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HomeMy WebLinkAboutPW11-142 - Original - Lannoye - East Hill Operations Center - 04/28/2011 Records Ma `*gern6 KENT Document WASH'NGTON 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 City Clerk's Office. Vendor Name: Floyd and Doris Lannoye Vendor Number: JD Edwards Number Contract Number: (Lt)I f- I � 2, This is assigned by City Clerk's Office Project Name: East Hill Operations Center Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ® Contract ❑ Other: Contract Effective Date: Date of the Mayor's signatureTermination Date: 12/31/11 Contract Renewal Notice (Days): Number of days required notice for termination or renewal or amendment Contract Manager: Ken Langholz Department: Engineering Detail: (i.e. address, location, parcel number, tax id, etc.): Purchase and Sale Agreement for the Lannoye property which will be used as a detention pond site for the East HIII Operation Center. 5•Publlc\RecordsManagement\forms\contractcover\adcc7832 1 11/08 Y REAL ESTATE PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF KENT AND FLOYD D. AND DORIS I. LANNOYE, AS TRUSTEES UNDER THE FLOYD D. LANNOYE AND DORIS I. LANNOYE REVOCABLE LIVING TRUST DATED JULY, 1995 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 FLOYD D. LANNOYE AND DORIS I. LANNOYE, AS TRUSTEES UNDER THE FLOYD D. LANNOYE AND DORIS I. LANNOYE REVOCABLE LIVING TRUST DATED JULY 14, 1995, whose mailing address is 12436 SE 248" Street, Kent, Washington, 98030 ("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 2.2 acres comprised of King County tax parcel numbers 2122059122, 2122059177, and 2122059099, which are legally described in Exhibit A, attached hereto and incorporated herein by this reference ("Property"). 2. EARNEST MONEY. Upon mutual acceptance of this Agreement, Buyer shall deposit with Pacific Northwest Title Company, 116 Washington Avenue North, Kent, Washington 98032,("Closing Agent"), Fifteen Thousand and No/100 Dollars ($15,000) in the form of a City of Kent Purchase Order as refundable earnest money. 3. PURCHASE PRICE. The purchase price is SEVEN HUNDRED AND TWO THOUSAND AND NO/100 DOLLARS ($702,000). The purchase price shall be payable at Closing. The purchase price shall be payable as follows: (a) THREE HUNDRED FIFTY-ONE THOUSAND and NO/100 DOLLARS ($351,000.00) in cash at Closing; (b) THREE HUNDRED FIFTY-ONE THOUSAND and NO/100 DOLLARS ($351,000.00) secured by a promissory note and deed of trust, the form of which are attached and incorporated as Exhibits B and C. 4. CONTINGENCIES. This Agreement is contingent upon the following: Buyer's Initlals Z Seller's Initia Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 1 of36 (between City of Kent and Lannoye Trust) • r (a) Buyer's review and approval of the title report according to Section 5(b). (b) Buyer's review and approval of Seller's information contained in the Real Property Transfer Disclosure Statement ("Disclosure Statement") the form of which is set forth in Exhibit D. Seller shall complete one form for each dwelling unit or specify which dwelling unit is being referenced in the form. The "Disclosure Statement" shall be completed by the Seller within ten (10) days from the date of mutual acceptance of the Agreement. (c) A Feasibility Study as follows: (i) Buyer shall have sixty (60) 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. (ii) 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, and marketing feasibility. Should a Phase II be necessary, Buyer shall give Seller a copy of the Phase I report and scope of work for Phase II. (iii) 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 AGREEMENT, SELLER HEREBY AUTHORIZES BUYER A RIGHT OF ENTRY ON TO THE PROPERTY FOR THE PURPOSE OF CONDUCTING THIS FEASIBILITY STUDY INCLUDING A PHASE I, AND Buyer's Inrtlals� Seller's Initlals ^0 r• Seller's Initials�c REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 2 of 36 (between City of Kent and Lannoye Trust) 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. Should any of the contingencies in 4(a) and 4(b) above 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, except that the refundable earnest money held by Pacific Northwest Title shall be immediately returned to Buyer. If Buyer fails to notify Seller in writing of the removal of the contingencies in 4(c), above then this Agreement shall be terminated, 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(c), Buyer agrees to return the Property to its original state (i.e., fill all boring holes, etc.), and the refundable earnest money shall be returned. S. TITLE (a) Conveyance. At the Closing, Seller shall convey to Buyer fee simple title to the Parcel by duly executed and acknowledged statutory warranty deed (the "Deed"), free and clear of all defects and encumbrances and subject only to those exceptions that Buyer approves pursuant to this Agreement (the "Permitted Exceptions"). (b) Preliminary commitment. (i) Buyer shall order a preliminary commitment for owner's standard coverage policy of title insurance in the amount of the purchase price in Section 3 to be issued by Pacific Northwest Title Company, whose address and telephone number is 116 Washington Avenue North, 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 disapproved by Buyer ("Disapproved Exceptions") within thirty (30) days of receipt of the Preliminary Commitment (and legible copies of all exceptions to title shown in the Buyer's Initial Seller's Initials;7 Seller's Initials �k`N—ZJ ae REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 3 of 36 (between City of Kent and Lannoye Trust) Preliminary Commitment) or thirty (30) days of mutual acceptance, whichever is longer. Seller will have fifteen (15) days after receipt of Buyer's notice to give Buyer notice that (i) Seller will remove Disapproved Exceptions or (u) 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. (0) If Seller elects not to remove any nonmonetary Disapproved Exceptions, Buyer will have until the expiration of the feasibility study period to notify Seller of Buyer's election 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. (iii) If exceptions are added to the title after receipt of the Preliminary Commitment and prior to Closing (Supplemental Preliminary Commitment), Buyer shall advise Seller by written notice what new exceptions to title are Disapproved Exceptions. Buyer shall give such notice within fifteen (15) days of receipt of the Supplemental Preliminary Commitment (and legible copies of all exceptions to title shown in the Supplemental Preliminary Commitment). Seller's response and any response from Buyer will be under the same terms as section (i) and (h) above. (c) Title policy. Seller shall cause the Title Company to issue to Buyer at Closing standard coverage owner's policy of title insurance insuring Buyer's title to the Property in the full amount of the Purchase Price in Section 3 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 Buyer's lnitials_.O�__ Seller's lnitlals�� Seller's Tnitials�� REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 4 of 36 (between City of Kent and Lannoye Trust) 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: The sale shall be closed no later than thirty (30) days after removal of contingencies in Section 4, unless the 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 Closing Agent, 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 the Property shall be destroyed or materially damaged by fire or other casualty, Buyer shall have the option of terminating the Agreement. 9. POSSESSION AND LEASE. Buyer shall be entitled to possession at Closing. 10. SEPTIC SYSTEM. Seller represents that the Property is served by private on-site sewage system(s) ("OSS). (a) Seller represents that, to the best of Seller's knowledge, the OSS serving the property does not require repair other than pumping and normal maintenance; does not currently violate any applicable local, state, and federal laws, standards, and regulations; and has no material defects. (b) Seller will retain a licensed on-site system maintainer ("OSM") to prepare a monitoring and performance inspection report of the OSS ("Operation and Maintenance Report") and to complete the other requirements of King County Health Code Section 13.60.030. Said inspection shall take place prior to the OSS being pumped under Section 10(e) below. Within fourteen (14) days of mutual acceptance Seller shall deliver to Buyer the Operation and Maintenance Report and a copy of the maintenance records for the OSS, if maintenance records are available. (c) Seller shall deliver to Buyer, within fourteen (14) days of mutual acceptance a copy of the previously recorded notice on title required by King County Health Code Section 13.56.054.A. Within three (3) days of receipt, Buyer Buyer's Initfals_�� Seller's Initials Seller's Initials 1&t(N REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 5 of36 (between City of Kent and Lannoye Trust) shall provide Seller with a signed acknowledgment of receipt of the copy of the recoded notice. (d) At Closing, Buyer shall pay and authorizes the Closing Agent to send to the King County health officer the necessary fee and a signed copy of the notice on title as set forth in King County Health Code Section 13.56.054.A. (e) Seller shall have the OSS inspected and, if necessary, pumped by an OSS service company at Seller's expense. Buyer shall have the right to observe the inspection. Seller shall provide Buyer with three (3) days notice of the date and time of the inspection. Within fourteen (14) days of mutual acceptance, Seller shall provide Buyer with a copy of the inspection report. 