ADDITION TO ADAM'S HOME TRACTS, AS PER PLAT RECORDED IN VOLUME 12 OF PLATS, PAGE 50, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SOUTH 150TH STREET AND THE EASTERLY LINE OF STATE ROAD NO. 1; THENCE NORTH 18°28'40" EAST ALONG THE EASTERLY LINE OF SAID ROAD 126.43 FEET TO THE TRUE POINT OF BEGINNING WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY LINE THEREOF; THENCE SOUTH 89°44'10" EAST ALONG SAID NORTH LINE 190.31 FEET TO A POINT ON THE EAST LINE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 00°33'50" WEST ALONG THE EAST LINE OF LOTS 27 AND 8, A DISTANCE OF 220.39 FEET; THENCE NORTH 89°44'10" WEST 114.60 FEET TO THE EAST LINE OF STATE ROAD NO. 1; THENCE ON SAID EAST LINE SOUTH 18°28'40" WEST 232 FEET TO THE TRUE POINT OF BEGINNING; AND THAT PORTION OF LOT 26 IN BLOCK 2 OF SAID PLAT, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SOUTH 150TH STREET AND THE EAST LINE OF STATE ROAD NO. 1 (HIGHWAY 99); THENCE NORTH 18°28'40" EAST, ALONG THE EASTERLY LINE OF SAID ROAD, 126.43 FEET TO POINT WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY LINE THEREOF; THENCE SOUTH 89°44'10" EAST, ALONG SAID NORTH LINE, 190.31 FEET TO A POINT ON THE EAST LINE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 00°33'50" WEST, ALONG THE EAST LINE OF LOT 27, A DISTANCE OF 55.89 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 00°33'50" WEST ALONG THE EAST LINE OF LOT 27, A DISTANCE OF 137.48 FEET TO THE NORTH LINE OF LOT 27; THENCE EAST 23.30 FEET ALONG THE NORTH LINE OF LOT 26 WHICH LINE IS A PROLONGATION OF THE NORTH LINE OF LOT 27; ALTA 2006 Owner's Policy Page 2 • • File No.: 11284836 EXHIBIT "A" Continued THENCE SOUTHWEST 139.06 FEET TO THE TRUE POINT OF BEGINNING; (ALSO KNOWN AS LOT A OF LOT LINE ADJUSTMENT NO. 983059, RECORDED UNDER RECORDING NO. 8901180986); TOGETHER WITH AN EASEMENT FOR INGRESS AND EGRESS GRANTED UNDER RECORDING NO. 20060822001723. SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON. ALTA Owner's Policy (10-17-92) Page 3 • • SCHEDULE B Policy/File No.: 11284836 EXCEPTIONS FROM COVERAGE This Policy does not insure against Toss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not now payable or which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession, or claiming to be in possession, thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land, and that is not shown by the Public Records. 5. Any lien, or right to a lien, for labor, material, services or equipment, or for contributions to employee benefit plans, or liens under Workmans' Compensation Acts, not disclosed by the public records. 6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not the matters excepted under (a), (b), (c) or (d) are shown by the public records. 7. Right of use, control or regulation by the United States of America in the exercise of powers over navigation; any prohibition or limitation on the use, occupancy or improvement of the land resulting from the rights of the public or riparian owners to use any waters which may cover the land or to use any portion of the land which is now or may formerly have been covered by water. 8. Any service, installation, connection, maintenance or construction charges for sewer, water, electricity, or garbage collection or disposal, or other utilities unless disclosed as an existing lien by the public records. SPECIAL EXCEPTIONS: 1. DELETED 2. GENERAL PROPERTY TAXES AND SERVICE CHARGES, AS FOLLOWS, TOGETHER WITH INTEREST, PENALTY AND STATUTORY FORECLOSURE COSTS, IF ANY, AFTER DELINQUENCY: (1ST HALF DELINQUENT ON MAY 1; 2ND HALF DELINQUENT ON NOVEMBER 1) TAX ACCOUNT NO.: 004100 0130 YEAR BILLED PAID BALANCE 2008 $10,371.05 $5,185.53 $5,182.52 TOTAL AMOUNT DUE, NOT INCLUDING INTEREST AND PENALTY: $5,182.52. LEVY CODE: 2413 ALTA 2006 Owners Policy Page 4 • • SCHEDULE B (continued) 3. TERMS, CONDITIONS AND RESTRICTIONS, INCLUDING TERMINATION, CONTAINED IN GRANT OF ROADWAY EASEMENT TO BENEFIT SAID PREMISES RECORDED UNDER RECORDING NO. 8310170839 AND AMENDED BY INSTRUMENT RECORDED UNDER RECORDING NO. 8311070007. 4. RIGHT TO MAKE NECESSARY SLOPES FOR CUTS OR FILLS UPON THE LAND HEREIN DESCRIBED AS GRANTED TO STATE OF WASHINGTON BY DEED RECORDED UNDER RECORDING NO. 2591472. 5. MATTERS SET FORTH BY SURVEY: RECORDED: MAY 2, 2003 RECORDING NO.: 20030502900003 DISCLOSES: FENCES AND RETAINING WALL NOT CONFORMING TO BOUNDARY LINES 6. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: DOUGLAS STEINBERG AND SUSAN STEINBERG PURPOSE: INGRESS AND EGRESS AREA AFFECTED: AN AREA IN THE NORTHWEST CORNER OF SAID PREMISES RECORDED: AUGUST 22, 2006 RECORDING NO.: 20060822001723 7. TERMS AND CONDITIONS OF BENEFICIAL EASEMENTS FOR UTILITIES INCLUDING SANITARY SEWER AND STORM DRAINS OVER PROPERTIES ADJOINING ON THE NORTH, GRANTED UNDER RECORDING NUMBERS 20051028002375, 20060822001724 AND 20060822001725. 