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HomeMy WebLinkAboutR-2003-121 WestCoast Settlement AgreementRESOLUTION NO, R-2003- 121 A RESOLUTION directing and authorizing the City Manager of the City of Yakima, or his designee, to execute a Settlement Agreement with WestCoast Hospitality Limited Partnership regarding the acquisition of certain properties commonly known as 104 and 106 North 8th Street, Yakima, Washington, the legal descriptions of which are attached hereto and incorporated by reference herein as Exhibit "A", for use by the City of Yakima for the Yakima Convention Center Parking Lot Expansion Project and to take any additional actions that may be necessary or appropriate to give full force and effect to the basic terms and intent of the Agreement to acquire said properties and to execute any and all other documents relating to the acquisition of said properties. WHEREAS, the City desires to acquire certain real property at 104 and 106 North 8th Street, Yakima, Washington for the Yakima Convention Center Parking Lot Expansion Project; and WHEREAS, RCW Title 8 authorizes the City to acquire the said properties that are necessary for public use and the City wishes to pay just compensation to WestCoast Hospitality Limited Partnership for the acquisition of the said properties; and WHEREAS, WestCoast Hospitality Limited Partnership is willing to sell the said properties to the City to improve, use and maintain said property for the Yakima Convention Center Parking Lot Expansion Project; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize execution of the Settlement Agreement with WestCoast Hospitality Limited Partnership; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is hereby authorized and directed to execute a Settlement Agreement with WestCoast Hospitality Limited Partnership substantially in the form attached hereto as Exhibit "B". The Agreement shall be approved as to form by the City Attorney. RESOLUTION - 1 718.111\rhg\yakima cit\cavanaughs\resolution ADOPTED BY THE CITY COUNCIL this 2nd day of September, 2003. Ma Pe ATTEST: City Clerk RESOLUTION - 2 718.111\rhg\yakima cit\cavanaughs\resolution Mayor RESOLUTION R-2003-121 Was for a contract that did not get finalized. In August 2004, another resolution and contract was brought to Council on this issue. See RESOLUTION R-2004-127 for property acquisition (contract #2004-94) and RESOLUTION R-2004-128 (contract #2004-95) for Catering contract extension EXHIBIT "A" Resolution Legal Description Lots 2 and 3, Block 149, Huson's Addition to North Yakima, now Yakima, Washington, recorded in Volume "A" of Plats, Page 11, records of Yakima County, Washington. Yakima County Assessor's Parcel No. 191319-12445 and 191319-12446. SETTLEMENT AGREEMENT This Settlement Agreement is being entered into on the last date entered on the signature pages and is between the City of Yakima, State of Washington (hereafter the "City") and WestCoast Hospitality Limited Partnership, formerly known as Cavanaugh's Hospitality Limited Partnership (hereafter "WestCoast"). RECITALS WHEREAS it is necessary for the public use and required by the public interests that the City construct public improvements known as the "Yakima Convention Center Parking Lot Expansion Project" (hereinafter the "Project"), and such construction is in accordance with the plans approved and adopted by the Yakima City Council by Ordinance No. 2003-34, dated June 3, 2003; and WHEREAS WestCoast owns in fee simple two parcels of real property situated in the County of Yakima, state of Washington that are commonly known as 104 and 106 North 8th Street, Yakima, Washington, the legal descriptions of which are attached hereto and incorporated by reference herein as Exhibit "A"; and WHEREAS said properties will be damaged or otherwise interfered with in such a manner by the City's construction and/or existence of the Project so as to be legally compensable, and such damage or other interference is required for the interests of the public and of the City and does constitute a necessary public use of said property and interests; and WHEREAS the City, pursuant to RCW Chapter 8.12, wishes to pay reasonable compensation to WestCoast for such damage or other interference which will be caused to its properties by the construction and/or existence of the Project; and WHEREAS the City obtained an independent appraisal of said properties which indicated the fair market value of said property to be $140,000.00 and WestCoast has not obtained an independent appraisal of said properties; however, it purchased the properties in 1998 for $130,552.61 and has also incurred additional development costs and expenses in the amount of $24,680.00 for the properties; and WHEREAS the City and WestCoast each wish to resolve their differences without the necessity and costs of litigation as to the value of said properties and the uncertainties connected therewith; SETTLEMENT AGREEMENT -1 718-111\rho\vakima cit\cavanauahs\settlement aareement r?.rW I R IT Resolution AGREEMENT IT IS THEREFORE AGREED by and between the City and WestCoast that for purposes of settlement only: 1. The City shall pay WestCoast $154,000.00 in total compensation for the condemnation of WestCoast's property located at 104 and 106 North 8th Street, Yakima, Washington, the legal description of which is attached hereto as Exhibit "A". 