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HomeMy WebLinkAboutCAG2025-087 - Original - King County - Surplus Property from SE 272nd/277th Corridor - 02/24/25 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: Cheryl Rolcik-Wilcox Public Works Date Sent: Date Required: c 02/19/2025 2/26/2025 QAuthorized to Sign: Date of Council Approval: Q �✓ Mayor or Designee 2/18/2025 Budget Account Number: Grant? Yes NoE] Budget? Yes E:]No Type: N/A Vendor Name: Category: King County Purchase/Sale Vendor Number: Sub-Category: Other 0 W Project Name: City of Kent Property Purchase by King County CProject Details: Acquisition by King County of parcel #302205-9060 from Kent for an C environmental restoration project. King County will pay $110,000 to the City *, for this acquisition. C (11.111 Agreement Amount: $110 000 Basis for Selection of Contractor: EGJ r *Memo to Mayor must be attached i Start Date: Termination Date: lm a Local Business? Yes F]No*If meets requirements per KCC 3.70.100,please complete"Vendor Purchase-Local Exceptions"form on Cityspace. Business License Verification: ❑Yes In-Process F1 Exempt(KCC 5.01.045) Authorized Signer Verified Notice required prior to disclosure? Contract Number: Yes ✓❑No CAG2025-087 Comments: Mayor Ralph - Please sign and date page 9 of this packet. Thank you! N Cheryl R-W � c 3 0 a, _`�yw .5 a Date Received:City Attorney: 2/19/25 Date Routed:Mayor's Office 2/24/25 'ty Clerk's Office 2/24/25 adccW22373_7_20 Visit Documents.KentWA.gov to obtain copies of all agreements rev.20221201 8.1 • KENT W A S M I N G T O N DATE: February 18, 2025 TO: Kent City Council SUBJECT: Sale of Surplus Property from the SE 272nd/277th Corridor Project - Authorize MOTION: I move to authorize the Mayor to take all actions and sign all documents to sell the surplus property owned by the City and located off 86th Avenue South in unincorporated King County to King County for $110,000, subject to final purchase terms and conditions acceptable to the Public Works Director and City Attorney. SUMMARY: King County's Department of Natural Resources and Parks ("County") has made an offer of $110,000 to purchase property owned by the City of Kent ("City") and located off 86th Avenue South in unincorporated King County, also known as King County Tax Parcel No. 302205-9060. The parcel is located adjacent to the end of N.E. Auburn Creek where it flows into the Green River. The County intends to incorporate this parcel into an environmental restoration project. This parcel was acquired by the City in 1997, under threat of condemnation for the S.E. 272nd/277th Corridor Project, which was completed and opened to traffic in 2000. Staff has determined that this remaining parcel is no longer needed by the City for any public purpose. The parcel area is 1.07 acres or 46,432 sq. ft. and is restricted to agricultural or open space use. The parcel is impacted by a stream (NE Auburn Creek) along the eastern boundary line, and the Green River forms the northern boundary line. The County's offer was based on fair market value as determined by a licensed appraiser. The sale of this property from the City to the County is exempt from the City's surplus property process under Chapter 3.12 of the Kent City Code (KCC). KCC 3.12.030(D) exempts properties sold to a local, state, or federal agency from the surplus process. Staff has reviewed and concurs with the appraisal report and recommends that Council authorize the Mayor to sign the documents needed to complete the transaction. BUDGET IMPACT: Proceeds of the sale will go back into the Street Fund, as street project funds were used for the original purchase. Packet Pg. 391 8.1 SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services - Providing quality services through responsible financial management, economic growth, and partnerships. ATTACHMENTS: 1. Purchase and Sale Agreement (PDF) 2. Map (DOCX) 02/04/25 Committee of the Whole MOTION PASSES RESULT: MOTION PASSES [UNANIMOUS]Next: 2/18/2025 7:00 PM MOVER: Brenda Fincher, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Kaur, Boyce, Boyd, Fincher, Larimer, Michaud, Troutner Packet Pg. 392 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 KING COUNTY OPEN SPACE ACQUISITION GREEN RIVER, HORSENECK FARMS CITY OF KENT (MONK)PROPERTY REAL ESTATE PURCHASE AND SALE AGREEMENT This Real Estate Purchase and Sale Agreement ("Agreement") is made as of the date this instrument is fully