Loading...
HomeMy WebLinkAboutKISS N RIDE KISS N RIDE EASEMENT AND LICENSE AGREEMENT THIS AGREEMENT is made as of the 23f('iklay of ]tic y ,2004 by and between KITSAP COMMUNITY FEDERAL CREDIT UNION ("Grantor"), and KITSAP TRANSIT ("Transit"), a Washington Municipal Corporation and CITY OF BREMERTON ("City"), a Municipal Corporation. Collectively, Transit and the City shall be referred to as Grantees. 1. Easement And License Grant. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, Grantor grants, conveys and warrants to Grantees a perpetual easement and license (the "Easement") on that portion of Grantor's Property (the "Easement Area") described in Section 2 below for the purposes set forth in Section 3. 2. Easement Area. The Easement Area consists of the following: a. Exclusive Area. That portion of Grantor's Property that extends 2 feet below and 12'6" above the existing surface of the Property described in Exhibit 1 (hereinafter, the "Exclusive Area"); and b. Common Areas. That portion of Grantor's Property described in Exhibit 2 (hereinafter, the "Common Areas"). 3. Purposes. 3.1 Exclusive Area. Grantees shall have the right to use, maintain, improve and enjoy the Exclusive Area for vehicular passenger loading, unloading and waiting. It is the parties intent that the Exclusive Area be used by the public to drop off and pick up ferry passengers. Hereafter, such use shall be referred to as "Kiss N Ride Use". However, subject to the provisions of Sections 8 and 9, the Grantees may use the Exclusive Area for any lawful use. 3.2 Common Areas. Grantees shall have the right to use the Common Areas in common with Grantor for vehicular and pedestrian ingress and egress. 4. Title Warranties. In conveying the Easement, it is intended that Grantor is providing all the title warranties encompassed within a statutory warranty deed under Washington law, subject only to the Permitted Title Exceptions set forth in Exhibit 3. Subject to the terms of this Agreement, Grantees shall have the full use and quiet enjoyment of the Exclusive Area and maintain exclusive control, dominion and possession thereof. 5. Grantor's Reserved Rights/Restrictions. Grantor has constructed (or is constructing) a subsurface parking garage below the Exclusive Area and Common KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 1 of 9 (7 -8-04) Area and reserves all subsurface rights associated with the maintenance, operation, repair and improvement of the underground parking garage, provided, in exercising and using its subsurface rights, Grantor shall not interfere with or impair Grantees' right to use, enjoy and maintain the surface area of the Easement Area for the purposes set forth in Section 3, or undertake or suffer any act, event or activity that would damage any improvement on the Exclusive Area. It is contemplated that Grantees may install underground utilities or other improvements below the existing surface of the Exclusive Area; however, Grantees shall make no subsurface improvements or undertake any activities that would damage, disrupt, impair or interfere with Grantor's underground parking garage. Excluding lighting poles, Grantee shall not have the right to erect, construct, place or maintain any improvement, object or structure on or over the Exclusive Area that exceeds 12 feet 6 inches in height as measured from the existing completed and constructed "as built" grade level of the Exclusive Area. Above the Exclusive Area, Grantor reserves all air rights, including the right to construct improvements, so long as such improvements are not constructed or used in a manner that would pose a material risk of damage, injury, disruption, impairment or interferment with Grantee's use and enjoyment of the Exclusive Area. 6. Maintenance. That portion of the Grantor's Property described in Exhibit 4 shall hereafter be referred to as the "Maintenance Area". The Maintenance Area includes the Exclusive Area, the Common Areas and surface level parking area associated with an office building on Grantor's Property. The Maintenance Area excludes Grantor's underground parking garage. So long as the Maintenance Area is used for vehicular and pedestrian parking, ingress and egress, loading, unloading, holding and/or waiting, the Maintenance Area shall be maintained by the parties in accordance with the Maintenance Standards set forth in Section 7 in the following shares: KCFCU: Transit: City: 50% 25% 25% 7. Maintenance Standards. The Maintenance Area shall be maintained in accordance with the following: a. The surface of all vehicular parking areas and drive aisles shall be maintained with asphalt or concrete, kept free of pot holes, debris and obstructions, and periodically sealed, re-stripped and/or resurfaced so as to keep these areas in a professionally clean, neat, attractive and damage-free condition. KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 2 of 9 (7-8-04) b. Sidewalks, curbs and gutters shall be concrete and kept in a professionally clean, neat, attractive and damage-free condition and to the standards of the City. c. Sidewalks, parking areas and drive aisles shall be kept free of litter, debris, snow and ice. d. Landscaping planters shall be maintained and all vegetation properly watered, trimmed, weeded, thinned, pruned and maintained in an attractive appearance. 