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HomeMy WebLinkAboutR-2009-056 Property Purchase 3rd and Walnut; 191319-24459; Washington State Department of EcologyRESOLUTION NO. R-2009-56 A RESOLUTION authorizing and directing the City Manager to execute an option with the owners of the property at 3rd Street and Walnut Street (Assessor's Parcel No. 191319-24459) to purchase the property and to formalize and execute a Prospective Purchasers Agreement ("PPA") with the Washington State Department of Ecology pnor to the City exercising the purchase option. WHEREAS, the City of Yakima has evaluated the acquisition of the property located at 3rd Street and Walnut Street (Assessors Parcel No. 191319-24459); and WHEREAS, an option to purchase the property provides the City with the opportunity to consider potential issues related to acquisition that have come to light from a prior Phase I environmental analysis; and WHEREAS, due diligence requires more advanced environmental analysis encompassing inspections, surveys and environmental assessments, including but not limited to excavation and drilling for purposes of groundwater sampling, testing and monitoring and for purposes relating to working with the Washington State Department of Ecology to formalize and complete a "Prospective Purchasers Agreement" ("PPA") concerning the subject property, which PPA shall be entered and executed prior to the City's exercise of the purchase option; and WHEREAS, the City has conferred with the representative of the owners of the property on several occasions and discussed the prospect of an option to purchase the property, the necessary environmental analysis and the PPA required by the Department of Ecology, now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is herby authorized and directed to execute an option to purchase the subject property at 3nd Street and Walnut; prior to exercising the purchase option, to meet the City's due diligence responsibilities, the City Manager is further authorized and directed to execute a PPA with the Department of Ecology in compliance with Washington law in order to provide for the necessary environmental analysis of the subject property. Subject to the satisfactory completion of all conditions of said option, the City Manager is authorized to take all necessary action to acquire the subject property under the conditions set forth in the option. ADOPTED BY THE CITY COUNCIL this 71 day o , 2009. Citv Clerk avid Edle yor After recording, return to Russell H Gilbert Lyon, Weigand & Gustafson PS PO Box 1689 Yakima, WA 98907-1689 OPTION TO PURCHASE 111* 1111111 Hill llll]lL IIEI FILE# 7663194 YAKIMA COUNTY, WA 08/06/2009 02.49 11PM MISCELLANEOUS PAGES: 4 LYON LAU OFFICE Recording Fee 65.00 GRANTORS: Margaret L. Keuler GRANTEE: City of Yakima, a municipal corporation LEGAL DESCRIPTION (abbreviated): Lots 13-16, Block 73, recorded in Volume "A" of Plats, Page 10 and re-recorded in Volume "E" of Plats, Page 1 ASSESSOR'S PARCEL NO. 191319-24459. For and in consideration of the sum of ONE THOUSAND AND 00/100 DOLLARS ($1,000.00), receipt of which is hereby acknowledged, MARGARET KEULER, who agrees and acknowledges that for purposes of providing notice as hereinafter specified her address is 801 N.W. 175th, Seattle, WA 98177, hereinafter referred to as "Grantor", hereby grants to the CITY OF YAKIMA, a Washington municipal corporation, hereinafter referred to as "the City," the exclusive right and privilege from this date until September 30, 2009, to purchase the following real property, situated in Yakima County, Washington, and which is legally described as follows. Lots 13, 14, 15 and 16, Block 73, Town of North Yakima, now Yakima, Washington, as recorded in Volume "A" of Plats, Page 10 and re-recorded in Volume "E" of Plats, Page 1, records of Yakima County, Washington. Assessor's Parcel No. 191319-24459. At any time during the term of this Option to Purchase, but no later than twenty (20) days prior to the expiration of this Option to Purchase, the City shall provide notice of its intent to purchase the property. Said Notice shall be given by certified mail, return receipt requested, postage prepaid, addressed to Grantor at her address appearing above, subject to the right of Grantor to designate by notice in writing to the City a different address to which OPTION TO PURCHASE - 1 said Notice shall be sent. Alternatively, notices may be personally served upon Grantor in the same manner as is required for original service of Superior Court summons and complaint by the laws of the State of Washington. Such service to be complete at the time of delivery or mailing. At such time as the City provides notice of its intent to exercise this Option to Purchase, the terms of the sale shall be: The total purchase price shall be cash only in the amount of three hundred and forty thousand dollars ($340,000.00), with a credit towards the purchase price for the $1,000.00 consideration above received, and closing on the property shall take place within forty-five (45) days after the City notifies Grantor of its intent to exercise this Option, unless the Parties shall agree in writing otherwise. In the event that the property sale does not close due to circumstances beyond the City's control, then Grantor shall refund to the City the amount received as Option consideration. Within five (5) days after the City's notification to Grantor of its intent to exercise this Option, Grantor shall, at her own expense, deliver to the City a currently extended abstract of title to the subject property and the City shall have ten (10) days from date of receipt with which to examine it. If the title to the premises is found defective, Grantor shall, within five (5) days (or such additional time as may be reasonable under the circumstances) after receipt of written notice from the City specifying the defects in the title, perfect the title at her own expense, and the closing of this purchase shall be deferred until title has been perfected. The City shall have the option of waiving or curing any defects, but reserves the right to specific performance All taxes and assessments on the subject premises due and owing for prior years shall be paid by Grantor and all taxes and assessments due and owing for the year in which the City exercises this Option shall be prorated as of the date of closing. Excise tax and the cost of obtaining title insurance shall be paid for by Grantor. All other