006-21 - Ordinance - Development Agreement with McCormick Communites, LLCoRDtNANCE NO.006-21
AN ORDTNANCE OF THE CtTy OF PORT ORCHARD, WASHTNGTON, AUTHORTZTNG THE
MAYOR TO EXECUTE A DEVELOPMENT AGREEMENT WITH MCCORMICK
COMMUNITIES, LLC; PROVIDING FOR SEVERABILITY AND CORRECTIONS; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to RCW 36.708.170. the City Council has the authority to review and
enter into development agreements that govern the development and use of real property within
the City; and
WHEREAS, the City Council has adopted standards and procedures governing the City's
use of development agreements, codified at Chapter 20.26 of the Port Orchard Municipal Code
(POMC); and
WHEREAS, the City and McCormick Communities, LLC have prepared a Development
Agreement to address the design, construction, and funding of certain transportation
improvements within and near the McCormick Woods development in the vicinity of Old Clifton
Road and Campus Parkway, as provided in "Exhibit A" of this Ordinance; and
WHEREAS, McCormick Land Company is also a party to this Agreement as the Agreement
will replace a 2005 Transportation Development Agreement under which McCormick Land
Company is continuing to receive reimbursement for completion of transportation
improvements; and
WHEREAS, this Development Agreement was consolidated under POMC 2O.22.O2O(2)
with the following project permits: Land Disturbing Activity Permit (PW20-031) and Stormwater
Drainage Permit (PW20-032); and
WHEREAS, in accordance with RCW 36.708.200, when a development agreement is
related to a project permit application, the provisions of chapter 36.70C RCW shall apply to any
appeal on the development agreemenU and
WHEREAS, on December 9,2020, the City's SEPA official issued a determination of non-
significance for the proposed development agreement and consolidated permits under the
Optional DNS process, and there have been no appeals; and
WHEREAS, the Notice of Decision for these project permits was issued on December 24,
2020 and there have been no appeals; and
WHEREAS, on January 19,2021., the City Council held a study session on the proposed
development agreement; and
Ordinance No.006-21
Page 2 of 23
WHEREAS, on February9,202l, the City Council held a public hearing on the proposed
development agreement, and comments were not received; and
rr careful consideration of the development agreement,
t is consistent with the City's Comprehensive Plan and
Management Act, Chapter 36.704 RCW, and that the
rests of the residents of the City; now, therefore,
WHEREAS, the City Council, afte
finds that the development agreemen
development regulations, the Growth
amendments herein are in the best inte
THE CITY COUNCIL OF THE CITY
FOLLOWS:
OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
rpts all of the "Whereas" sections of this ordinance and
ent Agreement as findings in support of this ordinance.
SECTION 1. The City Council ad
all "Whereas" sections of the Developm
SECTION 2. The City Council approves of and authorizes the Mayor to execute a
development agreement with McCormick Communities, LLC and McCormick Land Company, as
provided in "Exhibit A" of this Ordinance.
SECTION 3. Severability. lf any section, sentence, clause or phrase of this Ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of constitutionality of any other
section, sentence, clause or phrase of this Ordinance.
SECTION 4. Corrections. Upon the approval of the city attorney, the city clerk and/or
code publisher is authorized to make any necessary technical corrections to this Ordinance,
including but not limited to the correction of scrivener's/clerical errors, references, Ordinance
numbering, section/subsection numbers, and any reference thereto.
SECTION 5. Effective Date. This Ordinance shall be published in the official newspaper
of the city and shalltake fullforce and effect five (5) days after posting and publication as required
by law. A summary of this Ordinance may be published in lieu of publishing the entire Ordinance,
as authorized by state law.
SECTION 5. Appeals. Since the Development Agreement is related to a project permit
application, the provisions of chapter 36.70C RCW shall apply to the appeal of the decision of the
development agreement.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested
by the City Clerk in authentication of such passage this 9th day of February 202L.
Ordinance No.006-21
Page 3 of 23
ATTEST:
Rinearson, MMC, City Clerk
APPROVED AS TO FORM:
Charlotte A. Archer, City Attorney
PU BLISH ED: February t2, 202L
EFFECTIVE DATE: February L7,2021
Robert Putaa u, Mayor
SPONSOR:
k Ashby,ncilmem r
oPR
:io
S
Ordinance No. 006-2L
Page 4 of 23
EXHIBIT A: MCCORMICK COMMUNITIES, LLC, DEVELOPMENT AGREEMENT
DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF PORT ORCHARD AITID MCCORMICK FORTIIE
DEVELOPMENT AND FUNDING OF
CERTAIN TRANSPORTATION IMPROVEMENTS
THI$ DEVF:LOPMENT ACREEMENT is macte and entered into this ? d"y.tr*bruury'
2021, by and between the city of Port orclrar<|, a non-clrartero optiortal code washinglon
^*i*ipif corporation, hereinafter the 'oCity," and McCormick Communities, LLC, a limited
linhility cqllrpany o'g*i"ud utr<lcr the laws of the State of Washirrgton, together with
l\4cCormicli firurtop'ii.,rt Corprrration, a Washington Corporatiort, hercitraftef collectively the
"Developer" or "McCormick" (together the "Parties")'
tn addition, McCormick Land Company, a Washington corpolgtio.l' hereafter "MLC"' is
aParty for purposes of Seotions 7, 15, and iuch other sections as specifically refer to MLC'
The Parties hereby agree as follows:
RECITALS
wl-lllRuAS, the washinglon state Legislattue has authorized the execution of a
developtttcttt ugr.rn',*iribclwcctt i lc',cal gou*rn,i'nt and a persol having ownership or control
oi r."i'pr. p.,1ri r*ithirr its,i uriscl ict i.rr t ltc W 3 (r,708. 1 70(1 )); and
WHEREAS, a development agreement must set forth the developmgnt.slanqards and
ot[er provisions that shall apfly to, gwern, and vest the development, use and rnitigation of tlte
cleveloprncnt of the "ut
'p'op*'t1i for the duration specified in the agreement (RCIW
36.708.170(1)); and
WHEREAS, a development agreement must be oonsistent with the applicable
development regulations uaopdo by a lo-cal government planning under chapter 36'70A RCW
(RCW 36.708, I 70(l)); and
wHllREAs, Port Orchard acloptecl chapter ?0'16 of the Port orchard Municipal codc
(*POMC,) which estabiishes the standarcls antl proceclutes for Devclopment Ag|eenrettts in Port
Orchard: and
WHEREAS, Chapter 20.25 PoMc is consistent with State law; and
WHEREAS, the Developer haS applied for a Development Agreement^under chapter
20.26 pOMC and ,uri- ngi.*fnt has bein processed consistently with the POMC and State
law; and
wl-lLiltlrAS. this Devcloprmcttl Agreetllt'nl hy untl belrv$ett thc ci$ ol'Porl orchard and
the l-)cvcloper thcr.eirrufler tlrc ..i)cveloprilent Ag,rc,cnrent"). r'clates P[irrtailly to tlte tlcvclopnrcnt
;It;;i;ri, iiw,rr,l r',1, ii.t..l,',r;, *'irlii,', nrrcl ricar tulocirtrntick 1tr/slrtls itr lltc 'icirtitv ol'old
Clititrrr R.rtl arrrl C'n,iip,o f'ntkiv';- nnrl thal is tttoro particularly described on Exhibits A'l' A'2'
Development Agreement for Funding Transportation lmprovements
Page I of19
FG:54082696.4
B-1, and B-2 (hereinafter the "McCormick Property"); and
WHEREAS, in 2005 the City's predecessor in interest entered into a Development