8. Grantor's Re-Purchase/Extinguishment Rights. 8.1 When A vailable. In the event Grantees propose to convert the use of the Exclusive Area to a use or purpose other than Kiss N Ride Use (the "Changed Use"), Grantees shall provide written notice to Grantor (the "Conversion Notice"). The Conversion Notice shall specify the proposed Changed Use. For a period of 45 days from the date of Grantees' Conversion Notice, Grantor shall have the right to re-purchase Grantees' Easement, terminate this Agreement and extinguish all of Grantees' rights hereunder in accordance with the provisions of this Section 8, by transmitting written notice (the "Purchase Notice") to Grantees. In the event Grantor fails to timely transmit the Purchase Notice, grantees shall have the right to use the Exclusive Area for the Changed Use specified in the Conversion Notice (and continue to use the Common Areas for the purposes described in Section 3.2). 8.2 Purchase Price. Grantor's Purchase Notice shall specify a proposed purchase price. Grantees shall have 30 days from the Purchase Notice to accept Grantor's proposed purchase price or elect to cause the purchase price to be established by independent appraisal by transmitting written notice (the "Response Notice") to Grantor. If Grantees fail to timely transmit a Response Notice, Grantees shall be deemed to have accepted Grantor's proposed purchase price. 8.3 Appraisal. If Grantees have timely transmitted a Response Notice requesting an appraisal, the property shall be appraised by an MAl appraisal. If the parties are unable to agree on an appraiser, Grantor, the City and Transit shall each designate an MAl Appraiser and the three appraisers shall establish the purchase price. The decision of a majority of said three appraisers shall be binding on the parties. 8.4 Closing. Not later than 30 days after the Purchase Price has been established, Grantor shall pay the Purchase Price to Grantees, in cash. Concurrently therewith, Grantees shall execute an Easement Extinguishment document in a recordable form designated by Grantor's KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 3 of 9 (7-8-04) title insurer fully terminating this Agreement and extinguishing Grantees' rights hereunder. 8.5 Miscellaneous. In the event Grantor fails to exercise its re-purchase rights under this Section 8, as to the Changed Use specified in the Conversion Notice, Grantor's re-purchase rights shall continue as to any other subsequent proposed Changed Use. 9. Grantor's Right Of First Refusal. In the event Grantees propose to sell Grantee's Easements right for any valuable consideration and receive a bona fide offer for the purchase thereof (the "Purchase Offer") from any third party (the "Intended Purchaser"), before accepting such offer, Grantees shall provide written notice (the "Offer Notice") to Grantor, together with a copy of the Intended Purchaser's Purchase Offer. For a period of 20 days from the date of the Offer Notice, Grantor shall have the exclusive right to purchase Grantees' Easement rights for the price and on the terms set forth in the Intended Purchaser's Purchase Offer, by transmitting written notice (the "Acceptance Notice") to Grantees. In the event Grantor fails to timely transmit the Acceptance Notice, Grantees shall be free to accept the Intended Purchaser's Purchase Offer and consummate the sale of Grantee's Easement rights on the terms of or substantially equivalent terms of such Purchase Offer, in which case, the provisions of Sections 8 and 9 of this Agreement shall automatically terminate. In the event, however, such proposed sale by Grantee to such Intended Purchaser is not actually consummated, Grantor's first refusal rights shall continue as to any new Purchase Offer from any Intended Purchaser. In the event Grantor timely transmits the Acceptance Notice, Grantor shall promptly purchase Grantees' Easement rights on the terms and within the time set forth in the Intended Purchaser's Purchase Offer. The provisions of this Section 9 do not apply as to a transfer solely between the City and Transit to each other, or to Grantees' transfer to another unit of government. 10. Indemnification Obligations. 10.1 By Grantor. Grantor shall save, defend, indemnify and hold Grantees harmless from all damages, liabilities, obligations, claims and demands pertaining to or arising from Grantor's ownership, maintenance, use and operation of all of Grantor's Property and the conduct of Grantor's business thereon, excluding Grantees' use of and/or exercise of Grantee's Easement rights. 