closing costs shall be shared equally by the Parties This Option shall run with the land and shall both bind and benefit the respective heirs, representatives, successors and assigns of Grantor and the City. During the Option period, Grantor grants to the City the right to enter the real property to conduct inspections, OPTION TO PURCHASE - 2 surveys and environmental assessments, including but not limited to excavation and drilling for the purposes of groundwater sampling, testing and monitoring and for purposes relating to working with the Washington State Department of Ecology to formalize and complete a Prospective Purchasers Agreement ("PPA") concerning the subject property in compliance with Washington law, which shall be entered and executed prior to approval of the exercise of the Option by the City Council. During the Option period, Grantor further grants to the City the right to use the property for the purpose of satisfying the PPA requirements. This Option may be extended by mutual agreement of the parties. DATED this gay of July, 2009 GRANTOR CITY OF YAKIMA a Washington Municipal Corporation a C C��GcL-�i c- By Margar . Keuler, Dick Zais as her s-parate estate City Manager STATE OF WASHINGTON ) ) ss. County of 1, I certify that I know or have satisfactory evidence that Margaret L. Keuler, is the person who appeared before me, and said person acknowledged that she signed this instrument and acknowledged it to be her free and voluntary act, for the uses and purposes mentioned in the instrument. GIVEN UNDER my hand and official seal this Z�t- of July, 2009. OPTION TO PURCHASE - 3 (Printed Name) Notary Public in and for the State of Washington, residing at ! --Q Coe/ My commission expires ct STATE OF WASHINGTON ) ss. County of Yakima On this day personally appeared before me Dick Zais to me known to be the City Manager of the City of Yakima, the Washington municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument. GIVEN under my hand and official seal this lb day of July, 2009 SOIL. �� � OR OPTION TO PURCHASE - 4 (Printed Name) Notary Public in and for the State of Washington, residing at My commission expires . c V1 cog- AUG -I3-2009 THU 08:49 AM PACIFIC ALLIANCE,TITLE, FAX NO, 509 2488924 P. 03 OPTION TO PURCHASE LANDS THE ROCKY MOUNTAIN ELK FOUNDATION, INC., a Montana non-profit corporation, whose address is 5705 Grunt Creek Road, Missoula, Montana 59808, hereinafter known as "SELLER"", in consideration of ONE HUNDRED AND NO/100 DOLLARS (5100.00) to be credited towards the purchase price upon WDFW's eloction to purchase and the receipt and adequacy of which is hereby acknowledged, do hereby grant unto THE STATE OF WASHINGTON, THE DEPARTMENT OF FISH AND WILDLIFE, hereinafter known as "WDFW", the exclusive right and option (this "Option") to purchase the lands hereinafter described, together with all and singular the tenements, hereditaments and appurtenances, including easements, any and all shorelands and bedlanda, Umber nghts, mineral rights or water rights, thereunto belonging or in anywise appertaining collectively hereinafter referred to as the "Propcny", subject to the terms and conditions herein set forth for FIVE HUNDRED SEVENTY-SEVEN THOUSAND FIVE HUNDRED TWELVE DOLLARS (S577,512.00), said lands being situated itt Yakima County, State of Washington, and bcing more completely desoribed as follows: All or Section I, Township 15 North, Range 15 East, W.M. SELLER and WDFW, by executing this instrument, mutually covenant and agree on the following terns and conditions of this Option: I. All rights of WDFW heron shall he forfeited, and both parties shall be rotieved of any obligation or responsibility if WDFW shall fail to exercise this Option to purchase by September 24, 2008, and the transaction should fail to close by September 30, 2008. This Option is contingent upon SELLER acquiring, or securing assignable rights to acquire, the Property. 2. Upon election to purchase, WDFW shall notify SELLER in writing and prepare, or cause to be prepared, a Statutory Warranty Deed transferring title to the Property to WDFW, and submit acme to the designated escrow agent of WDFW's selection. SELLER agrees to share the escrow fel' on an equal basis with WDFW. 3. Upon request, SELLER will nnmediutely cause the executed Deed to be delivered to the designated escrow agent. The recording fee will be paid by WLFW 4. WDFW will acquire, and pay the cost of, n title insurance policy, said policy to insure title to thc Property in the State of Washington, the Department of Fiah and Wildlife, free and clear of all encumbrances and defects except the following: u) Easement recorded under Auditor's File No. 2710774 b) Pendency of Yakima County Superior Court Cause No. 77-2-12484-5, recorded under Auditor's File No. 2479271. 5. All taxes and assessments duo, owing, or levied for the ycnr in which title is transferred shall he prorated between SELLER and WDFW as of the Jute of transfer of title. WDFW will pay tho real estate excise tax. 6. Upon recording of said Deed and confirmation by the title insurance company that the title insurance policy will be issued to WDFW subject only to the above stated exceptions, the transaction will close and SELLER'S proceeds, less all charges and pro -rations payable by SELLER, shall be disbursed to SELLER, WDFW shall have possession of the Property upon closing. 7. SELLER will do or suffer no act to be dune which will diminish the value of the Property during thc life of thie Option, and all necessary precautions will be taken to protect the Property Optivn iu Purcluac Lands Wpt:VUR,rlgF Page I ur3 AUG -13-2009 THU 08:49 AM PACIFIC ALLIANCE.TITLE, FAX NO. 509 2488924 P. 04 from damage by fire, trespass or other cause. 8. SELLER shell indemnify, defend and hold WDFW harmless from, and against, any claim or demand made by any real estate broker, agent, or finder, claiming to have dcult or consulted with the parties in curtnectinn with the sale ot'the Property by SELLER to WDFW If SELLER has entered into a contract with a real estate broker, or any other person, which ;takes this transaction subject to a commission or fee, said commission or fee shall be the sole responsibility of the SELLER and shall be discharged at closing from SELLER'S proceeds. 