HomeMy WebLinkAboutPW04-039 - Original - Favors Investments - Steiner Property - 272nd/274th Corridor - 01/21/2004 it
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KENT Document
WASHINGTON
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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: ,�l��� IZ ___Vendor Number:
o JD Edwards Number
Contract Number: eGJ- D Y- 0..3/
This is assigned by Mary Simmons
Description: /I"PS' • Le 'r !' -�� �/Z �/� /D�1�Y 270�111
Detail:
Project Name:
Contract Effective Date: t Termination Date:
Contract Renewal Notice (Days): �i �r�r
Number of days required notice for termination or renewal or amendment
Contract Manage . C Department: PL� i
Abstract•
S:Public\RecordsManagement\Forms\ContractCover\ADCL7832 07/02
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REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISION
This Agreement is entered between the CITY OF KENT, a Washington municipal corporation,
("Seller'), authorized by the Kent City Council on January 6, 2004 and iAVO-5 1N✓esf oett6
,(`Buyer"),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 legally described in
Exhibit"A",attached hereto and incorporated herein by this reference.
2. EARNEST MO) Y. Received from Buyer, S�p�T�ti ���S�N� /I
ZZ!r40'2-), as earnest money and partial payment on the purchase
price.
3. PURCHASE PRICE. The total purchase price for the Property is One Hundred
Seventy Five Thousand Dollars ($175,000.00) net. Less paragraph #7 (seven) ,
including earnest money,payable on closing.
4. CONTINENGIES. This agreement is contingent upon:
(a) Buyer's review and approval of the condition of title to the Property as seen in
Title Report number 549852 attached hereto as Exhibit "B" and incorporated
here in by this reference. Buyer shall have until the end of the Due Diligence
Period described in subparagraph(b)below to notify Seller of its
approval of the condition of title.
(b) A feasibility Study as follows:
1. Buyer shall have a period of thirty ( 30 ) days (the Due Diligence
Period) in which to conduct an examination and review of all issues to
the property. The Due Diligence Period shall commence upon mutual
acceptance of the Agreement. During the Due Diligence Period, the
Seller shall give the Buyer and its agents and consultants full access to
the Property. Buyer shall repair any damage to the property caused by
Buyer, its employees or agents during inspection and shall protect,
P WMUmy1RB Purchase R Sale Agm[1-15-04 doc Pegs 1 of 7
b
defend and hold Seller harmless from any claims, liabilities, costs or
liens that may be filed against the Seller or the Property as a result of
such-due diligence investigation.
2. Buyer's f easibility s tudy in ay i nclude (but i s not limited t o) a P hase I
and/or Phase H environmental assessment, utilities availability and
capacity, access availability, zoning, preliminary architectural and
engineering studies,and marketing feasibility.
3. Buyer's obligations under the Agreement shall be expressly subject to its
approval of the Property and the results of its due diligence review of the
Property, such approval to be determined by Buyer in its sole and
absolute discretion. Buyer shall deliver written notice to Seller and the
escrow company prior to the expiration of the Due Diligence Period that
it has either: (a) elected to terminate this Agreement, whereupon the
escrow company shall refund the earnest money to Buyer and this
Agreement shall terminate, and neither party hereto shall have any
further rights or obligations under this Agreement; or (b) Buyer has
elected to proceed with the purchase of the Property, in which even the
earnest money shall be paid to Seller and shall not be refundable to
Buyer except as otherwise expressly provided in this Agreement,or upon
breach of this Agreement by Seller. If Buyer fails to deliver written
notice to Seller and the escrow company prior to the expiration of the
Due Diligence Period, Buyer shall be deemed to have not approved its
inspection and to have elected not to proceed with the purchase of the
Property.
Should any of the contingencies not be met prior to closing, then this Agreement shall terminate
and neither Buyer not Seller shall have any further rights, duties or obligations hereunder, except
that the Earnest Money held in Pacific Northwest Title, by Buyer to Sellers shall be returned to
Buyer.