Agreement with Developer;, p."d""ussor in interest for the development of certain transportation
improvements; and
properly and in accordance with RCW
bound by the 2005 TransPortation
WHEREAS, since that tirne, the City annexed the
36,708,190 assumed jurisdiction and agreed to be
Development Agreement; and
Page 2 of l9
FG:54082696.4
WFllillLiAS. as part ol'rhart 3005 Agrei;rrrent, the prr:tleeessor to the Developer (GEM I'
Ll,C) cotrttltrcr*cl sonte projccts ltttr;l puytnents for those ltroiects are still on-goirrg and will
corrlilrrrc until CiEM l. t.l,C'; succcssor is lirtly reimbursed; and
WHEREAS, since annexing this property, the City's ffansportation plans have been
updated; and
WHEREAS, the City is in the process of adopting updated transportation impact fees;
and
WHEREAS,duringthisprocess,anin.depthlookattheprojectsneededtomeetthe
projected development by beveloper and others in the City was performed; and
Wl-lEltItAS. the uptlatccl transportation irtlpact fees are based, in parl' on the 2005
Developnrenr Agrc'ement with the Devciopcr's predc'cessor as well as on the updated project list;
and
WHEREAS, the Developer did not acquire from GEM lr-LLC ("GEM l'), and GEM I
still rotains, the right-io reimbursement that accrued under the 2005 Tronsportation Agreement
when GEM I constructed the Glenwood connector Roadway and nrinor improvements ttt
F;Gi.y poud, the onlylro.;.rit iA*tified in that 2005 Bgreem€nlthat have been constructed; alrd
WHEREAS, the city has been paying such reimburse-mgnt to GEM 1 and its successor
since 2008, and nothing in tiris Agreemini chinges or is intended to change the City's obligation
to continue paying such reimbursement to GEM 1; and
WHEREAS, GEM I assigned its right to reimbursem€nt to the Mocormick Land
Company in 2016, after which ti-me, the Ciiy paid reimbursement to the McCormick Land
CompanY ("MLC");and
WHEREAS,MLCcontinuestoownpropertyinPortorohard;and
WHEREAS, MLC has signed this Agreernent to confirm that this Agraement will fully
replace *n,i orp.tt*ae the 2005 f tansportatiEn Development Agreement ("2005 Transportation
DA"); and
Development Agreement for Funding Transportation Improvements
wHERE,ns,theDevelopernowseekstoupdotethe*2005TransportationDAin
.onyunoiioJ*i,rt "tt"i"Le . p.rrnit to build the Campus Parkway Roundaboutl and
wl{EREAs, the purpose of this Agreement is to cany forwarcl and better define tlte
'onc*fr.cn'y..rut,,ationitiui
ias part of dre.dOOS TransportationDA, to carry fbrward tho impact
fee r.ci'rbursenrent for MLC, and to est*utiJ nn impact fee credit system for Developer to
recover its costs oruuilaing the Mccormick Projeots dsscribed below; and
Wl.ll-:Rl]AS, apflIt ft,ttnt c()lrc[lrrcllc}' Td impact fee cr.edits/reimbursement, this
Agleerncrrt rlgcs not aclilrcss clr-'r'ctrrptttcnl stnnilards, vesting, or any other regulation that impaCts
trtir" thc McCtrrttrick Pro;:erty rvill tre dcvLrl(lpcdi and
WHEREAS'thePartiesagrectltarthe]0051i'arrslrot.taliottDA,ttssettiutlrinthctraf.ljc
srrd),*'nchccr ro rrrat iixritri.n,.,uii.r.rarir). nA. anrici;tnrcJ rrrc.g-*ncluriurr of -1.9J5 PM pcak htrt*
trips. [1nscd o' rlre .r*r-r"rr,r*rii'n*tiuit1,*i,r.*:rlos.'s.rttte tl'iltesc "trip$" havc br''en alrsoltcd'
'1,6c
'rrrics
lrclievc ir is aclva.ragerttts to $cli'ol1h the remaining capacity that may be *tllized in
lirtur,e clevcloplllcrlt f,fro**, n'',Jii*,u. ctrltfirnrccl tlre concuncncy nirntbers as of the dnte of this
Agrcement; and
WHERr,AS,inconsiderationoftlrebenefitsconferredbythisnewDevelopment
Aprccmcrrr. whictr reflcoiil;;;;;;i pi*'t"'"ruoih the city and tlre Developer n'd include
confirmalion of concurrencyt a new
'rn1,"'-ii;;t,
un6 a set.impnct fee credit calculation' the
nnrrics cleem it in their best intctests ancl rlre bcsiiiltcrcsts of the community to repealand roplnc'e
li,:'ioot i;;ililffi" DA rvith this upttiltcd ngrcettrent; and
WHERI]AS,therearctwoprojectsiderrtifiedonbotlrExhibitAtothe2005.fransp'rtirtion t)A nn,i'uiro on tr'" city's nJw r"ip. ,r.t .r**crirrcrl irr thc new'1'lP" thcse p'o.iects
are ID li l.5c,..otil clifton Rd - camp*l;kr-y'lnr*rr*r,rio,', rurd ll) lil,()8 tlld c'lifton ltd &
McCormick woods n,.'r*rr"*ion [mir", Thar. ttun proiects atr collcctivcly rcl'brrcd to ltcrcilt
as "the McCormick Projects"; and
WHEREAS, the McCormick Projects are eligible for oredits under RCW 32'02'060(4);
and
WHEREAS,thefollowingeventshaveoccurredintheprocessingoftheDeveloper's
applioation:
a),IheL)cvclollcrapptiecllirrrltisDevr:ltrpntcntAgrcemr:nttrnDecettt|.1cr4,3020:and
b) The l)c'cl'plrrerrt Agt,ccrr*,,'i, '.iuui to and-lras bqcn oonsoliclated undcr P6MC
20,22.020(2) witlr the lbllrrwirrg prqiect pcnttits:
Land Disttrrbirrg Activity Permit PW20-03i
Stonnwater Drainage Pcrmit PW20'032
c) The Developer is ready and willing to oommence. construotion on the project known
as old clifton Rd - campus parkway rnpr'r.Jtioi (a roundabout project) and has applied for a
Development Agreement for Funding Transpodation Improvements
Page 3 of 19
FG:54082696.4
Land Disturbing Activity permit and Stormwater Drainage Permit to perform this project;
d)TheoldCliftonRcl_CampusPaEkwaylntersectionisincludedintheCity's
transpo'rati.n plan ,'prt'*rti"ft the updnretl intpcct.l'ccs are based and therefore the Developer
*uy it
"it,lUuts"A
frtrnr the impact fees lirr tlrnt project;
e) The city council held a public hearing on February 9, 2O2l regarding this
Development Agreement;
f) After a public hcaring; by ordinance No.-, the city council authorized the Mayor
to sign tfiis nevelopment Agreernent with the Drlveloper;
AGREEMENT
Section l. The McCormick projects, The two transportation projects describad above
as ,,the McCormick pr.j*tt'-*iif serve tfie McCormick Property at weil os provide connectivity
and capacity for the iit'. fnt Ct*'."t purt.wu' [oundabout |POO Per:mit #PW20'0031 and
SDp permit pW20,03i'as well, u, th* rutu;" o*v"topment of the McCormick Woods Drive
Roundabout, which wilt be permitted ", u iui". date,'are both subject to impact fee $edit in
accordance with this Agreement'
flectiorr2.TheMcCormickProperty...I|"Y"CormickPropertycomprises
McCorrnick North, tvtoCormick lVestn and lufc'Cot*i.t Wootls, whlch are legally described by
parcet number in Exhi-b;eli-*r,r dopicted on n-i, attached hereto and inoorporated herein by
this reference. The Mccormisk projects *itt r.*. the McCormick Froperty and the credits
authorized by this Developmernt egreemerii'*'" onfy applicable to lots for which building
pemirs are appliect foi un.r'ifr. riare if this ;g;r;r;;; wiihin ttre,Uoundaries of the McCormick
properry as defined ;;;ibil A-l anO as .nofin on the Map attached hereto as Exhibit A-2'
$ec$jon 3. Definitions. As used in this l)evelopment Agreement' the following terms'
phrases ancl words ,fruil 6rn, the meaning, und b* interpieted as set forth in this Section'
a) "2005 Transportation Development Agreement" or''2005 Transportation DA" means
the 2005 Development Agreement or. qanspo?ation yli:h was executed between Kitsap
counry and Gern r, iicu"nJ iut d April zi,'[ios und which was assumed by the city of Port
Orchaid upon annexation on May 27,2009'
b) ,,Adopting Or{ry39{l ITi-^ the Ordinance which approves this Development
Agreement, u. ,rqu,rJd;in'w 36'708'200 and Chapter 20'26 POMC''
c) ..Cotttmence consttuction,, as to the McCormiok Projects means that the required
permit(s)haveissuednndtherEare..bootsonthegrottnd''attheconstruotionsite.