2. WestCoast agrees to accept $154,000.00 as fair and reasonable compensation in full for the land taken by the construction and/or existence of the Project and shall not seek further or additional compensation of any kind for any damage or claims of damage for the said land taken and agrees that said compensation reflects the fair market value of said land. 3. WestCoast shall transfer all its rights and interests in said properties to the City by the execution of a Statutory Warranty Deed in fee simple absolute and an Excise Tax Affidavit in the form attached hereto as Exhibits "B" and "C" to the City and shall claim no additional interest in said properties nor shall it seek additional compensation of any kind from the City caused by the construction and/or existence of the Project. 4. The City and WestCoast agree to cooperate fully and execute any and all supplementary documents and to take all additional actions that may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement. Such documents shall include escrow instructions as set forth as Exhibit "D". 5. Closing on said property shall take place on or about September 15, 2003. The closing agent shall be Lyon, Weigand & Gustafson PS, 222 North Third Street, Yakima, Washington. 6. This Settlement Agreement expresses the full and complete settlement of by and between the City and WestCoast with respect to said properties. 7. WestCoast has completely read this Settlement Agreement and fully understands and voluntarily accepts it for the purpose of final resolution and settlement of any and all claims with respect to fair and reasonable compensation for the damage or other interference which will be caused to its properties by the construction and/or existence of the Project. 8. The terms and conditions of this Settlement Agreement shall not be amended or modified except in writing signed by the City and WestCoast. This Settlement Agreement SETTLEMENT AGREEMENT - 2 718-111\rhg\yakima cit\cavanaughs\settlement agreement is fully integrated and constitutes the entire agreement of the parties. There are no other agreements of these parties. 9. This Settlement Agreement has been reviewed and approved by each of the parties after negotiation of the terms thereof. In the event it should be determined that any provision of this Settlement Agreement is uncertain or ambiguous, the language in all parts of the agreement shall be in all cases construed as a whole according to the fair meaning of the agreement, and not strictly construed for or against any party. 10. If any provision herein is invalid, it shall be considered deleted from this Settlement Agreement and shall not invalidate the remaining provisions of this Agreement. DATED this day of August, 2003. WestCoast Hospitality Limited Partnership By: WestCoast Hospitality Corporation, its General Partner By Arthur M. Coffey, President and Chief Executive Officer THE CITY OF YAKIMA B��� Y Richard A. Zai , Jr. RS City Manager Cl/ YCOHTRAC fdO: ,,003— RESOtUTtQN NO: SETTLEMENT AGREEMENT - 3 718-111 \rhg\yakima cit\cavanaughs\settlement agreement When recorded please return to: Russell Gilbert Lyon, Weigand & Gustafson PS P.O. Box 1689 Yakima WA 98907 STATUTORY WARRANTY DEED THE GRANTOR, Cavanaughs Hospitality Limited Partnership, now known as WestCoast Hospitality Limited Partnership, a Washington limited partnership, for and in consideration of TEN AND NO/100 DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION, in hand paid, conveys and warrants to the City of Yakima, State of Washington, the following described real estate, situated in the County of Yakima, State of Washington: Lots 2 and 3, Block 149, Huson's Addition to North Yakima, now Yakima, Washington, recorded in Volume "A" of Plats, Page 11, records of Yakima County, Washington. Yakima County Assessor's Parcel No. 191319-12445 and 191319-12446. TOGETHER WITH all water rights and appurtenances including after acquired title, if any, thereunto belonging. SUBJECT TO all pending and future litigation adjudicating and determining ground and surface waters in any water drainage basin of which the property is a part. SUBJECT TO rights reserved in federal patents, state or railroad deeds; building or use restrictions general to the area; zoning regulations; all