HomeMy WebLinkAboutCAG2025-014 - Original - Kenton Ridge, LLC et al - Phoenix Court Litigation Settlement Agreement - 1/9/25 FOR CITY OF KENT OFFICIAL USE ONLY
Sup/Mgr:
Agreement Routing Form DirAsst:
• For Approvals,Signatures and Records Management Dir/Dep:
KENT This form combines&replaces the Request for Mayor's Signature and Contract Cover (optional)
WASHINGTON Sheet forms. (Print on pink or cherry colored paper)
Originator: Department:
T. Reyes-Selden for V. Robben Law
Date Sent: Date Required:
� 01/08/2025 ASAP
0
CL Mayor or Designee to Sign. Date of Council Approval:
CL
Q Interlocal Agreement Uploaded to Website N/A
Budget Account Number: Grant? Yes NoF71
N/A
Budget? Yes W]No Type: N/A
EL
Vendor Name: Category:
Kenton Ridge, LLC, et al Contract
Vendor Number: Sub-Category:
C N/A Original
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W Project Name: Phoenix Court Litigation - Settlement Agreement
a- Project Details: Settlement Agreement between the City of Kent, Kenton Ridge, LLC, Michael C.K. Kwan and Margaret
4- K.M. Kwan,and Allied Residential resolving all issues related to the Complaint for Injunction, Declaration
C of Nuisance and Issuance of Warrant of Abatement in King County Superior Court, Cause NO.
23-2-15285-9 KNT.
C
Agreement Amount N/A Basis for Selection of Contractor: N/A
E *Memo to Mayor must be attached
a1 Start Date: Upon execution Termination Date: N/A
Q Local Business? Yes F—]No*If meets requirements per KCC 3.70.7 00,please complete'Vendor Purchase-Local Exceptions"form on Cityspace.
Business License Verification: ❑Yes In-Process❑Exempt(KCC 5.01.045) ❑Authorized Signer Verified
Notice required prior to disclosure? Contract Number:
Yes❑No CAG2025-014
Comments:
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Date Received:City Attorney: 1/8/2 5 Date Routed:Mayor's Officl 1/9/25 City Clerk's Office 1/9/25
adccW22373_1_20 Visit Documents.KentWA.gov to obtain copies of all agreements
rev.20221201
Docusign Envelope ID:A888534D-A059-49EC-866C-7A9CC6E31AF4
SETTLEMENT AGREEMENT
The City of Kent, a Washington municipal corporation ("City'), Kenton Ridge,
LLC, a Washington Limited Liability Company ("Kenton Ridge"); Michael C.K. Kwan
and Margaret K.M. Kwan, husband and wife ("Kwans"); and Allied Residential, Inc., a
Washington corporation ("Allied Residential"); collectively "the Parties," enter into this
Settlement Agreement ("Agreement").
RECITALS
A. Kenton Ridge is the owner of real property located at 23913 111th Place
Southeast in Kent, Washington, legally described as follows (the "Property"):
Lot 3 of City of Kent Short Plat No. SPC 77-38, as recorded under recording
No. 7801170784, being a short plat of the south 916.11 feet of the east 570
feet of the southwest quarter of the southeast quarter of Section 17,
Township 22 North, Range 5 East, W.M., in King County, Washington;
Except the south 341.14 feet of the east 160 feet thereof;And Except portions
thereof conveyed for roads by deeds recorded under Auditor's File No.
2523794, 6100093, and 8903170110; situated in the City of Kent, County of
King, state of Washington.
Kenton Ridge operates the Property as a multifamily residential apartment complex,
currently known as Phoenix Court Apartments ("Phoenix Court"). Michael C.K. Kwan is
the governing member of Kenton Ridge, and Allied Residential is the property
management company for Phoenix Court.
B. On August 15, 2023, the City filed a Complaint for Injunction, Declaration
of Nuisance and Issuance of Warrant of Abatement in King County Superior Court,
Cause No.23-2-15285-9 KNT(the"Complaint")against Kenton Ridge,Kwans,and Allied
Residential (collectively "Defendants").
C. Defendants maintain that prior to the filing of the Complaint, Defendants
endeavored to improve security at the Property. Subsequent to the Complaint being filed,
Defendants installed security features and underwent other positive changes to the
Property resulting in significantly reduced criminal and nuisance activities.
D. The Parties desire to resolve all issues related to the Complaint on the terms
set forth herein.
SETTLEMENT AGREEMENT- 1
Docusign Envelope ID:A888534D-A059-49EC-866C-7A9CC6E31AF4
AGREEMENT
NOW,THEREFORE,in consideration of the obligations and exchange of promises
set forth herein, the Parties agree as follows:
1. Recitals. The Recitals are incorporated herein.
2. Security Measures. The following security measures shall remain in place,
or be installed, and continue to perform their intended, regular function at the Property
so long as the Property is used for a multifamily residential apartment complex:
a. The front entrance at Southeast 240th Street must continue to operate
with a secured access only gate, twenty-four (24) hours a day, seven (7)
days a week. Ingress through the gate shall be by access code or other
similar restricted means. Any repairs that affect the gate's operation
shall be completed within two (2) weeks.
b. The entrance at 112th Avenue Southeast shall continue to be accessible
only by emergency vehicles and to residents if the front gate in 2.a.
above is closed and not operable due to needed repairs.