d) ..Complction,, as to the McCormick Projects- means passing final inspection
associated with the LDAP/SDP p"rrnits"JnJ"piouiaine the required 2-year warrsnty and
Development Agreement for Funding Transportation Improvements
Page 4 of l9
FG:54082696.4
maintenance bond for the improvement(s)'
.'C'pl-ti" n.rq1tls the pcrcenrtgc rutc charrge for the All Lh'bHrr C'crnsumers lndex (CP|-U)
(lgg2-l9g-t=lt)01, nor seo$;natly ailjutted, fior1be Seattle-Tacontn-lJcllcvue nrea for that l2
monttr pe rirrcl fi.ont .lunuur.y | " to l)cicrrrtr.'r 3l't lndexed as the Annual Average, as is specified
i;y ilt; ilu,**,, of Lnbor Statistics, Uniteel States Department of Labor. Increases based on CPI'U
shull takc cfl'cct on tvlnrch 1$t of the follorvirlg ycar'
e) o.Council,, or .,City Council" means the duly elected legislative body governing the
City of Port Orchard.
f) ,,Difector" means the City's Community Development Director.
g) "Effective Date" means the effective date of the Adopting Ordinance'
h) ,,Maximnnr credit,' or "maximum reimtrursementn'rneans the maximum amount that
is eligitrlc l'rrl pyo.iects sub.iecr t6 this Agt'centcttt, or fot past projects done by cEM I/MLC' for
which reirrrhrrfserlc'x nr iinl*.t iee cri,liro rvill be provided by the City to the Developcr or
MLC.
i) ..lvlc(.onnick pro.iect(s)" or "Pr.o.icct(s)" flrcnns tlte tr,vtr traltsporlatiort pt'o.iects
clescribecl nlr,vc whiclr ."ru.l botf.r the Mccnrtnick Prtrpcrty rtttd thc gr$atcr c'ttllrrttnity' as
specifiecl in section I and as providetl fo' in all tsst'ci'tccl ltrrrtit'siapprnrvals' nncl all
inoorporated exhi bits.
$cction4,Exhibits.ExhibitstothisAgreementareasfollows:
a) Exhibit A-1 - Parcel numbers of the Mccormiok Property that are subject to
imPact fee credit.
b) Exhibit a-2 - Map depicting the boundariss of the Mccormick Property that are
subject to tlre inrpact fee credit in this Agrcement'
c)ExhibitB.l_ParcelnumbersoftheMcCormickProperlrywithvested
concunency'
d) Exhibit B-2 Map depicting the boundaries of the Mccormick Properly with
vested concurrency .
e) Exhiblt c - Map showing the original b-oundaries for the 2005 Transportation
DA which remains ihe reinrbursement area for MLC
Section 5. Parties to Development Agreement. The parties to this Agreement are:
Development A greement for Funding Transportation Improvements
Pagc 5 ofl9
FC:54082696'4
a) The o.city,, is the City of Port orchard, 216 Prospeot Street, Port orchard, wA 98366.
b) The ..l)evek)Pdt" or "Pr-operty owttef" or "McCortttick" is a pr"ivrtte enterprisc rvhich
owns the McCormick Pro;:erty in fee, un,f *'lio,* pti""ip4 o{'l1cc is l.catcd x 123i2 NFI ll5s
Place, Kirkland, WA.
c)GEMl,LLCisthepriorownerofthepropertythatwassubjecttothe2005
Tra.spor.t^atio' DA, and MLC is the strccessor to GEM t foi puipotes of reimbursement' MLC is
rocated 'r lg69 rur"ciin*-gtvJB, sronte, wa psil2 and is stitt receiving reimbursement from
the City for trnnsporrrii;;;;;'d, do,r. trrrcler the 2005 Transportation DA' These payments will
.onrinr,1. in acsotdance with Section 15 olthis A;greement'
liectiouJo. Projccts are a P-rivate undertaking' It is agreed among the parties that the
projects arc private i,.'p,""-tii",t,s for wlrich credits are-required pursuant r. llCW 82'02'060({)
and that the city tras nJ interest in the imprw;;;"; until zuch time as sash pr'lriecr is cornpletecl
and dedicatPd to the CitY'
sectiu"n ?. Term of Agreement This Agreement shall commence upon the effective date
of trre Acrtrpting ordinnncc approving trri, ng,"?'ncnt ancr srrail c.ntinuc in lorce rtu a pe'iod .f
twe^ry (30) years unflrr .^,*tit*.t or'-ternrinrtiecl as providcd hct'cin' provicled tltut t'c'iurbtrt'sclnelrl
to MLC pursra't tn ir"rl.ii, l5 slrall ,uruiu* t'xpiration trntil lirll.reimttut'setnent is received [r'v
MLC, Following the expiration of the ,rr,rr-o, !*tenrion tlrereof'. or if sooncr terrninated' this
Agreement shalLhave no force and effect'
scslion 8. Repeal nnd ttcplacoment of 2005 Tmnsportttion DA' In considelation of
the bener.its ro rrrr pei[rJpei-pioui,i..r uv trre iimery corsrruction of the tvle('orrniul< l]rojeuts' tlre
confirmation of concurrency, the rgrr.tunio" u *itAi' cnlcrrlation tor transporlati'rtt ittlpacr lbcs
wrrich wiil t,. crrr'gcili,., iri. vr.cinnict rtofer.ri,. un.t rhe continuation of 'ci'rburse'rerrt
li'onr
inrpact fees to Uf-C, itrc Dcvclopcr. if'lt,C.lrrilttre Cify agrce lo tescittd' artd by cxet:rttitt' of this
Agree'nent do rescind. rhe l(f(l-i 'l'ra,rrpur,nii,* Ag'e*rr.rir. ancl rcltlace it with this L)cvelopnrent
Agreement.
$.cctiong.Concurrency,.l,hePartiesagrectltltt-C.ity$treetsnlt.ectcdby<'l.lt'..'lopttlr'Dtof
the McCormick Property have t'e capaoity i; ;;t t.e Mciormick Pr,pu'tty in cont'rliuttc'c with
the City's ci,,tcurtc'rc1' reqrtitclttcntn *o io'ig- n' srttt' rlcveloptttettt cluus llst ]'sFtllt irr the
gereration of r:ror.e ifri,r i.ifOO PM peak i*,n itipt. rvhich is i'c rrtrnrh* 'l' r*nrairting trips
iclentified irt section g of thc 3005 i'ransportatiol; DA t'cserved fcrt' thc N'lcColnrick Pttperty
identified on Exhibits B-l and B'2. t't i, "n''oi'ting
concurrency prnvided in tlre 2005
Transportation DA i* ting oun'icd fo^vari f"t an- duratit]n of this Agree ntent as set foillt below'
i'f,.t."utpt'.re available as of Deccnrlrcl l5' 2020'
AvailablePM
MoCormisk. vil local center 6s9
Devolopment Agreement for Funding Transportation Improvements
Page 6 of 19
FG:54082696.4
Map Ilesignation on
Ex. C
North
Lots/Units for
Area
North
(residontial +
commercial
r Single FamilY
Residential
McCormiok West
a
a
Total McCorm ick North
Multifamil
Single Family
Residential
wd
d
GC
697
63
WestTotal
Woods
Woods
122
)FacilitiesConference
McCormick Woods
8
890
gs!qvlgls
WoodsotalT
8 Nqrylep_lgryd
3r2
I
315 North
415 419
--*S,esl__West
West
Residential PM Peak
calculated bY use tYPe
1,530 1,545
N/A
N/A
Totrl
Page 7 of 19
FG:54082696.4
rdgq
l There are 659 PM Peak Trips available within the Village looal center'
TG;iii be calculated per unit and commeroial PM Peak trips will be
and square footage.