9, SELLER hereby gives assurances that SELLER does not know of the release of any hazardous substances on the Property. Furthermore, SELLER warrants that SELLER has not personally disposed of any hazardous substances ort theProperty 10, In the event of a lawsuit involving this Option, jurisdiction and venue shall be proper only in the State of Washington, Thurston County Superior Court. 11. This instrument contains the entire agreement between the parties, and nu statement, promise, representation, inducement or agreement madc by WDFW or its agents or employees that are not contained in this instrument shall be valid, binding or enforceable. By signature below, the parties warrant that they have read and understood this instrument and agree to be bound by its terns, . THERE NO Vit BAL O' ER AGRI? ENTS R CH DIFY 0, FE'r THIS OPTION, IN WITNESS WHEREOF, the parties herein have caused this instrument to be executed as below subscribed. ROCK K FOUNDATION, INC., a Montana non-profit corporation Rodney!. Trteplce, Chief Operating Officer Date THE STATE OF WASHINGTON, THE DEPARTMENT OF FISH AND WILDLIFE Jennifer Qunn, Lands Division Manager Date Option to Purchase Land W DFW/RMEF Pap 2 of A•UG_ 13-2009 THU 08:50 AM PACIFIC ALLIANCE .TITLE , STATE OF MONTANA )ss County of Missoula FAX NO. 509 2488924 P. 05 1 ccnify that 1 know or have sutistactery evidence that Rodney J. Triepke signed this Instrument, on oath stated that he was authorized to execute the instrument at the Chief Operating Officor of ROCKY MOUNTAIN ELK FOUNDATION, INC., a Montana non-profit corporation, and acknowledged it to be his free and voluntary act for tho uses and purposes mentioned in the instrument. GIVEN under my hand and official senl this leday of , 2008. Notary Public in and for the State of Nieman residing ut M `s Us31 a{ –1— My appointment expires -- __?;11 4 1")0 I STATE OF WASHINGTON ) )ss County of Thurston ) JENNIFEF1BAHNFI.ETH NOTARY PUBt.UOMMONTANA Rodding at Mhwula, montane My comm. E.ptw ` o,.12Gzj 1 certify that l know or have satisfactory evidence that Jennifer Quan signed this instrument, on oath stated that she was authorized to execute the instrument as the Lands Dtviston Manager of the Washington State Dcpadrnent of Fish and Wildlife and acknowledged it to be her fru: and voluntary act fat the uses and purposed mentioned in the instrument. GIVEN under my hand and official seal this day of , 2008. Notary Public in and for the State of Washington, residing nt My appointment expit es Option to Purolin io l.m ds WDFW/RMEF Page 1 of 3 AUG -13-2009 THU 08:50 AM PACIFIC ALLIANCE TITLE, FAX NO. 509 2488924 P. 06. Roturn Adam • Flax paint neatly or rypo lolognmInn SI) (- j ata 1 ill 117 115 i9I11 l IIii'�IiiiI lilt Illlll III( till FILED 7628322 YAKIHA COUNTY, WA 09/25/2008 03:12:19P11 OEE0 MES. 1 Retarding Fee: 15.00 Eaoedtte Fee: 50.00 PRt1FIC r0ilieCE I1n.E COMM Document I Title'.SIa`r,b1TiD II) eikfl►U 1 0rj0 Reference 11's: Addtliaoel reference tli on pnrc Qrantors. Crran(c: Ci Q� LA‘ 1;;/11. Il��4 e4 F1SilIt)1A1,,:-Qe. Additional ¢Hewn un poet additional grantaal rat One Document 2 Tula: Reference We: Addubtwl rcfcranoa We on peso Grantors: Grenteta: Additional grantors on page additional grantors on page Legal DeeCription (abbreviated fern: i.e. lot, blk, plot or S.T.Rquanerlquarter) , f,)yc( S.4,7 Pi -AU' I AILS as Addtnonel legal is on pago�_, Aawgsor'a Property Tax Parcel/Account Number (e16-0-0— j1 f5 /—/acol 11,1-.1rs—eg-aor.► 1.Gbel Emergency nonstandard document recording: I am requesting an emergency nonstandard recording for an additional fee as provided in RCW 36.18.010. I understand that the recording processing requirements ;may cover up or otherwise obscure some part of the text of the origi al document. Signature: / (A_ el,� The Auditor/Rounder will rely on the information provided on the form. Tho ztoft wit; not read ma document to verify the accurocy or romplme,uae or the indaning informotron pmvidoti herein. Yakima county Auditor Fila C 7628322 Page 1 at 4 PUG -13-2009 THU 08:50 AM PACIFIC ALLIANCE.TITLE Arm,- liocureln: Return To: Wathlngtoo Oepartmmtt o(Fh1, and \YlInhic Real Estato Scrvlcas 6UU cr pltol Way North Olympia, WA 9I SU 1-1091 Asto. Thhsn %RAN ' FAX NO, 509 2488924 P. 07 Document Title: SWtuvOry Wurraut) Dead Relcrence No. 01' Related Document. Grantor: The City of Ynktmu Grunter: The State of Wnshingluu, the Dopnrtment of rislt and Wildlife Legal Description: Ptn SW114 5. 27; Ptu S.34; Pt11 S. 35, all TISN, R16E, W.M. Aascssur Parcel Nos.: 161527-33001; 161534-12001, 161535-22001; & 161535.23001 County. Yakima STATUTORY WARRANTY DEED The Grantor, THE CITY OF YAKIMA, a Municipal Corporation, for and in consideration of ONE MILLION THREE HUNDRED THOUSAND DOLLARS (S3.,300,000.00), conveys and warrants to THE STATE OF WASHINGTON, THE DEPARTMENT OF FISH ANI) WILDLIFE, the real estate more fully described on the attached Exhibit A (the "Property") and situated in the County of K.ittitas, State of Washington: TUGETUER WITH: AU and singular the tenements, hereditaments, and appurtenances thereunto belonging or in anywise appertaining. And further, for the consideration aforesaid, the Grantor above named hereby conveys and quit claims into The State of Washington, The Department of Fish and Wildlife, its successors and assigns, all right, title, and interest which Grantor may have w and to the banks, buds and waters of any streams, or any lands not adequately described, opposite or fronting upon the fee lands above described and in any alleys, roads, streets, ways, strips, gores, Or railroad rights-of-way abutting or adjoining said land and in any means of ingress and egress appurtenant thereto. SUBJECT TO: Existing easements for public roads, public highways, public utilities, railroads and pipelines; reservations, exceptions and any other outstanding rights contained in or referred to in patents issued by The United States. ALSO SUBJECT TO: a) Easements or right-of-ways for necessary canals, tunnels or other water conduits and for telephone and transmission lines required in connection with the Selah Valley Canal Company, as disclosed by instruments of record; b) Easement recorded under .auditor's Filo No. 3098099; c) Pendency of Yakima Superior Court Cause No. 77-2-01484-5; and, d) Unrecorded Oil and Gas Lease between the State of Washington and Encana Oil and Gas (USA) Inc., Lease No. 25480.000, Lease Name ST WA 63 075079, dated August 1, 2005, for u term of ten (10) years. Y A Dated this'dny af008. A 0 Paye 1 of3 T Y Yakima County Auditor Ftle 0 7628322 Pose 2 of 4 REAL EST'fE ENBISE i•AX PAID AMT�C11 L DATE SEP 2 6 2008 Air: 404629 BY IL.ENE