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HomeMy WebLinkAboutR-1995-169 Sale of ParcelsRESOLUTION NO. R-95- 11f9 A RESOLUTION authorizing and directing the City Manager and City Clerk of the City of Yakima to execute a real estate Purchase and Sale Agreement with Antonio Adeline, Katherina Adeline, and Cleo Rumpakis, d/b/a Alpha Enterprises. WHEREAS, the City of Yakima has Urban Development Action Grant (UDAG) repayment funds available from the federal government that may be used for property acquisition within the Central Business District; and WHEREAS, Antonio Adeline, Katherina Adeline, and Cleo Rumpakis, d/b/a Alpha Enterprises desire to sell certain parcels located within the first block of North First Street between Yakima Avenue and "A" Street to the City; and WHEREAS, on January 24, 1995 the City executed a previous real estate Purchase and Sale Agreement for this property, which agreement was subsequently terminated on March 10, 1995 because of the discovery of soil contamination at the site; and WHEREAS, the City has subsequently negotiated a new transaction with the Adeline family subject to new conditions precedent, including a satisfactory environmental cleanup and remediation of the property pursuant to all applicable environmental laws and consent decrees with the Washington State Department of Ecology; and WHEREAS, City Council finds that the acquisition of this property would be in the best interest of the citizens of the City of Yakima, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and City Clerk of the City of Yakima are hereby authorized and directed to execute a real estate Purchase and Sale Agreement in substantially the same form as the attached Purchase and Sale Agreement with Antonio Adeline, Katherina Adeline, and Cleo Rumpakis, d/b/a Alpha Enterprises, and the City Manager is further authorized to take all necessary and prudent actions to complete the purchase and acquisition of the property described in the attached Purchase and Sale Agreement, including, but not limited to, the negotiation, execution, and completion of the consent decree with the Washington State Department of Ecology, together with environmental remediation of the property, and all reasonably associated actions to obtain an environmental release from the Department of Ecology. Page 1 llslres/nde13ne2.rp Final execution of all transactional documents is subject to review and approval as to form by the City Attorney s� ADOPTED BY THE CITY COUNCIL this $ day of , 1995. ATTEST* _ Mayor City Clerk Page 2 (1a)res/adeline2 rp C • • • PURCHASE AND SALE AGREEMENT THIS AGREEMENT is made and entered into this day of December, 1995, by and between ANTONIO ADELINE, KATERINA ADELINE, and CLEO RUMPAKIS, d/b/a Alpha Enterprises, a general partnership (FIN #91-1021802), (hereinafter referred to as "Sellers") and the CITY OF YAKIMA, WASHINGTON, a municipal corporation of the State of Washington, whose address is 129 North Second Street, Yakima, Washington 98901 (hereinafter referred to as "Purchaser"), WITNESSETH: WHEREAS, on January 24, 1995, the Sellers and the Purchaser excuted a real estate purchase and sale agreement for property located in the vicinity of 16 North First Street in the City of Yakima, Washington, and WHEREAS said January 24, 1995, agreement provided in Section 4(b) a condition precedent to sale requiring a satisfactory environmental audit and feasibility study, and WHEREAS, on March 10, 1995, the Purchaser City of Yakima transmitted by certified mail its notice of nonsatisfaction of conditions precedent to sale pursuant to Section 4 of said agreement, thereby terminating the January 24, 1995, real estate purchase and sale agreement based upon the presence of perchloroethylene (PCE) and petroleum hydrocarbon contamination of the Property, and WHEREAS the parties have subsequently negotiated a new transaction subject to new conditions precedent, including a satisfactory environmental cleanup and remediation of the Property pursuant to all applicable environmental laws and consent decrees with the Washington State Department of Ecology, now, therefore, IT IS MUTUALLY AGREED by and between the parties hereto as follows: Page 1 of 11 (klw)reel estate(rev ).rp Section 1. Purchase and Sale of the Property. Sellers hereby agree to sell and Purchaser hereby agrees to purchase, subject to and on the terms and conditions hereinafter set forth and for the price hereinafter