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CITY OF EDMONDS, WASHINGTON $2,050,000 Real Estate Purchase Contract Agreement Between City and Howard B. Anderson, Jr., and James Gualtieri Index of Proceedings Resolution No. 755 and Real Estate Purchase Contract Agreement . . . . . . . . . . . . . . . . . . . 1 Excerpts of the minutes of the December 8, 1992, Council meeting showing adoption of Resolution No. 755 . . . . . . . . . . . . . . . . . . . . . . . . 2 Debt Capacity Certificate . . . . . . . . . . . . . . . . . . 3 Signature Identification and No -Litigation Certificate . . . 4 Tax Exemption and Nonarbitrage Certificate . . . . . . . . . 5 IRS Form 8038-G . . . . . . . . . . . . . . . . . . . . . . . 6 Approving Legal Opinion . . . . . . . . . . . . . . . . . . 7 0062791.01 I, RHONDA J. MARCH, City Clerk of the City of Edmonds, Washington, certify that the attached copy of Resolution No. 755 is a true and correct copy of the original resolution adopted on the Sth day of December, 1992, as that resolution appears on the Minute Book of the City; and I further certify that the accompanying Real Estate Purchase Contract Agreement with Exhibits A and B are a true and correct recorded copy which was filed with the City Clerk. DATED this,/, _tday of December, 1992. Fty er o the City of Edmonds, Washington RESOLUTION NO. 755 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A REAL ESTATE PURCHASE CONTRACT AGREEMENT TO ACQUIRE PROPERTY FOR OPEN SPACE. WHEREAS, the City has entered into an Option to Purchase Real Estate Agreement authorized by the Council on July 7, 1992, and a Supplemental Agreement authorized by the Council on October 6, 1992, for the purchase of certain real property (the "Property") to be acquired for open space purposes of the City; and WHEREAS, the City now wishes to close such purchase by entering into a Real Estate Purchase Contract Agreement (the "Contract") in the form prepared by the City attorney, attached as Exhibit A and made a part hereof, more particularly describing the Property and the terms and conditions of the purchase, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council deems it to be in the best interest of the City to purchase the Property on the terms and conditions set forth in the Contract which is Exhibit A hereto, and the Mayor and City Clerk are authorized and directed to execute and deliver the Contract, subject to such changes as may be recommended by the City attorney and Bond Counsel to the City, together with all other closing documents as are reasonable and necessary to 0062665.01 carry out the purpose of this resolution. It is the intention of the Council that the principal amount of the Contract should be included, insofar as possible, in the debt capacity allowance of the City allocated to open space and park facilities. section 2. The full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Contract. The City pledges to budget and appropriate from annual regular property taxes and other revenues available to the City without a vote of the electors of the City amounts sufficient, together with other money legally available therefor, to pay the principal of and interest on the Contract as the same shall come due. Section 3. The City Finance Director is appointed registrar for the Contract and to fulfill the duties of registrar set forth in Ordinance No. 2451 of the City. The Contract may not be assigned or transferred except on the books of the registrar. Section 4. The City covenants that it will take all actions necessary to prevent amounts treated for federal income tax purposes as interest paid under Contract from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of the Property or funds of the City treated as proceeds of the Contract at any time during the term of Contract that would cause amounts treated for federal income tax purposes as interest on the Contract to be included in gross income for federal income tax purposes. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is any issuer of obligations whose arbitrage certifications may not be relied upon. 0062665.01 -2- Section 5. Designation of Contract as "Qualified Tax - Exempt obligation." The City has determined and certifies that (a) the Contract is not a "private activity bond" within the meaning of Section 141 of the Code; (b) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds) which the City and any entity subordinate to the City (including any entity which the City controls, which derives its authority to issue tax-exempt obligations from the City or which issues tax-exempt obligations on behalf of the City) will issue during the calendar year in which the Contract is executed and delivered will not exceed $10,000,000; and (c) the amount of tax- exempt obligations, including the Contract, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Contract is executed and delivered does not exceed $10,000,000. The City designates the Contract as a "qualified tax-exempt obligation" for the purposes of Section 265(b)(3) of the Code. Section 6. This resolution shall take effect immediately upon passage. RESOLVED this 8th day of December, 1992. APPROVED: f Mayor, aura M. Hall ATTEST/AUTHENTICATED: C ty Clerk, onda J. March FILED WITH THE CLERK: December 8, 1992 PASSED BY THE CITY COUNCIL: December 8, 1992 RESOLUTION NO. 755 0062665.01 -3- 209 � � R.) � EXEiIBIT ..A.. PY REAL ESTATE PURCHASE CONTRACT AGREEMENT C (0 THIS AGREEMENT entered into this day between the City of Edmonds, an optional municipal code city incorporated under the laws of the State of Washington hereinafter referred to as "Purchaser" and Howard B. Anderson, Jr., as his separate estate, and James Gualtieri, as his separate estate, hereinafter referred to as "Sellers" for the purposes and considerations as follows: 1. Description of Real_ Property_. The Purchaser agrees to purchase and the Sellers agree to sell that certain real property consisting of Parcels A and B and Sellers' reversionary interest in Parcel C all as described in Exhibit A attached hereto and incorporated herein as if set forth in full ("Property"). 2. Purchase Price and Payment Terns. The total purchase price to be paid by Purchaser shall be $2,050,000.00. Payment terms shall be as follows: A. The undivided 31/60th interest belonging to Howard B. Anderson, Jr., as his separate estate, is equal to the sum of one million fifty-nine thousand one hundred sixty-six and sixty-seven cents ($1,059,166.67). Said sum shall be paid in the following manner: (1) $500,000.00, in cash shall be paid at the time of" closing consisting of all principal. Purchaser shall be given credit for the $1,000.00 option money already paid to Howard Anderson. NO EXCISE TAX DUP) The remaining balance of $559,166.67 shall $2.00 Treasure"s bear interest at a rate of 6.25% per annum on Fs° the declining principal balance, with said balance to be paid in the following manner: (a) Ten (10) equal annual installments of l fR.A blended principal and interest with the ev first payment of principal and interest € enuty due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. B. The undivided 29/60th interest belonging to James Gualtieri, as his separate property, is equal to nine hundred ninety thousand eight hundred thirty- three dollars and thirty-three cents ($990,833.33) said sum shall be paid in the following manner: JDW& - 1 - JDW_MM2.1L0M.1705312-04-92 ORIGINAL RIG'* SAL (1) No payment at time of closing. (2) The balance of $990,833.33 shall bear interest at the rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: (a) Ten (10) equal annual installments of blended principal and interest with the first interest payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. C. Notwithstanding the foregoing, in the event the purchaser obtains the IAC matching funds that it has applied for, for this purchase, then, in said event, the entire remaining balance of principal and interest on both of the aforestated obligations shall be paid in full. D. Notwithstanding the foregoing, nothing shall prohibit the purchaser from at any time prepaying all or any portion of the principal and interest balance owing on either or both of said obligations, at purchaser's sole discretion. 3. Removal of Sellers Personal Property. Seller shall have 90 days from the date of closing to remove their business inventory and equipment and all other personal property, excluding fixtures, from the premises. 4. Closing Costs. Purchaser and Seller, Howard B. Anderson, Jr., will each pay one half of the escrow cost. The cost of title insurance (ATLA policy) shall be paid by Howard B. Anderson, Jr. from the proceeds deposited by purchaser in escrow. Title insurance shall be provided by Commonwealth Land Title Company of Snohomish County. Cost of recording of the real estate purchase contract encompassing the terms of this option agreement shall be paid by purchaser. Taxes shall be prorated as of date of closing. 5. Conveyance -conditions of Title. A. It is the intent of Sellers to sell and Purchaser to purchase fee title free and clear of all encumbrances to Parcels A and B of Exhibit A and all of Sellers' interest in Parcel C of Exhibit A. Sellers' interest in Parcel C consists of reversion rights as contained within the instrument recorded JDW/1. - 2 - JD W34662.1 L0006.1705312-04-92 under Snohomish County Auditor's file number 1045210. Said Property is being purchased for a public purpose, it being purchaser's intent to develop and maintain said Property as a public park in perpetuity. The statement of intent shall not create nor be construed as creating any right of reversion or defeasible fee in the sellers or their heirs or successors in interest. B. Title to the Property is to be free and clear of all liens, encumbrances or defects except those hereinafter identified: (1) Numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. 6. Re resentations and Warranties. A. Sellers have no knowledge of or have received no claim or notice from any governmental agency of any violation of laws, ordinances or regulations relating to the Property. B. Sellers have no knowledge of or have received no claim or notice of any government or judicial proceeding (threatened or actual) affecting the Property, except for the letter from the Washington State Department of Transportation of October 27, 1992. C. Sellers warrant that no hazardous substance or dangerous or toxic waste or other material regulated by State or Federal laws or regulations has been lawfully or unlawfully deposited upon the Property, except as allowed pursuant to the Supplemental Agreement dated as of October 2, 1992, between the parties and the November 17, 1992 letter from John D. Wallace, of Ogden Murphy Wallace, to Sellers. D. Sellers warrant that they are the owners of the Property and are authorized to sign this Option and have the legal right to sell the Property under the conditions set forth in this Agreement. 7. Conveyances -Forms of Deed. Sellers shall, as a part of the closing, execute a statutory warranty (fulfillment) deed conveying fee title to Parcels A and B as described in Exhibit A, which deed will be in the form of Exhibit B attached hereto and incorporated in full by this JDW/h - 3 - JDW34662.1U0D06.1705312-04-92 reference, and a quit claim (fulfillment) deed conveying the reversionary interest of Sellers in Parcel C as described in Exhibit A, as identified in that certain document recorded under Snohomish County Auditor's file number 1045210 which deed will be in the form of Exhibit C attached hereto and hereby incorporated in full by this reference. Said deeds shall be placed in true escrow which true escrow and collection of this contract shall be established with US Bank, Edmonds Branch, for the purpose of collection of this contract and upon completion of payment of the obligations by the Purchaser under said contract, instructions to the true escrow agent shall provide for the delivery ❑f the statutory warranty fulfillment deed and quit claim fulfillment deed to the Purchaser for recording. . 8. Possession. Sellers shall deliver possession of the Property to Purchaser at the time ❑f closing subject to the provisions of paragraph 3 above. Closing shall be performed by Commonwealth Land Title Company of Snohomish County. 9. Survival and Indemnification. A. Except as specifically provided otherwise in this Agreement, the agreements, covenants, promises, representations and warranties contained in this Agreement or contained in any documents or instruments delivered pursuant to this Agreement shall dully survive closing and delivery of all documents and instruments delivered at or in connection with closing. B. Sellers hereby agree to indemnify and hold Purchaser harmless from and against any and all losses, damages, liabilities, costs and expenses, including reasonable attorney's fees, incurred by Purchaser by reason of or arising out of the duties or liabilities of Sellers which are not specifically or expressly assumed by Purchaser by reason of the incorrectness or breach of any of Sellers' representations and warranties contained in this Agreement. 10. Specific Performance. Either party shall have the right to seek the specific performance of the enforcement of the terms and conditions of this Agreement. 11. Attorne 's Fees. If either party hereto is required to retain an attorney to bring suit to enforce any provision of this Agreement, the prevailing party in such suit shall be entitled to reasonable attorneys fees. JDW/1s - 4 JD W34662.1 U0006.17053 12-04-92 12. Notices. All notices which may be or are required or permitted to be given by either party to the other party under this Agreement shall be in writing. All notices by a party to the other party shall be delivered personally or sent by United States mail, postage prepaid, addressed to the other party at the address set forth below, or such may from time to time designate. If any notice is mailed, it shall be conclusively deemed received three (3) days following the date it is deposited in the mail (the date of mailing shall be counted as one of the three days). The postmark affixed shall be conclusive evidence of the date of mailing. Notices to be sent to: Purchaser: Sellers: City of Edmonds 1) Howard V. Anderson, Jr., Laura M. Hall, Mayor as his separate property, 250 5th Avenue N. 7419 - 200th St. S.W. Edmonds, WA 98020 Lynnwood, WA 98036 2) James Gualtieri, as his separate property, 6920 - 174th S.W. Edmonds, WA 98020 AND TO Jeannette A. Cyphers a/k/a/ Jackie Cyphers Attorney -at -Law Suite 304 Northgate Plaza Building 9709 3rd Avenue N.E. Seattle, WA 98115 13. Entire Agreement. This contract constitutes the entire agreement and understanding between Purchaser and Sellers. There are no verbal or other arrangements that modify or affect this contract. No representations or statements, oral or written, not made herein, have induced execution of this contract or have any affect upon its validity. 14. Site Cleat. The Supplemental Agreement, supplemental to the Option to Purchase Real Estate Agreement was entered into by and between Purchaser and Seller and dated as of October 2, 1992. Said agreement required the removal of certain specifically identified materials or structures and tanks from the subject Property. Sellers have provided certification that all of the thus identified items contained in paragraph I, subparagraphs A through D, of said Supplemental Agreement have been rnwns - 5 IDW34662.1 LJOOD6.1705312-04-92 fully and completely removed in accordance with all applicable State and Federal regulations. Both parties to this agreement have acknowledged that the roofing material identified in subparagraph D, of paragraph I of the Supplemental Agreement did not have to be removed by Sellers. Sellers shall provide proof of completion of its removal and disposal obligations under paragraph I, subparagraphs A through D, of the Supplemental Agreement prior to closing. DATED as of this day of December, 1992. SELLERS: HOWARD V. ANDERSON -JR., ;ward �VNnderson,Jr., as his separate estate JAMES GUALTIERI Jf,CirJ J La-C-1 L _drff. w.a - mes Gualtieri, as his separate estate STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH PURCHASER: CITY OF EDMONDS Lau M. a 1, Mayor ATTEST/AUTHENTICATED: C ty Clerk, Rhonda J. March On this � day of v4z--&� , 1992, before me personally appeared Howard Anderson, Jr., as his separate estate, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first above written. w 11 voi! ,V OKN R�� RY PUBLIC C1 :` ' a ►'''S$'a•.,r° �t7 d� y Appointment Expires: 6 V�IIn. �_�• JDwn. - 6 JDV134662.1 U0006.17053 12-04-92 STATE OF WASHINGTON SS. COUNTY OF SNOHOMISH On this day of , 1992, before me personally appeared James Gualtieri, as his separate estate, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned:. IN WITNESS WHEREOF-%V.;W'ge hereto set my hand and affixed by official seal the damwy,first ab ve written. . 0 �F' ' � Cn c �. 4 N TARY PUBLI .: pts��•� Q2 .� y Appointment Expires: qj STATE OF WASHINGTON ) ��■+i�i�■' ss. COUNTY OF SNOHOMISH ) -a— On this q - day of .,.. , 1992, before me personally appeared Mayor Laura Hall, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF■x,rave hereto set my hand and affixed by official seal the dad+•AVA FV�;*, first ve written. � ? � Y in. N ARY PUBLI 7�, : c� �<<4 Appointment Expires: v 0'••.s..• D is STATE OF WASHINGTON+,,� %Y,gSH���;►+`' COUNTY OF SNOHOMISH ) 4A On this _qday of o--' 1992, before me personally appeared Rhonda J. March, City Clerk, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first a ve written. r��iti■■��rrr,,r G° N�z y O Y PUBLIC r r ,.T�Ar y. Appointment Expires: I �'k W JDW34662.1U0006.1705312-04-92*+��� ►� �i �i ►'' _ % _ W-A (FULFILLMENT) Statutory Warranty Deed THE GRANTORS Howard V. Anderson, Jr., as his separate property and James Gualtieri, as his separate property, for and in consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and warrants to the City of Edmonds, a Washington municipal corporation, the following described real estate, situated in the County of Snohomish, State of Washington: PARCEL A• That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B: That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; NO EXCISE TAX DUE- $2.00 Treasurer's Feo mw3ar3z.iw0006.i7os3 ORIGINAL DE fq �ZO . •:� a 2 Aafflis�i flJ THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56*43' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West -along said Inner Harbor Line 175.12 feet; THENCE South 51057' East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. Subject to numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December _!y , 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by,, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on . Rec. No. DATED this day By By Howard .,An erson, Jr. STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH of �.�.-ca.✓ I y 1 L otimes Gualtieri On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free arid voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and zL�,,, , 19�k- ;e j S�� ,+i. a NOr RY . c� ftsuc 'Xj12 �h ■�FfWASV NNv JDW34732.IX/0006.17053 offic' 1 seal this bL day of T Y PUBLIC Zy Appointment Expires: IY S �ti't,11129118" � 0�'N R. `���•e+�`� I y .'���GSSIO�y'•.• LSO i Z" N 9• NARY x� + A _- PUBLIC pj`;Gy R12= . A, ►`. sr��0 �WR StO' `��� STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and 19iL. s= 0. `3: Co. -P UC . r ; .72i p f svilffi JDW34732.1X/0006.17053 offici seal this 2 day of ,ARY PUBLIC Appointment Expires: (, i s- Commitment No. 039389 EXHIBIT B 1. EASEMENT and the terms and conditions thereof as reserved by instrument. Recorded: November 17, 1952 Recording No.: 1045210 Purpose: Ingress and egress Affects: 30 feet in width, over the Easterly portion of Parcel C 2. RESERVATIONS AND OTHER MATTERS CONTAINED IN DEED Grantor: Howard V. Anderson and Mary Riley Anderson, his wife Recorded: November 17, 1952 Recording No.: 1045210 (Copy attached) 3. RIGHTS OF THE GENERAL PUBLIC to the unrestricted use of navigable waterways and the portion of the premises subject to submergence by the waterways for navigational and recreational purposes. 4. RIGHTS OF THE UNITED STATES AND THE STATE OF WASHINGTON to regulate the use or occupancy of that portion of the premises lying below the line of the mean high tide. 5. LATERAL BOUNDARY ISSUES regarding first class tidelands and ,shorelands. 6. EASEMENT and the terms and conditions thereof Purpose: Anchor and guy wire Affects: Parcel C Recorded: December 28, 1956 Recording No.: 1220021 7. AGREEMENT providing easement and party wall Between: Arthur V. Allbery and Verla L. Allbery, husband and wife And. Howard V. Anderson and Mary Anderson, husband and wife Dated: September 13, 1964 Recorded:: March 18, 1964 Recording No.: 1683284 Continued. Page 2 Commitment No. 039389 EXHIBIT B 8. RESERVATIONS CONTAINED IN DEED, whereby the grantor excepts and reserves all oils, gases, coal, ores, minerals, fossils, etc., and the right of entry for opening, developing and working mines, etc., provided that no rights shall be ' exercised until provision has been made for full payment of all damages sustained by reason of such entry; together with right of the grantor or any grantee or lessee thereof, upon paying reasonable compensation, to acquire rights of way for private railroads, skid roads, flumes, canals, water courses or other easement for transporting and moving timber, stone, minerals or other products from this or other property. Grantor: State of Washington Affects: Tidelands END OF EXHIBIT B =1, ( FULFIL LME.NT ) Quit Claim Deed THE GRANTORS Howard V. Anderson, Jr., as his separate property and James Gualtieri, as his separate property, for and in consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and quit claims to the City of Edmonds, a Washington municipal corporation, any and all interest they may have or may hereafter acquire in that certain real property, including specifically their interest in reversionary rights as identified in an instrument recorded under Snohomish County Auditor's file number 1045210 which property is situated in the county of Snohomish, State of Washington and described as follows: PARCEL C• That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin on Main Street, formerly George Street, as shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where same intersects the Westerly line of Great Northern Railway right of way; THENCE North 61008' West a distance of 98.15 feet, more or less, along the extension of Southwesterly margin of Main Street to a point of intersection with the Government meander line; THENCE South 39031' West a distance of 26.60 feet along said Government meander line; THENCE South 66008 East a distance of 99.67 feet, more or less, to a point of intersection with Westerly line of right of way of Great Northern Railway Company; THENCE North 41004' East a distance of 17.86 feet along the Westerly right of way line to the True Point of Beginning. AND ALSO the following described tidelands of the first class, fronting Government Lot 2, Section 23, Township 27 North, Range, Range 3 East, W.M.; Beginning at a point on the Northwesterly production of Southwesterly margin of Main Street, formerly George Street, shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington where same intersects Westerly line of right of way of Great Northern Railway Company; THENCE North 61008' West a distance of 98.16 feet, more or less, along extension of Southwesterly margin of Main Street.,.,t.p pint ,o;F- FOG rn a732_iw0006.noss 1) `> , ORIGINAL T`- intersection with the Government meander line and True Point of Beginning; THENCE continuing North 61008' West a distance of 310.63 feet, more or less, along extension of Southwesterly margin of Main Street to the point of intersection with the Inner Harbor Line; THENCE South 44059'3011 West a distance of 56.48 feet along said Inner Harbor Line; THENCE South 66008' East a distance of 322.62 feet to the point of intersection with the Government meander line; THENCE North 39031' East a distance of 26.60 feet along said Government meander line to True Point of Beginning. Situate in the County of Snohomish, State of Washington. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December q--, 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. DATED this By a on, Jr. STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) day of By ! ames Gualtieri On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. � GIVEN under my hand and offic _, 19��s�irrrrrrrr 00", Fi. SfJy�j r•,rf �• �a ;5ston E •ta�NOT, Nam: •� err C- ial seal this � day of f ARY PUBLIC Appointment Expires: L 1 JDW34732.1X/0006.17053 STATE OF WASHINGTON SS. COUNTY OF SNOHOMISH On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned.' GIVEN under my hand and ■ 1 g1� .rrrrrlItoII %., R. �4411Stoy Ac5' f�► B. OADrARy cn : - a - Push r � • 0+tlariRtwASHiN,, offic' seal this day of �ARY PUBLIC y Appointment Expires: Z11 2-1fr JDW34732.1X/0006.17053 I, RHONDA J. MARCH, City Clerk of the City of Edmonds, Washington, certify that the attached copy of the City Council Minutes of December 8, 1992 is a true and correct copy of the original as it appears in the Minute Book of the City. DATED this 2Z4&ay of December, 1992. ,ity er o the City of Edmonds, Washington EDMONDS CITY COUNCIL APPROVED MINUTES BUDGET WORK SESSION, DECEMBER 8, 1992 (approved by the City Council on December 15, 1992) The Budget Work Session of the Edmonds City Council was called to order at 7:00 p.m. by Mayor Laura Hall at the Library Plaza Room, 650 Main St., Edmonds. The Council Meeting was preceded by a flag salute. PRESENT STAFF Laura Hall, Mayor Art Housler, Admin. Serv. Dir. Jeff Palmer, Council President Paul Mar, Community Services Dir. Steve Dwyer, Councilmember Dan Prinz, Police Chief Dave Earling, Councilmember Buzz Buzalsky, Fire Chief Michael W. Hall, Councilmember Noel Miller, P.W. Superintendent William Kasper, Councilmember Arvilla Ohlde, Parks A Rec. Mgr. John Nordquist, Councilmember Chuck Day, Accounting Manager Tom Petruzzi, Councilmember Sherrie Gursley, Court Admin. Rachelle Eshelman, Student Representative Bob Alberts, City Engineer Scott Snyder, City Attorney Rhonda March, City Clerk Barb Mehlert, Recorder CONSENT AGENDA Council President Palmer removed items (E), (H), and (I) from the Consent Agenda. 'COUNCILMEMBER EARLING MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. THE APPROVED ITEMS ARE AS FOLLOWS: (A) ROLL CALL (B) APPROVAL OF MINUTES OF DECEMBER 1, 1992 (C) APPROVAL OF CLAIMS WARRANTS FOR WEEK OF NOVEMBER 30, 1992 AND PAYROLL WARRANTS FOR DECEMBER 5, 1992 (D) APPROVAL OF AGREEMENT WITH THOMAS AND JANIS KANE AT 641 EDMONDS WAY FOR TEMPORARY SEWER HOOKUP (F) ACCEPTANCE OF STORM DRAINAGE EASEMENTS FROM CARL R. ASKLUND, 9022 - 218TH ST. S.W., AND RONALD D. GARRETT, 9014 - 218TH ST. S.W. -f' (G) AUTHORIZATION FOR MAYOR TO EXECUTE MONTH -TO -MONTH EXTENSION OF PROPERTY USE AGREEMENT WITH �}al SEATTLE FIRST NATIONAL BANK FOR CONTINUED CITY OPERATION Councilmember Dwyer arrived at 7:01 p.m. OF FOURTH AVENUE PARKING LOT. PROPOSED ORDINANCE AMENDING DEFINITION OF CELLULAR TELEPHONE BUSINESS IN THE CITY CODE CONSISTENT WITH STATE LAW Item E on the Consent Agenda Council President Palmer asked City Attorney Scott Snyder if the future revenues that will be produced by this item can be put into a specific fund, and Mr. Snyder replied affirmatively. COUNCIL PRESIDENT PALMER MOVED, SECONDED BY COUNCILMEMBER KASPER, TO APPROVE ITEM (E) WITH THE STIPULATION THAT FUTURE REVENUES FROM THIS ITEM GO INTO THE FINANCIAL RESERVES RATHER THAN GOING DIRECTLY INTO THE GENERAL FUND. MOTION CARRIED. It was noted the City Attorney would submit a resolution to this effect, which will appear on the December 22 Consent Agenda for formal approval. AUTHORIZATION TO PURCHASE INCINERATOR IN JOINT FOR WASTEWATER TREATMENT PLANT $3,950,000 Council President Palmer asked City Engineer Bob Alberts what the "life expectancy" is of the piece of equipment is that is being replaced, and Mr. Alberts replied approximately two years. Mr. Alberts said within a year, he will probably recommend getting an additional incinerator expansion joint so it can be held in stock. COUNCIL PRESIDENT PALMER MOVED. SECONDED BY COUNCIL - MEMBER KASPER, FOR APPROVAL OF ITEM (H). MOTION CARRIED. RESOLUTION TO AUTHORIZE MAYOR TO EXECUTE REAL ESTATE PURCHASE CONTRACT AGREEMENT (Item (I) on the -- Consent Agenda Council President Palmer said he was asked by the City Clerk to pull this item in light of infor- mation recently put into Council packets regarding this item. Council President Palmer said the P ¢ 0- Council may want to take a few minutes to review the materials. COUNCILMEMBER DWYER MOVED, SECOND- ED BY COUNCILMEMBER PETRUZZI, TO RECESS FOR FOUR MINUTES TO ALLOW COUNCILMEMBERS TIME TO READ MATERIALS RELATING TO ITEM (I). MOTION CARRIED. The Council recessed at 7:04 p.m., and reconvened (: at 7:08 p.m. {� Lee Vorhees, of Foster, Pepper & Shefelman, referenced the packet of information recently distrib- rt uted to the Mayor and Council. Mr. Vorhees said City Attorney John Wallace indicated he wanted to vti� close the transaction as soon as possible, and the sellers wanted to have a legal opinion from Foster, Pepper & Shefelman to the effect that the interest on the installments paid under the contract would be exempt from Federal income taxes and that the contract is valid and authorized. As Mr. Wallace indicated he wanted to close the transaction the following day, it seemed a good time to bring the resolution before the Council this evening. Mr. Vorhees referenced the Legal Opinion from Foster, Pepper & Shefelman, which states the Real Estate Contract has been executed pursuant to the laws of the State of Washington for the purpose of acquiring certain real property for open space and park purposes. Councilmember Hall said he wanted to make sure the Contract will contain language stating the buildings currently on site will be left on site. City Attorney Scott Snyder concurred. Council President Palmer announced to members of the audience that the property the City has just purchased is better known as the "Anderson Marine" property located immediately south of the Edmonds Ferry Terminal. Council President Palmer said the City has been working for qufte some time to acquire this property s❑ it may be be used for public use. Council President Palmer said this reflects the long standing commitment of the Council to obtain waterfront property to be used for park purposes, and said it will greatly benefit the Citizens of Edmonds and enhance the Edmonds' waterfront. COUNCIL PRESIDENT PALMER MOVED, SECONDED BY COUNCILMEMBER KASPER, TO APPROVE RESOLUTION #755, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A REAL ESTATE PURCHASE CONTRACT AGREEMENT TO AC- QUIRE PROPERTY FOR OPEN SPACE. MOTION CARRIED. REPORT BY COMMUNITY TRANSIT ON TRANSPORTATION ISSUES Community Transit Representative for the City of Edmonds, Councilmember Earling, introduced Ray Lloyd of Community Transit. Councilmember Earling said Mr. Lloyd is not here as an advocate for any particular program, but is here as Community Transit's lead legislative person for Community Transit. l• tL�1.,�� Mayor Hall, recognized Mayor Roger Bergh of Mountlake Terrace in the audience, and welcomed him to �j the Council Meeting. Mr. Lloyd distributed booklets to the Mayor and Council entitled " Regional Transit System Draft Plan" and reviewed the booklet with the Mayor and Council. Mr. Lloyd said the Draft Plan address- es the needs for Snohomish County which tries to maintain Snohomish County's control over their own destiny. Mr. Lloyd said a final System Plan will be presented to the County Councils in Febru- ary, and by April of 1993, the Snohomish County Council will decide whether Snohomish County will opt into our out of the System Plan. Mr. Lloyd said if the County Council decides to opt in, in the Fall of 1993, the citizens within the entire regional transit department boundary will cast a vote. If the voters of Snohomish County say no, but are overwhelmed by voters of Pierce County, Snohomish County would be in. Conversely, if Snohomish County opts out, a good opportunity could be missed. Mr. Lloyd said it is estimated that Community Transit, over a 20 year time period, will grow from 190 busses to approximately 350 busses. If the project goes through, that number will escalate to approximately 500 busses. Mr. Lloyd discussed the specificd of the Regional Transit System Draft Plan with the Mayor and Council. Councilmember Kasper expressed concern that there seems to be a lot of things that will not be available to the voter including tax structures. Councilmember Nordquist said he invited Mountlake Terrace Mayor Roger Bergh to the meeting, and asked Mayor Bergh if he would like to step forward to give his views on the topic. CITY COUNCIL APPROVED MINUTES Page 2 December 8, 1992 Mountlake Terrace Mayor Bergh, 21717 48th Ave. West, Mountlake Terrace, said he also represents the City of Edmonds, as well as the other 17 cities in Snohomish County on the Puget Sound Region- al Council. Mayor Berg said the City of Mountlake Terrace reviewed the alternatives listed in the Draft Plan and opted not to support the 1-5 alignment. Assuming the high capacity transit does come up 1-5 as far as Northgate, Mayor Berg said he wants to take a serious look at having it swing over Roosevelt Way to Highway 99 at approximately 145th and continue up Highway 99 until it gets to approximately to 220th. At this point, Mayor Berg said the City of Mountlake Terrace may want to put a stop station there which would traverse over to Lynnwood's Park and Ride lot. Mayor Berg made it clear' that no one in the City of Mountlake Terrace would like to see the Interurban used south of 220th, and said he feels the City of Edmonds shares the same view. Mayor Bergh said he thinks the two cities could work at and benefit from a Highway 99 alignment. Council President Palmer asked Mayor Bergh if one of the reasons why the City of Mountlake Ter- race does not support an 1-5 alignment is because of the density requirements that would have to be in place around the stations. Mayor Bergh said it is a combination of many reasons and said it seems to him that Snohomish County should determine where density is going to be first and put transit there, but said that is not being done. Councilmember Earling said the reason he invited Mr. Lloyd to the meeting is to update the Mayor and Council on transportation issues. Councilmember Earling said he would like to to receive direction from the Council as to their desires regarding the projects. Councilmember Earling referenced the letter he sent to the JRCP which addressed the City's displeasure of using the Interurban. Mr. Lloyd noted the process is moving ahead rather quickly without some of the basic information being included. Mr. Lloyd sais much more information will be coming forward which will be shared with cities throughout Snohomish County. Councilmember Dwyer asked if the configuration that shows the project on Highway 99 would be more likely to increase or decrease tax configurations on Highway 99. Mr. Lloyd said that his experi- ence shows it be an initial negative impact, however, noted in the long run it would probably prove positive. PROPOSED ORDINANCE ISSUING WATER AND SEWER REVENUE BONDS FOR UPGRADING/ EXPANDING THE SYSTEM, AND C057 OF THE PUBLIC WORKS MAINTENANCE FACILITY Item 3 on the Agenda COUNCIL PRESIDENT PALMER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO COMBINE ITEMS 3, 4, and 5. MOTION CARRIED. PROPOSED ORDINANCE ORDINANCE ISSUING WATER AND SEWER REVENUE BONDS FOR UPGRADINGJEXPANDING THE SYSTEM, AND COST OF THE PUBLIC WORKS MAINTENANCE FACILITY Item 4 on the Agenda). PROPOSED ORDINANCE REFUNDING EXISTING WATER AND SEWER REVENUE BONDS Item 5 on the Agenda) Art Housler, Administrative Services Director, said Dick Ehlers, Vice President of Seattle North- west Securities will present the offer to purchase the bonds and explain the justification of the offer: Mr. Housler said Bob Yeasting of Yeastings and Associates, will provide his recommendation on whether to accept or reject the offer. Lee Vorhees, of Foster, Pepper & Shefelman will provide vL �'� the completed ordinance for Council approval, if accepted. Dick Ehlers distributed a letter to Mayor and Councilmembers which contained information on the L-�7 Bonds. Mr. Ehlers said he has completed the rating and marketing process for the bond issues. Mr. Ehlers said the issues will raise new capital to acquire or construct a Public Works facility and make a required payment to Lynnwood for capacity in their wastewater treatment 'Facility. The Water and Sewer bonds will also refund callable 1983 and 1988 Water and Sewer Revenue Bonds in order to obtain interest savings. Mr. Ehlers reported the General Obligation Bonds have a Bond Rating of Al and the Revenue Bonds have a rating of "A". As a result of the City issuing the bonds, the City will be able to save $640,732 in Future Value Savings, $466,591 in Present Value Savings, and 5.18% Present Value as percentage of bonds refunded. Mr. Ehlers noted the average annual savings from 1993 - 2000 is $43,210 and $32,178 from 2001 - 2008. Bob Yeastings, of Yeasting & Hughes Associates, said the municipal bond market has processed more bonds in the first 11 months of 1992 than in any previous full year. Mr. Yeastings distributed materials to the Council which contained information including comparison of recent bonds sales from other Cities, a Water and Sewer District, and a School District. CITY COUNCIL APPROVED MINUTES Page 3 December 8, 1992 Regarding the Limited Tax General Obligation Bonds, Mr. Yeastings said the G.O. issue has been established with approximately equal annual debt payments over 20 years. This will provide a reasonably low annual payment burden at a relatively low interest rate. Regarding the Water & Sewer Revenue and Refunding Bonds, Mr. Yeastings said the combined refund- ing and the $3,505,000 new money issue has been split into two parts, with one part to be closed in 1992, and the other in 1993 which will keep the City's total debt issuance in each year below the $10,000,000 threshold established by the U.S. Treasury for making these bonds "bank quali- fied", with a resulting lower interest rate. Mr. Yeasting said the lower interest rate is criti- cal in bringing the refunding savings up to an acceptable level. The new money portion of this issue, for the Lynnwood Treatment Plant and Public Works Building, has been set to mature with level debt payments over a 20 year period. The refunding portion has been established to provide approximately equal annual savings of about $38,000 over the remain- ing 16 year lift of the 1988 bonds. Mr. Yeastings recommended the City accept the purchase offer of Seattle Northwest Securities for the purchase of these Bonds. Mr. Yeasting said in his opinion, they have done an excellent job of bringing this issue to market. Councilmember Petruzzi reiterated the fact that the City, thus the taxpayers, will be saving an approximate $43,210 in average annual savings and as a result of the refunding, amounts to $466,591 in Present Value Savings, and $640,000 Future Value Savings. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO ADOPT ORDINANCE 2903 ISSUING WATER AND SEWER REVENUE BONDS FOR THE UPGRADING/EXPANDING THE SYSTEM, AND COST OF THE PUBLIC WORKS MAINTENANCE FACILITY. MOTION CARRIED. COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCILMEMBER EARLING, TO ADOPT ORDINANCE 2904 REFUND- ING EXISTING WATER AND SEWER REVENUE BONDS. MOTION CARRIED. COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER KASPER, TO ADOPT ORDINANCE 2905 ISSUING GENERAL OBLIGATION BONDS FOR A SHARE OF THE COST OF PUBLIC WORKS MAINTENANCE FACILITY. The original ordinances were submitted to City Clerk Rhonda March. At 8:36 a.m, the Mayor and Council recessed for a ten minute break and reconvened in Council Chambers at 8:46 p.m. WORK SESSION ON 1993 BUDGET Mayor Hall said Council President Palmer will be conducting the Budget Work Session. �G� 3 Council President Palmer noted the Council has now received a Revised Preliminary 1993 Budget, and discussion amongst Councilmembers regarding the Revised Preliminary Budget proceeded. b Councilmember Dwyer suggested that the Council establish priority for the 1993: 1) What services �t in the budget does the Council feel to be more important than others, and 2) Councilmember Dwyer said the Council has never discussed the amount of reserves that the Council would like to have in the budget in terms of a percentage, and feels that should be discussed. Councilmember Dwyer said these two items are especially important in light of the Council's direction to revise the 1993 Preliminary Budget using a $12.7 million projected revenue figures versus the $13.381 pro- jected revenue figure first presented by the Mayor. Councilmember Dwyer suggested the Council alter the description of Fund 006, which is the Emergen- cy Financial Fund to delete the references to Federal Funding being decreased. Councilmember Dwyer said this was originally put in when revenue sharing was disappearing, and should now be changed. Councilmember Dywer said he would prefer the description of the fund to state that it is a true reserve fund, a fund that if the City finds itself in an economic emergency as a result of revenues that do not come in as projected. Councilmember Dwyer said he would like to see the Council Contingency Fund treated as a true Contingency Fund, and less ❑f a reserve fund. Council - member Dwyer said he would like these two funds equal a level of 7% ❑f the General Fund Budget, with 4% being in the 006 Financial Reserve Fund and 3% in the Council Contingency Fund. Councilmember Kasper asked Councilmember Dwyer what the basis of the 7% split between the two funds is. Councilmember Dwyer said it is his desire to have more of a reserve in the Council Contingency Fund, however it could be split in a different way, just so the Contingency Fund had a greater share of the percentage. CITY COUNCIL APPROVED MINUTES Page 4 December 8, 1992 Councilmember Hall asked what the effect of Councilmember Dwyer's proposal would have on the balance of the two funds. Councilmember Dwyer said it would increase the amount that is there by $130,000 to $140,000. Councilmember Hall said he is opposed to increasing the City's reserve funds at the expense of City services. Councilmember Petruzzi said he concerned that the Mayor's Revised Preliminary Budget came back to the Council with recommendations to completely dissolve the Volunteer Firefighter program, as well as reduce the Fire Equipment Reserve Fund. Councilmember Petruzzi said he could not support reductions in these areas. Councilmember Petruzzi said the Volunteer Firefighters provide a great service to the City at minimal cost, and noted if the City does not put money in the Fire Equip- ment Reserve Fund, the City will have many problems in the future. Councilmember Petruzzi said he would like to see the Council put $50,000 into the Fire Equipment Reserve Fund, as well as restor- ing the Volunteer Firefighter program. Councilmember Earling said he would like to hear more on Councilmember Dwyer's proposal to in- creased the reserves to 7%. Councilmember Dwyer said if the City has money that is available to be held in reserves in the General Fund, and thus have more flexibility with the money, that is where the money should be rather than being held in an earmarked fund. Councilmember Dwyer said on the other hand, if there is a restricted fund, such as Fund 111 that has an anticipated ending cash balance of over $300,000, there is no reason to transfer $210,000 General Fund monies into that Fund simply to increase the cash balance. Councilmember Dwyer said the Council has to ascertain whether the transfer should take place at all, and what the City should do with the approximate $100,000 of money in the 111 Fund that is neither restricted and is General Fund money capable of being backed out and held in General Fund Reserves rather than the 111 Fund. Councilmember Dwyer said if the Council is willing to rethink the policy of simply placing money in the 111 Fund when there are no plans to spend it, then there is quite a bit the Council can do in terms of restoring programs or personnel cuts that were recommended in the Revised Preliminary Budget. Council President Palmer said before the Council discusses where the money should lie, he would like to redirect the discussion back to what the Council wants to see in the 1993 Budget. Councilmember Kasper said the former Community Services Director must have had specific reasons for the transfers to the 111 Fund and feels the fund should not be stripped down. Councilmember Kasper said there are many street projects that need to be accomplished. Councilmember Earling said it concerns him that over the last few years, the City has used approx- imately $800,000 in cash to balance the budget. Councilmember Earling said at some point, the City has got to admit that by drawing a revenue line higher, the City doesn't get more cash. Councilmember Earling said the City has to generate more revenue if it is going to continue to spend more money. Councilmember Nordquist said when revenues increase, money is not returned to where it was origi- nally taken from during bad economic times. Councilmember Nordquist said it is fine if the City wants to use certain funds during economic difficulties, however, stated a mechanism needs to be in place whereby those funds will be be built up again. Council President Palmer said a problem over the past few years is that projected revenues and expenditures have not always been realistic. Council President Palmer referenced the 1991 Pro- posed Budget and what was recommended as a projected revenue figure. At that time, the Council didn't accept it and reduced the budget by $365,000. In 1992, the Budget was reduced by the City Council by approximately $1 million dollars. Council President Palmer said if that had not been done, the City would be in a terrible financial situation. Council President Palmer said the Council has historically been good at projecting actual revenues. Council President Palmer said the Council sent back the 1993 Preliminary Budget because the Coun- cil did not accept the projected revenue figure. Council President Palmer said when the revised Preliminary Budget came back to the Council from the Administration utilizing the $12.7 million projected revenue figure mandated by the Council, across the board cuts of G% were recommended by the Administration. Council President Palmer said he does not agree with this as the best philoso- phy to use when making cuts throughout the City, as it assumes parity from the start and may not be fair from department to department. Council President Palmer said the Preliminary Budget nor the revised Preliminary Budget included monies for Community Requests. Council President Palmer said there was also no money designated to implement the Americans with Disability Act. Council President Palmer said when the last -revision to the Budget came from the Administration, it recom- mended that items such as the Volunteer Firefighter Program and Police Cadets be eliminated. Council President Palmer said as these were the priorities of the Mayor and her Administration through their budgetary process, the Council now needs to focus on its own priorities. Council President Palmer agrees with Councilmember Petruzzi that the Volunteer Firefighter pro- gram should not be abolished. CITY COUNCIL APPROVED MINUTES Page 5 December 8, 1992 Mayor Hall referenced a petition to Edmonds City Council from many Edmonds citizens asking for restoration of the Volunteer Firefighters, as well as restoring Fire Equipment Reserves and Po- lice Reserves. }J2t As Councilmembers agreed that the Volunteer Firefighter program should be restored, COUNCILMEMBER PROGRAM is PETRUZZI MOVED, SECONDED BY COUNCILMEMBER HALL, TO FULLY FUND THE VOLUNTEER FIRE FIGHTER IN THE AMOUNT OF $17,600. MOTION CARRIED COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCILMEMBER KASPER, TO PUT $50,000 INTO THE FIRE EQUIPMENT RESERVE FUND. MOTION CARRIED. Councilmember Petruzzi noted this would include monies {� for replacing ladders. ti COUNCILMEMBER HALL MOVED, SECONDED BY COUNCILMEMBER EARLING, TO RESTORE THE CHAPLAIN POSITION IN THE AMOUNT OF $8631. MOTION CARRIED. COUNCIL PRESIDENT PALMER MOVED, SECONDED COUNCILMEMBER DWYER, TO PARTIALLY RESTORE PUBLICATION OF CL�J COUNCIL AGENDAS IN THE AMOUNT OF $10,000. MOTION CARRIED with Councilmember Kasper voting no. COUNCILMEMBER HALL MOVED, SECONDED BY COUNCILMEMBER KASPER, TO RESTORE, THEREBY FULLY FUNDING THE J POLICE RESERVE LINE ITEM IN THE AMOUNT OF $24,ODO. MOTION CARRIED with Councilmember Earling voting no. As a procedural matter, COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER HALL, TO EXTEND THE MEETING TO 10:30. MOTION CARRIED. COUNCILMEMBER HALL MOVED, SECONDED BY COUNCILMEMBER KASPER, TO RESTORE, THEREBY FULLY FUNDING THE 11 PARKING ENFORCEMENT POSITION IN THE AMOUNT OF $34,890. MOTION CARRIED with Council President Palmer voting no. N Councilmember Earling referenced the amount of money the Council is putting back into the budget. Councilmember Earling said the line has to be drawn, as he is not comfortable with the amount of monies being restored. Councilmember Earling said his pain threshold has been reached. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO RESTORE, THEREBY FULLY FUNDING THE "SUPPLIES" LINE ITEM FOR THE MUNICIPAL COURT IN THE AMOUNT OF $2500. MOTION FAILED with Councilmember Nordquist and Councilmember Hall voting yes, and Councilmember Earling, Coun- 1L, cilmember Petruzzi, Council President Palmer, Councilmember Dwyer, Councilmember Kasper voting no. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO RESTORE, THEREBY FULLY FUND THE "MAINTENANCE" LINE ITEM UNDER "COURT" IN THE AMOUNT OF $730. MOTION CARRIED WITH Councilmem- j ber Earling voting no. ✓ COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO RESTORE, THEREBY FULLY FUNDING THE "WITNESS" LINE ITEM UNDER "COURT" IN THE AMOUNT OF $1500. MOTION CARRIED with Council President Palmer voting no. As there was no money budgeted for Cable TV negotiations, COUNCILMEMBER DWYER MOVED, SECONDED BY ��L COUNCILMEMBER HALL, TO BUDGET $10,000 FOR CABLE TV NEGOTIATIONS. MOTION CARRIED with Councilmem- � G C �! ber Kasper voting no. COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCILMEMBER HALL, TO REDUCE THE TRANSFER TO THE 111 CITY COUNCIL. FUND BY $157,351 TO FUND THE BUDGET LINE ITEMS RESTORATION DECISIONS MADE BY THE fbLN D MOTION CARRIED. L COUNCILMEMBER DWYER MOVED THE CITY COUNCIL NOT MAKE THE TRANSFER TO THE 111 FUND AND INSTEAD TRANSFER THE BALANCE TO THE 006 FUND WHICH WOULD BE $52,649. MOTION DIES for lack of second. COMMUNITY FUNDING REQUESTS COUNCIL PRESIDENT PALMER MOVED, SECONDED BY COUNCILMEMBER HALL, TO FUND $30,000 TO THE EDMONDS he be interested in reduc- VISITORS BUREAU. Under discussion, Councilmember Nordquist said would to $20,000 so that they could receive necessary funds, and other requests could be ing the amount filled as well. Councilmember Petruzzi discussed the benefits the E.V.B. provides the City and feels the $30,000 is not out of line. As Council President Palmer wanted to reword his motion, he withdrew his motion. The seconder agreed. COUNCIL PRESIDENT PALMER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO FUND $30,000 TO THE AND $2500 TO THE SNOHOMISH COUNTY ARTS COUNCIL r% ---���`� EDMONDS VISITORS BUREAU, $1500 TO THE SISTER CITY, FROM THE HOTEL/MOTEL FUND. MOTION CARRIED with Councilmember Kasper voting no. � Councilmember Kasper did not agree with the level of funding to the Edmonds Visitors bureau, and further business before -,L6�1 C his vote reflects that he voted no for that reason alone. As there was no the meeting at 10:30CITY the Mayor and Council, Mayor Hall adjourned COUNCIL APPROVED MINUTES Page 6 December 8, 1992 REVISED AGENDA EDMONDS CITY COUNCIL PLAZA MEETING ROOM - LIBRARY BUILDING 7:00 - 10:00 p.m. DECEMBER 8, 1992 (COUNCIL COMMITTEES CANCELLED DUE TO BUDGET WORK SESSION) CALL TO ORDER - 7:00 P.M. FLAG SALUTE 1. (5 Min.) CONSENT AGENDA (A) ROLL CALL (B) APPROVAL OF MINUTES OF DECEMBER 1, 1992 (C) APPROVAL OF CLAIMS WARRANTS FOR WEEK OF NOVEMBER 30, 1992, AND PAYROLL WARRANTS FOR DECEMBER 5, 1992 (D) APPROVAL OF AGREEMENT WITH THOMAS AND JANIS KANE AT 641 EDMONDS WAY FOR TEMPORARY SEWER HOOKUP (E) PROPOSED ORDINANCE AMENDING DEFINITION OF CELLULAR TELEPHONE BUSINESS IN THE CITY CODE CONSISTENT WITH STATE LAW (F) ACCEPTANCE OF STORM DRAINAGE EASEMENTS FROM CARL R. ASKLUND, 9022 - 218TH ST. S.W., AND RONALD D. GARRETT, 9014 - 218TH ST. S.W. (G) AUTHORIZATION FOR MAYOR TO EXECUTE MONTH -TO -MONTH EXTENSION OF PROPERTY USE AGREEMENT WITH SEATTLE FIRST NATIONAL BANK FOR CONTINUED CITY OPERATION OF FOURTH AVENUE PARKING LOT (H) AUTHORIZATION TO PURCHASE INCINERATOR EXPANSION JOINT FOR WASTEWATER TREATMENT PLANT ($3,950.00) (1) RESOLUTION TO AUTHORIZE MAYOR TO EXECUTE REAL ESTATE PURCHASE CONTRACT AGREEMENT 2. (25 Min.) REPORT BY COMMUNITY TRANSIT ON TRANSPORTATION ISSUES 3. (40 Min.) PROPOSED ORDINANCE ISSUING WATER AND SEWER REVENUE BONDS FOR UPGRADING/EXPANDING THE SYSTEM, AND COST OF THE PUBLIC WORKS MAINTENANCE FACILITY 4. (10 Min.) PROPOSED ORDINANCE ISSUING GENERAL OBLIGATION BONDS FOR A SHARE OF THE COST OF PUBLIC WORKS MAINTENANCE FACILITY S. (10 Min.) PROPOSED ORDINANCE REFUNDING EXISTING WATER AND SEWER REVENUE BONDS 6. (90 Min.) WORK SESSION ON 1993 BUDGET THE PUBLIC IS INVITED TO ATTEND - PARKING AND MEETING ROOMS ARE ACCESSIBLE FOR THE DISABLED (An Interpreter for the hearing Impaired Is available with 24 hours advance notice to the City Clerk at 771-0245) E CITY OF EDMONDS, WASHINGTON Value of taxable property in City: ASSETS• Cash in General Obligation Bond Fund(s): Uncollected Taxes: G. O. Bond Fund(s) 1992 1991 1990 1989 1988 1987 Total General Fund 1991 1990 1989 1988 1987 Total TOTAL ASSETS LIABILITIES: 33.975.27 12,667.97 3.067.70 152.94 397.19 Outstanding General Obligation Bonds Voted Bonds (General Purposes) -0- Voted Bonds (Utility Purposes) -0- Voted Bonds (Parks & Open Spaces) -0- Nonvoted Bonds 2,650,000 Total 0064791.01 12,128,997,666 N/A N/A 0,E61 .07 2,650,000 s vj Outstanding General Fund Warrants (Interest Bearing) Outstanding Executory Conditional Sales Contracts Outstanding Lease -Purchase Contracts Miscellaneous Liabilities, if any. Description: TOTAL LIABILITIES -0- -0- $2,500.000 -0- $4,565.000 I certify that the above data is taken from the official records of the City of Edmonds, Washington, and that it is, to the best of my knowledge an the information available to me, true and complete as '� 1992. Financ erector City of Edmonds, Washington 0062791.01 -2- SIGNATURE IDENTIFICATION AND NO -LITIGATION CERTIFICATE We, LAURA M. HALL and RHONDA J. MARCH, jointly and severally certify that we are respectively Mayor and City Clerk of the City of Edmonds, Washington (the "City"), and have been at all times since January 7, 1992, and August 16, 1991, respectively. We further certify that we have executed a $2,050,000 Real Estate Purchase Contract Agreement by and between the City and Howard B. Anderson, Jr., and James Gualtieri, dated December 9, 1992 (the "Contract"), for the purchase of real property located in Snohomish County, Washington. We further certify that no litigation of any nature is now pending or, to our knowledge, threatened, seeking to restrain or enjoin the execution and delivery of the Contract or the levy and collection of taxes to pay the principal and interest, or in any manner questioning the proceedings and authority under which the Contract is executed and delivered or the validity of the Contract thereunder; that neither the corporate existence or boundaries of the City nor the title of the present officers to their respective offices is being contested; and that no authority or proceeding for the execution and delivery of the Contract has been repealed, revoked or rescinded. SIGNED this 9'#day of A6, 1992. LAURA HALL,gay-or DNDA J. CH, City Clerk 0062791.01 I CERTIFY that I am of the f 4V 0- and that I am personally acquainted with LAURA M. HALL and RHONDA J. MARCH, and that I know that they are now and were on the date of the execution and delivery of the $2, 050,000 Real Estate Purchase Contract Agreement (the "Contract") between the City of Edmonds, Washington (the "City"), and Howard B. Anderson, Jr., and James Gualtieri, and the signing of the Signature Identification and No -Litigation Certificate to which this certificate is attached, the duly acting Mayor and City Clerk, respectively, of the City. I do further identify the signatures of LAURA M. HALL and RHONDA J. MARCH as Mayor and City Clerk, respectively, of the City on the Contract and the certificate attached as being in all respects genuine. DATED at Edmonds, Washington, this 9th day of December, 1992. 0062791.01 TAX EXEMPTION AND NONARBITRAGE CERTIFICATE OF LAURA M. HALL CONCERNING $2,050,000 REAL ESTATE CONTRACT OF THE CITY OF EDMONDS, WASHINGTON I, LAURA M. HALL, on behalf of the City of Edmonds, Washington (the "City"), certify as follows: 1. General. 1.1 Responsible Officer. I am the Mayor of the City and, as such, am an officer of the City responsible for entering into the City's $2,050,000 Real Estate Purchase Contract Agreement (the "Contract"), dated, delivered and paid for on the same date as the date of this certificate (the "date of issue"). 1.2 Purpose of Certificate. This certificate is executed to establish the facts, estimates and circumstances in existence on the date of issue and the reasonable expectations of the City on the date of issue as to future events in connection with the Contract for the purposes of the applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable Treasury Regulations under Sections 103, 148, 149 and 150 of the Code. 1.3 Reasonable Basis for Expectations. To the best of my knowledge, information and belief, this certificate accurately summarizes the facts, estimates and circumstances in existence on the date of issue, and the expectations of the City on the date of issue about future events in connection with the Contract are reasonable. The City has not been notified of any listing or proposed listing of the City by the Internal Revenue Service as an issuer that may not certify its bonds or other obligations. 2. Purpose of Entering into the Contract. 2.1 Parties to the Contract. The Contract is between the City and Howard B. Anderson, Jr., and James Gualtieri (collectively, the "Sellers"). 2.2 Governmental Purpose. The City is a local government unit of the State of Washington, and the Contract is being executed and delivered for the purpose of purchasing real property located in the City to be used for open space purposes (the "Property") on an installment basis over a 10-year term, all as provided in Resolution No. 755 of the City (the "Resolution"). 2.3 No Impermissible Private Business Use. There will be no proceeds of the Contract used for any private business use, nor will the Property be used for any private business use. 0062780.01 -1- 3. N❑ Sale of Property Expected. The Property is not expected to be sold or otherwise disposed of in whole or in part prior to maturity of the Contract other than to dispose of any portion of the Property which becomes inadequate, obsolete, worn-out, unfit or no longer necessary or useful to the operation of the Property. 4. Payment of Contract. 4.1 Source of Payment. The Contract is a limited tax general obligation of the City. Installments of principal and interest are payable from the proceeds of property taxes levied against all of the taxable property located within the City and other funds available therefor. Principal and interest payments will be made from City funds budgeted annually for that purpose to be paid out of the General Fund of the City. Those budgeted funds will be spent on debt service on the Contract within 13 months of their allocation by the City to that purpose in the City's budget. No amount of the City's funds greater than the annual debt service on the Contract is expected to be used to pay principal of or interest on the Contract, and amounts allocated to that purpose will be spent entirely on such debt service at least once a year. 4.2 Absence of other Sinking Funds. The City has not created or established and does not expect to create or establish any reserve fund, sinking fund or other similar fund which is reasonably expected to be used directly or indirectly to pay debt service on the Contract or with respect to which there is reasonable assurance that money will be available in that fund to pay debt service on the Contract even if the City were to encounter financial difficulties. 5. Expenditure of Investment Income. Since there will be no proceeds from the execution and delivery of the Contract, there will be no "bond proceeds" to be invested. The Property is not a nonpurpose investment. Except to the extent earnings on the funds of the City budgeted for payment of debt service on the Contract constitute investment earnings, there will be no investment of City "non -bond proceeds" funds expected to be used to pay principal of and interest on the Contract. Those investment earnings will be commingled with other"non-bond proceeds" funds of the City within one year of their receipt. 6. Exception From Arbitrage Rebate.Requirements. There will be no nonpurpose investments acquired with proceeds of the Contract subject to arbitrage rebate requirements. 0062780.01 -2- 7. Contract Meets Other Arbitrage Requirements. 7.1 No Other Governmental Obligations Part of This Issue. There are no other obligations of the City which are being issued at substantially the same time as the Contract pursuant to a common plan of financing and which will be paid (or have substantially the same claim to be paid) out of substantially the same source of funds. 7.2 N❑ Replacement of Funds Invested in Higher Yieldin Investments. No portion of the proceeds of the Contract will be used directly or indirectly to replace funds of the City invested in higher yielding investments. 7.3 No Artifice or Device. The Contract is not and will not be a part of a transaction or series of transactions that attempts to circumvent the provisions of Section 148 ❑f the Code and the regulations thereunder in a manner which would (i) enable the City to exploit the difference between tax-exempt and taxable interest rates to gain a material financial advantage and (ii) increase the burden on the market for tax-exempt obligations. 7.4 No Intent to Earn Impermissible Arbitrage Profit. The City will not take any intentional action to earn any impermissible arbitrage profit in connection with the Contract. 8. Contract Meets Other Requirements for Tax Exemption. 8.1 Contract in Registered Form. The Contract is issued and delivered only in registered form. 8.2 No Federal Guaranty. Except as otherwise permitted by the Code, payment of the principal of or interest on the Contract is not guaranteed in whole or in part by the United States or any agency or instrumentality thereof. 8.3 Information Return to Be Filed. The City will cause a Form 8038-G Information Return respecting the Contract to be timely filed with the Internal Revenue Service. 9. Contract Tax -Exempt and Not Arbitrage Obligation. Based on the foregoing facts, estimates and circumstances in existence on the date of issue and the reasonable expectations of the City as to future events respecting the Contract, the Contract is a governmental obligation the interest on which is excluded from gross income for federal income tax purposes under Section 103 of the Code, and it is not expected that proceeds of the Contract will 0062780.01 -3- be used in any manner which would cause the Contract to be an arbitrage obligation. DATED December 12 , 1992. CITY OF EDMONDS, WASHINGTON r. By l Laura Hall, ayor 0062780.01 -4- Tom 8 0 3 $.G I Informatlon Return for Tax -Exempt Governmental Obligations (Rev. October 1989) to under SOT! 149(e) OMa No.15e5.0720 Depa"MM of the Treim" ► Set aeparater Insvuctions E2pires 5-31-92 Intemal Revenue Service (Use Form 8036-GC if the issue price is under $100,000) jigW HeportlnZ ALrthority Check box if Amended Return ► 3 issuer's name ! kwer's employer identlf"tion number City of Fdmnds 91-6001244 3 Number and street 4 Rtport number 505 Bell Street G1992 _ 1 5 Cety or town, state, and IiP code 6 Date of issue Edwnds, Washington 98020 12/9/92 7 4"me of &sut S CUSIP Number Real Estate Contract (Open mace Land) NIA Type of Issue check box es that app lies and enter the Issue Price B Check box if obligations are tax or other revenue anticipation bonds ► ❑ AIWA price 10 Check box If obligations are in the form of a kale or installment sale ► El 11 ❑ Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ❑ Health and hospital . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 ❑ Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ❑ Public safety . . . . . . . . . . . . . . . . . . . . . . ... . . . . . 15 ❑ Environment (including sewage bonds) . . . . . . . . . . . . . . . . . . . . 16 ❑ Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 ❑ utilities . . . . . . . . . . . . . 18 ❑ Other. Describe (see instructions)► pf' o M ace 'land 2,050,000 FWTITM Description of Oblimations ��11%1I%I%%I/I%I%11I%%11I11IJI%II%%�1%%I%%1/111II%1/1% r E n t i r e i s s u i �1/1NFIMI 1111 DMI, aiffim uses of urwrinal Proceeds oT bone Issues onclumn8 underwriters' discount) NIA 21 Proceeds used for accrued 'interest . . . . . . . . . . . . . . . . . . . . . . W 1 22 Issue price of entire issue (enter line 20c) . . . . . . . . . . . . . . lip 22 23 Proceeds used for bond issuance costs (including underwriters' discount) . 23 24 Proceeds used for credit enhancement . . . . . . . . . . . . 24 25 Proceeds allocated to ran naby required reserve or replacement fund . 25 26 Proceeds used to refund prior issues . . . . . . . . . . . . . . 26 27 Total (add lines 23, 24, 25, and 26) . . . . . . . . . . . . . . . . . . . . 28 Non ref undin roceeds of the issue subtract line 27 from line 22 and enter amount here 28 Descrlption of Refunded Bonds (complete this part only for refunding bonds) 29 Enter the remaining weighted average maturity of the bonds to be refunded . . . . . . . . . ■ - )rears 30 Enter the last date on which the refunded bonds will be called . . . . . . . . . . . . . IN. 31 Enter the dates the refunded bonds were issued ► Miscellaneous 32 Enter the amount of the state volume cap allocated to the issue . . . . . . . . . . . . . ► —0- 33 Enter the amount of the bonds designated by the issuer under section 265(bX3XBXiXIII) (small issuer exception) . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► $2, 050, 000 34 Pooled financings: a Enter the amount of the proceeds of this issue that are to be used to ma ke lace its to other goremmirrital units ► —0_ i Check box if this issue is a loan made from the proceedlof another tax-exempt issue ■ ❑ and enter the name of the issuer ■ and the date of the issue ► under penahres W perjury. I declare that I hwe aamined this return and aesornponyin` schedules and staterwrU. and to the best & my krio *Or anti cede+. they are true. Correct, and complete Please ed Arthur HoulerSi n -torFinance DiHr! rureof c,ti a Type or prod rnme rnd title For Paperwork ReductlafrAct Notke, pea Page 1 of the Instructions. Form $038-G (Rev 10-89) Oe.a. Mwrw+t pri"IM oftim1 1M9-262-15110019 c� CL — > Ln ll 2 $4 a) Ln N N o lJl IRI -0 al o .--I r rl ;Q -D m e0) 1 jr m 0 ,� ` .0 - a M 'C cm� ° relit T -d ar y N r>s r r` M - I rl 5 = > 19%Jruy " cc -1 D 104 .A C-0 a CL .p ."I i e❑ n c O on 1 t' 2 ` 1-) P Z A •� rn a LL m 00 m � a:� ` o a ro d 3 -cH-I a HCD r to h a v m ¢ a` a: x o tW?r, 066L eunr -008C W10j Sd SENDER: Cornple14!1 - a i[ema 7 andlor 2 fdrr additional 01e� • ;a & b. al 6o Prn1t your Warne ar+d ►awm this card to you, addraas °" wish to the receive a'° this following services (for °t • Attach thin toms m tha front o! daaa rwt permit. #1e rrlailpiece, wa Can an extra fee): ►'t'r�te "Ratum R w an back If apace 1 • ❑ Addressee's Address a " • The Retum Receipt will &hO.,sted ors the irra,tp,eca D delivered. ' ' to whom the article was "wboje h number « 2• ❑ 0 3. Article Addressed to: bared and the date Restricted Deliv, g Consult ery strnaster 79 «' Internal for fee, 1 4a. Article Number cc Reven $ Philadelphia, A 37 CI f ery . Type « C 091S red ❑ Insured Up i Certrfl d LICOD a JdN 2 7 i Expre Mail ❑ Return Receipt for a 0.� Date Del�Yery Merchandise w I• W 5. Signature (Addressee) r 7 PSC PH)l. �. Addre 6. Signature {,Agent) C Ln see's Address {only if requested ,Y and f is paid) e a PS Form 7 7, December 1991 .t US.G.P.O.; 1DB2�p7p t3011VIESTIC RETURN RECEIPT <m 7o m M M- M > m > s .. . m K v K o O :Mr OC UNITED STATES POSTAL SERVICE M M N m (0 n N m N 1 m m m m 8 < 8 < O m O m c K > 3 > i 0 o O v E Official Business PENALTY FOR PRIVATE I m c m N N m M N m m M m U ny107q-/3 0 E Q a a gv.%S,t-/q co SO 965-/O M Mm M 9 M 3 M > m > n � o � v 3 M M rn m m (n < n A m C M X rr T W mmmmrr M N X V > > > 0 0 0 o c =: = < Z m in M rr .1 �; - Cr USE TO AVOID PAYMENT a 0 OF FOSTAGF- M m m m Cn mm x3) o M o M � x o mO<m< imm(nm Print your name, address and ZIP Code here m 8 m 8 • SLH • ; NMCn l n m m m m > 9 > Z+ > FOSTER, PEPPER & SHEFELMAN 1 o 0 < X < 3:< 1111 THIRD AVENUE i m m m m ; < < SEATTLE. WASHINGTON 98101 r;mmmm i v N Ln FOSTER PEPPER & SHEFELMAN A LAW PARTNERSHIP INCLUDING PROFESSIONAL SERVICE CORPORATIONS 1 1 1 1 THIRD AVENUE SUITE 3400 BELLEVUE, WASHINGTON OFFICE SEATTLE, WASHINGTON 98101 (206)451-0500 (206)447-4400 TELECOPIER:(206) 455-5487 TELECOPIER: (206)447-9700•(206)447-9283 TELEX: (206) 32-8024 ANSBK: FOSTER LAW SEA December 9, 1992 City of Edmonds, Washington PORTLAND, OREGON OFFICE (503) 221-0607 TELECOPIER: (503) 221-1510 Re: City of Edmonds, Washington Real Estate Purchase Contract Agreement Ladies and Gentlemen: We have examined a certified transcript of the proceedings had by the City of Edmonds, Washington (the "City"), in the matter of the authorization and execution of the Real Estate Purchase Contract Agreement (the "Contract") by and between the City and Howard B. Anderson, Jr., ("Anderson") and James Gualtieri ("Gualtieri") (collectively, the "Sellers"), dated December 9, 1992. The Contract has been executed pursuant to the laws of the State of Washington for the purpose of acquiring certain real property for open space and park purposes, all as provided in Resolution No. 755 of the City, adopted December 8, 1992. The Contract is fully registered. Under the terms of the Contract, the Contract is in the total principal amount of $2,050,000 and is payable as follows. A. The undivided 31/60th interest belonging to Anderson is equal to the sum of one million fifty-nine thousand one hundred sixty-six and sixty-seven cents ($1,059,166.67). Said sum shall be paid in the following manner: (1) $500,000.00, in cash shall be paid at the time of closing consisting of all principal. Purchaser shall be given credit for the $1,000.00 0062677.WP City of Edmonds, Washington December 9, 1992 Page 2 option money already paid to Anderson. (2) The remaining balance of $559,166.67 shall bear interest at a rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: Ten (10) equal annual installments of blended principal and interest with the first payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. B. The undivided 29/60th interest belonging to Gualtieri is equal to nine hundred ninety thousand eight hundred thirty-three dollars and thirty-three cents ($990,833.33) said sum shall be paid in the following manner: (1) No payment at time of closing. (2) The balance of $990,833.33 shall bear interest at the rate of 6.25% pe annum on the declining principal balance, with said balance to be paid in the following manner: Ten (10) equal annual installments of blended principal and interest with the first interest payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. C. Notwithstanding the foregoing, in the event the purchaser obtains the IAC matching funds that it has applied for, for this purchase, then, in said event, the entire remaining 0062677.WP City of Edmonds, Washington December 9, 1992 Page 3 balance of principal and interest on both of the aforestated obligations shall be paid in full. D. Notwithstanding the foregoing, nothing shall prohibit the purchaser from at any time prepaying all or any portion of the principal and interest balance owing on either or both of said obligations, at purchaser's sole discretion. The Contract is a limited tax general obligation of the City. The full faith, credit and resources of the City are pledged irrevocably for the payment of principal and interest on the Contract. The City has pledged to budget and appropriate from annual regular property taxes and other revenues available to the City without a vote of the electors of the City amounts sufficient, together with money legally available therefor, to pay the principal of and interest on the Contract as the same come due. Reference is made to the Contract for a description of the agreements, conditions, covenants and terms securing the parties to the Contract, for the nature, extent and manner of enforcement of such agreements, conditions, covenants and terms, for the rights and remedies of the parties to the Contract with respect thereto and for other agreements, conditions, covenants and terms upon which the Contract has bee executed and delivered. Reference is also made to the Contract for the definitions of terms capitalized and not otherwise defined herein. As of the date of initial execution and delivery of the Contract to the Sellers, it is our opinion that (1) the City is a duly organized and legally existing municipal corporation under the laws of the State of Washington; (2) the Contract has been duly authorized, executed and delivered by the City in full compliance with the provisions of the Constitution and laws of the State of Washington and the resolutions of the City relating thereto; (3) the Contract constitutes a valid general obligation of the City payable solely out of taxes and other money legally available to the City therefor without a vote of the electors within the City, except only to the extent that enforcement of payment may be limited by bankruptcy, insolvency or other laws affecting creditors' rights; and (4) assuming compliance by the City with applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code"), including arbitrage requirements and requirements for the continued governmental use of the property 0062677.WP City of Edmonds, Washington December 9, 1992 Page 4 being purchased pursuant to the Contract, amounts that are properly treated for federal income tax purposes as interest paid on the Contract are excluded from gross income for federal income purposes under existing federal law, including the Code, and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals; however, while interest on the Contract is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Contract received by corporations will be taken into account in the computation of adjusted net book income and adjusted current earnings for purposes of calculating the alternative minimum tax applicable to corporations, interest on the Contract received by certain corporations may be subject to an environmental tax, interest on the Contract received by certain S corporations may be subject to tax, and interest on the Contract received by foreign corporations with United State branches may be subject to a foreign branch profits tax. We express no opinion regarding the extent to which amounts payable under the Contract are properly treated as principal or as interest for federal income tax purposes or regarding any other federal tax consequences of receipt of interest on the Contract. Very truly yours, FOSTER PEPPER & SHEFELMAN Lee Voorhees 0062677.WP fil/u��r� � TABLE OF CONTENTS Introduction Information Sources General Project Related Items Requiring Time Limitation on Grant Availability Application Submittal Deadlines Reimbursement Policy Participant's Matching Share Donated Real Property as Matching Share Eligible Acquisition Projects Acquisition of Public Lands Ineligible Acquisition Projects Number 3 Section Number Approval by Committee Eligible and Ineligible Acquisition Costs Waiver of Retroactivity Restrictions on Title Acquisition of Structures Encumbrances Uniform Relocation Assistance and Real Property Acquisition Policies Act Uniform Acquisition Procedure Uniform Relocation Assistance Signing Policy Documentation on Land Donations Costs Exceeding Fair Market Value Cost Increases Statement of Differences in Value Advance Payments Compatible Multiple Uses Interim Non -Recreation Uses Letter of Opinion Option Appraisal Requirements Types of Appraisals Finding of Value Appraisal Reviews Appraisal Revisions Appraiser Qualifications Revenue Feasibility Studies User Fees and Charges Special Federal Regulations Inspections Request for Reconsideration of Director's Decision APPENDIX Statement of Accompaniment Statement of Just Compensation Offer to Purchase at Fair Market Value Deed of Right Letter of Opinion Specifications for Formal Appraisal Reports Instructions for Short Form Appraisal Standards for Appraisal Review Appendix 03.01 03.02 03.03 03.04 03.05 03.06 03.07 03.08 03.09 03.10 03.11 03.12 03.13 03.14 03.15 03.16 03.17 03.18 03.19 03.20 03.21 03.22 03.23 03.24 03.25 03.26 03.27 03.28 03.29 03.29A 03.29B 03.29C 03.29D 03.30 03.31 03.32 03.33 03.34 03.35 A B C D E F G H Revised 11/3/88 ACQUISITION PROJECT POLICY AND PROCEDURE 03.01 INTRODUCTION This Manual provides the policies and procedures for federal, state and local agencies wishing to acquire lands and/or improvements with funds administered by the IAC. 03.02 INFORMATION SOURCES The Interagency Committee for Outdoor Recreation (IAC) is the Administering agency for the material provided in this Manual. The mailing address is: Interagency Committee for Outdoor Recreation 4800 Capitol Boulevard, KP-11 Tumwater, Washington 98504-5611 The telephone number is: (206) 753-7140. For questions related to project applications, to obtain proper forms, to receive technical assistance in the preparation of a grant application, to receive assistance in the administration of an approved grant, or to inquire about any aspects of the grants program, contact the IAC Project Services Division. 03.03 GENERAL ACQUISITION PROJECT RELATED ITEMS REQUIRING APPROVAL BY THE COMMITTEE Following are some of the decisions which must.be made by the full Committee at a public meeting: • -Initial grant approvals; . Conversions which will result in a change of use from that for which the grant was approved; . Cost increases exceeding 10%; . Major scope reductions; • Termination Df Project Contract; . Changes in policy. 03.04 TIME LIMITATION ON GRANT AVAILABILITY The project period of the acquisition Project Contract between the IAC and the sponsor will have a time limitation of not less than twelve months. Extensions based on a justifiable request from the sponsor can be given (See Participation Manual #7 - Section 07.08). Revised 11/3/88 1 03.05 APPLICATION SUBMITTAL DEADLINES The acquisition project application must be submitted at least four months prior to the scheduled IAC funding meeting. The applicat of n eadTine may be obtained by contacting the IAC office. Please refer to Participation Manual #5 for application procedures. 03.06 REIMBURSEMENT POLICY Normally, 1gra6tt` are` -on a ;reimbursable ba AV: sponsors make interim or final payments in full amount expended then request IAC for reimbursement of IAC share. In some cases, an advance of the IAC approved share can be made (See Section 03.25). Participation Manual #8 provides the complete reimbursement procedures and requirements. 03.07 PARTICIPANT'S MATCHING SHARE By Committee Policy, a local agency must provide, as a minimum, twenty-five percent of the total project cost as its matching share, depending on the availability of IAC funds. The sponsor 's governing :authority must=provide ;adequate"tt urance that the required local share is available at least 30 days prior to the IAC funding meeting. The sponsor's share can be either -local funds, cent•aao-�,federal fund&6 or the value"'of:,dopat-edprivately_ owned._- l ands � 03.08 DONATED REAL PROPERTY AS THE PARTICIPANT'S MATCHING SHARE The value of privately owned donated real property may be used as a portion or all of the participant's matching share of an approved project when the transfer of title to the applicant has not been accomplished prior to the execution by the IAC of the Project Contract, unless such action has been previously approved by the IAC under the Waiver of Retroactivity Procedure (03.13). The donation must consist of real property (land and facilities) which would normally qualify for IAC funding. If the donation does not adjoin the tract being acquired, it must stand on its own merits as an acceptable public recreation area in order to be considered an eligible donation. It also must be within the jurisdiction of the project sponsor. Donations are eligible in a project only to the extent that there are additional acquisition costs to be met by IAC assistance requested for that project. Revised 11/3/88 2 03.09 ELIGIBLE ACQUISITION PROJECTS IAC grants are available to acquire land which is to be used for outdoor recreation purposes. By Committee Policy and federal Law land acquired in fee with IAC asistance must be used for outdoor recreation purposes in perpetuity unless converted in accordance with IAC policy outlined in Participation Manual #7, Section 07.19, 19A. Land acquired under lease must be used for outdoor recreation purposes for the duration of the lease. Outdoor recreation lands are designated areas set aside for the purpose of providing various public outdoor recreation opportunities. Acquisition of leases, easements, rights -of -way, etc. will be considered in the same manner as total acquisition subject to the following conditions: 1. The length of the interest must be at least 50 years, unless precluded by state law. 2. The interest cannot be revocable at will by the signatories. 3. The value must be supported through standard appraisal technique. 4. The cost of the lease must be a lump sum payment at initiation. NOTE: The Acquisition of Leases for funding from the Federal Land and Water Conservation Fund (LWCFT.-05-e--e03.11.9) Staged projects are eligible subject to the following: a. The first stage must be of sufficient scope to provide a complete and functional recreation area. b. Approval of any single stage is limited to that stage; no endorsement or approval is given or implied toward future stages. c. Successive stages are eligible for grants only after satisfactory progress has been made on any previously approved stage. d. Each stage must be submitted as a new application (Participation Manual #5). Revised 11/3/88 4 Any portion of the value of the donation not needed as part of the local match in the project is not eligible for use as part of the local match in another project. The value of the donation must be established by an appraisal report prepared under the following procedure: 1. The participant submits a list of three or more qualified appraisers (see 03.30) and their qualifications to the IAC. 2. The IAC approves all or a part of the list of appraisers and notifies the participant to proceed with the appraisal. 3. The participant has an appraisal prepared according to the criteria discussed in this Manual. 4. Upon completion of the appraisal report, the report must be submitted to and approved by the IAC review appraiser. (See Sect. 03.29C). When land donations are used as the sponsor's matching share, the donation transaction must be finalized by submitting a copy of the recorded deed, title insurance policy and recorded "Deed of Right," prior to any reimbursement of project costs. The amount of donation that is matchable is the value of the land donation up to the limit of the applicant agency's share of the project. The maximum reimbursed by the IAC shall never exceed the cash expended on the project. EXAMPLES: IAC funding share at 50%. A. Using value of another parcel of land as donation: $100,000 value of subject land + 50,000 value of donated parcel 31076-0 Total Project Cost Shares: IAC = $75,000/Sponsor = $75,000 ($50,000 val. of donated land + $25,000 cash). B. Using a portion of the value of subject parcel as donation: $100,000 value of subject land - 50,000 value of donation 50,000 - IAC Share/Sponsor = 0 No cash; use value of donation for share. C. When value of donation in example B exceeds 50%, IAC pays only balance of cash needed, not 50% of land value. When value of donation is less than 50%, IAC pays maximum 50% of land value. Sponsor must make up the difference. Revised 11/3/88 3 03.10 ACQUISITION OF PUBLIC OWNED LANDS Normally, the acquisition of existing public owned lands is not eligible. However, if it is determined that the public agency owning the land must bX law receive compensation and the land was r not originally acquired by the public agency for recreation use or even so managed at any time during ownership, the acquisition is eligible for IAC grant assistance. The project cost will be based on the actual cost to the sponsor for the land or the fair market : value as determined by appraisal in accord with 03.29, whichever amount is less. Sponsors should be aware that RCW 39.33.010 provides for the transfer of public lands from one public body to another without compensation. This provision will be explored and discussed during project review. 03.11 INELIGIBLE ACQUISITION PROJECTS The following types of projects are not eligible: 1. Acquisition of lands under existing ownership of the sponsor unless qualified as provided in 03.10 above. 2. Acquisitions which would provide for indoor recreation opportunities as the primary use. This applies both to the acquisition of existing buildings as well as the acquisition of bare land upon which major indoor facilities other than enclosed swimming pools will be constructed. Indoor facilities either existing or to be constructed on lands acquired with IAC assistance may be permitted if they are compatible with the outdoor uses for which the land was acquired. 3. Acquisition of museums and of sites to be used for museums. 4. Acquisition of areas and facilities to be primarily used for semi-professional and professional art performances and athletic events. 5. Projects with revenue producing potential where the cost of capital acquisition can be financed completely through revenue accruing to the project. 6. Acquisition of areas on which use privileges will be on a lease basis such as boat moorage or a membership golf course. 7. Acquisition of areas and facilities to be used solely for game refuge or fish production purposes. 8. Acquisition of established outdoor recreation areas and facilities developed on lands under ownership or management of any public agency. Revised 11/3/88 5 9. Acquisition of leasehold interests in land are eligible for federal LWCF onl if the land is leased from one public agency to another an ide provisions which adequately safeguard the perpetual use requirement. 03.12 ELIGIBLE AND INELIGIBLE ACQUISITION PROJECT COSTS The extent of eligible costs will depend upon the source of grant funds approved by the IAC for the particular project. However, in all instances the retroactive cost of land and improvements are not eligible unless incurred under an approved waiver of retroactivity (03.13). Projects Approved for LWCF Funding For projects approved utilizing federal LWCF monies the following costs will be eligible: Cost of Land and Improvements Cost of Related Relocation of Eligible Occupants, including Administrative Costs Cost of Title Insurance Closing Costs Pro rata Real Estate Taxes Recording Fees Projects Approved for State Funding Only For projects approved utilizing only state funds the following costs will be eligible: Cost of Land and Improvements Cost of Related Relocation of Eligible Occupants, including Administrative Costs Cost of Appraisal Cost of Appraisal Review Cost of Title Insurance Closing Costs Pro rata Real Estate Taxes Recording Fees The cost of land and improvements will be based upon the fair market value as established by the appraisal process outlined in Section 03.29, the negotiation process as outlined in Section 03.22, or by court award. In all cases, IAC grants will not be used to reimburse other costs involved with land acquisition such as fees for feasibility studies, court costs, and attorney fees. Revised 11/3/88 6 A boundary survey at the time of acquisition may be eligible for reimbursement by the Interagency Committee for Outdoor Recreation if the Director of the Interagency Committee determines that the survey is required to settle known boundary disputes or essential to protect the investment of public funds. 03.13 WAIVER OF RETROACTIVITY Acquisition costs (other than for appraisals and reviews) incurred prior to the execution of the Project Contract are ineligible unless a waiver of retroactivity is granted. When it is determined by an applicant that an emergency exists which may jeopardize the project, the Director may, upon a showing in writing of necessity for action prior to IAC approval and execution of the Project Contract, grant permission to incur acquisition costs by issuance of a written waiver of retroactivity. This is not to be construed as approval of the project, but if the project is subsequently approved, the acquisition costs thus incurred will be eligible for assistance. For the project to be eligible for grant-in-aid support from federal LWCF funds, the NPS must issue its own waiver of retroactivity as provided under its rules and regulations. This must be accomplished through the IAC. Agencies must submit justification for the request together with an application including an Environmental Impact Assessment. (See Appendix Application, Manual #5.) The waiver will allow the acquisition to remain eligible for consideration through the next two IAC funding meetings, after which, the acquisition will not be eligible for consideration. 03.14 RESTRICTION ON TITLE TO LAND ACQUIRED WITS By Committee and Federal Policy, lands aci recreation funds are dedicated to outdoor perpetuity by a recorded "Deed of Right t( Recreation Purposes" which conveys a real public. The Deed of Right is to be execut participant after taking title to the prop for reimbursement. An approved format for found in Appendix D. 03.15 ACQUISITION OF STRUCTURES TO BE RETAINED Structures which are proposed to be retain( the land are eligible for IAC matching fun( primarily for support facilities for outdo( Revised 11/3/88 7 llL..rrr 3 Y byli --..4 V OU IG'. The anticipated use must be clearly identified in the project application so that the IAC may exercise reasonable judgment in determining the eligibility of the structure for funding assistance. For example, outdoor recreation support facilities include restrooms, park offices, maintenance areas and caretaker residences. 03.16 ENCUMBRANCES Property rights obtained with IAC funding assistance must be free of all reservations or encumbrances which, in the judgment of the IAC, would limit the recreation use of the site disproportionate to the public benefit. 03.17 UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION The State of Washington and its instrumentalities are required to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646), as amended by the Surface Transportation and Uniform Relocation Assistance Act (P.L. 100-17-1987); AND Washington State Law (RCW 8.26.010 Chapter 240 - Laws of 1971) as amended by Chpt. 90, Laws of 1988 (Chpt. 468-100 WAC), effective April 2, 1989. .�-000, 03.18 UNIFORM ACQUISITION PROCEDURES The following procedures satisfy the acquisition requirements of the Uniform Real Property Acquisition portion of the Act and must be followed if the project is to remain eligible for grant-in-aid assistance: 1. The sponsor makes initial contact with the owner to see if the land is for sale and to inform him that the land is being considered for purchase by the sponsor. Do not negotiate or discuss a purchase price. However, how the purchase price is to 55 determined may be discussed. 2. The sponsor obtains information as to whether or not relocation of owner or tenants will be involved and provides them with a written notice describing sponsors relocation program. 3. The sponsor has the land appraised. The owner must be provided, in writing, an opportunity to be present during the inspection of the property by the appraiser. Revised 11/3/88 8 4. The sponsor has the appraisal reviewed by IAC approved procedure (see 03.29C). Following receipt of conclusion by the review appraiser establishing the offer of just compensation the sponsor may follow one of two options: A. If the sponsor wishes to negotiate an option for the property prior to IAC approval, the following steps must be followed: 1. The sponsor informs the owner in writing of the value of the property based on the results of the reviewed appraisal using a letter of standard form similar to the sample "Statement of Just Compensation." (See Appendix B.) The sponsor must also notify the owner and tenants in writing of eligible relocation costs (See 03.19). 2. The sponsor must offer to purchase the property in writing at the appraised fair market value and to pay all eligible incidental acquisition and relocation costs involved. 3. The sponsor secures an option to acquire the property. The option agreement must: a. Be based on the offer to purchase (A-2). b. Not commit the sponsor to acquire the property. c. Stipulate the cost of securing the option is to be applied to the purchase price, if the cost of the option is to be an eligible cost. d. Extend at least 40 days beyond the IAC funding meeting date. B. If the sponsor does not plan to secure an option prior to IAC approval of the project, the following steps must be followed after receipt of the Project Contract executed by the IAA 1. The sponsor informs the owner in writing of the value of the property based on the results of the reviewed appraisal using a letter of standard form similar to the sample "Statement of Just Compen- sation." (See Appendix B). The sponsor must also notify the owner and tenants in writing of eligible relocation costs. 2. The sponsor must offer to purchase the property in writing (See Appendix C) at the appraised fair market value and pay all eligible incidental and relocation costs involved. 3. The sponsor acquires the property via a Warranty Deed. Revised 11/3/88 9 03.19 UNIFORM RELOCATION ASSISTANCE POLICIES The Washington State Department of Transportation (WSDOT) must perform the necessary administrative services to prepare ration assistance plan and cost estimate if the sponsor does not have a qualified agent on staff or available by personal service contract to perform this service. The cost of this service is paid directly to the WSDOT by the sponsor. The IAC must agree in advance on the qualifications of the sponsor's agent to perform such work. The sponsor must inform property owners and tenants of the relocation assistance benefits for which they are eligible. 03.20 SIGNING POLICY It is the policy of the Interagency Committee that land acquisitions funded through the Interagency Committee be signed to identify the cooperative nature of funding which helped achieve the particular project. This signing shall be put in a prominent place and be an integral part of the normal project signing carried on by the project sponsor. In all cases, regardless of whether the property is developed or not, lands acquired with IAC assistance must be made available for public use. Use may be restricted according to the sponsor's normal management policy for undeveloped or partially developed recreation areas. However, total restriction of the general public from IAC assisted sites must be avoided. 03.21 DOCUMENTATION REQUIRED ON ACQUISITIONS INVOLVING LAND DONATIONS In addition to the standard reimbursement documents (IAC Procedural Manual #8) the sponsor must also provide a statement signs y t e owner which covers the following items: a. That the owner volunteered to make a donation of land to the sponsor. b. The the owner had been provided a Statement of Just Compensation and had been fully informed of his/her rights and benefits under P. L. 91-646, as amended (See Appendix 6.). c. That the owner has elected to waive his/her entitlement under P. L. 91-646, as amended. Revised 11/3/88 10 03.22 LAND ACQUISITION COSTS EXCEEDING FAIR MARKET VALUE A reviewed and approved appraisal should be an acceptable estimate of property value. The negotiation between a willing seller and a willing buyer may set a price that is higher than the appraisal, and this market place value can be considered along with the appraised value in establishing the reasonable limits of assistance. If the sponsor believes that the negotiated price is a better indication of market value, yet it is higher than the appraised value, a detailed and well -documented statement of this difference must be submitted, together with a formal request for a cost increase. This statement must explain why the appraisal did not reflect the true value and/or circumstances not taken into account affecting land value and what steps the participant took to establish the true value considering acceptable appraisal techniques. 03.23 COST INCREASES Requests to approve a value which does not exceed 10 percent of the original appraised/or opinion of value on which project approval was based can be approved by the Director. Any request which exceeds the 10 percent limitation must be approved by the IAC. Such cost adjustments are made on a parcel by parcel determination and not on the total project cost. 03.24 STATEMENT OF DIFFERENCE IN VALUE If the property has been purchased for less than the approved fair market value, a letter from the seller must be submitted that acknowledges that the seller was aware of and offered the approved fair market value, and that the choice to sell for less value was made of his/her own free will. 03.25 ADVANCE PAYMENTS Advance payments may be made for acquisition projects which have been approved by the Interagency Committee. Request for advance payments must include: 1. A legally binding agreement between the applicant and seller, normally an "escrow agreement". 2. Evidence that the sponsor's share has been deposited into an "escrow" account. 3. Copy of the transfer deed(s) (which may or may not have been executed). Revised 11/3/88 11 4. Copy of the "Deed of Right". 5. Copy of the preliminary Title Insurance report, if changed from that included in the appraisal. 6. Copy of the letter of just compensation. 7. Copy of the offer to purchase. A copy of the executed deed, recorded "Deed of Right", and actual policy of Title Insurance naming the sponsor as legal owner must be provided within 60 days of receipt of the advance payment. 03.26 ACQUISITION INVOLVING COMPATIBLE MULTIPLE USES Nonrecreation uses, such as timber management, grazing, and other natural resource uses may be carried out on lands acquired with IAC assistance if they are clearly compatible with and, secondary to recreation use, and are approved prior to initiation. 03.27 INTERIM NONRECREATION USES OF LANDS ACQUIRED Lands acquired with IAC assistance are immediately dedicated to public outdoor recreation and therefore, in the interim period between acquisition and planned development, the public must not be denied access. In some instances during this period the temporary continuation of second party nonrecreation uses of IAC-assisted areas may be appropriate if not at the expense of public use. Continuation of existing nonrecreation uses must be concurred in by the IAC. When concurred in by the IAC, the use will be phased out within three years from the date of the acquisition. Life estates, whereby an owner is allowed to use the property to the end of his/her life, is an allowable nonrecreation use provided the following conditions are met: 1. The life estate should not totally limit public use of the site. 2. The value of the life estate is not included within the total project cost as established through acceptable appraisal techniques. 3. The life -estate provisions are approved by the IAC. Revised 11/3/88 12 03.28 LETTER OF OPINION OPTION Project sponsors have the option of submitting an appraisal with review, or providing a Letter of Opinion (see Appendix E for format) for each parcel, at least 30 days prior to the IAC meeting at which the project is to be considered for funding. If the Letter of Opinion option is used, an appraisal and review will be required subsequent to IAC approval of the project prior to any reimbursement being made. In no instance can negotiations be initiated with the owner(s) until the required appraisal and appraisal review are completed. The type of appraisal to be used will be determined by the cost of the property, and difficulty of the appraisal assignment. (See 03.29A). 03.29 APPRAISAL REQUIREMENTS A real estate appraisal report is required for all land to be acquired with IAC assistance. The appraisal report(s) applicant agency unless and must receive review in Sect. 03.29C. 03.29A TYPES OF APPRAISALS must have been prepared and paid for by the specifically waived by the IAC Director, approval in accord with procedure outlined One of the following three types of appraisal reports will be required. It is the responsibility of the sponsor to provide the appraiser with these appraisal instructions and formats. 1. Formal Appraisal - to be used if estimated value exceeds and/or if the appraisal requires additional explanation to support determination of damages to a remainder, or potential changes in zoning which could affect highest and best use, or when highest and best use is difficult to define due to land use regulations, or when use of other than the comparative (market) approach, or when condemnation i to be used. See required format Appendix F. % z 2. Short Form Appraisal - to be used if estimated value is between $5,000 an 25,000 See required format Appendix G. 3. Finding of Value - to be used if estimated value is $5,000 or less.(See Section 03.29B). Revised 11/3/88 13 In every instance, the property owner must be given a written invitation to accompany the appraiser during inspection of the property. The IAC Director or Review Appraiser may require additional information or data regarding any appraisals submitted. In no event can a Letter of Opinion SAppendix E ) be used to dete nimr e fair market value. ThLetter of Opinion only serves to es i sh an estimate of project cost through the IAG application review an approval process. 03.29E FINDING OF VALUE REQUIREMENTS Regardless of the degree of interest to be acquired, if the total value of the property is less than $5,000, the IAC may accept a written finding of value report. The finding of value report should include the name of the person preparing the finding, his experience and qualifications, as well as a short description of the factors and means used to reach the conclusion. These statements should be sufficiently detailed so as to enable the IAC to determine how the appraiser reached a conclusion based on market information. The finding of value will be reviewed and approved by the IAC. 03.29C APPRAISAL REVIEWS All project sponsors are responsible for having Formal and Short Form Narrative appraisal reports reviewed by either the State Department of Transportation (WSDOT) Appraisal Review Section or by a permanent agency employee who meets the appraiser qualifications specified in Sect. 03.30 or as a minimum, has four years active experience in the real estate field compiling appraisal reports for the purpose of determining fair market value. The project sponsor must provide the IAC with a certification of the staff appraisers qualifications in meeting these requirements. This function cannot be subdelegated to any firm or party other than All appraisal reviews must be accomplished in accord with the standard set forth in Appendix H. The project sponsor's offer of just compensation to the property owner will not be less than the fair market value concluded by the review appraiser. 03.29D REVISIONS TO APRAISALS All revisions to the appraisal must be reviewed and concurred in by the review appraiser. Revised 11/3/88 14 03.30 APPRAISER QUALIFICATIONS Unless specifically excepted in writing prior to initiation the appraisal must be prepared by a qualified real estate appraiser having one or more nationally recognized professional designation:* MAI -- Member of the American Institute of Real Estate Appraisers RM -- Residential Member of the American Institute SREA -- Senior Real Estate Analyst SRA -- Senior Residential Appraiser SRPA -- Senior Real Property Appraiser *Sponsoring agency staff appraiser may be used if approved in writing by the IAC Director prior to initiation of appraisal. Sponsors shall provide the appraiser with a copy of the appropriate appraisal format to be used as described in 03.29A above. 03.31 REVENUE FEASIBILITY STUDIES Some projects may be projected to have sufficient revenue producing potential to finance all or a portion of their capital costs with revenue bonds. At the discretion of the IAC Director a feasibility report prepared by a fiscal specialist may be required prior to funding consideration by the Committee. Specifically, it must provide the IAC with detailed financial information and data which will be incorporated in staff recommendations to the Committee. This report must be paid for by the sponsor. 03.32 USER FEES AND CHARGES User or other types of fees may be charged in connection with areas and facilities developed with IAC grants, provided that the fees and charges are commensurate with the value of recreation services or opportunities furnished and are with the prevailing range of public fees and charges within the state for the particular activity involved. Federal Law provides that with regard to property developed with LWCF assistance, discrimination on the basis of residence, including preferential reservation or membership systems and annual permit systems, is prohibited except t❑ the extent that reasonable differences in admission and other fees may be maintained on the basis of residence. Revised 11/3/88 15 Unless precluded by state law, all revenues from fees and charges which exceed the costs for operation and maintenance of the area from which they were collected must be deposited in a capital reserve fund identifiable within the sponsor(s) official annual budget(s), for acquisition and/or development of outdoor recreation lands or facilities, consistent with the agency's park and recreation plan. Such funds may not be used for operation and maintenance of other facilities. 03.33 SPECIAL FEDERAL REGULATIONS 1. Under Title VI of 1964 Civil Rights Act property acquired with assistance from the LWCF shall be open to entry and used by all persons regardless of race, color, religion, sex, or national origin, who are otherwise eligible. The Code of Federal Regulations, Title 43, Part 17, effectuates the provisions of Title VI. In addition, Section 504 of the Rehabilitation Act of 1973, P.L. 93-112, as amended, and Department of Interior Reg. 43CFR17, Subpart B, related to ensuring that no qualified handicapped person be excluded from, denied benefits of, or otherwise be subject to discrimination under any LWCF assisted program, must be complied with. The prohibitions imposed by Title VI and Section 504 apply to the park or recreation area benefiting from the federal assistance and to any other park or recreation area administered by the State or Local agency (participant) receiving the assistance. 2. The following federal laws will apply: A. Historic Properties Preservation Act of 1966 (P.L.89-665). B. Executive Order 11288 concerning the prevention, control, and abatement of water pollution. C. Executive Order 11296 relative to the evaluation of flood hazard. D. Flood Disaster Protection Act of 1973 (P.L. 93-234). E. Endangered Species Act of 1973 (P.L. 93-205). F. The National Environmental Policy Act of 1969 (NEPA) (Public Law 91-190, as amended; 82 stats 852, as amended; 42 USC 4321-4347). - G. Executive Order 11988, Flood Plain Management. H. Executive Order 11990, Protection of Wetlands. Revised 11/3/88 16 3. Temporary project signs are required on some acquisition projects assisted with Land and Water Conservation Funds which exceed $500,000 total cost. 03.34 INSPECTIONS Normally, at least two inspections are involved: 1. Pre -award - prior to award of the grant. 2. Post Completion Compliance Inspection - performed periodically by IAC staff to ensure the property is being retained as intended per the Project Contract. 