THOMSON, TREASURER IN A N a 0 N AUG -13-2009 THU 08:50 AM PACIFIC ALLIANCE TITLE FAX NO. 509 2488924 P. 08. The City of k akinta, a Municipal Corporation By: -. Title: 71e7A STATE OF WASHINGTON ) Vt- I )ss COUNTY OF certify that l know or have satisfactory evidence that DQE 2411 is the person who appeared before mc, and said person acknowledged that 4ihe/he signed this instrument, on oath stated that she/he was authorized to execute the instrument and acknowledged it as the f The City of 'Yakima, to be the free and voluntary act of such party fo the ses and purposes mentioned in the instrument. GI) N under my hand and oftici se l this. qday of / f 1, 2008. Notary Public in and for the State of (,UA4111 _ residing ut /1/p- Vly oppointnent expires All 1(7 Yanlrnn County audhor Pug 2 of 3 Fila d 7E26322 Pare 3 of 4 AUG -13-2009 THU 08:51 AM PACIFIC ALLIANCE TITLE FAX NO, 509 2488924 P. 09 EXHHCBIT A Lai cel,A That porion of the Southwest quarter of Section 27, Township 15 North, Range 16 East, W.M., described is tollows; Beveling at thc Southwest comer of said section, thence North1650 feet; thence Southeasterly 2335 feet, thence West 1650 fact to the point of begtmmng. arceI 13 The Southeast quarter of the Northeast quarter, the West Half of the Northeast quarter, the Southctst quarter of the Northwest Quarter, and the North Half of the Northwest quarter, ALL in Section 34, Township 15 North, Range 16 East, W.M., EXCEPT the Right-of-way for State Highway 410; AND EXCEPT: Beginning 1130 feet East and 291 feet South of the Northwest corner of said Section 34, thence South 35°28' East 583.8 feet; thence North 54°32' East 285 feet; thence North 35°23' West 538.8 feet; thence South 54°32' West 235 feet to the point of beginning. Parcel C That portion ol'Scotion 35, Township 15 North, Range 16 East, W.M., described as follows! that portion of thc Southeast quarter of the Northwest quarter of said Section 35 lying Northerly of the Selah Valley Canal and Southerly of the State Route 410 right-of-way; AND; that portion of the West Half of the Northwest quarter and the Northwest quarter of the Southwest quarter lyinu Northerlyof the South bank of the Nachos River EXCEPT that portion of said Southwest quarter of the Northwest quarter lying Southerly of State Route 410, Northerly of the Selah Valley Canal and Westerly of the following described line: Beginning at a point on the West line of said Northwest quarter at the Southerly right-of-way line of State Route' 410; thence South 79°44' East 653.33, thence South 06°55'12" West to the Salah Valley Canal and the end of said line, AND EXCEPT the State Route 410 right-of-way. •'areal I) That portion ate Southwest quarter of the Northwest quarter of Section 35, Township 15 North, Range 16 East lying South of State Route 410, North ot'dte Salah Valley Canal and West of the following described line: Beginning on the South right-of-way tine of State Route 410 and the West line uC said Northwest quarter; thence South 79°44' East 653.33 feet; thence South 06°55'12" West to thc Sclah Valley Canal and the end of said line. Alt situate in the County of t akrtna, State of Washington. Y°kIme County Auditor Page 3 of 3 Fllu M 7526322 Popo 4 of 4 nuu-IJ-cUUd In U0.01 all rnulrlu I'1LLlnn.L I11Lc. Senor: CITY OF YAK.u91A Property Address: rnA nu. Duo CLIOOCC4 F. IU Pacific Alliance Title, LLC 311 N. 4th Street, Suite 102 Yakima, WA 98901 (509) 225-6809 SELLER'S CLOSING STATEMENT ESTIMATED PIICA STATE ROUTE 410 YAKIMA COUNTY, WA 98901 Escrow No: 01014100 -001 -SS Close Dote: 09126t2008 Proration Date : 09/26/2008 Date Prepared 09/25/2008 •.•_.: '°• .N.i)-13YC l e-� rNr '.$11-1, r..�;,..j' x "�T ,' f,,. { !; c' 1r:,, ebl .�....r EF � � �h _ 'IFJ� CEJ. .. �J f' 5.�i` �'t� _ �i 4•s vet- if �'� .l'.rl2:P:��` .,-.' d'1 TOTAL CONSIDERATION. Total Consideration 1,300,000.00 TITLE CHARGES: Title Insurance Fees to Pacific Alliance Tftle, LLC 1,615.00 Title Sales Tax to Pacific Alliance Title, LLC 132.43 RECORDING FEES: Process Excise Tax to Yakima County Treasurer 10.00 ESCROW CHARGES: Escrow Fee to Pacific Alliance Title 1,087.50 Sales Tax to Pacific Alliance Title, LLC 89.18 Sub Totals 2,934.11 1,300,000.00 Proceeds Due Seller 1,297,065.89 Totals 1,300,000.00 1,300,000.00 Page 1 of 1 Borrower.. 11UU-JD-0000 lnu UD• 1111 rrlvlrly r1LL1n11LE. 111 LL r 11A lrv, )UO G 'WOOL _'acific Alliance Title, LLC 311 N. 4th Street, Suite 102 Yakima, WA 98901 (509)225.6809 BORROWER'S CLOSING STATEMENT FINAL WASHINGTON DEPARTMENT OF FISH AND WILDLIFE Property Address: NKA STATE ROUTE 410 YAKIMA COUNTY, WA 98901 Escrow No: 01014100 -001 -SS Close Date: 09/26/2008 DishurselncnI Date: 09/26/2008 Date Prepared: 10/08/2008 De9cription" . ' - - : Debit" Credit - DEPOSITS: Total Consideration 1,300,000.00 PRORATIONS AND ADJUSTMENTS: Deposit 1,301,220.68 RECORDING FEES: Recording Fee to Pacific Alliance Title L.L.C. 44.00 Deed: 0 pages @ $44.00 ESCROW CHARGES. Escrow Fee to Pacific Alliance Title 1,087.50 Sales Tax to Pacific Alliance Title, LLC 89.18 Sub Totals 1,301,220.68 1,301,220.68 Totals 1,301,220.68 1,301,220.68 Page 1 of 1 HUT,-1J-AUUy IHU UIS:5l Hfl YHUIrIU HLLIHNUt 11ILt PACIHC ALLIANCE TITLE t HIS NU. DUy C4bne4 r. 1 DISCLOSURE NOTICE September 24, 2008 Escrow No. 01014100 Pacific Alliance Tide, LLC has been requested to act as the closing agent in the above referenced transaction. The closing officer, certified under the Limited Practice Rule as set forth by the Washington Supreme Court, may select, prepare and complete documents in forms as approved by the Limited Practice Board for use in closing a loan, extension of credit, sale or other transfer of real or personal property, such documents shall be limited to deeds, promissory notes, guarantees, deeds of trust, reconveyancea, mortgages, satiafactions, security agreements, releases, Uniform Commercial Code documents, assignments, contracts, real estate tax affidavits, and bills of sale. Other documents may be approved from time to time by the Board with the concurrence of the Washington Supreme Court In connection with the Limited Practice Officer's selection, preparation, and completion of the documents as required in this escrow, we wish to advise you of the following; 1. The Limited Practice Officer is not acting as the advocate or representative of either (or any) of the parties. 2. The documents prepared by the Limited Practice Officer will affect the legal rights of the parties. 3 The parties' interests in the documents may differ. 