10.2 By Grantees. Grantees shall save, defend, indemnify and hold Grantor harmless from all damages, liabilities, obligations, claims and demands pertaining to or arising from Grantees use of or exercise of Grantees' KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 4 of 9 (7 -8-04) Easement rights, unless caused by Grantor or its agents, employees or customers. 11. No Public Dedication. The transaction set forth in this Agreement is intended to operate as a grant of an easement and license in accordance with the terms hereof and is not intended as a public dedication. 12. Binding Effect. This Agreement shall bind and inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns. All the provisions of this Agreement shall constitute running covenants that run with the land. 13. Termination Or Transfer Of Interest. In the event this Agreement is terminated in accordance with the provisions of this Agreement, neither party shall have further obligations hereunder. In the event one party transfer its interests in this Agreement to a third party, the transferring party shall be relieved of all further obligations hereunder and the transferee shall assume all the obligations of the transferor. 14. Arbitration. In the event any dispute arises under this Agreement, such dispute shall be settled by binding arbitration. Such arbitration shall be before one disinterested arbitrator if one can be agreed upon, otherwise before three disinterested arbitrators, one named by Grantor and one by Grantees, and one by the two thus chosen; provided, that if said two arbitrators cannot agree upon a third arbitrator within 15 days, then said third arbitrator shall be appointed by the Presiding Judge of Kitsap County Superior Court upon motion of either party. A "disinterested arbitrator" shall be a person who shall not have a direct or indirect financial interest in the decisions to be made by the board of arbitrators and who shall not be an officer, director, employee or agent of any party. The arbitrator or arbitrators shall determine the controversy in accordance with the laws of the State of Washington as applied to the facts found by him, her or them, and in accordance with the rules of Mandatory Arbitration Rules. If the arbitration is conducted by a panel of three arbitrators, a majority decision of the three shall constitute the binding final and conclusive award. All arbitration proceedings hereunder shall be conducted in Kitsap County, Washington. The appointment of arbitrators shall be signified in writing by each party to the other. If one party shall fail to so appoint an arbitrator for a period of 15 days after written notice from the other party to make such appointment, then the arbitrator appointed by the party who has made such appointment shall serve as the arbitrator. The award of the arbitrator or arbitrators shall be binding, final and conclusive on the parties, and judgment on such award rendered in any court having jurisdiction thereof. Fees of the arbitrator or arbitrators and the expenses incident to the proceeding shall be borne one-half by Grantor and one-half by Grantees, provided the substantially prevailing party in any such proceeding shall be entitled to an award of and to recover its costs and expenses incurred, including reasonable attorney's fees, and its share of the fees of the arbitrator(s). KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 5 of 9 (7-8-04) 15. Notices. Any notices required in accordance with any of the provisions herein or desired to be given hereunder to be given either party shall be delivered personally or, if mailed, then mailed by registered or certified mail or via a nationally recognized overnight delivery service and addressed to such party at the address set forth below. Notices shall be deemed given when delivered, if delivered personally, or three (3) business days after deposit in the United States mail as set forth above. KCFCU: Kitsap Community Federal Credit Union President 1025 Burwell Street Bremerton, W A 98337 Fax # Email: Kitsap Transit: Executive Director Kitsap Transit 200 Charleston Blvd. Bremerton, WA 98312 Fax #478-0140 Email: cathiekb@kitsaptransit.com With Copy to: General Counsel Kitsap Transit 200 Charleston Blvd. Bremerton, WA 98312 City of Bremerton: Director of Economic Development City of Bremerton 239 4th Street Bremerton, W A 98337 Fax #473-5282 Email:gsexton@ci.bremerton.wa.us With Copy to: Bremerton City Attorney 239 4th Street Bremerton, W A 98337 Fax #478-5161 Email:rlubovich@ci.bremerton.wa.us 16. Miscellaneous Provisions. 