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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.1.
For Meeting of: May 21, 2019
ITEM TITLE: Resolution acknowledging prior declaration that City-owned
property located at 2312 W. Nob Hill Boulevard is surplus to the
uses and needs of the City, authorizing disposition and approving
Agreement of Purchase and Sale for said property to Heyden
Properties LLC
SUBMITTED BY: Jeff Cutter, City Attorney
SUMMARY EXPLANATION:
In February 2014 the City of Yakima purchased the subject property(2312 West Nob Hill
Boulevard), along with three other properties, from the Tiger Oil Corporation for the public
purpose of environmental remediation, site clean-up and returning the properties to productive
commercial use. Following completion of necessary cleanup, the City's intention has been to
return the properties to the private sector for beneficial economic development. The City has
worked with the Washington State Department of Ecology to complete a significant cleanup on
the 2312 West Nob Hill Blvd. site. The property has not yet been determined subject to issuance
of a"No Further Action" letter from the Department of Ecology, but has been deemed amenable
to construction in accordance with the environmental covenants previously granted to the
Department of Ecology by the City on December 11 , 2015.
The subject property was previously determined by the City Council to be surplus to the uses and
needs of the City of Yakima by Resolution R-2015-089 and is therefore subject to disposition.
By instrument received May 6, 2019, the City of Yakima has received from Heyden Properties
LLC an "Agreement Of Purchase And Sale" ("Purchase and Sale Agreement"), whereby the
buyer proposes to purchase the subject property for$325,000. This amount is $135,000 less
than the 2017 appraised value of the property, said appraisal being based upon an assumption
that the property is clean and free of any environmental restrictions, which it is not. However, the
buyer has also agreed to be responsible for any and all future well sampling and/or required
remediation action on the property from the time of sale forward. The City believes that under
these terms the current offer represents a fair value for the property given its current
environmental status.
The attached Resolution acknowledges the prior declaration of Council that the property is
surplus to the uses and needs of the City of Yakima and may be disposed of and further
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approves the Agreement Of Purchase And Sale And Escrow Instructions.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Neighborhood and Community Building
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Adopt resolution.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
D resolution 5'1,112019 Cowr Memp
-Ryer Property-RSA fur Rckisters-Hey den Counter Offer- 5.13/2019 Currtract
FINAL-2312 01+Nob Hill
Tiger Property-PSA for Rassters-Hey den Counter Offer 513/2019 Contract
Signature Page-2312 W Nob F1111.pclf
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RESOLUTION NO. R-2019-
A RESOLUTION acknowledging the prior City Council determination declaring the property
located at 2312 West Nob Hill Boulevard, Yakima, to be surplus to the uses
and needs of the City and subject to disposition; and approving an
Agreement Of Purchase And Sale.
WHEREAS, in February 2014 the City of Yakima (City) purchased the subject property
(2312 West Nob Hill Boulevard), along with three other properties, from the Tiger Oil Corporation
for the public purpose of environmental remediation and site clean-up; and
WHEREAS, substantial site remediation was accomplished in cooperation with the
Department of Ecology (DOE) to remove hazardous waste from the site; the site is still subject to
periodic water sampling and likely will remain so for the foreseeable future, and therefore DOE
has not yet determined it is appropriate to issue a "No Further Action" decision for the site, but
has indicated that the site is presently amenable to development subject to the Environmental
Covenant granted by the City to DOE on December 11, 2015; and
WHEREAS, by action of Resolution R-2015-089, the City Council previously determined
that the subject property is surplus to the uses and needs of the City of Yakima and may be
disposed of; and
WHEREAS, by instrument dated May 6, 2019, the City of Yakima received from Heyden
Properties, LLC an "Agreement Of Purchase And Sale" ("Purchase and Sale Agreement"), a copy
of which is attached hereto and incorporated herein by this reference, whereby the purchaser
proposes to purchase the subject property for $325,000, which amount is $135,000 less than the
appraised fair market value of said property when valued as if clean and free of any environmental
contamination; and
WHEREAS, as a condition of the Purchase and Sale Agreement the Purchaser agrees
to bear the cost of all necessary well monitoring and/or further remediation that may be required
by DOE on the site; and
WHEREAS, the City Council acknowledges the previous declaration of surplus property
and determination that the property may be disposed of; the Council further determines that
acceptance of the Purchase and Sale Agreement are in the best interests of residents of the
City of Yakima and will promote the general health, safety and welfare; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
Section 1. The Agreement Of Purchase And Sale attached hereto and incorporated
herein by this reference is approved; the City Manager is hereby authorized to execute and
administer such Agreement for and on behalf of the City of Yakima, and to execute all documents
necessary or appropriate to accomplish said sale.
Section 2. The City Manager is authorized to dispose of the property by any means
deemed necessary and appropriate in accordance with applicable codes and laws of the State of
Washington and the Agreement Of Purchase and Sale approved in Section 1 above. The City
Manager is further authorized to prepare and execute a deed of conveyance to accomplish such
sale in accordance with the terms and conditions above, and to deliver such deed for recording
by the purchaser upon payment in full to the City of Yakima of the consideration described above.
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ADOPTED BY THE CITY COUNCIL this 21st day of May, 2019.
ATTEST:
Kathy Coffey, Mayor
Sonya Claar Tee, City Clerk
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AGREEMENT OF PURCHASE
AND SALE
THIS AGREEMENT OF PURCHASE AND SALE (this "Agreement") is dated and effective as of
May , 2019 (the "Effective Omte^, and is made by and between THE CITY OF YAKIMA
("Seller"), and HEYDEN PROPERTIES, LLC, a Washington limited liability company and/or assigns
("Buyer").
ARTICLE
PURCHASE AND SALE OF PROPERTY
Section 1.1 Sale.
Selier agrees to sell to Buyer, and Buyer agrees to purchase from SelIer, on the terms and conditions
set forth heroin. that certain real property located at 2312 W. Nob Hill Boulevard, City of Yakima,
County of Yakima, State of Washington, which real property is more particularly described in
Exhibit A attached hereto ("Land"), together with: (a) any and all rights, privileges and easements
appurtenant thereto; and (b) all of Seller's right, title and interest in and to (i) all pernn|tm, building
plans and opacifiomUona, certificates of occupancy, operating pernnita, sign porrnita, development
rights and approvals, certificates, |ioenoea, warranties and guarantees, trade names, service
nnmrko, enQinmmr|ng, ooi|a, pest control and other reports relating to the Land, (ii) all other intangible
propeMx, miscellaneous righta, benefits or privileges of any kind or character with respect to the
Land (all items in this clause (b) are hereinafter collectively referred to as the 'Intangible Property").
The Land, the Intangible Property and all other property rights and interests described in clause
(a) above are hereinafter collectively referred to as the 'Property."
Section 1.2 Escrow.
The transaction contemplated by this Agreement shall be consummated through an escrow with
Pacific Alliance Title, LLC ("Title Company"), using the following address and escrow officer:
Pacific Alliance Title, LLC
311 North Fourth Street, Suite 102
Yakima, WA 98901
Attn: Kim Brumback
Phone: (509) 225-6809
Fax: (509) 248-8924
Section 1.3 Purchase.
Price.