4 The parties have a right to be represented by lawyers of their own selection. 5 The Limited Practice Officer cannot give legal advice as to the manner in which the docuorents affect the pies. P YOU WISH TO HAVE YOUR DOCUMENTS AND INSTRUMENTS PREPARED BY AN ATTORNEY OF YOUR CTIOICE, PLEASE NOTIFY TUE CLOSING OFFICER IMMEDIATELY. All of the documents, which have been, or will be prepared in connection with this escrow will be available for review by each party or their lawyers prior to their execution. To review documents, please contact the Closing Officer. IF YOU DO NOT UNDERSTAND THIS TRANSACTION, PLEASE SEEK TILE ADVICE OF INDEPENDENT LEGAL COUNSEL. TUE LIMITED PRACTICE OFFICER CAN NOT GIVE YOU LEGAL ADVICE. 1111', DOCUMENTS TO ISE PREPARED IN EJ ❑ 0 STATUTORY WARRANTY DEED EXCISE TAX AFFIDAVIT PROMISSORY NOTE DECO OF TRUST REQUEST FOR FULL RECONVEYANCE REAL ESTATE CONTRACT WARRANTY FULFILLMENT DEED Pacific Alliance Tide, LLC BY Limited Practice Officer LPO NUMBER 2541 THIS TRANSACTION ARE AS FOLLOWS: ❑ APPLICATION FOR CERTIFICATE OP TITLE ❑ MOBILIi HOME EXCISE TAX AFFIDAVIT ❑ RELEASE OF INTEREST ❑ BILL OP SALE ❑ MOBILE HOME TITTLE ELIMINATION CERTIFICATE ❑ SECURITY AGREEMENT ❑ NO DOCUMENTS WERE PREPARED Uwe have bean afforded adequate time to read and understand the above disclosure, as evidenced by my/our signature below, Uwe acknowledge receipt of a copy of the above notice. Received this day of j—'( CITY OF YA Vl4I,nlur�. 311 North Fourth Street, Suite 102 Yakima, Washington 98901 TEL 509/225.6809 • 866/202.4619 • FAX 509/248.8924 WASHINGTON DEPARTMENT OF FISH AND 1001 Yakima Valley Highway / PO Box1530 Sunnyside, Washington 98944 TEL 509/839.4787 • 800/213.2642 • FAX 509/837,7508 AUG-13-CUU9 lHU U8:52 AM NAUIFIU ALLIANCE TITLE PACIFIC ALUANC[ TITIF FAX NU. bUU 24t3tiyC4 Y. 14 PURCHASERS; WASHINGTON DEPARTMENT OF F1S11 AND WILDLIFE ESCROW NO, 01014100 SELLERS: CITY OF YAKIMA CLOSING AGREEMENT AND ESCROW INSTRUCTIONS For Purchase and Sale Transaction The undersigned buyer and seller (referred to herein as "the parties") hereby designate and appoint Pacific Alliance Title, LLC (referred to herein as "the closing agent") to act as their closing and escrow agent according to the following agreements and instructions. IT IS AGREED, AND THE CLOSING AGENT IS INSTRUCTED, AS FOLLOWS: Terms of Sale. The terms and conditions of the transaction which is the subject of these instructions (referred to herein as "the transaction") are set forth m the parties' Purchase and Sale Agreement, Earnest Money Agreement, or other written agreement, and any attachments, amendments or addenda to that.agreement (referred to hereiu as "die parties' agreement"), which is made a part of these instructions by this reference. Any changes to the parties' agreement will be made a part of these instructions, without further reference, when signed by the parties and delivered to the closing agent. These instructions are not intended to amend, modify or supersede the terms and conditions of the parties' agreement and if there is any conflict or inconsistency between these instroctiona and the parties' agreement, the terms and coaditious of the parties' agreement shall controL Description of Real Property. Tho real property which is the subject of the transaction (referred to herein as "the property") is identified in the parties' agreement. The documents required to close the transaction must contain the "legal description" of the property If the parties' agreement does not yet contain the correct legal description, the parties or the real estate agent shall obtain an addendum setting forth the legal description as soon as possible and deliver it to the closing agent. Closing Date. The date on which the documents required to close the transaction are filed for record (referred to herein as "the closing date") shall be on or before the date for closing .of the transaction specified in the parties' agreement unless the closing date falls within the three-day rescission period after delivery to the buyer of an amended real property transfer disclosure statement, in which case the closing date shall be extended until the expiration of the three-day rescission period. Documents. The closing agent is instructed to select, prepare, correct, receive, hold, record and deliver documents as necessary to close the transaction. The closing agent may request that certain documents be prepared or obtained by the parties or their attorneys, in which case the parties shall deliver the requested documents to the closing agent before the closing date. Execution of any document will be considered approval of its form and contents by each party signing such document Deposits and Disbursement of funds. Before the closing date, each party shall deposit with the closing agent all funds required to be paid by such party to close the transaction, less any eameat money previously deposited with the real estate agent The closing agent is authorized, but not required, to consider a lending institution's written counnitment to deposit funds as the equivalent of a deposit of such funds, if all conditions of the commitment will be met on or before the closing date. All funds received by the closing agent shall be deposited in one or more of its escrow or trust accounts with any bank doing business in the State of Washington and may be transferred to any other such accounts. The closing agent shall not be required to disburse any funds deposited by check or draft until it has bean advised by its bank that such check or draft has been honored. All disbursements shall be made by the closing agent's check Settlement Statement. The closing agent is instructed to prepare a settlement statement showing all funds deposited for the account of each of the parties and the proposed disbursements from such funds. No funds shall be disbursed until the parties have examined and approved the settlement statemeut Some items may be estimated, and the fuel amount of each estimated item will be adjusted to the exact amount required to be paid at the time of disbursement The settlement statement will be subject to audit and any errors or omissions may be corrected at any time. If any monetary error is found, the amount will be immediately paid by the party liable for such payment to the party entitled to receive it. Prorntions. Adjustments or pro -rations of real estate taxes, and other charges if any, 0h911 be made on a per -diem