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HomeMy WebLinkAboutR-2003-124 Central Washington Comprehensive Mental Health Memorandum of Understanding (re: option to purchase trolley barn propeRESOLUTION NO. R-2003- 124 A RESOLUTION authorizing the City Manager to execute a Memorandum of Understanding with Central Washington Comprehensive Mental Health regarding the trolley barn property. WHEREAS, the Yakima Electric Railway system is historically unique because it is the only continuously operated interurban electric railroad system in the United States, and WHEREAS, the trolley barn property has been leased by the City and is an integral part of the operation of its historic Electric Railway system, and WHEREAS, the trolley barn property is owned by Central Washington Comprehensive Mental Health, and WHEREAS, Comprehensive Mental Health desires to develop property that it owns adjacent to the trolley barn property, and WHEREAS, the City wishes to retain long-term use of the trolley barn and Electric Railway system through purchase of the property, and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City of Yakima that the City ultimately purchase the trolley barn property to preserve the efficient operation of its historical trolley system, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute with Central Washington Community Mental Health a Memorandum of Understanding, in substantially the same form as attached, preserving its long-term use of the trolley barn as an integral part of the historic Electric Railway system. ADOPTED BY THE CITY COUNCIL this 16th day of September, 2003. 0. ( ary Place, Mayor ATTEST: i ., City Clerk C:\Documents and Settings\ kroberts\ Local Settings\Temporary Internet Files\OLK2\Trolley Barn resolution re purchase and sale agreement.doc MEMORANDUM OF UNDERSTANDING THIS AGREEMENT is dated this day of September, 2003, by and between the CITY OF YAKIMA, WASHINGTON, a municipal corporation (hereinafter "Yakima") and CENTRAL WASHINGTON COMPREHENSIVE MENTAL HEALTH, a Washington non-profit corporation (hereinafter "CWCMH"). WHEREAS, CWCMH and Yakima desire to enter into an option to purchase, whereby Yakima shall have the right to purchase certain real estate located between South Third Avenue and South Fourth Avenue adjacent to Pine Street, constituting a portion of Block 255 in Lund's Addition to North Yakima and also known as the "Trolley Barn" property; WHEREAS, CWCMH proposes to construct two new buildings on a parcel of land located between South Third Avenue and South Fourth Avenue, constituting a portion of Block 256 in Lund's Addition to North Yakima and to remodel its existing facilities on parcels of land located at 402 S. 4th Ave., Yakima, Washington 98902; WHEREAS, Yakima desires an easement for occasional railroad operations across a previously vacated portion of Tieton Drive, located between said Blocks 255 and 256 in Lund's Addition to North Yakima; WHEREAS, CWCMH proposes that a portion of South Fourth Avenue be vacated to provide additional parking spaces needed for the two new buildings proposed to be constructed, which parking spaces shall constitute an offset to a 20 foot wide strip of land that the parties propose to include within the Option to Purchase for a portion of Block 255 in Lund's Addition to North Yakima, NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereby agree as follows: 1. CWCMH will promptly submit to Yakima a petition for partial street vacation of a portion of South Fourth Avenue just south of Tieton Drive to configure necessary parking spaces, which land is legally described as follows: That portion of South Fourth Avenue coincident with the West line of Block 256, of Lund's Addition to North Yakima (now Yakima), according to the official plat thereof, recorded in Volume "A" of Plats, page 103, records of Yakima County, Washington, described as follows: Beginning at the Southwest most corner of Lot 12 of said Block 256; thence Northwesterly along the Southwesterly line and the Southwesterly line extended of said Block 256, 290 feet, more or less, to the centerline of Maple Street; thence Southwesterly along said centerline 33 feet; thence Southeasterly parallel with the Southwesterly line of said Block 256, 290 feet, more or less, to the South line of said Lot 12 extended Southwesterly; thence Northeasterly 33 feet to the Point of Beginning. 2. Contemporaneously with the execution of this Memorandum of Understanding, the parties shall execute the Option to Purchase attached hereto as Exhibit A. 3. Contemporaneously with the execution of this Memorandum of Understanding, the parties shall execute the Easement Deed attached hereto as Exhibit B. 4. Yakima agrees to reconstruct the railroad tracks located within said easement at the final grade to be established by CWCMH. Additionally, Yakima shall be responsible for all costs of construction, engineering, and maintenance of the tracks located within said easement. 5. In the event, legal descriptions contained within the terms of the Easement Deed or Option to Purchase need to be modified (e.g. lot line adjustment) in order to accomplish the parties' intent then the parties shall cooperate to modify those descriptions and the cost of surveyors hired by Yakima shall be borne by Yakima. 