HomeMy WebLinkAbout09/04/2012 09 Work Out Agreement Resolving and Retiring Indebtedness to the City by TrailWagons, Inc. From HUD Section 108 Loan Vi a.•
4 x 4
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7
For Meeting of: September 4, 2012
ITEM TITLE: Resolution authorizing the execution of a Work Out
Agreement to resolve and retire indebtedness to the City
resulting from certain HUD Section 108 Loans provided to
TrailWagons, Inc., said loans secured by certain real
property owned by Chinook Business Park, LLC and by the
personal guarantee of Gary and Mary Lukehart.
SUBMITTED BY: Jeff Cutter, City Attorney
CONTACT Jeff Cutter /575 -6030
PERSON /TELEPHONE:
SUMMARY EXPLANATION:
The City of Yakima made two loans in 2003 to TrailWagons, Inc. The first loan was made in
July, 2003 in the amount of $2,395,000, and the second loan was made in December, 2003
in the amount of $475,000. The loans were made with funds provided through the HUD
Section 108 program and the loans were secured by multiple parcels of real property owned
primarily by another business entity owned by Gary Lukehart, Chinook Business Park, LLC,
and by the personal guaranty of Gary and Mary Lukehart. TrailWagons, Inc. closed its
business operations in 2005 and thereafter has had difficulty timely paying its debt
obligations on the two City loans. Gary and Mary Lukehart have requested to enter into the
attached Work Out Agreement to resolve and retire indebtedness to the City resulting from
the HUD Section 108 Loans the City previously provided to TrailWagons, Inc , said loans
being secured by certain real property owned by Chinook Business Park, LLC and by the
personal guarantee of Gary and Mary Lukehart.
Agreement for
Satisfaction of
Loans; Request
Resolution X Ordinance Other for
(specify) Reconveyance of
Deed of Trust on
Lot 4, Parcel
191307 -34407
Contract: X Mail to: One Original Agreement to Don Boyd of Carlson
Boyd PLLC, 230 So. 2nd St., Ste. 202, Yakima, WA 98901
Contract Term: Amount: Expiration Date:
Insurance Required? No
•
Funding Phone:
Source:
APPROVED FOR
SUBMITTAL: Cit y Manager
STAFF RECOMMENDATION:
Adopt Resolution.
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
❑ Resolution - Lukehart-Trail Wagons HUD Section 108 Loan Workout Aug 2012
❑ Correspondence re City of Yakima & TrailWagons
❑ Agreement for Satisfaction of Loans re City of Yakima & TrailWagons (Gary & Mary Lukehartl
RESOLUTION NO. R -2012-
A RESOLUTION authorizing the execution of a Work Out Agreement to resolve and
retire indebtedness to the City resulting from certain HUD Section
108 Loans the City previously provided to TrailWagons, Inc., said
loans being secured by certain real property owned by Chinook
Business Park, LLC and by the personal guarantee of Gary and
Mary Lukehart.
WHEREAS, the City of Yakima, Washington made two loans in 2003 to
TrailWagons, Inc., a Washington corporation, with its principal place of business in
Yakima, Washington. The first loan was made in July, 2003 in the amount of $2,395,000
to assist TrailWagons in putting in a new manufacturing line at its Yakima, Washington
manufacturing facility. The second loan was made in December, 2003 in the amount of
$475,000 to pay off bridge loans, acquire vehicle chassis and retool for two new motor
home models. The loans were made with funds provided through the HUD Section 108
program; and
WHEREAS, TrailWagons, Inc. was owned by Gary Lukehart. The loans were
secured by multiple parcels of real property owned primarily by another business entity
owned by Gary Lukehart, Chinook Business Park, LLC, and by the personal guaranty of
Gary and Mary Lukehart; and
WHEREAS, TrailWagons, Inc. closed its business operations in 2005 and
thereafter has had difficulty timely paying its debt obligations on the two City loans; and
WHEREAS, Gary Lukehart and Chinook Business Park, LLC have sold real
property security the City loans since 2005,, ultimately leaving three parcels of real
property that continue to secure the City loans; and
WHEREAS, the current balance owed by TrailWagons, Inc. on the City loans is
$1,455,918.00. The City is holding net proceeds paid by Gary Lukehart of about
$138,000 from the prior sale of Chinook Business Park, LLC property. Additionally, the
City purchased residential Collateral from Chinook Business Park, LLC using funds from
other programs and sale of those parcels at the price paid by the City would provide
approximately $300,000.00 of additional funds. Reduction of these amounts from the
current payoff balance owed on the two loans leaves a balance of approximately
$1,018,000.00 currently due; and
WHEREAS, Chinook Business Park, LLC has a pending offer to purchase one of
the parcels of real property (commonly referred to as Lot 4 — Tax Parcel 191307 - 34407)
securing the City loans and Gary Lukehart has proposed paying the City $717,520.35 in
net proceeds from said sale to apply to the balance of the two loans; and
WHEREAS, Gary Lukehart has further proposed, after payment of the funds from
the sale of Lot 4, to deliver a quit claim deed in lieu of foreclosure for the two remaining
parcels of real property that secure the City loans (Tract A - Parcel 191307 -34405 less a
•
small section for placement of a sign commonly known as the "Welcome to Yakima Sign"
and the Kern Parcel - Parcel 181315 - 43013) in full satisfaction of the two loans. The
assessed value of Tract A is $190,300.00. The assessed value of the Kern Parcel is
$86,500.00; and
WHEREAS, Gary Lukehart has agreed to undertake all work and pay all costs and
fees attendant in obtaining and completing a short subdivision of Tract A necessary to
segregate a section for placement of the Welcome to Yakima Sign by obtaining final
approval for the segregation by December 31, 2012 and further agrees that the
segregation shall not detrimentally affect the use or zoning of the Tract A parcel as legally
allowed as of the date of the Agreement for Loan Satisfaction is executed. Gary Lukehart
and Chinook Business Park, LLC further agree that in the event final approval for the
segregation is not obtained by December 31, 2012, Chinook Business Park, LLC agrees
that it shall promptly deliver a quit claim deed in lieu of foreclosure to the City for the
whole of Tract A; and
WHEREAS, the specific terms and conditions of the satisfaction of the HUD
Section 108 Loan debt to the City are set forth in the Agreement For Loan Satisfaction,
attached hereto and incorporated herein by this reference; and
WHEREAS, the personal financial statement of Gary Lukehart dated May 2010
does not show significant value in equity in non - exempt assets; 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 the attached and incorporated
1. Agreement For Loan Satisfaction;
2. Request for Reconveyance of Deed of Trust on Lot 4, Parcel 191307-
34407; and
3. all documents necessary and appropriate for full performance of the
Agreement for Loan Satisfaction.