basis using a 365 day year, unless the closing agent is otherwise instructed Title Insurance. The closing agent is instructed to obtain and forward to the parties a preliminary commitment for title insurance on the property and on any other parcel of real property that will be used to secure payment of any obligation created in the transaction (referred to herein as "the title report'). The closing agent is authorized to rely on the title report in the performance of its duties and shall have no responsibility or liability for any title defects or encumbrances which are not disclosed in the title report. Verification of Existing Encumbrances. The closing agent is instructed to request a written statement from the holder of each existing encumbrance on the property, verifying its status, terms, balance owing and, if it will not be removed at closing, the requirements that must be met to obtain a waiver of any due -on stile provision. The closing agent may rely upon such written statements in the performance of its duties, without liability or responsibility for their accuracy or completeness. 1 916 VIvion Foran SE191 WA RN. 11/97/99 AUG -13-2009 'fHU UB:b3 AM FACIE le ALLIANCE TITLE: MX NU. 509 24813924 N. 15 Inatructions From Third Parties. If any written instructions necessary to close the transaction according to the parties' agreement are given to the dosing agent by anyone other than the parties or their attorneys, innloding but not limited to lenders, such instructions are accepted and agreed to by the parties. Disclosure of Information to Third Parties. The closing agent is authorized to furnish, upon request, copies of any closing documents, agreements or instructions concerning the traruection to the parties' attorneys, and to any real estate agent, lender or title insurance company involved in the transection. Other papers or documents containing personal or financial information concerning any party may not be released to anyone other than the party's attorney or lender, without prior written approval. Potential Legal Problems. If the closing agent becomes aware of any facts, circumstances or potential problems which, in its opinion, should be reviewed by any of the parties' attorneys, the dosing agent is authorized, in its sole discretion, to advise the parties of such facts, circumstances or potential problems and recommend that legal counsel be sought Closing Agent's Rees and Expenses. The closing agent's fen is intended as compensation for the services set forth in these instructions. If additional services are required to comply with any change or addition to the parties' agreement or these insauctions, or as a result of any partys assignment of interest or delay in performance, the parties agree to pay a reasonable additional fee for such services. The parties shall also reimburse the closing agent for any out-of-pocket costs and expenses incureed by it under these instructions. The closing agent's fees, costs and expenses shall be due and payable on the closing date or other terminatio of the closing agent's duties and responstbdities under these instructions, and shall be paid one-half by Ilse buyer and one-half by the seller unless otherwise provided in the parties' agreement. Cancellation. These instructions may be canceled by a written agreement, signed by all of the parties, and payment of the closing agent's foes, costs and expenses Upon receipt of such agreement and payment, the closing agent shall return any money or documents then held by it to the parties that deposited the same, and shaU have no further duties or responsibilities under these instructions. Inability to Comply With Instructions. If the closing agent receives conflicting instructions or determines, for any reason, that it cannot comply with these instructions by the date for closing specified in the parties' agreement or in any written extension of that date, it shall notify the parties, request further instruction, and in its discretion (1) continue to perform its duties and close the transaction as soon as possible after receiving further instructions, or (2) if no conflicting instructions have been received, rexum any money or documents then held by it to the parties that deposited the same, leas any fees and =menses chargeable to such party, or (3) commence a court action, deposit the money and documents held by it into the registry of the court, and ask the court to determine the rights of the parties. When the money and documents have been returned to the parties or deposited into the registry of the court, the closing agent shall have no further duties or responsibilities tinder these instructions. Disputes. Should any dispute arise between the parties, or any of them, and/or any other party, concerning the property or funds involved in the transaction, the closing agent may, in its sole discretion, hold all documents and funds in their existing status pending resolution of the dispute, or join or commence a court action, deposit the money and documents held by it with the court, and ask the court to determine the rights of the parties. Upon depositing said funds mad documents with the court, the closing agent shall have no further duties or responsibilities under these instructions. The parties jointly and severally agree to pay the closing agent's costs, expenses and reasonable attorneys fees incurred in any lawsuit arising out of or in connection with the transection or these instructions, whether such Lawsuit is instituted by the closing agent, the parties, or any other person. Notices. Any notice, declaration or request made under these instructions shall be in writing, signed by the party giving such notice or making such declaration or request, and personally delivered or mailed to the closing agent and other parties at their addresses set forth in these instructions. Definitions. Any amendment, addition or supplement to these instructions must be in writing, signed by the appropriate parties and delivered to the closing agent Counterparts. These rnstnactions may be executed in one or more counterparts with like effect as if all signatures appeared on one copy. Effect. These instructions shall bind and benefit the parties, the closing agent, and their successors in interest Definitions. When used herein or in any amendment , addition or supplement hereto, words and phrases are defined and are to be construed as follows: The words "buyer" and "seller" refer to all