HomeMy WebLinkAboutCAG2022-120 - Original - CBRE, Inc. - Naden Appraisal & Street Vacation Assessment - 03/25/2022ApprovalOriginator:Department:
Date Sent:Date Required:
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Type:Review/Signatures/RoutingComments:
Date Routed to the City Clerk’s Office:Agreement InformationVendor Name:Category:
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Project Name:
Project Details:
Agreement Amount:
Start Date:
Basis for Selection of Contractor:
Termination Date:
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Business License Verification: Yes In-Process Exempt (KCC 5.01.045)
If meets requirements per KCC 3.70.100, please complete “Vendor Purchase-Local Exceptions” form on Cityspace.
Notice required prior to disclosure?
Yes No
Contract Number:
Agreement Routing Form
For Approvals, Signatures and Records Management
This form combines & replaces the Request for Mayor’s Signature and Contract Cover
Sheet forms.
Visit Documents.KentWA.gov to obtain copies of all agreementsadccW22373_1_20
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rev. 20210513
FOR CITY OF KENT OFFICIAL USE ONLY
(Optional)
* Memo to Mayor must be attached
VALUATION & ADVISORY SERVICES
Proposal and Contract for Services
CBRE, Inc.
1420 5th Ave, Ste 1700
Seattle, WA 98101
www.cbre.us/valuation
March 24, 2022 Todd Henderson, MAI, AI-
GRS
Managing Director
Kurt Hanson, Director
Economic & Community Development
City of Kent
400 W Gowe St
Kent, WA 98032
Phone: 253-856-5707
Email: wellis@kentwa.gov
RE: Assignment Agreement
Naden Site,
SEC of West Meeker Street & Naden Avenue South
Kent, WA 98032
Dear Mr. Hanson:
We are pleased to submit this proposal and our Terms and Conditions for this assignment.
PROPOSAL SPECIFICATIONS
Purpose: To estimate the Market Value of the referenced real estate
Premise: As Is (as the site exists) and Steet vacation value (across the fence)
Rights Appraised: Fee Simple
Intended Use: Acquisition/Disposition/Exchange Due Diligence
Intended User: The intended user is City of Kent (“Client”), and such other parties
and entities (if any) expressly recognized by CBRE as “Intended
Users” (as further defined herein).
Reliance: Reliance on any reports produced by CBRE under this Agreement is
extended solely to parties and entities expressly acknowledged in a
signed writing by CBRE as Intended Users of the respective reports,
provided that any conditions to such acknowledgement required by
CBRE or hereunder have been satisfied. Parties or entities other
than Intended Users who obtain a copy of the report or any portion
thereof (including Client if it is not named as an Intended User),
whether as a result of its direct dissemination or by any other
means, may not rely upon any opinions or conclusions contained
in the report or such portions thereof, and CBRE will not be
responsible for any unpermitted use of the report, its conclusions or
contents or have any liability in connection therewith.
City of Kent
Assignment Agreement
Page 2 of 8
March 24, 2022
www.cbre.us/valuation
VALUATION & ADVISORY SERVICES
Scope of Inspection: An inspection of the property will be conducted and arranged with
the property contact and performed by CBRE Valuations.
If this expected property inspection is not possible due to
unforeseen issues (such as lack of on-site personnel cooperation,
physical obstructions, or appraiser/property contact health and
safety concerns), the client will be promptly advised. The client may
continue this assignment based on other inspection options agreed
upon by CBRE and client or provide CBRE with a written notice to
cancel. If CBRE determines that a credible appraisal result cannot
be achieved due to inspection limitations, it will promptly provide
the client with a written cancellation of this assignment.
Valuation Approaches: Only the Sales Comparison Approach will be completed.
Report Type: Standard Appraisal Report
Appraisal Standards: USPAP
Appraisal Fee: $4,000 for the as is value; $6,000 for the street vacation values -
$10,000 total. If cancelled by either party before a completion, the
fee will be based on CBRE's hourly rates for the time expended; plus
actual expenses.
