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2024-02-13 Council Special PPW Packet2 OF BbMG ti Agenda Edmonds City Council 1,00 PARKS & PUBLIC WORKS - SPECIAL MEETING CITY COUNCIL CONFERENCE ROOM 121 - 5TH AVENUE N, EDMONDS, WA 98020 FEBRUARY 13, 2024, 1:30 PM COUNCIL COMMITTEE MEETINGS ARE WORK SESSIONS FOR THE COUNCIL AND CITY STAFF. COMMITTEE MEETING AGENDAS DO NOT INCLUDE AUDIENCE COMMENTS OR PUBLIC HEARINGS. PERSONS WISHING TO JOIN THIS MEETING VIRTUALLY IN LIEU OF IN -PERSON ATTENDANCE CAN CLICK ON OR PASTE THE FOLLOWING ZOOM MEETING LINK INTO A WEB BROWSER USING A COMPUTER OR SMART PHONE: HTTPS://ZOOM. US/J/95798484261 OR JOIN BY DIAL -UP PHONE: US: +1 253 215 8782 WEBINAR ID: 957 9848 4261 STAFF AND COUNCILMEMBERS ATTEND COMMITTEE MEETINGS VIRTUALLY, AND MEMBERS OF THE PUBLIC ARE ENCOURAGED TO ATTEND THE SAME WAY. IF MEMBERS OF THE PUBLIC CANNOT ACCESS THE VIRTUAL COMMITTEE MEETINGS WITH THEIR PERSONAL DEVICES, A MONITOR IS PROVIDED ON CITY COUNCIL COMMITTEE NIGHTS FROM 3:30- 9:30 PM AT THE CITY COUNCIL CONFERENCE ROOM AT 121 5TH AVE N, EDMONDS WA. COMMITTEE MEMBERS: SUSAN PAINE (CHAIR), MICHELLE DOTSCH, COUNCIL PRESIDENT (EX- OFFICIO MEMBER) CALL TO ORDER COMMITTEE BUSINESS 1. Committee Updates (10 min) 2. Presentation of Update on 2024 Transportation Plan, including Multimodal Level of Service (MMLOS) (20 min) 3. 10-ft Dedication for 75th PI W Right -of -Way Adjacent to 15604 75th PI W (10 min) 4. Presentation of Main St Overlay Project Update (10 min) 5. 5-ft Public sewer easement along west property line of Lot 1 in Vehrs Short Plat (10 min) 6. Presentation of Proposed Acquisition of 7317 Lake Ballinger Way Property (10 min) 7. Presentation of Department of Ecology Agreement - 2023-2025 Biennial Stormwater Capacity Grant (10 min) 8. A motion of the City of Edmonds granting to AT&T Wireless Services of Washington, LLC, an Oregon Limited Liability Company, d/b/a AT&T Wireless, by AT&T Wireless Services, Inc., a Delaware Edmonds City Council Agenda February 13, 2024 Page 1 Corporation, its member (Lessee), authorizing the Mayor to sign a Consent to a Holdover Tenancy of the Facilities Lease as provided for in said lease. (10 min) 9. An ordinance of the City of Edmonds granting to New Cingular Wireless PCS, LLC, a Delaware limited liability company, successor in interest to AT&T Wireless Services of Washington, LLC, an Oregon limited liability company, d/b/a AT&T Wireless, its successors and assigns, an extension of the franchise granted under ordinance 3441, establishing an effective date. (10 min) ADJOURNMENT: 3:30 PM Edmonds City Council Agenda February 13, 2024 Page 2 2.1 City Council Agenda Item Meeting Date: 02/13/2024 Committee Updates Staff Lead: Committee Chair CM Paine Department: City Council Preparer: Beckie Peterson Background/History The purpose of this standing agenda item is to allow a mechanism for staff to provide committees with brief, verbal updates on an activity or project overseen by a department and so that the Council can be more aware of what is happening around the city. Updates will facilitate a better set of expectations for councilmembers, the public, and the staff. Recommendation N/A Narrative Requested Committee Updates for February 13, 2024: 1. Wayside Crossing System / Train Horns Packet Pg. 3 2.2 City Council Agenda Item Meeting Date: 02/13/2024 Presentation of Update on 2024 Transportation Plan, including Multimodal Level of Service (MMLOS) Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History On May 16, 2023, the Council approved the Professional Services Agreement with Transpo Group for the Transportation Plan Update. On May 2, 2023, Staff and Transpo Group made a presentation on Multimodal Level of Service to the City Council. On March 14, 2023, staff presented the preliminary scope of work and fee with Transpo Group to complete the Transportation Plan Update. Staff Recommendation n/a Narrative In May 2023, a contract was signed with Transpo Group to complete the 2024 Transportation Plan. The Transportation Plan is an element of the City's Comprehensive Plan. The main objective of this Plan is to identify short and long-range strategies that lead to the development of an integrated multimodal transportation system that facilitates the safe and efficient movement of people and goods while addressing current and future transportation demand and land use. Based on Puget Sound Regional Council's (PSRC) expectations, the multimodal concurrency, and LOS programs (to meet GMA requirements and VISION 2050's multi -county planning policies) will be included, with the following items: 1. Methodology to evaluate LOS for transit, bicycles, pedestrians, and vehicles; 2. Adopt LOS standard(s) based on the methodology; 3. Identification of existing and future deficiencies to maintain LOS; and 4. Measures for addressing existing and future deficiencies - to maintain LOS. The Traffic Calming Program has been updated and all the maps with the existing conditions of our entire transportation system (existing Level of Service at controlled intersections, sidewalk, bicycle facilities, transit routes, etc.) are complete. The goals and policies identified in the previous plan - 2015 Transportation Plan - are currently being updated. MMLOS is also being considered, whereas only vehicular LOS at signalized and stop -controlled intersections was included as part of the previous 2015 Transportation Plan. The consultant has started developing different strategies and programs to build the framework to implement this new level of service standard. This item will be discussed as part of future Council meetings in order to determine the final recommendation. Once all those details have Packet Pg. 4 2.2 been determined along with the projected future land use forecast, the financial portion of the plan will be completed. The plan is scheduled to be completed by December 2024. Attachments: Attachment 1 - Presentation Packet Pg. 5 2.2.a City Council Committee February 13, 2024 transpogroup �F WHAT TRANSPORTATION CAN BE. � Packet Pg. 6 2.2.a APPROACH Introductions Overview of the Transportation Element Approach to Updating the Plan Multimodal LOS Discussion ■ Existing Conditions � Next Steps 2 transpo---, ,-1 Packet Pg. 7 2.2.a KEY PLAN UPDATES What's Going to be Different from the Existing Element? Planning Horizon year = 2044 Incorporate updated subarea plans Updated long-term project list and costs Financial strategies to identify how the high priority projects can be implemented Roadway/Intersection Traffic Modeling Pedestrian/Bicycle Transit Freight PROJ ECC LIST Financing Strategies Transportation Elemer 3 transpo Packet Pg. 8 a C 0 w 0 CL y C Cu L F_ le N O N C 0 d w M 2.2.a PLANNING PROCESS a Major Steps to updating the Transportation Element q Evaluate existing transportation systems conditions and issues M Prepare travel forecasts and evaluate needs Define/update multimodal improvement projects O CL y C O L L le N N C O � d O LrmwO_ C O C d N d L a Update Documentation transportation and quality contr policies y a a transpo packet Pg. 9 Goals/Policies Audit and Existing Conditions Multimodal Level of Service and Transportaiton Concurrency Program CTravel Demand Model Update and Forecast Needs Transportation System Improvement Projects/Programs Transportation Finance Program and Impact Fee Rate Schedule Draft and Final Transportation • Plan Documentation Project Team/Agency Coordination and Public Involvement Support June I July I Aug I Sep I Oct I Nov I Dec I Jan I Feb I Mar I Apr I May I June I July I Aug I Sep Monthly Stakeholder Meetings Throughout Project MULTIMODAL LOS (MMLOS) PRESENTATION OUTLINE GMA & RCW Amendments to Transportation Requirements GMA Transportation Concurrency Requirements ■ LOS Outcomes, Trade -Offs, and Balance of Modes 0 .sk. 2.2.a Im w a transpo Packet Pg. 11 iiiiiiiiiiiii�iiiiii WHAT IS TRANSPORTATION CONCURRENCY? TRANSPORTATION CONCURRIENCY Growth management requires multimodal transportation systems to be adequate to serve planned growth. Transportation concurrency links land use plans with multimodal transportation and capital improvement plans, providing a tool for effectively managing and balancing community growth. 6 J GROWTH T�F3 MOBILITY 2.2.a 7 transpo - - - - - c' Packet Pg. 12 M a O O CL y M F- le N N C O 2.2.a EDMONDS EXISTING LOS STANDARDS Arterial Street Throughput r Intersection Seconds of Delay per Vehicle a LOS C C 0 w All intersections on City collector streets Q y C cu L F- LOS D CN N O Signalized intersections on City arterial streets Intersections on Highways of Statewide Q Significance (HSS) * within Edmonds, including: SR 104 • SR 99 south of SR 104 * Not subject to Edmonds LOS or Transportation Concurrency ordinance, but City required to identify HSS intersections not meeting WSDOT LOS D standard LOS E Intersections on Highways of Regional Significance (HRS) within Edmonds, including: • SR 99 north of SR 104 • SR 524 8 transpo-- — `—' Packet Pg. 13 DMONDS VEHICULAR LOS STANDARDS END intersection LOS • A-C D I* F Intersection Control 0 Signal 17 Roundabout ❑ Stop Intersection Not Owned By City ?j Regional Trails Railway Edmonds City Limits 9 ML i MILES 0 0 1 / Sr�enM I),IN fT 1w 3 a s 0 O/z/ A N 2023 = Only 1 intersection not meeting City LOS D standard ■ SR 104 (Edmonds Way)/238t" St ■ Stop sign control on side streets ■ Low volume side streets experience delay to accommodate higher volume SR 104 traffic flow LOS F operation for worst movement only (left -turns) during PM peak hour 2.2.a transpo Packe Pt g.14 TRADITIONAL HIGHWAY CAPACITY MANUAL VEHICULAR LOS STANDARDS Issues with vehicular LOS Counts Cars, Not People Vehicle Thru-put/Intersection Delay = Measures of Driver Inconvenience Demand exceeds supply during narrow PM Peak Hour; Does not equal "Failure" ■ Major funding decisions using public tax dollars that will last for decades ■ Auto -centric LOS standards require auto - centric "capacity" (widening) mitigation Contributes to urban sprawl and even more traffic congestion P.M. Peak Traffic Volumes (The Local Evening Rush Hour) 140 130 I — Weekday Work HoursCL 120 V 110 LOS F (Adopted StandW for SELECT Arterials) sr 100 N o 90 LOS E (Adopted Stand rd for Arterials) _ s 80 LOS D LOS C Measured Here M 70 Q LOS B :3 bo LOS A Available 50 E 40 — Unused Artori4l capacIliv U zo p ML� a, 10 ^ a w Im IL to C L N 0 w a Available / Unused Arterial -M Capacity y 0 — Q d a a Time o N N m A 10 transpo Packet Pg. 15 COMPLETE STREETS: WHO ARE WE PLANNING FOR? Pedestrians Bicycles Public Transit Commercial/Freight igh Occupancy Vehicle Occupancy Vehicle r-M-1 ti I BALANCE mobility needs for 2.2.a ALL modes must be carefully considered, t$ALANCED, and implemented for the MULTIMODA transportation system to provide space and safety forEVERYONE. 11 transpo-- - `-' Packet Pg. 16 a O w O CL y C cu F- le N O N C O d 0 L IL a a WORK COMPLETED OR IN PROCESS -rraffic calming Program Revisions — Summer 2023 M Administrative Request 0 w Criteria updated; scoring revised 0 0 y C ✓ i ransportation Goal & Policy Audit N O Evaluate 2015 goals & policies for compliance with GMA & PSRC N 0 Strength test to maximize PSRC certification of 2024 Edmonds TE existing Conditions Update Update inventory of existing transportation conditions ,v Monthly meetings with Transportation Advisory Committee ■ Information/Education on transportation issues/topics Community input and interaction Recommendations and guidance 12 transpo - - - - - c' Packet Pg. 17 IN PROCESS OR UPCOMING WORK ➢ Evaluating Pedestrian, Bicycle, Trail, & Transit Networks ■ Confirm primary &secondary pedestrian, bicycle, &transit routes ■ Identify gaps &improvement needs on each modal network ■ Consider prioritization factors (Centers, destinations, volumes, safety) Ll Prepare Lonq-range Travel Forecasts ■ Based on updated Travel Demand Model ■ MMLOS =Mobility for people, not just vehicles Ll evaluate Future Transportation System ■ Refine MMLOS standards: Existing vs. Desired Multimodal Networks ■ Identify improvement project needs, costs, and priorities Ll Financial Strategies to Maintain MMLuS Standards ■ Project list translates to cost of development &City implementation strategy 2.2.a Refine LOS standards, if needed 13 transpo- -- - c' Packet Pg. 18 a c 0 w 0 CL y cu F- le N O N C O d _141—C It, Lam lo" . . . . . . ----- 10 2.3 City Council Agenda Item Meeting Date: 02/13/2024 10-ft Dedication for 75th PI W Right -of -Way Adjacent to 15604 75th PI W Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History n/a Staff Recommendation Forward to the consent agenda for approval. Narrative The City is currently reviewing a proposed single-family residential project, known as the Koh residence, at 15604 75t" PI W. In accordance with ECDC 18.50.020 (Official Street Map - Dedication presumption and requirement), applicants for a building permit shall be presumed to create development impacts upon the street and transportation system of the city and such presumed impacts shall be mitigated by the dedication of such right-of-way to the city and to public use. The City's Official Street Map indicates a 10-foot right-of-way dedication is required along the 75th PI W property frontage of the subject development. As a condition of development, the 10-foot right-of-way shall be deeded to the City. Subsequent to Council approval of the street dedication, the deed will be recorded with Snohomish County against the subject property. Attachments: Attachment 1 - Map Attachment 2 - Site Plan with Dedication Attachment 3 - Draft Deed Packet Pg. 20 v City of Edmonds VICINITY MAP -15604 75TH PL W 2.3.a B4� oii- - - - - C b 148�H STS 'IT 7 ❑ FISHER RD "v FQ5E L' I I� ��N PE C1 ❑� I ❑I j I ❑� Il I ❑ I I I 1 I NAEADpL, - _-- - 168THSTSW Q�i 6'F F ❑❑ :,- 57`NR4 o i- o ❑ ❑❑ 176TH ST SW O 180 1l AFL � � �� ❑ - TyS I - -� �U_ I� Ir- _ � 2 � 75Vy 180TH ST SW az Q I± I I •� � H fs nv I s � R4 188TH ST SW ` k fl ❑ n� FRA -asj Legend Sections Boundary Sections Edmonds Boundary ArcSDE.GIS.STREET_CENTI <at other valu— Inonstale Principal Arterial Minor Arterial; Collector Local Street; On Ramp State Highways <atcthervalu- -- 0 2 County Boundary Parks ArcSDE.GIS. PROPERTY_W, ArcSDE.GIS. PROPERTY_C11 ArcSDE.GIS. PROPERTY_CI1 City of Edmonds City of Lynnwood City of Mountlake Terrace L, Unincorporated King Co; U City of Woodway City of Arlington; City of B. City of Gold Bar; City of Gr City of Marysville; City of M Mukitteo; City of Snohomis Town of Danington; Town Snohomish County Counties ArcSD E.G IS. PROPERTY_W i 1: 12,125 O Notes �ntrol Script-, Control Feet This ma ted static output an Internet ma to and is for pis only. Benera pu Py not IlfDis[ance, for control reference only.Da[a layers [ha[appear on this map mayor ma the- accurate, Source- _ScaleBarDist current, ar otherwise reliable. .�.....,...e�..i. ...,..I THIS MAP IS NOT TO BE USED FOR DESIGN OR CONSTRUCTION Packet Pg. 21 U)I S 881 00' 03" E �— - 192.99' I I \ � O \ I (n �o NGPE \ I I I \ LINE DESCRIBING 'TOP OF BLUFF' PER EDMONDS, WITH REQUIRED 50' N 87° 38' 29 W STRUCTURE SETBACK --- 195.32' /, N Sketch Showin 111 = 20'-011 10' Street Dedication + Easements 25'-0' EXISTING ACCESS EASEMENT FOR PROPERTY TO NORTH PER AFN 200010235001 PROJECT PROPOSES SIDE SEWER EASEMENT PER AFN 8306230289 CO - LOCATED WITH ACCESS EASEMENT, AS WELL. SURVEYED STEEP SLOPES/ LANDSLIDE HAZARD AREAS, TYP. SEE GEOTECHNICAL REPORT AND ADDENDUM LETTER FOR MORE INFORMATION MINIMUM STRUCTURE SETBACK FROM ACCESS EASEMENT REQUIRED 10' STREET DEDICATION CURRENT PROPERTY LINE REQUIRED FRONT YARD SETBACK TAKEN FROM LINE OF DEDICATION INTERSECTION OF DRIVEWAY AND 75TH PL W ALIGNED WITH ACCESS EASEMENT, WHERE ALLOWED BY TOPOGRAPHY 2.3.b U Q � N a EQ�o C�. �68E oa)I M (n N co N O 00 Q U 70 C: W ti C) co T- SK-D Packet Pg. 22 1 2.3.c Return Address: City Clerk City of Edmonds 121 Fifth Avenue North Edmonds, WA 98020 Grantor(s): HARTANAH KL LLC Grantee: City of Edmonds, Washington, a municipal corporation Property Address: 15604 75th PI W, Edmonds WA 98026 Abbreviated Legal: Section 05 Township 27 Range 04 Quarter SW MEADOWDALE BEACH BLK 000 D-10 LOT 2 OF SP S-99-144 REC AFN 200010235001 BEING A PTN OF LOT 24 OF EXIST PLAT Assessor's Property Tax Parcel No.: 00513100002410 DEED OF DEDICATION FOR ROAD KNOW ALL BY THESE PRESENTS, THAT THE GRANTOR(S), HARTANAH KL LLC, 15324 Meridian Dr SE, Lynnwood, WA 98087, for and in consideration of mutual benefits to be derived by the establishment of a public roadway, does hereby grant, convey and warrant to GRANTEE, the City of Edmonds, Washington, its successors in interest and assigns, the following described real property, situated in the County of Snohomish, State of Washington, including any interest therein that the Grantor may hereafter acquire, to be used by the Grantee for street, road, right-of-way, and public utility purposes, bounded and described as follows, to wit: SEE ATTACHED legal description (Exhibit A) and depiction (Exhibit B). together with the right to make all necessary cut or fill slopes on the land of Grantor adjacent to the above - described real property in connection with the construction, maintenance or improvement of the above -described real property for purposes of a public roadway. The Grantor hereby covenants to and with the Grantee, and the Grantee's successors in interest and assigns, that the Grantor is the owner of the above -described property in fee simple, that the property is free of all liens and encumbrances, that he/she/it has good and legal right to grant this deed, and that the Grantor and his/her/its heirs and personal representatives shall warrant and forever defend the said premises against the lawful claims and demands of all persons claiming by, through, or under the Grantor. IN WITNESS HEREOF, the Grantor or his/her/its authorized representative has executed this instrument as of the date set forth below. DATED THIS DAY OF 20 GRANTOR, [NAME] Michael Koh, Manager GRANTEE, CITY OF EDMONDS Mike Rosen, Mayor Packet Pg. 23 2.3.c STATE OF WASHINGTON COUNTY OF SNOHOMISH 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 he/she signed the same as his/her free and voluntary act and deed, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument. UNDER MY HAND AND OFFICIAL SEAL THIS DAY OF , 20 NOTARY PUBLIC in and for the State of Washington, residing at My commission expires Packet Pg. 24 2.3.c Exhibit A LEGAL DESCRIPTION EXHIBIT THE EAST 10.00 FEET OF LOT 2, CITY OF EDMONDS SHORT PLAT NO. S-99-144, RECORDED UNDER AUDITOR'S FILE NO. 200010235001, BEING A PORTION OF LOT 24, MEADOWDALE BEACH, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 5 OF PLATS, PAGE 38, RECORDS OF SNOHOMISH COUNTY, WASHINGTON. �O�LETT�\ �L� O� W e A 51800 �GISTEg� LAND ; Packet Pg. 25 2.3.c Exhibit B DEPICTION LOT 1 PID: 00513100002409 EXHIBIT 10.01' -S 88°00'03" E - - ej I' 'I Ago! I I N I I ��Vww I I Z vl o 10.00' N.T.S. ROW DEDICATION CA« AREA=1,519 SF I I U) I I `l) N LOT 2 0 l t o aI I� SHORT PLAT NO. S-99-144 � I Iw AFN 200010235001 `° I I (° m I I rm PID: 00513100002410 Ta lUAI )MMADIIE 20' LQ)�m � 6 I �RO� w FOUND REBAR/CAP 0 z I LS#18898 I I z Y z 0.16' N& 0.49' W I o 0f o — OF PROP.COR. 2CO. 02' n ff S 87'38'29" E I� PID: 00513102800100 10.01' RIGHT OF WAY DEDICATION PARCEL. NO. 00513100002410 15604 75TH PL W, EDMONDS, WA 98026 NW 1/4 SW 1/4 SEC. 5, TWP. 27N. RGE. 4E, W.M. GROUNDMARK LAND SURVEYING, PLLC PH: (206) 580-3801 2712 E FIR ST SEANOGROUNDMARKLS.NET SEATTLE, WA 98122 Packet Pg. 26 2.4 City Council Agenda Item Meeting Date: 02/13/2024 Presentation of Main St Overlay Project Update Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History On May 24, 2023, the City Council approved a Professional Services Agreement with KPG Psomas to design the Main St Overlay Project. Staff Recommendation Project Update. Narrative In 2020, the City secured a $750,000 federal grant to fund a full -width grind and pavement overlay on Main St from 6t" Ave to 81" Ave. This project also includes upgrading all noncompliant ADA curb ramps and new pavement markings within the project limits. The design of the new compliant pedestrian ADA ramps at 7th Ave and 8th Ave will include bulb -outs. The bulb -outs will improve pedestrian safety at the crosswalks by reducing the crossing distance and increasing the visibility of pedestrians and approaching vehicles. The current lane configuration of Main St provides a traffic lane in each direction and parking lanes on both sides of the road. Staff is proposing the addition of an eastbound bike lane to support cyclists traveling uphill who tend to be moving much slower than vehicular traffic. The project will not eliminate existing parking. The bike lane addition will be accomplished by narrowing the traffic and parking lanes. Staff will provide more information during the presentation (Attachment 1) to the City Council. The City's 2024 Overlay Project will pave the section of Main St. between 8th Ave and 9th Ave. The project will continue the uphill eastbound bike lane to 9th Ave. This project will be paid for by local funds and is not part of the federal grant. The design phase is expected to be completed in spring and construction is scheduled for summer. A public meeting will be scheduled in early March to provide information on both projects and the timeline for construction. Attachments: Attachment 1 - Presentation Packet Pg. 27 mw a Main Proposed February 13, 2023 St Overlay Project Eastbound Bikelane Or FDMA, Packet Pg. 187 • City pursued and won a $750K PSRC grant in 2020 for overlay of Main St from 6th Av to 8th Ave o Grant requires matching funds from City o Design funds became available in 2023 o Construction funds are available in 2024 • Design contract with KPG Psomas was approved in May 2023. • City of Edmonds staff, following City's Complete Streets Ordinance #3842, identified an opportunity to add an eastbound (uphill) bicycle lane by narrowing travel and parking lanes throughout the corridor. • A second bike lane for westbound (downhill) cyclists would require elimination of parking on one side of Main St. Parking surveys confirmed heavy parking demand in the corridor making the elimination of one parking lane undesirable. -: Area Mai, 2.4.a 1 $;�<� -_ a or_F ..� UTA I Fol F. 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O 71h and Main MAIN ST «u �CUCi o � e ° ------- --- —4 ---- . ❑ Cm B.N REi WALL WK ISi WPLL CORK -.A C H :ti I ICWC Ru WALL I I 1I I I �conc REi wuL ll L e rv/SOLAR 0 2.4.a Packet Pg. 36 81h and Main Co i W . I. a� u H Q \��\��ww ^ PN.WA9E11 102� i i MAIN ST 80L% RR NNIl 2.4.a m CL 0 a O rt+ C .C� G r 0 2 NN� _ p O N d L a _ 0 V WN Q V WN WN Packet Pg. 37 • Design phase o Complete in Spring, 2024 • Construction phase o Start in Summer, 2024 and complete by late Summer, 2024. Striping to occur in late Summer o Preliminary Construction Estimate = $9161525 -�: 2Aa m w m a M d 0 a ca Q O E U) _ 0 2 m 0 r �a w _ a� N d L a Packet Pg. 39 2.5 City Council Agenda Item Meeting Date: 02/13/2024 5-ft Public sewer easement along west property line of Lot 1 in Vehrs Short Plat Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History n/a Staff Recommendation Forward item to consent agenda for approval. Narrative The City is currently reviewing a proposed 2 lot short plat at 520 Forsyth Ln. During review of the short plat, it was determined that obtaining a 5' public sewer easement would be beneficial to the City with regards to any future maintenance, repair, and/or replacement of the existing public sewer main. The sewer main is located on the adjacent property to the west of 520 Forsyth Ln and near the property line of the subject parcel. The proposed sewer easement falls within the required setback area on the subject property and does not otherwise limit the buildable area on the lot. Subsequent to City Council approval of the public sewer easement, the easement will be recorded against the subject property with the final short plat documents. Attachments: Attachment 1 - Vicinity Map Attachment 2 - Easement Location Packet Pg. 40 2.5.a ATTACHMENT 1 - VICINITY MAP ■ ■ ■■■�1e�� llcoo. H�l rw ■ -� ��DOC�rirj ■ ■ � �EG��D�CCi L � �■ �� n�� Od�� 111offli �s � r vdz. ■ ' �� ■ v t _I �l L o m 17 !7 in [i Cleo o� Fo gy, .� v � ., R4 �� F �o Flee Lw wlRoFA 10 4■ 0 lu. I Uma METIf > r I r ■� �rl ■7 Q a� ■� r ■is a n� go u ir0■,ra�� Er ■, • �® u■ La r a 0 co ATTACHMENT 1- VICINITY MAP Packet Pg. 41 2.5.b ATTACHMENT 2 - SITE PLAN WITH EASEMENT LOCATION I i S6 9T T tw DEt ER-902, tts' vowr l , EXISTING CITY SEWE MAIN I:3,! PARTIAL CIVIL P FROM SP PLN2022-0040 -1- FORSYTH LME -------'MY-_DM�2'��lZ� ' Exw $- sm Emir r-29-- -_ IEIMORWr 3U*K7o TMrP ...-----_ roR ONOn Draw RR ON So C9T ER-SM rPKY to I AMC 9xvAt,Otl srst[w r[R • ` WS -- UIQ It I 1 1M 1 83 tqN S,d6 IOSI Pt,Oi�/ ♦� ( 1/E � tr — �7I // ft — II I y /' 4. I "I iMt 1 I W[tMSADu a ow /�/ / L- IRESCME TO sNctt-r�war i � / I _"T-: I I « 1} I ` I � pow i 1 PROPOSED 5' I \ \ 1 PUBLIC SEWER EASEMENT. _ Fi 76Y� \ I LOT Log r- \All Ex SIMr - I ... --Ea,STIw: it , 5"4l ARKR LIIAF TM Is ■1� 0000000 0000 OOOOOOOnr �� I I II \ ` s Kr SNORT PLgT NO. S 1 11 _ _ i ncs,acwx AF1V 9012J I01 1 L Z ATTACHMENT 2 - SITE PLAN WITH EASEMENT LOCATION Packet Pg. 42 2.6 City Council Agenda Item Meeting Date: 02/13/2024 Presentation of Proposed Acquisition of 7317 Lake Ballinger Way Property Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History On April 11, 2023 staff presented this item to Council for authorization to approve a Water Quality Combined Financial Assistance Agreement between the State of Washington Department of Ecology and City of Edmonds (WQC-2023-Edmond-00101). On April 18, 2023 Council approved the DOE grant agreement. Staff Recommendation The Deed of Right to Use Land for Water Quality and Conservation Purposes and the Purchase and Sale Agreement will be presented at a future City Council meeting for approval. Narrative The City is considering the purchase of a vacant residential property at 7317 Lake Ballinger Way, which is located within the Lake Ballinger floodplain and is subject to seasonal flooding. The property, on the south shore of the lake, is currently owned by Jnati Investment LLC. After a thorough evaluation, the City would purchase the property, demolish the structures on site, and replant the wetlands with native vegetation. The property purchase would be funded by the Ecology grant. Planning, due diligence, and appraisal costs have been funded by the City's 25% match of the Ecology grant. The demolition, restoration and construction management costs would be covered by the 422 Stormwater Fund. The City will evaluate whether a stormwater facility can be constructed on the property to treat runoff from Lake Ballinger Way (State Route 104) as a second phase of the project. The City hired Integra Realty Resources to complete an appraisal of the property and the opinion of value was determined to be $480,000. Refer to attachment 2. City staff shared the appraisal information with the property owner and the property owner has expressed a desire to sell at the appraised amount. Before the sale can be finalized, the Department of Ecology requires several documents to be completed and approved. Attachment 3 is one of the required Ecology documents and is a Deed of Right to Use Land For Water Quality and Conservation Purposes. This document must be executed before the Purchase and Sale Agreement can approved by Ecology. Packet Pg. 43 2.6 Staff is in the process of completing all pre -acquisition steps required by Ecology. Upon approval of these steps by Ecology, the City can proceed with recording the Deed of Right to Use Land for Water Quality and Conservation Purposes and execute the Purchase and Sale Agreement. Attachments: Attachment 1 - Map Attachment 2 - Integra Realty Resources Appraisal Attachment 3 - Deed of Right to Use Land for Water Quality and Conservation Purposes Packet Pg. 44 �l r Aw op Aa �r t a, D.n ��+. � ..�•- _ - •- I .. - ..�monw� Ik DOWNTOWN , _ ' �, ►f'� s -� YOST ' � y • � . � .. J'� PARKor � . � -- • , , .►?' i , �, � ' ...�:, 44 TV 9L Jf JR VIIESTG-A.T- e 7��. �� °.� i�, '�'`� .� R; � �f;lt, .. ••' i ,;t,- >_�^ `'( FS +vl �u>,_,.�� II �. � G,. t�' i 4 • fir•' �"'rt 1' .� •�. •• •' y _ -.'..` , �+J. •� .'�j � �^ ;x,• Sri" � 1 r I !at:: I t -1 µ„� ti ?�:;,'' -e-:1!:I -�•,r' LAKE BALLINGER • �•, �.` � � � �, i.. ;� Wit,. .� •�'' t � ire CA {�� 1r �? i71R �_ f alms• 1iRri �. `�► . t,, f J L(, J, i �i:- } %� i j -� �. �ce�.,' '�It '�16,1�•, L' �/,� •�• �9 � jl � ...a �� ''±" ;v.'lf' � +' �i- ipplIa�yy'' �� yyyy�� '� tetII 16 } .�4....iC LS . 2� .. �] _.,.. t�tTll� ?Z.�I!91•eF�sl.t--� X _ '� • - ��.1� . e•.� ui''..r _ ,Q'�.... / is :� *'�.�, •,, � � :;' A c 2.6.b Integra Realty Resources Seattle Appraisal of Real Property Jnati Investments Property Single -Family Residential Property 7317 Lake Ballinger Way Edmonds, Snohomish County, Washington 98026 Prepared For: City of Edmonds Date of the Report: August 23, 2023 Report Format: Appraisal Report IRR - Seattle File Number: 154-2023-0277 irr Packet Pg. 46 2.6.b Subject Photographs t Jnati Investments Property 7317 Lake Ballinger Way Edmonds, Washington Packet Pg. 47 2.6.b Aerial Photograph 11 M a I �i 71 �rt_ 'L.r 'i` � y• 4. _OF, . Packet Pg. 48 I �i 71 �rt_ 'L.r 'i` � y• 4. _OF, . Packet Pg. 48 2.6.b irr Integra Realty Resources 600 University Street T 206.903.6700 Seattle Suite 310 F 206.623.5731 Seattle, WA 98101 www.irr.com August 23, 2023 Russell Lynch Associate Engineer City of Edmonds 121 5th Avenue N Edmonds, WA 98020 SUBJECT: Market Value Appraisal Jnati Investments Property 7317 Lake Ballinger Way Edmonds, Snohomish County, Washington 98026 IRR - Seattle File No. 154-2023-0277 Dear Mr. Lynch: Integra Realty Resources — Seattle is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the market value, pertaining to the fee simple interest in the property. The client for the assignment is City of Edmonds. The intended user of this report is the client. The intended use of the report is for property acquisition purposes. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report. The subject is an existing one-story single-family residence containing 2,413 square feet with an 840 square foot detached garage which were built in 1944. The house is not habitable, was stripped down to the studs and foundation, and was boarded up as of the effective date. The garage is being used as storage space and has not been stripped down but is in poor condition with signs of debris and falling insulation throughout. Access to the property is via two steep dirt driveways directly off Lake Ballinger Way (NE 205th Street) which is a busy, primary thoroughfare in the area. The property has lake frontage along Lake Ballinger with views of the lake and an access dock. The dock could not be observed during the inspection and its condition is unknown, but it was reported to be in unusable condition. The site is overgrown and access to much of the northern portion of the subject Packet Pg. 49 2.6.b Russell Lynch City of Edmonds August 23, 2023 Page 2 site was unavailable during our inspection. The site has a history of flooding and there is evidence of vagrant activity both in the interior of the home and garage. The property has been vacant for approximately 10 years. The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, and applicable state appraisal regulations. Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value. Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinions of value are as follows: Value Conclusion Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Fee Simple August 3, 2023 $480,000 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. 1. None The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. 1. None The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. rrr Packet Pg. 50 2.6.b Russell Lynch City of Edmonds August 23, 2023 Page 3 If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, Integra Realty Resources - Seattle Jason Neary Lori E. Safer, MAI, AI-GRS Washington Certified General Real Estate Washington Certified General Real Estate Appraiser #22006051 Appraiser #1100546 Telephone: 206-436-1176 Telephone: 206.436.1177 Email: jneary@irr.com Email: lesafer@irr.com rrr Packet Pg. 51 2.6.b Table of Contents Executive Summary 1 Certification Identification of the Appraisal Problem 2 Assumptions and Limiting Conditions Subject Description 2 Addenda Sale History 2 A. Appraiser Qualifications Pending Transactions 2 B. IRR Quality Assurance Survey Appraisal Purpose 3 C. Definitions Value Type Definitions 3 D. Comparable Data Property Rights Definitions 3 Land Sales Client and Intended User(s) 3 E. Preliminary Title Report Intended Use 4 Applicable Requirements 4 Report Format 4 Prior Services 4 Appraiser Competency 4 Scope of Work 5 Economic Analysis 7 Seattle MSA Area Analysis 7 Surrounding Area Analysis 16 Regional Housing Market Trends 20 Property Analysis 24 Land Description and Analysis 24 Improvements Description and Analysis 35 Real Estate Taxes 40 Highest and Best Use 41 Valuation 44 Valuation Methodology 44 Land Valuation 45 Analysis and Adjustment of Sales 48 Property Adjustments 50 Land Value Conclusion 52 Reconciliation and Conclusion of Value 54 Final Opinion of Value 54 Exposure Time 54 Jnati Investments Property 55 57 ®rr Packet Pg. 52 2.6.b Executive Summary 1 Executive Summary Property Name Jnati Investments Property Address 7317 Lake Ballinger Way Edmonds, Snohomish County, Washington 98026 Property Type Single -Family Residential - Single Family Residence Owner of Record Jnati Investment, LLC Tax ID 00488800702700 Land Area 0.55 acres; 23,958 SF Zoning Designation RSW-12, Waterfront Single -Family Highest and Best Use Single-family residential Exposure Time 3-6 months Effective Date of the Appraisal August 3, 2023 Date of the Report August 23, 2023 Property Interest Appraised Fee Simple Sales Comparison Approach Number of Sales 5 Range of Sale Dates Aug 21 to Jun 23 Range of Prices per SF (Unadjusted) $12.24 - $28.54 Market Value Conclusion $480,000 ($20.04/SF) The vaI ues reported above are subject to the definitions, assumptions, and I i miting conditions set forth in the accompanying report of which this summary is a part. No party other than City of Edmonds may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein. Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. 1. None The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. 1. None The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. Jnati Investments Property ®rr Packet Pg. 53 Identification of the Appraisal Problem 2.6.b Identification of the Appraisal Problem Subject Description The subject is an existing one-story single-family residence containing 2,413 square feet with an 840 square foot detached garage which were built in 1944. The house is not habitable, was stripped down to the studs and foundation, and was boarded up as of the effective date. The garage is being used as storage space and has not been stripped down but is in poor condition with signs of debris and falling insulation throughout. Access to the property is via two steep dirt driveways directly off Lake Ballinger Way (NE 205th Street) which is a busy, primary thoroughfare in the area. The property has lake frontage along Lake Ballinger with views of the lake and an access dock. The dock could not be observed during the inspection and its condition is unknown, but it was reported to be in unusable condition. The site is overgrown and access to much of the northern portion of the subject site was unavailable during our inspection. The site has a history of flooding and there is evidence of vagrant activity both in the interior of the home and garage. The property has been vacant for approximately 10 years. A legal description of the property is provided in the addenda. Property Identification Property Name Jnati Investments Property Address 7317 Lake Ballinger Way Edmonds, Washington 98026 Tax ID 00488800702700 Owner of Record Jnati Investment, LLC Sale History The most recent closed sale of the subject is summarized as follows: Sale Date June 13, 2017 Seller Le Phong Buyer Jnati Investment, LLC Sale Price $425,000 Recording Instrument Number E086322 No known sales or transfers of ownership have taken place within a three-year period prior to the effective appraisal date. Pending Transactions To our knowledge, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date. Per MILS #1382857, the property was last listed in November 2018 for $550,000 or $22.96 per square foot. The structure was advertised as a tear down in this listing which expired after 359 days on market. Jnati Investments Property irr Packet Pg. 54 Identification of the Appraisal Problem 2.6.b Appraisal Purpose The purpose of the appraisal is to develop the following opinion(s) of value: The market value of the fee simple interest in the subject property as of the effective date of the appraisal, August 3, 2023 The date of the report is August 23, 2023. The appraisal is valid only as of the stated effective date or dates. Value Type Definitions The definitions of the value types applicable to this assignment are summarized below. Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and 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: Buyer and seller are typically motivated; Both parties are well informed or well advised, and acting in what they consider their own best interests; A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 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.1 Property Rights Definitions The property rights appraised which are applicable to this assignment are defined as follows. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.' Client and Intended User(s) The client and intended user is City of Edmonds. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report. 1 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FIR 77449, December 10, 2010, page 77472 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) Jnati Investments Property irr Packet Pg. 55 Identification of the Appraisal Problem 2.6.b 4 Intended Use The intended use of the appraisal is for property acquisition purposes. The appraisal is not intended for any other use. Applicable Requirements This appraisal report conforms to the following requirements and regulations: • Uniform Standards of Professional Appraisal Practice (USPAP); • Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; • Applicable state appraisal regulations. Report Format Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. Appraiser Competency No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report. Jnati Investments Property irr Packet Pg. 56 Scope of Work 2.6.b 5 Scope of Work Introduction The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below. Research and Analysis The type and extent of the research and analysis conducted are detailed in individual sections of the report. The steps taken to verify comparable data are disclosed in the addenda of this report. Although effort has been made to confirm the arms -length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable. Subject Property Data Sources The legal and physical features of the subject property, including size of the site and improvements, flood plain data, seismic zone designation, property zoning, existing easements and encumbrances, access and exposure, and condition of the improvements (as applicable) were confirmed and analyzed. Contacts In addition to public records and other sources cited in this appraisal, information pertaining to the subject was obtained from the following party: Russell Lynch, Associate Engineer, City of Edmonds. Inspection Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows: Property Inspection Party Inspection Type Inspection Date Inspection Details Jason Neary On -site August 3, 2023 IRR Seattle Lori E. Safer, MAI, AI-GRS On -site August 3, 2023 IRR Seattle Russell Lynch On -site August 3, 2023 City of Edmonds Jnati Investments Property irr Packet Pg. 57 Scope of Work 2.6.b 6 Valuation Methodology Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized The sales comparison approach is the most reliable valuation method for the subject due to the following: There is an active market for similar properties, and sufficient sales data is available for analysis. • This approach directly considers the prices of alternative properties having similar utility • This approach is typically most relevant for owner -user properties. The cost approach is not applicable to the assignment because: • The age of the property would limit the reliability of an accrued depreciation estimate. There are limited land transactions in the market area of the subject, making estimates of underlying land value subjective. This approach is not typically used by market participants, except for new (or proposed) or nearly new properties. The income capitalization approach is not applicable to the assignment considering the following: • There is not an active rental market for similar properties that would permit us to develop a reliable estimate of the property's income generating potential. • This approach does not reflect the primary analysis undertaken by a typical purchaser. • Similar properties are typically owner -occupied, decreasing the reliability of this approach Jnati Investments Property irr Packet Pg. 58 Seattle MSA Area Analysis 7 2.6.b Economic Analysis Seattle MSA Area Analysis The Seattle -Tacoma -Bellevue Metropolitan Statistical Area (hereafter called the Seattle MSA) lies in the northwest corner of the continental United States on Puget Sound, a saltwater arm of the Pacific Ocean 110 miles to the west. Situated in western Washington, the Seattle MSA is 5,872 square miles in size and is the 15t" most populous metropolitan area in the nation. The Seattle MSA, as defined by the U.S. Office of Management and Budget, comprises King, Pierce and Snohomish Counties and has the largest concentration of population north of San Francisco and west of Chicago. Victoria 0 Everett 0 Olympic 0 National Park Seattleo oBellevue Olympic National Forest 1/ Tacoma o Olymo pia © s` COLVILLE RESERVATIO Wenatchee it Forest Wenatchee 0 WASHINGTON Moses Lake Ellensburg 0 Yakima 0 Map data C2019 Googte Seattle is the economic and cultural capital of the northwestern United States. With a number of major corporations headquartered in or near the city, Seattle is also the leading financial center of the Pacific Northwest. Both Seattle and Tacoma possess modern ports on excellent deep -water harbors and as a result, the Seattle MSA has good transportation connections to the outside world. The growth of the Pacific Northwest helped propel Seattle to its current stature and the economic expansion of the Pacific Rim is expected to sustain the Seattle MSA's growth well into the future. Population The Seattle MSA has an estimated 2023 population of 4,090,711, which represents an average annual 0.6% increase over the 2020 census of 4,018,762. The Seattle MSA added an average of 23,983 residents per year over the 2020-2023 period, but its annual growth rate lagged the State of Washington rate of 0.7%. Jnati Investments Property ®rr Packet Pg. 59 2.6.b Seattle MSA Area Analysis 8 Looking forward, the Seattle MSA's population is projected to increase at a 0.8% annual rate from 2023-2028, equivalent to the addition of an average of 32,722 residents per year. The Seattle MSA's growth rate is expected to lag that of Washington, which is projected to be 0.9%. Population Trends Population Compound Ann. %Chng 2020 Census 2023 Estimate 2028 Projection 2020-2023 2023 - 2028 Seattle MSA 4,018,762 4,090,711 4,254,322 0.6% 0.8% King County 2,269,675 2,299,856 2,378,225 0.4% 0.7% Snohomish County 827,957 849,977 893,306 0.9% 1.0% Pierce County 921,130 940,878 982,791 0.7% 0.9% Washington 7,705,281 7,863,719 8,204,278 0.7% 0.9% Source: Claritas Employment Total employment in the Seattle MSA was estimated at 2,144,700 jobs at year-end 2022. Between year-end 2012 and 2022, employment rose by 381,400 jobs, equivalent to a 21.6% increase over the entire period. There were gains in employment in nine out of the past ten years. Consistent with national trends, there were significant losses in 2020, with the onset of the COVID-19 pandemic, followed by a return to positive growth in 2021. The Seattle MSA's rate of employment growth over the last decade surpassed that of Washington, which experienced an increase in employment of 21.3% or 630,100 jobs over this period. A comparison of unemployment rates is another way of gauging an area's economic health. Over the past decade, the Seattle MSA unemployment rate has been consistently lower than that of Washington, with an average unemployment rate of 4.9% in comparison to a 5.6% rate for Washington. A lower unemployment rate is a positive indicator. Recent data shows that the Seattle MSA unemployment rate is 3.0% in comparison to a 3.5% rate for Washington, a positive sign for the Seattle MSA economy but one that must be tempered by the fact that the Seattle MSA has underperformed Washington in the rate of job growth over the past two years. Jnati Investments Property ®rr Packet Pg. 60 Seattle MSA Area Analysis 2.6.b 9 Employment Trends Total Employment (Year End) Unemployment Rate (Ann. Avg.) Year Seattle MSA Change Washington Change Seattle MSA Washington 2012 1,763,300 2,954,500 7.0% 7.6% 2013 1,813,700 2.9% 3,023,600 2.3% 5.3% 6.7% 2014 1,866,900 2.9% 3,106,600 2.7% 5.1% 5.9% 2015 1,921,800 2.9% 3,188,700 2.6% 4.6% 5.4% 2016 1,982,400 3.2% 3,286,800 3.1% 4.3% 5.2% 2017 2,026,300 2.2% 3,361,600 2.3% 4.0% 4.7% 2018 2,069,000 2.1% 3,433,700 2.1% 3.7% 4.4% 2019 2,123,000 2.6% 3,508,300 2.2% 3.3% 4.3% 2020 1,963,200 -7.5% 3,264,800 -6.9% 8.3% 8.4% 2021 2,075,800 5.7% 3,469,900 6.3% 4.7% 5.2% 2022 2,144,700 3.3% 3,584,600 3.3% 3.4% 4.2% Overall Change 2012-2022 381,400 21.6% 630,100 21.3% Avg Unemp. Rate 2012-2022 4.9% 5.6% Unemployment Rate -April 2023 3.0% 3.5% Source: U.S. Bureau of Labor Statistics and Moody's Anal ytics. Employment figures are from the Current Employment Survey (CES). Unemployment rates are from the Current Population Survey (CPS). The figures are not seasonally adjusted. Employment Sectors The composition of the Seattle MSA job market is depicted in the following chart, along with that of Washington. Total employment for both areas is broken down by major employment sector, and the sectors are ranked from largest to smallest based on the percentage of Seattle MSA jobs in each category. Jnati Investments Property ®rr Packet Pg. 61 Seattle MSA Area Analysis 2.6.b 10 Employment Sectors - 2022 0% 5% 10% 15% 20% Professional and Business Services Trade; Transportation; and Utilities Education and Health Services Government Leisure and Hospitality Manufacturing Information Mining & Construction Financial Activities Other Services ■ Seattle MSA ■ Washington Source: U.S. Bureau of Labor Statistics and Moody's Ana Iytics The Seattle MSA has greater concentrations than Washington in the following employment sectors: 1. Professional and Business Services, representing 18.7% of Seattle MSA payroll employment compared to 15.5% for Washington as a whole. This sector includes legal, accounting, and engineering firms, as well as management of holding companies. 2. Manufacturing, representing 7.6% of Seattle MSA payroll employment compared to 7.5% for Washington as a whole. This sector includes all establishments engaged in the manufacturing of durable and nondurable goods. 3. Information, representing 6.7% of Seattle MSA payroll employment compared to 4.8% for Washington as a whole. Publishing, broadcasting, data processing, telecommunications, and software publishing are included in this sector. 4. Financial Activities, representing 4.8% of Seattle MSA payroll employment compared to 4.6% for Washington as a whole. Banking, insurance, and investment firms are included in this sector, as are real estate owners, managers, and brokers. The Seattle MSA is underrepresented in the following sectors: Jnati Investments Property ®rr Packet Pg. 62 Seattle MSA Area Analysis 1. Trade; Transportation; and Utilities, representing 17.2% of Seattle MSA payroll employment compared to 17.5% for Washington as a whole. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities. 2. Education and Health Services, representing 13.8% of Seattle MSA payroll employment compared to 14.7% for Washington as a whole. This sector includes employment in public and private schools, colleges, hospitals, and social service agencies. 3. Government, representing 12.5% of Seattle MSA payroll employment compared to 16.1% for Washington as a whole. This sector includes employment in local, state, and federal government agencies. 4. Leisure and Hospitality, representing 8.9% of Seattle MSA payroll employment compared to 9.3% for Washington as a whole. This sector includes employment in hotels, restaurants, recreation facilities, and arts and cultural institutions. Major Employers Major employers in the Seattle MSA are shown in the following table. Major Employers - Seattle MSA Name Number of Employees 1 Amazon 65,000 2 Boeing 60,244 3 Joint Base Lewis-McChord* 55,000 4 Microsoft 50,402 5 Providence 31,400 6 University of Washington Seattle 26,136 7 Walmart Inc.** 23,000 8 Multicare Health System 22,000 9 Fred Meyer and QFC (Kroger Inc.) Stores*** 22,000 10 Costco Wholesale Corporation 18,045 *Active duty and civilian and contract employees ** Total employment in Washington State, corporate.waImart.com/about/washington ***Total employment in Washington State, Sea ttleTimes, "Fred Meyer, QFCworkers struggle in Washington to make ends meet, new report shows" (1/19/2022) Sources: Axios Seattle, "Micosoft cuts nearly 900 Seattle -area workers" (1/19/2023); www.aboutamazon.com; "UW Staff Demographic Baseline Report, December 2020," http://hr.uw.edu;www.multicare.org/newsroom/multicare-facts/; Puget Sound Book of Lists 2019 (rev. 7/30/2020); The Business Journals, www.bizjournals.com; home.army.mi1/1ewis-mcchord/index.php/about Gross Domestic Product The Seattle MSA is the ninth largest metropolitan area economy in the nation based on Gross Domestic Product (GDP). Economic growth, as measured by annual changes in GDP, has been considerably higher in the Seattle MSA than Washington overall during the past decade. The Seattle MSA has grown at a 4.9% average annual rate while Washington has grown at a 4.0% rate. The Seattle MSA continues to perform better Jnati Investments Property ®rr Packet Pg. 63 Seattle MSA Area Analysis 2.6.b 12 than Washington. GDP for the Seattle MSA rose by 7.7% in 2021 while Washington's GDP rose by 6.7%. The Seattle MSA has a per capita GDP of $103,156, which is 39% greater than Washington's GDP of $74,319. This means that Seattle MSA industries and employers are adding relatively more value to the economy than their counterparts in Washington. Gross Domestic Product ($,000S) ($,000S) Year Seattle MSA % Change Washington % Change 2011 256,699,588 387,745,200 2012 269,458,587 5.0% 400,530,600 3.3% 2013 279,660,342 3.8% 410,873,900 2.6% 2014 291,560,585 4.3% 424,467,600 3.3% 2015 303,613,979 4.1% 441,952,100 4.1% 2016 315,433,699 3.9% 458,263,800 3.7% 2017 335,073,627 6.2% 482,007,000 5.2% 2018 361,521,592 7.9% 515,029,100 6.9% 2019 375,997,193 4.0% 533,150,400 3.5% 2020 384,268,122 2.2% 538,856,100 1.1% 2021 413,816,976 7.7% 575,129,000 6.7% Compound % Chg (2011-2021) 4.9% 4.0% GDP Per Capita 2021 $103,156 $74,319 Source: U.S. Bureau of Economic Analysis and Moody's Analytics; data released December 2022. The release of state and local GDP data has a longer lag time than national data. The data represents inflation -adjusted ""real"" GDP stated in 2012 dollars. Household Income The Seattle MSA is more affluent than Washington. Median household income for the Seattle MSA is $106,235, which is 18.8% greater than the corresponding figure for Washington. Median Household Income - 2023 Median Seattle MSA $106,235 Washington $89,445 Comparison of Seattle MSA to Washington + 18.8% Source: Claritas The following chart shows the distribution of households across twelve income levels. The Seattle MSA has a greater concentration of households in the higher income levels than Washington. Specifically, 65% of Seattle MSA households are at the $75,000 or greater levels in household income as compared to 58% of Washington households. A lesser concentration of households is apparent in the middle income levels, as 21% of Seattle MSA households are between the $35,000 - $75,000 levels in household income versus 25% of Washington households. Jnati Investments Property ®rr Packet Pg. 64 Seattle MSA Area Analysis 2.6.b 13 Household Income Distribution - 2023 $500,000 and more $250,000 - 499,999 $200,000 - $249,999 $150,000 - $199,999 $125,000 - $149,999 $100,000 - $124,999 $75,000 - $99,999 $50,000 - $74,999 $35,000 - $49,999 $2 5,000 - $ 34, 999 $15,000 - $24,999 Less than $15,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% ■ Seattle MSA ■ Washington Source: Claritas Education and Age Residents of the Seattle MSA have a higher level of educational attainment than those of Washington. An estimated 44% of Seattle MSA residents are college graduates with four-year degrees, versus 37% of Washington residents. People in the Seattle MSA are slightly younger than their Washington counterparts. The median age for the Seattle MSA is 38 years, while the median age for Washington is 39 years. Education & Age - 2023 Percent College Graduate 80% 70% 60 % 50% 40% 30% 20% 10% Seattle MSA Washington Source: Claritas Jnati Investments Property 50 45 40 35 30 25 20 15 10 Median Age Seattle MSA Washington ®rr Packet Pg. 65 Seattle MSA Area Analysis 2.6.b 14 Conclusion The Seattle MSA economy will benefit from a growing population base and higher income and education levels. The Seattle MSA experienced growth in the number of jobs and has maintained a consistently lower unemployment rate than Washington over the past decade. Moreover, the Seattle MSA exhibits both a higher rate of GDP growth and a higher level of GDP per capita than Washington overall. It is anticipated that the Seattle MSA economy will improve and employment will grow, strengthening the demand for real estate. Jnati Investments Property ®rr Packet Pg. 66 Seattle MSA Area Analysis 2.6.b 15 Area Map Port T Jnati Investments Property Camano C 'Arlington Tulallp { I R. j Marysville 11 Everett Puget Mukilteo Sound Q ~ Edmonds Lynnwood Richmond Highlands Shoreline Monroe ' Kirkland Redmond rerdale ', � Seattle Sammamish Bremerton' (, Mercer Q island Issaquah • Shorewood, �A Burien Renton t9 167 e. uKent North Bend '.1Ulirt B-A iser ]f HI X Covington a Z323 Werosoft Corporation - 2:23 TomTOO.L ®rr Packet Pg. 67 Surrounding Area Analysis 2.6.b 16 Surrounding Area Analysis The subject is located in the Lake Ballinger area of the City of Edmonds. This area is located between Interstate 5 to the east and Aurora Avenue N (Highway 99) to the west. Adjacent communities include Lynnwood to the north, Mountlake Terrace to the east, Shoreline to the south, and Richmond Beach to the west. Area boundaries and delineation are indicated in the following table. A map identifying the location of the property follows this section. Boundaries & Delineation Boundaries Market Area City of Edmonds Submarket Lake Ballinger Area Type Urban Delineation North 220th St. SW South NE 205th St East Interstate 5 West Highway 99 Access and Linkages Primary access and linkages to the subject area, including highways, roadways, public transit, traffic counts, and airports, are summarized in the following table. Access & Linkages Vehicular Access Major Highways Interstate 5 & Highway 99 Primary Corridors Interstate 5 & Highway 99 Vehicular Access Rating Average Public Transit Providers Community Transit Nearest Stop/Station N 205th St. & 1st Ave NE Transit Access Rating Average Airport(s) Name Seatac Distance 25 Miles South Driving Time 1 hour Primary Transportation Mode Automobile The subject benefits from having lake views and access but is also located adjacent to a busy road with high traffic noise, which is a negative factor for residential use. Overall site use is average. The subject is proximate to numerous commercial services along Highway 99 and N 2051" St., and given the subject's proximity to Interstate 5, access to areas along the 1-5 corridor is good. Overall vehicular access to the site is average. Jnati Investments Property ®rr Packet Pg. 68 Surrounding Area Analysis 17 2.6.b Demand Generators The typical generators of demand affecting the subject property and its market are discussed and analyzed below. Employment and Employment Centers Major employers include Primera Blue Cross, the City of Mountlake Terrace, the Edmonds School District, and Boeing. The area also is proximate to the downtown Seattle business hub which is approximately a 30-minute commute depending on traffic levels. Access to employment centers in other submarkets is a major demand driver. Nearby Retail Uses The nearest shopping facilities serving the area are along Aurora Avenue North (Highway 99) which is approximately one mile west of the subject. An array of both nationally branded and locally owned businesses are located along this corridor. Approximately one mile southwest of the subject property is a shopping center that includes Costco, The Home Depot, Petco, and UW Medicine Primary Care at Shoreline. Additionally, the Ballinger Village shopping center is located approximately one mile east of the subject, just east of 1-5 in Mountlake Terrace. This shopping center features a Regal Cinebarre theater as well as nationally branded and locally owned restaurants and retail services. Overall proximity to retail services is good. Demographics A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table. Surrounding Area Demographics 98026 (Edmonds, Snohomish 2023 Estimates 1-Mile Radius 3-Mile Radius 5-Mile Radius WA) County Washington Population 2020 16,248 136,556 290,034 38,490 827,957 7,705,281 Population 2023 16,332 138,645 293,752 38,799 849,977 7,863,719 Population 2028 16,687 143,395 302,938 39,614 893,306 8,204,278 Compound % Change 2020-2023 0.2% 0.5% 0.4% 0.3% 0.9% 0.7% Compound % Change 2023-2028 0.4% 0.7% 0.6% 0.4% 1.0% 0.9% Households 2020 7,051 55,194 119,371 15,268 306,828 2,974,692 Households 2023 7,059 56,104 120,778 15,359 314,081 3,029,278 Households 2028 7,189 58,152 124,553 15,654 329,410 3,157,573 Compound % Change 2020-2023 0.0% 0.5% 0.4% 0.2% 0.8% 0.6% Compound % Change 2023-2028 0.4% 0.7% 0.6% 0.4% 1.0% 0.8% Median Household Income 2023 $89,838 $102,286 $100,978 $108,588 $99,687 $89,445 Average Household Size 2.3 2.4 2.4 2.5 2.7 2.5 College Graduate% 42% 47% 47% 40% 33% 37% Median Age 42 42 42 44 39 39 Owner Occupied % 51% 66% 62% 73% 68% 63% Renter Occupied % 49% 34% 38% 27% 32% 37% Median Owner Occupied Housing Value $688,189 $742,518 $754,566 $729,394 $622,826 $510,382 Median Year Structure Built 1976 1970 1974 1974 1989 1983 Average Travel Time to Work in Minutes 37 35 35 36 37 31 Source: Claritas As shown above, the current population within a 3-mile radius of the subject is 138,645, and the average household size is 2.4. Population in the area has grown since the 2020 census, and this trend Jnati Investments Property ®rr Packet Pg. 69 Surrounding Area Analysis 2.6.b 18 is projected to continue over the next five years. Compared to Snohomish County overall, the population within a 3-mile radius is projected to grow at a slower rate. Median household income is $102,286, which is higher than the household income for Snohomish County. Residents within a 3-mile radius have a considerably higher level of educational attainment than those of Snohomish County, while median owner -occupied home values are considerably higher These demographic factors combined with the employment base discussed previously provide the basis of demand for residential housing in this area. Land Use Predominant land uses in the immediate vicinity of the subject include a mix of multifamily and single- family residential uses. Land use characteristics of the area are summarized below. Immediate Surroundings North Lake Ballinger South Multifamily Residential East Single-family Residential West Single-family Residential Outlook and Conclusions The area is in the stable stage of its life cycle. The economic outlook of the area is tied to Snohomish County and the Seattle MSA overall, which has seen an increase in population and a decrease in unemployment. Given the history of the area and the growth trends, it is anticipated that property values will increase as the economy continues to improve. Jnati Investments Property ®rr Packet Pg. 70 Surrounding Area Analysis 2.6.b 19 Surrounding Area Map a K 238th St SW y`ti t f a � e 24eth St SW 3 q� 79MiZ 241st Si SW — = 242nd St SVV y 7 t71 L 9 S 104 c tcd,'., 9° g Firdale ooat Village dy -- N-205th St- -Art N 205th St Lake Ballinger Way Center N 2p2 �aq N 203rd St 99 z QN 201st St -—N-200th St z a' o Q N 199th St 2 tt St o z N 198th St W z > Z Z p ` ¢ Q Sgth PI ■� Birx t a Lake Ballinger Nile Shrine D Golf Club ^2 - - - _ - _ 244th St SW- _ z Holyrood Catholic ILI Cemetery z a 0 r a S c0"13 Microsoft it �7 NE 198th 5 ® Z323 TomTom; Jnati Investments Property irr Packet Pg. 71 Regional Housing Market Trends 20 2.6.b Regional Housing Market Trends Pre COVID-19, the five -county Puget Sound region (King, Snohomish, Pierce, Kitsap and Thurston counties) was one of the hottest single-family markets in the country and the Seattle market itself consistently ranked among the country's top markets. The following section tracks data from mid- 2005 through June 2023. Sales Volume —All Homes One of the most basic indicators of market conditions is change in the volume of home sales, which is summarized in the following graph. 