executed by and between the CITY OF KENT, a municipal corporation ("Seller"), and KING COUNTY, a home rule charter county and political subdivision of the State of Washington ("Buyer"), for the purchase and sale of that certain property situated in King County, Washington, described on Exhibit A, and all rights appurtenant ("the Property"). Seller and Buyer may be collectively referred to herein as the "Parties" and individually as a"Party." I. PURCHASE PRICE: The purchase price for the Property is One Hundred Ten Thousand and No/100 Dollars (US $110,000.00) ("Purchase Price"). The Purchase Price is payable at Closing in cash. 2. TITLE: 2.1 Deed: At Closing, Seller will execute and deliver to Buyer a Statutory Warranty Deed conveying and warranting good and marketable title to the Property free and clear of all defects or encumbrances except for the lien of real estate taxes and drainage service charges not yet due and payable and those defects and/or encumbrances (if any) identified on Exhibit B (collectively, "Permitted Exceptions"). 2.2 Title Insurance: At Closing,Buyer shall receive(at Buyer's expense)an owner's Standard ALTA policy of title insurance, dated as of the Date of Closing and insuring Buyer in the amount of the Purchase Price against loss or damage by reason of defect in Buyer's title to the Property subject only to the printed exclusions appearing in the policy form and any Permitted Exceptions. 3. CONTINGENCIES: 3.1 Due Diligence Inspection and Feasibility: Buyer shall satisfy itself by investigation and inspection, at its cost and expense, in its sole and absolute discretion that the condition of the Property for Buyer's contemplated use meets with its approval ("Due Diligence Contingency"). During the Due Diligence Period(as hereafter defined), Buyer may have a Phase I Environmental Site Assessment ("ESA") of the Property performed by a qualified environmental consultant (the "ESA Consultant"). If the ESA Consultant recommends further assessment or remediation of the Property (including, but not limited to, a Phase II ESA) (the "Phase I Recommendations"), then Buyer may provide Seller notice of the Phase I Recommendations and thereafter negotiate with Seller regarding an appropriate"Corrective Action Plan."If Buyer and Seller are not able to agree upon a Corrective Action Plan that would address the Phase I Recommendations to Buyer's satisfaction, or if Buyer is not satisfied with the condition of the Property for any other reason,this Green River,Horseneck Farms:City of Kent Page 1 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 Agreement shall terminate pursuant to Section 5.8. Seller hereby grants Buyer's employees, agents, and contractors a right of entry onto the Property for any site inspections performed in connection with this Due Diligence Contingency. In connection with such inspections, Buyer agrees to hold harmless, indemnify and defend Seller, its officers, agents and employees, from and against all claims, losses, or liability, for injuries, sickness or death of persons, including employees of Buyer, caused by or arising out of any act, error, or omission of Buyer, its officers, agents, contractors, subcontractors, or employees in entering the Property for the above purposes, to the extent not caused by or arising out of any act,error,or omission of Seller,its officers,agents, and employees. 3.2 Funding: The sale of the Property is contingent on receipt of grant funding and/or appropriation by the Metropolitan King County Council, King County Executive's approval of said appropriation, and spending authority of funds sufficient to close the sale. 3.3 Encroachment: The sale of the Property is contingent on resolution of the removal of that certain encroachment associated with southerly adjacent property, parcel number 000040-0001. The sufficiency of such resolution shall be in Buyer's sole and absolute discretion. 3.4 Removal of Contingencies: Buyer shall have a period of 120 days from the date all Parties have signed this Agreement to remove all contingencies (the"Due Diligence Period"). Buyer may remove such contingencies by sending written notice thereof to Seller pursuant to Section 7 herein. If the contingencies are not removed within the Due Diligence Period, this Agreement will terminate, and the Parties shall have no further obligations hereunder. 