ADOPTED BY THE CITY COUNCIL this 4th day of September, 2012.
ATTEST: Micah Cawley, Mayor
City Clerk
RECEIVED
• AUG 1. 4. 2.0.12
CITY LEGAL DEPT.
LAW OFFICES Or
CARISON BOYD PLLC
230 S. 2 " STREET, stern 202
YAKIMA, WASHINGTON Carlson B - r'u c 1111.-- DONALD A. BOYD dboyd@cbblawfirm.com
989ot
TELEPHONE; Attorneys at Law
509-834-6611
FACSIMILE -
509-8346610
August 9, 2012 Via E -mail and First Class Mail
Mr. Mark Kunkler
Assistant City Attorney
City of Yakima
Re: City of Yakima loans to TrailWagons, Inc.
Dear Mark:
The following is brief summary of the current status of the two loans
the City made to TrailWagons, Inc. in 2003. The first loan was made in July
2003 for $2,395,000 to assist TrailWagons in putting in a new manufacturing
line at its Yakima facility. The second loan was made in December 2003 for
$475,000 to pay off bridge loans, acquire vehicle chassis and retool for two
new motor home models. The loans were made with funds provided through
the HUD Section 108 program.
The two loans to TrailWagons were secured by multiple parcels of real
property owned primarily by Chinook Business Park, LLC and by Gary and
Mary Lukehart's personal guaranty. The loans are cross - collateralized so all
collateral serves for both loans. All collateral was assigned to HUD under the
City — HUD loan that was the source of the loan funds. No City funds are at
stake in a default, however, future SIED funds could be at stake in the event
of a default and less than full payment of the underlying obligations to HUD.
When these loans were first in default in 2006, The City .had all of the parcels
appraised by Tim Vining. Between 2006 and 2009, Gary Lukehart was able
to sell three of the parcels to keep the loans current until 2009. In October
2009, Mr. Lukehart had not funds available to keep the loan payments
current and the City started using loan loss reserve funds to make the semi-
annual payments to HUD. Sporadically from 2009 through 2011, Mr.
Lukehart was able to sell additional properties to fund loan payments. A
spreadsheet attached as Attachment 1 shows the list of original Collateral
Mr. Mark Kunkler
August 9, 2012
Page 1 2
•
and the properties that were sold with the funds then applied to the loan
payments.
HUD was promptly contacted about the defaults on these loans and the
various options and issues for getting these loans paid in full, which included
possible use of Loan Reserve Funds (LLR), possible purchase of residential
real property Collateral through federal / state stimulus moneys and outright
title ownership through deeds in lieu of foreclosure.
Loan Debt Amount and Future Payments Due:
The total current debt on the two loans is about $ 1,455,918.00. The City is
holding net proceeds paid by Gary Lukehart of about $138,000 from the sale
of property. Additionally, the City purchased residential Collateral using
funds from other programs and sale of those parcels at the price paid by the
City would provide approximately $300,000.00 of additional funds.
Reduction of these amounts from the current payoff amount leaves a balance
of approximately $1,018,000.00. This figure consists of LLR funds used to
make payments to HUD and the two remaining loan payments to HUD in
August 2012 and February 2013 (listed below).
The payment due to HUD on August 1, 2012 is $349,407 and can be covered
by existing LLR funds. That payment will leave LLR funds of about
$110,00.00. The final payment to HUD due April 2013 of $184,056 will not
be fully covered by remaining LLR funds by about $74,000. A spreadsheet
showing the payment history from January 2008 is attached as Attachment
2.
Collateral Remaining to Pay Loans:
Attached as Attachment 3 is a spreadsheet summarizing the real property
collateral that remains as security for the City Loans including the Yakima
County Assessor parcel mapping information of each parcel.
There are three (3) parcels of Collateral that remain unsold: Lot 4, Tract A
(Parcel 191307 - 34405) and the Kern Parcel (Parcel 181315 - 43013).
Lot 4 is the largest property and is vacant land located South of the Tacoma
Screw facility and North of the Boise- Cascade Property. It is 6.54 acres in
size and is zoned as Residential — undeveloped property. The assessed value
of Lot 4 is $854,200.00.
Mr. Mark Kunkler
• August 9, 2012
Page 13
Tract A is a narrow roadway area that runs North and East of the Coca -Cola
bottling plant property and the Tacoma Screw property and is East of
Highway I -82. The assessed value of Tract A is $190,300.00.
The Kern Parcel is located at the Southwest intersection of 40th Avenue and
Kern Road. It is 1/3 of an acre is size and is zoned as Residential —
undeveloped property. The assessed value of the Kern Parcel is $86,500.00.
The other security for the City loans is the personal guaranty of Gary and
Mary Lukehart. The last Financial Statement obtained from the Lukeharts
is for May 2010. A copy is attached as Attachment 4.
Lukehart Proposal for Satisfaction of Loans:
Over the past year, Gary Lukehart has sought to sell these properties and
made several proposals to The City to satisfy the City loans. Attached as
Attachments 5 and 6 are my July 9, 2012 and July 31, 2012 correspondence
with Morrie Shore, attorney for the Lukeharts, regarding the proposals.
The summary of the proposal is as follows:
1. Sale of Lot 4 and payment to the City of $717,520.35.
2. Chinook Business Park, LLC deeds to The City the other two
parcels that serve as collateral for the two loans; Parcel 191307-
34405 and Parcel 181315- 43013.
3. Gary Lukehart wishes to carve a small area out of Tract A that
he will retain ownership of. He then will move the "Welcome To
Yakima" sign from its current location on Lot 4 onto the
segregated part of Tract A.
4. Upon completion of items 1 through 3, the City would release
the personal guarantees it holds against Gary and Mary
Lukehart.
Michael Morales agreed to this proposal, subject to final approval of the City
Council.
I was notified this week that Mr. Lukehart has a sale pending on Lot 4. A
copy of the e -mail from Barbara Carr, Mr. Lukehart's assistant dated August
7, 2012 is attached as Attachment 7. Ms. Carr states the sale is pending in
Mr. Mark Kunkler
August 9, 2012
Page I 4
•
the gross sale price of $ 849,420.00. Closing is ready at this time and Gary
Lukehart has requested approval for this transaction as soon as possible.
In order to complete the resolution of this matter, the City will need to agree
to the terms of this proposal and appoint an agent to sign a Request for
Reconveyance of Deed of Trust against the Lot 4 property. A Resolution
from the City Council should be prepared to deliver to the title company
closing the transaction.
If the City Council approves this proposal I recommend that an Agreement
stating the terms of the proposal be prepared and approved. The Agreement
will need to state the City will receive clear title to both Tract A Parcel (less
the segregated area for the "Welcome to Yakima" sign) and the Kern Parcel.