The defined areas for the ansignecl concunency numbers tbove afe listed by parcel number on
Eslribit B-l and 5l11rrv, (except for the;i;i, ia""y.l.oru,,wliclt are v*curll lots in prior
subcrivisions) on Exrrihii di, *i;irh Exrrtbits ire atticnla hereto nrrd incorpu'nrcd herein by this
rerl,rcrrc.c as i'set *,ritr-in tiitt. ncsi,tc,.,rinr l**r"p,irerrt sh.il he
-rirnircd
lry cirhr-r'rhe PNI pctrk
rr'u' tr.i1ls nr thc nur.bcr rrr,units. ,urricher,cr]i, nii,'t ,'*r,ri.tivc. c''r'nrercinr rlcvcl.prrrcnt *ltnll
be linritcd ernly hy ,fr. iiftl pcal* hotr'trips. .'lir tltc exlent that McC.r'rick in tlte litttrre proposcs
rr,rsirlentiRl ()r cr)nl'll'rsirt' j*u*tnp"rcnt'rvit6irr thc McCorntick Pr6pelty that will.getlerate lllore
than the number orniJ'pr"r.-hour rips showrr in the trbove table. the ciry will tnako a nerv
concurrenoy cleterrninatioil regarding the capacity of its street system at that time'
sccti$n uJ, Proiect schcdrrle. The Developer will commence construction of the two
trrtcConrlill-8o1.*rs on the f b I I ow i n g sched u le
a) Wtlrlt crn t]te rotrrttlit[r0ut at the 1,'1.,5gg1iol1 of Old ('lillon l{ond nntl (.ntttptts Parktvny
(prniect tt) ii,!C ott the c'ity's i'iPi-lPcnrits llPw20'0ll nnd PW10'031t slrall
colr.ill.tcnce rro latcr.thorr .lunc 3$,2d}t. a;tl l)cveloper u'ill cottlplelr'- ctrnstt'ttttion in a
timely and worlimunlike manner. su; rvorli shull lw cotnplcrcd no lnter tltart selttenlber
30,2022.
b) Developer will submit a cortrplete set of plans litr n roun<latrotrt at the ittterscctiorr of old
ctifton Road and Mccornrick woojr pri". ip*.i-ct ID /i?.08) no later tltan Jttne 1,2023
Dovelopment Agreement for Funding Ttanspo(ation lmprovements
and willcommence construction of said roundabout no later than June |,2024, provided
that ttre City fras't=ef"*,ft*" aoquirecl the adclitionat lanc{, not owned by Developer' tlut is
neededforthisr.ourrdaboutlandDeveloperwillcompleteconstructioninntimelyand
workmanlike manner. Such work shall bc coruplcrccl rio latcr thrlrl septt'ltlbcr .'i0. l0l5 so
long as th" ciry i;;; *qrir"a the land nec.r*u,:1, tirr tlrc rtrttltclalrrrttt lrclirrc 'lurtu | ' 101'l '
lf the City r,ur'*t *q,lir*,] trir land neccsst,rj li,, tlte t'ortnclalr'ttt bcl'rrrc Jttrtc l' ]01{'
6ut does so more tlian 24 months befo|c cxpirirti,tn 'l'.tltis Agreetttcttt' l)c'el''c' sltull
consftuct the roundabout with 24 months of such acquisition'
sicction--ll* Pr.trject standnrds. Develtrpc'r rvill firtallcc., clcsign' nltd constrttct thcsc'
Mc('orllick lrrelir-cts to c'onrply with City stilrrtlurds' incluclinlg obtaining all necessary pertrtits'
l-lrc City rvill np'r''i.c tlrr"'lnns trettrrc c'ltstructiott bcgins: ancl the City rvill acccpt
rcspprrsilrility' lirr rhc .,i.,*,iil,i ,'f'.tltc.l'ro.ir:c(s onge oonstruction is completed and a two-year
wdrrilnty nrrrrrnairrte*,rrrl.itrn,,,r is irr pracc. A p"iccl wi1 rrc trc.'*ed completed when all of the
l;llcru,ing occ*,s: f . :i:t.,* Cit.v tlce'is it strbstrrriii'lly cortrplctel 2' All punch list items are
fitri:;herl; 3. 'l.lrc citl, rclerr>r,s rire pcrfrrrnranee bond; +. "rne Developer has put.a J'vel warranty
and *rflintcnarrce boncl in place; 5, The Developer.hascornpleted ali property rle.'licatiQrts;and 6'
The Dcverol:er has pr*lir*.r irrc city with a bitt of satc for rhe inr;rrrrvernenr.s c()rrilining thc
certified construcrion costs (stnntped by liccnscd engineer)to the ('ity tirr drlr't'ttrinntitrn of ths
maximum crr:rlits available undci this-Agrcr..rrrerrt, i'he City witl uottfirttt ccrtttplctettess of the
;;;d;t issuing a Finat Notice of compteteness to the Developer.
sqctiorr 12. Projcct costs. The maximum amount of ttre credit (or reimbursement) for
prtrjccr costs lrclftrrmed utr,,lcr this Agrccnrcni stratl be limited to no greater than the cngineer's
esri'rure contairred i";;ciir,;'iiun*[orruri.rn impact lee culculnrir'xr. Plus iitt.'.utttttrl.inl'lillor Pcr
the cpl-LJ. or, tbe 0",,*i"out., incur'ed rry tr.,u n.i'*r*Pcr. rrhicrru.vcr is rcss, 'r'rrc credirs p'trvidcil
undcr section l4 bet0wja,.e linrir.clto thls,nu*inr,,,,,'.,'ct{it/reilrrLrut'riLllnent fflllOlllll attd rtttce tltc
prrr.iect oost nrnxiut,,'tiftl-ftuo. ft..tt acltir"'vecl through crcclils or direct reimbursetnent to
Developer, the crccrits rviil no lorrgc' be avuirubre and-fuil inrpact fees wiil be due fo' firrther
development.
Ser:tionls.Appllcabtclmpact[.ee-q.Therepealandreplacementofthe2005.l'rausportatirrn DA re*,,lts in all properr,r-o*nrrc both within and without the McCormick
pr.opc'ty hcirrg subicc'i tr,'ttr* C'iry's esiattlished citi''rvitle irtrpac.t lcr'rs as tlt"tg lltr\t exist *r lrtaS
bc rn.dirjccl in rhc lirurre try the crity tj.runcii. rr.,ir Agrcenrcnr.{irrther c.rrfirnrs llrnr inrpact ll'es'
pernrir fi:es, ca;ritul ti.iiinit.tiurg*.*. una oif.,.t tii,iiitT' fccs whiclt urc ucloptccl 6y llrc ('ity as 'l'
the lil.ltctive Dar,: ol'tlris Agrcenrr\lt may b" in.,r*r*cd by the City li'om time to time, and madc
npplicablc tu pclr.its antl i1:pr'c,v,lls ti,li riic VlcCornrick Propcitl'' as long as such f'ees rt'd
clrorges apply ro sirlilal trpplir.:ations un,r pr,l",t* elsewhcre in tfie City' All irnpact fees shall be
paicl as set lirrth i,.1 tri*-orrrj,"ied ;rcr.mir ,,,"np"provat, or as- adclresscd in chapter 20.182 of the Port
orchard Mu.icipal (..;*': **..1u as nrnaitic.cl l.rr rlris Agrectttr.'nt. Nothi'g irr tlris Agrcctltettt
rcstricrs or prcrrritrits rr.l. c'irv fi.onr r:risi'g i* r'."i, inr:rucriirg r*'slxrrl*tiorr irupacr ,b*r:
i^,].L.lti-t.