4. RISK OF LOSS: Seller will bear the risk of loss of or damage to the Property prior to Closing. If such loss or damage occurs to the Property, Seller shall promptly notify Buyer thereof and Buyer may, in its sole discretion, terminate this Agreement by giving notice of termination to the Seller. 5. SELLER'S REPRESENTATIONS, WARRANTIES, AND COVENANTS: Seller represents, warrants, and covenants to Buyer at the date of execution of this Agreement and the Date of Closing that: 5.1 Authority: Seller, and the person(s) signing on behalf of Seller, have full power and authority to execute this Agreement and perform Seller's obligations,and if Seller is a corporation, all necessary corporate action to authorize this transaction has been taken. 5.2 No Leases: The Property is not subject to any leases, tenancies, or rights of persons in possession and Seller shall not enter into or establish any leases, tenancies, or rights of persons in possession prior to Closing. 5.3 No Material Defect: Seller is unaware of any material defect in the Property. 5.4 Debris and Personal Property: Prior to Closing, Seller shall remove all debris and Green River,Horseneck Farms:City of Kent Page 2 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 personal property located on the Property (if any). Removal of all personal property and debris shall be at Seller's cost and expense, and Seller will indemnify and hold Buyer harmless from all claims and expenses arising from such removal. 5.5 Contamination: Seller hereby represents and warrants that (a) Seller has not caused or allowed the generation, treatment, storage, or disposal of Hazardous Substances on the Property, except in accordance with local,state,and federal statutes and regulations;(b)Seller has not caused or allowed the release of any Hazardous Substance onto, at, or near the Property; (c) Seller is in compliance with all applicable laws, rules, and regulations regarding the handling of Hazardous Substances; (d) Seller has secured all necessary permits, licenses, and approvals necessary to its operation on the Property, and is in compliance with such permits; (e) Seller has not received notice of any proceedings, claims, or lawsuits arising out of its operations on the Property; and(f) to the Seller's knowledge, the Property is not, nor has it ever been subject to the release of Hazardous Substances. For the purposes of this Agreement, the term "Hazardous Substance" means any waste, pollutant, contaminant, or other material that now or in the future becomes regulated or defined under any local, state, or federal environmental law or regulation. 5.6 Fees and Commissions: Seller shall pay for any broker's and other commissions and fees incurred by the Seller in connection with the sale of the Property and Seller shall indemnify and hold Buyer harmless from all such claims for commission and fees. 5.7 Indemnification: Seller agrees to indemnify, defend, and hold harmless Buyer, its employees, agents, heirs, and assigns, from and against any and all damage, claim, liability, or loss, including reasonable attorney's and other fees, arising out of or in any way connected to the breach of any representation or warranty contained herein. Such duty of indemnification shall include, but not be limited to damage, liability, or loss pursuant to all federal environmental laws, Washington State environmental laws, strict liability, and common law. 5.8 Termination: If Buyer determines in its sole and absolute discretion that any representation, warranty, or covenant contained herein has been breached prior to Closing, Buyer may elect to terminate this Agreement by sending written notice of the breach to Seller pursuant to Section 7 herein. 6. CLOSING: 6.1 Time for Closing: The sale will be closed in the office of the Closing Agent not later than twenty-one (21) days from the date all contingencies set forth in Section 3 herein have been removed, or as soon thereafter as practicable. Buyer and Seller shall deposit in escrow with the Closing Agent all instruments, documents, and moneys necessary to complete the sale in accordance with this Agreement. As used in this Agreement, "Closing" and "Date of Closing" means the date on which all appropriate documents are recorded and proceeds of the sale are available for disbursement to Seller. The Closing Agent shall be: Green River,Horseneck Farms:City of Kent Page 3 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 Stewart Title Company 981 Powell Ave. SW, Ste 100 Renton, WA 98057 6.2 Prorations and Closing Costs: Seller will pay real estate excise taxes(if any are due)and the full first half or second half real property tax installment due and owing, as determined by the Date of Closing. Seller will receive a prorated refund directly from King County Treasury Operations for the number of days post-Closing for the applicable installment period. Buyer will pay the premium for its owner's title insurance policy,the cost of recording the Statutory Warranty Deed from the Seller, and the Closing Agent's escrow fees. 6.3 Possession: Buyer shall be entitled to possession of the Property at Closing. 