HomeMy WebLinkAbout9106260246 ~ .,~:,,.. 0':' c~ ~i~CO~
~ I Filed for record at request of:
O4 City of Sremerton 9J JUN 26 PI"t 2:
~D When recorded return to: , ,.
(%4 3 HALL, PINOKNEY & KINTNER, P.S.
~ 645 4th Street, Suite 201
--~D 4 Bremert°n' Washingt°n 98310(~ ' STATUTORY WARRANTY DEED'U ~ _
6 TH~. G~ORB, EDWIN J. BJORK and WANDA BJORK, husband and
wife, for valuable consideration in hand paid, convey and warrant to
7 the CITY OF BREMERTON the following described real estate, situated
__~ in the County of Kitsap, State of Washington:
--;~ Lots 28 and 29, Block 7, Town of Bremerton,
~£;.-'~- 9 according to plat records Volume 2, of Plats,
page 30, records of Kitsap County, Washington,
C: ~, 10 and
~ . Lots 12 and 13, Block 7, Town of Bremerton,
~ l] according to plat records, Volume 2 of Plats,
page 30, records of Kitsap County, Washington.
12
DATED thiS I~day of June~1991.
/Edw~n' J. Bj~-1Q--~/
16 Wanda Bjork
STATE OF WASHINGTON )
17 ) §
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that
19 Edwin J. Bjork and Wanda Bjork, husband and wife, signed this
instrument and acknowledged it to be their free and voluntary act
20 for the uses and purposes~entioned in the instrument.
~J',. !:"~-- DATED: June ('~ 1991~,
'.;'..,~.:":'. ~ ,'.i.~.',~ . I,.,.~o~
,/"?~.,~0 ,.,., '~ '..~' NO~~ in and for the State of
· '~:o .., *..- *... :. Washington, residing at Bremerton
~ ~ '~l.,. ~ ~(. ''l:r~ My appointment expires:
'~, "~ KIT~Ap COUNTY
T ^NSACT,o XC*S[ : £[L595r t749
26 PAID .tflN ~6
AMOLIt,~, i ~ .
HALL,
91 16260246 PINCKNEY &
KINTNER, P.S.
ATTORNEYS K'T LAW
STATUTORY WARRANTY DEED -1 ~ m ~,..~.
ASSIGNMENT OF LEASES
THIS AGREEMENT is made this (7~ay of June, 1991, by
and between EDWIN J. BJORK and WANDA BJORK, husband and wife,
hereinafter referred to as "Assignors", the Sellers of the real
property) and THE CITY OF BREMERTON, hereinafter referred to as
"Assignee", the Purchaser of the real property commonly known as
245 4th Street Building, Bremerton, WA 98310, having tax parcel
numbers 3718-007-028-0000 and 3718-007-012-0008, and legally
described as attached.
RECITALS:
1. Assignors.have previously entered into leases as lessors
therein with I(_~ tenants.
2. A list of these leases is as follows:
Tenant Name
Bremerton Printing Shop
($600.00 per month)
Gene's Barber Shop
($220.00 per month)
The Olive Leaf D & D Restaurant
and Deli
($540.00 per month)
The Camera Shop
($600.00 per month)
McCaw Communications
($250.00 per month)
Rosenblatt Naval Architects
($3,665.65 per month)
Dr. Robert Bright
($1,171.24 per month)
GMT, Inc.
($510.00 per month)
Stephen Rice, Architect
($580.00 per month)
ASSIGNMENT OF LEASES - 1
Diamond Parking
(rent varies/average)
3. Assignors have sold the real property to which the
aforementioned leases attach and are desirous of
assigning their interests in the leases to Assignee, the
purchaser of the real property.
4. Assignors desire to assign and Assignee desires to assume
all future rights, duties and liabilities, excepting acts
of negligence, pertaining to said leases, including but
not limited to the collection of rental and the covenants
contained in the leases for enforcement of rental
collection.
In consideration of the mutual covenants contained herein, the
parties agree as follows:
1. Assignors hereby assign and transfer to Assignee all
rights, interest and duties with regard to the leases
referenced in the Recitals above, including all rights,
interest and duties in the rent required to be paid under
the provisions of the leases referenced above and
attached hereto which shall be due on or after the date
of this Agreement, together with all covenants contained
in the leases relating to the collection of rental for
the demised premises described in the leases referenced
in the Recitals. This Assignment shall become effective
on the date of closing, which shall be June 17, 1991.
Assignors shall provide written notice of the assignment
to the lessees on the leases and the notice shall contain
the name and address of the Assignee, the address to
which all future rental payments shall be made by lessee
and the effective date of the assignments.
2. Assignee will perform all of the lease provisions to be
performed by Assignors for collection or enforcement of
collection of the rent. Further, Assignee shall be
liable for performance of all other provisions in the
lease agreements.
IN WITNESS WHEREOF, the parties have executed this
Agreement to assign at Bremerton, Washington, the day and year
first above written.
ASSIGNORS: ASSIGNEE:
CITY OF BREMERTON
ASSIGNMENT OF LEASES - 2
~~~~ MayorL°Uis Mentor
W~nda B]ork ' ~ Attest:
STATE OF WASHINGTON )
)S
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that
Edwin J. Bjork and Wanda Bjork, husband and wife, signed this
instrument and acknowledged it to be the/r free and voluntary act
for the uses and ~ses mentioned in ~he instrument./%
Dated: 0~-I/ [~/
NOTARY PUBLIC in and for the
State of Washington resi~ing at
My appointment expires:
STATE OF WASHINGTON )
COUNTY OF KITSAP )
. I certi~y/t .h~g I kn~~a~factory.evidence that
Louis Mentor and ~~ f- v~--~'W%sl~ned this instrum--~
on oath stated tha~ they were authorized to/~xecute the instrument
and acknowledged it, as the Mayor and the ~ of th~
City of Bremerton, to be the free and voluntary act of such party
for the uses and ~urposes mentioned in the instrument.
NOTARY PUBLIC in and for the
State o~ Washington, residing
My appointment expires: (~
ASSIGNMENT OF LEASES - 3
10009D 20825
Form No. 1402
(10/21/87)
ALTA Owner's Policy
POLICY OF TITLE INSURANCE
ISSUED BY
First American Title Insurance Company
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN
SCHEDULE B AND THE CONDITIONS AND STiPULATiONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a
California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or
damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by
reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to
the extent provided in the Conditions and Stipulations.
First American Title Insurance Company
:orm NO. 1402 (6/87)
kLTA OwneCs Policy
~chedule A
SCHEDULE A
File No. 20825 Policy No. 104637
Amount of Insurance $ 475,000.00 Premium $ 50.00
Date of Policy JUNE 26, 1991
AT 2:44 p.m.
1. Name of Insured:
CTTY OF BREMERTON
2. The estate or interest in the land which is covered by this policy is:
FEE SIMPLE ESTATE
3. Title to the estate or interest in the land is vested in:
CITY OF BRENERTON
4, Thelandreferredtointhis policyisdescribed asfollows:
PARCEL A:
LOTS 12 AND 13, BLOCK 7, PLAT OF BREMERTON, AS PER PLAT RECORDED IN VOLUME
2 OF PLATS, PAGE 30, RECORDS OF KITSAP COUNTY, WASHINGTON.
PARCEL B:
LOTS 28 AND 29, BLOCK 7, TOWN OF BREMERTON, ACCORDING TO THE PLAT RECORDED
IN VOLUME 2 OF PLATS, PAGE 30, RECORDS OF KITSAP COUNTY;
BOTH PARCELS ARE SITUATE IN KITSAP COUNTY, WASHINGTON.
SCHEDULE B
ORDER NO. 20825 POLICY NO. 104637
EXCEPTIONS FROM COVERAGE
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE {AND THE COMPANY WILL NOT
PAY COSTS, ATTORNEY'S FEES OR EXPENSES) WHICH ARISE BY REASON OF:
PART ONE:
1. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY
THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS
ON REAL PROPERTY OR BY THE PUBLIC RECORDS.
2. ANY FACTS, RIGHTS, INTEREST, OR CLAIMS WHICH ARE NOT SHOWN BY
THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION
OF SAID LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF.
3. EASEMENTS, CLAIMS OF EASEMENTS OR ENCUMBRANCES WHICH ARE NOT
SHOWN BY THE PUBLIC RECORDS.
4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA,
ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD
DISCLOSE, AND WHICH ARE NOT SHOWN BY PUBLIC RECORDS.
5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS
IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER
RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS
EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS.
6. ANY LIEN, OR RIGHT TO A LIEN, FOR SERVICES, LABOR OR MATERIAL
THERETOFORE OR HEREAFTER FURNISHED, IMPOSED BY LAW AND NOT SHOWN
BY THE PUBLIC RECORDS.
7. INDIAN TRIBAL CODES OR REGULATIONS, INDIAN TREATY OR ABORIGINAL
RIGHTS, INCLUDING EASEMENTS OR EQUITABLE SERVITUDES.
CONTINUED . . .
SCHEDULE B
PART TWO
ORDER NO. 20825 POLICY NO. 104637
1. GENERAL TAXES: FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH; SECOND HALF
BECOMES DELINQUENT AFTER OCTOBER 31ST:
YEAR: 1991
AMOUNT BILLED: $897.33
AMOUNT PAID: $448.67
AMOUNT DUE: $448.66
TAX ACCOUNT NO.: 3718-007-012-0008
AFFECTS PARCEL A
GENERAL TAXES: FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH; SECOND HALF
BECOMES DELINQUENT AFTER OCTOBER 31ST:
YEAR: 1991
AMOUNT BILLED: $7,298.75
AMOUNT PAID: $3,649.38
AMOUNT DUE: $3,649.37
TAX ACCOUNT NO.: 3718-007-028-0000
AFFECTS PARCEL B
2. UNRECORDED LEASEHOLDS, IF ANY, RIGHTS OF VENDORS AND CHATTEL MORTGAGES OF
PERSONAL PROPERTY AND RIGHTS OF TENANTS TO REMOVE TRADE FIXTURES AT THE EXPIRATION
OF THE TERM.
END OF SCHEDULE B
ENDORSEMENT
Attached to Policy No. 104637 (FILE NO. 20825)
Issued by
First American Title Insurance Company
The Company, recognizing the current effect of inflation on real property valuation and intending to provide additional
monetary protection to the insured owner named in the policy, hereby modifies the policy, as follows:
1. Notwithstanding anything contained in the policy to the contrary, the amount of insurance provided by the policy, as
stated in Schedule A thereof, is subject to cumulative annual upward adjustments in the manner and to the extent
hereinafter specified.
2. "Adjustment date" is defined, for the purpose of this endorsement, to be 12:01 a~m. on the first January I which occurs
more than six months after the date of policy, as shown in Schedule A of the policy to which this endorsement is attached,
and on each succeeding January 1.
3. An upward adjustment will be made on each of the adjustment dates, as defined above, by increasing the maximum
amount of insurance provided by the policy. The coverage will increase by the same percentage change by which the
annual "ENR 20-cities Building Cost Index" has increased, (as published in the"4th Quarter Roundup" December issue
of Engineering News Record, a weekly McGraw Hill publication). All upward adjustments in the aggregate shall not
exceed a 50% total rise in the amount of insurance, so that the maximum amount of insurance in force shall never exceed
150% of the amount of insurance stated in Schedule A of the policy, less the amount of any claim paid under the policy
which, under the terms of the conditions and stipulations, reduces the amount of insurance in force. There shall be no
annual adjustment in the amount of insurance for years in which there is no increase in the Building Cost Index.
4. In the settlement of anyclaim against the Company under the policy, the amount of insurance in force shall be deemed to
be the amount which is in force as of the date on which the insured claimant first learned of the assertion or possible
assertion of the claim, or as of the date of receipt by the Company of the first notice of the claim, whichever shall
first occur.
Nothing herein contained shall be construed as extending or changing the effective date of the policy.
This endorsement is made a part of the policy and is subject to the schedules, exclusions, conditions and stipulations therein.
except as modified by the provisions hereof.
First American Title Insurance Company
BY ~ ~~ PRESIDENT
BY A~ISTANT SECRETARY
First American F.A. 11.1 Inflation
(CLTA/ALTA Owners)
comp~ems of C~rter ~le Col~ora~
"' ~ S TREE T
~ 0 Y'
, ~ ~'
· ~sktlng in l~atkg the said premises. It does not pu~K to show all ma& or
e~ements. ~e com~ ~omes no li~ ht~i~ fi)r naecumetes the~in. VOL~E ~ PAGE
Form WA-5 (6/76}
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
First American Title Insurance Company
FIRST AMERICAN TITLE INSURANCE COMPANY, herein called the Company, for valuable consideration,
hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed
Insured named in Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or
referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules
A and B and to the Conditions and Stipulations hereof.
This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy
or policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance
of this Commitment or by subsequent indorsement.
This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obli-
gations hereunder shall cease and terminate six (6} months after the effective date hereof or when the policy or policies
committed for shall issue, whichever first occurs, provided that the failure to issue such policy or policies is not the fault
of the Company. This Commitment shall not be valid or binding until countersigned by an authorized officer or agent.
IN WITNESS WHEREOF, the Company has caused this Commitment to be signed and sealed, to become valid when
countersigned by an authorized officer or agent of the Company, all in accordance with its Sy-Laws. This Commitment
is effective as of the date shown in Schedule A as "Effective Date."
First American Title Insurance Company
BY ~ PRESIDENT
Form WA-5A (6/76}
FIRST AMERICAN TITLE INSURANCE COMPANY
SCIIEDULE A
i. Effective Date: MAY 17, 1991 AT 7:30 A.M. Commitment No: 20825F-D
TO: HALL, PINKNEY & KINTNER YourNo. 1009
645 4TH STREET
BREMERTON, WASIIINGTON 98310
ATTENTION: LARRY HALL
Proposed Insured:
CITY OF BREMERTON
2. Policy or Policies to he issued: Amount Premium Tax
( X ) Owner's standard coverage $475,000.00 $1,260.00 $98.28
( ) Purchaser's standard coverage
( ) Mortgagee's standard coverage.
( ) Mortgagee's ALTA coverage
( ) Easement coverage.