2,000 1,000 e 0 Z o oa0 -2,000 W1 ......................................... — ��IIII IfAI �W1WYV1lVIIII�IIIIIIW � � V�IVY � Change in sales vs. same month one year earlier -Trerdl line III O 0000000000000.00oo oo�tioa�.o..o� .m..Q........rvmrva. .ry ..ry.mm.mQ+.mm� vmtiva. �an. .�n..�nom.oQ. o. .�o.nmna. r .pr.m. mQ. .ro..ro.mmmQ. .m.pmrvomNoa�rvoo� .m.�.Q.rv... rv.,.rvrvmNrva rvrvpryrvmmma. a�� mP a-0m<0.m * Over -the -year change in the number of homes sold per month in the Puget Sound region Source: Northwest Multiple Listing Service The last twelve months saw a decrease in sales volume year over year for every month of the preceding twelve months which is a continuation of the sales volume trend from the prior year. March 2022 saw the only increase at 1.4% and May 2022 say an increase of 3.0%. The largest decreases occurred in the 41h Quarter of 2022, due to rising interest rates, however the 2nd Quarter of 2023 also saw substantial decreases. The last time the area experienced this large a decrease was in the great recession between 2006 and 2009. Days on Market — New Homes The following graph illustrates the time that new houses sit on the market before they are sold, as measured in median days on the market (DOM). To eliminate seasonal variation, we analyze the over - the -year change in median DOM for each month between April 2005 and June 2023; as can be seen in the following graph. Jnati Investments Property ®rr Packet Pg. 72 Regional Housing Market Trends 2.6.b 21 Time on Market* Trend for New Homes 40 zo J III 0 S -zo 0 L s -40 Change in days on market vs. same month one year earlier —Trend line m -60 L �o��c �onnnnaw amm mmmo oo o...y.-+..rvrvrvry mmmm cvav�n in �n in �o��c �onnnn m m mmmmmm0000.. .y .-+..ry rvrvry mm 0000000000000ooc,00 .-.titi...-.titi...-+ti.....-+ti.. .. .-+ti.. ti.-+.... ti.-+.. .. ti.-...tiff.-. ..titi.-. .. ti..ry Nry Nry Nry Nry NrvN rvN QUO—'°.4�O�Q^O�Q^O�¢^O�¢^O�¢^O'°—.¢�O'°—.¢�O 1O—,8_ UO8_ �O�8_ �O�8- 5 O�8- 5 O�8- 5 O�¢5 O�¢5 O�¢�O¢ * Change in median days on market vs. same month one year earlier Source: Northwest Multiple Listing Service Between June 2022 and June 2023, median days on market for new construction increased from 6 days in June 2022 to 18 days in June 2023. Days on market has been steadily increasing since September 2022, hitting a high of 31 days in January 2023. The first quarter of 2023 has since seen the most days on market since 2019. When all homes are analyzed, the trend is similar, 40 days in January 2023. However, for all homes, the days on market has dropped back down to 6 during the 2nd Quarter of 2023, an indication of pent-up demand. New Home Price Trends After 15 years of fairly steady increases, the median new home price in the Puget Sound region began falling in 2008, mirroring a trend that began nationwide more than two years previously. After the recession, new home prices have steadily increased with a slowdown during the Pandemic, as can be seen in the following graph. New Home Price Trends in the Puget Sound Region* $1,000 $900 $600 $700 $600 $500 w $400 w $300 $200 w $100 $0 25 /o 20 % 15% 10% 5% m 0% -5% i w -10 -15% G -20% 00000000000000000000 S.m... o....��N.m.��ti.�..�..�.N��.�.o�..�.oN��.. 000 00000NNrvrvrvrvrvrvrvry ¢�O�¢ an. �O�an. an. �O�an. ¢�O�¢¢�O�¢�O�¢¢n. �O�¢¢�O�¢¢�O�¢¢ * For all new detached single-family homes sold, by month, in the Puget Sound region Source: Northwest Multiple Listing Service Over the past 12 months, the median list price of new homes fell by $95,000 (-11.9%) from $794,990 to $699,990, due to the rise in interest rates. The median sale price of new homes fell by $98,557 (- 12.3%) from $799,950 to $701,393. When all homes are considered, the median list price of $699,000 is effectively the same as 12 months ago ($700,000), but the median sale price of $705,000 is 2.8% lower than June 2022. Jnati Investments Property irr Packet Pg. 73 Regional Housing Market Trends 2.6.b 22 Sale Price vs. Listing Price A final indicator of the strength of the housing market is the ratio of sale price to listing price, which can be seen in the following graph. New Home Sale Price:List Price Ratio* 1041/6 103 % 102 % 101 % �, I .._.... 99 % 11 I. I I I 98 %.................................................. ..................1 97%................................................................... `v 91% Sale price as a%ol list price a` a 95% Linear (Sale price as a % of list price) -��-�—•��— �• �•`^��-'-��--�-'--�--`—�• �^_ O OOO OOO OO OOO OO OO O O O O O O O O O OO ��,trv��N MMmmVi Vi�Vi��O i0 i0 iO��a0 a0WWTT TOO NN Nrvrvry ry nrNVNNNN a;o;a;o;¢�o;¢�o;¢�o;¢�o�¢;o;a�o�a;o;a;o;a;o;¢;o;a;o�a�o�a;o;a;o�¢�o�a;o;¢'o,�°a ' Median sale price divided by median list price for all new homes sold Source: Northwest Multiple Listing Service The ratio has generally improved since the beginning of 2009. In the past twelve months, the ratio has fluctuated between a low of 98.24% (January 2023) to a high of 101.18% (July 2022); effectively, homes are selling at just about list price, although the trend for new homes is just below the list price. As of the June 2023, the ratio stands at 100.20%. The ratio has consistently been at about 100% for the last 12 months, indicating a continuation of a strong seller's market, although it has fallen below 100% for the past seven out of the last twelve months. When analyzing all homes in the market, the ratio reflects the new home market, currently standing at 100.86% in June 2023, down from 103.57% from a year ago. Supply and Demand The following table and graph show the balance of supply and demand for new homes by price range in the five -county Puget Sound region at the end of June 2023, broken down by price point. Supply of vs. Demand for New Homes by Price Point 600 400 Cu E 0 200 o Homes Available* O Homes Sold** -Months SUoDly 0 m m m m m On M M M On a m m m m m m on m on N e-I N M 0 ul V) n N O1 O N ul O O orO� VF VF VF VF Vf Vf Vf Vf Vf O N ul O O N M 7 ul UJ n W 01 O Price Range ($000) **All homes sold in the 6 months between 01/01/2023 - 06/30/2023 * Homes available or sales pending as of June 30 2023 Source: Northwest Multiple Listing Service Jnati Investments Property 10 8 6 1 4 L 2 0 0 ®rr Packet Pg. 74 Regional Housing Market Trends 2.6.b 23 Typically, the single-family market is considered to be in balance if it has a six-month supply of homes. In the current six-month period (January 2023 through June 2023) there were no sales of new homes in the under $199,999 category and only one home in the $200,000 to $299,999 category. Twelve homes sold in the $300,000 to $399,999 category. There is a shortage of homes in all categories, with the largest supply (four months) in the $700,000 to $799,999 category. When all homes are considered, the market is much tighter, with a shortage of homes in all categories except for homes priced above $5,000,000. Housing Market Outlook The Washington State Economic and Revenue Update for June 2023 reports the following: • The economy continues to recover, although high inflation threatens to slow economic growth • The Washington economy continued to expand through the end of 2022. • Washington employment growth in March through May was more than expected. • The Washington unemployment rate declined to 4.1% in May 2023. • Washington housing construction declined throughout 2022 but spiked early in 2023. • Seattle consumer price inflation outpaced the national average in the year ending June 2023. Jnati Investments Property ®rr Packet Pg. 75 Land Description and Analysis 2.6.b 24 Property Analysis Land Description and Analysis Location The property is located on the south shore of Lake Ballinger with approximately 145 feet of frontage along Lake Ballinger Way, a primary thoroughfare in the area. The subject property is approximately 0.50 mile west of the intersection of Interstate 5 and Lake Ballinger Way, and approximately 0.70 miles east of the intersection of Aurora Avenue North (Highway 99) and Lake Ballinger Way. Land Area The following table summarizes the subject's land area. Land Area Summary Tax ID SF Acres 00488800702700 23,958 0.55 Shape and Dimensions The site is rectangular in shape, with dimensions of approximately 145 feet in width and 165 feet in depth. Site utility based on shape and dimensions is average. Topography The site is steep at the southern boundary of the site where the property has frontage with Lake Ballinger Way, but levels out approximately 45 feet north of the southern boundary. Based on a review of a topological survey dated 07/11/2023, the site descends 8 feet from the two entry driveways that are level with Lake Ballinger Way to the existing homestead. After this descent, the property is generally level with only a slight downward slope toward the shore of Lake Ballinger. The topography does provide challenges entering and leaving the site as the steep driveway connects to busy Lake Ballinger Way and visibility is difficult on such a steep slant; however, the overall topography of the remaining site does not result in any particular development limitations. Drainage No particular drainage problems were observed or disclosed at the time of field inspection although we are aware of past flooding at the subject site during heavy storms, especially near the shoreline. This appraisal assumes that surface water collection, both on -site and in public streets adjacent to the subject, is adequate. Jnati Investments Property ®rr Packet Pg. 76 Land Description and Analysis 25 2.6.b Flood Hazard Status The following table indicates applicable flood hazard information for the subject property, as determined by review of available flood maps obtained from the Federal Emergency Management Agency (FEMA). Flood Hazard Status Community Panel Number 53061C1315F Date June 19, 2020 Zone A Description Within 100-year floodplain Insurance Required? Yes The subject is located within a FEMA special flood hazard area subject to inundation by the 100-year flood. We are aware of past flooding at the subject site, the most recent to have occurred around 2008 based on conversations with our client. Mandatory flood insurance purchase requirements will be required. Additionally, the ground floor of any structure on the subject site would need to be at least two feet above the current foundation level in order to comply with FEMA base flood elevation requirements. Wetland Delineation A wetland analysis was performed at the subject site by Raedeke Associates, Inc. on 06/28/2023. According to this analysis, one wetland was identified as Wetland 1. Per a summary provided by Raedeke Associates, Inc., the Wetland 1 area would require a minimal development restriction buffer of 165 feet from its boundary. This buffer basically restricts any development on the subject site as a vacant lot as the rear lot line for the subject site is approximately 100 feet from the Wetland 1 designated area. We provide a copy of the Wetland Sketch Map in the upcoming exhibits. Environmental Hazards A Phase I environmental report was prepared for the subject by Landau Associates, dated 04/13/2023 The key findings of the report indicate the subject has had a history of flooding with public records indicating the earliest from 1970 and the most recent from 2008, demolition activity for the structure took place in 2017, an aboveground storage tank was removed from the property in 2017, and debris, some of which would be considered suspect asbestos -containing, was present throughout the site. These key findings aside, the assessment revealed no recognized environmental conditions (RECs), controlled recognized environmental conditions (cRECs), or significant data gaps in connection with the subject property. Based on these findings, no mitigation is warranted. Hazardous Building Materials A hazardous building material survey was prepared for the subject by Landau Associates, dated 04/13/2023. Landau Associates performed a survey for asbestos -containing materials (ACM), lead - containing paint (LCP), polychlorinated -biphenyl (PCB), mercury -containing equipment, and mold at the subject property. Asbestos was detected in samples taken of red vinyl floor tile. Lead was detected in exterior trim paint and concrete floor paint at the subject's southern entry. There was Jnati Investments Property ®rr Packet Pg. 77 Land Description and Analysis 2.6.b 26 insufficient data to collect in order to determine PCB or mercury -containing equipment contamination, and there was no evidence of mold contamination within the house or garage structures. We note that the house structure was stripped down to the studs at the time of the survey and samples were taken from materials laying on the ground around the site which were assumed to have been removed from the subject property during demolition in 2017. The report indicates caution in moving forward with any future demolition of the structures based on the findings of the analysis. Ground Stability A soils report was not provided for review. Based on the inspection of the subject and observation of development on nearby sites, there are no apparent ground stability problems. However, soils analyses are beyond the scope of expertise of the assignment participants. It is assumed the subject's soil bearing capacity is sufficient to support the existing improvements. Streets, Access and Frontage Details pertaining to street access and frontage are provided in the following table. Streets, Access and Frontage Street Lake Ballinger Way Frontage Feet 145 Paving Asphalt Curbs Concrete Sidewalks Concrete Lanes 2 way, 2 lanes each way Direction of Traffic East -west Condition Average Traffic Levels Moderate Signals/Traffic Control Traffic light Access/Curb Cuts Driveway Visibility Average Utilities Utilities available to the subject are summarized below. Utilities Service Provider Water Public Sewer Public Electricity Snohomish County PUD Natural Gas Puget Sound Energy Local Phone Various Jnati Investments Property ®rr Packet Pg. 78 Land Description and Analysis 27 2.6.b Zoning The subject is within the Waterfront Single -Family zone. The following table summarizes the applicable zoning requirements affecting the subject. Zoning Summary Zoning Jurisdiction City of Edmonds Zoning Designation RSW-12 Description Waterfront Single -Family Legally Conforming? Appears to be legally nonconforming Zoning Change Likely? No Permitted Uses Single-family dwellings, church, primary school, parks, and open spaces Category Zoning Requirement Minimum Lot Area 12,000 SF Minimum Setbacks (Feet) 15 feet (front), 10 feet (side), 35 feet (rear) Maximum Building Height 25 feet Maximum Site Coverage 35% Maximum Density 3.7 dwelling units per acre Parking Requirement 2 spaces per dwelling unit We had a discussion with Mike De Lilla, City of Edmonds Engineering Department, Leif Bjorback, City of Edmonds Building Department, and David Levitan, City of Edmonds Planning Department about development options for the subject property. According to the Planning Department, the existing house structure is nonconforming for the east side setback and the north side setback. Additionally, it was noted that the renovation permit approved for the current owner to rehab the existing structure had a stoppage put into effect because the renovation costs exceeded the amount in the permit. Based on our discussion, it is our understanding that the property could be developed on the existing foundation with a reasonable use review with the Planning Department; however, this redevelopment would not include using the existing vertical improvements. These would have to be removed for any new construction to begin. It appears that the current use of the site is a legally nonconforming use that pre -dates the current zoning regulations; however, under a reasonable use review, the site could be redeveloped as a single- family residence. Other Land Use Regulations Other land use regulations that could affect the property include the City of Edmonds Shoreline Master Program which encourages development that will enhance the present or desired character of the shoreline. The subject shoreline is designated Shoreline Residential III which allows only single- family detached development. No other uses are allowed under this designation. Interpretation of zoning ordinances is beyond the scope of expertise of the assignment participants An appropriately qualified land use attorney should be engaged if a determination of compliance is required. Jnati Investments Property irr Packet Pg. 79 Land Description and Analysis 28 2.6.b Easements, Encroachments and Restrictions A preliminary title report/ title policy prepared by Chicago Title dated May 31, 2023, was provided. The report identifies exceptions to title, which include various utility and access easements that are typical for a property of this type. Such exceptions would not appear to have an adverse effect on value. The report also identifies exceptions to shoreline use, specifically that which lies beneath the high-water mark of Lake Ballinger to be in favor of the State of Washington. One notable exception includes a notice of limitation and covenant adult family home which allows the use of the existing improvements to be used as an adult daycare with an occupancy maximum of 6 residents along with their caretakers. The covenant stays with the land so long as the present structure and use continues Given the current structure is not habitable, and is a teardown, this covenant shall not survive. This valuation assumes no adverse impacts from easements, encroachments or restrictions and further assumes that the subject has clear and marketable title. Conclusion of Site Analysis Overall, the physical characteristics and the availability of utilities result in a functional site, suitable for single-family development with a reasonable use review through the City of Edmonds Planning Department. No other restrictions on development are apparent. Jnati Investments Property ®rr Packet Pg. 80 Land Description and Analysis 2.6.b 29 Aerial Photograph f .lb,? .f 2 Jnati Investments Property ®rr Q Packet Pg. 81 Land Description and Analysis 2.6.b 30 Plat Map 01 ' " gN Jnati Investments Property Oirr Q Packet Pg. 82 Land Description and Analysis 2.6.b 31 Survey WP.IfPq•M� � .i4a—aa—i w��io.•i.��lw . .� iYis w.7in 1—iw-s� �alws�w��.w�i .., tit...w.w wiwnww �.ww..,{•p.. t ��s 44 y ��rypM.,l m- Jnati Investments Property dUUNUANY & IUNUGHAPHIC SURVEY 244TH V CW NP-1 A) A •A My on Oirr Q Packet Pg. 83 Land Description and Analysis 2.6.b 32 Flood Hazard Map InterFlood 6 a %4% Stir .aotn� sw, , r � � tC�>�� •1 f lay Ballinger 242 St, I AA �wattle Bapit st GCr6c v'r a 243rd P1SW S Interurben� Tra1liTrailhead 20 th yi r r z .,. r •f MAP DATA FEMA Special Flood Hazard Area Yes Map Number 53061C1315F Zone A Map Date June 19. 2020 FIPS 53061 Jnati Investments Property Prepared for Integra Really Resources 1 - { r t Jr�, - . I A. MAP LEGEND Pm*md by C"Loyos Areas inundated by SOD -year flooding ® Protected Areas Areas inundated by 100•year flooding ® Floodwsy Velocity Hazard O Subject Area ®rr Q Packet Pg. 84 Land Description and Analysis 2.6.b 33 Wetland Delineation Map Date:6-29-23 Wetland Sketch Map 7317 Lake Ballinger Way, Edmonds N'A Note: We- land and OHW&t Pn jtrt it 2023-056-001 boundaries based on hand-held GPS units and have not been surveyed for Planning pugxvses only. Jnati Investments Property ®rr Q Packet Pg. 85 Land Description and Analysis 2.6.b 34 Zoning Map 3 s L go .lL RS-8 i :e B er Par J RS;W_1�•. �•. W7n5 > CD i -� -AIL, .�1 _ 7'r im1/nOEM 110iffIM110/1111111111111 I� I I I Jnati Investments Property ®rr Q Packet Pg. 86 Improvements Description and Analysis 2.6.b 35 Improvements Description and Analysis The following description is based on the inspection of the property. Improvements Description Name of Property Jnati Investments Property General Property Type Single -Family Residential Occupancy Type Owner Occupied Number of Buildings 2 Stories 1 Construction Class D Construction Type Wood frame Construction Quality Low Condition Poor Gross Building Area (SF) 2,413 Land Area (SF) 23,958 Year Built 1944 Actual Age (Yrs.) 79 Estimated Effective Age (Yrs.) 60 Estimated Economic Life (Yrs.) 60 Remaining Economic Life (Yrs.) 0 Number of Parking Spaces 2 Parking Type Surface Construction Details Foundation Concrete Structural Frame Wood Exterior Walls Wood siding Roof Asphalt Shingle HVAC None Improvement Analysis The subject property is improved with a single-family residence which has been stripped down to the studs. Basic framing, subflooring, and foundation is exposed with no finishes remaining. The subject was undergoing renovation in 2017 at which point the City of Edmonds issued a stop work order due to permitting issues. To our knowledge no work has commenced on the property since that stoppage was placed. Quality and Condition The improvements are of low quality construction and are in poor condition. The quality of the subject is inferior to competing properties. Maintenance is inferior to competing properties. Overall, the market appeal of the subject is inferior to competing properties, considering it is not habitable in its current state. Jnati Investments Property ®rr Packet Pg. 87 Improvements Description and Analysis 2.6.b 36 Functional Utility The improvements appear to be adequately suited to their current use. Based on the property inspection and consideration of the foregoing, there do not appear to be any significant items of functional obsolescence. Deferred Maintenance As discussed, the property is not habitable in its current state. A complete renovation or tear down and rebuild is needed to cure deferred maintenance items. ADA Compliance Based on the property inspection and information provided, there are no apparent ADA issues However, ADA matters are beyond the scope of expertise of the assignment participants. Personal Property The appraisal assignment is specifically focused on the value of the real property only. Items of personal property are excluded from consideration. Conclusion of Improvements Analysis In comparison to competitive properties in the market, the subject improvements are rated as follows: Improvements Ratings Design and Appearance Below Average Age/Condition Below Average Landscaping Below Average Because the subject is not habitable, the quality, condition, and functional utility of the improvements are below average for their age and location. The improvements, overall, contribute minimal value to the site. Jnati Investments Property ®rr Packet Pg. 88 Improvements Description and Analysis 2.6.b 37 q ItA A,, � Exterior View of Subject Property Interior View - From Phase I Report Exterior View of Subject Property Jnati Investments Property Interior View of Subject Property Interior View - From Phase I Report Exterior View of Subject Property ®rr Packet Pg. 89 Improvements Description and Analysis 2.6.b 38 Exterior View of Subject Property Garage View Interior View of Subject Property Jnati Investments Property Exterior View of Subject Property Q\ Garage Interior Site View ®rr Packet Pg. 90 Improvements Description and Analysis 2.6.b 39 J Water View Site View Dock View - From Phase I Report Jnati Investments Property i Water View Entry Gate ®rr Packet Pg. 91 Real Estate Taxes 2.6.b 40 Real Estate Taxes Real estate taxes in Washington State represent ad valorem taxes, meaning a tax applied in proportion to value. The real estate taxes for an individual property are determined by dividing the assessed value of a property by $1,000, then multiplying by the levy (tax) rate. The levy rate is composed of a statewide tax rate plus one or more local taxing district rates. Assessors are mandated by State law to value property at 100% of market. Real estate taxes and assessments for the current tax year are shown in the following table. Taxes and Assessments - 2022 Assessed Value Taxes and Assessments Ad Valorem Tax ID Land Improvements Total Tax Rate Taxes Past Due Taxes Total 00488800702700 $670,100 $1,400 $671,500 0.827020% $5,553 $1,869 $7,422 We note the subject is delinquent for taxes in the amount of $1,869. Fees and interest accrue daily until paid in full. Based on our analysis of the subject property, the assessed land value is high. Jnati Investments Property ®rr Packet Pg. 92 Highest and Best Use 41 2.6.b Highest and Best Use The highest and best use of a property is the reasonably probable use resulting in the highest value and represents the use of an asset that maximizes its productivity. Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as though vacant, and as improved or proposed. By definition, the highest and best use must be: • Physically possible. • Legally permissible under the zoning regulations and other restrictions that apply to the site. • Financially feasible. • Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As Though Vacant First, the property is evaluated as though vacant, with no improvements. Physically Possible Physical access to the site is somewhat difficult with two access driveways off Lake Ballinger Way. The access driveways are very steep and visibility into and out of the site is poor. Both driveways connect to the street which is very busy, and it is difficult to maneuver a vehicle directly from the steep access points onto the busy road. The steep access is a negative attribute to the site and would have a negative impact on the overall value of the property. This could be alleviated with some engineering and although expensive, is possible. Additionally, the site is encumbered by a wetland delineation. It was communicated to us that due to this delineation, any development to the site would require a reasonable use review with the City of Edmonds Planning Department to determine the affect, if any, of site development in conjunction to the wetlands. As a legal lot, the City of Edmonds cannot restrict development, but it can limit development options to certain areas of the site as well as limit the overall size of any development. Legally Permissible The site is zoned RSW-12, Waterfront Single -Family. Permitted uses include single-family dwellings, church, primary school, parks, and open spaces. There are no apparent legal restrictions, such as easements or deed restrictions, effectively limiting the use of the property. As discussed, any development would need to undergo a reasonable use review with the City of Edmonds Planning Department, but this review does not prevent development of the site, it only adds an additional step to the development process. Additional development restrictions include the City of Edmonds Shoreline Master Program which designates the subject shoreline as Shoreline Residential III. This restricts development along the shoreline to only single-family residential. Thus, only single-family residential is given further consideration in determining highest and best use of the site, as though vacant. Jnati Investments Property ®rr Packet Pg. 93 Highest and Best Use 42 2.6.b Financially Feasible Based on the accompanying analysis of the market, there is currently adequate demand for single- family residential in the subject's area. It appears a newly developed single-family residential on the site would have a value commensurate with its cost. Therefore, single-family residential is considered to be financially feasible. Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than single-family residential Accordingly, single-family residential developed to the normal market density level permitted by zoning, is the maximally productive use of the property Conclusion Development of the site for single-family residential is the only use which meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as though vacant. As Improved The subject site is developed with a single-family residence, which is consistent with the highest and best use of the site as though vacant, although the structure is not habitable and has no value contribution. Repurposing the subject property is not possible as no alternate use other than single- family residential is allowed on the site. Expansion options are limited to the existing 2,400 square foot foundation due to proximity to existing wetlands, and the cost to renovate the existing structure, which has sat vacant for approximately 10 years, would be significant and would well exceed the cost and time needed to demolish the existing improvements and start from scratch. As a test of reasonableness and for feasibility, we present the following analysis. The land valuation analysis presented later in this report suggests an overall land value of $480,000. A summary of recent improved sales in the area is presented below. Summary of Comparable Sales Address Sale Number Sale Price Size (SF) Year Built Price/SF 7129 Lake Ballinger Way 1 $1,490,000 2,512 1984 $593.15 7401 Lake Ballinger Way 2 $1,000,000 2,185 1963 $457.67 7415 244th Street SW 3 $1,270,000 3,088 1990 $411.27 23921 76th Avenue W 4 $725,000 1,611 1962 $450.03 19027 18th Avenue NE 5 $735,000 2,030 1935 $362.07 The range of the improved sales, unadjusted, is $725,000 to $1,490,000. Sales 1, 2, and 3 have frontage along Lake Ballinger and are the most similar to the subject in location. Sales 4 and 5 do not have lake frontage. Sales 2 and 3 are located along Lake Ballinger Way and are thus affected by traffic noise as is the subject property. Sale 3 was built in 1990, is in good condition, and does not have steep access issues to the road. Further, Sale 3 can access Lake Ballenger Way at a stoplight signal which is superior to the subject site. Sale 2 is located two lots to the west of the subject property. Our discussions with the listing agent who sold this property, and also lives in the Lake Ballenger neighborhood, indicate the overall listing price was dictated by the property owner. It sat on the Jnati Investments Property ®rr Packet Pg. 94 Highest and Best Use 43 2.6.b market for over 130 days and eventually sold for $1,000,000 at 93% of the original list price. The broker indicated the buyer had capital gains money they had to reinvest, and they were motivated to purchase, otherwise it would have likely sat on the market for longer. Sale 2 is in average condition and does not have steep access issues. The broker indicated a value of $900,000 for this sale would have been more appropriate for a quick sale, which falls within the middle of the range for the improved sales previously presented. Since Sale 2 is proximate and has similar external influences (traffic noise and lake view/frontage) we place the highest weight on this sale. We take the indicated value of $900,000 (the price we assume for the subject as new construction) as communicated by the broker from Sale 2 and use it for the subject as improved. This would indicate an improvement contribution of approximately $305,000 which, for a 2,400 square foot residence, would cost roughly $127 per square foot. Per the most recent Marshall and Swift Valuation Service cost manual (Section 12 page 25) the cost to build an average Class D residence is also $127 per square foot indicating our cost estimate is reasonable. Adding in the land value conclusion of $480,000 we estimate the cost new for a single-family residence of 2,400 square feet to be $784,800. A sale price of $900,000, would equate to a profit of approximately 13% to a developer as outlined in the following table: Profic Calculation Finished Home Size (SF) Building Cost/SF Construction Cost Land Value Cost New Price Profit % Profit 2,400 $127 $304,800 $480,000 $784,800 $900,000 $115,200 13% As demonstrated by the data presented above, a profit of 13% shows the subject, as a new home selling in the middle of the range for competing properties would be feasible. Additionally, it shows the reasonableness of our land value conclusion as entrepreneurial profit for a single-family residence is typically estimated to be between 10% to 20%. Thus, demolishing the existing improvements for redevelopment is the highest and best use of the property as improved. Most Probable Buyer Taking into account the size and characteristics of the property, the likely buyer is a developer with experience in single-family residential lot development. Jnati Investments Property ®rr Packet Pg. 95 Valuation Methodology 44 2.6.b Valuation Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach. The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner -user properties. The income capitalization approach reflects the market's perception of a relationship between a property's potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income -producing properties. Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type. The methodology employed in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized Jnati Investments Property ®rr Packet Pg. 96 Land Valuation 45 2.6.b Land Valuation To develop an opinion of the subject's land value, as though vacant and available to be developed to its highest and best use, the sales comparison approach is used. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties. The research focused on transactions within the following parameters: • Location: Skagit, Pierce, Snohomish, and King Counties • Size: 15,000 SF — 30,000 SF • Use: Single-family residential with lake frontage • Transaction Date: 2020-present Because the subject is a single-family residential lot with lake frontage, our search parameters weigh heavily toward lake frontage single-family residential lots. Data for this property type with lake frontage is limited, thus we expanded our search to include the four most populated counties of the Seattle metro and pushed our transaction time backward to three years. We feel the sales presented are the best representations of the subject's attributes available. For this analysis, price per square foot is used as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table: Jnati Investments Property ®rr Packet Pg. 97 Land Valuation 2.6.b 46 Summary of Comparable Land Sales Sale Date; Effective Sale SF; $/SF No. Name/Address Status Price Acres Zoning Land 1 Big Lake Lot Jun-23 $460,000 16,117 RVR $28.54 19040 Sulfer Springs Rd. Closed 0.37 Mount Vernon Skagit County Comments: Residential lot with approximately 62 feet of frontage along Big Lake just outside of Mt. Vernon. Public utilities are available to the site. Sale includes two parcels, one with lake frontage, the other just across from Sulfer Springs Road. Both parcels must remain together to meet the minimal development requirements for lot size. Site is cleared and has a gentle downward slope toward the lake. Sale includes a dock in average condition. 2 Lake Morton Residential Lot Nov-21 $200,000 16,335 RA5 $12.24 W. Lake Morton Dr. SE. Closed 0.38 Kent King County Comments: Residential lot with views of and access to Lake Morton, but the lot does not have frontage along the lake. Public water is available to the site. Public sewer is not available and septic design was not complete prior to the sale. Area allows both manufactured and stick built homes. 3 137th Street Lot Oct-21 $699,000 27,075 NR2 $25.82 353 N. 137th St. Closed 0.62 Seattle King County Comments: Lake front lot on Bitter Lake that sold with approved architectural plans for a 2-story, 5 bedroom/3 bathroom 3,395 SF home & 3-car garage. Additional plans were approved for a 2-story DADU. Sale also included approved site drainage report, waste & water plan, soil test, and temporary power pole. All utilities are in the street nearby. The property has 50 feet of lake frontage. The property is close to multiple retailers along Aurora Ave N including an L.A. Fitness, Lowes, Hobby Lobby, and Home Goods. 4 Lake Shoecraft Lot Aug-21 $590,000 21,344 R5 $27.64 15014 W. Lake Goodwin Rd. Closed 0.49 Stanwood Snohomish County Comments: Residential lot with approximately 65 feet of water frontage. Sale includes a private dock in good condition. The property has septic installed and water is available at the street. The property has frontage along Lake Shoecraft which is the smaller of the two lakes in the region and includes Lakes Shoecraft and Goodwin. Commercial uses are approximately 5.0 miles east of the property and include Lowes, Costco, Target, Hobby Lobby, Marshall's, and Best Buy. 5 Lake Morton Residential Lot Aug-21 $325,000 15,812 RA5 $20.55 31002 W. Lake Morton Dr. SE. Closed 0.36 Kent King County Comments: Residential lot with approximately 50 feet of frontage along Lake Morton. The sale included a 140 square foot structure with a small loft and kitchenette with a value contribution of approximately $15,000 per the King County assessor's office giving an effective sale price of $325,000 for the land. Site includes a finished dock in average condition. Water is available in the street, private septic will need to be designed post sale. Subject 23,958 RSW-12 Jnati Investments Property 0.55 Edmonds, WA Jnati Investments Property irr Packet Pg. 98 Land Valuation 2.6.b 47 Comparable Land Sales Map Bellingham Saanich Victoria Mount Venion Oak Harbor 0 Port Angeles port Townsend • Marysville Everett c7 ; •., Shoreline Seattle• `Bellevue insult _ Port Orchard Renton than rvatlon Olympic National Forest + Kent ©�°' Federal Way• Humptulips •'= Tacoma She if South Hill �t �Mirmwh Elma Tumwater Jnati Investments Property national Cascades Recreation N o Area Glacier Peak Wilderness Mount Baker rsnoqualrnle National Forest W1 'aka Chelan National Recreation Area Wenatchee, National Forest Leavenworth Wenatc 0 ZDZ3 Microsoft Corporattor Rr2_,2.,jojnTom. ®rr Packet Pg. 99 Land Valuation 48 Sale 1 Big Lake Lot Ir, A - 9' L. I -� Sale 3 137th Street Lot 00F. w ice, 4'', 1 -ore fit Sale 5 Lake Morton Residential Lot Jnati Investments Property Sale 2 Lake Morton Residential Lot Sale 4 Lake Shoecraft Lot ®rr Packet P9. 100 Land Valuation 49 2.6.b Analysis and Adjustment of Sales Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of both analyses. Quantitative adjustments are often developed as dollar or percentage amounts, and are most credible when there is sufficient data to perform a paired sales analysis. While percentage adjustments are presented in the adjustment grid, they are based on qualitative judgment rather than empirical research, as there is not sufficient data to develop a sound quantitative estimate. Although the adjustments appear to be mathematically precise, they are merely intended to illustrate an opinion of typical market activity and perception. With the exception of market conditions, the adjustments are based on a scale, with a minor adjustment in the range of 1- 5% and a substantial adjustment considered to be 20% or greater. The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject's relative attributes; if the comparable is inferior, its price is adjusted upward. Transactional adjustments are applied for property rights conveyed, financing, conditions of sale, expenditures made immediately after purchase, and market conditions. In addition, property adjustments include — but are not limited to — location, access/exposure, size, quality, effective age, economic and legal characteristics, and non -realty components of value. Adjustments are considered for the following factors, in the sequence shown below. Transactional Adjustments Adjustments Summary The sales are compared to the subject and adjusted to account for material differences that affect value. The following table summarizes the adjustments applied to each sale. Real Property Rights Conveyed The opinion of value in this report is based on a fee simple estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well as non -detrimental easements, community facility districts, and conditions, covenants and restrictions (CC&Rs). All the comparables represent fee simple estate transactions. Therefore, adjustments for property rights are not necessary. Financing Terms In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third -party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below -market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a Jnati Investments Property Oirr Packet Pg. 101 Land Valuation 2.6.b 50 cash equivalent basis. The comparable sales represented cash -to -seller transactions and, therefore, do not require adjustment. Conditions of Sale Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, compared to that of the market. This discrepancy in price is generally attributed to the motivations of the buyer and the seller. Certain conditions of sale are considered non -market and may include the following: • a seller acting under duress (e.g., eminent domain, foreclosure); • buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges); • a lack of exposure to the open market; • an unusual tax consideration; • a sale at legal auction. None of the comparable sales had atypical or unusual conditions of sale. Thus, adjustments are not necessary. Expenditures Made Immediately After Purchase This category considers expenditures incurred immediately after the purchase of a property. There were no issues of deferred maintenance reported for any of the properties. No adjustments are required for expenditures after sale. Market Conditions Real estate values normally change over time. The rate of change fluctuates due to perceptions of market participants of prevailing market conditions. This adjustment category reflects value changes, if any, which have occurred between the date of the sale and the effective date of the appraisal. The sales took place from August 2021 to June 2023. Market conditions were generally stable between 2021 to 2022 at which point they began to increase in early 2022. This increase lasted until mid -year at which point interest rates rose and value increases began to taper off. Values have remained somewhat steady throughout 2023. Given the swings in the overall market over the past three years, and with the understanding that vacant land typically appreciates at a much slower rate than improved sales, we estimate a 3% upward adjustment for market conditions. Property Adjustments Location Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values. Sales 1, 3 and 4 have similar locations to commercial services as the subject. No adjustments are necessary. Sales 2 and 5 are located in more rural areas with less access to commercial services and adjusted upward. Jnati Investments Property Oirr Packet Pg. 102 Land Valuation 51 2.6.b Access/Exposure Convenience to transportation facilities, ease of site access, and overall visibility of a property can have a direct impact on property value. High visibility, however, may not translate into higher value if it is not accompanied by good access. In general, high visibility and convenient access, including proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes. The subject has steep access directly from Lake Ballinger Way. Entering and exiting the site is difficult especially during peak traffic hours. None of the sales had similar access difficulties and are adjusted downward. Size Due to economies of scale, the market exhibits an inverse relationship between land area and price per square foot, such that larger sites generally sell for a lower price per square foot than smaller lots, all else being equal. To account for this relationship, applicable adjustments are applied for differences in land area. The comparables that are larger than the subject are adjusted upward, and vice versa. Sale 4 is similar to the subject and requires no adjustment. Sales 1, 2 and 5 are smaller than the subject, and downward adjustments are applied. Sale 3 is larger than the subject and requires an upward adjustment. Shape and Topography This category accounts for the shape of the site influencing its overall utility and/or development potential, as well as the grade of the land. The subject has steep topography for much of the southern portion of the site which limits development options to the site. All of the sales are relatively level or with gentle sloping topography both of which are superior attributes. Downward adjustments are applied. Zoning This element of comparison accounts for government regulations that can affect the types and intensities of uses allowable on a site. Moreover, this category includes considerations such as allowable density or floor area ratio, structure height, setbacks, parking requirements, landscaping, and other development standards. The subject has a zoning designation of RSW-12 - Waterfront Single -Family. All of the comparables are similar to the subject. No adjustments are necessary. Utilities Sites with public utilities available are considered more desirable relative to properties requiring utility extensions, or those that need a private well and/or septic system. Properties without public utilities available typically require higher development costs, all else being equal. All of the comparables are similar to the subject. No adjustments are necessary. Jnati Investments Property Oirr Packet Pg. 103 Land Valuation 2.6.b 52 Lake Frontage Sites with lake frontage are considered more desirable than sites without lake frontage. Sales 1, 3, 4 and 5 are similar to the subject and require no adjustment. Sale 2 has access to and views of Lake Morton, but no frontage. An upward adjustment is applied. Land Sales Adjustment Grid Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Name Jnati Investments Big Lake Lot Lake Morton 137th Street Lot Lake Shoecraft Lot Lake Morton Property Residential Lot Residential Lot Address 7317 Lake 19040 Sulfer W. Lake Morton 353 N. 137th St. 15014 W. Lake 31002 W. Lake Ballinger Way Springs Rd. Dr. SE. Goodwin Rd. Morton Dr. SE. City Edmonds Mount Vernon Kent Seattle Stanwood Kent County Snohomish Skagit King King Snohomish King State Washington WA WA WA WA WA Sale Date Jun-23 Nov-21 Oct-21 Aug-21 Aug-21 Sale Status Closed Closed Closed Closed Closed Sale Price $460,000 $200,000 $699,000 $590,000 $340,000 Price Adjustment - - - - -$15,000 Description of Adjustment Improvement Contribution Effective Sale Price $460,000 $200,000 $699,000 $590,000 $325,000 Square Feet 23,958 16,117 16,335 27,075 21,344 15,812 Acres 0.55 0.37 0.38 0.62 0.49 0.36 Zoning Code RSW-12 RVR RAS NR2 IRS RA5 Price per Square Foot $28.54 $12.24 $25.82 $27.64 $20.55 Transactional Adjustments Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple %Adjustment - - - - - Financing Terms Cash to seller All cash All cash All cash All cash %Adjustment - - - - - Conditions of Sale %Adjustment - - - - - Expenditures Made Immediately After Purchase $ Adjustment - - - - - Market Conditions 8/3/2023 Jun-23 Nov-21 Oct-21 Aug-21 Aug-21 Annual %Adjustment 3% - 5% 5% 6% 6% Cumulative Adjusted Price $28.54 $12.86 $27.11 $29.30 $21.79 Property Adjustments Location - 10% - - 10% Access/Exposure -15% -15% -15% -15% -15% Size -5% -5% 5% - -5% Shape and Topography -10% -10% -10% -10% -10% Zoning - - - - - Utilities - - - - - Lake Frontage - 20% - - Net Property Adjustments ($) $8.56 $0.00 $5.42 $7.33 1-20% -$4.36 Net Property Adjustments % -30% 0% -20% -25% Final Adjusted Price $19.98 $12.86 $21.69 J$21.98 J$17.43 Range of Adjusted Prices J$12.86 - $21.98 Indicated Value J$20.00 Land Value Conclusion Prior to adjustments, the sales reflect a range of $12.24 - $28.54 per square foot. After adjustment, the range is narrowed to $12.86 - $21.98 per square foot. To arrive at an indication of value, primary weight is given to Sales 1, 3, and 4 for location and Sale 4 for size. Jnati Investments Property Oirr Packet Pg. 104 2.6.b Land Valuation 53 Based on the preceding analysis, the land value conclusion for the subject is presented as follows: Land Value Conclusion Indicated Value per Square Foot $20.00 Subject Square Feet 23,958 Indicated Value $479,160 Rounded $480,000 Jnati Investments Property ®rr Packet Pg. 105 Reconciliation and Conclusion of Value 54 2.6.b Reconciliation and Conclusion of Value Reconciliation involves the weighting of alternative value indications, based on the judged reliability and applicability of each approach to value, to arrive at a final value conclusion. Reconciliation is required because different value indications result from the use of multiple approaches and within the application of a single approach. As previously discussed, we only utilize the Sales Comparison Approach in our valuation. Final Opinion of Value Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinion of value is as follows: Value Conclusion Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Fee Simple August 3, 2023 $480,000 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. 1. None The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. 1. None The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. Exposure Time Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the appraisal. Based on review of recent sales transactions for similar properties and analysis of supply and demand in the local single-family residential market, the probable exposure time for the subject at the concluded market value stated previously is 3-6 months. Jnati Investments Property ®rr Packet Pg. 106 Certification 2.6.b 55 Certification We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. Jason Neary has made a personal inspection of the property that is the subject of this report. Lori E. Safer, MAI, AI-GRS has personally inspected the subject. 12. No one provided significant real property appraisal assistance to the persons signing this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. Jnati Investments Property ®rr Packet Pg. 107 Certification 2.6.b 56 14. As of the date of this report, Lori E. Safer, MAI, AI-GRS has completed the continuing education program for Designated Members of the Appraisal Institute. Jason Neary Lori E. Safer, MAI, AI-GRS Washington Certified General Real Estate Washington Certified General Real Estate Appraiser #22006051 Appraiser #1100546 Jnati Investments Property Oirr Packet Pg. 108 Assumptions and Limiting Conditions 2.6.b 57 Assumptions and Limiting Conditions This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report: 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report: 1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal Jnati Investments Property Oirr Packet Pg. 109 Assumptions and Limiting Conditions 2.6.b 58 covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third -party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic Jnati Investments Property Oirr Packet Pg. 110 Assumptions and Limiting Conditions 2.6.b 59 conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR - Seattle, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the "Integra Parties"), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. IRR - Seattle is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR - Seattle. In addition, it is expressly agreed that in any action Jnati Investments Property Oirr Packet Pg. 111111 Assumptions and Limiting Conditions 2.6.b 60 which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. IRR - Seattle is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer -seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 28. The appraisal is also subject to the following: Jnati Investments Property Oirr Packet Pg. 112 Assumptions and Limiting Conditions 61 2.6.b Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. 1. None The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. 1. None The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. Jnati Investments Property Oirr Packet Pg. 113 Addenda 2.6.b Addendum A Appraiser Qualifications Jnati Investments Property Lir Packet Pg. 114 2.6.b Lori E. Safer, " AI, AI'VRS Integra Realty Resources - Seattle Experience 600 University Street Suite 310 Managing Director of Integra Realty Resources Seattle in Washington State. Background Seattle, WA 98101 includes 25 years of consultation and valuation analysis for clients including financial institutions, developers, local municipalities and various public agencies. President of Lori Safer T 206.903.6700 Appraisal, Inc. from 1987-2002. Employed by Bruce C. Allen & Associates from 1983-1987; City F 206.623.5731 of Bellevue Planning Department 1982. Integra Realty Resources Seattle is part of Integra Realty Resources (IRR), a national valuation and consulting firm with 50+ offices in the U.S. irr.com Ms. Safer is experienced in the analysis of various property types including: land, residential subdivision appraisal studies, right of way and condemnation appraisal studies, mortgage loan appraisal studies, and highest and best use studies. Clients served include various financial concerns, law and public accounting firms, private and public agencies, pension and advisory companies, investment firms, and the general public. Further, utilizing the resources of Integra's 50+ offices nationwide, the firm is actively involved in the completion of large portfolio engagements. Professional Activities & Affiliations Member: Appraisal Institute (MAI and AI-GRS) President: Seattle Chapter of the Appraisal Institute, January 2019 - December 2019 Vice President: Seattle Chapter of the Appraisal Institute, January 2018 - December 2018 Treasurer: Seattle Chapter of the Appraisal Institute, January 2017 - December 2017 Secretary: Seattle Chapter - Appraisal Institute, January 2016 - December 2016 Board of Director: Seattle Chapter - Appraisal Institute, January 2012 - December 2014 Member: International Right of Way Association Member: Regional Professional Standards Panel - Appraisal Institute Chair: Nominating Comm. Appraisal Institute Region 1, January 2005 - December 2006 Director/Vice-Chair: Appraisal Institute - Region 1, January 1996 - December 2003 Chairman: Appraisal Institute - Region 1, January 2004 - December 2004 Vice Chair: Regional Education Liaison Appraisal Institute, January 1999 - December 1999 Member: Estate Planning Board - Univ. of Washington, January 1996 - December 1999 Member: Education Committee of the Appraisal Institute, January 1996 - December 1998 Education Coordinator: Appraisal Institute Region 1, January 1996 - December 1998 Representative to the Appraisal Institute Region 1, January 1996 - December 1997 Member: Curriculum Division of the Appraisal Institute, January 1993 - December 1996 Chairman: Narrative Exam Grading - Appraisal Institute, January 1993 - December 1995 Member: Narrative Exam Grading Subcommittee of Appraisal Institute, January 1993 - December 1995 Licenses Washington, Certified General Real Estate Appraiser, 1100546, Expires July 2025 Oregon, State Certified General Appraiser, C001601, Expires July 2025 Education Master of Arts, Urban Geography, University of Washington, 1982 Bachelor of Science, Geography, Pennsylvania State University, magna cum laude, 1979 ir1 lesafer@irr.com - 206.436.1177 Packet Pg. 115 2.6.b Lori E. Safer, " AI, AI'VRS Integra Realty Resources - Seattle Articles and Publications 600 University Street Suite 310 Case Study 1.6: Special Benefits - Johnson and Matonis, Applications in Litigation Valuation, 2012 Seattle, WA 98101 Real Property Value in Condemnation, 2018 (Content Reviewer) T 206.903.6700 Qualified Before Courts & Administrative Bodies F206.623.5731 King County Superior Court, Washington irr.com Miscellaneous Approved Appraiser - Washington State Department of Transportation Approved Review Appraiser - Washington State Department of Transportation IRR Certified Reviewer irr1 lesafer@irr.com - 206.436.1177 Packet Pg. 116 2.6.b Jason Neary Integra Realty Resources - Seattle Experience 600 University Street 2023 to present: Integra Realty Resources — Seattle I Senior Analyst Suite 310 Seattle, WA 98101 2022 to 2023: Aloft Appraisal — Seattle I Senior Appraiser 2017 to 2022: Integra Realty Resources — Boise I Senior Analyst T 206.903.6700 2016 to 2017: Butler Burgher Group LLC— Denver I Trainee Appraiser F 206.623.5731 2013 to 2016: Denver County Assessor's Office— Denver I Commercial Mass Appraiser Experience in the valuation of: irr.com • Apartments: Mid and High Rise • Vacant Land: Commercial & Residential • Right -Of -Way • Land Market Absorption Analysis • Industrial & Manufacturing Facilities • Commercial Offices • Retail Shopping Centers • Agricultural Land • Office Conversions • Residential Condominium Analysis • Special Use Properties • Single -Family Residential Clients served include: • Governmental entities • Banks and financial institutions • Developers and investors • Law firms • Mortgage bankers • Property owners Licenses Washington, Certified General Real Estate Appraiser, 22006051, Expires September 2023 Education Metro State College of Denver; Bachelor's Degree in Business & Management Successfully completed numerous real estate and valuation courses and seminars sponsored by the Colorado Division of Property Taxation, The Appraisal Institute, North Colorado Real Estate Appraisal Association, and McKissock Inc. ir1 jneary@irr.com - 206-436-1176 Packet Pg. 117 2.6.b About IRR Integra Realty Resources, Inc. (IRR) provides world -class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean. IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions. Many of the nation's top financial institutions, developers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market. Local Expertise... Nationally! irr.com irr® Packet Pg. 118 Addenda 2.6.b Addendum 6 IRR Quality Assurance Survey Jnati Investments Property Lir Packet P9. 