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(a) The purchase price of the Property is Three Hundred Twenty Five Thousand Dollars
($325,000) (the "Purchase Price").
(b) The Purchase Price shall be paid as follows;
(1) Within five (5) business days after the Effective Date, Buyer shall deposit into escrow
with Title Company the cash amount of Ten Thousand Dollars ($10,000.00) (the
"Deposit"). The Deposit shall be held in an interest bearing account. Upon the
expiration of the Contingency Period and Buyer providing the Approval Notice
(defined below) to Seller, the Deposit shall become non-refundable except as set
forth in this Agreement.
(2) (A) IF THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER IS
CONSUMMATED, THEN THE DEPOSIT SHALL BE PAID TO SELLER AT THE
CLOSING AND CREDITED AGAINST THE PURCHASE PRICE.
(B) IF THE SALE IS NOT CONSUMMATED DUE SOLELY TO A DEFAULT BY
BUYER HEREUNDER, THEN SELLER, AS ITS SOLE REMEDY, SHALL RETAIN
THE DEPOSIT AS LIQUIDATED DAMAGES. THE PARTIES HAVE AGREED THAT
SELLER'S ACTUAL DAMAGES, IN THE EVENT OF A FAILURE TO
CONSUMMATE THIS SALE DUE SOLELY TO BUYER'S DEFAULT, WOULD BE
EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. AFTER
NEGOTIATION, THE PARTIES HAVE AGREED THAT, CONSIDERING ALL THE
CIRCUMSTANCES EXISTING ON THE EFFECTIVE DATE, THE AMOUNT OF THE
DEPOSIT IS A REASONABLE ESTIMATE OF THE DAMAGES THAT SELLER
WOULD INCUR IN SUCH EVENT. BY PLACING THEIR INITIALS BELOW, EACH
PARTY SPECIFICALLY CONFIRMS THE ACCURACY OF THE STATEMENTS
MADE ABOVE AND THE FACT THAT EACH PARTY WAS REPRESENTED BY
COUNSEL WHO EXPLAINED, AT THE TIME THIS AGREEMENT WAS MADE, THE
CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION. THE
FOREGOING IS NOT INTENDED TO LIMIT BUYER'S OBLIGATIONS UNDER
SECTION 6.1 AND SECTION 9.3.
INITIALS: SELLER BUYER
(C) IF THE SALE OF THE PROPERTY IS NOT CONSUMMATED DUE TO A
DEFAULT OF SELLER, THEN BUYER MAY EITHER: (1) TERMINATE THIS
AGREEMENT AND RECEIVE A REFUND OF THE DEPOSIT AND RECOVER
FROM SELLER ANY DAMAGES INCURRED BY BUYER AS A RESULT OF SUCH
DEFAULT, IN WHICH EVENT BUYER SHALL HAVE NO FURTHER RIGHTS OR
OBLIGATIONS HEREUNDER EXCEPT AS PROVIDED IN SECTION 6.1 AND
SECTION 9.3 BELOW, OR (2) BUYER MAY ENFORCE SPECIFIC
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PERFORMANCE OF THIS AGREEMENT. THE FOREGOING IS NOT INTENDED
TO LIMIT SELLER'S OBLIGATIONS UNDER SECTION 6.1.
(3) The balance of the Purchase Price shall be paid to Seller all in cash at the Closing,
with no financing contingency.
ARTICLE II CONDITIONS
Section 2.1 Buyer's Conditions Precedent.
Buyer's obligation to purchase the Property is conditioned upon the following:
(a) Buyer's review and approval of the Title Documents (as defined in Section 4.2). As soon as
possible, but no later than seven (7) days after the Effective Date, Seller shall deliver to
Buyer: (i) a copy of the Title Documents, including any survey of the Property in Seller's
possession; and (ii) a copy of Seller's existing ALTA survey (the "Survey").
(b) Buyer's review and approval of the documents and information listed on Exhibit B, attached
hereto, together with all other documents and materials relating to the Property (the "Due
Diligence Materials"), all of which Seller shall deliver to Buyer no later than seven (7) days
after the Effective Date.
(c) Buyer's review and approval of all zoning, land use, building, environmental and other
statutes, rules or regulations applicable to the Property.
(d) Buyer's review and approval of the physical, legal, economic and environmental condition of
the Property and any other matters Buyer deems relevant to the Property.
(e) (i) The irrevocable commitment of Title Company to issue the Title Policy (as hereinafter
defined) to Buyer at Closing; and (ii) the issuance of the Title Policy at Closing.
(f) All of the representations and warranties made by Seller to Buyer pursuant to this Agreement
shall be true and correct in all material respects as of the Closing Date, as if made on such
date.
(g) No adverse change in the physical condition of the Property, or in the permitted use or zoning
of the Property, shall have occurred after the end of the Contingency Period.
(h) Seller shall have delivered each of the documents described in Section 8.3(a), prior to the
Closing Date.
(i) Effective as of the Closing Date, Seller shall have terminated Contract(s), if any, that Buyer
has not elected to assume pursuant to Section 7.4.
The conditions precedent set forth in this Section 2.1 are solely for the benefit of Buyer and may be
waived only by Buyer. Buyer's determination as to whether such conditions have been satisfied shall
be made by Buyer in Buyer's sole, absolute and unfettered discretion. Buyer shall, at all times prior
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to the termination of this Agreement, have the right to waive any of these conditions. No such waiver
shall affect Buyer's ability to pursue any remedy it may have with respect to any breach hereunder
by Seller.
Section 2.2 Contingency Period.
As used in this Agreement, the term "Contingency Period" means that period commencing on the
Effective Date and ending at 5:00 p.m. Pacific Time on the date that is forty five (45) days after the
Effective Date. Buyer shall have until the end of the Contingency Period to review and approve the
matters described in Section 2.1(b) through Section 2.1(d) above in Buyer's sole, absolute and
unfettered discretion. Buyer shall have the right to terminate this Agreement prior to the expiration
of the Contingency Period for any reason or no raaeon, as determined by Buyer in Buyer's sole,
absolute and unfettered discretion, in which case the Deposit shall be returned to Buyer and neither
party shall have any further rights or obligations hereunder except as provided in Section 6.1 and
Section 9.3 below. If Buyer terminates this Agreement pursuant to the foregoing sentence, then
Seller shall retain out of the Deposit, as independent consideration for Buyer's right to terminate this
Agreement, the sum of one hundred dollars ($100.00) together with the amount of the direct cost to
terminate escrow. If Buyer determines to proceed with the purchase of the Property, then Buyer
aha||, before the end of the Contingency Period, notify Selier in writing (the "Approval Notice") that
Buyer has approved all of the matters described in Section 2.1(b) through Section 2.1(d) mbmva,
including, without limitation, the Due Diligence Materials. If, before the end of the Contingency
Period, Buyer fails to give Seller an Approval Notice, then Buyer shall be deemed to have elected to
terminate this Agreement, the Deposit shall be returned to Buyer subject to the conditions stated
herein and neither party shall have any further rights or obligations hereunder except as provided in
Section 6.1 and Section 9.3 below. If any other condition precedent set forth above is not satisfied
as of the time specified for satisfaction, then Buyer may, by written notice given to Seller before the
Closing or such other date specified for the satisfaction of such condibon, elect to terminate this
Agreement or waive such condition. If Buyer elects to terminate this Agreement (or is deemed to
have elected to terminate this Agreement pursuant to a provision that states that Buyers failure to
approve a condition shall be deemed Buyer's disapproval of such condition), then Buyer shall receive
a refund of the Deposit, subject to the conditions of this Section 2.2, and neither party shall have any
further rights or obligations hereunder except as provided in Section 6.1 and Section 9.3 below.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
Section 3.1 Seller's Representations and Warranties.
