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Home My WebLink About02/08/2006 AGENDA - - - --- -. ~ -..."....- -- ------:0 m FILE ,', L - - . - CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337-1873 03 (360) 473-5280 FEBRUARY 8, 2006 CITY COUNCIL MEETING AGENDA 1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. General Council Business 2. CALL TO ORDER: 5:30 P.M. in MEETING CHAMBERS LOCATED ON FIRST FLOOR A. Pledge of Allegiance B. Invocation 3. PUBLIC RECOGNITION & ANNOUNCEMENTS - "A Call to Citizens... " 4. CONSENT AGENDA A. Claims & Check Register (#AB06-028) B. Minutes of Meeting - February 1, 2006 (#AB06-029) 5. GENERAL BUSINESS A. Purchase and Sale Agreement between the City of Bremerton and HOTEL CONCEPTS, INC. For the Sale of Old City Hall at 239 4th Street, Bremerton (#AB06-030) 6. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING CITY COUNCIL STUDY SESSION Immediately following the City Council Meeting, the Council Members will reconvene in COUNCIL CONFERENCE ROOM 603 to hear presentations on the following items. Please note that no action will be taken, and the content of these items is subject to change... 1. Professional Services Agreement with TWISS ANALYTICAL LABORATORIES - Kathleen Cahall, Public Works & Utilities, Water Resources 2. Release of Utility Easement established by Ordinance 2082 - Michael Mecham, Public Works & Utilities, Engineering 3. Budget Adjustment for Reassignment of the Fire Chief and Director of Financial Services to Pay Band 22 on the Management Salary Plan - Carol Conley, Human Resources Director 4. Information Only - Olympic Soccer and Sports Center Proposed Expansion - Tom Cressman, Interim Director, Parks & Recreation Department 5. Pre-retreat briefing and discussion to clarify existing 2006 City Council Goals and 2006 City Council Expectationsfl"asks - Cecil McConnell, Council President It Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations should contact the City Clerk's Office at (360) 473-5323 by noon on the Monday preceding the Council meeting. CITY COll CIL MEETING SPEA RS LIST PLEASE NOTE THAT ALL REQUEST FOR INFORMATION FROM THE CITY OF BREMERTON MUST B SUBMITTED IN WRITING. PLEASE PRINT YOUR NA E BELOW IF YOU PLAN TO SPEAK DURING THE CO NCIL MEETING TONIGHT Cur h s ~ PUBLIC COMMENT TO THE BREMERTON CITY COUNCIL 8 FEBRUARY, 2006 Page 10f2 by HELEN MILLER salutation: PRESIDENT McCONNELL AND CITY COUNCIL MEMBERS - LAST WEDNESDAY, THE FIRST OF FEBRUARY, SEVERAL MEMBERS OF THE PUBLIC, MYSELF INCLUDED, MADE NOTES OF THE ANNOUNCEMENT BY THE COUNCILMAN FROM DISTRICT 3 - THAT HE WOULD BE HOLDING ANOTHER DISTRICT MEETING ON THE 8TH OF FEBRUARY. I AM CONFUSED; IN THE ABSENCE OF PUBLIC NOTICE OF THE MEETING - I MUST PRESUME THAT THE MEETING HAS BEEN CANCELED OR RESCHEDULED. I NOW ASK - IF, WHEN AND WHERE THAT ADVERTISED MEETING WILL ACTUALLY BE HELD. LAST EVENING, TUESDAY, I ATTENDED THE PUBLIC MEETING TO HEAR THE DIRECTOR OF DCD PROPOSE "HEIGHT, BULK, AND SCALE DESIGN GUIDELINES" FOR THE HIGHLAND AND PLEASANT AVENUES DISTRICT HIGH DENSITY DEVELOPMENT PROJECTS. THAT TERM - "GUIDELINES" MAKES MANY OF US NERVOUS - BECAUSE WE QUESTION WHETHER THEY ARE LEGALLY ENFORCEABLE. IN RESPONSE TO QUESTIONS FROM THE PUBLIC, DCD SAID THAT THE CITY COUNCIL DID NOT GIVE THEM SUFFICIENT INSTRUCTIONS TO GENERATE CONCRETE ENFORCEABLE STANDARDS TO BE APPLIED TO TIllS PROJECT. MANY QUESTIONS WERE ASKED OF THE DCD DIRECTOR, BUT FEW SATISFACTORY ANSWERS WERE GIVEN TO THE SINGLE FAMILY HOME OWNER'S CONCERNS. I CANNOT QUESTION THE CITY COUNCILS INTENTION TO PRESERVE THE QUALITY OF OUR NEIGHBORHOODS; AND IN THAT CONTEXT I WOULD REQUEST THAT THE COUNCIL GIVE DCD VERY CLEAR INSTRUCTIONS WIDCH WOULD DEFINE PUBLIC COMMENT TO THE BREMERTON CITY COUNCIL 8 FEBRUARY, 2006 Page 2 012 ENFORCEABLE STANDARDS TO GOVERN THESE PROJECTS - TO SUPERSEDE LAST NIGHT'S VAGUE. AMBIGUOUS. AND FOR THE MOST PART UNENFORCEABLE PROPOSALS WHICH ALLOWS THE DEVELOPERS TOO MUCH DISCRETION TO "DO THINGS THEIR WAY" - BY DISTORTING THE UNENFORCEABLE "SUGGESTIONS / GUIDELINES" OFFERED BY DCD AND THE STAKEHOLDER'S