8. PENDING ACTION IN KING COUNTY: SUPERIOR COURT CAUSE NO.: 06-2-37028-7 BEING AN ACTION FOR: SPECIFIC PERFORMANCE PLAINTIFF: CITY OF TUKWILA DEFENDANT: NORTHFIELD VENTURES, LLC ATTORNEY FOR PLAINTIFF: SHELLEY MARIE KERSLAKE, PETER BRUCE BECKWITH AND JEREMY WADE CULUMBER LIS PENDENS THEREOF RECORDED ON DECEMBER 5, 2006 AS RECORDING NO. 20061205001569. END OF SCHEDULE Page 5 III OXCLUSIONS FROM COVERAGE Policy/File No : 11284836 The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1, (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; Of ,".c effoet of� y violation of these laws, ordinances, Or �C..,"lr'_iM Th? rr^ , the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage pi ovided under Covered Risk 7 or 8 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10; or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5, Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A CONDITIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "Amount of Insurance". The amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b), or decreased by Sections 11 and 12 of these Conditions. (b) "Date of Policy": The date designated as "Date of Policy" in Schedule A (c) "Entity A corporation, partnership, trust, limited liability company, or other similar legal entity. (d) "Insured": The Insured named in Schedule A. (i) The term "Insured" also includes (A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives, or next of kin; (B) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (C) successors to an Insured by its conversion to another kind of Entity; (D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by the named Insured, (2) if the grantee wholly owns the named (3) if the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly-owned by the same person or Entity, or Insured, (4) if the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes. (i) With regard to (A), (B), (C), and (D) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured. (e) "Insured Claimant": An Insured claiming loss or damage. (f) "Knowledge" or "Known": Actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title ALTA 2006 Owner's Policy Jacket Form B1190-128 (g) "Land". The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. (h) "Mortgage": Mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. (i) "Public Records": Records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (j) "Title The estate or interest described in Schedule A (k) "Unmarketable Title" Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title to be released from the obligation to purchase, lease, or lend if there is a contractual condition requiring the delivery of marketable title 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the Title, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, nnct .,-prance rn?"n vred goinct b'i this pry; tt-- constitutes the basis of IOSSor damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters insured against by this policy The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation (b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e- mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect, and copy all of these records in the custody or ALTA 2006 Owner's Policy Jacket Form B1190-128 • Policy/File No. • 11284836 control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information, or grant permission to secure reasonably necessary information from third -Irtiec ryluirrd in h. , !n governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 7. OPTIONS T3 PAY CR I LE CLAIN13, TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following additional options. (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Insurance under this policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) To pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) To pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. 8. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the lesser of (i) the Amount of Insurance; or (ii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy. (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title, as insured, (i) the Amount of Insurance shall be increased by 10%, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In addition to the extent of liability under (a) and (b), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shgIl not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition r ,11 ni,r77ir (c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consult of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY All payments under this policy, except payments made for costs, attorneys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. 11. LIABILITY NONCUMULATIVE The Amount of Insurance shall be reduced by any amount the Company pays under any policy insuring a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject, or which is executed by an Insured after Date of Policy and which is a charge or lien on the Title, and the amount so paid shall be deemed a payment to the Insured under this policy. 12. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days. 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company If requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compromise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Company's right of subrogation includes the rights of the Insured to indemnities, guaranties, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. 14. ARBITRATION Either the company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other ALTA 2006 Owner's Policy Jacket Form B1190-128 Policy/File No.: 11284836 persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbitrable matters when the Amount I"" ,. r"n nnn nnn when agreed to by both the Company ana the insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties Judgment upon the award renJered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the Company in interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy or (iv) increase the Amount of Insurance. 16. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 17. CHOICE OF LAW; FORUM (a) Choice of Law The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title that are adverse to the Insured and to interpret and enforce the terms of this policy In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. 