TOTAL PREMIUM: $1,358.28
3. The estate or interest in the land described or referred to in this commitment and covered herein is fee simple and
title thereto is at the effective date hereof vested in:
EDWIN J. BJORK AND WANDA J. BJORK, HUSBAND AND WIFE
4. The land referred to in this commitment is described as follows:
PARCEL A:
LOTS 12 AND 13, BLOCK 7, PLAT OF BREMERTON, AS PER PLAT RECORDED IN VOLUME
2 OF PLATS, PAGE 30, RECORDS OF KITSAP COUNTY, WASHINGTON.
PARCEL B:
LOTS 28 AND 29, BLOCK 7, TOWN OF BREMERTON, ACCORDING TO THE PLAT RECORDED
IN VOLUME 2 OF PLATS, PAGE 30, RECORDS OF KITSAP COUNTY;
BOTH PARCELS SITUATE IN KITSAP COUNTY, WASHINGTON.
CHERYL A. DEMAY,
TITLE OFFICER
CHARTER TITLE CORPORATION
3100 NW BUCKLIN HILL ROAD, SUITE #100
P 0 BOX 1327
SILVERDALE, WA 98383
(206) 692-9314/(206) 624-3)38
NOTE Invest gat on ~ ~nt d he ma e Io c etermine if there are anv service, installation, maintenance or conRtruction
char~s for sewe~, water, telephof~e, gas. electricity or garbage aod refuse collection, or any covenants, conditions
and restrlctioo~ ~mder which an estate, lien or interest in property has been, or may be, cut off, subordinated or
otherwise impaired.
20825F-D
SCHEDULE B-- Section 1
Requirements
The following are Ihe r~qulramenls Io be compiled with:
Ilem (a) Paymenl In ar for the ac. counl of Ihs grantors or morlgagora of Ihs full conalderallon for Ihs eslale or Interest
Io be Insured.
Item (bi Proper Inslrumenl(.~) creating the eslate or Inleresl In be Insured must he execuled and duly filed lot record.
SCHEDULE B-- Section 2
Exceptions
The policy or pollcl~ tn h-. Issued will conlaln exceptions Io Ihe following unless the same are disposed of Io Ihe sails-
faction of Ihs Company.
f. Taxes or asspssmenl; whl~.h are nol shown as existing liens by the records of any taxing aulhorily lhaI levies laxes
or assessmenls on real properly or by Ihs public records.
2. Any Iscls, rights, Inl~rests, or claims which are nol shown by Ihs public records bul which could be ascertained by
an Inspection al said land or by making Inquiry of persons In possession Ihereof.
3. Easements, claims of easemenl or encumbrances which are nol shown by Ihs public records.
4. Discrepancies, cn;dllcls In boundary lines, shorlage In area, encroachments, or any olher facls which a correcl
survey would dlsclnse, and which are not shown by public records.
5. Unpatenled mlr~lng clali~s; rl~servallons or excepllons In palenls or In Acls aulhorlzlng the Issuance Ihereol; waler
dghla, claims or lille In water.
Any lien or r g 1 lo a II,~n, nr services labor or material theretotore or herealler lumlshed, Imposed by law and hal
shown by Ihs public r~c. ords.
7. Delects, liens, en~ ~r~n~,s, adverse claims er olhar maller.~, II any, creeled, Iirsl appearing In the public r~cords
or altachlng suhseq~nl Io lh~ eflective dale hereol but prior to the date the proposed Insured acquires of record
for value Ihs ~slal~ nr Inle~esl or morlgage thereon covered by Ihia commltmenl.
8. INDIAN TRIBAl_ CODES, REGULATIONS, ABORIGINAL OR RESERVED RIGIIT, OR
EASEMENTS OR EQUITABLE SERVITUDES RELATING TllERETO.
CONTINUED . .
20~2b~-U
SCHEDULE B CONTINUED
9. LIEN OF ANY REAL ESTATE EXCISE SALES TAX UPON ANY SALE OF SAID PROPERTY IF
UNPAID. AS OF T)IE DATE HEREIN, THE EXCISE TAX RATE FOR 1991 IS 1.53% ACCORDING
TO THE LATEST PUBLIC NOTICE ISSUED BY THE KITSAP COUNTY RECORDS SECTION.
LEVY CODE: OOlO
10. DELINQUENT GENERAL TAXES:
YEAR: 1989
AMOUNT BILLED: $8,720.75
AMOUNT PAID: $ -O-
AMOUNT DUE: $8,720.75, PLUS INTEREST AND PENALTY
TAX ACCOUNT NO.: 3718-007-028-0000
AFFECTS PARCEL B
11. GENERAL TAXES: FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH; SECOND HALF
BECOMES DELINQUENT AFTER OCTOBER 31ST:
YEAR: 1991
AMOUNT BILLED: $897.33
AMOUNT PAID: $448.67
AMOUNT DUE: $448.66 ~-
TAX ACCOUNT NO.: 3718-007-012-0008
AFFECTS PARCEL A
GENERAL TAXES: FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH; SECOND HALF
BECOMES DELINQUENT AFTER OCTOBER 31ST:
YEAR: 1991
AMOUNT BILLED: $7,298.75
AMOUNT PAID: $ -O-
AMOUNT DUE: $7,298.75
TAX ACCOUNT NO.: 3718-007-028-0000 "~
AFFECTS PARCEL B
12. MORTGAGE AND TIlE TERMS AND CONDITIONS THEREOF
MORTGAGOR:245 FOURTII STREET BUILDING, INC., A WASHINGTON CORPORATION;
AND EDWIN J. BJORK AND WANDA J. BJORK, HUSBAND AND WIFE.
MORTGAGEE:ALBERT WALLACH AND VIOLA WALLACH, HUSBAND AND WIFE; CLARENCE
W. OLBERG AND IRENE OLBERG, HUSBAND AND WIFE; AND RUEBEN A. BENSON
AND MARGARET L. BENSON, HUSBAND AND WIFE.
ORIGINAL AMOUNT: $400,000.00
DATED: OCTOBER 1, 1976
RECORDED: OCTOBER 8, 1976
RECORDING NO.: 1146980
13. DEED OF TRUST AND THE TERMS AND CONDITIONS THEREOF:
GRANTOR: FOURTII STREET BUILDING ASSOCIATES, A LIMITED PARTNERSHIP
TRUSTEE: CHICAGO TITLE AGENCY OF KITSAP COUNTY
BENEFICIARY: EDWIN J. BJORK AND WANDA J. BJORK, HUSBAND AND WIFE
ORIGINAL AMOUNT: $100,000.00
DATED: AUGUST 12, 1983
RECORDED: AUGUST 11, 1983
RECORDING NO.: 8308110166
CONTINUED . . .
2U825F-D
SCHEDULE B CONTINUED
14. ASSIGNMENT OF CONTRACT AND DEED IN THE NATURE OF A MORTGAGE AND TERMS AND
CONDITIONS THEREOF:
GRANTOR: FOURTh; STREET BUILDING ASSOCIATES, A LIMITED PARTNERSHIP
GRANTEE: U.S. CREDITCORP, AN OREGON CORPORATION
AMOUNT: UNDISCLOSED
DATED: AUGUST 12, 1983
RECORDED: AUGUST 12, 1983
RECORDING NO.: 8308120109
15. DEED OF TRUST AND T~E TERMS AND CONDITIONS THEREOF:
GRANTOR: FOURT~ STREET BUILDING ASSOCIATES, A WASHINGTON LIMITED PARTNERSHIP
TRUSTEE: SAFECO TITLE INSURANCE COMPANY
BENEFICIARY: THE UAGAR COMPANY,INC.
ORIGINAL AMOUNT: $59,400.00
DATED: SEPTEMBER 1, 1986
RECORDED: NOVEMBER 4, 1986
RECORDING NO.: 8611040121
16. UNRECORDED LEASE}~OLDS, IF ANY, RIGHTS OF VENDORS AND CHATTEL MORTGAGES OF
PERSONAL PROPERTY AND RIGHTS OF TENANTS TO REMOVE TRADE FIXTURES AT THE EXPIRATION
OF THE TERM.
CAD/dms
END OF SCHEDULE B
DRAFT
PRELIMINARY
BUYER'S CLOSING STATEMENT
Bjork/City of Bremerton Real Estate Transaction
Credit Debit
SALES PRICE: $475,000.00
Earnest Money $ 1,000.00
Prorata Rental Allocation
(see attached list) $ 3,526.98
Recording Fee:
Statutory Warranty Deed $ 7.00
$ 4,526.98 $475,007.00
DUE FROM BUYER AT CLOSING: $470,480.02
$475,007.00 $475,007.00
Approved by:
CITY~F BR~ERTON
Louis Mentor
Dated:
Attest:
~Kathleen Mc~lf~ey Dated: ~ I~q%
BUYER'S CLOSING STATEMENT
Bjork/City of Bremerton Real Estate Transaction
Credit Debit
SALES PRICE: $475,000.00
Earnest Money $ 1,000.00
Prorata Rental Allocation
(see attached list) $ 813.70
Recording Fee:
Statutory Warranty Deed $ 7.00
$ 1,813.70 $475,007.00
DUE FROM BUYER AT CLOSING: $473,193.30
$475,007.00 $475,007.00
Approved by:
CIT~F BREMERTON
Louis Mentor
Dated:
Attest:
Kathleen McCluskey
Dated:
,..ty~.,~..,o...y,.~o.,.~. REAL ESTATE EXCISE TAX b~ caihler. Pay by .ih M r.~lfled
.EASE TYPE OR PRINT ~¥=~ 4~8-6t
~ AFFIDAVIT WIU. NOT BE AC(~oBu ~ ITEI4~ (~ 11MIO4J~H (~) ~ FULLY COMFLETED
s.., c/o 64S 4th Street ~.,r. 245 4th Street
c~ Bremerton, at.t. WA z~ 98510 c~ Bremerton at.toWA z~ 98510
') ~ OWN;n'S N.,. same as grantee ALL TAX PARCEL NUMBERS
PERMA~NT A00~qSSS ~71 ~_nn?.Nn~_ nnnn
T~X RE~D 3718-007-012-0008
)
LEGAL D~aCRIPTION OF PROPERTY SITUATED IN UNINCORPORATED Kitsap COUNTY [] OR ~R C~TY OP
RCEL A: Lots 12 and 13, Block 7, Plat o£ Bremerton, as per plat recorded in
lume 2 of Plats, page 30, records of Kitsap County, ~ashington
RCI~L B: Lots 28 and 29, Block ?, To~n of Bremerton, according to the plat
corded in Volume 2 of Plats, page ~0, records of Kitsap County;
th parcels situate in Kitsap County, ~ashington
) [~ ~i~ pro~ ourr~ntly: YE8 NO ~ ~ripti~ of ~r~n~l prope~y If inciud~ la ~le (furn~ure, ~p-
Ch~r ~,~ ROW ~ ~ pll~nc~, ~tc.)
f~ and a~ult ual, ~ timb~)? Oh~tor ~,~ ROW
Exempt from pro~ t~x unde~
or~solz~tlon~ Ch~er ~.~ RCW? ~
458.61~20 Transfer to government
pro~ und~ Ch~t~ ~.~ RCW? ~
Ty~ofD~um~t Statutory Harrant~ Deaa
TypePr~: ~ I~o~ ~ I~ndwithnewbul~lng.
~ land with previously ~ land w~h m~lle h~e Groan Sale Pdce 1 / $ - U -
us~ building Personal Pro~y (dedu~) 2/ $ - 0 -
) (1) NOTICE OF CO~INUA~E (RCW)~.~orRCW~.~) ExcloeTax: State $ -~-
dee~ation, g ff no I~er ~ea, it ~11 ~ ~ed a~ the c~ taxes (SEE I-5 ON REVERSE ~DE)
This land ~ does ~ d~. not quali~ ~ AFFIDAVIT
forooM~ua~e. ~A~E~ I CERTIFY UNDER ~NALTY OF PER~RY UNDER ~E LAWS OF
~ STA~ ~ ~GTON ~AT[~E FOREG~ 18 ~UE
(3) NOTICEOFCO~LIANCE(ChaRt~.~RCW) 81GNA~RE ' ~ ~
If the new owners) of prop~y with I~lil valuation al historic prop~y LarT7 E~ Hall
wish(e) to ~ntinue ~i. ~cMI valuation ~e n~ owner(e) mum sign ~low. If NA~ (~t).
the new ~) ~so) not ~.lro to c~inue ~ch ~¢ial valuation, all addt-
tio~l tax calculated purauect Io ~a~er ~.~ RCW..hall ~ d~ and payable DA~ & PLACE ~ SIGNING: ~
(3) OWNER(S) ~NATURE ~EClFY (circle): grantM/gra~/~rantee', agent
~LL, PINCKN~Y ~ KINTN~R, P.S.
645 4th Rtteet: g.~ta
~remerton~ ~A 98~10
The following optional question, are requeatod by RCW 82.45.120
la property II tho time of nile: YES NO
YEa NO e. Does conveyance Involve a trade, partial
Interest corporate affiliates, related pul'lies, 1 [] 2 []
a. Subject to elderly, diMblllty, or phyalc&l improvement 1 [] 2 [] trust, receivership or an estate?
exemption?
f. Is the grantee acting aa a nominee for a third t[] 2~
b. Does building, If any, have a heat pump or solar 1 [] r--I party?
boating or cooling nyntem?
2
g. Principal uso:
C. Does thia conveyance divide a currect percel of lend? 11~ 2~'1 1 [] agricultural 2 [] condominium 3 [] recreational
d. Does I&le Include ourrent crop or merchantable
timber? 1 [] 2 [~ 4 [] apt (4 + unite) 5 [] industrial 6 [] residential
7 [] commercial 8 [] mobile home 9 [] timber
FOR TREASURER'S USE ONLY
~v ~.~Ol ~ (~,e -..- COUNTY TREASURER
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT= Earnest Money Agreement FOR AGENDA OF= 0§{15/91
Fourth Street Building ORIGINATING DEPT= Adninistratlve
ORIGINATOR: Kathy l~Cl,mk~¥
DATE SUBMITTED: 05/08/91
2. ~: (comment on back 3. EXHIBITS:
if necessary)
__ Earnest Nbney
At it orn
ENDORSEM~WT .IRFORMATION __ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMM/ut~Y STATEMENT AND REOUIREMENT FOR COUNCIL ACTION:
At the April Council Study Session a proposal to purchase the Fourth Street Building was
presented. The financing included trading the Permit Center as part of the package.
