HomeMy WebLinkAboutPK04-199 - Amendment - #2 - Don and Barbara Clasen - Purchase of Parcel Numbers 3422059187 & 3422059192 - 07/16/2003 ADDENDUM TWO TO REAL ESTATE PURCHASE AND SALE AGREEMENT
THIS ADDENDUM TWO between DONALD CLASEN and BARBARA
CLASEN ("Seller") and the CITY OF KENT ("Buyer"), a Washington municipal
corporation, amends that certain Real Estate Purchase and Sale Agreement entered into
between Seller and Buyer on or about the 8tnday of October, 2002, as amended by the
First Addendum, dated November 8, 2002 ( collectively, the "Agreement")
The Seller and Buyer agree as follows
1. The Closing Agent will be changed to Land America Transnation, whose
address and telephone number is 14450 Northeast 29tn Place, Suite 111, Bellevue,
Washington 98007, (425) 628-2794, in order to be consistent with the Real Estate
Purchase & Sale Agreement to be entered into between the Buyer and Northwest
Housing Guild, LLC (the "NWHG Agreement")
2. Section 7 of the Agreement shall be amended as follows
7. CLOSING OF THE SALE
a WITH THE UNDERSTANDING THAT TIME IS OF
THE ESSENCE FOR THIS AGREEMENT, this sale shall be closed
within thirty (30) days of the Buyer obtaining approval of the preliminary
plat and the planned unit development described in Section 3(d)(i) of the
NWHG Agreement unless said Closing date is extended in writing by
mutual agreement of the parties ("Closing") A copy of Section 3(d) of the
NWHG Agreement is attached as Exhibit 1. Notwithstanding the above,
however,Buyer will,in good faith, employ its best efforts to close this sale no
later than February 15,2004,unless an appeal is filed
Z25 1051% AV&. NG,, Styr. miss
Wh notified, the Buyer and Seller will deposit, without delay, in
escrow wi Land America Transnation, whose address and telephone
number is
n Bellevue, Washington
`1800q! 5899`P (425 all instruments and monies required to complete
the transaction in accordance with this Agreement By Closing all documents
64fi'OV5 will be executed and the sale proceeds will be available for disbursement to
the Seller at that time
In the event that Buyer has not obtained approval of the preliminary
plat and the planned unit development described in Section 3(d)
("Contingencies") of the NWHG Agreement by June 15, 2004, this
Agreement shall be terminated and the termination provisions in Section
ADDENDUM TWO TO REAL ESTATE
PURCHASE AND SALE AGREEMENT- 1 (July 9 2003)
(between Don and Barbara Clasen and City of Kent)
3.A.(iii) below shall apply, however the parties may, by mutual written
agreement, extend this time to obtain preliminary plat approval
3. The following contingencies must be satisfied for the extension of the
Closing date in the preceding paragraph to apply
A Purchase Price and Termination
(i) Buyer shall enter into a Real Estate Purchase and Sale
Agreement by July 18, 2003, with Northwest Housing
Guild (the "NWHG Agreement") whereby Northwest
Housing Guild ("NWHG")is the purchaser described in
subsection 4(g) of the Agreement The purchase price in
the NWHG Agreement shall be One Million Eight Hundred
Fifty Thousand and No/00 Dollars ($1,850,000 00) The
purchase price is based upon the City of Kent approving the
preliminary plat of the Property for a mimmum of forty-
mne (49) lots Should the number of lots approved be less
than 48 lots, then the purchase price shall be decreased by
$33,333 33 per lot less than 48 lots not approved Should
the number of lots approved be more than 49 lots, then the
purchase price shall be increased by $33,333 33 per extra
lot in excess of 49 lots approved If the number of lots
approved falls below 45 lots this Agreement shall be
terminated and the termination provisions in Section
3 A (in) below shall apply
(u) If Buyer fails to execute a Purchase and Sale Agreement
with NWHG, the Buyer may propose another purchaser to
Seller, but Seller has no obligation to so amend this
Agreement to include a purchaser other than NWHG
should such an amendment, in Seller's sole discretion, not
be acceptable. If a Purchase and Sale Agreement has not
been executed with NWHG by July 18, 2003, and Seller
has not agreed to another purchaser by August 10, 2003,
this Agreement shall be terminated and the termination
provisions in Section 3 A (in) shall apply
(rii) In the event this Agreement is terminated, neither Buyer
nor Seller shall have any further rights, duties, or
obligations under the Agreement, except that the refundable
earnest money should be returned to Buyer per the terms of
subsection 4(h) of the Agreement and, per subsection 4(f)
of the Agreement, all documents (including, without
ADDENDUM TWO TO REAL ESTATE
_r PURCHASE AND SALE AGREEMENT-2 (July 9 2003)
��J` (between Don and Barbara Clasen and City of Kent)
limitation, drawings, designs, and specifications
provided by NWHG's agent, the Mithun Company),
permits, approvals, and other property and rights associated
with the approval of the subdivision owned by Buyer (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
Development Rights to Seller Seller acknowledges that
Buyer cannot transfer documents owned by NWHG or any
other third party.
