HomeMy WebLinkAboutEC17-206 - Other - Marquee on Meeker - Phase I - Section 11: Limited Sale and Transfer Restriction - 04/02/2018Section 11
LIMITND SAl,B AND TRANSFER ITES'I"RICTION
'l'l-lls LlMl"ftlDsAl-ti AND.I'I{ANSflll{ I{rs'l'Rlcl'loN {this "Agreement") is n:ads
efleclive as of Aprifl$2018 (thc'-Iiffective Date"). by and belween MARQUIf {lN ML.llKllR
LLC. a Washingtoilliffited liabilily company, and its successor and assigtts {cr:licctively,
.'lluyer"). and Clty OF KllNl". a Washington municipal corporation, and its sttcccssor and
assi gns {collectively. "Seller").
RECITAI-S
A. Seller and Buyer entered inlo a Real listate Purchase and Sale Agreement witl:
l,ease/Option 1o purchase dated 6s of Ma1, 5.2$17. as amcnded by Arlendntent tn Real Flstate
Purchase and Sale Agreement with Leasr:/Oplion 1o ?urchase dated as o1'September 20, ?017 {as
antended, "Purchass an{ Salc Agrcement"), t'or lhe salc by Seller" and the pi:rchase by Buyer-
of eertain real property located in King Counly, Washinglon, legally describcd cn llxhit$ A:l
atlached l'lcreto (the "Phase I Properg"') and lbr the lease with option to purchase by Sellcr. as
iandlord. and the lease with CIplion to purchase by Buyer. as lenanl, of cerlain adjaining real
property lncared in King Counly, Washinglon, legally descrilred tln lixhibit A-2 attached herelo
ith. "Pira*e 2 Property;). 'flr. Phase 1 Properly and the Phase 2 Property are collectively rclerred
lo herein as the "Propertics."
B. Concunently with the execulion rif this Agreemenl, Seller is conveying the Phase
I Property tr* Iluyer pursllanl lo the lerms of the Purchase and Salc Agreentent'
C. Concunentty with rhe cxecutir:n of this Agreement, Seller is leasing rhe Phase 2
Property to Buyer pursuant to the terms of that certain t,ease {with Optitln to Purchase) ol'even
date heiera'ith by and belween Seller and Buyer {the "Phasc 2 Lease Agreement").
1;. As a condition ta the sale of the Phase I Properly and lease of the Phase 2 Property
by Seller 1o Buyer. Scller required Buyer to enter intc this Aglecntettt.
&. All capitalized temrs are definecl in lhe Purchase and Sale Agreenrent and Phase 2
I,ease Agreetnent unless specifically defined herein'
AGREEMgNT
NOW, ';1'IEREFORE, in consideration of the sale and lease of tl:e Properlies by Seller to
Buyer and the mutual covenanls and promises cantained hercin, and lor olhcr good and valuable
consideraiion, the receipt and sufficiertcy of which is hereby acknorvledged, Seller a-nd Buyer
herebl' agree as ftrlh:ws:
L DEf]INITIONS. For purposcs olthis Agreetnent:
l.t "Developmenl Agreement" tneans tha{ cerlain Marquee on Meeker Prcrject
Development Agreement, by and between Seller and Buyer relaled 1o the Project, as approved by
the City of Kent Counc.il *n August 15.2017,and effective as oliAugusl23,?017'
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t.l "Ilrnjcct"' mcnls thc Phase i Propertl'. l)hase 2 Prcperll'- and lrro,ieet
Iurprcvemctrts.
1,3 "Project Improvenrcnts" rnearls all irnprovemen{s and an-site and r:fl-site
utiiily ard other infrastructure improvcments conlemplated and peilnilted nttder the Developmcnt
Agreemettt lbr the lulldevelaprnent oi'the lrrcprrties.
1.4 "substnntial Completion" nleans, wilh respecl to any intprovement 0r
w*rk, such improyem*nl or work has been eonii:lclecl in accordance with ail applicablc pemits
and laws and has been inspectecland approved by the appropriate authorilies, subiect only to minor
punch-list iterrrs {minor demils of'consLruction, dccoration and mechanical ad.iustntcnts} tlrat do
uoi intcrlere with use and operation o1'1he inlprot'en:enl or work in question'
2. LIMITED SALE ANI} TRANfiFIIR RES'TRICTION. UNtiI IATET Of (i)
S,bslar.rtial Complctir:n of the podium slruclure on tlte lllrase I Properly as described in the
l)evelopment Agreemenl and {ii; twenty-{i:ur (?4) nlonlhs after 1he Efl}ctive Date (the
,,Restriction Periorl"), Bul,er covenants and agrees {o ltot, direcily or indirectly. scll. transfer or
convey ali or any porlir:n ol'lhe Properties or the Projecl or any ownership inlerest in the l'roperties
or the Praject (ine luding, direc,tly or indirecrly, selling. translerring or conveying, in one or mor€
tr;ursaerio;s. lifty pereent (50%) or more ol'the m*nrbership inlerests in lluyer lthe "Re*triction").