Please let me know if you have any questions regarding this summary or if
you need any further information regarding this matter.
Very Truly Yours,
4?f
onald A. Boy
Encl.
cc. Tony O'Rourke (Yakima City Manager) w /encl.
x: \city o 20009 \ trailwagons - 2003015 \2012 \correspondence \kunkler 080912 (ltr re trailwagons loan - workout
summary).docx
SUMMARY OF C '_LATERAL
FOR TRAILW. LOANS
parcel number location owner 2006 Vining Sr Liens 2009 Vining Equity - Sale or
Loan No. 1 Appraisal Appraisal Sale Value Vining Appraisal
$2,395,000
July, 2003
•N / 0 191318 -43003 1005 E. Lincoln Chinook Business Park, LLC $ 810,000.00 $ 296,000.00 $ 810,000 00 $ - City obtained thru Deer
First Savings Bank
J 4-9439743923 401 E S. St. Chinook Businocc. Park, LLC $1,120,000.00 $ 652,000.00 $ 1,085,000.00 $ - Foreclosed by Wheatla
Wheatland Bank
$ 50,000.00
Central Valley Bank
A 191307 -33441 Vacant Chinook Business Park, LLC $ 275,000.00 $ - $ 30,000.00 City purchased in 2010
B 191307 -33442 Vacant $ 17,500.00 City purchased in 2010
C 191307 -33439 Residence $ 40,000.00 City purchased in 2011
D 191307 -33438 Vacant $ 30,000:00 City purchased in 2010
E 1 91 307 -3301 4 Residence $ 110,000 00 City purchased in 2011
F 191307 -33018 Vacant $ 74,100.00 City purchased in 2010
$ 275,000.00 $ - $ 601,000.00 $ 301,600.00
191307 -34007 Lot 4 Chinook Business Park LLC $ 724,000.00 $ - $ 1,142,000 00 $ 1,142,000.00
G 191307 -34405 Tract A Chinook Business Park LLC $ 246,000.00 $ - $ 246,000.00 $ 246,000.00
Loan No. 2 -
$475,000
Dec. 24, 2003
191307 -34007
1 91 31 8 -21 001 Lot 4 Chinook Business Park LLC See above
181315 -43013 40th Ave. - Kern Rd. $122,000 $ - $122,000.00 $122,000.00
Kern Property
ALL PROPERTY EQUITY $3,572,000.00 $ 998,000.00 $ 4,006,000.00 $ 301,600 00 $ 1,510,000.00
n
rn
z
Trailwagons 2003 and 2004
Funds received 1/8/2008 - $302,000.00
ons
Trailwagons Trailwagons
E;
City Loan HUD 2003 Loan 2004 Loan Balance E—
Due Date Due Date $ 302,000.00
i.i.l
1/15/2008 1/23/2008 HUD 108 Loan Payment 28,114.95 32,836.70 $ 241,048.35
4/15/2008 7/22/2008 HUD 108 Loan Payment 28,114.95 32,836.70 $ 180,096.70
10/15/2008 1/22/2009 HUD 108 Loan Payment 127,614.95 32,836.70 $ 19,645.05
4/15/2009 7/22/2009 HUD 108 Loan Payment (Partial) 15,519.59 4,125.46 $ -
TOTAL PRORATION 199,364.44 102,635.56 $ 302,000.00
Funds received 7/1/2008 - $150,000.00 $ 150,000.00
4/15/2009 7/22/2009 HUD 108 Loan Payment 112,095.36 28,711.24 $ 9,193.40
10/15/2009 1/22/20010 HUD 108 Loan Payment $ 7,538.59 $ 1,654.81 $ -
119,633.95 30,366.05 150,000.00
Payment due by 10/15/2009 (to HUD by 2/1/10)
Principal $ 126,000.00 $ 27,000.00 $ 153,000.00
Interest $ 24,314.05 $ 5,713.50 $ 30,027.55
$ 150,314.05 $ 32,713.50 $ 183,027.55
Less Payment received 7/1/2008 $ (9,193.40)
TOTAL 10/15/2009 PAYMENT $ 173,834.15 Paid with Loan Loss Reserve
Payment due by 4/15/2010 (to HUD by 8/1/10)
Principal $ 126,000.00 $ 27,000.00 $ 153,000.00
Interest $ 24,314.05 $ 5,713.50 $ 30,027.55
•
TOTAL 4/15/2010 PAYMENT $ 150,314.05 $ 32,713.50 $ 183,027.55 Paid with Loan Loss Reserve
Payment due by 10/15/2010 (to HUD by 2/1/11)
Principal $ 131,000.00 $ 28,000.00 $ 159,000.00
Interest $ 19,085.05 $ 4,479.60 $ _ 23,564.65
TOTAL 10/15/2010 PAYMENT $ 150,085.05 $ 32,479.60 $ 182,564.65 Paid with Loan Loss Reserve
ITOTAL PAYMENTS PAST DUE AS OF 12/31/2010 $ 539,426.35 I
Payment due by 4/15/2011 (to HUD by 8/1/11)
Principal $ 131,000.00 $ 28,000.00 $ 159,000.00
Interest $ 19,085.05 $ 4,479.60 $ 23,564.65
TOTAL 4/15/2011 PAYMENT $ 150,085.05 $ 32,479.60 $ 182,564.65 Paid with Loan Loss Reserve
Payment due by 10/15/2011 (to HUD by 2/1/12)
Principal $ -
Interest $ 13,268.65 $ 3,138.40 $ 16,407.05
TOTAL 10/15/2011 PAYMENT $ 13,268.65 $ 3,138.40 $ 16,407.05 Paid with Loan Loss Reserve
(TOTAL PAYMENTS PAST DUE AS OF 12/31/2011 $ 738,398.05 I All paid with Loan Loss Reserves
Less balance in COY Fund 123 Custodial Acct as of 6/26/12 (138,989.69)
(TOTAL OWING AS OF 6/30/2012 $ 599,408.36
Remaining Payments Due
• to HUD: Payment due by 4/15/2012 (to HUD by 8/1/12)
Principal $ 272,000.00 $ 61,000.00 $ 333,000.00
Interest $ 13,268.65 $ 3,138.40 $ 16,407.05
$ 423,789.65 Loan Loss ReservE
TOTAL 4/15/2011 PAYMENT $ 285,268.65 $ 64,138.40 $ 349,407.05 $ (349,407.05) 5/31/12 Balance
Before paying 8/1
Future Payments: Payment due by 10/15/2012 (to HUD by 2/1/13)
Principal $ 143,500.00 $ 32,000.00 $ 175,500.00
Interest $ 6,931.05 $ 1,625.60 $ 8,556.65
TOTAL 10/15/2011 PAYMENT $ 150,431.05 $ 33,625.60 $ - 184,056.65 $ (184,056.65)
Payment due by 4/15/2013
Principal $ 143,500.00 $ 32,000.00 $ 175,500.00
Interest $ 6,931.05 $ 1,625.60 $ 8,556.65
TOTAL 10/15/2011 PAYMENT $ 150,431.05 $ 33,625.60 $ 184,056.65 $ (184,056.65)
Total Remaining Payments Due to HUD: $ 717,520.35 $ (293,730.70) Loan Loss ReservE
•
TRAILWAGON r SUMMARY
•
1005 PROPERTY INCLL AS COLLATERAL
parcel number location owner Vining Senior Remaining Equity
Loan No. 1 Appraisal Liens Vining Appraisal
$2,395,000
July, 2003
191307 -34007 Lot 4 Chinook Business Park LLC $ 1,142,000.00 $ - $ 1,142,000.00
G 191307 -34405 Tract A Chinook Business Park LLC $ 246,000.00 $ - $ 246,000.00