03.35 REQUEST FOR RECONSIDERATION OF DIRECTOR'S DECISION Sponsors may request reconsideration of a decision by the Director by providing a written request for reconsideration of the decision to the IAC Chairman at least thirty days prior to a scheduled IAC meeting. The request for reconsideration will be placed on the IAC meeting agenda and an opportunity provided to the sponsor to address the IAC. The decision of the IAC shall be final. Revised 11/3/88 17 STATEMENT OF ACCOMPANIMENT Date: Name of Owner: Appraiser: Project Sponsor: Dear: Appendix A The (Project Sponsor) has requested that I appraise the following property: According to the records at the County Auditors Office, you are the owner of the above -mentioned property. In compliance with the State and Federal regulations, the appraiser must ask if the owner would like to accompany him when he inspects the property. I plan to appraise the property on , and this letter is an invitation for you to go with me when I appraise the property. Please indicate below whether or not you wish to accompany me and return the letter to me as soon as possible. If you do wish to be present but cannot make the set date and time, please call me at Sincerely yours, Reply by the owner I have read the above letter and I do, do not wish to accompany the appraiser to inspect the property. (Signature of Owner) Revised 11/3/88 APPENDIX B STATEMENT OF JUST COMPENSATION In compliance with Section 301 of the Act of Congress of January 2, 1971, Public Law 91-646 as amended by Title IV of the Federal Surface Transportation and Uniform Relocation Assistance Act of 1987 (P.L. 100-17, 101 Stat. 132, Title IV) and RCW 8.26.010 as amended by Chapter 90, Laws of 1988, you are advised that the estimate of just compensation for fee interest in your property is The basis for the determination of the estimate of just compensation: (1) Is based on the estimated fair market value of the property resulting from a study of current land sales in the vicinity of land described below; (2) Is not less than the approved appraisal of the property. (3) Any decrease or increase in the fair market value of the real property prior to the date of valuation caused by the public improvement or project for which the property is to be acquired, or by the likelihood that the property would be acquired for such improvement or project, other than that due to physical deterioration within the reasonable control of the owner, has been disregarded by the (agency) in making its estimate of just compensation for the property. (4) The stated value encompasses all property values within the described premises including any and all buildings and other improvements, except as specifically stated under exceptions below: EXCEPTIONS: Legal Description of Property County T. R. S. *Attached is information for landowners and tenants about relocation benefits under P.L. 91-646 and RCW 8.26.010 (Only if Applicable) Signed Title Date STATEMENT OF OWNER T F I have read the statement of Just Compensation above There are no persons living on the property There are no businesses being conducted on the property by others The following are living or are conducting business on the property: (Including owner if in occupancy) Give name and address: Signed Revised 11/3/88 (owner) APPENDIX C OFFER OF PURCHASE In addition to the Statement of Just Compensation which advises the property owner of the estimated Fair Market Value as determined by an approved appraisal as well as relocation benefits, the property sponsor must make an offer to purchase in writing to the property owner. The written offer must include the date, at least the full amount of Just Compensation, property description, and the indication that the figure offered is the estimated Fair Market Value. Example: You are hereby offered $(Full just Compensation) for your property which is the Fair Market Value for that real property herein described. This offer in effect opens official negotiations with the owner or his/her representative. No discussions with the owner prior to this time should include purchase price (see Participation Manual #3 Section 03.18). Revised 11/3/88 APPENDIX D This space reserved for Recorders Use DEED OF RIGHT TO USE LAND FOR PUBLIC RECREATION PURPOSES The Grantor, for and in consideration of monies coming in whole or in part from the Outdoor Recreation Account of the General Fund of the State of Washington and in fulfillment of terms of the Project Contract identified below, conveys and grants to the State of Washington individually and as the representative of all the people of the State, the right to use the real property described below forever for the outdoor recreation proposes described in the Project Contract entered into between the Grantor and the State of Washington through the Interagency Committee for Outdoor Recreation entitled Project Number signed by the Grantor on the day of and by the Interagency Committee on the day of and the application and supporting materials which are on file with the Grantor and the state in connection with the Project Contract. The Grantor will not make or permit to be made any use of the real property described in this deed, or any part of it, which is inconsistent with the right to usefor public outdoor recreation herein granted unless the state, through the Interagency Committee for Outdoor Recreation or its successors, consents to the inconsistent use, which con- sent shall be granted only upon conditions which will ensure that other outdoor recreatio land of at least equal fair market value at the time of change of use and of as nearly as feasible equivalent usefulness and location for the public recreation purposes for which state assistance was originally granted will be substituted in the manner pro- vided in RCW 43.99.100 for marine recreation land, whether or not the real property covered by this deed is marine recreation land. RCW 43.99.100 reads as follows: "Marine recreation land with respect to which money has been expended under RCW 43.99.080 shall not, without the approval of the committee, be converted to uses other than those for which such expenditure was originally approved. The committee shall only approve any such conversion upon conditions which will assure the substitution of other marine recreation land of at least equal fair market value at the time of conversion and of as nearly as feasible equivalent usefulness and location." The real property covered by this deed is described as follows: This deed shall in no way modify or extinguish the functions of the Grantor under the Project Contract, including the Grantor's functions to.operate and maintain the land as.set out in paragraph 14 of the Project Contract. Dated this day of 19 By: Title ATTEST: STATE OF WASHINGTON) SS. COUNTY OF ) THIS IS TO CERTIFY that on this day of 19 before me the under- signed Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared tome personally known to be the of the that executed Lr.e foregoing deed and acknowiedgea to me that they signed and sealed the same as tree free and voluntary act and deed of said and on oath stated that they were authorized to execute said instrument and that the seal affixed is the seal of said WITNESS my hand and official seal the day and year in this certificate first above written Notary Public in and for the State of Washington, residing at Appendix E IAC FORMAT USED FOR: LETTER OF OPINION Date: For: Re: Property Located at . Dear In accordance with your request, I have made a preliminary study of the above referenced property as of date . This preliminary study consisted of states ec3 ica y what steps the appraiser performed in his Es u , and what ana Isis, iT any, he made It shou d e c ear y understood -that an appraisal has not been made of the above referenced property, and that this letter does not constitute an appraisal report. Based upon this preliminary study, it is the appraiser's belief that if an appraisal were made, the final valuation estimate as of (date) . would probably be in the range of approximately to $. (See note A) It should be clearly understood that the range of value approx- imately herein is subject to adjustment upon completion of an appraisal. Very truly yours, ignature Note A: The letter of opinion never refers to a specific value. Revised 11/3/88 APPENDIX F SPECIFICATIONS FOR FORMAL APPRAISAL REPORTS The report on any individual property may vary depending upon the type of property under appraisal. Additional data may be required in the case of highly specialized properties. Generally, however, all items must be considered by the appraiser and included in the report unless otherwise requested and agreed to by the IAC. Omissions must be explained. The Appraisal Report must provide the following: 1. Letter of Transmittal. Should reference any contractual arrangements. 2. Title Page. This shall include: a. Project identification, County, and Parcel identification of the property; b. The name of the individual making the report; c. The effective date of the appraisal; and d. Owner's name, address, and telephone number. 3. Table of Contents. 4. Photographs. Pictures shall show at least the front elevation of the major improvements, plus any unusual features. There should also be views of the abutting properties on either side and that property directly opposite. When a large number of buildings are involved, including duplicates, one picture may be used for each type. Views of the best comparables should be included whenever possible. Except for the overall view, photographs may be bound as pages facing the discussion or description which the photographs concern. All graphic material shall include captions. 5. Statement of Limiting Conditions and Assumptions. The appraiser should provide clear concise statements of all assumptions including the following specifics: (a) that title to the property is marketable, (b) that the appraiser assumes no responsibility for legal matters, and (c) that all data furnished by others are presumed correct. 6. History of Conveyance. (Property sales and transfers). Include parties t❑ transactions, dates of purchase and amounts of consideration for at least 5 years prior to appraisal, or the date, purchase consideration, and principals in the last known conveyance of subject property. Revised 11/3/88 APPENDIX G SHORT FORM APPRAISAL The short form appraisal must at the least, include the following: 1. Letter of Transmittal 2. Title Page. This shall include: a. Project identification, county and parcel identification of property; b. Name of individual making report; C. Effective date of the appraisal; and d. Owners name, address and telephone number. 3. Photo raphs of Subject. Pictures shall show at least the front e evation o t e major improvements, plus any unusual features. There should also be views of the abutting properties on either side and that property directly opposite. When a large number of buildings are involved, including duplicates, one picture may be used for each type. Views of the best comparables should be included whenever possible. Except for the overall view, photographs may be bound as pages facing the discussion or description which the photographs concern. All graphic material shall include captions. 4. A brief description of the subject property to include physical characteristics, present use, zoning, public utilities associated with the land, deed restrictions, and any other pertinent information. 5. A legal description of the real property to be acquired and a plat. 6. At least a 5 year history of conveyances (sales and transfers), including parties to the transactions, dates of purchase, and amounts of consideration. 7. An analysis and statement of the property's highest and best use. 8. An analysis of three or more comparable sales, a narrative comparison of each sale to the subject property, a correlation of value and a vicinity map showing the location of comparable sales and subject property. 9. The appraiser's certification and signature. 10. The date the value estimate applies. 11. A statement of the appraiser's experience and qualifications. 12. Assumptions and limiting conditions. Revised 11/3/88 APPENDIX H STANDARDS FOR APPRAISAL REVIEW The reviewing appraiser must field inspect the property appraised as well as the comparable sales which the appraiser(s) considered in arriving at the fair market value of the whole property and of the remainder(s), if any. If a field inspection is not made, the file shall contain the reason(s) why it was not made. The reviewing appraiser shall examine the Appraisal Reports to determine that they: a. Are complete in accordance with IAC Procedural Manual #3, Acquisition Project Policies, Section 03.29. b. Follow accepted appraisal principles and techniques in the valuation of real property in accordance with existing State law. c. Include consideration of compensable items, damage, and benefits, and do not include compensation for items noncompensable under State law. Prior to finalizing the estimate of just compensation, the reviewing appraiser shall obtain corrections or revisions of Appraisal Reports which do not substantially meet the requirements set forth in the Local Agency Guidelines. These shall be documented and retained in the parcel file. The reviewing appraiser may supplement an Appraisal Report with corrections of minor mathematical errors as long as such errors do not affect the final value conclusion. The reviewer may also supplement the appraisal file where the following factual data have been omitted: a. Project and/or parcel number. b. Parties to transaction, date of purchase, and deed -book reference to sale of subject property and comparables. c. Statement that there was no sale of subject property in the past five years. d. Location, zoning, -or present use of subject property or comparables. The reviewing appraiser shall initial and date corrections and/or factual data supplements to the Appraisal Report. The reviewing appraiser shall place in the review report a signed and dated statement setting forth: a. An estimate of just compensation including, where appropriate, the allocation of compensation for the property acquired and for damages to remaining property. Revised 11/3/88 If the review appraiser determined that the fair market value of the subject property is different than the amount of total compensation estimated in the appraisal, then the reviewer's reasoning and/or market data supporting these conclusions must be clearly reported in the reviewer's statement. b. A listing of the buildings, structures, fixtures, and other improvements on the land which were considered part of the property to be acquired. c. A statement that the appraiser has no direct or indirect present or future interest in such property or in any monetary benefit from its acquisition. d. A statement that the estimate has been reached independently, without collaboration or direction, and is based on appraisals and other factual data. Revised 11/3/88 Commonwealth® POLICY NUMBER IM Land Title Insurance Company l b w d 9 2 b S 2 P Y File No. 039389 RECEIVED OWNER'S POLICY OF TITLE INSURANCE DEC 2 3 1992 'Edmonds City Clerk SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS CONTAINED IN SCHEDULE B AND THE PROVISIONS OF THE CONDITIONS AND STIPULATIONS HEREOF, COMMONWEALTH LAND TITLE INSURANCE COMPANY, a Pennsylvania corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the amount of insurance stated in Schedule A, and cost, attorneys' fees and expenses which the Company may become obligated to pay hereunder, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested otherwise than as stated therein; 2. Any defect in or lien or encumbrance on such title; 3. Lack of a right of access to and from the land; or 4. Unmarketability of such title. IN WITNESS WHEREOF, the Commonwealth Land Title Insurance Company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. COMMONWEALTH LAND TITLE INSURANCE COMPANY - e- Attest: �/ G By �yyt(�p lll///111/// ;e Secretary President EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy: 1. (a) Governmental police power. (b) Any law, ordinance or governmental regulation relating to environmental protection. (c) Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part. (d) The effect of any violation of the matters excluded under (a), (b) or (c) above, unless notice of a defect, lien or encumbrance resulting from a violation has been recorded at Date of Policy in those records in which under state statutes deeds, mortgages, lis pendens, liens or other title encumbrances must be recorded in order to impart constructive notice to purchasers of the land for value and without knowledge; provided, however, that without limitation, such records shall not be construed to include records in any of the offices of federal, state or local environmental protection, zoning, building, health or public safety authorities. 2. Rights of eminent domain unless notice of the exercise of such rights appears in the public records at Date of Policy. 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 and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. American Land Title Association Owner's Policy - 1970 - Form B (Rev. 10-17-70 and 10-17-84) Form 1005-96 Face Page Valid Only If Schedules A, B and Cover Are Attached ORIGINAL Issued with Policy No. POLICY OF TITLE INSURANCE COMMONWEALTH LAND TITLE INSURANCE COMPANY A Reliance Group Holdings Company SCHEDULE A Amount of Insurance: $ 2, 0 5 0, 0 0 0. 0 0 Premium: $ 3, 7 7 8. 0 0 Policy No. 165-092652 File No. 039389 Date of Policy: December 9, 1992 at 4 : 4 0 P.M. 1. Name of Insured: City of Edmonds, an optional municipal code city incorporated under the laws of the State of Washington 2. The FEE SIMPLE ESTATE and REVERSIONARY INTEREST in the land which is covered by this policy is at Date of Policy vested in: See attached Exhibit C 3. The land referred to in this policy is situated in the County of SNOHOMISH, State of WASHINGTON, and is identified as follows: See attached Exhibit A Countersigned: Authorized Qflucler or Agent Commitment No. 039389 EXHIBIT C PARCEL A: (Fee Simple) Howard V. Anderson, Jr., as his separate estate as to an undivided 31/60th interest, James Gualtieri, as his separate estate as to an undivided 29/60th interest PARCEL B: (Fee Simple) Howard V. Anderson, Jr., as his separate estate as to an undivided 31/60th interest, James Gualtieri, as his separate estate as to an undivided 29/60th interest PARCEL C• (Reversionary interest as created by that certain Deed recorded November 17, 1952 under Snohomish County Auditor's File No. 1045210) Howard V. Anderson, Jr., as his separate estate as to an undivided 31/60th interest, James Gualtieri, as his separate estate as to an undivided 29/60th interest EXHIBIT A PARCEL A• Commitment No. 039389 That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a Southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B: That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Grea Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 51057' East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. Continued Page 2 EXHIBIT A PARCEL C: Commitment No. 039389 That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where same intersects the Westerly line of Great Northern Railway right of way; THENCE North 61008' West a distance of 98.15 feet, more or less, along the extension of Southwesterly margin of Main Street to a point of intersection with the Government meander line; THENCE South 39031' West a distance of 26.60 feet along said Government meander line; THENCE South 66008' East a distance of 99.67 feet, more or less, to a point of intersection with Westerly line of right of way of Great Northern Railway Company; THENCE North 41004' East a distance of 17.86 feet along the Westerly right of way line to the True Point of Beginning. AND ALSO the following described tidelands of the first class, fronting Government Lot 2, Section 23, Township 27 North, Range, Range 3 East, W.M.; Beginning at a point on the Northwesterly production of Southwesterly margin of Main Street, formerly George Street, shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington where same intersects Westerly line of right of way of Great Northern Railway Company; THENCE North 61008' West a distance of 98.16 feet, more or less, along extension of Southwesterly margin of Main Street, to point of intersection with the Government meander line and True Point of Beginning; THENCE continuing North 61008' West a distance of 310.63 feet, more or less, along extension of Southwesterly margin of Main Street to the point of intersection with the Inner Harbor Line; THENCE South 44059/30/1 West a distance of 56.48 feet along said Inner Harbor Line; THENCE South 66008' East a distance of 322.62 feet to the point of intersection with the Government meander line; THENCE North 39031' East a distance of 26.60 feet along said Government meander line to True Point of Beginning. Situate in the County of Snohomish, State of Washington. COMMONWEALTH LAND TITLE INSURANCE COMPANY A Reliance Group Holdings Company Policy No. 165-092652 SCHEDULE B File No. 039389 This policy does not insure against loss or damage by reason of the following: 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. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey of the land would disclose, and which are not shown by the public records. 5. Any lien, or right to alien, 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, occupance 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. For additional easements, covenants, restrictions and reservations of record, see attached Exhibit B. 2. REAL ESTATE CONTRACT and the terms, covenants, conditions and provisions therein Seller: The City of Edmonds, an optional municipal code city incorporated under the laws of the State of Washington Purchaser: Howard B. Anderson, Jr., as his separate estate and James Gualtieri, as his separate estate Dated: December 9, 1992 Recorded: December 9, 1992 Recording No.: 9212090632 Receipt No.: No excise tax due #20957 sla END OF SCHEDULE B Commitment No. 039389 EXHIBIT B 1. EASEMENT and the terms and conditions thereof as reserved by instrument Recorded: November 17, 1952 Recording No.: 1045210 Purpose: Ingress and egress Affects: 30 feet in width, over the Easterly portion of Parcel C 2. RESERVATIONS AND OTHER MATTERS CONTAINED IN DEED Grantor: Howard V. Anderson and Mary Riley Anderson, his wife Recorded: November 17, 1952 Recording No.: 1045210 Affects: Parcel C herein (Copy attached) 3. RIGHTS OF THE GENERAL PUBLIC to the unrestricted use of navigable waterways and the portion of the premises subject to submergence by the waterways for navigational and recreational purposes. 4. RIGHTS OF THE UNITED STATES AND THE STATE OF WASHINGTON to regulate the use or occupancy of that portion of the premises lying below the line of the mean high tide. 5. LATERAL BOUNDARY ISSUES regarding first class tidelands and shorelands. 6. EASEMENT and the terms and conditions thereof Purpose: Anchor and guy wire Affects: Parcel C Recorded: December 28, 1956 Recording No.: 1220021 7. AGREEMENT providing easement and party wall Between: Arthur V. Allbery and Verla L. Allbery, husband and wife And: Howard V. Anderson and Mary Anderson, husband and wife Dated: September 13, 1964 Recorded: March 18, 1964 Recording No.: 1683284 Continued Page 2 Commitment No. 039389 EXHIBIT B 8. RESERVATIONS CONTAINED IN DEED, whereby the grantor excepts and reserves all oils, gases, coal, ores, minerals, fossils, etc., and the right of entry for opening, developing and working mines, etc., provided that no rights shall be exercised until provision has been made for full payment of all damages sustained by reason of such entry; together with right of the grantor or any grantee or lessee thereof, upon paying reasonable compensation, to acquire rights of way for private railroads, skid roads, flumes, canals, water courses or other easement for transporting and moving timber, stone, minerals or other products from this or other property. Grantor: State of Washington Affects: Tidelands END OF EXHIBIT B CONDITIONS AND STIPULATIONS (Continued) 7. LIMITATION OF LIABILITY No claim shall arise or be maintainable under this policy (a) if the Company, after having received notice of an alleged defect, lien or encumbrance insured against hereunder, by litigation or otherwise, removes such defect, lien or encumbrance or establishes the title, as insured, within a reasonable time after receipt of such notice; (b) in the event of litigation until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as insured, as provided in paragraph 3 hereof; or (c) for liability voluntarily assumed by an insured in settling any claim or suit without prior written consent of the Company. 8. REDUCTION OF LIABILITY All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. No payment shall be made without producing this policy for endorsement of such payment unless the policy be lost or destroyed, in which case proof of such loss or destruction shall be furnished to the satisfaction of the Company. 9. LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring either (a) a mortgage shown or referred to in Schedule B hereof which is a lien on the estate or interest covered by this policy, or (b) a mortgage hereafter executed by an insured which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy. The Company shall have the option to apply to the payment of any such mortgages any amount that otherwise would be payable hereunder to the insured owner of the estate or interest covered by this policy and the amount so paid shall be deemed a payment under this policy to said insured owner. 10. APPORTIONMENT If the land described in Schedule A consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more of said parcels but not al!, the loss shall be computed and settled on a pro rota basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, NM 1 American Land Title Association Owner's Policy - 1970 - Form B (Rev Cover Page Form 1005-8 unless a liability or value has otherwise been agreed upon as to each such parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement herein or by an endorsement attached hereto. 11. SUBROGATION UPON PAYMENT OR SETTLEMENT Whenever the Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which such insured claimant would have had against any person or property in respect to such claim had this policy not been issued, and if requested by the Company, such insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect such right of subrogation and shall permit the Company to use the name of such insured claimant in any transaction or litigation involving such rights or remedies. If the payment does not cover the loss of such insured claimant, the Company shall be subrogated to such rights and remedies in the proportion which said payment bears to the amount of said loss. If loss should result from any act of such insured claimant, such act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against hereunder which shall exceed the amount, if any, lost to the Company by reason of the impairment of the right of subrogation. 12. LIABILITY LIMITED TO THIS POLICY This instrument together with all endorsements and other instruments, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or any action asserting such claim, shall be restricted to the provisions and conditions and stipulations of this policy. No amendement of or endorsement to this policy can be made except by writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 13. NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to Commonwealth Land Title Insurance Company, Eight Penn Center, Philadelphia, Pennsylvania 19103. 10-17-70 and 10-17-84) Valid Only If Schedules A and B Are Attached 22-12090632 1 U, C(D[py REAL ESTATE PURCHASE CONTRACT AGREEMENT THIS AGREEMENT entered into this day between the City of Edmonds, an optional municipal code city incorporated under the laws of the State of Washington hereinafter referred to as "Purchaser" and Howard B. Anderson, Jr., as his separate estate, and James Gualtieri, as his separate estate, hereinafter referred to as "Sellers" for the purposes and considerations as follows: 1. Description of Real Pro ert . The Purchaser agrees to purchase and the Sellers agree to sell that certain real property consisting of Parcels A and B and Sellers' reversionary interest in Parcel C all as described in Exhibit A attached hereto and incorporated herein as if set forth in full ("Property"). 2. Purchase Price and Payment Terms. The total purchase price to be paid by Purchaser shall be $2,050,000.00. Payment terms shall be as follows: A. The undivided 31/60th interest belonging to Howard B. Anderson, Jr., as his separate estate, is equal to the sum of one million fifty-nine thousand one hundred sixty-six and sixty-seven cents ($1,059,166.67). Said sum shall be paid in the following manner: (1) $500,000.00, in cash shall be paid at the time of closing consisting of all principal. Purchaser shall be given credit for the $1,000.00 option money already paid to Howard Anderson. NO EXCISE TAX GUE2) The remaining balance of $559,166. 67 shall $2,00 Treasurr_r,s F., bear interest at a rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: (a) Ten (10) equal annual installments of fig;£ U�r;� ^ ; rep blended principal and interest with the first payment of principal and interest ❑icy due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. B. The undivided 29/60th interest belonging to James Gualtieri, as his separate property, is equal to nine hundred ninety thousand eight hundred thirty- three dollars and thirty-three cents ($990,833.33) said sum shall be paid in the following manner: JDwi13 - 1 - IDW34662.1L0006.1705312-04-92 ORIGINAL RI^INx (1) No payment at time of closing. (2) The balance of $990,833.33 shall bear interest at the rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: (a) Ten (10) equal annual installments of blended principal and interest with the first interest payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. C. Notwithstanding the foregoing, in the event the purchaser obtains the IAC matching funds that it has applied for, for this purchase, then, in said event, the entire remaining balance of principal and interest on both of the aforestated obligations shall be paid in full. D. Notwithstanding the foregoing, nothing shall prohibit the purchaser from at any time prepaying all or any portion of the principal and interest balance owing on either or both of said obligations, at purchaser's sole discretion. 3. Removal of Sellers Personal Property. Seller shall have 90 days from the date of closing to remove their business inventory and equipment and all other personal property, excluding fixtures, from the premises. 4. Closing Costs. Purchaser and Seller, Howard B. Anderson, Jr., will each pay one half of the escrow cost. The cost of title insurance (ATLA policy) shall be paid by Howard B. Anderson, Jr. from the proceeds deposited by purchaser in escrow. Title insurance shall be provided by Commonwealth Land Title Company of Snohomish County. Cost of recording of the real estate purchase contract encompassing the terms of this option agreement shall be paid by purchaser. Taxes shall be prorated as of date of closing. 5. Conveyance -Conditions of Title. A. It is the intent of Sellers to sell and Purchaser to purchase fee title free and clear of all encumbrances to Parcels A and B of Exhibit A and all of Sellers' interest in Parcel C of Exhibit A. Sellers' interest in Parcel C consists of reversion rights as contained within the instrument recorded JDWns - 2 - ID W34662.1 L0006.1705312-04-92 under Snohomish County Auditor's file number 1045210. Said Property is being purchased for a public purpose, it being purchaser's intent to develop and maintain said Property as a public park in perpetuity. The statement of intent shall not create nor be construed as creating any right of reversion or defeasible fee in the sellers or their heirs or successors in interest. B. Title to the Property is to be free and clear of all liens, encumbrances or defects except those hereinafter identified: (1) Numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. 6. Representations and Warranties. A. Sellers have no knowledge of or have received no claim or notice from any governmental agency of any violation of laws, ordinances or regulations relating to the Property. B. Sellers have no knowledge of or have received no claim or notice of any government or judicial proceeding (threatened or actual) affecting the Property, except for the letter from the Washington State Department of Transportation of October 27, 1992. C. Sellers warrant that no hazardous substance or dangerous or toxic waste or other material regulated by State or Federal laws or regulations has been lawfully or unlawfully deposited upon the Property, except as allowed pursuant to the Supplemental Agreement dated as of October 2, 1992, between the parties and the November 17, 1992 letter from John D. Wallace, of Ogden Murphy Wallace, to Sellers. D. Sellers warrant that they are the owners of the Property and are authorized to sign this Option and have the legal right to sell the Property under the conditions set forth in this Agreement. 7. Conveyances -Forms of Deed. Sellers shall, as a part of the closing, execute a statutory warranty (fulfillment) deed conveying fee title to Parcels A and B as described in Exhibit A, which deed will be in the form of Exhibit B attached hereto and incorporated in full by this JDWI6 - 3 - J D W 34662.1 U 0006.17053 124)4-92 reference, and a quit claim (fulfillment) deed conveying the reversionary interest of Sellers in Parcel C as described in Exhibit A, as identified in that certain document recorded under Snohomish County Auditor's file number 1045210 which deed will be in the form of Exhibit C attached hereto and hereby incorporated in full by this reference. Said deeds shall be placed in true escrow which true escrow and collection of this contract shall be established with US Bank, Edmonds Branch, for the purpose of collection of this contract and upon completion of payment of the obligations by the Purchaser under said contract, instructions to the true escrow agent shall provide for the delivery of the statutory warranty fulfillment deed and quit claim fulfillment deed to the Purchaser for recording. 8. Possession. Sellers shall deliver possession of the Property to Purchaser at the time of closing subject to the provisions of paragraph 3 above. Closing shall be performed by Commonwealth Land Title Company of Snohomish County. 9. Survival and Indemnification. A. Except as specifically provided otherwise in this Agreement, the agreements, covenants, promises, representations and warranties contained in this Agreement or contained in any documents or instruments delivered pursuant to this Agreement shall fully survive closing and delivery of all documents and instruments delivered at or in connection with closing. B. Sellers hereby agree to indemnify and hold Purchaser harmless from ,and against any and all losses, damages, liabilities, costs and expenses, including reasonable attorney's fees, incurred by Purchaser by reason of or arising out of the duties or liabilities of Sellers which are not specifically or expressly assumed by Purchaser by reason of the incorrectness or breach of any of Sellers' representations and warranties contained in this Agreement. 10. specific Performance. Either party shall have the right to seek the specific performance of the enforcement of the terms and conditions of this Agreement. 11. Attorne 's Fees. If either party hereto is required to retain an attorney to bring suit to enforce any provision of this Agreement, the prevailing party in such suit shall be entitled to reasonable attorney's fees. JDW11s JDW34662.11J0006.17053 12-04-92 - 4 - 12. Notices. All notices which may be or are required or permitted to be given by either party to the other party under this Agreement shall be in writing. All notices by a party to the other party shall be delivered personally or sent by United States mail, postage prepaid, addressed to the other party at the address set forth below, or such may from time to time designate. If any notice is mailed, it shall be conclusively deemed received three (3) days following the date it is deposited in the mail ( the date of mailing shall be counted as one of the three days) . The postmark affixed shall be conclusive evidence of the date of mailing. Notices to be sent to: Purchaser: Sellers: City of Edmonds 1) Howard V. Anderson, Jr., Laura M. Hall, Mayor as his separate property, 250 5th Avenue N. 7419 - 200th St. S.W. Edmonds, WA 98020 Lynnwood, WA, 98036 2) James Gualtieri, as his separate property, 6920 - 174th S.W. Edmonds, WA 98020 AND TO Jeannette A. Cyphers a/k/a/ Jackie Cyphers Attorney -at -Law Suite 304 Northgate Plaza Building 9709 3rd Avenue N.E. Seattle, WA 98115 13. Entire Agreement. This contract constitutes the entire agreement and understanding between Purchaser and Sellers. There are no verbal or other arrangements that modify or affect this contract. No representations or statements, oral or written, not made herein, have induced execution of this contract or have any affect upon its validity. 14. Site Cleanup. The Supplemental Agreement, supplemental to the Option to Purchase Real Estate Agreement was entered into by and between Purchaser and Seller and dated as of October 2, 1992. Said agreement required the removal of certain specifically identified materials or structures and tanks from the subject Property. Sellers have provided certification that all of the thus identified items contained in paragraph I. subparagraphs A through D, of said Supplemental Agreement have been 7DW/Is - 5 - 7DW34662.1L0006.1705312-04-92 fully and completely removed in accordance with all applicable State and Federal regulations. Both parties to this agreement have acknowledged that the roofing material identified in subparagraph D, of paragraph I of the Supplemental Agreement did not have to be removed by Sellers. Sellers shall provide proof of completion of its removal and disposal obligations under paragraph I, subparagraphs A through D. of the Supplemental Agreement prior to closing. DATED as of this 4J day of December, 1992. SELLERS: HOWARD V. ANDERSON --JR., award V. Anderson,Jr., as his separate estate JAMES GUALTIERI mes Gualtieri, as his separate estate STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH PURCHASER: CITY OF EDMONDS Lau a 1, Mayor ATTEST/AUTHENTICATED: '�ZC �tyClerk, Rhonda �J. March On this � day of 04e.6' , 1992, before me personally appeared Howard Anderson, Jr., as his separate estate, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first above written. Vt ����►9serr�rrF_. . N ARY PUBLIC o r� y Appointment Expires: ■ri 0 4`r�t,199h , ���i���ASHF�IG� i3`•• JDW/b 6 JDW34662.1110006.17053 12-04-92 STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH On this _!if day of , 1992, before me personally appeared James Gualtieri, as his separate estate, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned IN WITNESS WHEREOF''" ante hereto set my hand and affixed by official seal the dad`*..}�+��Yfirst ab ve written. CA ��► % UQi�� N T Y PUBLI "'►,r pfi 2j �9g �a�� y Appointment Expires :.� i Gs� STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH ) 4- On this r'1 . day of , 1992, before me personally appeared Mayor Laura Hall, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF J,Pave hereto set my hand and affixed by official seal the dad■■� �'■�'�G�first ve written. ,4 •j�1'5�p'�'���. � ram► Gatl fl � i NpT p *` N ARY PUBLIC" Appointment O •rZj 1g • O�� . STATE OF WASHINGTON COUNTY OF SNOHOMISH ) Expires: v V, �} On this _q—_ day of rfs' - 1992, before me personally appeared Rhonda J. March, City Clerk, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first a ve written. 5z,�'.+ ~• '°�� �� O PUBLIC N�TARy m;� Appointment Expires: I iJ o�J G •• ry 1 JDW/le 8+7 _ 7DW34662.1U0006.1705312-04-92 i ++++8+11103 1'�'' CITY CLERK CIVIC CENTER EDMONDS. WA 9so2o yti'c Q PIULFIi.T NEM "YZ Quit Claim Deed '93 AUG -5 A 9 :4 3 THE GRANTORS Howard V. Anderson, Jr. , sepc'�tx's"i� property and James Gualtieri, as his separate proA41s. ; ..aiic14A consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and quit claims to the City of ,� Edmonds, a Washington municipal corporation, any and all interest � they may have or may hereafter acquire in that certain real property, including specifically their interest in reversionary 06 rights as identified in an instrument recorded under Snohomish County Auditor's file number 1045210 which property is situated in the county of Snohomish, State of Washington and described as follows: PARCEL C• That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin on Main Street, formerly George Street, as shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where same intersects the Westerly line of Great Northern Railway right of way; THENCE North 61008' West a distance of 98.15 feet, more or less, along the extension of Southwesterly margin of Main Street to a point of intersection with the Government meander line; THENCE South 39031' West a distance of 26.60 feet along said Government meander line; THENCE South 66008 East a distance of 99.67 feet, more or less, to a point of intersection with Westerly line of right of way of Great Northern Railway Company; THENCE North 41004' East a distance of 17.86 feet along the Westerly right of way line to the True Point of Beginning. AND ALSO the following described tidelands of the first class, fronting Government Lot 2, Section 23, Township 27 North, Range, Range 3 East, W.M.; Beginning at a point on the Northwesterly production of Southwesterly margin of Main Street, formerly George Street, shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington where same intersects Westerly line of right of way of Great Northern Railway Company; THENCE North 61008' West a distance of 98.16 feet, more or less, along extension of Southwesterly margin of Main S*-Ue � A@ pq+i \ �F 015 $2.00 Treasurer; `oo IDWU732.1X/0M.17053 rl�1i)199�.. ORIGINAL Uni intersection with the Government meander line and True Point of Beginning; THENCE continuing North 610081 West a distance of 310.63 feet, more or less, along extension of Southwesterly margin of Main Street to the point of intersection with the Inner Harbor Line; THENCE South 44'59'30" West a distance of 56.48 feet along said Inner Harbor Line; THENCE South 66008' East a distance of 322.62 feet to the point of intersection with the Government meander line; THENCE North 39031" East a distance of 26.60 feet along said Government meander line to True Point of Beginning. Situate in the County of Snohomish, State of Washington. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December , 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. By STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) lay of I y'F 2-- R,. By !„ ames Gualtieri On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. tR. GIVEN under my hand and official' seal this day of r 1 940is�tr�rr1 �10, N R. S 1410 .111,' 0 NOTi' ^Y PLnLK' NA +'► 'Gh6 12, +++ .` ••.....••. . WA41y �u ARY PUBLIC Appointment Expires: a II JDW34732.IX/0006.17053 'ci 0 o rna �.� STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and 191� '.���rtitrrrr►►►►�r R. S/4 ►fi ciO'�� IV�T.gRy rya: ;�• r+f►0� WASH�Ni offic' seal this 1— day of Y PUBLIC y Appointment Expires: Z11 i f inw34732.iw0006.17053 VOL. 2 77 O PAGE O 4 9 6 CITY CLERK CIVIC CENTER 1' EDMO'NDS- WA 98020 ( FULFILLMENT ) Statutory Warranty De-ed]G -S A 9 :43 Y� THE GRANTORS Howard V. Anderson, JrgOG -; as phis= „pqp@@Fate property and James Gualtieri, as his separate iperty,!.}Edt.,'I�Shid in consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and warrants to the City of Edmonds, a Washington municipal corporation, the following described real estate, situated in the County of Snohomish, State of Washington: ` PARCEL A• That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B• That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; NO E%:CISE TAX D-J $2.00 Treasurer's Feo y.2 ;aired JDW34732.1X/0006.17053 ORIGINAL i ■A n 9 ;� f Y L+ U� ��� : ' �i ��tB�113�1 CO�ll�f i• �S;lf �� gY neDuty THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 51057' East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. Subject to numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December _!y , 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. By 64 DATED this on, Jr. STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) day of L By � 04ames Gualtier On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and offic• 1 seal this day of ■ 191k- �1 "a• . u j►� rr • • a:aYOly �!. NARY tiL c� puauc `✓fir ■■■;;i..• tr oF t JDW34732.1X/0006.17053 rARY PUBLIC Appointment Expires: /y S vnt_ 2 "7'7 0 PA6E O 4 98 STATE OF WASHINGTON ) ) ss. COUNTY OF SNOHOMISH ) On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that -he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. A�,�}}� GIVEN under my hand and offici�]., seal this _2 day of ela� , 19iL_. �.s''CPWAppointment ARY PUBLIC Expires: S� ••.• J,C��i.7 M O : r� i •�iq�� ••~ r2 ice.`' p IDW34732.1X/0006.17053 VOL. 2 7 7 0 PAGE 04 9 9 �r Commitment No. 039389 EXHIBIT B 1. - EASEMENT and the terms and conditions thereof as reserved by instrument Recorded: November 17, 1952 Recording No.: 1045210 Purpose: Ingress and egress Affects: 30 feet in width, over the Easterly portion of Parcel C 2. RESERVATIONS AND OTHER MATTERS CONTAINED IN DEED Grantor: Howard V. Anderson and Mary Riley Anderson, his wife Recorded: November 17, 1952 Recording No.: 1045210 (Copy attached) 3. RIGHTS OF THE GENERAL PUBLIC to the unrestricted use of navigable waterways and the portion of the premises subject to submergence by the waterways for navigational and recreational purposes. 4. RIGHTS OF THE UNITED STATES AND THE STATE OF WASHINGTON to regulate the use or occupancy of that portion of the premises lying below the line of the mean high tide. 5. LATERAL BOUNDARY ISSUES regarding first class tidelands and shorelands. 6. EASEMENT and the terms and conditions thereof Purpose: Anchor and guy wire Affects: Parcel C Recorded: December 28, 1956 Recording No.: 1220021 7. AGREEMENT providing easement and party wall Between: Arthur V. Allbery and Verla L. Allbery, husband and wife And; Howard V. Anderson and Mary Anderson, husband and wife Dated: September 13, 1964 Recorded:, March 18, 1964 Recording No.: 1683284 Continued. voL. 2'7'7 0 PA6E 05 0 0 Page 2 EXHIBIT B Commitment No. 039389 8. RESERVATIONS CONTAINED IN DEED, whereby the grantor excepts and reserves all oils, gases, coal, ores, minerals, fossils, etc., and the right of entry for opening, developing and working mines, etc., provided that no rights shall be ' exercised until provision has been made for full payment of all damages sustained by reason of such entry; together with right of the grantor or any grantee or lessee thereof, upon. paying reasonable compensation, to acquire rights of way for private railroads, skid roads, flumes, canals, water courses or other easement for transporting and moving timber, stone, minerals or other products from this or other property. Grantor: State of Washington Affects: Tidelands END OF EXHIBIT B o voi.2770PAc�0501 NO EXCISE TAX REQUIRED A} ,, G 0 5 1993 r CITY CLERK C CIVIC CENTER \ §M1*Nb8, WA 98020 KH E SOIRS, Snohomis'D (ugly Treasurer DEED OF RIGHT TO USE LAND ,v,-tPy K I K E S I E V E R FOR PUBLIC RECREATION PURPOSES '93 AUG —5 A :43 CGUHTY. +WASH. The Grantor, City of Edmonds, for and in consideration of monies coming in whole or in part from the Outdoor Recreation Account of the General Fund of the State of Washington and in fulfillment of terms of the Project Agreement identified below, conveys and grants to the State of Washington individually and as the representative of all people of the State, the right to use the real property described below forever for the outdoor recreation purposes. The purposes are described in the Project Agreement entered into between the Grantor and the State of Washington through the Interagency Committee for Outdoor Recreation entitled Edmonds Waterfront Acquisition Project Number 92-241A signed by the Grantor on the 4th day of August, 1993, and by the Interagency Committee on the 28th day of July, 1993, and the application and supporting materials which are on file with the Grantor and the State in connection with the Project Agreement. The Grantor will not make or permit to be made any use of the real property described in this deed, or any part of it, which is inconsistent with the right to use for public outdoor recreation herein granted unless the state, through the Interagency Committee for Outdoor Recreation or its successors consents to the inconsistent use, which consent shall be granted only upon conditions which will ensure that other outdoor recreation land of at least equal fair market value at the time of change of use and of as nearly as feasible equivalent usefulness and location for the public recreation purposes for which state assistance was originally granted will be substituted in the manner provided in RCW 43.99.100 for marine recreation land, whether or not the real property covered by this deed is marine recreation land. RCW 43.99.100 reads as follows: "Marine recreation land with respect to which money has been expended under RCW 43.99.080 shall not, without the approval of the committee, be converted to uses other than those for which such expenditure was originally approved. The committee shall only approve any such conversion upon conditions which will assure the substitution of other marine recreation land von. 2770 PAGE 0 5 0 2 of at least equal fair market value at the time of conversion and of as nearly as feasible equivalent usefulness and location." The real property covered by this deed is described in Exhibit A attached. The subject property is deeded subject to easements in the records of Snohomish County, Washington, and a covenant restricting use of the property to passive recreational use granted to Snohomish County by virtue of a document recorded at Volume , Page of the records of Snohomish County. DATED this day of I 14u!gu-S , 1993. CITY OF EDMONDS: Laura III all, Mayor ATTEST/AUTHENTICATED: aJJMarch,j Zu Rha ity Clerk APPROVED AS TO FORM: J n Wallace Office of the City Attorney as 0805 1�� � 2of3 VOL.2770PAGE0503 PARCEL A: That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W_M_, described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of -Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning. - THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 :Feet, more or less, to a point of intersection with the Government Meander line; THENCE in a southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is '850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginn-ing_ PARCEL B: That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W_M_ and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; THENCE Westerly at right angles the meander line of Puget Sound; THENCE North 56043' West 315.09 Inner Harbor Line; THENCE South 450 West along said THENCE South 51O57' East 330.2E line; to said right of way to a point in feet, more or less, to a point on Inner Harbor Line 175.12 feet; feet, more or less, to meander THENCE South 490 East to the point of beginning. Subject to numbers 1 through 8 of Exhibit B of Schedule B -of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. O-OA 4 VOL. 2 7 7 o 'AGE 0 5 0 4 STATE OF WASHINGTON ) ) ss_ COUNTY OF KING ) On this day of 1993, before me personally appeared Mayor Laura M. Hall, and executed the foreg g instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument. 1N WITNESS WHEREOF, I have hereto set my hand and affixed my official seal the day and year first above written. 0� 4 wss52665. ixia006.zn 3of3 NOTARY PUBLIC in and for tht State of Washington, residing at �o AvV-� , Lv 6 My Commission expires: to CIT CLERK _ CIVIC CENTER EDMONDS. WA 98020 CONVEYANCE OF RIGHT TO USE)J-APW -5 A 9 =43 FOR OPEN SPACE PURPOSES w The Grantor, THE CITY OF @l Oi�IDS::_ =ice" A,!JDITOR . for an in consideration of monies ��.. obtained in whole or in part from the Snohomish County Conservation Futures Property Tax Fund, and in fulfillment of the terms of the Interlocal Agreement for Funding of Conservation Futures Project identified below, conveys and grants to the County of Snohomish individually and as the representative of all the people of Snohomish ' County, the right to use the real property described in Exhibit A below forever for open space purposes pursuant to RCW 84.34.200-.220, as described in the Interlocal Agreement for Funding of Conservation Futures Project entered into between the Grantor and the County of Snohomish entitled EnMnNDS wATERFRQNT ACQUISITION signed by Grantor on the I7 - day of together with the documents incorporated therein which are on file with the Grantor and the County in connection with the Interlocal Agreement. The Grantor will not make or permit to be made any use of the real property.described in Exhibit A, or any part of it, which is inconsistent with the right to use for public open space purposes herein granted unless such use is authorized by applicable law and the County consents to such use. This Conveyance shall in no way modify or extinguish the functions and duties of the Grantor under the Interlocal Agreement. Dated this day of , 19f.�- or i' EXCISE TAX REQUIRED � :�}�, � i993 l ! [ Si}'S, Snh m*4 (euniy Treasurer e,y yr iRKE SEEMERS CITY OF £DMONDS Laur Hall Mayor ATTESTATION: City Clerk CONVEYANCE OF RIGHT TO USE LAND FOR OPEN SPACE PURPOSES - 1 uni STATE OF WASHINGTON) ) ss. COUNTY OF SNOHOMISH) I certify that I know or have satisfactory evidence that signed this instrument, on oath stated that (hey h ).was authorized to execute the instrument and acknowledd it as the V- of e, to be the free and volOntary act of such party for the uses and purposes mentioned in the instrument. Dated: _ \ 1993 _ S"1921184" jb�o-� ciaw J �'CPGEY �Ry+'+, Notary PublAc My Appointment expires: `v W)TARY w•; (;Ay pusuC a ? z: �► Z �F Y4lAst' SO��, 0 CONVEYANCE OF RIGHT TO USE LAND FOR OPEN SPACE PURPOSES — 2 VOL. 2 7 7 0 PAGE 0 5 0 l (GYt. -A PARCEL A: That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M_, described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of -Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great_ Northern right of way 17_86 feet to the True Point of Beginning. - THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 :Feet, more or less, to a point of intersection with the Government Meander line; THENCE in a southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning - PARCEL B: That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W_M_ and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; THENCE Westerly at right angles the meander line of Puget Sound; THENCE North 56-43' West 315.09 Inner Harbor.Line; THENCE South 450 West along said THENCE South 51'057' East 330.2E line; to said right of way to a point in feet, more or less, to a point on Inner Harbor Line 175_12 feet; feet, more or less, to meander THENCE South 490 East to the point of beginning_ Subject to numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992_ ( FULFILLMENT ) Statutory Warranty Deed THE GRANTORS Howard V. Anderson, Jr., as his separate property and James Gualtieri, as his separate property, for and in consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and warrants to the City of Edmonds, a Washington municipal corporation, the following described real estate, situated in the County of Snohomish, State of Washington: PARCEL A: That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 560431 East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B: That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; NO, E- .vrSE [�X i!-!E TreasUrCi's F%c, i- .1. r5 L. i�f-`aa'd JDV134732.1X/0006.17053 ORIGINAL � � �`-� .10 2-R ohoroish Gnuot, r�' Deputy THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 51057r East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. Subject to numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December q, 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. By DATED this ---Y= on, Jr. STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) day of Jy9L By Q4ames Gualtieri On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and A4U—�� , 19Ly r ^ "OrARY IPU suc Op WASH\;. ►►r►i4�ilYL'' 7DW34732.1X/0006.17053 offic' 1 seal this bL day of 40TARY PUBLI y Appointment Expires: 6//- S STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and off = CO z -4- 10��•.:. : 4 p '••• i..•• �a, • W 10 +++i r1+ ASH �&N � i JDW34732.1w0006.17053 seal this � day of rARY PUBLIC ' Appointment Expires:G �� S- Commitment No. 039389 EXHIBIT B 1. EASEMENT and the terms and conditions thereof as reserved by instrument Recorded: November 17, 1952 Recording No.: 1045210 Purpose: Ingress and egress Affects: 30 feet in width, over the Easterly portion of Parcel C 2. RESERVATIONS AND OTHER MATTERS CONTAINED IN DEED Grantor: Howard V. Anderson and Mary Riley Anderson, his wife Recorded: November 17, 1952 Recording No.: 1045210 (Copy attached) 3. RIGHTS OF THE GENERAL PUBLIC to the unrestricted use of navigable waterways and the portion of the premises subject to submergence by the waterways for navigational and recreational purposes. 4. RIGHTS OF THE UNITED STATES AND THE STATE OF WASHINGTON to regulate the use or occupancy of that portion of the premises lying below the line of the mean high tide. 5. LATERAL BOUNDARY ISSUES regarding first class tidelands and shorelands. 6. EASEMENT and the terms and conditions thereof Purpose: Anchor and guy wire Affects: Parcel C Recorded: December 28, 1956 Recording No.: 1220021 7. AGREEMENT providing easement and party wall Between: Arthur V. Allbery and Verla L. Allbery, husband and wife And: Howard V. Anderson and Mary Anderson, husband and wife Dated: September 13, 1964 Recorded:: March 18, 1964 Recording No.: 1683284 Continued, Page 2 Commitment No. 039389 EXHIBIT B 8. RESERVATIONS CONTAINED IN DEED, whereby the grantor excepts and reserves all oils, gases, coal, ores, minerals, fossils, etc., and the right of entry for opening, developing and working mines, etc., provided that no rights shall be exercised until provision has been made for full payment of all damages sustained by reason of such entry; together with right of the grantor or any grantee or lessee thereof, upon paying reasonable compensation, to acquire rights of way for private railroads, skid roads, flumes, canals, water courses or other easement for transporting and moving timber, stone, minerals or other products from this or other property. Grantor: State of Washington Affects: Tidelands END OF EXHIBIT B (FULFILLMENT) Quit Claim Deed THE GRANTORS Howard V. Anderson, Jr., as his separate property and James Gualtieri, as his separate property, for and in consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and quit claims to the City of Edmonds, a Washington municipal corporation, any and all interest they may have or may hereafter acquire in that certain real property, including specifically their interest in reversionary rights as identified in an instrument recorded under Snohomish County Auditor's file number 1045210 which property is situated in the county of Snohomish, State of Washington and described as follows: PARCEL C• That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin on Main Street, formerly George Street, as shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where same intersects the Westerly line of Great Northern Railway right of way; THENCE North 61008' West a distance of 98.15 feet, more or less, along the extension of Southwesterly margin of Main Street to a point of intersection with the Government meander line; THENCE South 39031' West a distance of 26.60 feet along said Government meander line; THENCE South 66008 East a distance of 99.67 feet, more or less, to a point of intersection with Westerly line of right of way of Great Northern Railway Company; THENCE North 41004' East a distance of 17.86 feet along the Westerly right of way line to the True Point of Beginning. AND ALSO the following described tidelands of the first class, fronting Government Lot 2, Section 23, Township 27 North, Range, Range 3 East, W.M.; Beginning at a point on the Northwesterly production of Southwesterly margin of Main Street, formerly George Street, shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington where same intersects Westerly line of right of way of Great Northern Railway Company; THENCE North 61008' West a distance of 98.16 feet, more or less, along extension of Southwesterly margin of Main Stree ,., tp,— *q t VO $2. o JDW34732.1X/0006.17053_ 7 f) ORIGIN v� AL f intersection with the Government meander line and True Point of Beginning; THENCE continuing North 61008,1 West a distance of 310.63 feet, more or less, along extension of Southwesterly margin of Main Street to the point of intersection with the Inner Harbor Line; THENCE South 44059/30/1 West a distance of 56.48 feet along said Inner Harbor Line; THENCE South 660081 East a distance of 322.62 feet to the point of intersection with the Government meander line; THENCE North 39031' East a distance of 26.60 feet along said Government meander line to True Point of Beginning. Situate in the County of Snohomish, State of Washington. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December _�_, 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. By STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) lay of�., BY�mes Gualtieri On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN tR- undepr� my hand and official' seal this day of 14%.'.O\N :. aARY PUBLIC Appointment Expires: 4/.I r JDW34732.1X/0006.17053 STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. ,,nn GIVEN under my hand and rrr .y. Nprq�, w: rrrrn r�wASHiN�,.•'S offic' seal this L day of Y PUBLIC y Appointment Expires: • / L j - JDW34732.1X/0006.17053 ✓~SEAL ESTATE APPRAISERS. CONSULTANTS ANALYSTS RECEIVED 19 1 'f • SMITH COMPANY nu �� y�H �Y.D r10. 9Tt=697 -- VIJj� SEFi 16530 SHORE DR. N.E„ SEATTLE, WASHINGTON 9BI55-5631 [206) 363-7454 WM. A. SMITH, M.A.I- March 17, 1992 Mr. William J. Kasper, City Councilman City of Edmonds 505 Bell Street Edmonds, Washington 98020 Re: Anderson Property 100 Railroad Avenue Edmonds, Washington Dear Mr. Kasper: You have asked me to examine my value conclusions as set forth in my appraisal of September 10, 1991, in light of changes in total land area, including an increase in the uplands and a decrease in the tidelands area. I understand that a land survey dated May 19, 1988, was done by Lovell, Sauerland and Associates, Inc., wherein a total land area of 103,011 square feet, or 2.365 acres was indi- cated. I have not had an opportunity to review said survey, but it is my understanding that it did not make a division between up- land and tidelands area, however, this division apparently was accomplished by other means. You have requested therefore that my valuation of September 10, 1991, reflect the land area set forth above. Following will be found a schedule showing values of September 10, 1991, which were based upon the areas known then, and the land areas requested by you. Appraisal Current 9-10-91 Assumption Total S.F. Land Area 103,610 103,011 Uplands S.F. Area 45,129 64,988 Tidelands S.F. Area 58,481 381023 Value S.F. Uplands $21.00 $21.00 Tidelands $ 5.50 $ 5.50 Mr. William J. Kasper, City Councilman March 17, 1992 Page Two Appraisal Current 9-10-91 Assumption Total Value Uplands $ 950,000 $1,365,000 Tidelands 3251000 209.000 Total Land Value $1,275,000 $1,574,000 Based upon the current assumptions of 64,988 square feet of up- lands land area, and 38,023 square feet for tidelands area, a total value for the subject property is $1,574,000, say $1,575,000.4- Should you have any questions, please feel free to call. S i n c e r yours r Wm. A. Smith, MAI WAS/jl StNT BY:0Q0EN MURPHY WALLACE : 1- 5-83 ',11'-54AN P=-AL =&TAT-E AP;=AAIBEF16. WM. SMITH COMPANY 2004470215- 2007710221;0 2 0n jar }r A r.kf�} '��o''1 .� T� .^..ONGULTANTS & '411 I A M _. Y r� CnPrQ-tA- is NM 61-+01a0e7 l 15=30 5HORE ON. N.M., 5EATTPLE, WASHINGTON Sa15_-5a31 [20q 383-7454 1/VM. A. SM;TH. V'.A 1. Mr. William J. Kasper, City Councilman City of Edmonds 505 Bell Street Edmonda, Washington 9e020 Rs: Dear Mr. Kasper: January 24, 1992 RECEIVED J A N 7 1993 COMMUNITY SERVICES DIRECTOR Anderson Property 100 Railroad Avenue Edmonds,' Washington You have furnished me with the appraisal of the above property prepared by the Clarke -Consulting Group, and requested that I critique that document for adequacy, accuracy, soundness of ap- proach, techniques and conclusions as to.value. The appraisal document was very well written and prepared with abundant evidence of 'professionalism. A review of the document, however, revealed a few fundamental shortcomings. They are out- lined as follows: In .the Site Description section of the report, on page 11, the Appraiser rounds up the upland estimate of 56,505 square feat to 60,000 square feat, a difeerence of 3,,+95 square feat for an increase of slightly in exaess of 6%. While this does not seem signifioant, at a $27.50 er equare foot land value, this rounding represents a nearly V00,000 land value bonue. In estimating land value by the Sales Comparison Approach, it is noted that the Appraiser used four BaleB and one listing. Comparable Sale No. 1 is located at a "prime.commercial in- terBeeti.on in the Edmonds City Cen.er" and yet the Appraiser considers thin property to be 30% (upw'ard adjustment) infe- rior to the subject as to location as noted in table 4, the Comparable Sales AdjuEtment Grid. It is my opinion that Com- parable Sale No. 1 Is at least 30% superior to the subject from a-ocation standpoint, therefore requiring a downward adjustment, not an upward adjustment. Comparable Sale Bro. 2 is a listing and not a sale but the Appraiser failed to adjust for this fact. Real property SENT 9Y:OGDEN MURPHY WALLACE : 1- 543 :11:55AM 2C64470215-* 206771C221:# 3 Mr. William J. Kasper January 24, 1992 Page Two rarely Polls for.its asking price. It is interesting to note, that this property has been on the market for nearly two years, suggesting the price is too high aAdlor economic conditions are not favorable for near term development. Comparable Sale No. 3 is a good comparable since it Is a Waterfront parcel located near the downtown core of Winslow, similar tc the subject, but the analysis of this transaction is in error &a in Comparable Sale No. 1, because of loeatian. The Appraiser utilized an upward adjustment of 3QZ on this a ale, suggesting this sale to be 3az inferior to the subject property when in fact.Lhe two sites are somewhat comparable krom a ocation. standpoint. Comparable wales No. 4 and 5 are located in the south Lake Union area, clearly a vastly superior locavi.on as compared to the subject property. The sites a -re close to downtown deaVV61e, near -access to Interstate 5 and have greater activ- ity ;.han the subject, yet the Appraiser rates these Gales as only 109 superior. Additionally. Comparable Sale No. 4 has a 10% upward adjustment ;'or market conditions, With a Odle date of June of 1990, while Comparable Sale No. 5 has an upward ad fuetnent of 35% for the. sale dated. June of 1986. In making percentage adjustments, the comparable sales are always &djusted to the. subject. -. Attaohad to this letter will be found my abbreviated Comparable Sales Adjustment Grid utilizing the adjustments made by the Ap- praiser except for market cond�tione, location and recognising an adjustment for size ae well as reliability ae to Sale No. 2, since iD is a listing rather than a sale. It Will be noted that the ad- justed price per square foot of these five properties, after hav- ing been adjusted to the subject, range from $13.52 to $28.51 per Aquas foot. The Appraiser appropriately valued the subject property by the Land Hesidual Valuation -Technique. As explained in tre appraisal, this techniqua hypothatioally conatruote a building on tbo site conforming with. Highest and Beet Use, estimates rents and expenses and capitalizes the resulting na t Income into an indication of value for the whole property. By daducting an estimated cost 04 the building improvements, the left over or reaidual represente value to the lend. This technique is frequently used as a "support" for land value estimated by the comparison approaoh, and is alnoat a"".Ways�ue-ad in estimat_ng 7antbaveye thia8tecbnirue1le sales are limited or non existent. , q sound, however, too many assumpviors must be made to consider -this SENT BY:OQDEN NuR?HY WALLACE ; 1- 5-99 ;11:55AN ; 2004477215- 2007710221;9 4 Mr. William J. Kasper January 24, 1992 Page Three ae a reliabla techniquo. KnOwledgcab?a invrstore do use this technique in ane form or another, b4t typically aonaidgr a-muoh more conservative approa❑n, primarily in the eetlmation of rental rates, vacenoy, landlord expeneea +end c capitalisation rate. Th® Appraiser's analysis waa quite optimistic conaidering the CL:rrent economic conditions in the Puget Sound area, which has an abun- dance of office and rotaii eps❑e competing for tonante. These concerns ehculd be reflected in vacancy rate$ and the overall cap- italization rate. Thu Appraiser's calculations consider an eighteen month holding period for development and - rent -up, which 'at this time'appearn to be inappropriate. F0210wing will be found my abbrevlated I4Come and Expense State- ment utilizing the AppraiseT's praJectod ronte for retail, reatau - rant and office space, but making adjustments in the Jaoancy rate to ratloot current mdrket 0011ditionn. It ja noted that the net operating income is apprQxlmately $50,000 less than the Apprais- ers, Following will also ba reand n ran a of values utilizing an aperstiag inaQme of $787,500, and a 9%, and iC% .capitalization reetc, It is nate6 that the value rarga, after deduction of im- provement costs, le $760,870 to $1,635,000. Grace Income: Restaurant Retail 109000 20,000 S.F. @ $18.00 P.S.F. $-80,000, Office 30,000 S.F. 0 S.F. @ $13.00 $15.00 26o,oao 001_00 Total Gross Income $890,000 Less Vacancy: Restaurant. 2 j% $ -4, 500 Retail/Office 10% 7 1 , Ooo Total $ 75,500 ZffectiJ'e Grosa Income $$14',500 Less Ex enses: Roeervee 61000 Vacant Expense 0 $4.00 P.S_F. 21,000 Total $ 7 000 Net Operating Income $767,500 SENT BY:OLDEN MURPHY WALLACE + 1- 5-93 ;11:55AN 2064470215-4 2067710221;# 5 Mr: William J. Kaaper January 24, 1992 Page ,Four Property. �te Value Lass Indicated Improvement, Costa Land Valuv 92 $8,75D,000 $7,094,130 $1,655000 giz $81289,500 $7,,094,130 $1,195,370 102 $7,8759000 $7,094,130 $ 780,870 After a oareful review of the appraisal report prepared by the Clarke Conaulting Group, and making corrections as deemed appro- priate and explained above, it is my opinion that a knowledgeable and prudent inveator would be unwilling to pay no more than $1,250,000 for the subject property. Should you have any questions, please feel free to call. Sincere re, MA Smith, AI WAS/jl a. 0 a a m as a F-6 a a. a. a. w ti Iv c, a.....r. Cx e.. c ,. a Q F-+ • FI i+ • 1= co . C W . • C . • 0 1 CI CD �• m P 0 C9 c+ m rr W M kf e+- a' i-d 0- 'e? e} P- 'b ct C7 �.. y d W. 4 tJ y ti o 1� F'• a kJ o 5 n a C" m c► c+ 1D rr m a+ m Ir• W At 19 CD V1 U] C4 cc N• • N• 1 { O dt 1 {4 1 Eil•Lh C� iA lV n l•� O N %A3 V 24 Co as 000 00 a. V N • ZN N • O • hj � _ � t� � �7 si• C7 Iv �i 04 � if Fk — !►f • to O 1.►t. 40- 1 r *p, C7 m N lu O W O W O -J 1-4 ?U a s ra ao sv -� ae -- re iu o w W H \u vt Vt Vt µ O W trj] � ro t Eft O b� I ifs d -+ N Ef► I N N ca ) cl G x O %A s O t� -�+ Oil �] a,a a m b .o 00 oo 00 00 03 4 - a C7 W 4fiA. -; o. r^ v� n .9- 0 •-. Nb.•• C+ a O 00 N 00 Z A. 00 O .2 M%0 W 19 . A � n W � a s- I Nt t N ON 6!► 4*0 -4-4 N 0 a :z� �o .7aty� N ts as .per �r (� W rl !c+ P ti jininir e1-1nnn.!n l•!'Ir+ Appraisal Report Of: ANDERSON PROPERTY 100 Railroad Avenue Edmonds, Washington September 5, 1991 92 Wm. A. Smith, MAI REAL ESTATE APPRAISERS, CONSULTANTS 6 ANALYSTS W N. SMITH C II M PA N Y CORPORATE NO. 91-1010597 16530 SHORE DR. N.E., SEATTLE, WASHINGTON 38155-5631 [206] 363-7454 WM. A. SMITH, M.A.I Mr. Larry Naughten, Mayor City of Edmonds 505 Bell Street Edmonds, Washington 98020 Dear Mayor Naughten: September 10, 1991 Re: ANDERSON PROPERTY Iuu haliroaU Avenue Edmonds, Washington At your request, I have completed my investigation of the prop- erty identified above, which includes a site having 45,129 square feet of usable land upon which was constructed two frame build- ings constructed in 1910, 1950, 1955, 1963, 1967 and 1974, having a total of 16,183 square feet. The purpose of my investigation was to estimate the Fair Market Value of the Leasehold Estate. Fair Market Value is defined as: "The most probable price which a property should bring in a com- petitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus." Im- plicit in this definition is the consummation of a sale as of a specified date, and the passing of title from the seller to buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and each acting in what he considers his own best interest; c. a reasonable time is allowed for exposure in the open market; .y Mr. Larry Naughten, Mayor September 10, 1991 Page Two d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the property sold unaffected by special creative financing or sales concessions granted by anyone associated with the sale. The valuation figure rendered herein is based upon the fact that the property is free and clear of all other liens and encum- brances. This appraisal has been made in accordance with the Standards and Ethics of the American Institute of Real Estate Appraisers, and is subject to the Assumptions and Limiting Conditions contained on the following pages, and which are also make a part of this appraisal report. During the course of my investigation and analysis, I have checked sales of similar properties in the King County and south Snohomish County area, spoken with well informed persons familiar with real estate values, and inspected public records, all for the purpose of estimating the Fair Market Value of this property. On the following pages you will find the methods and reasoning used, along with other data used in estimating the value of the property. In the Addendum you will find photographs, details of sales and other supporting data to assist in the review of this report. By reason of my investigation, and by virtue of my experience and training, I have formed an opinion of the Fair Market Value of this property, as of September 5, 1991, as being: ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ....... ($1,250,000) WAS/ j 1 Sincerely yours;\ g� m. Smith, MA TABLE OF CONTENTS Introduction: Page The Appraisal - A Judgment Tool i Assumptions and Limiting Conditions ii Appraiser's Qualifications v Body Property Address 1 Legal Description 1 Brief Property Description 2 Ostensible Owner 2 Assessed Value 2 Tax Rate 2 1991 Real Property Taxes 3 Snohomish County Assessor's Parcel Numbers 3 Purpose of the Appraisal 3 Definition of Fair Market Value 3 Date of the Appraisal 4 Regional Data 5 Edmonds City Data 9 Neighborhood Description 11 Site Description 12 Highest and Best Use 13 Improvement Description 14 Land Value 15 Comparable Land Sale Analysis (Exhibits 1 - 9) 18 Comparable Land Sale Analysis (Exhibits 11 - 16) 22 Correlation and Conclusion 23 Appraiser's Certificate 24 Addendum: Exhibits Comparable Land Sales A Photographs B Aerial Photograph C INTRODUCTION THE APPRAISAL - A JUDGMENT TOOL The purpose of this appraisal report is to estimate Fair Market Value of the property rights outlined herein. Historically, Fair Market Value has a direct relationship to the anticipated future rental income from the property, which itself has a degree of risk in its realization. Thus, real estate investments do carry a degree of risk depending upon the burden of management, the degree of liquidity (or non -liquidity) and unexpected or un- anticipated outside influences. At any point in time, either prior to the effective date of this appraisal or subsequent thereto, conditions or circumstances, intrinsic and extrinsic, may change requiring the developer, subsequent owners and lend- ers, to analyze the risk as it may effect each. This appraisal therefore, offers only an opinion of the present worth of anticipated benefits, subject to known risks as measured by market data that is available on the effective date of this appraisal. An appraisal is an impartial opinion of value of a given parcel of real estate and does not fix or set the price of the property. As an opinion of value, an appraisal may be used as a negotiating tool between buyer, seller and/or lender. - The assumptions of the appraisal, unless otherwise defined, are that, as of the effective date hereof, the subject property is being operated on a stabilized basis as to the projected income and expenses, and that the property is under competent management on such date. If, for any reason, subsequent events, inter- national, national, regional or local, effect the value of the property, this Appraiser assumes no responsibility for the effect on value. i ASSUMPTIONS AND LIMITING CONDITIONS Except where expressly stated to the contrary, the following Assumptions and Limiting Conditions are governing upon this appraisal. 1. "NEITHER ALL NOR ANY PART OF THE CONTENTS OF THIS REPORT SHALL BE CONVEYED TO THE PUBLIC THROUGH ADVERTISING, PUBLIC RELATIONS, NEWS, SALES OR OTHER MEDIA, WITHOUT THE THE WRITTEN CONSENT AND APPROVAL OF THE AUTHOR, PARTICULARLY AS TO VALUATION CONCLUSIONS, THE IDENTITY OF THE APPRAISER OR FIRM WITH WHICH HE IS CONNECTED, OR ANY REFERENCE TO THE AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS, OR TO THE MAI DESIGNATION. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the client without the previous written consent of the Appraisers or the client and in any event, only with proper qualification. 3. The appraisers herein, by reason of this report, are not required to give testimony or attendance in court, or at any governmental hearing with reference to the property in ques- tion, unless arrangements have been previously made. �. That the legal descriptions furnished to the Appraiser are correct.• 5. That no survey was furnished the Appraiser. 6. That the title to the properties appraised in this report is good and marketable. 7. That the properties are appraised as if owned in fee simple title without encumbrance. 8. That any title evidence pertaining to easements, leases,' reservations and other parties -in -interest furnished the Ap- praiser is correct, but that no responsibility nor liability is assumed if proved otherwise. 9. That responsible ownership and competent management exists for the subject property. 10. That no guaranty is made for the accuracy of estimates or opinions furnished by others and contained in this report. The Appraiser has accepted as correct and reliable certain ii information provided by the employer, his counsel or his agent, which was used in preparation of the report. Other data came from sources believed reliable, but no responsi- bility nor liability is assumed for complete accuracy. 11. That no responsibility nor liability is assumed on account of matters of legal character affecting the property such as title defects, encroachments, liens, overlapping property lines, nor is any opinion on the title rendered herewith. 12. That the distribution of the total v4luation between land and improvements applied only to the utilization of the properties to their Highest and Best Use, as delineated in this report. 13. That the values assigned to improvements shown in this report are in proportion to the contribution said improve- ments make to the value of the properties, as a whole. The separate valuations for land and buildings must not be used in conjunction with any other appraisal, and are invalid if so used. 14. That compensations for appraisal service is dependent only upon delivery of this report. 15. That the values found by the Appraiser are in no way con- tingent upon the compensation to be paid therefore. 16. The type and grade of soils and subsoils mentioned in this report are believed to be correct from observation and knowledge of the area, but typing and analysis were not made. 17. The land, and particularly the soil of the area under appraisement, appears firm and solid except as noted. Sub- sidence in the area is unknown or uncommon, but this Ap- praiser does not warrant nor accept any liability if this condition should occur. Subsurface rights (minerals and oil) were not considered in making this appraisal. 18. That any plans and specifications furnished the Appraiser show intent of the building, but said Appraiser assumes no responsibility nor liability for their correctness. 19. The Appraiser inspected the building or buildings involved in this appraisal report, and damage, if any, by termites, dry rot, wet rot, or other hidden infestations or other occurrences not readily apparent are not his responsibility, and no liability is assumed for same. 20. That all analyses and conclusions in this report assumes and iii is based upon legal and conforming use, and that all permits required by local, state and federal regulatory authorities have been, or will be, issued based upon the plans and spec- ifications furnished the Appraiser. 21. That this appraisal report and its findings are for the exclusive benefit and use of the client, and may not be used for the benefit of any third party without the Appraiser's express consent. 22. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the Appraiser. The Appraiser has no knowledge of the existence of such materials on or in the property. The Appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other poten- tially hazardous materials may affect the value of the prop- erty. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. iv APPRAISER'S gUALIFICATIONS WM. A. SMITH. MAI BUSINESS AFFILIATIONS: Member, American Institute of Real Estate Appraisers (membership No. 2891) The American Institute of Real Estate Appraisers con- ducts voluntary program of continuing education for its designated members, MAI's and RM's. AS OF THE DATE OF THIS REPORT, WM. A. SMITH HAS COMPLETED THE REQUIREMENTS OF THE CONTINUING EDUCATION PROGRAM OF THE AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS. President, Washington -British Columbia Chapter No. 8, American Institute of Real Estate Appraisers, 1970 Member and Vice Chairman of Multiple Family Property Committee, American Institute of Real Estate Appraisers, 1964 - 1969 Member, Conventional Loan Committee, Mortgage Bankers Association 1964 - 1969 Member Seattle -King County Board of Realtors. BUSINESS HISTORY: President, Wm. Smith Company, Real Estate Appraisers, Consultants and Analysts, 16530 Shore Dr. N.E., Seattle, Washington 98155 (206) 363-7454, 1970 to present Vice President and Manager, Commercial Mortgage Loan Department Sherwood and Roberts, Inc., 1973 - 1975 Senior Vice President and Manager, Income Property Loan Depart- ment, Coast Mortgage Company, now known as Rainier Financial Services, Seattle, Washington, 1958 - 1970 Reviewing Appraiser, Income Loan Department, Pacific Northwest Mortgage -Loan Office, The Prudential Insurance Company of America, Seattle, Washington, 1953 - 1958 Real Estate Salesman, John Beck Realty, Everett, Washington, 1948 - 1953 EDUCATION: Associate Bachelor of Arts degree from Everett Junior College, Everett, Washington v Bachelor of Arts degree, Major Finance, University of Washington 1953 Real Estate Appraisal I, University of Washington 1960 Real Estate Appraisal II, Stanford University, 1958 Attended numerous courses and seminars relating to real estate appraisals. APPRAISAL EXPERIENCE: Since 1953, as real estate appraiser and reviewing appraisals of all types of income -producing real estate including but not limited to industrial buildings, shopping centers, retail stores, farms, service stations, furniture marts, trailer parks, mobile home parks, nursing homes, convalescent hospitals and special purpose properties including the Space Needle, Seattle, Washington APPRAISAL CLIENTS: The Prudential Insurance Company, Newark, New Jersey Metropolitan Life Insurance Company, New York, New York Bankers Life Insurance Company of Nebraska, Lincoln, Nebraska National Life Insurance Company, Montpelier, Vermont Penn Mutual Life Insurance Company, Philadelphia, Pennsylvania Teachers Insurance and Annuity Association, New York, New York Safeco Insurance Company, Seattle, Washington Bowery Savings Bank, New York, New York Lincoln Savings Bank, Brooklyn, New York Pacific First Federal Savings and Loan Assoc., Tacoma, Washington Metropolitan Federal Savings and Loan Assoc., Seattle, Washington Crown Life Insurance Company, Toronto, Canada Washington State Retirement System, Olympia, Washington State of Washington Highway Department, Olympia, Washington City of Seattle, Washington City of Bothell, Washington Washington Capital Corporation, Seattle, Washington Equitable Savings and Loan Association, Portland, Oregon Security Savings and Loan Association, Kent, Washington Columbia Federal Savings and Loan Assoc., Wenatchee, Washingtgn Chevron, U.S.A., Inc., Seattle, Washington CHG International, Inc., Tacoma, Washington Covenant Mortgage -Corp., Mercer Island, Washington Gillespie Investments Ltd., Vancouver B.C. Econo Mini Storage, Inc., Bellevue, Washington Business Parks Northwest, Seattle, Washington - PROFESSIONAL TERRITORY: Washington - Oregon - Alaska - Hawaii - Canada vi PROPERTY ADDRESS: The property address of the subject property is: 100 Railroad Avenue Edmonds, Washington LEGAL DESCRIPTION: Parcel A: That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the northwesterly production of the southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the westerly line of right-of-way of Great Northern Railway Company, thence southwesterly along westerly margin of said Great Northern right-of-way 17.86 feet to the TRUE POINT OF BEGINNING; thence north 66 degrees 08' east to a point of intersection with the inner harbor line, said point being south 45 Degrees west, a distance of 56.43 feet from the southwesterly margin of the northwesterly production of Main Street; thence south 45 degrees west 26.67 feet; thence south 56 degrees 43 east 310.09 feet, more or less, to a point of intersection with the Government Meander Line; thence in a southeasterly direction to a point on the west- erly margin of the Great Northern right-of-way which is 850 feet northeasterly on the south line of Government Lot 2, as measured along the westerly margin of the Great Northern right-of-way; thence northeasterly along the westerly margin of the Great Northern right-of-way to the TRUE POINT OF BEGINNING. Parcel B: That portion of Government Lot 2, Section 23, Township 27 North, Range,3 East, W.M. and the tidelands of the first class in front thereof, described as follows: Beginning at a point on the westerly line of the right -of- - way of the Great Northern Railway Company 650 feet northerly (measured along said right-of-way from the south line of said Lot 2; thence northerly, along said westerly line of the right-of-way, 200 feet; thence westerly at right angles to said right-of-way to a point in the meander line of of Puget Sound; thence north 56 degrees 43' west 315.09 feet, more or less, to a point on Inner Harbor Line; thence south 45 degrees west along said Inner Harbor Line 175.12 feet; thence south 51 degrees 57' east 330.28 feet, more or less, to meander line; thence south 49 degrees east to the POINT OF BEGINNING. All situate in the County of Snohomish, State of Washington. BRIEF PROPERTY DESCRIPTION: The property includes a site containing a total of 45,129 square feet of upland (usable land), according to the Snohomish County Assessor's Office, upon which is situated a sales office and warehouse building containing 16,183 square feet constructed in 1910, 50, 55, 63, 67 and 74.' Total site area, including tide— lands, is 103,610 square feet. OSTENSIBLE OWNER: The Snohomish County Assessor's Records show the taxpayer of the property to be in the name of Anderson Marine, Inc., and Howard V. Anderson, Jr. ASSESSED VALUE• The Snohomish County Assessor's Records show the following as— sessed values for 1991: Land $1,361,900 Improvements 150,500 Total Assessed Value $1,512,400 TAX RATE: The actual 1991 levy rate for this property is $14.05650 per $1,000 of assessed value. 2 1991 REAL PROPERTY TAXES: $21,259.05 SNOHOMISH COUNTY ASSESSOR'S PARCEL NUMBER: 232703-1-052 232703-1-038 232703-1-054 232703-1-040 PURPOSE OF THE APPRAISAL: The purpose of this appraisal is to estimate the Fair Market Value of the subject property, free and clear of all liens and encumbrances. DEFINITION OF FAIR MARKET VALUE: Fair Market Value is defined as: "The most probable price which the property improvements should bring in a competitive and open market under all conditions requisite toa fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus." Implicit in this defi- nition is the consummation of a sale as of a specified date, and the passing of title from the seller to buyer under conditions whereby: a. buyer end seller are typically motivated; b. both parties are well informed or well advised, and each acting in what he considers his own best interest; c. a reasonable time is allowed for exposure in the open market; 3 d. payment is made in terms of cash .in U.S. dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the leasehold improvements sold unaffected by special creative financing or sales concessions granted by anyone associated with the sale. DATE OF THE APPRAISAL: The date of this appraisal is September 5, 1991. The Appraiser assumes no responsibility for events occurring sub- sequent to the appraisal date which might effect the value of this property. 4 REGIONAL DATA Washington, traditional gateway to Alaska and the Far East, is a leader in the vital areas of aircraft production, nuclear re- search, lumbering and actual and potential waterpower production. It is also a land of rugged beauty that particularly appeals to lovers of the great outdoors. The cascade Mountains, running north and south, divide the state in two, the eastern part comprising about three -fifths of the to- tal area. The Olympic Mountains make up the northwest corner of the state, while the Puget Sound lowland lies between the Olympic Mountains on the west and the Cascade on the east. In the south- west corner is the Coast Range, which extends south into Oregon. East of the Cascades are the Rocky Mountains in the north and the Columbia Plateau in the south. Most of the state's larger cities, including Seattle and Tacoma, are in the western region along Puget Sound, an unusual two hun- dred mile arm of the Pacific Ocean; it varies in width up to forty miles and harbors more than three hundred islands. This area has a milder climate than any other in'the country that is as far north. Generally, the weather is drier in the east than in the west, which receives moist Pacific winds and considerable rainfall. Principal irrigated regions are in the Columbia Basin and the valleys of Walla Walla, Snake and Yakima Rivers. Washington is a leading producer of apples, wheat and hops. Livestock and livestock products make up a third of the total farm revenue, while commercial fishing is significant. Addition- ally, aerospace and its related industries contributes substan- tially to the overall economy of the state, with -the Puget Sound area dominating in that respect. Today, the state is diversifying its industry, with less depen- dency on federal defense spending. One area of concentration is the brisk tourist trade, which has gained greatly in recent years as more facilities are built to augment the exceptional hunting, fishing and skiing available. Mount Rainier, the Olympic Na- tional Parks and the Grand Coulee Dam National Recreation area, are among the major attractions. The Seattle Center, consisting of structures from the 1962 Century 21 Exposition, includes a monorail and 606 foot "Space Needle". Originally, Washington itself had been but the northern portion of the massive Oregon Country, the two states therefore share, for the most part, a common history. Conflicting British and American claims to the area threatened briefly to'trigger a war during the 1844 U.S. Presidential campaign. Candidate James K. Polk claimed that all the region south of latitude 54 degrees, forty minutes, belonged to the United States, and the cry of 5 "Fifty-four Forty or Fight!" was frequently voiced. But diplo- macy ultimately prevailed, and in 1846, Polk, as President, made a treaty with England setting the boundary at the present 49th parallel. Statehood came in 1889. Washington has had its share of hard times and controversy. The period after World War I was one of discontent and strife in the labor field. There were many disputes, especially between busi- nessmen and the Industrial Workers of the World (IWW), violence erupted at Centralia. During World War II, the state's sizable Japanese -American population suffered discrimination and disrup- tion, over 15,000 people were displaced eastward. In 1965, an earthquake struck, causing an estimated fifteen million dollars damage. Recently, on a sensitive and continuing source of fric- tion, the U.S. Supreme Court upheld the right of the state to regulate fishing by Puyallup and Ni.squally Indians in the inter- est of conservation, provided the state does not discriminate against the Indians in so doing. The Indians, who fish not only for their own needs but commercial as well, use "set" nets, which Washington has outlawed. Meanwhile the controversy surrounding the issue goes on. On May 1-8, 1980, the state of Washington waS severely impacted by an eruption of Mt. St. Helens, which is located approximately seventy-five miles south of Seattle. While being dormant for many years, for approximately three weeks prior to the eruption, the mountain experienced numerous earthquakes and tremors. The major eruption, which took place on May 18, 1980, devastated the immediate area surrounding the mountain, and particularly to the north, by literally blowing down hundreds of acres of timber and spewing volcanic ash, which affected.communities to the north and east as far as Yakima, Ellensburg, Ritzville and Moses Lake. The cascading ash and the melted snow flooded the Toutle River, which runs westerly from the mountain and which in turn flooded the Cowlitz River, which in turn flows into .the Columbia River. The millions of cubic yards of volcanic ash finally settling in the Columbia River reduced the maximum depth from forty feet to ap- proximately seventeen feet average, thus virtually stalling ship- ping on the river. The total cost of repairing bridges, roads and other properties affected by the eruption have been estimated to be two billion dollars. Not only has the timber industry been severely impacted, the headlines and television reports about the original eruption, and two subsequent eruptions have left the im- pression elsewhere throughout the country that much of the Pa- cific Northwest re -mains an ash choked waste land, thus severely affecting the tourist industry. It will be many months or years that full recovery from this devastation will be realized. Io- date, Seattle remains virtually unaffected because of the ash fallout, however, the economic effect of the eruption has been felt. I Shortly after the eruption of Mt. St. Helens, gloomy predictions suggested that a large part of Eastern Washington affected by the ash fallout would suffer immeasurably because of the chemical makeup of the ash and its affect on fertile soil. Indeed, many of Eastern Washington farmers did suffer because of the effects of the powdery substance on farm machinery, but is is interesting to note, that each year since, bumper crops have been the rule, rather than the exception, particularly as to our apples and wheat harvest. The commercial fishing industry in the Puget Sound area is in virtual shambles as a result of numerous judicial decisions, which have favored Washington Native Indians, as well as natural causes particularly as to weather. The catch of salmon and King crab has dropped by approximately seventy percent, and the Gover- nor recently declared that industry as a state of emergency, which will allow many to acquire loans at lesser than market rates in order to maintain their fishing equipment. The recent and dramatic drop in the mortgage loan rates has brought about vast improvements in the home building industry, which in turn has brought the lumbering industry back to life. The most recent unemployment figures available for the state of Washington, indicates a slightly less than nine percent level, which exceeds the national levels. A majority of this unemploy- ment is the result of the seriously affected three major indus- tries here in the Puget Sound area. While some of the news about the region sounds less than favor- able, there are some bright and strong areas that tend to compen- sate or even overshadow the negative aspects. Among these are the fact that. western Washington, particularly the Greater Seat- tle Area, has developed a strong service industry base. This in- cludes financial services such as banks and thrift institutions. Western Washington has also seen a phenomenal growth in high technology firms, particularly in computer component manufactur- ing and computer software. A number of bio-technology companies have been formed and have contributed significantly to the level of high technology development. One of the major forces in the economic stability and level of the region is.the boom in the demand for and sales of commercial jetliners, of which The Boeing Company in the Puget Sound area is the major player. The Boeing Company predicts a demand for jet- liners of more than 9,900 aircraft worth approximately 626 bil- lion dollars, enough to keep the factories in the Puget Sound and the 747 Plant in Everett joing into the year 2005. The forecast is up 27% from 1989. The Boeing Company controls about 60% of the world-wide market. At present the backlog for The Boeing Company is eighteen hundred jets worth 86 billion dollars. A significant part of that backlog is represented by the 747-400, 7 which is manufactured at the Everett plant. Present employment level in the Puget Sound Region is 81,000. A recent and significant development concerning the economy of the region was the announcement on April 17, 1984, of -the Navy's choice of Everett as being the base for an aircraft battle fleet. Construction is presently underway for the required pier, as well as the dredging necessary for the carrier fleet. Based upon the Navy's estimates, the total civilian and military employment . level upon completion of the base in 1992, will be 13,340• In spite of the economic ups and downs experienced, Washington state is still one of the most desirable areas in which to live and raise a family. The various school districts throughout the state take pride in the better than average learning -level and the enrollment demand for our institutions of higher learning at— tests to the general educational level from the lower schools. The recreational options available are virtually unsurpassed by any other state in the country. The fresh and salt water sports fishing is excellent; the number of bodies of water provide for superb Measure boatine7 the mountains provide excellent areas for snow skiiiio; the sparsely developed areas throughout the state of Washington are an unendint; source of game hunting; and finally, the unspoiled beauty of our forests and mountains are a natural for caniping and hiking, and the mild weather, both summer and winter, in many cases, allow these recreational activities to continue year around. In conclusion, the state of Washington with all of its natural beauty* has experienced problems of various types over the years, but has recovered admirably in each case. With the recent drop in interest rates, a dramatic increase in housing starts has been rioted, which has improved construction and lumbering activity here in the Puget Sound area. These conditions, along with the reduced cost of jet fuel, will improve the earnings of cowLercial airlines with an increased demand for new jet liners. It'appears that 1990, will be better from a business standpoint, than 1988 and 1989. EDMONDS CITY DATA Edmonds, located in the southwest.corner of Snohomish County, is situated between Puget Sound on the west and Pacific Highway 99 on the east. The Corporate City Limits extend southerly to the King -Snohomish County line, and is three miles north of the northerly City Limits of Seattle. The population, actual and projected, is as follows: 1940 Within City Limits 1,288 U.S. CENSUS 1950 1960 1970 PROJECTED 1989 2,057 8,016 23,998 30,000 Within County 88,754 111,580 172,199 265,236 3601000 Source of projection: City Projection from City Planning Depart- ment; County Projection from Technical Report #10, a supplement to Snohomish County's General Land Use Plan. Edmonds has a mayor -council form of government, and is highly ef- ficient from the standpoint of Zoning Ordinances and Building Codes. The Police Department has thirty-one employees, while the Fire Department has sixteen full time employees and thirty-five volunteers. Because of its location, Edmonds has over'the years become to be known as the ferry gateway to the Olympic Peninsula. Being on somewhat of a hillside, many of the properties within the city limits have a spectacular view westerly to the Puget Sound and the Olympic Mountain Range. The view and quiet small town atmo- sphere has helped to promote the reputation of the city as being a professor and retirement community, with many of the University of Washington professors maintaining a primary residence in the city. During the past fifteen years, and again due largely to the abun- dant view sites, the city of Edmonds has seen a spectacular growth in multifamily rental and condominium developments. A good share of this development has taken place along Fifth Avenue South, the main north/south arterial serving Edmonds from the King -Snohomish County area and Highway 99. The growth has been 0 so dynamic that at one time the City Council elected to impose a moratorium on further construction pending a study of needs, at- tempting to eliminate an over building situation. Probably one of the most interesting aspects of the commercial activity in Edmonds is the Milltown Shopping Center complex, lo- cated close to the downtown business district, which is a con- verted automobile repair and sales facility. The building has been extensively remodeled concentrating on the Old West motif, and numerous small shops occupy the building, which is surrounded by period antiques. Another interesting aspect of commercial development in the down- town business district of Edmonds is the Harbor Square develop- ment, 10.893 acres located on the south side of Dayton Street, between Sunset Avenue and Highway 104. This site has been devel- oped into nine detached buildings containing in excess of 156,000 square feet, and occupied by a variety of tenants in retail, of- fice and warehouse use. In addition, the site includes a fifty- nine unit motel. The city is served by virtually every major bank through branches that serve the major employment center in the area, Seattle. One of the major forces in the economic stability and level of the city of Edmonds and south Snohomish County is the boom in the demand for commercial jetliners, of which The Boeing Company in the Puget Sound area is the major player. The Boeing Company predicts a demand for jetliners of more than 9,900 aircraft worth approximately 626 billion dollars, enough to keep the factories in the Puget Sound and the 747 Plant in Everett going into the year 2005. The forecast is up 27% from 1989. The Boeing Company controls about 60% of the world-wide market. At present the backlog for The Boeing Company is eighteen hundred jets worth 86 billion dollars. A significant part of that backlog is repre- sented by the 747-400, which is manufactured at the Everett plant, ten miles north of Edmonds. Present employment level at the Everett Boeing Plant is 23,000. A recent and significant development concerning the economy of south Snohomish County was the announcement on April 17, 1984, of the Navy's choice of Everett as being the base for an aircraft battle fleet. Construction is presently underway for the re- quired pier, as well as the dredging necessary for the carrier fleet. Based upon.the Navy's estimates, the total civilian and military employment level upon completion of the base in 1992, will be 13,340• In conclusion, the city is well established and enjoys a good form of government, has a better than average school system, and enjoys above average demand for both single and multifamily fa- cilities. 10 NEIGHBORHOOD DESCRIPTION The subject property is located approximately two blocks south- west of the business district of Edmonds, in a neighborhood that is dominated by maritime activity including one of the largest pleasure boat moorage facilities in Snohomish County. Admiral Way and Railroad Avenue parallels that waterfront of Puget Sound, and properties on either side have been improved with marine re- pair facilities, as well as small pleasure boat sales, service and storage. To the north of Dayton Street, along Admiral Way, includes similar types of activities, but along with some multi- family structures built in the late sixties which enjoy a spec- tacular waterfront view. At the foot of Dayton Street, on Admiral Way, are two recently completed office buildings, one of which has a total of 16,500 square feet of gross area, and 13,200 square feet of net rentable area; and the other a 20,766 square foot combination retail, of- fice and restaurant building. The latter building has a total of 6,167 square feet in the lower, or ground level, in three struc- tures, and 14,599 square feet in the second floor. Both of the buildings have first class restaurant facilities on the top floor, which allows a view of Puget Sound. The Washington State Ferry System has a terminal adjoining the subject, and ferry service is between Edmonds and Kingston. Highway 104, provides direct access to the terminal from south Snohomish County and north King County. On the south side of Dayton Avenue, between Highway 104 and Admiral Way, is a site containing approximately eleven acres upon which has been constructed in the last ten years, eight ware- house, retail and office buildings containing a total of 160,000 square feet, in addition to a 28,000 square foot, fifty-nine unit motel building. This project, known as Harbor Square, was con- structed on land leased from the Port of Edmonds. Directly across the street east from the subject property is the Amtrak Terminal and a large parking lot. This lot serves primar- ily the walk-on passengers for the ferry. Adjoining the subject property to the south is the Regency on Edmonds Bay, a large combination office, retail and restaurant building which is -the subject of the comparable sale referred to later in this report. In conclusion, the neighborhood is outstanding from a location standpoint, being located near the downtown business district of Edmonds, and having excellent access to the local and regional arterial system. 11 SITE DESCRIPTION The subject site is an irregular shaped parcel of land located on the west side of Railroad Avenue, just south of Main Street in Edmonds, Washington. The site is generally level with a slight downward slope to the beach or water line of Puget Sound. The site has approximately 260 feet of frontage on Railroad Avenue, and a total depth of 397 and 400 feet, for a total site area of 103,610 square feet. The usable or upland portion of the site, however, is 175 feet in depth, for a total usable area of 45,129 square feet. The term usable or upland refers to the portion of the site which is buildable and usable above the high water line. The site dimen- sions and area are according to the Snohomish County Assessor's Office. All utilities are in and serving the site and include electrical power furnished by Snohomish County P.U.D., telephone furnished by General Telephone Company, water and sewer furnished by the city of Edmonds and natural gas furnished by the Washington Natural Gas Company. Zoning for the site is Commercial Waterfront which has principal permitted uses of marine and waterfront oriented developments. There is a minimum setback of fifteen feet landward. Access to the site is from Railroad Avenue which is a fifty foot right-of-way and allows parallel curb parking on the west or wa- ter side of the street. There are concrete curbs and sidewalks. Railroad Avenue turns into Admiral Way at approximately Dayton Street, south of the subject property. The site, as earlier noted, is located at the southwest corner of Railroad Avenue and Main Street and adjoins the Washington State Ferry Dock which accommodates numerous Puget Sound crossings from Edmonds to Kingston. The site therefore has excellent exposure to both pedestrian and vehicular traffic utilizing the ferry system. To the east of the subject property is a pay parking lot utilized primarily by ferry passengers. This parking lot is part of the Burlington Northern Railroad and Amtrak Terminal. Adjoining the subject property to the south is a large 42,118 square foot frame building occupied as retail, office and a restaurant. Other improvements on the water side of Railroad Avenue extending southerly to and including Admiral Way are multifamily resi- dences, office buildings, restaurant and the Port of Edmonds 12 Marina generally located southwesterly of Dayton Street. - A review of the Aerial Photograph, in the Addendum, will reveal the fact that the subject property is within two blocks of the downtown business district of Edmonds. HIGHEST AND BEST USE Highest and Best Use is often defined as: "That legal and feasi- ble use of land which may reasonably be expected to yield the highest net return to the land over a given period of time." Highest and Best Use is often dictated by the zoning as deter- mined by local authority. The subject property is zoned for Commercial Waterfront Use, which has a rather wide range of uses but with emphasis upon marine oriented developments. The neighborhood has a mixture of uses including industrial, of- fice and commercial, with the industrial use found primarily south of Dayton Street and on the east side -of Admiral Way. The uses in the immediate neighborhood include office, commercial and multifamily, all of which are oriented to the water. The Wash- ington State Ferry Terminal for the run between Edmonds and Kingston adjoins the subject property to the north. While the site is presently improved with a warehouse and sales building, these improvements do not contribute to the overall value of the land and therefore more intense development of the site should logically be considered. Should future development to a more intense use be appropriate, the development would have to receive approval by the city of Edmonds, as well as meeting all requirements of the Shoreline Management Act, which could prove to be difficult hurdles to overcome,. The city of Edmonds proposes acquisition of the site for the de- velopment of a city park. While this use is quite appropriate for city owned property, it does not meet the definition of High- est and Best Use since city parks are traditionally non -income producing, therefore could not yield a net return to the land., In concluding the Highest and Best Use, the Appraiser must there- fore adhere to the definition and ignore the potential or planned use by the city of Edmonds. Based upon the actual land use in the immediate neighborhood, and particularly on the west or water side of Railroad Avenue and Admiral Way, it is the Appraiser's opinion that the Highest and Best Use for the subject property is for either rental office or office condominium use. 13 IMPROVEMENT DESCRIPTION The site is currently improved with two detached buildings, a sales office containing 2,983 square feet, constructed in 1950, 1963 and 1967. A second building currently used as boat storage containing a total of 13,200 square feet, was constructed in 1910 and 1955. Both buildings are frame construction in fair to poor condition. It is the Appraiser's conclusion that the existing improvements on the site do not contribute value to the land and would probably cost as much to remove as they may be physically worth. 