GROUP. THE CITY'S MARCH INTO THE FUTURE DESERVES CONSIDERED DIRECTIONS. ALSO - IS IT REALLY APPROPRIATE AT THIS TIME TO FORCE THE ADOPTION OF SEATTLE TYPE RESIDENTIAL HIGH DENSITY - WITHOUT THE NECESSARY SUPPORTING SMALL BUSINESSES - WHICH IN BREMERTON HAVE FLED THE CITY CENTER ? THANK YOU , WQe ~ HELEN MILLE~ ;.fCEiVED CITY COUNCIL OFFI(~:' '"'irE 0.18 Lo{p . Curtis Lending 631 Washington Ave. PO Box 288 Bremerton, WA 98337 November 30, 2005 Bremerton City Council 239 4th Street Bremerton, WA 983377 Re: Horne Ownership and Height Limits I was looking at the city council goals for 2006 and saw that you want to increase home ownership in Bremerton to 60 percent. However, you recently took actions that will have the result oflessening home ownership. I am talking about the decreasing the building heights from 120 feet to 60 feet or 35 feet in areas that are designated high density residential. I looked at the county tax records to determine the owner occupancy rate on Washington, Highland and Pleasant between 6th and 11 th street. On Highland Avenue, the owner occupancy rate is 29.6% - less than half of your desired goal. On Pleasant it is 21 %. On Washington Avenue it is even lower - under 9%. These three streets have a combination of single family homes and small apartment complexes. There are three obvious ways to get higher home ownership. The first is to convert duplexes and triplexes to single family homes. This is unlikely to happen because it decreases the value of properties. The second way is to increase the home ownership of single family homes but if every single family homes were owner occupied, the home ownership rate would barely be 40%. The best way is to build high density, owner occupied buildings - condos. For example, a single 60 unit condo with 50 home owners and 10 renters would more than double the home ownership rate on Washington and Highland combined from 19% to 38%. However, for condos to be financially viable in this area, they must be large. 60 feet high condos are barely viable. Unfortunately, when the council lowered the height limits, you lowered tlle long term home ownership. Recently, I have heard that some council members are attempting to lower heights even more. Not only will this probably prevent condos from be built, it will encourage apartments. Two or three story apartment buildings with surface parking are financial viable. It also makes financial sense to replace some of the more dilapidated single family homes to duplexes or fourplexes. If you are serious about encouraging home ownership in this area, I suggest that you remember what the mayor's suggested last year. Raise the height limit to 200 feet and you will raise the home ownership. You will also get the vibrant 24/7 downtown core that is part ofthe city's revitalization goal. Thank you, Curtis Lending BILL# 0(; -()? fI DATE SUBMITTED: AGENDA BILL CITY OF BREMERTON CITY COUNCIL qA ........................................................................................ SUBJECT: Claim & Checks Register Approval Committee Meeting Date: COUNCn.. MEETING Date: ~ dl-?J --() ? . Department: Financial Services Presenter: Cathy Johnson Phone: SUMMARY: ATTACHMENTS: . FISCAL IMP ACTS (Include Budgeted Amount): APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAUBUDGET: OPERATIONS: ~ COUNCIL PRESIDENT: ;::;it'~i/'~ RECOMMENDED MOTION: Move to approve: \ CONSENT AGENDA l8Il 1) Check#'s 3(f~7(;; JL- 50 <(--;(;,3 . EFT's ~2~-R<630, t-f'3/tj ?~~~O $ ?fr0!, Off7. ~/ . 2) Regular Payroll for $ 3) Retiree Payroll for $ COUNCIL ACTION: ~pprove 0 Deny 0 Table o Continue 0 No Action DATE SUBMITTED: )./.;1./0" AGENDA BILL CITY OF BREMERTON CITY COUNCIL BILL # 1) 6 - 0 J- 1. '1B ........................................................................................ SUBJECT: Minutes of Meeting - F~r~r'f I, 200 (0 Committee Meeting Date: Nt A COUNCIL MEETING Date: ~/~ It> ~ Department: city Council Presenter: Cecil McConnell, Council President Phone: (360) 473-5280 SUMMARY: Attached are the meeting minutes for the Council Meeting held F~6r~"''1' \ I 2-00 ca. ATTACHMENTS: Meeting Minutes for 'Fe..b~'1 II LDO <0, FISCAL IMPACTS (Include Budgeted Amount): None APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: OPERATIONS: COUNCIL PRESIDENT: I CONSENT AGENDA ~ I ~' . .'