Seller hereby makes the foliowing representations and warranties to Buyer:
(a) Seller has not (0made agmnara| assignmentfmrthebonofitcf creditors, (ii)filed anyvoluntary
petition in bankruptcy or suffered the filing of any involuntary petition by Selier's creditors, (iii)
suffered the appointment of a receiverto take possession of all, or substantially all, of Seller's
assets, (iv) suffered the attachment or other judicial seizure of all, or substantially all, of
Seller's assets, (v) admitted in writing its inability to pay its debts as they come due, or (vi)
made an offer of settlement, extension or composition to its creditors generally.
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(b) Seller is not a "foreign person" as defined in Section 1445 of the Internal Revenue Code of
1986, as amended (the "Code") and any related regulations.
(c)
This Agreement has been duly authorized, executed and delivered by Selier, and neither the
execution and delivery of this Agreement and the documents and instruments referenced
herein, nor the performance of the obligations set forth herein, nor the consummation of the
transaction contemplated herein, nor compliance with the terms of this Agreement and the
documents and instruments referenced herein conflict with or result in the breach of any
tmrms, conditions or provisions of, or constitute a default under, any bond, note, or other
evidence of indebtedness or any controct, indentuna, nnortgaQe, deed of trust, loan,
partnership agreement, lease or other agreement or instrument to which Seller is a party or
affecting the Property.
(d) Seller has the power and authority to enter into this Agreement and to perform its obligations
hereunder.
(e) There is no pending or, to the best of Selier's knowledge,Ulromtanodpnomaedinga|nenninent
domain that would affect the Property or any portion thereof.
(f)
Selier and Property are subjectto theterms and provisions provisions of the 'Amended Consent Decree
Between Ecology and Yakima," executed by the parties and the court and filed on September
5, 2014 in the Superior Court of the State of Washington in and for Thurston County under
case number 02-2-00956-2 (hereafter "Amended Consent Decnee"), and the terms and
conditions of an Environmental Covenant recorded against the Property. There is no other
|itigation, ection, suit, mrbitrmtion, claims proceeding or governmental investigation in law or
equity pending or, to the best of Seller's knowledge, threatened, with respect to the Property
or against Seller that would prevent Seller from performing its obligations hereunder.
Except as stated below, Seller has received no written notice from any governmental
authority and Selier has no knowledge that the present use and operation of the Property is
in violation of any applicable laxv, including, without limitation, (i) building codes, zoning
ordinances and any other laws relating to the use, ownership, construction or design of the
improvements on the Property, including, without limitation, fire, safety, handicapped access,
and/or seismic design. Seller and Property are subject to the terms and provisions of an
"Amended Consent Decree Between Ecology and Yakima," executed by the parties and the
court and filed on September 5, 2014 in the Superior Court of the State of Washington in and
for Thurston County under case number 02-2-00856-2 (hereafter "Amended Consent
Decree"), and the terms and conditions of an Environmental Covenant recorded against the
Property.
(h) Seller has not been advised in writing of and is not otherwise aware of any plan, study or
effort by any governmental agency or authority that would materially adversely affect the
present use or zoning of any portion of the Property or that would modify or realign any
adjacent street or highway.
(i) To the best of Selier's knowledge, other than the amounts disclosed by the tax bills delivered
or to be delivered by Selier to Buyer as part of the Due Diligenceence Materials, or supplemental
taxes imposed as a result of the transfer of the Property to Buyer, no other taxes have been
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or will be assessed on the Property, or any portion thereof, with respect to the year in which
the Closing Date occurs or any prior year, and no special assessments of any kind (special,
bond or otherwise) are or have been levied against the Property, or any portion thereof.
(j) To the best of Selier's knowledge,oxceptaaotherw*edisc|msedinthaAmendodComeent
Decree, there are no underground or other storage tanks on the Property and there are no
Hazardous Materials (as defined below) in existence on, under or about the Property in
violation of any Environmental Laws (as defined below). For purposes of this Agreement,
"Hazardous Materials" means inflammable nnmterim|e, petroleum producto, exp|oaiwae,
radioactive mohsrio|e, mebmotoo, nno|d, polychlorinated biphenyls, lead, lead-based paint and
any other substance or material that is listed in or regulated under any applicable federal,
state or Iocal laws pertaining to the protection of health or the environment, including, without
limitation, the Federal Water Pollution Act, as amended (33 U.S.C. § 1251 et seq.), the
Resource Conservation and Recovery Act, as amended (42 U.G.C. § 6801 et seq.), the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended (42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act, as
amended (49 U.S.C. § 1801 et eeq.), and the Model Toxics Control Act, as amended
(Chapter 70.105D RCW). (collectively, "Environmental Laws").
(k) To the best of Seller's knowledge,eUitemodelivered or to be delivered by Selier pursuant to
this Agreement, including without limitation the Due Diligence Materials, are and will be true,
correct and complete in all material respects and do fairly present the information set forth in
a manner that is not misleading.
(1)
Attached to this Agreement as Exhibit C is a true, correct and complete schedule of the
Amended Consent Decree and all of the contracts and agreements affecting the Property, if
any (the "Contracts").
Each of the representations representations and warranties of Selier contained in this Section 3.1: (1) is true
as of the Effective Date; (2) shall be deemed made by Seller, and shall be true in all material respects
as of the date of Closing, and (3) shall survive the Closing as provided in Section 3.2 below.
Section 3.2 Survival of Representations and Warranties.
The representations and warranties of Geller and Buyer contained haren, and the parties'
indemnification obliabonncontminodinSecUon3.6.shoUourviveformpahndmftwxalve(12)nlonthn
after the Closing (the "Survival Period"). Any claim that Buyer or Seller may have at any time against
the other for indemnification or a breach of any such representation or warranty, whether known or
unknoxvn, that is not asserted by written notice to the other within one (1) month following the
expiration of the Survival Perind, and as to which a legal action has not been filed within four (4)
months following the Survival Poriod, shall be deemed xvaixmd, unless otherwise agreed in writing
by the parties.
Section 3.3 Seller's Knowledge.
For purposes of this Agreement and any docudelivered at Closing, whenever the phrase "to
the best of Seller's knowledge" or the "knowledge" of Seller or words of similar import are used, they
shall be deemed to refer to the actual knowledge of Seller's representatives and not any implied,
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imputed or constructive knowledge; provided the foregoing parties shall be charged with knowledge
of information contained in Seller's files, and shall also make reasonable inquiries of the property
manager and any other individuals with material knowledge and/or involvement with the Property.
Seller represents and warrants to Buyer that the foregoing parties are the Seller's representatives
with primary responsibility for the oversight and maintenance of the Property.
