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HomeMy WebLinkAbout4444 +--------------------------------------------------------------------------+ 4=Browse: Next Previous First Last Update Delete Restart X - Exit 4= +Update current record 4= 4= 4= 4= 4=Vendor Name 4=subject '!"Department ==Status Code 4= + Comments MAINTAIN Contract Number 4444 Contract Transactions PORT BLAKELY COMMUNITIES EASTPARK ACQUISITION - PRE-PURCHASE ECON DEVEL PRO Insurance Type Amount VAULT 01/01/2006 4= 4= 4= 4= 08/04/2004 + 12/31/2004 -. 02/15/2006 SCOPE OF WORK Amount Begin Date End Date Review Date Insurance Total Insurance Review Date 4= 4= 4= $0.00 + - . 4= +--------------------------------------------------------------------------+ AGREEMENT BETWEEN THE CITY OF BREMERTON AND PORT BLAKELY COMMUNITIES This Agreement is made by and between PORT BLAKELY COMMUNITIES, whose mailing address is 1775 Twelfth Avenue, Issaquah, Washington 98027, ("Blakely"), and the CITY OF BREMERTON, a Washington municipal corporation, whose mailing address is 239 4th Street, Bremerton, Washington 98337 ("City"), for the site plan design of real property as follows: WHEREAS, The City is the owner of a parcel o£ property consisting of approximately 47 acres, legally described in Exhibit A; and WHEREAS, The City desires to see the property developed as an urban medium density residential (6 to 10 units per acre) with a sense of place and locality, quality construction, neighborhood amenities and landscaping, innovative design and respect £or the environment; and WHEREAS, Blakely has the background, experience and desire to perform due diligence, plan, design, and construct a residential development on the site; and WHEREAS, Blakely intends to sell lots to DR Horton ("Horton"), an experienced national homebuilder, to construct homes on the Property, and Horton will actively participate in the due diligence phases with Blakely; and WHEREAS, It is the City's desire to sell the property for re-development by Blakely pursuant to a design and capital improvement proposal acceptable to the City; and WHEREAS, Blakely and the City desire to set out due diligence procedures in this Agreement prior to the parties entering into a purchase and sale agreement £or the Property;. NOW, THEREFORE, THE PARTIES TO THIS AGREEMENT AGREE AS FOLLOWS: 1. PROPERTY. The property, consisting of approximately 47 acres o£ land with no st~-uctures or improvements situated thereon, commonly known as "Eastpark", is located o£f Wheaton Way l~remerton, Washington (the "Property"), and is legally described in Exhibit A, attached hereto and incorporated herein by this reference. EASTPARK / BLAKELY Page 1 of 8 2. COMMENCEMENT DATE. The commencement date of this Agreement is the last signature date appearing on the signature page of this Agreement ("Commencement Date"). 3. PRE-PURCHASE SCOPE OF WORK (DUE DILEGENCES) During the term of this Agreement, Blakely will perform or oversee due diligence including the follow tasks and sequence: A. PHASE I: (Thirty (30) days) CONCEPT LAYOUT AND ANALYSIS a) Retain necessary consultants and perform a Level 1 environmental assessment and determine if a Level 2 assessment should be performed in Phase II due diligence.. b) Perform a market analysis using Horton staff and/or consultants as deemed appropriate by Horton. c) Approve a Conceptual Layout prepared by Horton for site development, street improvements, utilities, streetscaping, and residential mixes and styles. Said Conceptual Layout will be used for Blakely's further due diligence analysis. d) Obtain and perform title review. e) Prior to completion of Phase I, Blakely will deliver to Gary Sexton, the City Authorized Representative, the Conceptual Layout for City initial comments. f) At the completion of Phase I and within 10 business days after receipt of the City's response, Blakely will give written notice to the City whether or not, based on its reasonable business judgment of the information obtained in the Phase I review, it desires to proceed to