5. CONVEYANCE AND CONDITION OF TITLE. The title to the real property shall be
conveyed by Seller to Buyer at closing by Statutory Warranty Deed, free and clear of all
liens, encumbrances or defects except those described in schedule B of the attached
Exhibit`B".
P 1PPMU=r)ARE Purchme&Sale Agent 1-15-04 doc Page 2 of 7
F
6. TITLE INSURANCE. Title to the Property shall be conveyed by Seller to Buyer by a
Statutory Warranty Deed free and clear of all liens,encumbrances or other defects except
as set for with in schedule B in the attached Exhibit "B". Buyer shall have the right to
obtain an ALTA "as built" survey of the Property from a licensed surveyor or civil
engineer acceptable to Buyer at its sole cost and expense.
7. CLOSING COSTS AND PRO-RATIONS. Seller shall pay the premium for a standard
coverage owner's policy of title insurance in an amount equal to the Purchase Price, all
real estate excise taxes and the cost of any documentary or other transfer taxes applicable
to the sale. The escrow fee shall be borne equally by Seller and Buyer. Buyer shall pay
all recording costs, any increase in the title insurance premium attributable to extended
coverage, the costs of any survey, and the fees and expenses of its consultants. All
revenues and expenses of the Property, including but not limited to, real property taxes,
special assessments, rents, water, sewer and utility charges, shall be prorated on the day
of Closing.
8. CLOSING OF THE SALE. Closing shall occur on or before Two 2 months from
mutual acceptance. Closing shall occur at Pacific Northwest Title located at 116
Washington Avenue North,Kent,Washington.
9. AS-IS. Buyer has been allowed to make an inspection of the house and the Property and
has knowledge as to the past use of the Property. Based upon this inspection and
knowledge, Buyer is aware of the condition of the property and BUYER IS AWARE
THAT BUYER IS PURCHASING THE HOUSE AND THE PROPERTY ON AN
"AS-IS WITH ALL FAULTS" BASIS WITH ANY AND ALL PATENT AND
LATENT DEFECTS, INCLUDING THOSE RELATING TO THE
ENVIRONMENTAL CONDITION OF THE PROPERTY, AND THAT BUYER
IS/ARE NOT RELYING ON ANY REPRESENTATION OR WARRANTIES,
EXPRESS OR IMPLIED, OF ANY KIND WHATSOEVER FROM SELLER AS
TO ANY MATTERS CONCERNING THE PROPERTY, including the physical
condition of the Property and any defect thereof, the presence of any hazardous
substances, wastes or contaminants in, on or under the Property, the condition of
existence of any of the above ground or underground structures or improvements in, of or
P1PPMVeny\RE Purchase&Sale Agnt.l-15-04 dx Page 3 of 7
under the property, the condition of the property, and the leases, easements or other
agreements affecting the property. Buyer is aware of the possibilities that hazardous
substances and contaminants could be present on the Property, and indemnifies,holds
harmless and hereby waives, releases and discharges forever Seller from any and all
present or future claims or demands, and any and all damages, loss, injury, liability,
claims or costs, including fines, penalties and judgments, and attorney's fees, arising
from or in any way related to the condition of the property or alleged presence, use,
storage,generation,manufacture,transport,release, leak, spill, disposal or other handling
of any hazardous substances or contaminants in, on or under the property. Losses shall
include without limitation (a) the cost of any investigation, removal, remedial or other
response action that is required by any Environmental Law, that is required by judicial
order or by order of or agreement with any governmental authority,or that is necessary or
otherwise is reasonable under the circumstances; (b) Losses for mury or death of any
person; and(c) Losses arising under any Environmental Law enacted after transfer. The
rights of Seller under this section shall be in addition to and not in lieu of any other rights
or remedies to which it may be entitled under this document or otherwise. This
indemnity specifically includes the obligation of Buyer to remove, close, remediate,
reimburse or take other actions requested or required by any governmental agency
concerning any hazardous substances or contaminants on the Property.
