HomeMy WebLinkAboutPK04-199 - Original - Don and Barbara Clasen - Purchase of Parcel Numbers 3422059187 & 3422059192 - 10/08/2002 , T ecords M eme
WAl XINGTON Document
CONTRACT COVER SHEET
This is to be completed by the Contract Manager prior to submission to City Clerks Office. All
portions are to be completed, if you have questions, please contact Mary Simmons, City
Clerks Office.
Vendor Name: j
Contract Number.
This Is assigned by Mary Simmons
Vendor Number: nn
Project Name: Q koutaca e I
Contract Effective Date: lir
Contract Termination Date: 5.11k
Contract Renewal Notice (Days): LY�
Number of days required notice for termination or renewal or amendment
Contract Manager: � IL f
Department: wLs P1 J11�1�
Abstract:
ADCL7832 07/02
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISION
This contract controls the terms of the sale of real property
(Please read carefully before sienine.
This Agreement is entered between the CITY OF KENT, a Washington municipal
corporation, whose mailing address is 220 4th Ave S, Kent, Washington 98032, (`Buyer"), and
Don and Barbara Clasen, husband and wife, whose marling address is 13602 SE 282"d Street,
Kent, Washington, ("Seller"), for the sale and purchase of real property as follows
1. PROPERTY. The property, including all improvements and appurtenances
situated thereon, which Buyer agrees to buy and Seller agrees to sell, is approximately 11 22
acres comprised of King County tax parcel numbers 3422059187 and 3422059192, legally
described in Exhibit A, attached hereto and incorporated herein by this reference ("Property")
A map indicating the location of the Property is also attached as Exhibit B, incorporated herein
by this reference
2. EARNEST MONEY. Upon mutual acceptance of this Agreement, Buyer shall
deposit with Pacific Northwest Title Company, 116 Washington Avenue N, Kent, Washington
98032, Sixty Thousand and No/100 Dollars ($60,000 00) in the form of a City of Kent Purchase
Order ('the "Purchase Order"), as refundable earnest money to be applied towards the purchase
price of the Property payable at Closing The Purchase Order shall be funded and converted to
cash within fifteen (15) days of mutual acceptance of this Agreement The Buyer shall pay
directly to Seller upon mutual acceptance of this Agreement, an additional Two Thousand Five
Hundred and No/100 Dollars ($2,500 00), as nonrefundable earnest money to be applied towards
the purchase price of the Property payable at Closing
3. PURCHASE PRICE.
(a) The purchase price for the Property is a minimum of One Million Two
Hundred Fifty Thousand and No/100 Dollars ($1,250,000 00), plus additional potential payment
described in subsection 3(b) below
(b) If the sale price for the twenty-eight (28) or greater lot subdivision
described in subsections 4(f) and 4(g) below exceeds $1,250,000 00, then that amount exceeding
$1,250,00000 shall be apportioned ninety percent (90%) to Seller and ten percent (10%) to
Buyer Due to uncertainties in the current real estate market, Buyer makes no representations to
Seller that it will be able to sell the subdivision described in subsections 4(f) and 4(g) for any
amount exceeding $1,250,000 00
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 1 of 9
(between City of Kent and Don and Barbara Clasen) (October 1, 2002)
(c) The purchase price shall be payable in cash at Closing
(d) Although Seller owns two parcels of real estate which will be sold to
Buyer under the terms of this Agreement, one of these parcels, tax parcel # 3 42205 91 87-05, with
a mailing address of 13636 S E 282 St , Kent, King County, Washington, is owned by Barbara
Clasen, as her separate property, and the proceeds from the sale of said property are intended to
remain her separate property following the Closing The purchase price will be allocated
$500,000 to Barbara Clasen as her separate estate, with the remaining balance being allocated to
the community property of Don and Barbara Clasen
4. CONTINGENCIES This Agreement is contingent upon
(a) Acceptance of its terms by the Kent City Council at the first Council
meeting after the City has entered into a Purchase and Sale Agreement or other similar document
with a third party per the terms of section 4(g)below
(b) Buyer's review and approval of the title report according to Section 5(b)
(c) Buyer's receipt of an appraisal of at least One Million Two Hundred Fifty
Thousand Dollars ($1,250,000 00) within forty-five (45) days of mutual acceptance of this
Agreement
(d) A Feasibility Study as follows
(i) Buyer shall have forty-five (45) days from the date of mutual
acceptance of this Agreement to determine, in Buyer's sole and absolute discretion, if the real
property is feasible for investment and/or development by Buyer Buyer agrees to assume all
liability for and to defend, indemnify and save Seller harmless from all liability and expense
(including reasonable attorneys' fees) in connection with all claims, suits and actions of every
name, kind and description brought against Seller or its agents or employees by any person or
entity as a result of or on account of injuries or damages to persons, entities and/or property
received or sustained, arising out of, in connection with or as a result of the acts or omissions of
Buyer or its agents or employees in exercising its rights under the right of entry granted in this
Section, except for claims caused by Seller's negligence
(n) Buyer's feasibility study may include (but is not limited to) a
Phase I and/or Phase II environmental assessment, utilities availability and capacity, access
availability, zoning, preliminary architectural and engineering studies, marketing feasibility
(in) A Phase I environmental assessment generally will consist of a
review of title of ownership and land use, review of geologic and hydrologic maps of the area,
review of federal and state databases for known hazardous water generators or contaminated
sites and a site visit If the Phase I review reveals the potential of a contaminated site, a Phase II
environmental assessment may be conducted which generally will consist of on-site sampling,
including the digging or boring of test holes for soil samples BY EXECUTING THIS
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 2 of 9
(between ON of Kent and Don and Barbara Clasen) (October 1, 2002)
AGREEMENT, SELLER HEREBY AUTHORIZES BUYER A RIGHT OF ENTRY ON TO