Council indicated their desire to keep the Permit Center. Mayor Mentor renegotiated ~
with the owner of the Fourth Street Building for a cash sale' and was able to reduce the
purchase price by $25,000 to $475,000. The attached Earnest Money Receipt & Sale
Agreement requires Council approval to move forward with the purchase.
9. RESPONSIBLE OFFICIAL: Executive
ENFORCEMENT OFFICIAL: ~xecutive
EXP I I~T I ON DATE: 07/11/9~
REVIEW DATE:
PULLED __ TABLED __ DISAPPROVED AI~ENDED
COUNCIL DIRECTIVE: DATE: ~
11. AGENDA BILL NO= q ]- 1:~6)~
No. 91-10
BUDGET ADJUSTMENT REQUEST
Fund-Department Number/Name:
SOURCE OF FUNDS: USE OF FUNDS:
BAS EL - OB IT Numbers &MOUNT BAS EL - OB IT Numbers AMOUNT
Increase Revenue: Capital Facilities $800,000
Transfer frcm Reserve $100,000
Proceed of Financing . 700,000
$800,000
JUSTIFICATION
This adjustment will provide budgetary authority for the purchase of the Fourth Street
Building as approved by Council May 15, 1991.
Department Hea~natur-~e Date Director Signatur{e
Treasurer Comments:
Recommended ~ Not Recommended "~ ~'2~''Date
Recommended ~ Not Recommended
~-~ Approved ~ Denied
Mayor s Signature Date
~ Recommended ~ Not Recommended
~ Approved ~ Denied
Fiscal ~ Budget Committee Signature Date
1 ESCROW INSTRUCTIONS
2
TO: HALL, PINCKNEY & KINTNER, P.S.
3
SELLERS herein deposit with you under these instructions
4 the following:
5 ( X ) Earnest Money Receipt and Agreement
( X ) Statutory Warranty Deed
6 ( ) Sales Tax Affidavit
( ) Real Estate Contract and Fulfillment Deed
7 ( ) Purchaser's Assignment of Contract and Deed
( ) Seller's Assignment of Contract and Deed
8 ( X ) Closing Statement
9 which you are instructed to deliver, release and/or record when you
have for the account of Sellers $473,186.30, subject to any charges
10 and/or credits authorized herein and
11 PURCHASER herewith deposits with you the sum of
$473,193.30 and the following:
12
( ) PromiSsory Note
13 ( ) Statutory Warranty Deed
( ) Quit Claim Deed
14 ( X ) Excise Tax Affidavit
( X ) Closing Statement
15 ( )
16 which sums and documents you are instructed to use:
17 1. When you are able to close in compliance with these
instructions, and obtain a policy of title insurance in the amount
18 of $475,000.00, containing the insuring clauses, exceptions,
provisions and stipulations customarily contained in the printed
19 provisions of such form and
20 a. Conditions, restrictions or reservations as may
be contained in the plat or federal or state patents;
21
b. Matters attaching by, through or under the
22 grantee;
23 c. Easements and reservations of record and
reflected under paragraphs 8 and 16 of Schedule B of Charter Title
24 Corporation Title Report No. 20825F-D.
25 2. You are instructed to disburse deposited funds and
provide a closing statement at your earliest convenience.
HALL,
PINCKNEY &
KINTNER, P.S.
ATTORNEYS KT LAW
ESCROW INSTRUCTIONS -1
3. The undersigned have examined and hereby approve for
use in this escrow the documents marked with an "X" above as to
content and form.
4. You are instructed to make prorations of real estate
taxe£ and rents, excepting only rents from Diamond Parking, which
shal~ be prorated between the parties after closing. All other
prorations shall be handled by the parties outside of escrow.
§. Ail money received by you in this escrow is to be
deposited in your trust account pending closing.
6. You are instructed that all money and documents
required by you herein shall be deposited with you on or before the
date next set forth below. _~this escrow has no~ been placed in a
condition to close by June~, 199~, the above items d~posi~ed by
us are to be returned to us upon written demand, at which time we
will pay all your charges in connection herewith, but in the absence
of such written demand, you will proceed with these instructions as
soon as practicable.
7. These closing escrow instructions may be executed in
counterparts with like effect as if all signatures appeared on a
single copy.
8. This sale is without any warranty of condition of
property, which is purchased "as is" by Purchaser.
9. Reasonable attorneys' fees shall be allowed to the
prevailing party in the event of suit to enforce any provisions of
these instructions or agreements.
10. Purchaser acknowledges by the signature of its agent
hereon that:
These documents have been prepared by Sellers'
attorney and at his direction, subject to Purchaser's review and the
review of its counsel.
11. We have been afforded adequate time and opportunity
to read and understand these escrow instructions and all other
documents referred to therein.
THE UNDERSIGNED HAVE READ AND FULLY UNDERS FTA~E )REGOING CLOSING
ESCROW INSTRUCTIONS AND ALSO THE~ION ~T~ FORTH ABOVE AND
Seller
Dated:
HALL
PINCKNEY
KINTNER, P.S.
ATTORNEYS A'T LAW
ESCROW INSTRUCTIONS -2
PRORATE RENTS - 4TH STREET BUILDING
June 1 through June 27, 1991
B~ork c't o B e
i Bremerton Printing Shop
($600.00 per month) $ 540.00 $ 60.00
2 Gene's Barber Shop
($220.00 per month) $ 198.00 $ 22.00
3 The Olive Leaf D & D Deli
($540.00 per month) $ 486.00 $ 54.00
4 The Camera Shop
($600.00 per month) $ 540.00 $ 60.00
5 McCaw Communications
($250.00 per month) $ 225.00 $ 25.00
6 Rosenblatt Naval Architects
($3,665.65 per month) $3,299.08 $ 366.57
7 Robert Bright, M.D.
($1,171.24 per month) $1,054.11 $ 117.13
8 GILT, Inc.
($510.00 per month) $ 459.00 $ 51.00
9 Stephen Rice, Architect
($580.00 per month) $ 522.00 $ 58.00
10. Diamond Parking (to be
prorated between the parties
after closing)
TOTAL JUNE RENTS $7,323.19 $ 813.70
1 EARNEST MONEY RECEIPT AND SALE AGREEMENT
This Contract Controls the Terms of the Sale of the Property
3 ~ , 1991
Bremerton, Washington 98310
RECEIVED nOM THE CITY OF BREMERTON, hereinafter called
5 "Purchaser", the sum of One Thousand Dollars ($1,000.00), in the
form of a check, which will be delivered to the agent hereinafter
6 designated, who is authorized to hold said funds as earnest money
and as part payment onthe purchase price of the following described
7 real estate which Purchaser hereby agrees to purchase and Sellers
hereby agree to sell, located in Kitsap County, Washington, commonly
$ known as ~&5 4th Street Build{.ng, Bremerten, Washington 98310, and
legally described as follows:
9
Lots 28 and 29, Block 7, Town of Bremerton,
1~ according to plat records Volume 2, of Plats,
page 30, records of Kitsap County, Washington,
1! and
Lots 12 and 13, Block 7, Town of Bremerton,
12 according to plat records, Volume 2 of Plats,
page 30, records of Kitsap County, Washington
13 (also known as Parking Lot)
14 Purchaser shall pay purchase price of Five Hundred
Thousand Dollars, ($500,000.00), payable as follows:
~%~fl~MPTZON OF DEBT, TRADE OF PROPERTY, AND ~H ~T CLOSING
16
Purchaser will assume and hold Sellers harmless from a
17 Note secured by a Mortgage on the property in favor of Wallach,
Olberg and Benson, in the approximate amount of One Hundred Ninety
18 six Thousand Dollars ($196,000.00), payable at Two Thousand Eight
Hundred Dollars ($2,800.00) per month with interest at eight percent
19 ~%) per annum, and then execute a Statutory Warranty Deed to 286
6~ Street, B~erton, Washington (legal to b~ attached), the trade
20 value of 286 ~6t~H Street to be One Hundred sixty Thousand Dollars
($160,000.00) J--Purchaser further agrees to pay the balance of the
21 purchase price at closing, approximately One Hundred Forty Four
Thousand Dollars ($144,000.00), including earnest money.
CONTINGENCIEB
23 '
Sellers give Purchaser twenty (20) days after request and
24 delivery to review the books, records and leases pertaining to said
property. If Purchaser is not reasonably satisfied after inspection
25 of the foregoing, Purchaser may cancel this Earnest Money Receipt
and Sale Agreement without penalty. In the event this contingency
26
HALL
PINCKNEY
KINTNER, P.S.
EARNEST MONEY RECEIPT ATTORNEYS &T LAW
AND SALE AGREEMENT -1
! is not exercised within the twenty (20) days, it shall be deemed
waived.
Purchaser has initiated this transaction through its
3 mayor, Louis Mentor, who will need the approval of the Bremerton
City Council after Sellers accept this offer and the prior
4 contingency has been waived. Bremerton City Council will have 45
days from removal of the first contingency to accept or reject this
f agreement. If the city Council rejects this agreement, Purchaser,s
mayor may cancel this Earnest Money Receipt and Sale Agreement
6 without penalty.
? SPECIAL PROVISIONS
$ /~ Purchaser shall ent~J ~nho ~ lease with Sellers for 286
6~St~e~t upon terms to be negotiated in good faith, but to contain
9 ~ a minimum=
l0 1) Full use of the premises for $3,000.00 per month,
triple net for twelve (12) months;
11
2) Lessees shall be responsible for all utilities and
12 maintenance of the property during occupancy;
13 3) An option to renew for up to twelve (12) additional
months at Five Thousand Dollars ($5,000.00) per
14 month.
If TITLE
16 Title to the properties being traded is to be clear of
encumbrances or defects, except those specifically herein referenced
17 as being assumed by grantee.
18 Existing reservations, existing easements not inconsistent
with Purchaser,s intended use, building or use restrictions general
19 to the district, and building or zoning regulations or provieions
shall not be deemed encumbrances or defects. Encumbrances to be
20 discharged by Sellers may be paid out of purchase money at date of
closing. The parties warrant that they have complied with all
21 governmental platting laws or regulations applicable to the subject
properties, and further agree to hold each other harmless from any
22 and all liability or damages occasioned by their failure to comply
with said platting laws.
REPRESENTATIONS
24
The parties warrant as to each of their respective
2~ properties being traded:
(1) that the property is connected to a public/community
26 water main and a public sewer;
HALL,
PINCKNEY
KINTNER, P.S.
EARNEST MONEY RECEIPT ATTORNEYS AT LAW
AND SALE AGREEMENT -2 ~--.~.~,
1 EARNEST MONEY RECEIPT AND SALE AGREEMENT
This Contract Controls the Terms of the Sale of the Property
3 April , 1991
Bremerton, Washington 98310
4
RECEIVED PROM THE CITY OF BREMERTON, hereinafter called
5 "Purchaser", the sum of One Thousand Dollars ($1,000.00), in the
form of a check, which will be delivered to the agent hereinafter
6 designated, who is authorized to hold said funds as earnest money
and as part payment on the purchase price of the following described
7 real estate which Purchaser hereby agrees to purchase and Sellers
hereby agree to sell, located in Kitsap County, Washington, commonly
8 known as 245 4th Street Building, Bremerton, Washington 98310, and
legally described as follows:
9
Lots 28 and 29, Block 7, Town of Bremerton,
1~ according to plat records Volume 2, of Plats,
page 30, records of Kitsap County, Washington,
11 and
Lots 12 and 13, Block 7, Town of Bremerton,
12 according to plat records, Volume 2 of Plats,
page 30, records of Kitsap County, Washington
13 (also known as Parking Lot)
14 Purchaser shall pay purchase price of Five Hundred
Thousand Dollars, ($500,000.00), payable as follows:
/%~SUMPTION OF DEBT, TI~ADE OF PROPERTY, ]~ND CASH ~T CLOSING
16
Purchaser will assume and hold Sellers harmless from a
17 Note secured by a Mortgage on the property in favor of Wallach,
Olberg and Benson, in the approximate amount of One Hundred Ninety
15 Six Thousand Dollars ($196,000.00), payable at Two Thousand Eight
Hundred Dollars ($2,800.00) per month with interest at eight percent
19 (8%) per annum, and then execute a Statutory Warranty Deed to 286
4th Street, Bremerton, Washington (legal to be attached), the trade
20 value of 286 4th Street to be One Hundred Sixty Thousand Dollars
($160,000.00). Purchaser further agrees to pay the balance of the
21 purchase price at closing, approximately One Hundred Forty Four
Thousand Dollars ($144,000.00), including earnest money.
CONTINGENCIES
Sellers give Purchaser twenty (20) days after request and
24 delivery to review the books, records and leases pertaining to said
property. If Purchaser is not reasonably satisfied after inspection
If of the foregoing, Purchaser may cancel this Earnest Money Receipt
and Sale Agreement without penalty. In the event this contingency
HALL,
PINCKNEY
AND SALE AGREEMENT - 1 ~ 4,. ~--. ~,. ~, .~.~.,o.. wA.~,~
! is not exercised within the twenty (20) days, it shall be deemed
waived.
Purchaser has initiated this transaction through its
3 mayor, Louis Mentor, who will need the approval of the Bremerton
City Council after Sellers accept this offer and the prior
4 contingency has been waived. Bremerton City Council will have 45
days from removal of the first contingency to accept or reject this
f agreement. If the City Council rejects this agreement, Purchaser's
mayor may cancel this Earnest Money Receipt and Sale Agreement
6 without penalty.
7 SPECIAL PROVIBIONS
8 Purchaser shall enter into a lease with Sellers for 286
4th Street upon terms to be negotiated in good faith, but to contain
9 at a minimum:
10 1) Full use of the premises for $3,000.00 per month,
triple net for twelve (12) months;
1!
2) Lessees shall be responsible for all utilities and
12 maintenance of the property during occupancy;
13 3) An option to renew for up to twelve (12) additional
months at Five Thousand Dollars ($5,000.00) per
14 month.