Loan No. 2 -
$475,000
Dec. 24, 2003
191307 -34007 Lot 4 (above) Chinook Business Park LLC
181315 -43013 40th Ave. - Kern Rd. $122,000.00 $ - $122,000.00
ALL PROPERTY EQUITY $ 1,510,000.00 $ - $ 1,510,000.00
ALL PROPERTY EQUITY (Appraised Value) $ 1,510,000.00
Loan Debt after Frisbee Vacant Property / 1005 Banner Bank Loan Transactions $ 1,456,000.00
LESS:
Funds held by City from Lukehart property sales $ (138,000.00)
Value of property purchased by City from Lukehart from other program funds $ (300,000.00)
Loan Debt after deductions: $ 1,018,000.00
80% Loan to Value Threshold $ 1,208,000.00
City Cushion on Loan to Value Ratio $ 190,000.00
ATTACHMENT 3 (gp )
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PROPERTY PHOTOS. Llj — 1 PROPERTY INFORMATION AS OF 8/812012 1200:33 AM f PRINTING
!Parcel Address: 607 E R ST, YAKIMA ,WA 98901
;Parcel Owner(s): -- — CHINO CHINOOK BUSINESS PARK LLC Printer -
[Parcel Number � develo
19130734007
I ;Parcel Size: ed 6.54 Acre (s) Friend} Pa e
f - -- — — y 9
_ 1 Use: '' Residential land Unp —
aUCr c E s
E , # + r., " , s f'Q 1 TAX ANO ASSESSMENT INFORMATION Detailed
r ?0 . r Report
1
Y j � y r , ,Tax Code Area (TCA): 1333 Tax Year: 2012 _
1, . y l) < �.. cs �" A r *1 'improvement Value: $0 Land Value: 9854200 — -- — • --
G_,,,..4,,,,,,;:, r F F 4 x , . *i ICurrentUse Value: $0 CunentUse Improvement' $0 — -- Print Detailed
„5"�i. ""' '>Y , T+ i j -- -- --- ^- -.._ _ MAP
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New Construction: $0 Total Assessed Value: $854200
RESIDENTIAL INFORMATION SECTION MAPS
Qualit y Year Built Stories 'Alain SqFt S Ft Upper SqFt Bsmt SqFt Bedrooms B fu athroo ll3l4 s 1 /2) ( Gara bsmt latf/ ge
_ (m b Section Map
No Residence Information Found. tin =40Uft
_ — SALE INFORMATION Qtr SECTION MAPS
Excise Sale Date -- _!Sale Price ;Grantor (Portion _ -- NW-Qtr 1 NE -Qtr
-- No Sales information Found. _ 1 " =200ft 1" =20011
DISCLAIMER
While the Infomtatlon is intended to be accurate, any manifest errors ars unintentional and subject to correction. Please let us know SWQtr 1 SE-Qtr
1 " =2001t I " =200f t
about any errors you discover and we will correct them. To contact us call either (509)574-1100 or (800)572-7354. or email us. . �_
_______ —_ — OVERLAY INFORMATION —
Zoning: RD Jurisdiction: Yakima (Urban Area Zoning Ordinance)
Urban Growth — -- — _ — — _-_• °-_--._ _ --
Area: Yakima Future Landuse Designation: (IND) Industrial (Yakima Urban Area Plan)
Area._ _..___..
Not in floodplain (X PROTECTED BY Download
FEMA 100 Year: LEVEE) FIRM Panel Number. 53077C10510
} Map
LOCATION INFORMATION
+ Latitude:46°37' 19.370" 1+ Longitude: -120° 30' 02.478" IRange:l9 Township:13 Section:07
Narrative Description: Section 07 Township 13 Range 19 Quarter SW: BEG 1689.01 FT S 88" 31' 26" E OF SW COR SW114, N 32 ^51'58 "E 167.36 FT, TH N
12 ^59'43 "W 111 FT, TH S 57 ^08'02 "E 71.59 FT, TH CURV TDELTA 34 ^38'49" CHORD119.11 FT, TH CURV TO RT RAD200 FT DELTA 21 ^18'13
CHRD73.94 FT, TH N 21^ 23' 00" E 186.27 FT, TH N 52" 48' 00" E 109 FT, TH S 32 ^34'E 520 FT, TH S 35 ^45' 194 F00" W 178 FT, TH N 88^ 00' 00" W 127
FT, TH N 68" 15' 00" W 116 FT, TH N 88^ 00' 00" W 298.48 FT, TH N 174.30 FT, TH S 88 ^31'26 "W 144,06 FT TO POB ( CONTAINING 285,606 SQ FT )
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MAP AND PARCEL DMA ARE BELIEVED 70 BE ACCURATE, BUT ACCURACY IS NOT GUARANTEED; THIS IS NOT A LEGAL DOCUMENT AND SHOULD
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— - PROPERTY PHOTOS. J i PROPERTY INFORMATION AS OF 81812012 12 :08:33 AM i PRINTING
—. —
- 1 Parcel Address: N 40TH AVE/KERN RD, YAKIMA ,WA 98902
Parcel Owner(s): D 8 M_ARYM LUKEHART Printer-
Parcel Number: 18131543013 TParcel Si 0.33 Acre(s) Friendly Page
.- 4: (: `,. '�i, Property Use 91 Residential land Undeveloped
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about any errors you discover and we will correct them. To contact us call either (509) 574-1100 or (800) 572 -7354, or email us. 1 " =200!1 1 " =200!1
OVERLAY INFORMATION
Zoning: IB-1 _ _ Jurisdiction: Yakima (Urban Area Zoning Ordinance)
Urban Growth Area: Yakima Future Landuse Designation: (PO) Professional Office (Yakima Urban Area Plan)
FEMA 100 Year' Not In floodplain (X) FIRM Panel Number: 53077010310 Download
Map
LOCATION INFORMATION
1 Latitude:46 °36'37.336" f+ Longitude:120 °33'42.787" IRange:18 Township:13 Section:15
Narrative Description: PTN NW1 /4 SWIM SE114 LY W'LY OF NORTH4OTH AVE
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PROPERTY PHOTOS: .11 PROPERTY INFORMATION AS OF 018/2012 12:08:33 AM PRINTING
I AIIV,,4,? Parcel Address: R ST/E OF NACHES AVE, YAKIMA ,WA 98901
I:War,:f.0 •.I Parcel Owner(s): _ ... CHINO CHINOOK BUSINESS PARK LIG
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TAX AND ASSESSMENT INFORMATION
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•••: ITax Code Area (TCA): 333
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SALE INFORMATION Qtr SECTION MAPS
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No Sates Information Found.