6. In the event that, as a result of the Class II review process, it is determined that CWCMH's project will not be feasible for any reason, then CWCMH reserves the right to renegotiate or terminate the transfer of the South 20 feet of real estate legally described in the Option to Purchase for parking lot purposes. 7. Provided that CWCMH successfully completes its Class II review process, the parties agree to promptly amend the August 1, 2001 Lease of Commercial Property to conform the legal description in said lease to that contained in the Exhibit A Option to Purchase. CITY OF YAKIMA Bv: R. A. Zais, City Manager ATTEST: Karen Roberts, City Clerk f:01 i R ACT tl;` d IV:U.61:110N NC- �aoo� -iay CENTRAL WASHINGTON COMPREHENSIVE MENTAL HEALTH B Rick Weaver, President Filed at request of and return to: City of Yakima Legal Department Attn: Raymond L. Paolella 200 South Third Street Yakima, WA 98901-2830 NOT SU=B. CT TO EASEMENT DEED GRANTOR: Central Washington Comprehensive Mental Health, a Washington nonprofit corporation GRANTEE: City of Yakima, a Washington municipal corporation LEGAL DESCRIPTION (abbreviated): A north -south corridor of land (20' x 80') located south of and adjacent to Lot 8, Block 255, Lund's Addition to North Yakima ASSESSOR'S PARCEL NO. 181324-44463 GRANTOR, Central Washington Comprehensive Mental Health, for and in consideration of Ten Dollars ($10.0o) and other good and valuable consideration, in hand paid, hereby gives, grants and conveys to City of Yakima, GRANTEE, its successors and assigns, a perpetual, nonexclusive easement for railroad operations through, over, under, and across the following described real property, situated in Yakima County, Washington, to wit: That portion of vacated Maple Street abutting Block 255, of LUND'S ADDITION TO NORTH YAKIMA (now Yakima), according to the official plat thereof, recorded in Volume "A" of Plats, page 103, records of Yakima County, Washington, as vacated under Ordinance No. 888 as approved by the City Council of North Yakima on September 7, 1911, described as follows: Beginning at that Northeast corner of said Block 255; thence South 71°23'15" West, along the North line thereof, 187.00 feet; thence South 18°37'15" East, parallel with the East line of said Block 255, 177.0o feet; thence South 63°37'15" East 51.00 feet; thence South 30°43'49" East 59.50 feet; thence South 18°37'15" East 128.76 feet to a point on the South line of said Block 255 and the True Point of Beginning; thence continuing South 18°37'15" East 80.01 feet to the south line of vacated Maple Street; thence North 71°23'15" East along last said south line 20.00 feet; thence North 18°37'15" West 80.01 feet to the south line of said Block 255; thence South 71°23'15" West 20.00 feet to the True Point of Beginning. Assessor's Parcel No. 181324-44463 The GRANTEE agrees to provide the GRANTOR with at least two business days' advance notice prior to conducting railroad operations across this easement. 11 11 1 1 1 1 11 11 TTY (W YAKIMA ERR 11 1 7371930 Page: 1 of 2 1111712003 01:32P VA AA Yakima Co, WA The GRANTEE further agrees that the cost of construction, engineering, and maintenance of the railroad tracks within this easement shall be solely borne by GRANTEE. All construction and engineering of railroad tracks within this easement shall be subject to GRANTOR's prior approval and consent, which approval and consent shall not be unreasonably withheld. GRANTOR expressly reserves to itself, and its successors and assigns, the right, as currently exists under Washington law, to traverse this easement. This Easement Deed is executed pursuant to the parties' Memorandum of Understanding dated September 29, 2003, and the terms of said Memorandum of Understanding are expressly incorporated herein. DATED this 27 day of October, 2003. CENTRAL WASHINGTON COMP EHENSIVE MENTAL HEALTH Rick Weaver P esident/CEO Date: 1° /Z"1 to"; STATE OF WASHINGTON County of Yakima :ss. I certify that I know or have satisfactory evidence that Rick Weaver is the person who appeared before me, and said person acknowledged that he signed this instrument as the President/CEO of Central Washington Comprehensive Mental Health, a Washington nonprofit corporation, and on oath stated that he was authorized to execute the instrument and acknowledged it to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument. DATED: 4 bal) Easement accepted this17— d y of October, 2003. Print Name: NOTARY PUBLIC in and Washington, residing at My commission expires: R. A?Zais, Jr. City Manager 1/11111,,��uw111111u111111111,1m11111.11n11u 7371930 Page: 2 of 2 11/17/2993 01:32P Yakima Co, WA Filed at request of and return to: City of Yakima Legal Department Attn: Raymond L. Paolella 200 South Third Street Yakima, WA 98901-2830 OPTION TO PURCHASE GRANTOR: Central Washington Comprehensive Mental Health, a Washington nonprofit corporation GRANTEE: City of Yakima, a Washington municipal corporation LEGAL DESCRIPTION (abbreviated): A portion of Lots 1 to 16 inclusive, Block 255; all being in LUND'S ADDITION TO NORTH