18. NOTICES, WHERE SET Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at Consumer Affairs Department, P.O. Box 27567, Richmond, Virginia 23261-7567. • • THANK YOU. Policy/File No.: 11284836 Title insurance provides for the protection of your real estate investment. We suggest you keep this policy in a safe place where it can be readily available for future reference. If you have questions about title insurance or the coverage provided by this policy, contact the office that issued this policy or you may call or write: Transnation Title Insurance Company Consumer Affairs P.O. Box 27567 Richmond, Virginia 23261-7567 Telephone: toll free 800 446-7086 Web: www.landam.com We thank you for choosing to do business with Transnation Title Insurance Company, and look forward to meeting your future title insurance needs. Transnation Title Insurance Company is a member of the LandAmerica family of title insurance underwriters. 111,3 LandAmerica Transnation ALTA 2006 Owner's Policy Jacket Form B1190-128 • • THIS SKETCH IS PROVIDED, WITHOUT CHARGE, FOR YOUR INFORMATION. IT IS NOT INTENDED TO SHOW ALL MATTERS RELATED TO THE PROPERTY INCLUDING, BUT NOT LIMITED TO, AREA, DIMENSIONS, EASEMENTS, ENCROACHMENTS OR LOCATIONS OF BOUNDARIES. IT IS NOT A PART OF, NOR DOES IT MODIFY, THE COMMITMENT OR POLICY TO WHICH IT IS ATTACHED. THE COMPANY ASSUMES NO LIABILITY FOR ANY MATTER RELATED TO THIS SKETCH,UNLESS SUCH COVERAGE IS SPECIFICALLY PROVIDED BY THE COVERED RISKS OF THE POLICY. REFERENCE SHOULD BE MADE TO AN ACCURATE SURVEY FOR FURTHER INFORMATION. SECTION: 22 TOWNSHIP: 23N RANGE: 04E AG N-015 PROPERTY EXCHANGE AGREEMENT THIS AGREEMENT ("Agr emen ") /7-14 day of Tukwila, a municipal corporation ("City" i made and entered into as of this r' 24—/-7/ ,v , 2004 by and between the City of or "the City"), and Northfield Ventures, LLC ("Northfield"). RECITALS A. The City is the owner of certain real property commonly known as 14840 Pacific Highway South in the City of Tukwila, King County, Washington, legally described in Exhibit A attached hereto and incorporated herein by this reference ("City Property"). B. Northfield is the owner of certain real property commonly known as 14224 Pacific Highway South in the City of Tukwila, King County, Washington, legally described in Exhibit B attached hereto and incorporated herein by this reference ("Northfield Property"). C. The City has determined that the Northfield Property is necessary to its development of Tukwila Village, an urban renewal project that has been determined to be a public project. Under threat of condemnation pursuant to RCW 81.112, the City and Northfield agree that Northfield will deed the Northfield Property to the City in exchange for the City Property and payment of additional funds, the value of the City Property and the additional funds constituting just compensation for the Northfield Property. AGREEMENT The parties hereto agree as follows: 1. Recitals Incorporated. The above recitals are incorporated herein as part of the substantive terms of this Agreement. 2. Property Exchange and Consideration. Under threat of condemnation, Northfield agrees to convey the Northfield Property to the City by Statutory Warranty Deed upon Closing, as set forth in Section 13 of this Agreement. As just compensation for the Northfield Property and in consideration for Northfield's agreement to establish a new car wash facility in Tukwila, the City agrees to convey the City Property to Northfield by Statutory Warranty Deed at Closing and shall pay Northfield in accordance with Section 5 of this Agreement. 3. Tax Consequences. Neither party makes any representations or warranties, express or implied, regarding the actual tax consequences of the property exchange. 4. Operation of Existing Car Wash. The City and Northfield intend to allow Northfield to continue operating the existing car wash facility ("Existing Car Wash") F:WPPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 1 of 14 1st .fNfil� �§E13 23 2004 i • located upon the Northfield Property at its sole risk for a period up to, but not to exceed, fifteen months from the execution of this Agreement. This period may be extended by mutual agreement of the parties. In the event the new car wash facility ("the New Car Wash") is completed ahead of schedule, Northfield shall vacate the Northfield Property within ten days of completion of the New Car Wash. Northfield will indemnify the City as described in Section 10 hereof. The City and Northfield acknowledge that the right granted to Northfield by this Section is a valuable right and is consistent with providing just compensation for the Northfield Property. 5. Payments. (a) $380,000.00 shall be paid to Northfield by the City upon Closing. (b) $270,000.00 shall be paid to Northfield by the City upon issuance of the construction permit for a new car wash facility to be built by Northfield on the City Property. (c) $180,000.00 shall be paid to Northfield by the City 90 days after commencement of construction by Northfield of the new car wash facility on the City Property. 