119 Addenda 2.6.b IRR Quality Assurance Survey We welcome your feedback! At IRR, providing a quality work product and delivering on time is what we strive to accomplish. Our local offices are determined to meet your expectations. Please reach out to your local office contact so they can resolve any issues. Integra Quality Control Team Integra does have a Quality Control Team that responds to escalated concerns related to a specific assignment as well as general concerns that are unrelated to any specific assignment. We also enjoy hearing from you when we exceed expectations! You can communicate with this team by clicking on the link below. If you would like a follow up call, please provide your contact information and a member of this Quality Control Team will call contact you. Link to the IRR Quality Assurance Survey:guality.irr.com Jnati Investments Property ®rr Packet Pg. 120 Addenda 2.6.b Addendum C Definitions Jnati Investments Property Oirr Packet Pg. 121 Addenda 2.6.b Definitions The source of the following definitions is the Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), unless otherwise noted. Amenity A tangible or intangible benefit of real estate that enhances its attractiveness or increases the satisfaction of the user. Natural amenities may include a pleasant location near water or a scenic view of the surrounding area; man-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. Class of Apartment Property For the purposes of comparison, apartment properties are grouped into three classes: Class A, B and C. These classes represent a subjective quality rating of buildings, which indicates the competitive ability of each building to attract similar types of tenants. Combinations of factors such as rent, building finishes, system standards and efficiency, building amenities, location/accessibility, and market perception are used as relative measures. Class A apartment properties are the most prestigious properties competing for the premier apartment tenants, with rents above average for the area. Buildings have high -quality standard finishes, architectural appeal, state-of-the-art systems, exceptional accessibility, and a definite market presence. Class B apartment properties compete for a wide range of users, with rents in the average range for the area. Class B buildings do not compete with Class A buildings at the same price. Building finishes are fair to good for the area, and systems are adequate. Class C apartment properties compete for tenants requiring functional space at rents below the average for the area. Class C buildings are generally older, and are lower in quality and condition (Source: Integra Realty Resources) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income - producing ability of the property, such as a broken window, a dead tree, a leak in the roof, or a faulty roof that must be completely replaced. These items are almost always curable. Jnati Investments Property Oirr Packet Pg. 122 Addenda 2.6.b Depreciation A loss in the value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the value of the improvement on the same date. Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. Disposition Value The most probable price that a specified interest in property should bring under the following conditions: Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. An adequate marketing effort will be made during the exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 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. This definition can also be modified to provide for valuation with specified financing terms. Effective Date The date on which the appraisal opinion applies. (SVP) The date to which an appraiser's analysis, opinions, and conclusions apply; also referred to as date of value. (USPAP, 2020-2021 ed.) 3. The date that a lease goes into effect. Entrepreneurial Incentive The amount an entrepreneur expects or wants to receive as compensation for providing coordination and expertise and assuming the risks associated with the development of a project. Entrepreneurial incentive is the expectation of future reward as opposed to the profit actually earned on the project. Jnati Investments Property Oirr Packet Pg. 123 Addenda 2.6.b Entrepreneurial Profit 1. A market -derived figure that represents the amount an entrepreneur receives for his or her contribution to a past project to compensate for his or her time, effort, knowledge, and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motived by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovation change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. In economics, the actual return on successful management practices, often identified with coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward. Excess Land; Surplus Land Excess Land: Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. Surplus Land: Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. Exposure Time 1. The time a property remains on the market. An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Floor Area Ratio (FAR) The relationship between the above -ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above -grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. Jnati Investments Property Oirr Packet Pg. 124 Addenda 2.6.b Highest and Best Use 1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (ISV) 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) Investment Value The value of a property to a particular investor or class of investors based on the investor's specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. The value of an asset to the owner or a prospective owner given individual investment or operational objectives (may also be known as worth). (IVS) Lease A contract in which rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rent. Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. Leasehold Estate The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions: Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. A normal marketing effort is not possible due to the brief exposure time. Jnati Investments Property Oirr Packet Pg. 125 Addenda 2.6.b S. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 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. This definition can also be modified to provide for valuation with specified financing terms. Marketing Time An opinion of the amount of time to sell a property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which precedes the effective date of an appraisal. Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the execution of a lease as of a specified date under conditions whereby: • Lessee and lessor are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and • The rent reflects specified terms and conditions typically found in that market, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, frequency of payments (annual, monthly, etc.), and tenant improvements (Tls). Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and 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: • buyer and seller are typically motivated; • both parties are well informed or well advised, and acting in what they consider their own best interests; • a reasonable time is allowed for exposure in the open market; • payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and Jnati Investments Property Oirr Packet Pg. 126 Addenda 2.6.b • 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. (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h], also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Multifamily Property Type Residential structure containing five or more dwelling units with common areas and facilities. (Source: Appraisal Institute Commercial Data Standards and Glossary of Terms, Chicago, Illinois, 2004 [Appraisal Institute]) Multifamily Classifications Garden/Low Rise Apartments: A multifamily development of two- or three-story, walk-up structures built in a garden -like setting; customarily a suburban or rural -urban fringe development. (Source: Appraisal Institute) Mid/High-Rise Apartment Building: A multifamily building with four or more stories, typically elevator -served. (Source: Appraisal Institute) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Rentable Floor Area (RFA) Rentable area shall be computed by measuring inside finish of permanent outer building walls or from the glass line where at least 50% of the outer building wall is glass. Rentable area shall also include all area within outside walls less stairs, elevator shafts, flues, pipe shafts, vertical ducts, air conditioning rooms, fan rooms, janitor closets, electrical closets, balconies and such other rooms not actually available to the tenant for his furnishings and personnel and their enclosing walls. No deductions shall be made for columns and projections unnecessary to the building. (Source: Income/Expense Analysis, 2016 Edition — Conventional Apartments, Institute of Real Estate Management, Chicago, Illinois) Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design and layout. Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, a duplicate or replica of the building being appraised, using the same or similar materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. Jnati Investments Property ®rr Packet Pg. 127 Addenda 2.6.b Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., "retrospective market value opinion." Room Count A unit of comparison used primarily in residential appraisal. No national standard exists on what constitutes a room. The generally accepted method is to consider as separate rooms only those rooms that are effectively divided and to exclude bathrooms. Stabilized Income An estimate of income, either current or forecasted, that presumes the property is at stabilized occupancy. The forecast of the subject property's yearly average income (or average -equivalent income) expected for the economic life of the subject property. Projected income that is subject to change but has been adjusted to reflect an equivalent, stable annual income. Stabilized Occupancy 1. The occupancy of a property that would be expected at a particular point in time, considering its relative competitive strength and supply and demand conditions at the time, and presuming it is priced at market rent and has had reasonable market exposure. A property is at stabilized occupancy when it is capturing its appropriate share of market demand. An expression of the average or typical occupancy that would be expected for a property over a specified projection period or over its economic life. Jnati Investments Property ®rr Packet Pg. 128 Addenda 2.6.b Addendum D Comparable Data Jnati Investments Property Lir Packet Pg. 129 Land Sale Profile 2.6.b Sale No. " Location & Property Identification Property Name: Big Lake Lot Sub -Property Type: Residential Address: 19040 Sulfer Springs Rd. City/State/Zip: Mount Vernon, WA 98273 County: Skagit Market Orientation: Suburban IRR Event ID: 3039137 Sale Information Sale Price: $460,000 Effective Sale Price: $460,000 Sale Date: 06/09/2023 Sale Status: Closed $/Acre(Gross): $1,243,243 $/Land SF(Gross): $28.54 $/Unit (Potential): $460,000 /Unit Grantor/Seller: Ronald Chick Grantee/Buyer: Neil Schaffner Property Rights: Fee Simple Exposure Time: 1 (months) Financing: Cash to seller Document Type: Warranty Deed Recording No.: 202306290181 Verified By: Jason Neary Verification Date: 08/18/2023 Confirmation Source: MLS #2067025/Public Record Verification Type: Confirmed -Other Improvement and Site Data MSA: Mount Vernon-Anacortes, WA Zoning Code: RVR Zoning Desc.: Rural Village Residential Legal/Tax/Parcel ID: P69875 & P99359 Flood Plain: Yes Acres(Gross): 0.37 Flood Zone Designation: A Land-SF(Gross): 16,117 Utilities: Water Public, Sewer No. of Units (Potential): 1 Source of Land Info.: Public Records Big Lake Lot irr. Packet Pg. 130 Land Sale Profile 2.6.b Sale No. " Comments Residential lot with approximately 62 feet of frontage along Big Lake just outside of Mt. Vernon. Public utilities are available to the site. Sale includes two parcels, one with lake frontage, the other just across from Sulfer Springs Road. Both parcels must remain together to meet the minimal development requirements for lot size. Site is cleared and has a gentle downward slope toward the lake. Sale includes a dock in average condition. Big Lake Lot ®rr Packet Pg. 131 Land Sale Profile 2.6.b Sale No. " Big Lake Lot irr. Packet Pg. 132 Land Sale Profile 2.6.b Sale No. Location & Property Identification Property Name: Lake Morton Residential Lot Sub -Property Type: Residential, Single Family Lot Address: W. Lake Morton Dr. SE. City/State/Zip: Kent, WA 98042 County: King Submarket: SE King County Market Orientation: Suburban IRR Event ID: 3039824 Sale Information Sale Price: $200,000 Effective Sale Price: $200,000 Sale Date: 11/11/2021 Sale Status: Closed $/Acre(Gross): $533,333 $/Land SF(Gross): $12.24 Grantor/Seller: Patrick Powers Grantee/Buyer: Kulwant Singh & Kaur Charanjit Property Rights: Fee Simple Exposure Time: 1 (months) Financing: All cash Document Type: Warranty Deed Recording No.: 20211110001461 Verified By: Jason Neary Verification Date: 08/21/2023 Confirmation Source: MLS #1855234/Public Record Verification Type: Confirmed -Other Improvement and Site Data MSA: Seattle -Tacoma -Bellevue, WA Legal/Tax/Parcel ID: 4053201071 Acres(G ross): 0.38 Land-SF(Gross): 16,335 Zoning Code: RA5 Lake Morton Residential Lot 0 &0 k *��w �1;11 " -W , ,n,7,), - 11 ltii ill 1 IIW �IHA I'•} , , 4 T i1M1• ' IOHO) r+oA•., s , • 7�_ _ T�IOH Zoning Desc.: Residential Flood Plain: No Flood Zone Designation: X Utilities: Water Public Source of Land Info.: Public Records d irr Packet Pg. 133 Land Sale Profile 2.6.b Sale No. Comments Residential lot with views of and access to Lake Morton, but the lot does not have frontage along the lake. Public water is available to the site. Public sewer is not available and septic design was not complete prior to the sale. Area allows both manufactured and stick built homes. Lake Morton Residential Lot Oirr Packet Pg. 134 Land Sale Profile 2.6.b Sale No. 01 =;��., err: Lake Morton Residential Lot irr. Packet Pg. 135 Land Sale Profile 2.6.b Sale No. 2 Location & Property Identification Property Name: 137th Street Lot Sub -Property Type: Residential Address: 353 N. 137th St. City/State/Zip: Seattle, WA 98133 County: King Submarket: Northgate/North Seattle Market Orientation: Suburban IRR Event ID: 3038843 Sale Information Sale Price: $699,000 Effective Sale Price: $699,000 Sale Date: 10/15/2021 Sale Status: Closed $/Acre(Gross): $1,124,517 $/Land SF(Gross): $25.82 $/Unit (Potential): $349,500 /Unit Grantor/Seller: Kristy & Cory Cozzetti Grantee/Buyer: Steven Jacques & Yaeko Ttee Property Rights: Fee Simple Exposure Time: 4 (months) Financing: All cash Document Type: Warranty Deed Recording No.: 20211015001114 Verified By: Jason Neary Verification Date: 08/17/2023 Confirmation Source: NWMLS 1833591/Public Record Verification Type: Confirmed -Other Improvement and Site Data MSA: Seattle -Tacoma -Bellevue, WA Legal/Tax/ParcelID: 1926049154 Acres(G ross): 0.62 Land-SF(Gross): 27,075 No. of Units (Potential): 2 137th Street Lot Zoning Code: NR2 Zoning Desc.: Neighborhood Residential 2 Flood Plain: No Utilities: Water Public, Sewer Source of Land Info.: Public Records 0 rrr Packet Pg. 136 Land Sale Profile 2.6.b Sale No. 2 Comments Lake front lot on Bitter Lake that sold with approved architectural plans for a 2-story, 5 bedroom/3 bathroom 3,395 SF home & 3-car garage. Additional plans were approved for a 2-story DADU. Sale also included approved site drainage report, waste & water plan, soil test, and temporary power pole. All utilities are in the street nearby. The property has 50 feet of lake frontage. The property is close to multiple retailers along Aurora Ave N including an L.A. Fitness, Lowes, Hobby Lobby, and Home Goods. 137th Street Lot Oirr Packet Pg. 137 Land Sale Profile 2.6.b Sale No. 2 137th Street Lot irr. Packet Pg. 138 Land Sale Profile 2.6.b Sale No. Location & Property Identification Property Name: Lake Shoecraft Lot Sub -Property Type: Residential Address: 15014 W. Lake Goodwin Rd. City/State/Zip: Stanwood, WA 98292 County: Snohomish Submarket: North Snohomish County Market Orientation: Suburban IRR Event ID: 3039111 Sale Information Sale Price: $590,000 Effective Sale Price: $590,000 Sale Date: 08/24/2021 Sale Status: Closed $/Acre(Gross): $1,204,082 $/Land SF(Gross): $27.64 Grantor/Seller: Gordon Wheeler Oakes Estate Grantee/Buyer: Folks, LLC Property Rights: Fee Simple Exposure Time: 1 (months) Financing: All cash Document Type: Warranty Deed Recording No.: 202108247019 Verified By: Jason Neary Verification Date: 08/18/2023 Confirmation Source: MLS #1814683/Public Records Verification Type: Confirmed -Other Improvement and Site Data MSA: Seattle -Tacoma -Bellevue, WA Legal/Tax/ParcelID: 00480700000104 Acres(G ross): 0.49 Land-SF(Gross): 21,344 Zoning Code: R5 Zoning Desc.: Residential Flood Plain: No Source of Land Info.: Public Records Lake Shoecraft Lot irr. Packet Pg. 139 Land Sale Profile 2.6.b Sale No. Comments Residential lot with approximately 65 feet of water frontage. Sale includes a private dock in good condition. The property has septic installed and water is available at the street. The property has frontage along Lake Shoecraft which is the smaller of the two lakes in the region and includes Lakes Shoecraft and Goodwin. Commercial uses are approximately 5.0 miles east of the property and include Lowes, Costco, Target, Hobby Lobby, Marshall's, and Best Buy. Lake Shoecraft Lot ®rr Packet Pg. 140 Land Sale Profile 2.6.b Sale No. Lake Shoecraft Lot irr. Packet Pg. 141 Land Sale Profile 2.6.b Sale No. r- Location & Property Identification Property Name: Lake Morton Residential Lot Sub -Property Type: Residential, Single Family Lot Address: 31002 W. Lake Morton Dr. SE. City/State/Zip: Kent, WA 98042 County: King Submarket: SE King County Market Orientation: Suburban IRR Event ID: 3039826 Sale Information Sale Price: $340,000 Effective Sale Price: $325,000 Sale Date: 08/03/2021 Sale Status: Closed $/Acre(Gross): $895,317 $/Land SF(Gross): $20.55 $/Unit (Potential): $325,000 /Unit Grantor/Seller: Richard & Carol Craig Grantee/Buyer: Billie & Stephen Otter Property Rights: Fee Simple Exposure Time: 1 (months) Financing: All cash Document Type: Warranty Deed Recording No.: 20210802001917 Verified By: Jason Neary Verification Date: 08/21/2023 Confirmation Source: MLS# 1803167/Public Record Verification Type: Confirmed -Other Improvement and Site Data MSA: Seattle -Tacoma -Bellevue, WA No. of Units (Potential): 1 Zoning Code: RA5 Legal/Tax/Parcel ID: 4053200655 Zoning Desc.: Residential Acres(Gross): 0.36 Flood Plain: No Land-SF(Gross): 15,812 Flood Zone Designation: X Lake Morton Residential Lot irr Packet Pg. 142 Land Sale Profile 2.6.b Sale No. r- Improvement and Site Data (Cont'd) Utilities: Water Public Source of Land Info.: Public Records Comments Residential lot with approximately 50 feet of frontage along Lake Morton. The sale included a 140 square foot structure with a small loft and kitchenette with a value contribution of approximately $15,000 per the King County assessor's office giving an effective sale price of $325,000 for the land. Site includes a finished dock in average condition. Water is available in the street, private septic will need to be designed post sale. Lake Morton Residential Lot ®rr Packet Pg. 143 Land Sale Profile 2.6.b Sale No. r- Lake Morton Residential Lot irr. Packet Pg. 144 Addenda 2.6.b Addendum E Preliminary Title Report Jnati Investments Property Lir Packet Pg. 145 Addenda 2.6.b ALTA COMMITMENT FOR TITLE INSURANCE Commitment Number: issued by agent: CHICAGO TITLE 500143617 COMPANYM WAS11MGTn\ NOTICE IMPORTANT - READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT. THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE. REPORT OF THE CONDITION OF TITLE, LEGAL OPINION. OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY, WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY, AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON, INCLUDING A PROPOSED INSURED. THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON. COMMITMENT TO ISSUE POLICY Subject to the Notice: Schedule B. Part I -Requirements: Schedule B. Part II -Exceptions: and the Commitment Conditions, Chicago Title Insurance Company, a Florida corporation (the "Company'), commits to issue the Policy according to the terms and provisions of this Commitment- This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A. only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Amount of Insurance and the name of the Proposed Insured. If all of the Schedule B. Part I -Requirements have not been met within one hundred eighty (180) days after the Commitment Date. this Commitment terminates and the Company's liability and obligation end. Countersigned By: Knsty Jeglum Authonzed Officer or Agent Chicago Title Insurance Company By Attest. Michael J Nolan, President Marjorie Nemzura, Secretary This page is only a part of a 2021 ALTA& Commitment for Tate Insurance issued by Chicago Tito Insurance Company, This Commitment is nor valid Wiwi the Notice, the Commitment to issue Policy: the Commitment Conditions: Schadae A. Schedul9 B, Part I-Requrernsvtts: Schedule B Part ll-Exceptions, and a countcv-s,gna.2re by the Company ot its issm g agent that may be in efectntnic form Copyright American Land Tnle Association- All rights reserved. The use of the Form (or any derivative thereof} is restricted to ALTA irensees and ALTA members in good standing as of the date of use. All after uses are prohibited Reprinted under ficense from the Amiercari Land Title Associaion. JE ALTA Commitmery fa T4ie Ynuame -WA A Mod (07141i2021 y Pwied 06.06 23 ® 05 21 PM Fnye +'NA-CT-FfIRV-02150.324669-SPS1.23.500143617 Jnati Investments Property ®rr Packet Pg. 146 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 Transaction Identification Data, for which the Company assumes no liability as set forth in Commitment Condition 5.e.: ISSUING OFFICE. FOR SETTLEMENT INQUIRIES CONTACT Title Officer- Residential Unit Chicago Title Company of Washington 3002 Colby Ave., Susie 200 Everett. WA 98201 Phone. (425)259-8214 Fax (866)827-8844 Main Phone. (425)258-3683 Email: snotitle@ctt.com Order Number: 500143617 SCHEDULEA 1. Commitment Date: May 31, 2023 at 08:00 AM 2. Policy to be issued: (a) ALTA Homeowner's Policy of Title Insurance 2021 w-WA Mod Proposed Insured: City of Edmonds Proposed Amount of Insurance: $10.500.00 The estate or Interest to be insured: FEE SIMPLE Premium: $ 210.00 Tax: $ 20.79 Rate: Homeowners Discount(s): Residential Total: $ 230.79 3. The estate or Interest In the Land at the Commitment Date is: FEE SIMPLE 4. The Title Is, at the Commitment Date, vested In: JNATI Investment LLC. a Washington Limited !-lability Company 5. The Land Is described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF END OF SCHEDULE A Ttbs page is only a part of a 2021 ALTAe Commitment for Titre lnsuranca Issaed by Ch cag0 Tole Insurance Company, This Commilment is not vaA'd wgt100I the Notice, the Commltm fil 10 Issue Policy, the Commitment Cond,bons- Scr>ed ile, A. Schedule B. Pat I -Reg aim nts: Seh*dtnle B. Part II-Excephbns ,mod a rounter-signature by the Company or ds issung agent that may be n elect Onic fa m e Copyright American land Title Association. All rights reserved. The use of this Form (or any derivatrve thereof) is restrcted to ALTA licensees and ALTA members in good starling as of the - date d use Ai other uses are prohibited. Reprinted under license from the American Land Title Association. ALTA Cu nitmeril for T-.Ile ►ssvarce w-WA Mod (WeDV2021) Pm1ed 06.06.23 a 05.21 PU Page 2NA-CT-FNRV4)2150.6246&3-3PS1-23-500143617 Jnati Investments Property ®rr Packet Pg. 147 Addenda 2.6.b EXHIBIT "A" Legal Description For APN/Parcel IDlsl: 004888-007-027-00 LOT 27, BLOCK 7. LAKE BALLINGER LAND CO'S PLAT SUBDIVISION NO. 1. ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 9 OF PLATS. PAGES 57 AND 58, RECORDS OF SNOHOMISH COUNTY, WASHINGTON. EXCEPT PORTION DEEDED TO SNOHOMISH COUNTY FOR ROAD RECORDED UNDER RECORDING NO- 583296. TOGETHER WITH SHORELANDS OF SECOND CLASS ABUTTING AND ADJACENT TO SAID PREMISES. SITUATE IN THE COUNTY OF SNOHOMISH. STATE OF WASHINGTON.. SITUATE IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON This page is anly a pan of a 2021 ALTAL Commitment for Tafe Insurance issued by Chicago TAfe Insurance Company. This Commitment is not valid wdtdrwi Inn Norrce. the Canmfinenf to Issue Policy, the Commitment CordAwns. Schedule A. Schedule B. Pan t•RaWtemants. Scne&& B. Part ll-Exaeptrons. and a counter-signat:ne by the Company or As ustvV agent fhat may be rn efectionre farm. copyright American Land Title Association. Ali rights reserved. The use "the Form (or anyden airve there") is restrcted to ALTA Ncensees and ALTA members in good slaMrg as of the , date of use AM other uses are prohibited. Reprinted under license from the American Land Title Assouatnn ALTA Ctlrtlnlrnl A tun T-ne a»trance *,NA Mad i07f01 r2021 Prriled. 06 06 Z3 .¢ 06 21 PM Pave 3 'NA-CT-FNRV-02150.6246A3•SPS-1 �23.500143617 Jnati Investments Property Lir Packet Pg. 148 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B. PART I - Requirements All of the following Requirements must be met. 1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an Interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions. 2. Pay the agreed amount for the estate or interest to be insured. 3. Pay the premiums, fees. and charges for the Policy to the Company. 4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records. 5. Additional requirements andror exceptions may be added as details of the transaction are disclosed to, or become known by the Company. 6. If the Seller or Borrower intends to sign documents required to insure the transaction utilizing a remote online notary, please notify the Company immediately as additional underwriting requirements will need to be satisfied. 7 The Proposed Policy Amount(s) must be increased to the full value of the estate or interest tieing insured, and any additional premium must be paid at that time An Owners Policy should reflect the purchase price or futl value of the Land. A Loan Policy should reflect the loan amount or value of the properly as collateral Proposed Policy Amount(s) Wtll be revised and premiums charged consistent therewith when the final amounts are approved. This Page is only a pan of a 2021 AL TAr Commitment for Tilt hiswance issued by Chicago Tile insurance Company- Mrs Commitment is not valid vAhout flip Notice, the Commtment to Issue Policy; the Commitment Cond2ions. Schedule A, S Wine B. Part I -Requirements. Sah"fe B Part ll-Excephons. And a counter -signature by the Campan y arts ssurng agent V& may be in etectrmic farm. Copyright American Land Title Association. All rights reserved. The use d th is Form (or any denvatrve theredl is resirc led to ALTA tcensees and ALTA members in good staricing as of the _ date of use. AN other uses are prohioded Reprinted under license from the American Land Title Association ALTA C[smitnneni for T41e tmvince w-W'A Nlod i OT Di 2021 y P-irl. 06 06 T3 @ 05,21 PIA Pnpe 4 WA -CT FNr2V�ri2150 624683•SPS-1.23-500143617 Jnati Investments Property Oirr Packet Pg. 149 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B. PART I - Requirements continued) 8. Payment of the real estate excise tax, if required. The Land is situated within the boundaries of local taxing authority of the City of Edmonds The rate of real estate excise tax for properties which are not formally classified and specially valued as timberland or agricultural land is - Stale Portion_ 1.10°% on any portion of the sales price of 5525.000 or less, 1.28% on any portion of the sales price above $525.000, up to S1,525.000: 2-75% on any portion of the sales price above $1,525,000, up to 53.025.000. 3.00% on any portion of the sales price above $3,025.000, The rate of excise for properties formally classified as timberland or agricultural land will be 1.28% for the State portion on the entire sales price Localportion- 0.50% on the entire sales price. An additional 55.00 State Technology Fee must be included In all excise tax payments If the transaction is exempt, an additional 55.00 Affidavit Processing Fee is required. Any conveyance document must be accompanied by the official Washington State Excise Tax Affidavit, which can be found online at httpS:ildor.wa.gov;get-form-or-publication/forms-subject+real-estate-excise-lax. The applicable excise tax must be paid and the affidavit approved at the time of the recording of the conveyance documents- (NOTE: Real Estate Excise Tax Affidavits must be printed as legal size forms). 9. Any instrument to be executed by Gty of Edmonds must be in accordance with statute. Satisfactory evidence of authority must be submitted. The Company reserves the right to except additional items andror make additional requirements after reviewing said documents Thispage is only a part of a 2021 ALTAn Cwnitment for The tnsunwtce issued by Chxago Title kisurance Company. This Commitment is not valid without itw: Notice, the Commitment to Issue Policy: the Commitment Conditions- Schedule A, Schedule B. Part (-Requirements. Sdxdule B. Part ll-Exceptions, and i counf&-sny?afare by the Crrieany c its issw g agent M1 !na.v be n+ efe•.:lrnaic torm. ra copyright American Land Title Association- All rights reserved. The use of this Form (or any derivative theredj is fesucted to ALTA w-ense s and ALTA members in good staridrg as of the - date of use All other uses are prohibited Reprinted under license from the American Land Title Association. Jh- ALTA Car-1 nt fix T41e ii—ame -WA Kbd (07l0112021) Pin'.ed 06.06 23 e 05.21 PN Page 5 W A-cT-iNRV-W 50 624663.SPS-1.23-50014361 i Jnati Investments Property ®rr Packet Pg. 150 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B, PART I - Requirements (continued) 10. The Company will require the following documents for review prior to the issuance of any title insurance predicated upon a conveyance or encumbrance from the entity named below: Limited Liability Company: JNATI Investment LLC. a Washington Limited Liability Company a) A copy of its operating agreement, if any, and any and all amendments. supplements and/or modifications thereto, certified by the appropriate manager or member bl If a domestic Limited Liability Company, a copy of its Articles of Organization and all amendments thereto with the appropriate filing stamps cj It the Limited Liability Company is member -managed, a full and complete current list of members certified by the appropriate manager or member d) A current dated certificate of good standing from the proper govemmental authority of the state In which the entity was created e) If less than all members, or managers, as appropriate, will be executing the closing documents, furnish evidence of the authority of those signing. The Company reserves the right to add additional items or make further requirements after review of the requested documentation. 