11. SELLER'S REPRESENTATIONS. Seller represents as follows: (a) he/she will maintain the property in present or better condition until time of agreed possession, reasonable wear and tear excepted; (b) he/she has no actual knowledge or notice from any governmental agency of any violation of laws relating to the Property except: % (c) prior to the Closing date in Section 7, Seller shall either provide Buyer with proof, to Buyer's satisfaction, that any fuel storage tank has previously been decommissioned; or Seller shall decommission the fuel storage tank in accord with all applicable regulations. (d) 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. Buyer's Initials _ Seller's Initlal'tAT- L seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 6 of 36 (between City of Kent and Lannoye Trust) 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), arising out of or in connection with a breach of the representations made in Sections 11 and 12 of this Agreement. This indemnity shall survive the Closing. 14. 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(f), Seller's sole monetary remedy shall be limited to damages in the liquidated amount of the earnest money previously paid into escrow. 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. / Buyer's Initials yv Seller's Initiso-A— Seller's Initials4&L7Y (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. 15. COMMISSIONS. Seller and Buyer both represent that they have not engaged the services of a real estate agent or broker in this transaction and are not liable for a commission to the same. 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, personal service, or by facsimile transmission addressed as set forth below: Buyer's Initials Seller's Inida� Seller's Initials odN2& REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 7 of 36 (between City of Kent and Lannoye Trust) (a) All notices to be given to Buyer shall be addressed as follows: Jeff Watling, Director Parks, Recreation & Community Services Department City of Kent 220 Fourth Avenue South Kent, Washington 98032 Fax Number: (253) 856-6050 (b) All notices to be given to Seller shall be addressed as follows: Floyd D. Lannoye and Doris I. Lannoye 12436 SE 248t' Street Kent, Washington 98030 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. EXPIRATION OF OFFER. Seller shall have until 5:00 p.m. on , 2011 to accept the Purchase and Sale Agreement as written, by delivering a signed copy to the Buyer. If Seller does not so delivers signed copy, this Agreement shall lapse and all rights of the parties hereunder shall terminate. Buyer's Initials Seller's Inttlals;� x Seller's Inibals�i c&f REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 8 of 36 (between City of Kent and Lannoye Trust) IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below. BUYER: SELLER(S): CITY OF CENTJ FLOYD D. LANNOYE and DORIS I. By: 4e, LANNOYE, as Trustees under the Floyd Print ame Su et a Cooke Mayor D. Lannoye and Doris I. Lannoye Its: Revocable Living Trust dated July 14, Dated: 1995 By�- A ' Print Name: FlgvdA=anno e Dated: 7 Print Name: Doris Lanno e Dated: - 2 — !( P\Civil\Flles\OpenFiles\1523-Lannoye Purchase&Sale\RealEstatePurchaseAndSaleAgreementA= Buyer's Initials, Seller's Initials Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 9 of 36 (between City of Kent and Lannoye Trust) Exhibit A Legal Description: PARCEL A: The west 173.2 feet of the south 264 feet of the east half of the west half of the southwest quarter of the northeast quarter of5cction 21,Township 22 North,Range 5 East,W.itd.,King County,Washington: EXCEPT the east 79 01 feet tbercof, AND EXCEPT that portion lying south of the north margin of Southeast 248th Street,as established by deed recorded under Recording Na 52,15351 PARCEL B The east 79 01 feet of the vest 173 2 feet of the south 264 feet of fhe east half of the west belief the southwest quarter of the northeast quarter of Section 21,Township 22 North,Range 5 East W,M,,King County,Wwhingttm; EXCEPT that portion lying south of the north margin of Southeast 248th Street,as established by deed recorded under Recording No.5945351 PARCEL C: The south 264 feet of the east half of the west half of the southwest quarter of the northeast queer of Section 21, Township 22 North,Range 5 East,W lv1,King County,W.shini t-on, EXCEPT the west 173 2 feot thereof, AND EXCEPT that portion lying south of the north margin of Southeast 248th Street,as cstablisbcd by deed recorded under Recordtng No.5845331, ALSO the east 15 feet of the south 909 feet ofthe west half of the southwest quarter of the northeast quarter ofsald Section 21; EXCEPT the south 264 feet tbereo� ALSO the east 30 feet of the west half of the southwest quarter of the northeast quarterefsald Section 21; EXCEPT the south 909 feet thereof. Tax Account Number- 212205-9099.07,212205.912248 and 212205-R177-02 Buyer's Inttlals s " Seller's Initi TsY� Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 10 of 36 (between City of Kent and Lannoye Trust) Exhibit B PROMISSORY NOTE $351,000.00 (U.S.) , 2011 Kent, Washington FOR VALUE RECEIVED, the undersigned, CITY OF KENT., a Washington municipal corporation, at 220 Fourth Avenue South, Kent, WA, 98032, ("Borrower") promises to pay to the order of FLOYD D. LANNOYE AND DORIS I. LANNOYE, AS TRUSTEES UNDER THE FLOYD D. LANNOYE AND DORIS I. LANNOYE REVOCABLE LIVING TRUST DATED JULY 14, 1995, whose mailing address is 12436 SE 248th Street, Kent, Washington, 98030, ("Lender"), or such other place as Lender may from time to time designate in writing, the sum of Three Hundred Fifty-One Thousand And No/100 Dollars ($351,000), in lawful money of the United States of America. 1. Interest Rate. 1.1 Note Rate. Interest shall accrue on the unpaid principal balance at a rate of five percent (5%) per annum, and as provided in 1.2 below. 1.2 Default Rate. Should Borrower default in the payment of any installment when due hereunder or if Borrower 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"). After the entire principal amount of the loan evidenced hereby shall become due and payable, whether by acceleration, at maturity, or otherwise, this Note shall bear interest at the Default Rate. 1.3 Computation of Interest. Interest 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) occurring. 2. Security. This Note is secured by a Deed of Trust, (the "Deed of Trust ) of even date made by Borrower in favor of Lender. Borrower agrees to perform and comply with all of the agreements, terms, and conditions of the Deed of Trust. Y _ q Buyer's Inrtial� Seller's Initral5a.- _ Seller's Inrtrals 4�f`-'1'�I�l. REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 11 of 36 (between City of Kent and Lannoye Trust) 3. Repayment. This Note shall be due and payable on or before (12 months after closing). 4. Prepayment. Borrower may prepay Borrower's obligations under this Note in full or in part at any time or from time to time without premium or penalty. S. Application of Payments. Payments received by Lender from Borrower shall be applied first to interest and then to principal, except that prepayments made under paragraph 3 of this Note shall be applied as designated by Borrower. 6. Acceleration. Upon Borrower's failure to pay any amount payable hereunder as and when due or upon the occurrence of any other default under this Note or the Deed of Trust of even date, Lender may declare, at its sole option and upon fifteen (15) days written notice to Borrower, the entire indebtedness evidenced hereby immediately due and payable in full. Failure to exercise this option or any other right Lender 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. Borrower 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 Lender in collecting any amounts owing hereunder, including reasonable attorneys' fees. Any judgment recovered by Lender shall bear interest at the Default Rate. S. Non-Recourse. Subject to the qualifications set forth below, Lender agrees that (i) Borrower shall be liable upon the indebtedness evidenced hereby to the full extent (but only to the extent) of the security therefore, (the "Security Property"), (ii) if default occurs in the timely and proper payment of all or any part of such indebtedness evidenced hereby, any ]udicial or other proceedings brought by Lender against Borrower shall be limited to the preservation, enforcement and foreclosure of the liens, estates, assignments, rights and security interests now or at any time hereafter securing the payment of this Note, and no attachment, execution or other writ of process shall be sought, issued or levied upon any assets, properties or funds of Borrower other than the Security Property except with respect