C. The perimeter fencing around the Property shall be inspected,
maintained, and repaired in a timely manner to prevent unauthorized
access to the Property. For purposes of this agreement, a "timely
manner" means a period of time no greater than five (5) business days.
d. Security cameras sufficient to monitor the public spaces of the Property,
including the entrance on Southeast 240th Street shall remain active and
fully operational. Security cameras shall include Flock safety cameras,
or similar automatic license plate reader cameras that are tied into
national and state databases.
Defendants maintain that there is currently a nationwide backorder of
automatic license plate readers (four to six weeks) and Pan Tilt Zoom
cameras (three to five months). Both of these products have been
ordered for the Property. Until these products arrive for installation at
the Property and are installed in a timely manner, their absence is not a
breach of this Agreement.
SETTLEMENT AGREEMENT-2
Docusign Envelope ID:A888534D-A059-49EC-866C-7A9CC6E31AF4
The security cameras shall record twenty-four (24) hours a day, seven
(7) days a week and the recordings saved for no less than thirty (30)
days. Cameras that are damaged or destroyed shall be repaired or
replaced, within five (5)business days.
e. A parking management program with community rules, assigned
spaces for residents, assigned spaces for guests, and towing of
unauthorized vehicles must remain in place and be enforced.
f. Private courtesy patrols on the Property who regularly, but at random
times, visit and inspect the Property in highly visible and marked
private patrol vehicles.
g. Operate and staff the management office at the Southeast 240t''entrance
of the Property at least six days (6) a week, excluding holidays, during
hours typical for the property management industry. Temporary staff
absences due to illness,inclement weather, or similar circumstance shall
not constitute a violation of this Agreement.
h. Notices, pursuant to rental agreements and in accordance with
Washington state law, must be properly issued to tenants when legally
appropriate for nuisance behaviors known to Kenton Ridge or to Kenton
Ridge agents such as the property management firm hired to manage
the Property, such as the following:
(i) injuring and physically endangering other residents at
the Property;
(ii) engaging in drug-related activity (see chapters 69.41,
69.50, or 69.52 RCW) at the Property; allowing subtenants,
residents, or anyone else to engage in drug-related activity
at the Property with the knowledge or consent of the
tenant;
(iii) engaging in any gang-related activity at the Property,
as defined in RCW 59.18.030, or allowing another to
engage in such activity at the Property; or
SETTLEMENT AGREEMENT-3
Docusign Envelope ID:A888534D-A059-49EC-866C-7A9CC6E31AF4
(iv) maintaining, conducting, promoting, facilitating,
permitting, or allowing a nuisance in violation Kent City
Code section 8.01.030.
i. Pursue unlawful detainer causes of action in accordance with chapter
59.18 RCW for nuisance behaviors described herein known to Kenton
Ridge or to Kenton Ridge agents such as the property management firm
hired to manage the Property, and to the extent reasonable under the
law.
3. Public Nuisance. Kenton Ridge and its agents shall take all reasonable
actions necessary to not permit, maintain, or otherwise allow a public nuisance as
provided for by KCC 8.01.030 or Chs. 7.48 and 9.66 RCW to occur on the Property, or if
such nuisance should occur and be known to Kenton Ridge or to Kenton Ridge agents
such as the property management firm hired to manage the Property, they agree to take
immediate action to abate such nuisance as appropriate and reasonable under the
circumstances.
The Parties agree that nothing in this Agreement shall require Kenton Ridge,
Allied Residential, their employees, and/or their agents to expose themselves to danger
or physical harm ("Dangerous Conditions."). In the event of Dangerous Conditions,
Kenton Ridge and its agents must seek remedies to abate the nuisance that meet the
standard of care in the industry and do not expose employees and-/or agents to the
Dangerous Conditions.
4. Dismissal. Within seven (7) business days of mutual acceptance of this
Agreement, the City shall file a motion to dismiss the Complaint with prejudice and
without an award of fees or costs to any party.
5. Release. Except for the right to enforce the terms of this Agreement,the City
hereby releases and forever discharges Kenton Ridge, Kwans, and Allied Residential
(including each of their past and present officers, officials,directors, shareholders, agents,
consultants, employees, insurers, and successors in interest) from all claims, demands,
liabilities, and causes of action of any nature related in any way to the events alleged in
the Complaint, whether the basis of such claims, demands, liabilities, and/or causes of
action are currently known or unknown and whether such claims, demands, liabilities,
and/or causes of action have accrued in the past or will first accrue in the
future. Excluded from this release and discharge are criminal charges against Dawn
Hefley ("Hefley"), the former Community Manager at the Property, for actions taken by
Hefley at Phoenix Court.