THE PROPERTY FOR THE PURPOSE OF CONDUCTING THIS FEASIBILITY STUDY
INCLUDING A PHASE 1, AND IF NECESSARY, A PHASE II ENVIRONMENTAL
ASSESSMENT SELLER WILL BE NOTIFIED IF A PHASE II ENVIRONMENTAL
ASSESSMENT IS TO BE CONDUCTED
(iv) Buyer agrees to conduct its feasibility study at its sole cost and
expense, and if Buyer does not remove the feasibility contingency on or before the expiration
of the feasibility period, then Buyer also agrees, if requested by Seller, to deliver to Seller
copies of all information and documentation obtained or developed by Buyer in connection
with its feasibility study
(e) If Buyer fails to notify Seller of the removal of the contingencies in
4(c) and 4(d) above, in writing, on or before forty-five (45) days after mutual acceptance,
then this Agreement shall be terminated, and neither Buyer nor Seller shall have any further
rights, duties or obligations hereunder, except that the refundable earnest money held by
Pacific Northwest Title shall be immediately returned to Buyer Buyer agrees to return the
Real Property to its original state (i e , fill all boring holes, etc ) If the contingencies in 4(c)
and 4(d) above are satisfied, Buyer shall, within five (5) business days, notify Pacific
Northwest Title to release the refundable portion of the earnest money to Setter
(f) Buyer obtaining preliminary approval for a subdivision containing a
minimum of twenty-eight (28) lots on a minimum of six (6) acres of the Property The
subdivision will include a lot containing the current residence of Seller located on King
County tax parcel number 3422059187 The parties anticipate obtaining preliminary plat
approval by October 15, 2002 Seller agrees to reasonably cooperate with Buyer's efforts to
obtain preliminary plat approval and Buyer agrees to reasonably cooperate with Seller if
Seller becomes Buyer's successor to the Development Rights defined below Buyer agrees
that the preliminary approval shall be obtained at its sole cost and expense Should the
Closing not occur for any reason whatsoever, all documents, permits, approvals, and other
property and rights associated with the approval of this subdivision (the "Development
Rights") shall become the sole property of Seller, and Buyer agrees to execute any and all
documents which may be necessary to effectuate any transfer of the Development Rights to
Seller
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 3 of 9
(between City of Kent and Don and Barbara Clasen) (October 1, 2002)
(g) Buyer entering into a purchase and sale agreement or other similar document
with a purchaser for the subdivision discussed in subsection 4(f) above Buyer will be using the
proceeds from that sale to pay Seller the purchase price for the property The purchase price for the
subdivision must beat least One Million One Hundred Fifty Thousand Dollars($1,150,000 00) The
sale between Seller and Buyer shall close simultaneously with the sale closing between Buyer and
the purchaser of the subdivision
(h) Should either the contingencies in 4(f) or 4(g), not be satisfied prior to
Closing, or the contingencies in 4(a), 4(h), or 4(1) not be satisfied by their deadlines, then this
Agreement shall terminate and neither Buyer nor Seller shall have any further rights, duties or
obligations hereunder, other than the obligation of Buyer to indemnify and hold Seller harmless set
forth in subsection 4(d) In such event Buyer shall deliver to Seller copies of all information and
documentation obtained by Buyer in connection with obtaining preliminary approval for a
subdivision, and the refundable portion of the earnest money shall be returned to Buyer As part of
the consideration for keeping the Property off the market for an extended period of time, Seller shall
not be required to return the refundable portion of the earnest money until closing of a sale of the
subdivision created in 4(f) or May 1, 2004, whichever is first Should the refundable portion of the
earnest money not be returned to Buyer within thirty (30) days of the termination of this Agreement,
Seller shall secure the refundable portion of the earnest money with the promissory note and deed of
trust attached as Exhibit C, incorporated herein by this reference executed with respect to the real
property contained in the subdivision the subject of the 4(f) The parties agree to amend tins
Agreement to include a legal description of the real property that will be the subject of the deed of
trust within fourteen(14) days of mutual acceptance
(i) Approval of its terms by Seller's attorney within thirty (30) days of
mutual acceptance
0) Approval of its terms by Buyer's attorney within thirty (30) days of
mutual acceptance
5. TITLE
(a) Conveyance. At Closing Seller shall convey to Buyer fee simple title to
the Property by duly executed and acknowledged statutory warranty deed (the "Deed"), free and
clear of all defects and encumbrances (for purposes of this Agreement, the following shall not be
deemed encumbrances or defects reasonable and customary rights reserved and federal patents
or state deeds, building or use record) and subject only to those exceptions that Buyer approves
pursuant to this Agreement (the"Permitted Exceptions")
(b) Preliminary commitment. Buyer shall order a preliminary commitment
for an owner's standard coverage policy of title insurance in the amount of the Purchase Price to
be issued by Pacific Northwest Title Company, whose address and telephone number is 116
Washington Avenue N , Kent, Washington 98032, (253) 520-0805 (the "Title Company") and
accompanied by copies of all documents referred to in the commitment (the `Preliminary
Commitment") Buyer shall advise Seller by written notice what exceptions to title, if any, are
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 4 of 9
(between 0A,of Kent and Don and Barbara Clasen) (October I, 2002)
disapproved by Buyer('Disapproved Exceptions")within fifteen (15) business days of receipt of
the Preliminary Commitment and legible copies of all exceptions to title shown in the
Preliminary Commitment Seller will have fifteen (15) days after receipt of Buyer's notice to
give Buyer notice that (i) Seller will remove Disapproved Exceptions or (ii) Seller elects not to
remove Disapproved Exceptions If Seller fails to give Buyer notice before the expiration of the