-, ..."..- ~.-/ ..~ / ~ t- .._/ ,,/ .d.<f:.:o .!y-~ .-f1.~..~!: ~~/ ~.~'L~.J~~-:.:_~?rt.~c-...'...' ~- ~ -'7 ~ - '" I REC01\'llVlENDED MOTION: Move to pass the CONSENT AGENDA as presented. COIJNCIL ACTION: I2J Approve 0 Deny 0 Tabi~ o Continue 0 No Action DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, February 1, 2006 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, of the NORM DICKS GOVERNMENT CENTER 345 6th Street, Bremerton, Washington, Wednesday, February 1, 2006, at 5:30 PM, with Council President Cecil McConnell presiding. Council members present were Nick Wofford, Will Maupin, Carol Arends, Dianne Robinson, Mike Shepherd, Wendy Priest, Adam Brockus, and Brad Gehring. Also present were City Attorney Roger Lubovich, City Clerk Paula Johnston, and Legislative Assistant Lori Smith. The Pledge of Allegiance was led by Council Member Brad Gehrina, followed by the invocation provided by Pastor Eric Roberts of New Life Assembly. President McConnell announced the following: · A Pre-Council session was held in Council Conference Room 603 from 5:00 to 5:30 PM; which included a presentation on a "Purchase & Sale Agreement between the City of Bremerton and HOTEL CONCEPTS, INC. for the Sale of Old City Hall at 239 4th Street" by Gary Sexton, Redevelopment Project Administrator; · Clarified that citizens may only comment on Item 6A on the agenda tonight if those comments relate to the status of the moratorium; · The Council would hold an exECUTIVE SESSION following COUNCIL MEMBER REPORTS to discuss "PENDING LITIGATION" per RCW 42.30.110 (1)(i); and · Citizens were informed that they could receive information on upcoming Council meetings on the City's website at www.ci.bremerton.wa.us. or by calling the Council Office at (360) 413-5280. MAYOR'S REPORT Mavor Bozeman asked Jim Svensson with the Department of Community Development to provide a briefing on the damage reported around the City Le. sewer overflows, mudslides, and potholes due to the excessive rain. PUBLIC RECOGNITION & SERVICE ANNOUNCEMENTS - "A Call to Citizens... " Randall Tanaka, with Boy Scout Troop 1512, stated that he and his fellow troop members were here to observe how municipal government runs; and they stated their desire to be a part of any plans for improving Forest Ridge Park. Gordv Bvrd was concerned with recent announcements by Kitsap Transit that several popular stops were going to be eliminated. Don Larson was pleased to see members of the Boy Scouts in the audience tonight; and mentioned that he sent an e-mail to the Mayor and the Council with suggestions to enhance the newly obtained Chevron property at Evergreen Park. The following citizens expressed their concern that the City has raised the allowed building height- limit to eD-feet in the PleasantlHighland A venues: Brad Rucker; Annie Barrus; Mary Matso; and Rachael Zeialer Helen Miller was concerned that proper process was not followed in advertising the most recent District 3 meeting. CONSENT AGENDA A. Check Numbers 305707 through 305763; and EFT-8808; EFT-8812 through EFT-8824; in the amount of $1,257,006.57; Retiree Payroll in the amount of $74,591.06 for the pay period ending January 31, 2006 (#AB06-024) City Council Reg. Mtg. Minutes Wednesday, February 1, 200S Page 2 of 4 B. Minutes of Meeting - January 25, 200S (#ABOS-025) There were no comments from the public. 