HomeMy WebLinkAboutGeneral Advertising Agency - MOA FILED FOR RECORD AT REQUEST OF :
City of Pasco, Washington
AFN # 1769361 AGREE
WHEN RECORDED RETURN TO : 0712flf-2011 02 ,45 PM
C
ity of Pasco, Washington 5 Page(s) $67 ,00
525 North 3rd matt Beaton, Auditor
Franklin Cc,. WA
Pasco WA 99301
Tax Parcel Nos. 119272172, 119272181 and 1192721020
MEMORANDUM OF AGREEMENT
BETWEEN
CITY OF PASCO AND GENERAL ADVERTISING AGENCY, LLC ,
I. SUBJECT PROPERTIES ,
Building A
• 3521 W. Court St.
• Tax# 119272172
• Built 1980
• 2011 improvement value $ 110, 600
Building B
• 3407 W. Court St.
• Tax# 119272181
• Built 1980
• 2011 improvement value $42 , 300
Building C
• 3315 W. Court St.
• Tax# 119271020
• Built 1980
• 2011 improvement value $75 ,400
Memorandum of Agreement - 1
II. BACKGROUND : The City of Pasco (City) is charged by statute (PMC
25 . 75 . 020) to require property owners to upgrade non-conforming building sites
and parking areas with landscaping and screening when structure improvements
reach 33 % of the building' s assessed value . General Advertising, LLC (GA) is
undertaking improvements on the above properties that will exceed 33 % of the
assessed valuation currently set forth by the County Assessor. The 2011 assessed
value assigned by the County to the improvements on the above properties is
substantially and significantly less than the assessed value in each year since
2007 . Relatively minor building improvements will trigger conformance with
applicable landscaping and screening requirements per PMC 25 . 75 . 020 .
A. City of Pasco and GA agree that.
1 . The property contains three buildings on three separate tax parcels
as identified under "Subject Properties" above .
20 The current assessed value creates an artificially low trigger for
upgrading the entire parking area to current standards .
3 . The GA wishes to perform improvements to the above buildings
that will be required regardless of a future tenant, such as ADA
accessible restrooms, lighting and HVAC upgrades . A majority of
the building space is vacant and un-leased, so identification of
more specific tenant upgrades and commensurate parking
requirements is not possible at this time .
40 The City recognizes the value of increased marketability of the
properties .
50 Although each of the above properties is on a separate tax parcel, a
common parking area serves all three parcels .
6 . Prior to 2011 , the latest assessed improvement value for the above
properties (2010) is as follows.
BuildinaAA
• 3521 W. Court St.
• Tax#. 11. 9272172
• Built 1980
• 2010 improvement value $ 826 , 500
Memorandum of Agreement - 2
Building B
• 3407 W. Court St
• Tax# 119272181
• Built 1980
0 2010 improvement value $437 , 300
Building C
• 3315 W. Court St.
• Tax.# 119271020
• Built 1980
• 2010 improvement value $633 ,000
7 . The City and GA share the objective of providing site
improvements to the project in a manner that is proportionate to a
more accurate assessed value of the buildings and meets the intent
of the current code, and therefore, agree to utilize the 2010
assessment values for determinations under the Pasco Municipal
Code Section 25 . 75 . 020 for the term of this Agreement.
80 The City and GA agree that the mutual promises and obligations
contained in this Agreement shall be a covenant which shall run
with the land described above as Building A, Building B and
Building C ; and that this covenant shall be binding upon all future
owners, successors, heirs and assigns ..
90 The representative of GA executing this Agreement by signature
below, represents and warrants that he/she is a duly authorized
agent of GA with full authority to bind the same. Said
representative agrees that to the extent he/she is not authorized to
enter into this Agreement, he/she shall be personally responsible
for any damages arising herefrom.
B. In order to undertake the permitting process the following apply :
1 . Parking lot and landscaping improvements related to
implementation of 25 . 75 . 020 PMC will be required and
proportional to the amount of parking required for any tenant prior
to occupancy of any space in each building.
