Interlocal Agreement for Development of the Edmonds Centre for the Arts Addendum 2ADDENDUM NO.2 TO INTERLOCAL AGREEMENT FOR DEVELOPMENT
OF THE EDMONDS CENTRE FOR THE ARTS
This Addendum 2 (this "Addendum") is made and entered into as of the 10 day of _
June , We among the City of Edmonds, a city duly organized and existing under
and by virtue of the laws of the State of Washington (the "City"); the Snohomish County
Public Facilities District, a municipal corporation duly organized and existing under the laws
of the State of Washington (the "County PFD"); Snohomish County, a political subdivision of
and duly organized and existing under the laws of the State of Washington and the Charter of
Snohomish County (the "County"); and the Edmonds Public Facility District, a municipal
corporation duly organized and existing under and by virtue of the laws of the State of
Washington, established by the City of Edmonds (the "City PFD").
RECITALS
A. The City, County PFD, County, and City PFD (collectively the "Parties") entered
into an Interlocal Agreement dated November 4, 2002, recorded with the Auditor of the County of
Snohomish, State of Washington under recording number 200211060003 (the "Interlocal
Agreement") to provide for the development of a Regional Center as defined in RCW 35.57.020
known as the "Edmonds Centre for the Arts" (the "Regional Center"); and
B. In 2005, the Parties entered into the First Amendment To Interlocal Agreement
For Development of the Edmonds Centre For The Arts to extend the required operational date
to March 31, 2007.
C. The County PFD, under the authority of RCW 82.14.390 has imposed a Sales
and Use Tax "Sales and Use Tax", a portion of which the County PFD has allocated and agreed
to contribute through intergovernmental project payments to the payment of debt service on the
bonds issued to finance the Regional Center in accordance with and subject to the terms and
conditions of the Interlocal Agreement, including without limitation, in accordance with the
schedule contained in Exhibit "B-1 ", of the Interlocal Agreement which payments extend to
December, 2026 (the "Tier 1 Allocation"); and
D. The County PFD entered into similar interlocal agreements to provide funding
for three (3) other regional centers, which were recorded with the Auditor of Snohomish
County under recording numbers 20021160349, 200212260514, and 200312260486 pursuant
to which the County PFD allocated and committed contributions from the Sales and Use Tax
for the payment of debt service on the respective bonds issued to finance the development
thereof, which when added to the Tier 1 Allocation shall be referred to herein as the
"Aggregate Tier 1 Allocations" (the Aggregate Tier 1 Allocations are in a fixed amount
allocated prior to the date of this Addendum); and
E. On March 2, 2009, the Parties amended the Interlocal Agreement through
Addendum No. 1 to provide for additional allocation of the Sales and Use Tax that exceeded
the Aggregate Tier 1 Allocations and created Aggregate Tier 2 Allocations to the four (4)
regional centers; and
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F. Pursuant to Chapter 164, Laws of 2017, the Legislature extended the time
period for the Sales and Use Taxes imposed under RCW 82,14.390 from a maximum 25-year
term to a maximum 40-year term; and
G. On July 19, 2018, the Board of Directors of the County PFD determined that
the Aggregate Tier 2 Allocations, as previously allocated should be extended through the
additional funding years of 2026 through 2041, subject to applicable terms and the Board of
Directors approved a revised allocation of the Sales and Use Tax revenue to reflect the 40-
year full term of the Sales and Use Taxes including the extended period authorized in the
2017 legislation which such Board action was incorporated into a Board Resolution on
October 25, 2018; and,
H. The Parties desire to amend the Interlocal Agreement by this Addendum to
provide for the extension of the time period for the Tier 2 Allocations and specify the certain
terms that the Board directed as part of the extension of Tier 2 Allocations,
NOW, THEREFORE, the Parties hereby agree as follows:
AGREEMENT
1. Continuation of Tier 2 Allocation. So long as the City PFD can and does
make lawful use of the funds to be contributed by the County PFD under the provisions of
RCW 82.14.390, as now or hereafter amended, and subject to continued compliance with all
of the terms and conditions of the Interlocal Agreement and this Addendum No. 2, the County
PFD shall allocate and contribute to the City PFD, twenty-one and nine -tenths percent
(21.9%) of the Aggregate Tier 2 Allocations. It is anticipated that on January 1, 2026, with
respect to the Snohomish County Regional Center and January 1, 2027, with respect to the
remaining local PFD Regional Centers, the County PFD commitments for Aggregate Tier 1
Allocations will be fulfilled and that from and after those dates as to those respective revenue
amounts received by the County PFD they will be considered as Tier 2 Allocation eligible
revenue subject to this Addendum.
2. Tier 2 Allocation Disbursement Schedule. Exhibit A attached to Addendum No.I is
hereby deleted and replaced by Exhibit A-1 attached hereto and incorporated by this reference.
3. Reallocation of Tier 2 Allocation. The Board of Directors has determined that
the allocation of Sales and Use Tax shall continue to each of the local public facility districts
and the County for its Aviation Museum and Conference Center so long as the bonded
indebtedness incurred to finance the respective regional centers remains outstanding. If the
bonded indebtedness for a local public facility district or the County, for its respective
regional center, is paid off, that allocated share of the Tier 2 Sales and Use Tax shall be
reallocated to the remaining parties receiving funding so that their funding shares will be
increased respectively while remaining in proportion to one another in the same relative
comparative shares as before the adjustment was made.
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4. Section H of the Interlocal Agreement, DURATION OF AGREEMENT, is hereby
revised in its entirety to state:
This Agreement shall continue in full force and effect until such time as all
bonds, short-term notes and other obligations issued by the City PFD for the
financing or refinancing construction of the Edmonds Centre for the Arts are fully
paid and redeemed or until December 31, 2041, whichever comes first.
5. Addendum Supersedes Inconsistent Provisions. This Addendum supersedes and
controls any inconsistent provisions in the Interlocal Agreement or any prior Addendum or
Amendment thereto.
6. Counterparts. This Addendum may be executed in any number of counterparts, each
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of which when so executed and delivered shall constitute an original, but all of which, when taken
together, shall constitute but one and the same instrument, and shall become effective when copies
hereof shall be delivered to each of the parties hereto, which copies, when taken together, bear the
signatures of each of the parties hereto.
This Addendum No. 2 shall become effective upon execution by each party and filing with
the Snohomish County Auditor as provided in RCW 39.34.040.
DATED this 10 day of
Attested:
City ler
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202.0
June 2a4j-?
EDMONDS PUBLIC FACILITIES DISTRICT
By:
LIP
CITY OF EDMONDS
Mi!6e Nelson, Mayor
Approved as to form:
By: Foc P. C _
Foster Garvey P.C., Bond C&Iiiscl
SNOHOMISH COUNTY PUBLIC FACILITIES
DISTRICT
13y:
St tven Shelton, Chairl6f Board of Directors
SNOHOMISH COUNTY
0
Dave Somers, County Executive
Approved as to form:
0
County Prosecutor
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EXHIBIT "A-1"
Tier 2 Distribution Schedule
The County PFD shall disburse to the City PFD, the amount of the Tier 2 Allocation then
on deposit from Sales and Use Tax revenues on deposit in semi-annual payments on May 1 and
November 1 of each year, commencing November 1, 2008, through the year 2026; from January 1,
2027 through December 2041, the Tier 2 Allocation shall be made on a monthly basis; in either
case, payments before 2026 or after shall be made , so long as the bonded indebtedness incurred to
finance or refinance the Regional Center remain outstanding.
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