fixed, certain real property in Yakima, Yakima County, Washington, legally described as follows: Attached as Exhibit A and graphically shown on the print marked Exhibit B, attached hereto and hereby made a part hereof, together with all of Sellers' right, title, and interest in and to the buildings, improvements, appurtenances, and fixtures located thereon. The sale property and all improvements attached thereto (except those belonging to tenants) shall collectively be referred to as the "Property." It is understood that the sale and conveyance made pursuant to this Agreement shall be subject to any and all applicable federal, state, and local laws, orders, rules, and regulations. Section 2. Purchase Price. The purchase price for the Property to be paid by Purchaser to Sellers shall be the sum of Three Hundred and Sixty -Five Thousand Dollars ($365,000.00) ("Purchase Price"). Section 3. Payment of the Purchase Price. The Purchase Price shall be paid by Purchaser to Sellers as follows: (a) Within twenty (20) days of execution of this Agreement by both parties, the sum of Ten Thousand Dollars ($10,000.00), in cash or by City of Yakima Warrant, to be deposited with Fidelity Title Insurance Company, 406 North 2nd Street, Yakima, Washington 98901 ("Title Company") [the Ten Thousand Dollar ($10,000.00) deposit and accrued interest thereon shall hereafter be referred to as "Escrow Fund"]; and (b) At the time of closing of escrow, Purchaser shall pay to Sellers the balance of the Purchase Price in cash or by City of Yakima Warrant. Page 2 of 11 (klw)real e.tate(rav ).rp Section 4. Conditions Precedent to Sale. This Agreement is subject to the following express conditions precedent, and Purchaser shall not be obligated to purchase the Property until all of -the following conditions precedent are satisfied in the manner set forth below: (a) Clear Title. At or before time of closing, Sellers shall clear any and all defects in the title and all liens, encumbrances, covenants, rights of way, easements, or other outstanding rights disclosed by the preliminary title report, except those matters set forth in Section 6. (b) Satisfactory Environmental Remediation and Consent Decree. The parties acknowledge that the Property apparently has some level of soil/groundwater contamination involving perchloroethylene (PCE) and petroleum hydrocarbons. Accordingly, a Department of Ecology approved site remediation process must be conducted under the Washington State Model Toxics Control Act (MTCA), RCW Chapter 70.105D, and such remediation must be deemed satisfactory to Purchaser in its sole and exclusive discretion. The parties contemplate that one or more consent decrees will be negotiated with the Department of Ecology to define the scope and extent of necessary remediation, including a prospective purchaser consent decree pursuant to RCW 70.105D.040(5). These consent decree negotiations, together with legally adequate site remediation efforts, shall, as a condition precedent to closing of this transaction, be fully completed, approved, and deemed satisfactory by the City of Yakima in its sole and exclusive discretion. Notice of Satisfaction of this condition shall be provided by Purchaser to Seller in writing no later than May 31, 1996. Failure to give such notice within said time period shall be deemed to be nonsatisfaction. (c) Availability of City Funding. The terms and conditions of this transaction are subject to the availability of City of Yakima funding. Notice of Satisfaction of this condition shall be given by Sellers to Purchaser on or before March 1, 1996. Failure to give such notice within said time period shall be deemed to be satisfaction. In the event that any one of the foregoing conditions precedent is not satisfied in the manner set forth above, then the Escrow Fund shall be returned to Purchaser, and this Agreement shall terminate and be without Page 3 of 11 (k1w)real eetat.