YAKIMA (NOW YAKI MA) ASSESSOR'S PARCEL NO. 181324-44463 For and in consideration of the sum of FIVE HUNDRED AND 00/100 DOLLARS ($500.00), receipt of which is hereby acknowledged, CENTRAL WASHINGTON COMPREHENSIVE MENTAL HEALTH, a Washington nonprofit corporation, hereinafter referred to as "the Property Owner," whose address is Attention: President and CEO, P.O. Box 959, Yakima, WA 98907, 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 October 1, 2006, to purchase the following real property, situated in Yakima County, Washington, and which is legally described as follows: That portion of Lots 1 to 16 inclusive, Block 255; all being in LUND'S ADDITION TO NORTH YAKIMA (NOW YAKIMA), according to the official plat thereof recorded in Volume "A" of Plats, Page 103, records of Yakima County, Washington; TOGETHER WITH the vacated alley in said Block 255 and vacated Maple Street abutting said Lots, as vacated 1 11 111111 1111 1111 111111 1111111 11111 111 11111 IUIII Page: 1of5Fav under Ordinance No. 888 as approved by the City council of North Yakima on September 7, 1911, described as follows: Beginning at the Northeast corner of said Block 255; thence South 71°23'15" West, along the North line thereof, 180.00 feet; thence South 18°37'15" East, parallel with the East line of said Block 255, 185.30 feet; thence South 63°37'15" East 62.29 feet; thence South 18°37'15" East 175.65 feet to a point 5 feet South of the South line of said Block 255; thence North 71°23'15" East parallel with said South line 135.95 feet to the East line of said Block 255 extended South; thence 405 feet, more or less, along the said East of said Block 255 to the Point of Beginning. Together with: That portion of vacated Maple Street abutting Block 255, of LUND'S ADDITION TO NORTH YAKIMA (now Yakima), according to the official plat thereof, recorded in Volume "A" of Plats, page 103, records of Yakima County, Washington, as vacated under Ordinance No. 888 as approved by the City Council of North Yakima on September 7, 1911, described as follows: Beginning at that Northeast corner of said Block 255; thence South 71°23'15" West, along the North line thereof, 187.00.feet; thence South 18°37'15" East, parallel with the East line of said Block 255, 177.00 feet; thence South 63°37'15" East 51.00 feet; thence South 30°43'49" East 59.50 feet; thence South 18°37'15" East 133.76 feet to a point 5 feet South of the South line of said Block 255 and the True Point of Beginning; thence continuing South 18°37'15" East 20.00 feet; thence North 71°23'15" East parallel with the South line of said Block 255, 138.46 feet to the East line of Block 255 extended South; thence North 18°37'15" West along the said East line extended 20.00 feet to a point bearing North 71°23'15" East from the True Point of Beginning; thence South 71°23'15" West 138.46 feet to the True Point of Beginning. Assessor's Parcel No. 181324-44463 At any time during the term of this Option to Purchase, but no later than thirty (30) 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 the Property Owner at its address appearing above, subject to the right of the Property Owner to designate by notice in writing to the City of a different address to which said notice shall be sent. Alternatively, notices may be personally served upon the Property Owner in the same manner as is —2— i u 1111 111 11 1 11 1 11 1 1111 1111 1 11 It 7371931f, Page 2 o 11/17/2003 01:32F 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 Two Hundred and Five Thousand Dollars ($205,000.00), with credit for $500.00 above received, and closing on the property shall take place within thirty (30) days after the City notifies the Property Owner of its intent to exercise this option, unless the Parties shall agree in writing otherwise Within five (5) days after the City's notification to the Property Owner of its intent to exercise this option, the Property Owner shall, at its 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 which to examine it. If the title to the premises is found defective, the Property Owner 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 their 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. Prior to closing, the parties agree that a western boundary line adjustment will be completed to include some additional slivers of land in the trolley barn parcel being purchased by the City, together with a southerly boundary line adjustment for the South 20 feet. All taxes and assessments on the subject premises due and owing for prior years shall be paid by the Property Owner and all taxes and assessments due and owing for the year in which the City exercises its Option to Purchase shall be prorated as of the date of closing unless paid for by Lessee and pursuant to Lease of Commercial Real Property dated August 1, 2001. Excise tax and the cost of obtaining title insurance shall be paid for by the Property Owner. All other closing costs shall be shared equally by the Parties. -3- 1111111 1111111111111111111111111111111111 7181111:71/Z°1615.32! The City shall have the right to assign this Option to Purchase and all rights hereunder at any time during the term of this Option. This Option