Expenses: Fee includes all associated expenses
Retainer: A retainer is not required for this assignment.
Payment Terms: Final payment is due upon delivery of the final report or within thirty
(30) days of your receipt of the draft report, whichever is
sooner. The full appraisal fee is considered earned upon delivery
of the draft report. We will invoice you for the assignment in its
entirety at the completion of the assignment.
Delivery Instructions: CBRE encourages our clients to join in our environmental
sustainability efforts by accepting an electronic copy of the report.
An Adobe PDF file via email will be delivered to wellis@kentwa.gov.
Delivery Schedule:
Draft Report: 40 calendar days after the Start Date
Final Report: Upon Client's request
Start Date: The appraisal process will start upon receipt of your signed
agreement and the property specific data.
Acceptance Date: These specifications are subject to modification if this proposal is
not accepted within 5 business days from the date of this letter.
When executed and delivered by all parties, this letter, together with the Terms and Conditions and
the Specific Property Data Request attached hereto and incorporated herein, will serve as the
Agreement for appraisal services by and between CBRE and Client. Each person signing below
represents that it is authorized to enter into this Agreement and to bind the respective parties,
including all intended users, hereto.
City of Kent
Assignment Agreement
Page 3 of 8
March 24, 2022
www.cbre.us/valuation
VALUATION & ADVISORY SERVICES
We appreciate this opportunity to be of service to you on this assignment. If you have additional
questions, please contact us.
Sincerely,
CBRE, Inc.
Valuation & Advisory Services
Todd Henderson, MAI, AI-GRS
Managing Director
As Agent for CBRE, Inc.
T +1 206 2926189
Todd.Henderson@cbre.com
City of Kent
Assignment Agreement
Page 4 of 8
March 24, 2022
Revised May 4, 2020
VALUATION & ADVISORY SERVICES
AGREED AND ACCEPTED
FOR CITY OF KENT (“CLIENT”):
Signature
Kurt Hanson
Date
Director, Economic & Community Development
Name
253-856-5706 Phone Number E-Mail Address
ADDITIONAL OPTIONAL SERVICE
Assessment & Consulting Services: CBRE’s Assessment & Consulting Services group has the
capability of providing a wide array of solution-oriented due diligence services in the form
of property condition and environmental site assessment reports and other necessary due
diligence service (seismic risk analysis, zoning compliance service, construction risk
management, annual inspections, etc.).
Initial below if you desire CBRE to contact you to discuss a proposal for any part or the full
complement of consulting services, or you may reach out to us at
ACSProposals@cbre.com. We will route your request to the appropriate manager. For
more information, please visit www.cbre.com/assessment.
KHanson@kentwa.gov
Title
Kurt Hanson 3/25/2022
City of Kent
Assignment Agreement
Page 5 of 8
March 24, 2022
Revised May 4, 2020
VALUATION & ADVISORY SERVICES
TERMS AND CONDITIONS
1. The Terms and Conditions herein are part of an agreement for appraisal services (the “Agreement” ) between CBRE,
Inc. (the “Appraiser”) and the client signing this Agreement, and for whom the appraisal services will be performed
(the “Client”), and shall be deemed a part of such Agreement as though set forth in full therein. The Agreement
shall be governed by the laws of the state where the appraisal office is located for the Appraiser executing this
Agreement.
2. Client shall be responsible for the payment of all fees stipulated in the Agreement. Payment of the appraisal fee
and preparation of an appraisal report (the “Appraisal Report, or the “report”) are not contingent upon any
predetermined value or on an action or event resulting from the analyses, opinions, conclusions, or use of the
Appraisal Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. If a
draft report is requested, the fee is considered earned upon delivery of the draft report. It is understood that the
Client may cancel this assignment in writing at any time prior to delivery of the completed report. In such event, the
Client is obligated only for the hourly rate of the time and expenses incurred (including travel expenses to and from
the job site), with a minimum charge of $500. Additional copies of the Appraisal Reports are available at a cost of
$250 per original color copy and $100 per photocopy (black and white), plus shipping fees of $30 per report.