SETTLEMENT AGREEMENT-4
Docusign Envelope ID:A888534D-A059-49EC-866C-7A9CC6E31AF4
Except for the right to enforce the terms of this Agreement, Kenton Ridge, Kwans,
and Allied Residential hereby release and forever discharge the City (including each of
the City's past and present officers, officials, directors, shareholders, agents, consultants,
employees, insurers, and successors in interest) from all claims, demands, liabilities, and
causes of action of any nature related in any way to the events alleged in the Complaint,
whether the basis of such claims, demands, liabilities, and/or causes of action are
currently known or unknown and whether such claims, demands, liabilities, and/or
causes of action have accrued in the past or will first accrue in the future.
6. Mutual Drafting/Attorneys' Fees. The Parties agree that they participated
fully in the negotiating and drafting of this Agreement and the rules of construction of
ambiguities against the drafter shall not apply. In the event of litigation, the Party that
substantially prevails shall be entitled to attorney's fees and all necessary litigation
expenses incurred in obtaining relief, including any appeal arising out of litigation.
7. Term. Section 2, Security Measures, and Section 3, Public Nuisance, shall be
binding as follows:
a. Kenton Ridge and/or Kwans shall be bound by Sections 2 &3 of this
Agreement for so long as Kenton Ridge and/or Kwans have any interest in
the Property such as owner, governor, member, shareholder,or officer, and
the Property is used as a multifamily apartment complex; or
b. If the Property is sold before two years have elapsed from Mutual
Acceptance, the successors and assigns of Kenton Ridge shall be bound by
Sections 2 &3 of this Agreement until two years have elapsed from Mutual
Acceptance.
C. If the Property is sold while this Agreement is still effective, and
Kenton Ridge and the Kwans have no interest in the Property such as
owner, governor, member, shareholder, or officer, Kenton Ridge and the
Kwans shall no longer be liable or responsible for any of the terms of this
Agreement, and all liability and responsibility shall fall upon the new
owner.
8. Amendment. This Agreement may only be amended in writing and signed
by the Parties.
SETTLEMENT AGREEMENT-5
Docusign Envelope ID:A888534D-A059-49EC-866C-7A9CC6E31AF4
9. No Admissions. This Settlement Agreement does not constitute an
admission of liability by any of the Parties and may not be represented or construed as
such.
10. Authori , To Sign. Each individual executing this Settlement Agreement on
behalf of the Parties warrants that he or she is authorized to bind such Party to this
Settlement Agreement and its terms.
11. Counterparts. This Settlement Agreement may be executed in duplicate
counterparts, in which case each executed counterpart shall be deemed to be an original
and all counterparts together shall constitute one and the same instrument. Signed
versions of this Settlement Agreement transmitted by facsimile copy or electronic mail
shall be the equivalent of original signatures on original versions.
12. Entire Agreement. This Settlement Agreement contains all of the
agreements of the Parties with respect to any matter covered or mentioned in this
Settlement Agreement.
13. Mutual Acceptance. The date of Mutual Acceptance is the last date signed
by the Parties.
14. Breach And Cure. Kenton Ridge shall be responsible for compliance with
the terms of this Agreement and cure of any breach of this Agreement. Kwans shall be
responsible for compliance and cure of any material breach under Section 2(a), (b), (c),
(d), (e), (f), (g), (h), and (i) and under Section 3 of the Agreement. A material breach being
a breach that substantially defeats the primary purpose of this Agreement, which is to
abate nuisance on the Property using the measures in Sections 2 and 3.
For a material breach, the City must give Kenton Ridge and Kwans written notice of the
material breach and seven (7) days to cure such breach. If Kenton Ridge and/or Kwans
exercise reasonable diligence to cure such breach within seven (7) days and continue to
exercise reasonable diligence until such breach is cured, Kenton Ridge and Kwans shall
not be in material breach. Notice shall be deemed given within two business days after
being emailed and mailed to the following:
Email to: weaver@carneylaw.com and mmkwan168@msn.com
Mail to: Scott Weaver, Carney Badley, 7015th Ave, Suite 3600, Seattle WA 98104
and Kenton Ridge LLC, 9830 SE 35th PI, Mercer Island, WA 98040.
SETTLEMENT AGREEMENT-6
Docusign Envelope ID:A888534D-A059-49EC-866C-7A9CC6E31AF4
CITY OF KENT KENTON RIDGE, LLC
�}Signed by:
��i 6.k 6a,
By aX� By' Al ael"E.K. Kwan
Name: Dana Ralph Name:
Title: Mayor Title: Manager
Date: 1/9/2025 Date 1 7 202 5
Michael C.K. Kwan ALLIED RESIDENTIAL, INC.
�}5igned by: DocuSigned by:
�7 YW4��6A 6-k 6ait
By' 1442923810.4941B... By ?�j11kVCgFhS
Title: N/A Name:
Date: 1/7/2025 Title: President
Date: 1 8 2025
Margaret K.M. Kwan
5igned by:
By: /
E8237B91 Br�774FA...
Title: N/A
Date: 1/8/202 5
SETTLEMENT AGREEMENT-7