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DISCLAIMER
SW-Qtr SE-Qtr
While the information is intended to be accurate, any manifest errors are unintentional and subject to correction, Please let us know 1"..200ft 1 1"•-
about any errors you discover and we will correct them. To contact us call either (509) 574.1100 or (800) 572-7354, or email us.
OVERLAt INFORMATION
Zoning: RD Jurisdlotion:IYakima (Urban Area Zoning Ordinance)
Urban Growth • • 1
Yakima Future Landuse Destgnalton: Industrial (Yakima Urban Area Plan)
Area:
Not in floodplain (X PROTECTED BY Download
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FEMA 100 Year FIRM Panel Nber: i S3077C10320
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LOCATION INFORMATION
.1. Latitude:46 3T 26432 __ELongitude:-120° 30' 13.328" IRange:19 Township:13 Section:07
Narrative Description: BSP AF 7204253: TRACT A
DISCLAIMER
MAP AND PARCEL DATA ARE BELIEVED TO BE ACCURATE, BUT ACCURACY IS NOT GUARANTEED; THIS IS NOT A LEGAL DOCUMENT AND SHOULD II
NOT BE SUBSTITUTED FOR A TITLE SEARCH, APPRAISAL, SURVEY, FL000PLAIN OR ZONING VERIFICATION
http://www.yakimap.com/servletkom.esri.esrimap.Esrimap?name=YakGISH&Left=163858... 8/9/2012 1
1
GARY D. AND MARY M. LUKEHART
STATEMENT OF FINANCIAL CONDITION
May, 2010
ASSETS
Real Estate Investments
Chinook Business Park, LLC 3,037,032
Madeline Properties, LLC 300,000
Gary and Mary Lukehart 142,000
Yakima Hotel LLC 4,860,000
Personal Effects 75.000
Total Assets $ 8,414,032
LIABILITIES
Mortgages and Contracts $ 5,801,525
Other Commitments and Obligations 1,247,500
Total Liabilities 7,049,025
•
NET WORTH $1,365,132
ATTACHMENT if (7pale4.)
GARY D. AND MARY M. LUKEHART
NOTES TO FINANCIAL STATEMENT
May, 2010
Note 1 — Trusts:
Gary D. and Mary M. Lukehart's personal residence and land are owned by the
Running Springs Irrevocable Trust. The beneficiaries are their children. These
assets /liabilities have not been included in the personal financial statement.
Note 2 — Limited Liability Company Interests:
Chinook Business Park, LLC, Yakima Hotel, LLC, and Madeline Properties,
LLC. The Limited Liability Companies own commercial real estate
properties.
A summary of the unaudited assets, liabilities and results of operations follows.
Note 3 — Commitments and Contingencies
H.U.D
Note 4 — Gary and Mary Lukehart Properties
1
•
GARY D. AND MARY M. LUKEHART
NOTES TO FINANCIAL STATEMENT
May, 2010
Note 2 — Limited Liability Company Interests — cont'd
Yakima Hotel LLC
Assets:
Commercial real estate property located at 137 North
Fair Avenue 4,500,000
Vacant lot at 141 North Fair Avenue 360,000
Total Assets 4,860.000
Liabilities:
Note A, to Berkadia Bank at 6.142 %; monthly payment
of $67,640; payment includes seasonal reserves;
collateralized by Fairfield Inn & Suites Hotel by Marriott 4,770,563
Note B to Wachovia Bank, at 12.95 %A; monthly payment
of $7,760.14, collateralized by Faird Inn & Suites Hotel
by Marriott • 351,255
Note payable to Brian Sims, interest only payments at 9.818 %;
$600 /monthly; due August, 2010. Collateralized by land at
141 North Fair Avenue 60,000
Note payable to Tower Capital Management 200,000
(This note is also collateralized with the 5 acre vineyard)
Total Liabilities 5,381,818
The Fairfield Inn & Suites by Marriott is owned by Yakima Hotel LLC. Gary Lukehart
Is the managing member and Mary Lukehart is the member. The Hotel is
managed by Intermountain Management LLC located in Monroe, Louisiana.
All aspects of the Hotel are operated by this Marriott approved firm. Due to the down turn in
not only our local market but nationally as well, our hotel has been going through
financially challenging times. Because of this trend, the Lukeharts have not and
will not be receiving any income from the hotel this year.
2
•
GARY D. AND MARY M. LUKEHART
NOTES TO FINANCIAL STATEMENT
May, 2010
Note 2 — Limited Liability Company Interests — (continued)
CHINOOK BUSINESS PARK
Assets:
Cash 125
Equipment 5,000
Various vacant lots and rental houses held for investment at North 3 4
and 5 Streets at East "Q ", "R ", and "S" Streets 2,221,907
Building located at 1005 East Lincoln based on recent appraisal 810,000
Total Assets 3,037,032
Liabilities:
Note payable to Banner Bank of WA due in monthly payments of
$2,899 including interest at 8 5 %; collateralized by 1005 East Lincoln and
assignment of all related rents; balance due July 30, 2010 292,000
Note payable to Yakima National Bank, monthly payments of $1,115 including
interest at 4% collateralized by properties at North 4th and East "S" Streets.