16.1 Corporate Authority. Each individual executing this Agreement on behalf of said corporation, except for the Mayor of the City of Bremerton who's signature is conditioned upon subsequent final acceptance and approval by KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 6 of 9 (7-8-04) the Bremerton City Council, represents and warrants that he is duly authorized to execute and deliver this Agreement on behalf of said corporation, in accordance with a duly adopted resolution of the board of directors of said corporation authorizing and consenting to this Agreement; authorizing the specific officers signing this Agreement to execute, acknowledge and deliver the same without the consent of any other officer or officers; resolving that such action and execution is in accordance with the bylaws of said corporation; and resolving that this Agreement is binding upon said corporation in accordance with its terms. 16.2 Choice Of Law. This Agreement shall be governed by the laws of the State of Washington and in the event any action is instituted on account of this Agreement, the venue of any such action shall lie exclusively in the state Courts for Kitsap County, Washington. 16.3 Excluding the guaranty set forth in Section 7 of the Agreement For Purchase Of Kiss N Ride Easement dated JulyZil;~004, this Agreement contains all of the oral and written agreements and understandings, correspondence, representations and statements of the parties hereto with respect to the Easement, and no prior matters shall be effective for any purpose. No provision of this Agreement may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Agreement shall not be effective or binding on any party until fully executed by both parties hereto. 16.4 Partial Invalidity. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstance is, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 16.5 Negotiation; Representation And Construction. This Agreement and each of its terms and provisions are deemed to have been explicitly negotiated between the parties, and the language in all parts of this Agreement will, in all cases, be construed according to its fair meaning and not strictly for or against either party. Prior to signing this Agreement, each party was represented by independent legal counsel. IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the day and year first above set forth. KCFCU KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 7 of 9 (7-8-04) U.'-' ,-;-/ Ili",/ / By ~ewj c <-,/ \. ELLIOT GREGG, Presi KITSAP TRANSIT cutive Director CITY OF BREMERTON Bye~ Its /JJ r}- 'J b~ ") STATE OF WASHINGTON) : ss. COUNTY OF KITSAP ) I hereby certify that I know or have satisfactory evidence that ELLIOT GREGG is the person who appeared before me, and said person ackowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the President of KITSAP COMMUNITY FEDERAL CREDIT UNION to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Residing at: My appointment expires: Print Name Dated: '7-23- t)<f STATE OF WASHINGTON) : ss. COUNTY OF KITSAP ) I hereby certify that I know or have satisfactory evidence that RICHARD HAYES is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the Executive Director of KITSAP TRANSIT to be the free and KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 8 of 9 (7-8-04) , , . voluntary act of such party for the uses and purposes mentioned in this instrument. & I ,/} '-,,- 4~!f~ .' (, Notary Pu. blic in and for the State of~~ vi '. <---J ~ " ..-, " ,," L.J ' , I p) L.J -' - .It,t..:,,, ........"...,"'",\ Print Name _---;. 'f..~~.~-.~F/O;;;.., :_~v,"ss\ON i:~.. ~ Ij :: ~-..'~ 1~'.. ~ f(j~ /t ~OTAAy ~\ Q ".0 (fl. -' : O'P.-- : " . . " . ,.., r . ~ '. ""'UBL\V : < " <.1\ ... ." 0 I "" . c:.' " " "'9)-, .....8-5-0-~.... 0- .: I" ~ ........ .>.,\~ _- 'II OF WASP ~~.., I hereby certify that I know or have satisfactory evidence tha~~~ thell\\\\"'............"'....... person who appeared before me, and said person acknowledged that hel e signed this instrument, on oath st ed that helshe is authorized to execute the instrument and acknowledged it as the of CITY OF BREMERTON to be the free and voluntary act of such pa y t r the uses and purposes mentioned in this instrument. Dated: ~I T3 h~LI Residing at: f D'l.-f-O n/ACttC;t My appointment expires: r/51"'S STATE OF WASHINGTON) : ss. COUNTY OF KITSAP ) Dated: 7- cJ,J- 0'1 Residing at:a~(J.r.(JY1) My appointment expires:.s::t5-0& G-'A~~. ~~Adt Notary P lic in nd for the Stat fWashington r -A f'~y~ I J...,. 1-1 f? VI YJ Print Na e KISS N RIDE EASEMENT AND LICENSE AGREEMENT - Page 9 of 9 (7-8-04) Exhibits Legal Description - Credit Union Property * Exhibit 1 of Purchase Agreement Site Plan * Exhibit 2 of the Purchase Agreement * Exhibits 1 and 2 of Easement Agreement Title Exceptions - none * Exhibit 3 of Purchase Agreement * Exhibit 3 of Easement Agreement ( FROM :MATTY&TEMPLETON Office File No.: E-164141 Description: FAX NO. :3606921257 Aug. 13 2004 01:53PM P2 EXHIBIT "1 I' LOT(S) 8 THROUGH 18, INCLUSNE, BLOCK 9, TOWN OF BREMERTON, ACCORDING TO THE PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE(S) 30, RECORDS OF KlTSAP COUNTY, vV ASHINGTQN. FROM ./ r' / ;' : MRTTY8,TEf1PLETON FRX NO. :3606921257 E.