6.4 Seller Questionnaire: The"Seller Questionnaire"is attached to this Agreement as Exhibit C and shall be completed by Seller and delivered to Buyer at the time this Agreement has been executed by both Parties. Nothing in the Seller Questionnaire creates a representation or warranty by Seller with respect to the Property, nor does it create any rights or obligations for the Parties. 7. NOTICES: Any notices required herein shall be given to the Parties: (a) personally, (b) by certified mail with return receipt,or(c)electronically,with read receipt or delivery confirmation or both. Notices shall be effective (a) upon personal delivery, (b) after five (5) calendar days following deposit in the U.S. mail, or (c) immediately upon electronic transmittal to the email addresses below. The Party providing notice shall bear the burden to prove the date that notice was delivered. TO SELLER: TO BUYER: City of Kent King County Water and Land Resources Division Mike Mactutis Open Space Acquisitions Environmental Engineering Manager 201 South Jackson Street, Suite 5600 220 Fourth Avenue South Seattle, WA 98104 Kent, WA 98032 Attn: Lori King mmactutis@kentwa.gov lori.king@kingcounty.gov crolcik-wilcox(a)kentwa.gov 8. DEFAULT AND ATTORNEYS' FEES: 8.1 Default by Buyer: If Closing does not occur due to default by Buyer, Seller's sole and exclusive remedy shall be to terminate this Agreement. 8.2 Default by Seller: If Closing does not occur due to default of Seller, Buyer shall have the right to bring an action for specific performance, damages,and any other remedies available at law or in equity. In seeking any equitable remedies, Buyer shall not be required to prove or establish that Buyer does not have an adequate remedy at law. Seller hereby waives the requirement of any Green River,Horseneck Farms:City of Kent Page 4 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 such proof and acknowledges that Buyer would not have an adequate remedy at law for Seller's breach of this Agreement. 8.3 Attorneys' Fees: In an action to enforce this Agreement, each Party shall bear its own attorneys' fees and costs. 9. GENERAL: This is the entire agreement of the Buyer and Seller with respect to the Property and supersedes all prior or contemporaneous agreements between them, written or oral. This Agreement may be modified only in writing, signed by Buyer and Seller. Any waivers under this agreement must be in writing. A waiver of any right or remedy in the event of a default will not constitute a waiver of such right or remedy in the event of any subsequent default. This Agreement is for the benefit of, and binding upon, Buyer and Seller and their heirs, personal representatives, successors, and assigns. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision. Time is of the essence in this Agreement. 10. WASTE; ALTERATION OF PROPERTY: Seller shall not (a) commit waste on the Property; (b) remove trees or other vegetation, coal, minerals, or other valuable materials; or (c) substantially alter the surface or subsurface of the Property without the express written consent of Buyer. 11. SURVIVAL OF WARRANTIES: The terms, covenants,representations, and warranties shall not merge in the deed of conveyance but shall survive Closing. 12. LEGAL RELATIONSHIP: The Parties to this Agreement execute and implement this Agreement solely as Seller and Buyer. No partnership,joint venture, or joint undertaking shall be constructed from this Agreement. 13. GOVERNING LAW AND VENUE: This Agreement and all amendments hereto shall be governed by and construed in accordance with the laws of the State of Washington applicable to contracts made and to be performed therein,without giving effect to its conflicts of law rules or choice of law provisions. In the event that either Party shall bring a lawsuit related to or arising out of this Agreement, the Superior Court of King County, Washington, shall have exclusive jurisdiction and venue. 