shall run with the land and shall both bind and benefit the respective heirs, representatives, successors and assigns of the Property Owners and the City. The City shall have the right to extend this Option for an additional two (2) years past the expiration date, if within 30 days of the expiration of this Option, the City notifies the Property Owner of its intention to so extend the Option. All other terms and conditions set forth in this Option shall remain in full force and effect during said two year extension period. This Option to Purchase is executed pursuant to the parties' Memorandum of Understanding dated SeptemberZ9 , 2003 and the terms of said Memorandum of Understanding are expressly incorporated herein. DATED this z9 day of September, 2003. CENTRAL WASHINGTON COMPREHENSIVE MENTAL HEALTH CITY OF YAKIMA Rick Weaver R. A. Zais, Jr. President/CEO City Manager CM! C=NTeACT NO: Alea0 :LL RESOLUTION NO: LeD0-/e& —4— i m N 111111 1 11 1 ui iu 11111 7371931 Page: 4 of 5 4 4 )41)06K14 Al •90D STATE OF WASHINGTON ) ss. County of Yakima On this day personally appeared before me Rick Weaver, to me known to be the President/CEO of Central Washington Comprehensive Mental Health, the entity that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said entity, for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute the said instrument. GIVEN UNDER my hand and official seal this ACf7 day of September, 2003. STATE OF WASHINGTON ) ss. County of Yakima J . Efiline" Ly (Printed Name) Notary Public in and for the to e, of Washington, residing ,t My commission expires, , it,� On this day personally appeared before me R. A. Zais, Jr., to me known to be the City Manager of the City of Yakima, the municipality that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipality, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute the said instrument. GIVEN UNDER my hand and official seal this o?9a day of September, 2003. Ad -e_ cida4/141-1 .c., "a t /%% //)/TK//1) (Printed Name) Notary Public in and for the State of Washington, residing at My commission expires J-4,--62, S:Ucwayenbe\Karen's FilesWGREEMENTS\Paolella\CWCMH trolley barn option to purchase.doc —5- 11 11 11 i 1 11 1 11 11 1 1 11 7371931 Page: 5 of 5 11/17/2003 81:32 ITEM TITLE: SUBMITTED BY: CONTACT: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. /0 For Meeting Of: September 16, 2003 Consideration of a resolution authorizing execution of option to purchase trolley barn from Central Washington Comprehensive Mental Health illiam Cook, Director of Community and Economic Development William Cook, 575-6113 SUMMARY EXPLANATION: In November 1985, the Union Pacific Railroad donated the Yakima Interurban Electric Railway system to the City of Yakima, comprised of miles of track, overhead electric wire, historic rolling stock and numerous items of equipment. However, the Trolley Car Barn was retained by Union Pacific and leased to Yakima Interurban Lines Association. In the early 1990's, Central Washington Comprehensive Mental Health bought the Trolley Car Barn from Union Pacific to save this historic property. In 2001, the City leased this property from Central Washington Comprehensive Mental Health to house our historic electric railroad system. The Yakima Valley Trolley is the last intact and continuously operating interurban trolley system in the United States. In addition the property has received the following significant designations: • Washington State Register of Historic Places • American Public Works Association's National Historic Public Works Award for 1990 • Designated one of the Ten Most Endangered Historic Sites in the state by the Washington Trust for Historic Preservation • Washington State Historic Preservation Officer's Historic Site of the Year Award for 1992 By this resolution the City of Yakima will secure a 5 -year purchase option for the land and buildings currently owned by Central Washington Comprehensive Mental Health. The cost of Continued on the next page: Resolution X Ordinance Contract Other: Funding Source: Approval for Submittal: City Manager STAN- RECOMMENDATION: Staff recommends approval BOARD RECOMMENDATION: . COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2003-124 the option is a one time $500 with an established sale price of $205,000 if the City exercises the option within the next five years. Funding to exercise this option and secure this property has not yet been identified, however, the opportunity to apply for and secure state or federal grants to acquire and renovate this property is significantly improved by our ability to show control of the property in the form of a purchase option. It is understood that approval of this option today is just the beginning of a significant community effort to bring this important historical site under public ownership and protection, and to restore the trolley barn and museum to its original working condition. Approval of this resolution will begin an effort that will hopefully reward our community many times over. The potential economic development impact this restored tourism, and historical preservation attraction will bring to our community is significant.