11_ TO PROVIDE THE EXTENDED COVERAGE POLICY AND/OR ALTA HOMEOWNER'S POLICY IDENTIFIED IN SCHEDULE A, GENERAL EXCEPTIONS A THROUGH D WILL BE CONSIDERED WHEN OUR INSPECTION ANDfOR REVIEW OF SURVEY, IF REQUIRED. IS COMPLETED. A SUPPLEMENTAL COMMITMENT WILL FOLLOW. If there have been recent improvements on the property within 90 days prior to closing we will require a signed indemnity agreement and a recent financial statement from each indemrutor. If construction financing Is to be insured. please contact the title officer for requirements. The Company reserves the right to add additional exceptions or make further requirements after review of the property inspection and requested documentation_ Additional requirements and/or exceptions may be added as details of the transaction are disclosed to, or become known by the Company. END OF REQUIREMENTS This page is only apart of a 2021 ALTAo Commitment for Title insurance issued by Chicago Tote Insurance Company. % Commitment is rid valid withour tf4 Novice, the Commtmeru to Issue Policy, the Commitmenf Cordosons. Sd*&Ife A, Schedule B, No I -Requirements: Scbedde B. Pad tl-Ercepttons. and a comter-signafue by rho Company of its issuing agent I.hat.may be in e(ectrarlic farm. r Copyright American Land Title Association. All rights reserved , Tne use or this Form for arty demauve thereof) is restricted to ALTA licensees and ALTA menAxws in good standing as of the _ date of use. AM other uses are prohibited. Reprinted under license from the America. Land Title Association , ALTA C mnanienl for Title Murance w-e, A Akid f07i01�2021) Jnati Investments Property PlNiled. 06 06.23 C 05 21 PM Psge 6 WA•CT-FNRV-0Q150 624663-SPS-143-500143617 ®rr Packet Pg. 151 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B, PART I - Requirements . _ _rl(IfI..BL1J NOTES The following matters will not be listed as Special Exceptions in Schedule B of the policy. There will be no coverage for loss arising by reason of the matters listed below because these matters are either excepted or excluded from coverage or are not matters covered under the insuring provisions of the policy. Note A: Notice: Please be aware that due to the conflict between federal and stale laws concerning the cultivation, distribution, manufacture or sale of marijuana. the Company is not able to close or insure any transaction involving Land that is associated with these activities. Note B: The application for title insurance was placed by reference to only a street address or tax identification number. The proposed Insured must confirm that the legal description in this report covers the parcel(s) of Land requested to be insured- If the legal description is incorrect. the proposed Insured must notify the Company and/or the settlement company in order to prevent errors and to be certain that the legal description for the intended parcel(s) of Land will appear on any documents to be recorded in connection with this transaction and on the policy of title insurance. Note C: Note: FOR INFORMATIONAL PURPOSES ONLY: The following may be used as an abbreviated legal description on the documents to be recorded. per Amended RCW 65.04.045- Said abbreviated legal description is not a substitute for a complete legal description within the body of the document: PTN LT 27, BLK 7, LAKE BALLINGER LAND CO'S PLAT SUBDIV NO 1 Tax Account No.: 004888-007-027-00 Note D: Note: The Public Records indicate that the address of the improvement located on said Land is as follows: 7317 Lake Ballinger Way Edmonds, WA 98026 Note E. Note: There are NO conveyances affecting said Land recorded within 36 months of the date of this report. Note F: Note: The Company finds no matters against the name(s) of City of Edmonds in the Public Records which would appear as exceptions in the policy. This page is only apart of a 2021 ALTA&• Commitment for Tine tnsurance issued by Chicago Tfle insurance Company This Commitment is not valid rMtioul the Nor". the Commitment to Issue Policy, the Commitment Condfions. Scnedide A. Schedule S. Part I-Repunremerrts. Sdiectule B. Part If -Exception. aril a cainter-slgnafure by the Company a as ss;ung agent that may be m efectrnntc form. Copynght American Land Title Association. All rights reserved. The use of the Form (or any derivative thered) is restricted to ALTA tcensees and ALTA mefters in good starving as of the date of use All other uses are prohibited. Reprinted undo license from the American Land Tihe Association ALTA Carmitrnatl to Tifie it swr mit .v WA hlcd i07�01!2021? Primed. 05.06.23 ® 05. 21 PM Pug, 7 WA�CT-FWV-02150.624663•SPS.1.23.50014361- Jnati Investments Property ®rr Packet Pg. 152 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B, PART I - Requirements (continued) Note G Recording charges (per document title) for closings on July 26. 2021 and after for all Washington counties_ Deed of Trust - S204.50 and S1 for each additional page. Most other Docs, except as noted below - $203.50 and $1 for each additional page. Assignment of Deed of Trust, Substitution or Appointment of Successor Trustee - S18.00 and $1 for each additional page. Multiple titled documents are charged per applicable title. Our Company uses Simplifile. a third party vendor. for electronic submission of documents to the County. In addition to the County recording fee each document recorded electronically will be balled an additional $4.25 plus tax. RECORDING CHARGES ARE SUBJECT TO CHANGE WITHOUT NOTICE. Note H This map; plat is being furnished as an aid In locating the herein described Land in relation to adjoining streets, natural boundaries and other land. Except to the extent of a policy of title insurance is expressly modified by endorsement. if any. the Company does not Insure dimensions. distances or acreage shown thereon END OF NOTES END OF SCHEDULE B, PART I This page is ordy a pal of a 2021 ALTO Commitment for Titie Ms wurice issued by Chicago Tire Insurance Company. This Commitment is not wdtid without the Notice. the Commitment to Issue Policy, the Commitment Conditions. Schedule A. Schedule B. Pal I -Requirements. Schedule B. Part II-Excelol ons: and a counter -signature by the Company at is issuing agent that may be in electronic farm. Copyright American Land Title Association. All rights reserved. The use of tns Roan (or any derrvative tiered) is restricted to ALTA licensees ano ALTA memtrers in good standM as of the . date of use AA other uses are prohibited Reprinted under license from the Amer can Lard Title Associaion, ALTA Curnmltment for T.11e ii uwami, w-W A Abd i 07701-2021� Pwied. 06 06 23 @ 05.21 PIA Pnye 6 WA-CT•FNRV-02150 624683-SPS1.23-500143617 Jnati Investments Property ®rr Packet Pg. 153 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B. PART II - Exceptions Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This Commitment and the Policy treat any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed. and not republished or recirculated. Only the remaining provisions of the document will be excepted from coverage. The Policy will not insure against loss or damage resulting from the terms and conditions of any lease or easement identified in Schedule A and will include the following Exceptions unless cleared to the satisfaction of the Company: GENERAL EXCEPTIONS: A. Rights or claims of parties to possession, or claiming possession, not shown in Public Records. B. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. C. Easements, prescriptive rights. rights -of -way. (lens or encumbrances, or claims thereof. not shown by the Public Records. D. Any hen, or right to a lien, for contributions to employee benefit funds, or for state workers' compensation. or for services, labor, or material heretofore or hereafter furnished, all as Imposed law. and not shown by the Public Records. E. Taxes or special assessments which are not yet payable or which are not shown as existing liens by the Public Records. F. Any lien for service, installation, connection, maintenance, tap, capacity, or construction or similar charges for sewer. water. electricity, natural gas or other utilities, or for garbage collection and disposal not shown by the Public Records. This pagers only apart ar a 2021 AI.TAn Commitment for Tate Insurmce issued by Chicago The lrtsurance Company. Pars Commitment is not void 1w1'#tW the Notice: the Commitment to issue Poicy, the commitment Crrldllons: Sd>s" A. Schedule B. Pad I-ReWtemants, Schedule B. Part it -Exceptions: and a oaunfer-sigmafrre by the Company of its usuulg agent that may be in efectmnic farm. ra Copyright American Land Title Association. All rights reserved. The use of th6 Form (or any denvatrve thereof) is restricted to ALTA licensees and ALTA members in good standing as of the .: date of use. Al other uses are prdtibded. Reprinted under license from the Amencal Land Tate Association. ALTA CommltmeM Ice Title k"wance *-WA Mod (07MIM21) Min led 05 0623 $1 Os 21 RV Pge 9 WAZTFMRV•02150 624683•SP&1.23.500143617 Jnati Investments Property ®rr Packet Pg. 154 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B, PART II - Exceptions (continued) G Unpatented mining claims, and all rights relating thereto H. Reservations and exceptions in United States Patents or In Acts authorizing the issuance thereof L Indian tribal codes or regulations. Indian treaty or aboriginal rights, including easements or equitable servitudes. J- Water rights. claims or title to water_ K. Any defect. lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records, or is created, attaches. or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I • Requirements are met. SPECIAL EXCEPTIONS: Exceptions and reservations contained in deed whereby the grantor excepts and reserves all oil, gases. coal. ores. minerals. fossils, etc-. and the right of entry for opening. developing and working the same and providing that such rights shall not be exercised until provision has been made for full payment of all damages sustained by reason of such entry Grantor: Slate of Washington Recordlna No. 326924 NOTE: This exception does not Include present ownership of the above mineral rights. 2. Right to regulate the level of the water in Lake Ballinger. also known as Lake McAleer, in accordance with the provision of a Decree of the Superior Court entered in Snohomish County Superior Court Case No. 39542 of said county. This page is only a part of a 2021 ALTAr Commitment for Tilt& Insurance isstmd by Obcago Title Insurance Company Ns Commitment is no valid without the Notice. the Commitment to tssav Pocky. the Commitment Conditions: ScMdA A. Scheduie B. Part t-Requirements Schedule B. Part R-ExOW.ores: awl a counter-sigratWo by the Cormpany of dS ;SSuug 390M tea, niay t n oiectronic form. Copyright American Land Title Association. Alt rights reserved. The use din* Form (or a1y denvabve thereofy is restricted to ALTA licensees and ALTA members in good standng a5 of the _' date of use All other uses are prohibited. Reprmbed under license from the Amercat Lard Title Assoaation. ALTA C—irnent to T.tle W seance A,'A Chid (07l01,20211 Ported. 06 06.23 @ 05. 21 PU Rege 10 WA-CTTNRV-02150 620663S11PS-1-23-500143617 Jnati Investments Property ®rr Packet Pg. 155 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B. PART II - Exceptions _r�lin.,zd 3. Covenants, conditions, restrictions, recitals. reservations, easements. easement provisions. encroachments. dedications, building setback lines, notes. statements, and other matters, if any, but omitting any covenants or restnctrons, if any, including but not limited to those based upon race. color. religion, sex, sexual orientation, familial status, mantal status, disability, handicap. national origin, ancestry, or source of income. as set forth in applicable state or federal laws, except to the extent that said covenant or restnction is permitted by applicable law, as set forth on the Plat thereof recorded in Volume 9 of Plats. pages 57 and 58: Recordina No 210221 4. Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color. religion, sex, sexual orientation, familial status, marital status. disability. handicap. national origin, ancestry. source of income, gender, gender identity, gender expression, medical condition or genetic information. as set forth in applicable state or federal laws. except to the extent that said covenant or restnction is permitted by applicable law. as set forth in the document Recording Date: February 20, 1932 Recording No - 513518 5. Notice of limitation and covenant adult family home Recording Date: October 8, 1996 Recording No.: 9610080159 6. Question of location of lateral boundaries of said second class tidelands or shorelands. 7. Any question that may arise due to shifting and changing in the course, boundaries or high water line of Lake Ballinger (Lake McAleer). 8. Rights of the State of Washington in and to that portion, if any, of the Land which lies below the line of ordinary high water of Lake Ballinger (Lake McAleer). 9. Any prohibition or limitation of use. occupancy or improvement of the Land resulting from the rights of the public or riparian owners to use any portion which is now or was formerly covered by water. 10_ Paramount rights and easements in favor of the United States for commerce, navigation, fisheries and the pfoduction of power. This Page is arty a part of a 2021 ALTA !� Commitment for Title fasurance issued by Ctwago Tire Insurance Company. Phis Commitment is not valid udhout the Notice: the Commitment to Issue Policy, the Commitment Condhons. Schedule A. Schedu4e 8, Part I -Requirements- Scheduler 8- Pad If -Exceptions: and a counter -signature by the Company or its asuiog agerd that may be m electronic fovm. Copyright American Land Title Association- All rights reserved. The use of this Fxm (•x any derrvalrve thereat) is resVcled to ALTA Ic� enseand ALTA members in good standrwg as of the date of use At other uses are prohibited. Reprinted undo license from the American Land Titie Association ALTA Cormnitmenl to Title irdwance w-WA plod (OMI 2021 } Pivnied: 06 08.23 -@ 05 21 PAL Page 11 WA•CT-FWV-M 50.624683-aP9-1-23-500143617 Jnati Investments Property ®rr Packet Pg. 156 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B, PART II - Exceptions ;continued) 11. Reservations and exceptions in United States Patents or in Acts authorizing the Issuance thereof; Indian treaty or aboriginal rights. 12. General and special taxes and charges. payable February 15. delinquent if first half unpaid on May 1, second half delinquent if unpaid on November 1 of the tax year (amounts do not include interest and penalties): Year: 2022 Tax Account No.: 004888-007-027-00 Levy Code: 00217 Assessed Value -Land: $618.400.00 Assessed Value -Improvements: $1,400.00 General and Special Taxes: Billed: $5.133.91 Paid- $2.566.96 Unpaid: $2, 566-95 13. General and special taxes and charges. payable February 15. delinquent if first half unpaid on May 1, second half delinquent if unpaid on November 1 of the tax year (amounts do not include interest and penalties): Year 2023 Tax Account No.: 004888-007-027-00 Levy Code: 00217 Assessed Value -Land: $662.200.00 Assessed Value -Improvements: $1,400-00 General and Special Taxes: Billed: $4.640.12 Paid: $0.00 Unpaid: $4,640-12 14_ City, county or local improvement district assessments, if any- 15- The search did not disclose any open mortgages or deeds of trust of record, therefore the Company reserves the right to require further evidence to confirm that the property is unencumbered, and further reserves the right to make additional requirements or add additional items or exceptions upon receipt of the requested evidence. This page is only a part of a 2021 ALTAr Commitment for Title lnsuwce issued by Chicago Ttle insurance Company_ This Commitment is no valid iAtw the Notice, the Commitment to issue Policy. the Commitment Carxltions. Sd7edtnie A, Schedule B. Part I-Rownimiw& Schi Buie & Part )I -Exceptions. a0d a counter -signature by the Company or cis usuiN agent that may be in electronic form. Copyright American Land Title Association. All rights reserved. ; The use of the Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good Stan Inog as of the date of use. All other uses are prohibited, Reported under license from the Americas Land Title Association. ALTA CorrmilriwO fa Tale hsuranee .-WA Mod r07*1r20211, Pays 12 Jnati Investments Property WA•CT-F WtV-02150.624683-SP31 ®rr Packet Pg. 157 Addenda 2.6.b CHICAGO TITLE COMPANY OF WASHINGTON COMMITMENT NO. 500143617 SCHEDULE B, PART II - Exceptions (continued) 16 A lien for the amount shown below and any other amounts due, Amount: $546.35 Claimant: City of Edmonds Nature of Claim Water and Sewer and Storm Dram Services Recording Date: April 23. 2018 Recording No.. 201804230131 17. A lien for the amount shown below and any other amounts due. Amount: $2.673.06 Claimant: City of Edmonds Nature of Claim: Water and Sewer and Storm Drain Services Recording Date: May 20. 2020 Recording No.. 202005200217 18- A lien for the amount shown below and any other amounts due. Amount: $4.579.17 Claimant: City of Edmonds Nature of Claim: Lien Recording Date: May 16, 2022 Recording No.. 202205160182 END OF SCHEDULE B. PART II Ths page is oivy a part of a 2021 ALTAa Commitment for TIM Mt5ur2'tCe WWd by 0wago Tile insurance Company. Ns Conmitmenr is not valid mewl the Notice. the COmmlrnterit to Issue Policy. the Commitment Condkons- Sehedulla A, Schedtde B. Part f-ReWrements. Scrpedolte B. Part ll-Excaplions. ar)d a counter-sgWtee by the Company a its issuing agerd OW may be ,n electronic foml. Copyright American Land Title Association. All rights reserved. The use of this Fxm (or a:y derwatrve thereofy is restricted to ALTA icensees and ALTA members in good standing as of the r date of use An otter rises are prohitidea. Reprinted under license from the Annerical Lard Title Association ALTA Ccxr anienl hi T•11e Yin mil w WA Mod 107,'01 2021 i Primed. 05 0623 @ 05 21 PIA Peye 13 WA-CT-FHRV-62150 624663-sPS1.23-500143617 Jnati Investments Property ®rr Packet Pg. 158 2.6.c Upon Recording, Please Return To: Washington State Department of Ecology Water Quality Program PO Box 47600 Olympia, WA 98504-7600 Attn: ECY PM DEED OF RIGHT TO USE LAND FOR CONSERVATION PURPOSES Grantor: Recipient Grantee: State of Washington, acting by and through the Washington State Department of Ecology, including any successor agencies. Legal Description (abbreviated): description Additional legal(s) on Page 6 Assessor's Tax Parcel ID#s: # THIS DEED OF RIGHT TO USE LAND FOR WATER QUALITY AND CONSERVATION PURPOSES ("Deed") is made and entered into by and between the Recipient Name, WA (hereinafter referred to as "Grantor") and the STATE OF WASHINGTON, acting by and through the WASHINGTON STATE DEPARTMENT OF ECOLOGY including any successor agencies (hereinafter referred to as "Grantee" or "Ecology"). Grantor enters this Deed for and in consideration of monies coming in whole or in part from 319/Centennial funds. Such grant is made pursuant to the Project Agreement entered into between Grantor and Ecology entitled Water Quality One Time Grant Agreement between the State of Washington Page 1 of 8 Packet Pg. 159 2.6.c Department of Ecology and recipient name, Agreement Number #, signed by Grantor on the _ day of_, 2024 and by Ecology on the _ day of _, 2024 (Project Agreement) and a Final Stewardship Plan, which can be found in EAGL, with Grantor and Ecology in connection with the Project Agreement. Pursuant to RCW 64.04.130, Grantor hereby conveys and grants to Ecology as the representative of the people of the State, the perpetual right to enforce the following duties on the real property described in Exhibit A and depicted in Exhibit B ("Property'), under the terms herein: 1. Duties of Grantor. 1.1 Grantor shall take such reasonable and feasible measures as necessary to protect the Property in perpetuity. Such measures shall be consistent with the purposes in the Project Agreement and the Ecology approved "Acquisition Stewardship Plan ", dated _, 2024 (hereafter "Stewardship Plan") as maintained with the Project Agreement record, including protecting, preserving, restoring and/or enhancing the hydrologic functions on the Property by removing invasive species, planting appropriate native species, protecting priority species, improving bank stability and increasing canopy cover along the stream corridor (hereafter "Conservation Values") 1.2 Grantor freely and voluntarily grants access to Ecology and Ecology's authorized representatives, at all reasonable times, to inspect the Property for compliance with the terms of this Deed and the Project Agreement. Such access shall be subject to the restrictions, if any, allowed under the Project Agreement, by written agreement with Ecology, or under state law. The Grantor warrants it has and shall maintain the legal right and means to reach the Property. 1.3 Without prior written consent by Ecology or its successors, through an amendment to this Deed, Grantor shall not use or allow any use of the Property (including any part of it) for uses other than herein as stated in the Project Agreement. The Grantor shall also not grant or suffer the creation of any property interest that is inconsistent with the Stewardship Plan and purposes of the Project Agreement. 2. Specific Prohibitions. In addition to the general restrictions in Section 1 of this Deed, the following additional specific, non- exclusive list of activities and uses are expressly prohibited on the Property: a. Subdivision and residential development. b. Commercial, industrial, or agricultural development and/or use. C. Alteration of the land surface or water bodies, except as necessary to carry out the Stewardship Plan. d. Timber harvest or other removal of vegetation, except as necessary to carry out the Stewardship Plan. e. Exploration for, and/or extraction of, minerals, hydrocarbons, soils, gravels, sand, or other minerals or naturally occurring elements. f. The disposal, storage, release, or accumulation of waste, garbage, debris, vehicles, faeces, abandoned equipment, or hazardous substances. "Hazardous substances" are Page 2 of 8 Packet Pg. 160 2.6.c defined as substances that are hazardous, toxic, dangerous, or harmful by any federal, state, or local law. 3. Permitted Uses and Activities. The following uses and activities are permitted on the Property: a. Reestablishment of native plants and enhancement of existing native plant communities. b. Habitat restoration projects as necessary to carry out the Stewardship Plan and the maintenance of those projects. C. Removal of public health or safety hazards, nuisance animals, and invasive species by such methods permitted by law. d. Passive, non -motorized, pedestrian recreational day use. e. Development of trails as approved by Ecology in writing and consistent with the Stewardship Plan. f. Responding to emergencies on the Property, in accordance with State and federal law. 4. Notice Requirements. 4.1 Grantor, when conveying any interest in any part of the Property including but not limited to title, easement, leases, or other interests, must provide written notice to Ecology of the intended conveyance at least thirty (30) days in advance of the conveyance. Grantor must provide notice of the existence of this Deed in the conveying document. 4.2 Should Grantor become aware of any violation of this Deed, Grantor shall promptly report such violation in writing to Ecology. 4.3 Grantor must notify Ecology in writing of any emergency or significant change in environmental conditions on the Property, and the response actions planned or taken as soon as practical but no later than 24 hours after the discovery of the event. [insert contact name, address, phone number and e-mailfor Grantor] Washington State Department of Ecology Water Quality Program P.O. Box 47600 Olympia, WA 98504 — 7600 Phone #360-407-6600 4.4 Any required written notice, approval, reporting or other communication shall be personally delivered or sent by first class mail to the following person(s). Any change in contact information shall be submitted in writing to all parties to this Deed. Upon agreement, email may be used for these communications. Page 3 of 8 Packet Pg. 161 2.6.c 5. Covenants Run with Land — Binding Upon Successors and Assigns. This Deed contains covenants running with the land and shall be binding upon Grantor, its successors and assigns, and upon any person acquiring the Property, or any portion thereof, or any interest therein, including a leasehold interest, whether by operation of law or otherwise. If the Grantor sells all or any portion of its interest, the new owner of the Property or any portion thereof (including, without limitation, any owner who acquires its interest by foreclosure, trustee's sale or otherwise) shall be subject to applicable covenants and requirements under the Deed. 6. Limit on Removal or Alteration of Deed. This Deed may not be removed or altered from the Property unless specific approval has been granted by Ecology or its successors. 