~~:~1 :l ~o~h S,Lt.. p~ Kw"'; R:u... L l 'sa ;... l~ ~ :z " @)I go..: dW'llll. Av"c...a... .......... ~"'QJ'\ ,4Iu. LJ II, ~:I KCU CORPORATE HEAD QUARTERS I ~ 78 I ~j " " . 1<l~3p C~dlt Union I3rltmt!!rtcn. W<l~h'n9t"n RU':J. 13 2004 01:53PM P3 I l~ I. ,', i'~ :- r ' , I\.~ r~, >~'\ I. . I' . , r f I'. I. I . I. i , . , . . I :: . hi,' I --, , m f i... ,'. I <;~\) '\ ...., " \, ". . ". . -,.'\ \. " '''. .. ". '-.~ '.......... "" '" ' . 1::: ....,. .... . -~"'" ", .......~.: :' "~.. <. \>, '\ " . " .......~ ~. "'" ''-...,~~ I J !ll~ ~j~~ ~ filii ~ ; · FROM': MRTTY& TE~1PLETO~~ FRX I'H : 3606921257 Rug. 13 2004 01:53PM P4 EXHIBIT 3 TITLE EXCEPTIONS None AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT THIS AGREEMENT is made as of the"2S tZOday of:}/-;{ L~ ' 2004 by and between the City of Bremerton, a Municipal Corporation ("City"); SAP TRANSIT, a Washington Municipal Corporation ("Transit") and KlTSAP COMMUNITY FEDERAL CREDIT UNION ("KCFCU"). SECTION ONE Recitals 1.1 KCFCU has acquired certain property (the "Property") located at the corner of Washington Avenue and Second Avenue in Bremerton, legally described in Exhibit 1 hereto, on which it intends to develop an office building and corporate headquarters (the "KCFCU Project"). As part of the KCFCU Project, KCFCU desires to build an underground parking garage beneath the Property and certain ground level parking, landscaping and drive aisle improvements. As part of the KCFCU Project, KCFCU has acquired certain abutting property, part of which it will use to access KCFCU's underground parking garage. 1.2 KCFCU proposes to construct a portion of its proposed underground parking garage below the south 12 feet of the Second Street right-of-way abutting the Property, which portion shall hereafter be referred to as the Second Avenue Subsurface Right-Of-Way and specifically means the area of land beginning 2 feet below the existing surface and extending 21 feet below the existing surface of the portion of the Second Avenue right-of-way abutting and north of Lots 8 through 18 inclusive, Block 9, Town of Bremerton, according to Plat recorded in Volume 2 of Plats, page 30, records of Kitsap County, Washington (the "Property"), a distance of 12 feet 0 inches from the north boundary of the Property. 1.3 City and Transit desire the right to use part of the Property for vehicular dropping off and picking up ferry passengers, hereafter referred to as the "Kiss N Ride Area". The "Kiss N Ride Area" is depicted on the rough site plan attached as Exhibit 2. 1.4 KCFCU is, with the assistance of its architect, Rice, Fergus & Miller, and its developer, Opus NW, LLC, designing a preliminary site plan (the "Preliminary Plan") for the completion of the KCFCU Project which includes the improvements to the Kiss N Ride Area necessary for use by City and Transit. SECTION TWO Substantive Terms 2.1 Preliminary Plans. Not later than June 30, 2004, KCFCU will deliver to Transit and the City, for their review and approval, the Preliminary Plan for the AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT - Page 1 of 7 (7-8-04) completion of the KCFCU Project. The Preliminary Plan will identify the approximate location of the Kiss N Ride Area and Improvements and the Second Avenue Subsurface Easement. This Agreement is subject to the City's and ~~ Transit's written approval of the Preliminary Plan. If the City and Transit do not provide such written approval byJuly 15,2004, this Agreement shall terminate. ....., "; 4c- Apf>J2..0YED X Q,Y lii'}:~t' 2.2 City Approvals. Not later than August 30, 2004, the City shall procure the written approval of the City's City Council to the terms of this Agreement and lawfully vacate the Second Avenue Subsurface Right-Of-Way. If such approvals (the "Legislative Approvals") are not procured by said date, any party may terminate this Agreement. 2.3 Final Plans. Once the City and Transit have approved the Preliminary Plan and procured the Legislative Approvals in accordance with the provisions of Sections 2.1 and 2.2, KCFCU will, at its sole cost and expense, and with the assistance of its Architect and Developer, prepare final plans and specifications (the "Final Plans") for the completion of the KCFCU Project. KCFCU and its Architect and Developer will (a) seek the input of the City and Transit to insure the Kiss N Ride Area is properly designed to accommodate the long-term needs and uses of the City and Transit for Kiss N Ride usage; and (b) seek the input of the City to insure (i) the portion of the underground parking garage within the Second Avenue Subsurface Right-Of-Way has been properly designed to avoid the risk of damage to the surface improvements (the "Right of Way Surface Improvements") KCFCU will construct over the Second Avenue Subsurface Right-Of-Way; and (ii) the Right of Way Surface Improvements over the KCFCU Easement have been properly designed in accordance with the Preliminary Plan and the City's standards. The Final Plans will incorporate the intended Kiss N Ride Area Improvements and Right of Way Surface Improvements in substantial conformance with the Preliminary Plan and the requirements of the City and Transit. The Final Plans will be subject to the review and approval of the City and Transit, which approval will not be unreasonably withheld. 