The term `Environmental Law" means any federal, state or local statute,
regulations, code, rule, ordinance, order,judgment, decree, injunction or common
law pertaining in any way to the protection of human health or the environment,
including without limitation,the Resource Conservation and Recovery Act,the
Comprehensive Environmental Response, Compensation and Liability Act, the
Toxic Substances Control Act, and any similar or comparable state or local law.
The term "Hazardous Substance' means any hazardous, toxic, radioactive
or infectious substance, material or waste as defined, listed or regulated under any
Environmental Law, and includes without limitation, petroleum oil and any of its
fractions.
10. CASUALTY LOSS. If prior to closing, improvements on said premises shall be
destroyed or materially damaged by fire or other casualty, this agreement, at
option of the Buyer, shall become null and void.
P TPMU0Ty\t8 PWdh &Sa4 AP*1-15-04 doc Page 4 of 7
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11. DEFAULT AND ATTORNEY'S FEES.
(a) Buyer's Default. If Buyer defaults hereunder, Seller's sole remedy shall be
limited to damages against Buyer in the liquidated amount of the earnest
money previously paid by the Buyer. Buyer and Seller intend that said
amount constitutes liquidated damages and so as 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.
(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, each party shall pay all its own costs and
attorney's fee.
12. 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
m full force and effect.
13. 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 Seller shall be addressed as follows:
Jerry McCaughan
City of Kent
220 Fourth Avenue South
Kent, WA 98032
(b) All notices to be given to Buyer shall be addressed as follows:
_AX' R7 J, /AvuRl
3I/3Y S3 Srw
25,.E— riz7- 75i9,�
P\PPMVuryVtE Purchase&Sak Apmt 1-15-04 doc Page 5 of 7
(c) All notices to be given to Escrow Agent shall be addressed as follows:
Jean Johnson
Pacific Northwest Title
116 Washington Avenue North
Kent, WA 98032
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.
14. 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.
15. 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.
16. 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.
17. EXPIRATION OF OFFER. Buyer shall have only until S:OOpm on the 161h of
February, 2004 to accept the purchase and sale agreement as written, by
delivering a signed copy thereof to the Seller. If Buyer does not so deliver a
signed copy within said period, this agreement shall lapse and all right of the
parties hereunder shall terminate.
P 1PPMVeffYRE Purchm&Sale Agm L 1.15-04 doc Page 6 of 7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set
forth below.
SELLER: BUYER:
CITY OF NT
By: Mayor Jim White Dated: f /V -D
Dated: _&— rm�z/ ^ O /
P\PPM%JmyaE P=hw&Sak Agm t 1•I5-04 doo Page 7 of 7
EXHIBIT "A"
Parcel A, City of Kent Lot Line Adjustment Number LL-2002-6 recorded under Recording
Number 20021010002536 which is a rerecording of 20020404002436 said Lot Line Adjustment
being a portion of the Northwest quarter of the Northeast quarter of Section 32, Township 22
North,Range 5 West, W.M., in King County,Washington. Except the West 3.00 feet thereof.
Together with an easement for ingress, egress and utilities over, across and under lots one
through four as depicted on easement detail on City of Kent Short Plat 02-19 recorded under
King County Auditors File Number I.
Subject to an easement over the South 60.00 feet of the East 12.00 feet for ingress, egress and
utilities for the benefit of lots two and three in said short plat.
Reserving an easement for storm drainage over, across and under the following described
property, a strip of land, 15.00 feet in width, said strip of land having 7.50 feet on each side of
the following described centerline:
Commencing at the Southwest corner of Parcel A, City of Kent Lot Line Adjustment LL-2002-6
recorded under King County Recording Number 20021010002536; Thence South 88042'42"
East, along the South line of said Parcel A, 3.00 feet; Thence North 02°25'00" East, 28.53 feet to
the True Point of Beginning of the herein described centerline; Thence North 46016'32" East
75.12 feet to the North line of said Parcel A and the terminus of the herein described centerline.