B Lease The NWHG Agreement shall include a provision whereby
NWHG agrees to lease to Seller the house located on King County Tax Parcel No
3422059187 rent free for ninety (90) days after Closing The lease to be executed by
Seller and NWHG is attached as Exhibit 2 As a condition of executing this lease, Seller
will name NWHG as an additional insured for the residence in amounts no less than
$2,000,000 00 liability and $300,000 replacement coverage for the dwelling unit h1
addition, Seller reserves its right to lease, but not sublet, the white house located on King
County Tax Parcel No 3422059192 in section 10 of the Agreement, rent free, for up to
one year from the date of closing.
C Salvage The NWHG Agreement shall also include a provision
whereby Seller is allowed to salvage the following items: all fences on the Property, the
red bam, 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 The
Seller will have not less than ninety days to complete the above-referenced salvage (the
"Salvage Period'), however, the Salvage Period will not commence until the Buyer, through
its purchaser, NWHG, provides the Seller tlurty (30) days prior written notice of the
commencement of the Salvage Period.
4 Section 4(h)of the Agreement shall be amended as follows
(h) Should either the contingencies in 4(0 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 tlus
Agreement shall temunate 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
hamiless 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 a 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 real property described in Deed of Trust attached as
Exhibit C to the Agreement, or one year from the date the Buyer's NWHG Agreement is
terminated, whichever is first Should the refundable portion of the earnest money not be
ADDENDUM TWO TO REAL ESTATE
PURCHASE AND SALE AGREEMENT-3 (July 9 2003)
„Q (between Don and Barbara Clasen and City ofKenf)
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 tlus reference executed with respect to
the real property contained in the subdivision the subject of the 4(f).
5 By executing this Addendum Two, Seller hereby authorizes NWHG a
Right of Entry onto the Property for the purpose of conducting a Feasibility Study
6. Although the Agreement expired by its terms on May 1, 2003, this
Addendum constitutes a novation of the Agreement, and all acts consistent with the
Agreement are ratified and confirmed Except as amended by this Addendum Two, all
provisions of the Agreement shall remain in full force and effect
7 Exhibit D, the lease between the Buyer and Seller, to the Agreement shall
be amended as underlined in the version of Exhibit D attached to this Addendum Two
These amendments are necessary to take into account construction that may be in
progress while the lease is in effect and to extend the term of the lease to be in accord
with this Addendum Two
8 Facsimile signatures on this Addendum Two will be considered originals
IN WITNESS WHEREOF, the parties hereto have executed this Addendum
Two,which shall take effect on the last date signed below
BUYER: SELLERS:
CITY OF KENT DON CLASEN
By C a— ,
Ji ite, Ma or _ �3
Date Dated 7
APPROVED AS TO FORM: BARRiBARA CLASS/E/N
Kim Adams Pratt, Assistant City Attorney Dated- '7 —O-5
Dated 7'//v -6 3
P\ tyd nL OWFsksW6/1Udd u TWIMMA FWA Cla 07003 Mc
ADDENDUM TWO TO REAL ESTATE
PURCHASE AND SALE AGREEMENT-4 (July 9 2003)
(between Don and Barbara Clasen and City of Kent)
Exhibit A
Paragraph 3(d)from the NWHG Agreement
3. (d) (i) Seller obtaining preliminary plat approval and
approval of a planned unit development based upon Buyer's Planned Unit
Development Proposal for Eagle Creek, Exhibit B, and Buyer's Conceptual Site Plan
and City Park, Exhibit C, which are subject to changes mutually agreed upon by the
parties, but in no event shall the preliminary plat approval and approval of a planned
unit development fall below 45 lots
(h) Seller agrees to pay the application fees and other costs associated with
the process of obtaining preliminary plat approval and approval of the planned unit
development. Seller agrees to pay for and provide the necessary drawings and any
modifications of those drawings needed to obtain preliminary plat approval and approval
of the planned unit development Buyer agrees to reasonably cooperate and participate
in Seller's efforts to obtain preliminary plat approval and approval of the planned unit
development Should the Closing not occur for any reason whatsoever, all documents
(including, without limitation, drawings, designs, and specifications provided by
Buyer's agent, the Mithun Company), permits, approvals, and other property and
rights associated with the application for preliminary plat approval and approval of
the planned unit development (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.