If TITLE
16 Title to the properties being traded is to be clear of
encumbrances or defects, except those specifically herein referenced
17 as being assumed by grantee.
15 Existing reservations, existing easements not inconsistent
with Purchaser's intended use, building or use restrictions general
19 to the district, and building or zoning regulations or provisions
shall not be deemed encumbrances or defects. Encumbrances to be
20 discharged by Sellers may be paid out of purchase money at date of
closing. The parties warrant that they have complied with all
21 governmental platting laws or regulations applicable to the subject
properties, and further agree to hold each other harmless from any
22 and all liability or damages occasioned by their failure to comply
with said platting laws.
REPRESENTATIONS
24
The parties warrant as to each of their respective
25 properties being traded:
(1) that the property is connected to a public/community
26 water main and a public sewer;
HALL,
PINCKNEY
EARNEST HONEY RECEIPT KINTNER,P.S.
ATTORNEYS ET LAW
AND SALE AGREEMENT -2
! (2) that all electrical wiring, heating, cooling and
plumbing systems will be in working order at the time the other
2 party is entitled to possession;
(3) that they know of no material structural defects;
3 (4) that they will maintain the property in present or
better condition until agreed possession; and
4 (5) that they have no notice from any governmental agency
of any violation of laws relating to the subject property, including
5 environmental contamination or Superfund violations.
6 PRO RATE ITEMS
7 Taxes for the current year, rents, interest, insurance
premiums, water, light, and other utilities constituting liens, and
8 other applicable items shall be prorated between Purchaser and
Sellers. Unless otherwise stated herein, all adjustments are to be
9 made as of the date of closing.
10 POSSESSION
1! The parties shall be entitled to possession of the
respective properties being traded on closing.
12
INCLUDED ITEM~
13
Other than noted above, linoleum, window screens, screen
14 doors, plumbing and lighting fixtures (except floor, standing and
swag lamps), built-in appliances, shades, Venetian blinds, curtain
15 rods, all attached bathroom fixtures, attached television antennas,
attached carpeting, trees, plants and shrubbery in the yard, water
16 heating apparatus and fixtures, awnings, ventilating, cooling and
heating systems, and attached irrigation equipment now on the
17 premises, if any, shall be included in the sale.
18 FORFEITURE
19 In the event of a default by Purchaser, it is agreed that
the earnest money shall be forfeited as liquidated damages unless
20 Sellers elect to enforce this agreement or seek damages for breach
thereof.
In the event that either Purchaser or Sellers shall
22 institute suit to enforce any rights hereunder, the successful party
shall be entitled to full court costs and reasonable attorneys'
23 fees. In the event of trial, the amount of attorneys' fees shall be
as fixed by the court.
24
CLOSING
Closing shall be at the offices of HALL, PINCKNEY &
26 KINTNER, P.S., within thirty (30) days after preliminary commitment
HALL,
PINCKNEY
K rENER. P.S.
EARNEST MONEY RECEIPT ATTORNEYS ~T LAW
AND SALE AGREEMENT -3 ~54~'~'~'~I~N~M6"?ON'WAP~'O
for title insurance as provided by Ticor Title Insurance Company is
delivered showing ti.t~.~nsurable as above provided, but .in ~ny
event not later than~l, 1991, which shall be the termination
date of 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 to Sellers. Purchaser and Sellers will, on
demand of either, deposit in escrow with HALL, PINCKNEY & KINTNER,
P.S. all instruments and monies requested to complete the purchase.
It is understood that there are no verbal or other agreements which
modify or affect this agreement and that the agent is not
responsible for delivery of title or possession of the premises.
The costs of escrow shall be paid by Sellers. Purchaser
acknowledges that HALL, PI~CKNEY & KINTNER, P.S. represents Sellers'
interests and that escrow services are not an indication of shared
legal representation. Purchaser represents its own interests and
may have its own counsel. This agreement is binding upon the heirs,
executors, administrators, successors and assigns of Purchaser and
Sellers.
If prior to closing, improvements on either of said
premises shall be destroyed or materially damaged by fire or other
casualty, this agreement at option of the party to receive said
premises shall become null and void.
TITLE INSDRANCE
The parties will make available title insurance
commitments for their respective properties as soon as reasonably
procurable. The parties authorize HALL, PINCKNEY & KINTNER, P.S.,
to apply for title policies, showing condition of title within the
specified time. The title policies to be issued shall contain no
exceptions other than those provided for in said standard forms plus
encumbrances and defects noted above. If titles are not so
insurable as herein provided and cannot be made insurable withinthe
time specified above, earnest money shall be refunded and this
agreement terminated, PROVIDED THAT either party may
wa_ye defects
as to the property they are to receive and elect to proceed to
consummate the sale.
CONVEY/%NCE
Title shall be conveyed by warranty deed free of
encumbrances or defects except those noted herein.
AS IS CLAUSE / INSPECTION REPORT
The properties shall be traded in their present condition.
The parties shall have the right at their expense to have the
respective properties inspected and to obtain a report of structural
condition. In the event the report indicates the necessity for
HALL
PINCKNEY
AND SALE AGREEMENT -4 ~.~.--.~.~,
! repair of structural damage exceeding Two Thousand Dollars
($2,000.00) in estimated repair costs, the grantee may terminate all
obligations of the parties hereunder bydelivering a written notice
to do so, together with a copy of said report, within thirty (30)
3 business days from acceptance hereof.
4 The parties acknowledge that they have not received or
relied upon any representations by either with respect to the
5 condition of the properties being traded, other than those set forth
herein.
CLOBZNG COBTB
?
Purchaser and Sellers acknowledge that the payment of
8 closing costs is required by them in conjunction with this
transaction.
9
AGREEMENT TO PURCHASE
Purchaser's offer is made subject to acceptance by Sellers
11 on or before midnight of , 1991.
12 Notice of acceptance given to agent by Sellers shall be
considered as given to Purchaser. If Sellers do not accept this
]3 agreement within the time specified, the Earnest Money shall be
refunded to Purchaser on demand. Time is of the essence of this
14 agreement.
Louis men=or, Mayor' SAN ~. SIEVERS
]7 239 4th Street City Attorney
Bremerton, WA 98310
1S ATTEST:
ACCEPTANCE AND AGREEMENT BY ~~~ ~
KAT~LEEN M~CLU~K~
We approve this sale and agree to deliver dee~ or con=fac=
for deed in accordance with the terms of this agreement. We
acknowledge receipt of a true copy of this agreement, signed byboth
parties.
Seller:
Edwin J. Bjork
Seller:
Wanda Bjork
25 Sellers' Address: c/o 645 4th Street
Bremerton, WA 98310
26
HALL
PINCKNEY
AND SALE AGREEMENT -5 ~,~ ~--. ~. ~, .~.t.,o.. w~,~,
?11~ HORTGAGOII$:
ZIg FOURTH STREET BUILDING, INC., a ~shlnEton corpo~atlon~ and
EDWIN J. BJOR~ and ~ANDA J. BJORK, husband and ~lfe, .....~.~
'~ ALBERT ~ALLACII and VIOLA ~ALLACH~ husband and ~ife~ .~ %','
~ CLA~ENC~ W. OL~ERG and IRENE OL~ER~, husband and ~lf~, and
,.
REUBEN A. 8ENSON and ~RGARET L. BENSON, husbnnd nad ~tfe
to secure payment of the sum of FOUR HUNDRED THOUSAHD AND 00/1OO
(~400,OO0,00) DOLORS, according to the terms of promissory note , .. -~...
bearing even date herewith, the following described real estate. .t..t~..
delinquency ~11 taxes, special assessments and other public chnr~es -'
levied, assessed or charged against said described prenisess and ~'~.'~
to keep all improvements on said described premises insured a~atnst ""
loss or damage by fire in ~he ~un of not less thnn FOUR HUNDRED
~IIOUSAND AND OO/IOO {$400,000.00) DOLLARS, for the benefit of th~
mortgalees and to deliver all policies and renewals to the mort-
In case the mortgagors shall fail to pay any installment
ness hereby secured shall ~orth~lth become due and payible, at
1N ~ITNESS ~HEREOP, said mortgagors h&ve caused this
24S FOORTII STREET BUILDING, INC.,
I-. I- -i
STATP. OF NASIIINGTON)
) ss
COUNTY OF I(ITSAP )
On this 1st day of October, 1976, before ue, the
undersigned, a Notary Public in and for the State of Washinlton,
· ..: .~
duly commissioned and sworn, personelly appeerea £DNIN J. BJORI~
and NANDA J. BJORK, individually ~nd additionally to ne kno~
to be the President nnd Secret~ry, respectively, of 245 FOURTH
STREST BUILDING, INC., the corporation that executed the fore- · ....
Eoing instrument~ and scknowled~ed the said instrument to be the .
free and voluntary sct and deed of themselves individually and *~ .~..~
of said corporation for the u~es ~nd purposes therein mentioned~
and on oath stated that they ~re ~uthorlzed to. execute the s~id ....
NITN~SS my hand sad official se~l hereto sffixed the d~y
Ste~e of N~shin~ton, residin~
'
~"~' ~ ~CIEEaK~i~ ...... ~ 9~ 489,..., .
L_ L_ -
Insurance Company
~ ";.'Ii ~i'J~
Deed of Trust
Jul
';=.7:. 7 .','. 77., .............................................................. .,", ',.. ' ' .............. , ........... ' ...................... "' '" ....
STATE OF {/ASH[N(ITON) .
~ITHES,'{ n,y h,,,~d nll,I u[[{,:l;]{ *{ca! her~t,, ~[[Ixed ti,,: ,lay 6nd
and deed. [Ol Iht L,~u5 and phrpomcs
F. g25~
630~{ {0}66
"""~" --:83081 I O165--
· First American Title
INSURANCE COMPANY
FILED FOR RECORD
filed for Record at Reques! of L.-/' REQ. OF CHICAGO TIItE AGENC,If'
!
AUG Ia ~933 AM 8:61
· ..: ............................................................................................. SI.IF:Ri'TiC HUFF
, KIISAP COUI11¥ AUDI fOR
."-!,!,,:~.,. ;9? ]'~q~!~ !}~;.'L:..~.P~..~P..I:..t..~...~.~.} ................................ OEPUIY
PI'RCIIASER'S ASSIGNMENT OF CONTRACT AND DEED
/tUG I I I983
Ill[LIE ELJER
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a*~,~. Suite ]400 ~' _ . . fltEl'Jfllf,~f{ICOll(I · I
SAFECO TIII.E INSURANCE COMPANY 51;~:1;1~il. Itlf F
.......
~=.~.**l~ o/o The Ilaga= Co., lac,, 2200 Sixth Aven~,e, Suite ~l~ Seattle. WA
.
r[tl~r}
Frederick I.. and Jeanne S'. I)enman~ Robert Uall, K & D Investment Co., Inc.,
Rldec to Deed of Tcust Dated Septumber l, t98G,
BeLwe~n F'uncth Street Ih~JldJng AssocJdLes, as Grantor;
SAI.'EC() 'lSiLJe ]l~sucal~ce Company, aa Trustee; and
RoGert H. a.d Sarah U. BhtmenthaJ, Tl~eoduce .l. Cross, Johu
H. (flic~) DeJnes; Frederick I.. and Jeanne S. Detlman, Itobect
Ilall~ K R D Investment Co., Inc., Thomas G. and Jerry A.
Kuntz~ llougJau A. ObecL~ R. P. Obert~ II. Ouane Olson~
Rudolph .I. Pasquan, I.eRoy II. Petecso~l, J~. J. ~eLsel~
niHI (:eot'ge I~htte, as Beneficiaries
'Fills Itlbl.'.R Js made this first day of September, 1986, and tn tn-
corporaLed JllLO as~d shall I)e deemed ~o amend and stl[)plement rite deed
o( Lrust referred Lo above (Ll~e "Deed of Trust"). Terms ~hJch ace
(learned ~n the Ih:ud o[ 'l'~usL sl~al] have the meanJ, n~ set gorth there~n
~hun used itt tilJS Ri(lee. To the extent any o~ Lhe terms and ptovJstolls
o[ this RJduc cot~Ellct ~JLh Lhe terms and i>rov~stons o~ the I)eed oE
in addiLion to the covenants and a~teements set Eo:th ti1 the Deed
oE T:ust, (:ranto~ fUELheE covenants and ag:ees as Eo~o~s:
1. Obligations Secnced. This Deed o~ True: secures performance
o[ each and every obligation contained herein and: (t) payment o~ the
sum o~ Two Tho.~and Seven Itund~ed Dogmata (~2~700) tn accordance
the pcovJsi~ns o[ a promissory note oE oven date herewith [~om
to Robert M. and Sucah ~. B]umel~tha~; (Jr) payment o[ the sum o~
t~n 'rhousa~d Dollars (~18,000) Je accordance with the p~ovis~ons of a
~:omtssory n~te of even date herewith from Gcanto: to Theo(oce J.
tit) u~yment -E the sum o[. Five Ilnnd~ed Do~[a~s (~500) tn accordance
~tLh the [~COVl~Jotls e[a [~comJ~sot-y noto o[ even date I~ece~tth ~om
GcanLor to John H. (H~ck) II~lnes; (tv) payment of Lh~ ~n, o~ T~o Thoo-
sund Seven Ihmdred I)o]lars It~ accordance with the provts~ol~ o~ a prom-
[ssocy note o1' even ~laLe here~i Lh f:om Oratttor to Fcecle:ick 1.. and
Jeatme S. I)em.an; (v) payme~t o~ the sum of Two Thoosaed Dollars
($2.000) i. uccocdaece laith tl~e pcovisions of a pcumissory hoLe of even
dale herewith fro., (;rantor to RoburL Ilalll (vi) payme~t u[ the sum of
Two 'l'housa~td Itollac~ (}2~000) i~l accorda~ce ~iti~ the provisions o[ a
Co.~ hie.; {vii} i~ayment o[ the sum o~ q'~o '['hoosand Oo[[a:s (~2,000)
wi Lh [~Olll ~[~llltO~ to Thomas (:. alid Jetty A. Kuntz; (v~tt) paymellt
tl~e 8~1111 o[ ~V~ll 'l'housal~d Two [luildced I)o[~acs ($7,200) [11 accucdance
~tth the pcuvl~ions o[ a p~oIIIJ~SOty note o~ even date he:ew[th ~olR
(;cantor- Lo I~m~g]a~ A. (Jl~ect~ (ix) ~syfllell[ o[ the 911fll o[ ~OllC Thousand
["Jve Ihllld~ed Dollars (~,500) tn accocdance ~th tl~e p~ovt~tons o~
~COIn~SS(It'y [lote ~)~ even dale her~tth from Grantor to R. P. OI)ett; (x)
I>ayment of th~ s,., of 'r~u Tho.sat,d Sevett tlundred Doltars (~2~700) tn
I
8f, I I 4fl I 2 1 '.'
