HomeMy WebLinkAboutGrapevine / Sorenson, Jeff & Heidi - Settlement Agreement SETTLEMENT AGREEMENT
This agreement is by and between Jeff and Heidi Sorenson, d/b /a Grapevine,
( "Sorenson "), and the City of Yakima, Washington, a Washington municipal corporation
(the "City "). In consideration of the mutual covenants and obligations set forth herein,
the parties agree as follows:
1. Background.
1.1. Sorenson was the applicant for a general business license which
was granted by the City on or about May 30, 2006, for a business known as "Grapevine"
located at 5015 Tieton Drive.
1.2 The City has determined that the current zoning for Grapevine is
not appropriate for the land use associated therewith and that the issuance of the business
license was in error. The City acknowledges that the erroneous license issuance is likely
to cause monetary damages to Sorenson.
1.3 As used herein, the terms "Grapevine" or "business" shall refer to
that certain business currently located in the vicinity of 5015 Tieton Drive (the "subject
premises ") and currently known as "Grapevine" and any other similar present or future
business at the subject premises dealing in adult video and /or novelty products.
2. Settlement. The City and Sorenson hereby agree to settle, pursuant to the
terms of this agreement, all disputes arising out of Sorenson's application for a business
license for Grapevine at its current location and the City's erroneous issuance of the
same. The parties' settlement obligations follow:
2.1 Sorenson agrees to locate a suitable site for the business currently
known as Grapevine at an alternative location duly zoned and permitted for such use.
Sorenson agrees and acknowledges that the zoning for its current site does not permit the
business conducted thereon by Sorenson and further agrees that under no circumstances
will Sorenson take any action detrimental to the prompt relocation of the business to a
suitable alternative location. Notwithstanding the generality of the foregoing, Sorenson
agrees not to extend, renew, prolong or otherwise continue the term of its current lease
with its lessor regarding the subject premises and to cease operation of Grapevine no later
than May 31, 2007. Sorenson agrees to minimize use of temporary signs (as that term is
defined in Chapter 15.08, Yakima Municipal Code) advertising or promoting Grapevine
and further agrees that exterior glass surfaces of Grapevine at the subject premises will be
obscured by any suitable opaque material (e.g., blinds, drapes, etc.) to the extent
necessary so that no lewd, obscene, or other similar thing shall be visible from the
exterior.
1
2.2 Subject to paragraph 2.3, below, the City agrees to pay to Sorenson
funds to compensate Sorenson for the relocation or cessation of business of Grapevine,
and any and all other related losses, whether direct, indirect, or consequential, occasioned
as a result of said relocation or cessation. Such compensation shall be payable by the
City as follows: the City agrees to pay to Sorenson the sum of TWO THOUSAND
SEVENTY ONE AND 66 /100THS DOLLARS ($2,071.66) within fourteen days after
execution of this agreement and the sum of SIX THOUSAND TWO HUNDRED
FIFTEEN AND 04 /100THS DOLLARS ($6,215.04) upon confirmation, in form and
substance acceptable to the City, in its sole discretion, that Sorenson has executed a
binding lease or other similar arrangement by which their business shall be relocated, and
has obtained all building, land use, and other necessary approvals or permits therefor.
The City further agrees to pay to Sorenson the sum of EIGHT THOUSAND TWO
HUNDRED EIGHTY -SIX AND 70 /100THS DOLLARS ($8,286.70) upon confirmation,
in form and substance acceptable to the City, in its sole discretion, that Sorenson has fully
vacated the existing site of Grapevine, has ceased operation of the business thereon, and
has incurred additional costs and expenses to relocate Grapevine at an alternative
location. Notwithstanding the foregoing, however, in the event that prior to December 31,
2006, Sorenson is unable to obtain a suitable alternative location for Grapevine and has
permanently ceased business at the subject premises, then the City's total compensation
obligation shall be the sum of TEN THOUSAND AND NO /100THS DOLLARS
($10,000.00), with a credit to the City for any monies previously paid Sorenson
hereunder. The City shall have no compensation obligation whatsoever to Sorenson if
Sorenson has not ceased operation of Grapevine at the subject premises on or before
January 1, 2007, and after said date the City shall be entitled to initiate any remedy at law
or equity to enforce its zoning and other municipal codes without incurring any liability
to Sorenson thereby.
2.3 Under no circumstances will the City compensate Sorenson for
rent or lease obligations that can be avoided by Sorenson's current lessor obtaining a
replacement tenant prior to the expiration of the current lease between Sorenson and their
lessor. Sorenson agrees to cooperate with Sorenson's lessor in any way reasonable to
facilitate the re- letting of the subject premises by Sorenson's lessor. In the event that the
City cannot confirm the use of reasonable diligence by Sorenson's lessor with respect to
efforts to re -let the premises, the City reserves the right to deny compensation to
Sorenson for otherwise avoidable rent or lease obligations and to deduct any such
avoidable damages from the amounts set forth in paragraph 2.2, above. In no event shall
the City have any liability for rent or any other lease obligations relating to the subject
premises except as expressly set forth herein.