14 LAND VALUE Based upon the Appraiser's conclusions as to Highest and Best Use, the records of King and Snohomish County were searched for sales of comparably zoned land in Edmonds, as well as north King County and south Snohomish County. Nine sales were noted. The details of the sales are set forth in the Addendum, on pages A-1 through A-9, and which are further identified as Comparable Land Sales L-1 through L-9. The land parcels ranged in size of from 6,990 to 171,625 square,feet and ranged in sale price of from $5.97 to $27.77 per square foot. The sales ranged in date from March 1989 to March 1991. Since the properties differed in some respects as compared to the subject, to make a proper comparison these differences or dissim- ilarities, should be considered. Following this section will be found a Comparable Land Sale'Analysis, which sets forth the per- tinent details of the sale transactions, along with the Ap- praiser's estimate of adjustments for points of comparability or dissimilarity. Adjustments were made on the basis of percentage factors, with those factors less than 1.00 indicating superiority as compared to the subject, while those factors greater than 1.00 indicating inferiority. Thus, the Comparable Land Sales are ad- justed to the subject. The adjustments considered were location, time, size, topography, corner and traffic. The adjustments considered are defined as follows: Location takes into account the desirability of the overall neighborhood, compatibility of surround- ing improvements, proximity to traffic generating activity, as well as potential value enhancement. Time allows a 5% increment in value for each year of sale age to reflect value trends in land prices in Snohomish County. Topography acknowledges the superior topography feature of Comparable Land Sales and subject prop- erty. Size considers those sites substantially larger as being inferior, primarily from a marketability standpoint and conversely, those properties smaller. as being superior. 15 Corner recognizes the added value a corner site enjoys, due primarily to the heavier vehicular traffic and the less restrictive development re- quirements. Traffic, as a point of adjustment, attempts to consider the vehicular traffic volume passing the property. Waterfront attempts to recognize the possible added value of the waterfront feature for the subject prop- erty as compared to the Comparable Land Sales which have none. While under some circumstances, the water- front feature would be substantial as to a value increment, it is not, in the opinion of the Appraiser particularly true for the subject property since development of the site will be closely regulated and reviewed by not only the city of Edmonds, but also the state of Washington as to the Shoreline Management Act. It will be noted from the Comparable Land Sale Analysis that follows, that the adjusted prices for the nine sale transactions ranged from $11.63 to $26.65 per square foot. Comparable Land Sales L-4 and L-9 are both located either close to or in the downtown business district of Edmonds, while Comparable Land Sales L-2 and L-3 are more comparable from an overall size stand- point. Comparable Land Sales L-5, L-6, L-7, L-8 and L-9 are most comparable from a time standpoint, and Comparable Land Sales L-3 and L-9 are the most comparable from an overall adjustment stand- point. Relying more upon Comparable Land Sales L-4 and L-9 because of their location within the downtown area of Edmonds, and allowing appropriate consideration to the remaining Sales, it is the Ap- praiser's opinion that the upland portion of the subject, unim- proved has a value of $21 per square foot (45,129 S.F. x $21 P.S.F.j, or $949,600, say $950,000. To the above value for the upland portion of the site should be added the estimated value of the tidelands (see page Exhibit A-11b in the Addendum) of $5.50 per square foot (58,481 S.F. Tidelands x $5.50 P.S.F.), or $322,000, say $325,000. 16 RECAP Upland $ 950,000 Tidelands 325,000 Total Value $1,275,000 During the inspection of the subject property, the Appraiser noted the prominent for sale and lease signs on the property on the east side of Highway 104, north of Dayton Street. Upon in- vestigation, the Appraiser learned that the 99,700 square feet (2.28 acres) of land was improved with a parking lot and a "retail corner." While the property has frontage on Sunset Av- enue, or Highway 104, because of the ferry storage lanes adjacent to Sunset Avenue, access to the site is not possible from that street. Access is therefore possible only by Second Avenue South. In interviewing the owner, Mr. Robert Henning, it was learned that the asking price for the property was $25 per square foot. There have been no purchase offers made to date, however, there have been a few inquiries as to leasing the property. The asking price of $25 per square foot is in contrast to the esti- mated value of $21 per square foot for the upland portion of the subject property. 17 COMPARABLE LAND SALE ANALYSIS L a n d S a l e s _ L-5 L-6 L-7 L-8 L-9 7-90 8-90 9-90 3-91 6-90 161,300 171,625 95,830 104,800 14,400 $1,196,672 $1,025,000 $1,o63,532 $689,730 $400,000 $7.41 $5.97 $11.10 $6.58 $27.77 1.00 1.20 1.00 1.20 .90 1.20 1.20 1.15 1.15 .85 1.05 1.05 1.05 1.00 1.05 1.05 1.05 1.00 1.10 1.00 1.10 1.10 1.00 1.10 1.00 .90 1.00 1.00 1.10 1.00 1.20 1.20 1.20 1.20 1.20 1.57 2.10 1.45 2.20 .96 $11.63 $12.54 $16.10 $14.48 $26.65 The above analysis included nine sales of commercial owned land in north King County and south Snohomish County, with two of the sales located in Edmonds. None of these sales enjoyed the water- front feature of the subject, therefore, the search was extended to include recent sales of waterfront land or unimproved land in close enough proximity to waterfront so as to be affected by this feature. In that connection, the Appraiser learned of the sale of the adjoining property to the south, as well as five sales lo- cated in the Seattle area, specifically west of the Seattle Cen- ter and having frontage on Elliott Avenue West, approximately one block away from the waterfront of Elliott Bay. The properties are identified as Comparable Land Sales L-11 through L-16, and the details of these transactions are set forth in the Addendum on pages A-11 through A-16. Comparable Land Sale L-11, adjoining the subject property to the south, was a whole property sale where the buyer and seller were motivated not by interests in the land or building individually, but by the whole property. The technique used in estimating land value therefore required the Appraiser to estimate a .physical value of the building improvements, deduct appropriate deprecia- tion, with the balance left from the sale price being an equiva- lent land value. The techniques and calculations are set forth on the appropriate pages in the Addendum, pages A-11 through A-11b. It will be noted that the indicated price for land was $756,750. This was distributed between the uplands and tidelands as follows: Uplands 26,535 S.F. @ $17.00 P.S.F. $4501000 Tidelands 53,965 S.F. @ $ 5.50 P.S.F. 300,000 Total 80,500 S.F. @ $ 9.32 P.S.F. $750,000 Comparable Land Sales L-12 through L-16, had actual square foot sale prices ranging from $22.28 to $39.91 per square foot. These five sale transactions were not waterfront property but were in close proximity thereof. In order to value the subject, certain adjustments were appropri- ate and they are defined as follows: Location takes into account the desirability of the overall neighborhood, compatibility of surround- ing improvements, proximity to traffic generating activity, as well as potential value enhancement. MA Time allows a 5% increment in value for each year of sale age to reflect value trends in land prices in King County and Snohomish County. Topography acknowledges the superior topography feature of Comparable Land Sales and subject prop- erty. Size considers those sites substantially larger as being inferior, primarily from a marketability standpoint and conversely, those properties smaller as being superior. Corner recognizes the added value a corner site enjoys, due primarily to the heavier vehicular traffic and the less restrictive development re- quirements. Traffic, as a point of adjustment, attempts to consider the vehicular traffic volume passing the property. Waterfront attempts to adjust for the existence or lack of waterfront for the six sales, noting that Comparable Land Sales L-12, L-13, L-14 and L-16 have the Burlington Northern right-of-way, as well as the Elliott Bay and Myrtle Edwards Park separating the properties from the waterfront of Elliott Bay. The Comparable Land Sale Analysis which follows, sets forth the pertinent details of the six sale transactions and includes ad- justments noted above. The individual adjustments were combined and applied to the sale price per square foot, to arrive at an adjusted price per square foot. It will be noted from the Compa- rable Land Sale Analysis that the adjusted price per square foot ranged from $14.86 to $28.23 per square foot. Comparable Land Sale L-11 adjoins the subject property to the south, and under ordinary circumstances would be considered a very reliable indication of value, however, as earlier mentioned this property was sold with substantial building improvements lo- cated thereon, with neither buyer nor seller motivated by sepa- rate value for land or improvements. The technique used by the Appraiser of estimating physical value for the improvements and 20 including depreciation, with the remainder of the sale price pre- sumably an indication of land value, in theory is a sound and logical approach however, any miscalculation in estimating re- placement cost for the improvements would have a direct affect upon the indicated land value. Additionally, it is noted that the value of income producing properties such as Comparable Land Sale L-11 is based upon the Income Approach and the Appraiser's technique of residual land value assumes that the Physical Value and Income Value (approach) are nearly identical. Considering the short comings of the residual technique for valu- ing land for Comparable Land Sale L-11, it is the Appraiser's opinion that the technique and calculations were basically cor- rect and therefore the results reasonably sound and probably should carry greater weight in estimating value for the subject. Consideration for Comparable Land Sales L-12 through L-16 is ap- propriate but to a lesser extent than for Comparable Land Sale L-11. Based upon these six sale transactions, relying more upon Comparable Land Sale L-11, it is the Appraiser's opinion that the subject property, by comparison, has a value of $20 per square foot for the upland (45,129 S.F. @ $20 P.S.F.) or $902,580, say $900,000.. To this then should be added the earlier estimated value for the tidelands, also based upon Comparable Land Sale L-11, at $5.50 per square foot (58,481 S.F. @ $5.50 P.S.F.) or $325,000. Total estimated land value for the subject property is therefore: $1 , 225, 000 21 i a a� H cd 0 0 r- C\l 0 0 u, 0 0 Lc� o 41\ .D ON 0 0 0 00 00 o (D O C- kn 00 I o o I` T- r- T- C- o Cal o 1)9- i O1 0 0 O 00 0 O u, 0 0 0 0 cal 011 0 0 cal 00 00 O 0 00 C\l El- cl- I (\l 0 ,— o cat 0 -8+ iP� O 011 O T- 0 0 LCI\ O 0 W\ 0 .0 m OIN L, 00 ON 00 r- 0 0 0 C- r` m I \0 C\l ON m m O u, } 1A r- C- O Lc'� O O O O o Lr\ O ON 0 ON C` 0 W\ 00 ON O O O C- c- LIl C\l I Cal 0 Cat O O cal �- i O ON .O I` O 0 00 C\l O 00 O ON Lr, 0 O 0 0 u, o 011 .0 cn I o a` o cal C\l X\ 1)9- -6 r T- 41\ O chi O O O O O O O 011 m 011 cc) un u1 O OIN O 0 O O 011 (\l N 00 00 C\? Cal C\2 L(l Wd+ {�} ice} U �y FTi H O •• f� C!] •r-I ri 4-i N -li E-i +:) i]0 N 4 I F-I Q: N N N C) �:s U] cd N O 0 z 4-I N U +� N -H iS W U N F. Pi N cd -P rd ri cd •� �q W 41 O •ri •ri O 0 cd U !ti Q CQ P-i Ei a U) Ei Ei 0 Ei �R: F-i IZ, H w H cd .1i Ia r� cd cd O O rcl cf) U] Cl1 `. P, 0 � 22 CORRELATION AND CONCLUSION The Appraiser has concluded a value range for the subject prop- erty, unimproved, of from $1,225,000 to $1,275,000. The two techniques included comparing nine unimproved land sales without waterfront, having commercial zone, located in south Snohomish and north King County, two of which were located in the city of Edmonds. The valuation procedure was extended to include prop- erty in close proximity to waterfront to such an extent that this feature would influence value. The five sales included in this analysis were located in Seattle on Elliott Avenue, west of the Seattle Center. Adjustments were considered for location, as well as traffic volume. A third technique used in estimating value for the subject in- volved the property adjoining to the south, but required the Ap- praiser to subtract from the sale price the depreciated value of the improvements, with the remainder attributable to land value. It was concluded that this technique was the most reliable. The fifteen sales appropriately adjusted to compare with the sub- ject property lead the Appraiser to conclude a value for the sub- ject property, of: $1 250 000 23 APPRAISER'S CERTIFICATE I certify that to the best of my knowledge and belief, the statements of fact contained in this report are true and correct. the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal unbiased professional analyses, opin- ions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. my compensation is not contingent on an action or event re- sulting from the analyses, opinions, or conclusions in, or the use of, this report. my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the re- quirements of the Code of Professional Ethics and the Stan- dards of Professional Practice of the American Institute of Real Estate Appraisers. the use of this report is subject to the requirements of the American Institute of Real Estate Appraisers relating to re- view by its duly authorized representatives. I am currently certified under the continuing education pro- gram of the American Institute of Real Estate Appraisers. I have made a personal inspection of the property that is the subject of this report. no one provided significant professional assistance to the person signing this report. Respect. ftify su witted, Wm. A. Smith, MAI 24 ADDENDUM COMPARABLE LAND SALE: L-1 ADDRESS: 19237 Aurora Avenue North King County, Wa.shington LEGAL DESCRIPTION: Portion Lot 63, Richmond Highlands Addition ACCOUNT NUMBER: 728390-0573 72839o-o632 LAND USE: Office building, two story frame, built 1969, 1,361 square feet, value in land ZONING: ML LAND SIZE: 150' x 119'/130' LAND AREA: 18,620 Square Feet SALE DATE: June 5, 1989 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1064252 and 890605-0244 PRICE: $300,000 CASH EQUIVALENCY: $300,000 SALE TERMS: $6o,000 down, balance by seller GRANTEE: John Schneider GRANTOR: Elinor Svensen ANALYSIS: Sale price $16.11 per square foot. PPnPVPTv T)PT4TT..0 This property is located just south of the Snohomish -King County Line, approximately three and one half miles south and east of the subject property. The office building located on the site contributes little, if any, value to the land. Exhibit A-1 COMPARABLE LAND SALE: L-2 ADDRESS: 19500 Aurora Avenue North King County, Washington LEGAL DESCRIPTION: Lot 3, Block 1, Echo Lake Suburban Tracts ACCOUNT NUMBER: 222890-0020 LAND USE: Unimproved ZONING: CGP LAND SIZE: 121' x irregular LAND AREA: 32,966 Square Feet SALE DATE: July 28, 1989 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1075172 and 890728-1324 PRICE: $240,000 CASH EQUIVALENCY: $240,000 GRANTEE: National Investment Corporation GRANTOR: Lieurance, Pierre, et ux ANALYSIS: Sale price $7.28 per square foot. PROPERTY DETAILS: This property is located approximately two blocks north of Compa- rable Land Sale L-1, and approximately three and one half miles south and east of the subject property. The site was unimproved at the time of sale and rises about ten feet from east to west. Exhibit A-2 r nmP e R A RT.F LAND SALE • L-3 ADDRESS: 23805 Pacific Highway Edmonds, Washington LEGAL DESCRIPTION: Lots 5 through 7, Block 2, Fruitland Acres to Lake Ballinger, aka Lot 1, SP S-15-86 A00nTTVM MTTMBER• 519 002- 005-00 T AATn TTQV- ZONING: CG 4 - Unimproved LAND SIZE: 340' x 150' LAND AREA: 31,147 Square Feet SALE DATE: October 2, 1989 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 89-10/8718 and 891002-0401 PRICE: $436,058 CASH EQUIVALENCY: $436,058 GRANTEE: Schroeder - Washington Development Assoc. GRANTOR: Pong, Chi-Tsung, et ux ANALYSIS: Sale price $14.00 per square foot. PROPERTY DETAILS: This property is located approximately two and one half miles south and east of the subject property. This site has been im- proved with a new Video Blockbuster store and a three suite re- tail building housing a Subway Sandwich, restaurant and one va- cant space. The site immediately to the east has been improved with a large garden court apartment. Exhibit A-3 COMPARABLE LAND SALE: L-4 ADDRESS: 127 Fourth Avenue North Edmonds, Washington LEGAL DESCRIPTION: Lot 4, Block 6, Plat of Edmonds ACCOUNT NUMBER: 4344-006-004-00 LAND USE: Single family dwelling, one story frame, built 1915, 1,220 square feet, value in land. ZONING: BC LAND SIZE: 60, x irregular LAND AREA: 6,990 Square feet SALE DATE: March 20, 1989 E TAX NUMBER AND A/F NUMBER: 98-004158 and 890320-0361 PRICE: $106,000 CASH EQUIVALENCY: $1061000 GRANTEE: The Well Partnership GRANTOR: Jack Wiggens, et ux ANALYSIS: Sale price $15.16 per square foot. PROPERTY DETAILS: This property is located one half block north of.Main Street and adjoins a new multi -story office building and is across the street from secondary retail. Exhibit A COMPARABLE LAND SALE: L-5 ADDRESS: 20900 block of 44th Avenue West Lynnwood, Washington T T.10 AT T% 00DTnMTnW f th S E t f th S E ACCOUNT NUMBER: Portion o e . Quar er, o e Quarter, Section 21, Township 27, Range 04 (Tax Lots 51 and 74) aka Lots 2 and 3, SP # 128 (6-74) 212704-4-051 212704-4-074 LAND USE: Unimproved ZONING: BC LAND AREA: 3#703 Acres (161,300 S.F.) SALE DATE: July 27, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1015511 and 900727-0567 PRICE: $1,196,672 CASH EQUIVALENCY: $1,196,672 GRANTEE: Quadrant Taiyo Assoc. GRANTOR: Trade Center Assoc. ANALYSIS: Sale Price $7.41 per square foot. PROPERTY DETAILS: This property is located in the southerly.portion of Lynnwood, just south and east of Interstate 5, in an area that is dominated by two new high-rise office buildings. This property has since been partially developed with a parking garage serving the two office structures. The site has good visual exposure from both Interstate 5 and 44th Avenue West. Exhibit A-5 COMPARABLE LAND SALE: L-6 ADDRESS: 2400 block of 196th Street S.W. Lynnwood, Washington TVnAT nVQnDTDTTnM P t' n of the AT V.Quarter of the N.W. ACCOUNT NUMBER: or io , Quarter, Section 23, Township 27, Range 04 232704-2-021 LAND USE: Unimproved ZONING: BC LAND SIZE: 500' x 200' LAND AREA: 3.94 Acres (171,625 S.F.) SALE DATE: August 17, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1016832 and 900817-0105 PRICE: $1,025,000 CASH EQUIVALENCY: $11025,000 GRANTEE: K.C. Martin Automotive Service Co., Inc. GRANTOR: Executive Funding Corp. ANALYSIS.: Sale price $5.97 per square foot. PROPERTY DETAILS: This property is located on the south side of 196th Street S.W., between 24th and 28th Avenue West. The site is somewhat rectan- gular in shape except for the corner portion which was improved with a service station and is now closed. This site is unim- proved and the southerly property line represents the southerly Lynnwood City Limits. Exhibit A-6 COMPARABLE LAND SALE: L-7 ADDRESS: 2600 block of 182nd Street S.W. Lynnwood, Washington LEGAL DESCRIPTION: Portion Lot 1, Block 3, Alderwood Manor # 3 ACCOUNT NUMBER: 3728-003-001 LAND USE: Unimproved ZONING• C-2 LAND SIZE: 280' x 780' LAND AREA: 2.20 Acres (95,830 S.F.) SALE DATE: September 7, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A F NUMBER: 1018222 and 900907-0430 PRICE: $1,063,532 CASH EQUIVALENCY: $1,063,532 GRANTEE: Keg Restaurants U.S., Inc. GRANTOR: Tony Benvenuti, et al ANALYSIS: Sale price $11.10 per square foot. DDnDLIT) mV T1Dm A TT Q . This property is located in the northeasterly portion of Lynnwood, approximately two blocks north of the Alderwood Mall property. The site is unimproved and is just north of a new motel known as The Residence Inn. The site has frontage on Alderwood Mall Boulevard. Exhibit A-7 COMPARABLE LAND SALE: L-8 ADDRESS: 1120 164th Street S.W. Mill Creek, Washington LEGAL DESCRIPTION: Lot 3, Block 6, Alderwood Manor # 10 ACCOUNT NUMBER: 3737-006-003 LAND USE: Office building built 1925, value in land. ZONING: CB LAND SIZE: 150.15' x 550' LAND AREA: 2.41 Acres (104,800 S.F.) SALE DATE: March 15, 1991 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1003253 and 910315-0131 PRICE: $689,730 CASH EQUIVALENCY: $689,730 GRANTEE: Hilltop Properties GRANTOR: Laurence S. Wilmot ANALYSIS: Sale price $6.58 per square foot. PROPERTY DETAILS: This property is located in Snohomish County, just east of Inter- state 5 in the Martha Lake area. Improvements along 164th Street S.W. vary from personal service office buildings to service sta- tions. This site is presently improved with a retail center ap- proximately 60% complete. Exhibit A-8 COMPARABLE LAND SALE: L-9 ADDRESS: Northeast corner 2nd and Main Street Edmonds, Washington LEGAL DESCRIPTION: Lots 1 and 2, Block 12, Plat of Edmonds ACCOUNT NUMBER: 4344-012-001 LAND USE: Unimproved ZONING: BC LAND SIZE: 120' x 120' LAND AREA: 14,400 Square Feet SALE DATE: June 6, 1990 E TAX NUMBER: 11801 PRICE: $400,000 CASH 'EQUIVALENCY: $400,000 GRANTEE: P & L Enterprise GRANTOR: First Western Development ANALYSIS: Sale price $27.77 per square foot. 1D1:)n'DV1:)MV T)VTATT Q. This property is located directly across the street west of the post office in the downtown business district of Edmonds. The site is currently being used as parking for post office employees. Exhibit A- ft M Lip► ■.Vft COMPARABLE LAND SALE: L-11 ADDRESS: 144 Railroad Avenue Edmonds, Washington LEGAL DESCRIPTION ACCOUNT NUMBER: Portion Government Lot 2, Section 23, Township 27, Range 3 232703-1-041-0008 232703-1-055-0001 LAND USE: Three story frame building occupied as retail, office and restaurant, 28,596 square feet, plus 13,522 square feet covered parking, built 1982. ZONING: CW (Waterfront Commercial) LAND SIZE: 200' x 400'/405' LAND AREA: 80,500 S.F., including 26,535 S.F. of uplands SALE DATE: February 1, 1991 Exhibit A-11 INSTRUMENT: Warranty Deed V TnV UTTMBER• 91-01349 PRICE: PR4NTVV. $2,150,000 CASH EQUIVALENCY: Waterfront Park Assoc.', Inc. GRANTOR: P & M Associates $2,140,000 ANALYSIS: Indicated square foot land value $28.52. PROPERTY DETAILS: This building adjoins the subject property to the south and is improved with a two story frame building having 4,900 square feet of retail space and 13,522 square feet of covered parking on the main level, 12,580 square feet office space on the second level, and 11,116 on the third level. Following will be found the cal- culations used in estimating a depreciated value of the improve- ments based upon building use. The building costs were developed from the Marshall and Swift Valuation Service and included eleva- tor and sprinkler system. The depreciated improvement value of $1,393,250, indicates a land value of $756,750, based upon a sale price of $2,150,000. The indicated land value is equivalent to $28.52 per square foot of upland area and $9.40 per square foot overall area, including the tidelands. Details of the calculations are located in the Appraiser's files. ASSESSED VALUE: Year Use Type Retail Covered Parking Office Restaurant Land Improvements Total S.F. Area 4,900 13,522 12,580 11,116 1991 $ 796,000 1,904;2100 $2,700,100 Adjusted $47.59 23.91 51 .02 56.83 Cost New $ 233,200 323,300 641 9800 631,750 Exhibit A-11a Less Depreciation: 9 Year Age 40 Year Life Deferred Maintenance Depreciated Value Add Paving & Landscaping Depreciated Improvement Value Sale Price Indicated Land Value Indicated S.F. Land Value; Uplands Overall, including tidelands Appraiser's Distribution of Value: 26,535 S.F. Uplands @ $17.00 P.S.F. 53,965 S.F. Tidelands @ $5.50 80,500 S.F. Total �$ 411,750) 100,000) $1,318,250 $ 75,000 $1,3930250 $22150,000 $ 756,750 $28.52 $9.40 $ 455,000 300,000 $ 755,000 The value for the Uplands was based upon the value conclusions for the subject property to the north which ranged from $20.00 to $21.00 Per Square Foot as set forth on pages 16 and 21 of this report. Due to the substantially superior visual exposure of the subject site, the appraiser concluded a value of $17.00 Per Square Foot for the Upland portion of this site with the remainder attributable to the Tidelands. Exhibit A-11b COMPARABLE LAND SALE: L-12 ADDRESS: Northwest corner West Elliott Avenue, west of Prospect Street Seattle, Washington LEGAL DESCRIPTION: Portion Lots 16 through 19, Block 29, TOGETHERWITH Lots 20 through 23, Block 29, Northern Addition ACCOUNT NUMBER: 616990-1775 LAND USE: Two warehouse buildings, value in land. ZONING: I-G LAND SIZE 160' x irregular LAND AREA: 29,176 Square Feet SALE DATE: June 5, 1990 INSTRUMENT: Contract E TAX NUMBER AND A/F NUMBER: 1138982 and 900605-0981 PRICE: $650,000 CASH EQUIVALENCY: $6501000 SALE TERMS: $200,000 down GRANTEE: Chuan TA Investment GRANTOR: The Home Oil Company ANALYSIS: Sale price $22.28 per square foot. TDPnID PTV nPTATT.Q. This property is located west of the Seattle Center on the west- erly side of Queen Anne Hill. The building improvements located on the site are functional, however, they contribute little, if any, to overall value. The Burlington Northern Railroad right- of-way and Elliott Bay Park separates this site from Elliott Bay. Exhibit A-12 COMPARABLE LAND SALE: L-13 ADDRESS: 600 Elliott Avenue Seattle, Washington LEGAL DESCRIPTION: Lot 12, Block 24, Supplement Plat of B. Kinnear's Addition ACCOUNT NUMBER: 387990-1705 387990-1710 387990-1715 LAND USE: Two old buildings, value in land. ZONING: C 140' LAND AREA: 20,277 Square Feet SALE. DATE: January 25, 1991 INSTRUMENT: Contract E TAX NUMBER AND A/F NUMBER: 1173365 and 910125-1269 PRICE: $660,000 CASH EQUIVALENCY: $6601000 SALE TERMS: $178,000 down GRANTEE: Elliott Bay Joint Venture GRANTOR: Elbert L. Butcher, et ux ANALYSIS: Sale price $32.55 per square foot. PpnpvpTv nPTATT..C. This property is located south of Comparable Land Sale L-12. The building improvements on the site contribute little, if any, value to the site. There is contemplated four, two story build- ings, containing a total of 12,000 square feet and forty-eight dwelling units to be erected upon the site. Exhibit A-1 COMPARABLE LAND SALE: L-14 ADDRESS: Elliott Avenue West and West Mercer Street Seattle, Washington LEGAL DESCRIPTION: Lots 1 through 7, Block 155, Seattle Tide Lands Addition to city, S.E. Quarter, Lot 9, ALL of Lots 10 through 12, Block 32, Kinnear's Addition ACCOUNT NUMBER: 387990-2310 766620=2060 LAND USE: Vacant ZONING: IC 45 LAND SIZE: 534.59'x irregular LAND AREA: 106,659 Square Feet SALE DATE: July 18, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1146716 and 900718-1215 PRICE: $4,257,280 CASH EQUIVALENCY: $4,257,280 GRANTEE: Moon & Hart, A. Hawaii GRANTOR: Blackstock Properties ANALYSIS: Sale price $39.91 per square foot. PROPERTY DETAILS: This is the Blackstock Lumber property with the improvements hav- ing been destroyed by fire approximately three years ago. The site is separated from Elliott Bay by the Burlington Northern Railroad right-of-way. Exhibit A-14 COMPARABLE LAND SALE: L-15 _ADDRESS: 2nd Avenue West, south of West Thomas Seattle, Washington LEGAL DESCRIPTION: Lot 9, Block 17, D. T. Denny's Waterfront Addition ACCOUNT NUMBER: 198920-0890 LAND USE: Unimproved ZONING: NC3-65 LAND SIZE: 60' x 120' LAND AREA: 7,200 Square Feet SALE DATE: October 22, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A F NUMBER: 1161075 and 901022-0961 PRICE: $200,000 CASH EQUIVALENCY: $200,000 GRANTEE: First Pioneer Realty GRANTOR: Harold P. Hansen, et ux ANALYSIS: Sale price $27.78 per square foot. PROPERTY DETAILS: This property is located just off of Western Avenue, before it merges with Elliott Avenue. This site is currently being used as a parking lot. Exhibit A-1 COMPARABLE LAND SALE: L-16 ADDRESS: Elliott Avenue West, southeast of West Prospect Street Seattle, Washington LEGAL DESCRIPTION: Lot 6, Seattle Tidelands and Portion of Lots 9 and 10, Block 30, Supplement Plat of G. Kinnear's Addition ACCOUNT NUMBER: 387990-2145 LAND USE: Now vacant ZONING: IC 45 LAND SIZE: 50' x 150' LAND AREA: 7,400 Square Feet SALE DATE: October 25, 1990 INSTRUMENT: Contract E TAX NUMBER AND A/F NUMBER: 1161590 and 901025-0446 PRICE: $200,001 CASH EQUIVALENCY: $200,001 GRANTEE: Blackstock Properties GRANTOR: Stanley Murray ANALYSIS: Sale price $27.02 per square foot. TDPnD VMV T)7MATTO . This property, along with adjoining property, makes up the new Blackstock Lumber Company property. The Burlington Northern Railroad right-of-way separates this property from Elliott Bay. Exhibit A-16 M Op _ x���x- _.• fir � , View of SUBJECT PROPERTY looking southwesterly from across Rail- road Avenue and Burlington Northern Railroad right-of-way. Street scene looking southerly down Railroad Avenue, SUBJECT PROP- ERTY on right, Burlington Northern Railroad right-of-way on left. Exhibit B J Appraisal Report Anderson Marine .Rw November IS, 1991 File 134198 L-14 Nicholas H. Vemsow, MAI THE CLARKE CONSULTING GROUP Real Estate Advisors THE CLARKE CONSULTING GROUP 100 Second Avenue S. • Suite 320 • Edmonds, Washington 98020 Telephone (206) 774-5954 • Fax (206) 672-1818 November 15, 1991 Mr. Howard Anderson Anderson Marine 100 Railroad Avenue N. Edmonds, Washington 98020 Re: Anderson Marine Property 100 Railroad Avenue North Edmonds, Washington Dear Mr. Anderson: A fully documented narrative appraisal, prepared with the intent to comply with the -i Standards of Professional Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation has been completed. This appraisal report has also been prepared with the intent to comply with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) governing appraisals used for federally related transactions. Based on an inspection of the property, and the investigation and analyses undertaken, recognizing the assumptions and limiting conditions contained in the following report, it is ,. concluded the subject property has a Market Value as follows: .11 Market Value - Fee Simple Interest "As Is" (11115191) $2,250,000 Mr. Howard Anderson Page 2 November 15, 1991 File 134198 The value estimates in this report are derived from an appraisal, which is an opinion Of value. Although it is an impartial and reasoned conclusion, based on relevant evidence, it is still an opinion. The property may sell for something more or less than this figure because of varying requirements of buyers and sellers, fluctuating market conditions, and the imprecise nature of the real estate market. This appraisal service is intended to result in an analysis, opinion and conclusion of a disinterested third party, and is therefore classified as an appraisal assignment. Market Value estimates are in terms of cash or equivalent to cash. We hope you will find the details of this narrative appraisal relevant to your decisions. Thank you for this opportunity to be of service. Respectfully Submitted, j THE CLARKE CONSULTING GROUP Real Estate Advisors Nicholas H. Veens /a-,MMk1 KBC/NHV:f n TABLE OF CONTENTS SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS ... . ........ . .... i PREMISES OF THE APPRAISAL ................ • .................... iv SUMMARY OF ECONOMIC OVERVIEW SEATTLE/EVERETT AREA ....... 1 CITY OF EDMONDS............................................... 3 ! NEIGHBORHOOD DESCRIPTION .................................... 5 sGeneral Area Description ....................................... 5 Access...................................................... 5 Zoning..................................................... 6 Historical Development Patterns .................................. 6 Anticipated Development Patterns ................ 6 ................ 7 Locational Desirability ....................................... _ .. 8 Conclusion ....... • ...... 8 SITE DESCRIPTION ............................................... 9 Location.................................................... 9 Immediate Surroundings ................................... - - ... 9 Shape................... ........................... 10 Access/Frontage............................................. 11 Public Transportation ......................................... 11 Grade/Slope................................................ 11 View Potential ............................................... 11 FloodZone ................................................. 11 THE CLARKE CONSULTING GROUP Real Estate Advisors Table of Contents Utilities and Services .......................................... 11 Zoning ........ 11 Mitigation/Moratorium ............ . . . . . ....................... 13 Covenants ........................................ ......... 13 Easements .................................................. 13 Special Assessments ........................................... 14 Assessed Value/Real Estate Tax ................................. 14 SiteUtility .................................................. 14 Summary................................................... 14 IMPROVEMENTS DESCRIPTION .................................... 16 Overview ................................................... 16 Repair/Storage Facility ......................... . .. . ........ . .. 16 Showroom/Office Building . . ..... . ........................ 17 Other Improvements ..................................... • . _ . 18 Functional Utility ............................................. 18 Condition ................................................ 18 Economic Life .. ............................... 19 Summary........................ ..................---- 19 HIGHEST AND BEST USE ANALYSIS .... . ........................... 20 AsVacant .................................................. 21 As Improved ................................................ 23 Conclusion .................................................. 23 PROPERTY VALUATION ...... .................................... 24 SALES COMPARISON APPROACH ......... . ........................ 26 Comparable Sales Data .................. . ..................... 27 Residual Land Value Analysis ................................... 43 SUMMARY, FINAL VALUE ESTIMATE .............................. 47 CERTIFICATION-NICHOLAS H. VEENSTRA, MAI .............. . ....... 52 PROFILE OF PROFESSIONAL EXPERIENCE-NICHOLAS H. VEENSTRA, MAI 53 PROFILE OF PROPERTY TYPES/SERVICES AND GEOGRAPHIC AREAS SERVED ................................... 57 PROFILE OF CLIENTS ............................................ 58 ADDENDA...................................................... 59 THE CLARKE CONSULTING GROUP Real Estate Advisors INDEX OF TABLES Table I - Uplands and Tidelands Square Footage .................... . . 11 Table H - Real Estate Taxes ..................................... 15 Table III - Summary of Land Sales ........................ _ ....... 30 Table IV - Improved Property Value Analysis ........................ 47 Table V - Cost Comparisons ..... . ............................ _ .. 48 Table VI - Residual Land Value Analysis ............................ 49 THE CLARKE CONSULTING GROUP Real Estate Advisors c^. 03 n� r- c cn Z O� SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Assignment Overview The purpose of this appraisal is to estimate the market value of Anderson Marine, Inc., a commer- cially oriented waterfront property located in Edmonds, Washington. The ownership interest appraised is the fee simple interest. It is understood that this appraisal will be used for internal analysis and decision malting. Site Description The subject is situated adjacent the south side of the Washington State Ferry Terminal in Edmonds, Wash- ington. All city utilities are available and the parcel is zoned CW, Commercial Waterfront, by the city of Edmonds. Of the 103,427 square feet of total land area, approximately 60,000 square feet is considered to be uplands, and about 43,427 square feet is consid- ered submerged tidelands. The majority of the site is currently devoted to outdoor storage of boats, and improved with asphalt paving. The site is generally rectangular, but somewhat irregular in shape, and has a level topography. File 134198 1 THE CLARKE CONSULTING GROUP Real Estate Advisors Summary of Important Facts and Conclusion Improvements Description The current improvements under utilize the develop- ment potential of the site, and are thus not consid- ered to be the highest and best use of the subject at this time. The two structures include a warehouse used for the storage and repair of boats, containing 13,200 square feet. Also on the property is a smaller showroom building with an office area, containing a total of 3,016 square feet, built in phases from 1960 to 1967. Further improvements include asphalt paving, perimeter fencing, and a boat lift. Highest and Best Use After considering various factors including location, surrounding land use patterns, zoning, and uplands versus tidelands ratio and site utility, it is concluded the highest and best use of the site is for redevelop- ment devoted to mixed use activity offering a combi- nation of commercial and office space, and possibly residential condominium development as well. Indications of Value Sales Comparison Approach Market Value $2,250,000 Income and Cost/Feasibility Approaches Considered, but not used. The underlying land value of the subject exceeds the improved value of the property. As a result, a prospective investor would not purchase the subject for its income -generating potential in its current configuration. Recognizing the highest and best use of the subject is to demolish the existing improvements and develop a mixed -use facility, valuation by the Income and Cost/Feasibility Approaches are not applicable. Date of Value Date of Report November 15, 1991 November 15, 1991 File 134198 11 THE CLARKE CONSULTING GROUP Real Estate Advisors PREMISES OF THE APPRAISAL Appraisal Guidelines This appraisal is a self-contained narrative appraisal report, prepared in accordance with the Standards of Professional Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. This appraisal report has also been prepared with the intent to comply with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) governing appraisals used for federally related transactions. Valuation Model Within this appraisal market value is estimated recognizing three potential conditions of real estate: ♦ Stabilized Occupancy: ♦ Construction Completion: File 134198 the time at which the subject is operating at a stable level of occupancy and income. applicable if the subject is proposed construction, under- going renovation or change of use. iii THE CLARKE CONSULTING GROUP Real Estate Advisors Premises of the Appraisal ♦ "As Is": recognizes current occupancy, income and physical condition; or representing land only (or land plus development effort) for proposed improvements. The value estimates corresponding to these conditions may reflect retrospective, current, or prospective valuation dates. The subject property is currently underimproved and the land value exceeds the improved property value. As a result, the "As Is" value of the subject (land value only) is estimated in this report. Scope of the Appraisal The scope of this assignment is to conduct sufficient research and analysis in order to provide a fully documented, self-contained narrative appraisal, in compliance with the Standards of Professional Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. Purpose and Use of the Appraisal The purpose of the appraisal, or objective of the assignment, is to estimate the Market Value of the subject property recognizing the assumptions and limiting conditions within this report. The purpose of the report is to communicate the data and reasoning that leads to the conclusion of value. The use of the appraisal is for internal decision making purposes. Competency Provision This appraisal has been performed by Nick Veenstra, MAI, who has the knowledge and experience necessary to complete this assignment competently in accordance with the Competency Provision within the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. Definition of Value The definition of Market Value used herein is the standard definition adopted by the Office of Thrift Supervision, as set forth in Title 12 of the Code of Federal Regulations 564.2 (f): 'Market Value means the most probable price which a property shall bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: File 134198 lv THE CLARKE CONSULTING GROUP Real Estate Advisors Premises of the Appraisal a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and each acting in what he considers his own best interest; a a reasonable time is allowed for exposure in the open market; d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and c. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale " Identification of Real Property Rights Real property includes the interests, benefits, and rights inherent in the ownership of physical real estate. An appraisal assignment may require the appraisal of an estate without limitations or restrictions (fee simple), or a partial estate (leased fee, leasehold, easement, etc.). All estates, whether complete or partial, are subject to four powers of government: taxation, eminent domain, police power, and escheat. Significant property rights are defined as follows: Fee Simple: An estate without limitations or restrictions. Leased Fee: A property held in fee with the right of use and occupancy conveyed by lease to others. Leasehold: The right of a lessee to use and occupy real property by virtue of a lease agreement. In this case, this appraisal pertains to the property rights of a fee simple estate. Identification of Real Estate The subject of this appraisal is Anderson Marine, located at 100 Railroad Avenue North in Edmonds, Washington. Legal Description The subject contains a lengthy metes and bounds legal description, a copy of which is in the Addenda of this report. Generally, the subject is comprised of four tax parcels within the Northeast Quarter of Section 23, Township 27 North, Range 3 East, W.M., within Snohomish County, Washington, identified as Snohomish County Tax Account Nos. 1-038, 1-040, 1-052, and 1-054. File 134198 v THE CLARKE CONSULTING GROUP Real Estate Advisors Premises of the Appraisal Identification of Ownership This appraisal pertains to a complete ownership interest in the property, wherein the real estate is owned by a single person or entity, or by several persons or entities under co - ownership. Ostensible owner of this interest is Howard Anderson. Property Sale and Use History The Anderson Marine property has been in the Anderson Family for many years. It was initially purchased by Howard Anderson's father for use as a boat building facility. In the late 1950's, the property was converted to a boat repair and sales facility, and has operated in this capacity since that time. Assumptions and Limiting Conditions All appraisals are made subject to certain assumptions and limiting conditions. Specific assumptions and limiting conditions pertaining to this report are listed below and on the following pages. Except where expressly stated to the contrary, the following Assumptions and Limiting Conditions are governing upon this appraisal. ♦ No legal questions are considered in this analysis, such as titles, encumbrances, etc. The property is considered as if free and clear. ♦ All dimensions and legal descriptions are assumed to be correct as found through available records or on -the -ground inspections, or the survey furnished. ♦ All information as found in data furnished is deemed to be reliable. If any errors are found, the right is reserved to modify the conclusions reached. ♦ Where the value of the improvements is shown separately, the value of each is segregated only as an aid to better estimate the value of the whole; and the value shown for either may, or may not, be its correct Market Value. ♦ No study has been made to determine whether structures may have any infestation such as termites or dry rot. In the absence of such study, it is assumed the property is free of such problems. ♦ While various "approaches to value" and various mathematical calculations have been used in estimating value, these are but aids to the formulation of the opinion of value expressed by the appraisers in this report. In these calculations, certain arithmetical figures are rounded off to the nearest significant amount. File 134198 vi THE CLARKE CONSULTING GROUP Real Estate Advisors Premises of the Appraisal ♦ The data and conclusions embodied in this appraisal are a part of the whole valuation. No part of this appraisal is to be used out of context and, by itself alone, no part of this appraisal is necessarily correct, as being only part of the evidence upon which final judgment as to value is based. ♦ Employment to make this appraisal does not require testimony in court, unless mutually satisfactory arrangements are made in advance. ♦ Disclosure of the contents of this report is governed by the By -Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute or to the MAI or RM Designation) shall be disseminated to the public through advertising media or any other public means of communication, without the prior written consent and approval of the author. ♦ Appraisal reports that contain a valuation relating to an estimate in land that is less than the whole fee simple estate are subject to the following: "the value reported for such estates relates to a fractional interest only in the real estate involved and the value of the fractional interest plus the value of all other fractional interests may or may not equal the value of the entire fee simple estate considered as a whole" ♦ Appraised values that relate to geographical portions of a large parcel or tract of real estate are subject to the following: "the value reported for such geographical portion relates to such portion only and should not be construed as applying with equal validity to other portions of the larger parcel or tract. The value reported for such geographical portions plus the value of all other geographical portions mayor may not equal the value of the entire parcel or tract considered as an entity. " ♦ The client agrees to indemnify and hold harmless The Clarke Consulting Group, Inc., its officers, and employees from any and all claims for loss and liabilities of any nature whatsoever arising out of or related to this contract, the appraisal report, or the inclusion of the appraisal report as an exhibit to a registration statement and prospectus used as part of a real estate securities offering. ♦ Site measurements and building details were obtained from property inspection, -- information provided by the client, or public records. Other pertinent data may have been obtained from county and city records, title insurance companies, real estate brokers, local property managers, as well as owners and developers of similar and/or File 134198 vii THE CLARKE CONSULTING GROUP Real Estate Advisors Premises of the Appraisal competitive properties. All data received from these and other sources is assumed to be correct. ♦ Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other potentially 1 hazardous materials may affect the value of the property. The value estimate is predicated on the assumption there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. ♦ The date of value to which the opinions expressed in this report apply is set forth in the letter of transmittal. The appraiser assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinions herein stated. ♦ No opinion is intended to be expressed for legal matters that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report. ♦ No engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist. ♦ Maps, plats, and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose. ♦ No opinion is expressed as to the value of subsurface oil, gas, or mineral rights and it is assumed the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated. is ♦ The projections included in this report are utilized to assist in the valuation process and are based on current market conditions, anticipated short term supply and demand factors, and a continued stable economy. Therefore, the projections are subject to changes in future conditions that cannot be accurately predicted by the ' appraiser and could affect the future income or value projections. File 134198 viii THE CLARKE CONSULTING GROUP m. Real Estate Advisors CHERRY ST {� S pL S�1 �� to -Yj ST.�N A--, I F ND ST SW �• �� �� .� _3 � � 3 193F1 PL Sw I star ai Q 194TH ST EXCEU OA 5W �91 p 1C to s,��av � 196TH Si' I Pt* Y z Q s z� �uV Y JWAET Y � x 4t .' �_' 19Ti7f ST � S+ a V �� VY i 4AE❑ n': ti �,,, .._. "'�, , �.... �--Sd/YSPi rg'E"�tCFFz�-F`-� r` —z - ='�- -- '-Z-f-- �• '• .Y, �_ �f t E � '�CAsFRSa ST v x ief;e ST _�� PARK ; �^� w af8 J �CiIL�a CR VI 1 L �5T 7 200 S W I I I SAYER L� OR C I • ' - A - '° An CAROLWY Sr RI D caof 2II7�ff) ST SW '. • I 24 �AR*�' ALO -r Pl' 3ti PL sw .. �i .. 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PPA `- _ .- HVMELAkD PRti I }r R p9gt+ Q !}n HEMLOCK �UgEL LH } i+ RH k E;aA1fl t'�"-,C LALfRE wY ii5 a 2t TI+ 7SSTFr r Y1S H x ::, = SW goy Tgi1 I S7 ',PARK LN r 5T sr sw> at Sw EDWAROS z > > ] 216TH Pt sM N a 7 a�(mi i a x 2 7TH �_�� L•' _ .. _._. ,r,y � cry Z r1 r- F L P .1 f SF Q21 PL _ 3 ~ a F- ❑ 218TH ST vV,. a 1 ll7 t m V FAa 1 i 7C I z �'~ ter, Elan ELM ra zlsrHsw Y 1- p # Si T S W 5 ` -fir sA rye. ems' a Fug 3 5 rio7H Y�Y y I 227ST i S7 1 I Ny c 5 k SIR $ 3 3 22sR` ST' C Wv sW °`I,r a 3 i W u� �F a a3d iATH Wr " 4T 3 > � y 1-I ST SW,IST L 276 12 i Via!'` S'� H I z _m rn1 •x�' '! PL w r 27T1i..... LET w I SEE A CS � r ; E 4 .T Sw c ! rk Q 1 FRIAR Tt)cx LN _, _a i•� iYAfiK•'%� 3 ❑ T `yid d� Sr sw LF5 7.4 PL Syr 1 T 2 ALAN-A-GALE PL ^? T 3 Lr_IEJOHN CT x ir•' . ROBIN 1 `� - - n 3 32NQ ST Q No 232NO PL SW WOOL7WAY n m a `� Rp 7 $W L SW {HOLLY Li; f"t - < 233RD Pt s O , Q , ' m ID3 3i 23dTH 5T 2t W �a SW �fr3TNINGHAM RO MgOWflAVpV Pir . -.3T1= p }Q•• = sr a a� P PL Cry 5W -� .._ R[7OST ._I.. —4:. .Ik `- �rn— -. �4-.�LS'W 7II 7 u3 2j6LTI•'- L I PT 238rH $T - rt . 3 ti Q¢ z3 P b 3 1= I Q I WELLS W� - ';'` S'„ ti PL S i� 2351 F! ST /' �.•. r��r d �371'11 PL I; ...' ~ 3- R 238TH ST 3. g si �t 23 1rFi - u rr 10. 3 _ J ,I . z d _ gas r1 I STSW ] I_ �� PL Sri aa H3L f. 4 L > 1- Nr@r 0. we OeOnwOMr Ism VICINITY MAP THE CLARKE CONSULTING GROUP Real Estate Advisors .. G"'J- `'st. e +" �.,. �i : , y "'fir. ' `•:moo [' S. _�• . :, 2y` i J•� ,T �,�+�.a,�� - � - �: - �w�-y:�� r��-•y rt%�ff'w'�- -.. � �'at' }�. ,y�:.._ y:,'YS . �M . �G.= • .4 "'Lt • �hT::: y$t-r?erY� : ,�:. ^r'; .' _le �1 �.4r.' •-.l i. tix �TC ��':l:i �. a- ti +��f •.; L_ �, •�' �• _ ._s�'`+ ,r„rtey� �� � `�r:X•sa.�.'•. !r"'" �'=:. � : r. �i:'x F:�:.. - --r +.�'��`�~ taer[ �3:��/�'': ':a. 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PLAT MAP THE CLARKE CONSULTING GROUP Real Estate Advisors l9 2 z 0 p a - - W M r J \ -LI—m 3o0LL {by\' _ �4r3 . �Na7�b z O LU c �''•n 4, �� Q z Q o Z 9 \ 003 o Z LLu VS U_ C) sn fl � y� 4'tI �\ � NOO LLJ FZ u, F- �4 \ �/ tin rvI Z �— O (n LU cr r a • h���� r �L- ' V41 w (I I Tom/ W • .�� W CL) �. ry I va ' ;r 3 �' • � 4/ 3 � �•�r •c � � i �11 �� 7 J �3'► ca I 1 HaQ'i•I s'� �a'b;����+�i���a� �}a:i'`��sl Y^ Y. N 4 zl 9 ■ a .7f a x, r I ma, t A TY AREA 1. T (23-74 ACRES). AR9 BASEED ON i; ;�CUREM PROKA UNTY ASSESSOR. -`-'� NOT REPRESENT F',cLD SURVEY OF SHOWN HEREON. l-- I A r 62• c23�' F 0 SAC �OIva r AREA 1,uNE� - HgRBOR 201.71' L11VE - 56 I 9Z I/ w e -ti n p cfi wl N O i I N w �( W O �a + V i ■, I a �a wa I i 2b(O.0 0 ,qE� 5i J o —L 7q-30' Sri �% 8c�r PAi!E4)Qu w� N -21 .N 20p lOS.ro¢� 1 r765 --- RAILROAD AVENUE B URLlM -l-ni\l ECONOMIC OVERVIEW SEATTLE/EVERETT AREA Washington, Oregon, Idaho, and- Alaska form the Pacific Northwest region of the United States. Within this region, the State of Washington accounts for approximately 50% of the Northwest's total economic activity, with the Puget Sound area being the center of Washington's population, business, industry, and government. More than 50% of Washington's 5,000,000 residents and 2,300,000 workers live in the three counties surrounding the Seattle/Everett Metropolitan area. SNOHOMISH COUNTY- EVERETT - KING COUNTY - SEATTLE PIERCE COtTN J TACOMA H The Seattle Primary Metropolitan Statistical Area (PMSA) includes the combined areas and populations of King and Snohomish Counties. The dominant cities in this PMSA include Seattle, Bellevue, and Everett. The following economic overview of this area therefore THE CLARKE CONSULTING GROUP Real Estate Advisors Economic Overview Seattle/Everett Area pertains to this PMSA, while also referencing characteristics of Washington State and the Pacific Northwest in general. The real estate industry generally recognizes four market forces as influencing real estate trends within an area. These forces include physical, social, political, and economic factors which directly or indirectly impact the desirability of an area for both commercial and residential development. The following pages therefore discuss the Seattle/Everett PMSA through these four forces. Physical Environment Physical factors influencing real estate trends include location and climate, as well as more specific characteristics, such as topography and accessibility. The Seattle/Everett PMSA is located in the northwestern "corner" of the United States, and includes areas stretching from the coastal waters of the Pacific Ocean to the Cascade Mountain range in central Washington State. This region includes numerous islands, inland lakes, mountain streams, rolling hills, valleys and level plains. Much of the undeveloped land area is forested, and the region is known both nationally and internationally for its natural beauty. At various locations, this area includes four distinct seasons. Although coastal communities do not experience climate extremes similar to inland areas, different locations within Puget Sound include climates ranging from and and mild summers to cold and humid winters. Although the metropolitan Seattle area has long been identified with rain, recent publications illustrate more than 40 additional primary metropolitan areas within the United States receive more rainfall than Seattle's average annual amount of 36 inches. Meanwhile, the scarcity of significant snowfall in the coastal communities typically provides for year- round outdoor activity in this area. On the other hand, seasonal snowfall in the Cascade Mountains provides for a variety of winter recreational activities. Additional ramifications of this area's climate are reflected in the area's reputation as an important agricultural region within the United States. Although areas east of the Cascade Mountains provide the majority of the State's farming communities, several nationally and internationally recognized agricultural firms (including producers of wines and apples) have facilities in the Puget Sound area. Overall, locational characteristics, along with the aforementioned climate, provide positive influences for the Seattle/Everett PMSA, which influence social forces impacting real estate ` f trends, as discussed in the following paragraphs. THE CLARKE CONSULTING GROUP Real Estate Advisors Economic Overview Seattle/Everett Area Social Forces Social considerations influencing real estate trends (and values) include tangible and intangible factors motivating people and businesses to locate in a region. For example, this area's green forests, blue skies, and cultural opportunities have resulted in Seattle receiving national and international acclaim. Examples of this reputation include the following: ♦ Seattle rated as the most livable city in the United States by Money Magazine (1989). e Seattle selected as the most desirable place in the United States to conduct business (Louis Harris Poll - 1989 and 1990). ♦ Seattle seleced as the number one vacation destination in the United States (Rand McNally - 1986-1990). In addition to these designations, surrounding communities in the Seattle/Everett PMSA have begun to receive similar "awards," with Bremerton, Washington recently identified as the most desirable city in which to live, and additional cities in the Pacific Northwest identified as being within the country's top ten communities. Although the area has "slipped" in recent rankings, the region remains a popular destination for tourists and new residents. Social characteristics further contributing to this area's reputation include the fact Seattle is one of only three United States cities featuring a professional ballet, opera, and symphony (with New York and San Francisco the additional two cities). Also, more theater companies are located in Seattle than in any comparably sized city, and the total number of theater performances annually ranks second only to New York City. Seattle is also well-educated, with the city ranking third nationally in the number of residents with college degrees. The area is a national leader in educational research facilities, with the University of Washington renowned for technological and bio-medical research. The University is fourth in the nation for dollar amounts of research awarded. Also, the area's emphasis on research and development has supported numerous young businesses built on health-care technology breakthroughs, including bio-technology measuring instruments, communication equipment, software, and other information technology. $ While this data represents but a summary of social factors impacting trends in the Seattle/Everett PMSA, the information does partially explain this area's characteristic as one of the fastest growing economies within the United States. Overall, this information indicates social forces impacting trends within the Seattle/Everett PMSA are positive. THE CLARKE CONSULTING GROUP Real Estate Advisors Economic Overview Seattle/Everett Area Political Factors Political factors impacting values within a region specifically include government involvement through laws, regulations, taxes, and employment. Sales tax within the Puget Sound area typically approximates 8%, while the State does not have a personal income tax as of 1990. Tax levels and business operating costs for companies in Puget Sound, while above levels associated with areas in Eastern Washington and Idaho, are typically below levels characterizing areas elsewhere along the western coast, most notably California. Additional ways in which government forces impact the desirability of an area for both commercial and residential development is through the availability of public and private educational opportunities, creation ofmitigation/moratorium controls on new development, and the level of government -related employment opportunities. While both public and private educational opportunities abound in this region (through numerous two and four- year private and public college and university programs), increasing concerns on the rapidity of new development in the Puget Sound region has led to both public and private initiatives to limit new growth, while also shifting a greater percentage of the impact costs (of new development) to builders/developers. Examples of this trend include the 1989 Citizen's Alternative Plan (CAP), which restricts development of new high-rise buildings in downtown Seattle to approximately 500,000 square feet annually through 1994 (1,000,000 annually through 1999), as well as imposing new height restrictions. Additional city and/or county development restrictions, along with an increased emphasis on maintaining wetlands, has somewhat limited new construction. Although the long-term prospects associated with this trend may eventually negatively impact expansion in the real estate industry, the inventory of real estate product in all primary sectors of the industry as of 1990-1991 will produce only an increase in occupancy levels in the short-term future. An additional area in which political and government factors significantly influence commercial and residential development is through employment opportunities. This is reflected in both direct employment, such as city, county, state and federal agencies, as well as military employment. Overall, the Puget Sound environment includes an "above -average" level of military employment, resulting from facilities located throughout the region, and including both naval and army facilities. Also, as is discussed further in the discussion of economic influences, the indirect impact of military orders has historically had a significant impact on the economy of this region, with Boeing being a primary supplier of military parts. This impact is projected to decline in coming years however, as military purchases are on the decline. Despite the aforementioned resistance to unlimited new development, political influences on real estate trends in the Seattle/Everett PMSA are largely off -setting, including both positive and negative impacts. As will become evident in the following discussion of THE CLARKE CONSULTING GROUP Real Estate Advisors Economic Overview Seattle/Everett Area economic influences, these political factors are not likely to result in any permanent negative impacts on real estate trends in this area. Economic Influences Entering the 1990's, the Seattle/Everett PMSA represents one of the fastest growing economies in the nation, despite economic downturns throughout the country. Indicators of the Puget Sound economic health include reports by the Washington State Employment Security Department that King County, in August of 1990, had reached its lowest unemploy- ment rate in recent history, at 3.3% (well -below the national average of 5.7%). While increases in unemployment locally and nationally are reflected in updated data, Washington State remains significantly "healthier" than the United States as a whole. Furthermore, a net increase of slightly less than 300,000 new jobs were created in King and Snohomish Counties between 1980 and 1990. 1989 data indicates the average household income for the Seattle area approximates 30% more than the national median, and according to U.S. Housing Reports, 1990 figures indicate Seattle had the second highest number of multi- family building permits of any MSA or PMSA in the United States, behind only Los Angeles. Seattle also ranked eighth nationally for new single-family permits. Elements contributing to the strong growth of the Seattle/Everett PMSA economy are numerous and varied. Historically (pre-1980's), this region's base industries included forest products and aerospace, and to a lesser degree, ship building and agriculture. Within the aerospace industry, Boeing has long been defined as the driving force behind the Puget Sound area economy. While the region is less dependent upon Boeing (with one in ten area employees working for Boeing as of 1990, in comparison to one in five in 1980), the health of this company continues to have a significant impact on the health of the region. Currently, Boeing is the nation's third largest exporter, and is responsible for approximately 65% of the worldwide market for commercial aircraft. Sales volumes for the company have produced new records in each of the past four years, while employment also steadily increased, and by the beginning of 1990, exceeded 100,000 in the metropolitan area. The current backlog of orders is sufficient to maintain capacity level employment and production throughout the 1990s, despite recent softening in the airline industry. In addition, Boeing continues to diversify locationally, with new facilities throughout Western Washington, as well as Eastern Washington. The forest products and ship building industries suffered considerably during the 1980s, with little hope for returning to the "glory years" of the 1970s. Increased competition from other regions of the United States and Canada has forced mills in the northwest to become more cost efficient and productive. Recent development banning logging of old growth timber on many large tracts of public land in Western Washington will likely continue to have negative impacts on this industry. Meanwhile, similar rough years are projected for the ship building industry. Nevertheless, unlike a majority of the country, significant gains continue in the THE CLARKE CONSULTING GROUP Real Estate Advisors Economic Overview Seattle/Everett Area total number of manufacturing jobs in the area. The final two years of the 1980's saw an 8% increase in manufacturing employment, consistent with the fact no employment sector has declined in this region in more than four years. Perhaps of equal importance as the health of the primary base employers, is the steady diversification of this area's economy, including the development of new base employment industries. For example, international trade/distribution of goods represents an increasingly important component of the area's economy. While historically identified as the gateway to Alaska, Seattle also is the closest American city to Japan, numerous Canadian markets, and, of West Coast cities, the closest to London, England. These locational characteristics have helped the Port of Seattle remain the fourth largest port in the United States, also representing one of the world's largest container ports. In addition, the Port of Tacoma is ranked in the nation's top ten ports in terms of two-way trade. Overall, approximately 20% of jobs in Puget Sound are now tied to the foreign trade industry. Basic changes occurring in world trade are likely to further benefit this region, with trade between the U.S. and Europe superseded (in 1982) by trade between the U.S. and Pacific Rim companies. With Seattle the closest U.S. port to the Orient, the area's percentage of all West Coast exports (approximately 23%) will likely continue to grow. These positive locational attributes, along with the additional characteristics previously described, have led to tourism becoming an additional primary industry for the Seattle/Everett PMSA. As previously indicated, Rand McNally ranked the Seattle area as the number one vacation destination in the nation for the fifth consecutive year in 1990. The $120 million State Convention and Trade Center developed in downtown Seattle near the end of the 1980s has fostered additional expansion in the hospitality industry, with the future of this industry projected to be excellent. While these trends illustrate the addition of base employment industries to the area's economy, of particular significance is the fact that since 1980, almost 75% of the economic growth in this PMSA has come from businesses with fewer than 25 employees. The national trend towards smaller businesses is most recognizable in the Seattle area, one of the quickest growing centers for entrepreneurship. Although much of this growth has been within the high-technology and bio-medical research fields, strong expansion is also evident in a variety of manufacturing, retail, health care, and recreational industries. With these various developments indicative of a strong economy, population trends within the Seattle/Everett PMSA are also indicating growth. 1990 census data shows approximate- L ly two million people in the PMSA, with total growth between 1970 and 1990 exceeding 40%. In addition, as previously referenced, this growth has also resulted in substantial job growth, as well as increasing personal income levels. Although recently, there has been a slackening in the home-building industry, in 1989, the Seattle/Everett Metropolitan area THE CLARKE CONSULTING GROUP Real Estate Advisors Economic Overview Seattle/Everett Area surpassed San Francisco and became the number one market in the United States in terms of single-family residential home appreciation. Population and income level trends characterizing this area in recent years are projected to continue in the short-term future. While population growth in the last ten years in Washington State has been at twice the national rate, expansion is projected to continue through the year 2000 at an annual rate approximating 1.2%, in comparison with the national average of .8%. For the Puget Sound area, growth is projected to be greater, between 2.4% and 2.6% throughout the 1990s. Employment growth in the Puget Sound region is also expected to remain strong, approximating 2.50% annually. Finally, as an additional broad measure of economic well-being, real personal income is projected to increase at approximately 3% annually, roughly 20% greater than the projected increase for the United States in the short-term future. The current and projected health of the Seattle/Everett PMSA is also reflected in the strong development activity in the retail, office, and industrial markets. Record -setting years for development were established in the final years of the 1980's in each of these three categories. Although the pace of new development has decreased as capital has become less available, this region's expanding population and healthy economy will result in continued new development in the short-term future. The Seattle/Everett PMSA office market is dominated by downtown Seattle, which includes more than 24.5 million square feet of space. Bellevue, on the eastern shores of Lake Washington, is a rapidly expanding secondary location, with more than 13 million square feet of professional office space. Development restrictions impacting growth in both Seattle and Bellevue will have a softening impact on new office space in the near future however, although growth will likely continue at a healthy pace in outlying areas, surrounding the two aforementioned central business districts. The Puget Sound area also includes more than 150 million square feet of industrial, warehouse, and high-technology space. In the past few years, new development has ranged from 4 million to 8 million square feet annually, while absorption has ranged between 1.7 million to 6 million square feet annually. This industrial market is recognized as being one of the nation's healthiest industrial markets for a metropolitan area of this size, with the short- and mid-term prospects for new development and absorption excellent. Overall, the health of the Seattle/Everett PMSA economy is a result of a variety of factors, including the current and projected long-term strength of the aerospace industry (Boeing), the addition of several new primary base employment industries (high-technology, including bio-medical research; tourism; foreign trade), and the general diversification of the economy throughout both the manufacturing and non -manufacturing sectors, most notably including numerous new entrepreneurial firms (25 or fewer employees). In conjunction with these THE CLARKE CONSULTING GROUP Real Estate Advisors SUMMARY OF ECONOMIC OVERVIEW SEATTLE/EVERETT AREA Four market forces are commonly identified as directly or indirectly impacting the desirability of an area for both commercial and residential development, including physical, social, political, and economic issues. Presented below is a summary of this data. ♦ Locational and climatic characteristics of the Seattle/Everett PMSA include positive influences which have led this region to be both nationally and internationally known for its beauty, while also including characteristics conducive to year-round business and recreational opportunities. ♦ Social characteristics of this PMSA indicate an area nationally recognized as a cultural and educational center, with Seattle having recently been designated in various publications as the "most livable city in the United States," the "most desirable place in the country to conduct business," and the "number one vacation destination in the nation." ♦ Political issues impacting the real estate industry, although including characteristics fostering growth, also include trends restricting expansion. Examples include public and private initiatives limiting new construction. The most well-known of these initiatives is CAP, a public sponsored drive approved in 1989, which limits professional office development in the Seattle Central Business District to 500,000 square feet annually (through 1994), as well as imposing height restrictions on new construction. Limitations on development in wetlands represents a second prime example of new development restrictions. File 134198 1 THE CLARKE CONSULTING GROUP Real Estate Advisors Seattle/Everett Area Data ♦ The aforementioned trend restricting new construction has had a short-term effect resulting in increased occupancy levels. Although long-term impacts may include the creation of pent-up demand in various sectors of the real estate industry, projected trends also include the increased development of new product in alternative locations. As a result, while these trends have had a softening impact on new construction in specific locations, expansion is expected to continue. ♦ Economically, the Seattle/Everett PMSA represents one of the nation's healthiest regions at the onset of the 1990's. Despite a national recession, the Seattle area (and Washington State) economy indicate superior employment levels, new job growth, and per capita income than national averages. ♦ The Boeing Company remains a primary industry for this area, although only one in ten regional employees works for Boeing as of 1990, in comparison to one in five in 1980. Regardless, this company, the nation's third largest exporter, has consistently achieved record sales levels in recent years, with a sufficient backlog of orders to maintain capacity level employment and production throughout the 1990's. ♦ Although additional base employment industries, such as forest products and ship building have suffered in recent years, new base industries have developed, including international trade/distribution of goods, and tourism. Currently, approximately 20% of jobs in Puget Sound are tied to the foreign trade industry, with basic changes in world trade likely to result in this area's percentage of all west coast exports (approximately 23%) expanding further. In addition, the area's relative proximity to Alaska, the Orient, and of west coast cities, London, should result in tourism being a continually growing base industry. ♦ The short- and mid-term prospects for this area are projected to follow trends established in recent years, with population growth, employment growth, and per capita income levels likely to increase at rates exceeding that of the nation. These rates will be less than those of recent years however. In addition, these trends will likely also be reflected in the steady expansion in most real estate sectors of the economy. Overall, the Seattle/Everett PMSA will continue to represent one of the nation's healthiest economies. File 134198 2 THE CLARKE CONSULTING GROUP Real Estate Advisors CITY OF EDMOND S The City of Edmonds, a port city, is on the east side of Puget Sound, in Southeast Snohomish County. The city is located along two major transportation arterials, State Highway 99 and State Road 104. The city is influenced by a varied economic base which includes the Port of Edmonds, electronics assembly, light manufacturing, professional and consumer services, as well as tourism. The population of the city has grown steadily since 1940, leveling off only recently. Year Population 1940 1,288 1950 2,057 1960 8,016 1970 23,684 1980 27,679 1989 29,720 The population is composed primarily of white collar workers who are employed either in South Snohomish County, Seattle or Everett. The city has a strong downtown core area, which consists of Dayton Street on the south, 5th Avenue on the east, Edmonds Street on the north, and Puget Sound on the west. This area is primarily influenced by the intersections of Main Street with 5th Avenue, 3rd Avenue, and State Road 104 (Sunset Avenue). The central waterfront area has recently experienced substantial redevelopment, including mixed -use retail and office developments. File 134198 3 THE CLARKE CONSULTING GROUP Real Estate Advisors Edmonds Area Data The downtown features a strong "main street" retail sector extending easterly along Main Street to 6th Avenue. Retail oriented uses center at the intersection of Main Street and 5th Avenue, with 5th Avenue providing several exclusive retailers, both north and south of Main Street. Much of the office oriented development has been along Main Street, Dayton Avenue, and the central waterfront. A major nixed -use development featuring retailing, warehousing, light manufacturing and professional office space has been constructed at Dayton Avenue, between State Road 104 and the Burlington Northern Railroad right-of-way, near the central waterfront. This development is known as Harbor Square, and features 46,000 square feet of office space in nine concrete tilt -up buildings. Downtown Edmonds also has many multi -family residential dwellings, including apartments and luxury condominium complexes. These development take advantage of sweeping views of Puget Sound and the Olympic Mountains. Many of the units range in price from $100,000 to $200,000, with some in excess of $250,000. Several high-priced single-family dwellings are disbursed throughout this section of the city. The City of Edmonds Administrative Offices are located between 5th and 6th Avenues, and Edmonds and Bell Streets. The city enjoys a recently developed cultural center, which includes a new city library, conference rooms, arts and crafts pavilion, together with space available for rental use. Some of the space is leased by private schools, arts and crafts teachers, retailers, etc. Stevens Memorial Hospital is located in the eastern portion of the city. Tourism plays a major role in Edmonds economy. The Washington State Department of Ferries has a terminal in Edmonds, and the city experiences substantial spring, summer and fall traffic from tourists, as well as local commuters. Tourists tend to shop in the city while waiting for long ferry delays. Many tourist spend the entire day exploring the Edmonds waterfront, the downtown retailing district, and the rehabilitated "Old Mill Town" shopping mall, located at Dayton Avenue and 5th Street South. In summary, the City of Edmonds is a strong residential community located in Southwest Snohomish County. The city has a diverse economic base. In recent years, the city has experienced growth in the development of luxury apartment condominiums, and mixed -use developments, emphasizing professional office, retailing, or warehousing type uses. It is anticipated these growth trends will continue. File 134198 4 THE CLARKE CONSULTING GROUP Real Estate Advisors NEIGHBORHOOD DESCRIPTION General Area Description A property is an integral part of its neighborhood. An appraisal must consider the physical, social, and economic forces currently influencing the district to ascertain probable trends and the neighborhood's influence on the subject property. The geographic area surrounding the subject property that has similar characteristics and is affected by the same economic considerations is defined by physical and man-made boundaries. It encompasses an area described as the Central Business District of Edmonds, predominantly influenced by retail oriented uses, professional office activities, and the municipal office of the City of Edmonds. The central business district is generally bounded by Dayton Street on the south, Edmonds Street on the north, Sixth Street on the east, and the Puget Sound shoreline on the west. Access .: Ingress and egress to the neighborhood is excellent via Main Street, Fifth Avenue, Third Avenue and State Route 104. State Route 104 originates at the Edmonds waterfront and travels in a southeast direction through Edmonds, Woodway, North Seattle, and Lake Forest Park. State Route 104 comes to an end at the State Route 522 intersection along the north File 134198 5 THE CLARKE CONSULTING GROUP Real Estate Advisors Neighborhood Description side of Lake Washington. This route is a four -lane arterial improved with street lights and sidewalks. Streets and roads within the City of Edmonds feature two-way traffic and are improved with curbs, sidewalks and street lighting. The sidewalks system in the downtown area provides for excellent pedestrian traffic and crosswalks at major intersections. Public bus transportation is available with bus routes conveniently located for the city transit system, as well as community transit system serving south Snohomish County and north King County. Zoning The neighborhood is primarily influenced by retail oriented uses, professional office and municipal offices of the City of Edmonds. Generally, zoning classifications within the neighborhood include community Business, Neighborhood Business, Commercial Waterfront, and spotted single-family and multi -family residential uses. North and east of the central business district, single-family and multi -family uses of various intensities are found. To the south of the immediate area, south of Dayton Street, are several multi -family zoning _ classifications. On the west side of the central business district is the Edmonds waterfront, which features commercial waterfront zoning, providing commercial, retail and multi -family activities. The majority of development that has occurred along or near the Edmonds waterfront has involved retail, office and restaurant activities. Historical Development Patterns Edmonds has a strong downtown core area, having a "Main Street" commercial district between the waterfront and Sixth Street, and also along the waterfront from Main Street south to Dayton Street. The Main Street activity is primarily influenced by the intersections of Main and Fifth Avenue, as well as the area surrounding Third Avenue and Sunset Avenue. The central waterfront area has experienced significant redevelopment over the - last ten years, including three mixed -use retail and office developments known as The Regency on Edmonds Bay, Pantley's Office Building, and The Landing Office Building. Most noteworthy of all new developments is Harbor Square, located south of Dayton Street near the central waterfront. The business district features a strong main street retail sector. Retail oriented uses center �'- at the intersection of Main Street and Fifth Avenue, with Fifth Avenue providing several exclusive retailers, both north and south of Main Street. Much of the office -oriented € development has been along Main Street, Dayton Avenue and the central waterfront. As ` previously mentioned, a significant development in the city is Harbor Square, a mixed -use File 134198 6 THE CLARKE CONSULTING GROUP Real Estate Advisors Neighborhood Description development featuring retailing, warehousing, light manufacturing, and professional office space. The Harbor Square development features some 46,000 square feet of space in nine concrete tilt -up buildings. Downtown Edmonds is also influenced by substantial amounts of multi -family residential dwellings, including apartments and luxury condominium complexes. These developments take advantage of sweeping territorial views of Puget Sound and the Olympic Mountains. Many of the units range in price from $150,000 to $250,000, with some in excess of $300,000. Several high-priced, single-family dwellings are dispersed throughout this section of the city. Other major developments in the city include the Port of Edmonds Marina, a 900-slip covered marina created in 1948. The marina is located within the south half of the central waterfront district between the fishing pier on the north and Union Beach on the south. The Edmonds fishing pier is the first public salt water pier constructed in this area designed specifically as a fishing pier. Another unique development paralleling the shoreline along portions of the waterfront where public parks are located, is the Edmonds Underwater Park which was dedicated as a marine preserve in 1971. Other historical developments include the Edmonds Museum, the South County Senior Center along the waterfront, and the Francis Anderson Center. Anticipated Development Patterns The majority of the downtown area is 90% improved with a few small tracts of land available. In recent years, the city has experienced dramatic growth in the development of luxury apartments, condominiums, and mixed -use developments, emphasizing professional office, retailing or warehousing type uses. Because of the insufficient amount of unimproved parcels available for development, an additional trend has been the renovation and revitalization of old buildings. This is especially true in the Main Street downtown area. Also of significance to the subject property, as well as adjacent parcels, is the potential relocation of the Washington State Ferry Terminal to another part of the Edmonds waterfront. Due to the tremendous amount of traffic growth that has occurred between Edmonds and Kingston on the ferry system, particularly during the summer months, the Washington State Ferries recently proposed expansion of the existing terminal (which would include the taking of Anderson Marine) to increase the auto holding area (on water side) to one full boat load and add one ferry slip docking area. This expansion would also include a passenger terminal with an overhead covered passenger loading ramp. The City of Edmonds is opposed to this development and would rather relocate the terminal to a location to the south. Reed Middleton, a planning consulting firm, has been hired jointly by the City of Edmonds and the Washington State Ferries to study four development File 134198 7 THE CLARKE CONSULTING GROUP Real Estate Advisors Neighborhood Description alternatives. These include keeping the existing facility as is, expanding the existing terminal as indicated above, moving to a mid -waterfront location (near existing Senior Center), or moving to Edwards Point (the Union Oil site). The study is expected to be completed within the next one or two months. It is our opinion that the value of the subject property would not be significantly different if the ferry terminal were to be relocated. This is due to the fact that the subject has ample consumer exposure due to its close proximity to the downtown core. In addition, if the terminal were relocated, nearby traffic congestion would be reduced, and the marine view from the subject property would be enhanced. Locational Desirability This neighborhood benefits from its locational orientation, State Route 104 and the Edmonds waterfront. The district is further enhanced by the recent revitalization of retail and commercial developments in the business district. The specific location of the subject property within this neighborhood takes advantage of the heavy traffic volumes currently present along Main Street and from the Edmonds -Kingston ferry dock. The district also enjoys panoramic views of Puget Sound and the Olympic Mountains. Conclusion In summary, the immediate neighborhood has historically shown moderate development trends. However, commercial development activity has increased somewhat within the business district over the last ten years, and this trend is expected to continue at a somewhat slower pace for the foreseeable future. It is believed the majority of development in the area will be the revitalizing and renovating older properties. Comparatively few vacant tracts of land are available for development to higher uses, placing somewhat of a premium on those vacant tracts of land as demand continues for office, retail and other commercial activities. Thus, the neighborhood represents an attractive environment for commercial and retail services, and positively influences the subject property. File 134198 8 THE CLARKE CONSULTING GROUP Real Estate Advisors M SITE DESCRIPTION Location The subject property is located on the west side of Railroad Avenue, immediately south of Main Street, and adjacent the south side of the Edmonds -Kingston ferry dock. The street address of the property is 100 Railroad Avenue North, Edmonds, Washington. Immediate Surroundings File 134198 Within the Summary section of this report are exhibits to illustrate the location and shape of the property. The following pages present a component description of the site. The immediate surroundings are generally commercial in nature. Immediately south of the subject on the waterfront is a three-story, mixed -use development known as The Regency on Edmonds Bay. Continuing south along the waterfront is the South County Senior Center, the Ebb Tide Condominiums, Reef Apartments, Underwater Sports Store, three-story office building (including Clarke's Restaurant), Olympic Beach and 9 THE CLARKE CONSULTING GROUP Real Estate Advisors Site Description Public Fishing Pier, the Landing Office Building with Arnie's Restaurant, and the Port Boat Harbor. North of the subject is the Edmonds -Kingston ferry dock, and continuing north is Brackett's Landing, a public park and marine sanctuary. Immediately east of the subject is Skipper's Restaurant, and to the northeast on Main Street is a Mexican restaurant. Continuing east on Main Street from the subject is the Sail In Tavern, Cafe de Paris Restaurant, a retail/manufacturing building, a three-story office building (Harbor Building), parking lot, and post office facility. Also, paralleling the east side of Railroad Avenue is the Burlington Northern and Am - track railroad right-of-way, with an Amtrack railway passenger station located about one-half block south of the subject. Shape As mentioned previously, the subject is comprised of four contiguous parcels. Together, they form a some- what irregular, but almost rectangular shape. Dimen- sions include 308.64 feet along Railroad Avenue, 201.71 feet along the inner harbor line, 422.31 feet on the north boundary adjacent the ferry dock, and 418.04 feet along the south boundary. Based upon available maps, total land area is estimated to be 103,427 square feet or 2.374 acres. Dimensions are based on information secured from the Snohomish County Assessor, as shown on a property map drawn for Anderson Marine, prepared by Lovell-Sauerland & Associates, Inc., dated June 7, 1984. Property ownership extends between Railroad Avenue and the inner harbor line. A portion of this ownership is filled uplands, and a portion is considered tidelands. Based upon an inspection of the property, on -site measurements, and a review of county records, an estimate of uplands and tidelands square footage has been estimated, as shown below: File 134198 10 THE CLARKE CONSULTING GROUP Real Estate Advisors Site Description Table I - Uplands and Tidelands Square Footage Parcel Size (SF) Upland (SF) T�(SF) 1-038 8,869 8,869 0 1-040 18,124 18,124 0 1-052 16,421 7,672 8,749 1-054 60,013 1 21,840 138,173 103,427 56,505 1 46,922 Total The above upland estimate of 56,505 square feet in- cludes all of the paved area as well as the improved building area between Railroad Avenue and the westerly edge of the pavement. Because there may be some additional upland area which is unimproved and un- paved within the beach area, the upland estimate is rounded upward by 3,495 square feet and the tideland estimate is reduced by the same amount, reflecting a final adjusted estimate as follows: Upland Area - 60,000 SF Tideland Area - 43,427 SF Access/Frontage Access to the subject site is off Railroad Avenue via two driveway entrances. Overall ingress and egress to the subject site for both vehicle and pedestrian traffic is excellent. Public Transportation Public transportation is provided by Community Transit of Snohomish County. There is a bus stop adjacent the subject property on Railroad Avenue. Grade/Slope Level and at the grade of Railroad Avenue North. View Potential The marine and mountain view is nearly 180' from the subject site facing westerly. Flood Zone According to the Federal Emergency Management Agency, the subject is not within a designated flood zone. File 134198 11 THE CLARKE CONSULTING GROUP Real Estate Advisors Site Description Wetlands None noted Soil Conditions No soils report was provided for the subject property. Based on the condition of nearby improved properties, it appears the soils will adequately accommodate legally permissible building improvements. Utilities and Services All city of Edmonds utilities are available, including public water, gas, telephone, and sanitary sewage dispos- al. Zoning The subject is zoned CW - Commercial Waterfront by the City of Edmonds. According to Chapter 16.55 of the zoning code, the specific purposes of this zoning are as follows: A - To reserve areas for water dependent and water - related uses and for uses which will attract pedestri- ans to the waterfront. B - To protect and enhance the natural features of the waterfront, and encourage public use of the water- front. C - To ensure physical and visual access to the water- front for the public. Permitted primary uses under this zoning classification include the following: 1. Marine oriented services. 2. Retail uses which are either marine oriented or pedestrian oriented, excluding drive-in business. 3. Clubs with marine oriented activities. 4. Public marine oriented parks and recreational and educational facilities. 5. Petroleum products, storage and distribution. 6. Bus stop shelters. 7. Offices, above the ground floor, excluding medical, dental and veterinary clinics. File 134198 12 THE CLARKE CONSULTING GROUP Real Estate Advisors File 134198 Site Description Permitted secondary uses include off-street parking and loading in connection with a permitted use. A secondary use requiring a conditional use permit includes aircraft landings as regulated by Chapter 4.80 of the city code. Regarding site development standards, there is no minimum lot area, minimum lot width or maximum coverage requirements. Minimum setbacks are required including 15 feet landward of bulkheads for building and 60 feet landward of bulkheads for parking. A 15-foot setback is also required from lot lines adjacent to R- zoned property. Maximum height is 30 feet for most uses. Operating restrictions are also applied to the property, indicating that all uses shall be carried on entirely within an enclosed building except for petroleum products storage and distribution; sales, storage, repair and limited building of boats; and public parks. Off-street and on -site parking is required, with the number of spaces dependent upon property use. Generally, retail stores require one space per each 300 square feet, restaurants require 20 spaces plus one per every 100 square feet of gross area in excess of 4,000 square feet, and business and professional offices generally require one space for every 400 square feet. The commercial waterfront zoning also indicates that this zone also has other general purposes as listed in Chapter 16.40 of the zoning code summarized as follows: A - To provide for areas for commercial uses for areas offering various goods and services according to the different geographical areas and various categories of customers they serve. B - To provide for areas for commercial uses for the convenience of the public and a mutually beneficial relationship to each other. 13 THE CLARKE CONSULTING GROUP Real Estate Advisors Mitigation/Moratorium Covenants Easements File 134198 Site Description C - To provide for residential uses, community facilities and institutions appropriately located in commercial areas. D - To require adequate landscaping off-street parking and loading facilities. E - To protect commercial uses from hazards such as fire, explosion and noxious fumes and also nuisanc- es created by industrial uses such as noise, odor, dust, dirt, smoke, vibration, heat, glare and heavy truck driving. In addition to zoning, there are at least two other possible legal constraints on the property. Much of the tideland area adjacent to the central waterfront has been designated by the city as a marine sanctuary. These marine sanctuary areas are located in relatively close proximity to the subject to the north and south. Recog- nizing the purpose for the marine sanctuary designation, it is highly unlikely that various city and government agencies, as well as the general public, would allow the tidelands portion of the subject to be developed. It is felt that the only allowable use that may be permitted is the present use providing for boat launching activity. However, this has not been verified by any of the city or government agencies involved, but is based upon trends in the area and general public and governmental atti- tudes towards the preservation of sensitive tideland areas. Thus, it is concluded that if the property were to be redeveloped, that the redevelopment would be likely restricted to the upland portion of the site, as demon- strated by similar sites that have been developed in the last several years along the waterfront. None noted None A title report was not provided by the property owner. However, it is noted that there is a party wall shared in 14 THE CLARKE CONSULTING GROUP Real Estate Advisors Site Description common with the adjoining property owner to the south, identified as The Regency on Edmonds Bay. It is understood that an easement and party wall agreement for this party wall is recorded under Auditor's File No. 1683284. It is concluded that the party wall agreement does not impact the development potential of the subject site. Special Assessments None Assessed Value/Real Estate Tax Tax Year: 1991 Table II - Real Estate Taxes Aid Values Tax AccL No. Land tnpwvsw rtts Total 1991 RE Tax 232703-1-038MM $238,000 $238,000 $3,345.45 232703-1-040-0009 $350,000 $138,300 $488,300 $6,863.79 232703-1-052-0004 $141,900 $141,900 $1,994.62 232703-1454-0002 $405,000 $405,000 $5,692.88 Total $1,134,900 $138,300 $1,273,200 $17,896.74 Tax Rate: $14.057/$1,000 AV. Site Utility The subject site represents one of the few underdevel- oped waterfront parcels in the city of Edmonds. Its location at the end of Main Street provides convenient access for both vehicles 'and pedestrians. Considering the locational, physical, as well as zoning characteristics of the site, it is concluded the subject is an ideal site for a potential mixed -use, waterfront development. File 134198 15 THE CLARKE CONSULTING GROUP Real Estate Advisors Site Description Summary The subject property is a waterfront parcel, located at the western edge of downtown Edmonds, next to the Washington State Ferry Terminal. The site is generally rectangular in shape, with a developable uplands area of 60,000 square feet. The topography is generally level, and good access is provided off of Railroad Avenue. This parcel has good site utility for a potential mixed -use development, in conformity with other waterfront parcels in the vicinity. File 134198 16 THE CLARKE CONSULTING GROUP Real Estate Advisors IMPROVEMENTS DESCRIPTION Overview Included in the Summary section of this report is a site sketch, which illustrates the placement of the improve- ments on the subject site. The following pages provide a component description of the improvements based upon a physical inspection. Repair/Storage Facility File 134198 The subject consists of two structures, including a 13,200 square foot repair/storage building and a showroom/ office structure containing 3,016 square feet. The com- bined gross building area is 16,216 square feet, which represents a site coverage ratio of the upland area of 27%. Other improvements include a boat lift, chain link fencing, asphalt and concrete paving, and yard lighting. This is the largest of the structures on the subject site, used for warehouse, boat storage, and boat repair. It is a one-story structure of Class "D", frame construction originally built in 1910, with an addition and major remodeling occurring in 1955. It measures 110 feet by 120 feet, and contains 13,200 square feet. The south 50 feet is original construction with the south wall being a 17 THE CLARKE CONSULTING GROUP Real Estate Advisors Improvements Description party wall with the adjacent property to the south. The north 60 feet is newer construction, built in 1955. Separating the addition from original construction is a fire wall extending from floor to ceiling, built in 1972. Construction is wood -frame, with corrugated metal exterior siding on the north and west walls, and beveled cedar siding on the east wall. The roof is pitched. Large entry doors are located on both the north and west sides of the building. The overall condition of the building is rated fair to average, with portions of the exterior in poor condition and in need of replacement, particularly on the west side of the building. Showroom/Office Building This building is located west of the Storage/Repair Building, paralleling the Puget Sound shoreline within the south half of the property. The building is somewhat irregular in shape, having been constructed in phases over various time periods. The south portion of the building was originally constructed in approximately 1950, with the middle portion added on in 1963, and the north portion added on in 1967. The majority of the building, comprising the two additions, are used for showroom purposes, and the south end of the building has a private office. Rest rooms are also provided. The building is considered to be Class "D", frame construction having a total building area of 3,016 square feet. Exterior features include a flat roof with a built-up roof cover, T-111 wood siding, glass storefront windows on the east side of the showroom portion, and an awning over the front entrance. Foundation of the building is comprised of pier and post construction over a portion of the beach area. Overall construction is considered to be low to fair quality. The majority of interior has painted walls, finished ceilings with open cross beams, and mostly carpeted flooring. Heat is provided via suspended ceiling -mounted forced air heaters. Overall condition File 134198 18 THE CLARKE CONSULTING GROUP Real Estate Advisors Improvements Description appears average, with no significant deferred mainte- nance visible. Other Improvements Located between the Repair/Storage Facility and the Showroom/Office Building is a stationary overhead boat lift, primarily used for the removal of boats from delivery trucks, and also providing the capability of placing boats on the launching rail which is conveniently located to the lift. Functional Utility Condition File 134198 Extending westerly from the Repair/Storage Facility, and near the south end of the Showroom/Office Building, is a set of launching rails which continue westerly from the upland portion into the tideland area. Historically, the launching rails were used to launch boats. However, the launching rails are presently inoperable and are in generally poor condition. Also, adjacent the launching rails on the south, along the south boundary line, is a wood platform measuring 30 feet by 30 feet which is in poor condition and appears to be unsafe for use. The majority of the upland area, not under or enclosed by buildings, is paved with either asphalt or concrete. Total paved area is considered to be approximately 38,000 square feet. Condition of paving appears to be average. The subject site is enclosed on three sides with a cyclone fence, considered to be in fair condition. Fencing on the east and west boundaries is assumed to be owned by the subject, and fencing on the north boundary line is assumed to be the property of the Port of Edmonds. On this basis, total subject property fencing is approximately 300 linear feet of six -foot -high cyclone fence. The improvements adequately serve the needs of a boat repair and sales facility. Average 19 THE CLARKE CONSULTING GROUP Real Estate Advisors L— Improvements Description Economic Life As will be indicated in the Highest and Best Use section of this report, the current improvements do not provide an adequate return rate to the underlying land value. Since the highest and best use is to demolish the existing improvements and develop a mixed -use facility, the existing improvements have no remaining economic life. However, as interim use prior to redevelopment, the existing improvements provide at least some return until redevelopment takes place. Summary Current use of the property is for sales, repair, and storage of pleasure boats. Overall condition of the improvements is fair to average, with significant deferred maintenance visible primarily in the boat repair/storage facility. Although the buildings appear to be structurally sound, they are of fair quality construction. The site improvements are also in fair condition, with the excep- tion of the boat lift, which is in average condition. It is obvious that the property is significantly underimproved and underutilized, considering the use and utility of adjoining properties to the south. The apparent underut- ilization of the property will be discussed in the Highest and Best Use section of this report. File 134198 20 THE CLARKE CONSULTING GROUP R Real Estate Advisors 4 a �� ���� z'� a re v �� � �, a HIGHEST AND BEST USE ANALYSIS Highest and Best Use is defined as: 'That reasonable and probable use that supports the highest present value, as defined, as of the effective date of appraisal. Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible and which results in the highest land value. If 1 This definition applies specifically to the highest and best use of land as though vacant. In the case of an improved site, the highest and best use may be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best 1 Real Estate Appraisal Terminolaey, revised edition e& Byrl N. Boyce (Cambridge, Ballinger Publishing Company 1983), Page 126 File 134198 21 THE CLARKE CONSULTING GROUP Real Estate Advisors Highest and Best Use Analysis use exceeds the total value of the property in its existing use, including the cost to remove the improvements. As Vacant The subject property is located on the central Edmonds waterfront, easily accessed by major arterial streets and connecting highways. Several city and community bus routes are on Main Street and Railroad Avenue providing convenient public transportation to the subject site. In addition, the subject property is adjacent to the Edmonds -Kingston ferry, one of the major connecting ferry routes with the metropolitan Seattle area and the opposite side of Puget Sound and also with the Olympic Peninsula. Thus, a significant amount of tourist traffic, commuter traffic and local traffic passes by the subject on a regular and daily basis. The central waterfront area of Edmonds has been historically undergoing a transformation from older commercial and industrial activities to commercial office, retail and restaurant activities oriented to the local market as well as the tourist trade. Over the last ten years, a few tracts of land have been redeveloped on the waterfront which provide mixed uses including some retail, restaurants, and office space. These developments are oriented to the waterfront having significant panoramic views. However, these developments have been limited to the upland portions of the waterfront, with the tidelands primarily left untouched and with much of the tideland area devoted to a marine sanctuary by the city., An example of upland redevelopment has occurred immediately adjacent to and south of the subject property. This property is known as The Regency on Edmonds Bay, and is a mixed -use development built in 1982 containing retail, office and restaurant uses. Additional physical factors involved in a Highest and Best Use analysis, include size, shape, soils, availability of utilities and topography. The uplands area, containing approximately 60,000 square feet, is level, at street grade, and has a size and shape ideal for development. Development among nearby properties indicates that soil conditions should support the Highest and Best Use of the site. All city utilities are available to the property and there appear to be no adverse conditions which would limit development. Legal factors influencing the Highest and Best Use of the subject site are primarily government regulations such as zoning, comprehensive plans, and environmental regulations. Current zoning of the property is CW, Commercial Waterfront. This zoning permits a variety of activities primarily marine oriented including marine oriented services, most retail activities, parks and recreation facilities, and offices except medical and related uses. Mixed -use developments on the waterfront are encouraged. Off-street parking is required. Compatibility of scale, proportion, design and character with nearby properties should dominate any future developments. Based on nearby activities and based upon the fact that much of the adjoining tideland areas north and south of the subject are within a marine File 134198 22 THE CLARKE CONSULTING GROUP Real Estate Advisors Highest and Best Use Analysis preserve and sanctuary, it is highly unlikely that the city or the public would allow any significant development within the tidelands area of the subject property. In inspecting the subject neighborhood and the waterfront, it is obvious that there is little or no remaining land available for development on the central waterfront area within the city of Edmonds. It would appear that the subject site is the last remaining parcel on the waterfront within Edmonds which is underutilized and has not been developed to its Highest and Best Use. Because of supply and demand factors, and the fact that no other significant waterfront sites are available which could support new development, it is likely that the market is placing some upward pressures on land values within the waterfront district due to supply and demand factors. In consideration of these factors, it is felt that the Highest and Best Use for the subject site is for a mixed -use development, providing retail, commercial and office space. Due to the property's location adjacent to the Edmonds -Kingston ferry, and also located adjacent to the intersection of Main Street, Railroad Avenue, and the ferry dock, it is believed that some commercial activity would be desired at the subject site in the form of a restaurant, retail shops, etc. Based upon the zoning code, this type of development would probably be no higher than three stories, with nearly all of the site covered by a building which would have the first floor devoted to both covered parking and retail/office spaces and possible second and third floors devoted to office uses and perhaps a restaurant. It is understood that one-man office suites are in demand on the central waterfront area and have been well accepted within the Regency development to the south. Thus, it is believed that the office portion of potential development would include both typical office suites for small businesses, as well as executive or one -person office suites with common secretarial services also provided. Historically, the mixed -use developments along the central waterfront have had good occupancy experience. In addition to mixed -use development, another possibility may be to develop high -quality condominiums on the site, similar to the Ebb Tide development. Successful condominium developments are located in other similar locations adjacent or near ferry docks in Mukilteo and Winslow. As Improved Currently, the subject property is improved with a boat sales and repair facility known as Anderson Marine. The majority of the upland portion of the subject is devoted to asphalt paving and yard storage. Two buildings are located on the property, both of which are one- story structures of fair -to -average quality. The largest structure is primarily devoted to warehousing, storage and repair of boats. A second, smaller building is devoted to showroom and a small office. The facility is comparatively old, although portions of the structures have been remodeled over the years. After analyzing Highest and Best Use as File 134198 23 THE CLARKE CONSULTING GROUP Real Estate Advisors Highest and Best Use Analysis vacant, it is apparent that the subject site is significantly underimproved and underutilized. A brief analysis of rental income which could be generated by the subject improvements would be insufficient to support the value of the underlying land as vacant. In the event the property were placed on the market for sale, it is highly unlikely that a purchaser would purchase the property to continue in its present use, but would redevelop the property to a higher and better use which could bring a much greater return than the use presently on the site. For these reasons, it is concluded that the improvements presently on the property do not reflect highest and best use, but reflect only an interim use until such time as the property is redeveloped. Since the property is presently owner -occupied, and the owner has been in the boat sales and repair business for a number of years, it is unknown when the owner would place the property on the market for sale. However, it is believed that if the property were placed on the market today, that the improvements on the property would remain as an interim use only for a short time, considering the demand for land on the waterfront for mixed -use developments such as those which have been developed on the waterfront over the past several years. Conclusion In summary, it is believed the subject's existing improvements fail to provide an adequate return above and beyond the land value to warrant their continued use for any length of time. Instead, with the property's value in the land, the highest and best use would equal the highest and best use as vacant, namely, a mixed -use facility conforming to the redevelopment which has occurred within the neighborhood and along the waterfront. In the meantime, any minimal income which could be generated by the existing improvements may help to offset any holding costs associated with holding the land, or with demolition. However, it is unlikely that a potential purchaser would look to the improvements as having any significant value, recognizing that they would be torn down to redevelop the property to its highest and best use. File 134198 24 THE CLARKE CONSULTING GROUP Real Estate Advisors PROPERTY VALUATION As previously described, the subject property consists of a parcel of land located on the Edmonds waterfront containing a total of 103,427 square feet, of which approximately 60,000 square feet is upland. The upland portion has historically been used for pleasure boat sales and repair, identified as Anderson Marine, Inc. It is concluded that the present use and improvements represent a significant underutilization of the site, not representing highest and best use. Furthermore, it is concluded that highest and best use of the site is for redevelopment for a mixed -use facility or condominium similar to developments south of the subject. Highest and best use analysis also seems to indicate that under redevelopment, the uplands portion would be the portion of the total land area which would be developed, with the tideland portion remaining undeveloped. Where appropriate, three approaches to value are typically utilized including the Income Approach, Sales Comparison Approach, and the Cost Approach. The Income Approach requires an analysis of a property's market rent and expenses in order to estimate a probable net income. The projected net operating income is capitalized at a market derived overall rate, which indicates the price an investor might be expected to pay for the property. In this instance, the subject property is considered to be primarily land value, with little contributory value of improvements. This type of property is typically not purchased by investors for the purpose of achieving a rental income. This property type is typically purchased by investors or developers who will want to redevelop the property to a higher File 134198 25 THE CLARKE CONSULTING GROUP Real Estate Advisors Property Valuation and better use. Therefore, the Income Approach is not considered to be a valid indicator in this analysis, and will not be used. The Sales Comparison Approach to value compares a property with reasonably similar, recently sold or listed properties. After allowing for differences, a value is indicated by means of a physical unit of comparison. Recognizing that the subject property in its present use does not represent highest and best use, this approach will be used in this report only as a basis of arriving at a value of the underlying land. The Cost approach attempts to estimate value by calculating cost new of improvements, deducting for depreciation, and adding value of underlying land. In this instance, this approach provides an unrealistic approach, as the improvements have reached the end of their economic life. As a result, this technique is not a valid indicator of total market value under the premise of highest and best use. Another valuation technique that is typically utilized by developers is the land residual technique. In the residual technique, the land value is established by deducting the total construction cost (including developer's profit) from the estimated market value of the completed improved development. Several assumptions are required, including the development potential of the site, potential market rent derived by the completed project, and overall development costs. Considering the unique waterfront characteristics of the subject, this type of valuation analysis is considered appropriate for the subject, and will be utilized in this report. In summary, the market value of the subject is estimated in this report using the Sales Comparison Approach to Value, as well as a land residual technique. The following pages describe in more detail these approaches to value. File 134198 26 THE CLARKE CONSULTING GROUP Real Estate Advisors SALES COMPARISON APPROACH The Sales Comparison Approach is a method of estimating Market Value, and is based on the economic principle that a prudent purchaser will not pay more for a property than the price an equally desirable substitute property would bring in the open market at that approximate point in time. Founded on this principle of substitution, this approach depends on detailed analysis of recent sales, current listings, purchase options, and offers to purchase as indicators of market attitudes concerning the ability of similar properties to satisfy anticipated objectives. In using the Sales Comparison Approach, an attempt is made to simulate the price each comparable property would sell for on the date of the subject appraisal if it were identical to the subject property. This simulation normally requires sufficient market analysis to discern variances between the properties and the magnitude of adjustments to be made of dissimilarities. The subject and specific comparable properties are then compared, with percentage or monetary adjustments made for differences. Adjustments are typically necessary for the passage of time, as well as for differences in physical, functional or locational characteristics. The effect on value of these differences is discussed in the analysis portion of this approach. The approach consists of three sections, which are organized in the following sequence. Comparable Sales Data Comparative Analysis Sales Comparison Approach Conclusion The following pages describe data analyzed to develop the Sales Comparison Approach. File 134198 27 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Comparable Sales Data A sales search was conducted for comparable land sale activity in the downtown Edmonds area, with emphasis placed on the waterfront. Due to the limited amount of land available for development, relatively little sale activity has occurred of similar waterfront sites over the last 10 years. The search revealed two waterfront transactions occurring between 1977 and 1979, between 12 and 14 years ago. Due to the changes that have occurred in Edmonds over this time period, it is unrealistic to consider making accurate adjustments for real estate value changes since that time. However, it is noted that these two transactions indicated prices ranging from $15.18 to $23.18 per square foot of upland area. Because of the lack of comparable data within the Edmonds waterfront area since 1979, additional sales have been analyzed in order to estimate the value of the underlying land. Although not directly comparable, one commercial land sale is utilized within downtown Edmonds, which is located about two blocks east of the subject on Main Street, across the street from the U. S. Post Office. In addition, the commercial parcel that is currently listed for sale, located at the northeast comer of Dayton Street and Edmonds Way, is used in this section. Although not waterfront sites, the value per square foot indicated by these comparables provides data regarding commercial land value in the downtown Edmonds area. The comparable sales search also included other areas located within the Seattle/Everett - metropolitan area. In Everett, the U. S. Navy has acquired large tracts of land for use as a Home Port Facility. Most of these transactions occurred since 1988, and are represented by larger parcels. In reviewing the assessor's records on these transactions, the land values were fairly low, between $8.00 and $15.00 per square foot, reflecting the large size of these parcels, as well as relatively low density of adjacent development. Sales of waterfront parcels within the Bremerton area were also researched. Olympic College, which has acquired a significant number of commercial waterfront tracts in Bremerton, is currently selling these sites. Although rebounding somewhat, downtown Bremerton is still suffering from the development of Silverdale Mall, which has attracted many of its downtown retailers. As a result, general real estate values in the downtown area, including the waterfront parcels, are fairly low. At the present time, waterfront sites are selling between $10.00 and $15.00 per square foot. Seattle contains a fairly active real estate market at the south end of Lake Union, which commenced in the mid to late 1980's. A number of mixed -use developments have been built, including Chandler's Cove, H. C. Henry Pier, and Lake Union Landing. Additionally, the St. Vincent de Paul Store at the southeast end of Lake Union is currently in the process of redevelopment. Wally Trace, of Trace and Associates, is the primary developer. The Clarke Consulting Group, Inc., has appraised each of these developments, and accurate File 134198 28 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach transaction data has been compiled. Considering the similarities in highest and best use, a number of the more recent transactions are analyzed for comparison purposes. Winslow on Bainbridge Island, has also exhibited some commercial growth in the recent past. A mixed -use waterfront development was built in 1990, and the underlying land acquisition was a market transaction. This transaction is also included for analysis purposes. The value of the subject land is based upon an analysis of its relative advantages and disadvantages, compared to the comparable sales. Adjustments are necessary for differences in location, access, size, site utility, highest and best use, site amenities including view, and other factors. In the adjustment process, sales are also typically adjusted upward for time, particularly when several years have transpired between the sale date and the subject date of valuation, and where an analysis of sales and resales in the district supports such an adjustment. Time adjustments utilized in this report have considered such data, as well as recognizing the inflationary trends present between 1975 and 1980, the recessionary trends present between 1980 and 1983, and the improving trends which have occurred from 1984 to the present date. Another factor which must be considered, although difficult to measure, is the apparent lack of waterfront sites in Edmonds. The subject site is the last available site on the downtown waterfront to be redeveloped at the present time, and the effects of supply and demand undoubtedly will cause upward pressures on land values in the district. Thus, the effects of supply and demand must also be considered in the comparison process. The following table provides a summary of the transactions utilized in this analysis. A more -detailed description of each transaction may be found on the pages following the table. After the sales description pages, each transaction is compared to the subject, leading to an indication of value for the underlying land. File 134198 29 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Table III - Summary of Land Sales Comp. Sale Sale Total SF LoWnd Price No.J Identi�on Date Price (lJplartdsl� SF 1 SWC 2nd Ave. & Main St 06/90 $400,000 14,400 $27.78 Edmonds, Washington 2 NWC 2nd Ave. & James St Current $1,040,000 41,550 $25.03 Edmonds, Washington Listing 3 SEC Madison Avenue & 02/90 $500,000 22,940 $21.80 Parfit Way Winslow, Washington 4 St Vincent de Paul Site 06/90 $3,000,000 69,425 $43.21 1001 Fairview Avenue North Seattle, Washington 5 Chandler's Cove Site 06/86 $3.250,000 146,168 $22.23 901 Fairview Avenue North Seattle, Washington 6 Subject 60,000 1 In the investigution of the land sales activity, it was found that waterfront parcels were purchased for their development potential on the uplands portion of the parcel, although some of the land sales included the adjoining tidelands. As a result, the - sales transactions will be compared to the subject in terms of price per square foot of uplands area. File 134198 30 THE CZAR CE CONSULTING GROUP Real Estate Advisors J Sw [as � la 0"ot w e..a...Lot t r. A. 11 47 41 4._V/ fe v 04 yt ~r9 ry r r: 2 3} ✓ : + I ' 'e C ' � 'r r ' r � + �ii J dw r e. o, a_os/ 4-,4W 4-041 4L (6T811-ooL f.oyo a_oss a -oar 4-0t3 '- T - Q f•Of a _ • A •-OA* 1� if` j I i 4 f-ON ,-0fS ;� ti i r' • ti DAMN Sr " c I cm 3[rAQ9 - 4-o57 I.56 _ OF EDMONDS 7mywwr RANT � ��a�7 f-a7t 1 A•osf q-os+ _ 1a1 a„� — , • p0�, ..14tr1► awyZ��-and y. a7+ �~ /6a�� ' e`y5 1, S9 4 y� col ALDER ,+�'C , M-4 - � o -- -�------L�-ors LL IN11011111i JI � Trn .. f � +•rer+ WALNUT ST. f-17t dp i IL----Z_ 1_oot !-wy ! o t- 1-005 �"'- - "2r a,.w.w m OOWYN-a r m SALES COMPARISONS 1 AND 2 MAP THE CLARKE CONSULTING GROUP Real Estate Advisors r ri.rl�ro.waw Oc4�rwrr+m t J n. 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ST > � x VALLEY ST; C, E > Fs RUT ST E ROV M E 11 0� — cw;cpv..aw "m SALES COMPARISONS 4 AND 5 MAP THE CLARKE CONSULTING GROUP Real Estate Advisors s Sales Comparison Approach Land Sale Comparison 1 Address: NWC Second Avenue S. and Main Street Edmonds, Washington Summary of Location: This is a prime commercial intersection in the Edmonds City Center, with surrounding property uses including office and retail facilities. This is a comer parcel, close to the Washington State Ferry Terminal. Sale Data: Sale Date: June 5, 1990 Sale Price: $400,000 Seller. First Western Development Buyer. P & L Enterprises Terms: Cash to seller Instrument: Warranty Deed Recording No.: AF900605-0540 Legal Description: Lots 1 and 2, Block 12, Plat of Edmonds in Snohomish County, Washington. Confirmation: Mark Zenger, seller. Site Data: Land Area: 14,400 SF (120' x 120') Zoning: "BC", Community Business, City of Edmonds. Use: Surface parking lot. Proposed two story mixed use building with first level office/retail, and second floor multi -family. Utilities: All available. Description: Rectangular shaped, comer parcel with a moderate slope downward in a westerly direction. Comparative Data: Sale Price/SF: $400,000 z- 14,400 SF = $27.77/SF Comments: This parcel was purchased by First Western Development in June of 1986 for a price of $200,000, or $13.89/SF. File 134198 31 THE CLARKE CONSULTING GROUP Real Estate Advisors File 134198 Sales Comparison Approach Land Sale Comparison 1 32 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Land Sale Comparison 2 Address: SWC 2nd Avenue and James Street Edmonds, Washington Summary of Location: This is a larger parcel located near the southwest portion of downtown Edmonds. This is a comer parcel, with the main frontage off of 2nd Avenue. In addition, the western property line of this parcel adjoins the Washington State Ferry holding lanes and has good visibility from Edmonds Way, the main arterial holdng downtown Edmonds with Interstate 5. Sale Data: Sale Date: Current Listing Sale Price: $1,040,000 Seller: Robert Henning Buyer. Not Applicable Terms: Cash Desired Cash Equiv. Assumpt.: Cash Equivalent Price: Instrument: Not Applicable Recording No.: Not Applicable Legal Description: A portion of Tax Lots 1-059 and 4-090 in Section 23, Township 27 North, Range 3 East, W.M., Snohomish County, Washington. Confirmation: Mrs. Robert Henning Site Data: Land Area: 41,550 SF Zoning: BC, Community Business, City of Edmonds Use: Vacant Utilities: All Available Description: Generally rectangular in shape, with a primarily level topography, at the grade of adjoining streets. File 134198 33 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Comparative Data: Sale Price/SF: $1,040,000 = 41,550 SF = $25.03/SF Land Sale Comparison 2 File 134198 34 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Land Sale Comparison 3 Address: SEC Madison Avenue and Parfit Way Winslow, Washington Summary of Location: This is a waterfront parcel, located southwest of Winslow's downtown core. Situated at the south end of Madison Avenue, neighboring properties are primarily commercial, office, retail, as well as marine -oriented, including several marinas. Sale Data: Sale Date: 02/26/90 Sale Price: $500,000 Seller. Carol Ann King Buyer. Washington Professional Building Partnership Terms: Cash to Seller Instrument: Warranty Deed Recording No.: AF No. 90030144 Legal Description: Parcel "A", Short Plat No. 1, Winslow, Washington. Confirmation: Kitsap County records and Gary Lyman, Appraiser. Site Data: Land Area: 22,940 SF Zoning: Commercial, City of Winslow Use: Mixed Use - Office/Retail Building Utilities: All Available Description: Waterfront parcel, generally rectangular in shape, with a slight downward slope from north to south. Good access is available off of Madison Avenue, and the site has an excellent marine view of Eagle Harbor. Comparative Data: Sale Price/SF: File 134198 $500,000 _ 22,940 SF = $21.80/SF 35 THE CLARKE CONSULTING GROUP Real Estate Advisors File 134198 Sales Comparison Approach Land Sale Comparison 3 36 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Land Sale Comparison 4 Address: St. Vincent de Paul Development 1001 Fairview Avenue North Seattle, Washington Summary of Location: This property is located on the southeast shore of Lake Union, at the intersection of Yale Avenue North and Fairview Avenue North. The immediate neighborhood of this parcel has undergone a fairly significant transition since the mid 1980's, from light industrial use to mixed -use commercial waterfront developments. This transition is continuing to intensify, with the development of the Fred Hutchinson Cancer Research Center. Sale Data: Sale Date: 06/90 Sale Price: $3,000,000 Seller (Lessor): St. Vincent de Paul Buyer (Lessee): Trace and Associates, Inc. Terms: Cash Equivalent Instrument: Ground Lease Recording No.: Not Applicable Legal Description: Lots 1 through 7, Block 70, Lake Union Shorelands, according to the official maps on file in the office of the Commissioner of Public Lands, in Olympia, Washington. Confirmation: Wally Trace and Lease Agreement Site Data: Land Area: Zoning: Use: Utilities: Description: Comparative Data: File 134198 69,425 SF C2-40, Under the jurisdiction of the city of Seattle Mixed -use waterfront development with a leasable area of 25,430 SF. All Available The site is rectangular in shape, generally level, and has direct access off of Fairview Avenue North. 37 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Sale Price/SF: $3,000,000 _ 69,425 SF = $43.21/SF Comments: This represents a 99-year ground lease between St. Vincent de Paul as the Lessor and Trace and Associates as the Lessee. The annual lease payment is $450,000, which is increased every five years based on the change in the Consumer Price Index. The annual lease payment is based upon a return to the market value of the land and improve- ments, which was estimated at $4,500,000. An annual return rate of 10% indicates an annual lease payment of $450,000. The building on the site has an estimated value of $1,500,000, indicating a balance of $3,000,000 attributed to land value. Land Sale Comparison 4 File 134198 38 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Land Sale Comparison 5 Address: Chandler's Cove Site 901 Fairview Avenue North Seattle, Washington Summary of Location: This property is located on the southeastern shore of Lake Union. This is an expanding area, with new development including mixed -use facilities incorporating restaurants, retail and marina facilities. Sale Data: Sale Date: 06/86 Sale Price: $3,250,000 Seller. Lone Star, Inc. Buyer: Bantz, Trace and Associates Terms: Cash Equivalent to Seller Instrument: Warranty Deed Recording No.: Not Known Legal Description: Lots 1 through 12, Block 71, Lake Union Shorelands Confirmation: Wally Trace Site Data: Land Area: 146,168 SF Zoning, M, Manufacturing, City of Seattle Use: This site was subsequently improved with Chandler's Cove, a mixed -use development featuring 3 one- and two-story steel and concrete retail and commercial buildings with a gross leasable area of 40,363 square feet, and a marina facility with 18 uncovered slips. Utilities: All Available` Description: Irregularly shaped parcel, generally level and at street grade. Comparative Data: Sale Price/SF: $3,250,000 _ 146,168 SF = $22.23/SF File 134198 39 THE CLARKE CONSULTING GROUP Real Estate Advisors File 134198 Sales Comparison Approach Land Sale Comparison 5 40 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Comparison of Sales to Subject: The sales previously tabulated indicate unadjusted sale prices ranging from $21.80 to $43.21 per square foot of uplands area. There are six common elements of comparison that should always be considered in the sales comparison analysis. These are summarized as follows: ♦ Real Property Rights Conveyed ♦ Financing Terms ♦ Conditions of Sale (Motivation) ♦ Market Conditions (Date of Sale) ♦ Location ♦ Physical Characteristics A transaction price is always predicated on the real property rights conveyed Generally, most transactions involving vacant land are transfers of the fee simple interest in the property. However, in some instances, the ownership interest conveyed is the leased fee estate, where the parcel is encumbered by a long-term ground lease. In the valuation process, adjustments must be made to reflect the differences between contract rent and market rent, and how this difference affects property price. Market rent is used to estimate the value of a fee simple estate. When a property is considered free and clear of all leases, its value is normally based on the market rent that it can command. The transaction price of a property that is sold subject to existing leases reflects the contract rent that it will generate during the term of the lease and market rent that will likely be achieved thereafter. In these situations, the real property interest that is sold or being appraised is the leased fee estate. The transaction price of one property may differ from that of an identical property due to different financing terns. For example, the purchaser of a comparable property may have assumed an existing mortgage at a favorable interest rate. In another case, a developer or seller may have arranged a buy -down, paying cash to the lender so that a mortgage with a below -market interest rate could be offered. In both cases, the buyers probably paid higher prices for the properties to obtain below -market financing. Conversely, interest rates- at above -market levels often result in lower sale prices. The adjustment for financing terms reflects an analysis of financing versus the definition of market value as stated within this report. Adjustments for conditions of sale usually reflect the motivations of the buyer and seller. For example, a developer may pay more than market value for lots needed in a site assemblage because of acting under duress. A sale may be transacted at a below -market price if the seller needs cash in a hurry. A financial, business, or family relationship between the parties may also affect the price of the property. Interlocking corporate entities may record a sale at a non -market price to serve their business interest. The conditions of sale adjustment analyzes all transaction according to motivational factors. File 134198 41 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Market conditions generally change over time, but the date of an appraisal is a specific time period. Therefore, past sales must be examined in light of the direction of change between the sale date of the comparable and the valuation date of the subject property. Changes in market conditions may be caused by inflation, deflation, fluctuations in supply and demand, or other factors. Although the adjustment for market conditions is often referred to as a "time adjustment," time is not the cause of the adjustment. Market conditions shift over time; they create the need for an adjustment, not time itself. The market conditions adjustment will consider the comparable sales versus the current appraisal date. An adjustment for location may be required when the locational characteristics of a comparable property are different from those of the subject property. Location adjustments are usually expressed as percentages that reflect the increase or decrease in value attributed to the property's location or neighborhood. If the physical characten'stics of a comparable property and the subject property differ in many ways, each of these differences may require a comparison and adjustment to the comparable. Physical differences may include size of parcel, topography, zoning, overall shape, and access/frontage. In the comparison process, each sale is compared to the subject, with adjustments made for differences using the six elements of comparison. Because like units must be compared, each sale is stated in terms of a unit, of comparison, which in this instance is price per square foot of uplands area. Real Property Rights Conveyed: The analysis of Comparison 4 is based on a ground lease agreement. Although the property rights of a fee simple estate were not conveyed, the lease payment was based on a return rate applied to the market value of the property at the time of the agreement and therefore, no adjustments are considered appropriate. The remaining comparisons represent transfers of fee simple interests, and no adjustments are required. Financing Terms: The comparable sales were purchased on a cash basis, with cash paid to the seller at closing. The valuation of the subject is also based on a cash or cash equivalent basis. As a result, no adjustment has been made for this element of comparison. Conditions of Sale (Motivation): Confirmation of these sale transactions failed to identify any unusual motivational factors impacting buyers or sellers. As a result, no adjustments have been made to the comparable properties for this element of comparison. Market Conditions (Date of Sale): The comparable properties reflect sale dates ranging from June, 1986 to June, 1990. In addition, Comparison 2 is currently listed for sale. Land value appreciation/depreciation is dependent upon localized market conditions, including the demand and supply of land, as well as the demand for space in improved properties. File 134198 42 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach In Edmonds, the demand for development sites and commercial space in the downtown area continues to increase, as evidenced by recent construction activity including Mariner Plaza on Second Avenue, south of Main Street, and the office/apartment building at 126 Third Avenue South, also south of Main Street. An additional office building is currently under construction at the northwest comer of Dayton and Third Avenue. Considering the demand and supply characteristics in Edmonds, an upward adjustment is considered appropriate for Comparison 1. Comparison 2, also situated in downtown Edmonds, is currently listed for sale at a price that appears to be above market value at this time. This parcel has been for sale for at least two years, and as a result, a downward adjustment is appropriate. Comparison 3 is a waterfront parcel located just southwest of the downtown core of Winslow in an area developed with other commercial buildings and marinas. This transaction occurred in February, 1990 and upward adjustments are appropriate for date of sale, recognizing the limited supply of waterfront parcels in Winslow, and the increasing demand for commercial space being generated by the growing population base of Bainbridge Island. Comparisons 4 and 5 are located in a developing waterfront district situated along the southeastern shore of Lake Union. Due to its close proximity to downtown, and ease of access along Eastlake and Fairview Avenue North, as well as the development changes that have occurred in this neighborhood since the mid 1980's, upward adjustments are appropriate for the transaction dates of both of these comparisons. Location: Locational adjustments are considered for each of the comparable land sales. Comparisons 1 and 2 are situated within the downtown core of Edmonds, but are non - waterfront sites. Considering the more limited supply of waterfront parcels in Edmonds, upward adjustments are appropriate for the superior locational characteristics of the subject. Comparison 3 is situated on the shore of Eagle Harbor, near downtown Winslow. Though Comparison 3 is a waterfront location, the subject has closer proximity to the downtown core of Edmonds, as well as better access and visibility. As a result, upward adjustments are appropriate to Comparison 3. Comparisons 4 and 5 are waterfront locations on the southeastern portion of Lake Union. Given the greater density of development in this neighborhood, and the exposure to greater volumes of consumers; Comparisons 4 and 5 have superior locations, indicating downward adjustments. Physical Characteristics: Physical characteristics of significance in this comparative analysis include issues such as shape, size, topography, access/frontage, and zoning. Comparison 1 is smaller than the subject and is a rectangular, corner parcel with good access/frontage, a File 134198 43 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach slightly sloping topography and a commercial zoning designation. Smaller parcels typically generate a higher sales price per square foot, and an initial downward adjustment is indicated. Remaining physical characteristics are similar. However, the subject has a superior view amenity due to its position on the waterfront, indicating an upward adjustment. Considering the subject's waterfront orientation, a slight overall upward adjustment is indicated to Comparison 1. Comparison 2, though slightly larger than Comparison 1, has similar physical characteristics. As a result, a similar upward adjust is appropriate for the waterfront oriented characteristics of the subject property. Comparison 3, though smaller than the subject, has inferior access/frontage characteristics. Remaining physical characteristics of Comparison 3 are considered similar. The adjustments for size and access/frontage are considered offsetting, and no adjustment for physical characteristics is made to Comparison 3. Comparison 4 has similar physical characteristics as the subject with regard to size, access/ frontage, shape, and zoning. As a result, no adjustments are considered appropriate to Comparison 4. Comparison 5 is twice as large as the subject indicating upward adjustments. Remaining physical characteristics are considered similar, and an overall upward adjustment is considered appropriate for Comparison 5. Summary Conclusion: In analyzing the comparable sales, we have made adjustments for the six common elements of comparison. The following table contains a summary of the adjustments made to the sales as described. File 134198 44 THE CLARKE CONSULTING GROUP Real Estate Advisors Table N - Comparable Sales Adjustrnerrt Grid Sales Comparison Approach r✓fk ?:.. r.. 7%1t1, AiYL//( Sale Data Subject Comp. No. 1 Comp. No. 2 Comp. No. 3 Comp. No. 4 Comp. No. 5 Sale Price $400,000 $1,040,000 $500,000 $3,000,000 $3,250,000 Size 60,000 14,400 41,550 22,940 69,425 146,168 $27.78 $25 D3 ;:: $21.80:� $43:21 $22 23 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.00% 0.00% 0.00% 0.00% 0.00% Adjusted Price/SF c'rTA M-03 $21.80 $43-21: 52.2-23 Financing Cash Cash Cash Cash Cash Cash Adjustment 0.00% 0.00% 0.00% 0.00% 0.00% Adjusted'Price/SF «<'S27.7&` $25.08 $21.80 $43.21 $22.23 Conditions of Sale Arms Length Arms Length Arms Length Arms Length Arms Length Arms Length Adjustment 0.00% 0.00% 0.00% 0.00% 0.00% Adjusted /SF t':;� 527':78 ?:S''. ; $25.03 $21.30 $22.23 Market Conditions 10/91 " 6/90 Listing 2/90 6/90 6/86 Adjustment 5.00% -5.00% 10.00% 10.00% 35.00% Ad 1 usted Price/SF �.r ?;%529:i:T n>:::::<;::::;:.:;z:;37$<. >>?;` ;`>;<'$23.98 $47 S3 $30A1. Location Waterfront CBD/ Edmonds CBD/ Edmonds Waterfront/ Winslow Waterfront/ Seattle Waterfront/ Seattle Adjustment 30.00% 40.00% 30.00% -10.00% -10.00% Adjusted Price/SF s>$3T9�° >:::<:>;« 533.29 '% .$3 $42.78$27.01 Size 60,000 14,400 41,550 22,940 69,425 146,168 Access/Frontage Good Good Good Avg. Good Good Shape/ Topography Irreg./Level Reg./Slop. Irreg./Slope Irreg./Level Irreg./Level Irreg./Level Adjustment 10.0% 10.0% 0.0% 0.0% 20.0% Adjusted Price/SF $41.71 SM-62 $31.17 $42.78 =41 Net Adjustment 50% 46% 43% -1% 46% ::,Adjusted: Price/SF $41.71 $36.62 $31,17 $42.78 S32-41 Rounded $42.00 $37.00 $31.00 $43.00 $32.00 File 134198 45 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach The above adjustment grid indicates a value for the subject ranging from $31.00 to $43.00 per square foot. Within this analysis, most emphasis is placed on the recent transactions that require the least amount of adjustment. Comparisons 3, 4 and 5 are waterfront sites like the subject property, and more emphasis is placed on the value range indicated by these comparisons. However, Comparisons 1 and 2 do provide additional supportive data for this value range. Based on this analysis, and considering the lack of comparable land available for development along the Edmonds waterfront, an appropriate value for the subject should range between $35.00 and $40.00 per square foot. Residual Land Value Analysis Developers typically use a land residual technique to determine land value. In conversations with local developers, it was found that this type of analysis is crucial to determining the price that can be paid for unique sites such as waterfront parcels, due to the wide range of prices paid for similarly located land. In the residual analysis, the land value is established by deducting the total construction cost (including developer's profit) from the estimated market value of the completed improved development. Improved Property Value Estimate: In order to establish an improved property value, a development scenario must be assumed. In discussions with planners at the city of Edmonds, it was found that the development potential of the subject would be similar to the two most recent developments on the waterfront, including The Regency on Edmonds Bay directly to the south of the subject, and the Edmonds Bay Office Building. Both of these developments have land -to -building ratios of approximately 1 to 1. Based on the highest and best use conclusions of this report, a mixed -use development of 60,000 square feet is assumed within this analysis. The uses would be divided between restaurant, retail, and office. The projected net operating income stream is based on market rents, which have been estimated at $18.00 per square foot for the restaurant space, $13.00 per square foot for the retail space, and $15.00 per square foot for the office space. All of these rates are triple net, with the tenant responsible for all real estate operating expenses. These rental rates are based on comparable rental data within buildings along the Edmonds waterfront and the downtown core area. Market value of the improved property is established by applying an overall capitalization rate to the projected net operating income stream. This capitalization rate is based on recent sales of commercial buildings similar in design and locational characteristics as the subject, and is estimated at 9.00%. The improved property value is estimated at $9,270,000, as indicated in the following chart. File 134198 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Table IV - Improved Property Value Analysis Restauraunt 10,000 $18.00 $180,000 Retail 20,000 $13.00 $260,000 Office 30,000 $15.00 $450,000 Total 60,000 $14.83 $890,000 Vacancy Calculation: Retail/Office @ 5%, Restaurant @ 2% -$39,100 Effective Gross Income $850,900 Indicated Overall Vacancy Rate 4.6% Operating Expenses: Reserves @ $0.10/SF $6,000 Vacant Expense @ $4.00/SF of Vacant Space $11,028 Total Owners Expense -$17,028 Net Operating Income $833,872 Cap Rate 9.00% Market Value $9,265,244 Rounded $9,270,000 Construction Cost Estimate: Construction costs are estimated using the Marshall Valuation Service, a nationally recognized cost index. Within the index, costs are final costs to the owner, and include normal direct building costs, and also indirect costs, such as architect's fees, engineer's fees, interim interest, sales tax, and contractor's overhead and profit. Items not included in the index are site improvement costs, developer's fees, developer's profit, and the interest carrying charge from construction completion to the point of stabilized occupancy. Site improvements are estimated at $3.00 per square foot, which includes grading, paving, landscaping, and utility hookups. Developer's fee and overhead is estimated at 5% of the hard construction costs. The interest carry from construction completion to stabilized occupancy reflects the negative cash flow during the initial lease -up period. Absorption for the subject is estimated at 18 months. Additionally, leasing commissions are calculated at 5% of the total projected rent over a four-year term. Leases are typically three to five years, and an average of four years is used in this analysis. Developer's profit for commercial developments generally ranges from 10% to 25%. For the subject property, File 134198 47 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach developer's profit is estimated at 15%, which is applied against the construction costs, as well as the projected land value. The total construction cost, exclusive of developer's profit and land acquisition, is $98.08 per square foot. This is somewhat higher than the range exhibited by two cost comparisons, both mixed -use developments located in downtown Edmonds, including Mariner's Plaza, and the office/apartment building located at 126 Third Avenue South. The Clarke Consulting Group, Inc. appraised both of these facilities prior to construction, and obtained the cost estimates of the developers. These cost estimates are summarized below. Table V - Cost Comparisons Hard Construction Costs (Exclusive of Developer's Rentable Area Hard Costs/SF Project Profit and Land Acquisibon (SF) of Rentable Area Mariner Plaza $1,344,362 17,108 $78.58 Office/Apartment Building 126 Third Avenue South $345,000 4,908 $70.29 Mariner Plaza and the Office/Apartment Building were developed in 1989 and 1990, respectively. Considering the increasing cost of construction, as well as the higher quality building assumed at the subject site, it is concluded the cost estimate provided by the Marshall Valuation Cost Service is reasonable. Residual Land Value: Assuming a market value of $9,270,000, and total costs of $7,094,130, the indicated residual land value is $2,175,870, rounded to $2,180,000. This represents a unit value of $36.33 per square foot. The following table summarizes the residual land value analysis. File 134198 48 THE CLARKE CONSULTING GROUP Real Estate Advisors Sales Comparison Approach Table Vl - Residual Land Value Analysis Good Quality Class 'C' Adjusted Base Cost $75.00 Gross Building Area 60,000 Total Building Costs $4,500.000 Additional Cost Items Site Improvements $180,000 Developers Fee Q 5.00% $225,000 Lease -up Carry $760,000 Leasing Fees $220,000 Subtotal $1,385,000 Construction Cost Estimate - Marshall Valuation$98.08/SF $5,885,000 Developers Profit (Land $ Improvements) Q 15.00% $1,209.130 Total Cost New $7,094,130 Improved Property Value $9.270,000 Less: Total Cost New 47,094,130 Residual Land Value $2,175,870 Rounded $2,1801000 Indicated Land Value/SF $36.33 Land Value Conclusion: The comparable sales analysis provided a range in value from $31.00 to $43.00 per square foot. Most emphasis was placed on the most recent sales that have waterfront locations, and the value range for the subject was concluded to range between $35.00 and $40.00 per square foot. The residual land value estimate based upon development costs provided a land value estimate of $36.33 per square foot, indicating that the value range of the comparable sales analysis is reasonable. Based on the data and analysis presented in this report, it is concluded the evidence best supports a market value estimate of $37.50 per square foot. Using this unit value, the following overall market value is estimated for the subject property. 60,000 SF @ $37.50/SF = $2,250,000 File 134198 49 THE CLARKE CONSULTING GROUP Real Estate Advisors FINAL. VALUE ESTIMATE The market value of the subject was analyzed using the Sales Comparison Approach, with additional support for the value estimate provided by a residual technique. The resulting unit value was then applied to the developable area, or uplands area of the site, for market value conclusions. The sales utilized represented the most comparable waterfront oriented parcels that have been sold. These land sales, particularly Comparables 3, 4 and 5, were subsequently developed into mixed -use commercial developments, which represents the highest and best use of the subject property as well. The value range indicated by these comparisons, after malting adjustments for differences, was concluded to be between $35.00 and $40.00 per square foot. File 134198 50 THE CLARKE CONSULTING GROUP Real Estate Advisors Appraisal Report Of: ANDERSON PROPERTY 100 Railroad Avenue Edmonds, Washington September 5, , 1991 us Wm. A. Smith, MAI REAL F_S T ATF 4,PF'R,4IS,ERS. CONSULTANTS ANALYSTS . SMID COMPANY CORPORATE I.D. NO.9i-1010E97 1 E53O SHORE OR. N.E:., SEATTLE, WASHINGTON 9B155-5B31 [2O6] 363-7454 VVM. A. SMITH, M.A.I. September 10, 1991 Mr. Larry Naughten, Mayor City of Edmonds 505 Bell Street Edmonds, Washington 98020 Re: ANDERSON PROPERTY 100 Railroad Avenue Edmonds, Washington Dear Mayor Naughten: At your request, I have completed my investigation of the prop- erty identified above, which includes a site having 45,129 square feet of usable land upon which was constructed two frame build- ings constructed in 1910, 1950, 1955, 1963, 1967 and 1974, having a total of 16,183 square feet. The purpose of my investigation was to estimate the Fair Market Value of the Leasehold Estate. Fair Market Value is defined as: "The most probable price which a property should bring in a com- petitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus." Im- plicit in this definition is the consummation of a sale as of a specified date, and the passing of title from the seller to buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and each acting in what he considers his own best interest; c. a reasonable time is allowed for exposure in the open market; Mr. Larry Naughten, Mayor September 10, 1991 Page Two d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto, and e. the price represents the normal consideration for the property sold unaffected by special creative _ financing or sales concessions granted by anyone associated with the sale. The valuation figure rendered herein is based upon the fact that the property is free and clear of all other liens and encum- brances. a This appraisal has been made in accordance with the Standards and Ethics of the American Institute of Real Estate Appraisers, and is subject to the Assumptions and Limiting Conditions contained on the following pages, and which are also make a part of this appraisal report. During the course of my investigation and analysis, I have checked sales of similar properties in the King County and south Snohomish County area, spoken with well informed persons familiar with real estate values, and inspected public records, all for the purpose of estimating the Fair Market Value of this property. r On the following pages you will find the methods and reasoning - used, along with other data used in estimating the value of the property. In the Addendum you will find photographs, details of r sales and other supporting data to assist in the review of this report. By reason of my investigation, and by virtue of my experience and training, I have formed an opinion of the Fair Market Value of this property, as of September 5, 1991, as being: _ ONE MILLION TWO HUNDRED FIFTY 'THOUSAND DOLLARS ....... ($1,250,000 T Sin cere-Ty_yours, _I m.0.mg.,M A WAS/jl TABLE OF CONTENTS Introduction: The Appraisal - A Judgment Tool Assumptions and Limiting Conditions Appraiser's Qualifications Boacy Property Address Legal Description Brief Property Description Ostensible Owner Assessed Value Tax Rate 1991 Real Property Taxes Snohomish County Assessor's Parcel Numbers Purpose of the Appraisal Definition of Fair Market Value Date of the Appraisal Regional Data Edmonds City Data Neighborhood Description Site Description Highest and Best Use Improvement Description Land Value Comparable Land Sale Analysis Comparable Land Sale Analysis Correlation and Conclusion Appraiser's Certificate Addendum: Comparable Land Sales Photographs Aerial Photograph (Exhibits 1 - 9) (Exhibits 11 - 16) Page 1 1 2 2 2 2 3 3 3 3 4 5 9 11 12 13 14 15 18 22 23 24 TYhi}ii+o A B C INTRODUCTION THE APPRAISAL - A JUDGMENT TOOL The purpose of this appraisal report is to estimate Fair Market _ Value of the property rights outlined herein. Historically, Fair Market Value has a direct relationship to the anticipated future rental income from the property, which itself has a degree of risk in its realization. Thus, real estate investments do carry a degree of risk depending upon the burden of management, the degree of liquidity (or non -liquidity) and unexpected or un- anticipated outside influences. At any point in time, either prior to the effective date of this appraisal or subsequent r thereto, conditions or circumstances, intrinsic and extrinsic, may change requiring the developer, subsequent owners and lend- ers, to analyze the risk as it may effect each. This appraisal therefore, offers only an opinion of the present worth of anticipated benefits, subject to known risks as measured by market data that is available on the effective date of this -a appraisal. r An appraisal is an impartial opinion of value of a given parcel of real estate and does not fix or set the price of the property. r As an opinion of value, an appraisal may, be used as a negotiating tool between buyer, seller and/or lender. - The assumptions of the appraisal, unless otherwise defined, are _ that, as of the effective date hereof, the subject property is being operated on a stabilized basis as to the projected income and expenses, and that the property is under competent management on such date. If; for any reason, subsequent events, inter- national, national, regional or local, effect the value of the . property, this Appraiser assumes no responsibility for the effect on value. i ASSUMPTIONS AND LIMITING CONDITIONS Except where expressly stated to the contrary, the following Assumptions and Limiting Conditions are governing upon this appraisal. 1. "NEITHER ALL NOR ANY PART OF THE CONTENTS OF THIS REPORT SHALL BE CONVEYED TO THE PUBLIC THROUGH ADVERTISING, PUBLIC RELATIONS, NEWS, SALES OR OTHER MEDIA, WITHOUT THE THE WRITTEN CONSENT AND APPROVAL OF THE AUTHOR, PARTICULARLY AS TO VALUATION CONCLUSIONS, THE IDENTITY OF THE APPRAISER OR FIRM WITH WHICH HE IS CONNECTED, OR ANY REFERENCE TO THE AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS, OR TO THE MAI DESIGNATION. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the client without the previous written consent of the Appraisers or the client and in any event, only with proper qualification. 3. The appraisers herein, by reason of this report, are not required to give testimony or attendance in court, or at any governmental hearing with reference to the property in ques- tion, unless arrangements have been previously made. 4, That the legal descriptions furnished to the Appraiser are correct.• 5. That no survey was furnished the Appraiser. 6. That the title to the properties appraised in this report is good and marketable. 7. That the properties are appraised as if owned in fee simple title without encumbrance. 8. That any title evidence pertaining to easements, leases,' reservations and other parties -in -interest furnished the Ap- praiser is correct, but that no responsibility nor liability is assumed if proved otherwise. 9. That responsible ownership and competent management exists for the subject property. 10. That no guaranty is made for the accuracy of estimates or opinions furnished by others and contained in this report. The Appraiser has accepted as correct and reliable certain ii information provided by the employer, his counsel or his - agent, which was used in preparation of the report. Other data came from sources believed reliable, but no responsi- bility nor liability is assumed for complete accuracy. 11. That no responsibility nor liability is assumed on account of matters of legal character affecting the property such as - title defects, encroachments, liens, overlapping property lines, nor is any opinion on the title rendered herewith. 12. That the distribution of the total valuation between land and improvements applied only to the utilization of the _ properties to their Highest and Best Use, as delineated in - this report. 13. That the values assigned to improvements shown in this - report are in proportion,to the contribution said improve- 1 ments make to the value of the properties, as a whole. The separate valuations for land and buildings must not be used in conjunction with any other appraisal, and are invalid if n so used. - 14. That compensations for appraisal service is dependent only upon delivery of this report. 15. That the values found by the Appraiser are in no way con- tingent upon the compensation to be paid therefore. a 16. The type and grade of soils and subsoils mentioned in this report are believed to be correct from observation and knowledge of the area, but typing and analysis were not made. 17. The land, and particularly the soil of the area under appraisement, appears firm and solid except as noted. Sub- sidence in the area is unknown or uncommon, but this Ap- praiser does not warrant nor accept any liability if this condition should occur. Subsurface rights (minerals and oil) were not considered in making this appraisal. 18. That any plans and specifications furnished the Appraiser show intent of the building, but said Appraiser assumes no responsibility nor liability for their correctness. 19. The Appraiser inspected the building or buildings involved in this appraisal report, and damage, if any, by termites, dry rot, wet rot, or other hidden infestations or other occurrences not readily apparent are not his responsibility, and no liability is assumed for same. 20. That all analyses and conclusions in this report assumes and iii is based upon legal and conforming use, and that all permits required by local, state and federal regulatory authorities have been, or will b,e, issued based upon the plans and spec- ifications furnished the Appraiser. 21. That this appraisal report and its findings are for the exclusive benefit and use of the client, and may not be used for the benefit of any third party without the Appraiser's express consent. 22. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the Appraiser. The Appraiser has no knowledge of the existence of such materials on or in the property. The Appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other poten- tially hazardous materials may affect the value of the prop- erty. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. iv NQ APPRAISER'S QUALIFICATIONS - WM._ A. SMITH, MAI I— BUSINESS AFFILIATIONS: - Member, American Institute of Real Estate Appraisers (membership No. 2891) The American Institute of Real Estate Appraisers con- ducts voluntary program of continuing education for its o� designated members, MAI's and RM's. AS OF THE DATE OF THIS REPORT, WM. A-. SMITH HAS COMPLETED THE REQUIREMENTS OF THE CONTINUING EDUCATION PROGRAM OF THE AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS. j°- President, Washington -British Columbia Chapter No. 8, American Institute of Real Estate Appraisers, 1970 �.r Member and Vice Chairman of Multiple Family Property Committee, American Institute of Real Estate Appraisers, 1964 - 1969 i Member, Conventional Loan Committee, Mortgage Bankers Association Qom, 1964 - .1969 Member Seattle -King County Board of Realtors. BUSINESS HISTORY: President, Wm. Smith Company, Real Estate Appraisers, Consultants and Analysts, 16530 Shore Dr. N.E., Seattle, Washington 98155 (206) 363-7454, 1970 to present Vice President and Manager, Commercial Mortgage Loan Department Sherwood and Roberts, Inc., 1973 - 1975 Senior Vice President and Manager, Income Property Loan Depart- ment, Coast Mortgage Company, now known as Rainier Financial Services, Seattle, Washington, 1958 - 1970 Reviewing Appraiser, Income Loan Department, Pacific Northwest_ Mortgage*Loan Office, The Prudential Insurance Company of America, Seattle, Washington, 19.53 - 1958 Real Estate Salesman, John Beck Realty, Everett, Washington, 1948 — 1953 EDUCATION: Associate Bachelor of Arts degree from Everett Junior College, Everett, Washington . '� v Bachelor of Arts degree, Major Finance, University of Washington 1953 Real Estate Appraisal I, University of Washington 1960 Real Estate Appraisal II, Stanford University, 1958 Attended numerous courses and seminars relating to real estate appraisals. APPRAISAL EXPERIENCE: Since 1953, as real estate appraiser and reviewing appraisals of all types of income -producing real estate including but not limited to industrial buildings, shopping centers, retail stores, farms, service stations, furniture marts, trailer parks, mobile home parks, nursing homes, convalescent hospitals and special purpose properties including the Space Needle, Seattle, Washington APPRAISAL CLIENTS: The Prudential Insurance Company, Newark, New Jersey Metropolitan Life Insurance Company, New York, New York Bankers Life Insurance Company of Nebraska, Lincoln, Nebraska National Life Insurance Company, Montpelier, Vermont Penn Mutual Life Insurance Company, Philadelphia, Pennsylvania Teachers Insurance and Annuity Association, New York, New York Safeco Insurance Company, Seattle, Washington Bowery Savings Bank, New York, New York Lincoln Savings Bank, Brooklyn, New York Pacific First Federal Savings and Loan Assoc., Tacoma, Washington Metropolitan Federal Savings and Loan Assoc., Seattle, Washington Crown Life Insurance Company, Toronto, Canada Washington State Retirement System, Olympia, Washington State of Washington Highway Department, Olympia, Washington City of Seattle, Washington City of Bothell, Washington Washington Capital Corporation, Seattle, Washington Equitable Savings and Loan Association, Portland, Oregon Security Savings and Loan Association, Kent, Washington Columbia Federal Savings and Loan Assoc., Wenatchee, Washingtgn Chevron, U.S.A., Inc., Seattle, Washington CHG International, Inc., Tacoma, Washington Covenant Mortgage -Corp., Mercer Island, Washington Gillespie Investments Ltd., Vancouver B.C. Econo Mini Storage, Inc., Bellevue, Washington Business Parks Northwest, Seattle, Washington - PROFESSIONAL TERRITORY: Washington - Oregon - Alaska - Hawaii - Canada vi :�1 PROPERTY ADDRESS: The property address of the subject property is: 100 Railroad Avenue Edmonds, Washington LEGAL DESCRIPTION: Parcel A: °- That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the northwesterly production of the southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the westerly line of right-of-way of Great Northern Railway Company, thence southwesterly along westerly margin of said Great Northern right-of-way 17.86 feet to the TRUE POINT OF BEGINNING; thence north 66 degrees 08' east to a point of intersection with the inner harbor line, said point being south 45 Degrees west, a distance of 56.43 feet from the southwesterly margin of the northwesterly production of Main Street; thence south 45-degrees west 26.67 feet; thence south 56 degrees 43 east 310.09 feet, more or less, to a point of intersection with the Government Meander Line; thence in a southeasterly direction to a point on the west- erly margin of the Great Northern right-of-way which is 850 feet northeasterly on the south line of Government Lot 2, as measured along the westerly margin of the Great Northern right-of-way; thence northeasterly along the westerly margin of the Great Northern right-of-way to the TRUE POINT OF BEGINNING. Parcel B: That portion of Government Lot 2, Section 23, Township 27 North, Range.3 East, W.M. and the tidelands of the first class in front thereof, described as follows: Beginning at a point on the westerly line of the right-of- way of the Great Northern Railway Company 650 feet northerly (measured along said right-of-way from the south line of said Lot 2; thence northerly, along said westerly line of the right-of-way, 200 feet; thence westerly at right angles to said right-of-way to a point in the meander line of of 1 Puget Sound; thence north 56 degrees 43' west 315.09 feet, f more or less, to a point on Inner Harbor Line; thence south 45 degrees west along said Inner Harbor Line 175.12 feet; thence south 51 degrees 57' east 330.28 feet, more or less, to meander line; thence south 49 degrees east to the POINT OF BEGINNING. All situate in the County of Snohomish, State of Washington. BRIEF PROPERTY DESCRIPTION: The property includes a site containing a total of 45,129 square feet of upland (usable land), according to the Snohomish County Assessor's Office, upon which is situated a sales office and warehouse building containing 16,183 square feet constructed in 1910, 50, 55, 63, 67 and 74. Total site area, including tide— lands, is 103,610 square feet. OSTENSIBLE OWNER: The Snohomish County Assessor's Records show the taxpayer of the property to be in the name of Anderson Marine, Inc., and Howard V. Anderson, Jr. J ASSESSED VALUE: The Snohomish County Assessor's Records show the following as— sessed values for 1991: Land $1,361,900 Improvements 150,500 Total Assessed Value $1,512,400 TAX RATE! The actual 1991 levy rate for this property is $14.05650 per $1,000 of assessed value. 2 1991 REAL PROPERTY TAXES: $21,259.05 SNOHOMISH COUNTY ASSESSOR'S PARCEL NUMBER: 232703-1-052 232703-1-038 232703-1-054 232703-1-040 PURPOSE OF THE APPRAISAL: The purpose of this appraisal is to estimate the Fair Market Value of the subject property, free and clear of all liens and encumbrances. DEFINITION OF FAIR MARKET VALUE: Fair Market Value is defined as: "The most probable price which the property improvements should bring in a competitive and open market under all conditions requisite toa fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus." Implicit in this defi- nition is the consummation of a sale as of a specified date, and the passing of title from the seller to buyer under conditions whereby: a. buyer end seller are typically motivated; b. both parties are well informed or well advised, and each acting in what he considers his own best interest; c. a reasonable time is allowed for exposure in the open market; 9 d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the leasehold improvements sold unaffected by special creative financing or sales concessions granted by anyone associated with the sale. DATE OF THE APPRAISAL: The date of this appraisal is September 5, 1991. The Appraiser assumes no responsibility for events occurring sub— sequent to the appraisal date which might effect the value of this property. 4 REGIONAL DATA Washington, traditional gateway to Alaska and the Far East, is a leader in the vital areas of aircraft production, nuclear re- search, lumbering and actual and potential waterpower production. It is also a land of rugged beauty that particularly appeals to lovers of the great outdoors. The cascade Mountains, running north and south, divide the state in two, the eastern part comprising about three -fifths of the to- tal area. The Olympic Mountains make up the northwest corner of the state, while the Puget Sound lowland lies between the Olympic Mountains on the west and the Cascade on the east. In the south- west corner is the Coast Range, which extends south into Oregon. East of the Cascades are the Rocky Mountains in the north and the Columbia Plateau in the south.. Most of the state's larger cities, including Seattle and Tacoma, are in the western region along Puget Sound, an unusual two hun- dred mile arm of the Pacific Ocean; it varies in width up to forty miles and harbors more than three hundred islands. This area has a milder climate than any other in'the country that is as far north. Generally, the weather is drier in the east than in the west, which receives moist Pacific winds and considerable rainfall. Principal irrigated regions are in the Columbia Basin and the valleys of Walla Walla, Snake and Yakima Rivers. ' Washington is a leading producer of apples, wheat and hops. Livestock and livestock products make up a third of the total farm revenue, while commercial fishing is significant. Addition- ally, aerospace and its related industries contributes substan- tially to the overall economy of the state, with the Puget Sound area dominating in that respect. f Today, the state is diversifying its indu.stry, with less depen- dency on federal defense spending. One area of concentration is the brisk tourist trade, which has gained greatly in recent years as more facilities are built to augment the exceptional hunting, fishing and skiing available. Mount Rainier, the Olympic Na- tional Parks and the Grand Coulee Dam National Recreation area, are among the major attractions. The Seattle Center, consisting of structures from the 1962 Century 21 Exposition, includes a monorail and 606 foot "Space Needle". Originally, Washington itself had been but the northern portion of the massive Oregon Country, the two states therefore share, for the most part, a common history. Conflicting British and American claims to the area threatened briefly to trigger a war during the 1844 U.S. Presidential campaign. Candidate James K. Polk claimed that all the region south of latitude 54 degrees, forty minutes, belonged to the United States, and the cry of 5 >',u "Fifty-four Forty or Fight!" was frequently voiced. But diplo- macy ultimately prevailed, and in 1846, Polk, as President, made a treaty with England setting the boundary at the present 49th parallel. Statehood came in 1889. Washington has had its share of hard times and controversy. The period after World War I was one of discontent and strife in the labor field. There were many disputes, especially between busi- nessmen and the Industrial Workers of the World (IWW), violence erupted at Centralia. During World War II, the state's sizable Japanese -American population suffered discrimination and disrup- tion, over 15,000 people were displaced eastward. In 1965, an earthquake struck, causing an estimated fifteen million dollars damage. Recently, on a sensitive and continuing source of fric- tion, the U.S. Supreme Court upheld the right of the state to regulate fishing by Puyallup and Ni.squally Indians in the inter- est of conservation, provided the state does not discriminate against the Indians in so doing. The Indians, who fish not only for their own needs but commercial as well, use "set" nets, which Washington has outlawed. Meanwhile the controversy surrounding the issue goes on. On May 18, 1980, the state of Washington was severely impacted by an eruption of Mt. St. Helens, which is located approximately seventy-five miles south of Seattle. While being dormant for many years, for approximately three weeks prior to the eruption, the mountain experienced numerous earthquakes and tremors. The major eruption; which took place on May 18, 1980, devastated the immediate area surrounding the mountain, and particularly to the north, by literally blowing down hundreds of acres of timber and spewing volcanic ash, which affected communities to the north and east as far as Yakima, Ellensburg, Ritzville and Moses Lake. The cascading ash and the melted snow flooded the Toutle River, which runs westerly from the mountain and which in turn flooded the Cowlitz River, which in turn flows into .the Columbia River. The millions of cubic yards of volcanic ash finally settling in the Columbia River reduced the maximum depth from forty feet to ap- proximately seventeen feet average, thus virtually stalling ship- ping on the river. The total cost of repairing bridges, roads and other properties affected by the eruption have been estimated to be two billion dollars. Not only has the timber industry been severely impacted, the headlines and television reports about the original eruption, and two subsequent eruptions have left the im- pression elsewhere throughout the country that much of the Pa- cific Northwest remains an ash choked waste land, thus severely affecting the tourist industry. It will be many months or years that full recovery from this devastation will be realized. Io- date, Seattle remains virtually unaffected because of the ash fallout, however, the economic effect of the eruption has been felt. 0 'PM rg Shortly after the eruption of Mt. St. Helens, gloomy predictions suggested that a large part of Eastern Washington affected by the ash fallout would suffer immeasurably because of the chemical ., makeup of the ash and its affect on fertile soil. Indeed, many of Eastern Washington farmers did suffer because of the effects of the powdery substance on farm machinery, but is is interesting to note, that each year since, bumper crops have been the rule, rather than the exception, particularly as to our apples and r� wheat harvest. The commercial fishing industry in the Puget Sound area is in virtual shambles as a result of numerous judicial decisions, which have favored Washington Native Indians, as well as natural causes particularly as to weather. The catch of salmon and King crab has dropped by approximately seventy percent, and the Gover- m nor recently declared that industry as a state of emergency, - which will allow many to acquire loans at lesser than market rates in order to maintain their fishing equipment. The recent and dramatic drop in the mortgage loan rates has brought about vast improvements in the home building industry, which in turn has brought the lumbering industry back to life. The most recent unemployment figures available for the state of Washington, indicates a slightly less than nine percent level, which exceeds the national levels. A majority of this'unemploy- - ment is the result of the seriously affected three major indus- tries here in the Puget Sound area. While some of the news about the region sounds less than favor- able, there are some bright and strong areas that tend to compen- sate or even overshadow the negative aspects. Among these are the fact that western Washington, particularly the Greater Seat- tle Area, has developed a strong service industry base. This in- cludes financial services such as banks and thrift institutions. Western Washington has also seen a phenomenal growth in high A technology firms, particularly in computer component manufactur- ing and computer software. A number of bio-technology companies - have been formed and have contributed significantly to the level of high technology development. } One of the major forces in the economic stability and level of the region is the boom in the demand for and sales of commercial jetliners, of which The Boeing Company in the Puget Sound area is r� the major player. The Boeing Company predicts a demand for jet- liners of more than 9,900 aircraft worth approximately 626 bil- lion dollars, enough to keep the factories in the Puget Sound and the 747 Plant in Everett going into the year 2005. The forecast is up 27% from 1989. The hoeing Company controls about 60% of the world-wide market. At present the backlog for The Boeing Company is eighteen hundred jets worth 86 billion dollars. A significant part of that backlog is represented by the 747-400, J .- 7 'M which is manufactured at the Everett plant. Present employment level in the Puget Sound Region is 81,000. "' A recent and significant development concerning the economy of Navy's the region was the announcement on April 17, 1984, of -the base for an aircraft battle fleet. choice of Everett as bein. the Construction is presently underway for the required pier, as well as the dredging necessary for the carrier fleet. Based upon the total and military employment Navy's estimates, the civilian level upon completion of the base in 1992, will be 13,340� In suite of the economic ups and downs experienced, Washington to live state is still one of the most desirable areas in which districts throughout -the and raise a family. The various school state take pride in the better than average learning level and the enrollment demand for our institutions of higher learning at tests to the general educational level from the lower schools. The recreational options available are virtually unsurpassed by sports -� any other state in the country. The fresh and salt water bodies for fishing is excellent; the number of of water provide boating; the mountains provide excellent areas sul:.erb pleasure for snow skiing; the sparsely developed areas throughout the state of Washington are an unending; source of game huntinig; and finally, the unspoiled beauty of our forests and fountains are a natural for camping and hiring, and the mild weather, both summer to and winter, in many cases, allow these recreational activities continue year around. In conclusion, the state of Washington with all of its natural beauty has experienced problems of various types over the years, drop but has recovered admirably in each caSe., With the recent dramatic iDerease in housinstarts has been in interest rates, a noted, which has improved cons and lumbering activit,� here in the Puget Sound area. These conditions, along with the ercial reduced cost of jet fuel, will ivaprove the earnings of coma It airlines with an increased demand for new jet liners. appears than 1988 that 19907 will be better from a business standpoint, and 1989. 8 L,jw '%W EDMONDS CITY DATA Edmonds, located in the southwest corner of Snohomish County, is situated between Puget Sound on the west and Pacific Highway 99 on the east. The Corporate City Limits extend southerly to the King -Snohomish County line, and is three miles north of the northerly City Limits of Seattle. The population, actual and projected, is as follows: U.S. CENSUS PROJECTED 1.940 1950 1960 1970 1989 - Within City Limits 1,288 2,057 8,016 232998 30,000 Within County 88,754 111,580 172,199 265,236 360,000 Source of projection: City Projection from City Planning Depart- ment; County Projection from Technical Report #10, a supplement to Snohomish County's General Land Use Plan. m. Edmonds has a mayor -council form'of government, and is highly ef- ficient from the standpoint of Zoning Ordinances and Building Codes. The Police Department has thirty-one employees, while the Fire Department has sixteen full time employees and thirty-five volunteers. Because of its location, Edmonds has over'the years become to be known as the ferry gateway to the Olympic Peninsula. Being on somewhat of a hillside, many of the properties within the city limits have a spectacular view westerly to the Puget Sound and the Olympic Mountain Range. The view and quiet small-town atmo- sphere has helped to promote the reputation of the city as being a professor and retirement community, with many of the University of Washington professors maintaining a primary residence in the city. During the past fifteen years, and again due largely to the abun- dant view sites, the city of Edmonds has seen a spectacular growth in multifamily rental and condominium developments. A good share of this development has taken place along Fifth Avenue South, the main north/south arterial serving Edmonds from the King -Snohomish County area and Highway 99. The growth has been 9 VA so dynamic that at one time the City Council elected to impose a moratorium on further construction pending a study of needs, at- tempting to eliminate an over building situation. Ev/ Probably one of the most interesting aspects of the commercial activity in Edmonds is the Milltown Shopping Center complex, lo- cated close to the downtown business district, which is a con- verted automobile repair and sales facility. The building has been extensively remodeled concentrating on the Old West motif, bbe and numerous small shops occupy the building, which is surrounded by period antiques. Another interesting aspect of commercial development in the down- town business district of Edmonds is the Harbor Square develop- ment, 10.893 acres located on the south side of Dayton Street, between Sunset Avenue and Highway 104. This site has been devel- oped into nine detached buildings containing in excess of 156,000 square feet, and occupied by a variety of tenants in retail, of- fice and warehouse use. In addition, the site includes a fifty- nine unit motel. ', . The city is served by virtually every major bank through branches that serve the major employment center in the area, Seattle. ��. One of the major forces in the economic stability and level of the city of Edmonds and south Snohomish County is the boom in the demand for commercial jetliners, of which The Boeing Company in 'j the Puget Sound area is the major player. The Boeing Company predicts a demand for jetliners of more than 9,900 aircraft worth approximately 626 billion dollars, enough to keep the factories in the Puget Sound and the 747 Plant in Everett going into the year 2005. The forecast is up 27% from 1989. The Boeing Company controls.about 60% of the world-wide market. At present the backlog for The Boeing Company is eighteen hundred jets worth 86 billion dollars. A significant part of that backlog is repre- sented by the 747-400, which is manufactured at the Everett plant, ten miles north of Edmonds. Present employment level at the Everett Boeing Plant is 23,000. A recent and significant development concerning the economy of south Snohomish County was the announcement on April 17, 1984, of the Navy's choice of Everett as being the base for an aircraft battle fleet. Construction is presently underway for the re- quired pier, as well as the dredging necessary for the carrier fleet. Based upon the Navy's estimates, the total civilian and military employment level upon completion of the base in 1992, will be 13,340• In conclusion, the city is well established and enjoys a good form of government, has a better than average school system, and enjoys above average demand for both single and multifamily fa- cilities. 10 b. s NEIGHBORHOOD DESCRIPTION " The subject property is located approximately two blocks south- west of the business district of Edmonds, in a neighborhood that is dominated by maritime activity including one of the largest pleasure boat moorage facilities in Snohomish County. Admiral Way and Railroad Avenue parallels that waterfront of Puget Sound, and properties on either side have been improved with marine re- pair facilities, as well as small pleasure boat sales, service and storage. To the north of Dayton Street, along Admiral Way, includes similar types of activities, but along with some multi- family structures built in the late sixties which enjoy a spec- tacular waterfront view. At the foot of Dayton Street, on Admiral Way, are two recently completed office buildings, one of which has a total of 16,500 square feet of gross area, and 13,200 square feet of net rentable area; and the other a 20,766 square foot combination retail, of- fice and restaurant building. The latter building has a total of 6,167 square feet in the lower, or ground level, in three struc- tures, and 14,599 square feet in the second floor. Both of the buildings have first class restaurant facilities on the top „o floor, which allows a view of Puget Sound. - The Washington State Ferry System has a terminal adjoining the subject, and ferry service is between Edmonds and Kingston. Highway 104, provides direct access to the terminal from south - Snohomish County and north King County. ` On the south side of Dayton Avenue, between Highway 104 and Admiral Way, is a site containing approximately eleven acres upon which has been constructed in the last ten years, eight ware- house, retail and office buildings containing a total of 160,000 square feet, in addition to a 28,000 square foot, fifty-nine unit ._ motel building. This project, known as Harbor Square, was con- structed on land leased from the Port of Edmonds. e., Directly across the street east from the subject property is the Amtrak Terminal and a large parking lot. This lot serves primar- ily the walk-on passengers for the ferry. h . Adjoining the subject property to the south is the Regency on Edmonds Bay, a large combination office, retail and restaurant building which is,the subject of the comparable sale referred to later in this report. In conclusion, the neighborhood is outstanding from a location standpoint, being located near the downtown business district of Edmonds, and having excellent access to the local and regional 1 arterial system. .J M 11 ' SITE DESCRIPTION The subject site is an irregular shaped parcel of land located on the west side of Railroad Avenue, just south of Main Street in Edmonds, Washington. The site is generally level with a slight downward slope to the beach or water line of Puget Sound. The site has approximately « 260 feet of frontage on Railroad Avenue, and a total depth of 397 and 400 feet, for a total site area of 103,610 square feet. The usable or upland portion of the site, however, is 175 feet in depth, for a total usable area of 45,129 square feet. The term usable or upland refers to the portion of the site which is buildable and usable above the high water line. The site dimen- sions and area are according to the Snohomish County Assessor's Office. All utilities are in and serving the site and include electrical s power furnished by Snohomish County P.U.D., telephone furnished by General Telephone Company, water and sewer furnished by the city of Edmonds and natural gas furnished by the Washington Natural Gas Company. *W Zoning for the site is Commercial Waterfront which has principal permitted uses of marine and waterfront oriented developments. y_ There is a minimum setback of fifteen feet landward. Access to the site is from Railroad Avenue which is a fifty foot right-of-way and allows parallel curb parking on the west or wa- ter side of the street. There are concrete curbs and sidewalks. _ Railroad Avenue turns into Admiral Way at approximately Dayton Street, south of the subject property. The site, as earlier noted, is located at the southwest corner of Railroad Avenue and Main Street and adjoins the Washington State Ferry Dock which accommodates numerous Puget Sound crossings from Edmonds to Kingston. The site therefore has excellent exposure to both pedestrian and vehicular traffic utilizing the ferry 67 system. To the east of the subject property is a pay parking lot utilized primarily by ferry passengers. This parking lot is part of the Burlington Northern Railroad and Amtrak Terminal. Adjoining the subject property to the south is a large 42,118 square foot frame building occupied as retail, office and a restaurant. Other improvements on the water side of Railroad Avenue extending Lsoutherly to and including Admiral Way are multifamily resi- dences, office buildings, restaurant and the Port of Edmonds J 12 IMI Marina generally located southwesterly of Dayton Street: A review of the Aerial Photograph, in the Addendum, will reveal the fact that the _subject property is within two blocks of the downtown business district of Edmonds. 1 HIGHEST AND BEST USE I A � E � Highest and Best Use is often defined as: "That legal and feasi- ble use of land which may reasonably be expected to yield the highest net return to the land over a given period of time." •- Highest and Best Use is often dictated by the zoning as deter- mined by local authority. The subject property is zoned for Commercial Waterfront Use, which has a rather wide range of uses but with emphasis upon marine oriented developments. The neighborhood has a mixture of uses including industrial, of- fice and commercial, with the industrial use found primarily south of Dayton Street and on the east side -of Admiral Way. The uses in the immediate neighborhood include office, commercial and multifamily, all of which are oriented to the water. The Wash- ington State Ferry Terminal for the run between Edmonds and Kingston adjoins the subject property to the north. While the site is presently.improved with a warehouse and sales building, these improvements do not contribute to the overall " value of the land and therefore more intense development of the site should logically be considered. Should future development to a more intense use be appropriate, the development would have to receive approval by the city of Edmonds, as well as meeting all requirements of the Shoreline Management Act, which could prove to be difficult hurdles to overcome. The city of Edmonds proposes acquisition of the site for the de- velopment of a city park. While this use is quite appropriate for city owned property, it does not meet the definition of High- est and Best Use since city parks are traditionally non -income producing, therefore could not yield a net return to the land. In concluding the Highest and Best Use, the Appraiser must there- fore adhere to the definition and ignore the potential or planned use by the city of Edmonds. _ Based upon the actual land use in the immediate neighborhood, and particularly on the west or water side of Railroad Avenue and Admiral Way, it is the Appraiser's opinion that the Highest and Best Use for the subject property is for either rental office or office condominium use. 13 06. IMPROVEMENT DESCRIPTION The site is currently improved with two detached buildings, a sales office containing 2,983 square feet, constructed in 1950, 1963 and 1967. A second building currently used as boat storage containing a total of 13,200 square feet, was constructed in 1910 and 1955. Both buildings are frame construction in fair to poor condition. It is the Appraiser's conclusion that the existing improvements on the site do not contribute value to the land and would probably cost as much to remove as they may be physically worth. 14 M LAND VALUE Based upon the Appraiser's conclusions as to Highest and Best Use, the records of King and Snohomish County were searched for sales of comparably zoned land in Edmonds, as well as north King County and south Snohomish County. Nine sales were noted. The details of the sales are set forth in the Addendum, on pages A-1 through A-9, and which are further identified as Comparable Land Sales L-1 through L-9. The land parcels ranged in size of from 6,990 to 171,625 square.feet and ranged in sale price of from $5.97 to $27.77 per square foot. The sales ranged in date from March 1989 to March 1991. Since the properties differed in some respects as compared to the subject, to make a proper comparison these differences or dissim- ilarities, should be considered. Following this section will be found a Comparable Land Sale'Analysis, which sets forth the per- tinent details of the sale transactions, along with the Ap- praiser's estimate of adjustments for points of comparability or dissimilarity. Adjustments were made on the basis of percentage factors, with those factors less than 1.00 indicating superiority - as compared to the subject, while those factors greater than 1.00 indicating inferiority. Thus, the Comparable Land Sales are ad- justed to the subject. The adjustments considered were location, time, size, topography, corner and traffic. The adjustments considered are defined as follows: Location takes into account the desirability of the overall neighborhood, compatibility of surround- ing improvements, proximity to traffic generating activity, as well as potential value enhancement. z Time allows a 5% increment in value for each year of sale age to reflect value trends in land prices in Snohomish County. _Topography acknowledges the superior topography feature of Comparable Land Sales and subject prop- rJ erty. _Size considers those sites substantially larger as being inferior, primarily from a marketability standpoint and conversely, those properties smaller as being superior. 15 r Corner recognizes the added value a corner site enjoys, due primarily to the heavier vehicular traffic and the less restrictive development re- quirements. Traffic, as a point of adjustment, attempts to consider the vehicular traffic volume passing the property. Waterfront attempts to recognize the possible added value of the waterfront feature for the subject prop- erty as compared to the Comparable Land Sales which have none. While under some circumstances, the water- front feature would be substantial as to a value increment, it is not, in the opinion of the Appraiser particularly true for the subject property since development of the site will be closely regulated and reviewed by not only the city of Edmonds, but also the state of Washington as to the Shoreline Management Act. J i" It will be noted from the Comparable Land'Sale Analysis that follows, that the adjusted prices for the nine sale transactions ranged from $11.63 to $26.65 per square foot. Comparable Land Sales L-4 and L-9 are both located either close to or in the downtown business district of Edmonds, while Comparable Land _ Sales L-2 and L-3 are more comparable from an overall size stand- point. Comparable Land Sales L-5, L-6, L-7, L-8 and L-9 are most comparable from a time standpoint, and Comparable Land Sales L-3 and L-9 are the most comparable from an overall adjustment stand- point. Relying more upon Comparable Land Sales L-4 and L-9 because of their location within the downtown area of Edmonds, and allowing iappropriate consideration to the remaining Sales, it is the Ap- praiser's opinion that the upland portion of the subject, unim- proved has a value of $21 per square foot (45,129 S.F. x $21 P.S.F.j, or $949,600, say $95� 0,000. To the above value for the upland portion of the site should be added the estimated value of the tidelands (see page Exhibit . J A-11b in the Addendum) of $5.50 per square foot (58,481 S.F. Tidelands x $5.50 P.S.F.), or $322,000, say $325,000, 16 RECAP Upland $ 950,000 Tidelands 325,000 c Total Value $1,275,000 During the inspection of the subject property, the Appraiser noted the prominent for sale and lease signs on the property on the east side of Highway 104, north of Dayton Street. Upon in- vestigation, the Appraiser learned that the 99,700 square feet (2.28 acres) of land was improved with a parking lot and a "retail corner." While the property has frontage on Sunset Av- enue, or Highway 104, because of the ferry storage lanes adjacent to Sunset Avenue, access to the site is not possible from that street. Access is therefore possible only by Second Avenue South. In interviewing the owner, Mr. Robert Henning, it was learned that the asking price for the property was $25 per square foot. There have been no purchase offers made to date, however, there have been a few inquiries as to leasing the property. The asking price of $25 per square foot is in contrast to the esti- mated value of $21 per square foot for the upland portion of the subject property. 17 COMPARABLE LAND SALE ANALYSIS C o m p a r a b l e _ L-_1 r _2 L-3 L-L: Sale Date 6-89 7-89 10-89 3-89 S.F. Size 18,620 32,966 31,147 6,990 Sale Price: (Cash Equivalency) $300,000 $240,000 $436,058 $106,000 Price P.S.F. $16.11 $7.28 $14.00 $15.16 ADJUSTMENTS: Location 1.00 1.00 1.00 1.00 Size .90 .95 .95 .85 Time 1 .10 1.10 1 .10 1 .10 Topography 1.10 1.30 1.00 1.00 Corner 1.10 1.10 1.00 1.10 Traffic .90 .90 .90 1.10 Waterfront 1.20 1.20 1.20 1.20 Combined Adjustment Adj. Price P.S.F. 1.29 1.61 1.13 1 .36 $20.78 - $11.72 $15.82 $20.61 L a n d COMPARABLE LAND SALE ANALYSIS L-7 L- S L-9 7-90 8-90 9-90 3-91 6_90 161,300 171,625 95,830 104,800 14,400 $1,196,672 $1,025,000 $1,063,532 $689,730 $400,000 $7.41 $5.97 $11.10 $6.58 $27.77 1.00 1.20 1.00 1.20 1.20 1.20 1.15 1.15 1.05 1.05 1.05 1.00 1.05 1.05 1.00 1.10 1.10 1.10 1.00 1.10 •90 1.00 1.00 1.10 1.20 1.20 1.20 1.20 1 .57 $11.63 2.10 $12.54 1.45 $16.10 2.20 $14.48 .90 .85 1.05 1 -0 0 1.00 1.00 1.20 .96 $26.65 18 The above analysis included nine sales of commercial owned land in north King County and south Snohomish County, with two of the sales located in Edmonds. None of these sales enjoyed the water- front feature of the subject, therefore, the search was extended to include recent sales of waterfront land or unimproved land in close enough proximity to waterfront so as to be affected by this feature. In that connection, the Appraiser learned of the sale of the adjoining property to the south, as well as five sales lo- cated in the Seattle area, specifically west of the Seattle Cen- ter and having frontage on Elliott Avenue West, approximately one block away from the waterfront of Elliott Bay. The properties are identified as Comparable Land Sales L-11 through L-16, and the details of these transactions are set forth in the Addendum on pages A-11 through A-16. Comparable Land Sale L-11, adjoining the subject property to the south, was a whole property sale where the buyer and seller were motivated not by interests in the land or building individually, but by the whole property. The technique used in estimating land value therefore required the Appraiser to estimate a .physical value of the building improvements, deduct appropriate deprecia- tion, with the balance left from the sale price being an equiva- lent land value. The techniques and calculations are set forth on the appropriate pages in the Addendum, pages A-11 through A-11b. It will be noted that the indicated price for land was $756,750. This was distributed between the uplands and tidelands as follows: Uplands 26,535 S.F. @ $17.00 P.S.F. $450,000 Tidelands 53,965 S.F. @ $ 5.50 P.S.F. 300,000 Total 80,500 S.F. @ $ 9.32 P.S.F. $750,000 - Comparable Land Sales L-12 through L-16, had actual square foot sale prices ranging from $22.28 to $39.91 per square foot. These five sale transactions were not waterfront property but were in close proximity thereof. In order to value the subject, certain adjustments were appropri- ate and they are defined as follows: Location takes into account the desirability of the overall neighborhood, compatibility of surround- ing improvements, proximity to traffic generating ,- activity, as well as potential value enhancement. 19 ,.Q " Time allows a 5% increment in value for each year of sale age to reflect value trends in land prices in Ding County and Snohomish County. TopograRhy acknowledges the superior topography feature of Comparable Land Sales and subject prop- erty. Size considers those sites substantially larger as being inferior, primarily from a marketability standpoint and conversely, those properties smaller as being superior. Corner recognizes the added value a corner site enjoys, due primarily to the heavier vehicular traffic and the less restrictive development re- quirements. Traffic, as a point of adjustment, attempts to consider the vehicular traffic volume passing the property. I°- Waterfront attempts to adjust for the existence or lack of waterfront for the six sales, noting that Comparable Land Sales L-12, L-13, L-14 and L-16 have the Burlington Northern right -of --way, as well as the Elliott Bay and Myrtle Edwards Park separating the _ properties from the waterfront of Elliott Bay. f The Comparable Land Sale Analysis which -follows, sets forth the pertinent details of the six sale transactions and includes ad- justments noted above. The individual adjustments were combined J and applied to the sale price per square foot, to arrive at an foot. It will be noted from the Compa- adjusted price per square rable Land Sale Analysis that the adjusted price per square foot .,. ranged from $14.86 to $28.23 per square foot. ' Comparable Land Sale L-11 adjoins the subject property to the south, and under ordinary circumstances would be considered a ' very reliable indication of value, however, as earlier mentioned with substantial building improvements lo- this property was sold cated thereon, with neither buyer nor seller motivated by sepa- rate value for land or improvements. The technique used by the value for the improvements and Appraiser of estimating physical J ' 20 including depreciation, with the remainder of the sale price pre- sumably an indication of land value, in theory is a sound and logical approach however, any miscalculation in estimating re- placement cost for the improvements would have a direct affect ,_._. upon the indicated land value. Additionally, it is noted that the value of income producing properties such as Comparable Land Sale L-11 is based upon the Income Approach and the Appraiser's technique of residual land value assumes that the Physical Value and Income Value (approach) are nearly identical. Considering the short comings of the residual technique for valu- ing land for Comparable Land Sale L-11, it is the Appraiser's opinion that the technique and calculations were basically cor- rect and therefore the results reasonably sound and probably should carry greater weight in estimating value for the subject. Consideration for Comparable Land Sales L--12 through L-16 is ap- propriate but to a lesser extent than for Comparable Land Sale L-11. Based upon these six sale transactions, relying more upon Comparable Land Sale L-11, it is the Appraiser's — opinion that the subject property, by comparison, has a value of $20 AM per square foot for the upland (45,129 S.F. @ $20 P.S.F,) or $902,580, say $900,000. To this then should be added the earlier estimated value for the tidelands, also based upon Comparable Land Sale L-11, at $5.50 per square foot (58,481 S.F. @ $5.50 P.S.F.) or $325,000. Total estimated land value for the subject property is T- therefore: 11 $1 225,000 21 T w IF N C)CY\ + + Q a T CD ^ (` p ^ Q CV C\l O {F} C\l 0\ + O T OQ C\l ^ Q O w Q 00 CV tl- O {jc} C\l ipf - O (r O T 10 \0 00 (}\ C\l a Nt ii} a. o CD T O N '69- Ld `� O � O 00 Q C\l + .o o a ON o C\l F� C\l W\ -63 O U M 00 (0 O Q O \10 • • • . Xf) 00 T T r • T �f} 00 000 O O 00 C\j 00 0 O • O • O • 4- • O r \p Cr) CY) r O O �OT O o o O 00 ^' (J: O O O C\l 00ONo oQ o o � • _ (n T r- (T r kr� nl O Lfl Q O 0' O O O Q + O O T O O � � a w C� r C\l ro a 0 O O C� Z N � N Cd (U N O� 94 CH (U Fa Co W 4, 0 H � 0, $-I Cd +� � rri , Q) a CO H 0 H � () ILI r(VI � Ua .� P-1 cd U r� C/ CO `• El •r1 O U � 22 inn CORRELATION AND CONCLUSION The Appraiser has concluded a value range for the subject prop- erty, unimproved, of from $1,225,000 to $1,275,000. The two techniques included comparing nine unimproved land sales without waterfront, having commercial zone, located in south Snohomish and north King County, two of which were located in the city of Edmonds. The valuation procedure was extended to include prop- erty in close proximity to waterfront to such an extent that this feature would influence value. The five sales included in this analysis were located in Seattle on Elliott Avenue, west of the j Seattle Center. Adjustments were considered for location, as € _.• well as traffic volume. A third technique used in estimating value for the subject in- volved the property adjoining to the south, but required the Ap- praiser to subtract from the sale price the depreciated value of the improvements, with the remainder attributable to land value. F� It was concluded that this technique was the most reliable. The fifteen sales appropriately adjusted to compare with the sub- ject property lead the Appraiser to conclude a value for the sub- ject property, of: Fcs. $1,250,000 23 APPRAISER'S CERTIFICATE I certify that to the best of my knowledge and belief, the statements of fact contained in this report are true and correct. the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal unbiased professional analyses, opin- ions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. my compensation is not contingent on an action or event re- sulting from the analyses, opinions, or conclusions in, or the use of, this report. ' my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the re- quirements of the Code of Professional Ethics and the Stan= dards of Professional Practice of the American Institute of Real Estate Appraisers. the use of this report is subject to the requirements of the American Institute of Real Estate Appraisers relating to re- view by its duly authorized representatives. I am currently certified under the continuing education pro- gram of the American Institute of Real Estate Appraisers. I have made a personal inspection of the property that is the subject of this report. no one provided significant professional assistance to the person signing this report. Respec ly su mitted, Wm. A. Smith, MAI 24 ADDENDUM COMPARABLE LAND SALE: L-1 ADDRESS: 19237 Aurora Avenue North King County, Washington LEGAL DESCRIPTION: Portion Lot 63, Richmond Highlands Addition ACCOUNT NUMBER: 728390-0573 728390-0632 LAND USE: Office building, two story frame, built 1969, 1,361 square feet, value in land ZONING: ML LAND SIZE: 150' x 1191/130' LAND AREA: 18,620 Square Feet SALE DATE: June 5, 1989 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1064252 and 890605-0244 PRICE: $300,000 CASH EQUIVALENCY: $300,000 SALE TERMS: $60,000 down, balance by seller GRANTEE: John Schneider GRANTOR: Elinor Svensen ANALYSIS: Sale price $16.11 per square foot. nnnn=TV nVT A TT Q . This property is located just south of the Snohomish -King County Line, approximately three and one half miles south and east of the subject property. The office building located on the site contributes little, if any, value to the land. Exhibit A-1 COMPARABLE LAND SALE: L-2 ADDRESS: 19500 Aurora Avenue North King County, Washington LEGAL DESCRIPTION: Lot 3, Block 1, Echo Lake Suburban Tracts ACCOUNT NUMBER: 222890-0020 LAND USE: Unimproved ZONING: CGP LAND SIZE: 121' x irregular LAND AREA: 32,966 Square Feet SALE DATE: July 28, 1989 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1075172 and 890728-1324 PRICE: $240,000 CASH EQUIVALENCY: $240,000 GRANTEE: National Investment Corporation GRANTOR: Lieurance, Pierre, et ux ANALYSIS: Sale price $7.28 per square foot. URnDVVMV nVMnTTc. This property is located approximately two blocks north of Compa- rable Land Sale L-1, and approximately three and one half miles south and east of the subject property. The site was unimproved at the time of sale and rises about ten feet from east to west. Exhibit A-2 COMPARABLE LAND SALE: L-3 ADDRESS: 23805 Pacific Highway Edmonds, Washington LEGAL BESCRIPTIO11r: Lots 5 through 7; Block 2, Fruitland Acres to Lake Ballinger, aka Lot 1, SP S-15-86 ACCOUNT NUMBER: 4519-002-005-00 LAND USE: Unimproved ZONING: CG LAND SIZE: 340' x 150' LAND AREA: 31,147 Square Feet SALE DATE: October 2, 1989 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 89-10/8718 and 891002-0401 PRICE: $436,058 CASH EQUIVALENCY: $436,058 GRANTEE: Schroeder - Washington Development Assoc. GRANTOR: Pong, Chi-Tsung, et ux ANALYSIS: Sale price $14.00 per square foot. PROPERTY DETAILS: This property is located approximately two and one half miles south and east of the subject property. This site has been im- proved with a new Video Blockbuster store'and.a three suite re- tail building housing a Subway Sandwich, restaurant and one va- cant space. The site immediately to the east has been improved with a large garden court apartment. Exhibit A-3 COMPARABLE LAND SALE: L-4 ADDRESS: 127 Fourth Avenue North Edmonds, Washington LEGAL DESCRIPTION: Lot 4, Block 6, Plat of Edmonds ACCOUNT NUMBER: 4344-006-004-00 LAND USE: Single family dwelling, one story frame, built 1915, 1,220 square.feet, value in land. ZONING: BC LAND SIZE: 60, x irregular LAND AREA: 6,990 Square feet SALE DATE: March 20, 1989 E TAX NUMBER AND AIF NUMBER: 98-004158 and 890320-0361 PRICE: $106,000 CASH EQUIVALENCY: .