2.4 Permitting And Construction. Excluding the duties specifically allocated to the City pursuant to Section 2.5, KCFCU will be solely responsible for (i) procuring all building permits required for the construction and completion of the KCFCU Project; and (ii) the timely construction and completion of the KCFCU Project, including the Kiss N Ride Area Improvements and Right of Way Surface Improvements in accordance with the Final Plans, all applicable building and zoning codes and acceptable industry standards for good workmanship. 2.5 Clarification Of Certain Duties. KCFCU acknowledges that it is responsible for the removal of the three (3) existing power poles on the Property at its expense. The City agrees that it will construct or install, at the sole expense of the City, new sidewalks, trees and lighting along W ashington Avenue. KCFCU agrees that it will construct or install, at the sole expense of KCFCU, new sidewalks, trees and lighting along Second Avenue. All such sidewalks, trees and lighting AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT - Page 2 of 7 (7 -8-04) (collectively, the "Right-Of-Way Surface Improvements") will conform to the City's standards and applicable building codes. 2.6 Vacation Of Second Avenue Subsurface Easement. Subject to the approval of the Bremerton City Council, the City shall vacate the Second Avenue Subsurface Right-Of-Way. The agreed value of the Second Avenue Subsurface Right-Of- Way is $90,000.00, which shall be offset from the City's share of the purchase price for the Kiss N Ride Easement. If KCFCU does not construct its proposed underground parking garage, KCFCU will dedicate back to the City for right-of- way the vacated area. 2.7 Completion Date. KCFCU shall fully complete the KCFCU Project, including the Kiss N Ride Area Improvements and Right-Of-Way Surface Improvements required of KCFCU pursuant to Section 2.5, not later than December 31,2005, provided such completion date shall be extended by reason of unforeseen delays not within the reasonable control of KCFCU. KCFCU and the City will coordinate the concurrent completion ofthe Right-Of-Way Surface Improvements required under Section 2.5 to insure the timely completion of the KCFCU Project. 2.8 Final Inspection. Once the KCFCU Project is substantially complete, the City and Transit will mutually inspect the Kiss N Ride Area and Improvements to insure the improvements comport with the Final Plans, applicable building codes and industry standards. The City will inspect the Right of Way Surface Improvements to insure such Improvements comport with the Final Plans, the construction permits, applicable building codes and industry standards. In the event of any nonconformity or deficiency, the City and Transit will develop a corrective punch list and KCFCU shall, within thirty (30) days, correct any deficient work set forth on the punch list. 2.9 Grant Of Kiss N Ride Easement And License; Payment. 2.9.1 Execution And Delivery Of Easement. Within thirty (30) days of the completion of the KCFCU Project and Kiss N Ride Area Improvements in accordance with this Agreement, KCFCU, the City and Transit shall execute and deliver to Transit's Attorney the Kiss N Ride Easement And License Agreement in the form attached as Exhibit 4. 2.9.2 Purchase Price And Deposit Of Funds. The agreed value of the Kiss N Ride Easement is $450,000.00. This sum shall be payable by Transit and the City in equal shares. Transit's share shall be paid in cash. The City's share shall be paid as follows: a. $90,000.00 by way of exchange offset for the City's prior vacation of the Second Avenue Subsurface Right-Of-Way. b. $135,000.00 payable in cash. AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT - Page 3 of 7 (7 -8-04) Concurrently with KCFCU's execution and delivery of said Kiss N Ride Easement And License Agreement, the City and Transit shall execute and deliver to Transit's Attorney, checks made payable to KCFCU in the principal sum of $135,000.00 and $225,000.00, respectively (the "Funds"). At the City's sole option, the City's payment shall be made on or before January 15,2005. 