6. Time for Development of New Car Wash. The City and Northfield intend to transfer the City Property to Northfield as a location for the development and construction of the "New Car Wash" within a period not to exceed fifteen months from the date of execution of this Agreement. In the event that the New Car Wash is not under construction by such date, Northfield shall deliver title to the City Property to the City, free and clear of any liens or encumbrances arising since Closing, and Northfield shall vacate the City Property. Upon such delivery of title, Northfield shall be paid $795,000 in cash, less any monies paid by the City after Closing, provided that any monetary liens may be paid from the proceeds paid to Northfield by the City. Should the City Property not be delivered to the City free and clear of any liens or encumbrances, no payment shall be due Northfield. Such payment shall constitute, with prior payments and other consideration described herein, just compensation for the Northfield Property. 7. Condition of Title — City Property. (a) City Property Title Commitment. The City shall, as soon as practicable, cause to be furnished to Northfield a commitment for an owner's standard coverage policy of title insurance ("City Property Title Commitment") issued through a title company mutually approved by Northfield and the City ("Title Company"), describing the City Property, listing Northfield as the prospective named insured, and showing Eight Hundred Thirty Thousand Dollars ($830,000.00) as the policy amount. (b) Review of City Property Title Commitment. Northfield shall have until ten (10) days after receipt of the City Property Title Commitment in which to notify City of any objections Northfield has to any matters shown or referred to in the City Property F:\APPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 2 of 14 • Title Commitment. Except as expressly set forth herein, any exceptions or other items which are set forth in the City Property Title Commitment to which Northfield does not object within the 10 -day review period shall be deemed to be permitted exceptions ("Northfield Permitted Exceptions"). Building, zoning, subdivision or use restrictions applicable to the City Property shall be considered Northfield Permitted Exceptions. With regard to items to which Northfield objects, the following shall apply: (i) City shall have ten (10) days from receipt of Northfield's objections to notify Northfield whether it agrees to remove the unpermitted exceptions set forth in Northfield's objections; (ii) If City does not agree to remove such unpermitted exceptions, Northfield may, within ten (10) days, waive and withdraw its objections. If the City agrees to remove such objections, the City shall use all reasonable efforts to cure such objections by the date of Closing. If the City is unable to cure such objections by the date of Closing, Northfield may, as Northfield's sole remedy, waive the objections not cured and proceed to Closing or terminate this Agreement by notice to the City. 8. Condition of Title - Northfield Property. (a) Northfield Property Title Commitment. Northfield shall, at City's expense pursuant to Section 13(b)(ii)(B), as soon as practicable, cause to be furnished to City a commitment for an owner's standard coverage policy of title insurance ("Northfield Property Title Commitment") issued through the Title Company, describing the Northfield Property, listing City as the prospective named insured, and showing One Million Four Hundred Thousand Dollars ($1,400,000.00) as the policy amount. (b) Review of Northfield Property Title Commitment. City shall have until ten (10) days after receipt of the Northfield Property Title Commitment in which to notify Northfield of any objections City has to any matters shown or referred to in the Northfield Property Title Commitment. Except as expressly set forth herein, any exceptions or other items which are set forth in the Northfield Property Title Commitment to which City does not object within the 10 -day review period shall be deemed to be permitted exceptions ("City Permitted Exceptions"). Building, zoning, subdivision or use restrictions applicable to the Northfield Property shall be considered City Permitted Exceptions. Northfield's existing Frontier Bank lien shall not be considered a City Permitted Exception and Section 9(b) shall govern the removal thereof. With regard to items to which City objects, the following shall apply: (i) Northfield shall have ten (10) days from receipt of City's objections to notify the City whether it agrees to remove the unpermitted exceptions set forth in the City's objections; and F:\APPS\CIV\Tukwila\Contract\Northfeld Propery Exchange - Final.doc Page 3 of 14 • (ii) If Northfield does not agree to remove such unpermitted exceptions, the City may, within ten (10) days, waive and withdraw its objections. If Northfield agrees to remove such objections, Northfield shall use all reasonable efforts to cure such objections by the date of Closing. If Northfield is unable to cure such objections by the date of closing, City may, as City's sole remedy, waive the objections not cured and proceed to closing or terminate this Agreement by notice to Northfield. 