5:57:20 M/S/C/U (Priest/Arends) Move to approve the Consent Agenda as presented. SA - PUBLIC HEARING and RESOLUTION NO. 2987 TO CONTINUE THE MORATORIUM ON DEVELOPMENT OVER 40-FEET HIGH IN THE HIGHLAND/PLEASANT AVENUES DISTRICT (#ABOS-02S): Chris HUGo, Community Development Director explained that on November 30, 2005, the Council approved a SO-day moratorium on development over 40-feet high on Highland/Pleasant Avenues District between Sth and 11th Streets until design guidelines could be developed. The moratorium went into effect on December 13, 2005. Continuing the moratorium until April 13, 200S would allow the publiC process to conclude, and allow sufficient time for Planning Commission and City Council public hearings. Mr. HUGO also provided a brief history on how the City arrived at the SO- foot height limit, which he described as a "compromise" between neighborhood values that exist there, and the old zoning, which had allowed a 120-foot height limit for the last 20-years, but was revised on November 30 of 2005. President McConnell reminded the public that only comments f'egarding the request to extend the moratorium would be allowed... Don Larson provided comments in support of extending the moratorium. Wendy Priest provided background on this issue as well since there were people here now that were not present on November 30 of last year. She discussed how the Planning Commission originally proposed a 40-foot height limit, but then a very vocal group attended the November 30 Council Meeting to state that they had projects that would not work if the height limit was not at least SO-feet. Ms. Priest continued to explain that at that meeting, she asked specifically if while going through the neighborhood planning process if it was determined that the SO-foot height was not appropriate, could it be changed, and she was told "yes it could". So while the Council is extending the moratorium to set design standards, she thinks there is still an opportunity to study if the SO-foot height limit is appropriate, and that zoning changes can be made in the future. Brad GehrinG stated that he supports the action to extend the moratorium because it is important for the citizens to have an opportunity to express their opinion on this matter. Mr. Shepherd and Mr. Brockus agreed. President McConnell stated that if the moratorium was extended, citizens should take advantage of the opportunity to provide input on the design standards by attending the Public Workshop and Meeting scheduled next Tuesday, February 7, 200S at S:OO PM in the Chambers of the Norm Dicks Government Center. Will Maupin asked what the City's Comprehensive Plan says about this area; and what options were available to the Council at the end of this SO-day extension. Mr. HUGO stated that the Comprehensive Plan for the entire City was adopted in 2004, but unfortunately it did not include details at a sub-area level, lacking development parameters. Therefore, the Council can use its discretion to do several things... .adopt the SO-feet height limit with guidelines... without guidelines... go back to 40-feet height limit... or even 120 feet... . whatever the Council believes fits in a "Regional Metropolitan Center". Mr. HUGO added that it would complicate things greatly if he was asked to develop guidelines for multiple proposed height options. .. City Council Reg. Mtg. Minutes Wednesday, February 1, 2006 Page 3 of 4 Mr. Lubovich clarified that if the moratorium was not extended, development can occur in that area up to 60-foot height limits without design standard guidelines. Mike SheDherd asked if the Planning Commission should reexamine this issue prior to the end of the moratorium. Mr. HUGO added that the Council has the option of extending the moratorium longer than the 60-days that is being proposed tonight; and if the Council chose to send this issue back to the Planning Commission to reexamine the height limits, the Planning Commission would now have the additional information from citizen-comments that it did not have previously to assist them. 6:17:43 M/S/C/U (Priest/Robinson) Move to pass Resolution No. 2987 continuing the moratorium on permits for development over 40-feet in the area designated 60-feet on Figure 20.74(a) of the Bremerton Municipal Code until April 13. 