Section 3.4 Representations and Warranties of Buyer.
Buyer hereby makes the following representations and warranties to Seller:
(a) Buyer has not (i) made a general assignment for the benefit of creditors, (ii) filed any
voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Buyer's
creditors, (iii) suffered the appointment of a receiver to take possession of all, or substantially
all, of Buyer's assets, (iv) suffered the attachment or other judicial seizure of all, or
substantially all, of Buyer's assets, (v) admitted in writing its inability to pay its debts as they
come due, or (vi) made an offer of settlement, extension or composition to its creditors
generally.
(b) This Agreement has been duly authorized, executed and delivered by Buyer, and neither
the execution and delivery of this Agreement and the documents and instruments
referenced herein, nor the performance of the obligations set forth herein, nor the
consummation of the transaction contemplated herein, nor compliance with the terms of this
Agreement and the documents and instruments referenced herein conflict with or result in
the breach of any terms, conditions or provisions of, or constitute a default under, any bond,
note, or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust,
loan, partnership agreement, lease or other agreement or instrument to which Buyer is a
party.
(c) Buyer is duly formed, validly existing and in good standing under the laws of the State of
Washington and has the power and authority to enter into this Agreement and to perform its
obligation hereunder.
Each of the representations and warranties of Buyer contained in this Section shall be deemed made
by Buyer as of the Closing and shall survive the Closing, to the extent provided in Section 3.2 above.
(d) Buyer acknowledges and agrees that it has been given or will be given before the end of the
Contingency Period, a full opportunity to inspect and investigate each and every aspect of
the Property, either independently or through agents of Buyer's choosing.
Section 3.5 "As Is" Purchase.
Buyer agrees to accept the Property "AS IS, WHERE IS, WITH ALL FAULTS," including but not
limited to the environmental condition of the Property. Buyer further acknowledges that: (a) Buyer
has been provided with a copy of the Amended Consent Decree on file in Thurston County Superior
Court, cause No. 02-2-00956-2 pertaining to the property located at 2312 W. Nob Hill Blvd., Yakima,
WA; (b) no representations or warranties, whether express or implied, have been made to Buyer by
Seller as to the condition of the Property or its suitability for particular purposes or uses and Buyer
is not relying on any such warranty or representation as a condition or inducement to purchase the
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Property. In particular, and without limitation, Seller does not expressly or impliedly warrant that the
Property meets any current City, County, State or Federal building codes, ordinances, laws or
regulations relative to occupancy, electrical, plumbing, heating, mold, sewage, septic, water, roof,
structure, use or any other nature or comply with any applicable environmental laws. Buyer assumes
the complete responsibility to check with the appropriate governmental authority for its intended use
of the Property. Seller shall not be responsible for the repair, replacement or modification of any
deficiencies, malfunctions, or mechanical defects in the materials, workmanship, utilities and
mechanical components of the Property prior to and/or subsequent to Closing.
Section 3.6 Release.
(a) Except as set forth in subsection (b) below, upon Closing, Buyer shall be deemed to have
waived, relinquished and released Seller and Seller's elected and appointed officials,
officers, directors, shareholders, employees and agents (collectively, "Seller Parties") from
and against any and all claims, demands, causes of action (including causes of action in tort
and causes of action related to environmental conditions), losses, damages, liabilities, costs
and expenses (including attorneys' fees and court costs) of any and every kind or character,
known or unknown, which Buyer might have asserted or alleged against Seller Parties at any
time by reason or arising out of any latent or patent construction defects or physical
conditions, environmental conditions, natural resource damages, violations of any applicable
laws (including, without limitation, any environmental laws) and any and all other acts,
omissions, events, circumstances or matters regarding the Property and conduct thereon.
The terms and conditions of this Section shall expressly survive the Closing and shall not
merge with the provisions of any closing documents.
(b) Pursuant to the terms of the Amended Consent Decree, Seller has entered into a remediation
action plan with the Washington State Department of Ecology ("Department of Ecology") for
the cleanup of described hazardous wastes within the Property. Upon closing, it shall
become Buyer's sole responsibility to continue to comply with the remediation plan for the
Property in cooperation with the Department of Ecology and in accordance with the terms of
the Amended Consent Decree. Buyer will cooperate with the Department of Ecology to
enable the continuation of such remediation efforts, and will further comply with the
Environmental Covenant recorded against the Property. While Seller understands and
believes that the remaining remediation will consist primarily of continuing to monitor
groundwater quality (by means of established monitoring well sampling), Seller cannot
represent, promise or warrant that required remediation after closing of this purchase and
sale transaction will be limited to such well sampling. In the event required remediation
consists of anything beyond or in addition to monitoring groundwater quality (by means of
established monitoring well sampling), Buyer agrees to assume such additional remediation
work and hereby releases Seller Parties from the performance of such additional remediation
efforts, and further releases Seller Parties from and against any and all claims, demands,
causes of action (including causes of action in tort and causes of action related to
environmental conditions), losses, damages, liabilities, costs and expenses (including
attorneys' fees and court costs) of any and every kind or character, known or unknown, which
Buyer might have asserted or alleged against Seller Parties at any time by reason or arising
out of any damage or loss to the Property and Buyer's improvements within or upon such
Property. The terms and conditions of this Section shall expressly survive the Closing and
shall not merge with the provisions of any closing documents.
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Section 3.7 Indemnification.
Buyer hereby agrees to indemnify, defend and hold harmless Seller Parties for, from and against
any and all claims, obligations, liabilities, demands, losses, damages, liens, causes of actions, suits,
costs and expenses (including attorneys' fees and court costs) relating to or in any way arising from
the Property and any conduct thereon; and including any environmental condition thereon or
thereunder within the terms of Section 3.6 above. The terms and conditions of this Section shall
expressly survive the Closing and shall not merge with the provisions of any closing documents.
ARTICLE IV
TITLE
Section 4.1 Conditions of Title.
At the Closing, Seller shall convey title to the Property to Buyer by statutory warranty deed (the
"Deed") subject to no exceptions other than:
(a) Non -delinquent liens for real estate taxes and assessments; and
(b) Any exceptions disclosed by Title Documents and approved by Buyer in writing pursuant to
Section 4.2.
All of the foregoing exceptions shall be referred to collectively as the "Approved Conditions of Title."
Notwithstanding anything to the contrary contained in this Agreement, Buyer hereby disapproves all
liens evidencing secured monetary encumbrances (other than liens for non -delinquent real estate
property taxes and assessments) and Seller agrees to cause all such liens to be eliminated at
Seller's sole cost and expense (including all prepayment penalties and charges, if any) prior to or
concurrently with the Closing.
Section 4.2 Title Review.