fifteen (15) day period, Seller will be deemed to have elected not to remove Disapproved
Exceptions
If Seller elects not to remove any nonmonetary Disapproved Exemptions,
Buyer will have until the expiration of the feasibility study period to notify Seller of Buyer's
electron either to proceed with the purchase and take the Property subject to those exceptions, or
to terminate this Agreement within fifteen (15) business days after receipt of Seller's notice If
Buyer elects to terminate this Agreement under this Section, the escrow will be terminated, the
refundable earnest money will be returned to Buyer, all documents and other funds will be
returned to the party who deposited them, and neither party will have any further rights or
obligations under this Agreement except as otherwise provided herein If this Agreement is
terminated through no fault of Seller, then Buyer shall pay any costs of terminating the escrow
and any cancellation fee for the Preliminary Commitment
(c) Title policy. Seller shall cause the title company to issue to Buyer at
Closing a standard coverage owner's policy of title insurance insuring Buyer's title to the
Property in the full amount of the purchase price subject only to the Permitted Exceptions (the
"Title Policy") The Title Policy must be dated as of the Closing date
6. CLOSING COSTS AND PRO-RATIONS. The cost of escrow shall be shared
equally between Buyer and Seller, except those fees which are expressly limited by Federal
Regulation Seller shall pay for excise tax and revenue stamps Taxes for the current year, rents,
interest, association, condominium and/or homeowner's fees, water and other utility charges, if any,
shall be pro-rated as of date of Closing unless otherwise agreed
7. CLOSING OF THE SALE WITH THE UNDERSTANDING THAT TIME IS
OF THE ESSENCE FOR THIS AGREEMENT, this sale shall be closed on or before May 1,
2003, unless said Closing date is extended in writing by mutual agreement of the parties
("Closing") When notified,the Buyer and Seller will deposit, without delay, in escrow with Pacific
Northwest Title, 116 Washington Avenue N, Kent, Washington 98032, all instruments and monies
required to complete the transaction in accordance with this Agreement At Closing all documents
will be executed and the sale proceeds will be available for disbursement to the Seller
8. CASUALTY LOSS. If prior to Closing, improvements on said premises shall be
destroyed or materially damaged by fire or other casualty, this Agreement shall continue in full force
and effect without any reduction of the purchase price, provided, all insurance proceeds or coverage
available to cover casualty damage to the improvements on the Premises will be applied to the
purchase price by Seller at Closing, and Seller agrees to maintain the current levels of insurance on
the Property until Buyer takes possession of the Property
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 5 of 9
(belween City of Kent and Dan and Barbara Clasen) (October 1, 2002)
9. POSSESSION. Buyer shall be entitled to possession on Closing, with the exception
of the residence on Tax Parcel No 3422059187 Seller shall be entitled to possession of the
residence for up to nmety(90)days following Closing
10. LEASE AND SALVAGE. As part of the consideration for the sale of the Property
Seller may lease the white house, currently located on King County Tax Parcel No 3422059192, rent
free for 365 days after Closing or until June 19, 2004,whichever comes first The lease is attached as
Exhibit D Seller is also entitled to salvage, at its cost, the following items all fences on the
Property, the red barn, the "old" loafing shed, any small plants on tax parcel number 3422059187,
and any personal property or fixtures from the white house on parcel number 3422059192 All
salvage of the red barn, loafing shed, fences associated with the property platted in 4(f), and the
plants must be complete witlun 6 months of Closing All of the remaining salvage must be
completed prior to Seller vacating the Property
11. SELLER'S REPRESENTATIONS. Seller represents
(a) that he/she will maintain the property in present or better condition until
time of agreed possession, reasonable wear and tear excepted,
(b) that he/she has no knowledge or notice from any governmental agency of
any violation of laws relating to the subject property except None, and
(c) that the property is not encumbered by any leases
12. SELLER'S ENVIRONMENTAL REPRESENTATIONS. Seller represents
that to the best of his/her knowledge that he/she is not aware of existence of, or has caused or
allowed to be caused, any environment condition(including,without limitation, a spill, discharge
or contamination) that existed as of and/or prior to the Closing date or any act or omission
occurring prior to the Closing date, the result of which may require remedial action pursuant to
any federal, state or local law or may be the basis for the assertion of any third party claims,
including, claims of governmental entities This provision shall survive the Closing and be in
addition to Seller's obligation for breach of a representation or warranty as may be set forth
herein
13. SELLER'S INDEMNITIES: Seller agrees to indemnify and hold harmless the
Buyer, against and in respect of, any and all damages, claims, losses, liabilities, judgments,
demands, fees, obligations, assessments, and expenses and costs, including, without limitation,
reasonable legal, accounting, consulting, engineering and/or other expenses which may be
imposed upon or incurred by Buyer, or asserted against Buyer, by any other party or parties
(including, without limitation, a governmental entity), ansing out of or in connection with any
breach of the representations made in Sections 11 and 12 of this Agreement This indemnity shall
survive the Closing
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 6 of 9
(between City of Kent and Don and Barbara Clasen) (October 1, 2002)
14. PROPERTY SOLD IN "AS IS" CONDITION. In connection with its
Feasibility Study, Buyer will inspect those aspects of the Property, including, without limitation,
its physical condition, that Buyer deems necessary in order to make a determination whether to
purchase the Property Buyer hereby acknowledges that it intends to purchase the property "as
is" and that it has received no representations or warranties from Seller as to the condition of the