to the liability described below in this section, and (iii) in the event of a foreclosure of such liens, estates, assignments, rights or security interests securing the payment of this Note, no judgment for any deficiency upon the indebtedness evidenced hereby shall be sought or obtained by Lender against Borrower, except with respect to the liability described below in this section; provided, however, that, Buyer's Initials Seller's Iniva7s u l seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 12 of 36 (between Czty of Kent and Lannoye Trust) notwithstanding the foregoing provisions of this section, Borrower shall be fully and personally liable and subject to legal action: (a) for proceeds paid under any insurance policies (or paid as a result of any other claim or cause of action against any person or entity) by reason of damage, loss or destruction to all or any portion of the Security Property, to the full extent of such proceeds not previously delivered to Lender, but which, under the terms of the Deed of Trust, should have been delivered to Lender; (b) for proceeds or awards resulting from the condemnation or other taking in lieu of condemnation of all or any portion of the Security Property, or any of them, to the full extent of such proceeds or awards not previously delivered to Lender, but which, under the terms of the Deed of Trust, should have been delivered to Lender; (c) for rents, issues, profits and revenues of all or any portion of the Security Property received or applicable to a period after the occurrence of any event of default or any event which, with the giving of notice and/or the passage of time, would constitute an event of default hereunder which are not either applied to the ordinary and necessary expenses of owning and operating the Security Property or paid to Lender; In the event that Borrower fails to obtain Lender's prior written consent to any assignment, transfer or conveyance of the Security Property or any interest therein as required by the Deed of Trust: (i) the Loan shall be fully recourse to Borrower; and (ii) Lender shall not be deemed to have waived any right which Lender may have under Sections 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Loan or to require that all collateral shall continue to secure all of the indebtedness owing to Lender in accordance with the Deed of Trust. Nothing contained in this Section shall (1) be deemed to be a release or impairment of the indebtedness evidenced by this Note or the Deed of Trust or (2) preclude Lender from foreclosing the Deed of Trust in case of any default or from enforcing any of the other rights of Lender except as stated in this Section. 9. 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 Buyer's Initiale-ac Seller's Initialt-�- A _ Seller's Initials—J---Idol-i REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 13 of 36 (between City of Kent and Lannoye Trust) REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. EXECUTED as the day and year first above written. CITY OF KENT By Name: Suzette Cooke Title: Mayor STATE OF WASHINGTON ) ss. COUNTY OF IQNG ) I hereby certify that I know or have satisfactory evidence that Suzette Cooke is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument on behalf of the City of Kent as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing 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 Buyer's Initials Seller's Initia r Seller's Initials �) � REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 14 of 36 (between City of Kent and Lannoye Trust) FLOYD D. LANNOYE AND DORIS I. LANNOYE, AS TRUSTEES UNDER THE FLOYD D. LANNOYE AND DORIS I. LANNOYE REVOCABLE LIVING TRUST DATED JULY 14, 1995 Name: Flo ryd D Lannoye ` Title: Trustee Name: Doris I. Lannoye Title: Trustee STATE OF WASHINGTON ) ) ss. COUNTY OF KING T ) On this -) day of \I we, , 2011, before me a Notary Public in and for the State of Washington, personally appeared Floyd D. Lannoye, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be his 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. C"CqLA,1 le LL11 NiEca G� �A gyp` �a6 ✓lh y+.i/Gt /�l �G `- ' - i• �� d NOTARY PUB IC, in and fdr the State of Washington, residing at. ) G g!' taL')AA zn'•.✓/'U�l`�' .�:•o� My appointment expires f 1 lei w Buyer's Initials-5—�� Seller's Seller's Inittals�ct REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 15 of 36 (between City of Kent and Lannoye Trust) STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this �0 day of 2011, before me a Notary Public in and for the State of Washington, personally appeared Doris I. Lannoye, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be her free and voluntary act and deed for the uses and purposes mentioned in this instrument. -Notary Seal MustAppear 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'', tate of Washington, residing at �l'f7f1 Ei( P� �PUe03�N;LOz ®j My appointment expires , Y9G, m + '+a'S ° ••.>,,. tip+" Buyer's Initials Seller's Iniors7eb� Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 16 of 36 (between City of Kent and Lannoye Trust) Exhibit C After Recording Return To: Floyd D. Lannoye and Doris I. Lannoye 12436 SE 248th Street Kent, WA 98030 Grantor(s) (Borrower): City of Kent Grantee(s) (Beneficiary): Floyd D. Lannoye and Doris I. Lannoye, as Trustees under the Floyd D. Lannoye and Doris I. Lannoye Revocable Living Trust dated July 14, 1995 Grantee(s) (Trustee): Pacific Northwest Title Reference Number(s) of Documents assigned or released: N/A Legal Description (abbreviated): SW 1/4 of NE 1/2, §21, T 22 N, R 5 E, W.M., King County Additional legal(s) on Exhibit A of document Assessor's Property Tax Parcel/Account Numbers: 2122059122, 2122059177 and 2122059099 DEED OF TRUST THIS DEED OF TRUST, made this day of , 20111 between The City of Kent, GRANTOR, whose address is 220 Fourth Avenue South, Kent, Washington 98032, Pacific Northwest Title Company, a corporation, TRUSTEE, and Floyd D. Lannoye and Doris I. Lannoye, as Trustees under the Floyd D. Lannoye and Doris I. Lannoye Revocable Living Trust dated July 14, 1995, in equal undivided shares, BENEFICIARIES, whose address is 12436 SE 248th Street, Kent, Washington, 98030. Buyer's Initials Seller's Ini ba7s=ZQ Seller's Initials od&cK REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 17 of 36 (between City of Kent and Lannoye Trust) WITNESSETH: Grantor hereby bargains, sells and conveys to Trustee in Trust, with power of sale, the following described real property in King County, Washington: See Exhibit "A" attached and incorporated herein which real property is not used principally for agricultural or farming purposes, together with all tenements, hereditaments, and appurtenances now or hereafter thereunto belonging or in any wise appertaining, and the rents, issues and profits thereof. This deed is for the purpose of securing performance of each agreement of Grantor herein contained, and payment of the sum of Three Hundred Fifty One Thousand and No/100 Dollars ($351,000.00), in lawful money of the United States of America with interest, in accordance with the terms of a promissory note of even date herewith, payable to Beneficiary or order, and made by Grantor, and all renewals, modifications and extensions thereof, and also such further sums as may be advance or loaned by Beneficiary to Grantor or any of his/her/their successors or assigns, together with interest thereon at such rate as shall be agreed upon. To protect the security of this Deed of Trust, Grantor covenants and agrees: 1. To keep the property in good condition and repair; to permit no waste thereof; to complete any building, structure or improvement being built or about to be built thereon; to restore promptly any building, structure or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property. 2. To pay before delinquent, all lawful taxes and assessments upon the property; to keep the property free and clear of all other charges, liens or encumbrances impairing the security of this Deed of Trust. 3. To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire or other hazards in an amount not less than the total debt secured by this Deed of Trust. All policies shall be held by the Beneficiary, and be in such companies as the Beneficiary may approve and have loss payable first to the Beneficiary as its interest may appear and then to the Grantor. The amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such order as the Beneficiary shall determine. Such application by the Beneficiary shall not cause discontinuance of any proceedings to Buyer's Inibals_�2_41— Seller's Initials-L Seller's Initials, REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page IS of36 (between City of Kent and Lannoye Trust) foreclose this Deed of Trust. In the event of foreclosure, all rights of the Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale. 4. To defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such action or proceeding, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 5. To pay all costs, fees and expenses in connection with this Deed of Trust, including the expenses of the Trustee incurred in enforcing the obligation secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute. 6. Should Grantor fail to pay when due, any taxes, assessments, insurance premiums, liens, encumbrances or other charges against the property hereinabove described, Beneficiary may pay the same, and the amount so paid, with interest at the rate set forth in the note secured hereby, shall be added to and become a part of the debt secured in this Deed of Trust. IT IS MUTUALLY AGREED THAT: 1. In the event any portion of the property is taken or damaged in an eminent domain proceeding, the entire amount of the award or such portion as may be necessary to fully satisfy the obligation secured hereby, shall be paid to Beneficiary to be applied to said obligation. 2. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to declare default for failure to so pay. 3. The Trustee shall reconvey all or any part of the property covered by this Deed of Trust to the person entitled thereto, on written request of the Grantor and the Beneficiary, or upon satisfaction of the obligation secured and written request for reconveyance made by the Beneficiary or the person entitled thereto. 4. Upon default by Grantor in the payment of any indebtedness secured hereby or in the performance of any agreement contained herein, all sums secured hereby shall immediately become due and payable at the option of the Beneficiary. In such event and upon written request of Beneficiary, Trustee or its authorized Buyer's Initials Seller's initial�°©a2�) seller's initials. REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 19 of 36 (between City of Kent and Lannoye Trust) agent shall sell the trust property, in accordance with applicable law, at public auction to the highest bidder. Any person except Trustee may bid at Trustee's sale. Trustee shall apply the proceeds of the sale as follows: (i) to the expense of sale, including a reasonable trustee's fee and attorney's fee; (ii) to the obligations secured by this Deed of Trust; (iii) the surplus, if any, shall be deposited with the clerk of the superior court of the county in which the sale took place to be distributed in accordance with law. 5. Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the interest in the property which Grantor had or had the power to convey at the time of his/her/their execution of this Deed of Trust, and such as he/she/they may have acquired thereafter. Trustee's deed shall recite the facts showing that the sale is conducted in compliance with all requirements of law and of this Deed of Trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrances for value. 6. The power of sale conferred by this Deed of Trust is not an exclusive remedy; Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage. 7. In the event of the death, incapacity or disability or resignation of Trustee, Beneficiary may appoint in writing a successor trustee, and upon the recording of such appointment in the mortgage records of the county in which this Deed of Trust is recorded, the successor trustee shall be vested with all powers of the original trustee. The trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Grantor, Trustee or Beneficiary shall be a party unless such action or proceeding is brought by the Trustee. 8. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the parties hereto, but on his/her/their heirs, devisees, legatees, administrators, executors, successors and assigns. The term Beneficiary shall mean the holder and owner of the note secured hereby, whether or not named as Beneficiary herein. 9. If the Property or any part thereof is sold, conveyed, leased, transferred, encumbered, or full possessory rights therein transferred without the prior written consent of Beneficiary, then Beneficiary may declare the entire remaining principal balance under this Deed of Trust immediately due and payable. This provision shall apply to each and every sale, transfer, conveyance or Buyer's Inittals—s(z Seller's Seller's Initials_A- REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 20 of 36 (between City of Kent and Lannoye Trust) 10. Grantor shall pay when due all costs, fees and expenses incident to the property which are associated with a homeowner's or condominium owner's association, common area improvement and maintenance, and such similar expenses. Grantor further agrees to comply with all rules, regulations, covenants and restrictions of any homeowner's or condominium owner's association. GRANTOR CITY OF KENT - C fe:�;e:e Z By: z t ooke It o e: STATE OF WASHINGTON ) ss. COUNTY OF KING ) On this Z9 day of , 2011, I hereby certify that I know or have satisfactory evidence that SUZETTE COOKE is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument on behalf of the City of Kent as its Mayor and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. -Notary seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and Xg first above written. P. BR/ ��ry TA Ite e r sod ? Ry NOTARY PUBLIC in and for the State `�-A�'o, �B`�2 ; �o- of Washington, residing at /4ltFu,8;,1`�� r My appointment expires 7.IJO—IL �;WASN � REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 21 of 36 (between City ofKent and Floyd&Doris Lannoye) REQUEST FOR FULL RECONVEYANCE Do not record. To be used only when note has been paid. TO TRUSTEE The undersigned is the legal owner and holder of the note and all other indebtedness secured by the within Deed of Trust. Said note, together with all other indebtedness secured by said Deed of Trust, has been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you thereunder. Dated: By: By: iillFti tF.r,^. ,, Buyer's Irntiam5 Seller's Ini�� Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 22 of 36 (between City of Kent and Floyd&Doris Lannoye) Exhibit A Legal Description: PARCEL A: The west 173.2 feet of the south 264 feet of the east half of the west half of the southwest quarter of the northeast quarter of Section 21,Townshtp 22 North,Range 5 East,W M.,King County,Washington; EXCEPT the east 79.01 feet thereof; AND EXCEPT that portion lying south of the north margin of Southeast 248th Street,as established by deed recorded under Recording No.5845351. PARCEL B. The east 79.01 feet of the west 173.2 feet of the south 264 feet of the east half of the west half of the southwest quarter of the northeast quarter of Section 21,Township 22 North,Range 5 East,W.M,King County,Washington; EXCEPT that portion lying south of the north margin of Southeast 248th Street,as established by deed recorded under Recording No 5845351. PARCEL C: The south 264 feet of the east half of the west half of the southwest quarter of the northeast quarter of Section 21, Township 22 North,Range 5 East,W M,King County,Washington, EXCEPT the west 173.2 feet thereof, AND EXCEPT that portion lying south of the north margin of Southeast 248th Street,as established by deed recorded under Recording No.5845351. ALSO the east 15 feet of the south 909 feet of the west half of the southwest quarter of the northeast quarter of said Section 21; EXCEPT the south 264 feet thereof, ALSO the east 30 feet of the west halfof the southwest quarter of the northeast quarter of said Section 21; EXCEPT the south 909 feet thereof Buyer's Inrhad!�—� Seller's Inrtmll� Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 23 of 36 (between City of Kent and Floyd&Doris Lannoye) Exhibit D SELLER'S DISCLOSURE STATEMENT INSTRUCTIONS TO THE SELLER Please complete the following form. Do not leave any spaces blank. If the question clearly does not apply to the property write "NA." If the answer is "yes" to any * items, please explain on attached sheets. Please refer to the line number(s) of the question(s) when you provide your explanation(s). For your protection you must date and sign each page of this disclosure statement and each attachment. Delivery of the disclosure statement must occur not later than five business days, unless otherwise agreed, after mutual acceptance of a written contract to purchase between a buyer and a seller. NOTICE TO THE BUYER THE FOLLOWING DISCLOSURES ARE MADE BY SELLER ABOUT THE CONDITION OF THE PROPERTY LOCATED ATI Z`63b SE Z011-" S'` , KENT, WASHINGTON, ("THE PROPERTY"), OR AS LEGALLY DESCRIBED ON ATTACHED EXHIBIT A. SELLER MAKES THE FOLLOWING DISCLOSURES OF EXISTING MATERIAL FACTS OR MATERIAL DEFECTS TO BUYER BASED ON SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME SELLER COMPLETES THIS DISCLOSURE STATEMENT. UNLESS YOU AND SELLER OTHERWISE AGREE IN WRITING, YOU HAVE THREE BUSINESS DAYS FROM THE DAY SELLER OR SELLER'S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO YOU TO RESCIND THE AGREEMENT BY DELIVERING A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO SELLER OR SELLER'S AGENT. IF THE SELLER DOES NOT GIVE YOU A COMPLETED DISCLOSURE STATEMENT, THEN YOU MAY WAIVE THE RIGHT TO RESCIND PRIOR TO OR AFTER THE TIME YOU ENTER INTO A SALE AGREEMENT. THE FOLLOWING ARE DISCLOSURES MADE BY SELLER AND ARE NOT THE REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS INFORMATION IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY WRITTEN AGREEMENT BETWEEN BUYER AND SELLER. FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF QUALIFIED EXPERTS TO INSPECT THE PROPERTY, WHICH MAY INCLUDE, WITHOUT LIMITATION, ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, ON-SITE WASTEWATER TREATMENT INSPECTORS, OR STRUCTURAL PEST INSPECTORS. THE PROSPECTIVE BUYER AND SELLER MAY WISH TO Buyer's Init1alS9�� Seller's Initiate Seller's Initials_4X.LK REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 24 of 36 (between City of Kent and Floyd&Doris Lannoye) OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY OR TO PROVIDE APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE, INSPECTION, DEFECTS OR WARRANTIES. Seller V/is/ is not occupying the property. I. SELLER'S DISCLOSURES: *If you answer "Yes" to a question with an asterisk (*), please explain your answer and attach documents, if available and not otherwise publicly recorded. If necessary, use an attached sheet. 