9. Conditions Precedent. The parties' obligations under this Agreement and the effectiveness of this Agreement shall be subject to the following conditions precedent: (a) Inspection Contingency. This Agreement is conditioned on an inspection report of the City Property. Within twenty (20) days of the mutual acceptance of this Agreement, Northfield shall arrange an inspection of the City Property. The inspection report shall be prepared by a professional inspector of Northfield's choice approved by the City and at Northfield's expense. Northfield may disapprove the inspection report on the basis of any condition identified in the inspection report that the inspector recommends be corrected. This contingency shall conclusively be deemed satisfied unless, within twenty (20) days after execution hereof, City receives from Northfield notice of disapproval identifying the condition(s) contained in the inspection report to which Northfield objects, and a copy of the inspection report. If City does not agree in writing to correct the condition(s) identified by Northfield, then within three days thereafter Northfield may elect to terminate this Agreement, in which event this Agreement shall be null and void and of no further force and effect. City hereby grants to Northfield and its agents, employees, and independent contractors right of entry onto the City Property to make such soil tests and such other investigation as Northfield may deem reasonably necessary; provided, however, that such investigation shall not cause any damage to the City Property. Northfield shall hold City harmless from and against any and all liabilities incurred by Northfield by reason of damage to persons or property arising from the negligent or intentional acts or omissions of Northfield or its agents on the City Property. Furthermore, Northfield shall not permit any lien to be placed on the City Property by any person hired by Northfield for the purpose of examining, inspecting, or surveying the City Property. If any such lien or other charge of any kind is placed on the City Property, Northfield shall promptly discharge it by paying the amount claimed or posting a bond in lieu of the lien. (b) Financing Contingency. Northfield currently holds title to the Northfield Property subject to an underlying Frontier Bank loan secured by a first deed of trust. This Agreement is contingent upon Frontier Bank's acceptance of the City Property as substitute collateral on that above-mentioned loan. City shall be responsible for payment of fees charged, not to exceed $4,000.00, to Northfield by Frontier Bank as a result of said substitution of collateral. Furthermore, if Frontier Bank requires a standard lender's policy of title insurance, the City shall pay costs associated with obtaining that policy. In the event Frontier Bank is unwilling to accept the substitute collateral, this Agreement shall be null and void and of no further force and effect. F:\APPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 4 of 14 • • 10. Indemnity. During the period of time after Closing, until Northfield ceases operations of the Existing Car Wash, Northfield covenants and agrees to indemnify, defend, and hold harmless the City, its officers, agents, and employees from and against any and all claims, actions, damages, liabilities, costs and expenses, including reasonable attorneys' fees in connection with or occasioned, in whole or in part, by any act or omission arising from or out of Northfield's operation of the Existing Car Wash. With respect to the operation of the Existing Car Wash, and as to claims against the City, its officers, agents, and employees, Northfield waives its immunity under Title 51 of the Revised Code of Washington for injuries to its employees and agrees that the obligation to indemnify, defend, and hold harmless provided for in this Section extends to any claim brought by or on behalf of any employee of Northfield. The parties mutually negotiated this waiver. This indemnity provision shall not apply in the event any acts or omissions of the City were the sole cause of any such damage or injury. To the extent any of the damages referenced herein were caused by or resulted from the concurrent negligence of the City, its agents, or employees, and Northfield, its officers, agents, and employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of Northfield, its officers, agents, and employees. 11. Disclosure. (a) City Property Disclosure. Northfield acknowledges that, except as expressly set forth in this Agreement, neither City nor any agent or representative or purported agent or representative of City has made, and City is not liable for or bound in any manner by, express or implied warranties, guaranties, promises, statements, inducements, representations, or information pertaining to the City Property or any part thereof, the physical condition, title, size, zoning, thereof, the uses which can be made of the same or the fitness of any part thereof for any particular purpose or any other matter or thing with respect thereto, except that City warrants that the City Property is properly zoned for use as a car wash facility. Without limiting the foregoing, Northfield acknowledges and agrees that City is not liable for or bound by (and Northfield has not relied upon) any oral or written statements, representations, or any other information respecting the City Property or any portion thereof furnished by City or any other broker, employee, agent, consultant, or other person representing or purportedly representing City. (b) Northfield Property Disclosure. City acknowledges that, except as expressly set forth in this Agreement, neither Northfield nor any agent or representative or purported agent or representative of Northfield has made, and Northfield is not liable for or bound in any manner by, express or implied warranties, guaranties, promises, statements, inducements, representations, or information pertaining to the Northfield Property or any part thereof, the physical condition, title, size, zoning thereof, the uses which can be made of the same or the fitness of any part thereof for any particular purpose or any other matter or thing with respect thereto. Without limiting the foregoing, F•WPPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 5 of 14 • City acknowledges and agrees that Northfield is not liable for or bound by (and City has not relied upon) any oral or written statements, representations, or any other information respecting the Northfield Property or any portion thereof furnished by Northfield or any other broker, employee, agent, consultant or other person representing or purportedly representing Northfield. 