Property other than that contained in Section 12 of this Agreement
15. DEFAULT AND ATTORNEY'S FEES.
(a) Buyer's Default. If Buyer defaults hereunder, other than with respect to
its obligation to indemnify and hold Seller harmless set forth in subsection 4(d), Seller's sole
monetary remedy shall be limited to damages against purchase in the liquidated amount of the
earnest money previously paid into escrow or to Seller in the amount of Sixty-two Thousand Five
Hundred and No/100 Dollars ($62,500 00) Buyer and Seller intend that said amount constitutes
liquidated damages in order to avoid other costs and expenses to either party in connection with
potential litigation on account of Buyer's default Buyer and Seller believe said amount to be a fair
estimate of actual damages Notwithstanding the above, Seller shall be entitled to an assignment of
all development rights described in Subsection 4(l) of this Agreement in the event of a default by
Buyer
(b) Seller's Default. If Seller defaults hereunder, Buyer shall have all the rights
and remedies available at law or in equity
(c) Attorney's Fees and Costs. In the event of litigation to enforce any of the
terms or provisions herein, the prevailing party shall be awarded its reasonable attorney's fees and
costs
16. NON-MERGER The terms, conditions, and provisions of this Agreement shall
not be deemed merged into the deed, and shall survive the Closing and continue in full force and
effect
17. NOTICES All notices required or permitted to be given hereunder shall be in
writing and shall be sent U S certified mail, return receipt requested, or by facsimile transmission
addressed as set forth below
(a) All notices to be given to Buyer shall be addressed as follows
John Hodgson,Director
Parks,Recreation& Community Services Department
City of Kent
220 Fourth Avenue South
Kent,Washington 98032
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 7 of 9
(betiveen City of Kent and Don and Barbara Clasen) (October 1, 2002)
(b) All notices to be given to Seller shall be addressed as follows
Don and Barbara Clasen
13602 SE 282nd Street
Kent,Washington 98042
Either party hereto may, by written notice to the other, designate such other address for
the giving of notices as being necessary All notices shall be deemed given on the day such
notice is personally served, or on the date of the facsimile transmission, or on the third day
following the day such notice is mailed in accordance with this paragraph
18. ENTIRE AGREEMENT. This Agreement, including all incorporated exhibits,
constitutes the full understanding between Seller and Buyer There have been no verbal or other
agreements that modify this Agreement
19. BINDING EFFECT AND SURVIVAL. This Agreement shall be binding upon
parties hereto and their respective heirs, successors and assigns, and the terms, conditions and
provisions of this Agreement shall survive the Closing of this transaction
20. DATE OF MUTUAL ACCEPTANCE. For the purposes of this Agreement, the
date of mutual acceptance of this Agreement shall be the last date on which the parties to this
Agreement have executed this Agreement as indicated below
21. CONFIDENTIALITY. Prior to Closing of the purchase of the Property, Buyer
will not distribute or divulge, or allow its agents or consultants to distribute or divulge, the
information or materials Buyer and its agents and consultants may generate in connection with
Buyer's feasibility study to other persons except as may be required by law Buyer further agrees
that prior to Closing, except as may be required by law, it will not further divulge or further
distribute any information or materials concerning the Property except with Seller's consent If
Buyer elects not to purchase the Property, and if Seller requests copies of the written reports and
studies prepared for Buyer in connection with this Agreement, then Buyer will deliver to Seller
copies of the final reports and studies Buyer will, in that event, cooperate reasonably with Seller
to coordinate Seller's communications with the consultants
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
set forth below
BUYER: SELLERS:
CI O KNT D LASE
By ;�Ka � f �
Jr hate,M yor Dated C o
Date /D X- O�
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 8 of 9
(between CM of Kent and Don and Barbara Clasen) (October 1, 20021
SELLERS:
APPROVED AS TO FORM: BA RBARA CLASEN
`
Tom Brubaker, City Attorney Dated jD 0epZ5;,Z,
Dated 10 •—f -oQ
P\Cwd1PILHS%LVa dee\069tTt=bs�SaleAgevuatlClea 2302 dm
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISIONS—Page 9 of 9
(between City of Kent and Don and Barbara Clasen) (October 1, 2002)
Legal Descriptions: EXHIBIT A
Property located at 13602 S E 282 St., in the city of Kent, King County, Washington
more particularly described as follows
The West 330 feet of the North 330 feet of the West 600 feet of the North 5/8 of the
Northeast 1/4 of the Southwest '/4 of Section 34, Township 22 North, Range 5 East W M ,
ALSO The West 15 feet of the North 518 of the Northeast 1/4 of the Southwest 1/4 of
Section 34, Township 22 North, Range 5 East W M ; except the South 30 feet thereof
(for County road) all situate in King County, State of Washington
Property located at 13636 S E. 282 St, Kent, King County,Washington more particularly
described as follows
The West 600 feet of the North 5/8 of the Northeast'/4 of the Southwest '/4 of Section 34,
Township 22 North,Range 5 East W M ;except the West 15 feet thereof, and except the
East 315 feet of the West 330 feet of the North 330 feet thereof, and except the South 30
feet of the Remainder(for County road) situate in King County, State of Washington
Terra Properly Analylics, LLC
EXHIBIT B
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EXHIBIT C-1
DEED OF TRUST
"en Recorded Return to.