~OUFflll ~I'I~.~F BUILDING ASSOCT{VI't~, a
4.*at~ uixm ~1{~ exi)it'~ttit)n o~ Lh~ k/ashin~;{ Lind~
~:', '' ',/j~'~ ",' ~ashingtOn, ~esidlng at _Seat~lu
;' ~ . ~ [.ty appointment expires 1/29/89
accorda~ce with the i~rovisto~s o~ a promissory note of even date here-
with t'rom Creditor to II. I)L~ane Olsou; (xi) paEment oK the sum o[ T[~o
'l*ho~L~nnd Seve~ II~mH~ed I~oltacs ($2,700) in a~cocdance ~[Lh the provi-
sions ~f a I)t'omiss~cy ~lote of even (late hece~tth from Crantor to Rudolph
J. ['a~q~an; (xit) I~ayme~t of the sum o~ Five Thonsand Dollars (~5,000)
in accocda~ce witl~ the [)covJs~uns oK a promissory nuke oK even date
het'ewith [t-.m ~;t'ant~c to I,elloy II. Pete~uon; (xt[[) [~aymeot of the aura
u[ ~:ive 'rll.~ua~l I"u~,~ [hmdred Dollars (~5~600) in accocdaoce with the
I)~ovlsio~s oK a I)~:omlssory uotu u[ even date herewith [Eom Ccan[o: [o
I~. d. Ueisel; (xiv) I~ayment o~ the sum of Two 'rhonsand Dollars ($2,000)
Jn acc(~du~tc~ ~ith the p~ovl~ions oK a p~o~Jssory no[e oK even date
herewith [t'.m (;ranto[ Lo Ceorge H. ~hite; (xv) any and all exten~ions~
mo~ll[:icaLl~nu, ~e~cwnls ut' cel)lacements of any ef the above; and (xv[)
such [[IEt~r shins as may he advanced by Ilene[iciacy Iutde: any
oK :hi~ I)eed uf 'l'~:~st in ocde~ to p~otect its security.
2. I'~lurity. This t)eed oK T~ust is snhjec: und subordinate to:
([) a wcai~aco~md deed of t~st dated J~ly 27~ 1983, and [-ecocded on
August Il, I~Jg'~ ~mdec A~dito~"s File Ho. 8308110165, records oK KitsaI)
Com~:y~ I~ashi~gton, hetween (lcantor herein as g~antot~ Chicago Title
lnsu/auce COral)airy~ as 'l'~osKee~ and U.S. C~ed[tcot'p~ aa Oregon
tioga, as henu[tcin~:y (the "First Ileed oK Trust"); and (ti) a deed oK
ti'us[ dated A~gust 12, 1983~ a~l recorded on Aug~tst 11~ [~)83~ under
Au~iitoc~s File Nu. 830811~166, ~ecocds oK Kitsal~ County, Washington~
between Cra~tor herein as grantor, Chicago Title Agency oK Kitsap
County as t~tee, and I~dwi~ J. Bjotk a~d ganda J. Block, husband and
wi[e, as he~[icia~ius (the "Second Deed OK Trust").
Ccautor egrees to ~ul)ject and suho~dinate the lien of [his I)eed
of T:t~st to a deed ~[ trust o: mortgage ut deeds oK t~usL DC mortgages
(DC comht~nti~s theceu~) placed on the Pcoi~et[y affected hereby either
tu sni)stit~Hl~m f~t: ~r In a~lditton to the Fi cs: and Second Ileeds oK
'l'~st (Dc eiih~c ~[ Lh~m) (such substitu&ed DC added deeds oK
and/ut mortgages I)eing re[~tce(I to collectively as tile "New Deeds oK
Trust") provided tl~at all s~ch deeds oK [rust DC mortgages (including
the First al~(I Second Deeds of T~usL to the extenL they continue [o
a[[ect the I'Col~erty) to whLch Lhis ~eed of Trust shall at any time
s~d)ordt~ate secl~t'e-indei~tednusses which ace (i) in [avuc oK institution-
lenders au~i/~r the I~ucties [tom [~hom the Dcopecty [~as acquired,
the aggregate do ,~ot exceed ~698,700~ (iii) have original tetas oK
[ee~L [Jve y~at's, and (tv) ~d~en considered togeti~e~ with the indebt-
ed~ess ~ecnt'ed he[eby do nut In the aggregate exceed ninety i)eccent
(90~) oK the val~,e [r~m time to time oK the Pcoi~e~ty secured hereby.
(;cantor ~rees t~) [)~eserve and ptuLect the I~c[ocity oK this I)eed
oK Tr~& as n thi[d lie~ ol~ Lheli~tol)ecty~ subject only Lo the First and
Seco,~d I~eeds ~[ 'l'[',~sL and any N~ Deeds oK T~ust. Ctanto~
a&cees to c~mlHy with each and every oK the tecms~ covenanLs and condi-
ti(ms oK the Fi~sL a~d Second Ileeds o[ Trust and any New I~eeds oK T~ust,
Et3 7[H98
861104f)l l
event of default I~ecetlnder entitlin§ Co-Ben~[lcieries, at Lh(-'ir $o].e
opLion, to: (I) c.ce s,ch deEat~l: for the accom~t of Gcantot~ ia ~hich
event ali stm~s expemled by Co-Bene~icJ. actes tn connection Lherewi:h
sila][ be addud to ami become a pa~t o~ the ~ndebtedness secuced by this
Deed o~ Tr,st; aml/oc (it) declace the unpaid balance o~ the notes
seguced hereby (the "NoLes") immedLate]y due an~ vayabLe in fu~ and to
po~sue alW or all of the other remedSes for default provided ~oc in the
No,es o~ in this Beed of 'l'rust~ tf the de[at, It is noL cured ~i. thin the
applicable grace pecJods specified ~ the HoLes.
3. Sale oc Tcafisfer of Pcoperty. The Notes shall become tmmedt-
aLely dne ami payable In full, ~ithout notice or demand from
t-y~ upoa a~y sale ~r Lrunafec or the P~operty of any tnLetest Lhe~ein
by Crantor.
6. ~ross-Ilefa~llL Pcovision. The occ,trenco of an event o~ de[.aulL
nnder a~y of the Itotes which ~s noL cured hy Crantoc ~tthin the appli-
cable gcace period for the tiering of such defaulL specified in the Note
shall conutit~tte a~ eye,it of deja. It hereundec a~d trader each uf the
oLhuc
IN ~ITtlESS ~IIII~IIEOF~ ~ral~tot has executed this Rider as of the
ami yea~ above ~lrittelt.
~OURTll STR~T BUILDING ASSOCIAT~S~
a ~ashlngton limited partnership
by The Ilegar Company~ lnc.~ its
~eneral Partnec
rd II. Ilagar, Jr., ~est(~~
Bgl ltq4012
hartcr 'itlc or0oration
3100 N.W. Bucklin lull Road · Suite 100 · RO. Box ~27 · Silve~dale, WA 98383
(206) 692-9314 ° (20~) 624-3938 (Seattle line)
To: HALL, PINKNEY & KINTNER Reference Number: 1009
645 4TH STREET
BREMERTON, WASHINGTON 98310 Seller/Mortgagor: BJORK
ATTENTION: LARRY HALL Purchaser: CITY OF BREMERTON
Title Order Number: 20825F-D
Supplemental Number: 1
SUPPLEMENTAL TITLE REPORT
The following matters affect the property covered by this order:
IX] Paragraph(s) Number 13, 14 & 15 of our preliminary commitment is/are eliminated.
~] The Policy is being issued in accordance with your instructions.
D~ OUR INSURANCE COVERAGE HAS BEEN AMENDED TO READ AS FOLLOWS:
THE OWNER'S STANDARD COVERAGE IS AMENDED TO: $475,000.00
PREMIUM: $ 50.00
TAX: $ 3.90
NEW PREMIUM TOTAL: $ 53.90
Except as to the matters reported hereinabove, the title to the property covered
· by this order has NOr been reexamined.
There has been no change in the title to the property covered by this order since
, EXCEPT the matters noted hereinabove.
Dated as of MAY 24, 1991 at 7:30 A.M.
CHERYL,. D~MAY ~
complimcm~ ~f ~~v ~tl¢
................... ~ .-,.., , ~. / ·
~ ., ,,~ .... : ,:~ ,~ ~-~. ~ .' , /
,~ t-' , t t ~,. ~_;~,~.~ ~ ./ ..,.."*
M. ROSENBLATT & SON. INC.
MF,~0tL~i'aUH
~OM: Wally
S~jec~: Rent~en~ ~r 245 4th S~, Bremer~on
[n accor~ce wi~ our c~enC lease (91~ firs= ~en~enc) which e~ires 28
Feb 1989 a first ~d lasu paten= has been ~de. ~erefore ~ NOT 9ay reno
the ~ar Co. any for ~e ~nCh of
In accor~nce w[=h second ~en~en= co =he s~]ecc lease (for 1 ~r 89 co 29
Feb 92) 91ease scar= 9ayin~ renC a= a race of $3,500,00 9er month suar=in~ 1
April 89. For 1 ~ar pa~enC please 9ay first (~ar 89) and las= (Feb 92)
months ten=. Please note on sub]ec= check ~a= ic is Eot firs= and
months reno. (I would also like a copy for our office files).
If you have any ques=ions, call.
A~ION: Do no= 9ay Feb 89 ten=, 9ay first and las= on or before [ ~r 89
($7,000.00) and con=inue new reno 9a~enCs aC $3,500.00 9er month.
cc: A. S=eln
S. Hall~ern
Jenuary 29, 2990
Peul,th Street B~13dl~t~ Associates
Suite
~rfmerton, Ye ~85J0
In connection with the regula~ examination of our fi~aneia) st.atemente,
p~eaae co~£i~m directly to our aud~to~
Harry Ote~nbe~
~ertLf~ed Pub~tC Accountant
230 Perk Avenue
New ¥ork~ NY ~0269
the detaL:s of any ae~u~ty deposits you are holding fo~ eu~ aeeeunt
aa at Decembe~ 31, 1959, including :he lnlerest ~a:e and e~y lnteres~
acceded theeeon.
AJso p/ease sne].ose · ~atai[ed statement of any be[ante due to you
as at Decemhee 31, 1989,
Cont~o~/e~
No security depoat[ I)etng ~eld. Ho~evet, S3,500 at' rent f'ot
us et Oecembe~ 31, 1~9.
·
1991
Fourth Street Building Aeao~ia=~i
Suite 408
Bremerton~ Wa 98310
Centlemonl
In connection with the regular examinatioh of OUr financial
statements, please confirm directly to our accountants,
David Michael & Co.~
7 Penn
New Yor~v N.Y. 10001
the details Of any leOurity del~lta you are bolding for out
a~count &e et December 31, 1990, including t/~& interest Tote and
any interest accrued thereon.
AleQ please enclose · detailed statement of any balance due to yOU
aa &t December 31, 1990.
Control 1er
A T T O R N E Y S A T L A W
Mayor Louis Mentor M~¥u~8 OFFICE
City of Bremerton
239 4th Street
Bremerton, WA 98310
Re: 245 4th Street/Bjork
Our File No. 10009D
Dear Louie:
Enclosed please find a copy of the amended Earnest Money
Receipt and Sale Agreement for the purchase of 245 4th
Street by the City of Bremerton.
Please note I have made the revisions per our discussion
in which we corrected the street address for the City
Permit Building (copies reflecting those changes are
enclosed for convenience).
Very truly yours,
HALL, PINCKNEY & KINTNER, P.S.
LRH:msa
Enclosure
cc: Edwin Bjork
Lany R. Hall James P. Kintner Ronald R. P~nckney Nancy L. Rees
645 4th St. Suite 201 Bremerton, WA 98310 (206} 373-9515 FAX {208) 479-8527
ADMINISTRATIVE SERVICES KATHLEEN McCLUSKEY, DIRECTOR
Gateway to the Olympics and Home of the Puget Sound Naval Shipyard
America's Most Liveable City
May 8, 1991
Hall, Pinckney & Kintner, P.S.
645 4th Street' Suite 210
Bremerton, WA 98310
Dear Mr. Hall:
Enclosed is the executed copy of the Earnest Money Receipt and Sale
Agreement. Please enter date on page 4 as convenient for the
Bjork's. As you know, the check was previously delivered.
Please return a copy to my attention after signature by the
Bjork's.
Sincerely,
Director, Administrative Services
KLM:ab
239 4TH STREET · BREMERTON, WA 98310 · (206) 478-5290
~'TY OF BREII~RTOM
ADIL~IF~BTRAT2.vE BBRV~C~B
MBMORAMDUM
Date: May 24, 1991
To: Ken Brees, Street Superintendent
From: Kathleen L. McCluskey, Director of Administrative Services
Re: Fourth Street Building
As you know, the City recently approved purchase of the Fourth
Street Building. Part of the funding approved was for the roof,
exterior sealing and heating/air conditioning system. The
coordination of this work should be handled byGeneral Facilities.
Although the property transfer is not yet final, it should be
within 30 days. We would like to see the above work start
immediately following closure so the preliminarywork (preparation
of specs, etc.) should be started now. I would suggest that you
obtain a copy of the financing information from Rich Hanna and the
structural reports from the Mayor. Please let me know if we can
assist in any way.