April 23, 2003
City of Kent
Parks, Recreation & Community Services
220 Fourth Ave So,
Kent, WA 98032
Mr Perry Brooks - Park & Open Space Planner
Mr. Kurt Hansen— Service Planner Community Development
Re Eagle Creek, Planned Unit Development Proposal
Dear Perry and Kurt.
Thank you for allowing Northwest Housing Guild the opportunity to participate in the
purchase of the future of the Eagle Creek Planned Unit Development It is our strong
belief that together with our team of the Northwest's leading companies and the City of
Kent that we can share in the creation of a special community at Eagle Creek
As a company, our desire is to create a community of affordable lifestyle choices and
amenities for the citizens of our area. Therefore, we have established our offering price
at $1,850,000 for the total purchase price of Eagle Creek Planned Unit Development
This figure is based on a total of 48 buildable lots,with existing house to be upgraded to
match the new housing styles and remain in it's present location. This total number of
buildable lots is based on the following criteria
1) 23 —front-load, single family homes on lot sizes 50' wide by 66' deep
2) 25 —alley lots, single family homes on lot sizes 34' wide by 80' deep
As a company it is our desire to create a community of affordable lifestyle choices and
amenities for the citizens of our area We will offer a number of different styles and
spacious floor plans, thereby creating a community of many choices Our homes w-li
range in size from approximately 1700—square feet. They will feature 3 — 6 bedrooms,
some with master bedrooms on the main floor, 2-3 bathrooms, some with bonus rooms, 2
fireplaces per home (living room & master bedroom suite), high tech wiring. 2 & 3 car
garages,tiles,hardwoods, 6 panel raised white doors, front poi ches, premium siding,
pj landscaping and private rear yards and courtyards
EXHIBIT "B"
By using these particular Iot sizes and house styles, it allows us the freedom to
incorporate the maximum amount of open space within the Eagle Creek Community. As
you will notice on our attached site plan, we have located the requested one acre park on
the frontage of 282"d street, with the park divided into sections at the entrance In
addition we are able to include approximately 225,000 square feet of additional
park/open space throughout the community Finally,we have also included a continual
50' wide road joining the entire community, thereby providing safe community access to
all areas of Eagle Creek This site plan was done in conjunction with Mr Bill Kreager
and Jeff Wagner of Mithun Architects, and we know it will give the community an open,
fresh, real and natural feeling
Also enclosed for your review is our Preferred Plan brochure This is a unique program I
developed as an entrepreneurial businessman over 25 years ago Simply put, this
program affords the homebuyer the opportunity to close on the purchase of their new
home prior to construction This affords the homebuyer many benefits as outlined in the
brochure Most importantly it allows the lomebuyer to truly "customize" their new home
to suit their lifestyle instead of being locked into the typical "cookie-cutter" style spec
lio,me.
Listed below arc Just a few of our team members that we have partnered with over the
years that would be very instrumental in the development and success of Eagle Creek
't Weyerhauser Realty Investors —Doug Yost, Equity Tnvestments
Mithun Architects— Bill Kreager. Planning & Site Development
J3argbausen Engineers—Tom Barghausen, Engineering Site Development
Homestreet Bank— Bob Pascal, A&D/Construction/Permanent Financing
Washington Federal Savings— Charles Richmond, Director Real Estate Lending
Coldwell Banker Real Estate — Bradley Running, Marketing Manager for
Northwest Housing Guild LLC
Again, our entire staff and partners would very much welcome the opportunity in
conjunction with the City of Kent to make planned unit development something unique
and special J£you should have any questions or concerns about our company and it's
team members, please reference the letter and information you received from me dated
April 7, 2003.
We will anxiously await your reply.
Smcerel
iff unntn,g
orthwest Housing Guild LLC
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1
Exhibit 2
LEASE AGREEMENT
THIS LEASE is entered into the date fully executed by and between the NORTHWEST
HOUSING GUILD LLC, a limited liability company organized under the laws 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. 3422059187. The area so leased is hereinafter called "the premises" and is depicted in
Exhibit "A" attached hereto and incorporated herein by this reference. Tenant recognizes that
construction of a planned unit development will be proceeding in all areas surrounding the premises
on King County Tax Parcel No. 3422059192 and 3422059187 Tenant agrees that access to the
premises may be relocated from its present configuration during the term of this Lease
2. USE
Tenant shall use the premises for a personal residence. 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 commit or allow to be committed upon premises,
any waste or any public or private nuisance. Tenant will comply, at Tenant's 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 90 days from the closing of the Purchase and Sale
Agreement between Owner and the City of Kent.