CITY OF KENT
Property Management
220 Fourth Avenue S
Kent, WA 98032
SHORT FORM DEED OF TRUST
Grantor: DON AND BARBARA CLASEN
Grantee: CITY OF KENT
Legal Description(abbreviated)
❑O Complete legal on ExHisrr A
Assessor's Tax Parcel Identification No(s):
Reference Nos. of Documents Released or Assigned: N/A
THIS SHORT FORM DEED OF TRUST, SECURITY AGREEMENT,AND FIXTURE FILING (the
"Deed of Trust") dated , 2002, is made between DON CLASEN and
BARBARA CLASEN,husband and wife(the"Grantor"),whose address is 13602 SE 282nd
Street, Kent,Washington 98042, Pacific Northwest Title Company(Trustee),whose address
is 116 Washington Avenue,Kent,Washington 98032 and CITY OF KENT, a Washington
municipal corporation of the State of Washington(the"Beneficiary),whose address is 220
Fourth Avenue S, Kent, Washington 98032
1. GRANTING CLAUSE. Grantor hereby irrevocably bargains, sells, and conveys
to Trustee, in trust,with power of sale, all of Grantor's right,title, and interest in and to that
certain real property located in King County, Washington, more particularly described on
EXHIBIT A attached hereto and incorporated herein by this reference (the "Property");
together with
1.1 After-Acquired Title. Any after-acquired title of Grantor in the
Transferred Property,
DEED OF TRUST—Page 1 of 5
(between City of Kent and Clasen)
1.2 Easements, Etc. All of Grantor's easements, tenements,
hereditaments and appurtenances now or hereafter belonging or in any way appertaining to
the Property,
1.3 Rents. The rents, issues, and profits of the Property,
1.4 Improvements. All buildings, improvements, structures, and fixtures
of the Property now or hereafter erected on, attached to, located on, or used or intended to
be used in connection with the Property; and
1.5 Additional Property and Rights. All other property or rights of any
kind or nature further set forth herein or in the Master Form Deed of Trust referred to below,
all of which shall be deemed to be and remain a part of the Property and not severable wholly
or in any part without material injury to the freehold and shall be included in any references
to the Properly hereunder
2. OBLIGATIONS SECURED. This Deed of Trust is given for the purpose of and
does secure the following obligations.
2.1 Promissory Note. Payment of the sum of Sixty Thousand and No/00
Dollars ($60,000 00),with interest, in accordance with the terms of the Promissory Note of
even date herewith payable to or to the order of Beneficiary and made by Grantor (the
"Note'), and all renewals,modifications and extensions thereof, and anYludgment rendered
on the Note or any renewals thereof or substitutions therefor;
2.2 Obligations Under Deed of Trust. Performance of each agreement,
term, and condition set forth in this Deed of Trust
3. MASTER FORM DEED OF TRUST. By executing and delivering this Deed of
Trust and the Note secured hereby, the parties agree that all provisions of Paragraphs 1
through 35 inclusive of the Master Form Deed of Trust recorded July 25, 1968, in the official
records of Ding County, Washington and Recording No. 6382309 (the"Master Form Deed
of Trust"), except paragraphs 5, 8, 9, 10, 13, 15, 30 and 32 and such other paragraphs as are
specifically excluded or modified herein or such terms of the Master Form Deed of Trust as
are otherwise in conflict with the provisions of the Note, are hereby incorporated herein by
reference and made an integral part hereof for all purposes the same as if set forth herein at
length, and Grantor hereby makes said covenants and agrees to fully perform all of said
provisions
3.1 Conflicts. In case of any conflict between the provisions of the
Master Form Deed of Trust and this instrument or the Note, the terms of the Note shall
control.
DEED OF TRUST—Page 2 of 5
(between City of Kent and Casen)
3.2 Copy Provided. A copy of the Master Form Deed of Trust has
previously been or is hereby furnished to Grantor By executing this Deed of Trust, Grantor
acknowledges receipt of such Master Form Deed of Trust
4. REPAYMENT OF BENEFICIARY'S EXPENDITURES AND ADVANCES. Grantor
shall pay,upon 15 days written notice from Seller, all sums expended or advanced hereunder,
and all costs incurred by Beneficiary or Trustee in enforcing or protecting their nghts or
interests hereunder(including, without limitation, attorneys' fees, accountants' fees, and any
other costs or expenses whatsoever), with interest from the date of any such expenditure or
advance at the Default Rate provided in the Note, and the same shall constitute advances
made under this Deed of Trust and repayment thereof shall be secured hereby
5. REPRESENTATIONS AND WARRANTIES. To protect the security of this Deed
of Trust and for the benefit of Beneficiary, Grantor does, for Grantor and for Grantor's
successors and assigns, represent, covenant, warrant, and agree as follows.
5.1 Transferred Property Not Agricultural. That the Property is not
used principally for agricultural, timber, grazing, or farming purposes;
5.2 Warranty of Title. That Grantor has good and marketable title to
an indefeasible fee simple estate in all real property described herein subject only to such
liens and encumbrances, if any, (1) specifically described in the preliminary title report
from Pacific Northwest Title, Order No. ,
EXECUTED as of the day and year first above written.
CITY OF KENT,WASHINGTON
By
Name
Title
DEED OF TRUST—Page 3 of 5
(between City of Kent and Clasen)
STATE OF WASHINGTON I
ss.
COUNTY OF KING
On this day personally appeared before me to
me known to be the , for the CITY OF KENI', a Washington
municipal corporation, that executed the foregoing instrument, and acknowledged such
mstrument to be the free and voluntary act and deed of such municipal corporation, for the
uses and purposes therein mentioned, and on oath stated that was duly authorized to
execute such instrument.