persons and entities identified as such by their signatures on this document, jointly and severally unless otherwise indicated, and shall be construed interchangeably with other similar teems such as "purchaser," "vendee," "vendor," "grantee" or "grantor" as may be appropriate in the context and circumstances to which such words apply The word "Lender" refers to any lending institution or other party, including the seller if appropriate, that has agreed to provide all or part of the financing for the transaction or to which the buyer has made a loan application. The phrase "these instructions" refers to the agreements, instructions and provisions Bet forth in this document and all amendments, additions and supplements to this document The phrase "the property" refers to the real property identified in the parties agreement, including any other parcel of real property that will be used to secure payment of any obligation created in the transaction, and does not include any items of personal property unless otherwise apecifically stated in these instructions. The phrase "outside of escrow" refers to any duty, obligation or other matter which is the sole responsibility of the parries or of any party, and for which the closing agent shall have no responsibility or liability. In these instructions, singular and plural words, and masculine, feminine and neuter words, shall be construed interchangeably as may be appropriate in the context and circumstances to which such words apply. MATTERS TO BE COMPLETED BY THE BUYER AND SELLER 2 BPS Vlely, Form SGIOlWA Rev 11ro7515 AUG-13-20U9 THU UB:b4 AM PAUIHIU ALLIANUh T11LL. hAX NU. 5Uy 'L45tiy'L4 Y, Iti Important - Read carefully The following items must be completed by the parties, outside of escrow, and are not part of the closing agent' a duties under these instructions. Disclosures, Inspection and Approval of the Property. Any required disclosures concerning the property including, but not limited to, preparation and delivery of any required Real Property Transfer Disclosure Statement, or inspections or approvals of the property or of improvements, additions or repairs to the property, will be arranged and completed by the parties, outside of escrow The closing agent sbail have no liability with respect to the accuracy of any disclosures made, or for the physical condition of the property, or any buildings, improvements, plumbing, hearing, cooling, electrical, septic or other systems on the property, and no responsibility to inspect the property, or to otherwise determine or disclose its physical condition, or to determine whether any required disclosures have been made, or whether any required improvements, additions or repairs have been satisfactorily completed. Personal Property. Any required inspections, approvals or transfers of possession of any owned or leased fixtures, equipment or other items of personal property included in the transaction, and payment of any personal property, sales or use taxes, will be completed by the parties outside of escrow. Unless otherwise instructed, the closing agent shall have no responsibility with respeet to such personal property and shall not be required to determine the status or condition of the title to, encumbrances upon, ownership, or physical condition of such personal property, nor to calculate, pro -rate, collect, prepare returns for or pay any personal property tax, sales tax or use tax arising from the transaction. Utilities. All orders, cnnerllations, transfers, payments and adjustment of accounts for water, sewer, garbage collection, electricity, gas, fuel oil, telephone, television cable and any other utilities or public services will be completed by the parties outside of escrow Unless otherwise instmcted, the closing agent shall have no responsbility to determine, collect, pay, pro -rate or adjust charges for installation or service for any utilities or public services, except to pro -rate existing recurrent assessments for public improvements, if any, which appear on the title report Fire or Casualty Lrsuranee_ If a new policy of fire, hazard or casualty insurance on the property is necessary to close the transaction, the buyer will arrange for the policy to be issued, outside of escrow, and will provide evidence of the required insurance coverage to the closing agent before the closing date. Unless otherwise instructed, the closing agent shall have no responsibility to contract for or obtain any policy of fur., hazard or casualty insurance on the property, or any assignment of such policy Possession of the property. The transfer of possession of the property shall be arranged directly between the parties outside of escrow and shall not be the responsibility of the closing agent. Collection Account. If any financing for the transaction will be provided by a private party, the parties are advised to open a collection account at a financial institution to receive and disburse payments to be made under the private promissory note or contract. The collection account shall be established by the parties outside of escrow and shall not be the responsibility of the closing agent. Payment of Omitted Taxes. If any additional real property taxes are assessed for improvements made to the property that have not been added to the tax rolls before the closing date, the parties shalt pay then respective shares of such omitted taxes, pro -rated as of the closing date, within 30 days after receipt of notification that such taxes have been assessed. The closing agent shall not be responsible or liable for any assessment, collection or payment of omitted taxes. Individual Taxes. The parties aro advised to consult with their attorneys to determine whether they must report income, deduct exPenses or losses, or withhold or pay any income or business taxes as a result of the transaction. The closing agent shall have no responsibility for the parties' individual tax consequences arising from the transaction. Foreign Investment in Real Property Tax Act If any seller is, or may be, a non-resident alien or a foreign corporation, partnership, trust or estate for purposes of United States income taxation, the parties are advised to consult with their attorneys before the closing date to determine their responsibilities and liabilities, if any, under the Foreign Investment in Real Property Tax Act (Section 1445 et seq. of the Internal Revenue Code). The, closing agent is not required to verify the nationality