12. Hazardous Materials. (a) Northfield Property Hazardous Materials. Northfield hereby represents and warrants to City that the Northfield Property is not and has not been, during the period of Northfield's ownership of the Northfield Property, used for the storage or disposal of any toxic or hazardous waste, material, or substance, except to the extent of substances used in the ordinary course of a car wash business, and that no known hazardous materials or substances exist on the Northfield Property. Northfield hereby agrees to indemnify and hold City harmless from any and all loss, damage, liability, and expense (including reasonable consultant and attorneys' fees) incurred by City arising out of or related to Northfield's breach of this Section. Northfield further agrees to submit copies of all materials currently in its possession regarding any testing of the Northfield Property for hazardous materials to City. Additionally, Northfield shall, at City's option and expense and within twenty- one (21) days of the signing of this Agreement, provide the City with a Level One Environmental Report. If such report shows any reasonable possibility of environmental contamination, Northfield shall, at City's option and expense and within forty-two (42) days of the signing of this Agreement, provide City with a Level Two Environmental Report. If the Level Two report shows any reasonable possibility of environmental contamination, all of the parties agree that City may terminate this Agreement with no penalty by written notice to all parties not later than fifty-seven (57) days after signing the Agreement. (b) City Property Hazardous Materials. Except as referenced in any reports provided by City, City hereby represents and warrants to Northfield that the City Property is not and has not been (during the period of City's ownership of the City Property) used for the storage or disposal of any toxic or hazardous waste, material, or substance, and no known hazardous materials or substances exist on the City Property. City hereby agrees to indemnify and hold Northfield harmless from any and all loss, damage, liability, and expense (including reasonable consultant and attorneys' fees) incurred by Northfield arising out of or related to City's breach of this Section. City further agrees to submit copies of all materials currently in its possession regarding any testing of the City Property for hazardous materials. Such materials shall be supplied to Northfield immediately upon signing this Agreement. City shall, at City's expense and within twenty-one (21) days of the signing of this Agreement, provide Northfield with a Level One Environmental Report. If such report shows any reasonable possibility of environmental contamination, City shall, at City's expense and within forty-two (42) days of the signing of this Agreement, provide F:\APPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 6 of 14 • • Northfield with a Level Two Environmental Report. If the Level Two report shows any reasonable possibility of environmental contamination, all of the parties agree that Northfield may terminate this Agreement with no penalty by written notice to all parties not later than fifty-seven (57) days after signing the Agreement. Additionally, City acknowledges that City has allowed contractors working on the City right-of-way adjacent to the City Property to fill the City Property with material from off site. In the event such fill is unacceptable as fill material for use on the City Property in the possession of Northfield for a car wash at the time of development, or otherwise inappropriate due to contamination, the City shall pay for any removal or other disposition. This determination will be made by a third party consultant, approved and paid for by the City. 13. Closing. (a) Time and Place for Closing. Within thirty (30) days after the date that all of the conditions precedent set forth in Section 9 above have been satisfied (or such other date as the parties may agree), the closing ("Closing") shall take place. (b) Events at Closing. (i) At Closing, City shall deliver to Northfield the following: (A) A Statutory Warranty Deed duly executed and acknowledged by City conveying the City Property to Northfield; (B) A standard coverage policy of Title Insurance issued by the Title Company conforming to the requirements of Section 8 above insuring Northfield's title in the amount of Eight Hundred Thirty Thousand Dollars ($830,000.00) and containing no exceptions other than the Northfield Permitted Exceptions; and (C) A Non -Foreign Affidavit duly executed and acknowledged by City. (ii) At Closing, Northfield shall deliver to City the following: (A) A Statutory Warranty Deed duly executed and acknowledged by Northfield conveying the Northfield Property to City; (B) A standard coverage policy of Title Insurance issued by the Title Company conforming to the requirements of Section 8 above insuring City's title in the amount of One Million Four Hundred Thousand Dollars ($1,400,000.00) and containing no exceptions other than the City Permitted Exceptions; and F:WPPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 7 