except (a) leases of intlivielual residcntial unils in the ordinarl,courss oi'business after substantial
ccnrpletion of rhe residential units in ques{ionl ib) leascs ol individual retail ancl cornmercials
.p"*L* in the ordinary course olbusiness after substantial completion r::{'the retail and comnrercials
,pu.** in questigp; and {c) dedicalions, easements, rights-alway, and other sirTrilar Project-related
e;lcnrnbrances and agreemenls contemplated Lry the Developmenl Agreetncnl: provided. however'
thal the Restriction Jt utt l* deeured eipirecl in any event upoa the tenth {10t1') anniversary of the
ll{Tcctive Date regardtess of whether the Restrictio* has been previcusly violaled (the "Restriction
Outside f,xpirniian Date")" Ary sale, trans{'er or conveyance that violates lhe Restriction shall
constitute a rle laglt under this Agreement and, at thc r,lection of Sellt:r. in Selter's sole and absolute
discreticn, be null and void.
3. S1IBORDINATION. 'Ihis Agreemenl is subordinale to a lirst-priority deed o1'
trust or security inte:'est in the Properlies or Project grar:ted by Buyer to any institutional bank or
tender {which is not afliliated with or related tc Buycr or any of its principals ar any aflilia{es or
subsidiaries *f the Buyer" zury of its principals or tlreir {amily rnernbers) that has providcd financing
tr.r lluyer fcr rhe ccnstruclion of the Prqiecl which bank or unalfiliated lender is actively involved
in coinmercial real estate construclicn financing (a "Permifted Construction Lien"). The
Restriction shall be terminated in the event ol'a fcreclosure cl a Permitted Construclien Lien.
4, AUTHORIZATION. l-he individuals executing this Agreement each rvarranl and
represent that tbis Agreement was duly authorized by all individuals or entities whose
aulhorization was required for this Agreement 1o be effeclive and binding on lluycr-
S. SSCCESSORS AND ASSIGNS. I3uyer heretry agrees zurd declares that all of the
Properties and the Proiect shall l:e held, sold, leased, used, and conveyed subjecl to the temrs.
cnveganls. conditions" and restrictions in this Agreement (the "Covenants"). The (lovenants shall
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t limited s:rlc and trattsl'cr rcstriolion vJ
inurc to the bcnefit of Seller ancJ its successors and assigns; shall burden the Prcperlies and thc
prcieci; shall run with the landl and shall apply to and bc binding upon all parties now or herealler
having pr acquiring a1)/ rig|l. title, or illerest in the Properties and/or the Pro.fecl or any pafi
thereofand their heirs. sllccessors and assigns'
6. NOTICtrS. Unless applicable law requires a diflbrent melhod of giving rlolice.
any and all notices, demands or othcr comrnunications requirecl or desired to be given hereunder
byany party (collectively, "rotices") shall be in u'riting and shall tre valitily given or made to
*not1r*r'p"iy il delivele{ eithsr personally or by f ederal Express or other overnight delivery
service of recognized standing, or il'depositeil in the United States Mail, ceftified, registered, or
express mail with postage prepaid" err if sent by electronic mail. lf sueh notice is personally
iieiivered. it shall be conclusively deenied given at the time of such delivery. If suc}r noli{re is
3elivercd by F'ecteral Express or other ovcrnight delivcry service of recognizetl slanding, it shall
be decmcd given the nexi business day after the deposit thereof with such delivery service, postage
prepaitl. Iliuch n6tice is mailed as provided lrerein, sucl'r shall be deemeel giver: two (?) business
iays un*r the deposit lhereof in the United States Mail, postage prepaid. If surdr notice is given
blielectroni" ,r"'il, it shalt be deemed given on the date shown on tl'le eleclronic confirmation of
tiansmission. Each such notice shall be deemed given only if properly addressed to the party 1o
wham such notice is to bc given as lbllows:
Seller:City 0f Kent
?20 lrourth Avenue South
Kenl. WA 98032
Atln: Pat Fitzpatrick and Kurt !{anscln
Email : pfi tzpatrick@kentwa.gov
khanson(@kentwa.gov
With a copy to:F'osler llepper PI-I,C
111I l'hird Avenue. Suite 3000
Seatlle, WA 981$l-329q
Attn: Ileth Clark
llmai I : beth.cl ark@foster.conl
Buyer:Marquee on Meeker LLC
c/o Landmark Developmenl Croup
271 I West Valley l{ighway North, Suits 200
Auburn, WA 98001
Atln: Bretl.lacobsen
Emai I : bj acobsen(.4fnw-inc"con
With a copy t0:Marquee un Meeker LLC
c/o l-lAL Real Estate Inc.