;1ev$[*p*r ilgt.ecs tc, pn1. tlrc'iulpact l'ecs.ai t]re ratcs tlrrrt nle itr e l'lect at tltc titnc tvltcn pitYtttcttt ts
J,* ntiuu* nrry cretlit,s ipplicrrtrlc itccotrlittg tu this Agreement'
$octi0lr l{. lnrpact f,'ee credits. The city hereLr.v grsnts the Developer a fl'utlit against
trarrs'o*urion inrpnrill., zu io ""r,. to finun"", desigir. a'nd construct the Mccormick P'ojects'
Development Agreement for Funding Transportation Improvements
Page 8 of 19
FG:54082696'4
The credit is available to parcels located in the areas identified and shown on Exhibits A-l and
A-2.Thecredits will be catculated and applied as follows:
a) Each paroel or lot that is developed withy the McCormick Property credit area
tlixhibits A-l find A-l) will pny'thc ('ity's arllrptcrl itnltact lbes trntil Dcvcloper'
'r.'vid,",s,1rcirrii.'nttrti*rrr
t.', tlr* t:ir.v thar'Dcvclopct'has cxpcncled u tttittitttttttt ol
$S().qt)l) t'wards thc clesign or corrirnrr:tir)n ol'otlc ol'tlrc lVlc('ormicli Pro.iccls' n t
the time of this Agreemeit, the parties believe that Developer has alreadY met this
threshold,therefo-re,onceDeveloperptovidesthedocumentation,theCitywill
begin applying the credit doscribed in this Agreement'
b) once MoCormick prwides documentation to the city of such . $50'000
expenditure, the city will grant a credit in the amount of $1,000 per new home (or
per pcak pm trip for cornmercial/multifomily development) against its standard
,run*1r*iuiir., i,1ipor, l'uc for clch rpplicltiori to tlcvckrp ir lot or Parccl,withirr tltc
u"cor.nrict, prolierty credit trrea (irslriltirs A-l rrncl A-lt until stlclt tittt* ns lhc
clcclits grantecl fry t'f',* City cqual the utttortnt of cfedit clue to Devcloper ttnder
Section l2 above. This ...dit u*ount shall be adjusted as follows:
i.The$l,000creditshatlbeadjustedannuallypertheCPI.U,such
adjustment to occur on March l't of each year;
ii. If the amorrtlt erutstanding for reirnbursement of project co.sts is less than
tle credit, then the lesserimount shall be provided as a uediq
iii. ll'r5c 1,ity
'cirnlrurscr
1t1s l:lcvelnpcr tlirccrly u'ith Sl"rPA. rtitigiltiorr lirnd*
rcceivctl Fr..rn an.tlrt,l- d*u"t,,p.i, thclr tlrat ultl()unl shnll 5e declttctccl
dollar lirr d(lllar firrrrr the a,,r.,t,,,r ol'pt'rrject cosls rtrltsll'tndirrg rnd thc
credits available will be reduced accordingly'
c) [ i'.n conrplction ol'each pro.lct',r, l)c-velupc'r'-clrull strbrrrit ccrtiliccl pftticcl co^rts ttt
r6e Ciiy iii.' ,.ni*t uncl a."tptnic. l",.v tlic C'ir.v F'ttgincer" (lrtc.e tltcsc ,costs
atrd
clsccut$(l lSill of Snle arc rcVicuocr.l' arrd ilcr.r,'ptcri ttl' tlr"' ('ity l"rrgineer" the
maximum crodit due to Developer will be established and will equal the amount
of the project costs as so ceftifi;d in aocordance with this subsection and Section
12. Th'"'Aity *iit g*nt t5e oreaits described in Subsection b) above against the
transportation impacts rees tttat would otherwise be due for development of lots
ana parcels within the McConrrictt llnrpeltl' credit area ns identified and shown on
Exhibits A-l and A-2. Such orcclits'sh0il be provicled until such time as tlre
Developerreceivesfullcreditandlarleimbursementforitsprojectcostsorthis
Agreement terminates, whichever oocurs first'
The city agrses that these credits are consistent with Rcw 82.02.060(4); thot they are
appropriute in light of tle unusr,rl .irc,nr*iarr.* ,tc*.rittctl in ttrLr Recitals altrtvc: t6nt tltcy nre
consisr*rr wirh the ln,"n, of l'OMC' :fr.f ti,rlgo: $nd thill tlru City ('otrntril. lras lcgislnlivr"lv
apprrved this ngr\rc,rr",it .,t.t exempted i[.t* tt"ttits lor clt'r'c1i1t''tt*ttr o1' tlrc Mc['ot'trtick
ili,j".,* from theipccific provisions of POMC 20'182'080'
Development Agreement for Funding Transportation lmprovements
Page 9 of l9
FG:54082696.4
ijgcf ion,lF. UcCornrick Lnnd Conrpanv ltginrbr$:scgr-Sfrl' This Agreerncnt Icrl'tjt'nrs the
Cit)orriiirrcti.''rtrltlteCjlenwoodCottttectorlttladrvrryand
ruinor irlpiuvdtrrents to Feiglr..y lloucl. The rnrrimutrt rcinttrut'sertnent amounts outstanding for
tii.r*-rr,.*.ts as ol August \,iozo is $1,542,239.64. t{cgarrllcss ol'any fee credits plovidc'tl for
in this Agreement, tlre dity's r.eimbursemerrt fur such project shall oontinue at the rate of $720.80
for eash;lnit of housing oonstrqcted or for each PM Peak trip, or fiaction theroof' for which an
i*p-"i f-r is assessed i-n the MLC reimburscrrrcnt area as dcpicted on Exhibit c until such tinre
asMLCisfullyreimbursedorthisAgrr.rcmentexpires.whichever.oQcursfirst.This
reimbursc.nrenr an.rounr shall be increased annually try ('Pt-t.l (Sicnttlt'/Tacoma/Bellevue) lbL the
most recent tyclve-nronth period (January l't to Dccctrllrcr Jl''rl prior to the. date of tlte
u.tlurtn.,.nt. such adjustrncnt shall raiic et't'cir ou lvlnrclr l'r trf eaclt ycar'. colrlntencing ort i\4arclr
l.'l0ll, Disbursemsnts.slrall be madc annuully itt Jartuary olcaclt ycar basetl ott tlte collcctions
iio* J*nuury l', to Decsmber 3lu in the prior ycar. howcver in 1021. suclt Faytltent shall only lte
f.rom collections from August I to Decembe, il, 2020 as payment fi'om collections thrnugh July
31. 1020 has llrelcly .,rcirrretl. i\'ll,C agrces to lhc tcpeal of the 1005 lnrnsl)odilti(tn I)A rutd
lcccpts tlrr". crrrrtirrucil gcinrtrtrrscrncul utttler lhis ttctl r\gt'cetnettt artcl ugrcr's ttr lre lrtrttttd b.v thir
,...iu'ng,.**,,.rcut irs shorvn by its sigrurrure t(r rhis Agrc'crrtcrtt. lltis Sectitttt l5 slrall sttrvive
"*pirario,.,
ol'rhis Agr.ecnrernt nrrrl shill rcrnain in eft'ect until such time as MLC has bcen firlly
rcinburse4 untler the terms of this Agreemcnt for construction of the Glenwood Connector
Roadway and minor improvements to Feigley Road'
Secti'lr 10, Dc4icutiorr of public Lantls.'l'lre l)u'vclrrPcr slrirll clcrlicatc thc llnd tltat il outrs
that is rrceclcrl to c()nstruct the McCcrrnrick l'ro.iccts Frirrr lo fintrl crttrrpletiott ol'each l)ro-iect,
Nai,t.,a, l)rtlicct shall be dcernccl conrpletecl until such clcclicati<trt-s ltavr: out:ttt'rc(|. ln ailclition.
co'sistent with Section 9 of the 2005 'iranspofiation DA, to the extent llrat projects. on th.e City's
T.lp including Old Clifton Widening ot1d the ljeigley ltonr.l Routtclabout requirc ilrlclitional
J.ai.aiion, oirightof-way fium within the Mcoornrigk pllrpcrt!, Mcc'ormick will decliutrtu that
Fortio' of the arl-rtiri,,rrllrfuht-ol'-way.- liuch dciticatiorrs shall occrur withill a mtrtttnlly agreeable
ii'reti.rrme prior rq thc 6id solicirarion for the pleriect requitirtg aclditiorral right-of-rvav,
Seetiqn 17' Default.