(r.v ).rp any further force and effect, and without further obligation of either party to the other. Section 5. Escrow. Within twenty (20) days of execution of this Agreement by all parties, an escrow account shall be opened with Fidelity Title Company, and Purchaser shall thereupon deposit with the Title Company the sum of Ten Thousand Dollars ($10,000.00), with instructions to Title Company to hold the same in accordance with the provisions of this Agreement. On or before the date of closing of escrow, Purchaser shall deposit with Title Company the Purchase Price, less the Escrow Fund, and Sellers shall deposit therein a duly executed Statutory Warranty Deed for the Property. Title Company shall be instructed that when it is in a position to deliver to Sellers the Purchase Price, and to issue an American Land Title Association standard form of owner's or purchaser's policy of title insurance in the full amount of the Purchase Price, insuring fee simple title to the Property in Purchaser, subject only to the items set forth in Section 6, Title Company shall: (1) deliver and record the Statutory Warranty Deed to Purchaser; (2) deliver to Sellers the Purchase Price; and (3) issue and deliver to Purchaser the standard owner's policy of title insurance. At closing, (a) Sellers shall pay the following: (1) One-half of the escrow fee; (2) The premium for the issuance of the standard owner's policy of title insurance; (3) Sellers' pro rata share of real estate taxes (whether general or special) assessed against the Property and due and payable for the year of closing, including any LID or other assessments; (4) The Washington State real estate excise tax, if any; and Page 4 of 11 (k1w)real aatata(rev ).ry (5) Commission payable to Almon Realty, Inc., as a result of the sale. (b) Purchaser shall pay the following costs: (1) One-half of the escrow fee; (2) The cost of recording the Statutory Warranty Deed; and (3) Purchaser's pro rata share of real estate taxes (whether general or special) assessed against the Property and due and payable for the year of closing, including any LID or other special assessments. Section 6. Title. Upon closing of escrow as set forth in Section 5, title to the Property shall be conveyed by Sellers to Purchaser by a duly executed Statutory Warranty Deed. Title to the realty shall be in fee simple and clear of all liens, encumbrances, exceptions, and reservations other than the following: (1) Non -delinquent real property taxes and assessments (whether general or special); (2) Rights reserved in federal patents or state deeds; (3) Building or use restrictions consistent with current zoning, other than government platting and subdivision requirements; (4) Utility easements; (5) Items disclosed in the preliminary title report and expressly approved in writing or waived in writing by Purchaser. Section 7. Sellers' Representations. Warranties._ and Indemnities. (a) Definition of "Hazardous Substance." When used in this Agreement the term "hazardous substance" shall be defined to mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous, toxic, or radioactive substance, or other similar term, by any federal, state, or local environmental statute, regulation, or ordinance now existing, including, but not limited to, the statutes listed below: Page 5 of 11 (k1w)reel eatete(rev.) •rp (1) Federal Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq. (2) Federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. § 9601 et seq. (3) Federal Clean Air Act, 42 U.S.C. § 7401-7626. (4) Federal Water Pollution Control Act, Federal Clean Water Act of 1977, 33 U.S.C. § 1257 et seq. (5) Federal Insecticide, Fungicide, and Rodenticide Act, Fed. Pesticide Act of 1978 7 U.S.C. § 13 et seq. (6) Federal Toxic Substance Control Act, 15 U.S.C. § 2601 et seq. (7) Federal Safe Drinking Water Act, 42 U.S.C. § 300(f) et seq. (8) Washington Clean Air Act, RCW Chapter 70.94. (9) Washington Solid Waste Management -Recovery and Recycling Act, RCW Chapter 70.95. (10) Washington Model Toxics Control Act, RCW Chapter 70.105D. (11) Washington Hazardous Waste Fees Act, RCW Chapter 70.105A. (12) Washington Nuclear Energy and Radiation Act, RCW Chapter 70.98. (13) Washington Radioactive Waste Storage and Transportation Act of 1980, RCW Chapter 70.99. (b) Representations and Warranties. Sellers represent and warrant to Purchaser that the following are true and correct as of the date of closing: (1) There are no hazardous substances present on or under the Property; (2) Sellers have not caused or permitted any activities on the Property which directly or indirectly resulted in a release of hazardous substances on or under the Property; (3) Any hazardous substances that may have been released or present on or under the Property have been properly treated, remediated, cleaned up, removed, and disposed of in compliance with all federal, state, and local environmental statutes, regulations, consent