2006. COUNCIL MEMBER REPORTS Will MauDin discussed his attendance at the Bremerton Housing Authority Board meeting last week; and announced that the City Council would be holding a Joint Study Session with them next Tuesday, February 7, 2006 at 5:00 PM in the Mayor's Conference Room; and thanked Alycia Cohen for the invitation to the Grand Opening of POSEY'S HOME COOKING, which is located on Wheaton Way. Carol Arends enjoyed the New Council Orientation Tour held yesterday afternoon; and the food served by POSEY'S HOME COOKING at their opening night on Saturday. Dianne Robinson also enjoyed the New Council Orientation Tour and thanked the owners of POSEY'S HOME COOKING. Mike SheDherd discussed his attendance at the One Church One Family meeting with co-Council Member Dianne Robinson; provided a briefing on the topics discussed at a few Neighborhood Association meetings held in his neighborhood; asked if there was anyone interested in joining the Ferry Advisory Committee, to contact the City Council Office at (360) 473-5280; and lastly, he was excited to see that the Seattle City Council would be hosting a Reception & Dinner with the Bremerton City Council on Thursday, February 2,2006 at the Bremerton Harborside Conference Center. WendY Priest encouraged citizens to go to the City's website at www.cLbremerton.wa.us to fill out the survey, which would provide helpful information when the City studies the new cable franchise renewal agreement with Comcast. For citizens without cable, they may call the City Clerk at (360) 473-5323 to obtain a copy of the survey. Adam Brockus reported on his latest District 3 meeting held last Tuesday; announced his next District 3 meeting would be held Tuesday, February 28; and invited all Seahawk fans to attend the rally to be held Friday at 11:45 AM at the Roxy Theater. Brad GehrinG was pleased to see the Boy Scouts of America in attendance at the Council meeting tonight; discussed his attendance at the Kitsap Search & Rescue Explorers Annual Banquet and the City Legislative Action Conference in Olympia sponsored by the Association of Washington Cities; and reminded citizens to vote for the Bremerton School District Levy. 9A - EXECUTIVE SESSION ON "PENDING LITIGATION" t#AB06-027l: Cecil McConnell asked the Council members to convene for a 20-minute Executive Session to discuss ."Pending Litigation" at 6:35 PM. The Executive Session was extended for an additionaI10-minutes. The Council reconvened at 7:05 PM. City Council Reg. Mtg. Minutes Wednesday, February 1, 2006 Page 4 of 4 Council Member Adam Brockus recused himself from attending the Executive Session as well as from voting on the following action. 7:07:24 M/S/C/U (Maupin/Arends) Move to authorize the City Attorney to negotiate and settle Lassister vs. City of Bremerton, et al., United States District Court for the Western District of Washington Cause No. 3:05-CV 5320, for an amount within the City of Bremerton's Self-Insured Retention. Voted in favor of Motion: Priest, Shepherd, Arends, Maupin, Wofford, Gehring, McConnell Abstained: Robinson Motion carried: 7-Yes; 1-Abstention With no further business, the meeting of the City Council was adjourned at 7:08 PM. Prepared and Submitted by: ihzo ~ ) LORI SMITH Legislative Assistant Attest: PAULA JOHNSTON, City Clerk Cecil McConnell, City Council President CM/PJlls/cge DATE SUBMITIED: 2-1-06 BILL # Ofo-03D AGENDA BILL CITY OF BREMERTON CITY COUNCIL s-A ........................................................................................ SUBJECT: Purchase & Sale Agreement between the City ofBremerton and Hotel Conc~ts, Inc for the Sale of Old City Hall - 239 4 Street Committee Meeting Date: 2-1-06 COUNCIL MEETING Date: 2-8-06 Department: Economic Dev Presenter: Gary Sexton Phone: 473-5282 SUMMARY: Staff is recommending that the City sell Old City Hall- 239 4th Street to Hotel Concepts, Inc. for the total purchase price of $930,000, including earnest money, payable on closing. With the understanding that time is of the essence for this agreement, this sale shall be closed by January 31, 2007 or sooner. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): Receipt of sale proceeds of $930,000 upon closing. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: " /.. -..;" FISCAL/BUDGET'. :--/ )- L/' k;;'0l/~:- --7 ./ (/'"-,,,-_-""s.';. Y I -- ~ ....../~,~------- j) _2 \. i' i OPERATIONS: 1...-t::Z:L.