3. If Appraiser is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required
or requested by Client or a third party to participate in meetings, phone calls, conferences, litigation or other legal
proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to
this engagement, the Appraisal Report, the Appraiser’s expertise, or the Property, Client shall pay Appraiser’s
additional costs and expenses, including but not limited to Appraiser’s attorneys’ fees, and additional time incurred
by Appraiser based on Appraiser’s then-prevailing hourly rates and related fees. Such charges include and pertain
to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time,
mileage and related travel expenses, waiting time, document review and production, and preparation time
(excluding preparation of the Appraisal Report), meeting participation, and Appraiser’s other related commitment
of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the
event Client requests additional appraisal services beyond the scope and purpose stated in the Agreement, Client
agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed
report has been delivered to Client at the time of such request.
4. Appraiser shall have the right to terminate this Agreement at any time for cause effective immediately upon written
notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without
cause upon 5 days written notice.
5. In the event Client fails to make payments when due then, from the date due until paid, the amount due and payable
shall bear interest at the maximum rate permitted in the state where the office is located for the Appraiser executing
the Agreement. In the event either party institutes legal action against the other to enforce its rights under this
Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees and expenses. Each party
waives the right to a trial by jury in any action arising under this Agreement.
6. Appraiser assumes there are no major or significant items or issues affecting the Property that would require the
expertise of a professional building contractor, engineer, or environmental consultant for Appraiser to prepare a
valid report. Client acknowledges that such additional expertise is not covered in the Appraisal fee and agrees that,
if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client,
and solely at Client’s additional cost and expense.
7. In the event of any dispute between Client and Appraiser relating to this Agreement, or Appraiser's or Client's
performance hereunder, Appraiser and Client agree that such dispute shall be resolved by means of binding
arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, and
judgment upon the award rendered by an arbitrator may be entered in any court of competent jurisdiction.
Depositions may be taken and other discovery obtained during such arbitration proceedings to the same extent as
authorized in civil judicial proceedings in the state where the office of the Appraiser executing this Agreement is
located. The arbitrator shall be limited to awarding compensatory damages and shall have no authority to award
punitive, exemplary or similar damages. The prevailing party in the arbitration proceeding shall be entitled to
recover its expenses from the losing party, including costs of the arbitration proceeding, and reasonable attorney's
fees. Client acknowledges that Appraiser is being retained hereunder as an independent contractor to perform the
services described herein and nothing in this Agreement shall be deemed to create any other relationship between
City of Kent
Assignment Agreement
Page 6 of 8
March 24, 2022
Revised May 4, 2020
VALUATION & ADVISORY SERVICES
Client and Appraiser. This engagement shall be deemed concluded and the services hereunder completed upon
delivery to Client of the Appraisal Report discussed herein.
8. All statements of fact in the report which are used as the basis of the Appraiser's analyses, opinions, and conclusions
will be true and correct to Appraiser's actual knowledge and belief. Appraiser does not make any representation or
warranty, express or implied, as to the accuracy or completeness of the information or the condition of the Property
furnished to Appraiser by Client or others. TO THE FULLEST EXTENT PERMITTED BY LAW, APPRAISER DISCLAIMS
ANY GUARANTEE OR WARRANTY AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY
APPRAISAL REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR
PURPOSE EVEN IF KNOWN TO APPRAISER. Furthermore, the conclusions and any permitted reliance on and use
of the Appraisal Report shall be subject to the assumptions, limitations, and qualifying statements contained in the
report.
9. Appraiser shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil
conditions, engineering, or other similar technical matters. The report will not constitute a survey of the Property
analyzed.
10. Client shall provide Appraiser with such materials with respect to the assignment as are requested by Appraiser and
in the possession or under the control of Client. Client shall provide Appraiser with sufficient access to the Property
to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary.