$106,000 GRANTEE: Th.e Well Partnership GRANTOR: Jack Wiggens, et ux ANALYSIS: Sale price $15.16 per square foot. PRnpFRTv nWTATTQ. This property is located one half block north of Main Street and adjoins a new multi -story office building and is across the street from secondary retail. Exhibit A-4 COMPARABLE LAND SALE: L-5 ADDRESS: 20900 block of 44th Avenue West Lynnwood, Washington LEGAL DESCRIPTION: Portion of the S.E. Quarter, of the S.E. Quarter, Section 21, Township 27, Range 04 (Tax Lots 51 and 74) aka Lots 2 and 3, SP # 128 (6-74) ACCOUNT NUMBER: 212704-4-051 212704-4-074 LAND USE: Unimproved ZONING: BC LAND AREA: 30703 Acres (161,300 S.F.) SALE DATE: July 27, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1015511 and 900727-0567 PRICE: $1,196,672 CASH EQUIVALENCY: $1,1961672 GRANTEE: Quadrant Taiyo Assoc. GRANTOR: Trade Center Assoc. ANALYSIS: Sale Price $7.41 per square foot. ran^r nn m[T nUM A TT C . This property is located in the southerly.portion of Lynnwood, just south and east of Interstate 5, in an area that is dominated by two new high-rise office buildings. This property has since been partially developed with a parking garage serving the two office structures. The site has good visual exposure from both Interstate 5 and 44th Avenue West. Exhibit A-5 COMPARABLE LAND SALE: L-6 ADDRESS: 2400 block of 196th Street S.W. Lynnwood, Washington LEGAL DESCRIPTION: Portion of the N.E. Quarter, of the N.W. Quarter, Section 23, Township 27, Range 04 ACCOUNT NUMBER: 232704-2-021 1 LAND USE: Unimproved ZONING: BC LAND SIZE: 500' x 200' LAND AREA: 3.94 Acres (171,625 S.F.) SALE DATE: August 17, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1016832 and 900817-0105 PRICE: $1,025,000 CASH EQUIVALENCY: $1,025,000 GRANTEE: K.C. Martin Automotive Service Co., Inc. GRANTOR: Executive Funding Corp. ANALYSIS: Sale price $5.97 per square foot. PROPERTY DETAILS: This property is located on the south side of 196th Street S.W., between 24th and 28th Avenue West. The site is somewhat rectan- gular in shape except for the corner portion which was improved with a service station and is now closed. This site is unim- proved and the southerly property line represents the southerly Lynnwood City Limits. Exhibit A-6 1� I .i COMPARABLE LAND SALE: L-7 ADDRESS: 2600 block of 182nd Street S.W. Lynnwood, Washington LEGAL DESCRIPTION: Portion Lot 1, Block 3, Alderwood Manor # 3 ACCOUNT NUMBER: 3728-003-001 LAND USE: Unimproved ZONING: C-2 LAND SIZE: 280' x 780' LAND AREA: 2.20 Acres (95,830 S.F.) SALE DATE: September 7, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND AIF NUMBER: 1018222 and 900907-0430 PRICE: $1,063,532 CASH EQUIVALENCY: $1,063,532 GRANTEE: Keg Restaurants U.S., Inc. GRANTOR: Tony Benvenuti, et al ANALYSIS: Sale price $11.10 per square foot. PROPERTY DETAILS: This property is located in the northeasterly portion of Lynnwood, approximately two blocks north,of the Alderwood Mall property. The site is unimproved and is just north of a new motel known as The Residence Inn. The site has frontage on Alderwood Mall Boulevard. Exhibit A- COMPARABLE LAND SALE: L-8 ADDRESS: 1120 164th Street S.W. Mill Creek, Washington LEGAL DESCRIPTION: Lot 3, Block 6, Alderwood Manor # 10 ACCOUNT NUMBER: 3737-006-003 LAND USE: Office building built 1925, value in land. ZONING: CB LAND SIZE: 150.151 x 5501 LAND AREA: 2.41 Acres (104,800 S.F.) SALE DATE: March 15, 1991 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1003253 and 910315-0131 PRICE: $689,730 CASH EQUIVALENCY: $689,730 GRANTEE: Hilltop Properties GRANTOR: Laurence S. Wilmot ANALYSIS: Sale price $6.58 per square foot. PROPERTY DETAILS: This property is located in Snohomish County, just east of Inter- state 5 in the Martha Lake area. Improvements along 16,.th Street S.W. vary from personal service office buildings to service sta- tions. This site is presently improved with a retail center ap- proximately 60% complete. Exhibit A-8 COMPARABLE LAND SALE: L-9 ADDRESS: Northeast corner 2nd and Main Street Edmonds, Washington LEGAL DESCRIPTION: Lots 1 and 2, Block 12, Plat of Edmonds ACCOUNT NUMBER: 4344-012-001 LAND USE: Unimproved ZONING: BC - LAND SIZE: 120 x 120' LAND AREA: 14,400 Square Feet SALE DATE: June 6, 1990 E TAX NUMBER: 11801 F PRICE: $400,000 CASH EQUIVALENCY: $400 000 ii GRANTEE: P & L Enterprise - GRANTOR: First Western Development ANALYSIS: Sale price $27.77 per square foot. PROPERTY DETTAILS: This property is located directly across the street west of the post office in the downtown business district of Edmonds. The site is currently being used as parking for post office employees. Exhibit A- COMPARABLE LAND SALE: L-11 ADDRESS: 144 Railroad Avenue Edmonds, Washington LEGAL DESCRIPTION: Portion Government Lot 2, Section 23, Township 27, Range 3 ACCOUNT NUMBER: 232703-1-041-0008 232703-1-055-0001 LAND USE: Three story frame building occupied as retail, office and restaurant, 28,596 square feet, plus 13,522 square feet covered parking, built 1982. ZONING: CW (Waterfront Commercial) LAND SIZE: 200' x 400'/405' LAND AREA: 80,500 S.F., including 26,535 S.F. of uplands SALE DATE: February 1, 1991 Exhibit A-11 INSTRUMENT: Warranty Deed E TAX NUMBER : 91-01349 PRICE: $2,150,000 CASH EQUIVALENCY: $2,140,000 GRANTEE: Waterfront Park Assoc.', Inc. GRANTOR: P & M Associates ANALYSIS: Indicated square foot land value $28.52. nn r) nM nmV nTP, MA TT o_ This building adjoins the subject property to the south and is improved with a two story frame building having 4,900 square feet of retail space and 13,522 square feet of covered parking on the main level, 12,580 square feet office space on the second level, and 11,116 on the third level. Following will be found the cal- culations used in estimating a depreciated value of the improve- ments based upon building use. The building costs were developed from the Marshall and Swift Valuation Service and included eleva- tor and sprinkler system. The depreciated improvement value of $1,393,250, indicates a land value of $756,750, based upon a sale price of $2,150,000. The indicated land value is equivalent to $28.52 per square foot of upland area and $9.40 per square foot overall area, including the tidelands. Details of the calculations are located in the Appraiser's files. ASSESSED VALUE: Year 1991 Land $ 796,0oo Improvements 1,904',100 Total $2,700,100 Use S.F. Adjusted Cost Type Area S.F. Cost New Retail 4,900 $47.59 $ 233,200 Covered Parking 13,522 23.91 323,300 Office 19,580 51.02 641,800 Restaurant 11,116 56.83 631,750 Exhibit A-11a Less Depreciation: 9 Year Age 40 Year Life ($ 411,750) Deferred Maintenance ( 100,000) f Depreciated Value $1,318,250 ! Add Paving & Landscaping $ 75,000 f Depreciated Improvement Value $1,393,250 Sale Price $22150,000 Indicated Land Value $ 756,750 Irdicated S.F. Land Valuo: Uplands $28.52 Overall, including tidelands $9.40 Appraiser's Distribution of Value: 26,535 S.F. Uplands @ $17.00 P.S.F. $ 455,000 53,965 S.F. Tidelands @ $5.50 300,000 80,500 S.F. Total $ 755,000 The value for the Uplands was based upon the value conclusions for the subject property to the north which ranged from $20.00 to $21.00 Per Square Foot as set forth on pages 16 and 21 of this report. Due to the substantially superior visual exposure of the subject site, the appraiser concluded a value of $17.00 Per Square Foot for the Upland portion of this site with the remainder attributable to the Tidelands. Exhibit A-11b COMPARABLE LAND SALE: L-12 ADDRESS: Northwest corner West Elliott Avenue, west of Prospect Street Seattle, Washington LEGAL DESCRIPTION: Portion Lots 16 through 19, Block 29, TOGETHERWITH Lots 20 through 23, Block 29, Northern Addition ACCOUNT NUMBER: 616990-1775 LAND USE: Two warehouse buildings, value in land. ZONING: I-G LAND SIZE 1601 x irregular LAND AREA: 29,176 Square Feet SALE DATE: June 5, 1990 INSTRUMENT: Contract E TAX NUMBER AND A/F NUMBER: 1138982 and 900605-0981 PRICE: $650,000 CASH EQUIVALENCY: $650,000 SALE TERMS• $200,000 down GRANTEE: Chuan TA Investment GRANTOR: The Home Oil Company ANALYSIS: Sale price $22.28 per square foot. PRnPPRTV nVMATTO- This property is located west of the Seattle Center on the west- erly side of Queen Anne Hill. The building improvements located on the site are functional, however, they contribute little, if any, to overall value. The Burlington Northern Railroad right- of-way and Elliott Bay Park separates this site from Elliott Bay. Exhibit A-12 COMPARABLE LAND SALE: L-13 ADDRESS: 600 Elliott Avenue Seattle, Washington LEGAL DESCRIPTION: Lot 12, Block 24, Supplement Plat of B. Kinnear's Addition ACCOUNT NUMBER: 387990-1705 387990-1710 38799071715 LAND USE: Two old buildings, value in land. ZONING: C 140' LAND AREA: 20,277 Square Feet SALE DATE: January 25, 1991 INSTRUMENT: Contract E TAX NUMBER AND A/F NUMBER: 1173365 and 910125-1269 PRICE: $660,000 CASH EQUIVALENCY: $660,000 SALE TERMS: $178,000 down GRANTEE: Elliott Bay Joint Venture GRANTOR: Elbert L. Butcher, et ux ANALYSIS: Sale price $32.55 per square foot. 1DRn1:)7R TV TIVT A TT Q . This property is located south of Comparable Land Sale L-12. The building improvements on the site contribute little, if any, value to the site. There is contemplated four, two story build- ings, containing a total of 12,000 square feet and forty-eight dwelling units to be erected upon the site. Exhibit A-1 COMPARABLE LAND SALE: L-14 ADDRESS: Elliott Avenue West and West Mercer Street Seattle, Washington LEGAL DESCRIPTION: Lots 1 through 7, Block 155, Seattle Tide Lands Addition to city, S.E. Quarter, Lot 9, ALL of Lots 10 through 12, Block 32, Kinnear's Addition _ACCOUNT NUMBER: 387990-2310 766620=2060 LAND USE: Vacant ZONING: IC 45 LAND SIZE: 534.59'x irregular LAND AREA: 106,659 Square Feet SALE DATE: July 18, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A/F NUMBER: 1146716 and 900718-1215 PRICE: $4,257,280 CASH EQUIVALENCY: $4,257,280 GRANTEE: Moon & Hart, A. Hawaii GRANTOR: Blackstock Properties ANALYSIS: Sale price $39.91 per square foot. PRnV7D TV T1VMATT Q. This is the Blackstock Lumber property with the improvements hav- ing been destroyed by fire approximately three years ago. The site is separated from Elliott Bay by the Burlington Northern Railroad right-of-way. r J .. Exhibit A-1 COMPARABLE LAND SALE: L-15 _ADDRESS: 2nd Avenue West, south of West Thomas Seattle, Washington LEGAL DESCRIPTION: Lot 9, Block 17, D. T. Denny's Waterfront Addition ACCOUNT NUMBER: 198920-0890 LAND USE: Unimproved ZONING: NC3-65 LAND SIZE: 60' x 120' LAND AREA: 7,200 Square Feet SALE DATE: October 22, 1990 INSTRUMENT: Warranty Deed E TAX NUMBER AND A,IF NUMBER: 1161075 and 9Q1022-0961 PRICE: $200,000 CASH_ EQUIVALENCY: $200,000 GRANTEE: First Pioneer Realty GRANTOR: Harold P. Hansen, et ux ANALYSIS: Sale price $27.78 per square foot. PPniD7PTv nPTATTQ. This property is located just off of Western Avenue, before it merges with Elliott Avenue. This site is currently being used as a parking lot. COMPARABLE LAND SALE: L-16 ADDRESS: Elliott Avenue West, southeast of West Prospect Street Seattle, Washington LEGAL DESCRIPTION: Lot 6, Seattle Tidelands and Portion of Lots 9 and 10, Block 30, Supplement Plat of G. Kinnear's Addition ACCOUNT NUMBER: 387990-2145 LAND USE: Now vacant ZONING• IC 45 LAND SIZE: 50' x 150' LAND AREA: 7,400 Square Feet SALE DATE: October 25, 1990 INSTRUMENT: Contract E TAX NUMBER AND A/F NUMBER: 1161590 and 901025-0446 PRICE: $200,001 CASH EQUIVALENCY: $200,001 GRANTEE: Blackstock Properties GRANTOR: Stanley Murray ANALYSIS: Sale price $27.02 per square foot. PROPERTY DETAILS: This property, along with adjoining property, makes up the new Blackstock Lumber Company property. The Burlington Northern Railroad right-of-way separates this property from Elliott Bay. Exhibit A-16 View of SUBJECT PROPERTY looking southwesterly from across Rail - It road Avenue and Burlington Northern Railroad right-of-way. Street scene looking southerly down Railroad Avenue, SUBJECT PRUP- ERTY on right, Burlington Northern Railroad right-of-way on left. Exhibit B ... •. _ .r'��-'t .., �.�r.�i •Ai� . wil—u -i'%?.� `••Y; !` � yam; . View of larger building improvement on SUBJECT PROPERTY, looking southeasterly from north property line. View of sales office SUBJECT PROPERTY, looking southwesterly from north property line. c7rL I{s.F:::.:.�Lai r7 Zle r! 1�,� _� _ ' .. .•r. �~C y i, � . mac'' �' r Al wl i4= •ar�i:-�L4 Ste... h{i'.':'�. '. .. �, .. - _ •r•: _•,� irk _ '6 .,v; ram,.= ,`,`%. -• '�i.;• s AERIAL PHOTOGRAPH LEGEND 1. Puget Sound 2. Washington State Ferry Terminal 3. Railroad Avenue 17. Dayton Street 29. Admiral Way 30. Harbor Square 33. Comparable Land Sale L-11 34. Highway 104 35. Comparable Land Sale L-4 36. Comparable Land Sale L-9 k. jir 1 4• � •tylLit 5•; t .m.o ji TKI is u ..� ;may, ,• = r:;r k. `'•'', r. - `� . � • r y I�:,[ `�., 's � y" ti. ' I' �_y �• _ '�. , ley L. y 4 V � -tom! r , ;�, �'.�. - � - _ _ -{ r•�~ �' ..7y .�,�J 1., •��'1 ,�� gj ggyyy•_-!�' ,. •5�� -� S ti C •, i .. ���jyjy� �}�' � 4 ''iS ������ r : � .\ �. _Y.7tT�: 1• Az -?L i.� i � JT�ii:ws�• n-r a -V • r, y� f4-.i � ` :f !r't:� � - . �. _.. wRL4�7K,• ��� �.-. �F A� . ._ / l / INK Nis", r� •:M�wZ. �y = - Rf � •. Bride - --- •'a ' 4 Paver Pa �'Fa Z Pathwa G • �`�'Y• 4 M 41 A ShrubPLvt Detail q. r r t pt 4: • t.;Y•i 'rinlsng Fountain D /. Edmonds Historic KN r Street Ughl Brackett's Land' South ] r ' Park Sign 4 (•; ':': Standard Edmonds Gamete Sidewalk PLANTING SCHEDULE GALLO WAY B A R K E R A R C H 1 T R C T U R E L A N D 5 C PS A R C H I T E C T U R 8 " NW �5i�M —61 WA SBID' 20A )9]2870 1-2-IB 1, J]t] Elevation looking North Landscape Trcantcat Concept l� �r O bA m 4-1 a" rG1 VJ V Scale: Submittal/ Planting Plan Sheet 3 ..h j t:\ b° b1�14. t ��4'. �;°-•ayes 3 �. ��.' - � !�'f 4z) •.i •. w�� Ell �m p . \ fr W EI 4e E t• r rr a+fi •w. j fr41'6,• r •�- 1 IBri a £• ' tialr Wall ti r{r ��' •-'- 4 4 / fr r' \ �• Paver Path "PaverPalhws G. r lr r r / it .................... .. .... .' �! , . A rf %� rrrr fr r r r�rrrfr�f/{. rr• r � r a Standard Xuw yr 3� ± ii Y JI Edmonds Historic 1( r F Street light 4 N ! f / ,ry Bue Shelter l f � ° Edmonds Fstoric - ` ► K Sheet Light Brackett'sLa din South l Park Sign { `� Edmonds adewalk ¢r Legend Existing Contours Proposed Contours Flowline GALLOWAY B A R�H E R A R C H I T R C T U R E L A H D S C A R C X I T E C T VPR R O V.NW3mE6tnR, S�6Y. WA 99V ]R6.)R3.R610 .6J23.3212 Scale: Submittal/ ' Qate Grading, Drainage & Layout Sheet 2 lorigation basin 3" Gxoco or Steers (or equal) mulch Remove container and bldtedly bottom of plant Native sail Cvm pact wd seder plant to avn' settling Scaxifp aide. of Planting Pit _MGwao mixed with So% Plan' pit to bets nstives9�71n pt.ntirtg pil tl y�dia of xoo,b ' A Shnlb Plano andGmttnd Cover Detail 1/ 2" Din black rubberhose. 12" hnlg gnege alv. wire turn back ends into stake 2" Diax10-0' BVC stake. place on windwwd side Plant I I/Tabnvegndr stwhich L— V ew atnursery Irrigation basin 3 Grow or Steers mulch othetr Ptalywiatrmg p rfa taarm� FeefhmLp t badciramrtopZl3ofmaebaD ,� Nativrs9it Cant pas aoil under plait to avoid.e;dina Sniffy rid" of planting pit - -" c r ' • • W% Groin mixed with S0% Phnting ppt to use 2<Ltsgex native soil m planting lit dlarl via 9f noot6.l1 Remove anyconaete if enmmrtered DEve T— PI-110 Detail tiC?: Ur BVC W8*P9ir MAW Sat Regqsasf! Z"dia doweled wr dumfered lop, 6"ar ad P-d. pressure tMAW Chain lack by lister N2 tree tie 24' dies tree wells. Mulch with 3' Grveo or Steerm (or equaD Nanwe lop I / 3 of binl.p fromtoor6afl ', I Prepened elpaoii mix ..//jlrr��SSj SOIF native wd15Ps Groin before bymmpaid before Remove anyconnele if enmlmtered. 2x motbaD uHametor C ❑ecidupne r—Plan Detail ss 0 n. 0 H o r 1/2" IPS supply tba imat�l Dtmitlgirulall:tion o�f t�h,,i,s,r,, fouatsLk IS1abe wR su"' a. iin. aml 3iae fleet valve to bubbirr don not kinkAll—. Cwtne S to fo,� aladl tx:ib (S waft +mpplyand H removes and inn ��Y dr�n valve access. toy 0 d� Per DOPAR.Wadasda n n 11/Y IPS waste 1/2'-DNCanchom 11/r O.D. �dllttkirtx FUuntein tailpiece r x (supplied) e-tr Elevation �la-Ir L 6"x 10' ACZA D.P. �� beam-galv.L2g . , �ftp �,.` A(1/2" . �`---.� diaj to al er Section . -b-!r-V Bridge section 04 4 Plan Qr $lYtiaR4 �i o I: Cnartnel ' Sx IYpt slerpen d needed; 6vel and add skrpea.a ruaw.��yy'' to LZ tagtcrews from deeicng can be hkideth�� dmm nsion for ieveiiing) a'% 1P ACZA D.P. beam Drainage Channel 3"x 8"/ 3k 10"/ Tx 12" ACZA Doug, Fir- alternate r';eudnmly. Fasten w/ 6 (ea.) spec Wood ra outdoor fasteners (6) - 6' Cfanteler roctnd river to k deptN 5m plan fercdmt nvn 21/2- orncreteund paver pathway --V sand intojoints 1' Send levelling cause 4e Depth - 5/ir ra nos ou5hw rock Bose a -pined to95% 6"W curb on both sides 4' Depot -1 1 /2' MW e d ruck sub' b— aXnpaci ed to 95% Compacted native soil to 95% Nan B+lxdmeW mAal aft 11>(� G.lvaittd deelfo ns I/Z'dea _ Polyrrbunate screen Chain place mnaeh, - C Devatiun Fi ]nte relive S n erlaq e Yea_ Jrd Edmorrk � 7ie ns.rvi.Is arylldsee a dl.,r�,twsaxeae.,d d.'uradluevd nester 6lnnrsla Parr Idulonwrion v' � &r{i[n•y Awslara Sa`.nwlu dorir le.aubl. ed>s 5drroM's w llt r0°rwla a.�4 rrin t rrslak am>af park 7yrm.a er I Srackett's Ian ' Park S, a I" r BueShelfei__. k- �r }Alta �rJiZS 1Z'Mr,) w.no+ ICTe,,y MW LA. Vld,m,~1 per wa.o+ ligM!&hrra toFFjjTr Fbdswimsdsslembegess0c onductor l9 meeto&(cort—tr resp9reibleim aU dectitca units) Cmsanrtoumda$ost 34'ouIr way n SL�L :8 •S1Tt Y R�Rep�YRS Andxx bolts IP K Edlrlonds f'1gSoric Street ht Rode N411 -_ f_ 9+rde: w.risrsd "t Rate lolydrr �' ^ 4 - Radc w al I e�veyle .ant eaudsal7 � Slates Wadi .usraasrnemC r-r Bared eramelmetal roofing Gatv.®ed stedfnme b air CleRrPayesabos a e screen b o Cast in plseeCrete Retakrorrg Was 41 Section t FGALLOWAY B A R K E R axrxlr I e T Sae A RaC N ITS. C T UtR B 3atneaa,69ae0 �� WR SW V 20—M2er0 ic206.28].] 12 Asvilla0hide, Manager City of Edmonds Parks & Recreation 700 Main Street Edmonds, WA 9W2p Scale: Submittal/ Rrviniory - Date Details Sheet 4 Prefinished Mc_., fascia, color ♦;n rr,��rl, TAICTr Tor...:....1 Set beach rock/ cobble into framework prior to/ during concrete pour. After stripping forms, finish concrete to expose rock. NOTE: Colors indicated represent the basic design intent, not necessarily the Clear polycarbonat( roofing material galvanized steel fram, gar polycarbonate scx " diameter architectu concrete columns Concrete seat wall TimberForm Profile !ction bench w/ armx #2885-8 Concrete platform �L..TION Hekinan, japan (Sister City) wave shelter and the flowing land forms of the park has inspired the design for this bus shelter ------------ — ---- — -------I I i 1 ! I I f ! 21'-0" ! — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — ---I PLAN C i O G A L L O W A Y B A R K E R A R C H I T 9 C•T U R 6 L A N D 5 C A P 9 A R C H I T B C T U R H 5H Nwa2a 3e 4S�.wA MJU 206.703.2870 6 206.M.3212 4-4 4-j W 0 ArvillaOhlde, Manager City of Ed mon ds Parks & Recreation 700 Main Street Edmonds, WA 98020 Submittal/ Revision; Date P—k. R— g 5—d 6 5W 96 Bus Shelter 2 4 8 ELEVATION CDGConnell CA ED1.-. r ; ra PI_A� NI'ti. DI IGNc�N March 7, 1997 Cit\' of Edmonds ConmrlulitV Services Dept. 250 jth Avenue North Edmonds. WA 98020 Atal: Paul Mar - Director Re: «Vaterfront Park - Conlnlon 11,a11 Reconstruction Dear Paul. MAR "7 roI RECEIVED MAR - 7 1997 COMMUNITY SERVICES DIRECTOR Regarding Response Icticr dated March ,. 1997 and direction approved for proposed o r Proposed North C'MU wall. 1 pul nlgs ul Per direction from ;uld acting as an agent for �VaturfrOnt Park Associates. Inc._ We ackl the position of the City rjf Edmonds. as atl ad1011111i r loWlcdgc CO11St1'IICt Opellmos 111 tlic Cl1�U \wall. 8 p Operty o\\'ller allo\\'lllg WPA_ INC. to In the CVellt a firture dovelopl3jelit permit is applied for by the City of Edmonds. that \\ no olyCliings in the Nor[li CM Ll \\-all. WPA. Inc. \\-ill undertake the work to cover (fill o,ildllcquire opclliri,9s to meet applicable Code Collditiolis. se If You have all\• ClUestlolls, please call Ille. Sinccrcly. S iltr-r•redw Mcl A. Maertz. A.I. A. Connell Design Group cc: Watcrfront Park Assoc' Lltcs_ Inc.- Mark McNaugllton US L AtW 0 1 W*m KLS 0 UT4 %�"'r' U (t•1ti n: �:. �uii1, ?F . t\.1r)ur1t1ak,, Terrace. WA 980.13 • (206) G70-6700. F„AX (20r� 77.1•ti219 F COFY DEU 9711AR -3 AM 11: 21 CITY CLERK CITY OF E©MONOS 505 BELL STREET EDMONDS,.1NA 98020 NOTXFTC TI N F T GR PROPERTY OWNERS: CITY OF EDMONDS LEGAL DESCRIPTION: That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M. Extended legal description included in Exhibit A attached. �q>� ;-'lX /OP�CEL — --7 63-i _ 0�a- 000 _ pZ / 0 --s' - _ 0 `j_-1-/ — eq 0 0 voi.3275PbcE1691 CITY OF EDMONDS 505 EELL STREET EDMOi',!" WA 98020 NOTIFICATION OF LOT AGGREGATION WHEREAS, the undersigned own two lots, legally described in Exhibits A and B, attached hereto and incorporated by this reference as if set forth in full; and WHEREAS, the owners of said parcels are applying for development approvals for the construction of park facilities on the lots described in Exhibits A and B; and WHEREAS, the owners desire to aggregate said parcels into one building lot in order to have their park facilities development application processed as one development; NOW, THEREFORE, the undersigned property owners, as the owners of the parcels described in Exhibits A and B, do hereby aggregate said parcels into a single building parcel. This notification is being recorded in order to confirm the aggregation so that the two parcels shall be considered as one for purposes of development review. The City will apply setbacks to the newly aggregated lot only along the perimeter of the newly aggregated lot in accordance with current ordinance. By this notification, the owners bind themselves, their successors, heirs and assigns to treat the parcels legally described in Exhibits A and B in accordance with the provisions of law and ordinance prior to any future sale of less -than the entire newly created parcel. DONE this 40 day of � �.t , 19 97 . PROP TY OWNER: STATE OF WASHINGTON ) MAYOR, CITY OF EDMONDS ss. COUNTY OF SNOHOMISH ) I certify that I know or have B►� ahA4 • F y� is the person wh person acknowledged that (he/she) 97 0 I satisfactory evidence that o appeared before me, and said signed this instrument and vu, 3 2'7 5 PAGE 16 9 2 acknowledged it to be (his/ham) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: PAO 153884.1X/F0006.150.160/B0006. o 3� e5 „r 'T ►4s6 (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: "Iw d5 tV6 MY Commission expires: r von. 3 2 7 5 PAGE 1 6 9 3 EXHIBIT A PARCEL A: Commitment No. 039389 ection * 23a Township 27 Northportion of , ent o Rangeincluding 3 East, .,described sassfollows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of .Edmonds, according, to- the plat thereof - recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of'Great Northern Railway Company; THENCE Southwesterly along Westerly margin of. said Great Northern right of way 17.86 feet to the True Point of Beginning; _ THENCE • North 66.0.081. West to a .point of intersection.. with the...' . inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a Southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B: That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 51057" East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. VOL. 3275PAFE1694 �) LEOEND \� ♦ • ::'r K T ► W17" PLASTIC UP NOW•ID91 f\ S ! I I•I ; � F '! E E C hl P A F{ }( o . FFT •I • UAL iiT i"• 3• GTAKF WIT" IACK .� � !� �• fe. �ell � 15 ` • % r �r / I ti \ BASIS OF BEARINGS 4`4`4, w i( ` , PLAN OF OF IiRIR04T ]�.�,��I r1 •� ` G cAs 4n. W _ THE TOWN Of FDNONDC 7At I, (VOLUME 7 OF PLATS, PwGF. Ife) F, 03 AA As. k Al / b In LEGAL DESCRIPTION < 9].r$4 •.A. 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"'_aY a M H.I...TInw1 � ]j ^ .7 •�. >;• ///�, � GJ ' r T�axQ1 INI ry1w�11 ,xbx�P, 1{H o�116/I o1MFIxx CIWr Y 4 � � , , '�w ��N°xry,,.•«1/..Na•1/ilNxce"AI°xIHNRNIowuax / 1 ',�/• AP Q4 U \i•p Q �� Ix , p/I M x• Mrllwl YMP, P IN OMII xP1MN• ItlllOw"1 / ✓ � O Iw.a••Ix1111xPIN.l1INCOMMVIxINPOMP.xxIl011 . ~ •l xod �o 1 IW ., P IT"<II P M Ix11 Cuu . 1•MI INHO / CD %I . 1 NOV 2912E r11W"a a1/b1xM gprra al A/O«I MIN ti.IrwllM Pl/< /J/ 'aful0•NbN t rvx" rr°,INw Wna, GP/rN,1lY llfl xa1NN/ •,r ,xxn P wry INT/ IH 101/In IM P YO 101 r. 1� n 1 niNrG MI, I +w� ualc /0 ue .arl v w. le 11nw1 \� L ~I.e wt>ti 1. /•! cw[I .aw /M wq /,awl. Y•.y N.1 ,/IN souTu LINE O. GOVfRu..14NT LOT : PLAT OF SURVEY :a . N•• q 1p.l e....w.. e-<. r ./i.Mil_..,..Irrl w..i _ FOR ANDERSON MARINE IN GOVERNMENT LOT 2, SECTION 23, T.27N., R 3E., W M CITY OF EDMONDS RECOROING CERR TIFICATE ,R~rTORf C9ArlrpcA�r SNOHOMISH COUNTY, WASHINGTON r• -�.• o-=r_�/jaLLOVFI.Oce x.rFr tnx.�.e•w„w 6 Low•ll•BRURrIRRd dr. ArtFDD1RNR, Inc. ac.«._ x . �y'r Ix•M IoxF a.flDr.t.r pD.YA�IInT {w }7 ./cc.n. w iVavE75_.�r rx�.a Ix� rx�:`��. °r uc uw�xu •.,� "��!+$_ �'L'RxIS a • �..nn "'. . vlr � Fug' A: �__co n a,b mwar x FDPwy wl ,r Date: To: From: Subject: MEMORANDUM November 14, 1996 Mayor Fahey Arvilla Ohldc U Hazardous Substances Certification Form - Edmonds Waterfront o� 19,96 Attached is the final form for you to sign for Hazardous Substances Certification for Edmonds Waterfront. The site was finalized by the Department of Ecology, and certified by FTI Environmental, All paperwork has been sent to IAC, with the exception of the attached, which I will send in after your signature. Thank you. City of Edmonds 03 Administrative Services Appendix J HAZARDOUS SUBSTANCES CERTIFICATION The CITY QF EDMONDS (project sponsor), as the reci�i nndt of funding assistance as specified in IAC project agreement # 92-241A titled waterfront does hereby give assurance that it does not know and has no reason to know that any hazardous substance, the release or threatened release of which has resulted in or contributed to the need for remedial action, was released or disposed of, in or at the property or properties that are included in the above -referenced project agreement. The project sponsor further warrants that it has obtained representations and warranties concerning the environmental condition of the property from the seller and has inspected the property to the scope and extent described in the attached Environmental Assessment Report. Project: Brackett's Landing Park South; 100 Railroad Avenue �7 Signature MAYOR, CITY OF EDMONDS Title Date Participation Manual # 3 uidelints or Land Acqu�sition Revised July 1992 Page 42 ACQUISITION FINAL REPORT (FORM IAC 203) Date Submitted: 11/12/96 Project status: The Cit of Edmonds has co leted the final certified clean site documents and the acquisition of 100 Railroad mnum is co 1 I hereby certify that this project has been completed in accordance with the Project Agreement. Further, I certify that the completed project is consistent with both the scope of the project approved (as amended) by the Interagency Committee for Outdoor Recreation (IAC) and with the project application on file with the IAC. Sponsor Signature Date Title Telephone Number Form IAC 203 (Rev 1195) PORT N 315.0 G, lt1 Q � r Q • ,n 0 o z . z 1 s)��J N�nb7 330.01' `TryC-lnora porr«,nl (; Ao► t) uoLtiQn (l9g' 4-) C19.( i k d 770 ] �) LEDEND ♦ LET IRON /IN WITH PLASTIC CAP NO'D 1"I _ S! I �'I F! B E A C H F A R K G. SET •I-%• NAIL �+ O • ♦ET f'I f' ♦TAKE WITH TACK OGFC . PGLCRWTION D14EN610W�pF ARrNa ? fy eel BASIS OF Ij BEARINGS 0~ i PLAN OR WA79RFROWI OF THE TOWN OF EDUOWOC. ( VOLUME 7 OF PLA76, PAGF. lb) 4.1 +� p c �',� ( S z sa •:a S°\■•■-L I,lTQ`r} y3� Ska np"N ' u ■ ■ ., � II Ltd ( C') A, : `• ' f•• r,;r■,41•41iR ;t, M °c• k, t7 LEGAL DESCRIPTION f rx., rDA,gx d oo fAr.�AI /DI 1 rxclurq totlA.of iLrld, 11 "Jt, QF 10,••Ix•w +• y,,•• ILve. , lu, wr. 41CARO u r0.1F1 ■eANN.q �O; tiCpf. ,r..o.,wi�exLw.�x..l�lr.l+:a,cro.ns•rw.m.lefnnTr..a., t Q�d� i` 'S�' �' ' 36 '� •�r�' ,IHII IdAYIr• 40A4 AA,ftl A,a— a INC RAI b 'IJG + 4.•eF �_. S r_`Q. , Imo: I,r!• f•�i• fdOO+ ACCdVwq 10 IK RAI RCd010 M •RW! Ion" rwy ., 0(1 ��� ��` • !"�11 •`l I • , " j, w[a4a b rw?.h• Lor1, wlyfARty, ,NIr " rlKpSnp, /y VVV ••, V CIIA'XCIS N. M1ICTMI K d AgNId N•I d ar[Al r,OAlrlM WwA, a T v ►, 1, X41/� 0CNPAII / :::WAN AGNC(IOY1 ,i Rlltlf IO TN IWA R-41t04Arq 1 NCI pCa + /! 4,+1��� 2lz� // �1 'I ';N .'— , n MI, •Tl tr Itl l •10E OI 11Y 10 A a' P rfA MIA rdl Dl•" " J SYI r•` / ro, r_1 f wIN Tr( rA.A Iwp01 lM MO RWI KAfO /dRw O' w[fl A 0111WCJ j• !'% / 1 r J `J4 � d My fffl fnQ1 TN MONw/fRR, IYIIOrt Or Il! NO,INNtIRR, ■ �,} ,7.! L e ,AOOYI,gx d 1I•II /1101 INCIA XW. ft. wfll !•11 Ilfr, INCKI �aLy •i• • 1 � f�Q' ~ ^ I IWIn M If lul ,IIIR Ilfl ub! m 111. 10 A I•ifl 01 MIARCIVw V �,A KJ'fi1+A p 4 t4 M.1 a ,N IM OOM AIM xI NffglAlrR INNCI NAIONrlNnR•pr■LId1 le . Ider d• 1,1N SNw • s•wn,m 4 r„aIMAN AAN1 wA, 1 —C. R ." Iff I Ndlll(ASIfR, 0• M IOYfN Ir[ d OOHAMRNI I01 I [ � '1 � I� N A,1A110 If rONO IN M/,frl, YM,bI d Irf 01RA1 wa1NtW Aq.H rr /,/�1 I ' Q- w•r ,.NCI rb11NtlIIK, 4bq INCINCMRARRT ,AIAMI a 14 MAT1(`LV , NC. A,CnI DI w.. TD TNf _C _' 4 wo.A.a � / .,+. .S �• C) I4 0� lL I•••I Id11Ax d 00.(AIA■NI 1011 ■CI�11. Ip.wMll ,gAlw A+rKR V � � 1•L. lul wu Ax0 b In11Arn/ V M I.ir CLA4 w fApM r.LOl tl / L NDY 29 WiI d AG�HAIf lalo•n nprlwr.D Al•rofn oN IN AR/IIR,IMd11A O � II V7 L iFi7 A9�H d w•• d Ir( dl•I NMIMAA Ww•• C61N,n IM 1/tl NOIT,.RI � 1 • ' M AKFfO +Ibq MO ArYIlO wA,l IAdf I,(IW1NdVO 10T! I I,(xU wd,I,A n,i Mdq Lb MIIIIA• IM b IN AgNtOrr+T 1as rlr, lifxCl IH}IIIN�•I MdH ANq 11 ,04q A—,IOA•- w I•[ xtlylA Iw 1„of1 /a+o r,.Np I,plfw M'!1 w[1r 111n pOUTH l IWE Of GOV[RUMFNT LOT x PLAT OF SURVEY r,rl ubq M II If I IPArI dw-p 4111 1sAaI.'Ke /WIN., —fQf. •,AtL .. FOR ..n 'M HN.0 A N•AACA IAR ,y,l RIN fyypt Ipl,N /,•/, tut / Ls w I[II .,fM p / 10 Iw NOTA IN. I,■NCI IQIIN M' 141 ID ANDERSON MARINE d+ r,mgx I•,Iti • N bl D,Ao v^, n, ,I Iwl A. lca IN GOVERNMENT LOT 2, SECTION 23, T.27N., R 3E., W M �w.�•,fl IIIfx 1•w,q 1"INND CITY OF EDMONDS RECORDING CERTIFICATE SURVEYORS CERTIFICATE SNOHOMISH COUNTY, WASHINGTON I �Arer AteerD .,_�!,L loveu N.nr . INC eA 1. Lo■a11•Seuarland AA AaaOolala A, Inc _ D / 46 Ap. AI. rwn r•r cpAAmn• Anrulwn • rvr,n + ._ "L"A_ r IN p • prptp u. YNO[A r1 pA[CTIDN ,N COxrOAN •wL1 wI1N Int 11YIA r,•I II++11 01 _. •� 7_;,YlYLYS�.y, rA11� TNf 1YAv[TRI:—.A[, AI IN, At1NtA1 Or:'!+Ql SF A `N�RIU( p RFTVFTOI+f • DCYFIORRNI CIDNIMINIS RAMHI„ Ilcnrol n,l h�liTMy��.If M�COYN•• rAIN�NOTOx 1NIA M. —, NAI near ITIII AN A If1Q1pS AA ,fgrn • m.1N . 19 MEMORANDUM Date: August 16, 1996 To: Mayor Fahey and City Council From: Paul Mar Subject: Dismissal of Waterfront Park Associates' Appeal to City's Substantial Shoreline Development Permit for Brackett's Landing South Park The City received the attached Order of Dismissal this morning, As you recall, City Council convened a hearing on February 6, 1996 for an appeal by Waterfront Park Associates on the hearing examiner's decision to approve the City's Substantial Shoreline Development Permit for Brackett's Landing South Park. City Council denied the appeal. City Council approved the findings of fact for this hearing on April 23, 1996. Waterfront Park Associates filed its appeal of the City Council decision to the State Shorelines Hearings board on May 31, 1996, three days after the expiration of the appeal period. The City filed a Motion to Dismiss on July 5th, As shown on the attached, the Administrative Appeals Judge for the Environmental Hearings Office granted an Order of Dismissal on August 15th. I want to acknowledge the efforts of Current Planning Supervisor Jeff Wilson, Planning Division Secretary Diane Cunningham, Parks and Recreation Division Manager Arvilla Ohide and City Attorney Phil Clbrechts in bringing this chapter to a pleasant closure. City of Edmonds cz2 Community Services PeAution Control Hearings Board Shorelines Hearings Board Forest Practices Appeals Board Hvdraulics Appeals Board Kevin P. Hanchett 1111 Daley Place Edmonds WA 98020 STATE OF WASHINGTON ENVIRONMENTAL HEARINGS OFFICE 4224 - 6th Avenue SE, Bldg. 2, Rowe Six P.O. Box 40903, Lacey, WA 98504-0903 August 15, 1996 Robert J. McGill Ca -den Murphy Wallace, PLLC ' 100 Westlake Center 1601 Fifth Avenue Seattle WA 98101-1686 RE: SHB NO. 96-26 WATERFRONT PARK ASSOCIATES V. CITY OF EDMONDS Dear Parties: Enclosed is an Order of Dismissal in the above matter. This is a FINAL, ORDER for purposes of appeal to Superior Court within 30 days, pursuant to RCW 34.05.542(2) and (4). (360) 459-6327 (FAX) (360) 438-7699 The following notice is given per RCW 34.05,461 3 : An reconsideration within 10 days and serve it on the other part Any The term "file"1 meansltion r ceif tr P Sincerely, uzanne Sklrfier SS/edmond3 Istrative Appeals Judge Enc. cc: Don Bales - Shorelands City of Edmonds Community Service Department CERTIFICATION On this day. I forwarded a true and accurate copy of the documents to which dtis certificate is aF%xed via Unued States Postal Service postage prepaid to the attornays Of record herein. 1 cer0f under penalty ofperjury under the laws of the State of Washington that the forgoing is true and correct DATED �� $' G at Lacey, WA. MIY i i i I i 1 BEFORE THE SHORELINES HEARINGS BOARD ' STATE OF WASHINGTON WATERFRONT PARK ASSOCIATES., ) Appellant, ) SHB No. 96-26 V. ) ORDER OF DISMISSAL CITY OF EDMONDS, ) 6 ) 7 Respondent. ) ) 8 INTRODUCTION. 9,. This appeal arises out of a challenge to a substantial development permit for a public 10 park, to be called Brackett's Landing South, issued by the City of Edmonds (Edmonds) to the I Edmonds Parks and Recreation Division. The appeal alleges, among other things, that Edmonds has not planned for sufficient parking spaces for the park and that the impacts on 12 adjacent landowners have not been fully considered. Kevin Hanchett filed the appeal on behalf 113 of Waterfront Park Associates (Waterfront), an adjacent landowner to the proposed park. 14 Hanchett is also a shareholder in Waterfront. This order addresses two motions pending before 15 the Shorelines Hearings Board (Board). 16 First, Hanchett, in whose name the appeal was filed, has moved the Board to substitute Waterfront as the appellant. Appellanfs motion is unopposed and is hereby granted as 17 Waterfront appears to be the real party -in -interest. Civil Rule 17. Second, Edmonds has also 18 moved for dismissal of the appeal as untimely for,being fled after the expiration of the twenty- 19 one day appeal period in RCW 90.5 8.18 0(l). 20 In determining Edmonds' motion. the Board considered the following documents: 1. Edmonds' Motion to Dismiss; 2. The Declaration of Robert J. McGill in Support of Edmonds' Motion: ORDER OF DISMISSAL 1 SHB No. 96-26 6 8 9 10 1 11 1? 13 14 15 16 t 17 ` 18 � 19 '10 r 3 . Waterfront's Response to the Motion to Dismiss, with attachments in support; 4. Edmond's Reply; and 5. The Declaration of Diane Cunningham in support of Edmonds' Motion. Based upon review of the foregoing pleadings and documents, the Board enters the following: DISCUSSION On October 11, 1993, the Edmonds Parks and Recreation Division applied for a substantial development permit_ no. SM-93-196, for the development of a public park at Brackett's Landing South. Edmonds issued a mitigated determination of non-significance(MDNS) o-significance (MDNS) on December 7, 1993. Waterfront's appeal of the MDNS was heard by Hearing Examiner Jim Driscoll. The Edmonds City Council, following a public hearing, upheld the appeal and directed that an environmental impact statement (EIS) be prepared specific to the issues of limited parking and traffic congestion raised by Waterfront. Once the final EIS issued, the Edmonds Planning Division relied on it to review the substantial development permit for the proposed park and ultimately recommended approval of the permit. A hearing examiner then approved the permit and Waterfront appealed the hearing examiner's decision to the City Council. The City Council heard Waterfront's appeal on February 6, 1996, and, on May 1, 1996, the City Council issued the permit. Also on May 1, 1996, Edmonds sent the Attorney General and the Department of Ecology (the department) notice that the City Council had approved substantial development permit no SM-93-196. By virtue of RCW 90.58.180(1), the trigger date for the appeal period for this action was the date that the department actually received notice of Edmond's approval Appellant requested oral argument on Edmonds' motion. That request is hereby denied, € pursuant to WAC 461-08-475(3), as the Board's consideration of the issues presented will not i be enhanced by oral argument. ORDER OF DISNUSSAL 2 SHE No. 96-26 of the permit. RCW 90.58.180(1) clearly states that "[a]ny person aggrieved by the granting, - denying, or rescinding of a permit on the shorelines of the states pursuant to RCW 90.58.140 may seek review from the Shorelines Hearings Board by filing a petition for review within twe tv-ane da f t e date o in a de e W 5 .14 6. "(emphasis added). RCW 90.58.140(6) defines "date of filing" as the date of actual receipt by the department [of 6 Ecology]." Edmonds contends, and Waterfront acknowledges, that the department received 7 notice of the permit on May 6, 1996. Declaration of Robert J. McGill at 4; Waterfront's 8 Response to Motion to Dismiss (Response) at 1, and Exhibit B. i 9 RCW 90.58.180(1) accordingly gave Waterfront twenty-one days from May 6, 1996, to 10 file its- appeal with the Board. Counting twenty-one days from May 6, 1996, and adding an # additional day for Memorial Day, the twenty-first day of the appeal period, Waterfront had until 11 May 28, 1996, within which to file its appeal with this Board. Be v. Po ud 1x� 12 H- Ea01,"IBoard. 81 Wn. App. 330, 340-41, _P.2d (1996). Critical to this motion, however, 13 Waterfront did not file its appeal with the Board until May 31, 1996--three days after the close 14 of the statutory appeal period. f Waterfront's attorney, Hanchett, received the City Council's decision by May 2, 1996, IS if not earlier. Response at 3. Waterfront does not dispute that it was informed it of the City 16 I Council's decision. Instead, Waterfront claims that it was misled to as initall , the Y proper 17 forum for its appeal2, and second, as to the length of the appeal period based upon a notice in 18 ! Edmonds' permit prohibiting construction during the thirty day period for appeal. 19 Z Waterfront's contention is meritless. While it appears that Diane Cunningham, an 20 administrative secretary in the Edmonds Planning Division, told Hanchett on May 2, 1996, that Waterfront's appeal should be filed in superior court, upon consulting with another Edmonds employee, she learned that the Board Was the appropriate forum and so informed Hanchett on May 3, 1996. This series of events, rather than excusing Hanchett's' failure to timely file Waterfront's appeal, should have put Hanchett, who is an attorney, on notice that he should not rely on Edmonds employees, who are not lawyers, to give him legal advice. ORDER OF DISNHSSAL 3 SHB No. 96-26. The permit Edmonds issued for this project contains the following notice: CONSTRUCTION PURSUANCE (sic) TO THIS PERMIT WILL NOT BEGIN OR IS NOT AUTHORIZED UNTIL THIRTY (30) DAYS FROM THE DATE OF FILING AS DEFINED IN RCW 90.58.140(6) AND WAC 173-14-090, OR UNTIL ALL REVIEW PROCEEDINGS INITIATED WITHIN THIRTY DAYS FROM THE DATE OF SUCH FILING HAVE TERMINATED; EXCEPT AS PROVIDED IN RCW 6 90.58.140(5)(a)(b)(c). Edmonds argues that the Board should disregard the notice because it only obliquely 8 references the thirty -day appeal period, however, the notice is unquestionably misleading. , 9 While the notice directly concerns construction injunctions, the time period referenced is obviously based upon the prior version of RCW 90.58.180(1) which allowed filing of an appeal 10 thirty days from issuance of a substantial development permit. During the 1995 session, the 11 Legislature amended RCW 90.58.180(1) to reduce the appeal period in cases contesting the issuance of a substantial development permit to twenty-one days. Edmonds should update its 13i notice to reflect the reduced appeal period and this Board will order that be done. However, the 14 mere fact that Waterfront mistakenly surmised that the appeal period was thirty days based 15 I upon Edmond's notice does not excuse appellant's failure to file timely with this Board. 16 I Confusion about appeal rights will not excuse failure to timely'fle. c d W e CDU� d o L—ALL== 69 Wn. App. 209, 216-17, 847 P.2d 963 (1993). In a r 17 , a local government mailed a notice to in of a citizen group that stated the time for filing an 18 ! appeal but was vague as to what was the trigger date for calculating the appeal period. The i 19 court rejected the citizens' group belatedly filed appeal, in spite of the vagueness of the notice, I . 20 out of concern for meeting twin policy goals in land -related cases: providing parties reasonable time for appealing but giving finality and certainty to developers. ORDER OF DISMISSAL, 4 SHE No. 96-26 Whatever confusion the Edmonds' notice generated is nominal. The Edmond's notice did not directly address the appeal period --upon inquiry to the city or review of the SMA, which the notice did reference. Waterfront. could have discovered the appropriate appeal period. Nor. is Waterfront's failure to file timely cured by the inconsistency between RCW .90.58.180(1) and WAC 173-14-174. First, WAC 173-14-174 concerns certification of requests 6 for review, and its relevance to this case is nebulous at best. Second, WAC 173-14- 174 is no longer good Iaw. The Legislature threw out the certification requirement in the 1995 8 amendments to the SMA. While WAC 173-14-174 remains in the administrative code, it conflicts with RCW 90.58.180(1) both as to the former cert 9 ification requirement and the former thirty -day appeal period. Where regulation is at odds with a statute, it is black letter law that 10 j I the statute controls, a v 87 Wn.2d 626, 631, 555 P.2d 1368 (1976), and it is Waterfront's responsibility to apprise itself of the. SMA's mandates.3 12 Finally, and most importantly, this Board, as an administrative agency, derives its I jurisdiction solely from the Legislature through the SMA. The Board may therefore exercise 14 only those powers expressly granted or necessarily implied by legislative enactment. Hu M v e ev 97 Wn.2d 118, 641 P.2d 163 (1982). IS - ! . 16 3 To the extent that Waterfront suggests that Edmonds is estopped from seeking dismissal of 17 this action due to the misleading language of the notice, the Board finds no merit in that suggestion. First, equitable estoppel is inapplicable against a government entity where the 18 action , if taken, would directly violate existing statutes. 443 P.2d 833 (1968). Allowing Waterfront's untimely appeal would directly onAict with61, 19 RCW 90.58.180(1). Second, while the Board is hard-pressed to find that the notice constituted i a direct misrepresentation as to the length of the appeal period, assuming for the sake of 20 argument that it did, Waterfront. and its attorney Hanchett, did not reasonably rely upon it. Reasonable reliance, a. key element of estoppel, is a subjective determination that requires consideration of any special skill or knowiedge of the party asserting estoppel. EiVggmLd v. N-ev-= 15 Wn. App. 421, 428, 550 P.2d. 52 (1976). Hanchett, as an attorney, did not reasonably rely on an oblique reference to an appeal period se j may or may not have been drafted by an attorney. t forth in the City's notice --which ORDER OF DZSMIiSSA.L 5 + SHE No. 96-26 Consistent with these inherent limitations, this Board has consistently maintained that it is without jurisdiction to consider appeal that are filed beyond the statutory period designated by the Legislature in RCW 90.58.180(1). w v. tt e SHB No. 96-8 (1996), a e 1 Pen Jiag king County Superior Court No. 96-2178-9; Broo v. I� u saw, SHB No. 89-1 (1989); v rr d SHB No. 78=30 (1979). Moreover, since the legislature has 6 explicitly and unequivocally limited the appeal period for Board cases, Waterfront's belated 7 filing cannot be stretched into substantial compliance with RCW 90.58.180(1). Where the 8 Legislature has clearly directed the manner for perfecting jurisdiction in a statute, the doctrine 9 of substantial compliance, which excuses procedurally faulty compliance with a statute. is inapplicable. a 0411tion v, 10 e , 127 Wn.2d 614, _P.2d_(1995). I 1 Based upon the foregoing analysis, the Board issues the following: g 12 13 14 15 16 j 17 18 ' 19 20 ORDER OF DISMISSAL SHB No. 96-26 6 - ORDER Edmonds' Motion to Dismiss is GRANTED. Waterfront's appeal is DISMISSED WITH PREJUDICE. Edmonds is directed to modify its notice regarding substantial development permits to reflect that the time for appealing permiting decisions to the Board is 6 twenty-one days. i DONE this Zt�day of August, 1996. S. SHOT 9LINES HEARINGS BOARD 9, � f 10 C C. KEL EY, Ch 11 r 12 RO V. S ember 13 '� S A. "PER, JR., Member 14 1 i 15 BO BS-McMULLEN, Member 16 U ANLLAMS ON, Member 1? 1 18 ROBERT HINTON, Member 19 ' s96-26d 20 ORDER OF DISMISSAL SHB No. 96-26 "' •� DUDDl R.1'CCDJ-I'll:l• IULLCI`f " 1U r r• - 1JbVJ4Ji:] fb77 r', aryl ORDER Edmonds' Motion to Dismiss is GRANTED. Waterfront's appeal is DISMISSED WITH PREJUDICE. Edmonds is -directed to modify its notice regarding substantial C development permits to reflect that the time for appealin_ permiting decisions to the Board is 6 twenty-one days. DONE. this 6;t day of August, 1996_ 1� 14 1 IS 1 16 i 1- i 1S 19 s96-?6d 1 ?0 ORDER OF DISN1zssAL SHS No. 96-26 i SHORELINES HEARINGS BOARD RICHARD C. KELLEY, Chair ROBERT V. JENSEN, Member O'DEANLLIAMSON. Member ROBERT HINTON, Member 7 --- •.JtFF CO COMMISSIONER -063839382 P . 0 1 li 1 2� 3 4 5 3 61 7 8 9 10 11 12 13 PRESENTED By; 141 OGDEN MURPHY WALLACE, P.L.L.C. 15 DONE this day of 1996. SHORELINE HEARINGS BOARD JAMES A. TUPPER, aR:, Presiding RICHARD C. KELLY, Chairman RO$ERT V. JENSENI Member 16 By: - _ 17 hill A. Olbrechts, ,SBA #19156_�~ 19 By:✓� Bober cGill, . WSBA #�25703 20 Attor ys for Respondent City of Edmonds 21 22 23 24 ' 25 ORDER GRANTrNG DEFENDANT CITY OF 2 b JUM1I3aM.J 1poail015Q6vnNi OM.O DISMISS - 1 Law Ofrees of OCDEN MURPHY WALLACE 2100 Weadaks Cenwr 4 1601 FiAh Avenue Seattle, wwansca 98101-1686 (206) 447-70r}OIFAX, (-4O6)447-02 1S Rrr_-;.CEI MEMORANDUM � �.. ' NDS CITY CLERK Date: August 2, 1995 V OA 1919S y�dk r°9 To: Arvilla Ohlde, Parks & Recreation Manager EILD From: Jeffrey S. Wils n, Current Planning Supervisor Subject: TENTATIVE SCHEDULE FOR HEARING ON APPEAL OF SDP FOR BRACKETT'S LANDING SOUTH PARK; FILE NOS. SM-93-196 & AP-95-109 I have reviewed your memorandum (see attached) requesting a delay in the scheduling of the appeal hearing on the Hearing Examiner's decision regarding your application for a Shoreline Substantial Development for the proposed Brackett's Landing South Park, and determined that it is warranted jn order to allow you as the applicantlappellee to have sufficient time to prepare for the appeal ✓hearing. Therefore, a tentative hearing date of November 21, 1995 has been established for the appeal filed by Waterfront Park Associates under File No. AP-95-109. If you have any questions regarding this matter, or should you wish to amend the scheduled hearing date, please do not hesitate to contact me at 771-0223. pc_ Mayor Hall Paul Mar Rob Chave Kevin Hanchett; Lasher Holzapfel Sperry & Ebberson; 2600 Two Union Square; 601 Union Street; Seattle, WA 98101-4000 Attachment City of Edmonds cza Planning Division 95-109SC.DOC 09/02/95 RE iVED FOSTER PEPPER & SHEFELMAN A LAW PARTNERSHIP INCLUDING PROFESSIONAL SERVICE CORPORATIONS BELLEVUE. WASHINGTON OFFICE (206) 451-0500 TELECOPIER: (206) 455-5487 Ms. Rhonda J. March Edmonds City Clerk 250 - 5th Avenue N. Edmonds, Washington 98020 1111 THIRD AVENUE SUITE 3400 SEATTLE. WASHINGTON 98101 (206) 447-4400 TELECOPIER: (206) 447-9700 .(206) 447-9283 July 8, 1993 0 9 1999 EDMONDS CITY CLERK Re: City of Edmonds, Washington, Real Estate Purchase Contract Dear Ms. March: PORTLAND. OREGON OFFICE (503) 221-0607 TELECOPIER: (5031 221-1510 After closing the file for the above -referenced transaction, I took the liberty of preparing a transcript of proceedings for our records, as well as the City's. I have enclosed the transcript and it should now be made a part of the your permanent records. Please feel free to call me if you have any questions or comments. Sincerely yours, FOSTER PEPPER & SEEFELMAN PJ Jo n son Secretary to Lee Voorhees Enclosure 0091289.WP L A S H E R HOLZAPFEL SPERRY & EBBERSON ATTORNEYS AT LAW 2600TW0 UNION SQUARE 601 UNION STREET SEATTLE, WA 96101-4000 (206) 624-1230 FAX (206) 340-2563 March 8, 1995 RECEIVED NEAR 0 9 1995 EDtA0t-jn,S DpY OLE-p.y RONALD E. BRALEY WILLIAM T. CORNELL City Clerk LINDA KELLEY EBBERSON ANTHONY J.W. GEWALD City of Edmonds RICHARD R. HACK, JR. ✓ J t • viauv it 25[0-5th Avenue North KEVIN P. HANCHETT DELNEY N. HILEN Edmonds, WA 98020 GEORGE S. HOLZAPFEL MARGO T. KELLER LISA ANN KOKENGE Re: Environmental Determination for Soil Removal at the EARL P. LASHER III, P.S. JOE MENTOR, JR. Proposed Brackett's Landing South Park DEAN A. MESSMER DANIAL D. PHARRIS Dear Clerk: ROBIN WILLIAMS PHILLIPS SHANNON SPERRY DAVID J. SPRINKLE PAUL A. TONELLA Enclosed please find copies of my letter to Jeffrey S. Wilson regarding the above -referenced matter. Please distribute to the City Council Members. Thank OF COUNSEL you for your help and cooperation. MICHAEL K. MURRAY, P.S. Sincerely, LASHER HOLZAPFEL SPERRY & EBBERSON Kevin P. Hanchett KPH/ge Enclosures L A S HE R HOLZAPFEL. !SPERRY &' EBBERSON March 8, 1995 RE- C. E I V MAR 0 9 1995 EDMONDS CITY CLEfIX ATTORNEYS AT LAW 2600 TWO UNION SOUARE Jeffrey S. Wilson 601 UNION STREET S Community Services Dept./ EATTLE, WA 98101-4000 (206) 624-1230 Planning Division FAX (206) 340-2563 City of Edmonds 250-5th Avenue North RONALD E. BRALEY Edmonds, WA 98020 WILLIAM T. CORNELL LINDA KELLEY EBBERSON ANTHONY RD R. HACK, JR. J. W. GEWALD RIC RICHARD Re: Environmental Determination for Soil Removal at the KEVIN P. HANCHETT Proposed Bracken's Landing South Park DELNEY N. HILEN GEORGE S. HOLZAPFEL MARGO T. KELLER Dear Jeff: LISA ANN KOKENGE EARL P. LASHER III, P.S. JOE MENTOR, JR. DEAN A. MESSMER I am In receipt of your letter of February 27, 1995, regarding the DANIAL D. PHARRIS withdrawal of the environmental determination for your proposal to remove and ROBIN WILLIAMS PHILLIPS SHAN NONSPERRY replace soil at the proposed Brackett's Landing South Park site. Although I DAVID J. SPRINKLE appreciate that the environmental determnation has been withdrawn, the questions PAUL A. TONELLA set forth in my earlier letter still exist. Accordingly, I would appreciate a response as to certain of the items contained therein. OF COUNSEL MICHAEL K. MURRAY, P.S. In the initial environmental checklist, the responsible parties stated that the between 500-1000 cubic yards of soils were on site. The checklist that was submitted in regards to the most recent request for a DNS stated that 100 cubic yards of soil had to be removed from the site. I would appreciate it if you would provide the basis for the calculations that now reduce that amount to 50 cubic yards of soil. I would also appreciate it if you would provide me with the testing results and the references to the exemptions under the State Environmental Policy Act and the local ordinances. Thank you for your cooperation in this matter. Sincerely, LASHER HOLZAPFEL SPERRY & EBB 741SON Kevin P. Hanchett KPHIge cc: Waterfront Park Associates c/o Mark McNaughton Bob Barkshire Richard Cash Mayor Hall City Council Members CITY OF EDMONDS LAURA M. HALL 250 - 5TH AVE. N. • EDMONDS, WA 98020 • (206) 771-0220 • FAX (206) 771-0221 MAYOR COMMUNITY SERVICES DEPARTMENT �l O Public Works . Planning . Parks and Recreation . Engineering 8g0 19C� 6cq ' VIA FAX (206) 340-2563 FEB r��5 AND U.S. MAIL OFFJCE OF Tf�F MAY Fe bruary 27, 1995 Kevin P. Hanchett Lasher, Holzapfel, Sperry & Ebberson 2600 Two Union Square 601 Union Street Seattle, WA 98101-4000 Subject: ENVIRONMENTAL DETERMINATION FOR SOIL REMOVAL AT THE PROPOSED BRACKETT'S LANDING SOUTH PARK Dear Mr. Hanchett: I am in receipt of your fax dated February 27, 1995, regarding an appeal of the environmental determination issued for removal/replacement of approximately 50 cubic yards of soil from the proposed Brackett's Landing South Park site. Unfortunately, I am unable to accept your appeal. As SEPA Responsible Official, I withdrew my environmental determination for the proposal on February 24, 1994 (see enclosed). Therefore, the administrative appeal process outlined in the City SEPA ordinance is not available. The proposed soil removal is within the exemption amount provided for in the State Environmental Policy Act and by local ordinance. Prior to my decision to withdraw the environmental determination, I conferred with representatives from the Department of Ecology to confirm my conclusion that the determination was issued in error, due to the project being within the exempt amount. I am sorry for any inconvenience that this may have caused you. If you should have any questions regarding this matter, please do not hesitate to contact me at 771-0223. HANCH_LDoc 0 Incorporated August 11, 1890 • 1890 19C6 CITY OF EDMONDS 250 - 5TH AVE. N. • EDMONDS, WA 98020 • (206) 771-0220 • FAX (206) 771-0221 COMMUNITY SERVICES DEPARTMENT Public Works • Planning • Parks and Recreation . Engineering Februrary 24, 1995 Dear members of the SEPA mailing list: LAURA M. HALL MAYOR This letter is to inform you that the SEPA determination for the Brackets Landing Park soil removal (File SM-95-16) has been withdrawn. We have reviewed the matter with the Washington State Department of Ecology and they concur, that the determination should be withdrawn since the action to be taken falls within the SEPA categorical exemptions_ If you have any questions on this matter please contact Kirk Vinish at: 771-0220. Sincerely, )effWilson, AICP SEPA Responsible Official pc: Rob Chave File SM-95-16 r...•,._...._,,,,.a n....... �f r i IQOO MEMORANDUM TO: City Council FROM: Laura M. Hallx4P-Im Mayor SUBJECT: Waterfront Park Associates/Wall DATE: February 18, 1994 RECEIverj FEB 2 2 " EDWNDS CI CLERK As you will note in the attached two pieces, we have come full circle with Waterfront Park Associates. To do business without attorneys involved was my initial stand with Mark McNaughton and Jim Ward. Patience, patience, patience! LMH/dm Attachments F1opWWordS\CoundAWPAWa11 OFFICE OF THE MAYOR CITY OF EDMONDS LAURA M. HALL OFFICE OF THE CITY ATTORNEY MAYOR 447-7000 FAX: 447-16M 890 19� MEMORANDUM was DATE: February 14, 1994 TO: Mayor Laura M. Hall and Paul Mar, Community Services Director FROM: Office of the City Attorney, W. Scott Snyder RE: Waterfront Park Associates As I mentioned to Paul I received the enclosed letter in January. In talking with Paul, he notes that WPA would like to handle this without involving their lawyer. They also seem willing to drag this thing out through appeals without malting any significant offer to resolve it. Given that Paul is updating the City Council I wanted to be sure you were aware that I have had no contact in months other than the letters from me to their attorney, (you were copied these letters). At this point I am entirely out of the loop except with respect to the information that Paul provides me. WSS:are:srf Enclosure 2100 Westlake Center Tower, 1601 Fifth Avenue, Seattle, WA 98101-1686 Incorporated August 11, 1890 ■ HOLZAPE EL I SPERRY_&j ,EBBERSON ATTORNEYS AT LAW 6000 WESTLAND BLDG IOO S KING STREET 5 EATTLE WA 98104-2869 1206) 624-1230 FAX 1206)340-2563 January 7, 1994 RONALD E. BRALEY Scott Snyder LINDA KELLEY EBBERSON TIMOTHY J. GAVIN Ogden Murphy & Wallace ANTHONY I.W. GEWALD 2100 Westlake Center Tower RICHARD R. HACK. JR. KEVIN P. HANCHETT 1601 Fifth Avenue DELNEY N. HILEN Seattle, WA 98101-1686 GEORGE S. HOLZAPFEL MARGO T. KELLER LISA ANN KOKENGE Re: City of Edmonds/Waterfront Park Associates, Inc. EARL P. LASHER III. P.S. JOE MENTOR. JR. DEAN A MESSMER Dear Scott: DANIAL D. PHARRIS ROBIN WILLIAMS PHILLIPS SHANNON SPERRY I received your most recent correspondence on January DAVID J. SPRINKLE PAUL A. TONELLA 5, 1994. I forwarded a copy to my client and was advised that there was a meeting held on December 15, 1993 between OF COUNSEL Jim Ward, Mark McNaughton and Paul Mar. Apparently, at that MICHAEL K. MURRAY. P.S meeting, a proposal was tendered to Paul Mar and he was going to respond directly to my client. To date, no response has been forthcoming. I have been instructed by my client to do no further work on this case until further notice. They would like to minimize their attorneys' fees in this matter and would prefer to deal directly with Paul Mar. To the extent you feel it is necessary, they have authorized you to contact them directly. Mark McNaughton's telephone number is 778- 6866. Jim Ward's phone number is 362-7044. Thank you for your attention to this matter. Very truly yours, LASHER HOLZAPFEL SP�ERrRY SON Mich K. Murray MKM/ge cc: Mark McNaughton MEMORANDUM February 4, 1994 TO: Mayor and City Council FROM: Paul Mar RE: Updated Status of Negotiations with Waterfront Park Associates P, E CI1VED FEB 0 4 1994 EDMONDS CITY CLERK This memo i)summarizes the activities on the above noted topic since mid December, 1993, and 2)alerts City Council of its upcoming decision making responsibilities with regard to the Brackett's Landing South project.. 1. On December 8, 1993, the City, as the reviewing agency, issued a Determination of Nonsignificance(DNS) on the City's(as the applicant) Shoreline Substantial Development Permit for the construction of a passive public park at Brackett's Landing South. 2. On December 22, 1993, legal counsel for WPA submitted a letter commenting on the DNS. The major concern cited was inadequate parking. 3. On December 28, 1993, the City, as reviewing agency, responded to the December 22 comment letter, citing WPA's option of addressing its issues at the January 6, 1994 hearing or filing a written appeal. 4. On January 6, 1994, a public hearing was convened by the Hearing Examiner on the DNS. No WPA representative was present during the hearing. 5. On January 6, 1994, legal counsel for WPA filed an appeal to the DNS. 6. On January 18, 1994, the City, as reviewing agency, scheduled March 3, 1994 as the date for the public hearing on the appeal to the DNS. The public hearing would be held on March 3,1994 in front of a Hearing Examiner. The Hearing Examiner would then issue his recommendation within two weeks, or by March 17, 1994. This recommendation would then be forwarded to City Council, which would, in turn, conduct its public hearing and render a decision. This hearing would most likely take place in June, 1994. The City, as the applicant, can take an aggressive or a passive tactic on WPA's appeal. City Council's directive of last fall to staff was to negotiate in good faith with WPA. Staff has continued this posture, as evidenced by the meeting I attended with WPA principals on December 15, 1993(see Exhibit 1 attached) At the June 1994 hearing, City Council will be issuing a decision on an appeal filed against a City sponsored project. Given these two conditions, staff has concluded that the most prudent course of action is the take a passive role and let the appeal run its natural course. This memo has been submitted to alert City Council of the estimated timetable of the near future events. MEMORANDUM December 20, 1993 TO: Mayor Hall FROM: Paul M RE: Meeting with Principals of Waterfront park Associates This memo provides the details of the briefing I gave you last week of my December 15 meeting with Mark McNaughton and Jim Ward, principals of Waterfront Park Associates (WPA). They requested the meeting to explore how to get the party wall project "back on track". We discussed what will be required to complete the project. Assuming that the party wall is entirely demolished, a new screen/fence would have to be erected to separate the park from WPA's parking lot. The exposed northeast stairwell of WPA's building will require reinforcement. The second floor balcony of WPA's building will need extension of the railing system. Costs will have to be incurred for design and engineering analysis, permitting and construction. In previous discussions, there was indication by both the City and WPA that there could be appropriate cost sharing for implementing a solution. However, the previous discussions were discontinued when there was no agreement as to funding, up front, the design costs. WPA suggested the following as a means of reopening the negotiation: 1) The City would assume a financial responsibility with a maximum exposure of $60,000 for all the costs associated with the solution; 2) the City and WPA would share the design and engineering cost on a 50-50, basis; 3) the City and WPA would both pay for the design/engineering costs on an "as you go" basis, with the City's maximum exposure at $5,000; and 4) at the conclusion of the design/engineering effort with cost estimates in hand, the City and WPA would reevaluate the situation and jointly make a go/no go decision. It was further agreed that the City would investigate appropriate avenues for contracting the design/engineering and construction services which would be in compliance with City codes. WPA suggested one method would be for WPA to contract for the services and for the City to participate in the cost. This and other possible scenarios will be explored further. indicated to Jim and Mark that, with the holiday season, the City would not be able to officially reply until early January. cc: Mark McNaughton, WPA EXHIBIT 1 8g� lg C5 - 't �_11 ,I -,, ub-1 CITY OF EDMONDS 700 MAIN ST • EDMONDS, WA 98020 • (2061 771-0230 (206) 771-0221 PARKS AND RECREATION DIVISION � l July 27, 1993 James Gualtieri 19066 85th Avenue NE Bothell, WA 98011 Dear Mr. Gualtieri: LAURA M. HALL MAYOR On Friday, July 23, 1993, the City discovered an additional underground gasoline tank at the Anderson Marine site. PTI Environmental completed a site visit to review and confirm the basic siting. The tank is located on the west end of the large storage shed in the inside area (see location on enclosed map). As per the Supplemental Agreement, Section I -A, specifically Howard Anderson is responsible for tank removal and confirmation of a clean site. Section D, Paragraph 3, states that in the event that of subsequent discovery the seller would be responsible for the cost of removal and disposal. The process of demolition is proceeding and the contract for bid award will be officially approved within the next three weeks. The contract specifically calls out that the tank and the specified surrounding area of concrete will remain intact with the top surface section remaining as demolition proceeds around the located tank site. Upon completion of demolition, the seller will then return to the site for removal and disposal. The City will issue the final payment to the sellers, Howard V. Anderson, Jr., and James Gualtieri, at 2:00 PM, Wednesday, August 4. However, $10,000, which is the environmental consultant's estimated amount of removal of the tank, will be issued as a separate check to Mr. Howard Anderson for the tank removal responsibility. This check will then be endorsed payable to the City to assure performance of, clean up of the site until the tank removal and environmental site inspections are completed, at which time the City will re -deliver the check to Mr. Anderson. Sincerely, Arvilla Ohlde, Manager Parks and Recreation Division cc Mayor Hall Art Housler John Wallace ■ Incorporcted August 11, 1890 0 uriington Northern Railroad Tracks Railroad Avenue New Warehouse/ Parts ' Department/ Engine Servi Paved Parking ® r � Waste Oil Heating Oil Ell Washington + S Stale Ferries Dock Wood Retaining Wall Beach Old j Hestaurant Warehouse If 1 l Gasolinef f LEGEND lice Dock j 1 ® Catch Basin Underground Storage Tank m Aboveground Storage Tank Under Building j - - - Storm Drain ro 1 ° -••— Site Boundary ro ! X X Fence ro I Stained Soils 0 50 v Retaining Wall steel Figure 1. Site map —Anderson Marine, Edmonds, WA. 8g0.1g y - July 27, 1993 r ltnt.� CITY OF EDMONDS CIVIC CENTER • EDMONDS, WA 98020 • (206) 771-0240 ADMINISTRATIVE SERVICRS DEPARTMENT r b � Mr. James Gualtieri 19066 85th Ave. NE Bothell, WA 98011 Mr. Gualtieri: C� RECEIVED JUL. 271993 LAURA M. HALL MAYOR i�cecutiy� ,Offi�es Recently, Arvilla Ohlde, Parks & Recreation Manager, notified you of the City of Edmonds securing all the grant monies, which, per the purchase contract, requires full payment of the balance owing. Further, this letter is confirmation for the time and place set for the payoff, which will be in the Mayor's conference room on August 4, 1993, at 2:00 p.m. A check in the amount of $1,613,167.82, which includes interest of $63,167.82, for the period from December 9, 1992 through August 4, 1993, will be made out to Howard V. Anderson, Jr., and James Gualtieri. Incidentally, the City of Edmonds was very confident that the grant monies would be secured before the first payment became due; therefore, the documentation has been kept in the City Clerk's vault and not at the bank. This has saved the cost of the escrow fee. Sincerely, CITY OF EDMONDS Arth . Housler A inistrative Services Director AJH:kms c: Laura Hall, Mayor Arvilla Ohlde, Parks & Rec. Manager 0 Incorporated August 11, 1890 • Ao—mm—a—L d C>i- LLmV.EtiC�s i_AL.tRA M. HAIL Ct VIC OEM MR + M�M C3r4oja. WA D®620 • JMDS) T S-2,52a M►Ypq TEL.ECOPxE:R Cc)kEEZ X-Ac3E 'Y't7 s 63 DATE `7laA-Nsmxww E;v % NII ME&ME2 C3 V P-j%C4n a x R®R:.i�a�.�aaatffi Tr�l�ca�aiex• Na a1 -�h� ^�y�i ]E"k#C93MZLE E'Q'CT=FNYE �j'Sa Asa�asnestic/Groxx �, Y1' C:2. 3 RnAn+�e) E-ROM: ST�C �y L.no,c ,. Z� SYIBrH as:o i3 axy d3rr,.�la ]L +�xna� dic:r ia�.g Daputy G1ty Cl©ric ts�rn�sni�®Son ar. docu.maa�tz@.s si:ss r®c�.iv®d Saac.anaplaLo . galatz+.is�s r,Tn.13 a sad ash i'car c �s,.{�.n1 � b �a a-sd�r� T®Yeoo iFsr Ti c>- a 20s-7$1-0221 s Irrcorpo rat®� Augvai I.S, 2139U o TRANSMISSION REPORT THIS DOCUMENT (REDUCED SAMPLE ABOVE) WAS SENT COUNT 3 *** SEND *** NO REMOTE STATION I D. START TIME DURATION #PAGES. COMMENT 1 92922961 7-27-93 9:27 1'4.5" TOTAL 0101'45" ^a XEROX TELECOPIER 7020 8 g 0_ 1 9 °l CITY OF EDMONDS CIVIC CENTER • EDMONDS, WA 98020 • (206) 775-2525 TELECOPIER COVER PAGE LAURA M. HALL MAYOR JJL_ TO: DATE TRANSMITTED: a 7 q-3�y �0)1 NUMBER OF PAGES ' (Including cover page.) Recipients Telecopier No: FACSIMILE EQUIPMENT: Automatic/Group II (2, 3 mins.) FROM: Stacey Law, If there are any problems during Deputy City Clerk transmission or documents are received incomplete, please call and ask for: Senders Telecopier No.: 2 06 - 771-0221 • Incorporated August 11, 1890 • f-:i:.,_ T---- -a: -I LT„ 1.:--- T,.-. . 890 -19() TO: CITY OF EDMONDS CIVIC CENTER • EDMONDS, WA 98020 • (206) 775-2525 Recipients Teel'ecopier No: .� TELECOPIER COVER PAGE DATE TRANSMITTED:�a� 9� NUMBER OF PAGES: (Including cover page.) LAURA M. HALL MAYOR FACSIMILE EQUIPMENT: Automatic/Group II (2, 3 mins.) FROM: Stacey Law, If there are any problems during Deputy City Clerk transmission or documents are received incomplete, please call and ask for: Senders Telecopier No.: 206-771-0221 ■ Incorporated August 11, 1890 0 CITY OF EDMrNDS CIVIC CENTER • EDMONDS, WA 9ov20 CITY CLERK REQUEST FOR PUBLIC RECORDS PLEASE PRINT CLEARLY Requestor Name: Address: Phone Number: Request Made By: [ ] In Person [ ] In Writing [ ] By Fax [ ] By Phone Date of Request: Nature of Request: Is information requested to be used for commercial purposes? Signature of Requestor FOR OFFICIAL USE ONLY ACTION ON REQUEST FOR PUBLIC RECORDS MUST BE TAKEN WITHIN FIVE (5) BUSINESS DAYS (SEE R.C.W. 42.17.320) Action taken: [] Request Granted [] Acknowledgement Estimated Response Date Provided (See No. 4) [] Record Denied (See Nos. 5 & 6) [ ] Record Withheld in Part (See Nos. 5 & 6) 2. Request forwarded to attorney for review: [ ] Yes Date Forwarded []No CONTINUED ON REVERSE SIDE 3. Notification of Action Taken to Requestor: a [ ] Request granted b [ ] Need for additonal time How long? c) [ ] Request denied d) [ ] Record withheld in part 4. If additional time needed, explain why: 5. If request denied or record withheld in part, name the exemption contained in Chapter 42.17 RCW which authorizes withholding or denial: 6. If request denied or record withheld in part, explain how the exemption applies to this record: 7. Request received by: Department: Date: FEES 0-5 copies free Non-profit orgnization @ .10 per page: Charge _ pages @ .10 per page $ General Public @ .25 per page: Charge _ pages @ .25 per page Other Special Projects/Attorney & Related Requests (cost based on time & material) DOCUMENTS PROVIDED: DATE MAILED: PICK UP: RECEIPT #: DATE: CAWORDATATORWINSCLOSE SL ►9 PEERY, HISCOCK, PIERSON & RYDER, INC., P. S. DAVID F. HISCOCK A PROFESSIONAL SERVICE CORPORATION JAMES E. HORNE' DALE L. KINGMAN' INCLUDING OTHER PROFESSIONAL SERVICE CORPORATIONS MAUREEN C. MULLANE' ATTORNEYS AT LAW MAX N. PEABODY' CHARLES E. PEERY 606 MADISON STREET, SUITE 300 RICHARD W. PIERSON SEATTLE, WASHINGTON 98104 MICHAEL E. RICKETTS MAUREEN E. RYAN STEPHEN P. RYDER, P. S. LU-ANNE G. WENHAM' 'ALSO ADMITTED IN OREGON AND HAWAII 'ALSO ADMITTED IN COLORADO 'ALSO ADMITTED IN CALIFORNIA 'ALSO ADMITTED IN ALASKA July 22, 1993 Ms. Rhonda March City Clerk City of Edmonds 505 Bell Street Edmonds, WA 98020 Re: Edmonds Waterfront Acquisition - Anderson Marine Property Dear Ms. March: (206) 622-1264 FACSIMILE 1206) 292-2961 RECEIVED 2 3 1993 EDMQtjUt�� CITY CLERK RECEIVED JUL 2 3 ve EDMONDS CITY CLEFW I would like to request the appraisal review performed by Schueler, McKown & Kennan, Inc., of the William Smith Company's appraisal of the Anderson Marine Property. I have recently spoken with Ms. Arvilla Ohlde, City of Edmonds' Parks and Recreation Manager, and Mr. Scott Snyder, Esq., City of Edmonds' legal counsel, who have both referred me to your office for this documentation. Please contact me so that payment and delivery arrangements can be made. Thank you very much for your assistance. Very truly yours, PEERY, HISCOCK, PIERSON & RYDER Sandra Leskauskas Paralegal to Richard W. Pierson IIVVff � MEMORANDUM V - July 7, 1993 TO: Laura M. Hall Mayor FROM: Arvilla Ohlde, Manager Parks and Recreation Division SUBJECT: PUBLIC TOURS AT BRACKETT'S LANDING PARK SOUTH SITE In response to the City Council's directive of increased public tours at Brackett's Landing South, provided through the Beach Ranger program, I forwarded to City Council President, Dave Earling, the attached memo on June 17, 1993 regarding the status of funds available in the 1993 budget. I anticipated that the item would be discussed during the Council report section of the meeting on June 22. This did not happen; therefore, I've continued to keep the Beach Ranger program providing public walks for groups that pay for the services. This was done through the $700 remaining in the line item appropriation. I've also worked with the Quest science program and have student volunteer staff at the Ranger Station, and providing tours on the weekends when available to donate their time. The Beach Rangers know that the emphasis is on provision of programs at the Brackett's Landing South site. They have scheduled programs there over the last month and will continue minimally throughout the summer on the beach and tidelands. The ability to secure a low bid that allows for minimal difficulties is essential in the fast paced schedule set for the demolition. The demolition company needs to have a secured and safe project site. The heavy equipment will demolish the building first, then the asphalt, and finally the security fencing will be removed. The City will then have a clean site to allow public use. To cloud the process by diminishing the fence area to allow public tours for basically a minimal amount of time creates a cumbersome situation that has greater potential of danger versus the benefits to be gained. The IAC will approve the Edmonds Waterfront project on July 29 at their quarterly meeting. The Mayor will sign contracts on July 30; the City will pay the final payments with Mr. Anderson after August 23 (he will be out of town until then) and the City will present the deed (copy) and a voucher for payment to the IAC for the grant reimbursement. The dedication ceremonies have been scheduled for September 25, which coincides with the statewide Coastweeks activities and is a prime time for a family event to celebrate the new park opening. �,AL4�- &.,) a &-&- M E M O R A N D U M June 17, 1993 TO: Dave Earling Council President FROM: Arvilla Ohlde, Manager Parks and Recreation Division SUBJECT: REQUEST FOR FUNDS The Mayor has directed that a request for funds be included in the City Council portion of the agenda on June 22, 1993. The attached memo clarifies the need for the funds which provide for the City Council request of additional Beach Ranger Programs at the Brackett's Landing Park South site. As you can see from the enclosed letter, the public has a desire to see the Beach Ranger Program continue being funded to include summer beach programs, i.e., patrols, ranger station, etc. MEMORANDUMI June 17, 1993 TO: Laura M. Hall Mayor FROM: Arvilla Ohlde, Manager Parks and Recreation Division SUBJECT: FUNDING FOR THE BEACH RANGER PROGRAM AT BRACKETT'S LANDING PARK SOUTH Tuesday, City Council requested Beach Ranger programs at the Brackett's Landing Park South site to ensure visibility and use of the site. The Beach Ranger funds budgeted for 1993 were reduced. The fee -based programs ended Monday, June 14, 1993. During the 1993 budget process the City Council eliminated $5,000 from the.Beach Ranger Program. Those programming dollars are used historically for patrols, special events, walks and public programs that begin after the fee -based educational program ends in June, and continue through mid -September. Due to this elimination, no programming has been scheduled to continue after the second week in June. To be able to continue the program, I've looked at the current detail of the Beach -Ranger budgeted funds, and there is $700 remaining in the line items of that budget appropriation. If it is the Council's desire to provide a continuation of the program, understanding that the emphasis was for Brackett's Landing Park South, I could do so on a limited basis with an additional appropriation of $2,000. The $700 remaining in the existing budget and the new funds of $2,000 will allow for beach programs and a special family beach ranger event as part of the dedication ceremony. Tentatively, I'm looking at a Saturday, the second week of September to set the date of the dedication and beach event. This coincides with statewide Coastweeks which will expand exposure of the acquisition of this new site. June 15, 1993 Dear Mayor Hall, lYJFC E] V,6�0 JUIV { 51993 exec utrivl Of`'�s Yes, it's a time for our elected officials to make difficult choices_ Budgets are tight all over, and cut backs are the order of the day. But, the choices they make must also be intelligent ones; it is not a time to be penny wise and pound foolish. Cutting the budget for the Edmonds Beach Ranger Program would be a short-sighted and poor decision. The Beach Ranger Program is a highly visible program with an excellent reputation well beyond the city limits. It embodies many of the positive attributes that the city has worked so many years to create, and which in turn draw people to the Edmonds economy and support our tax base. As such, it is an excellent marketing investment that reaps significant returns for a modest investment. In addition to its value in communicating the image of Edmonds as a clean, wholesome, and civic -minded community, the Beach Ranger Program is a direct investment in our local people. Young and old alike are inspired and supported to adopt responsible attitudes and actions regarding our area's environment. Again, a modest investment in this program can have a significantly positive. impact on ensuring the protection of our fragile marine environment, and that our beaches are clean, safe and friendly for Edmonds families. The program is much more than a nice -to -have educational asset. It has become a part of what allows us to have "an Edmonds kind of day." The Beach Ranger Program returns far more than its modest budgetary requirements, and. it should strongly support to be kept in the City's budget. :� LL �Ctvic( C- 3 o sf r� C vY1 L Q r C d n-) in -Jo �J(a- V Q I C. 1 1( coon r'Y�F m k j U.S. E3AN1K® ESCROW OEP RTM ENT WEST 502 P.O. BOX 3626 SPOKANE. WASHINGTON 99220 509-353-7126 January 29, 1993 CERTIFIEDI��CEI r r U.S. Bank of Washington FEB 0 1993 Attn : Kathy Leckman P.O.- Box 190 Edmonds, WA 98020-OlM i ` '. Re: Anderson & Gualtieri - City of Edmonds Dear Kathy: Enclosed are the following documents: 1) Copy recorded Real Estate Contract dated December 9, 1992; 2) Copy recorded Deed & Sellers Assignment of Real Estate Contract dated December 9, 1992; 3) Quit Claim Deed dated December 9, 1992; 4) Statutory Warranty Deed dated December 9, 1992. These documents are being returned to you because there is a disagreement regarding the payment of our escrow fees, and we are unable to obtain the signed escrow instructions from the seller. Thus, the escrow is incomplete, and we can not accept. Any further assistance we can do, please let me know. Sincerely, Y rr i JOAnn To e nutte Manager, Escrow Dept. JAT/bem Enclosures CC: Howard B. Anderson, Jr. James Gualtieri City of Edmonds Attorney P4ichael A. Utt Attorney J.A. Cyphers ,.TAN - 1 5- 9 3 P R I 3- 4 3 THE H Q E P E R A P.@ 1 1WHE H0EFEKASS0CLQS FAX COV511 LMER tNCOAPOWE0 FAX#206/.461-2068 APAROAL , FEASSIXY ADVISt7AY SERVICES TO, COMPANY; FROM; �coTr ..'r/ZMjova DATE; .. -r 3"v s-r- TIME: 3 REGARDING,,Q Sr IC'av2 A-,V ea /X 4 L origins wit oe mooed os of todays date Originci w1i not be Malled uriess requested There are a total of 0- _ pages being .trans Med, IncludlnQ this cover letter. if you do not receive aU the pages fransmMed, pieose contact us Immediately at 2061453-9980. Thank you for letiing us be of service to YOU II THE HOVER ASSOCIATES, INC. 1250 112th AVENUE N.E, BELLEVUE, WA 9M (206) 466,9690 i 5-93 FR I a : 44 THE "OFFER A P' . 102 Ms. Rhonda bUrch Clerk - City of Edmonds 250 • Sth Avenue North Edmonds. WA 98020 January 11, 1093 bear Ms, March, Ac por our phone coavorsation of earlier today, I mould like to formally rcquc5t a ropy of the appraisal report conducted on the Andcrsoni Marine property in downtown Edmond& Y have been informed that this report was conducted by William Smith. As I stated, I am a roil estate appraiser with the Hocfcr Assoeia (c s to Bellevue, Washington. We are currently working on an appraisal of a shullar property and would like to learn 110w the City vaIucd the Andorson Marine property which is not an easy appraisal problem. I have spoken with Arvilla Olilde with the city parks department and she informed me that I could obtain a copy of this report because it is available under public disclosure laws. She suited tlit 1 only needed to request a copy from your office. As you have informed ine, you must request it from the city's attorney. For this reason, could you please allow this to be a formal request far a copy of this document, We would like to obtain this copy as soon as possible so could you also let me know where and when I would be able to pick this copy up, Thank you for your help with this issue. Sincerely, Scott T. Germina, THE HOEFER ASSOCIATES Law OFFICES OF PETER L. MAIER, P.C. PETER I.. MAZER 1300 HOGE BUILDING 705 SECOND AVENUE DENISE FIAGARTY LEGAL ASSISTANT SEATTLE, WASHIIVGTON 98104 January 14, 1993 City Clerk City of Edmonds Edmonds WA 98020 Dear City Clerk: JAN 1 r. 1993 Edmonds U y Clack TELEPHONE 1208) 823-2900 PAX COPIER (206) 623-2186 On behalf of my client the Port of Edmonds, I request a copy of the following documents pursuant to the Public Disclosure Act, RCW 42.17.250 et seq.: The City of Edmonds' application to the Interagency Committee for Outdoor Recreation (IAC) for a grant with respect to the City's acquisition of the Anderson property located at 100 Railroad Ave., including but not limited to any appraisals and appraisal reviews included in or attached to the application. Sincerely, LAW OFFICES OF PETER L. MAIER, P.C. Peter L. Maier PLM:dh cc: Bill Stevens Ay'-I,od � �� CIT�C �F E�MONDS L_AURA M. HALL OIVIC CGN'MI • .-M NOS. WA 0802. . (8OO] 778-2828 MA-oF JB 9p l99'� - EC OP S E R COVER PAGE TO :. �sJF �w _ DATE TR14N 3MS TTED z NLIMSER OF' PAQE$ ■ �•- � FLa c i p i aria A T®Y sc op3 ar No - FAC3=M2LE EQVSBPSENT: Automatic /3r oup 2 = (Z � 3 m3 na .. ) F RQMz Rhonda MarCla� _� Y.Yisra nra any promYslm.a during City CZ®r]c trea�tumisaiozx or dooumeaztg are racaivod inc4 0t-r3� pleflsa caYY Senders Taleco):aior No _ a 206-W?-� --7 03�•/ • Into rporo trd August ZY, 2640 - + Sister CiVes lntern tion l — HeLcinan, Ji Jnan TRANSMISSION REPORT THIS DOCUMENT WAS SENT * COUNT # 2 (REDUCED SAMPLE ABOVE) N� SEND NOI REMOTE STATION I.D. START TIME DURATION #PAGES COMMENT 1 206 447 0328 1-15-93 2:15PM 1'56" 2 TOTAL 0:01156" 2 XEROX TELECOPIER 7020 CITY vF ED��I'JDS CIV10 OENTEfi • EoMOI406. WA 90020 - (208J 778-S526 j 9 O TELECOP 2 E R COVER PAdE LAQ14A M_ HALL -.-Q" DATE TRANSM S TT ED s �,�� NUMBER OF PAGES a ( =secluding cover-- Rss c i p i ant a Ta l o c opY ar No s i'AC S 2M= LE EQU S BMENT i Automatic /droop S S (2 , 3 mi ns! _ ) FROMs Rhorada MesrcYA, =i tliar�a era any problems! dasrirag City Clorlc tran�emi�a�ion or doculm�rata nra racs33Y®d incomplai�i oassa ca11 ar,d asaIc ror a - T S®redaru Tssleoopier No _ s 206-S a 2 . -7'7 /- -,0 2'�/ • fncorp —t,,d August 22, 1.50 - Sister Cities Internaticanal — H�xkinEin, Japan TRANSMISSION REPORT THIS DOCUMENT (REDUCED SAMPLE ABOVE) WAS SENT COUNT # 2 *** SEND *** NO REMOTE STATION I.D. START TIME DURATION #PAGES COMMENT 1E 206 447 0328 1-15-93 4109PM 1'57" 2 TOTAL 0:01'57" 2 XEROX TELECOPIER 7020 9Z; F R I 3 e 4 4 T H E H O E F E R A p- g am Ms. Rhonda March Clerk - City of Edmonds 250 - Slh Avenue North Edmonds, WA 98020 January 15, 1093 Dear Ms, M4trch, As par our phone conversation of earlier today, I would like to formally request a Dopy ofthe appraisal report cgnductod an tl-e Anderson Marine property in downtown E.dmands. 11mve been inferred that this report was conduoted by William Smith. As I stwtcd, I am a Mat c9ate Appraiser with tho Hocfcr Associates iii Bellevue, Washington, We are currcndy Work'nF, on an appraisal of a siinilFu property and would like to learn how the city valued the Anderson Marine property which is not all easy appraisal problem. I have spoked with Arvilla Ofilde with the city parks CTartaient and she informed me tlt:t I Could obtalr. a copy or this report because it is available under Public disclosure laws. She stated that 1 only needed to request a copy from your office. As you h-pc informed me, you must request it from tlic city's attorney. For ties reason, could you please allow this to be a formal request for a copy of this doculnont. We would like to obtain this copy as soon as possible so could you also let me know whare and when I would be able to pick this copy up, Thank you for your help with this issue Sincerely, Scott T. Germino, TAR 14012-FER ASSOCIATES CITY OF EDMONDS CIVIC CENTER • EDMONDS, WA 98020 • (206) 775-2525 8gp.19 December 21, 1992 Mr. Lee Voorhees Foster, Pepper & Shefelman 1111 Third Ave., Suite 3400 Seattle, WA 98101 Dear Lee: LAURA M. HALL MAYOR Enclosed are the certified documents relating to the Anderson Marine Real Estate Purchase Contract Agreement, as follows: 1. Assessed Valuation Certificate; 2. IRS Form 8038-G; 3. Certified copy of Resolution No. 755 with referenced copy of the executed and recorded Real Estate Purchase Contract Agreement and exhibits; 4. Certified City Council Minutes of December 8, 1992. If you need any additional documentation, please contact me at 771-0245. Happy holidays! R e.nda J. March Edmonds City Clerk enclosures Incorporated August 11, 1890 ■ CITY OF EDMONDS CIVIC CENTER • EDMONDS, WA 96020 • (206) 775-2525 8 g 0_ 199 9 v December 22, 1992 Ms. Shirley Christensen Documentation Specialist III U.S. Bank Escrow Dept. P.O. Box 3626 Spokane, WA 99220 Re: Escrow, Anderson & Gualtieri - City of Edmonds Dear Shirley: Enclosed are the following per your letter of December 16, 1992: 1) IRS Form W-9 signed by the City's Finance Officer, Arthur J. Housler LAURA M. HALL MAYOR 2) Escrow Instructions and Receipt forms signed by Mayor Laura M. Hall and Rhonda J. March, City Clerk I have inserted the date of December 9 to reflect the contract date which was inadvertently left off the document by the closing agent. All of the notary affidavits reflect that date as well. Sincerely, onda J. March Edmonds City Clerk enclosures 0 Incorporated August 11, 1890 a Form WA Request for Taxpayer Give this form (Rev. DecembDepartment the Identification Number and Certification to the NOT end to IRS. Department of the Treasury Internal Revenue Service N Name (If joint names, list first and circle the name of the person or entity whose number you enter in Part i below. See instructions under "Name" if your name has changed.) a CITY OF EDMONDS 1041. ° Address (number and street) List account number(s) ahere (optional) d Bell Street d City, state, and ZIP code IL Edmonds, WA 98020 Identification Number Enter your taxpayer identification number in the appropriate box. For individuals and sole Social security number proprietors, this is your social security number. For other entities, it is your employer identification number. If you do not have a OR number, see How To Obtain a TIN, below. Note: If the account is in more than one name, Employer identification number see the chart on page 2 for guidelines on whoseW+610QI�Idl�ff_ number to enter. For Payees Exempt From Backup Withholding (See Instructions) Requester's name and address (optional) Certification. —Under penalties of perjury, I certify that: (1) The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and (2) 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding (does not apply to real estate transactions, mortgage interest paid, the acquisition or abandonment of secured property, contributions to an individual retirement arrangement (IRA), and payments other than interest and dividends). Certification Instructions. —You must cross out item (2) above if you have been notified by IRS that you are currently subject to backup withholding because of underreporting interest or dividends on your tax return. (Also see Signing the Certification under Specific Instructions, on page 2.) Please Sign Here Signature 0- Instructions (Section references are to the Internal Code.) Purpose of Form. —A person who is required to file an information return with IRS must obtain your correct taxpayer identification number (TIN) to report income paid to you, real estate transactions, mortgage interest you paid, the acquisition or abandonment of secured property, or contributions you made to an individual retirement arrangement (IRA). Use Form W-9 to furnish your correct TIN to the requester (the person asking you to furnish your TIN), and, when applicable, (1) to certify that the TIN you are furnishing is correct (or that you are waiting for a number to be issued), (2) to certify that you are not subject to backup withholding, and (3) to claim exemption from backup withholding if you are an exempt payee. Furnishing your correct TIN and making the appropriate certifications will prevent certain payments from being subject to the 20% backup withholding. Note: If a requestergives you a form other than a W-9 to request your TIN, you must use the requester's form. How To Obtain a TIN. —If you do not have a TIN, apply for one immediately. To apply, get Form SS-5, Application for a Social Security Number Card (for individuals) from your local office of the Social Security Administration, or Form SS-4, Application for Employer Identification Number (for businesses and all other entities), from your local Internal Revenue Service office. To complete Form W-9 if you do not have a TIN, write "Applied For" in the space for the TIN in Part I, sign and date the form, and give it to the requester. Generally, you will then have•60 days to obtain a TIN and furnish it to the requester. If the requester does not receive your TIN within 60 days, backup withholding, if applicable, will begin and continue until you furnish your TIN to the requester. For reportable interest or dividend payments, the payer must exercise one of the following options concerning backup withholding during this 60-day period. Under option (1), a payer must backup withhold on any withdrawals you make from your account after 7 business days after the requester receives this form back from you. Under option (2), the payer must backup withhold on any reportable interest or dividend payments made to your account, regardless of whether you make any withdrawals. The backup withholding under option (2) must begin no later than 7 business days after the requester receives this form back. Under option (2) the payer is required to refund the amounts withheld if your certified TIN is received within the 60-day period and you were not subject to backup withholding during that period. Note: Writing "Applied For" on the form means thatyou have already applied fora TIN OR that you intend to apply for one in the near future. As soon as you receive your TIN, complete another Form W-9, include your TIN, sign and date the form, and give it to the requester. What Is Backup Withholding? —Persons making certain payments to you are required to withhold and pay to IRS 20% of such payments under certain conditions. This is called "backup withholding." Payments that could be subject to backup withholding include interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee compensation, and certain payments from fishing boat operators, but do not include real estate transactions. If you give the requester your correct TIN, make the appropriate certifications, and report all your taxable interest and dividends on your tax return, your payments will not be subject to backup withholding. Payments you receive will be subject to backup withholding if: Date Op - (1) You do not furnish your TIN to the requester, or (2) IRS notifies the requester that you furnished an incorrect TIN, or (3) You are notified by IRS that you are subject to backup withholding because you failed to report all your interest and dividends on your tax return (for interest and dividend accounts only), or (4) You fail to certify to the requester that you are not subject to backup withholding under (3) above (for interest and dividend accounts opened after 1983 only), or (5) You fail to certify your TIN. This applies only to interest, dividend, broker, or barter exchange accounts opened after 1983, or broker accounts considered inactive in 1983. For other payments, you are subject to backup withholding only if (1) or (2) above applies. Certain payees and payments are exempt from backup withholding and information reporting. See Payees and Payments Exempt From Backup Withholding, below, and Exempt Payees and Payments under Specific Instructions, on page 2, if you are an exempt payee. Payees and Payments Exempt From Backup Withholding: —The following is a list of payees exempt from backup withholding and for which no information reporting is required. For interest and dividends, all listed payees are exempt except item (9). For broker transactions, payees listed in (1) through (13), and a person registered under the Investment Advisers Act of 1940 who regularly acts as a broker are exempt. Payments subject to reporting under sections 6041 and 6041A are generally exempt from backup withholding only if made to payees described in items (1) through (7), except that a corporation that provides medical and health care services or bills and collects payments for such services is not exempt from backup withholding or Form W-9 (Rev.12-88) ESCROW T—STRUCTIONS AND RECEIPT U.S. BANK Or ASHINGTON, NATIONAL ASSOCIATION TO JUjgA111K® U.S. Bank of Washinmon. National Association 1 r I.. l nnn Contract Servicing Office, Spokane (WSA 689) West 502 Riverside Spokane, WA 99201 509-353-7127 I The following documents are handed to U.S. Bank of Washington, National Association, to be held in ESCROW subject to the instructions hereinafter set forth, to which the undersigned agree: DOCUMENTS RECEIVED ❑ Note ❑ Mortgagge El Deed of Trust �a u Cotxraet dated '� �Y r 19 qz , between II{Y+c�lr' B. Azftrson, T.i.. & JaMos Guali_ieri. as Seller/Payee and City 'JL Z-claiiS _ as Purchaser/Payer covering the real property therein described, (the "Obligation"). Unrecorded Statutory Fulfillment Deed dated DccCJril• -r n , 19 92 , executed by the Seller in favor of Purchaser covering the property described in the above named Real Estate Contract, (the "Obligation"). ❑ Satisfaction of Mortgage ❑ Request for Reconveyance ❑ Bill of Sale QOther: it MaiM D.:!ce. Ll er % 1992 (the "Oblip6on'). PAYMENT OF OBLIGATION The principal bahvLcc of this unpaid Obligation is $ + `�+� �' fIR payable in ❑ Monthly❑ Quarterly ❑ Semi -Annual ?© Annual ins[allnicnt of 213 n96 /£ arinorc be actin* tom'-m'`ber 9 19 3 , $i � including interest El plus interest at • % from Ik`'s'ltl7cr' Ii7 sa. OTHER Olt ADDITIONAL PAYMENTS ARE TO IIE PAID AS FOLLOWS: A i. 1.._ ..i l,.l c'.. 1C.1 ci.t-J L'r�'fJ(,: --la 7�bt)U,UOU.UUWas Pa1G t3 the time of closing to Howard B. A-ndorsorl, Jr. , receiL�t of which is hex.,eby adknowledged. METHOD OF INTEREST COMPUTATION ylcn5tenco shall be. calculated and payments applied as checked below: LJ' Batik shall apply all payments received first to interest accrued and unpaid to the date payment is received, and thereafter to the outstanding principal balance. Interest shall be calculated to the date payment is received on an actual days/366 days basis for leap years. ❑ Bank shall apply all payments received first to interest due on the schedule payment date, and thereafter to the outstanding principal balance. Interest shall be calculated to the date interest is due on a 30 day month/360 day year basis. Any required adjustment of interest payments resulting from a variance between the method of interest calculation checked above and the method specified in the Obligation shall be made by and between the parties of the Obligation, for which adjustment Bank assumes no responsibility. FEES Acceptance Charge. $ 64.80 . An annual Base Fee of S 21 E • 00 shall be assessed for this account which includes the first deposit to Bank. A Service Charge of S l 00 & tax shall be assessed for each additional disbursement to an account in the Bank. A Service Charge of $ 3 0 & La;: for each disbursement shall be assessed for all other disbursements. Base fee may be collected on a scheduled per payment basis. Other charges may be made by the Bank from time to time. Additional terms concerning the Bank's charges are set forth on the reverse side of this document. Service charges shall be peisi*t�1f�. Ilf by Seller unless otherwise specified in the Obligation- LT_d. PLT':S 11'0 BE T?A1lD l-" ST'i --m. SUPPLEMENTAL INSTRUCTIONS ' See attached form(s) 1 d "" / `-11' 9 for supplemental instructions. DISPOSITION OF PAYMENTS 1. U.S. Bank of Washington, % orS ❑ Savings ❑ Checking Acct. No. National Association In the Name of 2. Remitted by check payable to: % or S or3 or, THE UNDERSIGNED ACKNOWLEDGE THAT THE TERMS AND CONDITIONS ON THE REVERSE SIDE OF THIS DOCUMENT ARE INCORPORATED IN AND MADE A PART OF THE CONTRACT BETWEEN THE UNDERSIGNED AND U.S. BANK, AND FURTHER ACKNOWLEDGE THAT THE UNDERSIGNED HAVE READ AND UNDERSTAND SUCH TERMS AND CONDITIONS. SELLER INFORMATION TAXPAYER I.D. NUMBER TAx PAYEt mENTinCATTON NUMBER I 'si r6 below, the Sclksll§ a listed ink below licrcbleerzifm under pc-0tY ofPc9u rY• OF SELLER/PAYEE LISTED that the TaxpayLT1.1). Number provided on their E%mw i regm iwn n correct. Ry marking FIRST BELOW: "IYti' iA tllc "Subjeet to l3.ukup Witlilavldin box, scutrll'aycc rrrtifu-S thu ^aclkrll'a}xr isluturbjccttotuckuprvilll4roldiltgcirltrr rauu-die Ins tat PlotrtutifedSC11WPayn Ihas backnlr withholding it nryn iTL'd duc to sr ndet rc}wrtirlgar because [tic 1 RS ha%noti- SUBJECT TO BACKUP ❑ ❑ ❑ WITHHOLDING? YES NO EXEMPT lied Sc11erlPa rc Iflat Seller/Payee is no lan err soli cn LD $a[ktt witlthaldin %CNATIFRP. or }EF.LE t YI x. VC NATURE [)F SEU I:u all x. .. .... ........... nuouess �14I9�— 2C[i'r31 St. 54S Is• nrrutnss 6752B _ i7Ath ML CITY/STATE/ZII' ii n�.jljl�� r �r.., .gyp CITY/STATE/ZII' F'l''�. 11dm,, VPi 98020 WOI111 TELEPHONE NUMBER HOMETEL-EmiONENUMnER WORK TI:I IT1111NENUMIlI: It HOME TELGI'HONE NUMBER PURCHASER INFORMAT ON 'wpTut t 1v RCH AS(•N a..r _ _ t: .1 . , ul rcH -r:u n= -AD1 Ss ._'ivt _: Jq'.:a, 1 a./« �I DRESS iV )A , CITY/STATE/ZII' f'�:;!ll l'ti/,j+ ,�(� ',l �I CITY / STATE/ Z_II' WORK TELEPHONE NUMBER HOME TELEPHONE NUMBER WORK TELEPHONE NUMBER HOME TELEPHONE NUMBER APPROVAL/ACCEPTANCE OF APPLICATION THESE ESCROW INSTRUCTIONS ARE RECEIVED AND ACCEPTED SUBJECT TO THE PRINTED 11ROVISIONS ON THE REVERSE SIDE: DATE U.S. Bank of Washington, National Association jtV TITLE ys ��LL���}}����++{{yy1 +r�((���� '(� �/T 1.4'ti'lClllM, ESC,.'rMvvJ DEFT. I IXIA ""I u,s BANK Escrow A, _)unt [Supplemental Instructions] U.S. BANK OF WASHINGTON, NATIONAL ASSOCIATION bee r`��D_cenber ESCROWNUMBER TO U.S. Bank of Washington, National Association 16, 1992 III It is understood and agreed -that not ithstanding the foregoing, in the event the buyer obtains the TPc matching funds that it has applied for, for this purchase, then in said event, the entire rermining balance of principal and interest on both of the aforestated obliga.tons to Howard D. Anderson, Jr. and James Gualti.eri shall be paid in null. It is understoocJ and agreed that notwithstanding the foregoing, nothing shall p:cohibit the buyer from, at any tine prepaying all or any portion of the principal and intr_res`_ balance owing on either or both of said obligations at purchaser's role discretion. x MHATVRE OF MILEA ry !RTMEM .. I ; , T .. x e.TG n SIGNATURE OF SELLER 42 CITY OF Erli ms - Mw 1:1211 . M, Mill Mg- 14-7819 WA (12/86) U.S. ESCROW DEPARTMENT BANK, WEST 502 RIVERSIDE P.O. BOX 3626 SPOKANE, WASHINGTON 99220 1-800-821-1749 509-353-7127 December 16, 1992 RECEIV City of Edmonds Attn: Rhonda DEC 2 j 1992 250 - 5th Ave. N. Edmonds, WA 98020 Edm nds (,perk 64`� Re: Escrow, Anderston & Gualtieri - City of Edmonds Dear Rhonda: In connection with your purchase of certain property, the following documents have been presented to us for your escrow: 1) Recorded Real Estate Cotnract dated December _, 1992; 2) Statutory Warranty Deed dated December 9, 1992; 3) Quit Claim Deed dated December 9, 1992. We are enclosing our Escrow Instructions for your signatures. Please take a few minutes to review these instructions, and sign them where indicated. To assist us in providing prompt service on this account, we ask that you return these Escrow Instructions to us as soon as possible in the envelope provided for your convenience. To represent all parties as Escrow Agent, we must have signed Escrow Instructions prior to receiving and processing payments on the account.. An account number will be assigned to your account upon our receipt of these signed Escrow Instructions, and a copy will be returned to you with your new account number. Please note the sellers will paid all escrow fees. Thank you. U.S. Bank of Washington, National Association MEMBER FDIC A U.S. Bancorp Company U.S. Bank Escrow Dept. Page 2 The Internal Revenue Service requires the payer to furnish his or her tax identification number to verify any deduction for mortgage interest. You may be subject to a $50.00 penalty if you fail to furnish your tax identification number in regard to the account being established. Please complete and sign the enclosed certification and return the form to us with your signed Escrow Instructions. Thank you for giving us the opportunity to be of service. Sincerely, Shirley hristensen Documen ation Specialist III SC/bem Enclosures rkib CITY OF EDMONDS LAURA M. HALL CIVIC CENTER • EDMONDS, WA 98020 • (206) 775-2525 MAYOR 890-19°1 December 21, 1992 Mr. John Wallace Ogden, Murphy & Wallace 2100 Westlake Center Tower 1601 Fifth Avenue Seattle, WA 98101-1686 Re: Anderson Marine Property Acquisition Dear John: As requested in your letter of December 11, 1992, this is to confirm that the Option Agreement and Supplemental Agreement are maintained in the City's files located in the City Clerk's office. It is further confirmed that closing documents and a copy of recorded Real Estate Purchase Contract and Exhibits are also filed with the City Clerk. The official recorded original has not been received as of this date. Sincerely, •Cc`iG[L'�� R onda J. March Edmonds City Clerk rm Incorporated August 11, 1890 C;cfor (-';floc TnfornafinnnI — HokinAn .lanAn CITY OF EDMONDS CIVIC CENTER • EDMONDS, WA 98020 " (206) 775-2525 K c) 8 g 0_ 1 9 December 18, 1992 Escrow Department Attn: Brenda U.S. Bank P.O. Box 3626 Spokane, WA 99220 Dear Brenda: LAURA M. HALL MAYOR Sorry for the delay in mailing the copy of the Real Estate Contract and Exhibits "A" and "B". The exhibits contain the legal descriptions you need. Also, the actual closing date was December 9, 1992; and for reference I have also provided you with a copy of the Buyer's Closing Statement. Please don't hesitate to call me if you need any further information. Sincerely, R ionda J. March Edmonds City Clerk enclosures Incorporated August 11, 1890 • `ic+or (i+ioc Tn+orna+inn; l — HokinAn .]anan RECEIVED IEN NA U�l'HY LLACEATTORNEYS AT LAW Seattle Office: 2100 Westlake Center Tower 1601 Fifth Avenue Seattle, WA 98101-1686 (206) 447-7000 FAX: (206) 447-0215 December 11, 1992 Mr. Art Housler Ms. Arvilla Ohlde City of Edmonds 250 - 5th Avenue N. Edmonds, WA 98020 Re: Anderson Marine Property Acquisition Dear Art and Arvilla: DEC 1 4 1992 Edmonds City perk John D. Wallace Charles D. DeJong Douglas E.Albright John F. DeVleming Lee Corkrum Peter A. Fraley Wayne D. Tanaka Nancy McKenney-Allo Robert G. Andre Kent C. Meyer Michael G. Wickstead Carol A. Morris Robert A. Kiesz Leslie R. Pesterfield' Steven A. Reisler Debra Rehman W. Scott Snyder Jessica G. Rickard Christopher A. Washington Theresa A.Rozzano James E. Haney Susan N. Slonecker Phillip C. Raymond Gil Sparks Charles D. Zimmerman Carol D. Bernasconi Counsel to the Firm William F. Joyce Stanbery Foster, Jr. Karen Sutherland Ross D. Jacobson David A. Ellenhorn John J. O'Donnell Of Cots noel James A. Murphy Retired Raymond D. Ogden, Jr. 'Admitted to Practice in Oregon only By means of joint letter, I will endeavor to tie up certain loose ends on the Anderson Marine Property Acquisition. Art should have received a refund check in the amount of $476.20 from the Commonwealth Land Title Company, who acted as escrow agent, representing the overpayment of the City due to the delay in closing resulting in the City's obligation on the pro -rats share of taxes being reduced plus a reduction in the City' s share of the escrow fee. As Arvilla and I have discussed in a telephone conversation as of closing, which occurred Wednesday, the City has the responsibilities for insuring the buildings and we will want to notify our carrier that those buildings have been added to the list of property covered. My understanding is that Rhonda has taken a conformed copy of the Real Estate Purchase Contract together with the original of the Warranty Deed and the Quit Claim Deed to the U5 Bank, and has established a collection account for the two sellers (Anderson and Gualtieri) and a true escrow for the two deeds. Those collection account costs are to be charged to Anderson and Gualtieri, respectively. The City will not pay any contract collection charges. Wenatchee Office:I South Chelan Street, P.O. Box 1606, Wenatchee, WA 98807, (509) 662-1954, FAX: (509) 663-1553 Mr. Art Housler December 11, 1992 Page 2 The original of the Real Estate Purchase Contract should be coming back to the City in a few weeks, once the County Auditor has completed the recordation and processing of the same. I am enclosing a complete set of the closing documents which should be maintained in the City■s files. Rhonda, please confirm that you have the option Agreement and Supplemental Agreement in the City files in addition to the documents enclosed. The title insurance company should be issuing the final title policy within the next few days or two weeks. They may be sending that directly to the City ❑r them may send it to my attention. In any event, when that is received, if it is received at the City, please see that I receive a photocopy of it for my file. If I receive the original, I will transmit it t❑ the City for inclusion in the City's records. The Andersons have ninety days from the date of closing, which date was Wednesday, ❑ecember 9, 1992, within which to remove all of their personal property from the premises. Periodic contact should be made or an eye should be kept on the property to see when Anderson removes the materials, boats, etc., particularly since the City may want t❑ make sure that pipes are protected, minimal amount of heat is kept on in the building, etc., to prevent deterioration due to cold or moisture. I would suggest that Anderson be contacted directly to coordinate his closing and moving out with our taking over and closing up the premises to protect them, etc. Very truly yours, OG❑ MURPHY WALLACE n D. Wallace JDW/ls cc: Rhonda March Enclosure JDW35325.1IJ0006.17053 CU COMMONWEAL -, LAND TITLE COMPANY Of Snohomish County 2702 Colby Ave., P.O. Box 51 Everett, Washington 98206 252-1222/742-9600 FAX: 206-339-8366 John Wallace C/0 Ogden, Murphy & Wallace 2100 Westlake Center Tower 1601 Fifth Avenue Seattle, Wa. 98101-1686 Dear John: jOEC 10 1992 Edmonds City Clack December 10, 1992 Re: City of Edmonds Transaction I enclose copies of documents relative to the Anderson/ City of Edmonds transaction for your file. I also wish to inform you that I have delivered a copy of the contract along with the original Statutory Warranty Fulfillment Deed and Quit Claim Deed to the City Clerk. I also remitted to the City of Edmonds, a check in the amount of $476.20 to return to the City the overpayment of funds received by us due to re- pro -ration of taxes, and adjustment of the Escrow Fee. I wish to thank you for the opportunity of serving the City, and I wish you the best for the Holiday Season. scroPnericer CITY OF EDMONDS LAURA M. HALL CIVIC CENTER • EDMONDS, WA 98020 • (206) 775-2525 MAYOR 890_lg°)v December 10, 1992 U.S. Bank Edmonds Branch 140 4th Ave. S. Edmonds, WA 98020 The following described documents are handcarried to you in connection with a Real Estate Purchase Contract Agreement between the City of Edmonds (Purchaser) and Howard B. Anderson, Jr. and James Gualtieri (Sellers). 1. Copy of recorded Real Estate Purchase Contract Agreement (Auditor's File No. 9212090632) 2. Original Statutory Warranty Deed 3. Original Quit Claim Deed Also enclosed is a listing of telephone numbers you may need in this transaction. The addresses of the parties involved are contained the Real Estate Contract. If you need any assistance from me, please contact me at 771-0245. Sincerely, honda J. March Edmonds City Clerk enclosures M Incorporated August 11, 1890 6 &x - 5//o a— ! 1 T .923L 209 U( 3 2 REAL ESTATE PURCHASE CONTRACT AGREEMENT C: (0 [PY THIS AGREEMENT entered into this day between the City of Edmonds, an optional municipal code city incorporated under the laws of the State of Washington hereinafter referred to as "Purchaser" and Howard B. Anderson, Jr., as his separate estate, and James Gualtieri, as his separate estate, hereinafter referred to as "Sellers" for the purposes and considerations as follows: 1. Description of Real pro ert . The Purchaser agrees to purchase and the Sellers agree to sell that certain real property consisting of Parcels A and B and Sellers' reversionary interest in Parcel C all as described in Exhibit A attached hereto and incorporated herein as if set forth in full ("Property"). 2. Purchase Price and Pa ent Terms. The total purchase price to be paid by Purchaser shall be $2,050,000.00. Payment terms shall be as follows: A. The undivided 31/60th interest belonging to Howard B. Anderson, Jr., as his separate estate, is equal to the sum of one million fifty-nine thousand one hundred sixty-six and sixty-seven cents ($1,059,166.67). Said sum shall be paid in the following manner: (1) $500,000.00, in cash shall be paid at the time Of' closing consisting of all principal. Purchaser shall be given credit for the $1,000.00 option money already paid to Howard Anderson. NC `YCiSc �i=,X rnLi 2) �2.0; treasurer's Feo i� .�.. .Q, . The remaining balance of $559,166.67 shall bear interest at a rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: (a) Ten (10) equal annual installments of blended principal and interest with the first payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. B. The undivided 29/60th .interest belonging to James Gualtieri, as his separate property, is equal to nine hundred ninety thousand eight hundred thirty- three dollars and thirty-three cents ($990,833.33) said sum shall be paid in the following manner: JDW/1s JDW34662.1 U0006.17053 12-04-92 - 1 - ORIGINAL (1) No payment at time of closing. (2) The balance of $990,833.33 shall bear interest at the rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: (a) Ten (10) equal annual installments of blended principal and interest with the first interest payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. C. Notwithstanding the foregoing, in the event the purchaser obtains the IAC matching funds that it has applied for, for this purchase, then, in said event, the entire remaining balance of principal and interest on both of the aforestated obligations shall be paid in full. D. Notwithstanding the foregoing, nothing shall prohibit the purchaser from at any time prepaying all or any portion of the principal and interest balance owing on either or both of said obligations, at purchaser's sole discretion. 3. Removal of Sellers Personal. Property. Seller shall have 90 days from the date of closing to remove their business inventory and equipment and all other personal property, excluding fixtures, from the premises. 4. Closing Costs. Purchaser and Seller, Howard B. Anderson, Jr., will each pay one half of the escrow cost. The cost of title insurance (ATLA policy) shall be paid by Howard B. Anderson, Jr. from the proceeds deposited by purchaser in escrow. Title insurance shall be provided by Commonwealth Land Title Company of Snohomish County. Cost of recording of the real estate purchase contract encompassing the terms of this option agreement shall be paid by purchaser. Taxes shall be prorated as of date of closing. 5. Conveyance -Conditions of Title. A. It is the intent of Sellers to sell and Purchaser to purchase fee title free and clear of all encumbrances to Parcels A and B of Exhibit A and all of Sellers' interest in Parcel C of Exhibit A. Sellers' interest in Parcel C consists of reversion rights as contained within the instrument recorded JDW/b - 2 - JDW34662.1 L0006.1705312-04-92 under Snohomish County Auditor's file number 1045210. Said Property is being purchased for a public purpose, it being purchaser's intent to develop and maintain said Property as a public park in perpetuity. The statement of intent shall not create nor be construed as creating any right of reversion or defeasible fee in the sellers or their heirs or successors in interest. B. Title to the Property is to be free and clear of all liens, encumbrances or defects except those hereinafter identified: (1) Numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. 6. Representations and warranties. A. Sellers have no knowledge of or have received no claim or notice from any governmental agency of any violation of laws, ordinances or regulations relating to the Property. B. Sellers have no knowledge of or have received no claim or notice of any government or judicial proceeding (threatened or actual) affecting the Property, except for the letter from the Washington State Department of Transportation of October 27, 1992. C. Sellers warrant that no hazardous substance or dangerous or toxic waste or other material regulated by State or Federal laws or regulations has been lawfully or unlawfully deposited upon the Property, except as allowed pursuant to the Supplemental Agreement dated as of October 2, 1992, between the parties and the November 17, 1992 letter from John D. Wallace, of Ogden Murphy Wallace, to Sellers. D. Sellers warrant that they are the owners of the Property and are authorized to sign this Option and have the legal right to sell the Property under the conditions set forth in this Agreement. 7. Conveyances -Forms of Deed. Sellers shall, as a part of the closing, execute a statutory warranty (fulfillment) deed conveying fee title to Parcels A and B as described in Exhibit A, which deed will be in the form of Exhibit B attached hereto and incorporated in full by this IDwn. - 3 - J DW 34662.1 L10006.17053 12.04-92 reference, and a quit claim (fulfillment) deed conveying the reversionary interest of Sellers in Parcel C as described -in Exhibit A, as identified in that certain document recorded under Snohomish County Auditor's file number 1045210 which deed will be in the form of Exhibit C attached hereto and hereby incorporated in full by this reference. Said deeds shall be placed in true escrow which true escrow and collection of this contract shall be established with US Bank, Edmonds Branch, for the purpose of collection of this contract and upon completion of payment of the obligations by the Purchaser under said contract, instructions to the true escrow agent shall provide for the delivery of the statutory warranty fulfillment deed and quit claim fulfillment deed to the Purchaser for recording. 8. Possession. Sellers shall deliver possession of the Property to Purchaser at the time of closing subject to the provisions of paragraph 3 above. Closing shall be performed by Commonwealth Land Title Company of Snohomish County. 