decrees, and ordinances, including, but not limited to, the statutes listed in subsection (a) above; (4) Sellers shall at all times retain any and all liabilities arising from the off-site handling, treatment, storage, transportation, or disposal of hazardous substances by Sellers; and (5) Sellers have completed all remedial, cleanup, and corrective actions required pursuant to all federal, state, and local environmental statutes, regulations, and ordinances, and in conformance with all applicable standards of professional skill, competence, and care. (c) Indemnities. Sellers shall protect, defend, indemnify, and hold Purchaser harmless from and against any and all claims, demands, losses, liens, liabilities, penalties, fines, lawsuits, and other proceedings and costs and expenses (including attorney's fees and disbursements), which accrue to or are incurred by Purchaser on or after transfer of the Property and arise directly or indirectly from or out of, relate to, or in any way are connected with (1) any breach of the representations or warranties contained herein, (2) any activities on the Property during Sellers' ownership, possession, or control of the Property which directly or indirectly result in the Property or any other property becoming contaminated with hazardous substances, and (3) the presence, discovery, or cleanup of any hazardous substances released or under the Property during Sellers' ownership, possession, or control of the Property. (d) Survive Closing. The foregoing representations, warranties, and indemnities shall survive the closing of this transaction. Section 8. Closing; Possession. Time is of the essence in this transaction, and escrow for the Property shall close on or before June 15, 1996. Purchaser shall have the right to take possession of the Property on the date of closing. Section 9. Default; Liquidated Damages. IN THE EVENT THE SALE AND PURCHASE OF THE PROPERTY SHALL FAIL TO CLOSE AS SET FORTH IN SECTION 5 BECAUSE OF ANY DEFAULT OF PURCHASER HEREUNDER, THE ESCROW FUND SHALL BE AND REMAIN THE PROPERTY OF SELLERS AS SELLERS' SOLE REMEDY AND AS LIQUIDATED Page 7 of 11 (k1w)renl estate(rev ).rp DAMAGES FOR SUCH DEFAULT BY PURCHASER, AND THIS AGREEMENT SHALL BE WITHOUT ANY FURTHER FORCE AND EFFECT, AND WITHOUT FURTHER OBLIGATION OF EITHER PARTY TO THE OTHER. SELLERS' ACTUAL DAMAGES IN THE EVENT OF SUCH DEFAULT BY PURCHASER WOULD BE DIFFICULT OR IMPOSSIBLE TO ASCERTAIN, AND FURTHER, PURCHASER DESIRES TO LIMIT ITS LIABILITY TO SELLER IN THE EVENT THE SALE AND PURCHASE OF THE PROPERTY SHALL FAIL TO CLOSE BECAUSE OF ANY DEFAULT OF PURCHASER HEREUNDER. Section 10. Notices. Any notices required or desired to be given under this Agreement shall be in writing and personally served, given by overnight express delivery, or given by mail. Any notices given by mail shall be sent, postage prepaid, by certified mail, return receipt requested, addressed to the party to receive at the following address or at such other address as the party may from time to time direct in writing: Sellers: Purchaser: Title Company: Page 8 of 11 (klw)real estate(rev 1.rp Antonio Adeline c/o Bill Almon Almon Realty, Inc. 4114 Summitview Avenue Yakima, WA 98908 Katerina Adeline 5 Crest Circle Yakima, WA 98908 Cleo Rumpakis c/o Bill Almon Almon Realty, Inc. 4114 Summitview Avenue Yakima, WA 98908 Mr. R. A. Zais, Jr. City Manager City of Yakima 129 North Second Street Yakima, WA 98901 Fidelity Title Company 406 North 2nd Street Yakima, WA 98901 Express delivery notices shall be deemed to be given upon receipt. Postal notices shall be deemed to be given three (3) days after deposit with the United States Postal Service. Copies of all notices to Sellers or Purchaser shall be given to Fidelity Title Company, and copies of all notices to Fidelity Title Company shall be given to the other party to this Agreement. Section 11. Assignment. Purchaser shall not transfer or assign this Agreement, or any interest therein, without the consent in writing of Sellers, and it is agreed that any such transfer or assignment, whether voluntary, by operation of law or otherwise, without such consent in writing, shall be absolutely void and shall, at the option of Sellers, terminate this Agreement. Section 12. Waiver of Breach. A waiver by either party hereto of a breach of the other party hereto of any covenant or condition of this Agreement shall not impair the right of the party not in default to avail