1. TITLE KYes [ ] No [ ] Don't know A. Do you have legal authority to sell the property? If no, please explain. [ ] Yes [)(No [ ] Don't know *B. Is title to the property subject to any of the following? (1) First right of refusal (2) Option (3) Lease or rental agreement (4) Life estate? [ ] Yes [ No [ ] Don't know *C. Are there any encroachments, boundary agreements, or boundary disputes? [ ] Yes [ No [ ] Don't know *D. Is there a private road or easement agreement for access to the property? [ ] Yes [qNo [ ] Don't know *E. Are there any rights-of-way, easements, or access limitations that may affect the Buyer's use of the property? [ ] Yes [X.No [ ] Don't know *F. Are there any written agreements for joint maintenance of an easement or right-of-way? [ ] Yes W_No [ ] Don't know *G. Is there any study, survey project, or notice that would adversely affect the property? [ ] Yes N No [ ] Don't know *H. Are there any pending or existing Buyer's Inlhalso Seller's Inrbafs�' Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 25 of 36 (between City of Kent and Floyd&Doris Lannoye) assessments against the property? [ ] Yes %No [ ] Don't know *I. Are there any zoning violations, nonconforming uses, or any unusual restrictions on the property that would affect future construction or remodeling? [ ] Yes [ ] No Don't know *J. Is there a boundary survey for the property? [ ] Yes RA [ ] Don't know *K. Are there any covenants, conditions, or restrictions recorded against the property? 2. WATER A. Household Water (1) The source of water for the property is: [ ] Private or publicly owned water system Private well serving only the subject Property` eAT X- G 111JE WAT'£2 7-c) *[ ] Other water system [ ] Yes C)4-,No [ ] Don't know * If shared, are there any written agreements? [ ] Yes ¢c] No [ ] Don't know *(2) Is there an easement (recorded or unrecorded) for access to and/or maintenance of the water source? ( ] Yes [ No [ ] Don't know *(3) Are there any problems or repairs needed? [ Yes ( ] No [ ] Don't know (4) During your ownership, has the source provided an adequate year-round supply of potable water? If no, please explain. K.Yes [ ] No [ ] Don't know *(5) Are there any water treatment systems for the property? If yes, are they [ ] Leased [ ] Owned. [ ] Yes No [ ] Don't know *(6) Are there any water rights for the property associated with its domestic water supply, such as a water right permit, certificate, Buyer's Initlals � Seller's Init42 Seller's Initials -fie REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 26 of 36 (between City of Kent and Floyd&Doris Lannoye) or claim? [ ] Yes [ ] No [ ] Don't know (a) If yes, has the water right, permit, certificate, or claim been assigned, transferred, or changed? [ ] Yes F74,-No [ ] Don't know (b) If yes, has all or any portion of the water right not been used for five or more successive years? (If yes, please explain)- *(7) Are there any defects in the operation of the water system (e.g. pipes, tank, pump, etc.)? (If yes, please explain) rV C2 B. Irrigation Water [ ] Yes [ ] No Don't know (1) Are there any irrigation water rights for the property, such as a water permit, certificate, or claim? [ ] Yes Vq No [ ] Don't know *(a) If yes, has all or any portion of the water right not been used for five or more successive years? [ ] Yes o [ ] Don't know *(b) If so, is the certificate available? (If yes, please attach a copy.) [ } Yes ["No [ ] Don't know *(c) If so, has the water right permit, certificate, or claim been assigned, transferred, or changed? If so, explain: [ ] Yes WNo [ ] Don't know *(2) Does the property receive irrigation water from a ditch company, irrigation district, or other entity? If so, please identify the entity that supplies irrigation water to the property: C. Outdoor Sprinkler System [ ] Yes 01�No [ ] Don't know (1) Is there an outdoor sprinkler system for the property? Buyer's Inibals,� Seller's Inibeim Seller's Inibals_moc4-4 REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 27 of 36 (between City of Kent and Floyd&Doris Lannoye) [ ] Yes [ ] No [ ] Don't know *(2) If yes, are there any defects in the system? [ ] Yes [ ] No [ ] Don't know *(3) If yes, is the sprinkler system connected to irrigation water? 3. SEWER/SEPTIC SYSTEM A. The property is served by: [ ] Public sewer system JXOn-site sewage system (including pipes, tanks, drainfields, and all other component parts) [ ] Other disposal system, please describe: [ ] Yes [ ] No [ ] Don't know B. If public sewer system service is available to the property, is the house connected to the sewer main? If no, please explain. N dT A-V 61 t- -F-91-C [ ] Yes K No [ ] Don't know *C. Is the property subject to any sewage system fees or charges in addition to those covered in your regularly billed sewer or on-site sewage system maintenance service? D. If the property is connected to an on- site sewage system: [] Yes [] No KDon't know *(1) Was a permit issued for its construction, and was it approved by the local health department or district following its construction? (2) When was it last pumped: [ ] Yes ] No [ ] Don't know *(3) Are there any defects in the operation of the on-site sewage system? Don't know (4) When was it last inspected? By whom: Buyer's Initials Seller's Initi Seller's Initials Z c� REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 28 of 36 (between City of Kent and Floyd&Doris Lannoye) Don't know (5) For how many bedrooms was the on-site sewage system approved? '-1 Bedrooms [ ..Yes [ ] No [ ] Don't know E. Are all plumbing fixtures, including laundry drain, connected to the sewer/on-site sewage system? If no, please explain: KYes [ ] No [ ] Don't know *F. Have there been any changes or repairs to the on-site sewage system? A DV £O J-£.#J 4 f N v✓ri E d Po Q.4- W PI-c i rv,s i y9 41-£.P. [ ] Yes [ ] No [ .Don't know G. Is the on-site sewage system, including the drainfield, located entirely within the boundaries of the property? If no, please explain. [ ] Yes f�.No [ ] Don't know *H. Does the on-site sewage system require monitoring and maintenance services more frequently than once a year? If yes, please explain: NOTICE: IF THIS RESIDENTIAL REAL PROPERTY DISCLOSURE STATEMENT IS BEING COMPLETED FOR NEW CONSTRUCTION WHICH HAS NEVER BEEN OCCUPIED, THE SELLER IS NOT REQUIRED TO COMPLETE THE QUESTIONS LISTED IN ITEM 4. STRUCTURAL OR ITEM 5. SYSTEMS AND FIXTURES. 4. STRUCTURAL [ ] Yes No [ ] Don't know *A. Has the roof leaked? [ ] Yes No [ ] Don't know *B. Has the basement flooded or leaked? [ ] Yes KNo [ ] Don't know *C. Have there been any conversions, additions, or remodeling? pC;.0 , 0-00-c_ I> KYes [ ] No [ ] Don't know *(1) If yes, were all budding permits obtained? 0-Yes [ ] No [ ] Don't know *(2) If yes, were all final inspections obtained? Buyer's Infbals� Seller's Inim Seller's IntbalsAjc� REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 29 of 36 (between City of Kent and Floyd&Dow Lannoye) [A,Yes [ ] No ( ] Don't know D. Do you know the age of the house? If yes, year of original construction:_J %�7 [ ] Yes No [ ] Don't know *E. Has there been an settling, slippage, or sliding of the property or its improvements? [ Yes [ ] No [ ] Don't know *F. Are there any defects with the following: (If yes, please check applicable items and explain.) El Foundations ❑ Decks ❑ Exterior Walls ❑ Chimneys ❑ Interior Walls ❑ Fire Alarm ❑ Doors ❑ Windows Patio ❑ Ceilings ❑ Slab Floors Driveways e4d5 ❑ Pools ❑ Hot Tub ❑ Saunas Sidewalks C-9P ❑ Outbuildings ❑ Fire laces Gar a e Floors it e c1f ❑ Walkways Ll Siding TI Other ❑ Wood Stoves [ ] Yes K No [ ] Don't know *G. Was a structural pest or"whole house" inspection done? If yes, when and by whom was the inspection completed? [ ] Yes No [ ] Don't know H. During your ownership, has the property had any wood destroying organism or pest infestation? .]\Yes [ ] No [ ] Don't know I. Is the attic insulated? [l Yes [ ] No [ ] Don't know ]. Is the basement insulated? / S. SYSTEMS AND FIXTURES *A. If any of the following systems or fixtures are included with the transfer, are there any defects? If yes, please explain. [ ] Yes [Xj No [ ] Don't know • Electrical system, including wiring, switches, outlets, and service. [ ] Yes [J},No [ ] Don't know • Plumbing system, including pipes, faucets, fixtures, and toilets. Buyer's Inihals.