2.9.3 Title Clearance. On Transit's Attorney's receipt of the Kiss N Ride Easement And License Agreement and Funds, Attorney shall procure a final title policy (the "Title Policy") issued by Pacific Northwest Title Insurance Company (the "Title Company") insuring the easement interest of the City and Transit, subject only to the Permitted Title Exceptions described in Exhibit 5 hereto. 2.9.4 Recording, Payment Of Excise Tax And Release Of Funds. Once the Title Company issues clearance for the issuance of the title Policy, Attorney shall cause the original Kiss N Ride Easement And License Agreement to be recorded and release the Funds to KCFCU. The real estate excise tax shall be paid by KCFCU. The City and Transit shall pay the title premiums and recording fees in equal shares. 2.10 Guarantv And Correction Of Defective Work. KCFCU guarantees the Kiss N Ride Area and Improvements and the Right of Way Surface Improvements will be of good quality and in conformance with the provisions of this Agreement. For a period of one (1) year from the recording of the Kiss N Ride Easement And License Agreement, KCFCU warrants the Kiss N Ride Area Improvements and Right of Way Surface Improvements will be free of defects (excluding damage caused by Transit and/or the City and/or the public from causes other than normal Kiss N Ride use) and such Improvements will be in conformance with the Final Plans, applicable building codes and acceptable industry standards for good workmanship. In the event of any non-conformity or deficiency, KCFCU shall promptly repair or correct any non-conforming or deficient work. During this one (1) year warranty period, KCFCU, Transit and the City will perform routine and regular maintenance of the Kiss N Ride Area and Improvements in accordance with the Maintenance provisions of the Kiss N Ride Easement And License Agreement. 2.11 Arbitration. In the event any dispute arises under this Agreement, such dispute shall be settled by binding arbitration. Such arbitration shall be before one disinterested arbitrator if one can be agreed upon, otherwise before three disinterested arbitrators, one named by KCFCU, one by the City and Transit, and one by the two thus chosen; provided, that if said two arbitrators cannot agree ,upon a third arbitrator within fifteen (15) days, then said third arbitrator shall be appointed by the presiding Judge of Kitsap County Superior Court upon motion of either party. A "disinterested arbitrator" shall be a person who shall not have a AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT - Page 4 of 7 (7-8-04) direct or indirect financial interest in the decisions to be made by the board of arbitrators and who shall not be an officer, director, employee or agent of any party. The arbitrator or arbitrators shall determine the controversy in accordance with the laws of the State of Washington as applied to the facts found by him, her or them, and in accordance with the rules of Mandatory Arbitration Rules. If the arbitration is conducted by a panel of three arbitrators, a majority decision of the three shall constitute the binding final and conclusive award. All arbitration proceedings hereunder shall be conducted in Kitsap County, Washington. The appointment of arbitrators shall be signified in writing by each party to the other. If one party shall fail to so appoint an arbitrator for a period of fifteen (15) days after written notice from the other party to make such appointment, then the arbitrator appointed by the party who has made such appointment shall serve as the arbitrator. The award of the arbitrator or arbitrators shall be binding, final and conclusive on the parties. Fees of the arbitrator or arbitrators and the expenses incident to the proceeding shall be borne one-half by KCFCU and one-half by the City and Transit, provided the substantially prevailing party in any such proceeding shall be entitled to an award of and to recover its costs and expenses incurred, including reasonable attorney's fees, and its share of the fees of the arbitrator(s). 2.12 Miscellaneous Provisions. 2.12.1 Successors Or Assigns. All the terms, conditions, covenants and agreements of this Agreement shall extend to and be binding upon the parties and their respective successors and assigns. 2.12.2 Corporate Authority. Each individual executing this Agreement on behalf of said corporation, except for the Mayor of the City of Bremerton who's signature is conditioned upon subsequent final acceptance and approval by the Bremerton City Council, represents and warrants that he is duly authorized to execute and deliver this Agreement on behalf of said corporation, in accordance with a duly adopted resolution of the board of directors of said corporation authorizing and consenting to this Agreement; authorizing the specific officers signing this Agreement to execute, acknowledge and deliver the same without the consent of any other officer or officers; resolving that such action and execution is in accordance with the bylaws of said corporation; and resolving that this Agreement is binding upon said corporation in accordance with its terms. 