7. Control. Nothing in this Deed shall be construed as giving rise to any right or ability in Grantee to exercise physical or managerial control over the day-to-day operations of the Property, or any of Grantor's activities on the Property, or otherwise to become an operator with respect to the Property within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), or MTCA. 8. Right of Enforcement. Ecology may bring an action at law or in equity to enforce the terms of this Deed; to enjoin a violation or threatened violation by temporary or permanent injunction; to recover any damages to which it may be entitled for violation of the terms of this Deed or injury to any of the Conservation Values protected by this Deed; and to require the restoration of the Property to the condition that existed prior to any such injury. All actions for injunctive relief may be taken without Ecology being required to post bond or provide other security. Enforcement of the terms of this Deed shall be at the discretion of Ecology, and any forbearance, delay or omission to exercise its rights under this Deed in the event of a breach of any term of this Deed is not a waiver by Ecology of that term or of any subsequent breach of that term, or any other term in this Deed, or of any rights of Ecology under this Deed. Page 4 of 8 Packet Pg. 162 2.6.c GRANTOR / GRANTOR: Recipient, WA By: Its: Dated this _ day of , 2024 STATE OF WASHINGTON ) ss. COUNTY OF CLARK On this day of , 2024, before me a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared (person name), the title of signatory of the (recipient name), a Washington City of (location where signing), who acknowledged said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned and stated on oath that he/she was authorized to execute this instrument on behalf of said corporation. WITNESS my hand and official seal hereto affixed the day and year first written above. Notary Public in and for the State of Washington Residing at: My commission expires: Page 5 of 8 Packet Pg. 163 2.6.c GRANTEE / ECOLOGY: State of Washington, acting by and through the Washington State Department of Ecology By: [Water Quality Program Director Name] Its: Water Quality Program Director Dated this day of 2024 STATE OF WASHINGTON ) ss. COUNTY OF On this day of , 2024, before me a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , the of the Department of Ecology, who acknowledged said instrument to be the free and voluntary act and deed of said party for the uses and purposes therein mentioned and stated on oath that he/she was authorized to execute this instrument on behalf of said party. WITNESS my hand and official seal hereto affixed the day and year first written above. Notary Public in and for the State of Washington Residing at: My commission expires: Page 6 of 8 Packet Pg. 164 2.6.c EXHIBIT A Legal Description of the Real Property Page 7 of 8 Packet Pg. 165 2.6.c EXHIBIT B Depiction of the Real Property J ti M 0 _ O w .N U Page 8 of 8 Gl d N 0 Q 0 L IL y d N 0 Q L a _ 0 w m 0 U _ CY L 2� 7 L 0 _ J d N 0 w t 0 d d 0 r a Packet Pg. 166 2.7 City Council Agenda Item Meeting Date: 02/13/2024 Presentation of Department of Ecology Agreement - 2023-2025 Biennial Stormwater Capacity Grant Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History On August 29, 2023, the City applied to the Department of Ecology (Ecology) for a Stormwater Capacity Grant funded by the state's 2023-2025 biennial budget. This non-competitive grant program provides financial assistance to permitees to implement the stormwater management programs required by Ecology's Western Washington Phase II Municipal Stormwater Permit (aka, NPDES stormwater permit or the Permit). Ecology has been providing these Stormwater Capacity grants to municipal pemittees, including the City of Edmonds, on biennial basis since the late 2000s. Staff Recommendation Forward item to consent agenda for approval. Narrative This grant provides $130,000, on a reimbursable basis, to fund activities, selected by the City, to comply with the Permit (including equipment purchases). Expenses for implementing Permit -related activities are eligible for reimbursement by this grant if they are incurred between July 1, 2023 and March 30, 2025. Due to Ecology staff shortages, the grant agreement draft was received by staff late December 2023. This meant that the grant could not be submitted to City Council until 2024 and that our new Mayor would need to be the signatory. Ecology could not revise/release the document to reflect the new Mayor's name until our new Mayor filled out the necessary forms, setup various required computer accounts and received Ecology approval that everything was in place. Staff helped the Mayor fill out the necessary forms and set up the necessary computer accounts. Ecology has completed this approval process and the City has now received the revised grant document. Due to the delays, Ecology will allow the City to file for retroactive reimbursement of applicable costs back to July 1, 2023. Grant dollars are planned to be used to partially fund the following Permit requirements: • Illicit Discharge Detection and Elimination • Operation & Maintenance of the stormwater system The grant agreement has been reviewed by the City Attorney and has been approved as to form. Packet Pg. 167 2.7 Attachments: Attachment 1 - Agreement Packet Pg. 168 DEPARTMENT OF 2.7.a ECOLOGY State of Washington Agreement No. WQSWCAP-2325-Edmond-00085 WATER QUALITY STORMWATER CAPACITY AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY 0 ] CITY OF EDMONDS This is a binding Agreement entered into by and between the state of Washington, Department of Ecology, hereinafter referred to as "ECOLOGY," and City of Edmonds, hereinafter referred to as the "RECIPIENT," to carry out with the provided funds activities described herein. GENERAL INFORMATION Project Title: Total Cost: Total Eligible Cost: Ecology Share: Recipient Share: The Effective Date of this Agreement is: The Expiration Date of this Agreement is no later than: Project Type: 2023-2025 Biennial Stormwater Capacity Grants $130,000.00 $130,000.00 $130,000.00 $0.00 07/01 /2023 03/31/2025 Capacity Grant Project Short Description: This project will assist Phase I and II Permittees in implementation or management of municipal stormwater programs. Project Long Description: N/A Overall Goal: This project will improve water quality in the State of Washington by reducing stormwater pollutants discharged to state water bodies. Packet Pg. 169 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds RECIPIENT INFORMATION Organization Name: City of Edmonds Federal Tax ID: 91-6001244 UEI Number: NFIAQNT457R7 Mailing Address: 121 5th Ave N Edmonds, WA 98115 Organization Email: mike.delilla@edmondswa.gov Contacts Project Manager Jerry Shuster Stormwater Engineer 121 5th Ave N Edmonds, Washington 98020 Email: jerry.shuster@edmondswa.gov Phone: (425) 771-0220 Billing Contact I Emiko Rodarte Administrative Assistant 121 5th Ave N Edmonds, Washington 98020 Email: emiko.rodarte@edmondswa.gov Phone: (425) 771-0220 Authorized Mike Rosen Signatory 121 5th Ave N Edmonds, Washington 98020 Email: mike.rosen@edmondswa.gov Phone: (425) 771-0220 Template Version 12/10/2020 Packet Pg. 170 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds ECOLOGY INFORMATION Mailing Address: Department of Ecology Water Quality PO BOX 47600 Olympia, WA 98504-7600 Physical Address: Water Quality 300 Desmond Drive SE Lacey, WA 98503 Contacts Project Manager Financial Manager Kyle Graunke PO Box 47600 Olympia, Washington 98504-7600 Email• kygr461@ecy.wa.gov Phone: (360) 628-3890 Kyle Graunke PO Box 47600 Olympia, Washington 98504-7600 Email: kygr461 @ecy.wa.gov Phone: (360) 628-3890 Template Version 12/10/2020 Packet Pg. 171 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds SCOPE OF WORK Task Number: Task Title: Project Administration/Management Task Cost: $0.00 2.7.a Task Description: A. The RECIPIENT shall carry out all work necessary to meet ECOLOGY grant or loan administration requirements. Responsibilities include, but are not limited to: Maintenance of project records; submittal of requests for reimbursement and corresponding backup documentation; progress reports; and the EAGL (Ecology Administration of Grants and Loans) recipient closeout report (including photos, if applicable). In the event that the RECIPIENT elects to use a contractor to complete project elements, the RECIPIENT shall retain responsibility for the oversight and management of this funding agreement. B. The RECIPIENT shall keep documentation that demonstrates the project is in compliance with applicable procurement, contracting, and interlocal agreement requirements; permitting requirements, including application for, receipt of, and compliance with all required permits, licenses, easements, or property rights necessary for the project; and submittal of required performance items. This documentation shall be available upon request. C. The RECIPIENT shall maintain effective communication with ECOLOGY and maintain up-to-date staff contact information in the EAGL system. The RECIPIENT shall carry out this project in accordance with any completion dates outlined in this agreement. Task Goal Statement: Properly managed and fully documented project that meets ECOLOGY's grant and loan administrative requirements. Task Expected Outcome: * Timely and complete submittal of requests for reimbursement, quarterly progress reports, and Recipient Closeout Report. * Properly maintained project documentation. Project Administration/Management Deliverables Number Description Due Date 1.1 Progress Reports that include descriptions of work accomplished, project challenges or changes in the project schedule. Submitted at least quarterly. 1.2 Recipient Closeout Report (EAGL Form). Template Version 12/10/2020 Packet Pg. 172 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds SCOPE OF WORK Task Number: 2 Task Cost: $130,000.00 Task Title: Permit Implementation Task Description: Conduct work related to implementation of municipal stormwater National Pollutant Discharge Elimination System (NPDES) permit requirements. If the RECIPIENT is out of compliance with the Municipal Stormwater National Pollutant Discharge Elimination System (NPDES) permit, the RECIPIENT will use funds to attain compliance where applicable. The following is a list of elements projects may include: 1) Public education and outreach activities, including stewardship activities. 2) Public involvement and participation activities. 3) Illicit discharge detection and elimination (IDDE) program activities, including: a) Mapping of municipal separate storm sewer systems (MS4s). b) Staff training. c) Activities to identify and remove illicit stormwater discharges. d) Field screening procedures. e) Complaint hotline database or tracking system improvements. 4) Activities to support programs to control runoff from new development, redevelopment, and construction sites, including a) Development of an ordinance and associated technical manual or update of applicable codes. b) Inspections before, during, and upon completion of construction, or for post -construction long-term maintenance. c) Training for plan review or inspection staff. d) Participation in applicable watershed planning effort. 5) Pollution prevention, good housekeeping, and operation and maintenance program activities, such as: a) Inspecting and/or maintaining the MS4 infrastructure. b) Developing and/or implementing policies, procedures, or stormwater pollution prevention plans at municipal properties or facilities. 6) Annual reporting activities. 7) Establishing and refining stormwater utilities, including stable rate structures. 8) Water quality monitoring to implement permit requirements for a Water Cleanup Plan (Total Maximum Daily Load (TMDL)). Note that any monitoring funded by this program requires submittal of a Quality Assurance Project Plan (QAPP) that ECOLOGY approves prior to awarding funding for monitoring. Monitoring must directly meet a Phase I or II permit requirement. 9) Structural stormwater controls program activities (Phase I permit requirement). 10) Source control for existing development (Phase I permit requirement), including: a) Inventory and inspection program. b) Technical assistance and enforcement. c) Staff training. 11) Equipment purchases that result directly in improved permit compliance. Equipment purchases must be specific to implementing a permit requirement (such as a vactor truck) rather than general use (such as a pick-up truck). Equipment purchases over $5,000.00 must be pre -approved by ECOLOGY. Documentation of all tasks completed is required. Documentation may include field reports, dates and number of inspections Template Version 12/10/2020 Packet Pg. 173 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds conducted, dates of trainings held and participant lists, number of illicit discharges investigated and removed, summaries of planning, stormwater utility or procedural updates, annual reports, copies of approved QAPPs, summaries of structural or source control activities, summaries of how equipment purchases have increased or improved permit compliance. 2.7.a Ineligible expenses include capital construction projects, incentives or give -a -ways, grant application preparation, Technology Assessment Protocol - Ecology (TAPE) review for proprietary treatment systems, or tasks that do not support Municipal Stormwater Permit implementation. Task Goal Statement: This task will improve water quality in the State of Washington by reducing the pollutants delivered by stormwater to lakes, streams, and the Puget Sound by implementing measures required by Phase I and II NPDES permits. Task Expected Outcome: RECIPIENTS will implement measures required by Phase I and II NPDES permits. Permit Implementation Deliverables Number Description Due Date 2.1 Documentation of tasks completed Template Version 12/10/2020 Packet Pg. 174 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds BUDGET Funding Distribution EG240254 NOTE: The above funding distribution number is used to identify this specific agreement and budget on payment remittances and may be referenced on other communications from ECOLOGY. Your agreement may have multiple funding distribution numbers to identify each budget. Funding Title: Funding Effective Date Funding Source: Title: Fund: Type: Funding Source %: Description: 2023-25 Stormwater Capacity Grant Funding Type: 07/01/2023 Funding Expiration Date: Model Toxics Control Stormwater Account (MTCSA) FD State 100% MTCSA Approved Indirect Costs Rate: Approved State Indirect Rate: 30% Recipient Match %: 0% InKind Interlocal Allowed: No InKind Other Allowed: No Is this Funding Distribution used to match a federal grant? No 2023-25 Stormwater Capacity Grant Task Total Permit Implementation $ 130,000.00 Total: S 130,000.00 Grant 03/31/2025 2.7.a Template Version 12/10/2020 Packet Pg. 175 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds Funding Distribution Summary Recipient / Ecology Share 2.7.a Funding Distribution Name Recipient Match '%o Recipient Share Ecology Share Total 2023-25 Stormwater Capacity Grant 0.00 % $ 0.00 S 130,000.00 $ 130,000.0( Total S 0.00 $ 130,000.00 $ 130,0000 AGREEMENT SPECIFIC TERMS AND CONDITIONS N/A SPECIAL TERMS AND CONDITIONS GENERAL FEDERAL CONDITIONS If a portion or all of the funds for this agreement are provided through federal funding sources or this agreement is used to match a federal grant award, the following terms and conditions apply to you. A. CERTIFICATION REGARDING SUSPENSION. DEBARMENT. INELIGIBILITY OR VOLUNTARY EXCLUSION: 1. The RECIPIENT/CONTRACTOR, by signing this agreement, certifies that it is not suspended, debarred, proposed for debarment, declared ineligible or otherwise excluded from contracting with the federal government, or from receiving contracts paid for with federal funds. If the RECIPIENT/CONTRACTOR is unable to certify to the statements contained in the certification, they must provide an explanation as to why they cannot. 2. The RECIPIENT/CONTRACTOR shall provide immediate written notice to ECOLOGY if at any time the RECIPIENT/CONTRACTOR learns that its certification was erroneous when submitted or had become erroneous by reason of changed circumstances. 3. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meaning set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact ECOLOGY for assistance in obtaining a copy of those regulations. 4. The RECIPIENT/CONTRACTOR agrees it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under the applicable Code of Federal Regulations, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction. 5. The RECIPIENT/CONTRACTOR further agrees by signing this agreement, that it will include this clause titled "CERTIFICATION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY EXCLUSION" without modification in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 6. Pursuant to 2CFR180.330, the RECIPIENT/CONTRACTOR is responsible for ensuring that any lower tier covered transaction complies with certification of suspension and debarment requirements. Template Version 12/10/2020 Packet Pg. 176 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds 2.7.a 7. RECIPIENT/CONTRACTOR acknowledges that failing to disclose the information required in the Code of Federal Regulations may result in the delay or negation of this funding agreement, or pursuance of legal remedies, including suspension and debarment. 8. RECIPIENT/CONTRACTOR agrees to keep proof in its agreement file, that it, and all lower tier recipients or contractors, are not suspended or debarred, and will make this proof available to ECOLOGY before requests for reimbursements will be approved for payment. RECIPIENT/CONTRACTOR must run a search in <htt2://www.sam.j4ov> and print a copy of completed searches to document proof of compliance. B. FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) REPORTING REQUIREMENTS: CONTRACTOR/RECIPIENT must complete the FFATA Data Collection Form (ECY 070-395) and return it with the signed agreement to ECOLOGY. Any CONTRACTOR/RECIPIENT that meets each of the criteria below must report compensation for its five top executives using the FFATA Data Collection Form. Receives more than $30,000 in federal funds under this award. Receives more than 80 percent of its annual gross revenues from federal funds. Receives more than $25,000,000 in annual federal funds. Ecology will not pay any invoices until it has received a completed and signed FFATA Data Collection Form. Ecology is required to report the FFATA information for federally funded agreements, including the required Unique Entity Identifier in www.sam. o�ttp://www.sam.gov/> within 30 days of agreement signature. The FFATA information will be available to the public at www.usaspending.gov <http://www.usaspendin,g_gov/>. For more details on FFATA requirements, see www.fsrs. og v <http://www.fsrs.gov/>. C. FEDERAL FUNDING PROHIBITION ON CERTAIN TELECOMMUNICATIONS OR VIDEO SURVEILLANCECL aa) SERVICES OR EQUIPMENT: _ m As required by 2 CFR 200.216, federal grant or loan recipients and subrecipients are prohibited from obligating or expending aEi loan or grant funds to: a 1. Procure or obtain; r 2. Extend or renew a contract to procure or obtain; or a) E 3. Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that use covered telecommunications equipment, video surveillance services or services as a substantial or essential component a of any system, or as critical technology as part of any system. As described in Public Law 115-232 <https://www.govinfo.jzov/conte!Lt/ pkg/PLAW- I l5publ232/pdf/PLAW- I 15publ232.pdf> , section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). a Recipients, subrecipients, and borrowers also may not use federal funds to purchase certain prohibited equipment, systems, or services, including equipment, systems, or services produced or provided by entities identified in section 889, are recorded in the System for Award Management (SAM.) <h!Ws://sam.gov/SAM/> exclusion list. Template Version 12/10/2020 Packet Pg. 177 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds C ,L^ V Q ♦0� V L 3 E L 0 4. Cn W Ln N O N M N O N C E d L CD a M 0 0 V W 4- 0 0 E 0 Q 0 E L ZI Template Version 12/10/2020 Packet Pg. 178 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds GENERAL TERMS AND CONDITIONS Pertaining to Grant and Loan Agreements With the state of Washington, Department of Ecology GENERAL TERMS AND CONDITIONS For DEPARTMENT OF ECOLOGY GRANTS and LOANS 07/01/2023 Version ADMINISTRATIVE REQUIREMENTS 2.7.a a) RECIPIENT shall follow the "Administrative Requirements for Recipients of Ecology Grants and Loans — EAGL Edition." (https:Hfortress.wa.gov/ecy/publications/SummaryPages/2301002.html) b) RECIPIENT shall complete all activities funded by this Agreement and be fully responsible for the proper management of all funds and resources made available under this Agreement. c) RECIPIENT agrees to take complete responsibility for all actions taken under this Agreement, including ensuring all subgrantees and contractors comply with the terms and conditions of this Agreement. ECOLOGY reserves the right to request proof of compliance by subgrantees and contractors. d) RECIPIENT's activities under this Agreement shall be subject to the review and approval by ECOLOGY for the extent and character of all work and services. 2. AMENDMENTS AND MODIFICATIONS This Agreement may be altered, amended, or waived only by a written amendment executed by both parties. No subsequent modification(s) or amendment(s) of this Agreement will be of any force or effect unless in writing and signed by authorized representatives of both parties. ECOLOGY and the RECIPIENT may change their respective staff contacts and administrative information without the concurrence of either party. ACCESSIBILITY REQUIREMENTS FOR COVERED TECHNOLOGY The RECIPIENT must comply with the Washington State Office of the Chief Information Officer, OCIO Policy no. 188, Accessibility (https://ocio.wa.gov/policy/accessibility) as it relates to "covered technology." This requirement applies to all products supplied under the Agreement, providing equal access to information technology by individuals with disabilities, including and not limited to web sites/pages, web -based applications, software systems, video and audio content, and electronic documents intended for publishing on Ecology's public web site. 4. ARCHAEOLOGICAL AND CULTURAL RESOURCES RECIPIENT shall take all reasonable action to avoid, minimize, or mitigate adverse effects to archaeological and historic archaeological sites, historic buildings/structures, traditional cultural places, sacred sites, or other cultural resources, hereby referred to as Cultural Resources. The RECIPIENT must agree to hold harmless ECOLOGY in relation to any claim related to Cultural Resources discovered, disturbed, or damaged due to the RECIPIENT's project funded under this Agreement. RECIPIENT shall: a) Contact the ECOLOGY Program issuing the grant or loan to discuss any Cultural Resources requirements for their project: • Cultural Resource Consultation and Review should be initiated early in the project planning process and must be completed prior to expenditure of Agreement funds as required by applicable State and Federal requirements. * For state funded construction, demolition, or land acquisitions, comply with Governor Executive Order 21-02, Archaeological and Cultural Resources. • For projects with any federal involvement, comply with the National Historic Preservation Act of 1966 (Section 106). Template Version 12/10/2020 Packet Pg. 179 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds b) If required by the ECOLOGY Program, submit an Inadvertent Discovery Plan (IDP) to ECOLOGY prior to implementing any project that involves field activities. ECOLOGY will provide the IDP form. RECIPIENT shall: _ • Keep the IDP at the project site. • Make the IDP readily available to anyone working at the project site. • Discuss the IDP with staff, volunteers, and contractors working at the project site. a • Implement the IDP when Cultural Resources or human remains are found at the project site. t� c) If any Cultural Resources are found while conducting work under this Agreement, follow the protocol outlined in the project L 0 IDP. ea • Immediately stop work and notify the ECOLOGY Program, who will notify the Department of Archaeology and Historic E Preservation at (360) 586-3065, any affected Tribe, and the local government. r Cn d) If any human remains are found while conducting work under this Agreement, follow the protocol outlined in the project `° IDP. m • Immediately stop work and notify the local Law Enforcement Agency or Medical Examiner/Coroner's Office, the m Ln Department of Archaeology and Historic Preservation at (360) 790-1633, and then the ECOLOGY Program. N e) Comply with RCW 27.53, RCW 27.44, and RCW 68.50.645, and all other applicable local, state, and federal laws N protecting Cultural Resources and human remains. N ASSIGNMENT No right or claim of the RECIPIENT arising under this Agreement shall be transferred or assigned by the RECIPIENT 6. COMMUNICATION RECIPIENT shall make every effort to maintain effective communications with the RECIPIENT's designees, ECOLOGY, all affected local, state, or federal jurisdictions, and any interested individuals or groups. 7. COMPENSATION a) Any work performed prior to effective date of this Agreement will be at the sole expense and risk of the RECIPIENT. ECOLOGY must sign the Agreement before any payment requests can be submitted. b) Payments will be made on a reimbursable basis for approved and completed work as specified in this Agreement. c) RECIPIENT is responsible to determine if costs are eligible. Any questions regarding eligibility should be clarified with ECOLOGY prior to incurring costs. Costs that are conditionally eligible require approval by ECOLOGY prior to expenditure. d) RECIPIENT shall not invoice more than once per month unless agreed on by ECOLOGY. e) ECOLOGY will not process payment requests without the proper reimbursement forms, Progress Report and supporting documentation. ECOLOGY will provide instructions for submitting payment requests. f) ECOLOGY will pay the RECIPIENT thirty (30) days after receipt of a properly completed request for payment. g) RECIPIENT will receive payment through Washington State's Office of Financial Management's Statewide Payee Desk. To receive payment you must register as a statewide vendor by submitting a statewide vendor registration form and an IRS W -9 form at website, https:Hofm.wa.gov/it-systems/statewide-vendorpayee-services. If you have questions about the vendor registration process, you can contact Statewide Payee Help Desk at (360) 407-8180 or email PayeeRegistration@ofin.wa.gov. h) ECOLOGY may, at its sole discretion, withhold payments claimed by the RECIPIENT if the RECIPIENT fails to satisfactorily comply with any term or condition of this Agreement. i) Monies withheld by ECOLOGY may be paid to the RECIPIENT when the work described herein, or a portion thereof, has been completed if, at ECOLOGY's sole discretion, such payment is reasonable and approved according to this Agreement, as appropriate, or upon completion of an audit as specified herein. j) RECIPIENT must submit within thirty (30) days after the expiration date of this Agreement, all financial, performance, and Template Version 12/10/2020 Packet Pg. 180 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds other reports required by this Agreement. Failure to comply may result in delayed reimbursement. 8. COMPLIANCE WITH ALL LAWS 2.7.a RECIPIENT agrees to comply fully with all applicable federal, state and local laws, orders, regulations, and permits related to this Agreement, including but not limited to: a) RECIPIENT agrees to comply with all applicable laws, regulations, and policies of the United States and the State of Washington which affect wages and job safety. b) RECIPIENT agrees to be bound by all applicable federal and state laws, regulations, and policies against discrimination. c) RECIPIENT certifies full compliance with all applicable state industrial insurance requirements. d) RECIPIENT agrees to secure and provide assurance to ECOLOGY that all the necessary approvals and permits required by authorities having jurisdiction over the project are obtained. RECIPIENT must include time in their project timeline for the permit and approval processes. ECOLOGY shall have the right to immediately terminate for cause this Agreement as provided herein if the RECIPIENT fails to comply with above requirements. If any provision of this Agreement violates any statute or rule of law of the state of Washington, it is considered modified to conform to that statute or rule of law. 9. CONFLICT OF INTEREST RECIPIENT and ECOLOGY agree that any officer, member, agent, or employee, who exercises any function or responsibility in the review, approval, or carrying out of this Agreement, shall not have any personal or financial interest, direct or indirect, nor affect the interest of any corporation, partnership, or association in which he/she is a part, in this Agreement or the proceeds thereof. 10. CONTRACTING FOR GOODS AND SERVICES RECIPIENT may contract to buy goods or services related to its performance under this Agreement. RECIPIENT shall award all contracts for construction, purchase of goods, equipment, services, and professional architectural and engineering services through a competitive process, if required by State law. RECIPIENT is required to follow procurement procedures that ensure legal, fair, and open competition. RECIPIENT must have a standard procurement process or follow current state procurement procedures. RECIPIENT may be required to provide written certification that they have followed their standard procurement procedures and applicable state law in awarding contracts under this Agreement. ECOLOGY reserves the right to inspect and request copies of all procurement documentation, and review procurement practices related to this Agreement. Any costs incurred as a result of procurement practices not in compliance with state procurement law or the RECIPIENT's normal procedures may be disallowed at ECOLOGY's sole discretion. 11. DISPUTES When there is a dispute with regard to the extent and character of the work, or any other matter related to this Agreement the determination of ECOLOGY will govern, although the RECIPIENT shall have the right to appeal decisions as provided for below: a) RECIPIENT notifies the funding program of an appeal request. b) Appeal request must be in writing and state the disputed issue(s). c) RECIPIENT has the opportunity to be heard and offer evidence in support of its appeal. d) ECOLOGY reviews the RECIPIENT's appeal. e) ECOLOGY sends a written answer within ten (10) business days, unless more time is needed, after concluding the review. The decision of ECOLOGY from an appeal will be final and conclusive, unless within thirty (30) days from the date of such Template Version 12/10/2020 Packet Pg. 181 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds 2.7.a decision, the RECIPIENT furnishes to the Director of ECOLOGY a written appeal. The decision of the Director or duly authorized representative will be final and conclusive. The parties agree that this dispute process will precede any action in a judicial or quasi-judicial tribunal. Appeals of the Director's decision will be brought in the Superior Court of Thurston County. Review of the Director's decision will not be taken to Environmental and Land Use Hearings Office. Pending final decision of a dispute, the RECIPIENT agrees to proceed diligently with the performance of this Agreement and in accordance with the decision rendered. Nothing in this Agreement will be construed to limit the parties' choice of another mutually acceptable method, in addition to the dispute resolution procedure outlined above. 12. ENVIRONMENTAL DATA STANDARDS a) RECIPIENT shall prepare a Quality Assurance Project Plan (QAPP) for a project that collects or uses environmental measurement data. RECIPIENTS unsure about whether a QAPP is required for their project shall contact the ECOLOGY Program issuing the grant or loan. If a QAPP is required, the RECIPIENT shall: • Use ECOLOGY's QAPP Template/Checklist provided by the ECOLOGY, unless ECOLOGY Quality Assurance (QA) officer or the Program QA coordinator instructs otherwise. • Follow ECOLOGY's Guidelines for Preparing Quality Assurance Project Plans for Environmental Studies, July 2004 (Ecology Publication No. 04-03-030). • Submit the QAPP to ECOLOGY for review and approval before the start of the work. b) RECIPIENT shall submit environmental data that was collected on a project to ECOLOGY using the Environmental Information Management system (EIM), unless the ECOLOGY Program instructs otherwise. The RECIPIENT must confirm with ECOLOGY that complete and correct data was successfully loaded into EIM, find instructions at: http://www.ecy.wa.gov/eim. c) RECIPIENT shall follow ECOLOGY's data standards when Geographic Information System (GIS) data is collected and processed. Guidelines for Creating and Accessing GIS Data are available at: https:Hecology.wa.gov/Research-Data/Data-resources/Geographic-Information-Systems-GIS/Standards. RECIPIENT, when requested by ECOLOGY, shall provide copies to ECOLOGY of all final GIS data layers, imagery, related tables, raw data collection files, map products, and all metadata and project documentation. 