due diligence Phase II. The City may terminate the agreement if it disapproves the Conceptual Layout after giving Blakely 10 business days to respond to any changes (and the reasons therefore) requested in writing by the City to the Conceptual Layout. If the Blakely approves Phase I and the City approves the Conceptual Layout, then the parties will proceed to Phase II, which shall include: B. PHASE II: (Forty (40) days from mutual approval to proceed to Phase II) ECONOMIC AND TECHNICAL ANALYSIS Blakely will: a) Retain services and perform geotechnical testing, analysis, and assessment as Blakely deems appropriate and necessary. EASTPARK / BLA~ELY Page 2 of 8 b) Perform a Level 2 environmental assessment if determined appropriate or necessary by Blakely. c) Retain services and perform a site survey. d) Perform civil engineering as Blakely deems necessary and appropriate. e) Review and verify the City's appraised purchase price. f) Prior to completion of Phase II Blakely will provide the City Authorized Representative, with copies of all technical reports created in Phase II and a Schematic Site and Development Plan. Additionally, as a component of the Schematic Site and Development Plan, Blakely shall provide a phasing plan consisting of (a) a layout reflecting phased purchase of the Property which specifically delineates site area within each phase, not to exceed four (4) phases, (b) a proposed allocation of the total purchase price to each phase; and (c) a proposed schedule for phased closings within 30 days after final plat approval of each phase. The schedule will be based upon the estimated time needed for platting and other permits, as well as engineering and construction of infrastructure needed to obtain final plat approval, and the schedule will be subject to extensions for delay caused by strikes, utility company delays, permit delays or other events beyond Blakely's reasonable control. g) Blakely will propose a Development Agreement, under RCW 36.70B.170 et seq., to set forth the project envelope, SEPA determination, review procedures for permits, and the applicable development standards for the project to be developed by Blakely on the Property. h) At the completion of Phase II and within 10 business days after receipt of the City's response, Blakely will give written notice whether or not, based on its reasonable business judgment of the information obtained and the City's response in the Phase II review, it desires to proceed to due diligence Phase III. The City may terminate this Agreement if it disapproves the Schematic Site and Development Plan or Development Agreement after giving Blakely 10 business days to respond to any changes (and the reasons therefore) requested in writing by the City to that plan. If Blakely approves Phase II and the City approves the Schematic Site and Development Plan, then the parties will proceed to Phase III, which shall include: EASTPARK / BLAKELY Page 3 of 8 C. PHASE III: (Twenty (20) days from mutual approval to proceed to Phase III) FINAL ANALYSIS AND CITY REVIEW a) During Phase III, the City and City Council District Representative Daren Nygren shall review the Schematic Site and Development Plan and the proposed Development Agreement in such method and manner as the City deems necessary and appropriate. b) Prior to Completion of Phase III, Daren Nygren and the City Authorized Representative will meet with Blakely to review both parties' analysis, and comments. Blakely will review the financial feasibility of any City-requested changes. c) The City Council will hold a study session or other agreed review of the proposed Development Agreement. d) Upon completion of Phase III and within 10 business days after receipt of the City's response, Blakely will give written notice whether or not, based on its reasonable business judgment of the information obtained and the City's response in Phase III review, it desires to proceed to sign a Purchase and Sale Agreement. The City may terminate this Agreement if it disapproves the