itself of any subsequent breach thereof. Leniency, delay or failure of either party to insist upon strict performance of any agreement, covenant or condition of this Agreement, or to exercise any right herein given in any one or more instances, shall not be construed as a waiver or relinquishment of any such agreement, covenant, condition or right. Section 13. Time of the Essence. Time is of the essence of this Agreement. Section 14. Law Governing. This Agreement shall be governed in all respects by the laws of the State of Washington. Section 15. Successors and Assigns. Subject to the provisions of Section 11, this Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors, and assigns. Page 9 of 11 (k1..}real estate (rev ) .rp Section 16. Fixtures. The buildings, structures, and other improvements on the Property may, at Sellers' option, be removed from said Property prior to closing; provided, however, that Sellers shall clear, grade, and clean up said Property in accordance with all federal, state, and local laws and in conformance with accepted cleanup standards and all applicable standards of professional skill, competence, and care. Purchaser shall receive a credit for the fair market value of any buildings, structures, and other improvements removed by Sellers, which credit shall be applied to reduce the Purchase Price balance due at closing. In the event of such removal, Sellers shall cap off and seal all utility connections in conformance with all applicable standards of professional skill, competence, and care, including, but not limited to, the Uniform Building Code so that Purchaser will be able to readily use said utility connections. Section 17. Special Provision. Sellers represent that they are not a foreign corporation, and withholding of Federal Income Tax from the amount realized will not be made by Purchaser. An Affidavit and Certification prepared in conformance with IRS regulations under Section 1445 of the Internal Revenue Code will be executed by Sellers. Section 18. Entire Agreement. It is understood and agreed that all understandings and agreements, whether written or oral, heretofore had between the parties hereto are merged in this Agreement, which alone fully and completely expresses their agreement, that neither party is relying upon any statement or representation not embodied in this Agreement, made by the other, and that this Agreement may not be changed except by an instrument in writing signed by both parties. Section 19. Litigation. In the event that any suit or action is instituted by either party to enforce compliance with or interpret any of the terms, covenants, or conditions of this Agreement, the prevailing party shall be entitled to collect, in addition to necessary court costs, such sums as the court may adjudge as reasonable attorney fees. The venue for any such action to enforce or interpret this Agreement shall lie in the Superior Court of Washington for Yakima County, Washington. Page 10 of 11 (k1w)real e.tate(rev ).rp Section 20. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original and all of which together will constitute a single agreement. PURCHASER CITY OF YAKIMA, WASHINGTON Witness: By: R. A. Zais, Jr., City Manager Attest: (Seal) City Clerk Sellers' acceptance: day of , 1995. Sellers agree to sell the Property on the terms and conditions specified herein. Sellers acknowledge receipt of a copy of the Agreement, signed by all parties. SELLERS Katerina Adeline, partner Antonio Adeline, partner Cleo Rumpakis, partner Page 11 of 11 (klw)real estate (rev ).rD Lots 13 through 19, Block 10, Town of North Yakima, now Yakima, Yakima County, Washington. Recorded in Volume "E" of Plats, Page 1, records of Yakima County, Washington. Yakima County Assessor Parcel Numbers: 191319-23403; 191319-23404; 191319-23405; 191319-23406; and 191319-23407. EXHIBIT A Section _19._ ii) . North, Ran • 1 AL k N II A A 1:41.11010 1.3 ILEMC ge E.W: M. • . • •••.1.•1%).11 .:t • .1volii ;,ii1,4% .9 •:t ldlieheatv 91..9 I* • -•.". 101 •••: • ..VII 411..8,3 IF ilk I* ill I?•, ••4,47..iatLi 11.-911 • 4,. 14 .41es 04 z.:. et.4.1: Ism .i.ttraut 43I'L 1":11:•31-taCc-.:..:•..2•TiAls':Iss:): 1.1, • sitt • • .,!•:;.- 7..N ,k • .... -....i.....-_\ . "-. • "--:::,..0.;\ - -A • - * ....... i•••• ,.. . ....---•A . • . 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V 1.• /10.1 • • 9% t i,•' ••`, , Itl't '..%11.....3.• .„.19..