9. Survival and Indemnification. A. Except as specifically provided otherwise in this Agreement, the agreements, covenants, promises, representations and warranties contained in this Agreement or contained in any documents or instruments delivered pursuant to this Agreement shall fully survive closing and delivery of all documents and instruments delivered at or in connection with closing. B. Sellers hereby agree to indemnify and hold Purchaser harmless from and against any and all losses, damages, liabilities, costs and expenses, including reasonable attorney's fees, incurred by Purchaser by reason of or arising out of the duties or liabilities of Sellers which are not specifically or expressly assumed by Purchaser by reason of the incorrectness or breach of any of Sellers' representations and warranties contained in this Agreement. 10. Specific Performance. Either party shall have the right to seek the specific performance of the enforcement of the terms and conditions of this Agreement. 11. Attorneys Fees. If either party hereto is required to retain an attorney to bring suit to enforce any provision of this Agreement, the prevailing party in such suit shall be entitled to reasonable attorney's fees. JDw/Is - 4 - IDW34662.1U0006.17053 12-04-92 12. Notices. All notices which may be or are required or permitted to be given by either party to the other party under this Agreement shall be in writing. All notices by a party to the other party shall be delivered personally or sent by United States mail, postage prepaid, addressed to the other party at the address set forth below, or such may from time to time designate. If any notice is mailed, it shall be conclusively deemed received three (3) days following the date it is deposited in the mail (the date of mailing shall be counted as one of the three days). The postmark affixed shall be conclusive evidence of the date of mailing. Notices to be sent to: Purchaser: Sellers: City of Edmonds 1) Howard V. Anderson, Jr., Laura M. Hall, Mayor as his separate property, 250 5th Avenue N. 7419 - 200th St. S.W. Edmonds, WA 98020 Lynnwood, WA 98036 2) James Gualtieri, as his separate property, 6920 - 174th S.W. Edmonds, WA 98020 AND TO Jeannette A. Cyphers a/k/a/ Jackie Cyphers Attorney -at -Law Suite 304 Northgate Plaza Building 9709 3rd Avenue N.E. Seattle, WA 98115 13. Entire Agreement. This contract constitutes the entire agreement and understanding between Purchaser and Sellers. There are no verbal or other arrangements that modify or affect this contract. No representations or statements, oral or written, not made herein, have induced execution of this contract or have any affect upon its validity. 14. Site Cleanup. The Supplemental Agreement, supplemental to the Option to Purchase Real Estate Agreement was entered into by and between Purchaser and Seller and dated as of October 2, 1992. Said agreement required the removal of certain specifically identified materials or structures and tanks from the subject Property. Sellers have provided certification that all of the thus identified items contained in paragraph I, subparagraphs A through D, of said Supplemental Agreement have been JDW lm - 5 J D W34662.1 U0006.1705312-04-92 fully and completely removed in accordance with all applicable State and Federal regulations. Both parties to this agreement have acknowledged that the roofing material identified in subparagraph D, of paragraph I of the Supplemental Agreement did not have to be removed by Sellers. Sellers shall provide proof of completion of its removal and disposal obligations under paragraph I, subparagraphs A through D, of the Supplemental Agreement prior to closing. DATED as of this day of December, 1992. SELLERS: HOWARD V . ANDERSON,,: JR . , 41 oward V. Anderson,Jr., as his separate estate JAMES GUALTIERI az(ii�bs Gualtieri, as his separate estate STATE OF WASHINGTON SS. COUNTY OF SNOHOMISH PURCHASER: CITY OF EDMONDS Lau M. a 1, Mayor ATTEST/AUTHENTICATED: C ty Clerk, Rhonda J. March On this � day of 04 .. , 1992, before me personally appeared Howard Anderson, Jr., as his separate estate, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first above written. 7 .�'� �OxN R S;.`•%. � ►ss�°4 ARY PUBLIC ..•'Q y Appointment Expires: Z11 4S. '+'+•ASI�ING�Y;••- JDW/h - 6 - J D W34662.1 U0006.1705312-04-92 STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH On this day of rl , 1992, before me personally appeared James Gualtieri, as his separate estate, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF-""'rr Avg hereto set my hand and affixed by official seal the dag'`aft., fir. rst above written. .9�'• aUQ� �. N£)TARY PUBLI �y Appointment Expires STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH On this r'I - day of o.,� , 1992, before me personally appeared Mayor Laura Hall, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF,oil,,ave hereto set my hand and affixed by official seal the da`. � FVgl#,r'first above written. � tj,►AISsI�y lf1 col Q `ro n'07aR1, H _ CD :�* • N ARY PUBLI ay Appointment Expires: G ti STATE OF WASHINGTON �+,,*g8 Htt.1G� �. COUNTY OF SNOHOMISH ) On this q day of o-- 1992, before me personally appeared Rhonda J. March, City Clerk, to me known to be the individual described in and who executed the foregoing Real Estate Purchase Contract Agreement and acknowledged that he signed the same as his free and voluntary at and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first a ve written. .`I<<i+rr++i,rrr ��TARy m .7 Tit w JDW34662.11J0006.17053 12-W-92 r111y + 111 r11 it' NO Y PUBLIC Appointment Expires: / yJ M E M ORANDUM TO: File FROM: Rhonda March, City ler RE: LEGAL OPINION BY LEE VOORHEES DATE: December 10, 1992 On this date, Kath Swafford delivered to me the original legal opinion which had been received by Art Housler via overnight delivery. I telephoned John Wallace, City Attorney, to advise me what to do with it. He indicated to keep it in my official file concerning this property acquisition. The bank did not need to receive it at this time. rm FOSTER PEPPER & SHEFELMAN A LAW PARTNERSHIP INCLUDING PROFESSIONAL SERVICE CORPORATIONS 1111 THIRD AVENUE SUITE 3400 BELLEVUE. WASHINGTON OFFICE SEATTLE, WASHINGTON 98101 (206) 451-0500 (206) 447-4400 TELECOPIER: (206) 455-5467 TELECOPIER: (206) 447-9700 - (206) 447-9283 TELEX: (206) 32-8024 ANSBK: FOSTER LAW SEA December 9, 1992 City of Edmonds, Washington PORTLAND, OREGON OFFICE (503) 221-0607 TELECOPIER: (503) 221-1510 Re: City of Edmonds, Washington Real Estate Purchase Contract Agreement Ladies and Gentlemen: We have examined a certified transcript of the proceedings had by the City of Edmonds, Washington (the "City"), in the matter of the authorization and execution of the Real Estate Purchase Contract Agreement (the "Contract") by and between the City and Howard B. Anderson, Jr., ("Anderson") and James Gualtieri ("Gualtieri") (collectively, the "Sellers"), dated December 9, 1992. The Contract has been executed pursuant to the laws of the State of Washington for the purpose of acquiring certain real property for open space and park purposes, all as provided in Resolution No. 755 of the City, adopted December 8, 1992. The Contract is fully registered. Under the terms of the Contract, the Contract is in the total principal amount of $2,050,000 and is payable as follows. A. The undivided 31/60th interest belonging to Anderson is equal to the sum of one million fifty-nine thousand one hundred sixty-six and sixty-seven cents ($1,059,166.67). Said sum shall be paid in the following manner: (1) $500,000.00, in cash shall be paid at the time of closing consisting of all principal. Purchaser shall be given credit for the $1,000.00 0062677.WP City of Edmonds, Washington December 9, 1992 Page 2 option money already paid to Anderson. (2) The remaining balance of $559,166.67 shall bear interest at a rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: Ten (10) equal annual installments of blended principal and interest with the first payment ❑f principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. B. The undivided 29/60th interest belonging to Gualtieri is equal to nine hundred ninety thousand eight hundred thirty-three dollars and thirty-three cents ($990,833.33) said sum shall be paid in the following manner: (1) No payment at time of closing. (2) The balance of $990,833.33 shall bear interest at the rate of 6.25% pe annum on the declining principal balance, with said balance to be paid in the following manner: Ten (10) equal annual installments of blended principal and interest with the first interest payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. C. Notwithstanding the foregoing, in the event the purchaser ❑btains the IAC matching funds that it has applied for, for this purchase, then, in said event, the entire remaining 0062677. WP City of Edmonds, Washington December 9, 1992 Page 3 balance of principal and interest on both of the aforestated obligations shall be paid in full. D. Notwithstanding the foregoing, nothing shall prohibit the purchaser from at any time prepaying all or any portion of the principal and interest balance owing on either or both of said obligations, at purchaser's sole discretion. The Contract is a limited tax general obligation of the City. The full faith, credit and resources of the City are pledged irrevocably for the payment of principal and interest on the Contract. The City has pledged to budget and appropriate from annual regular property taxes and other revenues available t❑ the City without a vote of the electors of the City amounts sufficient, together with money legally available therefor, to pay the principal of and interest on the Contract as the same come due. Reference is made to the Contract for a description of the agreements, conditions, covenants and terms securing the parties to the Contract, for the nature, extent and manner of enforcement of such agreements, conditions, covenants and terms, for the rights and remedies ❑f the parties to the Contract with respect thereto and for other agreements, conditions, covenants and terms upon which the Contract has bee executed and delivered. Reference is also made to the Contract for the definitions of terms capitalized and not otherwise defined herein. As of the date of initial execution and delivery of the Contract to the sellers, it is our opinion that (1) the City is a duly ❑rganized and legally existing municipal corporation under the laws of the State of Washington; (2) the Contract has been duly authorized, executed and delivered by the City in full compliance with the provisions of the Constitution and laws of the State of Washington and the resolutions of the City relating thereto; (3) the Contract constitutes a valid general obligation of the City payable solely out of taxes and other money legally available to the City therefor without a vote of the electors within the City, except only to the extent that enforcement of payment may be limited by bankruptcy, insolvency or other laws affecting creditors' rights; and (4) assuming compliance by the City with applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code"), including arbitrage requirements and requirements for the continued governmental use of the property 0062677. WP City of Edmonds, Washington December 9, 1992 Page 4 being purchased pursuant to the Contract, amounts that are properly treated for federal income tax purposes as interest paid on the Contract are excluded from gross income for federal income purposes under existing federal law, including the Code, and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals; however, while interest on the Contract is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Contract received by corporations will be taken into account in the computation of adjusted net book income and adjusted current earnings for purposes of calculating the alternative minimum tax applicable to corporations, interest on the Contract received by certain corporations may be subject to an environmental tax, interest on the Contract received by certain S corporations may be subject to tax, and interest on the Contract received by foreign corporations with United State branches may be subject to a foreign branch profits tax. We express no opinion regarding the extent to which amounts payable under the Contract are properly treated as principal or as interest for federal income tax purposes or regarding any other federal tax consequences of receipt of interest on the Contract. Very truly yours, FOSTER PEPPED & SHEFELMAN Lee oorhees 0062677. WP form 80 3 8-G Information Return for Tax -Exempt Governmental Obligations (Rev. October 1989) ► Under Section 149(e) OMB No. 1545-0720 Department of the Treasury ► See separate Instructions Expires 5-31-92 Internal Revenue Service (Use Form 8038-GC if the issue price is under $100,000) 111111M6J Reoortln¢ Authorltv Check box if Amended Return ► I 1 Issuer's name 2 Issuer's employer identification number City of Edmonds 91-6001244 8 Number and street 4 Report number 505 Bell Street g1992 — 5 City or town, state, and ZIP code 6 Date of issue Edmnds, Washington 98020 7 Name of issue 8 CUStP Number Real Estate Contract (Open Space Land) N/A Type of Issue (Check t)ox(es2 that applies and enter the Issue Price) 9 Check box if obligations are tax or other revenue anticipation bonds ► ❑ Issue price 10 Check box if obligations are in the form of a lease or installment sale ► El 11 ❑ Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ❑ Health and hospital . . . . . . . . . . . . . . . . . . . . . . . . . . 13 ❑ Transportation . . . . . . . . . . 14 ❑ Public safety . . . . . . . . . . . . . . . . . . . . . . ... . . . . . 15 ❑ Environment (including sewage bonds) . . . . . . . . . . . . . . . . . . . . 16 ❑ Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 ❑ Utilities . . . . . . . . . . . . . . . . 18 ❑ Other. Describe (see Instructions) ► purchase of open space land 2,050,000 Description of Oblieations Maturity date Stated redemption price at maturity Weighted __ ave%gematurAy 19 Final maturity %11II�%/I%I/I/1%1/111%11I%I.:rI%111%11111I�i:' /y�I111�1�11%I 6 %111I111/11%II/1111/III/11�111IIII�'/I/Iy1I11II111� C.. Uses of Original Proceeds of Bond Issues(including underwriters' discount N/A 21 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . . . . . 21 22 Issue price of entire issue (enter line 20c) . . . . . . . . . . . . . . . . . 22 23 Proceeds used for bond issuance costs (including underwriters' discount) . . 23 24 Proceeds used for credit enhancement . , . . . . . . . . . . . 24 25 Proceeds allocated to reasonably required reserve or replacement fund . . 25 26 Proceeds used to refund prior issues . . . . . . . . . . . . . . 26 27 Total (add lines 23, 24, 25, and 26) . . . . . . . . . . . . . . . . . . . . . . . 27 28 Nonrefundin roceeds of the issue subtract line 27 from line 22 and enter amount here 28 Descri Lion of Refunded Bonds (complete this part only for refunding bonds 29 Enter the remaining weighted average maturity of the bonds to be refunded . . . . . . . . . ► years 30 Enter the last date on which the refunded bonds will be called . . . . . . . . . . . . . ► 31 Enter the dates the refunded bonds were issued ■ Miscellaneous 32 Enter the amount of the state volume cap allocated to the issue . . . . . . . . . . . . . ► —0- 33 Enter the amount of the bonds designated by the issuer under section 265(bX3XBXiXIII) (small issuer exception) . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► $2, 050, 000 34 Pooled financings: s Enter the amount of the proceeds of this issue that are to be used to make loans to other govemrnental units So- b Check box if this issue is a loan made from the proceeds of another tax-exempt issue ► ❑ and enter the name of the issuer ► and the date of the issue ► Linder penatt,es of perjury, r declare that i have examined this return and accompanying schedules and statements, and to the best of my knowledge ano oeltel. they are true, correct. and complete. Please Sign Here ` rgnature d, For Paperwork Reductic Notice, see page 1 of the Instructions. Arthur Housler Finance Director Type or print nano and title Form 8038-G (Rev 10-89) *U.S. aovge t rrietie6 afrl— 1989-262-151100019 A. I HOUSLot FOSTER PEPPER & SHEFELMAN A LAW PARTNERSHIP INCLUDING PROFESSIONAL SERVICE CORPORATIONS BELLEVUE. WASHINGTON OFFICE (206) 451-0500 TELECOPIER: (206) 455-5487 VIA (]VERNIGHT DELIVERY 1111 THIRD AVENUE SUITE 3400 SEATTLE. WASHINGTON 98101 (206) 447-4400 TELECOPIER: (206) 447-9700 .(206) 447-9283 TELEX: (206) 32-8024 ANSBK: FOSTER LAW SEA December 9, 1992 Mr. Arthur J. Housler Finance Director City of Edmonds 250 - 5th Avenue N. Edmonds, Washington 98020 Re: City of Edmonds, Washington, Real Estate Purchase Contract Agreement Dear Art: DEC 10 1992 Enclosed is our approving legal opinion with respect to the above -referenced contract and a copy of my letter transmitting it via facsimile to Commonwealth Title Company. My letter to you of December 81 1992, indicated that such opinion would be forthcoming after closing and upon our receipt of the four transcript items I provided, together with a certified copy of the resolution. No one had mentioned that the legal opinion would be required at the time of closing and I understand from the title company that such condition was imposed by counsel for one of the sellers of her own initiative. Be that as it may, I have the Signature Identification and No Litigation Certificate and the Tax Exemption and Nonarbitrage Certificate signed at the meeting last night. I still need and wi1l.laook forward to receiving the Assessed Valuation. Certificate,✓ the7IRS Form 8038-G, the certified copy of Resolution No. 755'�and also a certified copy of the executed and recorded Real Estate - Purchase Contract Agreement. A photocopy of the latter would suffice with a certificate signed by Rhonda March to the effect that it is a true and correct copy of the original on file in the records of the City. Mr. Arthur J. Housler December 9, 1992 Page 2 The foregoing documentation will be used not only as the technical basis for our opinion but also for inclusion in a complete transcript of the proceedings which we will furnish to the City in due course. Should there be questions in the meantime, or if I can be of further assistance, please do not hesitate to let me know. Yours sincerely, FOSTER P PPER & SHEFELMAN Lee Voorhees Enclosure "UU UU0 u6UU I it Jr 0 FOSTER PEPPER a SHEFELMAN A LAW PAntNF.RSHIP IMU1 ,ICI1Np F1ROM 61:SIONAL 9rE a-cr 40praA Al oNS 1111 rHIRO AVFNIIF 8ELLF-VIIt-, WASSHINGTON VII IN;k SUITE 3400 I20G 1 451 •QS()() SEAT I L_ -.- WASHINGTON 98101 I LLECOPIFR (2(Ibl 447.44nQ (2Utl14D5 54R7 TEI.ECO7'IER: (2061 447-9700 1 (206) 447.9283 TELEX: (20R1 32-8024 ANSRk1 FOSTER I,AW 5EA December 9, 1992 City of Edmonds, Washington Re: City of Edmonds, Washington Real Estate Purchase Contract Agreement Ladies and Gentlemen: "ORTI AND. L)HE<-.oN OF MICE I*0:11 221 CIA07 I LLLCOPIER: 1`.103) ':!I. Iwo We have examined a certified transcript of the proceedings had by the City of Edmonds, Washington"City"), in the matter of the authorization and executionOf theReal Estate atteras Contract Agreement (the 11Contract+� e Howard B. Anderson 7 by and between the City and ("Gualtieri" Jr' ("Anderson-) and James Gualtieri 1992. } (Collectively, the "Sellers"), dated December 9, The Contract has been executed pursuant to the laws of the State of Washington for the purpose of a property For open space ,and ark squiring certain real Resolution No. 755 of the Cit p Purposes' all , provided in Y. adopted December 8, 1992. The Contract is fully registered. Contract, the Contract is in the totalndee es of the $2,050,000 and is payable as follows, principal amount of A. The undivided 31J60th interest belonging to Anderson is equal to the sum of one million fifty-nine thousand one hundred sixt Six and sixty-seven cents ($1,059,166-67). S aid shall be paid in the following manner; sum (Z) $500,000.001 in cash shall be paid at the time of closing clarisisting of all Principal. Purchaser shall be given credit for the $1,000.00 M62sn.w1, -UU u6j GJGG'- * ti City Of Edmonds, Dece Washington December 9 ► 1992 Pagr C. 0062677.Wr option money already paid to Anderson. (2) The remaining balance of $ shall bear interest at a59,166.67 6.25% per annum on the d rate , principal balance with said balance to be paid in the fallowing manner! Ten (10) equal annual installments of blended principal and i With the first nterest and interest payment of principal due One year after the date of closing Year there and each succeeding after until the entire balance of principal and interest is Paid in full. B. The undivided 291 Gualtieri is 6th interest belonging. to thousand ei equal to nine hundred ninety and thirty-three ht hundred thirty-three Y shall be cents ($9sc],833.33 dollars paid in the followin ) said sum 9 manner; (1) No payment at time of closing. (2) The balance of $994.833.33 shall bear interest at the rate of 6.25$ Pe annum on the declining balance, with said 9 principal balance Paid in the followin m to be manner: Ten (10) equal annual of blended installments with the Principal and interest first interest payment of principal and interest due one after the date of closin Year succeeding year thereafter and each entire balance of until the interest is paid in Principal and full. Notwithstanding the f oregoin the purchaser obtains the IAc, t the event that it has applied for matching funds then, in said event , for this purchase, the entire remaining _ .. . . . _ .)=ti L � , c ._.uu vvU UWuu7+ ul u City of Edmonds, Washington December 9, 1992 Page 3 balance of principal and interest on both of the aforestated obligations shall be paid in full. D. Notwithstanding the foregoing, nothing shall Prohibit the purchaser Prepaying all or any portifrom at any time on of the principal and interest balance owing on either or both of said obligations, at purchaser's sole discretion, The Contract is a limited tax general obligation of the City. The full faith, credit and resources of the City are pledged irrevocably for the payment of principal and interest on the Contract. The City has pledged to budget and appropriate from annual regular property taxes and other revenues available to the City without a vote of the electors of the City amounts sufficient, together with money legally available therefor, to pay the Principal of and interest on the Contract as the same come due. Reference is made to the Contract for a description of the agreements, conditions, covenants and terms securing the parties to the contract, for the nature, extent and manner of enforcement of such agreements, conditions, covenants and teams, for the rights and remedies of the parties to the Contract with respect thereto and for other agreements, conditions, covenants and terms upon which the Contract has bee executed and delivered_ Reference is also made to the Contract fear the definitions of terms capitalized and not otherwise defined herein. As of the date of initial execution and delivery of the Contract to the Sellers, it is our opinion that (1) the City is a duly organized and legally existing municipal corporation under the laws of the state of Washington; (2) the Contract has been duly authorized, executed and delivered by the City in full compliance with the provisions of the Constitution and laws of the State of Washington and the resolutions of the City relating thereto; (3) the Contract constitutes a valid general obligation of the City Payable solely out of taxes and other money legally available to the City therefor without a vote of the electors within the City, except only to the extent that enforcement of payment may be limited by bankruptcy, insolvency or other laws affecting creditors' rights; and (4) assuming compliance by the City with applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code"), including arbitrage requirements and requirements for the continued governmental use of the property 0062677.WP City of Edmonds, Washington December 9, 1992 Page 4 being purchased pursuant to the Contract, amounts that are properly treated for federal income tax purposes as interest paid an the Contract are excluded from gross income for federal income purposes under existing federal law, including the Code, and is not an item Of tax preference for purposes of the alternative minimum tax applicable to individuals; however, while interest on the Contract is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Contract received by corporations will be taken into account in the computation of adjusted net book income earnings and adjusted Current for purposes of calculating the alternative minimum tax applicable to corporations, interest on the contract received by certain corporations may be interest on the Contract receivsubject to an environmental tax, ad by certain S corporations may be subject to tax, and interest on -the Contract received by foreign corporations with United State branches may be subject to a foreign branch profits tax. we express no opinion regarding the extent to which amounts payable under the Contract are properly treated as principal or as interest for federal income tax purposes or regarding any other federal tax consequences of receipt of interest on the Contract, Very truly yours, FOSTER PEPPER & SHEFELMAN L e or--hees W626n_wp DEN ULU�PHY LAC�,ATTORNEYS AT LAW DATE: December 9, 1992 TO: Rhonda March City Clerk City of Edmonds DEC 1 0 1992 'Edmonds City Clerk MEMORANDUM OF TRANSMITTAL RE: Property Site Assessment - Anderson Marine ENCLOSED: Please distribute the enclosed letter to the Mayor, Council Members, and Arvilla Ohlde. Thank you for your assistance. BY OGDEN MURPHY WALLACE Lauree Seko Secretary to John D. Wallace ❑ Seattle Office: 2100 Westlake Center Tower, 1601 Fifth Avenue, Seattle, WA 98101.1686, (206) 447-7000, FAX (206) 447-0215 0 Wenatchee Office: 1 South Chelan Street, P.O. Box 1606, Wenatchee, WA 98807, (509) 662-1954, FAX (509) 663-1553 J1=M til':t'11 Bellevue PTI ENVIRONMENTAL SERVICES 15375 JC 3r7r', Place . ,� nrF Mgr December 9, 1992 lam- J - y 2 :12:_1d&tj ■ c-O CVL,Q. 041,s it ,On'J90U , John Wallace Ogden Murphy Wallace 2100 Westlake Center Tower 1601 F!fu'l iliiicnue Seattle, WA 98101-1686 Subject: Property Site Assessment Anderson ?Marine, Fzdmonds, WA PTI Contract Number C4.04-0201 Completion of recummended remedial actions Dear John: 0 E C " 0 19,92 Oman "'I i;'i �-'f m Per your request, I visited the Anderson Marine site this morning and confirmed that the following work had been completed: ■ Spray -on acoustical ceiling texture had been removed from the showroom building ■ Drywall materials (including tape and mud) had been removed from the south wall of the new warehouseinorth wall of the old warehouse ■ Underground storage tanks had been removed (both gasoline and heating fuel tanks) ■ Above ground used oil storage tank had been removed - Storm drain catch basins located in front of the shop door and the drain pipe extending to the northwest corner of the showroom building had been excavated and removed ■ Storm drain catch basins located between the warehouses and the office end of the showroom had been excavated and removed ■ Potentially contaminated soils had heen removed from the vicinity of the catch basins, used oil storage tank, storm drain outfalls, and from beneath the gasoline engine that operated the marine railway. I have not received or reviewed the consultant's report for the carrlc removal and soil clean up. PTI did send a Washington State certified underground storage tank investigator to observe a portiun of the tank removal work back in October. PT.T'c representative observed that the contractor hed the tanks ad remcry and was proceeding with the sampling in accordance with accepted practice. JL�I D( •L 11 De I.VUt! LG— 0-0L •lc GOB►1 • 1-11 CAS IMQA. 'NVLJ.— ).UU iil UOZO;T J! 3 John Wallace December 9, 1992 Page two Please feel free to call me if you have any questions regarding today's site visit or any other aspect of the project. Sincerely, Greg 6awden Environmental Scientist t .. ... O O>< .. __ ..... .. _ ._ ° m 37 Z O m 1DD dD b m O K ( m h Eg ,� ,9 o ° fD H 1�4 Cp 0 z z O O ° 'D z .b m .. C ] N ►iy O .. ... (,� Cr] H fD �i �" 1 ° £ c CZ C C 1 f ` W a "'_ r'' A I � aoil z (A � o Nz� o0 aZ 0 C � OTsrn z I�Ds� P. �� 00 m 0 � F. v u � • m H 3 O O ti d � a Z ul r, No K o . v i O £ o -%3 \ H N N z 0 -p O3 CDOo O tl) r71 j� O a3 )E m O ■ )E )E m W ru 7E < _ i� co A � z --Z c E m OC 7E jDTO z 7E o D - i� corm D 7E O m r. O )E )E 7E 7E 7E D $ )E 7E 7E 7E O 7E C >E Z rt� C� m 7E )E n )E 7E N t >E N C 7E 7E O 7E 7 � z )E 7E D O O )E o )E )E O )E )E 7E co m / W uW 1/A�r� u u r W M. Selier(s): Buyer(s): Property: Pro -rate Date-. CDi�11�4�t4WEAUH E [Of LANE) TITL L:allsh COoru n yNY BuY er's Closing Statement id Gualtieri Anderson a� City of Edmonds Anderson Marina 2669 1992 Our File No.� December 9, Order N39389 Debit Item 2,050,000.00 Sale Price Money to Close Earnest Money Paid See Note 1) + tax Pro -rate Fire lnsurance (� oho) $500.00 Legal/Escrow Recording Fee Contract/Mortgage to Seller Assumption of Mortgage Balance Contract Balance ee Reserve Fund with Mortgag Pro Rate Mortgageinterest Pro Rate Taxes Pro Rate Rental Additional Fire Insurance Title Insurance Tax Registration Unpaid balance to Anderson Unpaid balance to Gualtieri $ 2,051,504.24 Reconciling Balance Credit 500 504.24 559 166.67 990 , 833'l 3 $ 2�04.24 FOSTER PEPPER & SHEFELMAN A LAW PARTNERSHIP INCLUDING PROFESSIONAL SERVICE CORPORATIONS BELLEVUE- WASHINGTON OFFICE (206) 451.0500 TELECOPIER (206) 455-5487 HAND DELIVERED Mr. Arthur J. Housler Finance Director City of Edmonds 250 - 5th Avenue N. Edmonds, WA 98020 1111 THIRD AVENUE SUITE 3400 SEATTLE. WASHINGTON 98101 (206) 447-4400 TELECOPIER: (206) 447-9700 • (206) 447-9283 TELEX: (206) 32-8024 ANSBK: FOSTER LAW SEA December 8, 1992 PORTLAND. OREGON OFFICE (503) 221-0607 TELECOPIER (503) 221-I510 Re: City of Edmonds, Washington, Real Estate Purchase Contract Agreement Dear Art: Enclosed is the original resolution authorizing execution and delivery of the above -referenced contract which I recommend be approved by the Council this evening. It is similar in form to the draft distributed under my letter of December 7, 1992, except that a section has been inserted designating the contract as a qualified tax-exempt obligation and the actual form of contract furnished by John Wallace has been attached as Exhibit A. Also enclosed are certain closing papers to be executed by the appropriate City officials in anticipation of a closing tomorrow morning when John Wallace has indicated he expects to close in the Mayor's office at 9:00 a.m. The closing papers provided are as follows: (1) Signature Notification and Litigation Certificate. The Mayor and Xjty Clerk should sign all copies of the certificate and have the certificate attached completed by a local bank official who is familiar with their signatures or by John Wallace who has done so in similar transactions. (2) Tax Exemption and Nonarbitrage Certificate. Mayor Hall should sign the copies of this certificate relating to the purpose of the contract and the manner in which it will be paid. "2841.WP Mr. Arthur J. Housler December 8, 1992 Page 2 (3) Assessed Valuation Certificate. This should be completed and signed by you setting forth the assessed valuation of the City and outstanding obligations as a basis for determining debt capacity. (4) IRS Form 8038-G. Please sign this form which is a requirement for all tax-exempt obligations. Following closing, we will file the form with the Internal Revenue Service on behalf of the City. The dates on the foregoing documents have been left blank for insertion at the actual time of closing, whether tomorrow or on a future day if there is a delay. When all copies of the foregoing have been signed and returned to us together with a certified copy of the resolution we will furnish our approving legal opinion in substantially the form circulated under my letter of December 7. We also will want to have a certified excerpt from Minutes of the Council meeting reflecting action on the Resolution when such Minutes have been approved and become available. Should there be questions, or if I can assist in any way, please do not hesitate to call upon me. Yours sincerely, FOSTER PEPPER & SHEFELMAN Le /Koorhees — Enclosures cc: Rhonda March JohnWallace Scott Snyder 1 006z941.W FOR DISTRIBUTION TO: Mayor Hall Councilmembers Scott Snyder, City Attorney Art Housler, Adm. Serv. Dir. RE: ITEM "I" The following items have been received by facsimile for the Council's information and action on December 8, 1992: 1. Transmittal letter from Lee Voorhees of Foster, Pepper & Shefelman 2. Proposed Resolution (yellow) 3. Proposed Real Estate Purchase Contract Agreement (referred to as Exhibit "A" in Resolution (blue) 4. Draft Legal Opinion rm/12/8/92 12-07-92 06,40M FROM F P & S SEATTLE TO 233#40232*000147710 P003i007 CIL"L1 C:VUC'. WAGppNGTON OFFICE IPC4i e71'OAOP TKLEC= rIGA: (.^. G5 45`.1.5407 VITA FACSIMIL FOSTER PEPPER & S,HEFELMAN A LAW FARTNERSHIF INCLUDING PROFE3 SIGNAL SENVICE CUw'ONAuvm-.; !I I! THIRD AVENUE SUITE 3400 5EATTLE. WASNINGTON 98101 120W 447.4400 1206) Ad7.0700 . 12031 AA7.93Q2 TELEX: (206) 32-8024 ANS9k: FoSTO LAW GEA December 7, 1992 Mr. Arthur J. Housler Finance Director City of Edmonds 250 - 5th Avenue N. Edmonds, Washington 98020 I'UI�71 ANLI.JHL1i01Y UFFICE tbOD 221.0697 I LL Li:UNIGN ILGSI R�I•oG 1p Re: city of Edmonds, Washington, meal Estate Purchase Contract Agreement Dear Art: Enclosed is the form of resolution that we recommend be considered and acted upon by thi> City Council at its regular meeting tomorrow evening authorizing *x*cution and delivary of the above -referenced contract, Tn the avant of favorable Council action, we will be prepared to furnish onr approving opinion in a farm that has been reviewed by John Wallace and raubmitted to attornoys for the zzllers for their approval on December 9 or as aoon thereafter as John wishas to proamad_ Ire that regard, T will brincj with me to the Council meeting a numb -or of other dacz mants rGLquired as a baeia for our opinion including a Farm 8038, a Tax Exemption and Nanarbitrage Certificate and a Signature ldentifioation and No--Llitigaticn Certificate which can be cigned in anticipation of the closing. M2685,WP 12-07-92 06;40M FROM F P & S SEATTiE TO 9.34402J1N00147710 P004/00 Mr. Arthur 3. Housler December 7, 1992 Page 2 Should there be questions in the meantime, or of I can assist in any way, please let mg know. I look forWard to seeing you at the meeting. Yours sincerely, FOS EPPER & 8REFEL AN I Lei:. Vonxhces Enclosure ac3 Rhonda March (W/enc. ) Join Wallace (w/enc.) Scott Snyder (w/enc.) OOb2695.WP i2-07-92 06,44PM FROM F P & NEA"TTE TO 2?3#40232�00019#7710 P000i007 REBCL[ TZON NO. A RESOLUTION Or THE CITY COUNCIL OF THE CITY or EDMONDS, WASHINGTON, APPROVTNG AND AUTHORIZING THE EXECVTI41k AND DELIVERY OF A REAL ESTATE PURCHASE CONTRACT AGREE14ENT TO ACQUrIRZ PROPERTY FOR OPEN SPACE. WHEREAS, the City has entered into an Option to Purohase Real Estate Agreenent authorized by the Council on ,duly 7, 1992, ana a. Supplemental Agreement autnorizaa by the Council on October 6, 1992, for the purchase of certain read. property (the "Property") to be acquired for open space purposes of the City; and WHEREAS, the City now 'dishes to close such purchase by entering into a Real Estate Purchase Contract Agreement. (the "Contract") in the form prepared by the City attorney, attached as Exhibit A and mane a part hereof, more particularly describing the Property and the terms and conditions -of the purchase, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY 01' EL7MONDS, WASHiNCTON, HEREBY RESOL17ES AS FOLLOWS Section 1. The City Council deems it to be in the best interest of the City to purchase tote Property on the terms and conditions set forth in the Contract which is E�-thlbit A hereto, and the Mayor and City Clerk are authorized and directed to axncute and deliver the Contract, subject to such changes as may be recommended by the city attorney and Bond Counsel to the City, together with "2F[5,01 12-07-92 06,40M FROM F P & S SEATTLE TO 230#40202�00014 7710 P006 00 I all other closing documents as are reasonable and necessary to carry out the purpose of this resolution, it is the intention of the Council that the principal amount of the Contract should be included, insofar as possible, in tha debt capacity allowance of the City allocated to open space and park facilities_ Section 2 e The full faith., credit and resources of the City arm plaaagmd irravnoably for that paymont of thaa principal of and interest on the Contract. The City plaaa gQz to budget and appropriate from annual regular property t&xoa and ether raavaanuaas available to the City 'without a vote of the oleat.ore of the City amounts rufficianb, togethor with other money legally available tharsfor, to pay the pr'inoi,pal of and intarQQt on the Contract ag tho same shall come due. Section 3. The City Finance Director is appointed registrar for the Contract and to fulfill the duties of registrar set forth in Ordinance No. 2451 of the City. The Contract may not be assigned or transferred except on the books of the registrar. Jrrtior 4. The city covenants that it will take all actions necessary to prevent amounts treated for federal in rams tax purposes as interest paid under contract from being included in grass income for federal income tax purposes, and it will neither taxe any action nor make or permit any use or the Property or runds of the City treated as proceeds of the Contract at any time during the term of Contract that would cause amounts treated for federal income tax purposes as interest on the contract to be included in gross income for federal income tax purposes. Tne City certi�ries M6205.Qd 2 12-07-92 06:44PM FROM F P & S SEATTiE TO 23N40232Q00147710 P007;'007 that it has not been notified of any listing or proponed listing by the internal Revenue Service to the effect that it is any issuer of obligations whose arbitrage. Certifications may not. be relied uPon. sectic. This resolution shall take effect i-xinedintely upon passage. RESOLVED this ATTEST / AX1`THENTI CATE,D : C ty ClerX, Rhonda J. March FILED WITH THE CLERIC: PASSED BY THE CITY COUNCIL: RESOLUTION NO. day of December, 1992. APPROVFn : Mayor, Laura M. Hal 0062665.01 3 SENT BY;OGDEN MURPHY WALLACE ;12- 7-82 ; 2;53PN ; 2064470215-; 2067710221;9 2 BBAL IIgTATJI PURCI 3 CGNMCT AMIMUM THXG AOREEKENT entered into this day between the City of Edmonds, an optional m►anicipal, code city incorporated under the laws of the State of Washington hereinafter referred to as "Purchaser" and Howard B. Anderson, Jr., as his saparata estate, and dames Gualtieri, as his separate astats, harainafter referred to as "Sellers" for tha purposes and considerations as follows! 1, Dgsarintion of 2aal Prgpyrty. The Purchaser &groom to purchase and than Sellers agree to amll that certain real property cvnafstsng of Parcels A and S and Sellers# reversionary interest in Parcel C all as described in Exhibit A attaohad hereto and incorporated heroin as if set forth in full ("Property"), 2. Purchase, Pr,jcgcl.. a=a txyTTarms. The total purchase price to be paid by Purchaser shall be 62,050000.00. Payment terms shall be as follows: A. The undivided 31/60th inter6st belonging to Howard S. Andearaen, Tr. , as his saparata &Atata, ias axe UAI to the sum of one million fifty-nine thousand one nmdrad sixty-six and sixty -maven cants Said sum shall be paid in the following manner: (1) 15000000.00, in each shall be paid at the time of closing consisting of all principal. Purchaser shall be given credit for the $1, 00d.00 option money already paid to Howard Anderson. (2) The remaining balance of $535,i66.67 shall bear interest at a rate of 6.25% per annum on the declining principal balance, with said balance to ba paid in tha following manner: (a) Ten. (10) equal annual installments of blended principal and intaresst with thia first payment of principal and interest duo one year after the data of closing and each succeeding yaar thereafter until the entire ba-lince. of �*nr4 intaresst is paid in full. S . The undivided Gualtiesri, as nine hundred three dollars said sum sha►l Z AA DD1Y316WLAW.17053124" 29/60th interest belonging to James ---w---«� aromerty, is equal to hundred thirty- m ($990,833.33) Wing mannear $ ZF-X H fs / % 'Ai+ SENT BY:OGDEN MURPHY WALLACE ;12- 7-62 ; 2:54PM ; 2064470215-� 2067710221;# 8 (1) No payment at time of closing. (2) Tha balance or $990,833.33 shall beat interest at the rate of 6.25% per annum on the declining principal balance, with said balance to ne paid in the following manner: (a) Tan (10) equal annual installments of blendad pprincipal and interest With the first interast payment of principal and interest due one Year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. C. Notwithstanding the foregoing, in tho event the purchaser obtains the lac matching funds that it has applied for, for this purchases, then, in said event, the entire remaining balance of principal and interest on both of the aforestatetd obligations shall be paid in Pull. D. Notwithstanding the f"oragoing, nothing shall prohibit the purchaaer from at any time prepaying all or any portion of the principal and interest balance owing an hither or both of said obligations, at purchaser's sole discretion. 3. &�=Yal_ of Se1.1ex - Peragnal Pry srty. seller shall have 90 days from the date of closing to remove their business inventory and equipment and all other personal property, excluding fixtures, from the pramises. 4. J.0 na crate. Purataser and "liar, Howard R. Mdarson, ar., will each pay one half of the escrow cost. The cast of title insurance (ATU policy) ahall be paid by Howard B. Anderson, Jr. from the proceeds deposited by purchaser in escrow. Title insuranca shall be provided by Commonwealth Lund Title Company of Snohomish County. Cost of recording of the real estate purchase contract encompassing the terms of this option agreement shall be paid by purchaser. Tax** shall be prorated as of date of closing, 5. ConveyancemOnditions of Title. A. it is the intuit of Ballots to sell and Purchaser to purchase foe title free and clear of all encumbrances to Parcols A and B of Pshibit A and all of Sellers' interest in Parcel C of Zchibit A. Sellers' interest in Parcel C consists of reversion rights as contained within the instrument recorded Mrs - 2 - nM3dft.1LMW.17WJ i OWR SENT 5Y:0QDEN MURPHY WALLACE i12- 7-92 i 2:54PM ; 2004470215" 2007710221i# 4 under Snchcuish County Auditors file number 1.04 s210. Said Property is being purchased for a public purpose, it being purchaser's intent to dadelop and maintain said Fruperty as a publie parx in porpetuity. The eatatement of intent shall not crsata nor be construed as creating ary right of reversion yr defeasible fee in the sellers or their heirs or successors in interest. B. Title to the property is to be free and clear of all lions, encumbrancen or dafects except those hereinafter identified: (1) NUMbers i through 11 Of Exhibit B of sohadule B Of Commonwealth Land Title Company of Snchomioh county, title commitment no. o3g3aq, dated November 30., 1992. S . RerroaentLt igns and ._warxAntiu. A. Sellers have no knowledge of or have received no claim or notice from any govarnmental agency of any ViOlat;on of lass, ordinariness or rogulations reelecting to the property. B. Sellers have no knowledge of or have received no Olaim or notice of any government or judicial pracaading (threatened or aotua!) affecting the Property, except for the letter from the Washington Stato Department of Transportation of october 27, 1993. C. Dollars warrant that net hazardous substance or dangerous or toxic wamte or other material regulated by State or Federal laws or reViationa hap been lawfully or Unlawfully degvsited upon the Property, except as allowed pursuant to the Supplemental, Agreement dated as of October 2, 19920 between the parties and the November 17, 11099 letter from John D. wallace, of Ogden Murphy Vailact, to sellers. D. sellers warrant that they are the Owners of the Property and are authorized to sign this Option and h1ve# the legal right to cell the Property under the conditions sett forth in this Agreement. 7. QQZMancAQ-F0r7n5 of Dead, sellers shall, as a part of the clOging, execute a statutory warranty (fulfillment) deed conveying tee title to Parcels A and B as demoritad in Exhibit B, which dead will be in the fora of Exhibit B attached hereto and incorporated in full by this imn - 3 - IDVA ae, ex raoorAM3 s2 61 5ENT BY;OGDEN MURPHY WALLAGE ;12- 7-82 ; 2;55PM ; 20644702154 20577102214 5 reference, and a quit claim (fulfillment) deed Conveying the rovarsionary intarsSt of cellars in Parcel C as dear-ribed in Exhibit A, as idantified in that certain document recorded under Cnahom$sh county auditor's file number 1045210 which deed will be in the form of Exhibit C attached hereto and h+araby inccrporatad in full by this reference. Said deeds shall be Placed in true aaerow which truo escrow and collection of this contract shall be established with ❑5 Bank, Edmonds Branch, for the purpose of ce+l1*Gtion of this contract and upon completion of payment of the obligations by the Purchaser under said contract, instruntions to the true escrow agent shall provide for the delivery of the statutory warranty fulfiI imant dead and quit clams fulfillmfint deed to the Purchaser for r4cording. 8. pas -session. Sol.loarn shall deliver posaesaeion of tha Proparty to Purchaser at the time of closing subject to the provisions of paragraph 3 above. Closing shall be performed by commonweelth Land Title company of Snohomish county. A. Except as specifically provided otherwise in this Agreement, the agreements, covenants, promises, rapreseentationsc and warrantiaa contained in this Agreement or contained in any documents or instrumentS delivered pursuant to this hgreezont shall fully survive closing and delivery of all documante and instruments delivered at or its connection with closing. H. Sellers hereby agree to indemnify and }cold Purchaser harmless from and against any and all losses damages, liabilities, costs and expenses, inoluding roaaonaale. attorney'e Pees► incurred by Purchaser by reason of or arising out of the duties or liabilities of Sellers which are not SPecifically or expressly assumed by Purchaser by reason of the incorrectness or br.aach of any of Bell ersr representations and warranties contained in this Agreement. 10. 01080iffc r?Q Either party shall have the right to sook the specific performahca of tha enforcement of the terms and conditions of this Agfreament. 11. AttQEDa , ■ Fj=. If either party har ate is required to retain an attorney tee bring suit to anforea any provision of this Agreement, the prevailing party in such suit shall be entitled to reasonably attorney's fees. mvn. _ 4 _ MUMAt oe-ims la mas SENT 9Y:OGDEN MURPHY WALLACE :12- 7-92 : 2:55PM ; 2064470215-+ 2067710221:# 6 is. Notiasa. All notices which may be or are required or perlitted to ba given by either party to the other party under this Agra*ment shall be in writing. All notice# by a party to the other party Nhdll be daiivered personally or cent by United atatea mail, Pontage prepaid, addressed to the cthar party at the address set forth below, or such may from tins to time dagignata. if &ny notice is mailed, it shall be c0nelusiv*1Y deemed receivad three (3) days following the date it is depaGitad in the mail (the date of mailing shall be counted as one of the three days) • Tha postmark affixed shall bo conclusive evidence of the Bats of maeiling. Notices to be sent to: Purchaser: Sellers: City of Edmonds l) Howard V. Andereon, Jr., Laura M. Hail, Mayor as his separate property, 250 Eth Avenue N. 7419 - 200th at. B.W. Edmonds, WA 9$o2o Lynnwood, WA 98036 2) Ja Gualti.eri, as his separate property, 9930 - 174th S.W. ]Ronda, 1WA 98020 AND TO J*nnnetts A. CYPhars a/k/a/ Jackie Cyphers httorney-at-Law Suits 304 MOrthgats plaza Building 9709 3rd Avenue N.E. Seattle, WA 98115 13. Entir-e Acre■zont. This contract acnatitutas the entire agreement and un4erstanding b6twson Purchaser and Seller's. There are no verbal or other arrangements that modify or affect "is contract, No re re8entations or A ta.temsnts, oral or written, not mad* herein, have induced execution of this contract or have any affect upon its validity. 14. The Supplemental Agrammexnt, supplcmgntal to the Apt un to purchase Real Estate Agra*ment was entered into by and between Purchaser and Seller and darted as of October 2, 1992. Said agreement r*quired the removal of e*rtain specifically identified materials or structures and Lanka from the subject Property. Sellars hAve prOvided certification that a].l yr the thus identified items contained in Paragraph I, subparagraphe A through D, of said Supplemental Agreement have been OWN � JWNWAUNW.170012-04-ft SENT BY:OLDEN MURPHY WALLACE i12- 7-02 0 2:56PM i 20644702154 2067710221;# 7 full yy and completely removed in accordance with all applicable state: and Federal regulations. Both parties to this agreement have acknowledged that the roof ingr material identified in subparagraph n, of paragraph I of the Supplemental Agreement did not have to to removed by Sellers. Sellers ahall provide proof Of complation of its removal and disposal Obligations under paragraph I, subparagraphs A through D, of the Supplemantal AgreemQnt prior to cloainq. DATED AS of this day of December, 1992. $ELLBRS! HOWARD V. ANDERSON, JR., Howard V. An erson,5r. as h1a separate gestate JAMBS 4UALTrERI James Gua t er , as his separate estate STATE OF WASHINGTON ) ns. COUNTY OF SNOHOMISH ) PURCHASER: CITY OF EDMONDS Laura M. Hall, Mayor ATTEST/AUTHENTICATED: City Clark, RhondaT.—March On this day of , 1992, before no personally appeared HowWx'�Anderson, Jr., a8 his separate oatate, to me known to be the itdividual deacribad in and who exaouted the foregoing Real Estate ftrchaSe Contract AgrOMant and acknowledged that he signed the same as his free and Veauntary at and dead, for the usas and purposes thsrain mentioned. IN WITNESS WH& EOP, I have hereto set my hand and affixed by official seal the day, and year first above written. HOTAiZY PUBLIC My Appointment Expires: r�rti - 6 mwa+eez.ivaooe.i� �� SENT DY:0aDEN MURPHY WALLACE i12- 7-92 ; 2:56PM ; 2004470215y 2007710221i# 0 STATE OF WASHINGTON ) Big. COUNTY OF SNOHOMISH ) on this Meg , 1992, before me personally Appeared .7ams�"ualtieri, as Kis soparntm estate, to me known to be the individual deacar :bed in and who executed the foregoing Real Estate Purahase contract Agreement and acknowledged that he signed the same as his free and voluntary at and dead, for the uses and Purposes thareim mentionad,. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first above written. NOTARY PUBLIC MY Appointment Expires STATE OF WASHINGTON ) ? sa• COUNTY OF SNOROMIGH ) On this day of , 1993, before me personally appearad Mayor Laura Hal , to me known to be the .individual daaaribad .in and who executed the foregoing steal Estate purchase Contract Agreement and acknowledged that he signed the game as his free and voluntary at and dead, for the u#es and purposes tharaia mentioned. IN WITNESS WHEREOF, I have hereto avt my hand and affixed by official seal the day and year first above written. WOTARY PUBLIC MY Appointm*nt Expires: STATE OF WASHINGTON ) COUNTY OF SNOHOMISH � ai• On this day of , 1992, before me personally appeared Rhonda J. March, city clAkrrk, to mr2 known to be the individual described in and who &Xetcuted the foregoing Real Estate, Purchase Contract Agreement and acknowledged that he signed the eaxme as his frse and voluntary at and deed, for the uaas and purposaa therein mantioned. IN WITNESS WHEREOF, I have hereto set my hand and affixed by official seal the day and year first.abova written. NOTARY RMUC MY Appointment Expires: mwrw _ T .. mwa�_,vaooa.t,z..a�o SENT SY:OGDEN MURPHY WALLACE :12- 7-92 : 2:57PM : 20844702154 20677102214 9 (RWILt m Statutory Warranty Deed THR GRANTORS Howard V. Anderson, Jr. , as his separate property and James au.altieri, as his separate property, for and in consideration of Tare and no/100 Dollars ($10.00) and any other valuable in hand paid, aonveya and warrants to the City of Edmenda, a Washington municipal corporation, the following descrihad real estate, situated in the 00unty ref Snohomish, Stets of Waehingtonz RARCZ"s That portion of Government Lot 3, including tidelands, section 33, TOWnship 27 North, Range 3 East, W.M., dancribad as fol2cwse Beginning at a point on the Narthweaterly production of the 8vuthwmwterly margin of Hain street, formerly George Street, an shown on the plat of Edmandg, according to the plat thereof recordad in volume 1 of plat&,, Paige 26, records of Snohomish County, Washington, where said production intersects the Westerly line or right of way of Croat Northern Railway Companyi TENCE 5outhwostarly along Wooterly margin of aaid Great lvortharn right of way 17� Q6 feet to the True Point of beginning; THENcR North 66908► West to a point of intersection with the inner harbor lira, said point being South 45, West, a distance of 55.43 feet from the Southwveterly margin of the Northwooterly production of Main Strest j THENCE South 456 Nast 26.67 tout; THENCE South 560431 East 310,09 Iee9t, more or leas, to a point of intersection with the Government meander lino; THENCE ift a southeasterly diracticn to a point on the Wostnrly margin of the Great Northern right of Wa} Which is 8So feast Northeasterly an the south 1ine of Government Lot 3 s as measures} along the Weatarly► margin Of the Croat northern right of way; TI:ENCE Northeast&rly along the Westerly margin Of the Great Northern right of +way tO tho True Point of Beginning. k2l.IT444 "- That portion of GevOrnmOnt Lot 21 Section 23, Township 37 North, Rangy 3 East, W.M. and or the tidelands of the first claw in front thereof, deacribed as foilow5l BagiAminq at a point on the Westerly line of the right of Wavy of the Groat Northern Railway Company 654 fact Northerly (moaeured &10ng said right of way from the. South ling of said Lot 3; IMC>E Northerly along said Westerly line of the right of way, 940 fact; MWum exam.t7w SENT SY:OGDEN MURPHY WALLACE ;12- 7-92 ; 2:58PN ; 2054470215-* 2057710221410 THRNCR Westerly at right angles to said right of gray to a point in the neander line of Puget Sound; T'RUCS Hnrth 560431 west 315,09 feet, more or less, to x point on Inner Harbor Line; THENCE South 450 Weat along said Inner Harbor Line 173,12 feet; THENCE South 511,57, Bast 330-28 fci*t, mar* or lose, to meander line; THENCE South 49* East to the point of beginning. Subject to numbers 1 through 9 of Exhibit B of 3ohedula S of Commonwealth LAnd Title Cozyany of Snohomish County, title commitment na. 039189, dated November 30, 1992. This deed is given in fulfillment of that cartain real estate contract betwean the parties hereto, dated Oacember �, 1992, and conditionad for the ccanveYance of the above described property, and the covenants of warranty herein- contained &hall not apply to any title, intrrest or encumbrange arising by, through or under the purchaaer in said contract, and shall not apply to any taxes, aAsesr�ta or other charges levied, &G986zsad or becoming du*' subsequent to the date of said ContraCt. Rea1'25tate Excise Tax wag paid on this sale or stamped axvmpt on , Rec . No. DATED this BY POW&rd B, Anderson Jr. STATE OF WASKINWOR j COUNTY OF SNOHOMISH ? as. day of By James '%u$ t er On this dale parsanally appeared before sae Howard Bo Anderson, Jr.o to ma known to ba in the individual described in and who executed the within and foregoing instrument, and acknowledged that he sigMed the mama a& his free and valuntary act and dead, for the uses anal purpaaea tharein montionad. GIVEN under my hand and official seal this day of , 19 NOTARY PUBLIC mr ApPointment Expires; nNUM xr M.1700 SENT 9Y:OLDEN MURPHY WALLACE ;12- 7-92 ; 2:58PM ; 2064470215-� 2067710221411 STATZ OP WAGHIHOTON ) COUNTY OF SNOHOMISH ) all. On this day personally appeared before ma James Gualtieri, to me known to be in the individual daser3bad in and Who executed the within and foregaing inatrumant, purposes therein mentioned. and acknowledged th&t he sighed the same as hin free and voluntary act and deed, for the uses and Q1V= under my hand and official seal this day of SD . NOTARY PUALTC NY Wtirntment Upires: MWU7l7,lx1 =.i7w SENT 6Y:0LDEN MURPHY WALLACE ;12- 7-92 ; 2:59PM ; 2064470215-► 2067710221412 Quit CIaim Deers THE GRRNTORd Howard V. Anderson, dr., as ilia separate property and James Guacltieri, as him 8aparate property, for and in consideration of Ten and no/Igo Dollars ($10.00) and any other valuable in band paid, conveys and quit claims; to the City of Edmonds, a Washington municipal corporation, any and all interest they may have or may haraa:ter acquire in that certain real property, including specifically their interest in reversionary rights as idantifisd in an instrument recorded under Snohomish county Auditor's file number 1045210 which property is situated in th* county of Snohomish, State of Washington and describad as follows., PARCEL C: That portion of Government Lot 3, Section 33, Township 37 North, Range 3 $east, W.K. , described as follows: Beginning at a point en the Northwersterly produrot3on of the southwesterly margin on Main street, formerly coorge Street, as shown an Plat of Edmonds, according to the plat thereof recorded in ValumO 1 of Plate, gaga 26, recards of snohomish County, Washington, whore cameo intersecto the 'Westerly line of Great Northern Railway right of way, THENCE North 61,P091 west al distance of 98.15 fret, more or lase, along the extension of Southwesterly margin of Main street to a point of intersection with the Government meander line; THENCE South 391,311 W**t & distance of 26.60 feet along said Government mcander line; THENCE South 66000 East a diwtance of 99.67 feet, more or leca, to a point of intersection with westerly line of rigrit of way of Great Northern ftilway Company; THENCE North 41004' East m distance of 17.86 foot along the Wauteerly right of way line to the True Point of Saginninq. AND ALSO the following described tidelands of the first clean, fronting Government Lot 3, Section 23, Township 27 North, Range, R&n9a 3 East, W.K. ; Bag.inreing at a point on the Northwesterly production of Southwesterly margin of Main Street, formerly George Street, shown an plat of Rdmonds, according to the plat thereof recorded in Volume 1 of Plats, page 36, records of Snohomish County, Washington whara same intersects westerly line of right of way of Groat Northern Railway Companyi THENCE North 61608' West a diatanca of 98. i6 feet, more or le"a along extension of Southwesterly margin of Main Street, to point 4f MUMIxr M.170P BENT BY:OGDEN MU RPHY WALLACE ;12- 7-92 ; 2:59PM ; 2054470215-4 20E7710221;#13 intersection with the Govarnzont aeander lime and True point of Beginning; TKZNOB continuing North 61008,P West a distance Of 310.63 foot, More or lass, alang extension of southwesterly margin of Main str•at to the point of intersection with the inner Harbor Line, THENCE South 44059,301, West a diatanca of 36,49 fesert along said Inner Harbor Line, THENCE Routh 66008, East a diatanca of 322.62 feet to the point of intersection with the Government mwandar li,na f THENCE North 394,310 East a distanco of 26.60 feet along said Governma.-�t meanda r line to True Paint of Beginning. Situate in the county of Snohomiah, Stmte Of Washington. Thia deed is 9'v*n in fulfillment of that certain real estate contract betwoon the parties hereto, dated Decembar , 3.992, and conditioned for the aonVeyanc+e of the abovo described property, and the cav"Ants of werreanty herein contained shall not apply to any title, interest or encumbrance arising by, through cr raider the purahaasr in said contract, and shall not apply to any taxes, ekeeessments or other charges levied, assessed or becoming due subeequernt to the date of Said contract. Real Rstste EEGs& Tact was paid on this sale Or stamped axaXpt on Rees No. DATED this By Howard B. Anderson, Jr. STATE OF WASHINGTON } COUNTY OF SNOHOMISH } ss• day of By Jambs Gualt ax On this day psrsonally Appeared before me Howard D. Anderson, Jr., to me known to ba in the individual described in and ►rhv executed the within and foregoing inatrument, and acknowledged that he signed the mama As his freer and voluntary act and deed, for the uses and purposes therein mentioned. oIVEN U2%der my hand and official seal this day of , 19— . NOWY P'C78LIC My Appointment 11piras a mwsM2.UV=.17W SENT BY:OGDEN MURPHY WALLACE ;12- 7-92 ; 8:00PN ; 2064470215-1 2067710221;#14 STATE OF NASHXNGTON ) COVNTY 01P 6NOROXI M ) s s . On this day personally appeared before me James Gualtieri, to sae known to be ire the individual described in and Who executed the within and fvregOing instrument, aril acknowledged that he Signed the san$ as his fret and voluntary act and dead, for the uses and pure❑sacs tharein mentioned. GIVEN undor my hand and official seal this __ dily of 19—. NOTARY BIJBLIc NY Appointment Eepirea: JDWUMXxX&17M 12-07-92 07:0319M FROM F F & S SEATTLE TO 233940232�00019V 710 P008!008 DRAFT [FORM OF LEGAL OPINION] Oace T6bfe r , 1992 City of Edmonds, Washington Re: City of Edmonds, wachington Real Estate Purehase Contract Agreement Ladies and Gentlemen: We have examined a certified transcript of the proceedings had by the City of Edmonds, Wash.i.ne ton (the "City") , in the matter of the allthorization and vxecut'un cif the Meal Estate Purchase. Contract Agraeiaent (the "Contract") by and between the City and Howard S_ Anderson, Jr., ("Anderson") and Gualtieri ("Gualtieri e1) (=110ctivaly, , the "Sel lersee) , dated December 1992. The Contract has been executed pursuant to the lams of the State Of Washington for the purpose of acquiring certain real prapertz, £Or OPon apace and park purposes, all as provided in Reselut.' on No. of the City. The contract is fully registered. Under the terms of the contract, the Contract is in the total principal amount of $21050,000 and is payable as follows. A. The undivided 31/60th interest belonging to Andari5on is equal to the sum of one million fifty-nine thousand one n-andredsixty-six and sixty-seven cents ($1,059,166,67), Said sum shall be paid in the following manner: (1) $500.000,00, in cash shall be paid at the time Of Closing uonsis' - c d1l princiYal. Purchaser s] given credit for the $1 txOfi2677.Wr 12-07-92 07:03PM FROM F P k S SEA'TTiE TO 233}402�2*0001, 47710 P006% 00B city of Mdmonds, Washington December L, 1992 Page 2 option money already paid to Anderson. (2) The remaining balance of $559,166. E7 shall bear interest at a rate of 6.25-t per annum on the declining principal balance, with paid balance tO be paid In the f'ollouing manner! Ten (10 ) equal annual installments Of blended principal and interest wit," the first payment of principal ana interest due one year after the date of closing and each succeeding year thereafter until thp- entire balance of principal and interest is paid in full. bThe undivided 2g/50th interest belonging to GUa.ltieri is equa.6 to rdne hundred ninety thousand eight hundred thirty-three dollars and thirty-three Gents ($990,833.33) Said sum shall be paid in the following manner: (1) No payment at time of closing. (2) The balance of $990,833.33 shall bear ir-=terest at the rate of 6.25!1 Pe annum on the declining principal balance, with said balance to be paid in the following Mannar: Ten (10) equal annual insta llmantr. Of blended principal and i:,ztures;� with the first interest payment of principal and interest due one year after the date of closing and as ah succeeding year thereafter mntil the entire balances of principal and interest is paid in full. C . Notwithstanding the f awmejoirg, in the e r ant the purchaser obtains the TAc 7,natchirg funds that it has applied fo27, fvr this purchase, then, in said event., the entire remaining "2677,WP 12-0?-92 07:03PM FROM F P a S SEATTLE TO 233#4023N00147710 P0071/008 City of Edmonds, Washington December _, 1992 Page 3 balance of principal and interest on both of the aforestated obligations shall be paid in full. D. NOtwi.thstanding the foregoing, nothing shall Prohibit the purchaser from at any time prepaying all or any portion of the principal arnd interest balarica owing can asthaw or bath of said obligations, at purchaser's sole discretion. The Contract is a limited tax general obligation of the City. The full faith, credit and resouress of the City are pledged irrevocably for the payrnent of principal and interest on the Contract, The City has pledged to budgat and uppropri&t_0 from annual regular property taxes and other available to the CitY without a vote of the erectors of the City amciints sufficient, together with money Legally available therefor, to pay the principal of and interest on in -ha cont..ract ar;; tl a wame Came due. Reference is made to the Contract for a description of the agreements, conditions, covenants and ter~ma aecurincj the parties to the Contract, for the nature, SXtent and manner of enforcement of such agreements, conditions, covenants and germs, for the rights and renedies of the parties to the Contract with respect thereto and for other agree'spnts, conditions, covenants and terms upon. which the Contract has b*Q QM autod and deliVcred. Reference is also made to the contract for the definitions of terms capitalized and not otherwise defined herein. As of the data of initial execution and delivery of the Contract to the Sellers, it iz our opinion that (1) the City is a duly organized and legally existing municiFal corporation under the laws of the State of Washington; (2) the Contract has been duly authoari2ad, executed and dal.iver_ed by the City in full compliance with the provisionz of the constitution and laws of the State of Washington. and the r'esOlutionz of the City relating thereto; ��) the Contract constitutee a valid general obligation of the City payable solely out of taxes and other rtbnay legally available t4 tha City therefor without a vote of the effectors within thQ city, except only to the extent that enforcement of poymaht may be limited by bankruptcy, insolvency or other laws affecting creditors ► rights; and (4 ) assuming compliance by the City with applicable requirements of the Xntelrna,l revenue Code of 1986, as Amended (the "Code"), including arbitrage requirements and roquiramente for the cQntinured governmental use of the property 0062677. WP -07-92 07:03PM FROM F P & S SEATTLE TO 233W232*0001147710 P006/008 City Of Edmonds, Washington December _,, 1992 page 4 being Pu Ran sed pursuant to 'the Contract, zsmounts that are p-operly ederal income ta-y purVo5es a5 interest pa �d on the Contract are. "c1ud42d fro;e groan inoomu Lan reaera? rncolme Purposes tinder existing federal law, including the cede, and is not an item Of tax preference for purposes cad' the alternative TaInimun tau applicably to individuals; however, which interest on 'tire Contract is rot an item of tax preference for purposes of the alternative mir:im= tax applicable to corporations, nt�rest vz•. the Contract. received by ccrporationa wll be to3r ' area account an the comptetation of aciju�ted rift- book income and adjusted current ear inn s for purp�, „g of ��lcuAat ng �:ne= a? lr-ernati.-Ve minirrum tax applicable to corporations, interest on tile Contract received by certain col'parations may be subject to an environnental tax, interest on "e Cohtra,�t received by certain S corporations may be subject to tax, and interest an the GantracT. received by foreign Ourporations with United State branches may bg zubjerct to a foreign braxich profits tax. We express no opi.niOri regarding the extent to Which ameuntu payahlc under the Contract are properly treeated as principal or as interest for fade.rai income tax purposes OY' regarding any other federal tax consequences of receipt of interest on the eor.tract. very truly yours, FOSTER PEPPER & SHEFE1 Lee Voorhees 12 2. 2 17:23 i rio. aF�, DC�1 WEALTH LAND ITTLE COMM"' Of Snohomish County 217Cs? Colby Avc. ♦ P.O. Box 51 a E.vcwett, WA 08206 742.9G+- f 453-1402 • F•f X: 339-8-W "'?4-4302 SECOND REPORT SCHEDULE"A" 1. I�gective Date: November 30, 19927 at 8:00 A.M. Commitasect 039389 TO: Oty of Edmonds Your Nc.: 505 Bell Street Edmonds, WE. .rain: John Wallace Froposcd Insured: Anderson Marina 2. Policy or Policies to be issued; Amount Prtmium Tax (b) ALTA owner's .standard es.)verage. $2,050,000.00 $3,778,06 $298,46 (; ALTA owner's extended coverage r1 Mortgagee's ALTA coveragt (j Mortgagee's standard coverage (� Easement coverage ij ?. Tho estate of interest ita';,e land described or referred to in i6if; co=r fitment aad covered herein is fee simple and title thereto is wt the efliectiva date hereof vcsicd in: See attached Exhibit C 4, The land rcfcried co in this comminnent is dcscribcd as follows: See attached Exhibit A Gary A - Authorized Offts:r or Agcni NI O 'E.: 3. Investigation should pe msae te, 6cterm!ne if thtre are My seMce, wmiwlon, matntenancc or rnatn:;ion thargca fo: acwtr, ". tc.r, telephone, gzs, elcctrioty or garvxgc and -dune coliettion. 2. to the event this transaction fails to dose, a cancsllation fec will tse dUrged for services rwdcmd it areordance with our rate schadulc. 102' 92 17 : 27 EXHIBIT A 'p 7f •� n 1 r Commitment No. 039389 That portion of ovarnmcant Lot 2, including tidelands, Section 22, Township 27 North, Range 2 East, W.M., descrii:od as follows: Beginning at a point on the Northwactoriy production of the Southwastar ly margin of Main Street, fornerly Goorge Street, as shown on the plat of Edmonds, according to the plat tharocf recorded in Volume 1 of Plats, pago 26, x`eoorac of Snohomish ^ount.y, Wauhington, where said production intersoc4s the V'octQrl1y li:te of rig! -It of way of Great Northern Railway eo;n any; THE17CE Gouthwesterly along Westerly narWin of said ;resat Northern right of `;vay ? 7.86 feet to the True Paint of Beginning; THENCE fvorth 66'OV West to a paint Of intersection with the inner harl7ol line; Said Point being South 450 West, a ii:.st,'anOe of R .,_3 feet from. t;z�: outh�Fcstc�rly margin of the ?�or4hwe-5terly production of Main Street; iF#d2dCB South 450 West 26.67 feet; THENCE South 56"4?' East 320.0!� feet, more or less, to a point of intersection wi"4't the Government Leander lineF THENCE in a Soutneasterly direction tc a poi;:: vn the Westerly rcargin or the Great Northern right of way which. i5 850 feat Northeaster ly on the South line of Ggveyrnzen t Lot 2, a5 meaisuiied along the Westerly frargin of the Great lio, t.hern of waYi THENCE Ncrtheasterly along the Westerly m31g1n of the Great Northern ri_gnt of way tc :he True Point, Or Z-egint,i:;c,. 2 11C. K B Thero.r_tia rof Ger yt f .-I- ?.. , Section -Z5 , TOVnSlli: ? % iior*P Range 3 past _ N.M. and of t"A tidelands of yhe first class Infront t�iereDf, describad as follows! Beginning at a poi nt on the Westerly lil.r� of the right of way of the Great Northern Railway Company 65,) feet Northerly :al,oing said right cf way from the Sautll lifle Of Said Lot 2; THENCE Northerly aicn�'r said vdesteriy -:one of the right o; 'Way, 2000 feet; - THEINCE westerly at right ano yes to said right of waY to ` point i:i t[`i '.[1C'C"E`s1�er ilitiO Qf F'UC�et �^ii7Ciy h'ENCE North .360431 West 315.09 feou, (:-.ore. a',^ Jess, to a point on Inner Rarbor line; THENNCE South 450 West a? ong said inner Harbor Line 175.12 feet; THENCE Sago--h 51'57+ East 330.26 feet, more or less, to neandei 11ne; '}HENCE South 49° East to the point of beginning - Continued 12,'S 2•-92 IT;24 1;0. 46_ D4 3 Faga 2 EXHIBIT A PUICEL C,� Commitment No. 030,389 That portion of Govarnmant Lot 2, saction 23, Township 27 North, Range 3 East, w.M., d48-_ribad as follows: Beginning at a point on thq Northwesterly production of the Southwesterly margin of Main StrQa.t, formarly Ceorgra S'-reet, as shown on Flat of Edmonds, according to the plat thereof :recorded in volume I of Plate, pago 26, rafords of Snohomish County, WmshingtDn, where game irtersootg tha Wcstorly Tina of Great Northern. Railway right of way; THENCE North 51"08 ° Vdtst a distance oy 98.15 fast, m, re or 16fgz along the extension of Southwesterly margin of Main straat to a point o£ ir_tew 5actia*� with t[fr' Gcuernr�ent :ilee3nd6Y i trG; ':;FENCE Gout_. 39 -' 1 ` west a di3tanoe of 2 k:. 60 feet along said Govern.:nent mes m nder .line; THENCE aout_r, 66'08` 1:.ast a &Lsti.nre of 99.67 feet, morn, or less, tc a point c:f intersection with Westerly line of right of way of Great Northern Railway Company; THENCE North 41*04 ` Erst a d;.st;noe of 17.86 feet along the Westerly right of way l ne n, the True Point of Beginning. AND ALSO the following described tidelands of the first cuss , fronting Government Lot i, Section 23, Township 27 North, R•�-nee. Range 3 East, W.M.; Beginning at a point on the Nortnwe5terl'r Production of ._Q0,dtrlWeSterjy mai'CYj.4i-r, :�f 1+Z j n Street, fvrme!i _y ceorge stow-,n e^ plat of ECnonds, accordinQ to the plat thereof recorded 17! Volume 1 cf Flats, page 26, rscora5 of S_Tluhomlah Maun y, k'ashingto:: here same in;.e_—sects este_ly line of r.Lght cf rimy of Great Northern Railway Company ; THENCE Nort: 610081 West a distance of 98,'!6 feet., more or 1es5, along extension, of Southwesterly margin, of Main Street, 4o uint of .'intersection with the Gove.nment meander line and Trae ncint of Beginning; TH'EtiCE continuing North 611108' West a distant_-e of 3!Q.63 feet, More or less, along extension of Solathwesterl.y margin or main Street to the point of intersection with: -the 1nnel- riarbDr Line; THENCE South 441159' ~Oa` wTes+'. a distance of 56.48 fee, along said Inner Harbor pine; 1ii �k�Y South 6600S' raSu a distance of 31-12. 6t feet to the ro1rit cf intersec - on "pith. the Govern -rent meander line; THENCE }worth 3903?' Last a distance of 26.60 feet along said ,:government meander line to True point of Beginning. Situate it T.he Caur:ty Of Snencmisr, State of "Kashington. Commitment No. 039389 EXHIBIT C Howard V. Anderson, Jr., ma his separate estate az to an undivided 31/60t2: interest, James Gualtieri$ as his aeparata estate as to an undivided Z9/6Dth interest, all as to parcels A and B and in Jades cualtieri and Howard V. Anderson, ter., as to a reversionary interest in Parcel c pursuant to inoC.rumenta recorded under Auditor's File *1-0. 1045210 12%02/92 27:25 N0.468 905 if I i. comwitmrac Na. (J'Y^ 9 SCHEDULE "B" - SECTION .f T'he following arc the requirements to be complied with: A. instruments neccssary to create the• estate or intcrUt to bc• instsrcd wiwet lv properly executed, delivered and duly fled for record. SCHEDULE "B" - SE ON 2 Schedule B of the. po=icy or policies w be issued will eor;tain exewptions to, the following ruatrers uricss tht same are tfispu5Cd of to the satisfaction of the Ccxt:p4ny^ A. Dcfcct,;, liens, tuCumbFantri, adverse clam.; or clier mat:wrs, if any. created. first a',, -,gearing in the puUc records, of attaching sua sequem to the cffcctiV,-% date hcrc:rf lout prior to the date the proposed fnti{ re 1 acquired Of record for value the estat_ or interest or mortgage th;:r .c:n cCxAv-cd fly tris Lomt titrncr?t. B. Any policy issui-d puisnart hcrtto will contain the Exclusions From Coverage and, und_r S=hedule B, the standard exceptions as set forth and ide-iitificd as to ths type.;)i p0lrey on the attac:hud Schedule: of Ex6usiorts & Exception`s. ," S,PFCIAL. EXCE,1''F10NS_ 2.. DELINQUENT GENERAL Yaar: Amaant bi i igd : Amount paid: �„,ount due s Tax Account No.: Aaaosmsd value: A.f f ects GENERAL TAXES: Novenber 1 Year: Anicurtt r_,n, i d e Anount dues Tax Accaur:,t No.. Assessed. valuR: F,ffectVs: 199i �1,994.62 �.5�47.31 *597.31, plus xnteraat 232702-1-052-0004 $141,900.00 portion of Parcel A and pQnalf _Qs !tit half de linqucn: May : ,1 2nd half delinq eri't --EL-TNQUSNT GENERAL TAXES year knount t1? led.: Ammoant:: paid: t n O'.I n t" `i e : aX AVCy'Qnt NO. . AssesSeJ. Value: Affects: 19S2 $1;E97.i �1,£h7,12 $17+ , 3 00. cn Portion of Farce' A ia91 $3,-45.45 Y+I , 672 , 73 $1,672.73, plus i_nteresV 232,7t7=-1-0335-00U3 ,$238, 000. 00 Portion Parcel A continues a—i panal44ies 12i0?, 32 NO. 4E8 s4J6 page 2 Commitment No. 039389 SCHEDULE L - SECTION 2 (continued) i. Continued GENERAL TAXES: 1st half delinquent may 1; 2nd halt delinquent November 1. Year: 1992 Amount billed: $2,846.15 Amount paid: $00,00 Amount due: $2,846.15 Tax Account No.: 232703-1-038-G003 Assessed Value: $285,600.00 Affects: Portion Parcel A GENERAL TAXES: 1st half delinquent May l; 2nd half delinquent. November 1. Year: 1992 iuiloUnt billed: $4,843.2 Amount paid; $00.00 Amount due: $4,843.23 Tax Account No.: 232703-1-054-00C2 Assessed Value: $486,000.00 Affects: Partin Parcel E GENERAL TAXES: :st half delinquent May 1; 2nd half delinquent Kcvamher 1. Year.: 19G 2 r'lzeonnt }gilled: $5768 3.32 Amount paid: $001.00 Amount dup-: $5,685.32 Tax Accoiint No.. %3270 3-1-040-0009 Assessed Valuo-t $570, 500. 00 Affact- z: Portion 'parcel E TAX LIABILITY d,-,Q to axemnt status. The premises is carried on the tex rolls as exempt- -frcn taxes. On date of a conveyance or change in ase which ranoves s+-, from axempt status, the premises r,�rill become aubjeat to general property taxe& from that date forward. For further information re ardiria amount- that will becone due contact the County Tr. eastzror . Tax Account No.: 232+03-1-029-0002 ref f ects : Par col C 2. Payment- of Real Estate Exciaa T&h, if raquired. The property described herein is situated within tha boundaries of local taxing authority of: Edmonds. Prasent rate of Real Estate Exo.iae Tar of the rare hsrozn is I. S31. Continuad 1'222'92 3,7:2E, No. 4E18 i;t;" Page 3 31 A. C.ojnmit:Melst No. 039389 SCHEDULE H - SECTION 2 (continued) DEED OF TRUST and, the Grantor: •Trustee: Beneficlarv' Amount: Dated: Recorded: Auditor`s File NQ,T. Volume f Pa de : Affects: tens and conditions thereof Howa-rd V. Anderson, Jr., as his separate property Safeco Title .T.nmlancs Company Hirst interstate Banik- of Washing .on, N.A. $59,4G2.b5 February 18, n 987 February 24, 1987 8702240305 2033; 1450 Par ,els A and B DEED OF TRUST and the terns and conditions thereof Grantor: Heard Anderson, 5r. as to hi.5 undivided 31/60t."t interest and James Gual tic rx, as to his undivided 23,'60th interest TructQ4: Chicago Title ^surance Company, a corporation $Q3' of ? c: ar y : FL Loader Boat T a i _` er 5 , Tn-- . Amount: 1144, 072. 87 Dated: May 31, 199; Recordedt 22, 1991 Auditor's File Nc.: 910721435� Volume/Paget 2464/0224 The legal d9scription aubnittQd hae bean as set forth in the capticr. of this comrsitusnr_t for ti"ld :;_nsurance to comply With tha_ record and _e presumed intention thfa Parties. Any c _n --i3_ng instruQtioti 6ub7,itted to uc xau5t- indicate teat the legal description his been r,--.fiewed and approv4� id bS all _.a.rt'iQ8 to this transanticn. 6. UNRECORDED LLIzS$HCL:=iS, rights of vendor and holden •-f sea-arity interes-a on perso,-InLl property installed on she ;G'ranizQ-s, anw ri.ghtg of tenants .dc remove trade fixtures, if any, suet xnterrerut exiata. 7. Option to F',lr :n.ase (zeal ' Estate Agreeiftt rnt by and betwean Howard V , iknderson, :Tr. .;znd James Gualtier_ and the City cf Edmonds; rs,corded July io, 1992, under rieiording 1No. 9207100279. H. Parcel C herein is jested in th,e State of Waahington, slab ect to the reversion riciits as contained wit, -,in in5truunen't recorded 1�nder 5nohDVdS27 CounL'y Auditor s Fila Tic. 1045 10. Commonwealth Land Title company of Snohoz ish County cannot ineure ---he procedure necessary to obt-ain fee title Firouant to the oonditions Stated on instrunent therein. Continued page 4 Cormitment No. 039389 SCHEDULE E - SECTION 2 (continued) 9. Agraenent by and between Howard V. Anderson, Jr. and James Gualtieri, recorded November. 14, 1990 ender Recording �o. 9011140444. Aanonq other things, this Agreemer t spells out the intent ci ownership. of said premises 10. Right of First._. Refusal. in favor of the City of Edmonds, recorded Ju'_, 30, 1091 un ar Recordli.r_g No. 91.0 300145. 11. INCOMING PARTY acccrding to th;=t application for +i.lt le insurance iS City of Edmonds. We find no rpertinent matters of record against the name of Baia Party- 12. For additic,nai eassinant.s, : ovarants; rdastrict-1-ons and reservations. of record, P�C'e attached Exhij;.t R. END OF 904RDULE B 1,T I eh 17 z 27 r I2. 468 1?0 Cor=itmant No. 039389 EXHIBI'b B i. EASEMENT and the terms and conditions thereof as rasArva-d by instrument Recorded: Novamkbar. ? 7 , 1952 Recording No. % 1045210 Purpose; Ingress and agraalr Affects; 30 feet in width, over r_ho Eaaterly portion of parool C 2. RESERVATIONS Aid;% 'OTHER N:ATL'EVS CONTAI.i.EG IN DEED Grantor: Howard V. Anderson and Mary. Rylo P Anderson, hiG wife Reccrde!d; November 17, 1952 Rec-Drd i :ig NY . 104 521+0 (Cop;; attached) 3. RIUHTS OF THE GENERAL PUBLIC to the unrc�gtrictea Uae Of r±aviga�3.e waterways and the portion of the pre.n yes subject wo ejb::erg�erit_-e by he water:�ay5 fir nl-i-gati�nal and recreational PUZ—POses. 4. RI*HTS OF THE UY.ITED STATES A140 THE STATE OF WASHINUTON t4 regulate trip use or OcCuparcy or that porticn 7f the preltlses JyJLng below the line ei the mean higr. 5. LATERAL BOUNDAPY ISSUES regarding airs' class tidelands aBd shorelands. 5. EASEME:417' and the terms an"conditions thsreof Purpose: Anchor and guy wire Affects- parcel C Recorded: December 28, 1956 Rec�frding No.: 1220021 7. AGREEMENT providing easement and party wail Between: Arthur V. Allbery and veria L. Allbery, husband+ and wife Algid: Howard V. Anderson and earl Andersoa, husband and w_ to Dated: September 15, 1964 Recorded: March 18, 1964 Recording No.; 1683284 ContiYnue :? Page 2 EXHIBIT B Commitment No. 039369 8. RESERVATIONS CONTAINED IN DEED, whereby the grantor excepts and reserves all oils, gases, coal, ores, minerale, fosaila, etc:., and the right of entry for opening, developing and working mines, etc., provided that no rights shall be exercised until provision has been made ror full payment of all damages sustained ny reason of such entry; together with right o-.f the grantor or any grantee or lessee thereof, upon paying reasonable compensation, to acquire r-ignts of way for private railroads, skid roads, flumes, canals, water courses or other easement for transporting and roving timbeµ, stone, ;r.inerais or other products fr.on this or ether property. Grantor: State of Washington Affects: Tidelands 9. MATTERS disclosed by Survey recorded under Aaditorls File r3o. 5811295001. END OF EXHIBIT B TO EEIw"M WAIMM070H WICK (tell "I -Woo 'u.66 INim. jml 4"-So? Respond to Seattle Office FOSTER PEPPER A. 3HEFELMAN DEC 081992 A LAW PAwr*1z vMr offlWo ec �I�OF�8g1Cx nt 90V'AN COIIEOPATIQN6 1111 THIRD AVENUE gLnTE 84p0 BEAeTTLE, A�H!^IUGH gE1,lli (2061 447.44M PftnABG, MOON 6WW 1aoe1 ait-w I iQdPliil4e T81.160PIM COW "I.14ne (MI "?-M700 (RNA "7,41US TELgkt (m) 5i-uu A11SW FOSTER LAW ®EA DATE: Decomber 7. 1992 TIME: --_ Pacific Time 1. TO: Arthur J, Hpusler/Rhonda March FAX NO; 7Z1OZ21 _. OFFICE PHONE NO. 7_ 77-D2Z�_ 4. TO: John WaIIjQg1Sj2gtt Snyder- - CITY: -Seattle FAX NO; - 447-0215 OFFICE PHONE NO. 44.7-7 FROM: Lee Voorhees---- NAMIE OF DOCUMENT(S): __ Farm of Rpsolution, Edmonds Feel Fet @to-Cqn1ract TOTAL NUMBER OF PAGES, INCLUDING THIS PAGE: T USER AND CLIENT/MATTER NUMIBEAS: :32/40232-19 -- - REQUESTED BY: Pjj0hn.50n FLOOR: 33-73_ THE INFORMATION CONTAINED IN THIS FACSIMILE COMMUNICATION IS PRIVILEGED AND/OR CONFIDENTIAL INFORMATION INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY NAMED ABOVE. IF THE READER OF THIS COVER PACE IS NOT THE INTENDED RECIFIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION OR THE INFORMATION CONTAINED IN THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY 'TELEPHONE AND RETURN THIS FACSIMILE TO US AT THE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE, THANK YOU. NOTES: 92-07 92 06:44PM FROM F P !, S SEATT?E TD 233W 23210001941710 PO02i0O�' DATE SENT TIME SENT DELIVERED BY BY CONFIRMED BY:. I 12-L'I-92 LY,L3PM FFOM F F & S SEATTLE TO 233W2321000107110 F001!008 Iftyum WMNIPOTOR OWICE (pool 4sq-6mc, TNLiCOPrAl (M) 4W4957 Respond to Seattle Office FOSTER PEPPER 6 SHEFEL.MAN PIOFAIbtha t;44L 1WIYIIC �Yw 06 1111 THIND AVENUE BEKSTL.I,%fAjTZN9Y aN OB101 .. •TiLiCCDFIEItI (ON) 4474M (Rod) "y.Mg TELEX? Q64) fist.US4 ANINKI FOSTER LAW BEA DATE: Decom-be r 7 2 TIME: 1, TO: _ nn�A. h 3�_-- CITY: i FAX NO: 2. TO: _jAir,,hael 1._1i` CITY: HaAaii FAX NO: SQ8Z874-5414,...�_r 3. TO: Arthur J. HOW, Wer CITY: Ed )nnds FAX NO: 771- 2 1 4. TO: John iN !la co n Ider CITY. + 3 FAX NO: 447_ ]v� FROM: �V r rhe0 --- OFFICE PHONE NO. HousLat DEC 0 81992 rOr19'Lrxo, *MOON GPrx:L We "I-ml Mi66PiMR; Iom; v' .,&1Q OFFICE PHONE NO. _31 7 -77s5 OFFICE PHONE NO, 771-02jQ OFFICE PHONE NO, 44,7-70i V_ Pacific Time NAME OF DOCUMENT(S): Form of O .i,�rr�,_Edrrrvnt�5 R 1 Est �r7trac� '— TOTAL NUMBER OF PAGES, INCLUDING THIS PAGE: USER AND CLIENT/MATTED NUMBERS: 3 4D 2,19 REQUESTEID BY: PJ JahFLOOR: THE INFORMATION CONTAINED IN THIS FACSIR.jILI= COMMUNICaTION ��Iv��Eae>� �- AND/OR CONFIDENTIAL INFORMATION INTENDED ONLY FOR THE USE OF THE INDIVIDUAL DUAL 12-07-92 G7,03PI FROM F P S SEhTPi,E TO 233#409,321000147 7110 P002i008 OR ENTITY NAMED ABOVE, IF THE READER OF THIS COVER PAGE IS NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION OR THE INFORMATION CONTAINED IN THIS COMMUNICATION IS STRICTLY PROHIBITED_ IF YOU HAVE RECEIVED THIS; COMMUNICATION IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE AND RETURN THIS FACSIMILE TO US .AT THE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE. THANK YOU. NOTES: DATE SENT TIME SENT DELIVERED BY BY _ CONFIRMED � BY 12-07-92 07:03FM F:RU F F & S SEATTLE I 233 4U:.'3? UUUjY�'('(lU YUUS/UUU ULLLEVI,IC. WASHINGTON QFFiC6 2061 A!wamoo I ELECAPILF'. (2091 VIA FLC. IMT 9 FOSTER PEPPER BL SHEFELMiAN A L.'V F{Q'1 NIAK.fylj- IMUL gVINQ hFi4r.661 ONAL. SERVIG: C'ORKIRArrONS 11I I THIRD AVENUE SUITE 34QO SEAT I.E. WA.SHINGTON 99101 C206) 441.44CJO TELEC4PIER: 420W 447.9700 - I266' 447-9;'.83 T0.tE (, i3G(j) 9a•60:'j ANSBX FCsdrea LAw SrA December 7, 1992 Jeannette A. Cyphers Attorney -at -Law Suite 304, NorthgaYe Plaza Slag. 9709 Third Avenue, err Seattle, Washington 9aii5 Michael A. Utt Attorney -at -Law 701 Fifth Avenue, Suite 5700 Seattle, Washington 98104 Re: City of Edmonds, Washington, Contract Agreement Dean Jackie and mike: iLI.CC�SPCL�i !90a1� `s21�!�lU Real, Estate Purchase Enclosed is the form of QPirlfor. that we propose to give approving the validity of the above- referArced contract and addressing the axemption from federal income taxes of the interest paid. to sellers. It is my understanding that the Edmonds City Council will conuider and act upon a resolut-o� authorizing execution and dal fvQryr of the ovntKaut at Its regular raeating tomorrow evening, Accordingly, I would appreciate heaving from each of you in the morning, if Possible, confirming that the opinion ,is in a form sati�facatory to you or raising whatever questions you may have. John Wallace has indicated that with Council approval, the closing should be acovmplished this week, likely on December 5. (1=61K, WP 12-07-92 0?;03PM FROM F P R S SEATTLE TO 2334U232*000194'(7IU H NI/ I!l aeannette A. Cyphers Michael A. Utt December 7, 1992 Page 2 Y look forward to hearing from you. Sincerely, FD Eft EFPER & SHEFR"LMAN Lei Vootthoes Enal*zure Co; Art Housler (w/enc.) John Wallace (w/anc.) saestt snydcr (W/eno. ) 0062684,WP I SENT BYTTI Bellevue 9- 4-92 ; 4.58PM ; PTI ENVIRON. S%' 2064470215;* 2/ 6 pre 11i376 6E 3(A h F'Jnce • ',ir-2w A6urvuc, i206) 64'1-980.'i ■ FQX (") BA3-g827 SoPtember 4, 1992 Ms. Arvilla Ohide Parka and Recreation r"artment City of Edmonds 700 Main Street Edmonds, Washington 980`0 Exe ' :.,e 01lices Subject: Phase 1 Fnv'RJT'UW-nUI Property Audit Findings Andersen Marine prnpurty, Edmonda, W'Ij gtclti PT7 Contract C40"1.0I Dear Ma. OhIde. AM Pnvironw*lltat Services (P1"I) has come lcud th AM Marine rn a phase I ately ,ntnegtal property audit of the Farr]'" lock in Edmonds. Wlao.Sill�� n �1�erae�sultavof the an imenue �nrn �lait'th of the Weashill below. Additional infarmatian including a site lts , n State P oPerty audit are presented enclosed. P nudil 4ockfist. and historical phot(lh lip s is Overview "" perronnel Conducted an inspmtion of the Praperty and interviewed Mr. Howes Anderson, site C, on. Friday, August 29. 1992. Aerial pholographx of the site from 1 t cb#ain� and reVieweti, at were ma 34?, ! 9tG t 3ti7 w n� 1 and hi3t{lrical inf'orm7YJp11 ishtalnwti tCQtn l967, libraries. were Personnel Also reviewed Waahin an ne ertm Pr 1C tion Agency P eni of. t;c010,9Y (Ecology) and U.S. L g Y (EPA} liars of potential haWdOus materials sites in Snohomish eot.nt 'nvirvtunentdl hazardous waste generators in Snrrhartmich countogy ' tanks m Edtrmnxts and evaluated the potential :ilr tll`�� A hits of vd various i4v }� ias t❑of gaffectr h�rrdergra�d siorago bjeet q itt . Site Dwcription The Anderson Marine property consisN of three a,n0guous parcels of ]and located between Pu ant! Railroad Avenue inunetliately South t,f the Washit3gron State Ferries isee attached get lSourtd ton gore), The ProPerry frantS On Railroad Avenue fe}r approxirnatel�� Edmonds, Washlmtgton tidelands to the west ut the site. The upland p+,atioa Of tha yite is love! and oelY 00 f and includes the {located in the south and southw= portions (.)f the Site}, tivitlt the remainder of the urila three building(; asphalt and Concrem {used For boat storage and Parking), paved wish s) The ddelnnrit Consist of a gently gluping m2d SS' BYTTI Bellevue 9- 4-92 ; 4:58PM ; PT1 ENVIRON. SVCS. 2464470215;f 3/ 6 Ms. Arvilla Obide September 4, 1992 Pars 1 artd gravel beach. A wood reuitung wall separates the beach f7 onx theuplands. A badly &Trjraw (2nd no longer used) dock and marine railway extends from the south West oriiun of the site inQ pu oet Sound. 7'l cc southern JItc A onsite building measurr3 apprUx411ately 52 k l�0 ft, is; constru�ad of wood wfrh a variety or roof materials, and is usex] far storage. t�,e building 2() , issCOMAr in t and is located on the w3uthern edge of F1'CaSthe pr4perty. An adjacent buildinng is �nsttttcted witll 8 wa]d�alrt �d Steel siding and UrCS dO x 120 f}. COnstrt;0ted in 1960 car 1961, this building it used for storage and houses engine repair operations and parts dc-partrnmt. A third wood frame i�uildinn ' tl]C beach, was ronstructad an piers aver the beach in 1963, and se�-veg as thr- AnucrsonlMarine 1bnaL mom and offs. This building measures approximately 50 x IQO ft, Roof drains. and Catch basins along the norlh side of the northernmost warehauSe and i}o repair building discharge to an outfall located underneath the nerrhwert corner of the shnwrrrom r 04 rV A second onsite storm drain atltfalI may be !heated beneath the showroom build in sand bat gradually filled in under this building liroventir� tscee. g {accurditkg to Mr. Anderson, CO be located neat' the west end cif the cart tau,ses. wo i,pQ{1- d single G�`ttch basin was Observed located beaeatil x uwacfete slab in the southwest cornet. of the S'te. The were nSt311ed in l 962 or gasLolina 1; tanks are 19t53 and were vn :t of use in the Batty 1970S (according to Mr. Anderson, they were not selling em)ugh fuel to �x,ntinue using the tanks). An unused 500-gal, heating (oil tank is Incated near tha east side Of the showroom building. This ianr was installed in 1963 whtic shawrt]otn eves aottxtructed, but wgs ta}cen wt of use when the bttiltiirtg was Conpz verted to electrical lira[ in the raid 14605, It is unknown if boat repair hudding and contains waste oil. any tbel remaigs in the :arks. An above-groutxl, Steel rank is lzlcated Bear the northwest corner of the The FTI ne StDrM drain oil stains on the pavement nor the waste oll tunic, (nil stains in and around at ieaax p(}ey stnrtn drain catch basin. near the engine repair shop, a small arm of Stained beach sands bettesth:tn engine mounted on the dock at the head 0$-the ttl rind railway (the no 10Ucc �functlonal engine was used to raise and lower boats tun the m,^.rine railway), and nil StdinF at the visible storm d� bin tfurfall. 'Surrounding Land Use The sits is bordered to the we:;t by Puget Sound, to the north by the s to the wasd Llie tySSC by Railroad Avenue arxf a 19uriington Northern ra!lrOad tra�;k, bingtatl SfattM a 1 crri by an ofdlca andQcic, to restaurant complex. Surrounding lands consist of city parks. restaurants and rthe businesses, and terry as�c1 Parking. A large city-uwaod marina and a ilnoial tank farm are lEacsted apprnxlsnaWy 0.5 mile south of the site. Site HkU ry A review of ]OkA history, books and maps indicattul that the AnderAm Marine property wets the site of the A & C Shingle mill fr locateotn prior ire m tv t9a9 until it Ourned in 1919. Till was anc of 11 shingle mllls d along the F-imands waterfront during mat exa. Fctlfowi Andarao�7g the dastructipn of the mill, the rt !►4arinc site was used tore wand Storage and sales, then was used as a heat re�ir nr storage yard during the 193(is (no derailed infornFarittrt wai Icrcated regarding this operation). Eden the Andersun family purchased the site in 1945, an old boat house wds located o,c the upland nt»ion of thr, site and was used to store boats. luring t_ha Andet cln's trwn ,nip of d,e pro and baactt sands at,ti gravels used to fill anui lzvel the tr }land p"�' the seawall was CorstrttCL i 1 lxartit�ns cif the site. (According to flit F'iIENVfRONMFJVTALSFRVIfES EMoir,r�eco ■ e 250 eellc+rue,Wwshinctx-,6EM7 ■ (2cN;j�q�-4j ■ FAx(A)pje4�-Jt+27 SENT BYTTI Bellevue ; 9- 4-02 ; 4:50FM ; FT1 EWIROn, SVC.g.- 2064470215;* 4/ 6 Ms. Arvilla Ohlde Sepw nber 4, 1992 Page 3 Anderson, the tide used to come up into the rite:.} The Ande.ons built the marine railway, the small dock, and the previously described buildings. Prior to 1963 the Andersans were involved only in the renting of boats. The family expanded the husine~%a to include boat sales and service in 1963. According to Mr. Anderson, the boat repair operation has nevar included =ding or painting of boat hulls, specializing instead on engine service. The current Washington State Ferries dock appears to have been used as a fwy clock and landing for commercial vessels since the early 1900s. According to Mr. Anderson, the parcel immediately to the gauth of the Anderson Marine property was occupied at one time by Rudd laboratories. The; company reportedly manufactured fioot powder. In the 1930s or 1940s thr. Rude! Lubor=ry site was obtained by Merry Tiller, a manufacturer of farm tractors or rotodilers. Merry Tiller occupied die site tlntil the 19Ms or 1970s- Merry Tiller rented the southern most. (if the Anderson's buildings for storage for approximately 10 years. The area east of Railroad Avenue wnsisted of a wotlands in the 1940a and 1950s, but Was gradually been developed for retail trade, restaurants_ and ferry access and parking. Remnants of these we lands remain to the southeast of the site. Potential Hazardous Materials Sites A review of Ecology and EPA lists of potential hazardous waste sites identified only three such sites in Edmonds. Two of these sites are located more than 1 mile east of the site and the Unocal tank farm is located 0.5 mBa south of the site. There are several underground storage tanks regixtcrW will~ Ecology for the downtown Edmonds area, and two along the: w-dtrxfront to the south of the site (including one 21 the Port of. Edmonds). There do wet appear to be any registered underground storage tanks (in the properties immediately adiacent to the site. Ecology'% list of registered underground storage tartkg dory include the two 1,000-gal tanks on the Andamon Marine prop". According to the hwzntory, the tank.% contained unleaded fuel and are permanently out of service. The nearest RCRA waste generator to the site is the Edmonds Dry Cleaners at 102 Tltlyd avenue Soutlt, which is four hlocits east of rile site_ Fmdinp and Recommendations The findings and recommendations resulting from this audit are surumarized below; ■ 'More is little or no L►owntial for nearby identified hazzudous materials sites, registered underground storage tanks, or listen waste generators to affect the subject property. if any of the registered underground Nturaee tankb locate%.' uphill of the site have released significant quantities of fuels to local groundwater, the Anderson Marine property, along with many other site:;, could be affected. ■ The presence of the two underground storage tanks and the one fuel oil tan'_ at the Anderson Marine property poses a potential environmental liability. PTl recommends that the voraenta of the.%e tanL4 (if any) he reanoved; the tanks ex0vatod, removed, and closed in acco,dance3 with state law~; and any contaminated soils be excavated at the time of the tanks closure. Soil samples inns[ be wllmed at the time of tank closure to document the effectiveness of the removal. Oil and/or oily water has been released to site soils near the catch basins and at the ❑utfail of the onsite swrm sewer. PTl r"ornmends that the entire drain system be excavated and visibly oil stained soils he removed for trearinent or offsite disposal. Confirmation sail sampling should beconduettW to verity the effectiveness of the cleanup NIIE-09250 - 8d10vue,MehingMnQ4W7 0 r2%1543-W3 ■ F1X;2o6)6430827 SENT BY:PT1 Bellevue 9- 4-92 : 5:00P61 : PTI ENVIRQN. SVCS.-+ 2064470213;9 5f 6 Ms. Arvilla Oblde September 4, 1992 Page 4 Proceeding directly to site cleatuip allows for efftw iva and thorough remediation of o91 stained Solis. Any program of soil borings or sample% may miss ridden areas of contamination, including leaking storm drain pipet. Also, this is a relatively inexpensive process as the storm drain pipes appear tit be < 2 ft below gr[rund surface. A cuch basin located to the west of the Anderson Marine shop and warehousc huildin s may not discharge to the saute onsite storm drain as described above. Because die PTI inspector was unable to locate the outfall for this drain, PTI recommends that a dye test be conducted to detemina the location of the outfall fur this catch basin. Once the outfall is located, soil sampling or soil renwvaI may he necessary. Dye tenting could be conducted by two people in half a day and would require a source nr fresh wino. As this drain could connect to the axnitary sewer, the assistance of a crew from the Clty sewer and water department would he useful. ■ Numerous materials nee:e,Lsary to the osporation of the Andermin Marine business could posse an environmental hazard if nm disposed of properly. These items include small cans of parts cleaner, lubricants, and the 500-g�d waste oil taRk. To avoid Inelurring casts associated with the: prvper disposal (if these items, PTI Mommends that a prospective buyer require The seller to remove 211 such itenu from The premises prior to the elclsing of a sale agreemtrnt. r Several common building materials present at the site may contain hazard[)us materials. Cornirvsite roofing materials, vinyl flooring, spray -in t�;xtured Ceilings, and old gypsum board may conMin asbestos. These materials do not pose a threat when intact. but may require special handling and disposal procedures during demolition or renovation. Similarly, :old florescent light fixtures may contain polychlorinated biphenyls (pCBi) in the ballast portion of the fixCure. There has been little effort by environmental regulatory agencies to cordial the disposal of individual ballasts ilargo buildings containing hu„drexis of PCB ballasts are more obvious targets for regulatory attention). PTI recommends that all ttuanmcent light fixtures be examined, any ballasts that are not clearly labeled as "Idiot containing PCBs" be act aside in a smure location, and that a qualified waste disposal contractor be contacted tit facilitate the disposal of the potentially PCg enntaining ballasts LiimiWiotls This investigation wag limited to the ta.9ks described in the scope of work presented In PTI-9 letter dated August 14, 1992. This report was bated partially on infOrmiltloll supplied to FTI from outside sour= and other information that is, in the public doinalu. The conclusions mid rrac)mmandetious herein are based solely on the information FI'I Obtained in compiling the report, ❑ncumYrttatioit for the statements made la this report is on file at PTI's Bellevue, Washington, office. 1'11 makes no warranty regarding the RUWacy of statemnts made by any others that may be contained in this report, ni)r are :Iny warranties or guxranteos, expressed or implied, included or Intended by the report except that it has boon prepared in accordance with the mrrent generally accepted practicer and standards coniistent with the level of care and skill uzerclsed under similar circunismnc:eS by other professional c owulrant_s or tirms performing the sasrm or similar rarvices. lelorn►7 of the work perf4rmcd hereunder shall consiliute or be represented as a legal opinion Of any kind or nature, but shall be a representation of findings of fact from rweds examined. PTI ENVIRC)NMF:N lk SERVICES ■ 7.53755E 301h Plamxe ■ Sulu L�no 2 BeMevuo, WcisNngMu 91W7 ■ j20fi) (911-5803 0 `AX (2(xi)fi43-%27 SENT BYTTI Bellevue ; 8- 4-92 ; 5:OOPM ; PTl SWIRON. SVC%.- 2064470215;# 6/ 6 Ms. Arvilla Oh1de September 4, 1992 page 5 We amreciate this oppmunity to work with the City of Edmonds. If you have any questions or concerns regarding this report or our recommendations, please do nor hasitate txi ca11 either. me or Walt S111cids ai (206) 643-9803. Respectfttlly, (frog Eawden Environmental Scientist 12IIC106=08 (asp®W S, IM VW a w/o ® imc a) cc: Walt Shlelds. PT! Rill Joyce, Ogden Murphy Wallace Fn ENVIRONMENTAL SERVICES ■ 1 FL975 EE 30th PIaCO 8 S+ke 250 ■ Uelkvue, OW07 r (2m) Fgg9803 FAx ('2(}Ei) 643 9827 8 9 n _ 1 9C�v CITY OF EDMONDS OFFICE OF THE CITY ATTORNEY 447-7000 FAX: 447-2015 M E M O R A N D U M CONFIDENTIAL DATE: April 28, 1992 TO: Mayor Hall and Members of the City Council FROM: John D. Wallace; Office of the City Attorney Ogden Murphy Wallace RE: Anderson Property Acquisition Status Report LAURA M. HALL MAYOR Subsequent to the last executive session, I again met with Mr. Anderson, his son and his accountant. After a protracted period we extended a revised offer of $1.9 million. Andersons were still in the $2,250,000 range. That meeting took place about a week and a half after the executive session due to the fact that the Andersons were engaged at the Tacoma Boat Show. About one week later, Howard Anderson returned my call and indicated that they were willing to settle for $2.17 million dollars. I indicated at that time that it was possible that the City might go to $2 million but, if so, that would be the absolute end of the dollars available, and if that price was not acceptable that the City would in all likelihood have to pass. I also advised Mr. Anderson that time was rapidly becoming of the essence as the City was receiving strong indications that the State might be intending to move for acquisition on this property, and that if he desired the City to come into the ownership, negotiations needed to be wrapped up. I did not hear from Mr. Anderson for approximately one week and re- initiated telephone calls to him, finally reaching him this morning, Tuesday, April 28, 1992. At that time Mr. Anderson indicated that they would sign right now, today, for $2.1 million under whatever terms were acceptable to the City. 2100 Westlake Center Tower, 1601 Fifth Avenue, Seattle, WA 98101-1686 • Incorporoted August 11, 1890 6 gictor ('itioc Intornatinnal — Ho4inan -1anan To review for the Council: the terms that have been discussed were an either/or situation for the City. There was the potential to totally cash the Andersons out if we received IAIC matching monies. If IAIC matching monies were not received, the City would pay $500, 000 down, with the balance payable over five or more years, at an interest rate probably in the neighborhood of 6-6.25%. The purchase agreement was going to be subject to the appropriate environmental audit being completed, including tests of the soils to ascertain whether or not any hazardous or toxic substance has been deposited on the property. We discussed obtaining an option for probably $1,000 to be applied to the purchase price, with the option to extend beyond the time that we would anticipate being notified of our successes with the IAIC grant applications. My recollection is that generally these are made public in August or September of each year. We have thus discussed an October 1 or November 1 option date. In the interim the City would have the authority to go upon the premises and conduct whatever tests are necessary to ascertain whether or not there is any hazardous or toxic substance problems on the site. If environmental cleanup was called for the Andersons were advised that there would be a renegotiation, or the City would have the ability to step aside and pass on the purchase of the property. I believe the Andersons are still soft take slightly over $2 million to close that the matter could be brought to difference between the $2.1 million City. JDW/naa JDW19531.1M/0006.17053 on the $2.1 million. It may this out, but I would expect resolution by splitting the and the $2.0 million of the 9DEN UI�PHY 1■ � ,1 �� CE ATTORNEYS A T L A W DATE: TO: RE: �9L J OGDEN MUR$HY WALLACE BY MEMORANDUM OF TRANSMITTAL REC t 1 Y � i,.1 MAR 27 1992 Ewuhve Offices ❑ Seattle Office: 2100 Westlake Center Tower, 1601 Fifth Avenue, Seattle, WA 98101-1686, (206) 447-7000, FAX: (206) 447-0215 0 Wenatchee Office: 1 South Chelan Street, P.O. Box 1606, Wenatchee, WA 98807, (509) 662-1954, FAX: (509) 663-1553 THE CLARKE CONSULTING GROUP 100 Second Avenue S. • Suite 320 • Edmonds, Washington 98020 Telephone (206) 774-5954 • Fax (206) 672-1818 January 31, 1992 File 214033 Mr. Howard Anderson Anderson Marine 100 Railroad Avenue N. Edmonds, Washington 98020 Re: Review of Anderson Marine Appraisal Prepared by William A. Smith, MAI Dear Mr. Anderson: At your request, I have reviewed the above referenced appraisal for completeness of the report, accuracy of data, and reasonableness of analysis and conclusions. The attached narrative appraisal review includes a summary of my conclusions, indicating the adequacy or inadequacy of the various sections of the report. Thank you for this opportunity to be of service. If you have any further questions regarding this review, please call. Respectfully Submitted, THE CLARKE CONSULTING GROUP Real Estate Advisors Nicholas H. Veenstra, MAI r A I SUMMARY OF REVIEW Scope of Review A desk and field review was conducted. This includes a review of the document, as well as an on -site inspection of the subject property and each of the comparable sale transactions. Therefore, the function of this review is to determine whether the data was reported correctly and the value conclusion supported by the appraiser's analysis, logic and reasoning. Review Appraiser: Nicholas H. Veenstra Company: The Clarke Consulting Group, Inc. Date of Review: January 31, 1992 Designation: MAI Narrative Appraisal Valuation Summary Property Interest Appraised: Fee Simple Purpose: To provide an estimate of market value. Value Conclusion: $1,250,000 Date of Report: September 10, 1991 Date of Value: September 5, 1991 Appraiser: William A. Smith Designation: MAI File 214033 1 THE CLARKE CONSULTING GROUP Real Estate Advisors Summary of Review Compliance with Standards of Professional Practice of the Appraisal Institute The initial desk review focused on the report's general compliance with the Appraisal Institute's Standards of Professional Practice. In the course of investigation it was found that the appraisal report failed to comply with Standard Rules 1-2A, 2-2A, and 2-2J. A copy of these Standard Rules are attached. Additionally, the competency statement was not present, and the Certification was not adequate. As a result of these items, the report was found not he in compliance with the Standards of Professional Practice of the Appraisal Institute. File 214033 2 THE CLARKE CONSULTING GROUP Real Estate Advisors Summary of Review Appraisal Review In the process of reviewing the appraisal, several significant problems were found in the report. The first critical item is the description of the site (page 12). It is conveyed that the upland area is 45,129 square feet, according to the Snohomish County Assessor's records. Mr. Howard Anderson has a survey completed by Lovell-Sauerland and Associates, Inc. that shows an uplands area of 64,988. This factor alone has a major impact on value, and the market value conclusion of the report is therefore not justified. In the introduction to the valuation section (page 15) no information is provided regarding the method or approach taken by the author to estimate market value. No analysis is offered indicating the complexity in estimating the value of a unique commercially zoned waterfront parcel such as the subject. This is very misleading to potential readers. It is merely stated that nine sales of similarly zoned land in Edmonds, North King County, and south Snohomish County were researched. Of the nine sales used in the analysis, it is not mentioned that none are waterfront parcels. Furthermore, the range indicated by the comparisons is significant, from $5.97 to $27.27 per square foot. No discussion or explanation of this range is provided. The waterfront characteristic is discussed on page 16, in the presentation of the adjustment process. The author conveys the waterfront feature of the subject, in his opinion, would not contribute significant value because of the potential difficulty in developing the site, since it would closely be regulated by the City of Edmonds and the State of Washington. In my discussions with planning staff at the City of Edmonds, I found no reason to believe it would be more difficult to develop the subject parcel than any other similarly zoned site in downtown Edmonds, from the City's standpoint. The Shoreline Management Act of the State of Washington provides additional regulations, but these are common to all waterfront developments. Since the author's opinion is not corroborated by further evidence, it is not appropriate. As indicated previously, none of the first nine sales presented for comparison purposes are waterfront parcels. Additionally, only Sales 4 and 9 are located in downtown Edmonds. The remaining sales include three on Pacific Highway S., three in Lynnwood, and one in Mill Creek. Other than the commercial zoning designation, these remaining sales have little in common with the subject property. They are not located in Edmonds, have no view potential, and have wide differences in highest and best use in relation to the subject. Considering these problems, particularly the lack of waterfront sales, the conclusions drawn from the adjustment process are not justified. Subsequent to the initial sales analysis, the appraiser presents six additional sales, including the sale of The Regency on Edmonds Bay, an improved property adjoining the subject to File 214033 3 THE CLARKE CONSULTING GROUP Real Estate Advisors I ISummary of Review the south. The remaining five sales are non -waterfront parcels located in Seattle, within close proximity to Elliott Bay. In the analysis of the sale of The Regency on Edmonds Bay, the appraiser employs a generally accepted method of distributing value between improvements and land. However, this method is more appropriate when the improvement is relatively new, showing limited impacts of depreciation. The Regency, completed in 1982, is an older structure, with evident depreciation and deferred maintenance. The physical condition of the structure decreases the reliability of the extracted land value estimate provided by this analysis. Nevertheless, the appraiser places most emphasis on this comparable sale for valuation conclusions (page 21). This sale is also utilized to distribute value between uplands and tidelands (page A-11B). However, the uplands value is based on the prior conclusion of the subject's uplands value as estimated earlier in the report, and adjusted downward because of the subject's superior "visual exposure". This reasoning is highly illogical, since it is dependent on the value conclusion of the subject, which in turn is based on the analysis of the first nine comparable sales. In other words, the appraiser is distributing land value of the Regency transaction between uplands and tidelands using the previously estimated market value of the subject (based on the first nine sales) and in turn placing most emphasis on this particular transaction (of the second six sales) for valuation conclusions. Needless to say, although The Regency transaction is noteworthy, no emphasis should be placed on the value indication given the appraiser's analysis. Similar to many of the sales in the first group, the remaining five sales of the second group have very little in common to the subject property. Appraisal Review Conclusion Considering the number of problems associated with the appraiser's data regarding the subject property and comparable sales, as well as the appraiser's analysis of this data, the market value conclusion of the report is not sufficiently supported. Most noteworthy is the appraiser's on -site area calculation, and lack of waterfront sale comparables. 