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Home My WebLink AboutCAG2003-0495 - Original - Friendly Fuels, Inc. - Settlement & Mutual Release of Claims - 09/14/2003 r. o ' KENT WASHINGTON SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF CLAIMS THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF ALL CLAIMS is entered into between the City of Kent, a Washington municipal corporation ("City"), and Friendly Fuels, Inc., a Washington corporation ("Friendly Fuels"), by and through Its president, Mr. Adam Sims, which is located and doing business at 1190 Sunset Blvd NE, Suite F, Renton, WA 98056. I. RECITALS 1.1 In 1996, Friendly Fuels submitted a development application to redevelop an existing building to a mini-mart convenience store with an associated gasoline sales facility in the City. The site is located at 10225 SE 2561h Street in the City of Kent, King County, Washington. 1.2 This development application was subject to the State Environmental Policy Act ("SEPA"), and subject to environmental review by the City. On or about October 22, 1996, James P. Harris, the City's SEPA Responsible Official, issued a Revised Determination of Non-Significance (#ENV-96-59) on Friendly Fuels' development proposal. 1.3 Among the conditions imposed upon this proposed development under SEPIA, Friendly Fuels was required to either. (a) complete an extensive traffic impact study to identify all traffic impacts within the City's road network and traffic signal system caused b the development, or b execute an Environmental Mitigation Agreement Y P O 9 9 ("EMA") to financially participate and pay a fair share of the cost associated with the construction of the City's 277th Street Corridor project. 1.4 On or about January 2, 1997, Friendly Fuels entered into an EMA with the City. Each party is in possession of a signed original EMA; however, each EMA contains varying terms and conditions The parties are in dispute as to which EMA constitutes the true and correct original 1.5 After the date of execution of the disputed EMA, the City formed Local Improvement District No 351 ("LID 351"), which assessed various properties within the City-based upon the special benefit accruing to those properties arising from the City's construction of its 277th Street Corridor project. The City provided Friendly Fuels with notice of the formation of the LID and subsequently provided Friendly Fuels with notice of the proposed assessment against the above-referenced Friendly Fuels development property. The City conducted a hearing on the proposed assessment roll for LID 351 Friendly Fuels did not appear or object to the amount of the proposed assessment against this property. The City finalized the assessment roll on LID 351, assessing Friendly Fuels' development property, under Assessment No 013200, in the original assessment amount of$258,028.80. AGREEMENT AND MUTUAL RELEASE OF ALL CLAIMS- 1 (September 12, 2003) s 1.6 Because of the dispute over the EMA agreement, Friendly Fuels has not paid any assessments as they have become due under LID 351 The City asserts that Fnendly Fuels now owes past due payments of principal, interest, and accrued penalties 1.7 In order to settle the dispute between the parties, the City has agreed to waive accrued penalties on the unpaid installments in an amount equal to $8,566.80 on the condition that Friendly Fuels pay all principal and interest accrued as of July 5, 2003. The City further agreed to allow payment of this amount up to September 5, 2003. As of September 5, 2003, Plaintiff's attorney has represented that it has mailed to the City a check in the amount of $95,186.82 in full and final settlement of all claims either party has against the other relating to the execution or existence of the EMA and to all principal, interest, and penalties accrued as of July 5, 2003, by Friendly Fuels on the above-referenced property. The City has further agreed to refrain from cashing this check until this Agreement is fully executed between tha parties. NOW THEREFORE, in consideration of the terms and conditions in this Agreement and the mutual benefits received, the parties agree as follows: II. AGREEMENT 2.1 As of July 5, 2003, the total amount due on Assessment No 013200 under the City's LID 351 was $103,753.63. The City will waive accrued penalties in an amount equal to $8,566.80, leaving a reduced balance due of $95,186 83. Friendly Fuels will deliver a check in this amount to the City, either by personal delivery or by placing in the US mail, no later than September 5, 2003. 22 If payment is properly made as provided for in this Agreement, Friendly Fuels will be current with its LID 351 assessments and payments and, so long as future installments are paid when due, no further penalties will attach. Friendly Fuels does understand, however, because of the accrued unpaid balance for the three month period commencing on July 5, 2003, accrued interest due with the next installment will, this one time only, exceed the typical accrued interest by approximately Three Thousand dollars ($3000.00). Thereafter, payments of principal and interest should be in line with the original calculations and projections delivered to Friendly Fuels after finalization of the LID 351 assessment roll. 2.3 Each party, for itself, its heirs, successors, and assigns, releases, acquits, and forever discharges the other party and its agents, employees, officers, servants, successors, heirs, executors, administrators, and all other associated persons, firms, corporations, associations, or partnerships of any and all claims, actions, costs, and compensation arising from or relating to the existence of and execution of the EMA relating to Friendly Fuels' development proposal, #ENV-96-59, for the Friendly Food Mart-Kent project. 2.4 Each party, for itself, its heirs, successors, and assigns, releases, acquits, and forever discharges the other party and its agents, employees, officers, servants, successors, heirs, executors, administrators, and all other associated persons, firms, corporations, associations, or partnerships of any and all claims, actions, costs, and compensation arising from or relating to all payments of principal, interest, and penalties AGREEMENT AND MUTUAL RELEASE OF ALL CLAIMS-2 of 4 (September 12, 2003) attributable to Assessment No. 00132 under the Clty's LID 351 that have accrued as of July 5, 2003. Because the assessment accrues against the property and is not personal to the owner, Friendly Fuels, or any successor property owner, is still responsible to pay all remaining installments as they accrue against Assessment No 00132 under LID 351 THE UNDERSIGNED HAVE HAD AN OPPORTUNITY TO CONSULT AN ATTORNEY REGARDING THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF CLAIMS, AND HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND IT THIS AGREEMENT SHALL TAKE EFFECT ON THE LAST DATE ENTERED BELOW. FRIENDLY F E INC. By Ad Sims Its ocov-r. Date• CITY OF KENT By ai1 �k � Tom Brubaker Its: City Attorney Date 9 j Is I03 STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that I know or have satisfactory evidence that Adam Sims is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the Instrument on behalf of the Friendly Fuels, Inc. as Its President, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing Instrument -Notary Sea!Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my and official seal the day and year first above wri No"PAN ftw of NOTARY PUBLIC, in and for the St to �11110 1& of Washington, residing at My appointment expires AGREEMENT AND MUTUAL RELEASE OF ALL CLAIMS-3 of 4 (September 12, 2003) STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that I know or have satisfactory evidence that Tom Brubaker is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the Instrument on behalf of the City of Kent as Its City Attorney, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned In the foregoing Instrument -(Votary 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. Pau C �• W/y/T r SlO/y o��JOTggy y NOTARY PURL C, In and for the Sete rr., of Washington, residing at IN pit N C My appointment expires 11 vy- s,?g_pA - P IGnI IFILEMpenFdeM077715&IZntApraT e%m tloc AGREEMENT AND MUTUAL RELEASE OF ALL CLAIMS-4 of 4 (September 12, 2003)