-1••••t " ---, -,17 • ' \•, 9,;1. , , • • t 19131cF. 234014 tiofgotS' E4b‘ 440 (As • • % ‘ .• t Odt• t % 1.1 ••• . • •-•••''' \. t i • ...*-:;:k ......""n i ••• '" % .....---".. ••-•-• **S• N •- % VS • .. $11,....... % , % ...eti;.;-.74.%i • I • t ,..i• • %I -1 1:6. • :i ql I ir el' 6 %.‘1, • \-..66•6*6 :I% - : i% A \ 1 \ \ \ .• - . ..• - 0 1Y 1.4. ' \....) • - ..* . L---- -- • \':.v. 1.4 :0%0.0 ovum* • . "i Pm 1 1 October 20, 1995 Mr. Raymond L. Paolella City Attorney 424 E. Yakima Avenue Suite 100 Yakima, WA 98901 Re: Adeline Property Transaction Dear Mr. Paolella: RECFIVFn OCT 2 3 1995 CITY ur r nnH COMMUNITY DEVELOPMENT In response to your letter of October 11, 1995 to Mr. Bill Almon regarding the North First Street property owned by the Adeline family, this is to advise you that the terms outlined and a total sales price of $365,000.00 is acceptable. It is understood that the Adeline family will be responsible for environmental cleanup of the site and will obtain a consent decree through the Washington State Department of Ecology so that the City of Yakima will assume no liability. It is suggested that you prepare and obtain City Council approval of a writtrn Purchase and Sales agreement. I have been advised by the Department of Ecology that the total time to accomplish the cleanup and obtain the consent decree will probably be four to six months, however we plan to commence the cleanup program as soon as the Department of Ecology approves the plan of action. Should you require additional information or if you wish to discuss the matter further, please advise. Very truly yours, 1 Antonio R. Adeline 1215 North 20th Avenue Yakima, WA 98902 (509) 248-9191 cc: Dick Zais, City Mamager Glenn Rice, Assistant City Manager Glenn Valenzuela, Director Community & Economic Development Bill Almon, Almon Realty, Inc. r Se=fie Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original and all of which together will constitute a single agreement. CITY OF YAKIMA, WASHINGTON By: R. A. Zais, ., City Manager Attest: City Clerk PURCHASER Witness: (Seal) on' CONTRACT NO. S -J30 Sellers' acceptance: day of , 1995. Sellers agree to sell the Property on the terms and conditions specified herein. Sellers acknowledge receipt of a copy of the Agreement, signed by all parties. SELLERS Katerina Adeline, partner Antonio Adeline, partner Cleo Rumpakis, partner Page 11 of 11 (klv)real estate (zev ).rp BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AgENDATEM ENT Item No,. 3 For Meeting Of December 5.1995 ITEM TITLE: Resolution Authorizing Execution of Purchase and Sale Agreement with A. R. Adeline for Property Located on North First Street SUBMITTED BY: Glenn J. Valenzuela, Director of Community and Economic Ray L. Paolella, City Attorney CONTACT PERSON/TELEPHONE: Glenn J. Valenzuela, 575-6113 SUMMARY EXPLANATION: pment The City Council authorized the negotiation for purchase of property located at 8-20 North First Street. The Adeline Trust has accepted the City's offer of $365,000. The attached resolution authorizes the execution of purchase and sale agreement. Council should note in the Agreement the deadline of May 31, 1996 and the conditions as outlined. Resolution x Ordinance Contract Other (Specify). Funding Source UDAG Fu APPROVAL FOR SUBMITTAL: ` etc- ( ity Manager STAFF RECOMMENDATION: Approve Resolution BOARD RECOMMENDATION: Council Economic Development Sub -Committee recommends approval COUNCIL ACTION: x-169 ADDENDUM TO PURCHASE AND SALE AGREEMENT Recitals The City of Yakima, Washington, ("Purchaser"), and Antonio Adeline, Katerina Adeline and Cleo Rumpakis, d/b/a Alpha Enterprises, a general partnership (FIN #91-1021802) ("Sellers"), have entered into a Purchase and Sale Agreement dated December 21, 1995, (the "Agreement") for property located in the vicinity of 16 N. First Street in the City of Yakima (the "Property"). This Addendum is intended to supplement the Agreement. If any provision(s) of the Agreement conflicts with any provision(s) of this Addendum, the provision(s) of this Addendum shall control. Except as expressly modified or supplemented by this Addendum, all provision(s) of the Agreement shall remain in full force and effect. The Purchaser and Sellers agree to change certain provisions of the Purchase and Sale Agreement as follows: Provisions Changed By Parties' Agreement Without this Addendum, subpart (b) of section 4, of the Agreement would require as a condition precedent to Purchaser's