The side lines of said strip shall be extended or shortened as required to terminate at the
boundaries of said Parcel A.
The said Grantor shall have the right without prior institution of suit or proceeding at law, at
times as may be necessary, to enter upon said property and immediate adjacent areas with the
necessary equipment for the purposes of altering installation, operation, maintenance, extending,
constructing, repair and reconstructing of said Storm drainage or making any connections
therewith without incurring any legal obligation or liability therefore; providing that said
altering, installation, operation, maintenance, extending, constructing, repair and reconstructing
of said Storm drainage shall be accomplished in such a manner that the private improvements
existing within this easement area including said incidental areas shall not be disturbed or
destroyed, or in the event they are disturbed or destroyed, they will be replaced in as good a
condition as they were immediately before the property was entered upon by the Grantor. The
Grantee shall retain the right to use the surface of this easement including said incidental areas
so long as said use does not interfere with the uses heretofore defined. Under no circumstances
shall any cement concrete or any structures be placed or erected on this easement. This easement
shall be a covenant running with the land forever and shall be binding on the Grantee's
successors, heirs, and assigns.
PACQ'IC Tk7R7t1WPST TYlIE
TO: City of Kent 215 Columbia Street
220 4th Avenue South Seattle,Washington
Kent, WA 98032 98104
Attn: Jerry.McCaughan
SUPPLEMENTAL REPORT #1
PNWT Order Number: 549852
Seller: City of Kent
Buyer/Borrower: To Follow
The following matters affect the property covered by this order:
• The following paragraph(s) of our preliminary commitment has/have
been eliminated: 1 & 3
• Except as to the matters reported hereinabove, the title to the
property covered by this order has NOT been re-examined
Dated as of October 23, 2003 at 8:00 a.m.
PACIFIC NORTHWEST TITLE COMPANY
By: Mike Sharkey
Title Officer
Phone Number: 206-343-1327
ph
PACIFIC NORTHWEST TITLE COMPANY
OF WASHINGTON, INC.
215 Columbia Street
Seattle, Washington 98104-1511
Senior Title Officer, Mike Sharkey (mikesharkey@pnwt.com)
Title Officer, Curtis Goodman (curtisgoodman@pnwt.com)
Title Technician, Annette Strate (annettestrate@pnwt.com)
Unit No. 12
FAX No. (206)343-1330
Telephone Number (206)343-1327
City of Kent
220 4th Avenue South Title Order No. : 549852
Kent, WA 98032
Attention: Jerry McCaughan
A. L. T. A. COMMITMENT
SCHEDULE A
Effective Date: September 29, 2003, at 8:00 a.m.
1. Policy(ies) to be issued:
A. ALTA Owner`s Policy Amount TO BE AGREED UPON
Standard (X) Extended ( ) Premium
Tax (8.8%)
Proposed Insured: TO FOLLOW
NOTE: IF EXTENDED COVERAGE FOR OWNERS OR LENDERS WILL BE
REQUIRED FOR A PENDING TRANSACTION, PLEASE NOTIFY US AT LEAST ONE
WEEK PRIOR TO CLOSING SO THAT WE MAY INSPECT THE PREMISES.
B. ADDITIONAL WORK CHARGES Amount $ 330.00
Tax (8.8%) $ 29.04
2. The Estate or interest in the land described herein and which is
covered by this commitment is fee simple.