2025 F.irst Avenue^ Suite 700
Seattle. WA 98121
Attn: Jonathan Manheirn
EmaiI : jmanheim@halrealestate.com
284 l 1086 03128/l I
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.1 linrited sale and translcr rcslriction v3
and: Alston Courlnage & Bassclti Li'P
1420 5'h Avenue. Suitc 3650
Seattlc:. WA q8l0l-101 I
Attn: l'om l{eacl
lirnnil : trcad{Qalcourl.conl
Any party hereto may change its address lbr the purpose o{'reeeivirtg noliccs as herein
provi{ecl by a written noliec given in lhe manner aftrresaid to llte olher party hereto'
7. AMENDMENT, WAMR. No rnodificalion. lcrrninatit-rtt or amcndment of thi*
Agreement may be made cxcept b1' 1yrltt*n agrcct'nent of the parties. No l'ailure by Seller or Buyer
to insist upon ihe strict perftrrmance o1'any covenanl. agreemenl, or sondition ol'this Agreement
or 1o exeicise any righi or remedy shall constitute a waiver of zury such breach or at:v other
covenant, agreenl13nt,icnr or condition, No waiver shall affect or altsr this Agreement, and each
anrl every covenant. agreement. tenn and condition al'this Agreemerit shall continue in full force
and ell'cct wilh respect to any other thsn existing or subsequent breach thereol.
8. I{EAI}INGS; EN'I'IRETY. 'l'he arlicle and pnragraph headings of this Agreement
are {br convenience oaly and in ro way limit or enlarge the scope or meaning of the langrrage
hereaf" 'I'his Agreemcnt embodies the entire agreemenl belwccn the parlies and supersedes all
prior agreements and rurderskndings relating to the subject matter hereof'
9. NO JOINT VENTURI; NO THIRD PARTY I]ENEFICIARY. It is nal
intcnded by this Agreement to, and nothing contained in this Agrecment shall, create any
partnership, joint venture or other arrangcnenl tretween Buyer and Seller. No term or provision
cl'this Agieeraent is iltended tn be. cr shatl be. l'or the bene{lt of ar,y person. finn, organization
or corporaticn nol a party hereto, and no such CIther per$on" f irm. orgartization or corporation shall
irave any right or eause olaction lrererutder.
10" COSTS AND ICXPENSE,S. In the evenl olany lawsuit, medialion, arbitration or
legal proceeding is brought to enlorce any of the lenns hereol" eacb party shall be responsible krr
its own costs alld e*p"nies incurred in connection rvith such action or proeeeding {including any
appeals therefrom) including its own allon'leys' and coufi lees and costs.
tl, SEVtrI1ABILITY. If an1, one or nrcre of the provisions af this Agreemenl, or the
applicability of any such provision io a specific situation. shall be held invalid or unenforceabie,
such pronision shall be lrodified to the extenl necessary 1o make it or its application valid and
enlarceable" and ll're validity anil enforceabilily of all other provisions q:f this Agreernenl and all
other applications ofany such provision shall n01 be a{Iected thereby.
12. CONSTRUCTION, $eller and Buyer acknowledg€ lhal it and its counsel have
reviewed and revised this Agreement and that the rule of construction to the effecl thai any
ambiguities are io be resolved againsl the drafting party shall nol be en'rployed in lhe interpretatiotr
cf this Agreernent (including the exhibits) cr aly aniendments thereto, and tle same shall be
construed neither fcr nor against Sellsr or Buyer, but shall be given a reasonable inlerpretation in
accordance with the plain rneaning of its terms and the intent o1'the parties.