1 a File 214033 4 THE CLARKE CONSULTING GROUP 4 Real Estate Advisors a I N ri r IN Certification -Nicholas H. Veenstra, MAI I certify that, to the best of my knowledge and belief- - the facts and data reported by the review appraiser and used in the review process are true and correct. - the analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses, opinions, and conclusions. - I have no (or the specified) present or prospective interest in the property that is the subject of this report and I have no (or the specified) personal interest or bias with respect to the parses involved. - my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. - my analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice. - I did not (did) personally inspect the subject property of the report under review. - no one provided significant professional assistance to the person signing this review report. (If there are exceptions, the name of each individual providing significant professional assistance must be stated.) Nicholas H. Veenstra, MAI File 214033 W1 M PEAL ESTATE aPPRAISERS. CONSULTANTS Y.I. SMITH COMPANY & ANALYSTS =ORRORATE IO. NO. 91-1010697 16530 SHORE OR, N.E., SEATTLE, \NASHINGTON 9BI55-5631 [206] 363-7454 1/. ;'. SMITH. N/I. January 24, 1992 Mr. William J. Kasper, City Councilman City of Edmonds 505 Bell Street Edmonds, Washington 98020 Re: Anderson Property 100 Railroad Avenue Edmonds, Washington Dear Mr. Kasper: You have furnished me with the appraisal of the above property prepared by the Clarke Consulting Group, and requested that I critique that document for adequacy, accuracy, soundness of ap- proach, techniques and conclusions as to value. The appraisal document was very well written and prepared with abundant evidence of professionalism. A review of the document, however, revealed a few fundamental shortcomings. They are out- lined as follows: In the Site Description section of the report, on page 11, the Appraiser rounds up the upland estimate of 56,505 square feet to 60,000 square feet, a difference of 3,495 square feet for an increase of slightly in excess of 6%. While this does not seem significant, at a $27.50 per square foot land value, this rounding represents a nearly $100,000 land value bonus. In estimating land value by the Sales Comparison Approach, it is noted that the Appraiser used four sales and one listing. Comparable Sale No. 1 is located at a "prime commercial in- tersection in the Edmonds City Center" a -rid yet the Appraiser considers this property to be 30% (upward adjustment) infe- rior to the subject as to location as noted in table 4, the Comparable Sales Adjustment Grid. It is my opinion that Com- parable Sale No. 1 is at least 30% superior to the subject from a location standpoint, therefore requiring a downward adjustment, not an upward adjustment. Comparable Sale No. 2 is a listing and not a sale but the Appraiser failed to adjust for this fact. Real property to Mr. William J. Kasper January 24, 1992 Page Two rarely sells for its asking price. It is interesting to note, that this property has been on the market for nearly two years, suggesting the price is too high and/or economic conditions are not favorable for near term development. Comparable Sale No. 3 's a good comparable since it is a waterfront paice ated near the downtown core of Winslow, similar to the subject, but the analysis of this transaction is in error as in Comparable Sale No. 1, because of location. The Appraiser utilized an upward adjustment of 30% on this sale, suggesting this sale to be 30% inferior to the subject property when in fact the two sites are somewhat comparable from a location standpoint. Comparable Sales No. 4 and 5 are located in the south Lake Union area, clearly a vastly superior location as compared to the subject property. The sites are close to downtown Seattle, near access to Interstate 5 and have greater activ- ity than the subject, yet the Appraiser rates these sales as only 10% superior. Additionally, Comparable Sale No. 4 has a 10% upward adjustment for market conditions, with a sale date of June of 1990, while Comparable Sale No. 5 has an upward adjustment of 35% for the sale dated June of 1986. In making percentage adjustments, the comparable sales are always adjusted to the subject. Attached to this letter will be found my abbreviated Comparable Sales Adjustment Grid utilizing the adjustments made by the Ap- praiser except for market conditions, location and recognizing an adjustment for size as well as reliability as to Sale No. 2, since it is a listing rather than a sale. It will be noted that the ad- justed price per square foot of these five properties, after hav- ing been adjusted to the subject, range from $13.52 to $28.51 per square foot. The Appraiser appropriately valued the subject property by the Land Residual Valuation Technique. As explained in the appraisal, this technique hypothetically constructs a building on the site conforming with.Highest and Best Use, estimates rents and expenses and capitalizes the resulting net income into an indication of value for the whole property. By deducting an estimated cost of the building improvements, the left over or residual represents value to the land. This technique is frequently used as a "support" for land value estimated by the comparison approach, and is almost always used in estimating land value where comparable sales are limited or non existent. In theory, this technique is sound, however, too many assumptions must be made to consider this Mr. William J. Kasper January 24, 1992 Page Three as a reliable technique. Knowledgeable investors do use this technique in one form or another, but typically consider a much more conservative approach, primarily in the estimation of rental rates, vacancy, landlord expenses and a capitalization rate.`.The Appraiser's analysis was quite optimistic considering the current economic conditions in the Puget Sound area, which has'an abun- dance of office and retail space competing for tenants. These concerns should be reflected in vacancy rates and the overall cap- italization rate. The Appraiser's calculations considerian eighteen month holding period for development and -rent -up, which at this time appears to be inappropriate. Following will be found my abbreviated Income and Expense State- ment utilizing the Appraiser's projected rents for retail, restau- rant and office space, but making adjustments in the vacancy rate to reflect current market conditions. It is noted that the net operating income is approximately $50,000 less than the Apprais- ers. Following will also be found a range of values utilizing an operating income of $787,500, and a 9%, 9J% and 10% capitalization rate. It is noted that the value range, after deduction of im- provement costs, is $780,870 to $1,655,000. Gross Income: Restaurant 10,000 S.F. @ $18.00 P.S.F. $180,000 Retail 20,000 S.F. @ $13.00 260,000 Office 30,000 S.F. @ $15.00 54_0, 000 Total Gross Income Less Vacancy: Restaurant 2J% $ 4,500 Retail/Office 10% 71,000 Total Effective Gross Income Less Expenses: Reserves $ 6,000 Vacant Expense @ $4.00 P.S.F. 21,000 Total $ 75,500 $814,500 $ 27,000 Net Operating Income $787,500 Mr. William J. Kasper January 24, 1992 Page Four Property Less Indicated Cap Rate Value Improvement Costs Land Value 9% $8,750,000 $7,094,130 $1,655,000 91% $8,289,500 $7,094,130 $1,195070 10% $7,875,000 $7,094,130 $ 780,870 After a careful review of the appraisal report prepared by the Clarke Consulting Group, and making corrections as deemed appro- priate and explained above, it is my opinion that a knowledgeable and prudent investor would be unwilling to pay no more than $1,250,,000 for the subject property. Should you have any questions, please feel free to call. Sincerely yours, r' Wm. A. Smith, MAI WAS/jl COMPARABLE SALES ADJUSTMENT GRID Sales Data Comp. # 1 Comp. # 2 Comp. # 3 Comp. # 4 Comp. #5 Identification 2nd & Main Henning Winslow St. Vincent Lone Star Price P.S.F. $27.78 $25.03 $21.80 $43.21 $22.23 Mkt. Condition 6/90 Listing 2/90 6/90 6/86 Adjustment 5% -10% 10% 10% 25% Adj. Price/S.F. $29.17 $22.53 $23.98 $47.53 $27.79 Location Adjustment -30% 40% 00% -40% -4G% Adj. Price/S.F. $20.42 $31.54 $23.98 $28.51 $16.67 Size Adjustment -10% 00% =10% 00% +15% Adj. Price/S.F. $18.38 $31.54 $21.58 $28.51 $19.17 Reliability Adjustment 00% -10% 00% 00% 00% Adj. Price/S.F. $18.38 $28.38 $21.58 $28.51 $19.17 Net Adjustment -37% 12% -10% -40% -31% CITY, OF EDMONDS 700 MAIN ST. • EDMONDS, WA 98020 • (206) 771-0230 • FAX (206) 771-0221 PARKS AND RECREATION DIVISION 8 g 0_ 1 9 -- March 23, 1992 Mr. Jim Greenleaf Schueler McKown and Keenan Inc. 1110 Cherry Street, Suite 300 Seattle, WA 98104 Dear Mr. Greenleaf: LAURA M. HALL MAYOR CONFIDENTIAL Enclosed is the original appraisal completed by the Wm. Smith Company for the Anderson property located at 100 Railroad Avenue in Edmonds. There have been conversations between the City and Mr. Anderson through the City's attorney, John Wallace, of Ogden Murphy Wallace of Seattle. Also enclosed is a supplemental adjustment revision letter prepared by the Smith Company. The original appraiser undercalculated the uplands property by approximately 20,000 square feet. Lovell-Sauerland & Associates, Inc., completed a survey map which is also enclosed; you will note the highlighted high water line. A copy of the most recent Interagency Committee for Outdoor Recreation (IAC) Manual #3 for Land Acquisition Projects is enclosed. (Refer to Pages 40 and 41, Appendix H & I). As we discussed on the telephone, the cost of your services is $125 per hour and the review could range between $1,000-1,500. John Wallace, our attorney, indicated that the Smith Company appraisal is a good report and would not be difficult to review. The attorney needs the review by Monday, March 30, 1992. He pointed out, though, that you need to talk with him directly prior to putting any official information in writing. He can be contacted directly at 447-7000. I will stay in close contact with you as the timing to meet the IAC approval for retroactivity prior to any offer is crucial. Sincerely, Arvilla Ohlde, Manager Parks and Recreation Division k cc Mayor Peter Hahn Bill Kasper John Wallace Incorporated August 11, 1890 • Sister Cities International — Hekinan, Japan March 20, 1992 Mayor Laura Hall City of Edmonds City Hall Edmonds, Wa. 98020 Re: Anderson Marine Propert, Dear Mayor Hall, L MAR 2 3 1992 Execubwo Offices As you may know, I have been iviLarme Property to developers or investors for the past three months or so, and have generated the interested investor which is now having their legal staff prepare an offer. I have shared the letter of intent with Mr. Anderson, and I believe that he sent a copy to you. My interest in this matter is twofold. First, as a resident of Edmonds, I would like to see the property developed as a park, if the City can afford the property. Secondly, if the client generated by BBS International purchases the property, I must share any real estate commission with them. Therefore, I would like to see the City purchase the property. If the problem is that of lack of funds, I may be able to help. I am now in contact with an organization out of Chicago that specializes in the purchase of properties that are of interest to cities, counties and state authorities. This firm will purchase and/or develop the property, and provide it to the governmental authority on a 20-year lease -purchase - option. The program is a 20-year lease at a rate that pays off the initial investment plus interest, and the City is then provided with the option to purchase the property for one dollar. If you would like to discuss this option, please call me at 774-5656. Please let me know if there is anything I can do to help the City with this matter. Sincerely;" Lt J `7rti Bruce L. yfe i r A NF .LYSTS COWPO',34TE 10. NO 51-10105a7 16530 S'--qORE DR. N.E., SEATTLE, WASHINGTON 98155-5631 (2061 363-7454 \NM. A. SMITH. M.A - I. March 17, 1992 Mr. William J. Kasper, City Councilman CONFIDFNTIAL City of Edmonds 505 Bell Street Edmonds, Washington 98020 Re: Anderson Property 100 Railroad Avenue Edmonds, Washington Dear Mr. Kasper: You have asked me to examine my value my appraisal of September 10, 1991, i land area, including an increase in t. the tidelands area. I understand tha- 1988, was done by Lovell, Sauerland ar a total land area of 103,011 square fe cated. I have not had an opportunity it is my understanding that it did not land and tidelands area, however, this accomplished by other means. You have valuation of September 10, 1991, reflec above. Following will be found a sched September 10, 1991, which were based up and the land areas requested by you. Total S.F. Land Area Uplands S.F. Area Tidelands S.F. Area Value. S.F. Uplands Tidelands 3 �9 d53 u� 1 t,nL —Ili-y1 Assumption 103,610 103,011 45,129 64,988 58,481 381023 $21.00 $21.00 $ 5.50 $ 5.50 Mr. William J. Kasper, City Councilman March 17, 1992 Page Two Appraisal Current 9-10-91 Assumption Total Value Uplands $ 950,000 $1,365,000 Tidelands 325,000 209,000 Total Land Value $1,275,000 $1,574,000 Based upon the current assumptions of 64,988 square feet of up- lands land area, and 38,023 square feet for tidelands area, a total value for the subject property is $1,574,000, say $_1 , 575 , 000.A- Should you have any questions, please feel free to call. Sincer r_Y_O urs`_1�11 Wm. A. Smith, MAI WAS/jl 7 � TO: FROM: SUBJECT: CONFIDENTIAL MEMORANDUM Wednesday, March 11, 1992 City Council William J. Kasper Councilmember ANDERSON MARINE PROPERTY KLQii1V U MAR 16 1992 EX80fi_v-e Offices The day after I returned from vacation, I had a discussion with Arvilla Ohlde regarding the IAC Grant for the Anderson Marine purchase. The only remaining item that needs to be performed is for our appraiser to incorporate the additional 20,000 feet into the appraisal that has i shown up in the survey, which has been recently included by the Anderson appraiser. It appears that our next step is to choose an agency of the State that ----- has an -appraiser who can review the two appraisals (this is required to be in the IAC application). That is why the City's appraisal has to coincide with the Anderson appraisal. Both Anderson and myself have agreed it should not be a D.O.T. Agency appraiser, as we feel it could present a conflict. Mayoress Hall has asked to become more informed on this and to date, since she took office, she has been kept advised through the Executive Sessions and other sessions. I feel that my part in this process will end once a price is set that the City is willing to offer on the Anderson property. At this time, as has been discussed amongst the City Council, that figure lies between $1.7 million and $2 million dollars, depending on what figure our appraiser comes up with once the added 20,000 square feet are taken into consideration. Anderson's appraiser has come up with a new figure of $2.5 million, up $250,000 in light of the additional upland 20,000 square footage. As you can see, we must therefore update our appraisal again. As to getting a third appraisal in light of the inclusion of the additional 20,000 square footage, that is yet to be resolved. I am concerned with the validity of the survey setting forth 65,000 square feet as being upland - there is no wall, only beach and water in the area along the ferry dock and both the bulkhead of Fishhouse Charlies and the Anderson building are 20 to 30 feet back. Jeff Wilson, Planning Supervisor, said the bulkhead, if one exists, becomes where the upland starts and this is something further we should look into before we make an offer. With these items complete, I feel my assigned job is over once we get MAI Smith's supplement to the original appraisal and once an outside Shoreline Consultant has determined where upland starts. I would also like to sit down with Mayoress Hall, Peter Hahn, and the City Attorney for the purpose of putting together an offer. I feel we will not get the IAC Grant necessarily approved this year for 1993, but regardless, we should buy this property within the term of this year and next year. It has been the policy of the immediate past Council, that the City's number one priority is waterfront purchase, which means waterfront purchase takes top priority over any other park acquisitions or improvements. I believe the City should purchase this property on a Real Estate Contract until an IAC grant can be arranged to pay for part of the costs. I don't feel this is a "Safeway" type of purchase, as the Anderson property would be designed for City Park use, which is also the Anderson families understanding and request. As you recall, the "Safeway" property did not have a use designated for it, partly in light of the ferry dock situation. The stipulation of using the Anderson Property for City Park use could also be spelled out further in a contract, and the Anderson Contract should also pick up residual rights they have on ferry dock purchases in 1951. I would like an Executive Session to discuss this further. This would depend, of course, if the updated appraisal is back, which should only take a week or so. I have a bill for $400 already approved for the critique of the appraisal, and I will have another bill for the supplemental to the appraisal, which was necessary in order for our appraisal to parallel Anderson's appraisal, in light of the addition of the 20,000 square feet. We may also want to hold back on a firm price until the Council has discussed what we feel is upland outside of tide lands, which is currently in question. WJK/bjm cc: Laura M. Hall, Mayor BBS Intematio Inc. March 4, 1992 CONFIDENTIAL Mr. Bruce L. Fyfe Prudential Preferred Properties 20115 44th Avenue West Lynnwood, Washington 98036 RE: EDMONDS MARINA PROPERTY 720 Olive Way, Suite 1025 Seattle, Washington 98101 U.S.A. Toln..G....,.. �'►n�i ins �.... Dear Mr. Fyfe: W, f /, c-6W As you know, we represent a number of acquiring a number of Seattle area properties. We have been asked to explore the feasibility of acquiring the property at the Edmonds Marina, adjacent to the ferry dock. Our customer feels that the price of $2,500,000 may be fair, if appropriate terms can be arranged.. We understand that the property must be used for marina related purposes. Please furnish us with a copy of the current zoning code and the additional aerial photographs and maps that we requested on the telephone. Also, will you find out about the availability of the office building next door? Thank you for your help, we'll look forward to getting a solid deal structured on this property. t rpgar Melvin I. Brady, CCIM t Principal and Designated Broker BBS INTERNATIONAL, INC. 890-199 DATE: TO: FROM: RE: i %L-%, _f v CL) CITY OF EDMONDS FF6 OFFICE OF THE CITY ATTORNEY Executive, Offices 447-7000 FAX: 447-2015 M E M O R A N D U M February 20, 1992 LARRY S. NAUGHTEN MAYOR Jeff Palmer, Council President; Bill Kasper, Council Member W. Scott Snyder, Office of the City Attorney /c`;!�:S Anderson Marine My understanding of the Council's consensus from Saturday, February 15, was that the Council intended to refer the purchase to the Planning Commission, sitting as your Parks Board for recommendation. My understanding, although my notes do not indicate this, is that the Council intended to request that hearing when a firm price was arrived at. To date, there is nothing in the public record regarding the purchase. The Council has authorized appraisal monies from previously budgeted consultant funds. Any actual sales agreement would need to be authorized in the course of a public meeting and cannot be binding until authorized for execution. In addition, the City Council would need to authorize the expenditure of funds designating the appropriate fund and, in the course of midyear adjustments, amend the budget to provide for the purchase. Bill should be sure the Andersons understand that the contract will not be binding until approved in open session. WSS/klt cc: Mayor Laura Hall WSS14205.1M/0006.9000 2100 Westlake Center Tower, 1601 Fifth Avenue, Seattle, WA 98101-1686 Incorporated August 11, 1890 0 Sister Cities International — Hekinan, Japan CONIF-2O'k w---"--Le M E M O R A N D U M December 3, 1991 TO: Larry S. Naughten Mayor FROM: Arvilla Ohlde, Manager Parks and Recreation Division SUBJECT: ACQUISITION FUNDS FOR ANDERSON MARINA Possible available fund sources: Snohomish County Conservation Futures: -Apply early 1992; funds available mid -year -Property must be for passive use; beach parcel qualifies; uplands would if marina function is eliminated -Land must remain for passive use in future; only option of removal would be a conversion where the City purchases another passive use parcel, then the Marina and beach could be sold in the future -Average amount given in grants two years ago was $150-300k, but there isn't currently a fund limit; total amount available in upcoming funding session $2,000,000 -This fund source does not have an application for "retroactivity", therefore, unless the County Council changes its policies, if the property is purchased today - the City could not get the money back after it applies and is successful in 1992 Interagency Committee for Outdoor Recreation (IAC) Currently, I have applied for a "Request for Retroactivity" which allows the City to purchase now and apply for grant funds in the future. The next application is in 1992, with funding available after the 1993 Legislative Session. -For beach access/water access projects the IAC will provide a maximum $500k match Aquatic Lands Enhancement (Department of Natural Resources) -Funds are available for waterfront access projects with a $75,000 maximum match The addition of all the possible options could range between $725 - $875,000. cc Peter Hahn Y 890-19q CITY OF EDMONDS 700 MAIN ST. • EDMONDS, WA 98020 • (206) 775-2525 PARKS AND RECREATION DIVISION October 31, 1991 Interagency Committee for Outdoor Recreation 4800 Capitol Boulevard, KP-11 Tumwater, WA 98504-5611 ATTENTION: Robert Wilder LARRY S. NAUGHTEN MAYOR RE: Anderson Marina Property Acquisition Edmonds Waterfront The City of Edmonds is looking at the acquisition of the Anderson Marina on the downtown waterfront. The City requests a waiver of retroactivity for the project, as the parcel is currently available. Please provide a response to the City on needed documents to allow authorization for the retroactivity waiver. Sincerely, juu�� 6b4tk-1 Arvilla Ohlde, Manager Parks and Recreation Division cc Mayor Peter Jack Wilson, Council President e Incorporated August 11, 1890 Sister Cities International — Hekinan, Japan b-1,r O A- - October 26, 1991 Memo To: City Council From: Larry S. Naughten Mayor Subject: Anderson Waterfront Property Just an update regarding the status of this property. I just talked to Howard Anderson and he informs me that he has ordered an appraisal. He certairnl wasn't happy with the one the City received and as soon as he gets his appraisal back he will contact me and we will continue to discuss the possible purchase of this site. lsn/db Suspense 10/10/91 BR ETT' T AI:: N--,�'T,TDAT -.1r1 __o , I, T - _ - --rT L'1' AI..I: � 1 .1 ....L y� _Y'J 1 .. ..'tY • 311 ��.: 1'`i � i`.1 3i'. � 1 li P i� ..a IY'I I—MUF• OF THE ORGANIZATION Tti':s B ackett.ti L.- wiing.. Yrsil.tl'-_iation is ;5. '__I''�atii ,;_'1 -South ��--- •' eleven 1 years ,T:-. TT:'.. TlTi1 ?• =7 Tip, ' 1f1- ( - _ E 1_ �E'S1•�"rlt==_ 1't'2 I.i1� I�3:a{s �1-: •:� `,.� �i=+.; _ ,: _Tr�':j'-_} iL•il �-�<v-_13_��� �_'i=�21i�-�`ll'=r==, YfifiTr'J�;�;[ Mountlake � -_ ;T,T-_ TT i i - - L , ntlak� Terrace ace �i.#li_} t�tii_+vv•�. v , �fl;jil�_'ill#-_11 l . =;1 .#l�j v _i.l'1!_if ,:_• :iYf-ncies and � the Edmonds li {fin School is is j o 3" evel'-_r _..{�_ +TTi�1.1!_' programs --,�� i �1"- y..=�ril--yi=_1 � li • �1 District y -�4 _• = _ _ �? >_•1 �_ :l ', _ "li ` 1 oriented to the shore and shoreline 1ore.n rslt:c; _'sJrvati_i activities. The L`=keM Landing Foundation, }; rju j r- T.T�-1 - r }�._ earned d ;-i r-ir`T---l+,r-il-ii - r. - - = a e t lr_ ��-=ll t-= YS _1�, u�_� _'�11._ �: _. 1. �'._•'�__._•1•� - __ _ _�1t..'1=- ill== respectable e viTi i j� g relationship p T,r� y, all local •^_•-�Ive +'3Y" e t;_fl levels- c-jur efforts -1 = t�. 4-1-_ �. rl-�if��, r.. �.'-_1.. 13v=SJ.i�. '�•ltly _�S -i--- G- .: rl'al__. 1 L <_ _ _lti.r produced the Edmonds- Citr, Ordinance that transformed the three public beagle llts marinesanctuaries. In an absolute CeiSY vie have saved Bracket 's L._diig L Beach and its f elan=d e'-cos T�tam-Ior rl�. ,. The k. e key to our ;}71i;r_i`:'s has been our certification icmotion as a non-profit i4 ifiTashin to State � �� Corporation � i iry 1r T � -, j C `y ,•-. - t our �e .-' i- +- rLT- - + -• � i - -' ,-, r: .i l•' IrJC L,.i"jr IJratlVrl �lfit.. ..- l�4J ,'`�_- � andt 4.=Ll.r i.±...:r_ Lc�:..1.,1 11i W3 }li +.J �i. _ 0 i c _1 Sl li 5t ,i # foundation. E. .ket 's T nd 1 {� V3T9r.datir•r +'_' _- rec—, ig ize '•-4-tf-3ty based { f � i• 11'f � �#_ 11-. Isle -3 laC?11-_rirl� 1 '_ill �_rtiL _ S_ �l i _' _. 1 •_ 7_ _=nityu'-'.�1• Tl:'�3': }- } �'-=J •_ -_} •�•li solid local cit!-Izet- f7-=uY�l�l:.'.t-r_}ii^_ ri+lanc al contributions arks TT:':lu. tier participation. _+ _ 14__a li v_..l A_•t•1 •_i 1:+. _ L-v__i_ _. _ a _i i "" The irr'l-' 't_ ' s Landing tSd+g FoT=l_;at1-+and t =Fr;.--1,1 'a,+ge' Pr—;gramre _Yj-`Trd as the very first i i the 5 fir' i-I T,=T^,_' 1 IT �'}l �`-nv i '+- 1' er t• 3 Protection tit L- '� _ r, it :'t recipient i =_Ll�= �t._ r. l .: �'._, _. _ 1 the Federal '� it _�li _y-.li�e_.� _ , Agency President's vi-r nt--,-'ntmil ot-,t ;:-w7arr + �.= et.i.-'- Landing Foundation i .;_, •_ fl _ r, _ E#i - 3 •- - yil �: 1 •- - - � •_�-:i.! r3 . �. L� y =-.--.- - - - - -. _•_f:.l.-_ i" -_ 3••_l.s. _.. I_ , :,T- I wA erecognized by, i e 1 " ti7 o i"7 -� i t e ' for olu rid i " t't 7- • nitt service. . , �� _ :, t. _ �_ ,; t_!.-: •_il-� _ _ Edmonds :-fi-�•� -_ i _ ,_,� �_,ta. _ :�. Ii� .-_ iii#ii�_.�`it:�:T C RREN T I ,jE� _T l;Te+ e T 'l i' . 1 T rT �i t' bring Willow w� e v l _ � ,�r �'t�ef �sil; T1Y1ttl the CityEdmonds ,1,� .t illy �� 1=1! ..-r�-.__ above *:•' riilin�_4 moving iii� :li~' J J. i��iil from 3 underground it iY - [ _ ` J _ �] more ,; .,' h � n pipe ._'rl_ establishing m-.: +. tra t:....�.T } Puget Sound. 77 14 = r Creek t- salmon -st a that T,M 1lil�_ l_l! �! Jt! �.j!',,;Y•i�.+` L•r? r'1 ;"�t- r5 1 1y_(_3 Y:' 1•`_; _I� -stream �%l• �1C) �.Y t}ir gh Union ail Marsh j'._ nor li ,t UNOCAL i+, z: ea4i,rv+, ea,_ It 4,i;w :.r.,-�t..-.,, rots: 1 ����_- L �s 1 just. t % Sll 1:.`_}11iL �11'-.Fs' l I. 11 _• Y:' Gill s'! 1� lld' i3 Puget Sound through Marina inn Beach via pipeline, actually precluding any evtldnce of salmon coming hack into 171i'llow Creek. 2. Together Twith the Citl.,} Tj:TIV plannee� anf,.�. complete .I the rebuilding of the } t :+ 'tLanding j ��.- vi a to ,nstr t o r, cost of 1 C i i l 1 r•- .t v . i 1 c Trask .tt . t�Tr �t ;� f �.elzlc�.. LL ! _� i ,,�:a% The fi._ �:_ �t-T-. ,�ffi._l'1 i 1 e1 n Tr C Capital n 1't`+o � LY±-trji e landscaping "_i f '-i s•+ lull. ,� 1 1 the 1t1' ,� Park -_��tj``lt_i Fund Accounts, =: _ ��iit�, 1.= v1�,a�1.�v, arid sit improvements tit ss st educational 1 og � `= ;-i;."-•', self-guidedt,�•1u1 C I.s t 1 ; i.`I,=,�jcb - L_s.�1as �r�.�r_.�n._ _:.-_� :r_. i �- =- -:� area. The etirnated COSt- Of these ll ,C•^Ir in-; 1rapr overnent=; is $ i _,i_:e:_Eiji All � �i this project i1 funded and in the proce-ss of completion. c.1 I'i:i__:iti ._ _ i llt:_+iii_ ir:3LL1i'._.� �.=c<_i 'ri1 •i. _!ice t�':+ii:_�il_� �1 L'i•� _ } �'ia�'}i`�:'i`+_=; s"�11 _ #i�=��'-_•i �-r J:yy � _ _ .-1 �,:1•-_ `�,L� i-r:-11 :l,t }11= _ tl,_r ==-}lF'r;' =1r it t_ } = t} 'ft tO FL.ks:-- t E14 + '_ # --_' :t• �J. 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Tliv ',�1L.2 it li-' ili lfal �,1 L1.La�' 111 �+ -,+y 11��_•al-_n, aiz �r1r as �,1ioIr 1 { !-' O FY0" TT;a rji_i1�- 1� Tty }�-3 t Y 4: f L-i�T-{7F} TT3-+:l}- f- i +, } i_ 1•YIi• =•i i _ufi { 1. I _ll tS 1rsll ii tir'?'Xii:i i T : , r. F'ROPL, SAL FOR A BRACI2TT"7 Lr4NDINIQ [=- Nl-F�TNDED PROJECT 1. r i ' T r•- 3- .� +_ i i it t- i. �. Construction o �. salt w-atai :�'luarit m, `l feet higli 4i�� to fee v-',ide 1_}ar 1 inches deep, �;;; be placed the North' i h - ll l i } the -. L - �_4. T, g = t 111 �1 it 11 i 1C' LCii it 1'•.711Ck �Ht'Cl'-_i�ivarters-1 }building,. Tile Cite; '.'1 Ed iL nclis C_?� ervelc+ }ilii? Beach i��=?nuer .Station HEa.?_�rivartk r o C e ut?jiC in 199. � t t i' T1Yi_3?7 (}�' ;� foc �_o for 1 =- �' : 1� _ 1_ The 1.:�"::+ _1=�#i 3 -- i = -_ s j1 ,+�_• point �, beach t'�!��r_, ?�al'1_--`-'e 1_ii't?11�:�-tion '�l' lr #�=3i1t,'L!-?j!, ="-?�l'catitcunaj liii'•_'i'1i�atinil and environmental displ?TTS- The aquari1?#T? T--A11 be •placed at this location for rirw1#1= #"':s'#Ii t.1i� i:'1JT_iQ, fir ins de C?(� casual .1 Visitors, student groups, families and persons + l-il -r at the•_ #Tr of Edmondsc1! 1iit State Fishing PiQlr i#iirtiedi:i.te y fi 1 t1i ti' '=t. ii ii iea c 1. _it I'� :li,il� it#i T17 ivar +-- ril �] T Ht Y- i- } i )ILE -- ti- 1+N C ,r ii :� 1:.und i+- t'I�LJ.�_li,aili v511i i1!=' ,=y�.t..7l�lifll '1':i�l r.,i,�riilll�.tli Lir�r�.lill111J �,.11i�i. iil �-.r�JLilil il! _ ] _ f 1€ a.Lllll #i•J4S i-iJ•s'1 ti.? ai i _E'1vli. -Z 3. Vi 2. The aquarium whil sem s am educational tool tio lbrU-c-:--ed ill I i th:-- Eo�,%�:v,'-h� to h..-Ty vAII be directed to comm,,-iriit-,i- grc-,ups a2z-s-embled at the Headquaiters Teaching -.-A-jout a sense for the shoreline and the creatures that are found there ;--and help these li---stener-s understand the importance of these commiloin. marine orgardsms ty) the ecosystem of Puget Sound and the importance bo m:ariss ,,7 tfa,-e of a balanced sy,st�--m and a clean shoreline as wil as a health--,.- P-Liget Sound Brackett's Landing Foundatio-n is confi&,nt th---at informed citizens AH W'-- the best protection for a health�,T Puget Sound- ERREAKDOW-N CO'STS A. The costs of the construction of the aquarium are: !.Pumps- S i500.00 2 7ank- 2,000.00 Qquipment- 5.000.00 42'lumbing and Ele1,:tricity- 3, 0 0 0 B. The f urther costs of this; proj ect are: I.Maintenance (translat 1-1 into 3f-,c-:. days times 2 hours per day part- time emPl07eeI16-00 per hiourl or. professio-nat --:--ontract-) Prof essional Services 10, 0 0 0 0 0 (M y ears) Repairs 2000.�O (t-WO years) The sit-, of Edrnonds has listed the aquarium in the Capital Improvement Program and designated $8,000 for the project. These funds wdil be dedicated to the cost of capital construction for this proj ect. TOTAL [TRAIT REQUESTED 1. 14; �-,, 0 0. Cj 0 TOTAL COST OF PROJECT, $22,600.00 Includes the share from the City of Edmonds OTHER GRANTORS SOLICITED FOR ECT Puget Sound Batik First I.-atersta-te Bank of Fouridation Seattle Foundatiorn N.C. Machinery of Seattle 'Boeing Good Neighbor Fund Pioneer Batik of Edmonds EXIST; WALL, f�xi4oti6r �f�4 mC,-�Iz- x �TAT1oN 517� I'IA @ aYMPia ems+ �iFFINCT 71SfLjN W/ (u%m�l oYfw- pwzle NEW ENIMANLE Ir1 . ........ . - �...-_.�_-. ... YG GASPER ALOHA W BRACKET V I.I .. :. � -^ LAN:PiNG � CAKOI Y EDMQNDS-E. BEACH — IJliDERWATER • c LIEN ST PARK fay t z �•.:'',. tips DALEY . y �(�� .1�, r SPRAGL E ST Jr. migto P � r 2 sl i Ptart•la t } . 04 �er'k I p -Tp r Station t t�f — BEACH- 1 _ ~ 'j� �] �►�lry� vy {.a Depot ifc h ! MAIN STPrTt ON is • AYTON DST < MARINA Sewage y 21.05• C o .. w Teeatment� 0 WWI < MAPLE Plant h ALDER z == O st DS wououirE ST _ = c ALDER %o SAACTUARY o WALNUT' AfARINA'•.'= � v �`:•• � SI.eII r�rr DR r =: x� r mom D W CITY : Ci,i,il w [- DR r BEACH— PARK 44EMLK wY ' UNION OIL .14 •• ERBE SEAMM ONT L Or r Q+ n OR = .o EDWAROS 215TH sT S w _�� ;.ri t,INE ST POINT WOOUWAY CITY LIMITS W r H P" v u FORSYTH LN i '< _.. a •.ia September 27, 1991 MEMO TO: FROM: SUBJECT: CONFIDENTIAL City Council Larry S. Naughten Mayor ANDERSON MARINE PROPERTY I met with Howard Anderson, his son, and his attorney today to discuss the appraisal, as we had planned to do. They were of course very, very disappointed with the appraisal we came in with. (The final was $1,250,000.) They indicated they had an appraisal several years ago that was $1,900,000 and certainly felt that the appraisal the City had received was not realistic. I told them to reevaluate their previous appraisal (see what basis it was formulated on), to perhaps think about getting a new appraisal on their own, and then give me a call and we will talk some more. I indicated to them how important the appraisal is in order for the City to secure its financing on any grants, and they understand that. I will keep you informed. lsn/db CITY OF EDMONDS LARRY S. NAUGHTEN MAYOR CIVIC CENTER • EDMONDS, WA 96020 • (206) 775-2525 OFFICE OF THE MAYOR ,890-194 September 5, 1991 Mr. Howard Anderson Anderson Marine 100 Railroad Avenue Edmonds, WA 98020 Dear Howard: According to our contract with the appraisal firm, they are supposed to have the appraisal back on your property by September 16. I just wanted you to know. Sincerely, CITY OF EDMONDS f`rr�r en yor lsn/db cc: Edmonds City Council • Incorporated August 11, 1890 • August 23, 1991 MEMO TO: File FROM: Marlene SUBJECT: APPRAISAL OF ANDERSON MARINE PROPERTY The Mayor requested I contact Wi l l i sm Smith (353-7454) and tell him to proceed with the appraisal of the Anderson Marine Property because the contract had been approved. I left a message on his recording on 8/23/91 at 1:15 PM. He returned my call on 8/23/91 at 3:20 PM, calling from Friday Harbor. He said he will begin the appraisal on 9/2 or 9/3, when he returns from vacation. Jackie said she mailed out the signed contract to him on 8/21/91. AM. °'- Time �.' rr E YOU WIERE OUT of !r Phone Area Code Number Extension TELEPHONED �. ' I PLEASE CALL CALLED TO SEE YOU WILL CALL AGAIN WANTS TO SEE YOU URGENT RETURNED YOUR CALL me,ssage � r.y Operator �AMPAD as a REORDER ® EFFICIENCY®��r "'000 CITY OF EDMONDS CIVIC CENTER • EDMONDS, WA 98020 • (206) 775-2525 890_19y August 21, 1991 Wm. Smith Company 16530 Shore Dr. N.E. Seattle, WA 98155 Dear Mr. Smith: LARRY S.NAUGHTEN MAYOR Enclosed is an executed Contract for Professional Services authorizing you to appraise the Howard Anderson property at 100 Railroad Ave., Edmonds, Washington. Very truly yours, JACQUELINE G. PARRETT, CMC Edmonds City Clerk Encl. e Incorporated August 11, 1890 . C�CflJ.' �i4�oc Tn4orr�a 4inn al 1-TnLiv��v+ .T�'+�.+ CONTRACT FOR PROFESSIONAL SERVICES THIS AGREEMENT made on August 31, 1991, between THE CITY OF EDMONDS ("Client") and WM. SMITH COMPANY, 16530 Shore Dr. N.E., Seattle, Wa. 98155 (206) 363-7454 ("Appraiser"), agree as follows: 1. IDENTIFICATION: Client hereby engages Appraises., and Appraiser hereby agrees to appraise that property more particularly described as: 100 Railroad Avenue, Edmonds, Washington, with a legal description as follows: Parcel A: That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the northwesterly production of the southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the westerly line of right-of-way of Great Northern Railway Company, thence southwesterly along westerly margin of said Great Northern right-of-way 17.86 feet to the TRUE POINT OF BEGINNING; thence north 66 degrees 08' east to a point of intersection with the inner harbor line., said point being south 45 Degrees west, a distance of 56.43 feet from the southwesterly margin of the northwesterly production of Main Street; 'thence south 45 degrees west 26.67 feet; thence south 56 degrees 43 east 310.09 feet, more or less, to a point of intersection with the Government Meander Line; thence in a southeasterly direction to a point on the westerly margin of the Great Northern right-of-way which is 850 feet northeasterly on the south line of Government Lot 2, as measured along the westerly margin of the Great Northern right-of-way; thence northeasterly along the westerly margin of the Great Northern right-of-way to the TRUE POINT OF BEGINNING. Parcel R That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and the tidelands of the first class in front thereof, described as follows: Beginning at a point on the westerly line of the right-of-way of the Great Northern Railway Company 650 feet northerly (measured along said right-of-way from the south line of said Lot 2; thence northerly, along said westerly line 1 of the right-of-way, 200 feet; thence westerly at right angles to said right- of-way to a point in the meander line of of Puget Sound; thence north 56 degrees 43' west 315.09 feet, more or less, to a point on Inner Harbor Line; thence south 45 degrees west along said Inner Harbor Line 175.12 feet; thence south 51 degrees 57' east 330.28 feet, more or less, to meander line; thence south 49 degrees east to the POINT OF BEGINNING. All situate in the County of Snohomish, State of Washington. 2. PURPOSE OF APPRAISAL: Appraiser agrees to furnish two copies of a written appraisal for the purpose of estimating Fair Market Value as of cur- rent date. The appraisal shall comply with the Professional and Ethical requirements of the Professional. Appraisal Organization of which the Appraiser, or anyone employed by him to assist him, is a member. 3. AUTHORIZATION AND DATA TO BE FURNISHED: Client authorizes the Appraiser to inspect the premises and agrees to furnish Appraiser with all pertinent data which Appraiser requests in connection with the appraisal of the above described property. If special legal instructions are to be considered by the Appraiser, such instructions shall be in writing and the basis for such instruction in applicable case law shall be provided the Appraiser. 4. COMPENSATION: Clien'L agrees to pay Appraiser, services in ,between Two and appraising the above deje d property at a ee o Three Thousand $g2,0Dollars and no/100$3. plus any applicable state and local taxes. If the fee is to be � on an hourly or daily basis, the Appraiser agrees to pEaa keep and furnish accurate time records with the billing. Full payment of fee and expenses (Article 7) shall be on/or before delivery. It is understood I that the compensation herein is in no way contingent upon -the Appraiser's valuation conclusions. 5. COMPLETION DATE ESTIMATE: Appraiser agrees to use his best efforts to complete this appraisal by September 16, 1991. Said completion date is an estimate and does not take into consideration pretrial or court time, as well as delays beyond. the control of the Appraiser, such as illness, lack of specific necessary data and/or Acts of God. 6. TESTIMONY: In the event the Appraiser's testimony..is requested -for any legal proceeding, the Appraiser agrees to be available for such purposes provided he is given adequate notice. 7. LITIGATION: In addition to the appraisal fee, Client agrees to pay Appraiser for litigation, pretrial time or time spent in court or other pro— ceeding and related travel time to and from .Appraiser's office and the place of the pretrial, hearing or court. Client also agrees to pay all reasonable expenses in connection herewith upon receipt of an itemized statement. 8. COLLECTION: Client and Appraiser agree that simple interest of one per cent (1%) per month with a maximum of twelve per cent (12%) per annum, will accrue on any balance for compensation or expense reimbursement, due to Appraiser, and unpaid as of the date due. Client also agrees to pay Appraiser's reasonable expenses incurred in collecting all amounts due and owing under the terms of this Agreement, including court costs and reasonable attorneys' fees. 3 9. ADDITIONAL COPIES: Additional copies of the appraisal.report can be furnished at a cost of One Hundred and no/00 ($100.00) per copy. IN WITNESS WHEREOF, the parties have approved this Agreement on the date and year first above written, subject to the attached exhibits: ATTEST: 'Jacqueline G. Parrett, City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY 6, W4 � W. S tt Snyde CLIENT: CITY OF EDMONDS None By �1S hte a or 5 Bet Edmonds, Washington 98020 (206) 775-2525 APPRAISER: Wm. Smith Company By: /�& Its. 4 July 30, 1991 MEMO TO: City Council FROM: Larry S. Naughten Mayor SUBJECT: ANDERSON MARINE PROPERTY Today I asked for a cost estimate and tentatively ordered an appraisal on the Anderson property from William Smith who has just completed the appraisal on the Safeway property. As I mentioned previously, I was going to do this unless there was any objection. Mr. Smith currently has all the comparables in the area and has a good understanding of the waterfront based on his current analysis of the Safeway property. His appraisal would take approximately six weeks. Our first right of refusal with Mr. Anderson runs until October 12, so we are well within the time -frames required. lsn/db cc: Peter Hahn, Community Services Director REAL ESTATE \RRRAISERS, CONSULTAN IS & ANALYSTS WM- SMITH COMPANY CORPORATE IO. NO. 91-1010697 16530 SHORE OR. N.E., SEATTLE, WASHINGTON 9B155-5631 [206] 363-7454 WM. A. SMITH, M.A.I. August 1, 1991 Exec%:'ve Offices Mr. Larry S. Naughten, Mayor City of Edmonds 505 Bell Street Edmonds, Washington 98020 Re: Appraisal: Anderson Property Edmonds, Washington Dear Mayor Naughten: In accordance with our conversation on July 309 1991, you will find enclosed two copies of the Appraisal Contract, prepared generally in accordance with the contract earlier prepared by Scott Snyder. Should you find it to be satisfactory, please have executed as provided and return to me. I will then execute the contract on behalf of the Wm. Smith Company, and return a fully executed copy to you for your files,. Should you have any questions, please feel free to call. Sin urs, 7 Wm. A. Smith, MAI WAS/jl Anderson Marine Corp. Personal and Confidential Larry Naughten, Mayor City of Edmonds 505 Bell Street Edmonds, WA 98020 August 15, 1991 re: land and property comprising Anderson Marine Corporation Dear Larry: After many years of family ownership, my brother, James Gaulteri, and I have decided that nor is the time to sell our waterfront property adjacent to the Washington State ferry terminal in Edmonds, comprising Anderson Marine Services. As you will recall, you and I visited some time ago as to the City's interest in acquiring our property. In keeping with our family's desire, it is my hope that the City does, in fact, become the purchaser. Accordingly, at this time we wish to sell the property to the City. For our purposes, we desire that the purchase be split as set forth below. Owner Description Price Anderson Marine Corp buildings and improvements $335,000 James Gaulteri and Howard Anderson land and tidelands $2,100,000 In order to facilitate the sale, we are willing to take an extended payout on a portion of the purchase price. The Anderson Marine portion is to be paid in cash at closing plus a $200,000 down payment r-the land payable to my brother and me. The balance to be paid in \,/the faun of a Real Estate Contract payable monthly over ten years at ''t' 10 1/4-'interest. I am available, at your convenience, to discuss the purchase terms with you or other officials of the City. We would appreciate your ,presenting this opportunity to the City Counsel within the next 30 days. We will not actively seek other buyers during this period of time. In the event the City is not able to undertake the purchase, we would expect to offer the same business deal to the State or any other interested buyer. Thank -you for your attention. Cordially, Howard V. Anderson 100 Railroad Avenue North • Edmonds, Washington 98020 a (206) 778-3191 July 30, 1991 MEMO TO: City Council FROM: Larry S. Naughten Mayor SUBJECT: ANDERSON MARINE PROPERTY Today I asked for a cost estimate and tentatively ordered an appraisal on the Anderson property from William Smith who has just completed the appraisal on the Safeway property. As I mentioned previously, I was going to do this unless there was any objection. Mr. Smith currently has all the comparables in the area and has a good understanding of the waterfront based on his current analysis of the Safeway property. His appraisal would take approximately six weeks. Our first right of refusal with Mr. Anderson runs until October 12, so we are well within the timeframes required. lsn/db cc: Peter Hahn, Community Services Director July 9, 1991 MEMO TO: City Council FROM: Larry S. Naughten Mayor SUBJECT: ANDERSON PROPERTY We now have a 90-day first right of refusal for the Anderson property, signed by Mr. Howard Anderson, his brother, and the City of Edmonds. I will order an appraisal on the property, which is the first step we need to take, and we will go from there. lsn/db Treece, Ric h lolls, Mallon, Corning & Abbott ATTORNEYS AT LAW - A Professional Service Corporation 1718 Northwest 56th Street Post Office Box 70467 Seattle, Washington 98107-0467 Telephone: (206) 789-2111 Fax:(206) 782-1749 June 27, 1991 City of Edmonds Civic Center Edmonds, WA 98020 Attn: Mayor Larry S. Naughten Re: Anderson Marine property Dear Mr. Naughten: RECEIVED JUN 28 1991 aecutive Offices James V. Abbott Jill E. Bliss Nicholas F. Corning Britt Crennell Andrew Curtis Roberta E. Doyle Dale J. Galvin Gary Krohn Thomas W. Malone Gary K. Marshall David A. Richdale Mark Schoener Thomas M. Treece Of Counsel: James W. Abbott Karl B. Tegland Enclosed is a revised copy of "Right of First Refusal" which Howard V. Anderson will, upon your approval, submit to his co- owner, James Gualtieri, for signature. As the con deration tendered will be negligible, Mr. Anderson desires the processing time for any exercise of the option to be limited.j Please advise. Sincerely, J AamnesV. Abbott Enclosure cc: Ogden, Murphy & Wallace, Attorneys at Law Howard V. Anderson JVA/hg/Edmonds.ltr June 25, 1991 MEMO TO: City Council FROM: Larry S. Naughten Mayor SUBJECT: ANDERSON PROPERTY I talked to Howard Anderson late last week. His attorney is reviewing the first - right -of refusal offer, including the name of Howard's brother and all legal parties. I should have this document from Howard Anderson for your review on Tuesday, June 25. lsn/db rXHIBIT "A6' DESCRI Fr IAN : ur=L�L inGlttding tidelands, Section 231 That portion of Covernment Lot 2o Township 27 North. r.^naa 3 East, w.M. r described as 1011OWS 5eginning at a point for eorlvthe WGaorge Street, as 6hVwn Qnotht- PlstEOf margin of Hain Street, Edmonds, accordi.nq to Flat thereof wasMin4t4nr� 'Whcrrc said pxduction 26 r records of SnohQ;nish Countl r ht-of-Tray of Great Northarn $Lail►aaY intersects the Westerly. line of rl . y4e6terly "t9i.n Of said Great Companyi thence southwesterly along h the Northern fightpoint I7.85 feet to the true point of bnginningt thence North 56 008' Ee5t to aF min ; West tea idi tanceCof 56.42 On r�feet harbor f ram i he Bald paint being south n cf the Northwesterly production of M4An Street$ southwesterly marg thence South 45 ° West 25 ,57 f�*ets thence 5oath 56043 mast 310.Ijeander 09 fee f r�arg or lets. to a point c€ iritersectivn with theint�onnthetWesterly norer thence in a Sauthea.LQ:1y direction J. 6 Po margin he the Great N_,rthern right-cf-way which is 850 feet NortheasteriY verr ent ot WesterlY rig on the South line of Gari ;:tl-of-wcya thenceuNo thk sterlYealontoe margin of the Great Northern h'esterlY Bergin of thr Great riorcherr+ ht-ofto the true Point- beginning• 2ALULM t 2 ► Section 23, Township 27 North, Mnge 3 Gone rnment I,Q That portion ❑! the first class in €rant tbtret)i' Caste Womb and Of the tidelands 4f described as follows[ h line Of the right-of-way of the geginninq at a point vn the TneE��erXY i Ureat northern Rail the South 2t 6Sof f said et I ott21 thence $vortherly.galong r fight-Q£-.wad r irr�m raid Wraterly line ofthe right-of-way, xOD feet= tihence Weetesly a right angles to r�tid right+oi'raY Go A pfe t ie more oreander ng leasp tos point on Sound) thence North 56 4� west 315.09 feet, Inner exbox Liner thence So °57 ��Eests33p� 8 f e mc�r ero=a leaer ito 175.12 f*et; thence SoU..h meander line; thrnnce south 45" East to the point of beginning, PaX situlte in the County of Sncl-Omish, State of W shingtan. f�rrxai: V. Andf'r':��n• .lr. CITY OF EDMONDS LARRY S. NAUGHTEN MAYOR CIVIC CENTER • EDMONDS, WA 98020 • (206) 775-2525 890-199 May 22, 1991 Mr. Howard Anderson Anderson Marine 100 Railroad Avenue Edmonds, WA 98020 Dear Mr. Anderson: This letter is to notify you formally that the City of Edmonds is interest- ed in purchasing your property at 100 Railroad Avenue in Edmonds, Washing- ton. The City is requesting a ninety -day, right -of -first refusal to purchase. This option will give the City sufficient time to have an appraisal made and do the necessary analysis required to proceed with the purchase. It is understood that once the agreed purchase price is negotiated, your preference would be for a down payment of approximately $500,000 and for the finalization of the purchase to take place approximately two years from the date of the purchase agreement. We will be retaining our legal firm of Ogden Murphy and Wallace to repre- sent the City in our purchase process and proposals. Sincerely, CITY OF EDMONDS 4or.a ite LSN/db cc: Edmonds City Council Scott Snyder, City Attorney Incorporated August 11, 1890 RIGHT OF FIRST REFUSAL THIS AGREEMENT is entered into between Howard V. Anderson, Jr. as his separate property, hereinafter referred to as "Owner," and the City of Edmonds, a Washington municipal corporation, hereinafter referred to as "Edmonds." WHEREAS, the Owner is the owner of certain real property located at 100 Railroad Avenue, of Edmonds, Washington, and which is more particularly described on Exhibit A as Tracts A and B attached hereto and incorporated herein by this reference as if set forth in full, and WHEREAS, Owner has agreed to grant Edmonds a first right of refusal to purchase the property in the event that the Owner receives a bona fide offer of purchase within the period specified below, now, therefore, FOR AND IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Right of First Refusal. If the Owner at any time during the term of this Agreement or any renewal or extension thereof, receives a bona fide offer to purchase the property which is legally described on Exhibit A attached hereto and incorporated herein by this reference as if set forth in full, which offer the Owner desires to accept, the Owner agrees to give Edmonds ninety (90) days' notice in writing of such bona fide offer, setting forth the name and address of the proposed purchaser who has made the offer, the amount of the proposed purchase price, and the terms of payment thereof. Edmonds shall WSS53353A/0006.200.030 -1- KCH/mis 05/31/91 have the first option to elect to purchase the property described in Exhibit A by delivering to the Owner a written offer to purchase the property for the same or better price on substantially similar or better terms as set forth in the bona fide offer within the sixty day period. If Edmonds delivers such offer to Owner, Owner shall accept said offer of Edmonds and the parties shall proceed to close the sale within ninety (90) days by either outright purchase or a long term sale contract. In the event that Edmonds does not exercise its option to purchase in the manner set forth above, within the time stated, then Owner may proceed to sell the property pursuant to the bona fide offer; provided however, if the terms of such sale vary from the offer presented to the City, then such revised offer shall be presented to the City in writing, and the City shall have the option to elect to purchase under the revised terms in the same manner as set forth above. In the event that the Owner does not sell the premises pursuant to the bona fide offer for any reason, then Edmonds shall have, upon the same conditions of notice, the continuing first option to purchase the property upon substantially similar terms of any subsequent bona fide offer or offers to elect purchase during the term of this Agreement. 2. Consideration. As consideration for the grant of the rights set forth in Paragraph 1, Edmonds has paid ten dollars ($10.00) and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Owner. WSS53353A/0006.200.030 -2- KCH/mis 05/31/91 3. Term. This Agreement, and the rights prescribed hereunder, shall become effective as of the date the last party signing this Agreement executes the same, and shall terminate 90 calendar days thereafter. 4. Binding Effect. This Agreement shall constitute a covenant running with the land described in Exhibit A and shall be binding upon the parties, their heirs, executors, successors in interest and assigns. 5. Recording. This Agreement shall be recorded with the Snohomish County Auditor. Recording shall be done by Edmonds at Edmonds' sole cost and expense. EXECUTED by each party upon the date set forth under their signatures below. OWNERS: Howard V. Anderson, Jr. as his sole and separate property CITY OF EDMONDS: By: Larry S. Naughten, Mayor ATTEST/AUTHENTICATED: City Clerk, Jackie Parrett APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: WSS53353A/0006.200.030 -3- KCH/mis 05/31/91 STATE OF WASHINGTON ) ss COUNTY OF } I certify that I know or have satisfactory evidence that signed this instrument and acknowledged it to be his free and voluntary act for the purposes mentioned in this instrument. DATED this day of 199 NOTARY PUBLIC My commission expires: WSS53353A/0006.200.030 -4- KCH/mis 05/31/91 April 3, 1991 MEMO TO: City Council FROM: Larry S. Naughten Mayor SUBJECT: ANDERSON PROPERTY I just met with Howard Anderson and talked to him about the proper- ty. He says he is going to be getting together with his accountant and attorney to work out a time -table. He will get back to me with that schedule so we can proceed toward negotiations. Just as in the case of Alaska Northwest Publishing property, there may be certain.ways that he can sell to his advantage tax -wise, and that is what he is pursuing. He may wish to sell the property and stay on it for a certain period of time, leasing it from the City until he relocates his boat sales/service operation. I should hear within a week from him on a more definite time -table. LSN/db C-181 ' Or TICOR TITLE INSURANCE Commitment for Title Insurance CCUMit nletnt No. : F-284038 Effective Date of Commitment: DFCEKBER 3, 1990 AT 8:00 a.m. Customer Reference : BRACf IS LANDING PARK Prepared for: CITY CF EDHONM 700 10" ST. r 2MIM 98020 Attention: PARR i RD IQld DIRDC rOR Inquiries should be directed to: Ticor Title Insurance 3101 Colby Ave — P.O. Box 750 Everett, Wa 98206 ATIN: BRETT BOItPON, TI'ITE OFFICER — UNIT 3 ATIN: MICHELIE MARCANIEL, T= SECREIIARY ATIN: ... Telephones: (206) 259-4111, south area 743-3621 or eastside 455-5323 FAX (206) 339-1303 TICOR TITLE INSURANCE COMPANY OF CALIFORNIA, (a stock company), a California corporation, herein called the Company, for a valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Sched- ule A, in favor of the proposed insured named in Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed insured and the amount of the policy or policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of this Commitment or by subsequent endorsement. This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate one hundred eighty (180) days after the effective date hereof or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue such policy or policies is not the fault of the Company. F-284038 TICOR TITLE INSURANCE COMPANY OF CALIFORNIA By President Attest �� Secretary - 1 - American Land Title Association Coff"ment — 1966 1. Policy or policies to le issued: American Land Title Association g'SePOLICY (10/21/87) Covera: STANDARD LIABILITY ITT : $15, 000.00 PREMU M : $300. 00 TAX : $23.70 10,04iiw1)MoQ\� 1- .'MI 2. The estate or interest in the land described or referred to in this carrcutment and covered herein is a FEE SIMPLE ESTATE. 3. Title to said estate or interest in said land is at the effective date hereof vested in: THE CITY OF EMONQS, A MUNICIPAL ❑7RPORATIoN. 2 - F-284038 4. The land referred to in this ccmitment is located in the County of SNOHamim, State of Washington, and described as follows: - 3 - F-284038 I. The following are the requirements to be ccmplied with: A. Instruments necessary to create the estate or intPxest to be insured must be properly executed, delivered and duly filed for record. II. Schechde B of the policy or policies to be issued will contain exceptions for: A. Defects, liens, er<='brances, adverse clams or other matters, if any, cTi2ated, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this co=atment unless the same are disposed of to the satisfaction of the Company. B. The Standard Coverage Policy/Policies applied for will contain as exceptions in Schedule B thereof, those particular standard exceptions which are printed on the last page hereof, and more particularly identified as: A TO J C. SPECIAL EXCEPIrtONS: The policy or policies to be issued will contain exceptions for the following matters unless the same are disposed of to the satisfaction of the CcqDarny: 1• NO`1`E: The abase captioned description may be incorrect. Inasmuch as the application for title insLr e contained only an address or an i-il.ete legal description, verification of the above captioned legal description should be made by all parties to this transaction prior to closing. Please contact us prior to closing in the event there are to be any changes in the above captioned description. 2. I OF 1 PROPERTY SEA' ■171! HEREIN " MSI8DI ■ OF •• .91" • it ' E•' }. :Ili • ! i • '. OF • I i■. IPANY FOR THIS TTITE 3. AN FASEMEW affecting the portion of said premises and for the purposes stated herein, and incidental purposes. For : A DRAINAGE SYSTEM In favor of : STATE OF WASHINGIM Recorded : APRIL 16, 1971 Auditor's no.: 2192627 Affects : POMON OF PARCEL 1 - 4 - F-284038 4. AN EASEMENT affect" the portion of said premises and for the purposes Stated herein, and incidental pu poses. For : UNDERGROU D FDIC TRANSI M%ION AND DISTRIBUTION LINE, TELEPHONE CStq4]NIC A=ON WIRES AND OTHER NECESSARY OR CONVENIENT APFUFdINANCES In favor of : PUBLIC UTILITY DISTRICT NO. 1, OF SNOHOMIISH COUNTY AND GENERAL TELEPHONE NE COMPANY OF THE NO TT, INC. Recorded : NOVEL 14, 1974 Auditor's no.: 2364714 Affects : PORTION OF PARCEL 4 (E) 5. EXCEPTIONS AND RESERVMONS contained in deed frcm the State of Washington whereby said grantor excepts and reserves all oils, gases, coal, ores, minerals, fossils, etc., and the right of entry for opening, developing and working mines, etc., provided that no rights shall be exercised until provision has been made for full payment of all damages sustained by reason of such entry. Auditor's no.: 134638, 214106, 222236, 240781 AND 2036755. (AFFECZS PARCEL, 1 WEST OF MEANDER LINE, EXCEPT SOUTHERLY 33 FEET, MORE OR LFSS, ALL OF PARCELS 4(A), 4(C), 6 AND 7) . NOTE: IN SN KHISH 00JNri'Y SUPERIOR COURT CAUSE NO. 96942, A STI'IPUTATED JuDMM WAS ENTERED JUNE 9, 1969 WHEREIN STATE OF WASM2VIlON STIPULATED THAT CITY OF FONDS APPROPRIATE PARCELS 3 AND 4(F) IN FEE TNCUJDING ALL MINERAL RjanS AND THE MINERAL RIOTS TO PARCELS 4 (A) AND 6. CH 256 AND 1907 (RCW 79:01:224) RDQCTIRF.S THE STATE TO RESERVE ALL MTNF:RAr S IN CaNVEYANCIS SUBSBP TO JUNE 11 ITT 1907. M, VIA A STIPULATED JLDQmTr, THE STATE CAN DIVEST =ELF OF 'I'I`I'LE, TO MINERALS THAT IT'S REQUIRED TO RETAIN BY RCW 79:01:224 IS A QUESTION OF LAW ON WHICH WE EXPRESS NO OPINION. AS TO PARCEL 7, THE DEED FROM THE STATE OF WAMUNGIION (AUDITOR'S FIIE NO. 2036755) FAILED TO CONTAIN THE MINERAL RESERVATIONS REQUIRED BY RCW 79:01:224. WE EXPRESS NO OPINION ON THE EFFECT OF THIS FAILURE. 6. RESERVATIONS contained in deed, as hereto attached. Executed e. • •. UCOUNTY TREASURERRecorded .. PARCEL NOTE:r •KCOUNTY IS ORIGIN OF • PARCEL WAS •- « •. • .. ••r��■ M aPERIOD ■ • • • • ■ • • E. E• • • oar •■ D 111111 TO SAID MINERALS WERE IN S�= OF V&�� By RESERVATION IN DEED- E1916, RECORDED UNDER ■ •• NO. 7. COVENANT'S, CONDITIONS AND RESTRICTIONS, contained in deed. Recorded : JUNE 18, 1968 Auditor's no.: 2036755 Executed by : THE STATE OF 4A.SHINGION As follows: - 5 - F-284038 'J • • ` M71 WAIVER OF DAMAGES GES IE• E' SET ForaH,CONTAINED I . y••' !:1! OCTOBER 1906, UNDER AUDITOR'S FILE No. 112719: THE GWMRI FOR HDSEL-F, H'S HEIRS, AC['==1ORS AND ASSIGNS, DOES RELEASE THE SAID RAILROAD COMPANY, ns SUCCESSORS AND ASSIGNS, FROM ALL CLkIMS FOR ANY AND ALL DAMAGES RE7J=TNG IM THE LANDS AND ACFCSS WHICH THE Pl= OR ST!RIPS OF LAND HEREBY CONVEYED ARE LDCATED, BY PEAS(DN OF THE LO=ON, GRADE, OXOTFUMON,I• ■ 3N 1• M AND OPERATION OF RAILWAY • al` AND UNDER THE ' • i I �. HEREBY CONVEYED. PARCEL 4 (E) EAST OF I !EI• LINE AND PARCEL LYI14G SCUTH OF NORTH LINE OF BEI-L SIREET, PLAT OF EU4WW, ACCORDING To THE REMRDED IN VOLUME 1 OF PLATS, PACE 26, FOR STREET RMPOsEs, ACWIRED By DEDICATION IN 1 PLAT. 10. ,ANY ADVERSE CLAIM by reason of the question of location, boundary or area of said land which tray be dependent upon the location of the line of ordinary high tide of PUGET SOUND 11. ANY ADVEP.SE CLAIM based upon the assertion or determination that some portion of said land is tide or submerged land. NOTE: No search of general taxes or assessments has been made. NOTE: Investigation should be made to determine if there are any service, installation, maintenance or construction charges for sewer, water, garbage or electricity. NCTT'E : A consolidated statement of all charges and advances in connection with this order will be provided at closing. NOTE: In event the transaction fails to close and this ccmmitment is cancelled, a fee will be charged to ccxply with the state insurance code and the filed schedule of this many. ..END OF SCHEDULE B.. . �:lc F-284038 EXHIBIT A The land referred to in this commitment is located in the County of Snohomish, State of Washington, and described as follows: PARCEL 1: ALL THAT PORTION OF GOVERNMENT LOT 2 AND TIDELANDS IN FRONT THEREOF IN SECTION 23, TOWNSHIP 27 NORTH, RANGE 3 EAST, N.M., DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WESTERLY PRODUCTION OF THE NORTHERLY LINE OF GEORGE STREET AS SHOWN IN THE PLAT OF EDMONDS, ACCORDING TO THE PLAT RECORDED IN VOLUME 1 OF PLATS, PAGE 269 RECORDS OF SAID COUNTY, WHERE THE SAME INTERSECTS THE WESTERLY LINE OF THE RIGHT-OF-WAY OF THE GREAT NORTHERN RAILWAY COMPANY; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID RIGHT-OF-WAY WHICH LINE IS PARALLEL TO AND DISTANT 50 FEET WESTERLY OF THE CENTERLINE OF SAID RIGHT-OF-WAY, 365 FEET, MORE OR LESS, TO THE SOUTHERLY LINE OF BELL STREET AS SHOWN ON SAID PLAT PRODUCED WESTERLY; THENCE NORTH 61008' WEST ALONG THE SOUTHERLY LINE OF SAID BELL STREET PRODUCED WESTERLY, A DISTANCE OF 485.37 FEET, MORE OR LESS, TO THE INNER HARBOR LINE; THENCE SOUTH 240119 WEST ALONG SAID INNER HARBOR LINE 332.72 FEET; THENCE SOUTH 450 WEST ALONG SAID INNER HARBOR LINE 39.16 FEET TO AN INTERSECTION WITH THE NORTHERLY LINE OF SAID GEORGE STREET PRODUCED WESTERLY; THENCE SOUTH 61008' EAST ON THE NJRTHERLY LINE OF SAID GEORGE STREET PRODUCED WEST, A DISTANCE OF 404.4 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. PARCEL 2: ALL THAT PORTION OF GOVERNMENT LOT Z, SECTION e-3, TOWNSHIP 27 NORTH, RANGE 3 E4ST9 w.M., DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST END OF BELL STREET, AT THE NORTHWESTERLY CORNER OF LOT , IN BLOCK 13, ORIGINAL PLAT OF EDMONDS, ACCORDING TO THE PLAT RECORDED IN VOLUME 1 OF PLATS, PAGE 26, RECORDS OF SNOHOMISH COUNTY, WASHINGTON; THENCE NORTHERLY ON A LINE 4ITH THE WEST END OF BLOCKS 13 AND 149 40 FEET; THENCE AT LEFT ANGLE TO THE MEANDER LINE OF PUGET SJUND; THENCE SOUTHERLY ALONG SAID MEANDER LINE ABOUT 40 FEET TO A POINT ON A LINE WITH THE SOUTH SIDE OF BELL STREET; THENCE EASTERLY ON S4ID LINE TO THE PLACE OF BEGINNING. PARCEL 3: ALL THAT PORTIO`J OF TIDELAND LOT 2 OF EDMONDS TIDELANDS, IN SECTION c3, TOWNSHIP 27 NORTH, RANGE 3 EAST, W.M., DESCRIBED AS FOLLOWS: SEGiNNING AT THE NORTHWEST CORNER OF LOT 69 BLOCK 13, PLAT OF EDMONDS, ACCJROI"JG TO THE PLAT RECORDED IN VOLUME 1 OF PLATS, PAGE 26, RECORDS _F SNOHOMISH COUNTY, wASHINGTON; THENCE NORTH 61008' WEST TO INTERSECT THE GOVERNMENT MEANDER LINE, THE TRUE POINT OF BEGINNING OF THIS C-ESCRIPTION; THENCE NORTH 39G31*00" EAST, ALONG SAID MEANDER LINE, FOR 61.04 FEET, MORE OR LESS, TO INTERSECT THE NORTHERLY LINE OF BELL -1- F-284038 EXHIBIT A PAGE 2 STREET PRODUCED WESTERLY; THENCE NORTH 61008' WEST ALONG NORTHERLY LINE OF SAID BELL STREET PRODUCED WESTERLY, FOR 403.52 FEET, MORE OR LESS• TO INNER HAkBOR LINE; THENCE SOUTH [4011600" WEST ALONG SAID INNER HARBOR LIVE TO 4 POINT WHICH IS NORTH 61008' NEST OF POINT OF BEGINNING; THENCE SOUTH 61008' EAST FOR 387.37 FEET, MORE OR LESS, TO POINT OF BEGINNING. PARCEL 4: (A) THAT PORTION OF TIDELAND LOT 1, PLAT OF EDMONDS TIDELANDS IN FRONT OF UPLAND LOT 19 SECTION c3, TOWNSHIP 27 NORTH, RANGE 3 EAST, W.M., DESCRIBED AS FOLLOWS: BEGINNING AT THE MEANDER CORNER BETWEEN SECTIONS 23 AND [4, TOWNSHIP 27 NORTH, RANGE 3 EAST, W.M.; THENCE SOUTH 89042' WEST ALONG NORTH LINE OF SAID TIDELAND LOT 1, A DISTANCE OF 924.14 FEET TO INNER HARBOR LINE; THENCE SOUTH 24011' WEST ALONG SAID INNER HARBOR LINE 481.15 FEET; THENCE SOUTH 61008' EAST 608.49 FEET TO MEANDER LINE; THENCE ALONG SAID MEANDER LINE NORTH 39031' EAST 864.96 FEET; THENCE NORTH Z3042' EAST 86.22 FEET TO THE POINT OF BEGINNING; EXCEPT PORTION THEREOF LYING WITHIN RIGHT-OF-WAY OF GREAT NORTHERN RAILROAD. ME THAT PORTION OF GOVERNMENT LOT 1, SECTION c39 TOWNSHIP 27 NORTH, RANGE 3 EAST, w.M., DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF GOVERNMENT MEANDER LINE WITH NORTHERLY LINE OF EDMONDS ST. EXTENDED WESTERLY IN ITS PLATTED DIRECTION ACCORDING TO PLAT OF EDMONDS, ACCORDING TO THE PLAT RECORDED IN VOLUME 1 OF PLATS, PAGE 26, THENCE NORTH 39031' EAST ALONG SAID MEANDER LINE 347.68 FEET TO THE TRUE POINT OF BEGINNING; THENCE CJNTINUE NORTH 39031, FAST TO INTERSECT THE WESTERLY RIGHT-OF-WAY LINE OF GREAT NORTHERN RAILROAD; THENCE SOUTHWESTERLY ALONG SAID WESTERLY RIGHT-OF-v4AY LINE TO A POINT THAT BEARS SOUTH 61008' EAST FROM TRUE POINT OF 6EGINNING; THENCE NORTH 61008' WEST 55 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING. (C) THAT PORTICN Gr rIDELAND LOT 1, PLAT OF EDMONDS TIDELANDS IN FRONT OF UPLAND LOT 19 SECTION 23, TOWNSHIP 27 NORTH, RANGE 3 EAST, W.M., DESCRIBED AS FOLLOWS: COMMENC Iivt, :T THE INTERSECTION OF THE GOVERNMENT MEANDER LINE AND NORTH LINE OF EDMONDS STREET EXTENDED WESTERLY IN ITS PLATTED DIRECTION ACCORDING T7 PLAT OF EDMONDS, ACCORDING TO THE PLAT RECORDED IN VOLUME i OF PLATS, PAGE 26; THENCE NORTH 39031' EAST ALONG SAID MEANDER LINE F-284038 EXHIBIT A PAGE 3 347.68 FEET; THENCE NORTH 61°080 WEST 608.49 FEET TO INNER HARBOR LINE; THENCE SOUTH 24011- WEST ALONG SAID INNER HARBOR LINE 342.89 FEET TO INTERSECT WESTERLY EXTENSION OF NORTHERLY LINE OF SAID EDMONDS STREET; THENCE SOUTH 610084 EAST ALONG SAID NORTHERLY LINE 516,53 FEET• MORE OR LESS* TO POINT OF BEGINNING. (D) THAT PORTION OF GOVERNMENT LOT 19 SECTION 239 TOWNSHIP 27 NORTH* RANGE 3 EAST. W.M.• DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE GOVERNMENT MEANDER LINE WITH THE NORTHERLY LINE OF EDMONDS. STREET EXTENDED WESTERLY IN ITS PLATTED DIRECTION ACCORDING TO PLAT OF EDMONDS• ACCORDING TO THE PLAT RECORDED IN VOLUME i CF PLATS■ PAGE 26; THENCE NORTH 39031' EAST ALONG SAID MEANDER LINE 347,68 FEET; THENCE SOUTH 610089 EAST TO INTERSECT CENTERLINE OF RIGHT—OF—WAY OF GREAT NORTHERN RAILROAD; THENCE SOUTHWESTERLY ALONG SAID CENTERLINE TO INTERSECT SOUTHERLY LINE OF SAID EDMONDS STREET; THENCE NORTH 610080 WEST ALONG SOUTHERLY LINE OF SAID EDMONDS STREET AND WESTERLY EXTENSION THEREOF TO INTERSECT SAID MEANDER LINE; THENCE NORTH 39031' EAST ALONG SAID MEANDER LINE 60.3 FEET TO THE POINT OF BEGINNING; EXCEPT PORTION THEREOF LYING WITHIN RIGHT —OF —BAY OF GREAT NORTHERN RAILROAD AND EXCEPT PORTION THEREOF LYING WITHIN SAID EDMONDS STREET AS PLATTED IN SAID PLAT OF EDMONDS. THAT PORTION OF TIDELANDS LOTS 1 AND 2• PLAT OF EDMONDS TIDELANDS• GOVERNMENT LOTS 1 AND 21, SECTION 239 TOWNSHIP e7 NORTH• RANGE 3 EAST9 W-M.• DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF LOT 6, BLOCK 14, PLAT OF EDMONDS ACCORDING TO PLAT THEREOF RECORDED IN VOLUME 1 OF PLATS. PAGE 46; THENCE NORTH 610089 WEST ALONG SOUTHERLY LINE OF EDMONDS STREET EXTENDED WESTERLY IN ITS PLATTED DIRECTION ACCORDING TO SAID PLAT TO INTERSECT INNER HARBOR LINE; THENCE SOUTH z4011' WEST ALONG SAID INNER HARBOR LINE 361.z1 FEET TO INTERSECT NORTHERLY LINE OF BELL STREET EXTENDED 4ESTERLY IN ITS PLATTED DIRECTION ACCORDING TO SAID PLAT OF EDMONDS; THENCE SOUTH 61008' EAST ALONG SAID NORTHERLY LINE 403.52 FEET TO INTERSECT GOVERNMENT MEANDER LINE; THENCE SOUTH 39031' NEST ALONG SAID MEANDER LINE TO A POINT 20 FEET SOUTHERLY OF NORTHERLY LINE OF SAID BELL STREET EXTENDED, (AS MEASURED PERPENDICULAR THERETO); THENCE SOUTH 61008' EAST TJ INTERSECT THE WESTERLY LINE OF SAID BLOCK 14 EATENDED SOUTHERLY IN ITS PLATTED DIRECTION; THENCE NORTHERLY ALONG SAID WESTERLY LINE 20 FEET TO SOUTHWEST CORNER OF SAID BLOCK 14; THENCE CONTINUE NORTHERLY ALONG WESTERLY LINE OF SAID BLOCK 14 A DISTANCE OF 360 FEET TO POINT OF BEGINNING. (F) THAT PORTION OF TIDELAND LOT 1, PLAT OF EDMONDS TIDELANDS IN FRONT OF F-284038 EXHIBIT A PAGE 4 UPLAND LOT 1, SECTION 23, TOWNSHIP 27 NORTH, RANGE 3 EAST, W.M „ DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF GOVERNMENT MEANDER LINE WITH NORTHERLY LINE OF EDMONDS STREET EXTENDED WESTERLY IN ITS PLATTED DIRECTION ACCORDING TO PLAT OF EDMONDS, RECORDED IN VOLUME 1 OF PLATS, PAGE 26; THENCE NORTH 610089 WEST 516.53 FEET TO INNER HARBOR LINE; THENCE SOUTH 24°110 WEST ALONG SAID INNER HARBOR LINE 60.2 FEET TO SOUTHERLY LINE OF WESTERLY EXTENSION OF SAID EDMONDS STREET; THENCE SOUTH 6�008• EAST ALONG SAID SOUTHERLY LINE 500.36 FEET TO SAID MEANDER LINE; THENCE NORTH 390311 EAST ALONG SAID MEANDER LINE 60.3 FEET TO POINT OF BEGINNING. PARCEL 5. LOTS 39 4, 5 AND 6, BLOCK 14, PLAT OF EDMONDS, ACCORDING TO THE PLAT RECORDED IN VOLUME 1 OF PLATS, PAGE 269 RECORDS OF SNOHOMISH COUNTY, WASHINGTON; EXCEPT GREAT NORTHERN RAILWAY RIGHT—OF—WAY. PARCEL 6: ALL OF TIDELAND LOT 29 EDMONDS TIDELANDS IN FRONT OF UPLAND LOT 29 SECTION 24,'TOWNSHIP 27 NORTH, RANGE 3 EAST, W.H., LYING WESTERLY OF GREAT NORTHERN RAILWAY RIGHT—OF—WAY. PARCEL 7: THAT PORTION OF TIDELAND LOT 1 IN FRONT OF LOT 19 SECTION 249 TOWNSHIP 27 NORTH, RANGE 3 EAST, W.M., EDMONDS TIDE LANDS, LYING SOUTH OF THE NJRTH 330 FEET THEREOF AND NORTH OF THE SOUTH 330 FEET THEREOF; ALSO THAT PORTION OF THE SOUTH 330 FEET OF SAID TIDELAND LOT 19 LYING '+BEST OF A LINE WHICH IS nEST OF, PARALLEL TO AND 33 FEET FEET DISTANT FROM (MEASURED AT RIGHT ANGLE TO) THE CENTERLINE OF THE DOUBLE TRACK RAILWAY OF THE GREAT NORTHERN ;AILwAY COMPANY, AS NOW LOCATED OVER AND ACROSS THE SOUTH 330 FEET 3F SAID LOT 1, SECTION 24, SAID CENTERLINE BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE GOVERNMENT MEANDER LINE IN FRONT OF LOT 2 OF SAID SECTION 24, WHICH IS NORTH 12050' EAST 127.74 FEET DISTANT PROM THE MEANDER CORNER ON THE WEST LINE OF SAID SECTION [4 AND RUNNING T-iENCE NORTH 25057r EAST TO AND ACROSS THE SOUTH 333 FEET OF SAID LOT 1, SECTION 24■ SAID TIDELAND LOT 1 IS AS SHOWN ON THE OFFICIAL MAPS OF EDMONUS, TIDELANDS ON FILE IN THE OFFICE OF THE COMMISSIONER OF PUBLIC LANDS AT OLYMPIA■ WASHINGTON. ALL SITUATE IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON. �Ib fast Ar renruoPR F i � � N! �'�jass..lerr � Il THE M rW OT OR 104, Ldmonda ferry Teralrv►1 to 5th Avenue WW ALL 1M ST TRESS PRESENTS, eorpothat Tit CITT OF LDMJRD9, a naricipal ntlom of the County of 9aohoalah, State of Washington, for and in cousideration w.,ewi ben•!i�s do b*rrbf ILranL and warrant vr1Lo the BtaL* of Waahl"rt", the rl;ht, ri eas"'I to eensenacL a dralnaga eyster includkn d➢ ebut not and theremr, owr, acme■ and upon the following described 1—da State of Vaahiagton, tow•it: a[iuste1.nnv 9hoeishcCcrarr.y, A portion of ra+•srna.at Lot 2, described as follare; Pangs section 23, Township 27 north, Pas 3 Last, M.N., Starting at the kntersection or Hat" Street with the centerline of the Burlington Itorthern Iaeorporated, said intersection point also known ■■ Highway Engineer's Station LO.00.00; thence North 511 West along the eenterlinw or said Nato Street to F1lghraT [ngin.•r'■ station 9`4.83 to the W.ateriy right of vey iinq of the 9urlington korthern sorts i2°53 2L• Sast wieng said Weaterl n Ine.; thence feet to the true fiat of nsaldI y 1lroad right Of way line a distance of '+0.70 [heat■ North a4: thence North 5 20'1{•• West a dlatence of 155.0 feet; 30"T4+" Last a distance of 15.0 rI thence 170.0 feet Ln a Southeasterly di""LOO to ■ point on the i+.sterly right of way line of $urlingtoR Fort hcm Inc., aaLd poiRL lying north 4�53.24" East, �^O.0 feet from the point of beginning; thence South 53'24" West a "'stases of 20.0 feet to the true point of beginnLng and the end of thi■ 1,49111 description. The 'An*th air Lo,"weer which said easeeent 12 being granted contain an area of 2,850 sq. ft, more sperifie details concerning an of which are to be found within that cer- or R meopOrw of definite location, now of r:eerd and on file in the Office of the Director of November at Olyrpia, Washington, and bearing date of appmya•1 feayary. 9, 1969, revised ■oveaber 1.2, 19'f0. It Is flrrtber understood and agreed that the STALE OF WASMrMjr, or its contractors, andLU have the rLght to use any equtpr.nt or machinery necessary to effect the construction Of said driivAga line. The STAIN Of WAMTRMOR agrees that should any damage accrue to ad,]acent lands of the Orantor by mason of the construction of said drainage Line, then any compensation therefor shall he ■ matter of future negotiation. DATID thi■ 11th deq of , 1971. e ACCLPM AND APPRO;I= _ • { . s OTAT6 OF WASHTIR:TON I, Departnant of.X s t �1�Fri'r CLLRii ,e,tt��._ _ �� 4iif Right r�j t = t •1 �; Agent hof I .. 7. _ ■TAT' Of 16t_ nnKnCm] r ... ... _.. ,.•. a +"(; {C o Conn tlr of Snehoa S sh l I, the ond►raLgtted, a Notary Nb11e Se and for the State at Ifash! C e*rtI Y that on this ncftan, hereby e. H H. Nar in �h of-r'�'"' a 1971, before me p• long a ""' r 117 ppeared to as' NOwivn a and J �h" the duly *lect'd lend qualified Nkyor and City C1ere of the CLt of '� 7<d#on67, 'that eteouted the within 7 and foregoing Lnetrla•n� _-, ad iastrweeot to be [tile fr.e and volunta g and acknowledged the Raid ry act and dyed or the ' Me One sad *etd City of Edmonds, fer $i pwrpos*s therein nentloned, anI •ash on oath stated that h• was ■u*.hortz.d to 4ceewte sa(d SNrtrtm.nt by resaLutian Of Lhe ;yor and Clty C1•rk of Lhe Ckt ❑f idm�ds +a:a the tl�e feel afftxed ke the official seal of the City , of FArronds.y z fn ary flubleand for the State of T'f•' .'1 tie I- Ih •1+ Yaah1 , g agton r*sidle ae Edrsonds Lh,,L 4U.11 I UII UIIULI!L,11L'IJIIU :;•, ' I •. Ili'1' rWs UIPENIIJftE made Inns fj`d „ day of !........ Na YtA6fr ... .. ............ 19.7y.. between I ty%C:t> of !•dt.,nds, a ^u�icipal corporation I r •.. - •• e• ,•'rrr.� r^ t. Gran-., PUBLIC UnLITY DISTRICT NO. 1 Or StinIio.mIs f COUNrt, 1 m pane mf the Northwest" Inc. he,einaner referred to at Grantee: and I [� Y herainaller reterred to as Modgngee. WITUESSETII: j Vrr,i RE-S. Grantor '. Ihr owner .1 cm... lands and premises sdueled In the County of ...-.Snohomish,,, - e ; / .• n' tt'rt• : Gt,,n drtcn^rd et lollnwt: , -rti:'t of the Itirtheast quarter of the southeast quarter of Section 23, Township .r rt!t, t:rge 3 Ease, W.M., described as follows: ,n:c¢ at the intersection of the westerly line of Bnrlingtnn Northern Railroad right I. and the northr`rlt• liar of 9cil Street ettended westerly; thence westerly along 1 - It•le %Ilia, is the northerly line of Bell Slreyl extemled westerly for a dislnnce of . •;I: 'l:: n'.r smith 3'I'31' west for III feet; thence easterly parallel to the northerly roli Street estendea westerly to the westerly margin of Burlington Northern Railroad t .•t h.H r thence uortherly al'rtg raiImtd right of way to the puiot of brginiting, ,;• v.,q PFAS Granlrr is deorm,s of acdumng tert.ln nphl, and Dnvdagea erro.s, over...it., ..it upn. the .eld lands and I. I. Orr l•TF I.,.,•,. in, ,rq w Creu0•r.h nn , Ill. .new of ONF oitllR tit M) and Other e.1100- cn•'y Mrr.lu,n, t and {,belt 14 100 filantyr, •n s,e ret w•. A I • N,m ...I II. r.rn„tart ar'•I r •. Ir•.• ^• 4^t"el•I^nr•av •'1. ,r 1110 , r e alter, ...Prnyn. e.pa •r. enel.,i .r•d ma.nl.I. .n ov"-m_,.d epee• • ... ,, rt.. .� . la•N ... .,I tra.tuann••+ •••'.I d•s11�'n•t•L.I w r .. ,•,•,•.,r. n,e.s. pr.trtl0%. IelenI.W* eVlu,nnnrahal It araurreanrea, aSro+s, urllI, are upon Ih av lgnowmIt (WW. r•had F.nd1 Rod preln•y+ sdurtrd 1� • l.r."iI.-ni>1I , Sra.e of V,'wth,n,;IOn, town trrtht •I .rl ere. ';Fo;I!!?FI) I- ,v 1 '1 1914 of .cure.( t, and ep rtt Irom teed lend. across adl.crnt lands of Ur Grail., Inc it,, nr. of nl c.n.lr 0 .,r •,! r•y rna. ah.nprne, vm,elhnq and on•rahn,t send Ion•, tad 111, ughl at any In..r In rrrnn. 1"1 r . •.a J'•1 AI'1•"'r rtnrr\ beer to"1 ,ary14 " 1'•ret 1rl Cnl .,nl nr Sr,nr all h•II.h, 1'Thar, bea4 Or OIher growth f1.twYnq Or growrn,! ulna ...... h .1 r:rll dPr r r. Fm.r,rr••r . m r nr danger In card hI«• Grant., a,.II the hest. tur cevtny m ass�n•rt n' r✓irltrn lip-ptiv r • -• •. '.I prrl•nI'-0 ha tnnarruc!rd arry .l,imtnrey of any 61 In tlrr eatwr•rrnl ar nn wr;l 1— POW" ar144tIll r ...•. rl I.1 . r r rot nl li, a'•h.r rq . red aj rr^ ual to J. ,rev Id almp M rL... r .. r•Lr .r. ••,. 1•, ..11`r f.',r a'�rl nl t.ul •liar wd',nnt a'�rrq rr ra .onthln nIh In w, rr IF. 1" Ihr Gr,•rl,•• rrrn t rr • t , • I .. ,^ I a `'n 'r h.reM ay • , Hall r-n hn t.. • • ,n t I I , .. ul-h Imie •Inn r:r+^n' A t .r I.n n . •. r I•'r .. .. ,.rl.. .eel. rl'1'n•1 .;,`• aI......(toll nl ,•II r�rF .,.,S^I�rrrr�r r '�1 r•e 'f ....- l,rlr•.1 r ,t In , 1 • 1 ,r r 11.„•f. 11: Id 1„ Ptn, R ra Ar ,one tv,e,I • opt IetyN.Vn1 .t NI. 1 n ; . •r .l,.,i •t I1 i r ,. . �, ', . r 1.1 t••I ... 1 : r'.. I,tll n 11r•tl aurae Ji► h r .• ,reel t ll•.rr I., el •, . n.r „ a 'In ,• .` •' 0 , IOI LA"1 rat.nr•nl .tr .t 11! cone( y�t•ea.•.Inu tWl 1 ,t.'.n'•tl Ile I,.'rrl Ir1„rn• 1r•1 •5 '• I r t r .e.wr rl I1.1 Ua I.,4 b, tlrr Ar,�rla l:;re Is I,rreln Srd••ndrnalyd In Ihr rrglnt he"' y;ra'd'•d In 11 '• f•r r•rlr+, Ire all w. ..t n.. : 1•. .,.rl r .r 1r .r....... nr.hrrd .. 'It SS'AIII u QI II, t �rrttrr,inrlrt h.;t �!wn et rcnle•1 ,ne daY !n•l1ye/r Ir t alrovo wullr•n r �- H• I I A1I , MAYOR a I ,� [• A,. .t �.r , t�Cfi t. •r..: �•J „1i cr '. 1 ,r � I P.EIIE VARIIEY W)RAN , O`�tffY 'CIF PY 1•L �;11;d"+' L•1 I)11 ICIAL RtGQI411!' YQL O� 1".L 189 890_-19°5- CITY OF EDMONDS OFFICE OF THE CITY ATTORNEY 447-7000 FAX: 447-2015 a August 6, 1990 Jo -Anne Jaech Edmonds Councilmember c/o Council Office 505 Bell Street Edmonds, WA 98020 Re: Anderson Marine and Other Waterfront Site Dear Jo -Anne: LARRY S. NAUGHTEN MAYOR RECEIVED AU G 7 1990 Comnnie flify pig, k Enclosed are copies of deeds and the wills of Mary Riley Anderson and Howard V. Anderson, Sr. I asked the title company to gather them but terminated the title search because I thought the cost was prohibitive. Basically, we paid only the $58.00 cancellation fee rather than the $50.00 per hour charge that they would make to straighten this mess out. We can always continue should you desire to bring condemnation proceedings. The problem (as a quick perusal of the quit claim deeds will show) is that more interest in the property has been deeded than exists. It appears to me, however, that Howard V. Anderson, Jr. owns a controlling interest of approximately 7/12ths undivided interest in the property while his brother James Gualtieri holds a 5/12ths interest. You will note that there are also deeds for a 1/10th interest outright to Howard V. Anderson and a 1/15th interest to him in trust. The "weasel" room appears to come from the provision in Howard's will permitting Mary to select her community one --half interest from among the real estate, thereby permitting her to keep the entire interest in the family home. This could vary the amount which went into trust and accordingly probably led to these other deeds. Regardless of how you interpret the deeds, Howard V. Anderson, Jr. has a controlling interest. It is, however, an undivided interest. Therefore, to take advantage of grant requirements, the agreement of both James Gualtieri and Howard V. Anderson, Jr. would be required to sell to the City. I do not intend to pursue this any further. If the Council authorizes acquisition of the property and we have the 2100 Westlake Center Tower, 1601 Fifth Avenue, Seattle, WA 98101-1686 • Incorporated August 11, 1890 • Sister Citioc Tntornatinnal — Hokinnn JT nan Ms. Jo -Anne Jaech August 6, 1990 Page 2 concurrence of both Mr. Anderson and Mr. Gualtieri, we can proceed to get the title report and structure the deeds accordingly. As you are aware, we cannot condemn the property with state grant monies but at least we now know the individuals whose consent is required. Very truly yours, OGDEN MURPHY WALLACE W. Scott Snyder WSS/klt cc: Mayor Naughten (w/out enclosures) City Council (w/out enclosures) Arvilla Ohlde (w/out enclosures) WSS52582L/0006. May 9, 1990 Confidential MEMO TO: City Council FROM: Larry S. Naughten Mayor SUBJECT: ANDERSON MARINA PROPERTY I just met with Howard Anderson today regarding the status of his property south and adjacent to the ferry terminal. The property is a total 103,000 square feet; 60,000 upland, 43,000 tideland. The 60,000 square feet was appraised in January of 1988 for $1,500,0000 or $25 per square foot. The tideland carries an assessed value of about $300,000. Mr. Anderson has set a price at $2 million on the total property. Mr. Anderson would rather carry a land lease of 8% of the property value, or $160,000 a year for approximately 50 years, rather than sell it. He's concerned with capital gain taxes on a sale but would not turn down an offer of $2 million. He has had no communication with the Washington State Department of Transportation. The property is currently not listed for sale; this is just a conversation that he had with me today, stating that he figures that's the value and if the City is interested in a land lease or outright purchase he would be interested in talking to us. LSN/db SETTLEMENT AGREEMENT AND RELEASE THIS SETTLEMENT AGREEMENT AND RELEASE is entered into effective as of , 1995 by and between the City of Edmonds, Washington, a Washington m nicipal corporation, ("City of Edmonds" or "City") and Waterfront Park Associates, Inc., a Washington corporation ("WPA"). In consideration of the undertakings, covenants and conditions contained in this Agreement and in the Associated Agreement described below in this Agreement, and the benefits to the parties derived therefrom, the City of Edmonds and Waterfront Park Associates, Inc. hereby agree: I. FACTS This Agreement is made with reference to the following facts which are part of this Agreement. 1.1 Party Wall. The predecessors in title of the City of Edmonds and WPA entered into a Party Wall Agreement (the "Party Wall Agreement") dated March 18, 1964, recorded at Volume 846, Page 340 of the Land Records of Snohomish County, Washington, concerning a Party wall (the "Party Wall") which lies on and on either side of the common property line between two parcels of real property located in the City of Edmonds, Washington, which are now owned by the City and WPA. 1.2 Cit 's PMPM, . The City of Edmonds is the current owner of one of the two Properties described in the Party Wall Agreement which is commonly known and described as the "Anderson Marine" property. The City of Edmonds has indicated its desire and intent to demolish and remove a building, and certain other improvements, on the City's Anderson Marine property which both utilizes the Party Wall as a part of such building and provides support to the Party Wall. Thereafter, the City will discontinue all significant use of the Party Wail and wishes to end the obligations it has or may have for the future maintenance and repair of the Party Wall. 1.3 WPA's Pro ert . Waterfront Park Associates, Inc. is the current owner of the second of the two parcels of real property described in the Party Wall Agreement which is commonly known as the "Allbery" property. Waterfront Park Associates' "Allbery" property is improved with a building which utilizes the Party Wall for support of such building and as part of the improvements of such building. WPA wishes to have the continued and unimpaired use of the Party Wall as it is now constructed, and as it is hereafter re -constructed, re aired and maintained for such purposes. 1.4 Pending Lawsuit. A dispute exists between the parties which in part concerns the Party Wall and the Party Wall Agreement which is summarized from the perspective of WPA 06/05/95 WSS95469.5AOR/P0060.050.155 _ 1 fY u in a complaint (the "Complaint") filed by WPA as Cause No. 94-2-04674-6 in the Superior Court of Snohomish County, Washington. WPA's "Second Cause of Action" against the City, as described in the Complaint, requests declaratory and compensatory judgments in favor of WPA and against the City concerning the Party Wall and the Party Wall Agreement. The "Fourth Cause of Action" of WPA's Complaint, and in particular Paragraph 81 thereof, alleges that because of certain acts and omissions of the City concerning the Partv Wall, the City has taken or inversely condemned certain of WPA's private 7PA ghts and interests in and with respect tote arty and klle Party Wall Agreement. requests that compensation and damages be awarded to it for the City's taking of WPA's property. 1.5 Settlement Desired. The City and WPA desire to settle WPA's "Second Cause of Action" and that portion of WPA's "Fourth Cause of Action" against the City contained in paragraph 81 of the Complaint concerning the Party Wall and the Party Wall Agreement. 1.6 Associated Agreement. As conditions of this Settlement Agreement and Release, the City and WPA have agreed in an associated a Lee nt -- a "Reformation of Parma[ Wall Agreement" -- on the terms, provisions and conditions to resolve VO s c ms against the City foir damages to the Party Wall and WPA's rights and interests therein, and on terms and conditions for the support, repair, restoration and or replacement of the Party Wall for the continued use and benefit of WPA and the Allbery property. H. TERMS OF SETTLEMENT 2.1 Release of Certain Claims by WPA. WPA hereby agrees that upon: 2.1.1 The City's payment of the sum set forth in Article 3; 2.1.2 Delivery to WPA of a duly authorized, executed, dated and acknowledged original counterpart of the "Reformation of Party Wall Agreement" suitable for recording with the Snohomish County Auditor within five (5) business days of execution of this agreement; and 2.1.3 City of Edmonds agrees to obtain all necessary permits, approvals (including Architectural Design approval or waiver thereof) or an emergency waiver of a Shoreline Substantial Development Permit, for the demolition of the Anderson Marina Buildings and for reconstruction of the common and parap t railin . WPA will forever release and discharge the City of Edmonds from all claims for damages which have accrued on or before the effective date of this Agreement concerning the Party Wall, the Party Wall Agreement and WPA's rights, title and interests in and to the Party Wall and the Party Wall Agreement, as such claims are described in the "Second Cause of Action" of the Complaint and in paragraph 81 of the "Fourth Cause of Action" of the Complaint including, without limiting the generality of the foregoing, all damages, liabilities, costs, attorneys' fees and charges of every kind arising from, or accrued or incurred by WPA in connection with, 06/05/95 WSS95469.5AGR/F0060.050.155 -2- such claims including by way of illustration and not limitation, cost profits, rents or revenue from WPA's building during its repair. 2.2 Exchange of Documents. The City and WPA agree to contemporaneously exchange duly authorized, executed, and acknowledged duplicate original counterparts of this Settlement Agreement and the Associated Agreement. With its delivery of this Agreement, WPA shall furnish to the City either a copy of the minutes of corporate meeting or directors' consent to corporate action authorizing the execution and ed livery of this Settlement Agreement and the Associated Documents by and for WPA. With its delivery of this Agreement, the City of Edmonds shall furnish to WPA copies of all resolutions and transcripts of any other actions required by law to be approved by vote or other action, taken and performed by the City of Edmonds authorizing the execution and delivery of this Agreement and the Associated Agreement by and for the City of Edmonds. 2.3 Preservation of Rights. Notwithstanding WPA's release of those certain claims against the City as described in Section 2.1 of this Agreement, all obligations and duties on the part of the City of Edmonds as set forth, contained in or arising under this Agreement and or the Associated Agreement which are to be performed or kept by the City after the date of this Agreement, shall remain in force and effect and shall be continuing obligations and duties of the City notwithstanding this Settlement Agreement and Release and WPA's other claims under the lawsuit shall continue. M. FINANCIAL TERMS Lump Sum Payment. The City agrees to pay the sum of Eighty Thousand Dollars ($80,000.00) upon execution of this Settlement Agreement and a contemporaneous Reformation and Party Wall Agreement. IV. AMENDMENT OF ACTION Subject to the prior satisfaction of all of the conditions described in this Agreement, the Complaint shall be amended by WPA's legal counsel to delete the Second Cause of Action, paragraph 81 of the Complaint and such other provisions of the Complaint as are appropriate and consistent with this Agreement. At WPA's election, the entire Complaint may be dismissed without prejudice. V. GENERAL PROVISIONS 5. Representations And Warranties Of The Parties. Each of the parties mutually warrant and represent, each to the other as follows: 5.1. No promise or inducement to settle the claims set forth in the Complaint has been offered except as set forth herein. 06/05/95 WSS95469.5AGRM0060.050.155 -3- 5.2. No portion of any claim, right or cause of action that any party hereto has or might have arising out of or in connection with the lawsuit represented by the Complaint or any of the factual contentions relating thereto has been assigned or transferred to any other person or entity, whether by subrogation, operation of law or otherwise. 5.3. Each party hereto has the power to fully release and discharge each and every one of the claims, demands, and causes of action covered by this Agreement, and to undertake and perform the obligations and duties to be kept and performed by such party as provided in this Agreement and each of the Associated Agreement. 6. Agreement of No Evidentiary Effect. This Agreement is made, executed, given and accepted as part of the compromise and settlement of disputed claims. WPA, the City of Edmonds, and each of them, deny any liability of any kind to each other or to any other person for any purpose. This Agreement is made solely and entirely as a compromise and for the purpose of fully and finally resolving those claims described in this Agreement to be settled and released, and it is acknowledged and agreed that nothing herein or in the Associated Agreement shall be deemed to be a waiver, satisfaction or release of any rights, claims and causes of action which either party has or may have which are not specifically settled and released by this Agreement. 7. Execution of Additional Documentation. WPA and the City agree to perform in good faith any and all acts, and to execute and deliver all additional documents and instruments as may be necessary and reasonably required to perform the covenants and satisfy the conditions and undertakings contained in this Agreement and the Associated Agreement. 8. Independent Counsel. The parties hereto acknowledge and agree that they have each been represented in the negotiation and preparation of this Agreement by independent counsel of their choice, that they have read this Agreement, have had its contents fully explained to them by their own legal counsel, and are aware of the contents hereof and of its legal effect. 9. Integration. This Agreement and the Associated Agreement contain the entire agreement and understanding of the parties with respect to the entire subject matter hereof, and there are no representations, inducements, promises or agreements, oral or otherwise, not embodied therein. Any and all prior discussions, negotiations, commitments and understandings relating thereto are merged herein. There are no conditions precedent to the effectiveness of this Agreement other than as stated herein, and there are no related collateral agreements existing between the parties that are not described or referenced herein. This Agreement and the Associated Agreement are conditioned on the full and faithful performance of all such agreements by each of the parties hereto in accordance with their terms so that a breach of or failure or refusal to perform any of the terms or conditions of any one or more of such agreements shall be a breach of all such agreements. 06/05/95 WSS95"9.5AGR/F0060.050.155 -4- 10. Interpretation and Fair Construction of Agreement. This Agreement has been negotiated and reviewed and approved by each of the parties, each of whom has been represented by independent legal counsel. In the event it should be determined that any provision of this Agreement is uncertain or ambiguous, the language in all parts of this Agreement shall be in all cases construed as a whole according to its fair meaning and not strictly construed for nor against any party. If any term of this Agreement shall be determined to be invalid, illegal, or unenforceable, in whole or in part, the validity of any of the other terms of this Agreement shall not in any way be affected thereby. 11. Amendment and/or Modification. Neither this Agreement nor any term or provision hereof, may be changed, waived, discharged, amended or modified orally or in any manner other than by an instrument in writing signed by each of the parties hereto. 12. Survival Of Rights And Obligations Of Parties. The termination of this Agreement for any reason whatsoever shall not relieve a party from any liability, obligation or agreement which pursuant to any provision of this Agreement is to survive or is required to be performed after such termination. 13. Unavoidable Circumstances. No party hereto shall be deemed to be in breach or in violation of this Agreement if the party is prevented from performing any of its obligations hereunder for any reason beyond its reasonable control including, without limiting the generality of the foregoing, acts of God, riots, strikes, fires, storms, public disturbances, or any regulation of any federal, state or local government or any agency thereof 14. Costs and Attorneys' Fees. The Party's shall bear their own costs and attorneys' fees. 15. Binding _Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties, and their legal representatives, successors, assigns and heirs. 16. Paragrnph Headings. The paragraph headings in this Agreement are for convenience only and in no way define, limit, extend or interpret the scope of this Agreement or of any particular paragraph hereof. 17. Notices. To be effective, any notice hereunder shall be in writing, delivered in person or mailed by certified or registered mail, postage prepaid, to the affected party or parties at the addresses set forth below their signatures hereto, or to such other address as the parties may hereafter designate. 18. Waiver of Breach. The failure of either party hereto to insist upon strict performance of any of the covenants and agreements herein contained, or to exercise any right herein conferred, in any one or more instances, shall not be construed to be a waiver or relinquishment of performance of any covenant or agreement, or of any such right, but the same 06/05/95 WSS95469.5AGR/F0060.050.155 -5- shall be and remain in full force and effect. Waiver by the City or WPA of any provision of this Agreement or any matter or time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 19. Time. Time is of the essence with respect to the performance of each of the covenants and agreements set forth herein. 20. Law. This Agreement shall be governed by, construed and enforced in accordance with the internal laws of the State of Washington. Venue for any action under this Agreement shall lie in Snohomish County, Washington. 21. Specific Performance. If either party shall default in its obligations under this Agreement, the parties each acknowledge that it would be extremely difficult to measure the resulting damages. Accordingly, in addition to any other rights or remedies it may have, any nondefaulting party shall be entitled to restraint by injunction of a violation, or attempted or threatened violation, of any obligation or provision of this Agreement, or to a decree specifically compelling performance of any such obligation or provision. In such event, the parties each expressly waive any defense that a remedy in damages or at law would be adequate. 22. Costs and Attorneys' Fees. If any party hereto shall bring any suit, arbitration or other action against another for relief, declaratory or otherwise, arising out of this Agreement, the prevailing party shall have and recover against the other party, in addition to all court costs, expert witness fees and other disbursements, such sum as the court or arbitrator may determine to be a reasonable attorney's fee, and such recovery may include reasonable fees and costs incurred in connection with the matter but prior to the commencement of the action. 23. Counterparts. This Agreement shall be signed in counterparts, and thereafter each counterpart shall be deemed to be an original. CITY OF EDMONDS: ATTEST/AUTHENTICATED: andy Chise, City Clerk 06/05/95 WSS95469.5AGR/F0060.050.155 - 6- WATERFRONT PARK ASSOCIATES, INC.: By Its- Address:-CLLe ��', CITY ATTORNEY: - [�) I dl W. cott Snyder STATE OF WASHINGTON ) ) ss. COUNTY OF SHOD0fi15A ) ATTORNEYS FOR WPA: Kevin P. Hanchett LASHER HOLZAPFEL SPERRY & EBBERSON I certify that I know or have satisfactory evidence that KJ c 1AAr-% A- c rN 5. K is the person who appeared before me, and said person acknowledged that he/she was authorized to execute the instrument and acknowledged it as Py- vvS ► m v m � of Waterfront Park Associates, Inc. to be the free and voluntary act and deed of such party for the uses and purposes mentioned in this instrument. DATED: 6- &-- D�� r 4110 10 v NQTAI�Y�: - PUBUC s • o: (SignAure) (Print Name) NOTARY PUBLIC My appointment expires:_ `k-s:�14-11 06/05/95 WSS95469.5AGR/F0060.050.155 -7- REFORMATION OF PARTY WALL AGREEMENT ��7 , r , 1994 THIS AGREEMENT is entered into as of the above date by and between the City of Edmonds, Washington, a Washington municipal corporation, (" City of Edmonds" or "City") and Waterfront Park Associates, Inc., a Washington corporation ("WPA"). IN CONSIDERATION OF the undertakings, covenants and conditions contained in this Agreement, and the benefits to the parties derived therefrom, the City of Edmonds and Waterfront Park Associates, Inc. hereby agree: I. Facts This Agreement is made with reference to the following facts. 1.1 The predecessors in title of the City of Edmonds and WPA entered into a Party Wall Agreement (the "Party Wall Agreement") dated March 18, 1964, recorded at Volume 846, Page 340 of the Land Records of Snohomish County, Washington, concerning a party wall (the "Party Wall") which lies on and on either side of the common property line between two parcels of real property described in Sections 1.2 and 1.4 of this Agreement which are now owned by the City and WPA. 1.2 The City of Edmonds is the current owner of one of the properties described in the Party Wall Agreement, the legal description of which is contained in Exhibit No. 1 hereto, and which is commonly known and described as the "Anderson Marine" property. 1.3 The City of Edmonds has indicated its desire and intent to demolish and remove a building, and certain other improvements, on the City's Anderson Marine property which both utilizes the Party Wall as a part of such building and provides support to the Party Wall. Thereafter, the City will discontinue all substantial use of the Party Wall, as provided below, and. wishes to end the obligations it may have for the future maintenance and repair of such wall. 1.4 Waterfront Park Associates, Inc. is the owner of the second parcel of real property described in the Party Wall Agreement, the legal description of which is contained in Exhibit No. 2 hereto, and which is commonly known as the "Allbery" property. 1.5 Waterfront Park Associates' "Allbery" property is improved with a building which utilizes the Party Wall for support for such building and as part of the improvements of such building. WPA wishes to have the continued and unimpaired use of the Party Wall, as it is now constructed and hereafter re -constructed, repaired and maintained, for such purposes. 06/05/95 WSS 103364.4AGR/F0006.050.155 1.6 Coincident with this Agreement, the City of Edmonds and WPA agree in other documents (the "Associated Agreement") on the terms, provisions and conditions to resolve WPA's claims against the City for damages to the Party Wall, resulting from the prior use of the Party Wall by the City's predecessors in title to the Anderson Marine property and from the City's actions with respect to the Party Wall, and for the support, repair, restoration and or replacement of the Party Wall for the continued use and benefit of the Allbery property. 1.7 As part of the resolution of the issues between them relating to the Party Wall, the City of Edmonds and WPA do by this Agreement reform the Party Wall Agreement to: reflect the City's current ownership of the Anderson Marine property; provide for the City's permanent removal of all structures on the Anderson Marine property which are attached to the Party Wall or appurtenant thereto; provide for the termination of the City's obligations for repair and maintenance under the Party Wall Agreement (except as provided in the Associated Agreement); provide rights, and for the continuation of rights, for the restoration, replacement and repair of the Party Wall and certain of the structures and components of structures on WPA's Allbery property; and to provide an easement for the continued location, use, repair, restoration and maintenance of the Party Wall, as it now exists and hereafter may be restored and reconstructed pursuant to this Agreement, the Associated Agreement or otherwise; all for the use and benefit of the Allbery property. H. Confirmation of Existing_ Easement. 2.1 Confrration of Existing Easement. Except and to the extent expressly provided in this Agreement for reformation of certain rights and obligations conferred by the Party Wall Agreement, the City of Edmonds and WPA agree that the easement described in the Party Wall Agreement for the location, construction, repair, and reconstruction of the Party Wall, as it now exists and as it hereafter may be restored and reconstructed, is in all respects hereby ratified and confirmed for the exclusive use and benefit of the Allbery Property. 2.2 Use of Existing, Easement. From and after the date of removal of all structures on the Anderson Marine property which are attached to the Party Wall or appurtenant thereto as provided in the Associated Agreement, the use of the Party Wall and the easement described in the Party Wall Agreement shall be for the exclusive use and benefit of the Allbery property except as provided in this Section 2.2. From and after the date of removal of the structures on the City's Anderson Marine property, the City shall not attach any buildings or structures or components of buildings or structures to the Party Wall nor shall the City use the Party Wall for enclosure or support of any buildings or structures or components of buildings or structures on the Anderson Marine property; provided, however, that the City may utilize the exterior surface of the Party Wall facing the Anderson Marine property for the support, attachment and display of art provided that such use by the City shall not weaken the Party Wall, shall not impair or interfere with the use of such wall by the Allbery property, that it shall not permanently damage such wall, and that the City shall not display any art on such wall without the prior written 06/05/95 WSS103364.4AGR/F0006.050.155 2 approval of WPA, which consent shall be granted or withheld in WPA's reasonable discretion given due consideration to the use of the Allbery property. M. Associated Easement for Use Repair and Maintenance. 3.1 Easement Area. The parties hereby reform the Party Wall Agreement to reserve an easement in favor of WPA, for the use and benefit of the Allbery property, for the location, use, repair. restoration and maintenance of the Party Wall as it now exists and as it hereafter may be restored, reconstructed and maintained pursuant to this Agreement, the Associated Agreement or otherwise. Without limiting the generality of the foregoing, the easement hereby reserved may be used by the dominant estate for all reasonable purposes attendant to the maintenance, repair and reconstruction of the Party Wall including, but not limited to, the passage of construction, vehicles, placement and operation of construction equipment, activities of workmen, and storage during construction and maintenance activities of materials, dirt, and debris associated with such activities. The easement hereby reserved shall be for the exclusive use and benefit of the Allbery property over, under and across that portion of the Anderson Marine property lying within a strip of land twenty feet (20.00') in width, ten feet (10.00) on each side of a centerline, which centerline is a series of points parallel to and ten feet northeasterly of the common boundary line between the City's Anderson Marine property and WPA's Allbery property, which common boundary line is described as follows: Beginning at a point on the westerly line of the Great Northern Railway right of way 650 feet north 41 o east from where said right of way intersects the south line of Government Lot 2, Section 23, Township 27 north, Range 3 east, W.M., thence north 49000' west to a point on the Government Meander Line, thence north 51o57' west to a point on the Inner Harbor Line. 3.2 Estates and Terms of Easement. As to the easement described in Section 3. 1, the City's Anderson Marine property described in Exhibit No. 1 is the servient estate, and WPA's Allbery property described in Exhibit No. 2 is the dominant estate. The easement reserved in Section 3.1 of this Agreement benefits the dominant estate and is intended to and shall touch and concern the use of the dominant estate and as such shall run with the land, benefiting the dominant estate and burdening the servient estate. The reserved easement described in Section 3.1 hereof shall continue in perpetuity unless and until extinguished as provided below in this Agreement. 