a) Subject to extensions of tirnc by mutual consent in writing, failure or delay by either
parly to perform any term orprovision ol'this Agreementshall constittrte a delitult. In tltc evcttt
oi:oitrg*a default or brench of uny terms or sorrclitions of this Agreettlcttt, the Pulty alleging strclt
dethult or breach shall give the other Party not less than rhi*y.(30) days'notioe iil writing,
speeily.i'g lhc. rl{r1re ul'itc ullcged tlcthult irrrtl rhc nrnnn$r'in which said dcf'trtrlt may be cured,
iii,li,rg tiiis ttrirry 1.101 drv perrt,d. tlrc parrl clralgecl slrall not bo oonsidercd in default for
;r,,rp.ri*,i ol'tcLtniltttti'tt *t' irtstitttliott rrl'lc'gal llroceeclittgs'
b) After notice and expiration of thc thiny (30) clay period. if such de lirult has no( beett
curecl or is not bcing diligontly fured in the rnarrnei set fi:rth in tlrc lrotice, the other Parry to tlris
ng,..*n.,*,rt play. .rt It, .,pTi,r,',.'i,rstitutii legnl proceedings pursrurnt to this Agrcettlcttt' llr adrlition'
the (.it,v nrny dccide to lile $n lctiott t,.r eniirfc,: the bity's L'r.rtlcs. and to crbtlirt pcrrnltics atrd
.*,i 0.., proviil,:cl in thc l,ort Orchurtl Murricipal Code for violations of this Devslopment
Development Agreement for Funding Transportation Improvements
Page l0 ofl9
FG:54082696.4
Agreement and the Code '
$icctiqlr 18. 'l'crurination. This Agrer,'lncnt shall terminate rpotl the expirntion of the term
identiliecl in Sectio' zl i"r,i"tr expirati"orr rlttc is Fuhluntl' -_, 2tt{ I' Upon tcrtllittalitln, ol' tlris
Agrcenrcut. thc City shnll r.ecorcl'a rrorice of such terrnirilrtiun in rr lirrm satistttctolY to thc Cily
Atror.nev that tlrc Agrcenrcnt hns -Lreen iefnrinated. In sddition, this Agtecment shnll
auronraticnlly tcrminute"and tre of no l'trrther lirrce and effect as to any single-family residence'
any other. residential dwelling unit or any notr- r'esidcntial building and the lot or parcel upon
which such resiclcnce or building is located. when it has been appfoved by the city for
occupancy and impact fees have been paid'
Section 19. Extension nnrl Motlification. Any request.for extension or modification' if
allorvcd unclcr lhe City;s code, shall be subject to'the provisions oontaincd in Chapter 20'26
POMC._
scrifion 2u. liltect upon 'fcrntirtation on Developor and MLC' Termirration of this
Agrcernent as lo rhc ii*u.Tup*, "i'*, ,u Vtl..t'sfiall not affect any of the Developer'$ of MLC'$
rcslle*tivc u6rigati,rrsi".*..lpry ,,,itrr trrc cit, i:,ri.r.tp,.rhensi'e 1'ran nrrcr trrc tcrr.s $ncl cr.rrrditirrns
or .u.ry aplllicntrlu zcriling codc(sl ,-rr strlxlivti|l,,', ,t',.p or tttltct lnrttl ttsc etttitlctnettl's tltlttoved
witlr rr.s'ccr trt thc lVlcCirr'icL Pt.r'crly or the fulLC pr.perty.,cll'0lly .ihcr cottditi.rts spccilied
in tlc Agrccnrc'l t() cg'tinuc i1licr rlic lcrnrittation of this Agreeme't or obligations to pay
ilsscssrr.l*.rs. ricns. rces.r tlrxcs. Fuilhc''r.rc. ir'rrrr,- Agrccln*rrr expircs rvitlrotrl the pnlicct c.sts
being fully recovcl,ed 61,, irtrpact t'cc crcclit.orl,tiitigt,i,;t lirncls' tltc De'cl.per tt'ill tt' l'nger 6c
r.ligible to rcce iv* *u.fi .i'Jrf i,r, l'r',rvirlccliit;;;;;'. tltar Secliott l5 *l' this Agrcenrent r'ill
$un ive tenrrirrRtiott if MLC ltns ttot yet beerr ftitly reimbursed and this Agreernent will only
cxpire ns to MIJC after both termination and full reimbursement havc occurrcd'
sccfioq 2!. Iiffccts ttpon Termlnntion on cil1" uporr any terninatiott of this Agt'crjtttcttt as
to t6e McCornrich ilil;: "it"v p"ttion il.,.'r*t't: or as t; MLC prupcrty' tlrc.cntitlctnents'
oonditions of cteveloprnent, limitations on fees ancl all other terms and conditions of this
Agrccrrrent shull n.'i;;;;;;: hc 'critcrl^h*e[ry
wir6 respect to the propcrrty at'lectctl by sucS
te*rrirrari'n fgrmviclcci tiiar vesti'g'f streli cnritlsments, conditious't'l'ces trtn)'then be
esrnhlislr*,1 ti:r suclr ;;,',,';;;ry j,,ro'i,,t to rr',* ttt"n txisting ptanning and zoning laws)' The City
will be under no obliiatifn to provide any additional *edits-or reim6ursement to Developer evcn
if the project costs ha-ve not been fully .""ou"r"d at the time of expiration or termination'
scption,2?. Assignnrcnt 'llttl.Assuntplion.. .Thc Dev.oloper shall have the riglrt to sell'
irssign 11r trilnsfer rhis Agrccrnctrt with ,rr,,'ilrtit. iitle, and i,tereits therein to any pe'$on' firm or
c'rprrfati.n at s'v rir.c iii,i.ing tr,* rcrnr.r'trii, Agrc.trrerrt with u sare or'rhc uncre'ryirlg pror)erty'
Dcvcl,per shatt
'rouiJc
iii.' rii'l ,virtr writrci' ,uul*" ol'ntty irllcrrt to sell' nssign' .r tnrttslbr ntl ot'
ir
'ortio,
oIrtre lr4ccl]i,ui"rr,op.ily. at.l;;r "iit rl,r1* iti'd'altc* ul'sttclt ilction' A transl.cr 6y
l)cvel'pe'uvill tt'l itn;rttct t;c rig6ts ot'Ml'C trrrdertlii's Agrcenlcnt' Tltis requitetttcttl lilrnolicc'
horvevcr. (rr)cs nor "ffii.,, li.,. int. rry n*;.i;;;;'',,ri in.rii'icruar resicrc'ri,l t.rs irr)provcd [r1' thc
City for develoPment of houses'
Dovelopment Agreement for Funding Transportation Improvements
Pagellof19
FG:54082696.4
ticc$ion 2J. ltintling on Successol's; Covennnts Running with the Land' The conditions
and cr)vdru*rts sel li)flh in this Agreement and incorporatccl herein by tlrc Exhibits shall run with
the land and the benefrts una uita.n, shall bind and inure to the bcnelit of the Parties' The
[)c'el'pel. a'cl every pur.clraser, assignee r.rt'tt'ltttsferee of an interest in the McCormiok Property,
or 1lly portiott rtr*rrul, slrall he c,ttligar*cl nrtrl bound by the terms and oonditions of this
ng,;*nr*nt. rurcl slrall trc rlrc berrcliciur! tltercol'arrd a Party thereto, but only with respect !o the
lvlcC'.rnrick Pro1rcr't1-. ur such prrrtiori tltcrcttl. sold, assigtted or kansforred to it' Any suclt
furrt ur.r, assignee or transferee shall observe and fully perlirrnt all of the duties and obligrttir;rrts
iiu n""*i"peicontained in this Agreemenr, as such cluties ancl 'bligations
pertain to the portiort
of the M,rcormick Pr.operty sold, assigned or transferred to it.
se-qtion 24. Amendment to Agreement; Effecf of Agreemont on Future Aelions' No
waivcr. alteration. or nroclilicltion to rury ol'ihc prnvisierus rrl'llris Ag|c'ctnelrt sltnll bc Lrinclirrg
uulc.rs irr ruriti'g. nig,r.i,Ltr! llrc clulv autlrolizcrl rcl:r'csentntivc's rtl'tlte Pnrtics. trc fi'ltsistettt witlt
i:ii*p,*r :n.:o trnnic'. ",r,i.
ruhn,c cnnsiclclctl sutrsmntivc n.r detcrtuittrrtl try thi" l)ilcr;ttrr' lQllow
,lr. ,n,u* proccdttres sct lol'tlr in Cholltcr 30.16 POMC' However, nothing in this Agreement
*truf i pr"u"nt the Cify Council frorn making any amendment to its Comprehensive Plan, Zoning
Co(c. Official Zoning Mup ot c|lvcloprrient rcgulilliilns. or to- impacts- I-bcs. that al'lcr:t the
Mccormick property ln the same manncr as orher l)rrlpclties, after the El'fcctive Datc ol'this
Agreement.