Originally constructed as additional parking for HouseValues formerly
located at 1700 North 6th Street 127,707
Total Liabilities $419,707
3
•
GARY D. AND MARY M. LUKEHART
NOTES TO FINANCIAL STATEMENT
May, 2010
Note 2 — Limited Liability Company Interests - cont'd
Madeline Properties, LLC
Gary and Mary Lukehart are the managing members of the LLC which owns
some open pasture land and a producing five acre vineyard. A summary of the
unaudited assets, liabilities and results of operations of Madeline Properties, LLC
at May, 2010 are as follows:
Assets
Cash -
Land on South Naches Road, 27.46 acres pasture; 5 acres grapes based on
FMV 300,000
Total Assets 300,000
Liabilities
Note Payable Tower Capital Management (200,000)
(this note is also collateralized with property at
141 North Fair Avenue)
Total liabilities ($200,000)
4
•
GARY D. AND MARY M. LUKEHART
NOTES TO FINANCIAL STATEMENT
May, 2010
Note 4 - Gary and Mary Lukehart Properties
Two pieces of property are held in the names of Gary D. and Mary M.
Lukehart. Both properties are open lots; one is located off 1/82 and
Spruce Street and one is at 40 Kern Road. Values are based on a
recent appraisai.
Assets $142,000
•
GARY D. AND MARY M. LUKEHART
NOTES TO FINANCIAL STATEMENT
May, 2010
Note 3 — Commitments and Contingencies
Section 108 HUD Loan through the City of Yakima. 1,434,220.00
Total Commitments and Contingencies
6
•
Ltw OII10ES Or ..,. - .. BoYDPLLC
z W GTE ; 202 Carlson fJ I' LLC DONALD A. aw BoYv
dUuydC�cUUlawfinn.com
98901
till Attorneys at Law
509$344611
PACffiS¢EI
509.8346610
July 9, 2012 Via AMS and e -mail
Mr. Morrie Shore
Stokes Lawrence Velikanje, Moore & Shore
1433 Lakeside Court, Suite 100
Yakima, Washington 98902
Re: City of Yakima Section 108 Loan to Trail Wagons, Inc.
Dear Morrie:
Michael Morales has reviewed the latest proposal from Gary Lukehart
regarding resolution of the two debts owed by TrailWagons, Inc. to The City of
Yakima. The current balance of the future payments owed. to HUD under these
loans is $717,520.35. This includes the interest payments due in August, 2012,
February 2013 and August 2013.
Michael Morales will recommend to the City Council that they accept a work-
out of this matter on the following terms:
1. The City receives the full net proceeds of any sale from the sale of
the Lot "4" property (Parcel 191307- 34007) up to the amount the
City must still pay to HUD which amounts to $717,520.35.
However, the City would not agree to any sale of that property
that provided less than a net payment to the City of less than
$600,000.00; and,
2. Chinook Business Park, LLC deeds to The City the other two
parcels that serve as collateral for the two loans; Parcel 191307-
34405 and Parcel 181315 - 43013.
In such event, The City would have the debt to HUD satisfied and would
release the Lukeharts' personal guarantee. I attach with this letter a
spreadsheet that shows the amount of the debt owed if fully collected from
liquidation of The City collateral. This proposal provides The City with cash.
ATTACHMENT S (G2P41°)
• Mr. Morrie Shore
July 9, 2012
Page 2 of 2
and with property that will serve City purposes at a value that the City
believes equates to the full value of the debt owed.
The City would use the cash payment to make the payments on the two loans
to HUD as those come due in the future. As such, no bond defeasance is
required and those costs would not be incurred.
With regard. to Gary Lukehart's request that the "Welcome To Yakima" sign be
kept on the Lot A ( "roadway ") parcel, the City cannot agree to that condition.
The reason being that the property's use for the future cannot be known and
any limitation on the future use of the property by having the sign in place may
impair the value and usefulness of the property. Further, the City believes
that the Washington State Department of Transportation will not allow the
City to keep the sign up under "free speech ", which is the only reason that Mr.
Lukehart is allowed to keep it on private property. Since the City is a public
entity, it will likely be ordered to remove the sign. In addition, the City cannot
assume any liability for anything that could happen if the sign were to fall.
The City would agree that Gary can take the sign prior to any sale or the City
would agree to donate the sign to the Yakima Museum or other charity.
I ask that you review this proposal with the Lukeharts and let me know their
response by Friday, July 13, 2012.
Very Truly Yours,
1
Donald A. oyd
cc. Michael Morales
x: \city of yaldma- 20009 \traiiwagons - 2003016 \2012 \correspondence \shore 070212 - 3 (ltr re city - trailwagons workout proposal).docx
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•
LnwOca$Oe
C. nsoN BOYD PLLC
230 S. V"' snaaEr, SUITE 202 • DONALD A. BOYD
Ynaut, WASHINGTON i Boyd PLLC dboyd@chblawfirm.com
63 JL 11 iJ
98901 .
'[tuYUONe, . Attarneys :at. Law
509834.6611
PArSIAala,
509.834.6510 '
July 31, 2012 Via AMVIS and e-mail
Mr. Morrie Shore
Stokes Lawrence Velikanje, Moore & Shore
1433 Lakeside Court, Suite 100
Yakima, Washington 98902
Re: City of Yakima Section 108 Loan to Trail Wagons, Inc.
f -
Dear Morrie:
The City of Yakima has reviewed the proposal from Gary Lukehart regarding the
Welcome to Yakima sign and placement of that sign from its existing location at the
Southeast corner of Lot 4 to the triangular portion of Lot A (the roadway parcel) as
shown on. the attached map that was submitted by Mr. Lukehart.
The City will not foreclose this proposal, but reserves its decision on this proposal
pending a showing this proposal is legally and practically feasible. The City requires
that all work to arrange for the transfer of the sign location be done and paid for by
Mr. Lukehart prior to the City making a final decision on this issue. This includes all
work necessary to obtain a segregation of the area legally necessary to place the sign
on the area and a showing that the remaining roadway area on this parcel is legally
sufficient for use of the roadway.
Any final decision on a resolution of the City loans to TrailWagons also requires that a
sale of Lot 4 be completed that will provide The City with funds in accordance with my
prior letters. I ask that you review this proposal with the Lukeharts and let me know
their response by Friday, August 10, 2012,
Very Truly Yours,
Donald A. B o
Y
Encl.
cc. Jeff Cutter w /encl.
Tony O'Rourke w /encl.
x: \city of Yakima- 20009 \trailwagons•2003015 \20 [2 \correspondence \shore 073112 (ltr re city • trailwagons workout propoaal).docx
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1� $ m & e PROPERTY EXHIBIT ! ° ti ♦ Ha Lonman Associates, Inc.
y i for, GARYLUREHART /f, -,
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CITY OFYAKIMA, YAWMA COUNiY ` - »M .......1.4.. Ga. lm .N - _rA 011101 . N. ♦ OM) vaaocaom Cml aN -scm
Don Boyd
To: Barbara Carr; Morrie Shore
Cc: Jeff Cutter Ocutter @ci.yakima.wa.us); Davenport, Joan (jdavenpo @ci.yakima.wa.us), Price,
Cally (cprice @ci.yakima.wa.us)
Subject: RE: Gary Lukehart - HUD loan payoff
Barbara,
I forwarded your email to The City. Jeff Cutter, the City Attorney, who I have been communicating with after Michael
Morales left the City appears to be out of the office for a few days. I forwarded the message to others at the City as well
and will reply to you as soon as I receive a reply. Can you tell me what the anticipated closing date is to be so I can
forward that to the City.