Schematic Site and Development Plan or the Development Agreement after giving Blakely 10 business days to respond to any changes (and the reasons therefore) requested in writing by the City to that plan. D. TERMINATION - PARTIES' RIGHTS AND OBLIGATIONS. In the event of termination of this agreement by either party during any phase as provided in this Section 3, each party shall be responsible for its own costs and expenses incurred in performance under this agreement. By entering into this agreement, neither party is obligated to pursue the purchase and sale of the Property except as provided herein. Any sale of the Property by the City to Blakely is subject to the execution of a Purchase and Sale Agreement by the parties and City Council approval. 4. MODIFICATION: Upon joint written agreement, signed by the respective Authorized Representatives, the scope of work and/or time allowances provided herein may be modified. EASTPARK / BLAKELY Page 4 of 8 5. PURCHASE AND SALE: If the parties jointly agree to proceed after Phase III, a Purchase and Sale Agreement ("PSA") will be entered into that will include and incorporate the following items: a) Purchase Price: The purchase price shall be the city appraised purchase price of Three Million Nine Hundred Twenty One Thousand Dollars ($3,921,000) unless the parties should otherwise agree i. Blakely will pay an initial down payment to the City in the sum of Two Hundred Fifty Thousand Dollars ($250,000) at the time of signing of the PSA. ii. At the closing of each Phase, Blakely will pay the portion of the purchase price for each phase consistent with the phasing plan approved as part of the final Schematic Site and Development Plan approved by the City. Blakely will have the right to adjust the size and configuration of any phase from the phase layout in the Schematic Site and Development Plan, with a corresponding adjustment in the allocable purchase price for that phase. However, no Phase will be less than 20% of the acreage of the Property without City approval nor have a material adverse impact on the access to or the market value of the other portions of the Property iii. At Blakely's sole discretion the pumhase dates may be accelerated. iv. Upon payment by Blakely of each respective phased purchase price, the City shall deliver a deed and sign all necessary documents to accomplish title transfer for the agreed phase property. b) Development Agreement. The PSA will be conditioned on the approval and signing of the Development Agreement as provided in Section 7 below. 6. STREETS, UTILITY AND PROJECT ENTRY CONSTRUCTION The PSA also will include provisions related to the following: a) The installation of streets, utilities, and project entry shall be in accordance with the Schematic Site and Development Plan as agreed upon at the end of Phase III above and incorporated into the PSA, except as may be otherwise modified in writing between the parties. EASTPARK / BLAKELY Page 5 of 8 b) The parties anticipate that the streets, utilities and project entry construction will occur in not more than two phases (which do not need to be consecutive phases), but the final timing will be set forth in the Schematic Site and Development Plan, or as otherwise agreed by the parties. At Blakely's request, the City will sign and record easements and other related documents to allow Blakely's grading, site access, construction of roads, utilities, storm water facilities, signage, and other infrastructure or improvements on portions of the Property not yet conveyed to Blakely. The City will accept streets and utilities as normal under its platting process, and closing of each phase will occur after final plat recording. 