284 r /086 03/2l9ll I
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4 lirnilctj sale ard trartslbr rcstriclion vl
n. GTOVERNTNG LAW; JIJIIISDICTION; WAMR Or .IURY TRIAL. T'his
Agrcemcnt shal be governed by arrcl conslrue<l in accordance with the intcrnal larvs of the slale of
Washington. 'l-he rinu* of any juclicial proceedings relaled to this Aglcernenl shall be in Kent'
Srasl"rinlton" unlsss othenryise rnutually agreed in rvriting by thc parties. Iiach party irrcvocably
s.bmits to the exclusive jurisclicticn of rhe lederal or state courts located in Kent, Washington.
I.]AC:I{ PARTY WAIVES TO THg I.IULLIJS].gX]'IJN"f III.IRMITTL:D l]Y LAW 1-'{IAI- BY
JiJRY OF ALL DISPIJTL,S ARISING OUTOF CII{ RTLAI]NG TO"fI-IIS ACRI1EML,NI"
14, TIMI|, "Day" as userj hcrein mean$ a calendar day and "ltusincss tl*ty" nreans any
day on ilCrich nalional banks in the location where the Propeilies are located are generally open
fbi business. Unlsss 6therwise specitied, in ceirnputi:rg any periocl of lime clescribed lrerein. the
ilay pl.the act or evenl aficr whicli thc clesignated period of time begins to rutl is not to bc included
uoi the last ilay ol'rhc period so conputecl is tr: be ilcluded at, unless such last day is a Salurday,
$*'day or lcgal holiday 1br nationai banks in the location rn&ere the Properlies are localed, in
u,hich evenr thc periocl rhull run until th€ end o1'the next day rvliich is neitlrer a Saturday. Sunday,
r:r legal holida-v, 'rhe last clay olany perioel cf tirnc described herein shall be dcemed to end ai
5:30 p.n.r" iPacific). TinTe is of the essenc€ in the perlbrnrartce of this Agreement'
lS. MEMORANDTJM. floncurrently with execulion ol-lhis Agreemenl. Bu5's1 w111
execule and rJeliver 1o Seller a rnemorandunr cf this Agreement in a lorm required by Seller. duly
executcd, ackn6wledged and in rccorclable lorm (togelher witlr any necessary excise tax al'fidavits
or olher transfer tax lbrnrs). Seller shall have the right to record tlre memorandum against the
Ilroject at Buyer's sole cost and expense {including the payment of *ny required excise taxes).
Upon Buyer'i request on cr ajler tlre Restriction Outside Hxpiration Date. Seller will prerrnptly
execute ancl record a full rerminatior: olany mcmorandum o{'this Agreemen{ tiral is recorded"
16. EXECUTION, 'fhis Agreement may be executed in countetparts and, whcn
counterparts 6lthis Agreement have been executed and delivered try bcith parties. this Agreement
shall be lully binding and effective, as if borh parties had executed and delivered a single
coun{erpart eiittris Agreement. Without limiting the manncr in which exscution o1'this Agreemenl
may 5e accornplished, execulion by either parly may be ef{bcted by facsimile transmission of a
signature page of this Agreement execuled by such pady. Any parly u4:o ellbcts execulion by
faisinrile iransmission of-a signature page shall also proniplly deliver to the other patly an original
counterpart signed by such party, hut lhe lbilure of any party to Jurnish such original counterpart
shall not invalidate ihe execution ol'lhis Agreement slfected by facsimile triursmissian. T'his
Agreemcnl shall not be bindirrg upon or ef{bctive as 1o either Buyer eir Seller until it has been
gxccuted by holh l3uyer and Seller.
{signatures on following pagn]
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IN WITNESS WHEREOF, the parties have executed this Limited Sale and Tranrfer
Restriction ef&ctive as of the Effective Date first hereinabove witten.
SELLER:
MARQUEE ON ME$KER LLC, a Washington
limited liability company
By: The Missing tinks LLC, a
liability eompsny,
Brett Manager
BI.IYU,R:
CITY OI. KENT" a Wa*hington
municipal corporation
DanaRalpb Mayor
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l:.,\ WITNESS WIJERF.OF, the panies have executed this Limited Sale and Trznslbr
Restriction eflbctive as ollhe Il{lective lfate fir'si hereinabove writien'
SBLLBR:
MARQUEE ON MEBKER LLC' a Washingtott
I imited liabil ity company
By 'l'he Missing l-inks L..l,C. a
Washington linriled linbi lity company.
its Manager
Srett .lacobsen, Manager
BUYBR:
CITY OF KENT, a Washirgtorr
nrunicipal corporal ion
Dana Ralph, Mayr:r
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