GIVEN UNDER MY HAND AND OFFICIAL SEAL this day of
2002.
-Notary Seal Must Appear lithw Thu Box-
-WITNESS WHEREOF, I have hereunto set my hand and official seal the day
and year first above written
NOTARY PUBLIC, in and for the State of Washington
residing at
My appointment expires
DEED OF TRUST-Page 4 of 5
(between City of Kent and Clasen)
REQUEST FOR FULL RECONVEYANCE
The undersigned is the legal owner and holder of the Note and all other indebtedness
secured by this Deed of Trust. The Note,together with all other indebtedness secured by the
Deed of Trust, having been fully paid and satisfied, you are hereby requested and directed,
upon payment to you of any sum owing to you under the terms of the Deed of Trust, to
cancel the Note and all other evidences of indebtedness secured by the Deed of Trust,
together with the Deed of Trust, and to reconvey, without warranty, to the parties entitled
thereto, all of the estate now held by you thereunder
DATED this_day of 12002.
BENEFICIARY:
a
By
Its
P\CmTFTLES\O,.F 1.1 71\DEED OF TRUST d.c
DEED OF TRUST—Page 5 of
(between City of Kent and Clasen)
EXHIBIT A
LEGAL DESCRIPTION
PROPOSED TENTATIVE SUBDIVISION
COMMENCING AT THE NORTHWEST CORNER OF LOT 1 OF KING COUNTY
SHORT PLAT 377084 AS RECORDED UNDER RECORDING NUMBER
7710280712 (BEING A PORTION OF THE NORTHEAST QUARTER OF THE
SOUTHWEST QUARTER OF SECTION 34, TOWNSHIP 22 NORTH, RANGE 5
EAST, W M, KING COUNTY, WASHINGTON);
THENCE SOUTH 01°00'14" WEST 797.71 FEET,
THENCE SOUTH 89024'58" EAST 327 21 FEET;
THENCE NORTH 01000'14"EAST 767 73 FEET;
THENCE NORTH 08015'18"WEST 30 64 FEET TO THE NORTH LINE OF
AFOREMENTIONED LOT 1,
THENCE NORTH 89028'09" WEST ALONG THE NORTH LINE OF LOT 1 322 28
FEET TO THE NORTHWEST CORNER OF SAID LOT AND POINT OF
BEGINNING
EXHIBIT C-2
PROMISSORY NOTE
$60,000 00 (U S > 2002
Kent, Washington
FOR VALUE RECEIVED, the undersigned, DON CLASEN and BARBARA
CLASEN,husband and wife ("Clasen")promises to pay to the order of CITY OF KENT,
a Washington municipal corporation, ("City"), the sum of Sixty Thousand and No/100
Dollars ($60,000.00).
1. Interest Rate.
1.1 Note Rate. From and after the date of this Note, interest shall accrue
on the unpaid principal balance from time to time outstanding hereunder at an annual interest
rate of zero percent (0%)("Note Rate").
1.2 Default Rate. Should Clasen default in the payment of this Note
when due hereunder or if Clasen defaults in the observance or performance of the Deed of
Trust of even date securing this loan, interest shall accrue hereunder from the date of such
default at an annual interest rate equal to twelve percent(12%)per annum("Default Rate")
1.3 Computation of Interest. hiterest shall be computed on the basis of
a 365-day year and accrue on the basis of the actual number of days (including the first day
but excluding the last day) Clasen is in default on this Note
2. Security. This Note is secured by a Deed of Trust, (the"Deed of Trust') of
even date herewith made by Clasen in favor of the City. Clasen hereby agrees to perform and
comply with all of the agreements, terms, and conditions of the Deed of Trust.
3. Repayment. This Note shall be due and payable in full on or before the sale
of the real property described in the Deed of Trust, or May 1, 2004,whichever is first
4. Prepayment. Clasen may prepay the obligations under this Note in full or
in part at any time or from time to time without premium or penalty.
5. Application of Payments. Payments received by the City from Clasen shall
be applied first to interest and then to principal
6. Acceleration. Upon Clasen's failure to pay any amount payable hereunder
when due or upon the occurrence of any other default under this Note or the Deed of Trust
of even date,the City may declare, at its sole option and upon fifteen(15) days written notice
to Clasen, the entire indebtedness evidenced hereby immediately due and payable in full
Promissory Note—Page 1 of
(between City of Kent and Clasen)
Failure to exercise this option or any other right City may have shall not constitute a waiver
of the right to exercise such option or any other right in the event of any subsequent default
7. Costs and Fees of Collection. Clasen and every other person or entity at any
time liable for the payment of the indebtedness evidenced hereby shall also be liable for all
costs, expenses, and fees incurred by the City in collecting any amounts owing hereunder,
including reasonable attorneys' fees Should either party initiate litigation, the prevailing
party shall be entitled to costs and reasonable attorney's fees Any judgment recovered by
the City shall bear interest at the Default Rate
8. Applicable Law. This Note is made with reference to and is to be construed
in accordance with the laws of the State of Washington,without regard to that state's choice
of law rules.
NOTICE: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN
MONEY, EXTEND CREDIT, OR FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER
WASHINGTON LAW.
EXECUTED as the day and year first above written.
DON AND BARBARA CLASEN
By
Date:
By
Date.