14. COUNTERPARTS: To facilitate execution,this Agreement may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each Party, or that the signature of all persons required to bind any Party, appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making proof of this Agreement to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each Party hereto. Any Green River,Horseneck Farms:City of Kent Page 5 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter may be attached to another counterpart identical thereto except having attached to it additional signature pages. 15. TERMINATION OF OFFER: This offer shall terminate if not accepted by Seller on or before October 25, 2024. BUYER: King County, a home rule charter county and political subdivision of the State of Washington. Signed by: BY: au°rmWctroom, Deputy Director Department of Natural Resources and Parks 9/23/2024 Date: SELLER: City of Kent BY: � Date 02/24/2025 Dana Ralph, Mayor EXHIBITS: Exhibit A, Legal Description Exhibit B, Permitted Exceptions Exhibit C, Seller Questionnaire Green River,Horseneck Farms:City of Kent Page 6 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 EXHIBIT A LEGAL DESCRIPTION That portion of Government Lot 4 in the Southwest quarter of Section 30, Township 22 North, Range 5 East, W.M., lying Easterly of 86th Ave South(Kent-Thomas Road) and Westerly of the following described line; commencing at the Northeast corner of the R.H. Beaty Donation Land Claim; Thence North 88°56'30"West along the North line of said Donation Claim a distance of 1735.30 feet to the centerline of an existing drainage channel and the point of beginning of said line; Thence along said channel North 68°12'46"West a distance of 15.79 feet; Thence North 32°16'09" West a distance of 98.45 feet; Thence North 71°38'46"West a distance of 61.36 feet; Thence North 11'35'29" East 59.25 feet; Thence North 10°18'05"West a distance of 42.81 feet to a point on the line of ordinary high water of the Green River; Thence along the line of ordinary high water South 59°06'52"West a distance of 64.42 feet; South 73°09'37"West a distance of 26.58 feet; South 85°48'14"West a distance of 32.56 feet; South 72°29'15"West a distance of 80.95 feet; South 86°10'32" West a distance of 68.43 feet to the Easterly margin of 86th Avenue South (Kent-Thomas Road); Thence along said margin South 13°33'14" East a distance of 133.80 feet to the Northern margin of the R.H. Beaty Donation Claim; Thence South 88°56'30" East along said Donation Claim a distance of 348.59 feet to the point of beginning. Situate in the County of King, State of Washington. Green River,Horseneck Farms:City of Kent Page 7 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 EXHIBIT B PERMITTED EXCEPTIONS Those special exceptions listed on Stewart Title Company Title Report#2279311 (Fourth Report) dated July 17, 2024, and any supplements thereto (which Title Report and Supplements are incorporated into this Agreement by this reference)numbered 6 (Paid Current), 7, 18 and 19, Schedule B-I and 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10, Schedule B-II. Green River,Horseneck Farms:City of Kent Page 8 of 9 September 19,2024 Docusign Envelope ID: BB7846D1-4653-4C4B-A9C7-E2F840E31540 EXHIBIT C Landowner Questionnaire Title 1. Are there any encroachments, ❑ Yes ❑ No ❑ Don't know boundary agreements, or boundary disputes? If yes,please explain: 2. Is there a private road or easement ❑ Yes ❑ No ❑ Don't know agreement for access to the property? 3. Are there any written agreements for ❑ Yes ❑ No ❑ Don't know joint maintenance of an easement or road? Annual Cost: Utilities 1. The source of water for the property is: ❑ Private or publicly owned water system ❑ Private well serving only the subject property ❑ Other water system: 2. The property is served by: ❑ Public sewer system ❑ On-site septic system ❑ Other disposal system: 3. Utilities are provided, as follows: Oil: Gas: Electric: Sewage: Water: 4. List any leased equipment and terms: Homeowner's Association Is there a Homeowners' Association? ❑ Yes ❑ No ❑ Don't know Name of Association: Contact name: Name of Association: Contact phone number and/or address: Annual membership dues: Pending special assessments: Green River,Horseneck Farms:City of Kent Page 9 of 9 September 19,2024