Buyer shall have the right to approve any and all matters of and exceptions to title of the Property,
as disclosed by the following documents and instruments (collectively, "Title Documents"): (i) a
preliminary title report ("Preliminary Report") issued by Title Company with respect to the Property
and all matters referenced therein; (ii) legible copies of all documents, whether recorded or
unrecorded, referred to in such Preliminary Report; and (iii) an updated survey of the Property. Buyer
shall, not later than ten (10) business days following Buyer's receipt of the Title Documents ("Title
Review Period"), give Seller written notice ("Buyer's Title Notice") of Buyer's approval or disapproval,
which shall be made in Buyer's sole and absolute discretion, of the legal description and every item
or exception disclosed by the Title Documents. The failure of Buyer to give Buyer's Title Notice to
Seller prior to the expiration of the Title Review Period shall be deemed Buyer's disapproval of title
to the Property. If Buyer disapproves of any matter of title shown in the Title Documents, Seller shall,
within five (5) days after Buyer's Title Notice is received by Seller, give Buyer written notice (the
"Seller's Response") of those disapproved title matters, if any, that Seller is unable or unwilling to
have eliminated from title to the Property as of the Closing. Seller's failure to timely give a Seller's
Response shall be deemed Seller's agreement not to remove or to cause to be removed any
disapproved title matters identified in Buyer's Title Notice. If Seller notifies Buyer within the time
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provided above that Seller is unable or unwilling to remove any of the title matters objected to by
Buyer in Buyer's Title Notice, Buyer shall have until the date that is three (3) days after receipt of
Seller's Response to notify Seller in writing that either (1) Buyer is willing to purchase the Property
subject to such disapproved exceptions, or (2) Buyer elects to cancel this transaction. Failure of
Buyer to take either one of the actions described in clauses (1) or (2) above shall be deemed to be
Buyer's election to take the action described in clause (2) above, in which case the Deposit shall be
returned to Buyer and neither party shall have any further rights or obligations hereunder, except as
provided in Section 6.1 and Section 9.3 hereof. If Selier agrees to remove any disapproved title
matters, then Seller shall remove them prior to the Closing. Seller covenants that, after the Title
Review Period, Selier shall not cause title to the Property to differ from the Approved Conditions of
Title. Any |iane, mnoumbranceo, ennroaohnnmnte, mmommnmntn, reetrictions, oondibona, oovenante,
riQhto, rights-of-way or other matters affecting the Approved Conditions of Title that may appear of
record or be revealed after the Title Review Poriod, shall also be subject to Buyer's approval as a
condition to the Closing for Buyers benefit.
Section 4.3 Evidence of Title.
Delivery of title in accordance with the foregoing shall be evidenced by the irrevocable commitment
of Title Company to issue, at Closing, its Owner's 2006 ALTA Standard Coverage Policy of Title
Insurance in the amount of the Purchase Price showing title to the Real Property vested in Buyer,
and insuring all appurtenant aooennento, subject only to the Approved Conditions of Title and
with such endorsements as may be requested by Buyer (the "Title Policy").
ARTICLE V
RISK OF LOSS AND INSURANCE PROCEEDS
Section 5.1 Minor Loss.
Buyer shall be bound to purchase the Property for the full Purchase Price as required by the terms
hereof, without regard to the occurrence or effect of any damage to the Property or condemnation
of any portion of the Prmpmdx, provided that: (a) the cost to repair any such damage or the
diminution in the value of the remaining Property as a result of a partial condonnnsdion, does not
exceed Ten Thousand Dollars ($10,000.00) and (b) upon the Closing, there shall be a credit against
the cash portion of the Purchase Price due hereunder in an amount equal to the amount of any
insurance proceeds or condemnation awards collected by Seller as a result of any such damage or
oondennnotinn, plus the amount of any insurance deductible, less any sums expended by Seller
toward the restoration of the Property, plus any additional funds needed to fully restore the Property.
If the proceeds or awards have not been collected as of the Closing, then such proceeds or awards
shall be assigned to Buyer, except to the extent needed to reimburse Seller for any sums expended
by Seller toward the restoration of the Property. Buyer shall have the right to participate in any
adjustment of the insurance claim.
Section 5.2 Major Loss.
If the amount of the damage or destruction or condemnation as specified above exceeds Ten
Thousand Dollars ($10.000.00. then Buyer may, at its option to be exercised within ten (10)
business days of Seller's notice of the occurrence of the damage or the commencement of
condemnation proceedings, either terminate this Agreement or consummate the purchase for the
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full Purchase Price as required by the terms hereof. If Buyer elects to terminate this Agreement or
fails to give Seller notice within said ten business day period that Buyer will proceed with the
purchase, then the Deposit shall be returned to Buyer and neither party shall have any further rights
or obligations hereunder except as provided in Section 6.1 and Section 9.3. If Buyer elects to
proceed with the purchase, then upon the Closing, there shall be a credit against the Purchase Price
due hereunder in an amount equal to the amount of any insurance proceeds or condemnation
awards collected by Seller as a result of any such damage or condemnation (or, if uninsured, a credit
in the amount of the cost of repair), plus the amount of any insurance deductible, Iess any sums
expended by Seller toward the restoration of the Propmdx, plus any additional funds needed to fully
restore the Property. If the proceeds or awards have not been collected as of the Closing, then such
proceeds or awards shall be assigned to Buyer, except to the extent needed to reimburse Seller for
any sums expended by Seller toward the restoration of the Property. Buyer shall have the right to
participate in any adjustment of the insurance claim.
Section 5.3 Uninsured Casualty.
Without limiting Buyer's right to terminate this Agreement as provided in Section 5.2, if a casualty is
uninsured, the Purchase Price shall be reduced by the full amount of the cost to perform the
restoration of the Property, less any sums expended by Seller toward the restoration of the Property;
prmv|ded, hovvewer, that if the amount of any uninsured damage of the Property is in excess of Ten
Thousand Dollars ($10.000.00). then Seller may, at its option to be exercised within ten (10)
business days after the occurrence of the dannaQe, elect to terminate this Agreement by giving
written notice of such election to Buyer within that ten-day period, in which case the Deposit shall be
returned to Buyer and neither party shall have any further rights or obligations hereunder except as
provided in Section 6.1 and Section 9.3.
ARTICLE VI
BROKERS AND EXPENSES
Section 6.1 Brokers.
The parties represent and warrant to each other that no broker or finder was instrumental in
arranging or bringing about this transaction except for Nick Ritch and Mike Abrams of Heritag
Moultray Real Estate Services, LLC ("Broker"). Only upon C|oaing. Seller shall pay Broker six
percent (6.00%) of the sales price as full commission for their representation in the sale. If any other
person brings a claim for a commission or finder's fee based upon any contoct, dealings or
communication with Buyer or Seller, then the party through whom such person makes his claim shall
defend the other party (the "Indemnified Party") from such claim, and shall indemnify the Indemnified
Party and hold the Indemnified Party harmless from any and all costs, damages, claims, liabilities or
expenses (including without limitation, reasonable attorneys' fees and disbursements) incurred by
the Indemnified Party in defending against the claim. The provisions of this Section 6.1 shall survive
the Closing or, if the purchase and sale is not consummated, any termination of this Agreement.
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ARTICLE VII
SELLER'S COVENANTS
Section 7.1 New Agreements Affecting the Property.
Between the Effective Date and the Closing, Seller shall not enter into any contract or other
agreement affecting the Pmpedv, or modify, amend or terminate any agreement affecting the
Pnopody, without first notifying Buyer and without obtaining Buyer's priorxvrittmn approval, which
may be given orwithheld in Buyer's sole discretion. In connection with a requestfor Buyer's approval
of such mct|mn. Seller shall provide Buyer with information about the proposed form of agreement
and such other information as Buyer shall reasonably request. Buyer shall respond to any request
for approval within three (3) business days after receipt of a request therefor from Seller.