rights of way, easements, reservations, restrictions, agreements, covenants and conditions appearing in the record of title or apparent on inspection of said premises and/or plat. STATUTUORY WARRANTY DEED - 1 718-111 \rhg\yakima cit\cavanaughs\swd EXHIBIT Q---. Agreement Law Offices LYON, WEIGAND & GUSTAFSON PS Lyon Law Offices - 222 North Third Street P O. Box 1689 Yakima, Washington 98907 Telephone (509) 248-7220 Fax (509) 575-1883 • EXHIBIT "A" Legal Description Lots 2 and 3, Block 149, Huson's Addition to North Yakima, now Yakima, Washington, recorded in Volume "A" of Plats, Page 11, records of Yakima County, Washington. Yakima County Assessor's Parcel No. 191319-12445 and 191319-12446. When recorded please retum to: Russell Gilbert Lyon, Weigand & Gustafson PS P.O. Box 1689 Yakima WA 98907 STATUTORY WARRANTY DEED THE GRANTOR, Cavanaughs Hospitality Limited Partnership, now known as WestCoast Hospitality Limited Partnership, a Washington limited partnership, for and in consideration of TEN AND NO/100 DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION, in hand paid, conveys and warrants to the City of Yakima, State of Washington, the following described real estate, situated in the County of Yakima, State of Washington: Lots 2 and 3, Block 149, Huson's Addition to North Yakima, now Yakima, Washington, recorded in Volume "A" of Plats, Page 11, records of Yakima County, Washington. Yakima County Assessor's Parcel No. 191319-12445 and 191319-12446. TOGETHER WITH all water rights and appurtenances including after acquired title, if any, thereunto belonging. SUBJECT TO all pending and future litigation adjudicating and determining ground and surface waters in any water drainage basin of which the property is a part. SUBJECT TO rights reserved in federal patents, state or railroad deeds; building or use restrictions general to the area; zoning regulations; all rights of way, easements, reservations, restrictions, agreements, covenants and conditions appearing in the record of title or apparent on inspection of said premises and/or plat. STATUTUORY WARRANTY DEED - 1 718-111 \rhg\yakima cit\cavanaughs\swd EXHIBIT . Law Offices LYON, WEIGAND & GUSTAFSON PS Lyon Law Offices - 222 North Third Street P.O. Box 1689 Yakima, Washington 98907 Telephone (509) 248-7220 Fax (509) 575-1883 DATED this day of , 2003. WestCoast Hospitality Limited Partnership By: WestCoast Hospitality Corporation, its General Partner By: Arthur M. Coffey, President and Chief Executive Officer STATE OF WASHINGTON ) ) ss. County of ) On this day personally appeared before me, Arthur M. Coffey, to me known to be the President and Chief Executive Officer of WestCoast Hospitality Corporation, the General Partner of WestCoast Hospitality Limited Partnership, that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said partnership, 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 day of 2003. STATUTUORY WARRANTY DEED - 2 718-111\rhg\yakima cit\cavanaughs\swd (Printed Name) Notary Public in and for the State of Washington, residing at My commission expires : Law Offices LYON, WEIGAND & GUSTAFSON PS Lyon Law Offices - 222 North Third Street PO.Box 1689 Yakima, Washington 98907 Telephone (509) 248-7220 Fax (509) 575-1883 REVENUE REAL ESTATE EXCISE TAX AFFIDAVIT PLEASE TYPE OR PRINT CHAPTER 82.45 RCW — CHAPTER 458-61 WAC SEE BACK PAGE FOR USE AT COUNTY TREASURER'S OFFICE (Use Form No. 84-000113 for Reporting Transfers of Controlling Interest of Entity Ownership to the Department of Revenue) THIS AFFIDAVIT WILL NOT BE ACCEPTED UNLESS ALL AREAS 1-7 ARE FULLY COMPLETED This form is your receipt when stamped by cashier SELLER _ GRANTOR Name WestCoast Hospitality Limited BUYER 11 l7RANTFF Name City of Yakima Partnership Street 201 W. North River Drive Street 129 North Second Street City/State/ZipSpokane, WA 99201 City/State/Zip Yakima, WA 98902 3 ADDRESS TO SEND ALL PROPERTY TAX RELATED CORRESPONDENCE City of Yakima ALL TAX PARCEL NUMBERS 191319-12445 COUNTY TREASURER PEACE ASSESSED VALUE IFTAX EXEMPT Name Street City/State/Zip 129 North Second Street 191319-12446 Yakima, WA 98902 . ® LEGAL DESCRIPTION OF PROPERTY SITUATED IN ❑UNINCORPORATED akima COUNTY 0 OR IN CITY OFY8klm8 Street Address (if property is improved):104 and 106 North 8th Street, Yakima, Washington Lots 2 and 3, Block 149, Huson's Addition to North Yakima, now Yakima, Washington, recorded in Volume "A" of Plats, Page 11, records of Yakima County, Washington. Yakima County Assessor's Parcel No. 191319-12445 and 191319-12446.. ® Is this property currently YES NO Classified or designated as forest land? 0 0 Chapter 84.33 RCW Classified as current use land (open space, farm and agricultural, or timber)? Chapter 84.34 RCW Exempt from property tax as a nonprofit organization? Chapter 84.36 RCW Seller's Exempt Reg. No. 0 0 0 