Memorandum of Agreement - 3
28 Once each building is leased at 51 % or more of the total building
space, full parking lot and landscaping improvements are required
in compliance with PMC 25 . 75 . 020 for the tax parcel on which
that building is located .
3 . This agreement shall expire on June 1 , 2013 . At or prior to June 1 ,
2013 , this agreement may be extended, or revised upon mutual
approval of the City and GA .
40 GA agrees that occupancy of subject properties will not occur in
contravention of this agreement.
50 The City and GAA agree that any obligation arrived at under this
agreement survives the expiration of the agreement.
C . Representative examine of the process is as follows :
1 . Building A requires a new heating system to replace the existing
system. GA receives applicable permits to install the new system .
This improvement does not result in a certificate of occupancy for
Building A therefore parking lot or landscaping improvements are
not required as a result of permitting the installation of the new
heating system .
20 GA then applies for tenant improvements to Building A that results
in leasing 35 % of the square footage of the building and a
commensurate parking requirement per 25 . 75 PMC of 80 spaces .
GA makes improvements to the parking lot on the tax parcel that
Building A is located on to at least 80 parking stalls prior to
occupancy of the leased space by the tenant in Building A.
3 . GA later applies for a second set of tenant improvements to
Building A that result in leasing an additional 20% of the square
footage of the building (resulting in leases for 55 % of the total
square footage) . This triggers full compliance with PMC 25 . 75 . 020
and GA must bring the parking lot on Building A tax parcel into
compliance with applicable landscaping and screening
requirements prior to occupancy by the second tenant.
III. GENERAL PROVISIONS : For the purpose of this Agreement, time is of the
essence. In the event of a dispute regarding the enforcement, breach, default or
interpretation of this Agreement, the parties shall first meet in a good faith effort
Memorandum of Agreement - 4
to resolve such dispute. In the event the dispute cannot be resolved by agreement
of the parties, said dispute shall be resolved by resolved by arbitration pursuant to
RCW 7 . 04A, as amended, and the Mandatory Arbitration Rules (MAR) ; venue
shall be placed in Franklin County, Washington, the laws of the State of
Washington shall apply; and the prevailing party shall be entitled to its reasonable
attorney fees and costs .
ff
DAaisda of V , 2011 .
CIT
Gary rutc fi eld, C=SING r
GE RAL ADVEGENCY, LLC
Aim Mexander, Manager
Memorandum of Agreement - 5
STATE OF WASHINGTON )
a S!.7.
County of Franklin )
On this day personally appeared before me GARY CRUTCHF"IELD. City
Manager for the City of Pasco. to be known to be the individual described in and who
executed the within and foregoing instrument, and acknowledged that he signed the same
,is his free and voluntary act and deed for the uses and purposes therein mentioned.
�,*. y w'No my hand and official seal this t day of
%
2011 .
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NOTARY PUBLIC in and
or t e tate of Washington
p; • .' �. � e �: Residing at;
( asc ® • +
�v"& OF �'� � My Commission Expires :
/1 # 1101019
STATE OF WASHINGTON )
_ . F
County of
I certify that I know or have satisfactory evidence that KIM ALEXANDER is the
person who appeared before me, and said person acknowledged that (he/she) signed this
MEMORANDUM OF UNDERSTANDING on oath stated that (he/she) was authorized
to execute the instrument and acknowledged it as the Manager of GENERAL
ADVERTISING AGENCY, LLC to be the free and voluntary act of such .party for the
uses and purposes mentioned in the MEMORANDUM OF UNDERSTANDING.
GIVEN under my hand and official seal this 15 "%ay of �, c` 52011 0
Notary Public
� 7
State of Washington. rsiding PUBLIC 'n and for the State of Washington
ISRAEL A GHAVEZ My Appointment Expires Apr 26, 2ot4 ission Expires . , Z�� r
Memorandum of Agreement - 6