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Home My WebLink AboutR-2024-039 Resolution accepting the renewal request and authorizing an amendment to extend the lease/purchase option agreement with the Y HOTEL, LLC for City property located at 1808 North 1st Street RESOLUTION NO. R-2024-039 A RESOLUTION accepting the renewal request and authorizing an amendment to extend the Lease/Purchase Option Agreement with the Y HOTEL, LLC for City property located at 1808 North 1st Street. WHEREAS, the City of Yakima (City) previously purchased four separate properties that had been owned by the Tiger Oil Company and were the subject of environmental cleanup orders to address the contamination issues and resell the property for productive development; and WHEREAS, after going through a competitive RFP process in 2018-2019, the City determined that the proposal submitted by Y HOTEL, LLC met the needs and requirements of the City of Yakima and would provide a productive use of the subject property; and WHEREAS, on March 8, 2019, the City and the Y HOTEL, LLC entered into a Lease/Purchase Option Agreement for the property at 1808 North 1st Street which required a $20,000 deposit and allows the Y HOTEL, LLC to lease the property for$1,000.00 per month, with $500.00 of that going towards the purchase price in the event the Y HOTEL, LLC chooses to purchase the property; and WHEREAS, the Lease/Purchase Option provided that the purchase was to occur on or before the end of five years if the Department of Ecology issued a No Further Action letter for the property, or, in the alternative, if the Department of Ecology did not issue such a letter, the Y HOTEL, LLC would have the option to extend the Lease/Purchase Option; and WHEREAS, the Department of Ecology has not yet issued a No Further Action letter, and the Y HOTEL, LLC took all necessary steps to request an extension of the Lease/Purchase Option for an additional five (5) year term under the same terms and conditions; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the City and its residents, to extend the Lease/Purchase Option with Y HOTEL, LLC for the property at 1808 North 1st Street; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Interim City Manager is authorized and directed to execute the Acceptance of Renewal Request and Amendment to Agreement between the City of Yakima and Y HOTEL, LLC, attached hereto and incorporated herein. ADOPTED BY THE CITY COUNCIL this 5' day of March, 2024. 4"A 27 P 2� Patricia Byers,/Mayor ATTEST: I c'�* Itt j�. S�:AL.: a , ,r *_ is Rosalinda Ibarra, City Clerk ''� `i`G1— `�' ACCEPTANCE OF RENEWAL REQUEST AND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF YAKIMA AND Y HOTEL, LLC THIS AMENDMENT TO THE LEASE / PURCHASE OPTION AGREEMENT is made and entered into by and between Y HOTEL, LLC, d/b/a Hotel Y ("YH") and THE CITY OF YAKIMA, a Washington municipal corporation ("City"). WHEREAS, the City owns property located at 1808 North 1st Street, Yakima, Washington, including several buildings located thereon (hereinafter referred to as the "Property"), and more specifically described in the Lease/Purchase Option Agreement; and WHEREAS, on March 19, 2019, the Parties entered into the Lease/Purchase Option Agreement after the City went through an RFP process; and WHEREAS, the Property is subject to environmental investigation by the Department of Ecology; and WHEREAS, the Lease/Purchase Option Agreement provides that YH may request a renewal at the end of the Agreement term for an additional 5-year term to lease the property prior to purchase if there has not been a No Further Action finding by the Department of Ecology at the site; and WHEREAS, as of the date of this resolution, the Department has not issued a No Further Action finding; and WHEREAS, YH has requested in writing to renew the Lease/Purchase Option Agreement pursuant to the terms and conditions thereof; and WHEREAS, the City and YH wish to renew the Agreement as set forth in the terms and conditions therein; NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements set forth herein, it is agreed by and between the City and YH as follows: Section 1: Section 3: Term—Effective Date provides for one additional five (5) year term after the initial term of the Lease. The Parties agree that the Lease/Purchase Option Agreement shall be extended for an additional five (5) year term. The tenancy shall now end on March 31, 2029. Section 2: Except as expressly stated herein, all other terms and conditions of the attached Lease/Purchase Option Agreement shall remain in full force and effect. Section 3: Severability. If any section, subsection, paragraph, sentence, clause or phrase of this Amendment is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this Amendment. DATED this ..5 day of February, 2024. CITY OF YAKIMA Y HOTEL, .C. .6744-4Dave Zabel , irlterim City Manager Scott Mary CONTRACT NO' OIL•--0r RESOLUTION NO 12.- 0a-1 /-039 ATT-ST: _ YAKS, 9to P 0 . Ci Clerk ., *; STATE OF WASHINGTON `,l/N �= ss County of Yakima ) I certify that I know or have satisfactory evidence that Scott Mary signed this instrument, on oath stated that they were authorized to execute the instrument on behalf of Y HOTEL LLC and acknowledged it to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. hh Date `7 r J/a • OFFICIAL STAMP Y�--1 1�1� ry • AMY RAE MOSER Notary Public f he-Staleo ashington NOTARY PUBLIC-OREGON COMMISSION NO.1011517 Residing at: K @MANION EXPIRES APRIL22,2025 Appointment Expires /3.- STATE OF WASHINGTON ) ss County of Yakima ) I certify that I know or have satisfactory evidence that Dave Zabell signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the Interim City Manager of the City of Yakima, Washington to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. ,�Date: IYLarc4 n l,Q) LJ „, \\��unu►►ii�� By: ca t 1s ) �>✓ PR ��/Sate of%'''�., Notary Public r ashington •••4`s ION •FIACt‹` ; Residing at: v NOTARY 9N: Appointment pires j I Sl'aD"$" NO.107265 .7%;clY�: PUBLIC :-_ 'ii ' WASHA�\\• 1 1, �1 ih `�• �> BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 7.K. For Meeting of: March 5, 2024 ITEM TITLE: Resolution accepting the renewal request and authorizing an amendment to extend the lease/purchase option agreement with the Y HOTEL, LLC for City property located at 1808 North 1st Street SUBMITTED BY: Scott Schafer, Public Works Director * Bill Preston, City Engineer SUMMARY EXPLANATION: After a competitive RFP process in 2018 and 2019, Y HOTEL, LLC was awarded the opportunity enter into a Lease/Option to Purchase agreement for city-owned property located at 1808 North Street. The property was previously owned by Tiger Oil and purchased by the City for cleanup productive development. The cleanup at the property is ongoing and the Department of Ecology has yet issued a No Further Action letter for the property. The Agreement states that if a No Further Act letter has not been issued before the end of the five year term that it can be renewed for additional f year terms until the No Further Action letter is issued. Y HOTEL, LLC provided the necessary notice renew the Agreement. Y HOTEL, LLC put down a $20,000 deposit on the property. The Lease requires a monthly payment $1,000. $500 of that may be credited to the purchase price. The agreed upon purchase price for 1 property is $300,000.00 per the terms and conditions of the Agreement. Enclosed for City Council review is the amendment to the Lease/Purchase Option Agreement. ITEM BUDGETED: NA STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOM M ENDAT ION: Adopt Resolution. ATTACHMENTS: Description Upload Date Type D Resolution-Y Hotel LLC Amendment 2/19/2024 Resolution 2/14/2024 Contract