7. DEVELOPMENT AGREEMENT. The City Council will hold a hearing and make a decision on the proposed Development Agreement. If the City approves the Development Agreement, then the City and Blakely will sign the Development Agreement concurrently with signing the PSA. 8. ADDITIONAL TERMS a) Blakely and Horton and its agents, subcontractors and consultants shall have the fight to enter on the Property to conduct such inspections, studies, reports, tests and/or surveys as Blakely deems reasonably necessary or desirable to undertake Blakely's due diligence activities and to formulate and complete the Schematic Site and Development Proposal. In the event Blakely's testing requires soil borings, digging, trenching or other disturbance of the site, Blakely will restore the site to a substantially similar condition as existed prior to such testing. Blakely shall indemnify and hold the City harmless from all claims and liabilities arising fi.om exercise of Blakely's entry rights. b) Conveyance by the City to Blakely shall be by statutory warranty deed, subject only to the "Permitted Exceptions" described below. c) The purchase price for the property may be paid with in-kind real property acceptable to the City in its sole discretion. d) The sale of the property to Blakely, being a negotiated sale pursuant to BMC 2.78.030(e)(1), shall be subject to final approval of the City Council. This approval shall occur at completion of Phase III and signing of the Purchase and Sale Agreement. EASTPARK / BLAKELY Page 6 of 8 e) INDEMNIFICATION. Each party participating in this Agreement shall defend, indemnify and hold the other party participating in this Agreement, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the party's intentional acts and negligence in its performance under this Agreement. The provisions o£this section shall survive the expiration or termination of this Agreement. f) GOVERNING LAW. This agreement shall be governed and construed in accordance with the laws of the State of Washington. If any dispute arises between the City and Blakely under any of the provisions of this agreement, resolution of that dispute shall be available only through the jurisdiction, venue and rules o£the Kitsap County Superior Court, Kitsap County, Washington. g) ATTORNEY'S FEES. In any claim or lawsuit for damages arising from the parties' performance of this agreement, each party shall be responsible for payment of its own legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit. h) WRITTEN NOTICE. All communications regarding this agreement shall be sent to the parties' Authorized Representative at the addresses listed below, unless otherwise notified. Developer City of Bremerton Blakely 239 4th Street 1775 Twelfth Avenue, Suite 101 Bremerton, Washington 98337 Issaquah, WA 98027 360-478-5282 Authorized Representative Authorized Representative ELIZABETH WILSON GARY SEXTON Any written notice shall become effective upon delivery, but in any event three (3) calendar days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement. i) ASSIGNMENT. Any assignment of this agreement without the written consent of the City shall be void. j) MODIFICATION. No waiver, alteration, or modification of any of the provisions of this agreement shall be binding unless in writing and signed by a duly Authorized Representative of the parties. EASTPARK / BLAKELY Page 7 of 8 k) SEVERABILITY. If any one or more sections, sub-sections, or sentences of this agreement are held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this Agreement and the remainder shall remain in full force and effect. 1) ENTIRE AGREEMENT. The written provisions and terms of this Agreement shall supersede all prior verbal statements of any officer or other representative of any of the participating entities, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. The entire agreement between the parties with respect to the subject matter hereunder is contained in this Agreement. m) DUPLICATE ORIGINALS. This Agreement may be executed in duplicate original. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below. PORT BLAKELY COMMUNITIES CITY ~BRE/M~.TON By: By: Cary Bozeman Its: PrL'sidknt / Its: Mayor DATE: ~-~ .- 0~ DATE: ,~- EASTPARK / BLAKELY Page 8 of 8 · .. 