3.3 Safety. WPA understands and acknowledges that the City of Edmonds intends to use the Anderson Marine property as a public park, and agrees that any use of the easement described in Section 3.1 hereof for construction, maintenance and repair of the Party Wall shall include reasonable efforts to separate and safeguard the public from such activities, and to screen such activities. During any and all maintenance and construction activities within the easement area, the owner of the Allbery property shall undertake and perform all necessary safety and 06/05/95 WSS103364.4AGR/F0006.050.155 3 security activities within the easement area at its sole cost and expense, and shall hold harmless and indemnify the City, its officers, agents and employees from any and all claims, loss or damage to persons or property arising from or out of its use of the easement including the reasonable cost of defense, by the City's legal counsel, of any such claims asserted against the City; provided, however, that this provision shall not be construed or applied to indemnify or hold harmless the City, its officers, agents and employees for or with respect to their own intentional or negligent acts or omissions to act. Nothing in this Section nor in any other term or provision of this Agreement shall create any right or benefit whatsoever in third parties, and nothing in this Section is intended to be nor shall be construed or applied for the benefit of any person, firm, organization or entity not a party hereto, and no such person, firm, organization or entity shall have any right or cause of action by virtue of this Section or of any other term or provision of this Agreement. 3.4 Costs of Use. From and after the performance of all obligations and payment of all sums required of the City of Edmonds as provided in the Associated Agreement, the then owner of the Allbery property shall bear all responsibility and pay all costs of repair, restoration, maintenance, construction, reconstruction and removal of the Party Wall as it now and as it may hereafter exist. 3.5 Restoration of Easement Area. Upon completion of any maintenance, repair, restoration or other construction activities within the easement area described in Section 3.1, the easement area shall be restored to substantially the same condition it was in immediately prior to the commencement of such activities. IV. Termination of Easements 4.1 Termination of Easements. The easements granted and conveyed by the Party Wall Agreement and by Section 3.1 of this Agreement shall remain in full force and effect until the earlier of. (a) such time as the Party Wall as it now exists and as it hereafter may be repaired, reconstructed and maintained shall be damaged or destroyed and the then owner of the dominant estate shall fail to elect to repair or reconstruct such wall within forty-five (45) days after written notice from the City of the demand for such election and within forty-five (45) days thereafter shall fail to commence such repair or reconstruction; or (b) upon the election, at any time, of the then owner of the dominant estate to remove the Party Wall. Upon either such event, the then owner of the dominant estate shall take all actions reasonable and appropriate to commence removal of that portion of the Party Wall within the easement area. For purposes of this Section, the work to be performed for repair, restoration and reconstruction of the Party Wall pursuant to the Associated Agreement shall not be an event terminating the easements described in Section 3.1 and the Party Wall Agreement. 06/05/95 WSS103364.4AG"0006.050.155 4 V. Relationship of Agreements 5.1 Relationship of Agreements. This Agreement and the Associated Agreement are conditioned on the execution and full and faithful performance of all such agreements by each of the parties hereto in accordance with their terms so that a failure or refusal to perform any of the terms or conditions of any one or more of such agreements shall be a breach of all such agreements. VI. General Provisions 6.1 Independent Counsel. The parties hereto acknowledge and agree that they have each been represented in the negotiations and preparation of this Agreement by independent counsel of their choice, that they have read this Agreement, have had its contents fully explained to them by their own legal counsel, and are aware of the contents hereof and of its legal effect. 6.2 Entire A rg eement. This Agreement, the Exhibits hereto, and the Associated Agreement contain the entire agreement and understanding of the parties with respect to the entire subject matter hereof, and there are no representations, inducements, promises or agreements, oral or otherwise, not embodied therein. Any and all prior discussions, negotiations, commitments and understandings relating thereto are merged herein. There are no conditions precedent to the effectiveness of this Agreement other than as stated herein, and there are no related collateral agreements existing between the parties that are not described or referenced herein. 6.3 Inte retation and Fair Construction of A reement. This Agreement has been negotiated and reviewed and approved by each of the parties, each of whom has been represented by independent legal counsel. In the event it should be determined that any provision of this Agreement is uncertain or ambiguous, the language in all parts of this Agreement shall be in all cases construed as a whole according to its fair meaning and not strictly construed for nor against any party. 6.4 Amendment and/or Modification. Neither this Agreement nor any term or provision hereof, may be changed, waived, discharged, amended, or modified orally, or in any manner other than by an instrument in writing signed by all of the parties hereto. 6.5 Validity. In case any term of this Agreement shall be determined to be invalid, illegal, or unenforceable, in whole or in part, the validity of any of the other terms of this Agreement shall not in any way be affected thereby. 6.6 Documents. Each party to this Agreement shall perform any and all acts and execute and deliver any and all documents and instruments as may be necessary and proper 06/05/95 WSS103364.4AGR/F0006.050.155 5 under the circumstances in order to accomplish the intents and purposes of this Agreement or to otherwise carry out its provisions. 6.7 Survival of Rights pf Parties. The termination of this Agreement for any reason whatsoever shall not relieve a party from any liability, obligation or agreement which pursuant to any provision of this Agreement is to survive or is required to be performed after such termination. 6.8 Unavoidable Circumstances. No party hereto shall be deemed to be in breach or in violation of this Agreement if the party is prevented from performing any of its obligations hereunder for any reason beyond its reasonable control including, without limiting the generality of the foregoing, acts of God, riots, strikes, fires, storms, public disturbances, or any regulation of any federal, state or local government or any agency thereof. 6.9 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties, and their legal representatives, successors, assigns and heirs. 6.10 Paragraph Headings. The paragraph headings in this Agreement are for convenience only and in no way define, limit, extend or interpret the scope of this Agreement or of any particular paragraph hereof. 6.11 Recordation. This Agreement shall be recorded in the land records of Snohomish County, Washington. The parties shall each pay one-half of all costs of such recordation. 6.12 Notices. To be effective, any notice hereunder shall be in writing, delivered in person or mailed by certified or registered mail, postage prepaid, to the affected party or parties at the addresses set forth below their signatures hereto, or to such other address as the parties may hereafter designate. 6.13 Waiver of Breach. The failure of any party hereto to insist upon strict performance of any of the covenants and agreements herein contained, or to exercise any option or right herein conferred, in any one or more instances, shall not be construed to be a waiver or relinquishment of performance of any covenant or agreement, or of any such option or right, but the same shall be and remain in full force and effect. 6.14 Time. Time is of the essence with respect to the performance of each of the covenants and agreements set forth herein. 6.15 Law. This Agreement shall be governed by, construed and enforced in accordance with the internal laws of the state of Washington. Venue for any action under this Agreement shall lie in Snohomish County, Washington. 06/05/95 WSS103364.4AGRB0006.050.155 6 6.16 Sp�gific Performance. If any party shall default in its obligations under this Agreement, the parties each acknowledge that it would be extremely difficult to measure the resulting damages. Accordingly, in addition to any other rights or remedies it may have, any nondefaulting party shall be entitled to restraint by injunction of a violation, or attempted or threatened violation, of any obligation or provision of this Agreement, or to a decree specifically compelling performance of any such obligation or provision. In such event, all parties hereto each expressly waive any defense that a remedy in damages or at law would be adequate. 6.17 Costs and Attorneys' Fees. If any party hereto shall bring any suit, arbitration or other action against another for relief, declaratory or otherwise, arising out of this Agreement, the prevailing party shall have and recover against the other party, in addition to all court costs, expert witness fees and other disbursements, such sum as the court or arbiter may determine to be a reasonable attorney's fee, and such recovery may include reasonable fees and costs incurred in connection with the matter but prior to the commencement of the action. 6.18 Counterparts. This Agreement shall be signed in counterparts, and thereafter each counterpart shall be deemed to be an original. CITY OF EDMONDS, WASHINGTON By: Laura . Hall Its Mayor ATTEST/AUTHENTICATED : Sail a. S. Chase, City Clerk CIT ATTORNEY: . S ott Snyd City Attorney City of Edmonds, Washington 06/01/95 WSS103364.2AGWF0006.050.155 7 WATERFRONT PARK ASSOCIATES, INC. By r�rr¢FiC�r.; Its President Address:� fJ rY �1 fart �oAr9/��1Sr ATTORNEYS FOR WPA: �o rt Michael K. Murray, P. S. Of Counsel LASHER HOLZAPFEL SPERRY & EBBERSON STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me Laura M. Hall and Sandra S. Chase, to me, known to be the Mayor and City Clerk, respectively, of the City of Edmonds, Washington, the municipal corporation that executed the within and foregoing instrument and acknowledged to me that signed the same as free and voluntary act and deed for the purposes therein mentioned. GIVEN UNDER MY HAND AND OFFICIAL SEAL this ]k day of 1995 Typed Name: H u d a E . Ol s en � NOTARY PUBLIC in and for the State of Washington residing at Commission Expires A — 1— q STATE OF WASHINGTON ) )ss. COUNTY OF KING ) On this day personally appeared before me R . CcL n to me known to be the of Waterfront Park Associates, Inc., the corporation that executed the within and foregoing instrument and acknowledged to me that _ signed the same as free and voluntary act and deed for the purposes therein mentioned. GIVEN UNDER MY HAND AND OFFICIAL SEAL this day I of _ " 199.,5 1 �,•►►►G►►�,���a�y�i,�� TyA Name: ��;••.�1�'��'��,�� NOTARY PUBLIC in and for the State of Washington residing at evc- 1' Commission Expires 6 Jy -` ~ Mew --X � r 06/05/95 WSS103364.4AGR/F0006.050.155 8 EXHIBIT #1 The Anderson premises are legally described as follows: All that portion of Government Lot 2, Section 23, Township 27 north, Range 3 east, W.M., together with first class tide lands in front thereof, described as follows: Commencing at the intersection of the westerly line of the Great Northern Railway right of way with south line of said Government Lot 2; thence north 41o00' east along said right of way line 650 feet to true point of beginning; thence north 41o00' east along said right of way line 200 feet; thence north 49o00' west to a point on Government meander line; thence south 39028' west along said meander line 200.07 feet; thence south 49o00' east to the true point of beginning. Also commencing at the intersection of westerly line of right of way of Great Northern Railway with south line of said Government Lot 2; thence north 41o00' east along said right of way line 650 feet, thence north 490 west to a point on the Government meander line which is the true point of beginning; thence north 39028' east along said meander line 200.07 feet; thence north 56043' west 315.09 feet to a point on the inner harbor line; thence south 45000' west along said inner harbor line 175.12 feet; thence south 51o57' east 330.26 feet, more or less, to the true point of beginning. 06/05/95 WSS103364.4AaRM0006.050.155 9 The Allbery premises are legally described as follows: All that portion of Government Lot 2, Section 23, Township 27 north, Range 3 east, W.M., together with first class tide lands in front thereof, described as follows: Commencing at the intersection of the westerly line of the Great Northern Railway right of way with south line of said Government Lot 2; thence north 41o00' east along said right of way line 450 feet to true point of beginning; thence north 49000' west to a point on Government meander line; thence along said meander line north 51o23' east 135.60 feet and north 39o28' east 66.64 feet; thence south 49o00' east to a point on westerly line of said railway right of way; thence south along said westerly line of said right of way to the true point of beginning; Also commencing at the intersection of westerly line of right of way of Great Northern Railway with south line of said Government Lot 2; thence north 41o00 east along said right of way line 450 feet, thence north 49o00' west to a point on the Government meander line which is the true point of beginning; thence along said meander line north 51o23' east 235.60 feet and north 39o28' east 66.64 feet; thence north 51057' west 330.26 feet to a point on inner harbor line; thence south 45o00' west along said inner harbor line 175.13 feet; thence south 47o32' east 319.63 feet, more or less, to the true point of beginning. 06/05/95 WSS103364.4AGR/F0006.050.155 10 CON" _cUCTION AND PROPERTY USE L' NSE WHEREAS, the City of Edmonds is an owner of public park property located at 100 Railroad Avenue, Edmonds, WA., known as Bracketts' Landing Park South; and WHEREAS, the Public Utility District No. I has proposed to construct and provide underground electric transmission and distribution lines at 100 Railroad Avenue, Edmonds, WA.; and WHEREAS, in order to most expeditiously complete such project and provide construction access; a right to enter onto such a public property at reasonable times has been requested; and WHEREAS, the City is in the process of improving its park pursuant to bids opened and a contract executed contemporaneous with the execution of this construction and property use license; and WHEREAS, the City has development needs for electrical service to the public park which have been determined to have no adverse effect on present and future public recreational use of the site; and WHEREAS, the Public Utility District No. 1 needs to have access to the electrical transmission area for maintenance and repair purposes; NOW, THEREFORE, the City of Edmonds, Washington, an optional code city (hereinafter "City"), does hereby grant a revokable construction and property use license to the Snohomish County Public Utility District No. 1 (hereinafter PUD 91) under the terms and conditions set forth herein: 1. PROPERTY USE AGREEMENT. The City grants a revokable license to the PUD #1 for placement, maintenance, monitoring and repair of the electric utility transmission and distribution line and electrical services located in the electrical vault and electrical transformer described on the attached Exhibit A. PUD #1 must give prior written notice to and receive City approval 48 hours prior to site entry for construction or maintenance of the vault and transformer on location. The City may approve a shorter period for emergency repair. Regularly scheduled periodic maintenance checks and the method(s) of performance which would not involve disruption on present and future public recreation use, may receive prior approval on the basis of a pre -approved schedule. This license shall continue in full force and effect until: (a) the electrical transmission needs to the public park are no longer necessary and/or (b) immediate termination of this use agreement by written notice from the City when, in its sole discretion, the City deems such termination to be appropriate. 2. LICENSE AREA AND SUBJECT. This license burdens a portion of property addressed as 100 Railroad Avenue, known as Brackett's Landing Park South, referred to herein as Subject Tract and legally described on the attached Exhibit B. 3. RESTORATION OF SUBJECT TRACT. Commencing immediately upon completion of construction of the vault and installation of the utility transmission lines and lasting for so long as it shall take to expeditiously pursue and complete construction, PUD #1 agrees to restore the preconstruction area and a restoration license use agreement is granted to PUD #1 for the continued maintenance and repair of the electrical vault and transmission line area. PUD #1 promises to restore the subject site license area to its preconstruction condition. "Preconstruction condition" shall mean the condition of the ' construction area at commencement of construction activities. t + t r Y- 4. PERMITS. PUD #1 shall be responsible to obtain, at their expense, any and all permits necessary under local ordinance or state or federal statute with regard to the construction and property use agreement area. 5. INDEMNIFICATION AND HOLD HARMLESS. PUD 91 promises to hold harmless and indemnify the City, its officers, agents, and employees from any and all loss claims or liability associated with the use of the property use area for construction purposes and the electrical vault and transformer property use license area, including but not limited to costs or claims for delay in the development of Brackett's Landing Park South under the City's contract, as well as claims for loss or injury associated with either the PUD #1's construction activity or injuries to citizen and park patrons arising from the PUD #1 activities in the construction area and the use agreement area, provided, however, that nothing herein shall be interpreted to create third -party liability with respect to the agreement by either party. In order to ensure full application of this indemnity provision, PUD #1, on behalf of itself and its contractors or subcontractors, waives any right to immunity which it/they may have under Title 51 of the Revised Code of Washington to, but only to, the extent necessary to ensure that the City of Edmonds, its officers, agents, and employees are held completely harmless from PUD #1 activities. 6. ENTIRE AGREEMENT: SEVERABILITY. This is the entire written agreement between the parties. Any understanding, written or oral, preceding this agreement shall be deemed merged with its provision. It shall not be amended, except in writing with the express written consent of both parties hereto, provided, however, that nothing herein shall be interpreted to limit the City's discretion to terminate this property use license at any time. 7. SURVIVAL. In the event of termination of this property use license by the City, the City's right to restoration pursuant to paragraph 3 above and its rights to be held harmless and indemnified pursuant to paragraph 5 above shall survive the termination of this license to the extent necessary to ensure that the park is restored to its preconstruction condition and that the City is held completely harmless and indemnified from any loss, claim, or liability associated with the PUD #1's use of the property use license area. DATED this aZ 7'4 ATTEST/AUTHENTICATED 17Y CLERK, SANDRA S. CHASE APPR VED AS TO FORM: OFF E OF CITY ATTORNEY BY day of 1997 CITY OF EDMONDS: MAYOR, BARBARA S. FAHEY SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NUMBER 1 By-� Its FRM, 14 ,el I c/u i L. a to a rV V m W � i.. 7 � V O wrn ?� _-- o, a, c w� �o N TOTAL P-01 r Commitment No. 039389 PARCEL A• That portion of Government Lot 2, including tidelands, Section 23,- Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as .shown on the Plat of - Edmonds, according, to- the plat thereof - recorded in volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of -Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; _ THENCE. - North 66 ° 081- West to a -point `of intersection.. with the_* - inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a Southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B. That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 510571-East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. EXHIBIT B -315rf7 Item #: 0-7 Originator: EDMONDS CITY COUNCIL Agenda Memo Parks and Recreation Division For Action: X For Information: Subject: AUTHORIZATION FOR MAYOR TO SIGN CONSTRUCTION AND PROPERTY USE LICENSE WITH SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO. 1. Agenda Time: Consent Agenda Date: March 25, 1997 Exhibits Attached: 1. Construction and Property Use License Agreement 2. 3. Clearances: Department/Initials Admin Svcs/Finance City Attorney City Clerk Court Personnel Fire Police Reviewed by Council Committee: Community Svcs Engineering r Parks & Rec�[.t� Planning Public Works Treatment Plant City Council Mayor x, Finance Community Services Public Safely Approved. for Consent Agenda: Recommend Review by Full Council: Expenditure Amount Appropriation Required: $ 0 Budgeted: $ 0 Required: $ 0 Funding Source: Previous Council Action: Narrative: To provide for the electrical service for the development of Brackett's Landing Park South, the City of Edmonds and the Public Utility District #1 need to enter into a construction and property use license to provide for the construction and placement of the underground switching vault and electrical transformer on the southeastern corner of the property which will service the electrical needs of the park. Recommended Action: Authorize the Mayor to sign the Constriction and Property Use License with PUD #1. Council Action: CON, ZUCTION AND PROPERTY USE L. .NSE WHEREAS, the City of Edmonds is an owner of public park property located at 100 Railroad Avenue, Edmonds, WA., known as Bracketts' Landing Park South; and WHEREAS, the Public Utility District No. l has proposed to construct and provide underground electric transmission and distribution lines at 100 Railroad Avenue, Edmonds, WA.; and WHEREAS, in order to most expeditiously complete such project and provide construction access; a right to enter onto such a public property at reasonable times has been requested; and WHEREAS, the City is in the process of improving its park pursuant to bids opened and a contract executed contemporaneous with the execution of this construction and property use license; and WHEREAS, the City has development needs for electrical service to the public park which have been determined to have no adverse effect on present and future public recreational use of the site; and WHEREAS, the Public Utility District No. 1 needs to have access to the electrical transmission area for maintenance and repair purposes; NOW, THEREFORE, the City of Edmonds, Washington, an optional code city (hereinafter "City"), does hereby grant a revokable construction and property use license to the Snohomish County Public Utility District No. 1 (hereinafter PUD #1) under the terms and conditions set forth herein: 1. PROPERTY USE AGREEMENT. The City grants a revokable license to the PUD #1 for placement, maintenance, monitoring and repair of the electric utility transmission and distribution line and electrical services located in the electrical vault and electrical transformer described on the attached Exhibit A. PUD #1 must give prior written notice to and receive City approval 48 hours prior to site entry for construction or maintenance of the vault and transformer on location. The City may approve a shorter period for emergency repair. Regularly scheduled periodic maintenance checks and the method(s) of performance which would not involve disruption on present and future public recreation use, may receive prior approval on the basis of a pre -approved schedule. This license shall continue in full force and effect until: (a) the electrical transmission needs to the public park are no longer necessary and/or (b) immediate termination of this use agreement by written notice from the City when, in its sole discretion, the City deems such termination to be appropriate. 2. LICENSE AREA AND SUBJECT. This license burdens a portion of property addressed as 100 Railroad Avenue, known as Brackett's Landing Park South, referred to herein as Subject Tract and legally described on the attached Exhibit B. 3. RESTORATION OF SUBJECT TRACT. Commencing immediately upon completion of construction of the vault and installation of the utility transmission lines and lasting for so long as it shall take to expeditiously pursue and complete construction, PUD #1 agrees to restore the preconstruction area and a restoration license use agreement is granted to PUD #1 for the continued maintenance and repair of the electrical vault and transmission line area. PUD #1 promises to restore the subject site license area to its preconstruction condition. "Preconstruction condition" shall mean the condition of the construction area at commencement of construction activities. 4. PERMITS. PUD #1 shall be responsible to obtain, at their expense, any and all permits necessary under local ordinance or state or federal statute with regard to the construction and property use agreement area. 5. INDEMNIFICATION AND HOLD HARMLESS. PUD #1 promises to hold harmless and indemnify the City, its officers, agents, and employees from any and all loss claims or liability associated with the use of the property use area for construction purposes and the electrical vault and transformer property use license area, including but not limited to costs or claims for delay in the development of Brackett's Landing Park South under the City's contract, as well as claims for loss or injury associated with either the PUD #1's construction activity or injuries to citizen and park patrons arising from the PUD #1 activities in the construction area and the use agreement area, provided, however, that nothing herein shall be interpreted to create third -party liability with respect to the agreement by either party. In order to ensure full application of this indemnity provision, PUD #1, on behalf of itself and its contractors or subcontractors, waives any right to immunity which it/they may have under Title 5.1 of the Revised Code of Washington to, but only to, the extent necessary to ensure that the City of Edmonds, its officers, agents, and employees are held completely harmless from PUD #1 activities. 6. ENTIRE AGREEMENT: SEVERABILITY. This is the entire written agreement between the parties. Any understanding, written or oral, preceding this agreement shall be deemed merged with its provision. It shall not be amended, except in writing with the express written consent of both parties hereto, provided, however, that nothing herein shall be interpreted to limit the City's discretion to terminate this property use license at any time. 7. SURVIVAL. In the event of termination of this property use license by the City, the City's right to restoration pursuant to paragraph 3 above and its rights to be held harmless and indemnified pursuant to paragraph 5 above shall survive the termination of this license to the extent necessary to ensure that the park is restored to its preconstruction condition and that the City is held completely harmless and indemnified from any loss, claim, or liability associated with the PUD #1's use of the property use license area. DATED this _day of _ , 1997 ATTE S T/AUTHENTICATED CITY CLERK, SANDRA S. CHASE APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY BY CITY OF EDMONDS-. MAYOR, BARBARA S. FAHEY SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT �NUMBER 1 By Z t 14LL Its .>> �. - --. 1�1 n � IN uj I TOTAL P.01 Commitment No. 039389 PARCEL A: That: portion of Government Lot 2, including tidelands, Section 23,. Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of..Edmonds, according -to - the plat thereof - recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of -Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; _ THENCE. _North 66 0 08'. West to a .point `of intersection.. with the...* inner harbor line, said point being South 45° West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a Southeasterly direction'to a point on the Westerly margin of the Great Northern right of way which is-850 feet fortheasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B- That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 51057' East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. EXHIBIT B SETTLEMENT AGREEMENT AND RELEASE THIS SETTLEMENT AGREEMENT AND RELEASE is entered into effective as of 1995 by and between the City of Edmonds, Washington, a Washington mifnicipal corporation, ("City of Edmonds" or "City") and Waterfront Park Associates, Inc., a Washington corporation ("WPA"). In consideration of the undertakings, covenants and conditions contained in this Agreement and in the Associated Agreement described below in this Agreement, and the benefits to the parties derived therefrom, the City of Edmonds and Waterfront Park Associates, Inc. hereby agree: I. FACTS This Agreement is made with reference to the following facts which are part of this Agreement. 1.1 Party Wall. The predecessors in title of the City of Edmonds and WPA entered into a Party Wall Agreement (the "Party Wall Agreement") dated March 18, 1964, recorded at Volume 846, Page 340 of the Land Records of Snohomish County, Washington, concerning a party wall (the "Party Wall") which lies on and on either side of the common property line between two parcels of real property locaied in the "City Edmonds, Washington, which are now owned by the City and WPA. 1.2 City''s Property. The City of Edmonds is the current owner of one of the two properties described in the Party Wall Agreement which is commonly known and described as the "Anderson Marine" property. The City of Edmonds has indicated its desire and intent to demolish and remove a building, and certain other improvements, on the City's Anderson Marine property which both utilizes the Party Wall as a part of such building and provides support to the Party Wall. Thereafter, the City will discontinue all significant use of the Party Wall and wishes to end the obligations it has or may have for the future maintenance and repair of the Party Wall. 1.3 WPA's Pro ert . Waterfront Park Associates, Inc. is the current owner of the second of the two parcels of real property described in the Party Wall Agreement which is commonly known as the "Allbery" property. Waterfront Park Associates' "Allbery" property is improved with a building which utilizes the Party Wall for support of such building and as part of the improvements of such building. WPA wishes to have the continued and unimpaired use of the Party Wall as it is now constructed, and as it is hereafter re -constructed, rem and maintained for such purposes. 1.4 Pending I,awstlit. A dispute exists between the parties which in part concerns the Party Wall and the Party Wall Agreement which is summarized from the perspective of WPA 06/05/95 WSS95469.5AGR/F0060.050.155 _ 1_ in a complaint (the "Complaint") filed by WPA as Cause No. 94-2-04674-6 in the Superior Court of Snohomish County, Washington. WPA's "Second Cause of Action" against the City, as described in the Complaint, requests declaratory and compensatory judgments in favor of WPA and against the City concerning the Party Wall and the Party Wall Agreement. The "Fourth Cause of Action" of WPA's Complaint, and in particular Paragraph 81 thereof, alleges that because of certain acts and omissions of the City concerning the Party Wall, the City has taken or inversely condemned certain of WPA's vrivate roperty rights and interests in and with respect to the arty 1 and the Party Wall Agreement. WPA requests that compensation and damages be awarded to it for the City's taking of WPA's property. 1.5 Settlement Desired. The City and WPA desire to settle WPA's "Second Cause of Action" and that portion of WPA's "Fourth Cause of Action" against the City contained in paragraph 81 of the Complaint concerning the Party Wall and the Party Wall Agreement. 1.6 Associated Agreement. As conditions of this Settlement Agreement and Release, the City and WPA have agreed in an associated a reert��nt -- a "Reformation of Party _Wall Agreement" -- on the terms, provisions and conditions to resolve WPAsagainst the City fora maees to the Party Wall and WPA's rights and interests therein, and on terms and conditions for the support, repair, restoration and or replacement of the Party Wall for the continued use and benefit of WPA and the Allbery property. H. TERMS OF SETTLEMENT 2.1 Release of Certain Claims by WPA. WPA hereby agrees that upon: 2.1.1 The City's payment of the sum set forth in Article 3; 2.1.2 Delivery to WPA of a duly authorized, executed, dated and acknowledged original counterpart of the "Reformation of Party Wall Agreement" suitable for recording with the Snohomish County Auditor within five (5) business days of execution of this agreement; and 2.1.3 City of Edmonds agrees to obtain all necessary permits, approvals (including Architectural Design approval or waiver thereof) or an emergency waiver of a Shoreline Substantial Development Permit, for the demolition of the Anderson Marina Buildings and for reconstruction of the common wall including rear stairs and parapet rai lines. WPA will forever release and discharge the City of Edmonds from all claims for damages which have accrued on or before the effective date of this Agreement concerning the Party Wall, the Party Wall Agreement and WPA's rights, title and interests in and to the Party Wall and the Party Wall Agreement, as such claims are described in the "Second Cause of Action" of the Complaint and in paragraph 81 of the "Fourth Cause of Action" of the Complaint including, without limiting the generality of the foregoing, all damages, liabilities, costs, attorneys' fees and charges of every kind arising from, or accrued or incurred by WPA in connection with, 06/05/95 WSS95469.5AGRX0060.050.155 -2- such claims including by way of illustration and not limitation, cost profits, rents or revenue from WPA's building during its repair. 2.2 Exchange of Documents. The City and WPA agree to contemporaneously exchange duly authorized, executed, and acknowledged duplicate original counterparts of this Settlement Agreement and the Associated Agreement. With its delivery of this Agreement, WPA shall furnish to the City either a copy of the minutes of corporate meeting or directors' consent to corporate action authorizing the execution and delivery of this Settlement Agreement and the Associated Documents by and for WPA. With its delivery of this Agreement, the City of Edmonds shall furnish to WPA copies of all resolutions and transcripts of any other actions required by law to be approved by vote or other action, taken and performed by the City of Edmonds authorizing the execution and delivery of this Agreement and the Associated Agreement by and for the City of Edmonds. 2.3 Preservation of Rights. Notwithstanding WPA's release of those certain claims against the City as described in Section 2.1 of this Agreement, all obligations and duties on the part of the City of Edmonds as set forth, contained in or arising under this Agreement and or the Associated Agreement which are to be performed or kept by the City after the date of this Agreement, shall remain in force and effect and shall be continuing obligations and duties of the City notwithstanding this Settlement Agreement and Release and WPA's other claims under the lawsuit shall continue. M. FINANCIAL TERMS Lump Sum Payment. The City agrees to pay the sum of Eighty Thousand Dollars ($80,000.00) upon execution of this Settlement Agreement and a contemporaneous Reformation and PgM Wall Agreement. IN. AMENDMENT OF ACTION Subject to the prior satisfaction of all of the conditions described in this Agreement, the Complaint shall be amended by WPA's legal counsel to delete the Second Cause of Action, paragraph 81 of the Complaint and such other provisions of the Complaint as are appropriate and consistent with this Agreement. At WPA's election, the entire Complaint may be dismissed without prejudice. V. GENERAL PROVISIONS 5. Re re entations And Warranties Of The Parties. Each of the parties mutually warrant and represent, each to the other as follows: 5.1. No promise or inducement to settle the claims set forth in the Complaint has been offered except as set forth herein. 06/05/95 WSS95469.SAGR/F0060.050.155 -3' 5.2. No portion of any claim, right or cause of action that any party hereto has or might have arising out of or in connection with the lawsuit represented by the Complaint or any of the factual contentions relating thereto has been assigned or transferred to any other person or entity, whether by subrogation, operation of law or otherwise. 5.3. Each party hereto has the power to fully release and discharge each and every one of the claims, demands, and causes of action covered by this Agreement, and to undertake and perform the obligations and duties to be kept and performed by such party as provided in this Agreement and each of the Associated Agreement. 6. A -regiment of No Evidentiary Effect. This Agreement is made, executed, given and accepted as part of the compromise and settlement of disputed claims. WPA, the City of Edmonds, and each of them, deny any liability of any kind to each other or to any other person for any purpose. This Agreement is made solely and entirely as a compromise and for the purpose of fully and finally resolving those claims described in this Agreement to be settled and released, and it is acknowledged and agreed that nothing herein or in the Associated Agreement shall be deemed to be a waiver, satisfaction or release of any rights, claims and causes of action which either party has or may have which are not specifically settled and released by this Agreement. 7. Execution of Additional Documentation. WPA and the City agree to perform in good faith any and all acts, and to execute and deliver all additional documents and instruments as may be necessary and reasonably required to perform the covenants and satisfy the conditions and undertakings contained in this Agreement and the Associated Agreement. 8. Independent Counsel. The parties hereto acknowledge and agree that they have each been represented in the negotiation and preparation of this Agreement by independent counsel of their choice, that they have read this Agreement, have had its contents fully explained to them by their own legal counsel, and are aware of the contents hereof and of its legal effect. 9. Integration. This Agreement and the Associated Agreement contain the entire agreement and understanding of the parties with respect to the entire subject matter hereof, and there are no representations, inducements, promises or agreements, oral or otherwise, not embodied therein. Any and all prior discussions, negotiations, commitments and understandings relating thereto are merged herein. There are no conditions precedent to the effectiveness of this Agreement other than as stated herein, and there are no related collateral agreements existing between the parties that are not described or referenced herein. This Agreement and the Associated Agreement are conditioned on the full and faithful performance of all such agreements by each of the parties hereto in accordance with their terms so that a breach of or failure or refusal to perform any of the terms or conditions of any one or more of such agreements shall be a breach of all such agreements. 06/05/95 WSS95469.5AGR/F0060.050.155 -4- 10. Interpretation and F 'r Construction of Agreement. This Agreement has been negotiated and reviewed and approved by each of the parties, each of whom has been represented by independent legal counsel. In the event it should be determined that any provision of this Agreement is uncertain or ambiguous, the language in all parts of this Agreement shall be in all cases construed as a whole according to its fair meaning and not strictly construed for nor against any party. If any term of this Agreement shall be determined to be invalid, illegal, or unenforceable, in whole or in part, the validity of any of the other terms of this Agreement shall not in any way be affected thereby. 11. Amendment and/or Modification. Neither this Agreement nor any term or provision hereof, may be changed, waived, discharged, amended or modified orally or in any manner other than by an instrument in writing signed by each of the parties hereto. 12. Survival Of Rights And Obligations Of Parties. The termination of this Agreement for any reason whatsoever shall not relieve a party from any liability, obligation or agreement which pursuant to any provision of this Agreement is to survive or is required to be performed after such termination. 13. Unavoidable Circumstances. No party hereto shall be deemed to be in breach or in violation of this Agreement if the party is prevented from performing any of its obligations hereunder for any reason beyond its reasonable control including, without limiting the generality of the foregoing, acts of God, riots, strikes, fires, storms, public disturbances, or any regulation of any federal, state or local government or any agency thereof 14. Costs and Attome s' Fees. The Party's shall bear their own costs and attorneys' fees. 15. Binding, Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties, and their legal representatives, successors, assigns and heirs. 16. Parag_ranh Heading. The paragraph headings in this Agreement are for convenience only and in no way define, limit, extend or interpret the scope of this Agreement or of any particular paragraph hereof. 17. Notices. To be effective, any notice hereunder shall be in writing, delivered in person or mailed by certified or registered mail, postage prepaid, to the affected party or parties at the addresses set forth below their signatures hereto, or to such other address as the parties may hereafter designate. 18. Waiver of Breach. The failure of either party hereto to insist upon strict performance of any of the covenants and agreements herein contained, or to exercise any right herein conferred, in any one or more instances, shall not be construed to be a waiver or relinquishment of performance of any covenant or agreement, or of any such right, but the same 06/05/95 WSS95469.5AGR/F0060.050.155 -5- shall be and remain in full force and effect. Waiver by the City or WPA of any provision of this Agreement or any matter or time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 19. Time. Time is of the essence with respect to the performance of each of the covenants and agreements set forth herein. 20. Law. This Agreement shall be governed by, construed and enforced in accordance with the internal laws of the State of Washington. Venue for any action under this Agreement shall lie in Snohomish County, Washington. 21. Specific Performance. If either party shall default in its obligations under this Agreement, the parties each acknowledge that it would be extremely difficult to measure the resulting damages. Accordingly, in addition to any other rights or remedies it may have, any nondefaulting party shall be entitled to restraint by injunction of a violation, or attempted or threatened violation, of any obligation or provision of this Agreement, or to a decree specifically compelling performance of any such obligation or provision. In such event, the parties each expressly waive any defense that a remedy in damages or at law would be adequate. 22. Costs and Attorne s' Fees. If any party hereto shall bring any suit, arbitration or other action against another for relief, declaratory or otherwise, arising out of this Agreement, the prevailing party shall have and recover against the other party, in addition to all court costs, expert witness fees and other disbursements, such sum as the court or arbitrator may determine to be a reasonable attorney's fee, and such recovery may include reasonable fees and costs incurred in connection with the matter but prior to the commencement of the action. 23. Counterparts. This Agreement shall be signed in counterparts, and thereafter each counterpart shall be deemed to be an original. CITY OF EDMONDS: rayor La-um-M. Hall ATTEST/AUTHENTICATED: AddA.e�:- z� 6/"'� andy Ch se, City Clerk 06/05/95 WSS95469.5AGR/F0060.050.155 -6- WATERFRONT PARK ASSOCIATES, INC.: By / :G ra d Z V' Its f� r r Address: Afe-ry X4 u� 4' y Wzc' CITY ATTORNEY: W. cott Snyder STATE OF WASHINGTON ) ) ss. COUNTY OF S N O g I M +s 4 ) ATTORNEYS FOR WPA: Kevin P. Hanchett LASHER HOLZAPFEL SPERRY & EMERSON I certify that I know or have satisfactory evidence that +2 + ;a A, c t\ s 1A is the person who appeared before me, and said person acknowledged that he/she was authorized to execute the instrument and acknowledged it as n+-1vs i o V N T of Waterfront Park Associates, Inc. to be the free and voluntary act and deed of such party for the uses and purposes mentioned in this instrument. DATED: 6-6- C)1Z, (Sin re) ` CL _n 0cxCY-U, . (PrintName) NOTARY PUBLIC My appointment expires: `k Q4 -9K 06/05/95 WSS95469.5AOR/F0060.050.155 -7- REFORMATION OF PARTY WALL AGREEMENT �� 7 191. �r 1994 THIS AGREEMENT is entered into as of the above date by and between the City of Edmonds, Washington, a Washington municipal corporation, ("City of Edmonds" or "City") and Waterfront Park Associates, Inc., a Washington corporation ("WPA"). IN CONSIDERATION OF the undertakings, covenants and conditions contained in this Agreement, and the benefits to the parties derived therefrom, the City of Edmonds and Waterfront Park Associates, Inc. hereby agree: I. Facts This Agreement is made with reference to the following facts. 1.1 The predecessors in title of the City of Edmonds and WPA entered into a Party Wall Agreement (the "Party Wall Agreement") dated March 18, 1964, recorded at Volume 846, Page 340 of the Land Records of Snohomish County, Washington, concerning a party wall (the "Party Wall") which lies on and on either side of the common property line between two parcels of real property described in Sections 1.2 and 1.4 of this Agreement which are now owned by the City and WPA. 1.2 The City of Edmonds is the current owner of one of the properties described in the Party Wall Agreement, the legal description of which is contained in Exhibit No. 1 hereto, and which is commonly known and described as the "Anderson Marine" property. 1.3 The City of Edmonds has indicated its desire and intent to demolish and remove a building, and certain other improvements, on the City's Anderson Marine property which both utilizes the Party Wall as a part of such building and provides support to the Party Wall. Thereafter, the City will discontinue all substantial use of the Party Wall, as provided below, and. wishes to end the obligations it may have for the future maintenance and repair of such wall. 1.4 Waterfront Park Associates, Inc. is the owner of the second parcel of real property described in the Party Wall Agreement, the legal description of which is contained in Exhibit No. 2 hereto, and which is commonly known as the "Allbery" property. 1.5 Waterfront Park Associates' "Allbery" property is improved with a building which utilizes the Party Wall for support for such building and as part of the improvements of such building. WPA wishes to have the continued and unimpaired use of the Party Wall, as it is now constructed and hereafter re -constructed, repaired and maintained, for such purposes. 06/05/95 WSS103364.4AGR/F0006.050.155 1 1.6 Coincident with this Agreement, the City of Edmonds and WPA agree in other documents (the "Associated Agreement") on the terms, provisions and conditions to resolve WPA's claims against the City for damages to the Party Wall, resulting from the prior use of the Party Wall by the City's predecessors in title to the Anderson Marine property and from the City's actions with respect to the Party Wall, and for the support, repair, restoration and or replacement of the Party Wall for the continued use and benefit of the Allbery property. 1.7 As part of the resolution of the issues between them relating to the Party Wall, the City of Edmonds and WPA do by this Agreement reform the Party Wall Agreement to: reflect the City's current ownership of the Anderson Marine property; provide for the City's permanent removal of all structures on the Anderson Marine property which are attached to the Party Wall or appurtenant thereto; provide for the termination of the City's obligations for repair and maintenance under the Party Wall Agreement (except as provided in the Associated Agreement); provide rights, and for the continuation of rights, for the restoration, replacement and repair of the Party Wall and certain of the structures and components of structures on WPA's Allbery property; and to provide an easement for the continued location, use, repair, restoration and maintenance of the Party Wall, as it now exists and hereafter may be restored and reconstructed pursuant to this Agreement, the Associated Agreement or otherwise; all for the use and benefit of the Allbery property. H. Confirmation of Existing Easement. 2.1 Confirmation of Existing Easement. Except and to the extent expressly provided in this Agreement for reformation of certain rights and obligations conferred by the Party Wall Agreement, the City of Edmonds and WPA agree that the easement described in the Party Wall Agreement for the location, construction, repair, and reconstruction of the Party Wall, as it now exists and as it hereafter may be restored and reconstructed, is in all respects hereby ratified and confirmed for the exclusive use and benefit of the Allbery Property. 2.2 Use of Existing Easement. From and after the date of removal of all structures on the Anderson Marine property which are attached to the Party Wall or appurtenant thereto as provided in the Associated Agreement, the use of the Party Wall and the easement described in the Party Wall Agreement shall be for the exclusive use and benefit of the Allbery property except as provided in this Section 2.2. From and after the date of removal of the structures on the City's Anderson Marine property, the City shall not attach any buildings or structures or components of buildings or structures to the Party Wall nor shall the City use the Party Wall for enclosure or support of any buildings or structures or components of buildings or structures on the Anderson Marine property; provided, however, that the City may utilize the exterior surface of the Party Wall facing the Anderson Marine property for the support, attachment and display of art provided that such use by the City shall not weaken the Party Wall, shall not impair or interfere with the use of such wall by the Allbery property, that it shall not permanently damage such wall, and that the City shall not display any art on such wall without the prior written 06/05/95 WSS103364.4AG"0006.050.155 2 approval of WPA, which consent shall be granted or withheld in WPA's reasonable discretion given due consideration to the use of the Allbery property. M. Associated Easement for Use. Repair and Maintenance. 3.1 Easement Area. The parties hereby reform the Party Wall Agreement to reserve an easement in favor of WPA, for the use and benefit of the Allbery property, for the location, use, repair. restoration and maintenance of the Party Wall as it now exists and as it hereafter may be restored, reconstructed and maintained pursuant to this Agreement, the Associated Agreement or otherwise. Without limiting the generality of the foregoing, the easement hereby reserved may be used by the dominant estate for all reasonable purposes attendant to the maintenance, repair and reconstruction of the Party Wall including, but not limited to, the passage of construction, vehicles, placement and operation of construction equipment, activities of workmen, and storage during construction and maintenance activities of materials, dirt, and debris associated with such activities. The easement hereby reserved shall be for the exclusive use and benefit of the Allbery property over, under and across that portion of the Anderson Marine property lying within a strip of land twenty feet (20.00') in width, ten feet (10.00') on each side of a centerline, which centerline is a series of points parallel to and ten feet northeasterly of the common boundary line between the City's Anderson Marine property and WPA's Allbery property, which common boundary line is described as follows: Beginning at a point on the westerly line of the Great Northern Railway right of way 650 feet north 41 o east from where said right of way intersects the south line of Government Lot 2, Section 23, Township 27 north, Range 3 east, W.M., thence north 49o00' west to a point on the Government Meander Line, thence north 51o57' west to a point on the Inner Harbor Line. 3.2 Estates and Terms of Easement. As to the easement described in Section 3. 1, the City's Anderson Marine property described in Exhibit No. 1 is the servient estate, and WPA's Allbery property described in Exhibit No. 2 is the dominant estate. The easement reserved in Section 3.1 of this Agreement benefits the dominant estate and is intended to and shall touch and concern the use of the dominant estate and as such shall run with the land, benefiting the dominant estate and burdening the servient estate. The reserved easement described in Section 3.1 hereof shall continue in perpetuity unless and until extinguished as provided below in this Agreement. 3.3 Safe . WPA understands and acknowledges that the City of Edmonds intends to use the Anderson Marine property as a public park, and agrees that any use of the easement described in Section 3.1 hereof for construction, maintenance and repair of the Party Wall shall include reasonable efforts to separate and safeguard the public from such activities, and to screen such activities. During any and all maintenance and construction activities within the easement area, the owner of the Allbery property shall undertake and perform all necessary safety and 06/05/95 WSS103364.4AGR/F0006.050.155 3 security activities within the easement area at its sole cost and expense, and shall hold harmless and indemnify the City, its officers, agents and employees from any and all claims, loss or damage to persons or property arising from or out of its use of the easement including the reasonable cost of defense, by the City's legal counsel, of any such claims asserted against the City; provided, however, that this provision shall not be construed or applied to indemnify or hold harmless the City, its officers, agents and employees for or with respect to their own intentional or negligent acts or omissions to act. Nothing in this Section nor in any other term or provision of this Agreement shall create any right or benefit whatsoever in third parties, and nothing in this Section is intended to be nor shall be construed or applied for the benefit of any person, firm, organization or entity not a party hereto, and no such person, firm, organization or entity shall have any right or cause of action by virtue of this Section or of any other term or provision of this Agreement. 3.4 Costs of Use. From and after the performance of all obligations and payment of all sums required of the City of Edmonds as provided in the Associated Agreement, the then owner of the Allbery property shall bear all responsibility and pay all costs of repair, restoration, maintenance, construction, reconstruction and removal of the Party Wall as it now and as it may hereafter exist. 3.5 Restoration of Easement Area. Upon completion of any maintenance, repair, restoration or other construction activities within the easement area described in Section 3.1, the easement area shall be restored to substantially the same condition it was in immediately prior to the commencement of such activities. IV. Termination of Easements 4.1 Termination of Easements. The easements granted and conveyed by the Party Wall Agreement and by Section 3.1 of this Agreement shall remain in full force and effect until the earlier of. (a) such time as the Party Wall as it now exists and as it hereafter may be repaired, reconstructed and maintained shall be damaged or destroyed and the then owner of the dominant estate shall fail to elect to repair or reconstruct such wall within forty-five (45) days after written notice from the City of the demand for such election and within forty-five (45) days thereafter shall fail to commence such repair or reconstruction; or (b) upon the election, at any time, of the then owner of the dominant estate to remove the Party Wall. Upon either such event, the then owner of the dominant estate shall take all actions reasonable and appropriate to commence removal of that portion of the Party Wall within the easement area. For purposes of this Section, the work to be performed for repair, restoration and reconstruction of the Party Wall pursuant to the Associated Agreement shall not be an event terminating the easements described in Section 3.1 and the Party Wall Agreement. 06/05/95 WSS103364.4AGR/F0006.050.155 4 V. Relationship of Agreements 5.1 Relationship of Agreements. This Agreement and the Associated Agreement are conditioned on the execution and full and faithful performance of all such agreements by each of the parties hereto in accordance with their terms so that a failure or refusal to perform any of the terms or conditions of any one or more of such agreements shall be a breach of all such agreements. VI. General Provisions 6.1 Independent Counsel. The parties hereto acknowledge and agree that they have each been represented in the negotiations and preparation of this Agreement by independent counsel of their choice, that they have read this Agreement, have had its contents fully explained to them by their own legal counsel, and are aware of the contents hereof and of its legal effect. 6.2 Entire Agreement. This Agreement, the Exhibits hereto, and the Associated Agreement contain the entire agreement and understanding of the parties with respect to the entire subject matter hereof, and there are no representations, inducements, promises or agreements, oral or otherwise, not embodied therein. Any and all prior discussions, negotiations, commitments and understandings relating thereto are merged herein. There are no conditions precedent to the effectiveness of this Agreement other than as stated herein, and there are no related collateral agreements existing between the parties that are not described or referenced herein. 6.3 Interpretation and Fair Construction of Agreement. This Agreement has been negotiated and reviewed and approved by each of the parties, each of whom has been represented by independent legal counsel. In the event it should be determined that any provision of this Agreement is uncertain or ambiguous, the language in all parts of this Agreement shall be in all cases construed as a whole according to its fair meaning and not strictly construed for nor against any party. 6.4 Amendment and/or Modification. Neither this Agreement nor any term or provision hereof, may be changed, waived, discharged, amended, or modified orally, or in any manner other than by an instrument in writing signed by all of the parties hereto. 6.5 Validi . In case any term of this Agreement shall be determined to be invalid, illegal, or unenforceable, in whole or in part, the validity of any of the other terms of this Agreement shall not in any way be affected thereby. 6.6 Documents. Each party to this Agreement shall perform any and all acts and execute and deliver any and all documents and instruments as may be necessary and proper 06/05/95 WSS103364.4AGWF0006.050.155 5 under the circumstances in order to accomplish the intents and purposes of this Agreement or to otherwise carry out its provisions. 6.7 Survival of Ri hts of Parties. The termination of this Agreement for any reason whatsoever shall not relieve a party from any liability, obligation or agreement which pursuant to any provision of this Agreement is to survive or is required to be performed after such termination. 6.8 Unavoidable Circumstances. No party hereto shall be deemed to be in breach or in violation of this Agreement if the party is prevented from performing any of its obligations hereunder for any reason beyond its reasonable control including, without limiting the generality of the foregoing, acts of God, riots, strikes, fires, storms, public disturbances, or any regulation of any federal, state or local government or any agency thereof. 6.9 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties, and their legal representatives, successors, assigns and heirs. 6.10 ParaRWh Headings. The paragraph headings in this Agreement are for convenience only and in no way define, limit, extend or interpret the scope of this Agreement or of any particular paragraph hereof. 6.11 Recordation. This Agreement shall be recorded in the land records of Snohomish County, Washington. The parties shall each pay one-half of all costs of such recordation. 6.12 Notices. To be effective, any notice hereunder shall be in writing, delivered in person or mailed by certified or registered mail, postage prepaid, to the affected party or parties at the addresses set forth below their signatures hereto, or to such other address as the parties may hereafter designate. 6.13 Waiver of Breach. The failure of any party hereto to insist upon strict performance of any of the covenants and agreements herein contained, or to exercise any option or right herein conferred, in any one or more instances, shall not be construed to be a waiver or relinquishment of performance of any covenant or agreement, or of any such option or right, but the same shall be and remain in full force and effect. 6.14 Time. Time is of the essence with respect to the performance of each of the covenants and agreements set forth herein. 6.15 Law. This Agreement shall be governed by, construed and enforced in accordance with the internal laws of the state of Washington. Venue for any action under this Agreement shall lie in Snohomish County, Washington. 06/05/95 WSS103364.4AGRM0006.050.155 6 6.16 S ific Performance. If any party shall default in its obligations under this Agreement, the parties each acknowledge that it would be extremely difficult to measure the resulting damages. Accordingly, in addition to any other rights or remedies it may have, any nondefaulting party shall be entitled to restraint by injunction of a violation, or attempted or threatened violation, of any obligation or provision of this Agreement, or to a decree specifically compelling performance of any such obligation or provision. In such event, all parties hereto each expressly waive any defense that a remedy in damages or at law would be adequate. 6.17 Costs and Attorneys" Fees. If any party hereto shall bring any suit, arbitration or other action against another for relief, declaratory or otherwise, arising out of this Agreement, the prevailing party shall have and recover against the other party, in addition to all court costs, expert witness fees and other disbursements, such sum as the court or arbiter may determine to be a reasonable attorney's fee, and such recovery may include reasonable fees and costs incurred in connection with the matter but prior to the commencement of the action. 6.18 Countemarts. This Agreement shall be signed in counterparts, and thereafter each counterpart shall be deemed to be an original. CITY OF EDMONDS, WASHINGTON By: Laura . Hall Its Mayor ATTEST/AUTHENTICATED: Sandr�S. Chase, City Clerk CIT ATTORNEY: L . S tt Snyde City Attorney City of Edmonds, Washington 06/01/95 WSS103364.2AGR/F0006.050.155 7 WATERFRONT PARK ASSOCIATES, INC. By_iQi�t%�i Its President Address: ATTORNEYS FOR WPA: Michael K. Murray, P. S. Of Counsel LASHER HOLZAPFEL SPERRY & EBBERSON STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me Laura M. Hall and Sandra S. Chase, t:o me, known to be the Mayor and City Clerk, respectively, of the City of Edmonds, Washington, the municipal corporation that executed the within and foregoing instrument and acknowledged to me that signed the same as free and voluntary act and deed for the purposes therein mentioned. GIVEN UNDER MY HAND AND OFFICIAL SEAL this ]k day of 1995 ��� 6, �00 - - - Typed Name: Huda E. Olsen NOTARY PUBLIC in and for the State of Washington residing at Commission Expires A r- l — `l8 STATE OF WASHINGTON ) )ss. COUNTY OF KING ) On this day personally appeared before me IZ,c hcL, a R • C,�,�n to me known to be the of Waterfront Park Associates, Inc., the corporation that executed the within and foregoing instrument and acknowledged to me that _ signed the same as free and voluntary act and deed for the purposes therein mentioned. GIVEN UNDER MY HAND AND OFFICIAL SEAL this day I of " , 1995 •����Mprni*�i�l. T Name: r k� k �•,� NOTARY PUBLIC in and for the State of Washington residing at eve-ve- �i Commission Expires PUMC - % •,ram pF wASN�.�`• 06/05/95 WSS103364.4AGR/F0006.050.155 8 EXHIBIT #1 The Anderson premises are legally described as follows: All that portion of Government Lot 2, Section 23, Township 27 north, Range 3 east, W.M., together with first class tide lands in front thereof, described as follows: Commencing at the intersection of the westerly line of the Great Northern Railway right of way with south line of said Government Lot 2; thence north 41o00' east along said right of way line 650 feet to true point of beginning; thence north 41o00' east along said right of way line 200 feet; thence north 49o00' west to a point on Government meander line; thence south 39o28' west along said meander line 200.07 feet; thence south 49o00' east to the true point of beginning. Also commencing at the intersection of westerly line of right of way of Great Northern Railway with south line of said Government Lot 2; thence north 41o00' east along said right of way line 650 feet, thence north 490 west to a point on the Government meander line which is the true point of beginning; thence north 39o28' east along said meander line 200.07 feet; thence north 56o43' west 315.09 feet to a point on the inner harbor line; thence south 45o00' west along said inner harbor line 175.12 feet; thence south 51o57' east 330.26 feet, more or less, to the true point of beginning. 06/05/95 WSS103364.4AGR/F0006.050.155 9 EXHIBIT #2 The Allbery premises are legally described as follows: All that portion of Government Lot 2, Section 23, Township 27 north, Range 3 east, W.M., together with first class tide lands in front thereof, described as follows: Commencing at the intersection of the westerly line of the Great Northern Railway right of way with south line of said Government Lot 2; thence north 41o00' east along said right of way line 450 feet to true point of beginning; thence north 49o00' west to a point on Government meander line; thence along said meander line north 51o23' east 135.60 feet and north 39o28' east 66.64 feet; thence south 49o00' east to a point on westerly line of said railway right of way; thence south along said westerly line of said right of way to the true point of beginning; Also commencing at the intersection of westerly line of right of way of Great Northern Railway with south line of said Government Lot 2; thence north 41o00 east along said right of way line 450 feet, thence north 49o00' west to a point on the Government meander line which is the true point of beginning; thence along said meander line north 51o23' east 235.60 feet and north 39o28' east 66.64 feet; thence north 51057' west 330.26 feet to a point on inner harbor line; thence south 45o00' west along said inner harbor line 175.13 feet; thence south 47o32' east 319.63 feet, more or less, to the true point of beginning. 06/05/95 WSS103364.4AGR/F0006.050.155 10 June 9, 1995 Kevin P. Hanchett Lasher, Holzapfel, Sperry & Ebberson 2600 Two Union Square 601 Union Street Seattle, WA 98101-4000 Subject: Waterfront Park Associates Dear Mr. Hanchett: Enclosed you will find certified copies of the following documents approved by the Edmonds City Council on June 6, 1995: 1. Resolution No. 819 Declaring an Emergency with Respect to the Repair of a Common Wall Shared Between Property Owned by the City of Edmonds and Waterfront Park Associates, and Exempting such work from Coverage Under the Shorelines Master Program as an Emergency Measure 2. Settlement Agreement and Release 3. Reformation of Party Wall Agreement Please call me at 771-0245 if you should have any questions or desire any further information. Sincerely, Sandra S. Chase Edmonds City Clerk sc Enclosures (PULFILLIMNT ) Statutory Warranty Reed THE GRANTORS Howard V. Anderson, Jr., as his separate property and James Gualtieri, as his separate property, for and in consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and warrants to the City of Edmonds, a Washington municipal corporation, the following described real estate, situated in the County of Snohomish, State of Washington: PARCEL A• That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B• That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; $2.0 � Tfeasuror'S rec ORIGINAL Hy Deputy THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 51°57' East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. Subject to numbers 1 through 8 of Exhibit B of Schedule B of Commonwealth Land Title Company of Snohomish County, title commitment no. 039389, dated November 30, 1992. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December ?, 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed- or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. By DATED this _l 4 son, Jr. STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) day of C'.' / L By Fames Gualtieri On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and a NCURY ��,k '■ PLiBiK Y•"ram '" 12 �9 i��F WASH\;. J"DW34732.1 w0006.17053 official seal this -_ day of T Y PUBLIC y Appointment Expires: /y S^ .����zuu ei+hip � 4 rD�as'sioN••. SO NOTARY y _ +dam O • • .:.. •G.C�,$ STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and , 191. 41 ;••: s = 0' _ __{ N w 7 '. -. :• W G` , JDW34732.17U0006.17053 offici seal this _� day of J /N ARY PUBLIC C,myAppointment Expires:( /i r Commitment No. 039389 1. EXHIBIT B EASEMENT and the terms and conditions thereof as reserved by instrument Recorded: November 17, 1952 Recording No.: 1045210 Purpose: Ingress and egress Affects: 30 feet in width, over the Easterly portion of Parcel C 2. RESERVATIONS AND OTHER MATTERS CONTAINED IN DEED Grantor: Howard V. Anderson and Mary Riley Anderson, his wife Recorded: November 17, 1952 Recording No.: 1045210 (Copy attached) 3. RIGHTS OF THE GENERAL PUBLIC to the unrestricted use of navigable waterways and the portion of the premises subject to submergence by the waterways for navigational and recreational purposes. 4. RIGHTS OF THE UNITED STATES AND THE STATE OF WASHINGTON to regulate the use or occupancy of that portion of the premises lying below the line of the mean high tide. 5. LATERAL BOUNDARY ISSUES regarding first class tidelands and shorelands. 6. EASEMENT and the terms and conditions thereof Purpose: Anchor and guy wire Affects: Parcel C Recorded: December 28, 1956 Recording No.: 1220021 7. AGREEMENT providing easement and party wall Between: Arthur V. Allbery and Verla L. Allbery, husband and wife And: Howard V. Anderson and Mary Anderson, husband and wife Dated: September 13, 1964 Recorded:: March 18, 1964 Recording No.: 1683284 Continued. Page 2 Commitment No. 039389 EXHIBIT B 8. RESERVATIONS CONTAINED IN DEED, whereby the grantor excepts and reserves all oils, gases, coal, ores, minerals, fossils, etc., and the right of entry for opening, developing and working mines, etc., provided that no rights shall be ' exercised until provision has been made for full payment of all damages sustained by reason of such entry; together with right of the grantor or any grantee or lessee thereof, upon paying reasonable compensation, to acquire rights of way for private railroads, skid roads, flumes, canals, water courses or other easement for transporting and moving timber, stone, minerals or other products from this or other property. Grantor: State of Washington Affects: Tidelands END OF EXHIBIT B (FULFILLMENT) Quit Claim Deed THE GRANTORS Howard V. Anderson, Jr., as his separate property and James Gualtieri, as his separate property, for and in consideration of Ten and no/100 Dollars ($10.00) and any other valuable in hand paid, conveys and quit claims to the City of Edmonds, a Washington municipal corporation, any and all interest they may have or may hereafter acquire in that certain real property, including specifically their interest in reversionary rights as identified in an instrument recorded under Snohomish County Auditor's file number 1045210 which property is situated in the county of Snohomish, State of Washington and described as follows: PARCEL C• That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin on Main Street, formerly George Street, as shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where same intersects the Westerly line of Great Northern Railway right of way; THENCE North 61008' West a distance of -98.15 feet, more or less, along the extension of Southwesterly margin of Main Street to a point of intersection with the Government meander line; THENCE South 39031' West a distance of 26.60 feet along said Government meander line; THENCE South 66008 East a distance of 99.67 feet, more or less, to a point of intersection with Westerly line of right of way of Great Northern Railway Company; THENCE North 41004' East a distance of 17.86 feet along the Westerly right of way line to the True Point of Beginning. AND ALSO the following described tidelands of the first class, fronting Government Lot 2, Section 23, Township 27 North, Range, Range 3 East, W.M.; Beginning at a point on the Northwesterly production of Southwesterly margin of Main Street, formerly George Street, shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington where same intersects Westerly line of right of way of Great Northern Railway Company; THENCE North 61008' West a distance of 98.16 along extension of Southwesterly margin of Main MWA732.1X/0006.17053 ORIGINAL feet, more or less, Street_,: to point ,o F. 2.1D0 i re,9,aL,r0"-_ ce L! LC intersection with the Government meander line and True Point of Beginning; THENCE continuing North 61008' West a distance of 310.63 feet, more or less, along extension of Southwesterly margin of Main Street to the point of intersection with the Inner Harbor Line; THENCE South 44059'30" West a distance of 56.48 feet along said Inner Harbor Line; THENCE South 66008' East a distance of 322.62 feet to the point of intersection with the Government meander line; THENCE North 39031' East a distance of 26.60 feet along said Government meander line to True Point of Beginning. Situate in the County of Snohomish, State of Washington. This deed is given in fulfillment of that certain real estate contract between the parties hereto, dated December _�_, 1992, and conditioned for the conveyance of the above described property, and the covenants of warranty herein contained shall not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contract, and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. By STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) lay of A2-, a._ r Ity L 1 By awes Gualtieri On this day personally appeared before me Howard B. Anderson, Jr., to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. /&EVEN under my hand and offi r�I C r� id seal this day of ARY PUBLIC Appointment Expires: - i0s JDV134732.1X/0006.17053 STATE OF WASHINGTON ss. COUNTY OF SNOHOMISH On this day personally appeared before me James Gualtieri, to me known to be in the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and 191_� ..�rtttkltl!!I•,, v y: NOTARY ui; N1 AUBLIC C r+•••• <<WA offic' seal this day of Y PUBLIC y Appointment Expires: 7DW34732.1X/0006.17053 JDW/naa 09/23/92 R:09/29/92 SUPPLEMENTAL AGREEMENT ORIGINAL. THIS AGREEMENT is entered into between Howard Anderson and James Gualtieri, hereinafter referred to as "Sellers," and the City of Edmonds, hereinafter referred to as "Purchaser." WHEREAS, the Sellers and Purchaser entered into an Option to Purchase Real Estate Agreement in July, 1992, and WHEREAS, pursuant to the provisions of said Agreement the Purchaser has had a Level 1 Environmental Assessment conducted, and WHEREAS, said Environmental Assessment has reveal certain potential environmental liability conditions which necessitate remedial action being taken, NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: I. Removal and Disposal of Hazardous/Toxic/Dangerous Wastes From Site. A. The Sellers, specifically Howard Anderson, shall remove the two underground storage tanks and the one fuel oil tank located at the Anderson Marine property. The contents of said tanks shall be removed, the tanks excavated, removed and closed in accordance with applicable State laws, and any contaminate soils shall be excavated at the time of tank closures. Soil samples shall be collected at the time of tanks closures to document the effectiveness of the removal. B. The catch basins and piping and outfall of the on -site storm sewer system shall be excavated and visibly oil stained soils shall be removed for treatment or off -site disposal. Confirmation soil sampling shall be conducted to verify the effectiveness of the clean up. All cans of part cleaners, lubricants and the 500 gallon waste oil tank shall be removed and property disposed of in accordance with applicable State law and regulations. C. The catch basin located to the west of the Anderson Marine shop and warehouse buildings and the drain line from said basin which which goes underneath the showroom building, shall, to the extent the showroom building does not prevent access, be excavated and visibly oil stained soils, if any, shall be removed for treatment or off -site disposal. Confirmation soil sampling shall be conducted to verify the effectiveness of the clean up. - 1 - JDW29954.1AGR/0006.17053 I J rr" D. In addition, preliminary tests indicate the possible presence in the showroom ceiling of approximately 50 square feet of spray -on material which contains evidence of asbestos. Asbestos has been found in the old warehouse in the drywall mud of approximately 850 square feet of drywall and in the drywall tape associated with the drywall mud. It has also been found in the drywall mud on the south wall involving approximately 2,880 square feet of drywall. In addition, asbestos may be present in the newest layer of roofing on the showroom roof. It shall be Sellers responsibility to remove and dispose of such asbestos. Sellers are authorized to dispose of the buildings known as the "old warehouse" and the "new warehouse" and shall remove or otherwise dispose of the asbestos from said buildings prior to closing. Sellers shall be responsible for removal of the approximately 50 square feet of spray -on texture on the ceiling of the showroom building. All removal and disposal of any asbestos material shall be done in accordance with applicable State and federal laws and regulations. The foregoing items A through D shall be accomplished by Sellers, specifically by Howard Anderson or his agents or contractors, at Anderson's expense prior to closing. All materials removed for disposal and disposal of the same shall be done in the name of Sellers. Notwithstanding the foregoing, nothing contained in this supplemental agreement shall be construed as relieving Sellers from their obligations under the terms and provisions of the Option to Purchase Real Estate Agreement entered into in July, 1992, in the event that there is a subsequent discovery of any hazardous substance, dangerous or toxic waste or other material regulated by State or federal laws or regulations for which Sellers would otherwise be responsible for the cost of removal and disposal. Based upon the foregoing, the City of Edmonds hereby gives notice to the Sellers of its intent to exercise its option. II. Exercise of Option. Closing shall occur on or before November 15, 1992, as provided in paragraph 10 of the Option to Purchase Real Estate Agreement unless the clean up and disposal of the items and materials identified herein have not been completed, in which event the closing date shall be extended until such time as the Purchaser receives confirmation that the conditions set forth in this Agreement have been met. All other provisions of the Option to - 2 -- JDW29954.1AGR/0006.17053 Purchase Real Estate Agreement entered into between the parties in July, 1992, shall remain in full force and effect. DATED as of this 2nd day of October, 1992. SELLERS: r ,I Howard V. Anderson, Jr. ames Gualtieri JDW29954.1AGR/0006.17053 PURCHASER: 1; ATTEST/AUTHENTICATED: 4Ctv Clerk, honda J. March - 3 - O ZxC/s ;,07AX CIVIC CENTER ORIGINAL 5EP 2 1 1992 C EoMo so � aa�8G20 �� �r itit 05/19/92 NtltE4i ey ��'E�S, �►p4,�j� R : 07/ 01/ 9 2 fory��r ir��rryir OPTION TO PURCHASE REAL ESTATE AGREEMENT h THIS OPTION TO PURCHASE REAL ESTATE AGREEMENT is entered into between HOWARD V. ANDERSON, JR., as his separate estate, and JAMES GUALTIERI, as his separate estate, hereinafter referred to as "Sellers," and the CITY OF EDMONDS, an optional municipal code city incorporated under the laws of the State of Washington, hereinafter referred to as "Purchaser," for the purposes herein mentioned. FOR AND IN CONSIDERATION of the mutual benefits and conditions �44 hereinafter contained, the parties hereto agree as follows: 1. Description of meal Property. The Purchaser agrees to purchase, and the Sellers agree to sell, that certain real property consisting of parcels A, B and their interest in C, described in Exhibit A attached hereto and incorporated herein as if set forth in full. 2. Purchase Price and Payment Terms. The total purchase price to be paid in the event Purchaser exercises this Option shall be Two Million Fifty Thousand Dollars ($2,050,000). Both parties acknowledge that the City is seeking to acquire State matching funds through an I.A.C. grant. Both parties acknowledge that in order for the City to obtain the matching monies clear title must be obtained to the property. Therefore, in the event this Option is exercised, the terms shall be as follows: A. The purchaser requires an option on the 100% interest in this property, which is held in undivided interests. James Gualtieri, as his separate property, owns an undivided 29/60th interest, and Howard V. Anderson, Jr., as his separate property, owns an undivided 31/60th interest. Payment for these interests shall be made in the following -manner: (1) The undivided 31/60th interest belonging to Howard V. Anderson, Jr. is equal to the sum of One Million Fifty -Nine Thousand One Hundred Sixty -Six and 67/100 Dollars ($1,059,166.67). Said sum shall be paid in the following manner: a. $500,000 in cash including Option money already paid at time of closing, consisting of all principal. JDW21028.1A/0006.170.053 - 1 - b. The remaining balance of $559,166.67 shall bear interest at the rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: ten (10) equal annual installments of blended principal and interest with the first payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. (2) The undivided 29/60th interest belonging to James Gualtieri, as his separate property, is equal to Nine Hundred Ninety Thousand Eight Hundred Thirty -Three and 33/100 Dollars ($990,833.33). Said sum shall be paid in the following manner: a. No payment at the time of closing. b. The balance of $990,833.33 shall bear interest at the rate of 6.25% per annum on the declining principal balance, with said balance to be paid in the following manner: ten (10) equal annual installments of blended principal and interest with the first payment of principal and interest due one year after the date of closing and each succeeding year thereafter until the entire balance of principal and interest is paid in full. B. Notwithstanding the foregoing, in the event the Purchaser obtains I.A.C. matching funds for this purchase, then, in said event, the entire remaining balance of principal and interest on the two obligations shall be paid in full. C. Notwithstanding the foregoing, nothing shall prohibit the Purchaser from at any time prepaying all or any portion of the principal and interest balance owing on either or both of said obligations, at Purchaser's sole discretion. D. Purchaser shall provide Sellers with a letter from independent bond counsel of Purchaser's selection, that at the time of the closing of this transaction, in the event the Option is exercised, JDW21028.1A/0006.170.053 - 2 - that the interest paid by Purchaser to Sellers is not subject to Federal income taxation. E. Sellers shall have ninety (90) days from the date of closing to remove their business inventory and equipment and all other personal property, excluding fixtures, from the premises. F. Sellers and Purchaser shall enter into a real estate contract embodying the terms and conditions set forth in this Option as specified in §8. 3. Closing Costs. In the event of the exercise of this Option, Purchaser will pay one-half of the escrow costs. The cost of title insurance (ATLA policy) and one-half of the escrow fee shall be paid by Howard V. Anderson, Jr. from the proceeds deposited by Purchaser in escrow. Said title insurance shall be provided by Commonwealth Land Title Company of Snohomish County. Costs of recording of the real estate purchase contract encompassing the terms of this Option Agreement shall be paid by Purchaser. Taxes shall be prorated as of date of closing. 4. Fee Title. If the Option is exercised, it is the intent of the Sellers to sell and Purchaser to acquire fee title free and clear of all encumbrances to parcels A and B of Exhibit A and all of Sellers interest in parcel C of Exhibit A. Said property is being purchased for a public purpose, it being Purchaser's intent to develop and maintain said property as a public park in perpetuity. This statement of intent shall not create nor be construed as creating any right of reversion or defeasible fee in the Sellers or their heirs or successors in interest. 5. city Council Approyal. This Option agreement is subject to approval by the City Council, authorizing the Mayor to execute it on behalf of the Purchaser. 6. Condition of Title. Title to the property is to be free and clear of all liens, encumbrances or defects except those which have been identified in this written agreement or which may otherwise be waived in writing by Purchaser on or before closing date. 7. Representations and Warranties. A. Sellers have no knowledge of or have received no claim or notice from any governmental agency of any violation of laws, ordinances or regulations relating to the property. JDW21028.1A/0006.170.053 - 3 B. Sellers have no knowledge of or have received no claim or notice of any government or judicial proceeding (threatened or actual) affecting the property. C. Sellers warrant that no hazardous substance or dangerous or toxic waste or other material regulated by State or Federal laws or regulations has been lawfully or unlawfully deposited upon the property. D. Sellers warrant that they are the owners of the property and are authorized to sign this Option and have the legal right to sell the property under the conditions set forth in this Agreement. 8. Conveyances. If the Option is exercised the Sellers and Purchaser shall enter into a real estate purchase contract encompassing the terms of this Option agreement. Sellers shall, as a part of the closing, execute a Statutory Warranty (Fulfillment) Deed, substantially in the form of Exhibit B attached hereto and hereby incorporated in full by this reference, which shall be placed in a true escrow, which true escrow and the collection of the contract, shall be established with U. S . Bank, Edmonds Branch, for the purpose of collection of the contract, and upon completion of the obligations by the Purchaser under said contract, instructions to the true escrow agent shall provide for delivery of the Statutory Warranty (Fulfillment) Deed to the Purchaser for recording. 9. Possession. Said contract shall provide that Sellers shall deliver possession of the property to Purchaser at the time of closing subject to the provisions of paragraph 2(E) above, granting Sellers time to remove their personal property from the premises. 10. Closing. This sale shall be closed within forty-five (45) days of the date that Purchaser gives notice to Seller of its desire to exercise this Option. PROVIDED, however, said closing shall not be later than November 15, 1992. 11. Duration of Option. This Option shall be in existence for a period running from the date of this agreement through October 31, 1992. The Option may be exercised by delivering notice of the Purchaser's intent to exercise said Option to the Sellers as provided in paragraph 12. 12. Notices. All notices which may be or are required or permitted to be given by either party to the other party JDW21028.1A/0006.170.053 - 4 - . r vu. 2 9 5 PAGE j under this Option shall be in writing. All notices by a party to the other party shall be delivered personally or sent by United States mail, postage prepaid, addressed to the other party at the address set forth below, or such other address as the party to which the notice is sent may from time to time designate. If any notice is mailed, it shall be conclusively deemed received three (3) days following the date it is deposited in the mail (the date of mailing shall be counted as one of the three days). The postmark affixed shall be conclusive evidence of the date of mailing. Notices to be sent to: Purchaser: Sellers: City of Edmonds 1) Howard V. Anderson, Jr., ,a Laura M. Hall, Mayor as his separate property, f1,k' 250 5th Avenue N. 7419 ;2e0th St. S.W. L Edmonds, WA 98020 Lynnwood, WA 98036 2) James Gualtieri, as his separate property, r42 E. 12420 Mansfield, Apt.3 Spokane, WA 99216 AND TO Jeannette A. Cyphers a/k/a Jackie Cyphers Attorney -at -Law Suite 304 Northgate Plaza Building 9709 3rd Avenue N. E. Seattle, WA 98115 13. Closing Agent. In the event this Option is exercised the closing shall be performed by Commonwealth Land Title Company of Snohomish County. 14. Survival and Indemnification. A. Except as specifically provided otherwise in this Agreement, the agreements, covenants, promises, representations and warranties contained in this Agreement or contained in any documents or instruments delivered pursuant to this Agreement shall fully survive closing and delivery of all documents and instruments delivered at or in connection with closing. B. Sellers hereby agree to indemnify and hold Purchaser harmless from and against any and all losses, damages, liabilities, costs and expenses, including reasonable attorney's fees, incurred by JDW21028.1A/0006.170.053 - 5 - ' � `- VOI. 2 5 9 5 PAGE � J Purchaser by reason of or arising out of the duties or liabilities of Sellers which are not specifically or expressly assumed by Purchaser by reason of the incorrectness or breach of any of Sellers' representations and warranties contained in this Option. 15. Hazardous Substance Testing. Sellers herewith grant permission to the Purchaser to come upon and perform, or have performed on their behalf by others, such tests as Purchaser deems necessary to ascertain whether or not there is any hazardous substance or dangerous or toxic waste or other material regulated by State or Federal laws or regulations which have been deposited upon and exist on the subject property. It is recognized that said tests may include test borings and other samplings. Purchasers covenant, after the completion of said tests, to restore the premises to substantially their original condition as they existed prior to the testing process. Purchaser shall coordinate said testing with Sellers so as to minimize the inconvenience with Sellers retail operation. Sellers shall not unreasonably withhold their concurrence with the time and location of said testing. Both parties acknowledge that said testing is to enable Purchaser to accomplish an environmental audit of the subject property. 16. Option Money. Purchaser shall, at the time of delivery to Sellers of a signed copy of this Option, pay to Howard V. Anderson, Jr. the sum of One Thousand Dollars ($1, 000) for and as Option money. In the event said Option is not exercised, said money shall be deemed forfeited to Howard V. Anderson, Jr. In the event said Option is exercised, said Option money shall be applied to reduce the amount of monies otherwise payable at the time of closing to Howard V. Anderson, Jr. 17. Entire Agreement. This Option constitutes the entire agreement and understanding between Purchaser and Sellers. There are not verbal or other agreements that modify or affect this Option. No representations or statements, oral or written, not made herein have induced execution of this Option agreement or have any effect upon its validity. JDW21028.1A/0006.170.053 VOL. 2595PAGE I'a0'6 18. Attorney's_Fees. If either party hereto is required to retain an attorney to bring suit to enforce any provision of this Option agreement, the prevailing party in such suit shall be entitled to reasonable attorney's fees. DATED: 7 — 2- SELLERS: HOWARD V. ANDERSON, ., Howard V. Anderson, Jr., as his separate estate JAMES GUALTIERI CJAme-s Gualtieri, as his separate estate �4AC tS�`�G-7 wli JDW21028.1A/0006.170.053 - 7 - DATED. 2-- PURCHASER: CITY OF EDMONDS Lau M. Ha 1, Mayor ATTEST/AUTHENTICATED: C y Clerk, Rfionda J. March :.04 voL. 2 5 95, PnE 13 O'7 STATE OF WASHINGTON ) ss. COUNTY OF SNOHOMISH ) On this , =D day of 1992, before me personally appeared Howard Anderson,u as his separate estate, to me known to be the individual described in and who executed the foregoing Option to Purchase Real Estate Agreement and acknowledged that he signed the same as his free and voluntary act and .dead, .;for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereto set hand and, M py official seal the day and year first abo e w itten NOTAR BLIC in a fyo'r�the Stat W ngto -,, psi ding at My Coo(ission expires: STATE OF WASHINGTON) S-&-bk-we ) ss . COUNTY OF ) -) On this �5 day of 1992, before me personally appeared James Gualtieri, hi separate estate, to me known to be the individual described in and who executed the foregoing Option to Purchase Real Estate Agreement and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hex to set my hand and affixed by official seal the day and year first a�7U�BPI t _;;:cif;•, NOTARY .•t� G ti State of Wash' cl ngton, res i�h at My Commiss' on expires: Q:Y4 JDW21028.1A/0006.170.053 iY ice: 7 }: FFT e� VOL.2595pail3UO8 EXHIBIT A PARCEL A: Commitment No. 039389 That portion of Government Lot 2, including tidelands, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the Southwesterly margin of Main Street, formerly George Street, as shown on the Plat of Edmonds, according to -the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where said production intersects the Westerly line of right of way of Great Northern Railway Company; THENCE Southwesterly along Westerly margin of said Great Northern right of way 17.86 feet to the True Point of Beginning; THENCE North 66008' West to a point of intersection with the inner harbor line, said point being South 450 West, a distance of 56.43 feet from the Southwesterly margin of the Northwesterly production of Main Street; THENCE South 450 West 26.67 feet; THENCE South 56043' East 310.09 feet, more or less, to a point of intersection with the Government Meander line; THENCE in a Southeasterly direction to a point on the Westerly margin of the Great Northern right of way which is 850 feet Northeasterly on the South line of Government Lot 2, as measured along the Westerly margin of the Great Northern right of way; THENCE Northeasterly along the Westerly margin of the Great Northern right of way to the True Point of Beginning. PARCEL B• That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M. and of the tidelands of the first class in front thereof, described as follows: Beginning at a point on the Westerly line of the right of way of the Great Northern Railway Company 650 feet Northerly (measured along said right of way from the South line of said Lot 2; THENCE Northerly along said Westerly line of the right of way, 200 feet; THENCE Westerly at right angles to said right of way to a point in the meander line of Puget Sound; THENCE North 56043' West 315.09 feet, more or less, to a point on Inner Harbor Line; THENCE South 450 West along said Inner Harbor Line 175.12 feet; THENCE South 51057' East 330.28 feet, more or less, to meander line; THENCE South 490 East to the point of beginning. Continued VOI. 2 5 9 5 PAGE " O D Continued Page 2 Commitment No. 039389 EXHIBIT A PARCEL C. _ That portion of Government Lot 2, Section 23, Township 27 North, Range 3 East, W.M., described as follows: Beginning at a point on the Northwesterly production of the - :-_Southwesterly_ margin.. of -Main Street,. formerly -George- Street,. shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington, where same intersects the Westerly line of Great Northern Railway right of way; THENCE North 61008' West a distance of 98.15 feet, more or less, along the extension.of.Southwesterly margin of Main Street to a point of intersection with the Government meander line; THENCE South 39031' West a distance of 26.60 feet along said Government meander line; THENCE South 66008' East a distance of 99.67 feet, more or less, to a point of intersection with Westerly line of right of way of Great Northern Railway Company; THENCE North 41004' East a distance of 17.86 feet along the Westerly right of way line to the True Point of Beginning. AND ALSO the following described tidelands of the first class, fronting Government Lot 2, Section 23, Township 27 North, Range, Range 3 East, W.M.; Beginning at a point on the Northwesterly production of Southwesterly margin of Main Street, formerly George Street, shown on Plat of Edmonds, according to the plat thereof recorded in Volume 1 of Plats, page 26, records of Snohomish County, Washington where same intersects Westerly line of right of way of Great Northern Railway Company; THENCE North 61008' West a distance of 98.16 feet, more or less, along extension of Southwesterly margin of Main Street, to point of intersection with the Government meander line and True Point of Beginning; THENCE continuing North 61008' West a distance of 310.63 feet, more or less, along extension of Southwesterly margin of Main Street to the point of intersection with the Inner Harbor Line; THENCE South 44059130/1 West a distance of 56.48 feet along said Inner Harbor Line; THENCE South 66008' East a distance of 322.62 feet to the point of intersection with the Government meander line; THENCE North 39031' East a distance of 26.60 feet along said Government meander line to True Point of Beginning. Situate in the County of Snohomish, State of Washington. COMMONWEAL H L LAND TITLE COMPNY Of Snohomish County order No.393$`) Customer No. Plat Quarter/Quarter Section Lot (s) 'n'is sketch is prtwi .-ithout charge. for your information. It is not intended to shc— all ..tatters related to the property including, but not limited to: area. dimensions. easements, encroachments or location of boundaries. It is not a pan of, nor does it modify, the commitment or polio, to which it is attached. The Company assumes NO LL4AILTTl' for any matter related to this sketch. Reference should be made to an accurate survey for further information. �3 Portion of Lot (s) Lot size commencing on the North -line Volume Page Township_,p�,Range 3 Block r J TILJR TITLE INSURANCE Filed for Record at Request of AFTER RECORDING MAIL TO: h REVENUE STAYS VV=Tarm n (FULFILLMENT) FORM L58F(9-84) Statutory Warranty Deed THE GRANTORS Howard V. Anderson, Jr., as his separate property, and James Gualtieri, as his separate property, for and in consideration of Ten and no/100 Dollars ($10 .00) and any other valuable consideration in hand paid, conveys and warrants to the City of Edmonds, a Washington municipal corporation the following described real estate, situated in the County of Snohomi sh �_ State of Washington: r t -- N See Exhibit A ^ T r w :a This deed is given in fulfillment of that certain real estate ti2tct between the parties hereto, dated 19 and conditioned .,, the conveyance of the above described property, and the convenants of warranty herein contained sh 1 not apply to any title, interest or encumbrance arising by, through or under the purchaser in said contras . and shall not apply to any taxes, assessments or other charges levied, assessed or becoming due subsequent to the date of said contract. Real Estate Excise Tax was paid on this sale or stamped exempt on , Rec. No. Dated this day of By ................ . ............ ....... :....::...:.. c:...::........:... BY By........................................ ....... ,.....,.......,...... By STATE OF WASHINGTON COUNTY OF .............................. Ss On this day personally appeared before me ........................................................................ to me known to be the individual described in and who executed the within and foregoing instrument, and acknowledged that ................... signed the same as ........................... free and voluntary act and deed, for the uses and purposes [herein mentioned. GIVEN under my hand and official seal this dayof ........................................ 19...1.... in.and.for the State of Washington, . re dint . 4 STATE OF WASHINGTON COUNTY OF .................................. ss Onthis ........ day of............................................................. 19 ....... . before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared ................................ ............... and................................................ ___ .... .................... ..... I ............. ...... to me known to be the ...................... President and ,..................... Secretary, respectively, of ................................................................._._.. theeorporatlon t t-fores:oi ¢ i err � cknowiedged the said in- rtrumc� �j nh rc n `a Qfactrrpotatian, for the uses and par o]4 sh 4�n n SrR}tllro� 31i .9th c ............................... authorized to executed the said instrument and that the seal affixed is the corporate seal of said corporation. Witness my hand and official seal hereto affixed the day and year first above written. CITY CLERK LL;7 CIVIC CENTER I� ' EDMONDS. WA 88020 RIGHT OF FIRST REFUSAL D THIS AGREEMENT is entered into between Howard V. Ander5r)n . ' ,••�l Jr. as his separate property, and James Gualtieri, : = as �',�is separate property, hereinafter referred to as "Owner", and the City of Edmonds, a Washington municipal corporation, hereinafter referred to as "Edmonds." WftnAEAb, the Owner is the owner of certain real property located at 100 Railroad Avenue, of Edmonds, Washington, and which is more particularly described on Exhibit A as Tracts A and B attached hereto and incorporated herein by this reference as if set forth in full, and WHEREAS, Owner has agreed to grant Edmonds a first right of refusal to purchase the property in the event that the Owner receives a bona fide offer of purchase within the period specified below, now, therefore., FOR AND IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: I. Right of First Refusal. If the Owner at an till,^: during the term of this Agreement or any renewal or extension thereof, receives a bona fide offer to purchase the property which is legally described on Exhibit A attached hereto and incorporated herein by this reference as if set forth in full, which offer the Owner desires to accept, the Owner agrees to give Edmonds notice in writing of such bona fide offer of not less than the date of termination of this Right or thirty (30) days, whichever is longer, setting forth the name and address of the - 1 - vc� 246 to proposed purchaser who has made the offer, the amount of the proposed purchase price, and the terms of payment thereof. Edmonds shall have the first option to elect to purchase the property described in Exhibit A by delivering to the Owner a written offer to purchase the property for the same or better price on substantially similar or better terms as set forth in the bona fide offer within thirty days of the termination date of the Notice. If Edmonds delivers such offer to Owner, Owner shall accept said offer of Edmonds and the parties shall proceed to close the sale within ninety (90) days by either outright purchase or a long term sale contract. In the event that Edmonds does not exercise its option to purchase in the manner set forth above, within the time stated, then Owner may proceed to sell the property pursuant to the bona fide offer; provide, however, if the terms of such sale vary from the offer presented to the City, then such revised offer sha11 be presented to the City in writing, and the City shall have the option to elect to purchase under the revised terms in the same manner as set forth above. In the event that the Owner does not sell the premises pursuant to the bona fide offer for any reason, then Edmonds shall have, upon the same conditions of notice, the continuing first option to purchase the property upon substantially similar terms of any subsequent bona fide offer or offers to elect purchase during the term of this Agreement. 2. Consideration, As consideration for the grant of the rights set forth in Paragraph 1, Edmonds has paid ten dollars ($10.00) and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Owner. - 2 - • Q VOL.2PQGE 3. Term. This Agreement, and the rights prescribed hereunder, shall become effective as of the date the last party signing this Agreement executes the same, and shall terminate 90 calendar days thereafter. 4. Bindinq_Effect. This Agreement shall constitute a covenant running with the land described in Exhibit A and shall be binding upon the parties, their heirs, executors, successors in interest and assians. 5. Recording. This Agreement shall be recorded with the Snohomish County Auditor. Recording shall be done by Edmonds at Edmonds' sole cost and expense. EXECUTED by each party upon the date set forth under their signatures below. nW_M V D C .fames Gualtieri, as his sole M and separate propert .ward V. Anderson, Jr. as -his. sole and separate property ATTEST/AUTHENTICATED: Cit Clerk, Jacykie Parrett APPROVED AS TO FORM: OFFICE TH CITY ATTORNEY: hg/And-Ref.Doc CITY OF EDMONDS: By. - 3 - , wiscan IAA' VOL. 2 6 6 PAGE 4 - 0 STATE OF WASHINGTON j ss COUNTY OF j I certify that I know or have satisfactory evidence that Howard V. Anderson, Jr. and James Gualtieri signed this instrument and acknowledged it to be their free and voluntary act for the purposes mentioned in this instrument. DATED this day of , 1991. NOTARY PUBLIC in and for thO,State of Washington, residing a , My commission expieres: '91 06/04 09:12 a 206 339 8366 wMOHS,IERI_TH 02 D ESCRI FT TOM : EXHIBIT "ho R®@®rd@r'% Note: Portions Of This ®®@drFt@Ht Poor Quality For Filming r}�d, onion of Government Lot 2# including tidelands, Section 23 r TQ., t Po 27 Northn*f P.4 naa 3 East, W.M. r described as fallOws: Beginning at a p�lnt on -Ise Northwestorly productiOn of tttie Southwesterly Asa rgin of 1Kali n street, formerly Georg foe Street, as shoti+r+ On the Plat Of Ldmonds, according to Flat thereof as'ninett in wherVolue said produOf ction G r tecards of Snohoasish County, West7il]gtonr Great inh&rsecta the westerly line of right-Qf-way of mar inRcE � xd Greet Complany: thence Southwesterly along Westerly Northern right-of-way 17 •85 feet to the true point of beginningt thence North 55 °08' EaSt to u point5 ° >1'est t±}a di distanceectiolft of56.43 feet h the inner r f rom ithe said point being So rpdvct i.on of Main Street; southwesterly margin c, the Nor t:hwesterly p thence South 45' Aestint.sf intersection with nce htho co�vernment antler more or lets, t PO Tina: thence in a Santhea. Lu:zy di rectio>Y to a paint on the Westerly margin of the Great 9-1:thern right- cf-way which is 850 feat ROrtheastetly on the South line of Gavernment Lot 2, as rne&DuNod asterthalong e Westerly margin of the Great Northern r1^htof- ay; tencewesterly pargin of the Great l❑rthern right -of -'way to the true point of beginning. LLUAI B: SeCtiOn 23, 'rCw'1Ship 27 Northr Range 3 ' That portion o€ Government Lot 2r Cast and of the tidelands of the first Class in front thereo'r deScribed as follv"r the h'n>xtier3y ? ine of the right -Of -way of the 3eginning At a point or.isaid 1 Great: Northern Rail zy Cnmpe lf: Offeet #said Lott21 rthence Northerl.y,gal*n9 right-of-way, from the South aAid wtstsrly line of the right -of -Way, gd feet; thence westerly at right ar+gleg to rAid right of -nay to a point in o the ereasy tie meander nOf Put ee Sound) thence North 56 43 we 3I5.49 feet, inore on Inner Harbor Line; thence South 45° West a]org laid Inner ili;-tor Line 175.12 feet; thence South 51 057 ` East 330.28 feet, more ar less, to meander line,, thence south 4910 East to the point of beginning. All situlte in the County of Snot,Omish, State of Washington. 1'nrirll.i �. i11lLir+r•tr�fi. ,li. 1.7�F 8 70 � v 4 .4;hv