Don
From: Barbara Carr fmailto:tcmbarbftyvn.com]
Sent: Tuesday, August 07, 2012 11:19 AM
To: Don Boyd
Subject: Gary Lukehart - HUD loan payoff
Hi, Don —
We are currently in escrow with Valley Title. The Dolson Company has agreed to purchase lot
4 of the Chinook Business Park for $849,420.00. We will need a release on this lot for the
$717,520.35 the City will be receiving. The other two lots 191307 -34405 and 181315 -43013
will still remain as security. I'm working with Huibregtse, Louman on breaking off the parcel
for the sign. They told me this would take a couple of weeks. Mary & I will release those
parcels as soon as we accomplish this.
Kristy Perrault at Valley Title is the one handling the transaction.
Barb
For Gary Lukehart
1 ATTACHMENT
AGREEMENT FOR SATISFACTION ACTI N OF LOANS
PARTIES:
-
LUKEHART - Gary Lukehart and Mary Lukehart, husband and
Wife;
CBP- Chinook Business Park, LLC, a Washington limited
liability company;
CITY - The City of Yakima, a Washington municipal
corporation.
RECITALS:
1.1 In 2003, the City of Yakima, Washington made two loans to TrailWagons,
Inc., a Washington corporation, with its principal place of business in Yakima,
Washington. The first loan was made in July, 2003 in the amount of $2,395,000 to
assist TrailWagons in putting in a new manufacturing line at its Yakima, Washington
manufacturing facility. The second loan was made in December, 2003 for $475,000 to
pay off bridge loans, acquire vehicle chassis and retool for two new motor home models.
The loans were made with funds provided through the HUD Section 108 program.
1.2 TrailWagons, Inc. was owned by Gary Lukehart. The two loans were
secured by multiple parcels of real property owned primarily by another business
entity owned by Gary Lukehart, Chinook Business Park, LLC, and by the personal
guaranty of Gary and Mary Lukehart.
1.3 TrailWagons; Inc. closed its business operations in 2005 and thereafter
has had difficulty timely paying its debt obligations on the two City loans.
1.4 Gary Lukehart and Chinook Business Park, LLC have sold certain real
property securing the City loans since 2005, ultimately leaving three parcels of real
property that continue to secure the City loans.
1.5 The current balance owed by TrailWagons, Inc. on the City loans is
approximately $1,455,918.00. The City is holding net proceeds paid by Gary Lukehart
to the City of about $138,000 from the prior sale of Chinook Business Park, LLC
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SATISFACTION - 1 -
Additionally, the •
property. y, City purchased residential Collateral from Chinook
Business Park, LLC using funds from other programs and sale of those parcels at the
price paid by the City would provide approximately $300,000.00 of additional funds.
Reduction of these amounts from the current payoff balance owed on the two loans
leaves a balance of approximately $1,018,000.00 currently due.
1.6 Chinook Business Park, LLC has a pending offer to purchase one of the
parcels of real property (commonly referred to as Lot 4 — Tax Parcel 191307- 34407)
securing the City loans and Gary Lukehart has proposed paying the City $717,520.35
in net proceeds from such sale to apply to the balance of the two loans; and
1.7 Gary Lukehart has further proposed after payment of the funds from
the sale of Lot 4 to deliver a quit claim deed in lieu of foreclosure for the two
remaining parcels of real property that secure the City loans (Tract A - Parcel
191307 -34405 less a small section for placement of a sign commonly known as the
"Welcome to Yakima Sign" and the Kern Parcel - Parcel 181315- 43013) in full
satisfaction of the two loans. The assessed value of Tract A is $190,300.00. The
assessed value of the Kern Parcel is $86,500.00; and,
1.8 Gary Lukehart has agreed to undertake all work and cost attendant in obtaining
a short subdivision of Tract A necessary to segregate a section for placement of the Welcome
to Yakima Sign by no later than December 31, 2012.
1.9 The personal financial statement of Gary Lukehart dated May 2010 does not
show significant value in non - exempt assets.
1.10 The parties wish to document their agreement for the satisfaction of
the two loans and debt evidenced thereby owed by TrailWagons, Inc. and Lukehart
to the City on the terms and conditions set forth below.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual
covenants and agreements hereinafter set forth and other valuable consideration,
AGREEMENT FOR LOAN
SATISFACTION - 2 -
the receipt and sufficiency of whi
•
ch p y Inch is hereby acknowledged, the parties hereby
agree as follows:
1. Recitals.
The Recitals set forth above are hereby incorporated into and made a
part of this Agreement, and are true and correct as of the date of execution of this
Agreement.
2. Acknowledgement of Indebtedness - Warrantees.
TrailWagons, Inc. and Lukehart hereby admit and acknowledge that
they are indebted to the City as stated in Recital 1.5, above, and that there are no
claims, offsets or counterclaims in favor of them, any of their business entities or
the community which would reduce that amount.
Gary Lukehart and Mary Lukehart specifically warrant and represent
to the City that their personal financial statement of May 2010 fully and properly
represents their current financial condition and there has been no significant
change in their financial condition that would allow the City of Yakima to recover
significantly greater recovery under their Personal Guarantee to the City of
Yakima.
3. Satisfaction of Debt.
By this Agreement, the parties agree as follows:
3.1 The City will agree to execute and deliver to the title company of
Lukehart's choosing a Request for Reconveyance of the City Deed of Trust
encumbering Lot 4 — Tax Parcel 191307 -34407 in exchange for delivery to the City
of funds from the sale of Lot 4 in the net amount of $717,520.35, provided that the
City Request for Reconveyance shall state that the debt owed by TrailWagons, Inc.