of 14 • • (C) A Non -Foreign Affidavit duly executed and acknowledged by Northfield. (c) Events After Closing. (i) Within fifteen months of the date of execution of this Agreement, Northfield shall cease operation of the Existing Car Wash and vacate the Northfield Property. (ii) Payments will be made pursuant to the schedule set forth in Section 5 of this Agreement. (d) Expenses. The expenses associated with the above transactions shall be allocated among the parties as follows: (i) Escrow Fees. City shall pay all escrow fees charged by the Title Company. (ii) Attorneys' Fees. Subject to Section 16 below, each party shall pay its own attorneys' fees. (iii) Costs. Except as otherwise excluded or limited elsewhere herein, City shall pay for all transaction costs related to the property exchange, including but not limited to, premiums for the Policies of Title Insurance, Real Estate Excise Taxes, and the recording fees for the Statutory Warranty Deeds. City shall pay for all such costs together with the environmental costs. (e) Prorations. Real estate taxes, installments of current year special assessments (if and to the extent they are approved exceptions), utility charges, and other operating income or expenses applicable to the City Property and the Northfield Property shall be prorated up to and including the date of Closing, based upon the actual days involved. To the extent that the amounts of such charges, expenses, and income referred to in this Section are unavailable at the Closing date or in the event of prorations made on the basis of erroneous information or clerical errors, a readjustment of these items shall be made within thirty (30) days after Closing or as soon as practical after discovery of any erroneous information or clerical error. After Closing, City shall be responsible for all expenses related to the Northfield Property and Northfield shall be responsible for all expenses related to the City Property; provided that, Northfield shall be responsible for all expenses associated with the operation of the Existing Car Wash. City and Northfield shall, on or before Closing, furnish each other and the Title Company with all information necessary to compute the prorations provided for in this Section. 14. Signage. City agrees that it shall issue a permit to Northfield, at Northfield's option, to display a sign on the west side of the premises stating that the Northfield car wash has moved to a new location for a period of 30 days after close of the Existing Car Wash. This 30 -day period may be extended by mutual agreement. The maximum sign F:WPPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 8 of 14 • • area allowed is 50 square feet per side and a total of 100 square feet for both sides. The sign must be set back from property lines a distance at least equal to the overall height of the sign. The sign shall meet all other sign code regulations. The signage shall be constructed, maintained, and removed at Northfield's expense. 15. Default. Any party hereto shall be in default hereunder if such party shall fail to comply with any term, covenant, agreement, or obligation on its part required, within the time limits and in the manner required in this Agreement. In the event of a default hereunder, the non -defaulting party or parties shall be entitled to pursue all remedies available at law or in equity, including, but not limited to, specific performance. 16. Attorneys' Fees. If it shall be necessary for any party hereto to employ an attorney to enforce its rights pursuant to this Agreement because of the default of another party, the non -defaulting party shall be entitled to recover from the defaulting party or parties all costs, including reasonable attorneys' fees, incurred in connection with such default. 17. Brokerage Commission. Each party hereto represents and warrants that it has not dealt with or engaged any real estate broker in connection with the above transactions. Each party agrees to indemnify, defend, and hold harmless the other party from and against any claims or liability attributable to such party' s breach of the foregoing representation and warranty. 18. Notices. All notices, demands, requests, and other communications required or permitted hereunder shall be in writing and shall be deemed delivered on the earlier of (i) three days after posting of registered or certified mail, addressed to the addressee at its address set forth below or at such other address as such party may have specified theretofore by notice delivered in accordance with this Section, or (ii) actual receipt by the addressee, as follows: TO CITY: City of Tukwila Attn: City Clerk 6200 Southcenter Blvd. Tukwila, WA 98188 With a copy to: Ms. Shelley Kerslake, Esq. Kenyon Disend, PLLC 11 Front St. So. Issaquah, WA 98027 F:WPPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 9 of 14 • • TO NORTHFIELD: P.O. Box 68016 Seattle, WA 98168 With a copy to: Kokie Adams Purcell & Adams 4211 Alderwood Mall Blvd. Suite 202 Lynnwood, WA 98036 19. Governing Law; Venue. The laws of the State of Washington shall govern the validity, enforcement, and interpretation of this Agreement. Any dispute or cause of action under this Agreement shall be resolved in King County Superior Court, State of Washington. 20. Mutual Agreement. Both parties agree that this Agreement has been mutually negotiated and drafted with the advice of legal counsel and that in the event of a dispute arising out of this Agreement, neither party shall be construed as the drafting party. 