Section 2i. Releases.
4 Ceu*r.al. Developer,may licc itscll'['onr tilrtltcr obligations rc'lating to the sold'
assigned, or transten,cA pr.ip.i:1f. pluviclett thnt tlru lrrrycr. nssigllee or tt'itttsferee expressly
ur*uL"* ift" obligations unOei tttis Agreemont as pL.vidr:d hercirt'
b) previously collected inrpact l'ecs, Devclopcl'cxpt'cssly t'r'uivcs uttd ltrlcvet'relcfiscs
C'iryli.orrranyatttlnllclnirtrsittttttl,ltar,cwitltt.egat'tlstotltenl,I.l(}tlllli)ftl$age.o|.arty
trilu$pnrtuti6u intpacl i'c,:s rvlriclr thc C:ity collsctcrl ltrrirt ptrt;tet't1 tlral rvas stttt'icct tp the l0tl5
T.rnrrsporttlrion l)A pri()r lo tlrc cl'lcclive clatr- ol'this Agreernr"-trt l)evelolrcr further agrees that
(.ity can ulilizc tt.,**" grr.t,iniirly *otl".t*cllirncls on any-prcrject it deems appropriate and is not
lirnited to thu grro.icc:ts'r,utliilr,rl'in (hc l{)tls 1-ransportatiotl PA,These pf0.iccts incltrclc' but are
not limired, to the oid clifton Road/Anderson Hill Road Roundabout (Project 2.07t. the old
ctifton Roacl non-motorized shoulder and pcctesffian improvements (Projeot l'5A), Old clifton
WiO."i"g Design (Project I '5A), and Bethel Avenue (Projeot l '3)'
o) Obligations to Kit-sap County Extinguished. This Agrcettrctrt beirrg a ctrllrplute
replaoement to the ](f().i irun.lrnr,n,i,,n DA, ncitltcr Party has any obligatitlts to Kitsap Corrnty'
,lcctiou26.Ntlliccs,Ntrtices.clemgncls.ctrlrcspttltrlcllgg.|qthl.Ciry,full.t...uttrllcrrDevelcrpcr
(as rpprlicablct shali br. sullie ierrtly givclr il' clispntchcd.lrl' .prc'pnicl l'irst-class tttail to lhe
sdclrcsses of rlre plr,tiers ns clesigrrated ilr "wriuen No(icc." sr-'cliiltt 3tl lrelor*" Noticc to tlre city
shnll bc to ths otlcnlipp ol'botlithc Llity ('lerk ancl tlre Ciry Atlortrey. Noticcs to successors-in-
interesr ol'rhe Dcvel.rp.. rf',of f be reqrriicd to be givurt bv ilrc.City only ftrr tltose $ucc.cssors-in-
irrtercst who have given the Ciry wi.itterr noticc-nl'thcir ncldress l'or suslt notice' 'l'he parties
Development Agreement for Funding Transpoftation Improvements
Page l2 of l9
FG:54082696.4
hereto may, from time to time, advise the other of new addresses for such notices' demands or
correspondence.
Page 13 of 19
FG:54082696,4
licqtiorl 2?. Rsimbursenlent for Agrccmcnt Expcnses of ilre ci$" I)cvelopcr agrees to
rcinrlrursc the ('ity roi*ctilat expenses incuflrrcl over arrrJ abovc l-ees paid.by Dcvelo.per as an
u'plic.nr i'r:urred try'iiiil ,iitl:.,11 *f.lirrg to this Agrcenrcrli. incltl(litrg recorclirtg fccs'
gtublislring pccs {rrcl reasrlnulrlc stirl'l' flrttl iorrsUltant cOsts not otherwise included within
irSrplicnri" lbcs, "l-his ng,:*n',*n,slall nril.take cffect until the fbes provided fbr in this section'
irs r,.,ell ils otr), procussiltg llcs rlrvctJ to tlrc (lify lirr tlre. trartsportntion pro.icct li'llt'rrvtt as the
Ctrrrr;ttrs Parku'ay R,otrrrinbotrt arc prritl to thc'L'ily' tlnoll I'rtlylllent ol' nll cxp.rtrscs' the
l)cvclrrpcr ,uu.n ,.*,1,,.r, rvrillcn uclitt,.trvluclg,,r't,,r*ut ut'utt f'."i. Srrch pa;'nrcnt ol'rrll I'ees shnll be
pnitl' nt tltc lotcst, *'iti'i" ir'i'ry t'it't ttuy* itti' ttt* City's presentation of n written ststemont of
charges to the DeveloPer.
secti$n 28. Applicable Larr, Resolution of Disprttes, nnd Attorneys' Fee$' lf any dispute
arises br't\\recn the City tn,f Devcloper under any of the pro'isions of t6is Agrcetttcnt'
.iuriscliction .f arry r'-i,,f"i,.rg lltlgariurr ,rf,r,ti-it. nt.tl'in Kitsnp County Superi'r Cottrt' liitsnp
('.u't1,. W:r.rhi'gr.rtr ,,,ltlr"it.S.-l)istrict f:,.,,,ilifi'" Wtst"tn WasSington' This Agreement shall
trc gpvcrnccl |r\, itttr.l constrttecl itl:tcctrrclnttcc witlt the laws of the State of Washington' The non-
prcvailirrg l)art.v in oiiy r.fin', l*ought t. ettlirtce this Agreement shall pay the other Parties'
**p*nsarltntl rcnsortnble llllorlley's he 5'
Scction ?.9. No Third-Pnrtl Bcncficiarics, Except as otherwise provitJed herein' this
Agrcerncrrr slrall not ";;"4" an1. rights cnlcuccable by any party who ii not a Party to this
Agreement'
seclol Jt, cdy,s righl to ht'cuclt,. The patties agree that.the l'ity may' withotrt incurring
any liertrilitv. cngage in u.li,r,', tha*vtrtrlcl oti"J*it. U" i brea"h if thc City ntakes a deterrttirration
on ths recorcl that the action is nccessary to nvoid a serious threat to public health and safety' or
if the action is required by federal or state law'
siaction Jl. Developeros conrpliance. The citv's duties undcl'the ilBrcenlcnt are expressly
conditioned upon tho beveloper's o, nrnp"rty Own*t's.substantinl cotttpliancc with each and
evcr),rc11. corrrliti,rir. 1lt',*irio,t ln.tinr,"t,vcrtttttt itt this Agreemctrt' incluclitlg all npplicablc
'c.rerar.