O I~:eh
cc: Mayor Mentor
Rich Hanna
ADMINISTRATIVE SERVICES · KATHLEEN McCLUSKEY, DIRECTOR
'" .... America's Most Livmble City
'~ 19~ June 17, 1991
Mr. Eddie Bjork
3016 Marine Drive
Bremerton, WA 98312
Dear Eddie:
I've reviewed the leases and Schedule of Rents you provided and am
having difficulty determining the actual rental amounts being paid
by tenant· at this time.
Many of the rental amounts listed on the Schedule of Rent· dated
July, 1990 are less than .the rents paid at the expiration of the
tenants lease. There are no letters of agreement or.any other
correspondence to corroborate those amount·.
From what I can determine, the only current leases are McCaw
Communications and Rosenblatt and I have. not yet received a copy of
the Rosenblatt lease.
Please provide me with a copy ~f the Rosenblatt lease, any
correspondence or agreement· regarding current rent of any tenant,
and a current Schedule of Rents showing actual amount· being
received as of June, 1991. Al·o, if any offices are occupied by
non-paying tenants, please list those ·pace· and square footage.
Thank you for your assistance. Please give me a call if you have
any questions..
Sincerely,
Kathleen L. McCluskey
Director of Administrative Services
KLM:eh
cc: Mayor Mentor
bcc: Rich Hanna
Ian Sievers
2~4~STREET · BREM~TON, WAg~I0 · ~)4~-~
City Attorney's Office
239 4th Street
Bremerton, WA 98310
Re: Bjork 4th Street Building
Our File No. 10009D
Dear Sir or Madam:
Enclosed please find the Policy of Title Insurance for the
Fourth Street Building.
If you should have any questions, please feel free to
contact our office.
Respectfully,
HALL, PINCKNEY & KINTNER, P.S.
Receptionist
Enclosure
L~ny R. Hall lames P. Kintner Ronald R. Pinckney Nancy L. Rees
645 4th St. Suite 201 Bremerton, WA 98310 {206) 373-9515 FAX (206} 479-8527
JU~'-- ~0-- 92 TUE 1~ : 29 ~ . M I CH ~ E L ~P - ADffi~ ?
April 2. 1992
Sremerton, Wa 98310
Re: 245 4th Street Sremerton
Gentlemen:
In connection with the regula~ examin&tion Of our financial
statements, please conflrm directly to our accountants,
David Nlchae! &
Suite 316
7 Penn Plaza
New York, N.Y. lOS01
the details Of any security deposits you era hOlding for our
account aa at D~cember 31, 1991, including the interest rate and
any interest accrued thereon.
Also pleaee enclose a detailed statement or any balance due to
you aa at December 31, 1991.
Very trul~ ~OU~e,
~ Controller
Date: April 3, 1992
TO: Xan Siever., Cit~ &tto~.~e~,
From: Kathleen McCluskey, Admxnxstrative Services Director
Re: Pourth Street Buildin~
Attached is a copy of the earnest money agreement for the Fourth
Street Building purchase. Does Bjork have any responsibility for
the asbestos? This will likely be asked Monday night at the study
session.
KM:eh
attachment
RECEIVED : ,f--,', .
"--- APR - 61g
! EARNEST MONEY RECEIPT~BE~_~~
This Contract Controls the Te~a- ' ........ e Property
3 May ~ , 1991
Br~erton, Washington 98310
4
aacazvaD ~ao~ T~E CZTY OF Ba~TON, hereinafter called
~ "Purchaser", the sum of One Thousand Dollars ($1,000.OO), In the
fo~ Of a check, which will be delivered to the agent hereinafter
6 designated, who is authorized ~o hold said funds as earnest money
and as part pa~ent on ~he purchase price of the following described
? real estate which Purchaser hereby agrees to purchase and Sellers
hereby agree to sell, located in Kitsap County, Washington, co.only
8 known as 245 4th Street Building, Bremerton, Washington 98310, and
legally described as follows=
Lots 28 and 29, Block 7, Town of Bremerton,
]~ according to plat records Volume 2, of Plats,
page 30, records of Kitsap County, Washing[on,
11 and ,
Lots 12 and 13, Block 7, Town of Bremerton,
12 according to plat records, Volume 2 of Plats,
page 30, records of Kitsap County, Washington
13 (also known as Parking Lot)
]4 Purchaser shall pay 9urchase price of Four Hundred Seventy
Five Thousand Dollars, ($475,000.00).
~L ~H
16
Purchaser agrees to pay all cash to Sellers of which the
17 above receipted earnest money is a part.
18 CO~ZNGENCIES
19 Sellers give Purchaser twenty (20) days after re,est and
delivery to review the books, records and leases pertaining to said
20 property. If Purchaser is not reasonably satisfied after inspection
of the foregoing, Purchaser may cancel this Earnest Money Receipt
21 and Sale Agreement without penalty. In 2he event this contingency
is not exercised within the twenty (20) days, it shall be deemed
22 waived.
23 Purchaser has initiated this transaction through its
mayor, Louis Mentor, who will need the approval of the Bremer~on
24 City Council after Sellers accept this offer and the prior
contingency has been waived. Bremerton City Council will have 45
2~ days from removal of the first contingency to accept or reject this
agreement. If the City Council rejects this agreement, Purchaser's
HALL,
KINTNER, P.S.
EARNEST MONEY RECEIPT AI'?O~N~YS ~T LAW
AND SALE AGREEMENT -1
! mayor may cancel this Earnest Money Receipt and Sale Agreement
without penalty.
TITLE
Title to the property is to be clear of encumbrances or
4 defects, except those specifically herein referenced as being
assumed by grantee.
S
Existing reservations, existing easements not inconsistent
§ with Purchaser's intended use, building or use restrictions general
to the district, and building or zoning regulations or provisions
? shall not be deemed encumbrances or defects. Encumbrances to be
discharged by Sellers may be paid out of purchase money at date of
$ closing. The parties warrant that they have complied with all
governmental platting laws or regulations applicable to the subject
9 properties, and further agree to hold each other harmless from any
and all liability or damages occasioned by their failure to comply
10 with said platting laws.
1! REPRESENTATIONS
12 Sellers warrant:
(1) that the property is connected to a public/community
13 water main and a public sewer;
(2) that all electrical wiring, heating, cooling and
14 plumbing systems will be in working order at the time the other
party is entitled to possession;
15 (3) that they know of no material structural defects;
(4) that they will maintain the property in present or
16 better condition until agreed possession; and
~ (5) that they have no notice from any governmental agency
17 of any violation of laws relating to the subject property, including
environmental contamination or Superfund violations.
18
PRO P~TE ITEMS
19
Taxes for the current year, rents, interest, insurance
10 premiums, water, light, and other utilities constituting liens, and
other applicable items shall be prorated between Purchaser and
21 Sellers. Unless otherwise stated herein, all adjustments are to be
made as of the date of closing.
POSSESSION
Purchaser shall be entitled to possession of the property
24 on closing.
26
HALL,
P CKNE¥ &
AND SALE AGREEMENT -2
XM~LUD~D
2 Other than noted above, linoleum, window screens, screen
doors, plumbing and lighting fixtures (except floor, standing and
3 swag lamps), built-in appliances, shades, Venetian blinds, curtain
rods, all attached bathroom fixtures, attached television antennas,
4 attached carpeting, trees, plants and shrubbery in the yard, water
heating apparatus and fixtures, awnings, ventilating, cooling and
5 heating systems, and attached irrigation equipment now on the
premises, if any, shall be included in the sale.
6
? FORFBITUR~
In the event of a default by Purchaser, it is agreed that
$ the earnest money shall be forfeited as liquidated damages unless
Sellers elect to enforce this agreement or seek damages for breach
9 thereof.
10 In the event that either Purchaser or Sellers shall
institute suit to enforce any rights hereunder, the successful party
I1 shall be entitled to full court costs and reasonable attorneys'
fees. In the event of trial, the amount of attorneys' fees shall be
12 as fixed by the court.
13 CLOSING
14 Closing shall be at the offices of HALL, PINCKNEY &
KINTNER, P.S., within thirty (30) days after preliminary commitment
15 for title insurance as provided by Ticor Title Insurance Company is
delivered showing title insurable as above provided, but in any
16 event not later than July 1, 1991, which shall be the termination
date of this agreement. Closing for the purpose of this agreement
17 is defined as the date that all documents are executed and the sale
proceeds are available to Sellers. Purchaser and Sellers will, on
15 demand of either, deposit in escrow with HALL, PINCKNEY & KINTNER,
P.S. all instruments end monies requested to complete the purchase.
19 It is understood that there are no verbal or other agreements which
modify or affect this agreement and that the agent is not
20 responsible for delivery of title or possession of the premises.
21 The costs of escrow shall be paid by Sellers. Purchaser
acknowledges that HALL, PINCKNEY & KINTNER, P.S. represents Sellers'
22 interests and that escrow services are not an indication of shared
legal representation. Purchaser is represented by attorney Ian R.
23 Sievers. This agreement is binding upon the heirs, executors,
administrators, successors and assigns of Purchaser and Sellers.
24
If prior to closing, improvements on said premises shall
25 be destroyed or materially damaged by fire or other casualty, this
agreement at option of Purchaser shall become null and void.
HALL
KINTNER, P.S.
EARNEST MONEY RECEIPT A ¥ T O 8 N E Y $ &T L A W
AND SALE AGREEMENT -3
! TITLE XNSORAHCE
2 Sellers will make available a title insurance conuitment
for the property as soon as reasonably procurable. Sellers
3 authorize HALL, PINCKNEY & KINTNER, P.S., to apply for a title
policy, showing condition of title within the specified time. The
4 title policy to be issued shall contain no exceptions other than
those provided for in said standard forms plus encumbrances and
S defects noted above. If title is not so insurable as herein
provided and cannot be made insurable within the time specified
6 above, earnest money shall be refunded and this agreement
terminated, PROVIDED THAT Purchaser may waive defects as to the
7 property and elect to proceed to consummate the sale.
8 CONVBYANCB
9 Title shall be conveyed by warranty deed free of
encumbrances or defects except those noted herein.
10
AS IS CLAUSE ! INSPECTION REPORT
11
The property shall be conveyed in its present condition.
12 Purchaser shall have the right at its expense to have the property
inspected end to obtain a report of structural condition. In the
13 event Purchaser obtains such a report indicating the necessity for
repair of structural damage exceeding Two Thousand Dollars
14 ($2,000.00) in estimated repair costs, the grantee may terminate all
obligations of the parties hereunder by delivering a written notice
1S to do so, together with a copy of said report, within thirty (30)
business days from acceptance hereof.
16
The parties acknowledge that they have not received or
17 relied upon any representations by either with respect to the
condition of the property, other than those set forth herein.
18
CLOSING COSTS
19
Purchaser and Sellers acknowledge that the payment of
20 closing costs is required by them in conjunction with this
transaction.
21
AGREEMENT TO PURCHASE
Purchaser's off~r~% ~ade ~ubject to acceptance by Sellers
23 on or before midnight of ~, 1991.
24 Notice of acceptance given to agent by Sellers shall be
considered as given to Purchaser. If Sellers do not accept this
2S agreement within the time specified, the Earnest Money shall be
refunded to Purchaser on demand. Time is of the essence of this
26 agreement.
HALL
PINCKNEY
AND SALE AGREEMENT -4
/
2 Purohaser= citT~~~,re..rto~
3 ~u~ Ian R.]S£evers
4 239 4th Street City Attorney
Bremerton, WA 98310
5 ATTEST =
Kathleen McCluskey0~
7
ACCEPTANCB ~ND AGR,EM~NT
8
We approve this sale andagree to deliver deed or contract
9 for deed in accordance with the te~s of this agreement. We
acknowledge receipt~tr~opy~this agreement, signed by both
12 S~ller.
13
Sellers' Address: c/o 645 4th Street
14 Bremerton, WA 98310
16
17
18
19
21
22
23
24
26
HALL
PINCKNEY ~
KINTNER. P.S.
EARNEST MONEY RECEIPT ATTORNEYS &T LAW
AND SALE AGREEMENT -5 #,~.--.~.~, ~,wA~,0
CITY OF BREMERTON
ADMINISTRATIVE SERVICES
MEMORANDUM
Date: July 2, 1992
To: Ian Sievers, City Attorney
From: Kathleen McCluskey, Admin. Services Director
Re: Rosenblatt
Attached are documents Tom Long, Managing Partner with Rosenblatt,
has discovered relating to the payment of first and last month's
rent to the prior owner of the building. Their attorneys want us
to respond whether or not we are assuming this responsibility. I
have said "no", that we did not =eceive security deposits from
Hagar when we bought the building. However, if they were stated in
the lease and the lease was in effect when we bought the building,
we may have a problem? Please advise.
v~:eh
attachment
SECOND AMENDMENT TO LEASE
This Amendment modifies the Lease dated March 1, 1986, between
FOURTH STREET 8UILOING ASSOCIATES, a Washington limited partner-
ship ("Landlord"), and M. ROSENSLATT & SON, INC., a New York
Corporation ("Tenant").
The te:m of the Lease shall be extendad by three years and shall
end on February 29, 1992.
The rent during the extension period shall be three thousand
five hundred dollars ($3,500) per month in advance.
The Premises shall consist of approximately ~,400 square feet of
floor area being the entire third floor of the building. In ad-
dition, the currently-utilized basement storage area shall be
included.
The lease rate for the usable office space rented shall be $9.00
per square foot with an additional $0.545 per square foot of
office space rented on March 1, 1989 (i.e., 4400 square feet)
allocated to four parking spaces and storage.
Tenant may reduce the amount of space rented, and thereby the
gross rent, at any time after the first year at the rate of
$g.o0 per year per square foot of area reduced provided Tenant
pay to Landlord a penalty of 20% of the reduction of the 9ross
rent for the balance of the lease term. Said penalty shall be
paid in a lump sum at the time of the reduction.
Tenant shall have the option to lease additional available space
in the building at any time during the lease term at an annual
cost of $9.00 per square foot per year for office space and
$1.50 per square foot of storage space. However,-where such
stora9e space is vacant office space, Landlord retains the right
to rent such space to other tenants, in which event Tenant shall
vacate such space within 15 days of receipt of written notice.
