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HomeMy WebLinkAboutMickelson Landholdings LLC - Developer Reimbursement Agreement AFN# 1979103AFN # 1979103 AGREE 10/03/2023 04:27 PM 9 Page(s) $211.50 Matt Beaton. Auditor Franklin Co., WA FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 31d Avenue Pasco, WA 99301 Tax Parcel No. 113474036 Legal Description: See EXHIBIT A CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this a, 5 day of 2023, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as "City", and Mickelson Landholdings, LLC, their successors, and assigns, hereinafter referred to as "Developer"; and WHEREAS, RCW Chapter 35.91 and PMC 14.25 authorize contracts between a municipality and the owners of real estate within the municipality's corporate limits or within ten (10) miles of the municipality's corporate limits, who construct utility facilities to serve their own properties and other properties, whereby such owners and municipalities may be reimbursed by the owners of other real property who did not contribute to the original cost of the construction of the facilities, but who later desire to connect their properties to said facilities. NOW, THEREFORE, the parties hereby mutually agree as follows: 1. Developer and City have constructed the following described extension of City's facilities: A 10-Inch ductile iron water main in the proposed Right -of -Way of the south portion of E. Superior Street along Parcel numbers 113473091 and 113474045. This water main begins at the shared property line of parcel 113473085 and 113473091 and runs 336 linear feet to the east. A. The improvements have been constructed in accordance with plans and specifications approved by City prior to construction and Developer has supplied City with reproducible as -built drawings regarding the facilities. Developer Reimbursement Agreement Mickelson I Water - I 2. In addition to serving properties owned by Developer at the outset of construction, the facilities constructed will also serve the following described parcels of real property, and any subdivisions of such parcels, that did not contribute to the cost of the facilities construction, hereinafter referred to in aggregate as the "Assessment Area", which is determined at the sole discretion of the City, and which are identified and legally described in Exhibit A, attached hereto and incorporated herein by this reference: Franklin County Parcel Numbers: 113473028, 113473091, 113474045. 3. As the facilities were certified as acceptable to City by the Public Works Director, or his designee Developer conveyed such facilities to City for the consideration and benefits of City. City will thereafter own and operate said facilities as part of City water system subject to all of the laws and regulations, fees and assessments of City. 4. City and Developer agree that Developer's contributions to the total project costs is valued at $48,485.00, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 5. City and Developer agree that the City's contributions to the total project costs is or will be valued at $XX, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 6. City and Developer agree that the Total Assessment that is attributed to the Assessment Area is $36,879.99. This is the total of all costs related to the project ($48,485.00), less the amount of those costs that are attributed to properties owned or controlled by Developer as of the date of execution of the Water System Extension Agreement regarding the same facility as described in Section 1 herein. Said costs are otherwise known as Developer's Benefit, which for this project equal $11,605.01. City and Developer agree that Developer is entitled to a potential total reimbursement, less any collection charges deducted by the City, of a maximum of $36,879.99. This amount is equal to Developer's total contribution to the total project costs ($48,485.00), less Developer's Benefit ($11,605.01). 7. The facilities subject to this Agreement are included within the City's comprehensive utility plan, and no additional comprehensive plan approval for the utility system improvements was required. 8. Execution of this Agreement is conditioned upon: Developer Reimbursement Agreement Mickelson 1 Water - 2 A. Inspection and approval of the utility system improvements by the City; B. Conveyance by Developer and acceptance by the City of the utility system improvements described in Section 1 of this Agreement; C. Full compliance with the Developer's obligations under this Agreement and with the City's rules and regulations with respect to the project described in Section l; D. Payment by Developer to the City of the City's fee for processing of this application, which includes legal, administrative, and recording costs, in the amount of $X, which includes the legal fees associated with this Agreement in the amount of $X, $X for the mailing and recording costs for this Agreement, and 100% (the percentage share of Total Assessment collectible by Developer) of the costs attributed to mailing and recording of assessment Notices to parcels within the Assessment Area (100% of $X in Notice and accompanying documents mailing and recording fees = $X); F. City verification and approval of all contracts and costs related to the utility system improvements; and G. Within one hundred and twenty (120) days of the completion of the utility system improvements, Developer must submit the total actual cost of the utility system improvements to the City. 9. For a period of twenty (20) years from the effective date of this Agreement, any person, firm or corporation now or hereafter owning benefitted properties described below, or segregated parcels thereof, desiring to connect to the described facilities, shall first pay their pro-rata share of the total cost of the facilities ("Total Assessment"). For this project, the Total Assessment is $36,879.99, as stated in Paragraph 6. The individual Assessment associated with each parcel of benefited property described in this Agreement, shall be charged to the property owner as follows: Parcel number 113473028: $12,637.49 Parcel number 113473091: $12,637.49 Parcel number 113474045: $11,605.01 10. No person, firm or corporation shall be granted a permit or be authorized by City to tap into or use the referenced facilities during the period of time prescribed in Paragraph 9 above without first paying to City, in addition to any and all other costs, assessments and charges made and assessed for such tap or use, the amount required by the provisions of this contract. Developer Reimbursement Agreement Mickelson 1 Water - 3 11. The City shall deduct from all assessment reimbursement payments it collects, an amount (collection charge) as designated in Pasco Municipal Code ("PMC") 3.35.180 to cover its administrative collection costs. After deduction of the collection charge, each reimbursement assessment payment will be disbursed to the Developer according to the terms of this Agreement. Any amounts so collected during the time period in Paragraph 9 above by City and due to Developer, shall be remitted to Developer or assigns within sixty (60) days of the receipt thereof, in accordance with this Agreement. 12. Developer agrees to indemnify, defend and hold the City harmless from any action, claim or proceeding brought or maintained by any property owner challenging the validity or enforceability of this Agreement. In turn, the City agrees to cooperate with the Developer in the course of any such claim, proceeding or action to provide reasonable and lawful access to City records and witnesses. 13. Any funds collected by City and payable to Developer in accordance with the terms of this contract shall be remitted to Developer at the following address: Address: Kim Mickelson Mickelson Landholding, LLC 11711 Pelican Rd Pasco, WA 99301 E-Mail: kim.ccp@gmail.com 14. In accordance with Pasco Municipal Code Section 14.25.60(2), Developer shall provide to the City in writing every two (2) years from the date this Agreement was executed, information regarding the current contact name, address, and telephone number of the person, company or partnership that originally entered into the Agreement. If the Developer fails to comply with the notification requirements within sixty (60) days of the specified time, then City may collect any reimbursement funds owed to the Developer under this Agreement, and such funds shall be deposited into the capital expenditure account of the City's utility fund. 15. If prior to the expiration of one (1) year after the date of conveyance of the facilities by Developer to City, any work is found to be defective, Developer shall promptly and without cost to City, either correct such defective work or, if it has been rejected by City, remove and replace it with non -defective work. If Developer does not promptly comply with the terms of such instructions, City may have the defective work corrected or the rejected work removed and replaced and all direct and indirect costs of such removal and replacement, including compensation for professional services, shall be withheld from the reimbursement assessment payments that are due to Developer. Developer Reimbursement Agreement Mickelson 1 Water - 4 16. Developer agrees that once the City has collected all amounts under this Agreement, up to a maximum of $36,879.99 as specified in Paragraph 6 of this Agreement and remitted such amount (less any collection charges) to Developer, that City shall remit to Developer no further payments under this contract. 17. Developer hereunder is an independent contractor and is not an agent or employee of City. 18. In the event of a dispute between the parties regarding the interpretation, breach or enforcement of this Agreement, the parties shall first meet in a good faith effort to resolve the dispute by themselves or with the assistance of a mediator. The remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, the Mandatory Rules of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo review, with the substantially prevailing party being awarded its reasonable attorney fees and costs against the other. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PASCO- By: _ dam Lincoln, City Manager ATTEST: Debraarham, CMC City Clerk APPROVED AS Kerr Fergu w, PLLC City o ey Developer Reimbursement Agreement Mickelson 1 Water - 5 DEVELOPER: By: Z - ---- m Mickelson, Owner Mickelson Landholding LLC STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me ADAM LINCOLN, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this a(p day of 20a3. Notary Public State of Washington KRYSTLE LYNN SHANKS MY COMMISSION EXPIRES January 5, 2024 _ 4.a t-� y S QJ►.o Notary Public in and for the State of Washington Print Name: Residing at (� 1 My Commission Expires: 5, 9041.4 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me KIM MICKELSON, Owner of Mickelson Landholding, LLC, a Washington Limited Liability Company, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and facial seal this ZA6 day of _ , 20 �3 01111 a 11111"', p PAT a NOTARY Pt*]�IC in anq forthe State of Washington 1( U : ROSARY Print Name Y'NlY1 _ U�-�Y► - Z � f4 Residing at: _ cPUB�� SS//0? My Commission Expires: g,. ? Developer Reimbursement Agreement Mickelson 1 Water - 6 EXHIBIT "A" Developers Parcel: Parcel 113474036 THAT PORTION OF LOTS 1-12, BLOCK 40, FREY'S ADDITION TO PASCO, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME B OF PLATS, PAGE 16, RECORDS OF FRANKLIN COUNTY, WASHINGTON; TOGETHER WITH PORTIONS OF VACATED STREETS ADJACENT THERETO COLLECTIVELY DESCRIBED AS ADJUSTED PARCEL 1 ON RECORD SURVEY RECORDED UNDER AUDITORS FILE NO. 1897915. Situated in the County of Franklin, State of Washington. BeneStting Parcels: Parcel 113473028 LOTS 1-12, BLOCK 41, FREY'S ADDITION, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME B OF PLATS, PAGE 16, RECORDS OF FRANKLIN COUNTY, WASHINGTON, TOGETHER WITH WEST HALF OF VACATED ALLEY ADJOINING EAST LINE OF SAID PREMISES. PURSUANT TO THE CITY OF PASCO ORDINANCE NO. 2601, RECORDED JUNE 02, 1986, UNDER AUDITOR'S FILE NO.445760. Parcel 113473091 LOTS 13 THROUGH 24, INCLUSIVE, BLOCK 36, FREY'S ADDITION TO THE CITY OF PASCO, ACCORDING TO PLAT THEREOF RECORDED IN VOLUME B OF PLATS, PAGE 16, RECORD OF FRANKLIN COUNTY, WASHINGTON TOGETHER WITH THAT PORTION OF VACATED ALLEY RIGHT OF WAY, ADJACENT THERTO AS VACATED BY ORDINANCE NO. 2601, RECORDED UNDER AUDITOR'S FILE NO.445760, WHICH WOULD ATTACH BY OPERATION OF LAW TOGETHER WITH THOSE PORTIONS OF VACATED SUPERIOR STREET, PUEBLO STREET AND NEVADA STREET, ADJACENT THERETO AS VACATED BY ORDINANCE NO.4042, RECORDED UNDER AUDITOR'S FILE NO. 1779101, WHICH WOULD ATTACH BY OPERATION OF LAW TOGETHER WITH THOSE PORTIONS OF VACATED SUPERIOR STREET AND NEVADA STREET, ADJACENT THERETO AS VACATED BY ORDINANCE NO. 3761, RECORDED UNDER AUDITOR'S FILE NO. 1679542, WHICH WOULD ATTACH BY OPERATION OF LAW Parcel 113474045 ALL OF BLOCK 37, FREY'S ADDITION, ACCORDING TO PLAT THEREOF RECORDED IN VOLUME "B" OF PLATS, PAGE 16, RECORDS OF FRANKLIN COUNTY WASHINGTON, TOGETHER WITH VACATED ALLEY BY ORDINANCE NO.2601, RECORDED UNDER AUDITOR'S FILE NO. 445760, AND TOGETHER WITH 10 FEET OF VACATED SUPERIOR STREET, EAST HALF OF VACATED NEVADA STREET, NORTH HALF OF VACATED PUEBLO STREET AND WEST HALF OF VACATED WYOMING STREET AS VACATED BY ORDINANCE NO. 4042, RECORDED UNDER AUDITOR'S FILE NO. 1779101. Retired parcels combined to create: Parcel 113474050 LOTS 13 THROUGH 24 INCLUSIVE BLOCK 36, ALL OF BLOCKS 37, 38, 20, 21 FREYS ADDITION, ACCORDING TO PLAT THEREOF RECORDED IN VOLUME B OF PLATS, PAGE 16, RECORDS OF FRANKLIN COUNTY WASHINGTON, TOGETHER WITH VACATED ALLEYS BY ORD NO 2601, RECORDED UNDER AFN-445760 AND TOGETHER WITH 10 FEET OF VACATED SUPERIOR STREET, VACATED NEVADA STREET, VACATED PUEBLO STREET, VACATED WYOMING ST, 10 FEET OF VACATED UTAH STREET ALL BY ORD NO 4042 UNDER AFN-1779101 AND ORD NO 3761 ANF-1679542 End of EXHIBIT "A" FRANKLIN COUNTY RECORDING COVER SHEET NAME AND RETURN ADDRESS: City of Pasco Attn:Carmen Patrick 525 N. 3rd Ave Pasco, WA 99301 FORM COMPLETED BY: Carmen Patrick PLEASE PRINT OR TYPE INFORMATION: PHONE # 509-545-3441 DOCUMENT TITLE(S) (or transaction contained therein) 1. DEVELOPMENT REIMBURSEMENT AGREEMENT 2. 3. GRANTOR(S) (Last name, first name, middle name/initials): 1. MICKELSON LANDHOLDINGS LLC 2. 3. 4. Additional names on page of document GRANTEE(S) (Last name, first name, middle name/initials): 1. CITY OF PASCO 2. 3. 4. Additional names on page of document LEGAL DESCRIPTION (Abbreviated: ie.lot, block, plat or section, township, range) THAT PORTION OF LOTS 1-12, BLOCK 40, FREY'S ADDITION TO PASCO, ACCORDING 2] Additional legal is on page 7 of document AUDITOR'S REFERENCE NUMBER(S) ASSESSOR'S PROPERTY TAX PARCEL NUMBER 113474036 / 113473028/ 113473091/ 113474045/ 113474050 ✓❑ Additional parcel numbers on page 7 & 8 of document The Auditor/Recorder will rely on the information provided on this form. The staff will not read the document to verify the accuracy or completeness of the indexing information EMERGENCY NONSTANDARD REQUEST I am requesting an emergency nonstandard recording for an additional fee of $50.00 as provided in RCW 36.18.010. 1 understand that the recording processing requirements may cover up or otherwise obscure some part of the text of the original document. Signature Date