21. Integration: Modification: Waiver. This Agreement constitutes the complete and final expression of the agreement of the parties with respect to the herein described transactions, and supersedes all previous contracts, agreements, and understandings of the parties, either oral or written. This Agreement cannot be modified, or any of the terms hereof waived, except by an instrument in writing (referring specifically to this Agreement) executed by the party against whom enforcement of the modification or waiver is sought. 22. Counterpart Execution. This Agreement may be executed in several counterparts, each of which shall be fully effective as an original and all of which together shall constitute one and the same instrument. 23. Invalid Provisions. If any one or more of the provisions of this Agreement, or the applicability of any such provision to a specific situation, shall be held invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provision shall not be affected thereby. 24. Binding Effect. This Agreement shall be binding upon and inure to the benefit of each party hereto, and their respective heirs, personal representatives, successors, and assigns. F:WPPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 10 of 14 • • 25. Assignment. No party may assign its rights hereunder without the written consent of the other party, which consent shall not be unreasonably withheld. For purposes of this Agreement, a party's refusal to consent to a proposed assignment shall be deemed reasonable if such assignment would cause any of the above transactions not to qualify as exchanges pursuant to Section 1031 of the Internal Revenue Code, as amended. 26. Care of Property Pending Cessation of Car Wash Facility. From the date of this Agreement until the cessation of operation as a car wash, Northfield shall continue routine maintenance of the Northfield Property, but shall not be obligated to make significant capital expenditures or improvements (except as specifically required hereunder). 27. Restrictive Covenant. City and its heirs, personal representatives, successors, and assigns agree that a restrictive covenant, in the form attached as Exhibit C, shall be recorded upon title to the Northfield Property after Closing prohibiting any car wash, or related style or type of business, to be operated on the Northfield Property. 28. Authority. City warrants that the City Council of the City has lawfully approved this Agreement and has authorized its Mayor to execute this Agreement and lawfully bind the City to its terms. Northfield warrants that its shareholders, executive officers, and directors are fully authorized to enter into this Agreement and lawfully bind Northfield to its terms. CITY OF TUKWILA Steven M. Mullet, Mayor Approved as to Form: By: i4-sst. t 44 -1 -or het gr Shelley M. Kerslake, City Attorney NORTHFIELD VENTURES, LLC: /). let By: Andrew Berg, its 1rirz, F:\APPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 11 of 14 • • EXHIBIT A City Property LEGAL DESCRIPTION: THAT PORTION OF LOTS 8, 27 AND 28 IN BLOCK 2 OF FIRST ADDITION TO ADAM'S HOME TRACTS, AS PER PLAT RECORDED IN VOLUME 12 OF PLATS, PAGE 50, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SOUTH 150TH STREET AND THE EASTERLY LINE OF STATE ROAD NO. 1; THENCE NORTH 18°28'40" EAST ALONG THE EASTERLY LINE OF SAID ROAD 126.43 FEET TO THE TRUE POINT OF BEGINNING WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY LINE THEREOF; THENCE SOUTH 89°44'10" EAST ALONG SAID NORTH LINE 190.31 FEET TO A POINT ON THE EAST LINE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 00°33'50" WEST ALONG THE EAST LINE OF LOTS 27 AND 8, A DISTANCE OF 220.39 FEET; THENCE NORTH 89°44' 10" WEST 114.60 FEET TO THE EAST LINE OF STATE ROAD NO. 1; THENCE ON SAID EAST LINE SOUTH 18°28'40" WEST 232 FEET TO THE TRUE POINT OF BEGINNING; AND THAT PORTION OF LOT 26 IN BLOCK 2 OF SAID PLAT, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SOUTH 150TH STREET AND THE EAST LINE OF STATE ROAD NO. 1 (HIGHWAY 99); THENCE NORTH 18°28'40" EAST, ALONG THE EASTERLY LINE OF SAID ROAD, 126.43 FEET TO POINT WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY LINE THEREOF; THENCE SOUTH 89°44'10" EAST, ALONG SAID NORTH LINE, 190.31 FEET TO A POINT ON THE EAST LINE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 00°33'50" WEST, ALONG THE EAST LINE OF LOT 27, A DISTANCE OF 55.89 FEET TO TH TRUE POINT OF BEGINNING; THENCE NORTH 00°33'50" WEST ALONG THE EAST LINE OF LOT 27, A DISTANCE OF 137.48 FEET TO THE NORTH LINE OF LOT 27; THENCE EAST 23.30 ALONG THE NORTH LINE OF LOT 26 WHICH LINE IS A PROLONGATION OF THE NORTH LINE OF LOT 27; F:WPPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 12 of 14 • • THENCE SOUTHWEST 139.06 FEET TO THE TRUE POINT OF BEGINNING; (ALSO KNOWN AS LOT A OF LOT LINE ADJUSTMENT NO. 983059, RECORDED UNDER RECORDING NO. 8901180986) SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. F:\APPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 13 of 14 • • EXHIBIT B Northfield Property—Legal Description PARCEL A: THAT PORTION OF THE NORTH 185.90 FEET OF THE SOUTH 430.9 FEET OF THE WEST 505 FEET OF THE EAST 1,031 FEET OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 15, TOWNSHIP 23 NORTH, RANGE 4 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON, LYING EASTERLY OF WASHINGTON STATE HIGHWAY NO. 1. PARCEL B: LOT 6, CHERRY LANE, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 48 OF PLATS, PAGE 21, IN KING COUNTY, WASHINGTON. F:\APPS\CIV\Tukwila\Contract\Northfield Propery Exchange - Final.doc Page 14 of 14