The Premises shall be similar to that currently occupied uith
respect to general appearance, availability of building services,
security, accessibility, and "openness." Ail of the space not
now carpeted shall be carpeted with a grade of carpet comparable
to that recently installed elsewhere in the building.
LEASE AMENDMENT
Page 2
The entire space shall receive a cosmetic facelift, including
wall repair, window repair, and repaintin9. An operational deep
sink and 1lO-volt, 30-amp electrical power shall be provided
within the lease area for certain photo-imaging equipment
currently located on the fifth floor. Additional 1lO-volt
electrical receptacles for desk-top equipment shall be provided
to minimize the use of extension cords.
If Tenant closes its Washington office(s) the lease may be
terminated anytime after the first year upon payment by Tenant
to Landlord of an amount equal to 15% of the unpaid rent for the
balance of the lease term. If Tenant re-opens an office any-
where on the west side of Puget Bound during the term of the
lease, Tenant shall pay an additional penalty of 15% of the
9ross rent for the balance of the lease term for all space
reduced durin9 the one-year period immediately preceding the
closure of the office. However, this penalty shall not apply to
any portion of the Premises leased to new tenants or re-leased
to M. Rosenblatt & Bon.
The address of Landlord is 245 Fourth Btreet, Buite 408,
8remerton, Washington 98310.
Ail other terms and conditions of the Lease shall remain in
effect.
LANDLORO: FOURTH BTREET BUILDING ABBOCIATEB
by: The Hagar Company, Inc.,
its General Partner
Howard H. Hagar, 3r~7~es~ent
TENANT: M. ROBENBLATT & SON, INC.
Arnold M. Stein~ Vice President, Operation~
Name and Title
STATE OF WASHTNGTO#
COUNTY OF .~,
~~.~, 19 ~ before -e, the undersigned ·
Notary ehblic, personally ·ppea~od Howard H.
to me known to be the
the corporation ~hat executed the
, a lb~ed partnership ~d
a~ged the said lnstr~ont to ~ the Free ~d vol-
untary oct and deed oF said cor~rotLon as saLd general
partner For the uses ~d purposes therein mentioned, and
off oath 8tmted tha~ the~ were authorLzed to execute the
sa~d ~nstr~ent ~d that the opal, ~f affixed, to ~he
corporate seal of sa~d corporation.
W~tfless my hand ~d orricia~ .e~ thereto affixed
the day and year first a~ve written.
~otary Publ&c ~ ~d for ~he S~a~e
AMENDMENT TO LEASE
This ~mendment modifies the Lease dated March 1, 1986, between
FOURTH STREET BUILDING ASSOCIATES{ a Washington limited part-
nersh:.p ("Landlord"), and M. ROSENBLATT & SON, INC., a New York
corporation ("Tenant").
The term of the Lease shall be extended by two years and shall"
end on the 28th day of February, 1989.
This [.ease may be terminated by either party at any time after
May 31)~ 1987, provided three months' written notic= has been
given
LANDLORD: FOURTH STREET BUILDING ASSOCIATES
by: The Hagar Company, Inc.,
its General Partner
Howard H. HRgar. Jr/~ ~. '
President ' / '
TENANT: M. ROSENBLATT & SON, INC.
Arnold M. Stein, V.P. Operations
CITY OF BREMERTON
ADMINISTRATIVE SBRVZC~-S
MEMORANDUM
To: Ian Sievers, City Attorney
Re: Fourth street Bldg.
Attached is the file on the purchase of the Fourth Street Building.
It appears that according to the Earnest Money, we had the
opportunity to review all records prior to closure and didn't. I
did not receive a copy of the Rosenblatt lease until after the sale
had closed. I've also attached the Rosenblatt file. As you will
note, we do have the same lease documents as provided by Tom Long.
Rosenblatt, McCaw and Steve Rice were the only current lessees when
we bought the building.
KM:eh
attachments
LEASE
THIS LEASE, dated and effective as of the let day of March,
1986, is between FOURTH STREET BUILDING ASSOCIATES, a Washington
limited partnership (hereinafter referred to as "Landlord"), and
M. ROSENBLATT & SON, INC., a New York corporation (hereinafter
referred to as "Tenant"). As parties hereto Landlord and Tenant
agree:
PREMISES
1. Tenant leases of Landlord
the following described premises:
Those premises situate in 0~\~l~-
of Kitsap, State of Washington, ~)0~ ~"~ ~ ~
located on Lots 28 and 29, Block
Washington.
(hereinafter called "Premises").
square feet of floor area comprising
and 501 - 510.
TERM
2. The term of this lease shal.
on the let day of March 1986, and
February 1987, inclusive.
RENT
3. Tenant shall pay to Landlord at 2200 Sixth Avenue, Suite
914, Seattle, Washington 98121, or at such place as Landlord shall
designate, as base rent ("Base Rent" or "rent") for premises the
sum of Six Thousand Two Hundred Thirty-Four and 75/100 Dollars
($6234.75) per month during the lease term. Additional rent for
storage space shall be added to this amount in accordance with
provisions of Exhibit B.
All payments of Base Rent shall be made in advance on
the first day of each calendar month during the lease term or any
period subsequent thereto while Tenant is in possession of Pre-
mises. Base Rent for any partial calendar month shall be pro-
!
BUSINESS PURPOSE
4. Premises are to be used for Engineering Services and for
no other business or purpose without the written consent of Land-
lord.
-1-
UTILITIES AND SERVICE
5. To the extent charges fo'r telephone service, heat,
electricity, gas, water, sewer, garbage collection, and all other
public utilities (collectively the "Utilities") are separately
metered to the Premises, Tenant agrees to pay when due all charges
for the Utilities. Landlord shall not be responsible for or
liable for any damages incurred by Tenant as a result of the fail-
ure of providing the Utilities if due to cause beyond landlord's
control and further provided that Tenant shall pay for any such
charges as Landlord, in its reasonable discretion, may determine
are the consequence of special equipment employed by or special
requirements of the Tenant.
REPAIRS
6. Premises have been inspected and will be accepted by
Tenant subject to those repairs Landlord agrees to make as set
forth on Exhibit A attached hereto and incorporated herein by
reference. Tenant will at all times keep Premises neat, clean and
in a sanitary condition. Landlord shall maintain Premises and the
building of which Premises comprise a portion in a reasonable
state of repair during the full term of this lease, provided that
Landlord shall not be responsible for repair of any damage result-
ing from the negligence of Tenant and provided further that Land-
lord shall not be required to redecorate Premises at any time.
Tenant agrees that at the expiration or sooner termination of this
lease, Tenant will quit and surrender Premises without notice, and
in a neat and clean condition, and will deliver all keys belonging
to Premises to Landlord or Landlord's agent.
ACCIDENTS AND INDEMNITY
7. Tenant will save and hold Landlord harmless from all
loss, damage, liability or expense resulting from any injury to
any person or any loss of or damage to any property caused by or
resulting from any act or omission of Tenant or any officer,
agent, employee, guest, invitee or visitor of Tenant in or about
the Premises or the building of which Premises comprise a portion,
but the foregoing provision shall not be construed to make Tenant
responsible for injuries to third parties caused by the negligence
of Landlord or any officer, agent, employee, guest, invitee or
visitor of Landlord. Landlord shall not be liable for any loss or
damage to person or property sustained by Tenant, or other per-
sons, which may be caused by Premises or the building of which
Premises comprise a portion or any appurtenances thereto being out
of repair, or by the bursting or leakage of any water, gas, sewer,
or steam pipes, or by theft or by any act of neglect of any tenant
or occupant of the building, or of any other person, or by any
other cause of whatsoever nature, unless caused by the negligence
of Landlord or its officers, contractors, licensees, agents,
servants, employees, guests, invitees or visitors.
-2-
USE
8. Tenant shall conduct and'carry on in Premises, con-
tinuously during each and every business day of the term hereof,
the business for which Premises are leased and shall not use
Premises for illegal purposes.
LIENS
9. Tenant shall keep Premises and the property in which
Premises are situated, free from any liens arising out of any work
performed, materials furnished or obligations incurred by Tenant.
ASSIGNMENT
10. Tenant shall not assign this lease or sublet the whole
or any portion of Premises without first obtaining Landlord's
written consent. If consent is once given by Landlord to the
assignment of the lease, or any interest therein, Landlord shall
not be barred from afterward refusing to consent to any further
assignment.
ACCESS
11. Tenant will allow Landlord or Landlord's agent free
access at all reasonable times to Premises for the purpose of
inspection, or of making repairs, additions or alterations to
Premises or any property owned by or under the control of Land-
lord, but this right shall not be construed as an agreement on the
part of Landlord to make any repairs other than those repairs for
which Landlord is responsible pursuant to the terms hereof.
Landlord shall have the right to place and maintain "For Rent"
signs in a conspicuous place on Premises, for thirty (30) days
prior to the expiration of this lease. Landlord shall have the
right to show the interior of Premises to interested parties for
thirty (30) days prior to the expiration of this lease.
DAMAGE OR DESTRUCTION
12. In the event Premises are damaged to such an extent as
to render the same untenantable in whole or in substantial part,
or are destroyed, it shall be optional with Landlord to repair or
rebuild the same; and, after the happening of any such event,
Tenant shall give Landlord or Landlord's agent immediate written
notice thereof. Landlord shall have not more than ninety (90)
days after date of such notification to notify Tenant in writing
of Landlord's intention to repair or rebuild Premises, or the part
so damaged and, if Landlord elects to repair or rebuild Premises,
Landlord shall prosecute the work of such repairing or rebuilding
without unnecessary delay, and during such period the rent of
Premises shall be abated in the same ratio that that portion of
Premises rendered for the time being unfit for occupancy shall
bear to the whole of premises. If Landlord shall fail to give the
notice aforesaid, Tenant shall have the right to declare this
--3--
lease terminated by written notice served upon Landlord or Land-
lord's agent.
In the event the building in which Premises are located
shall be damaged (even though Premises shall not be damaged there-
by) to such an extent that in the reasonable opinion of Landlord
it shall not be practicable to repair or rebuild, or is destroyed,
then it shall be optional with Landlord to terminate this lease by
written notice served on Tenant within ninety (90) days after such
damage or destruction.
For purposes of this Section 12, "substantial part" shall
mean 50% or more of the square footage of the premises.
NOTICES
13. All notices under this lease shall be in writing and
delivered in person or sent by registered or certified mail to
Landlord at 2200 Sixth Avenue, Suite 914, Seattle, Washington
98121, and to Tenant at 245 Fourth Street, Bremerton, Washington
98310, effective as of the postmark time and date, or to such
other place as may hereafter be designated by either party in
writing.
TAXES
14. Landlord shall pay all real property taxes assessed
against the Building and the proper~y upon which the Building is
situated and payable to the City, County or State ("Real Property
Taxes") during the term of this lease and any extension thereof.
If any governmental authority or unit under any present
or future law effective at any time during the term of this lease,
or extension thereof, shall in any manner levy a tax on rentals
payable under this lease or on rentals accruing from use of the
Premises under this lease, or a tax in any form against Landlord
because of or measured by gross income derived from the leasing or
rental of the Premises, or an assessment for any public improve-
ment, Tenant agrees to pay Landlord, after the end of each calen-
dar year, or at the end of this lease if sooner, its pro-rata
share of the annual cost of such taxes or assessment. Tenant's
pro-rata share of such taxes shall be an amount determined by
multiplying the tax rate by the amount of rent due during any per-
iod for which the tax is levied. ~enants' pro-rata share of the
annual cost of any assessment shall be an amount which bears the
same proportion to the total annual cost of the assessment as the
square footage of the Premises bears to the total square footage
(22,600) of rentable space of the Building. Assessments shall be
pro-rated for partial years at the beginning and end of this
lease. For Tenant's default in paying its pro-rata share, Land-
lord shall have the same remedies as upon failure to pay rent.
Tenant shall not be liable to pay any amount because of income tax
of a general nature applicable to Landlord's various interests or
sources of income or tax imposed on 2andlord for inheritance, gift
--4--
or succession taxes imposed on or measured by rentals or other-
wise. In the event that it shall nQt be lawful for Tenant to pay
such tax, or assessment, the rent payable to Landlord under this
lease shall be revised to net Landlord the same net rental after
imposition of any such tax or assessment as would have been pay-
able to Landlord prior to the imposition of any such tax or asses-
sment.
ALTERATIONS
15. Tenant shall not make any alterations, additions or im-
provements in Premises without first obtaining the consent of
Landlord in writing, and all alterations, additions and improve-
ments which shall be made, shall be at the sole cost and expense
of Tenant, and shall become the property of Landlord, and shall
remain in and be surrendered with Premises as a part thereof at
the termination of this lease. If Tenant shall perform work with
the consent of Landlord, as provided above, Tenant agrees to
comply with all laws, ordinances, rules and regulations of the
City of Bremerton and any other authorized public authority.
Tenant further agrees that workmanship will be of a reasonable
commercial quality, in color schemes in accordance with current
building standards, and free of mechanics liens. Tenant further
agrees to save landlord free and harmless from damage, loss or
expense arising out of such work.
ADVERTISING
16. Tenant shall not post, place, or in any manner display
any sign, notice, picture, placard or poster, or any advertising
matter whatsoever, anywhere in or about the Premises or Building
without first obtaining Landlord's written consent. Notwith-
standing any provision of the preceding sentence, Tenant may have
on the door leading to the Premises Tenant's name, occupation,
office hours, and days open.
DEFAULT AND RE-ENTRY
17. If any rents or any other monies above reserved, or any
part thereof, shall be and remain unpaid when the same shall
become due, or if Tenant shall viclate or default in any of the
covenants and agreements herein contained, then Landlord may
cancel this lease upon giving the notice required by law and
re-enter Premises, but notwithstanding such re-entry by Landlord,
any rents or other monies payable hereunder by Tenant which are
not paid when due shall accrue interest at a rate of 18% per annum
until all such rents and monies are paid in full and the liability
of Tenant for all monies owed shall continue and the liability of
Tenant for the rent provided for herein shall not be extinguished
for the balance of the term of this lease, and Tenant covenants
and agrees to make good to Landlor~ any deficiency arising from a
re-entry and reletting of Premises ~t a lesser rental than herein
agreed to. Tenant shall pay such deficiency each month as the
amount thereof is ascertained by La~lord.