11. The data gathered in the course of the assignment (except data furnished by Client) and the report prepared pursuant
to the Agreement are, and will remain, the property of Appraiser. With respect to data provided by Client, Appraiser
shall not violate the confidential nature of the Appraiser-Client relationship by improperly disclosing any proprietary
information furnished to Appraiser. Notwithstanding the foregoing, Appraiser is authorized by Client to disclose all
or any portion of the report and related data as may be required by statute, government regulation, legal process,
or judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is required to
enable Appraiser to comply with the Bylaws and Regulations of such Institute as now or hereafter in effect.
12. Unless specifically noted, in preparing the Appraisal Report the Appraiser will not be considering the possible
existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground
storage tanks (collectively, “Hazardous Material) on or affecting the Property, or the cost of encapsulation or removal
thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that
would require the expertise of a professional cost estimator or contractor. If such repairs are needed, the estimates
are to be prepared by others, at Client’s discretion and direction, and are not covered as part of the Appraisal fee.
13. In the event Client intends to use the Appraisal Report in connection with a tax matter, Client acknowledges that
Appraiser provides no warranty, representation or prediction as to the outcome of such tax matter. Client
understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other
federal, state or local taxing authority) may disagree with or reject the Appraisal Report or otherwise disagree with
Client’s tax position, and further understands and acknowledges that the taxing authority may seek to collect
additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Appraisal Report.
Client agrees that Appraiser shall have no responsibility or liability to Client or any other party for any such taxes,
interest, penalties or fees and that Client will not seek damages or other compensation from Appraiser relating to
any such taxes, interest, penalties or fees imposed on Client, or for any attorneys’ fees, costs or other expenses
relating to Client’s tax matters.
14. Appraiser shall have no liability with respect to any loss, damage, claim or expense incurred by or asserted against
Client arising out of, based upon or resulting from Client’s failure to provide accurate or complete information or
documentation pertaining to an assignment ordered under or in connection with this Agreement, including Client’s
failure, or the failure of any of Client’s agents, to provide a complete copy of the Appraisal Report to any third party.
15. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR SECTION 17 IF
APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATE, OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER, WHETHER BASED IN CONTRACT, WARRANTY,
INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, FOR ANY SPECIAL,
CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES, AND AGGREGATE DAMAGES IN
CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE FEES
REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO APPRAISER UNDER
THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000). THIS LIABILITY LIMITATION SHALL NOT APPLY IN
THE EVENT OF A FINAL FINDING BY AN ARBITRATOR OR A COURT OF COMPETENT JURISDICTION THAT SUCH
LIABILITY IS THE RESULT OF A PARTY’S FRAUD OR WILLFUL MISCONDUCT.
City of Kent
Assignment Agreement
Page 7 of 8
March 24, 2022
Revised May 4, 2020
VALUATION & ADVISORY SERVICES
16. Client shall not disseminate, distribute, make available or otherwise provide any Appraisal Report prepared
hereunder to any third party (including without limitation, incorporating or referencing the Appraisal Report , in
whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party
expressly acknowledged in a signed writing by Appraiser as an “Intended User” of the Appraisal Report provided
that either Appraiser has received an acceptable release from such third party with respect to such Appraisal Report
or Client provides acceptable indemnity protections to Appraiser against any claims resulting from the distribution
of the Appraisal Report to such third party, (ii) any third party service provider (including rating agencies and auditors)
using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or (iii) as
required by statute, government regulation, legal process, or judicial decree. In the event Appraiser consents, in
writing, to Client incorporating or referencing the Appraisal Report in any offering or other materials intended for
review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties
unless and until Client has provided Appraiser with complete copies of such materials and Appraiser has approved
all such materials in writing. Client shall not modify any such materials once approved by Appraiser. In the absence
of satisfying the conditions of this paragraph with respect to a party who is not designated as an Intended User, in
no event shall the receipt of an Appraisal Report by such party extend any right to the party to use and rely on such
report, and Appraiser shall have no liability for such unauthorized use and reliance on any Appraisal Report. In the
event Client breaches the provisions of this paragraph, Client shall indemnify, defend and hold Appraiser, and its
affiliates and their officers, directors, employees, contractors, agents and other representatives (Appraiser and each
of the foregoing an “Indemnified Party” and collectively the “Indemnified Parties”), fully harmless from and against
all losses, liabilities, damages and expenses (collectively, “Damages”) claimed against, sustained or incurred by any
Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any
Indemnified Party in preparing the Appraisal Report.