� Seller's Iniktvfsc� Seller's Irnhals-14 XW REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 30 of 36 (beriveen City of Kent and Floyd&Doris Lannoye) [ ] Yes [No [ ] Don't know • Hot water tank [ ] Yes [ ] No [ ] Don't know 1Vovir • Garbage disposal [ ] Yes No [ ] Don't know • Appliances [ ] Yes [ ] No [ ] Don't know f6 W`+ _ • Sump pump [ ] Yes nNo [ ] Don't know • Heating and cooling systems [ ] Yes pj No [ ] Don't know • Security system KOwned [ ] Leased [ ] Other *B. If any of the following fixtures or property is included with the transfer, are they leased? (If yes, please attach copy of lease.) [ ] Yes t/J,No [ ] Don't know Security system [ ] Yes M No [ ] Don't know Tanks (type): [ ] Yes KNo [ ] Don't know Satellite dish [ ] Yes [ ] No [ ] Don't know Other: *C. Are any of the following kinds of wood burning appliances present at the property? ( ] Yes No [ ] Don't know (1) Woodstove? Yes No [ ] Don't know (2) Fireplace insert? [ ] Yes No [ ] Don't know (3) Pellet stove? �c] Yes [ ] No [ ] Don't know (4) Fireplace? [ ] Yes [ ] No [Don't know If yes, are all of the (1) woodstoves or (2) fireplace inserts certified by the U.S. Environmental Protection Agency as clean burning appliances to improve air quality and public health? Buyer's Initials Seller's Intti C2 Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 31 of 36 (between City of Kent and Floyd&Doris Lannoye) 6. HOMEOWNERS' ASSOCIATION/COMMON INTERESTS [ ] Yes (,No [ ] Don't know A. Is there a Homeowners' Association? Name of the Association and contact information for an officer, director, employee, or other authorized agent, if any, who may provide the association's financial statements, minutes, bylaws, fining policy, and other information that is not publicly available. [ ] Yes [�Q No [ ] Don't know B. Are there regular periodic assessments: \ $ per [ ] Month [ ] Year [ ] Other [ ] Yes J No [ ] Don't know *C. Are there any pending special I assessments? [ ] Yes ( No [ ] Don't know *D. Are there any shared "common areas" or any joint maintenance agreements (facilities such as walls, fences, landscaping, pools, tennis courts, walkways, or other areas co-owned in undivided interest with others)? 7. ENVIRONMENTAL [ ] Yes �"o ( ] Don't know *A. Have there been any flooding, standing water or drainage problems on the property that affect the property or access to the property? Yes [ ] No [ ] Don't know *B. Does any part of the property contain fill dirt, waste or other fill material? [ ] Yes �"o [ ] Don't know *C. Is there any material damage to the property from fire, wind, floods, beach movements, earthquake, expansive soils, or landslides? p�] Yes [ ] No [ ] Don't know D. Are there any shorelines, wetlands, 77 floodplains, or critical areas on the property? Buyer's Inataal55;?— Seller's Ini �_r_)Odc Seller's Initials_-6S9A::1 REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 32 of 36 (between Cary of Kent and Floyd&Doris Lannoye) [ ] Yes [ ] No Don't know *E. Are there any substances, materials, or products on the property that may be environmental concerns, such as asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, or contaminated soil or water? [ ] Yes [ No [ ] Don't know *F. Has the property been used for commercial or industrial purposes? [ ] Yes [\No [ ] Don't know *G. Is there any soil or groundwater // �� contamination? [ ] Yes No [ ] Don't know *H. Are there transmission poles or other utility equipment installed, maintained, or buried on the property that do not provide utility service to the structures on the property? [ ] Yes KNo [ ] Don't know *I. Has the property been used as a legal or illegal dumping site? [ ] Yes `6(] No [ ] Don't know *J. Has the property been used as an illegal drug manufacturing site? [ ] Yes p, No [ ] Don't know *K. Are there any radio towers in the area that may cause interference with cellular telephone reception? S. MANUFACTURED AND MOBILE HOMES If the prope includes a manufactured or mobile home, [ ] Yes [ ] No [ ] D 't know *A. Did you make any alterations to the home? If yes, please describe the alterations: [ ] Yes [ ] No [ ] Don't know *B. Did the previous owner make any erations to the home? [ ] Yes [ ] No [ ] Don't know *C. I erations were made, were permits or variances for ses alterations obtained? Buyer's Inrtials� Seller's InriJu: Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 33 of 36 (between City of Kent and Floyd&Doris Lannoye) 9. FULL DISCLOSURE BY SELLERS A. Other conditions or defects: [ ] Yes ] No [ ] Don't know *Are there any other existing material defects affecting the property that a prospective buyer should know about? B. Verification: The foregoing answers and attached explanations (if any) are complete and correct to the best of my/our knowledge and I/we have received a copy hereof. I/we authorize all of my/our real estate licensees, if any, to deliver a copy of this disclosure statement to other real estate licensees and all prospective buyers of the property. Buyer's lntbals4l—*� Seller's lnt4 ui� Seller's lnibals_o6---L8 REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 34 of 36 (between City of Kent and Floyd&Doris Lannoye) NOTICE TO THE BUYER INFORMATION REGARDING REGISTERED SEX OFFENDERS MAY BE OBTAINED FROM LOCAL LAW ENFORCEMENT AGENCIES. THIS NOTICE IS INTENDED ONLY TO INFORM YOU OF WHERE TO OBTAIN THIS INFORMATION AND IS NOT AN INDICATION OF THE PRESENCE OF REGISTERED SEX OFFENDERS. II. BUYER'S ACKNOWLEDGMENT A. Buyer hereby acknowledges that: Buyer has a duty to pay diligent attention to any material defects that are known to Buyer or can be known to Buyer by utilizing diligent attention and observation. B. The disclosures set forth in this statement and in any amendments to this statement are made only by the Seller and not by any real estate licensee or other party. C. Buyer acknowledges that, pursuant to RCW 64.06.050(2), real estate licensees are not liable for inaccurate information provided by Seller, except to the extent that real estate licensees know of such inaccurate information. D. This information is for disclosure only and is not intended to be a part of the written agreement between the Buyer and Seller. E. Buyer (which term includes all persons signing the "Buyer's acceptance" portion of this disclosure statement below) has received a copy of this Disclosure Statement (including attachments, if any) bearing Seller's signature. DISCLOSURES CONTAINED IN THIS DISCLOSURE STATEMENT ARE PROVIDED BY SELLER BASED ON SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME SELLER COMPLETES THIS DISCLOSURE STATEMENT. UNLESS BUYER AND SELLER OTHERWISE AGREE IN WRITING, BUYER SHALL HAVE THREE BUSINESS DAYS FROM THE DAY SELLER OR SELLER'S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO RESCIND THE AGREEMENT BY DELIVERING A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO SELLER OR SELLER'S AGENT. YOU MAY WAIVE THE RIGHT TO RESCIND PRIOR TO OR AFTER THE TIME YOU ENTER INTO A SALE AGREEMENT. BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS DISCLOSURE STATEMENT AND ACKNOWLEDGES THAT THE DISCLOSURES MADE HEREIN ARE THOSE OF THE SELLER ONLY, AND NOT OF ANY REAL ESTATE LICENSEE OR OTFITER PARTY. DATE: BUYE Buyer's Intttals,� Seller's Ini Seller's Initials 96!!,Z�e. REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 -Page 35 of 36 (between City of Kent and Floyd&Doris Lannoye) BUYER'S WAIVER OF RIGHT TO RECEIVE COMPLETED SELLER DISCLOSURE STATEMENT Buyer has been advised of Buyer's right to receive a completed Seller Disclosure Statement. Buyer waives that right. However, if the answer to any of the questions in the section entitled "Environmental" would be "yes," Buyer may t ive the receipt of the "Environmental" section of the Seller Disclosure Statemen . DATE: if t" BUYE Buyer's Initials Seller's InibaP % e Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2011 —Page 36 of 36 (between City of Kent and Floyd&Doris Lannoye) After Recording Return To: Floyd Lannoye and Doris Lannoye 12436 SE 2481h Street Kent, WA 98030 i Grantor(s) (Borrower): City of Kent Grantee(s) (Beneficiary): Floyd Lannoye and Doris Lannoye, husband and wife Grantee(s) (Trustee): Pacific Northwest Title Reference Number(s) of Documents assigned or released: N/A Legal Description (abbreviated): SW 1/4 of NE 1/2, §21, T 22 N, R 5 E, W.M., King County Additional legal(s) on Exhibit A of document Assessor's Property Tax Parcel/Account Numbers: 2122059122, 2122059177 and 2122059099 DEED OF TRUST THIS DEED OF TRUST, made this day of 2011, between The City of Kent, GRANTOR, whose address is 220 Fourth Avenue South, Kent, Washington 98032, Pacific Northwest Title Company, a corporation, TRUSTEE, and Floyd Lannoye and Doris Lannoye, husband and wife, in equal undivided shares, BENEFICIARIES, whose address is 12436 SE 248th Street, Kent, Washington, 98030. WITNESSETH: Grantor hereby bargains, sells and conveys to Trustee in Trust, with power of sale, the following described real property in King County, Washington: See Exhibit "A" attached and incorporated herein which real property is not used principally for agricultural or farming purposes, together with all tenements, hereditaments, and appurtenances now or hereafter Deed of Trust Page 1 of 7 (City of Kent & Lannoye) thereunto belonging or in any wise appertaining, and the rents, issues and profits thereof. This deed is for the purpose of securing performance of each agreement of Grantor herein contained, and payment of the sum of Three Hundred Fifty One Thousand and No/100 Dollars ($351,000.00), in lawful money of the United States of America with interest, in accordance with the terms of a promissory note of even date herewith, payable to Beneficiary or order, and made by Grantor, and all renewals, modifications and extensions thereof, and also such further sums as may be advance or loaned by Beneficiary to Grantor or any of his/her/their successors or assigns, together with interest thereon at such rate as shall be agreed upon. To protect the security of this Deed of Trust, Grantor covenants and agrees: 1. Except for Grantor's right to remove all structures, to keep the property in good condition and repair, to permit no waste thereof, and to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property. 