obligations, that environmental remediation of soil and/or groundwater contamination involving Perchloroethylene (PCE) and petroleum hydrocarbons at the Property be conducted with the approval of the Washington Department of Ecology ("Ecology") under the Washington State Model Toxics Control Act, chapter 70.105D RCW ("MTCA"), and further contemplates that the scope and extent of such remediation would be negotiated with Ecology and that such remediation would be governed by, or otherwise integrally related to, a prospective purchaser consent decree (RCW 70.105D.040(5)) or other consent decree (RCW 70.105D.040(4)). By this Addendum, the parties intend that the Sellers may provide satisfactory envi- ronmental remediation by performing remedial work independently of Ecology and outside the context of any prospective purchaser consent decree or other consent de- cree. In lieu of the original provisions related to environmental remediation con- ducted subject to Ecology approval under consent decree, the Purchaser will accept a written "No Further Action Letter" from Ecology regarding soil and/or groundwater contamination involving Perchloroethylene (PCE) and petroleum hydrocarbons at the Property. As authorized under WAC 173-340-550(7), the No Further Action Letter shall be formally issued after Ecology reviews the Phase I and Phase II Environmental Site Assessments which have already been prepared as part of the transaction between the parties, and documentation of remedial work performed and of relevant post -remediation environmental conditions at the Property. Such remedial work and documentation shall be performed at Sellers' expense. The parties understand that the City of Yakima will only proceed to purchase the Property if Ecology, after reviewing documentation of Sellers' remedial work and relevant post -remediation environmental conditions at the Property, by a No Further Action Letter, acknowledges that the Property is located within the Ecology - designated facility known as the Yakima Railroad Area, and determines, consistent with the provisions of this Addendum, at least that soils at the Property no longer lap \ environmental \pro rty transactions\adeline \Purchase/Sale K Addendum June 18, 1996 2:00 PM ADDENDUM TOSPURCHASE AND SALE AGREEMENT -- Page 1 pose a threat to human health or the environment as a result of petroleum hydrocarbon and/or Perchloroethylene (PCE) contamination, and that no further action regarding soils at the Property is necessary under MTCA. The parties understand that the Sellers, after performing independent remedial work at the Property, may remain subject to regulation by Ecology as Potentially Liable Persons ("PLP") for groundwater contamination. The parties intend that Purchaser, by acquiring the Property on the basis of a No Further Action Letter as provided in this Addendum, shall not become a PLP for soil or groundwater, and understand that, upon execution of this Addendum by the parties, the City will formally advise Ecology of its intent to rely on a No Further Action Letter regarding the Property, if one is issued. Upon Purchaser's receipt of a No Further Action Letter as described in this Adden- dum and Purchaser's determination that such No Further Action Letter is satisfac- tory, the environmental contingency set forth in subpart (b) of section 4 of the Agreement shall be deemed satisfied and Purchaser shall be obligated to proceed with the transaction according to the amended closing date provided below. Under Section 8 of the Purchase and Sale Agreement, time remains of the essence in this transaction. Instead of August 15, 1996, the escrow closing date for the purchase and sale of the Property shall be tailored to the best efforts of the parties. The parties expect the Sellers shall produce the No Further Action Letter on or before November 15, 1996. PURCHASER CITY OF YAKIMA, WASHINGTON Witness: \\ Y - Attest: -�✓ �Gl (Seal) City Clerk CYCOCRACT 1.0. CPS /30 —� BEscwT10M110, D`I SELLERS Sellers' acceptance: Sellers agree to sell the Property on the terms and condi- tions specified herein. Sellers acknowledge receipt of a copy of the Agreement and this Addendum, signed by all parties. Dated: June ,1996. aterina Adeline, partner Cleo Rumpakis, partner Z�L�i --�-- Antonio Adeline, partner lap \environmental\property transactions\adeline \Purchase/Sale K Addendum June 18, 1996 2:00 PM ADDENDUM TO PURCHASE AND SALE AGREEMENT -- Page 2