17. Furthermore, Client shall indemnify, defend and hold each of the Indemnified Parties harmless from and against
any Damages in connection with (i) any transaction contemplated by this Agreement or in connection with the
appraisal or the engagement of or performance of services by any Indemnified Party hereunder, (ii) any Damages
claimed by any user or recipient of the Appraisal Report, whether or not an Intended User, (iii) any actual or alleged
untrue statement of a material fact, or the actual or alleged failure to state a material fact necessary to make a
statement not misleading in light of the circumstances under which it was made with respect to all information
furnished to any Indemnified Party or made available to a prospective party to a transaction, or (iv) an actual or
alleged violation of applicable law by an Intended User (including, without limitation, securities laws) or the negligent
or intentional acts or omissions of an Intended User (including the failure to perform any duty imposed by law); and
will reimburse each Indemnified Party for all reasonable fees and expenses (including fees and expenses of counsel)
(collectively, “Expenses”) as incurred in connection with investigating, preparing, pursuing or defending any
threatened or pending claim, action, proceeding or investigation (collectively, “Proceedings”) arising therefrom, and
regardless of whether such Indemnified Party is a formal party to such Proceeding. Client agrees not to enter into
any waiver, release or settlement of any Proceeding (whether or not any Indemnified Party is a formal party to such
Proceeding) without the prior written consent of Appraiser (which consent will not be unreasonably withheld or
delayed) unless such waiver, release or settlement includes an unconditional release of each Indemnified Party from
all liability arising out of such Proceeding.
18. Time Period for Legal Action. Unless the time period is shorter under applicable law, except in connection with
paragraphs 16 and 17 above, Appraiser and Client agree that any legal action or lawsuit by one party against the
other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether based
in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this Agreement
or the Appraisal Report, (b) any services or appraisals under this Agreement or (c) any acts or conduct relating to
such services or appraisals, shall be filed within two (2) years from the date of delivery to Client of the Appraisal
Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this
section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying
claims, causes of action or damages.
City of Kent
Assignment Agreement
Page 8 of 8
March 24, 2022
www.cbre.us/valuation
VALUATION & ADVISORY SERVICES
SPECIFIC PROPERTY DATA REQUEST
In order to complete this assignment under the terms outlined, CBRE, Inc., Valuation & Advisory
Services, will require the following specific information for the property:
1. PLEASE NOTIFY US IMMEDIATELY IF ANY OTHER CBRE SERVICE LINE (INCLUDING CAPSTONE) IS
INVOLVED IN THE BROKERAGE, FINANCING, INVESTMENT OR MANAGEMENT OF THIS ASSET.
2. Current title report and title holder name
3. Legal description
4. Survey and/or plat map
5. Site plan for proposed or entitled development, if applicable
6. Current county property tax assessment or tax bill
7. Details on any sale, contract, or listing of the property within the past three years
8. Engineering studies, soil tests or environmental assessments
9. Ground lease, if applicable
10. Planning/Zoning application or approval, if applicable
11. Any previous market/demand studies or appraisals
12. Name and telephone number of property contact for physical inspection and additional
information needed during the appraisal process
13. Any other information that might be helpful in valuing this property
If any of the requested data and information is not available, CBRE, Inc., reserves the right to extend
the delivery date by the amount of time it takes to receive the requested information or make other
arrangements. Please have the requested information delivered to the following:
Todd Henderson, MAI, AI-GRS
Managing Director
Todd.Henderson@cbre.com
CBRE, Inc.
Valuation & Advisory Services
1420 5th Ave, Ste 1700
Seattle, WA 98101