-tJ.-t'J /:U.-PA.. ~/J COUNCIL PRESIDENT: .~? :- /K'r: ~ . / / ~.C'.!./ .~ ,..___~.-..L: /Lf RECOMMENDED MOTION: Move to approve the Real Estate Purchase and Sale Agreement with Earnest Money Provision between the City of Bremerton and Hotel Concepts, Inc. for the sale of Old City Hall- 239 4th Street for the purchase price of $930,000, including earnest money, and authorize the Mayor to execute the agreement in substantially the same form as presented. I CONSENT AGENDA 0 I COUNCIL ACTION: 0 Approve 0 Deny 0 Table o Continue 0 No Action -,.. .... !/'- REAL ESTATE PURCHASE AND SALE AGREEMENT WITH-EARNEST MONEY PROVISION This Agreement is entered between the CITY QF BREMERTON, a Washington municipal corporation, whose mailing address is 345 6th Street, Bremerton, Washington 98337, ("Seller"), and HOTEL CONCEPTS, INC., a Washington corporation, ("Buyer"), for the sale and purchase of real property as follows: ~ c..c.. k~$.1 ~ I l, 1. PROPERTY. The property, including all improvements and appurtenances situated thereon, which Buyer agrees to buy and Seller agrees. to sell, is commonly known to be located at 2394th Street, Bremerton, Washington (the "Property"), and which is legally described in Exhibit A, attached hereto and incorporated herein by this reference. A map indicating the location of the Property is also attached as Exhibit B, incorporated herein by this reference. 2. EARNEST MONEY. Received from Buyer, Fifty Thousand and No/100 Dollars ($50,000.00) as earnest money and part payment on the purchase price for the Property. 3. PURCHASE PRICE. The total purchase price for the Property is Nine Hundred Thirty Thousand and Noll 00 Dollars ($ 930,000.00), including earnest money, payable on closing. 4. CONTINGENCIES. This agreement is contingent upon: (a) Acceptance ofits terms by the Bremerton-City Council. (b) Buyers review and approval of the title report on the property prior to Closing. (c) Buyer obtaining a binding site plan approval for ~evelopment of hotel and extended stay apartments on t4e property within four (4) months from the date of mutual acceptance of this Agreement. (d) Abandonment of alley easements within the footprint of the new building site development plan as approved by the Seller. Abandonment shall occur prior to closing. (e) Written agreement between seller and Buyer regarding the cost of relocating the utilities from the vacated alleys on the property. The cost to Buyer to relocate the utilities shall not exceed $200,000.00. Said agreement shall be executed by Buyer no later than ten (10) days from the date of site plan approval. . Should any of these contingencies not be met prior to closing, then this Agreement shall terminate except neither Buyer nor Seller shall have any further ri~ts..-duties or obligations REAL ESTATE PURCHASE AND SALE AGREEMENT Page 1 of5 -I. '" !:/ REAL ESTATE PURCHASE AND SALE AGREEMENT WITH EARNEST MONEY PROVISION J, This Agreement is entered between the CITY qF BREMERTON, a Washington municipal corporation, whose mailing address is 345 6th Street, Bremerton, Washington 98337, ("Seller"), and HOTEL CONCEPTS, INC., a Washington corporation, ("Buyer"), for the sale and purchase of real property as follows: ~ C4. k~$.1~ · 1. PROPERTY. The property, including all improvements and appurtenances situated thereon, which Buyer agrees to buy and Seller agrees to sell, is commonly known to be located at 2394th Street, Bremerton, Washington (the "Property"), and which is legally described in Exhibit A, attached hereto and incorporated herein by this reference. A map indicating the location of the Property is also attached as Exhibit B, incorporated herein by this reference. 2. EARNEST MONEY. Received from Buyer, Fifty Thousand and No/IOO Dollars ($50,000.00) as earnest money and part payment on the purchase price f<?r the Property. ~ :"of' 3. PURCHASE PRICE. The total purchase price for the Property is Nine Hundred Thirty Thousand and NollQO Dollars ($ 930,000.00), including earnest money, payable on closing. 