Section 7.2 Maintenance of the Property.
Between the Effective Date and the Closing, Seller (a) shall maintain the Property in a manner
consistent with past practices and in accordance with Seller's normal course of operation, (b) shall
maintain reasonable and customary levels and coverages of insurance,
(c) shall not create or acquiesce in the creation of liens or exceptions to title other than the Approved
Conditions of Title, and (d) shall not take or permit to be taken any action that would render any of
the representations or warranties of Seller set forth in this Agreement incorrect or untrue as of the
Closing.
Section 7.3 Termination of Contracts.
During the Contingency Period, Buyer shall provide Seller with written notice identifying the
Contracts that Buyer elects to assume at Closing, if any. If Buyer falis to provide such written notice
to Seller with respect to any Controo1. Buyer shall be deemed to have elected not to assume such
Contracts. Seller shall terminate any Contract not to be assumed by Buyer pursuant to this Section
7.3 and shall pay any fees or penalties payable with respect to the termination of such property
management agreement or Contracts.
ARTICLE VIII
CLOSING AND ESCROW
Section 8.1 Escrow Instructions.
Upon execution of this Agreement, the parties hereto shall deposit an executed counterpart of this
Agreement with Title Company, and this instrument shall serve as the instructions to Title Company
as the escrow holder for consummation of the purchase and sale contemplated hereby, as may be
supplemented by separate instructions that are consistent with this Agreement. Seller and Buyer
agree to execute such reasonable additional and supplementary escrow instructions as may be
appropriate toenable Title Company tocomply with the terms of this Agreement; provided, however,
that in the event of any conflict between the provisions of this Agreement and any supplementary
escrow instructions, the terms of this Agreement shall control.
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Section 8.2 Closing.
The Closing hereunder shall be held, and delivery of all items to be made at the Closing under the
terms of this Agreement shall be made, at the offices of Title Company on that date (the "Closing
Date") that is fifteen (15) days after the last day of the Contingency Period.
Section 8.3 Deposit of Documents.
(a) At or before Closing. Seller shall deposit into escrow the following items:
(1) the duly executed and notarized Deed in the form attached hereto as Exhibit D, conveying
the Property to Buyer;
CQtwo duly executed counterparts of an Assinment of Contracts, Warranties and Intangible
Property in the form attached hereto as Exhibit E (the "Assignment");
(3) an affidavit pursuant to Section 1445(b)(2) of the Federal Code, and on which Buyer is
entitled to rely, that Seller is not a "foreign person" within the meaning of Section
1445(f)(3) of the Federal Code; and
(4) such other authorizations, documents and information as may be reasonably required by
Title Company to consummate the transaction contemplated heroin, including, without
|innitmbon, any affidavits that Title Company may require in order to remove exceptions
contained in the ALTA Title Policy, such as those regarding bankruptcy matters.
(b) At or before Cloong. Buyer shall deposit into escrow the foltowing items:
(1) funds necessary to close this transaction; and
(2) two (2) duly executed counterparts of the Assignment.
(c) Seller and Buyer shall each deposit such other instruments as are reasonably required by
Title Company or otherwise required to close the escrow and consummate the acquisition of
the Property in accordance with the terms hereof. Seller and Buyer hereby designate Title
Company as the "Reporting Person" for the transaction pursuant to Section 6045(e) of the
Internal Revenue Code and the regulations promulgated thereunder and agree to execute
such documentation as is reasonably necessary to effectuate such designation.
(d) Contracts to be assumed by Buyer pursuant to this Agreement and the Assignment, booklets,
manuals, warranties and other documents relating to the Property or any part thereof, copies
or originals of al! the tenant correspondence files and originals of any other items that Selier
was required to furnish Buyer copies of or make available pursuant to Section 2.1 above.
Section 8.4 Prorations and Closing Costs.
(a) The following shall be prorated as of 12:01 a.m. on the date the Deed is recorded, on the
basis of a 365 -day year: real property taxes and assessments; all utility charges; amounts
payable under any contracts; annual permits and/or inspection fees (calculated on the basis
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of the period covered); and any other expenses of the maintenance of the Property. Buyer
shall cause all utilities to be transferred to Buyers name at Closing and shall post all required
deposits in connection therewith, and Seller shall be responsible for obtaining refunds of any
deposits it may have with utility companies. Buyer and Seller shall cooperate to produce prior
to the Closing Date a schedule of prorations to be made on and after the Closing Date as
complete and accurate as reasonably possible. All prorations that can be liquidated
accurately or reasonably estimated as of the Closing Date shall be made in escrow on the
Closing Date. Seller and Buyer hereby agree that if any of the aforesaid prorations and
credits cannot be calculated accurately on the Closing C)ate, or if there are any adjustments
to initially estimated proraUons, then the same shaH be calculated or adjusted as soon as
reasonably practicable after the Closing Date and either party owing the other party a sum
of money based on such subsequent prorations or credits shall promptly pay said sum to the
other party.
(b) Seller shall pay: (1) all of the excise tax applicable to the sales price of the Property; (ii) all
transfer taxes; (111) the portion of the premium for the TitIe Policy that is allocable to standard
coverage; and (iv) one half (1/2) of the escrow fees. Buyer shall pay: (i) the portion of the
premium for the Title Policy that is allocable to extended coverage and the cost of any
endorsements thereto; and (ii) one half (1C2) of the escrow fee. Any other expenses of the
escrow for the sale shall be paid by Buyer and Seller in accordance with customary practice
as determined by Title Company. Each party shall bear its own legal fees and due diligence
costs in connection with the sale.
(c) The provisions of this Section 8.5 shall survive the Closing.
ARTICLE IX
MISCELLANEOUS
Section 9.1 Notices.
Any notices required or permitted to be given hereunder shall be given in writing and shall be
delivered (a) in person, (b) by certified mail (postage prepaid, return receipt requested), (c) by a
commercial overnight courier that guarantees next day delivery and provides a receipt, (d) by fax
with confirmation of receipt, or (e) by email. Notices shall be addressed as follows:
To Buyer:
To Seller:
Heyden , LLC
Attn: Wes Heyden
1215Aaron Drive
Richland,
Fax: (509)
Email: wesaroasterscoffeanet
City of Yakima
Attn: City Manager
129 North 2nd Street
Yakima, WA 98901
Fax: (509) 576-6335
Email:
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With a copy to:
Jeff Cutter
City Attorney
City of Yakima Legal Department
200 South Third SRroet, 2nd Floor
Yakima, WA 98901-2830
Fax: (509) 575-6160
Email: ieff.cuttervakimawa.qov
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or to such other address as either party may from time to time specify in writing to the other party, in
accordance with this section. Notices delivered in parson, by certified mail or by a courier shall be
effective upon delivery or refusal to accept delivery. Notices sent by fax shail be effective upon the
date of transmission as shown by the sending party's fax machine. Notices sent by email shall be
effective upon the date of transmission as shown by the sending party's email program.
Section 9.2 Entire Agreement.