COSTS AND ATTORNEYS' FEES
18. If by reason of any default by Landlord or Tenant in the
performance of any of the provisions of this lease it becomes
necessary for the other to employ an attorney, the defaulting
party shall pay all costs, expenses, and reasonable attorneys'
fees expended or incurred by the other in connection therewith,
whether or not any legal action is commenced.
NON-WAIVER OF BREACH
19. The acceptance by Landlord of a partial payment of rent
due and other monies due and interest thereon, or the failure of
Landlord to insist upon strict performance of any of the covenants
and agreements of this lease or to exercise any option herein
conferred in any one or more instances shall not be construed to
be a waiver or relinquishment of any remaining unpaid rent or
unpaid monies and/or interest which may have accrued at the time
or which may accrue thereafter, or of any such, or any other,
covenants or agreements, but the same shall be and remain in full
force and effect.
REMOVAL OF PROPERTY
20. In the event of any entry in or taking possession of
Premises described above, Landlord shall have the right, but not
the obligation, to remove from Premises all personal property
located therein, and may store the same in any place selected by
Landlord, including but not limited to a public warehouse, at the
expense and risk of the owners thereof. Landlord shall have the
right to sell such stored property after it has been stored for a
period of thirty (30) days or more, upon thirty (30) days' written
notice to Tenant given pursuant to the provisions hereof and to
the address as provided herein, with the proceeds of such sale to
be applied first to the cost of such sale, second to the payment
of the charges for storage, if any, and third to the payment of
any other sums of money which may then be due from Tenant to
Landlord under any of the terms hereof. The balance, if any,
shall be paid to Tenant.
HEIRS AND SUCCESSORS
21. Subject to the provisions hereof pertaining to assign-
ment and subletting, the covenants and agreements of this lease
shall be binding upon the heirs, legal representatives, successors
and assigns of any or all of the parties hereto.
HOLDOVER
22. If the Tenant shall, with the written consent of Land-
lord, holdover after the expiration of the term of this lease,
such tenancy shall be for an indefinite period of time on a month-
to-month tenancy, which tenancy may be terminated as provided by
law. During such tenancy, Tenant agrees to pay to the Landlord
the same rate of rental as set forth herein for the period immed-
iately preceding such expiration, .unless a different rate is
agreed upon, and to be bound by all of the terms, covenants, and
conditions as herein specified so far as applicable.
SUBORDINATION
23. This lease is subject and is hereby subordinated to all
present and future mortgages, deeds of trust and other encum-
brances affecting Premises or the property of which Premises are a
part. Tenant agrees to execute any instrument which may be deemed
necessary or desirable by Landlord to further effect the subordin-
ation of this lease to any mortgage, deed of trust or encum-
brances.
ACCIDENTS, INDEMNITY AND WAIVER OF SUBROGATION
24. Except as hereinafter waived, Tenant shall defend and
indemnify Landlord and save it harmless from and against any and
all liability, damages, costs, or expenses, including attorneys'
fees, arising from any act, omission or negligence of Tenant or
the o~ficers, contractors, licensees, agents, servants, employees,
guests, invitees or visitors of Tenant in or about the Premises,
the Building or the property upon which the Building is situated,
or arising from any accident, injury, or damage, howsoever and by
whomsoever caused, to any person or property, occurring in or
about the Premises, provided that the foregoing provision shall
not be construed to make Tenant responsible for loss, damage,
liability or expense resulting from injuries to third parties
caused by the negligence or intentional act of Landlord or any
other tenant of Landlord, or of any officer, contractor, licensee,
agent, servant, employee, guest, invitee or visitor of Landlord or
any other tenant of Landlord. Whether the loss or damage is due
to the negligence of either of said parties, their agents or
employees, or any other cause, Landlord and Tenant do each here-
with and hereby release and relieve the other from responsibility
for, and waive their entire claim of recovery for: (i) any loss or
damage to the real or personal property of either located anywhere
in the Premises or the Building and including improvements to the
premises, arising out of or incident to the occurrence of any of
the perils which is covered by insurance; or (ii) loss resulting
from business interruption at the Premises or loss of rental
income from the Premises, arising out of or incident to occurrence
of any of the perils which may be covered by existing business
interruption or rental insurance policies carried by either party.
Each party shall cause its insurance carriers to consent to such
waiver and to waive all rights of subrogation against the other
party.
CONDEMNATION
24. If Premises or any part thereof are taken under the
power of eminent domain, this lease shall terminate as to the part
so taken as of the date the condemning authority takes possession
--7--
thereof. In such event, the rent shall be reduced in the propor-
tion that the square footage o~ the. Premises taken bears to the
square footage of the Premises prior to the taking. If more than
ten percent (10%) of the floor area of Premises is taken by con-
demnation, Tenant may, at Tenant's option, terminate this lease as
of the date the condemning authority takes possession of the con-
demned portion by giving written notice of termination to Landlord
within ten (10) days after the condemning authority takes such
possession. If Tenant does not terminate this lease as herein
provided, then the rent payable shall be reduced as set forth
above. Any compensation awarded as damages for the taking of
Premises or the appurtenances thereto together with any severance
damages shall be the sole property of Landlord, except to the
extent that any award is made for trade fixtures or equipment of
Tenant which are not part of the real property and except to the
extent that Tenant may be paid for moving costs or interruption of
business.
PARKING PRIVILEGES
26. Landlord will provide for the use of Tenant during the
period 6 a.m. to 6 p.m., weekdays four reserved parking spaces in
the parking lot owned by Landlord and presently managed by Diamond
Parking behind the Building.
LANDLORD: FOURTH STREET BUILDING ASSOCIATES
By: The Hagar Company, Inc.,
its General partner
~oward Hi Hag~r,
President
TENANT: M. ROSENBLATT & SON, INC.
Arnold M. Stein
Vice President
-8-
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
THIS IS TO CERTIFY that on this ~e~day of ~u~n ,
1986, before me, the undersigned, a notary public in and for t)he
State of Washington, duly commissioned and sworn, personally
appeared HOWARD H. HAGAR, JR., to me known to be the President of
the corporation that executed the within and foregoing instrument
as the general partner of FOURTH STREET BUILDING ASSOCIATES, a
Washington limited partnership, and acknowledged the said
instrument to be the free and voluntary act and deed of said
corporation for the uses and purposes therein mentioned, and on
oath stated that he was authorized to execute said instrument, and
that the seal affixed is the corporate seal of said corporation.
WITNESS my hand and official seal the da~ and year in this
certificate first above writ~ { }
Notary Public in and for ~4~eI State of
Washington, residing at ~ .
STATE OF '~ )
COUNTY OF :~ii~G )
THIS IS TO CERTIFY that on this ~ day of ~%c
1986, before me, the undersigned, a notary public in and for the
State of Washington, duly commissioned and sworn, personally
appeared ~Qu5 ~D. ~ to me known to be the
President of M. ROSENBLATT & SON, INC., the corporation that
executed the foregoing instrument, and acknowledged the said
instrument to be the free and voluntary act and deed of said
corporation for the uses and purposes therein mentioned, and on
oath stated that he was authorized to ex, ute said instrument, and
that the seal affixed is the corporate seal of said corporation.
WITNESS my hand and official seal the day and year in this
certificate first above wr~ /~
M~HA~L A. PO~S~ ~
No. 24-~]~25
C~mni~i~ [xpir~s M~rch 30, 19~
-9-
EXHIBIT "A"
M. ROSENBLATT & SON~ INC. LEASE
Wash windows (all MR&S suites).
Patch and paint all walls where damaged by apparent water
leakage.
Repair floor tile: Suites 501, 502, 503, 508, and 303.
Repair roof leaks: especially 5th floor lobby (possibly
penthouse bathroom problem).
Repair all broken windows throughout all rental spaces.
Check radiators and bring up to operating conditions: Suite 503,
506, 507, 509, and 510.
Repair/improve lighting: suites 509, 510; stairwells; 5th floor
ladies bathroom; 4th floor mens bathroom.
Clean light fixture lenses, replace broken lenses throughout all
rental spaces.
Repair electrical outlets: Suites 501, 503, 505, and 303.
Repair ceiling tiles 302 front.
Improve ventilation: 502, 3rd, 4th,and 5th floor mens and ladies
restrooms. (Check vents and fans?)
Replace wall paneling: Suite 301.
Replace light fixture: Suite 304 mid-room (continues to fail
after every fix) 4th in from fan.
Repair ceiling tiles and water damage 403 and 404
Repair loose sink 507.
Clean vents and insure air conditioning system on roof works.
EXHIBIT "B"
M. ROSENBLATT & SO~, INC. LEASE
STORAGE SPACE
In addition to the office space described in Section 1, Land-
lord shall rent to Tenant during the lease term storage space
in the basement of the building in which the premises are
located (or anywhere else in that building as specified by
Landlord) for twenty cents ($.20) per month per square foot
of space, provided, however, that Landlord shall not be re-
quired to provide more than 1,000 square feet for storage--
purposes at the aforementioned rental rate. If Landlord
terminates rental of basement space for storage, then Land-
lord shall provide storage space elsewhere in the building
in the quantity and at the same rental rate as the space
vacated. Landlord shall be responsible for moving (or the
cost thereof) the stored materials to the replacement space.
Tenant shall have the right to cease renting and to vacate
any of the storage space rented under the provisions of Ex-
hibit "B" effective the end of the month in wl~ich written
notice of Tenant's intent to vacate is received by Landlord.
Landlord shall not be required to replace or to rent at a
later date any space vacated by Tenant.
Tenant shall have the option of electing not to rent storage
space in the manner described in the paragraph above, but to
select and keep one "bin" (fenced storage area) that it uses
currently for a rental price of $25 per month. Landlord shall
have the same rental termination right and replacement re-
sponsibility described in the paragraph above.
Exhibit C
The first payment on this lease will be deducted by $1,329.71
which is the deposit on the expiring lease compounded at 5%.
There will be no deposit payment on this lease but Tenant will
pay by 15 March 1986 the first and last months rent.
Landlord is to accomplish all the work listed on Enclosure A.
This work to be accomplished in the first sixty (60) days of this
lease. If any work is not satisfactorily accomplished at the end
of sixty (60) days the rent paid for the remaining 10 months of
this lease will be reduced by ten (10) percent or $658.00 per
month. If conflict on accomplishment of work listed in Enclosure
"A" arises, a third party arbitrator, agreeable to both parties,
will be the final adjudicator.
CITY OF BREMERTON
ACQUSITION OF THE FOURTH STREET BUILDING
FINANCIAL ANALYSIS
PROJECT COSTS:
BUILDING PURCHASE $ 475,000
RENOVATION 170,000
REMODELING 100,000
CONTINGENCIES 55,000
TOTAL PROJECT COST $ 800,000
SOURCES OF FUNDS:
CASH FROM GENERAL RESERVE FUND $ 100,000
PROCEEDS OF LONG TERM FINANCING 700,000
TOTAL SOURCES OF FUNDS $ 800,000
ANNUAL CASH FLOW
CASH REQUIREMENTS-
AMMORTIZATION OF LONG TERM DEBT $ 69,500
CASH SOURCES-
NET RENTAL INCOME FROM BUILDING $ 35,000
APPLY PERMIT CENTER PAYMENT & UTILITIES 25,000
CONTRIBUTION FROM ANNUAL BUDGET 9,500
TOTAL $ 69,500
DRAF'L
J~ne I through J'~ne 17, 1991 ~ ~-
Biork Cit of B emerton
1. Bremerton Printing Shop
($600.00 per month) $ 340.00 $ 260 00
Gene's Barber Shop
($220.00 per month) $ 124.67 $ 95 33
3. The Olive Leaf D & D Deli
($540.00 per month) $ 306.00 $ 234 00
4. The Camera Shop
($600.00 per month) $ 340.00 $ 260 00
5. McCaw Communications
($250.00 per month) $ 141.67 $ 108 33
6. Rosenblatt Naval Architects
($3,665.65 per month) $2,077.20 $1,589 45
7. Robert Bright, M.D.
($1,171.24 per month) $ 663.70 $ 507.54
8. GMT, Inc.
($510.00 per month) $ 289.00 $ 221.00
Stephen Rice, Architect
($580.00 per month) $ 328.67 $ 251.33
10. Diamond Parking (to be
prorated between the parties
after closing)
TOTAL JUNE RENTS $4,610.91 $3,526.98
CITY OF BREMERTON
VALUE ANALYSIS OF THE FOURTH STREET BUILDING
ANNUAL RENTAL INCOME $90,000
LESS OPERATING EXPENSES ($60,000)
OPERATING MARGIN $30,000
CAPITALIZED AT 12% $250,000
RENOVATION COSTS:
ROOFING $32,000
SPRINKLER $60,000
SAND BLAST $25,000
PLASTER $40,000
($z57,ooo)
SALE OF PRECINT BUILDING $150,000
NET BUILDING VALUE $243,000
CITY OF BREMERTON
VALUE ANALYSIS OF THE FOURTH STREET BUILDING
AND RELATED CASH FLOW PROJECTION
ANNUAL RENTAL INCOME $90,000
LESS OPERATING EXPENSES ($60,000)
OPERATING MARGIN $30,000
CAPITALIZED AT 12% $250,000
RENOVATION COSTS:
ROOFING $32,000
SPRINKLER $60,000
SAND BLAST $25,000
PLASTER $40,000
($157,000)
SALE OF PERMIT CENTER $130,000
SALE OF PRECINT BUILDING $150,000
NET BUILDING VALUE $373,000
CASH REQUIREMENTS:
BUILDING PURCHASE $373,000
RENOVATION COSTS $157,000
REMODELING COSTS $100,000
$630,000
CASH SOURCES:
PRECINCT BUILDING $150,000
CASH FROM GENERAL RESERVE FUND $100,000
LONG TERM FINANCING ** $380,000
$630,000
** ANNUAL DEBT SERVICE ON TEN YEAR FINANCING $53,500
DIVERSION OF CURRENT OBLIGATION ON PERMIT CE ($20,500)
RENTAL INCOME FROM BUILDING ($30,000)
NET IMPACT ON ANNUAL OPERATING BUDGET $3,000