or foreign status of any of the sellers, or to withhold, report or pay any amotmts due under such act. Approvals and Permits. The parties are advised to consult with their attorneys to determine whether any building, zoning, subdivision, septic system, or other construction or land use permits or approvals will be required, either before or after the closing date. The closing agent shall have no responsibility with respect to any such permit or approval, and shall have no liability arising from the failure of any party to obtain, or from the refusal of any governmental authority to grant, any such permit or approval Compliance With Certain Laws. The parties are advised to consult with their attorneys to determine their rights and responsibilities, if any, with [repent to disclosures concerning the condition of the property, or under the Consumer Protection Act, Truth - in -Lending Act, Interstate Iand Sales Act or other similar laws. The closing agent shall have no responsibility for disclosures concerning the condition of the property, or for the parties' compliance, nor any liability arising from the failure of any party to comply, with any such requirement or law. Additional Agreements, Instructions and Disclosures: 3 b55 Vidor Pam: SE101 WA Rev. 1110708 HUU—IJ—CUUti Ir1U U0.04 NIl rhulrlu HLLIHNUC 11 ILC NIA IVU. OUy C4t)OtiC4 r. 1 I NOTICE TO PARTIES The services of the closing ageut under these instructions will be performed by the person named below, who is certified as a Limited Practice Officer under Admission to Practice Rule 12, adopted by the Washington State Supreme Court. Under that rule, Limited Practice Officers may only select, prepare and complete certain documents on forms which have been approved for their use. You are further advised that: • THE LIMITED PRACTICE OFFICER IS NOT ACTING AS 111L ADVOCATE OR REPRESENTATIVE OF EITHER (OR ANY) OF THE PARTIES. • TICE DOCUMENTS PREPARED BY THE LIMITED PRACTICE OFFICER WILL AFFECT THE LEGAL RIGHTS OF THE PARTIES. • THE PARTIES INTERESTS IN THE DOCUMENTS MAY DIFFER • THE PARTIES HAVE A RIGHT TO BE REPRESENTED BY LAWYERS OF THEIR OWN SELECTION. • THE LIMITED PRACTICE OFFICER CANNOT GIVE LEGAL ADVICE AS TO THE MANNER IN WHICH THE DOCUMENTS AFFECT THE PARTIES. The Limited Practice Officer for this transaction is: SUE STEIN LPO Number 2541 BY SIGNING THESE INSTRUCTIONS, EACH PARTY ACKNOWLEDGES: I have been specifically informed that the closing agent is forbidden by law from offering any advice concerning the merits of the transaction or the documents that wdl be used to close the transaction. The closing agent has not offered any legal advice or referred me to any named attorney, but has clearly requested that I seek legal counsel if I have any doubt concerning the transaction or these instructions. I have had adequate time and opportunity to read and understand these instructions and all other existing documents referred to in these instructions. WASHINGTON DEPARTMENT OF FISH AND WILDLl7 E Date Ptrvefs Mailing Address: 600 CAPITOL WAY N OLYMPIA WA 98501 Buyer's home Phone: seller's Mailing Address', C/O DAVE BROWN -WATER DEPT YAK MA WA 98902 Seller's Home Phone• Buyer's Business Phone: Seller's Business Phone: ESCROW NO.. 01014100 4 5115 Asian Form 56101 WA Rev. 11107/60 2G/moo,. P • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 13 For Meeting of 4/7/09 ITEM TITLE: Consideration of resolution authorizing option to purchase property at 3rd Street and Walnut SUBMITTED BY: Dave Zabell, Assistant City Manager CONTACT PERSON/TELEPHONE: Dave Zabell, 575-6040 SUMMARY EXPLANATION: The City Council has previously discussed acquisition of the subject parcel in executive session and provided direction to staff to negotiate with the seller. Negotiations over the past months have resulted in a tentative agreement for an option on the property. As background, this is a privately owned parcel of land located at the SE corner of 3rd St. and Walnut Ave. for which the City has held a long-standing interest due to its close proximity to the Police Station and Legal Center. The property encompasses an area of approximately 28,000 square feet. Given the needs of the Police Department, and location of the property, acquisition of the property is advantageous to the City. Continued on page 2. Resolution X Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source Police Department Land Budget Service Unit 333. APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: The staff recommends that the City Council adopt the Resolution and direct the City Manager to execute the option to purchase agreement. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Page 2 A Phase I Environmental Assessment (EA) of the property recommended that a Phase II EA be conducted on the subject property. This level of review entails the evaluation of soil and water samples from the property for the presence of contaminants. Previously the property owner wouldnot allow access for that purpose as part of the City's due diligence efforts. Prior to taking ownership should the City ultimately purchase the property, the City should be aware of pollution levels present on the site as there is considerable liability attached to the ownership of a polluted site and the clean up of environmental contamination. Should it be determined that. the property is polluted, it could be extremely costly. As an alternative to a Phase II assessment, the City can limit its potential liability through a Prospective Purchasers Agreement (PPA) between the City and Washington State Department of Ecology. This alternative was agreed to during recent negotiations and is a condition of the proposed option to purchase. As presented, the option leaves the City with the option to withdraw should it be determined unadvisable to acquire the property on behalf of the public, and also protects the seller by establishing a price and conditions under which a contemplated sale would ultimately be completed. The PPA condition within the option allows for testing of the property for contaminants without exposing the seller or prospective purchaser to unnecessary risk. The option proposes a price of $340,000 for the property conditioned on the City successfully entering into a PPA with the Department of Ecology. The seller has agreed to the price and the PPA condition. The seller has also agreed to grant the City the right to use the property for parking purposes during the Option period. •