2. To pay before delinquent, all lawful taxes and assessments upon the property; to keep the property free and clear of all other charges, liens or encumbrances impairing the security of this Deed of Trust. 3. To keep all buildings hereafter erected on the property described herein continuously insured against loss by fire or other hazards in an amount not less than the total debt secured by this Deed of Trust. All policies shall be held by the Beneficiary, and be in such companies as the Beneficiary may approve and have loss payable first to the Beneficiary as its interest may appear and then to the Grantor. The amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such order as the Beneficiary shall determine. Such application by the Beneficiary shall not cause discontinuance of any proceedings to foreclose this Deed of Trust. In the event of foreclosure, all rights of the Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale. 4. To defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such action or proceeding, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 5. To pay all costs, fees and expenses in connection with this Deed of Trust, including the expenses of the Trustee incurred in enforcing the obligation Deed of Trust Page 2 of 7 (City of Kent & Lannoye) secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute. 6. Should Grantor fail to pay when due, any taxes, assessments, insurance premiums, liens, encumbrances or other charges against the property hereinabove described, Beneficiary may pay the same, and the amount so paid, with interest at the rate set forth in the note secured hereby, shall be added to and become a part of the debt secured in this Deed of Trust. IT IS MUTUALLY AGREED THAT: 1. Grantor is authorized to destroy and remove all structures located on the property as of the date of this Deed of Trust. 2. In the event any portion of the property is taken or damaged in an eminent domain proceeding, the entire amount of the award or such portion as may be necessary to fully satisfy the obligation secured hereby, shall be paid to Beneficiary to be applied to said obligation. 3. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to declare default for failure to so pay. 4. The Trustee shall reconvey all or any part of the property covered by this Deed of Trust to the person entitled thereto, on written request of the Grantor and the Beneficiary, or upon satisfaction of the obligation secured and written request for reconveyance made by the Beneficiary or the person entitled thereto. 5. Upon default by Grantor in the payment of any indebtedness secured hereby or in the performance of any agreement contained herein, all sums secured hereby shall immediately become due and payable at the option of the Beneficiary. In such event and upon written request of Beneficiary, Trustee or its authorized agent shall sell the trust property, in accordance with applicable law, at public auction to the highest bidder. Any person except Trustee may bid at Trustee's sale. Trustee shall apply the proceeds of the sale as follows: (i) to the expense of sale, including a reasonable trustee's fee and attorney's fee; (h) to the obligations secured by this Deed of Trust; (iii) the surplus, if any, shall be deposited with the clerk of the superior court of the county in which the sale took place to be distributed in accordance with law. 6. Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the interest in the property which Grantor had or had the power to convey at the time of his/her/their execution of this Deed of Trust, and such as he/she/they may have acquired thereafter. Deed of Trust Page 3 of 7 (City of Kent & lannoye) Trustee's deed shall recite the facts showing that the sale is conducted in compliance with all requirements of law and of this Deed of Trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrances for value. 7. The power of sale conferred by this Deed of Trust is not an exclusive remedy; Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage. S. In the event of the death, incapacity or disability or resignation of Trustee, Beneficiary may appoint in writing a successor trustee, and upon the recording of such appointment in the mortgage records of the county in which this Deed of Trust is recorded, the successor trustee shall be vested with all powers of the original trustee. The trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Grantor, Trustee or Beneficiary shall be a party unless such action or proceeding is brought by the Trustee. 9. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the parties hereto, but on his/her/their heirs, devisees, legatees, administrators, executors, successors and assigns. The term Beneficiary shall mean the holder and owner of the note secured hereby, whether or not named as Beneficiary herein. 10. If the Property or any part thereof is sold, conveyed, leased, transferred, encumbered, or full possessory rights therein transferred without the prior written consent of Beneficiary, then Beneficiary may declare the entire remaining principal balance under this Deed of Trust immediately due and payable. This provision shall apply to each and every sale, transfer, conveyance or encumbrance regardless of whether or not Beneficiary has consented or waived its rights, whether by action or nonaction, in connection with any previous sale, transfer, conveyance or encumbrance, whether one or more. 11. Grantor shall pay when due all costs, fees and expenses incident to the property which are associated with a homeowner's or condominium owner's association, common area improvement and maintenance, and such similar expenses. Grantor further agrees to comply with all rules, regulations, covenants and restrictions of any homeowner's or condominium owner's association. Deed of Trust Page 4 of 7 (City of Kent & Lannoye) GRANTOR CITY OF KENT By: ze C oke It : or Date: y Gl STATE OF WASHINGTON ) ss. COUNTY OF KING ) On this 2$ day of 2011, I hereby certify that I know or have satisfactory evidence that SUZETTE COOKE is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument on behalf of the City of Kent as its Mayor and such execution to be the free and voluntary act of such parry for the uses and purposes mentioned in the foregoing instrument. -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day��\Mrjrjrst above written. �s N l p : NOTARY PUBLIC, in and for the State r AZ 1 B-\2= 0 _ of Washington, residing at N = My appointment expires 0F WAS\,N Deed of Trust Page 5 of 7 (City of Kent & Lannoye) REQUEST FOR FULL RECONVEYANCE Do not record. To be used only when note has been paid. TO TRUSTEE The undersigned is the legal owner and holder of the note and all other indebtedness secured by the within Deed of Trust. Said note, together with all other indebtedness secured by said Deed of Trust, has been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you thereunder. Dated: By: By: Deed of Trust Page 6 of 7 (City of Kent & Lannoye) Exhibit A Legal Descrlptiou: PARCEL A. The west 173 2 feet of the south 264 feet of the east half of the west half of the southwest quarter of the northeast quarter of Section 21,Township 22 North,Range 5 East,W.M,King County,Washington; EXCEPT the east'79.01 feet thereof; AND EXCEPT that portion lying south of the north margin of Southeast 248th Street,as established by deed recorded under Recording No. 5845351. PARCEL B. The east 79.01 feet of the west 173 2 feet of the south 264 feet of the east half of the west half of the southwest quarter of the northeast quarter of Section 21,Township 22 North,Range 5 East,W M.,Xing County,Washington; EXCEPT that portion lying south of the north margin of Southeast 24M Street,as established by deed recorded under Record ingNo 5845351. PARCEL C- The south 264 feet of the east half of the west half of the southwest quarter of the northeast quarter of Section 21, Township 22 North,Range 5 East, bV M.,King County,Washington; EXCEPT the west 173.2 feet thereof; AND EXCEPT that portion lying south ofthe north margin of Southeast 246th Street,as established by deed recorded under Recording No. 5845351, ALSO the east 15 feet of the south 909 feet of the west half of the southwest quarter of the northeast quarter of said Section 21; EXCEPT the south 264 feet thereof; ALSO the east 30 feet of the west half of the southwest quarter of the northeast quarter of said Section 21; EXCEPT the south 909 feet thereof. a Deed of Trust Page 7 of 7 (City of Kent & Lannoye) PROMISSORY NOTE $351,000.00 (U.S.) 12011 Kent, Washington FOR VALUE RECEIVED, the undersigned, CITY OF KENT., a Washington municipal corporation, at 220 Fourth Avenue South, Kent, WA, 98032, ("Borrower") promises to pay to the order of FLOYD LANNOYE AND DORIS LANNOYE, husband and wife, in equal undivided shares whose mailing address is 12436 SE 248th Street, Kent, Washington, 98030, ("Lender"), or such other place as Lender may from time to time designate in writing, the sum of Three Hundred Fifty-One Thousand And No/100 Dollars ($351,000), in lawful money of the United States of America. 