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SATISFACTION - 3 -
partially •
and Lukehart is only p y satisfied and that the Promissory Notes evidencing
the debt shall not be delivered to TrailWagons, Inc. and Lukehart;
3.2 Gary Lukehart and Chinook Business Park, LLC agree that
they will deliver to the City of Yakima a quit claim deed in lieu of foreclosure
covering the Kern Parcel - Parcel 181315 -43013 no later than September 30, 2012;
3.3 Gary Lukehart and Chinook Business Park, LLC agree that
they will deliver to the City of Yakima a quit claim deed in lieu of foreclosure
covering the Tract A property - Parcel 191307- 34405, Less as small a section of
Tract A as is legally necessary for placement of the sign commonly known as the
"Welcome to Yakima Sign" on such segregated area of Tract A. Gary Lukehart
agrees to obtain final approval for the segregation from the appropriate
governmental agencies involved no later than December 31, 2012. Gary Lukehart
further agrees to undertake all work and pay all costs and fees attendant in
obtaining a short subdivision of Tract A and further agrees that the segregation
shall not detrimentally affect the use or zoning of the remainder of the Tract A
parcel as legally allowed as of the date hereof. In the event final approval for the
segregation is not obtained from all interested parties by December 31, 2012,
Chinook Business Park, LLC agrees that it shall promptly deliver a quit claim deed
in lieu of foreclosure to the City for the whole of Tract A.
3.4 Upon delivery by Gary Lukehart and Chinook Business Park,
LLC of the quit claim deed in lieu of foreclosure covering the restructured Tract A
property - Parcel 191307 -34405 and completion of all other duties and obligations of
Gary Lukehart, Chinook Business Park, LLC and TrailWagons, Inc. hereunder the
City of Yakima will declare that the two loans owed by TrailWagons, Inc. to the
City of Yakima are satisfied and the City of Yakima will cancel the debt obligations
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SATISFACTION - 4 -
• owed thereunder and deliver to Gary Lukehart, Chinook hinook Business Park, LLC and
TrailWagons, Inc. such original documents that evidence the loans upon receipt of
the original documents from the United States Department of Housing and Urban
Development (HUD) after full and final payment of the underlying obligations to
HUD.
4. Severability.
In case any one or more of the provisions contained in this Agreement
should be declared invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not in
any way be effected or impaired thereby.
5. Modifications.
No modification, amendment, waiver or change of this Agreement, or
any terms hereof, shall be valid unless the same is in writing and signed by the
party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.
6. Binding Effect.
This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, assigns, and legal representatives.
7. Notices.
All notices to be given under the terms of this Agreement shall be in
writing and shall be served by certified or registered mail or by personal service.
Notices served by mail shall be deemed to have been given on the third (3) day
following deposit in the U.S. Mail as certified or registered mail, return receipt
requested, postage paid, to the appropriate party at its address set forth below or to
AGREEMENT FOR LOAN
SATISFACTION - 5
such
o
•
ther address as may be designated in a written notice sent to the other party
in accordance with this section:
City of Yakima Lukehart / Chinook Business Park, LLC /
129 N. 2nd Street TrailWagons, Inc.
Yakima, Washington 98901 137 North Fair Avenue
Attn: City Manager Yakima, Washington 98901
8. Lukehart and Chinook Business Park, LLC, TrailWagons,
Inc. Release.
GARY LUKEHART, MARY LUKEHART, CHINOOK BUSINESS PARK, LLC
AND TRAILWAGONS, INC., FOR THEMSELVES AND THEIR LEGAL
REPRESENTATIVES, SUCCESSORS AND ASSIGNS, HEREBY
UNCONDITIONALLY RELEASE, WAIVE, AND FOREVER DISCHARGE THE
CITY OF YAKIMA AND ITS EMPLOYEES, AGENTS, SUCCESSORS, LEGAL
REPRESENTATIVES AND ASSIGNS, OF AND FROM ALL CLAIMS,
DEMANDS, CAUSES OF ACTION AND DAMAGES WHATSOEVER, IN LAW
OR IN EQUITY, INCLUDING ANY DEFENSES WHICH ANY OF THEM NOW
HAVE OR WHICH THEY MAY SUBSEQUENTLY HAVE AGAINST THE CITY
OF YAKIMA, ARISING OUT OF OR CONNECTED WITH, DIRECTLY OR
INDIRECTLY, THE LENDING TRANSACTIONS AND RELATED DEALINGS
WHICH HAVE TRANSPIRED BETWEEN THE CITY OF YAKIMA AND GARY
LUKEHART, MARY LUKEHART, CHINOOK BUSINESS PARK, LLC AND
r l'RAILWAGONS, INC., OR ANY OF THEM, PRIOR TO OR AS OF THE DATE
OF THIS AGREEMENT.
9. Attorney Fees; Expenses.
In the event of any action to enforce the terms of this Agreement, the
breaching party shall pay to the non - breaching party all costs of enforcement
including all reasonable attorney fees and related costs, whether or not a suit is
filed, an appeal is sought or the matter is referred to arbitration.
AGREEMENT FOR LOAN
SATISFACTION - 6 -
• 10. Governing Law.
All acts and transactions hereunder and the rights and obligations of
the parties hereto shall be governed, construed and interpreted in accordance with
the laws of the state of Washington. Venue for any action shall be in Yakima
County, Washington.
11. Headings.
The paragraph headings appearing in this Agreement have been
inserted for the purpose of convenience and ready reference. They do not purport to,
and shall not be deemed to, define, limit or extend the scope or intent of the
paragraphs to which they appertain.
12. Construction.
A. Unless the context of this Agreement clearly requires otherwise,
the plural includes the singular, the singular includes the plural, the part includes
the whole, "including" is not limiting, and "or" has the inclusive meaning of the
phrase "and /or." The words "hereof," "herein," "hereby," "hereunder," and other
similar terms in this Modification and Restatement refer to this Agreement as a
whole and not exclusively to any particular provision of this Agreement.
B. Neither this Agreement nor any uncertainty or ambiguity
herein shall be construed or resolved against any of the parties, whether under any
rule of construction or otherwise. On the contrary, this Agreement has been
reviewed by each of the parties and its legal counsel and shall be construed and
interpreted according to the ordinary meaning of the words used sous to accomplish
the purposes and intentions of all parties hereto fairly.
AGREEMENT FOR LOAN
SATISFACTION - 7 -
13. Statute of Frauds Disclosure.
•
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN
MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.
DATED this _.._ day of , 2012.
CITY OF YAKIMA
Tony O'Rourke, City Manager
TRAIL WAGONS, INC., a
Washington corporation
By: ` i J G ,r �,,,/
\Lukehar , Presiders '
CHIN . OK BUSINESS PARK, LLC, a
Wa gton limited li; bility o pany:
r Luke
Titl•: AI I / 0 . CA, • e1_ ,
\../ ,,__„ _ ) % a
f_,- ..,,, ih':Q--, . /;,(... -A. ■ . - 7. - 4/ c,.,, //,;,..„-:/f,/,,.,
Gary 1; R ehart May L, ehart
\...__ t
x: \city of yakiina- 20009 \trailwagons - 2003015 \2012 \agreement for satisfaction of loans - 082112 - city final.doc
AGREEMENT FOR LOAN
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