092-20 - Oakridge Homes II, LTD - ContractContract No. 092-20
PAYMENT IN LIEU OF CONSTRUCTION SPECIFIC PERFORMANCE
THIS AGREEMENT ("Agreement") is made this -L-7 day of , 2020
between the City of Port Orchard, a municipal corporation ("City"), and Oakridge Homes II,
LTD, a Washington corporation ("Oakridge"), for the purposes set forth herein.
RECITALS
1.1 Capstone Homes applied for and Kitsap County issued preliminary plat approval
for the Blueberry Ridge subdivision (the "Project") in 2007; and
1.2 The City of Port Orchard annexed this property and the Project area shortly after
preliminary plat approval; and
1.3 Oakridge purchased the property and Project permit approvals from Capstone
Homes in 2015; and
1.4 The Kitsap County Hearing Examiner's decision obligates Oakridge to construct a
"temporary signal at the intersection of SE Blueberry Road and Bethel Road SE" as a condition
prior to final plat approval (condition 45); and
1.5 Alternatively, pursuant to Port Orchard Municipal Code ("POMC") 20.98.030 and
RCW 58.17.130 the City may, at its sole discretion, deem a condition of the preliminary plat
satisfied where the applicant posts adequate security commiserate with 150% of the city
engineer's estimated cost of the improvement; and
1.6 In 2018, after preliminary plat approval, the City completed the Bethel Sedgwick
Corridor Study and identified the need for a roundabout at the intersection of SE Blueberry Road
and Bethel Road SE (the "Blueberry Bethel Roundabout"); and
1.7 The Blueberry Bethel Roundabout is part of the City's Bethel Corridor Project, at
Phase 1, and is adopted by reference in the City's Comprehensive Plan and is listed in the City's
Transportation Improvement Program; and
1.8 Temporary turn lane improvements were installed in Bethel Road SE at SE
Blueberry Road (condition 58), but a temporary signal has not been built (condition 45); and
1.9 The City will be designing the Bethel Corridor Project, Phase 1, including the
Blueberry Bethel Roundabout, in 2021, consistent with the City's Transportation Improvement
Program (TIP) and Comprehensive Plan; and
1.10 To that end, the City has been collecting impact fees toward the Bethel Corridor
Project; and
1.11 The City, in 2020, has applied for two grants to facilitate construction and right of
way acquisition for construction of the Bethel Corridor Project, Phase 1, including the Blueberry
Bethel Roundabout; and
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1.12 The City's eligibility to receive grant funding is bolstered when private developer
contributions are included in the City's match for the grant request; and
1.13 The City believes there no longer exists a need for a temporary signal at the
Bethel Road SE at SE Blueberry Road intersection, and prefers the Blueberry Bethel Roundabout
as a long-term transportation solution for this intersection; and
1.14 Accordingly, in lieu of constructing a temporary signal at an estimated cost of
approximately $156,155 as a condition for final plat approval, Oakridge desires to post financial
security and Oakridge desires to authorize the City to utilize those funds on the permanent
transportation solution for the Bethel Road SE at SE Blueberry Road intersection; and
1.15 Pursuant to POMC 20.98.030, the City Council has determined that the criteria set
out in POMC 20.98.030(2) were met and that the posting of financial security in lieu of
construction of the improvement is appropriate for this project, subject to a reservation of the
City's ability to flex the funds for a permanent transportation solution for the Bethel Road SE at
SE Blueberry Road intersection; and
NOW, THEREFORE, in consideration of the mutual covenants and conditions herein
contained, the parties hereto agree as set forth above and as follows:
II. PERFORMANCE OBLIGATIONS
2.1 Oakridge shall deposit cash funds in the amount of Two Hundred Thirty-four
Dollars and Fifty Cents ($234,232.50) with the City of Port Orchard within 90 days of execution
of this Agreement ("Funds").
2.2 Oakridge authorizes and directs the City to utilize the Funds towards planning,
design, permitting and/or construction of a permanent transportation solution at the Bethel Road
SE at SE Blueberry Road intersection, at the City's sole direction regarding timing, as referenced
above.
2.3 The City agrees to accept the Funds as financial security in lieu of construction of
the temporary signal required as a condition of the preliminary plat approval for the Blueberry
Ridge subdivision. Upon receipt of the Funds, the condition is deemed fulfilled and the City
shall provide Oakridge with formal written notice of satisfaction. Oakridge shall remain
obligated to perform and comply with all other obligations and conditions required by the City
for the Blueberry Ridge subdivision and this Agreement shall not relieve Oakridge of those
obligations and conditions.
2.4 Oakridge acknowledges and accepts that the City may utilize the Funds for the
purposes described herein at any time after the Funds are deposited with the City, at the City's
sole discretion, and Oakridge affirmatively disclaims any interest in the Funds.
III. GENERAL PROVISIONS
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3.1 This Agreement shall be governed by and construed in accordance with the laws
of the State of Washington. Venue for any action arising out of or relating to this Agreement
shall lie in Kitsap County Superior Court.
3.2 This Agreement shall be deemed effective upon mutual execution and approval
by the Port Orchard City Council, which approval shall be attached hereto and adopted herein by
this reference. This Agreement shall remain in full force and effect for a period of one (1) year
after the City's receipt of the Funds and issuance of formal written notice from the City releasing
Oakridge from further obligation.
3.3 The parties shall execute and deliver such further instruments and documents, and
take such other further actions, as may be reasonably necessary to carry out the intent and
provisions of this Agreement.
3.4 This Agreement embodies and constitutes the entire understanding between the
parties hereto with respect to the transactions contemplated herein, and all prior or
contemporaneous agreements, understandings, representations and statements, oral or written,
are merged into this Agreement.
CITY OF PORT ORCHARD OAKRIDGE HOMES II, LTD
("City") ("Oakridge")
LIM
SO
WA
1*il, III
358303/001/344903.01 -3-
STATE OF WASHINGTON )
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COUNTY OF )
I certify that I know or have satisfactory evidence that -ve.JE�P !;n-7-0 er'�J is
the person who appeared before me, and said person acknowledged that signed this
instrument, on oath stated that he was authorized to execut the instrument, and acknowledged it
as the 0A c..,p, P g e,�;j c\eyT of0AV uAC L j,t l , to be the free and voluntary
act of such entity for the uses and purposes mentioned in the instrument.
STATE OF WASHINGTON
COUNTY OF }�, -
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DATED: 1 \ " -- Z
NAME: z2E 7 r-� V. _ G L
(Print Name)
Notary Public in and for the State of Washington.
Commission Expires: to - =1 -- ?-6 2 ?
I certify that I know or have satisfactory evidence that'22U 2 I is
the person who appeared before me, and said person acknowledged that tj signed this
instrument, on oath stated that he/she was authorized to execute the instrument, and
acknowledged it as the of toe the free and
voluntary act of such entity for the uses and purposes mentioned in the instrument.
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STATE OF WASHINGTON
DATED: �;?- Ib - 1
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(Print Name) —
Notary Public in and for State of Washington.
Commission Expires: ^ i 12LDO
358303/001/344903.01 -4-