Receiving special valuation as historic property? Chapter 84.26 RCW Property Type: ❑ land only ❑ land with previously used building ❑ timber only 0 0 o land with new building ❑ land with mobile home ❑ building only Principal Use: ❑ Apt. (4+ unit) ❑ residential ❑ timber ❑ agricultural 0 commercial/industrial ❑ other n(1) NOTICE OF CONTINUANCE (RCW 84.33 OR RCW 84.34) If the new owner(s) of land that is classified or designated as current use or forest land wish to continue the classification or designation of such land, the new owner(s) must sign below. If the new owner(s) do not desire to continue such classification or designation, all compensating or additional tax calculated pursuant to RCW 84.33 120 and 14(1 or RCW 84.34.108 shall be due and payable by the seller or transferor at the time of sale. The county assessor must determine if the !and transferred qualifies to continue classification or designation and must so indicate below Signatures do not necessarily mean the land will remain in classification or designation. If it no longer qualities, it will be removed and the compensating taxes will be applied. All new owners must sign. This land ❑ does ❑ does not qualify for continuance. Date DEPUTY ASSESSOR (2) NOTICE OF COMPLIANCE (Chapter 84.26 RCW) If the new owner(s) of property with special valuation as historic property wish to continue this special valuation the new owner(s) must sign below If the new owner(s) do not desire to continue such special valuation, all additional tax calculated pursuant to Chapter 84.26 RCW, shall be due and payable by the seller or transferor at the time of sale. (3) OWNER(S) SIGNATURE ©Description of personal property included in gross selling price, both tangible (eg; furniture, equipment, etc.) or intangible (eg; goodwill, agreement not to compete, etc.) N/A If exemption claimed, list WAC number and explanation. WAC No. (Sec/Sub) Explanation Type of Document Statutory Warranty Deed Date of Document 154,000.00 Gross Selling Price $ Personal Property (deduct) $ Taxable Selling Price $ Excise Tax. State $ Local $ 385.00 Delinquent Interest: State $ Local $ Delinquent Penalty $ Total Due $ 2,356.20 154,000.00 1,971.20 1.28% A MINIMUM OF S2.00 IS DUE AS A PROCESSING FEE AND TAX. 0 AFFIDAVIT 1 Certify Under Penalty of Perjury Under The Laws of The State of Washington That The Foregoing Is True And Correct. (See back page of this form). Signature of Grantor/Agent Name (print) WestCoast Hospitality Limited Date and Place of Signing: Signature of Grantee/Agent Name (print) City of Yakima Date & Place of Signing: Perjury: Perjury is a class C felony which is punishable by imprisonment in the state correctional institution for a maximum term of not more than five years, or by a tine in an amount fixed by the court of not more than five thousand dollars ($5,000.00), or by both imprisonment and fine (RCW 9A.20.020 (ICA REV 84 0001a (3-18-99) (PD 10-24-02) FOR TREASURER'S USE ONLY COUNTY TREASURER EXHIBIT �' ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of 9/2/03 A) A Resolution authorizing the purchase of property at 104 & 106 N. 8th Street; and B) An Ordinance amending the 2003 Budget and making an appropriation within the Convention Center Capital Fund for expenditure to purchase property. SUBMITTED BY: Glenn Rice, Assistant City Manage Cindy Epperson, Financial Services Manager CONTACT PERSON/TELEPHONE: Glenn Rice, - 575-6040 SUMMARY EXPLANATION: Attached is a resolution authorizing acquisition of property located at 104 & 106 No. 8th Street from WestCoast Hospitality Limited Partnership (a copy of the legal description is attached to the resolution). The acquisition of these lots will complete the parking required for expansion of the Yakima Convention Center. fie City obtained an independent appraisal of the properties, which reported the fair market value to be $140,000. WestCoast purchased the properties in 1998 for $130,552 and then incurred additional costs of about $25,000 to ready the properties for paving. WestCoast agrees to accept $154,000 as a fair and reasonable amount for these properties, which is within the established range of a 10% variance from the appraised value. Also attached is an ordinance which authorizes the funds to be expended from the 370 Convention Center Capital Fund. Resolution X Ordinance X Other (Specify) Misc. Information Contract Mail to (name and address): Phone Funding Source 370 Convention Center Capital Fund APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: A) Adopt resolution and authorize City Manager to execute the agreement. B) Read appropriation ordinance by title only at the 9/2/03 meeting; pass ordinance at the 16/03 meeting. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Legal/BD Agenda Convention Center/WestCoast Resolution adopted. RESOLUTION NO. R-2003-121