4. RENT
The rental value of the premises was included in the consideration of the sale between
Owner and the City of Kent and the sale between Tenant and the City of Kent. Therefore,no further
rent will be collected.
5. TAXES
Tenant shall pay any tax that this Lease, or the interest created thereby, may be subject to at
any time during the term of the Lease or renewal thereof.
G
LEASE AGREEMENT—Page 1 of 6
(between Northwest Housing Guild,LLC and Don and Barbara Clasen) (June 13, 2003)
6. RE-DELIVERY
Tenant, at the expiration of the term in section 3, any extension of the term, or upon any
sooner termination of this Lease, 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.
7. CONDMON OF THE PRENHSES
The parties acknowledge that the premises are being leased to Tenant for Tenant's
convenience. The premises are being leased"as is" Owner is not obligated to make any repairs to
the premises. All necessary repairs to maintain the condition of the premises, minus reasonable
wear and tear shall be paid by Tenant.
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 shall 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 ansing 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 prenuses
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 anse from or in connection with Tenant's
use of the premises. Tenant shall name Owners as an additional insured on this policy, subject to
notice to Owner thirty (30) days prior to cancellation. Tenant's insurance shall be in amounts no
less than $2,000,000.00 liability and$300,000.00 replacement value for the dwelling unit
11. INDEAMFICATION/HOLD HARM LESS
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, arising out of or in connection with the performance of this Lease, except for injuries
and damages caused by the sole negligence of the Owner.
LEASE AGREEMENT—Page 2 of 6
\}� (between Northwest Housing Guild,LLC and Don and Barbara Clasen) (June 13, 2003)
Should a court of competent jurisdiction determine that this Lease is subject to RCW 4 24.115, then,
in the event of liability for damages arising 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 termmation of
this Lease.
12. LIENS AND INSOLVENCY
Tenant shall keep the leased premises and property in which the leased premises are
situated, free from any liens arising out of any work performed, materials furnished 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 agents free access at all reasonable times to said
premises for the purposes of inspection, cleaning 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. Tenant also agrees to allow Owner or Owner's agents free access at all reasonable times
to said premises for reasons associated with work being performed for the planned unit
development.
15. DAMAGE OR DESTRUCTION
In the event the premises or the building 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 repairing 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:
CLEASE AGREEMENT—Page 3 of 6
/ (between Northwest Housing Guild,LLC and Don and Barbara Clasen) (June 13, 2003)
OWNER:
Northwest Housing Guild,LLC
Attn: Cliff Running,Managing Member
13110 NE 177d'Place,#118
Woodinville,Washington 98072
TENANT:
Don and Barbara Clasen
13602 SE 282"d 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 prermses, 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 herein 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, arising out of this lease, the prevailing parry 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, the Owner shall
have the right, but not the obligation, to remove from the leased premises all personal property
located therein. 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
LEASE AGREEMENT—Page 4 of 6
(between Northwest Housing Guild,LLC and Don and Barbara Clasen) (June 13, 2003)
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
During such tenancy Tenant agrees to pay to the Owner One Thousand Five Hundred
Dollars ($1500 00) a month and to be bound by all of the terms, covenants, and conditions of this
Lease, so far as applicable
22. SUBORDINATION
Upon Owner entering into any financing or refinancing affecting the subject premises,
Tenant agrees to execute documents within three (3) days of 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 parry 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 wiring, re-configuration, and system
repairs
The foregoing conditions are mutually agreed to by the Owner and the Tenant.