2.12.3 Choice Of Law. This Agreement shall be governed by the laws of the State of Washington and in the event any action is instituted on account of this Agreement, the venue of any such action shall lie exclusively in the State Courts for Kitsap County, Washington. AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT - Page 5 of 7 (7 -8-04) 2.12.4 Prior Agreements. This Agreement contains all of the oral and written agreements and understandings, correspondence, representations and statements of the parties hereto with respect to the Kiss N Ride Area and Improvements, and no prior matters shall be effective for any purpose. No provision of this Agreement may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Agreement shall not be effective or binding on any party until fully executed by both parties hereto. 2.12.5 Partial Invalidity. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstance is, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 2.12.6 Notices. Any notices required in accordance with any of the provisions herein or desired to be given hereunder to be given either party shall be delivered personally or, if mailed, then mailed by registered or certified mail or via a nationally recognized overnight delivery service and addressed to such party at the address set forth below. Notices shall be deemed given when delivered, if delivered personally, or three (3) business days after deposit in the United States mail as set forth above. KCFCU: Kitsap Community Federal Credit Union Elliot Gregg, President 1025 Burwell Street Bremerton, W A 98337 Fax # Email: Kitsap Transit: Richard Hayes, Executive Director Kitsap Transit 200 Charleston Blvd., Bremerton, W A 98312 Fax #478-0140 Email: cathiekb@kitsaptransit.com With Copy to: Ronald C. Templeton Matty & Templeton 3212 NW Byron Street #104 Silverdale, W A 98383 Fax #692-1257 Email: rctempleton@telebyte.com AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT - Page 6 of 7 (7 -8-04) City of Bremerton: Gary Sexton, Director of Economic Development City of Bremerton 239 4th Street Brernerton, W A 98337 Fax #473-5282 Email: gsexton@ci.bremerton.wa.us With Copy to: Roger Lubovich Bremerton City Attorney 239 4th Street Brernerton, W A 98337 Fax #478-5161 Email:rlubovich@ci.brernerton.wa.us 2.12.7 Negotiation; Representation And Construction. This Agreement and each of its terms and provisions are deemed to have been explicitly negotiated between the parties, and the language in all parts of this Agreement will, in all cases, be construed according to its fair meaning and not strictly for or against either party. Prior to signing this Agreement, each party was represented by independent legal counsel. IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the day and year first above set forth. KCFCU 0) By (lL+ c:!_ Its ~ I'~,.,- Ic.......;-"";) ......0' -~ i OClV' e L-' { KITSAP TRANSIT By ~lVL' - RICHARD HAYES, Ex&u . Director CIT~EME~ ~; ~ IJlI1 't-P--- o "7 AGREEMENT FOR PURCHASE OF KISS N RIDE EASEMENT - Page 7 of 7 (7-8-04) AGENDA BILL CITY OF BREMERTON CITY COUNCIL BILL # 04 -llD2._ DATE SUBMITTED: August 2, 2004 ........................................................m.............................., SUBJECT: Agreement for Purchase and Sale of Kiss N Ride Easement and Kiss N Ride Easement and License Agreement Committee Meeting Date: 8/11/04 COUNCIL MEETING Date: 8/18/04 Department: City Attorney's Office Presenter: Roger A. Lubovich Phone: 473-2345 SUMMARY: Kitsap Community Federal Credit Union has acquired property which it intends to develop and improve. The City of Bremerton and Kitsap Transit desire to purchase an easement on part of the property after improvement for vehicular dropping off and picking up ferry passengers. The Agreement for Purchase and Sale of Kiss N Ride Easement and Kiss N Ride Easement and License Agreement provide for the purchase ofthe easement and use of the area designated as the Kiss N Ride. ATTACHMENTS: (1) Agreement for Purchase and Sale of Kiss N Ride Easement (2) Kiss N Ride Easement and License Agreement FISCAL IMPACTS (Include Budgeted Amount): The purchase price for the easement is $450,000, of which the City will be responsible for the payment of $225,000. $90,000 of the $225,000 will be paid by way of exchange offset for the City's vacation of the underground portion of 2nd Street. The remaining $135,000 shall be paid by the City on or before January 15,2005. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: OPERATIONS: COUNCIL PRESIDENT: RECOMMENDED MOTION: I CONSENT AGENDP ~ I move to approve (a) the Agreement for Purchase and Sale of Kiss N Ride Easement and (b) the Kiss N Ride Easement and License Agreement COUNCIL ACTION: ~rove o Deny 0 Table o Continue 0 No Action