0~/2~/200~1 'IE~: ~7 l~E, 0d7~§B50 KCCH~ P~GE FXHIBIT "~" ORDER NO.: 32071827 PARCEL I: THAT PORTION OF PLAT OF UNITED STATES NAVY YARD ADDITION TO BREMERTON ACCORDING TO PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 63 AND THAT PORTION OF BLOCKS 31 AND 32, C.D, HILLMAN'S NAVY YARD ADDITION TO BREMERTON ACCORDING TO PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 129, IN KrTSAP COUNTY, WASHINGTON, CONDEMNED IN UNITED STATES DISTRICT COURT, WESTERN DISTRICT CASE NO. 347, DESCRIBED AS FOLLOWS: BEGINNING AT A FOUND 3" BRASS DISC MONUMENT AT THE CENTER OF SECTION 12, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTON, SAID CENTER OF SAID SECTION 12 BEING APPROXIMATELY AT THE INTERSECTION OF THE CENTERLJNES OF SCHLEY BOULEVARD AND TWELFTH AVENUE; THENCE FROM SAID TRUE POINT OF BEGINNING SOUTH 89'00'16' EAST A DISTANCE OF 2s0.66 FEET TO FOUND 7' DIAMJSTER CONCRETE MONUMENT; THENCE SOUTH 02o01'2S" WEST A DISTANCE OF 314.09 FEET TO A STANDARD BERNTSEN MONUMENT; THENCE SOUTH 02°01'25· WEST A DISTANCE OF 575.25 FEET TO A STANDARD BERNTSEN MONUMENT; THENCE SOUTH 0'~°01'2S" WEST A DISTANCE OF 410.12 FEET TO A STANDARD B'ERNTSEN MONUMENT; THENCE NORTH 88°27'57" W~.ST A DISTANCE OF 260.83 FEET TO A STANDARD BERNTSEN MONUMENT; THENCE SOUTH 02° 01'25" WEST A DISTANCE OF 2S0.04 FEET TO A STANDARD BERN'I'SEN MONUMENT; THENCE N()RTH 97°88'35" WEST A DISTANCE OF 139.90 FEET TO A STANDARD BERNTSEN MONOMENT; THENCE NORTH 29°44'22" WEST A DISTANCE OF 77.03 FEET TO A STANDARD BERNTSEN MONUMENT SET 1.0 FOOT BACK OF EDGE OF SIDEWALK; THENCE ALONG A CURVE WITH A RADIAL BEARING OF NORTH 29'44'2Z' WEST A RADIUS OF 427.72 FEETA DELTA ANGLE OF 08'28'14" AND AN ARC LENGTH OF 63.23 FEET; THENCE SOUTH 68'43'$2' WEST A DISTANCE OF 216,26 FEET; THENCE ALONG A CURVE WITH A RADIAL BEARING OF SOUTH 21 o 18'0s" EAST A RADIUS OF 431.31 FEET A DELTA ANGLE OF 36° 22'15" AND AN ARC LENGTH OF 273.79 FEET; THENCE ALONG A CURVE WITH A RADIAL BEARING OF SOUTH 5'?~38'23· EAST A RADIUS OF Ss1.80 FEET A DELTA ANGLE OF 20°00'17" AND AN ARC LENGTH OF 227.47 FEET; THENCE SOUTH I 2 ° 21 '20" WEST A DISTANCE OF 105.56 FEET; TH ENCE ALONG A CURVE WITH A RADIAL BEARINJ3 OF SOUTH 77°40'53- EAST A RADIUS OF 461.80 FEET A DELTA ANGLE OF 26°-~;4'49· AND AN ARC LENGTH OF 218.78 FEET; THENCE SOUTH 14°33'28" EAST A DISTANCE OF ';'2,06 FEET; THENCE ALONG A CURVE WITH A RADIAL BEARING OF NORTH 75 ~26'32' EAST A RADIUS OF 48.65 FEET A DELTA ANGLE OF 52°18'50'' AND AN ARC LENGTH OF 44,42 FEET; THENCE SOUTH 23°05'29· WEST A DISTANCE OF 43.21 FEET; THENCE SOUTH 42°16'27' WE'.3T A DISTANCE OF S7.94 FEET; THENCE NORTH 46'43'S3" WEST A DISTANCE OF 336.S0 FEET; THENCE NORTH O2°0O'24" EAST A DISTANCE OF 343.00 FEET TO A STANDARD BERN'~'SEN MONUMENT; THENCE NORTH 02°00'24" EAST A DISTANCE OF 598.62 FEET TO A STAN£)ARb BERNTSEN MONUMENT; THENCE NORTH 02°22'13'. EAST A DISTANCE OF 314.04 FEET TO A STANDARD BERNTSEN MONUMENT; THENCE NORTH 02°22'13" E~ST A DISTANCE OF 3~6,49 FEET TO A STANDARD BERNTSEN MONUMENT; THENCE NORTH 02"22'1:~' EAST A DISTANCE OF 538.06 FEET TO A STANDARD BERNTSEN MONUMENT; THENCE SOUTH 89'00'33" EAST A DISTANCE OF S99.00 FEET TO A STANDARD BERNTSEN MONUMENT; THENCE SOUTH $9° 00'33" EAST A DISTANCE OF 373.17 FEET TO A FOUND 3" BRASS DISC MONUMENT AND THE TRUE POINT OF BEGINNING. · . . THIS LEGAL DESCRIPTION CONTINUES ON THE NES(T PAGE... 06/2~3/2OO~ ].6~47 13B0473~8~0 KCCHA P;~GE 02 EXHIBIT "A" Continued Order No.: '~2071827 PARCEL I1: THAT PORTION OF SECTION 12, TOWNSHIP 24 NORTH, RANGE 1 EAST, DESCRIBED AB FO[LOWS: BEGINNING AT A CONCRETE MONUMENT AT THE CENTER OF SECTION 12, TO~IfNSHIP 24 NORTH, RANGE 1 EAST, W.M., IN KI'I~AP COUNTY, WASHINGTON; THENCE NORTH WES7 1285.81 FEET TO A CONCR~.~- MONUMENT AND TRUE POINT OF BEGINNING; THENCE SOUTH 1 o59'40" WEST 1970.21 FEET TO A POINT ON THE NORTHERLY BOUNDARY OF STATE SECONDARY HIGHWAY NO. 303; THENCE ALONG SAID NORTHERLY BOUNDARY OF STATE SECONDARY HIGHWAY 303 SOUTH 48.41'40" EAST 426.02 FEET; THENCE NORTH ! ' SS'4IY' F.A~T 2256.79 FEET; THENCE NORTH 89 °00'48" WEST 320.08 FEET TO A CONCRETE MONUMENT AND TRUE POINT OF BEGINNING. · , · END OF EXHIBIT 'A"... Page