3. General release and discharge. Except for those obligations created by or
arising out of this agreement for which receipt or satisfaction has not been acknowledged
herein, Sorenson on behalf of themselves, descendants, ancestors, dependents, heirs,
executors, administrators, assigns, and successors, and each of them, hereby covenant not
to sue and fully release and discharge the City, as well as all its officers, agents,
attorneys, insurers, employees, representatives, assigns, and successors, past and present,
and each of them, hereinafter together and collectively referred to as "Releasees," with
2
respect to and from any and all claims, demands, rights, liens, agreements, contracts,
covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys'
or consultants' fees, damages, judgments, orders and liabilities of whatever kind or nature
in law, equity or otherwise, whether now known or unknown, suspected or unsuspected,
and whether or not concealed or hidden, which Sorenson now own or hold or have at any
time heretofore owned or held as against said Releasees, arising out of or in any way
connected with the City's review and approval of the Grapevine business license, or any
other transactions, occurrences, acts or omissions or any loss, damage or injury whatever,
known or unknown, suspected or unsuspected, resulting from any act or omission by or
on the part of said Releasees, or any of them, committed or omitted prior to the date of
this agreement.
4. Warranty of non - transfer of released matter. Sorenson warrants and
represents that Sorenson has not heretofore assigned or transferred to any person not a
party to this agreement any released matter or any part or portion thereof and Sorenson
shall defend, indemnify and hold harmless the City against any claim including the
payment of attorneys' fees and costs actually incurred whether or not litigation is
commenced based on or in connection with or arising out of any such assignment or
transfer made, purported or claimed.
5. Full understanding and voluntary acceptance. In entering this agreement,
Sorenson represents and agrees that they have relied upon the advice of their attorneys or
that they have had full opportunity to seek legal counsel of their own choice, and that the
terms of this agreement have been completely understood by them and voluntarily
accepted by them.
6. Headings not binding; effective date. The use of headings in this
agreement is only for ease of reference and the headings have no effect and are not to be
considered part of a term of this agreement. The effective date hereof shall be on the date
of last execution by a party hereto.
7. Breach. Any failure by a party to perform any action required to be
performed hereunder shall constitute a breach of this agreement. In the event of such
breach, any non - defaulting party shall be entitled to pursue any and all remedies, both
legal and equitable, including without limitation specific performance and /or suit for
damages. All terms and provisions of this agreement are material and not severable.
8. Agreement Not Enforceable by Third Parties. This agreement is neither
expressly nor impliedly intended for the benefit of any person not a party hereto and is
neither expressly nor impliedly enforceable by any such party.
9. Authority to Execute. Each person executing this agreement on behalf of
another person, corporation, partnership, company, or other organization or entity,
represents and warrants that he or she is fully authorized to execute and deliver this
agreement on behalf of the entity or party for which he or she is signing. The parties
hereby warrant to each other that each has full power and authority to enter into this
3
agreement and to undertake the actions contemplated herein, and that this agreement is
enforceable in accordance with its terms.
10. Binding Nature of Agreement. This agreement shall be binding upon and
inure to the benefit of the parties, their heirs, executors, administrators, successors,
devisees, assigns and all persons now or hereafter holding or having all or any part of the
interest of a party to this agreement.
11. Governing Law, Venue, and Attorney's Fees. This agreement shall be
governed by and construed in accordance with the laws of the State of Washington.
Venue for any action arising out of or relating to this agreement shall lie in Yakima
County Superior Court. In the event of a lawsuit to enforce or interpret this agreement,
the prevailing party shall be entitled to recover from the other party its attorneys fees
incurred either at trial or on appeal.
12. Entire Agreement. This agreement contains the entire understanding
among the parties with respect to the subject matter hereof. Except as provided herein,
there are no other representations, agreements, arrangements, or understandings, verbal or
written, between and among the parties relating to the subject matter of this agreement.
13. Counterpart Originals. This agreement may be executed by facsimile and
in any number of counterpart originals, each of which shall be deemed to constitute an
original agreement, and all of which shall constitute one agreement.
14. Cooperation. Each party shall cooperate in all ways reasonably requested
by the other party to implement the provisions of this agreement.
AGREED TO as of the dates set forth below.
eidi Sorenson Dated
'', r7.. 7, 1- / fray.. _. 067
Jeff Sore s n Dated
The City of Yakima, Washington
By: .\�
R. A. Zais, Jr.
Its: City Manager
4
r Mls S t
Dated:
410t ;3 - a
STATE OF WASHINGTON ) ', 49 pk
) ss. %4
COUNTY OF YAKIMA ) "� S H 1 tIG‘
On this day personally appeared before me Heidi and Jeff Sorenson, to me known
to be the individuals that executed the within and foregoing instrument, and
acknowledged the instrument to be their free and voluntary act and deed for the uses and
purposes therein mentioned.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this ( a day
of i e , p-.12. , 2006.
(print or type name)
NOTARY PUBLIC in and or theState of
Washington, residing at
My Commission expires: 2 —
STATE OF WASHINGTON )
) ss.
COUNTY OF YAKIMA )
On this day personally appeared before me R. A. Zais, Jr., to me known to be the
City Manager of the City of Yakima, Washington, a Washington municipal corporation,
the municipal corporation that executed the within and foregoing instrument, and
acknowledged the 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
duly authorized to execute said instrument on behalf of said municipal corporation J � J
IN WITNESS WHEREOF, I have hereunto set my hand and seal this � day
of oee , 2006.
i3N,Lfy R. Ct N `�'r1a Okla 12—
, � � y�,1ON ex 4 (print or type name) )
'his* NOTARY PUBLIC in and for the State of
NOTARY Washington, residing at Va14 "W\
PUBLIC My Commission expires: 7-1- 1(
`/GL), 15,'ph
5