13. GOVERNING LAW This Agreement will be governed by the laws of the State of Washington, and the venue of any action brought hereunder will be in the Superior Court of Thurston County. 14. INDEMNIFICATION ECOLOGY will in no way be held responsible for payment of salaries, consultant's fees, and other costs related to the project described herein, except as provided in the Scope of Work. To the extent that the Constitution and laws of the State of Washington permit, each party will indemnify and hold the other harmless from and against any liability for any or all injuries to persons or property arising from the negligent act or omission of that party or that party's agents or employees arising out of this Agreement. 15. INDEPENDENT STATUS The employees, volunteers, or agents of each party who are engaged in the performance of this Agreement will continue to be employees, volunteers, or agents of that party and will not for any purpose be employees, volunteers, or agents of the other party. Template Version 12/10/2020 Packet Pg. 182 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds 16. KICKBACKS RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this Agreement to give up any part of the compensation to which he/she is otherwise entitled to or receive any fee, commission, or gift in return for award of a subcontract hereunder. c� 17. MINORITY AND WOMEN'S BUSINESS ENTERPRISES (MWBE) RECIPIENT is encouraged to solicit and recruit, to the extent possible, certified minority -owned (MBE) and women -owned (WBE) businesses in purchases and contracts initiated under this Agreement. Contract awards or rejections cannot be made based on MWBE participation; however, the RECIPIENT is encouraged to take the following actions, when possible, in any procurement under this Agreement: a) Include qualified minority and women's businesses on solicitation lists whenever they are potential sources of goods or services. b) Divide the total requirements, when economically feasible, into smaller tasks or quantities, to permit maximum participation by qualified minority and women's businesses. c) Establish delivery schedules, where work requirements permit, which will encourage participation of qualified minority and women's businesses. d) Use the services and assistance of the Washington State Office of Minority and Women's Business Enterprises (OMWBE) (866-208-1064) and the Office of Minority Business Enterprises of the U.S. Department of Commerce, as appropriate. 18. ORDER OF PRECEDENCE In the event of inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: (a) applicable federal and state statutes and regulations; (b) The Agreement; (c) Scope of Work; (d) Special Terms and Conditions; (e) Any provisions or terms incorporated herein by reference, including the "Administrative Requirements for Recipients of Ecology Grants and Loans"; (f) Ecology Funding Program Guidelines; and (g) General Terms and Conditions. 19. PRESENTATION AND PROMOTIONAL MATERIALS ECOLOGY reserves the right to approve RECIPIENT's communication documents and materials related to the fulfillment of this Agreement: G -- a) If requested, RECIPIENT shall provide a draft copy to ECOLOGY for review and approval ten (10) business days prior to production and distribution. aEi b RECIPIENT shall include time for ECOLOGY's review and approval process in their project timeline. L � c) If requested, RECIPIENT shall provide ECOLOGY two (2) final copies and an electronic copy of any tangible products a developed. r Copies include any printed materials, and all tangible products developed such as brochures, manuals, pamphlets, videos, audio E tapes, CDs, curriculum, posters, media announcements, or gadgets with a message, such as a refrigerator magnet, and any online communications, such as web pages, blogs, and twitter campaigns. If it is not practical to provide a copy, then the a RECIPIENT shall provide a description (photographs, drawings, printouts, etc.) that best represents the item. Any communications intended for public distribution that uses ECOLOGY's logo shall comply with ECOLOGY's graphic requirements and any additional requirements specified in this Agreement. Before the use of ECOLOGY's logo contact ECOLOGY for guidelines. RECIPIENT shall acknowledge in the communications that funding was provided by ECOLOGY. Q 20. PROGRESS REPORTING a) RECIPIENT must satisfactorily demonstrate the timely use of funds by submitting payment requests and progress reports to Template Version 12/10/2020 Packet Pg. 183 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds 2.7.a ECOLOGY. ECOLOGY reserves the right to amend or terminate this Agreement if the RECIPIENT does not document timely use of funds. b) RECIPIENT must submit a progress report with each payment request. Payment requests will not be processed without a progress report. ECOLOGY will define the elements and frequency of progress reports. c) RECIPIENT shall use ECOLOGY's provided progress report format. d) Quarterly progress reports will cover the periods from January I through March 31, April 1 through June 30, July I through September 30, and October 1 through December 31. Reports shall be submitted within thirty (30) days after the end of the quarter being reported. e) RECIPIENT must submit within thirty (30) days of the expiration date of the project, unless an extension has been approved by ECOLOGY, all financial, performance, and other reports required by the Agreement and funding program guidelines. RECIPIENT shall use the ECOLOGY provided closeout report format. 21. PROPERTY RIGHTS a) Copyrights and Patents. When the RECIPIENT creates any copyrightable materials or invents any patentable property under this Agreement, the RECIPIENT may copyright or patent the same but ECOLOGY retains a royalty free, nonexclusive, and irrevocable license to reproduce, publish, recover, or otherwise use the material(s) or property, and to authorize others to use the same for federal, state, or local government purposes. b) Publications. When the RECIPIENT or persons employed by the RECIPIENT use or publish ECOLOGY information; present papers, lectures, or seminars involving information supplied by ECOLOGY; or use logos, reports, maps, or other data in printed reports, signs, brochures, pamphlets, etc., appropriate credit shall be given to ECOLOGY. c) Presentation and Promotional Materials. ECOLOGY shall have the right to use or reproduce any printed or graphic materials produced in fulfillment of this Agreement, in any manner ECOLOGY deems appropriate. ECOLOGY shall acknowledge the RECIPIENT as the sole copyright owner in every use or reproduction of the materials. d) Tangible Property Rights. ECOLOGY's current edition of "Administrative Requirements for Recipients of Ecology Grants and Loans," shall control the use and disposition of all real and personal property purchased wholly or in part with funds furnished by ECOLOGY in the absence of state and federal statutes, regulations, or policies to the contrary, or upon specific instructions with respect thereto in this Agreement. e) Personal Property Furnished by ECOLOGY. When ECOLOGY provides personal property directly to the RECIPIENT for use in performance of the project, it shall be returned to ECOLOGY prior to final payment by ECOLOGY. If said property is lost, stolen, or damaged while in the RECIPIENT's possession, then ECOLOGY shall be reimbursed in cash or by setoff by the RECIPIENT for the fair market value of such property. f) Acquisition Projects. The following provisions shall apply if the project covered by this Agreement includes funds for the acquisition of land or facilities: 1. RECIPIENT shall establish that the cost is fair value and reasonable prior to disbursement of funds provided for in this Agreement. 2. RECIPIENT shall provide satisfactory evidence of title or ability to acquire title for each parcel prior to disbursement of funds provided by this Agreement. Such evidence may include title insurance policies, Torrens certificates, or abstracts, and attorney's opinions establishing that the land is free from any impediment, lien, or claim which would impair the uses intended b, this Agreement. g) Conversions. Regardless of the Agreement expiration date, the RECIPIENT shall not at any time convert any equipment, property, or facility acquired or developed under this Agreement to uses other than those for which assistance was originally approved without prior written approval of ECOLOGY. Such approval may be conditioned upon payment to ECOLOGY of that portion of the proceeds of the sale, lease, or other conversion or encumbrance which monies granted pursuant to this Agreement bear to the total acquisition, purchase, or construction costs of such property. 22. RECORDS, AUDITS, AND INSPECTIONS Template Version 12/10/2020 Packet Pg. 184 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds 2.7.a RECIPIENT shall maintain complete program and financial records relating to this Agreement, including any engineering documentation and field inspection reports of all construction work accomplished. All records shall: a) Be kept in a manner which provides an audit trail for all expenditures. b) Be kept in a common file to facilitate audits and inspections. c) Clearly indicate total receipts and expenditures related to this Agreement. d) Be open for audit or inspection by ECOLOGY, or by any duly authorized audit representative of the State of Washington, for a period of at least three (3) years after the final grant payment or loan repayment, or any dispute resolution hereunder. RECIPIENT shall provide clarification and make necessary adjustments if any audits or inspections identify discrepancies in the records. ECOLOGY reserves the right to audit, or have a designated third party audit, applicable records to ensure that the state has been properly invoiced. Any remedies and penalties allowed by law to recover monies determined owed will be enforced. Repetitive instances of incorrect invoicing or inadequate records may be considered cause for termination. All work performed under this Agreement and any property and equipment purchased shall be made available to ECOLOGY and to any authorized state, federal or local representative for inspection at any time during the course of this Agreement and for at least three (3) years following grant or loan termination or dispute resolution hereunder. RECIPIENT shall provide right of access to ECOLOGY, or any other authorized representative, at all reasonable times, in order to monitor and evaluate performance, compliance, and any other conditions under this Agreement. 23. RECOVERY OF FUNDS The right of the RECIPIENT to retain monies received as reimbursement payments is contingent upon satisfactory performance of this Agreement and completion of the work described in the Scope of Work. All payments to the RECIPIENT are subject to approval and audit by ECOLOGY, and any unauthorized expenditure(s) or unallowable cost charged to this Agreement shall be refunded to ECOLOGY by the RECIPIENT. RECIPIENT shall refund to ECOLOGY the full amount of any erroneous payment or overpayment under this Agreement. RECIPIENT shall refund by check payable to ECOLOGY the amount of any such reduction of payments or repayments within thirty (30) days of a written notice. Interest will accrue at the rate of twelve percent (12%) per year from the time ECOLOGY demands repayment of funds. Any property acquired under this Agreement, at the option of ECOLOGY, may become ECOLOGY's property and the RECIPIENT's liability to repay monies will be reduced by an amount reflecting the fair value of such property. 24. SEVERABILITY If any provision of this Agreement or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid provision, and to this end the provisions of this Agreement are declared to be severable. 25. STATE ENVIRONMENTAL POLICY ACT (SEPA) RECIPIENT must demonstrate to ECOLOGY's satisfaction that compliance with the requirements of the State Environmental Policy Act (Chapter 43.21 C RCW and Chapter 197-11 WAC) have been or will be met. Any reimbursements are subject to this provision. 26. SUSPENSION When in the best interest of ECOLOGY, ECOLOGY may at any time, and without cause, suspend this Agreement or any portion thereof for a temporary period by written notice from ECOLOGY to the RECIPIENT. RECIPIENT shall resume performance on the next business day following the suspension period unless another day is specified by ECOLOGY. Template Version 12/10/2020 Packet Pg. 185 State of Washington Department of Ecology 2.7.a Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds 27. SUSTAINABLE PRACTICES In order to sustain Washington's natural resources and ecosystems, the RECIPIENT is fully encouraged to implement sustainable practices and to purchase environmentally preferable products under this Agreement. a) Sustainable practices may include such activities as: use of clean energy, use of double -sided printing, hosting low impact meetings, and setting up recycling and composting programs. b) Purchasing may include such items as: sustainably produced products and services, EPEAT registered computers and imaging equipment, independently certified green cleaning products, remanufactured toner cartridges, products with reduced packaging, office products that are refillable, rechargeable, and recyclable, 100% post -consumer recycled paper, and toxic free products. For more suggestions visit ECOLOGY's web page, Green Purchasing, https://ecology.wa.gov/Regulations-Permits/Guidance-technical-assistance/Sustainable-purchasing. 28. TERMINATION a) For Cause ECOLOGY may terminate for cause this Agreement with a seven (7) calendar days prior written notification to the RECIPIENT, at the sole discretion of ECOLOGY, for failing to perform an Agreement requirement or for a material breach of any term or condition. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Failure to Commence Work. ECOLOGY reserves the right to terminate this Agreement if RECIPIENT fails to commence work on the project funded within four (4) months after the effective date of this Agreement, or by any date mutually agreed upon in writing for commencement of work, or the time period defined within the Scope of Work. Non -Performance. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance by the RECIPIENT of all of its obligations under this Agreement. In the event the RECIPIENT unjustifiably fails, in the opinion of ECOLOGY, to perform any obligation required of it by this Agreement, ECOLOGY may refuse to pay any further funds, terminate in whole or in part this Agreement, and exercise any other rights under this Agreement. Despite the above, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and the State of Washington because of any breach of this Agreement by the RECIPIENT. ECOLOGY may withhold payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the RECIPIENT is determined. b) For Convenience ECOLOGY may terminate for convenience this Agreement, in whole or in part, for any reason when it is the best interest of ECOLOGY, with a thirty (30) calendar days prior written notification to the RECIPIENT, except as noted below. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Non -Allocation of Funds. ECOLOGY's ability to make payments is contingent on availability of funding. In the event funding from state, federal or other sources is withdrawn, reduced, or limited in any way after the effective date and prior to the completion or expiration date of this Agreement, ECOLOGY, at its sole discretion, may elect to terminate the Agreement, in whole or part, or renegotiate the Agreement, subject to new funding limitations or conditions. ECOLOGY may also elect to suspend performance of the Agreement until ECOLOGY determines the funding insufficiency is resolved. ECOLOGY may exercise any of these options with no notification or restrictions, although ECOLOGY will make a reasonable attempt to provide notice. In the event of termination or suspension, ECOLOGY will reimburse eligible costs incurred by the RECIPIENT through the effective date of termination or suspension. Reimbursed costs must be agreed to by ECOLOGY and the RECIPIENT. In no event shall ECOLOGY's reimbursement exceed ECOLOGY's total responsibility under the Agreement and any amendments. Template Version 12/10/2020 Packet Pg. 186 State of Washington Department of Ecology Agreement No: WQSWCAP-2325-Edmond-00085 Project Title: 2023-2025 Biennial Stormwater Capacity Grants Recipient Name: City of Edmonds 2.7.a If payments have been discontinued by ECOLOGY due to unavailable funds, the RECIPIENT shall not be obligated to repay monies which had been paid to the RECIPIENT prior to such termination. RECIPIENT's obligation to continue or complete the work described in this Agreement shall be contingent upon availability of funds by the RECIPIENT's governing body. c) By Mutual Agreement ECOLOGY and the RECIPIENT may terminate this Agreement, in whole or in part, at any time, by mutual written agreement. d) In Event of Termination All finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, reports or other materials prepared by the RECIPIENT under this Agreement, at the option of ECOLOGY, will become property of ECOLOGY and the RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Nothing contained herein shall preclude ECOLOGY from demanding repayment of all funds paid to the RECIPIENT in accordance with Recovery of Funds, identified herein. 29. THIRD PARTY BENEFICIARY RECIPIENT shall ensure that in all subcontracts entered into by the RECIPIENT pursuant to this Agreement, the state of Washington is named as an express third party beneficiary of such subcontracts with full rights as such. 30. WAIVER Waiver of a default or breach of any provision of this Agreement is not a waiver of any subsequent default or breach, and will not be construed as a modification of the terms of this Agreement unless stated as such in writing by the authorized representative of ECOLOGY. End of General Terms and Conditions Template Version 12/10/2020 Packet Pg. 187 2.8 City Council Agenda Item Meeting Date: 02/13/2024 A motion of the City of Edmonds granting to AT&T Wireless Services of Washington, LLC, an Oregon Limited Liability Company, d/b/a AT&T Wireless, by AT&T Wireless Services, Inc., a Delaware Corporation, its member (Lessee), authorizing the Mayor to sign a Consent to a Holdover Tenancy of the Facilities Lease as provided for in said lease. Staff Lead: Angela Tinker / Rob English Department: Engineering Preparer: Emiko Rodarte Background/History n/a Staff Recommendation City staff requests that the Public Works Committee consider the attached written consent to holdover tenancy under the terms specified in the Facilities Lease and recommend placement on the City Council Consent Agenda for the February 20t", 2024, regular City Council meeting Alternative: Require Lessee to remove its equipment and personal property from the premises or allow Lessee to remain on the premises and negotiate without a lease in place. Narrative In 2004 the city granted to AT&T Wireless a twenty-year Facilities Lease granting authority to construct, maintain, and repair a fenced compound for the location of telecommunications facilities at the Five Corners Water Tank Site and to co -locate facilities on a tower leased to Voicestream Wireless with written approval of Voicestream of the co -location. The Facilities lease contemplates that Lessee may holdover after the expiration of the lease with the written consent of the city, and states the terms applicable to the holdover at paragraph 26, including a month to month tenancy terminable by either party on 30 days written notice and that Lessee agrees to pay the annual rate of rental, prorated on a monthly basis, and "further agrees to be bound by all of the terms, covenants, agreements, and conditions as herein specified, so far as applicable." This Facilities lease is one of three leases at Five Corners that the city is considering renewing at the same time. The other two expire in May of this year. The City is also considering a proposal from an appraiser addressing fair market rents at the property. Extending this Facilities lease on a month -to - month basis as provided in the lease will facilitate. A holdover tenancy does not relieve Lessee from its obligation to pay rents owed the city under the lease. Packet Pg. 188 2.8 Attachments: Attachment 1 - Motion Packet Pg. 189 2.8.a CONSENT TO HOLDOVER TENANCY RECITALS WHEREAS, New Cingular Wireless PCS, LLC, a Delaware limited liability company, successor in interest to AT&T Wireless Services of Washington, LLC, an Oregon limited liability company, d/b/a AT&T Wireless ("Lessee"), holds a Facilities Lease with the City of Edmonds ("City") authorizing use of space at 8505 Bowdoin Way, as more particularly described in the lease, executed on or about February 18, 2004, for a term of twenty years, as amended by that First Amendment to Facilities Lease Agreement dated July 18, 2012 (collectively the "Lease"); and WHEREAS, the Lease contemplates a holdover tenancy subject to the written consent of the city and outlines the terms of such a tenancy should the city consent; and WHEREAS, Lessee is one of three telecommunications companies holding leases authorizing use of space at 8505 Bowdoin Way, the other two leases expiring in May of 2024; and WHEREAS, the City desires to negotiate a renewal of the three leases together, and a city consent to a holdover tenancy according to the terms of the Lease will facilitate such a process; and WHEREAS, the Lessee desires to holdover. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Lessee agree as follows: City Consent Granted. Under Section 26 of the Lease, the City provides this written consent to holdover according to the terms and conditions as set forth therein. In all other respects, the Lease between the parties is unchanged and shall remain in full force and effect. IN WITNESS WHEREOF, the parties have caused this Consent to Holdover Tenancy to be effective as of the date last signed below. Packet Pg. 190 2.8.a CITY OF EDMONDS MAYOR MIKE ROSEN Date: ATTEST/AUTHENTICATED: CITY CLERK SCOTT PASSEY 2 Packet Pg. 191 2.8.a NEW CINGULAR WIRELESS PCS, LLC a Delaware limited liability company By: AT&T Mobility Corporation Its: Manager By: Print Name: Title: STATE OF ) SS COUNTY OF Before me, Date: on this day personally appeared , known to me to be the person whose name is subscribed to this instrument and known to me to be the [insert title] of , and acknowledged to me that he/she executed the said instrument for the purposes and consideration therein expressed, on behalf of said corporation, and acknowledged the 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/she is authorized to execute the said instrument and that the seal affixed is the corporate seal of said corporation. Given under my hand and seal of office this day of 52024. My Commission Expires: Notary Public Printed Name Cl Packet Pg. 192 2.9 City Council Agenda Item Meeting Date: 02/13/2024 An ordinance of the City of Edmonds granting to New Cingular Wireless PCS, LLC, a Delaware limited liability company, successor in interest to AT&T Wireless Services of Washington, LLC, an Oregon limited liability company, d/b/a AT&T Wireless, its successors and assigns, an extension of the franchise granted under ordinance 3441, establishing an effective date. Staff Lead: Angela Tinker / Rob English Department: Engineering Preparer: Emiko Rodarte Background/History n/a Staff Recommendation City staff requests that the Public Works Committee consider the attached seven -month extension of the franchise granted under ordinance 3441 and recommends placement of the ordinance on the City Council Consent Agenda for the February 201", 2024, regular City Council meeting. Alternative Engage in negotiations while the franchise is expired and without franchise fees. Narrative Ordinance 3441 granted to AT&T Wireless, predecessor to New Cingular Wireless ("Permittee"), a twenty-year wireless telecommunications franchise. The franchise was extended under ordinance 4322 for an additional five months in part to allow the city to hire an appraiser. The city has obtained a proposal from an appraiser, but due to budget concerns has not yet hired the appraiser. AT&T Wireless was billed $4900.05 in December 2023 for monies owed under the franchise for 2023, and the city has received payment. Under this extension, AT&T will owe the city 2024 franchise fees through the extension period. The city provided, and AT&T received, an estimate of that 2024 amount owed and has begun processing payment so it can provide prompt payment if council approves this extension. While several franchise terms continue to apply after the franchise expired, an extension ensures that all terms continue to apply. Attachments: Attachment 1 - Ordinance Packet Pg. 193 2.9.a ORDINANCE NO. AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, GRANTING TO NEW CINGULAR WIRELESS PCS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, SUCCESSOR IN INTEREST TO AT&T WIRELESS SERVICES OF WASHINGTON, LLC, AN OREGON LIMITED LIABILITY COMPANY, D/B/A AT&T WIRELESS ITS SUCCESSORS AND ASSIGNS, AN EXTENSION OF THE FRANCHISE GRANTED UNDER ORDINANCE 3441, ESTABLISHING AN EFFECTIVE DATE RECITALS WHEREAS, New Cingular Wireless PCS, LLC, successor in interest to AT&T Wireless Services of Washington, LLC, an Oregon limited liability company, d/b/a AT&T Wireless; its successors and assigns ("Permittee"), has an existing Master Use Agreement with the City of Edmonds that is ordinance 3441 (the "Underlying Agreement"), extended by Ordinance 4322, authorizing the installation of certain macro facilities in the city's right of way with a term of twenty years; and WHEREAS, the Underlying Agreement, as extended by Ordinance 4322, states an expiration of January 31, 2024; and WHEREAS, the City invoiced Permittee in December 2023 the amount of $4,900.05 for monies due under the Underlying Agreement, and Permittee has paid that amount; and WHEREAS, the City has begun the process of obtaining an appraisal; and WHEREAS, Permittee holds another franchise under Ordinance 3534 expiring in approximately one year; and WHEREAS, both Permittee and the City would like to sync the Underlying Agreement with the franchise held under Ordinance 3534; and WHEREAS, both Permittee and the City desire that the Underlying Agreement remain in effect for another several months to allow the City more time to explore funding for an appraisal and to sync the two franchises; and WHEREAS, the City Council has the authority under RCW 35A.47.040, RCW 35.99.020 and Chapter 20.50 of the Edmonds Community Development Code to grant franchise agreements for the use of city right-of-way. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON DO ORDAIN AS FOLLOWS: 1 Packet Pg. 194 2.9.a 1. Term Extended. The Master Use Agreement authorized by Ordinance 3441 (the "Underlying Agreement"), the term thereof extended by Ordinance 4322, is amended to further extend its term: the term shall extend through August 31, 2024. For the avoidance of doubt, while the effective date of this ordinance may be after January 31, 2024, both Permittee and City agree all franchise rights and obligations extend continuously through August 31, 2024. 2. Annual Compensation Prorated During the Extended Term. The annual compensation as provided for in the Underlying Agreement shall be prorated during the extended term authorized in Section 1 of this ordinance. This prorated annual compensation shall be due and payable to the City of Edmonds within thirty (30) days of Permittee's receipt of the City's invoice. The City's invoice may be sent to the following address: AT&T Mobility TAG - Lease Administration Re: Urgent — City of Edmonds Franchise Invoice 1025 Lenox Park Blvd NE 3rd Floor Atlanta, GA 30319-5309 An electronic copy shall also be sent by the City to Permittee's designated recipient. 3. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. 4. In all other respects, the Underlying Agreement between the parties is unchanged and shall remain in full force and effect. 5. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect five (5) days after the passage and publication of an approved summary thereof consisting of the title. [Remainder of Page Intentionally Left Blank] 2 Packet Pg. 195 2.9.a APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: JEFF TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO.: CITY OF EDMONDS MAYOR MIKE ROSEN ATTEST/AUTHENTICATED : CITY CLERK SCOTT PASSEY 3 Packet Pg. 196 2.9.a NEW CINGULAR WIRELESS PCS, LLC By: AT&T Mobility Corporation Its: Manager By: Print Name: Title: STATE OF ) ) SS COUNTY OF ) Date: Before me, , on this day personally appeared , known to me to be the person whose name is subscribed to this instrument and known to me to be the [insert title] of , and acknowledged to me that he/she executed the said instrument for the purposes and consideration therein expressed, on behalf of said corporation, and acknowledged the 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/she is authorized to execute the said instrument and that the seal affixed is the corporate seal of said corporation. Given under my hand and seal of office this day of 92024. My Commission Expires: Notary Public Printed Name 4 Packet Pg. 197 2.9.a SUMMARY ORDINANCE NO. of the City of Edmonds, Washington On the day of , 2024, the City Council of the City of Edmonds, passed Ordinance No. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, GRANTING TO NEW CINGULAR WIRELESS PCS, LLC, SUCCESSOR IN INTEREST TO AT&T WIRELESS SERVICES OF WASHINGTON, LLC, D/B/A AT&T WIRELESS, ITS SUCCESSORS AND ASSIGNS, AN EXTENSION OF THE FRANCHISE GRANTED UNDER ORDINANCE 3441, ESTABLISHING AN EFFECTIVE DATE The full text of this Ordinance will be mailed upon request. DATED this day of , 2024. City Clerk, Scott Passey 5 Packet Pg. 198