TENANT: OWNER:
DON CLASEN and BARBARACLASEN Northwest Housing Guild LLC, a limited
liability company
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 6
(between Northwest Housing Guild,LLC and Don and Barbara Clasen) (June 13, 2003)
STATE OF WASHINGTON }
):ss
KING COUNTY }
On this day of 2003, before me a Notary Public in and for
the State of Washington, personally appeared before me , to
me known to be the , for the NORTHWEST HOUSING GUILD, LLC., a
Washington limited liability company, 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 Seal Must Appear Within TPos Bos
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
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this day of 2003, 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
-Notary Seal Must Appear Within This 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
P�.1TIL S*pwR[.l6'l lLLeazeEk QA.
n� LEASE AGREEMENT—Page 6 of 6
(between Northwest Housing Guild,LLC and Don and Barbara Clasen) (June 13, 2003)
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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 Tenant recognizes that
construction of a planned unit development and plat will be proceeding in areas surrounding the
premises on King County Tax Parcel No 3422059192 and 3422059187 Tenant agrees that
access to the premises may be relocated from its present configuration during the term of this
Lease
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 3422059192 for horse pasture, to the
extent that it does not interfere with the construction of a planned unit development and plat
proceeding on King County Tax Parcel No 3422059192, 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 commit or allow to be committed upon premises, any waste or any public or private
nuisance. Tenant will comply, at Tenant's 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 O�kne 19, 2004,whichever is sooner f)
Tune /�� C/
� 4. RENT
The rental value of the premises was included in the consideration of the sale between
Owner and Tenant for the premises. Therefore, no further rent will be collected
` 5. TAXES
Tenant shall pay any tax that this Lease, or the interest created thereby, may be subject to at
any time during the term of the Lease or renewal thereof
LEASE AGREEMENT—Page 1 of 7
(between City of Kent and Clasen)
6. RE-DELIVERY
Tenant, at the expiration of the term hereof or any extension thereof or upon any sooner
termination of this Lease, will, without notice, quit and deliver up said premises to the Owner
jpeaceably, 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.
7. CONDMON 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 the Owner's intent to destroy the premises
once Tenant 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 shall 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 ansmg 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 injures to persons or damage to property which may anse 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, arising out of or in connection with the performance of this Lease, except for injuries
�v and damages caused by the sole negligence of the Owner.
Should a court of competent jurisdiction determine that this Lease is subject to RCW 4 24115,then,
LEASE AGREEMENT—Page 2 of 7
(between City of Kent and Clasen)
in the event of liability for damages arising 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.
12. LIENS AND INSOLVENCY
Tenant shall keep the leased premises and property in which the leased premises are
situated, free from any liens arising out of any work performed, materials furnished 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 agents free access at all reasonable times to said
premises for the purposes of inspection, cleaning 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. Tenant also agrees to allow Owner,-or-Owner's agents, Northwest Housing Guild LLC,
and its agents or assigns free access at all reasonable times to said premises for reasons associated
with work being performed for the planned unit development—and plat on Kmg County Tax Parcel
No 3422059192 and 3422059187.
15. DAMAGE OR DESTRUCTION
In the event the premises or the building 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 repairing 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
tr below, or a later changed addressed provided in writing to the party
LEASE AGREEMENT-Page 3 of 7
(between City of Kent and Clasen)
OWNER:
John Hodgson,Director
Parks,Records and Community Services Department
220 Fourth Avenue S.
Kent,Washington 98032
(253)856-5100
TENANT:
Don and Barbara Clasen
13602 SE 282°d 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 prermses,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 herein 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, arising 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 therein. 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,
wC. with the right to sell such stored property in accordance with Chapter 59 18 RCW
LEASE AGREEMENT—Page 4 of 7
(between City of Kent and Clasen)
STATE OF WASHINGTON }
}.ss
KING COUNTY }
On the day of 2003,
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 Seal Must Appear Within Thu Ba
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
STATE OF WASHINGTON )
)ss.
COUNTY OF KING )
On this day of 2003, 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.
-Notary Seal Must Appear Within This 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)
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.
During such tenancy Tenant agrees to pay a rate as agreed upon by the parties, and to be bound by
all of the terms, covenants,and conditions as herein specified, so far as applicable.
22. SUBORDINATION
Upon Owner entering into any financing or refinancing affecting the subject premises,
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 wiring, re-configuration, and system
repairs
The foregoing conditions are mutually agreed to by the Owner and the Tenant.
TENANT: OWNER:
DON CLASEN and BARBARA CLASEN NORTHWEST HOUSING GUILD,LLC
Husband and wife. a limited liability company
By:
DON CLASEN Print Name
Title
, U BARBARA CLASEN
Date- Date-
(Notary Public Acknowledgements Appear on Next Page)
LEASE AGREEMENT—Page 5 of 7
(between City of Kent and Clasen)
APPROVED AS TO FORM:
Kent City Attomey
P�Qn1FR1'S10pniF'Jes`A6JIVsueEalubitD dac
LEASE AGREEMENT—Page 7 of 7
(between City of Kent and Clasen)
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EXHIBIT "A"