HomeMy WebLinkAbout06/02/2009 12 3rd St. and Walnut Property Purchase BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1 2-
For Meeting of 6/2/09
ITEM TITLE: Consideration of resolution authorizing option to purchase property at 3
Street and Walnut
SUBMITTED BY: Dave Zabell, Assistant City Manager
CONTACT PERSON/TELEPHONE: Dave Zabell, 575 -6040
SUMMARY EXPLANATION: At its April 7, 2009 City Council meeting, the City Council
authorized an Option to Purchase Agreement for the property at 3rd Street and Walnut.
Subsequent to Council approval, the property owner has made an amendment to the negotiated
offer involving compensation for use of the parking lot during the Option period. The change
. proposed by the seller is not recommended: After further discussion with the owner's
representative, the Option to Purchase Agreement has been amended to remove use of the lot
by the city for parking during the Option period and is attached for Council review.
Resolution X Ordinance Other (Specify)
Contract Mail to (name and address):
Phone:
Funding Source Police Department Land B •qet Service Unit 333.
APPROVED FOR SUBMITTAL: 4 4i_ _, ,_,L' Cit Manager
STAFF RECOMMENDATION: Staff recommends that the City Council adopt the Resolution
authorizing the City Manager to execute the Option to Purchase Agreement.
BOARD /COMMISSION RECOMMENDATION:
COUNCIL ACTION:
1111 .
0
•
RESOLUTION NO. R -2009-
A RESOLUTION authorizing and directing the City Manager to execute an option with the
owners of the property at 3` Street and Walnut Street (Assessor's
Parcel No.. 191319 - 24459) to purchase the property and to formalize
and execute a Prospective Purchasers Agreement ( "PPA ") with the
Washington State Department of Ecology prior to the City exercising
the purchase option.
WHEREAS, the City of Yakima has evaluated the acquisition of the property located
at 3rd Street and Walnut Street (Assessors Parcel No. 191319- 24459); and
WHEREAS, an option to purchase the property provides the City with the opportunity
to consider potential issues related to acquisition that have come to light from a prior Phase
I environmental analysis; and
WHEREAS, due diligence requires more advanced environmental analysis
111) encompassing inspections, surveys and environmental assessments, including but not
limited to excavation and drilling for purposes of groundwater sampling, testing and
monitoring and for purposes relating to working with the Washington State Department of
Ecology to formalize and complete a "Prospective Purchasers Agreement" ( "PPA ")
concerning the subject property, which PPA shall be entered and executed prior to the
City's exercise of the purchase option; and
WHEREAS, the City has conferred with the representative of the owners of the
property on several occasions and discussed the prospect of an option to purchase the
property, the necessary environmental analysis and the PPA required by the Department of
Ecology, now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is herby authorized and directed to execute
an option to purchase the subject property at 3 Street and Walnut; prior to exercising the
purchase option, to meet the City's due diligence responsibilities, the City Manager is further
authorized and directed to execute a PPA with the Department of Ecology in compliance
with Washington law in order to provide for the necessary environmental analysis of the
subject property. Subject to the satisfactory completion of all conditions of said option, the
City Manager is authorized to take all necessary action to acquire the subject property •
under the conditions set forth in the option.
ADOPTED BY THE CITY COUNCIL this 2nd day of June 2009.
David Edler, Mayor
ATTEST:
City Clerk
1110
0 After recording, return to:
Russell H. Gilbert
Lyon, Weigand & Gustafson PS
PO Box 1689
Yakima, WA 98907 -1689
OPTION TO PURCHASE
GRANTORS: Margaret L. Keuler
GRANTEE: City of Yakima, a municipal corporation
LEGAL DESCRIPTION (abbreviated): Lots 13 -16, Block 73, recorded in Volume "A" of
Plats, Page 10 and re- recorded in Volume "E" of Plats, Page 1.
ASSESSOR'S PARCEL NO. 191319 - 24459.
III For and in consideration of the sum of ONE THOUSAND AND 00/100 DOLLARS
($1,000.00), receipt of which is hereby acknowledged, MARGARET KEULER, who agrees
and acknowledges that for purposes of providing notice as hereinafter specified her address
is 801 N.W. 175 Seattle, WA 98177, hereinafter referred to as "Grantor", hereby grants to
the CITY OF YAKIMA, a Washington municipal corporation, hereinafter referred to as "the
City," the exclusive right and privilege from this date until December 1, 2009, to purchase the
following real property, situated in Yakima County, Washington, and which is legally
described as follows:
Lots 13, 14, 15 and 16, Block 73, Town of North Yakima, now Yakima,
Washington, as recorded in Volume "A" of Plats, Page 10 and re- recorded in
Volume "E" of Plats, Page 1, records of Yakima County, Washington.