4. CONTINGENCIES. This agreement is contingent upon: (a) Acceptance of its terms by the Bremerton City Council. (b) Buyers review and approval of the title report' on the property prior to Closing. (c) Buyer obtaining a binding site plan approval for development of hotel and extended stay apartments on the property within four (4) months from the date of mutual acceptance of this Agreement. (d) Abandonment of alley easements within the footprint of the new building site development plan as approved by the Seller. Abandonment shall occur prior to closing. (e) Written agreement between seller and Buyer regarding the cost of relocating the utilities from the vacated alleys on the property. The cost to Buyer to relocate the utilities shall not exceed $200,000.00. Said agreement shall be executed by Buyer no later than ten (10) days from the date of site plan approval. Should any of these contingencies not be met prior to closing, then this Agreement shall terminate except neither Buyer nor Seller shall have any further rights, "duties or obligations REAL ESTATE PURCHASE AND SALE AGREEMENT Page 1 of 5 hereunder, except that the Earnest Money held in escrow shall be immediately returned to Buyer. 5. CONVEYANCE AND CONDITION OF TITLE. The title to the real property shall be conveyed by Seller to Buyer at closing by Statutory Warranty Deed, free and clear of all liens, encumbrances or defects except those described in Paragraph 6 below. 6. TITLE INSURANCE. At Closing, Seller shall cause Transnational Title Insurance Company, whose address and telephone number is , to issue a standard form owner's policy of title insurance to Buyer in an amount equal to the total purchase price of the Real Property, and insuring the Real Property be discharged by Seller shall be paid from Seller's funds at Closing. If an extended coverage owner's policy is requested by Buyer, then Buyer shall pay the increased costs associated with that policy including the excess premium over that charged for a standard coverage policy, and the cost of any survey required by the title insurer. For purposes of this Agreement, the following shall not be deemed encumbrances or defects: rights reserved and federal patents or state deeds; building or use restrictions consistent with current zoning, and utility and road easements of record. If title cannot be made so insurable prior to the Closing date called for herein, unless, Buyer elects to waive such defects or encumbrances, this agreement shall terminate. 7. 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 as applicable. 8. CLOSING OF THE SALE. With the understanding that time is of the essencefor this agreement, this sale shall be closed by January 31,2007 or sooner, at Buyers option, which shall also be the termination date of this agreement unless said closing date is extended in writing by mutual agreement of the parties. When notified, the Buyer and Seller will deposit, without delay, in escrow with Transnational Title Insurance Company all instruments and monies required to complete the transaction in accordance with this agreement. Closing, for the purpose of this agreement, is defined as the date that all documents are executed and the sale proceeds are available for disbursement to the Seller. 9. CASUALTY LOSS. If prior to closing, improvements on said premises shall be destroyed or materially damaged by fire or other casualty, this agreement, at option of the Buyer, shall become null and void. 10. POSSESSION. Buyer shall be entitled to possession on January 31, 2007. Seller may move up the date of transfer of possession upon thirty (30) days prior written notice, but in no event shall the transfer of possession occur earlier than the date of closing as provided in Paragraph 8 above. REAL ESTATE PURCHASE AND SALE AGREEMENT Page 2 of2 11. SELLER'S REPRESENTATIONS. Seller represents that: (a) Seller will maintain the property in present or better condition until time of agreed possession, (b) Seller has no knowledge or notice from any governmental agency of any violation oflaws relating to the subject property, and (c) the property is not encumbered by any leases. 