This Agreement, together with the Exhibits hmratm, contains all representations, warranties and
covenants made by Buyer and Seller and constitutes the entire understanding between the parties
hereto with respect to the subject matter hereof. Any prior conaopondencm, memoranda or
agreements are replaced in total by this Agreement together with the Exhibits hereto.
Section 9.3 Entry and Indemnity.
During the Contingency Period, and thereafter until the Closing if Buyer eiects to proceed with the
purchase after the end of the Contingency Period, Selier shaii provide Buyer with fuii access to the
Property, and the records of Seller relating thereto. Buyer shall have the right to perform and conduct
all oun/eyo, tests and studies that Buyer deems appropriate in its evaluation of the Property. In
connection with any entry onto the Property prior to Closing by Buyer, or its aAento, employees or
oontraotore. Buyer shall give Seller reasonable advance notice of such entry. Buyer's contractors
entering onto the Property shall maintain commercial general liability insurance in amounts adequate
to insure against all liability of such contractors arising out of any entry onto or inspections of the
Property pursuant to the provisions hereof, and Buyer shall provide Seller with evidence of such
insurance coverage upon request by Seller (including certificates of insurance showing Seiler as an
additional insured). Buyer shall indemnify and hold Seller harmless from and against any costs,
damages, liabilities, losses, expenses, liens or claims (including, without ||nnitmtinn, reasonable
attorney's hmma).arising out oforrelating to any entry on the Property by Buyer, its agents, empioyees
or contractors in the course of performing the inspact|one, testing or inquiries provided for in this
Agreement. The foregoing indemnity shall not extend to any diminution in value of the Property
arising from the discovery or reporting of adverse information concerning the Property. The foregoing
indemnity shall survive beyond the Closing or, if the sale is not cmneumnnnated, beyond the
termination ofthis Agreement.
Section 9.4 Time.
Time is of the essence in the performance of each of the parties' obligations contained
herein.
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Section 9.5 Attorneys' Fees.
If either party hereto fails to perform any of its obligations under this Agreement or if any dispute
arises between the parties hereto concerning the meaning or interpretation of any provision of this
Agreement, then the defaulting party or the party not prevailing in such dispute, as the case may be,
shall pay any and all costs and expenses incurred by the other party on account of such default
and/or in enforcing or establishing its rights hereunder, including, without limitation, court costs and
reasonable attorneys' fees and disbursements, reasonable costs and attorneys' fees incurred in
collecting any judgment or award resulting from such dispute, if any.
Section 9.6 Assignment.
Subject to Section 9.13, neither party may assign its rights and obligations hereunder without the
prior written consent of the other party; provided,hoxvever,UlatBuyernnayoaai n its
rights and obligations hereunder, without Seller's consent, to an entity which is owned or controlled,
respectively, by Buyer or in which Buyer is the managing member (a "Permitted Assignment"). No
assignment (other than a Permitted Assignment by Buyer) shall release the assigning party from its
obligations or liabilities hereunder accruing from and after any such assignment. Subject to the
provisions of this Section, this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns.
Section 9.7 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same instrument. Counterpart
signature pages may be detached from separately delivered counterparts of this Agreement and
attached to other, identical counterparts of this Agreement, or to a version of this Agreement that is
identical to that from which the signature page was detoohed, in order to create a fully executed
original version of this Agreement. Faxed and emailed signature pages shall be deemed originals
for all purposes.
Section 9.8 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of
Washington.
Section 9.9 Interpretation of Agreement.
The article, section and other headings of this Agreement are for convenience of reference only and
shall not be construed to affect the meaning of any provision contained herein. Where the context
so requimas, the use of the singular shall include the plural and vice versa and the use of the
masculine shall include the feminine and the neuter. The term "person" shall include any individual,
partnerohip, joint wentunm, corporadion, trust, unincorporated aseoo|obpn, any other entity and any
government or any department or agency thereof, whether acting in an individual, fiduciary or other
capacity. The term "business days" means Monday through Friday, but excluding State and Federal
holidays. If the end of the Contingency Period, the Closing Date or any other deadline under this
Agreement falls on a day that is not a business day, then such date or deadline shall be moved to
the next following business day. Unless otherwise ppmvided, the term "including" is used in its
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inclusive eenma, and not in Unnitation, regardless of whether the words "without limitation" (or words
of similar import) are used.
Section 9.10 Amendments.
This Agreement may be amended or modified only by a written instrument i ned by Buyer and
Section 9.11 No Partnership.
The relationship of the parties hereto is solely that of seller and buyer with respect to the Property
and no joint venture or other partnership exists between the parties hereto. Neither party has any
fiduciary relationship hereunder to the other.
Section 9.12 No Third Party Beneficiary.
The provisions of this Agreement are not intended to benefit any third parties.
Section 9.13 Cooperation in Exchange.
The parties ackne and agree that either party may assin its interest in this Agreement to an
exchange facilitator for the purpose of completing an exchange of the Property in a transaction which
will qualify for treatment as a tax deferred exchange pursuant to the provisions of Section 1031 of
the Internal Revenue Code of 1986 and applicable state revenue and taxation code sections (a
"1031 Exchange"). The parties agree to cooperate with one another in implementing any such
assignment and 1031 ExohanQe, provided that such cooperation shall not entail any additional
expense or cause any liability whatsoever beyond the cooperating party's existing obligations under
this Agreement. An assignment to an exchange facilitator shall not relieve the assigning party from
any of its obligations hereunder or entitle the assigning party to extend the Closing Date, nor shall
the ability to consummate a 1031 Exchange be a condition to the performance of the obligations
under this Agreement by the party seeking to achieve a 1031 Exchange. Any party requesting the
cooperation of the other party in any such 1031 Exchange shall save, protect, defend, indemnify and
hold the other party harmless from any and all costs, losses, claims, |imbi|itiea, causes of action,
finmo, penalties and other expenses (including, without limitation, reasonable attorneys' fees and
court costs and expert fees) incurred by such cooperating party as a result of such cooperation.
The parties hereto have executed this Agreement as of date set forth in the first paragraph of this
BUYER: SELLER:
HEYDEN PROPERTIES, LLC CITY OF YAKIMA
a Washington limited liability company a Washington municipal corporation
Wes Heyden
President
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By:�
C|iffMooreChxManager
22
LIST OF EXHIBITS
Exhibit A Real Property Description
Exhibit B Due Diligence Materials
Exhibit C List of Contracts
Exhibit D Form of Deed
Exhibit E Assignment of, Contracts, Warranties and Intangible Property
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EXHIBIT A
REAL PROPERTY DESCRIPTION
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EXHIBIT B
DUE DILIGENCE MATERIALS
1. Current preliminary title naport, including copies of all recorded documents affecting the
Property and a plan showing the site and all easements thereon
2. Maintenance agreements and all service contracts applicable to the Property.
3. Copies of all licenses and permits regarding the Property to the extent in Seller's or its
property manager's possession.
4. ALTA survey, engineering and soil reports and any asbestos, toxic waste, or environmental
reports previously made regarding the Property, inc|uding, but not Iimited to all Department
of Ecology findings, studies, reports and corrective action.
5. A copy of Selier's policy of title insurance.
6. Phase I environmental report and any other environmental reports in Seller's possession or
control.