Assessor's Parcel No. 191319 - 24459.
At any time during the term of this Option to Purchase, but no later than twenty (20)
days prior to the expiration of this Option to Purchase, the City shall provide notice of its intent
to purchase the property. Said Notice shall be given by certified mail, retum receipt
requested, postage prepaid, addressed to Grantor at her address appearing above, subject
0 to the right of Grantor to designate by notice in writing to the City a different address to which
OPTION TO PURCHASE - 1
said Notice shall be sent. Alternatively, notices may be personally served upon Grantor in •
the same manner as is required for original service of Superior Court summons and
complaint by the laws of the State of Washington. Such service to be complete at the time of
delivery or mailing.
At such time as the City provides notice of its intent to exercise this Option to
Purchase, the terms of the sale shall be:
The total purchase price shall be cash only in the amount of three hundred and forty
thousand dollars ($340,000.00), with a credit towards the purchase price for the $1,000.00
consideration above received, and closing on the property shall take place within forty -five (45)
days after the City notifies Grantor of its intent to exercise this Option, unless the Parties
shall agree in writing otherwise. In the event that the property sale does not close due to
circumstances beyond the City's control, then Grantor shall refund to the City the amount
received as Option consideration.
Within five (5) days after the City's notification to Grantor of its intent to exercise this
Option, Grantor shall, at her own expense, deliver to the City a currently extended abstract of
title to the subject property and the City shall have ten (10) days from date of receipt with
which to examine it. If the title to the premises is found defective, Grantor shall, within five (5)
days (or such additional time as may be reasonable under the circumstances) after receipt of
written notice from the City specifying the defects in the title, perfect the title at her own
expense, and the closing of this purchase shall be deferred until title has been perfected.
The City shall have the option of waiving or curing any defects, but reserves the right to
specific performance.
All taxes and assessments on the subject premises due and owing for prior years
shall be paid by Grantor and all taxes and assessments due and owing for the year in which
the City exercises this Option shall be prorated as of the date of closing. Excise tax and the
cost of obtaining title insurance shall be paid for by Grantor. All other closing costs shall be
shared equally by the Parties.
This Option shall run with the land and shall both bind and benefit the respective
heirs, representatives, successors and assigns of Grantor and the City. During the Option
period, Grantor grants to the City the right to enter the real property to conduct inspections,
OPTION TO PURCHASE - 2 •
• surveys and environmental assessments, including but not limited to excavation and drilling
for the purposes of groundwater sampling, testing and monitoring and for purposes relating to
working with the Washington State Department of Ecology to formalize and complete a
Prospective Purchasers Agreement ( "PPA ") concerning the subject property in compliance
with Washington law, which shall be entered and executed prior to approval of the exercise of
the Option by the City Council. During the Option period, Grantor further grants to the City the
right to use the property for the purpose of satisfying the PPA requirements. This Option may
be extended by mutual agreement of the parties.
DATED this day of June, 2009.
CITY OF YAKIMA
GRANTOR a Washington Municipal Corporation
By
Margaret L. Keuler, Dave Zabell
• as her separate estate Assistant City Manager
STATE OF WASHINGTON )
) ss.
County of )
I certify that I know or have satisfactory evidence that Margaret L. Keuler, is the person
who appeared before me, and said person acknowledged that she signed this instrument
and acknowledged it to be her free and voluntary act, for the uses and purposes mentioned
in the instrument.
GIVEN UNDER my hand and official seal this of June, 2009.
(Printed Name)
Notary Public in and for the State
of Washington, residing at .
My commission expires .
II OPTION TO PURCHASE - 3
STATE OF WASHINGTON )
)ss.
County of Yakima )
On this day personally appeared before me Dave Zabell to me known to be the
Assistant City Manager of the City of Yakima, the Washington municipal corporation
that executed the foregoing instrument, and acknowledged the said instrument to be the
free and voluntary act and deed of said municipal corporation, for the uses and
purposes therein mentioned, and on oath stated that he was authorized to execute the
said instrument.
GIVEN under my hand and official seal this day of June, 2009.
(Printed Name)
Notary Public in and for the State
of Washington, residing at
My commission expires .
OPTION TO PURCHASE - 4