1. Interest Rate. 1.1 Note Rate. Interest shall accrue on the unpaid principal balance at a rate of five percent (5%) per annum, and as provided in 1.2 below. 1.2 Default Rate. Should Borrower default in the payment of any installment when due hereunder or if Borrower 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"). After the entire principal amount of the loan evidenced hereby shall become due and payable, whether by acceleration, at maturity, or otherwise, this Note shall bear interest at the Default Rate. 1.3 Computation of Interest. Interest 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) occurring. 2. Security. This Note is secured by a Deed of Trust, (the "Deed of Trust") of even date made by Borrower in favor of Lender. Borrower 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 on or before (12 months after closing). 4. Prepayment. Borrower may prepay Borrower's obligations under this Note in full or in part at any time or from time to time without premium or penalty. S. Application of Payments. Payments received by Lender from Borrower shall be applied first to interest and then to principal, except that PROMISSORY NOTE—Page 1 of 6 (City of Kent& Lannoye) prepayments made under paragraph 3 of this Note shall be applied as designated by Borrower. 6. Acceleration. Upon Borrower's failure to pay any amount payable hereunder as and when due or upon the occurrence of any other default under this Note or the Deed of Trust of even date, Lender may declare, at its sole option and upon fifteen (15) days written notice to Borrower, the entire indebtedness evidenced hereby immediately due and payable in full. Failure to exercise this option or any other right Lender 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. Borrower 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 Lender in collecting any amounts owing hereunder, including reasonable attorneys' fees. Any judgment recovered by Lender shall bear interest at the Default Rate. a. Non-Recourse. Subject to the qualifications set forth below, Lender agrees that (i) Borrower shall be liable upon the indebtedness evidenced hereby to the full extent (but only to the extent) of the security therefore, (the "Security Property"), (ii) if default occurs in the timely and proper payment of all or any part of such indebtedness evidenced hereby, any judicial or other proceedings brought by Lender against Borrower shall be limited to the preservation, enforcement and foreclosure of the liens, estates, assignments, rights and security interests now or at any time hereafter securing the payment of this Note, and no attachment, execution or other writ of process shall be sought, issued or levied upon any assets, properties or funds of Borrower other than the Security Property except with respect to the liability described below in this section, and (ni) in the event of a foreclosure of such liens, estates, assignments, rights or security interests securing the payment of this Note, no judgment for any deficiency upon the indebtedness evidenced hereby shall be sought or obtained by Lender against Borrower, except with respect to the liability described below in this section; provided, however, that, notwithstanding the foregoing provisions of this section, Borrower shall be fully and personally liable and subject to legal action: (a) for proceeds paid under any insurance policies (or paid as a result of any other claim or cause of action against any person or entity) by reason of damage, loss or destruction to all or any portion of the Security Property, to the full extent of such proceeds not previously delivered to Lender, but which, under the terms of the Deed of Trust, should have been delivered to Lender; (b) for proceeds or awards resulting from the condemnation or other taking in lieu of condemnation of all or any portion of the Security PROMISSORY NOTE— Page 2 of 6 (City of Kent& Lannoye) Property, or any of them, to the full extent of such proceeds or awards not previously delivered to Lender, but which, under the terms of the Deed of Trust, should have been delivered to Lender; (c) for rents, issues, profits and revenues of all or any portion of the Security Property received or applicable to a period after the occurrence of any event of default or any event which, with the giving of notice and/or the passage of time, would constitute an event of default hereunder which are not either applied to the ordinary and necessary expenses of owning and operating the Security Property or paid to Lender; In the event that Borrower fails to obtain Lender's prior written consent to any assignment, transfer or conveyance of the Security Property or any interest therein as required by the Deed of Trust: (i) the Loan shall be fully recourse to Borrower; and (ii) Lender shall not be deemed to have waived any right which Lender may have under Sections 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Loan or to require that all collateral shall continue to secure all of the indebtedness owing to Lender in accordance with the Deed of Trust. Nothing contained in this Section shall (1) be deemed to be a release or impairment of the indebtedness evidenced by this Note or the Deed of Trust or (2) preclude Lender from foreclosing the Deed of Trust in case of any default or from enforcing any of the other rights of Lender except as stated in this Section. 9. 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. // PROMISSORY NOTE—Page 3 of 6 (City of Kent& Lannoye) CITY OF KENT. By Na e: uz tt Cooke Ti e- ayor STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that I know or have satisfactory evidence that Suzette Cooke is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument on behalf of the City of Kent as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing 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 PROMISSORY NOTE— Page 4 of 6 (City of Kent& Lannoye) Floyd Lannoye By!=� 1)- Name: Title: i STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this-Q day of ,4vri , 2011, before me a Notary Public in and for the State of Washington, personally appeared Floyd Lannoye, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who I executed this instrument and acknowledged It to be- free and voluntary act and deed for the uses and purposes mentioned in this Instrument. -Notary seal Must Appear Wthin This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. Notary Public ` State of Washington NOT PUBLIC, in an for the State SEUNDA RANOHAWA / My COMMISSION EXPIRES of Washington, residing at A,1itir'h oeteber23.2014 My appointment expires Z;- 201 y PROMISSORY NOTE— Page 5 of 6 (City of Kent& Lannoye) Doris Lannoye By �t. Name' —n o . -T h� , v Title: STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this-C2,0— day of j �/ , 2011, before me a Notary Public in and for the State of Washington, personally appeared Doris Lannoye, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be -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 state of Washington NO A Y PUBLIC, in an a State SEUNDARANDHAWA of Washington, residing at MY CpMMISSION EXPIRES October 23,2014 My appointment expires t] Z P \Cavil\Files\Open Files\1S23-1-annoye Purchase&Sale\Promissory Note docx PROMISSORY NOTE—Page 6 of 6 (City of Kent& Lannoye) REQUEST FOR MAYOR'S SIGNATURE • Please Fill in All Applicable Boxes KENT WRS HINGTON This farm Faust be printedon cherry paper Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Originator Ken Langholz Phone (Originator)- 5516 Date Sent 4/26/11 Date Required 5/3/11 Return Signed Document to Nancy Yoshitake CONTRACT TERMINATION DATE: VENDOR NAME: Floyd & Doris Lannoye DATE OF COUNCIL APPROVAL: 12/14/10 Brief Explanation of Document: The attached Real Estate Purchase and Sale Agreement is for the property located at 12436 SE 248th which will be used as a detention pond site for the East Hill Operation Center All Contracts Must Be Routed Through the Law Department (This Area to be Completed By the Law Department) Received: Approval of Law Dept • RECrI E Law Dept Comments AFIR 2 7 2011 4 NT [.A pr Date Forwarded to Mayor Shaded Areas to Be Completed by Administration Staff r, � 'A Received: L') i Recommendations & Comments: Disposition. Date Returned: Iage5870_templatebase • 2107