3. The estate or interest referred to herein is at Date of Commitment
vested in:
CITY OF KENT, a municipal corporation
4. The land referred to in this commitment is situated in the State of
Washington, and described as follows:
As on Schedule A, page 2, attached.
r
Order No. 549852
A.L.T.A. COMMITMENT
SCHEDULE A
Page 2
The land referred to in this commitment is situated in the State of
Washington, and described as follows:
Parcel A, City of Kent Lot Line Adjustment Number LL-2002-6 recorded
under Recording Number 20021010002536 which is a rerecording of
20020404002436 said lot line adjustment being a portion of the
northwest quarter of the northeast quarter of Section 32, Township
22 North, range 5 West, W.M., in King County, Washington.
END OF SCHEDULE A
NOTE FOR INFORMATIONAL PURPOSES ONLY:
The following may be used as an abbreviated legal description on the
documents to be recorded, per amended RCW 65.04. Said abbreviated
legal description is not a substitute for a complete legal description
within the body of the document.
NW NE, 32-22-05
PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC.
A.L.T.A COMMITMENT
Schedule B Order No. 549852
I. The following are the requirements to be complied with:
A. Instruments necessary to create the estate or interest to be
insured must be properly executed, delivered and duly filed
for record.
B. Payment to or for the account of the grantors or mortgagors of
the full consideration for the estate or interest to be
insured.
II. Schedule B of the Policy or Policies to be issued (as set forth in
Schedule A) will contain exceptions to the following matters unless the
same are disposed of to the satisfaction of the Company:
A. Defects, liens, encumbrances, adverse claims or other matters,
if any created, first appearing in the public records or
attaching subsequent to the effective date hereof but prior to
the date the proposed Insured acquires for value of record the
estate or interest or mortgage thereon covered by this
Commitment.
B. GENERAL EXCEPTIONS:
I. Rights or claims of parties in possession not shown by the
public records.
2. Public or private easements, or claims of easements, not
shown by the public record.
3. Encroachments, overlaps, boundary line disputes, or other
matters which would be disclosed by an accurate survey or
inspection of the premises.
4. Any lien, or right to a lien, for services, labor or
material heretofore or hereafter furnished, imposed by law and
not shown by the public records, or Liens under the Workmen's
Compensation Act not shown by the public records.
5. Any title or rights asserted by anyone including but not
limited to persons, corporations, governments or other
entities, to tide lands, or lands comprising the shores or
bottoms of navigable rivers, lakes, bays, ocean or sound, or
lands beyond the line of the harbor lines as established or
changed by the United States Government.
6. (a) Unpatented mining claims; (b) reservations or
exceptions in patents or in Acts authorizing the issuance
thereof; (c) water rights, claims or title to water.
7. Any service, installation, connection, maintenance,
capacity, or construction charges for sewer, water,
electricity or garbage removal.
S. General taxes not now payable or matters relating to
special assessments and special levies, if any, preceding the
same becoming a lien.
9. Indian tribal codes or regulations, Indian treaty or
aboriginal rights, including, but not limited to, easements or
equitable sgrvitudes.
C. SPECIAL EXCEPTIONS: As on Schedule B, attached.
Order No. 549852
A.L.T.A. COMMITMENT
SCHEDULE B
Page 2
SPECIAL EXCEPTIONS:
NOTE FOR INFORMATION PURPOSES ONLY:
EFFECTIVE JANUARY 1, 1997, AND PURSUANT TO AMENDMENT OF WASHINGTON
STATE STATUTES RELATING TO STANDARDIZATION OF RECORDED DOCUMENTS,
THE FOLLOWING FORMAT AND CONTENT REQUIREMENTS MUST BE MET. FAILURE
TO COMPLY MAY RESULT IN REJECTION OF THE DOCUMENT BY THE RECORDER.
FORMAT:
MARGINS TO BE 3" ON TOP OF FIRST PAGE, 1" ON SIDES AND BOTTOM - 1"
ON TOP, SIDES AND BOTTOM OF EACH SUCCEEDING PAGE. RETURN ADDRESS IS
ONLY ITEM ALLOWED WITHIN SAID 3" MARGIN. NOTHING WITHIN 1" MARGINS.