12. SELLER'S ENVIRONMENTAL REPRESENTATIONS. Seller makes no representations as to the environmental condition of the property. This provision shall survive closing. 13. HOLD HARMLESS. As partial consideration for the purchase of the Property, Buyer purchases the property and improvements "as is" and agrees to hold the Seller harmless from any environmental condition or defect whether known or unknown. This provision shall survive closing. 14. DEFAULT AND ATTORNEY'S FEES. (a) Buyer's Default. If Buyer defaults hereunder, Seller's sole remedy. shall be limited to damages against Buyer in the liquidated amount of the earnest money previously paid the Buyer. Buyer and Seller intend that said amount constitutes liquidated damages so as to avoid other costs and expenses to either party in connection with potential litigation on account of Buyers' default. Buyer and Seller believe said amount to be a fair estimate of actual damages. (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 oflitigation to enforce any of the terms or provisions herein, each party shall pay all its own costs and attorney's fees. 15. NOTICE TO BUYER. This form contains provisions for an agreement for the purchase and sale of real estate. The Seller makes no warranty or representation of any kind that this form, or any of its provisions, is intended to meet the factual and legal requirements of a particular transaction, or that it accurately reflects that laws ofthe State of Washington at the time you enter the agreement. This agreement has significant legal and financial consequences. By signing this agreement, Buyer acknowledges that Buyer has or has had the opportunity to consult with an attorney regarding Buyers rights and obligations in this agreement. 16. BROKERS FEES/COMMISSIONS. Buyer agrees to indemnify, defend and hold harmless Seller with respect to any claim by any person or entity claiming through Buyer to be entitled to a commission with respect to the transaction contemplated by this agreement. REAL ESTATE PURCHASE AND SALE AGREEMENT Page 3 of3 17. 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. 18. 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, or by facsimile transmission addressed as set forth below: (a) All notices to be given to Seller shall be addressed as follows: Mayor City of Bremerton 345 6th Street, Suite 600 Bremerton, Washington 98337-1873 (b) All notices to be given to Buyer shall be addressed as follows: 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. 19. 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. 20. 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. 21. 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. 22. EXPIRATION OF OFFER. Buyer shall have only until 5:00 p.m. on , to accept the purchase and sale agreement as written, by delivering a signed copy thereofto the Seller or the Seller's agent. If Buyer does not so deliver a signed copy REAL EST ATE PURCHASE AND SALE AGREEMENT Page 4 of 4 within said period, this agreement shall lapse and all right of the parties hereunder shall terminate. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below. SELLER: BUYER: THE CITY OF BREMERTON HOTEL CONCEPTS, INC. By: Cary Bozeman, Mayor By: Its: Dated: Dated: By: Its: Dated: APPROVED AS TO FORM: By: Roger A. Lubovich, City Attorney R:\Legal\Files\Current Active Files\ City Hall Sale\REPSA-HoteIConceptslnc.doc REAL ESTATE PURCHASE AND SALE AGREEMENT Page 5 of5 ~~al~~.t~~~_~_u_rc:b.~~~_21lld__~~~e________ _ ___ _ __ _____ __n__ Agreement with Earnest Money Provision City of Bremerton & Hotel Concepts, Inc. EXlllBIT A Legal Description: Lots 14-15, Lots 22-27, Block 7, Plat of Bremerton Identity of the Property: This is a commercial building, parking garage and open parking lot, located between Fourth Street and Burwell Street, just West of Washington Avenue within the incorporated City limits of the City ofBremerton. The site address is 239 Fourth Street. Real Estate Purchase and Sale Agreement with Earnest Money Provision City of Bremerton & Hotel Concepts, Inc. 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