(Notary Acknowledgement Appears on Next Page)
Promissory Note—Page 2 of 3
(between City of Kent and Clasen)
STATE OF WASHINGTON 1
ss
COUNTY OF KG )}
IN
On this day of 2002,before me a Notary Public in and
for the State of Washington,personally appeared DON CLASEN and BARBARA CLASEN,
husband and wife, personally known to me (or proved to me on the basis of satisfactory
evidence)to be the persons who executed this instrument and acknowledged it to be their free
and voluntary act and deed for the uses and purposes mentioned in this instrument
Nolaq Seal Must 4ppear if rthm Thu Bar
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day
and year first above written
NOTARY PUBLIC,in and for the State of Washington
residing at
My appointment expires
P\CnI\EILFS\OOrnF0esW6]I\PrormsearyNote doc
Pronussory Note—Page 3 of 3
(between City of Kent and Clasen)
EXHIBIT D
LEASE AGREEMENT
THIS LEASE is entered into the date fully executed by and between the CITY OF KENT,
a municipal corporation of the State of Washington, hereinafter called the "Owner", and DON
CLASEN and BARBARA CLASEN,husband and wife,hereinafter called the"Tenant'
1. PREMISES
The Owner hereby lets and leases to the Tenant the house located on King County Tax
Parcel No 3422059192 The area so leased is hereinafter called "the premises" and is depicted in
Exhibit"A" attached hereto and incorporated herein by this reference
2. USE
Tenant shall use the premises for a personal residence and shall be allowed to make
reasonable use of the remainder of King County Tax Parcel No 3422059192 for horse pasture and
for no other purposes without the written consent of Owner. No use shall be made of premises, nor
act done in or about premises, which is illegal, unlawful, or which will increase the existing rate of
insurance upon the premises Tenant shall not comrmt or allow to be committed upon premises, any
waste or any public or private nuisance Tenant will comply, at Tenants own cost and expense,
with all reasonable orders, notices, regulations or requirements of any municipality, state or other
governmental authority respecting the use of the premises
3. TERM
The term of this lease shall be for 365 days from the closing of the Purchase and Sale
Agreement between Owner and Tenant, or June 19,2004, whichever is sooner.
4. RENT
The rental value of the premises was included in the consideration of the sale between
Owner and Tenant for the prermses Therefore,no further rent will be collected
5. TAXES
Tenant shall pay any tax that tlus Agreement, or the interest created thereby, may be subject
to at any time during the term of the Lease or renewal thereof
6. RE-DELIVERY
Tenant, at the expiration of the term hereof or any extension thereof or upon any sooner
termination thereof, will, without notice, quit and deliver up said premises to the Owner peaceably,
quietly, and in as good order and condition as the same now are or may hereafter be placed by
Owner, reasonable use and wear thereof excepted.
LEASE AGREEMENT—Page 1 of 7
(between City of Kent and Clasen)
7. CONDITION OF THE PREMISES
The parties acknowledge that the premises are being leased to Tenant for Tenant's
convenience The premises are being leased "as is" It is Owner's intent to destroy the premises
once Tenants vacates. Owner is not obligated to make any repairs to the premises
8. REPAIRS AND ALTERATIONS
Tenant shall not make any alterations, additions or improvements to said premises, without
the consent of Owner in writing first, which will not be unreasonably withheld All alterations,
additions and improvements that are made, shall be at the sole cost and expense of Tenant All
improvements shall become the property of the Owner except for improvements that Owner, at
Owner's option, agrees are the property of Tenant, or improvements that Owner requests Tenant to
remove at termination If the Tenant shall perform work with the consent of the Owner, Tenant
agrees to comply with all laws, ordinances,rules, regulations of the appropriate City or County, and
any other authorized public authority The Tenant further agrees to save the Owner free and
harmless from damage, loss or expense arising out of the said work Tenant agrees that Owner has
the right, but not the duty, to make alterations to the premises
9. UTILITIES
Tenant shall pay for all utilities provided to the premises
10. INSURANCE
The Tenant shall procure and maintain for the duration of the Lease insurance against claims
for injuries to persons or damage to property which may arise from or in connection with Tenant's
use of the premises and the remainder of the tax parcel for horse pasture
11. INDEMNIFICATION/HOLD HARMLESS
The Tenant shall defend, indemnify and hold the Owner, its officers, officials, employees
and volunteers harmless from any and all claims, injuries, damages, losses or suits including
attorney fees, ansmg out of or in connection with the performance of this Lease, except for mjunes
and damages caused by the sole negligence of the Owner.
Should a court of competent junsdiction detemune that this Lease is subject to RCW 4 24 115,then,
in the event of liability for damages ansing out of bodily injury to persons or damages to property
caused by or resulting from the concurrent negligence of the Tenant and the Owner, its officers,
officials, employees, and volunteers, the Tenant's liability hereunder shall be only to the extent of
the Tenant's negligence. The provisions of this section shall survive the expiration or termination of
this Lease
LEASE AGREEMENT—Page 2 of 7
(between City of Kent and Clasen)
12. LIENS AND INSOLVENCY
Tenant shall keep the leased prenuses and property in which the leased premises are
situated, free from any hens ansing out of any work performed, materials fumrshed or obligations
incurred by Tenant
13. ASSIGNMENT
Tenant shall not assign this lease or any part thereof and shall not let or sublet the whole or
any portion of the premises This lease shall not be assignable by operation of law.