7. Copies of any notices or ordinances relating to work necessary to comply with governmental
regulations.
8. Copies of current tax bilIs and insurance policies for fire and property insurance.
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EXHIBIT C
LIST OF CONTRACTS
(Show: (i) date of Contract and each amendment; (ii) name of vendor; (iii) type of service; (iv)
termination date of the Contract; (v) monthly charge or other basis for calculating amounts to become
due thereunder; and (vi) terms of cancellation by either party).
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EXHIBIT D
FORM OF DEED
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO
AND MAIL TAX STATEMENTS TO:
Wes Heyden
c/o Heyden Properties, LLC
1215 Aaron Drive
Richland, WA 99352
26
(Above Space for Recorder's Use Only)
STATUTORY WARRANTY DEED
FOR A VALUABLE CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED,
("Grantor"), hereby grants to
("Grantee"), all right, title and interest in that certain real property described
in Exhibit A attached hereto and made a part hereof.
DATED:
GRANTOR:
By:
Name:
Title:
ACKNOWLEDGMENT
STATE OF WASHIGNTON
) ss.
COUNTY OF
On 2019, before me,
personally appeared known to me to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized capacity, and that
by his signature on the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument.
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WITNESS my hand and official seal,
27
Signature (SEAL)
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28
EXHIBIT E
ASSIGNMENT OF, CONTRACTS, WARRANTIES AND
INTANGIBLE PROPERTY
THIS ASSIGNMENT OF CONTRACTS, WARRANTIES AND INTANGIBLE PROPERTY
(this "Assignment") is made and entered into aemf_. 2019, by and between (Assignor"), and
This Assignment is given pursuant to that certain Agreement of Purchase and Sale dated
2019, by and between Assignor and Assignee (the "Purchase Agreement).
All capitalized terms used but not defined herein shall have the meanings assigned to such terms in
the Purchase Agreement.
For good and valuable consideration paid by Assignee to Assignor, the receipt and
sufficiency of which are hereby acknowledged by Assignor, Assinor does hereby assign, transfer,
set over and deliver unto Assignee all of Assignor's right, tit|m, and interest in (i) those certain
contracts (the 'Contracts') listed on Exhibit C attached hereto, (ii) those certain warranties held by
Assignor (the "Warranties") listed on Exhibit C attached hereto, and (iii) the Intangible Property.
Except as otherwise expressly provided in the Purchase Agreement, Assignee aeeunnoe,
effective as of the Closing (as defined in the Purchase Agreement), the payment and performance
of, and agrees to pay, perform and d|achmqJe, all the debts, duties and obligations to be paid,
performed or discharged from and after the C|ooin0, to the extent the same arise on or after the
Closing, by (a) the owner under the Contracts, Warranties and/or the Intangible Property. Assignee
agrees to indemnify, hold harmless and defend Assignor from and against any and all claims, losses,
|iabi|iUeo, danna0eo, costs and expenses (including, without limitation, reasonable attorneys' fees)
resulting by reason of the failure of Assignee to pay, perform or discharge any of the dmbte, duties
or obligations assumed by Assignee hereunder, to the extent the same arise on or after the Closing.
Assignor agrees to indennnifv, hold harmless and defend Assignee from and against any and all
claims, losses, |imbi|iUee, dannagea, costs and expenses (including, without limitation, reasonable
attorneys' fees) arising out of or relating to the Contracts, the Warranties and the Intangible Property
arising or required to be paid, performed or discharged prior to the Closing.
All of the covenarts, terms and conditions set forth herein shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and assigns. This
Assignment may be executed in two or more oounterpohe, each of which shall be deemed an
origina|, but all of which taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, Assignor and Assignee have caused this Assignment to be
ASSIGNOR:executed on the day and year first above written.
ASSIGNEE:
By: Bv
Name: _ Name:
Title: Title:
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tea,wr.a r urw _
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Section 1.3 Purchase.
Price.
(a) The purchase price of the Property is Three Hundred Twenty Poicty Five Thousand
Dollars($32/15,000) (the "'Purchase Price").
(b) The Purchase Price shall be paid as follows;
(1) Within five (5) business days after the Effective Date, Buyer shall deposit into
escrow with Title Company the cash amount of Ten Thousand Dollars ($10,000.00)
(the 'Deposit"). The Deposit shall be held in an interest bearing account. Upon the
expiration of the Contingency Period and Buyer providing the Approval Notice
(defined below) to Seller, the Deposit shall become non-refundable except as set
forth in this Agreement.
(2) (A) IF THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER
IS CONSUMMATED, THEN THE DEPOSIT SHALL BE PAID TO SELLER AT THE
CLOSING AND CREDITED AGAINST THE PURCHASE PRICE.
(B) IF THE SALE IS NOT CONSUMMATED DUE SOLELY TO A DEFAULT BY
BUYER HEREUNDER, THEN SELLER, AS ITS SOLE REMEDY, SHALL RETAIN
THE DEPOSIT AS LIQUIDATED DAMAGES. THE PARTIES HAVE AGREED
THAT SELLERS ACTUAL DAMAGES, IN THE EVENT OF A FAILURE TO
CONSUMMATE THIS SALE DUE SOLELY TO BUYER'S DEFAULT, WOULD BE
EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. AFTER
NEGOTIATION, THE PARTIES HAVE AGREED THAT, CONSIDERING ALL THE
CIRCUMSTANCES EXISTING ON THE EFFECTIVE DATE, THE AMOUNT OF
THE DEPOSIT IS A REASONABLE ESTIMATE OF THE DAMAGES THAT
SELLER WOULD INCUR IN SUCH EVENT. BY PLACING THEIR INITIALS
BELOW, EACH PARTY SPECIFICALLY CONFIRMS THE ACCURACY OF THE
STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY WAS
REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS
AGREEMENT WAS MADE, THE CONSEQUENCES OF THIS LIQUIDATED
DAMAGES PROVISION„ THE FOREGOING IS NOT INTENDED TO LIMIT
BUYER'S OBLIGATIONS UNDER SECTION 6.1 AND SECTION 9.3.
INITIALS: SELLER BUYER
T
(C) IF THE SALE OF THE PROPERTY IS NOT CONSUMMATED DUE TO A
DEFAULT OF SELLER, THEN BUYER MAY EITHER: (1) TERMINATE THIS
AGREEMENT AND RECEIVE A REFUND OF THE DEPOSIT` AND RECOVER
FROM SELLER ANY DAMAGES INCURRED BY BUYER AS A RESULT OF SUCH
DEFAULT, IN WHICH EVENT BUYER SHALL HAVE NO FURTHER RIGHTS OR
OBLIGATIONS HEREUNDER EXCEPT AS PROVIDED IN SECTION 6.1 AND
SECTION 93 BELOW, OR (2) BUYER MAY ENFORCE SPECIFIC
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By: By:
Wes Heyden Cliff Moore
President City Manager
LIST OF EXHIBITS
Exhibit A Real Property Description
Exhibit B Due Diligence Materials
Exhibit C List of Contracts
tits Exhibit D Form of Deed
Exhibit E Assignment of,Contracts, Warranties and Intangible Property
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