FONT SIZE OF 8 POINTS OR LARGER AND PAPER SIZE OF NO MORE THAN
8 1/2" BY 14" .
NO ATTACHMENTS ON PAGES SUCH AS STAPLED OR TAPED NOTARY SEALS;
PRESSURE SEALS MUST BE SMUDGED.
INFORMATION WHICH MUST APPEAR ON THE FIRST PAGE:
RETURN ADDRESS, WHICH MAY APPEAR WITHIN THE UPPER LEFT HAND 3"
MARGIN.
TITLE OR TITLES OF DOCUMENT.
IF ASSIGNMENT OR RECONVEYANCE, REFERENCE TO RECORDING NUMBER OF
SUBJECT DEED OF TRUST.
NAMES OF GRANTOR(S) AND GRANTEE(S) WITH REFERENCE TO ADDITIONAL
NAMES ON FOLLOWING PAGES, IF ANY.
ABBREVIATED LEGAL DESCRIPTION (LOT, BLOCK, PLAT NAME, OR SECTION,
TOWNSHIP, RANGE AND QUARTER QUARTER SECTION FOR UNPLATTED) .
ASSESSOR'S TAX PARCEL NUMBER(S) .
(continued)
Order No. 549852
A.L.T.A. COMMITMENT
SCHEDULE B
Page 3
SPECIAL EXCEPTIONS (continued) :
Res tr c ions limiting the use of that portion of the property herein
descr• ed lying within 100 feet from a water well as imposed by
✓ { inst nt recorded under Recording Number 7703160156.
y COVENANT CONDITIO S, RESTRICTIONS AND EASEMENTS CONTAINED IN LOT
LINE ADJUS ENT, OPY ATTACHED:
RECORDED: October 10, 2002
RECORDING 20021010002536 /LA/ Al ,c- "
Said in rument i a re-recording of instrument recorded under
Recor ng Number 020404002436.
3. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF:
BY: Not disclosed
RECORDED: May 21, 1963
RECORDING NUMBER: 5586238
REGARDING:
Agreement to supply water and maintain system
4. The property herein described is carried on the tax rolls as exempt;
however, it will become taxable from the date of transfer to a
taxable entity.
TAX ACCOUNT NUMBER: 322205-9013-07
NOTE: PLEASE CONTACT THE KING COUNTY ASSESSOR'S OFFICE AT 206-296-
5151 OR ONLINE AT "WWW.METROKC.GOV/ASSESSOR" TO VERIFY THE TAX
AMOUNT DUE, AS EXEMPT TAXES ARE SUBJECT TO CHANGE WITHOUT NOTICE.
5. Unrecorded leaseholds, if any; rights of vendors and holders of
security interests on personal property installed upon said property
and rights of tenants to remove trade fixtures at the expiration of
the term.
6. Until the amount of the policy to be issued is provided to us, and
entered on the commitment as the amount of the policy to be issued,
it is agreed by every person relying on this commitment that we will
not be required to approve any policy amount over $100,000, and our
total liability under this commitment shall not exceed that amount.
(continued)
Order No. 549852
A.L.T.A. COMMITMENT
SCHEDULE B
Page 4
7. Payment of Real Estate Excise Tax, if required.
The property described herein is situated within the boundaries of
local taxing authority of City of Rent.
Present Rate of Real Estate Excise Tax as of the date herein is
1.78%.
NOTE 1: SPECIAL TAXES AND CHARGES:
YEAR: 2003
TAX ACCOUNT NUMBER: 322205-9013-07
AMOUNT BILLED
SPECIAL DISTRICT: $5.00
TOTAL BILLED: $5.00 PAID: $5.00
NOTE 2: The name and address of the current taxpayer according to the
King County Assessors record is:
City of Kent
Customer Services
220 4th Avenue South
Kent, WA 98032
END OF SCHEDULE B
Title to this property was examined by:
David Clasen
Any inquiries should be directed to one of the title officers set forth
in Schedule A.
rag/9705290885