14. ACCESS
Tenant will allow Owner or Owner's agent free access at all reasonable times to said
premises for the purposes of inspection, cleamng or making repairs, additions or alterations. This
right shall not be construed as an agreement on the part of the Owner to make repairs, additions, or
alterations
15. DAMAGE OR DESTRUCTION
In the event the premises or the braiding is damaged to such extent as to render the premises
untenantable in whole or in a substantial part thereof, or is destroyed, the Tenant shall give Owner
or Owner's agent immediate written notice thereof, and,it shall be optional with the Owner to repair
or rebuild the same, Owner shall have not more than thirty(30) days after date of such notification
to notify the Tenant in writing of Owner's intentions to repair or rebuild said premises,or the part so
damaged as aforesaid If Owner elects to repair or rebuild said premises, Owner shall prosecute the
work of such repainng or rebuilding without unnecessary delay If Owner elects not to repair or
rebuild said premises this Lease shall be terminated
16. NOTICES
All notices to be given by the parties hereto shall be in writing and may either be served
personally or may be deposited in the United States Mail, postage prepaid,by either registered mail
or by regular mail with certificate of mailing obtained Notices shall be mailed to the addresses
below, or a later changed addressed provided in writing to the party
OWNER:
John Hodgson,Director
Parks, Records and Community Services Department
220 Fourth Avenue S
Kent, Washington 98032
(253) 856-5100
LEASE AGREEMENT—Page 3 of 7
(between City of Kent and Clasen)
TENANT:
Don and Barbara Clasen
13602 SE 282n1 Street
Kent, Washington 98042
(253) 631-3333
17. DEFAULT AND RE-ENTRY
If Tenant shall violate, default or not comply with any of the material covenants, agreements
or provisions of this lease agreement, then the Owner may cancel this lease upon giving the notice
required by law, and re-enter said premises,using such force as may be required.
The failure of the Owner to insist upon strict performance of any of the covenants and
agreements of this lease, or to exercise any option herem conferred in any one or more instances,
shall not be construed to be a waiver or relinquishment of any such, or any other covenant or
agreements,but the same shall be and remain in full force and effect
18. COSTS AND ATTORNEYS FEES
If by reason of any default on the part of Tenant it becomes necessary for the Owner to use
an attorney, or if Tenant shall bring any action for any relief against Owner, declaratory or
otherwise, ansing out of this lease, the prevailing party shall have and recover against the other
party in addition to the cost allowed by law, such sum as the court may adjudge to be reasonable
attorney's fees
19. REMOVAL OF PROPERTY
In the event of any entry in, or taking possession of, the leased premises as aforesaid, the
Owner shall have the right, but not the obligation, to remove from the leased premises all personal
property located therem. Owner may store the same in any place selected by Owner, including but
not limited to a public warehouse, at the expense and risk of the owners of the personal property,
with the right to sell such stored property in accordance with Chapter 59.18 RCW
20. HEIRS AND SUCCESSORS
Subject to the provision hereof pertaining to assignment and subletting, the covenants and
agreements of this lease shall be binding upon the heirs, legal representatives, successors and
assigns of any or all of the parties hereto.
21. HOLDOVER
If the Tenant shall, with the written consent of Owner, holdover after the expiration of the
term of this lease, such tenancy shall be for an indefinite period of time on a month to month
tenancy, such tenancy may be terminated as provided by the laws of the State of Washington
LEASE AGREEMENT—Page 4 of 7
(between Cz),of Kent and Clasen)
During such tenancy Tenant agrees to pay to the Owner a rate as agreed upon by the parties, and to
be bound by all of the terms, covenants, and conditions as herem specified, so far as applicable.
22. SUBORDINATION
Upon Owner entering into any financing or refinancing affecting the subject prennses,
Tenant agrees to execute documents at the request of Owner to subordinate this lease to any
mortgage, (or deed of trust or other security) granted to a financing institution or other secured party
or entity
23. COMMUNICATIONS
Tenant is responsible for all installation,operation and termination charges related to its own
independent telephone system, including, but not limited to, costs, expenses and charges for
telephone equipment and line charges, line installation, inside wrong, re-configuration, and system
repairs
The foregoing conditions are mutually agreed to by the Owner and the Tenant.
TENANT: OWNER:
City of Kent, a municipal corporation of
DON CLASEN and BARBARACLASEN
Husband and Wife
By
DON CLASEN Print Name-
Title
BARBARA CLASEN
Date Date.
(Notary Public Acknowledgements Appear on Next Page)
LEASE AGREEMENT—Page 5 of 7
(between City of Kent and Clasen)
STATE OF WASHINGTON }
} ss
KING COUNTY }
On this day personally appeared before me to me
known to be the , for the CITY OF KENT, a Washington municipal
corporation, that executed the foregoing instrument, and acknowledged such instrument to be the
free and voluntary act and deed of such municipal corporation, for the uses and purposes therein
mentioned, and on oath stated that was duly authorized to execute such instrument.
-Notary Sed Mull Appear Within Thu Box-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the
day and year first above written
NOTARY PUBLIC, in and for the State of Washington
residing at
My appointment expires
LEASE AGREEMENT—Page 6 of 7
(between City of Kent and Clasen)
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On tlus day of 2002, before me a Notary Public in and for
the State of Washington, personally appeared DON CLASEN and BARBARA CLASEN,
husband and wife, personally known to me (or proved to me on the basis of satisfactory evidence)
to be the persons who executed this mstrument and acknowledged it to be their free and voluntary
act and deed for the uses and purposes mentioned in this instrument
-Notary Seat Must Appear Wulun nu Box-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and
year first above written
NOTARY PUBLIC,in and for the State of Washington
residing at
My appointment expires
APPROVED AS TO FORM
Tom Brubaker, City Attorney
P�nMLeS\Open,WG67 V�doc
LEASE AGREEMENT—Page 7 of 7
(between City of Kent and Clasen)