srirrc, ilrd r'cnr hrvs rurd rcgurnri'nu iin.r ,rr" t)cverrficr's/r'roperry.ow'cr's obligations
as itlentiljr..d i,, uny ,p1.r,rv,tl.tr proic-ct pcltttit thr tlre propcl'ty idcntificd in tlris Agt'ccment'
$ectlon 31. Limitation on city's Liability for Breach' Any breach of this Agreement by
thr: {'it1, shlll givc' riglrr only ur da119es.'iutt*'' ttut* corrttact law and shall not give rise to any
linbiliry- urrtlc.r ('lraptcr 6t,J0 l{:C\Y. ,rt* lifift ttd Fourteenth Amendments to the U'S'
Ctrnstiitrticrn. ttr simi lat stutc crrttst ittll i(tnn l provistotts'
ti.gction 33. I'lrirul Ptrll' l,cgttl chullclrgt ln thc cvL'r)t any lcgal acticrn or spccial
pr.cccclirrg is cr'nrrrcncecl
'y
irny p*r*,rn.n,:.iiriti of
'erthnrr
il. Patty to clrallu*trgc tltis Agt'cutttu'ttt
or iluy provisiorl f l*r.in. tt',. C'iil"n1oy .t*.r-t,' i.,'A*' the tlcf'crrsc of stlclt lnu'sttil or ilrclivitltral
clainrs irt llts larvsuir tcr [)cvclo]rgt ' ltt "'"tl tlttnt'Developer shall hold the City harmless from
Development Agrtement for Funding Transportation Improvements
and defend the City from all costs and expenses incurred in the defense of such lawsuit or
individual olaims in the lawsuit, including but not limited to, attomeys' fees and expenses of
litGation. The Develgpcr shall not settle any lawsuit without the consent of the City. The City
sha'il act in good l'aith ancl shall not unreasonably withhold consent to settle'
Secriqn J{.. Spccilit: Perlirrrnnncc, "l'hc parties specilically agt'etl that dantag,cs {ll'e rlol all
uarilr y, iirr trrcach trl'this Agruertcrrt. uncltlrat the parlies at'e cntitled to c(trllFcl spccilic
prrto*nr,1.* ol'all nraterial terrrrs ot'tiris f)evel(lpment Agrccntettt bf iltty Party irt tleltrtrlt lrcrcol.
fcction JS. Rccgrtling. This Agrcenr!'nr shall lrc rccorded uguinst lht'Plu1:tcr'()'with the real
pnrgil[ffiAs ot'rhc ttiisop t'iouity Auditor, Duting the tcrttt ttl'tltc r\greetncnt, it is binding
upon tti.- o\ypers r.lItlrc tru'opctt,\,rlnd nny suec]essors in intct'cst to sttclt pfopel't-Y.
Spction 36. $evcrability. 11' any phrase, provision or section of tlris Agreement is
a.tiuffii r[ a court of competent jurisdiction to be invalid or unenlotceablc. or if any
provision of t'his Agreement is rendered invalid or unenforceable according to the terms of any
*tutut* of the Stati of Washingtr:n which hecarne etfectivs after the cflfective tlatc of the
ordinanoe adopting this Development Agr.eernetrt. ancl cithcr l'urty in good laitlr detclmines that
such pr.ovision or provisions are rnatsriai to its enteling into this Agreement, that Party may elect
to terminate this Agrcetlrent as to nll of its obligntions rernairring unperformed'
Section lT. Non-Waivcr of Brench. The faiture of a Party to insist upon strict performance
of ifi:ffir coverrants and agrcements containcd herein, or to exercise any option herein
confe'red in one or more instanies shalt not bc construed to be a waiver or relinquishment of
said covenants, agreements, or optionsn and the same shall be and remain in f'ull force and effect'
$ection 3t. Written Notice. All written communications regarding enforcement or alleged
brra greement shall be sent to the parties at the addresses listed below, unless notified
to the co'tru,,.v. flnl.r, othenvisc' s;.rccilied, auv r-r'ittcr'r rloticc hdlr"tlrrder slrall becotne elTective
upon tt.,. riar.j6f bot6 enailing arrci nrniling b1: Lcgi.stcrcd or.ucrtiljctl mail, ond shall be decmed
suffrciently givcn if sent to f he rclclressce at thc ucltltcss stalerl bclorv:
McCORMICK:CITY:
Eric Campbell
12332 NE I l5rh Place
Kirkland, WA 98033
e ri cii.i'llri,p gr l' Upll c.co rn
Nick Tosti
805 Kirkland Avenue, Suite 200
Kirkland, WA 98033
rdsltelli:s r1g$diL, c o! rt
Development Agreement for Funding Transportation Improvements
Page 14 of I 9
FG:54082696.4
Mayor
City of Port Orchard
216 Prospect Street
Port Orchard WA 98366
t'lt!!1d!!-llmtr(li-tvr[il]j"l!uubo rdlu
Copies shall also be transmitted to the City
Clerk and City Attomey at the above address,
GEM 1, LLC IMcCORMICK
LAND COMPAI{Y
Doug Skrobut
1869 McGilvra Blvd E
Seattle, WA 98112
Jskrr)l)utt(r'uttttti l.ctlttt
IN WITNESS WHEREOF, the parties have executed this Agreement on this
February,202l.
MCCORA/ilCK COMMUNITIES' LLC CITY O['PORT ORCHARD
scptiog-J?. Time is of the sssence. All time limits set fo*lr herein are of the essence'
The Palties lgt'("e to prrfort atl obligations under this Agreemenl with due diligence'
Scctirrn{l'linlircAgrccntcnt.Tlrclvrittenl'rovisionsnncltcttrrsoftlrisAgleetnetrt.
r,rgcrheii,iiiiffinxhibits utiached hereto. slrall srrpi'r:seclc all ltrior verbal st{rtclllerrls ol tttty
olljecr.'r trtler.rtprescrrtittive .l'tlte parties, arrd sticl stiltclnenrs shall not lrc efl'cclive or 5e
construed as entering into or forming a part of or altering in any manner whatsoever' this
ngr".,n"nt. fhe eitire agreement Setween the parties with respect to the subject matter
Seieurrder is contained in this Agreement and exhibits thereto.
llt auy or
tly:
Its:n
GEM 1, LLC/McCORMICK LAND
COMPAIIY
X'ORM:
By
Its:
By
Its:
J ,!),*,'rQu
Patriok Schneider
Attorney for McCormick
Development Agreement for Funding Transportation lmprovements
Pagc l5 of19
FG;54082696.4
rril'ct'
ttorney for Port Orchard
;:-t ) ___ t-, (/-
__
APPROVED AS TO TORM:ATTESTI
Port Ornhard CitY Clerk
Duana Kolouskova
Afiomey for GEM 1, LLC/MLC
Dovolopmont Agreement for Funding Trrnsporhtion Imprcvemonte
Pago 16 ofl9
FO:5'1082696.4
NOTARY BLOCK FOR PORT ORCIIARI)
STATE OF WASHINCTON
COUNTY OF KITSAP
ss.
)
)
)
I certis that I know or have satisfactory evidence thlr}lr, llab- Pr-Ltqgllu.tt is the porson
who appenred-trcforc rrre. rnd said percon ackuorvledgocl thnt he signcd tltis itrstrttmellli (-rll oath
stated tlrtrt lrc wns u,rrh,rrircd to exccute the instruntcrti and ac-knun'ledgud it as thc-l\4r.v-of o[ Ittit'l
lt;;hil j6 be the Iiee and voluntary act ofsuch Farty for the uses and purposs$ mentioned in
the instrument.
Dated:
...'.)'S!l':i " ! J"!,,..J liqt:?"##.J'2i "\' sor46ic fl", ta
:-l'r=
7!r).i\ "uBLrc ^v i _=
ahr**.N
or type name)
NOTARY PUBLIC in and for the
at:
My Commission exPires:
Dovelopment Agreement for Funding Transportation Improvements
Page l7 ofl9
FG:54082596'4
NOTARY BLOCK FOR McCORMICK COMMUNITIES
srATE OF WASHINGTON )
) ss,
COUNTY OF (t'r/)
0
I certif,that I know or have satisfactory svidence that " is the person
who appeorccl belore me, and said person ackrrowlcdged that t!:g/she) signed is instruttrent, on
that (!rg/she)was authorized to executc tltc instrumettt nnd ackttowledged it as tlteoatb statcd
fu{uu of NlcCqlru.isk.('ornrlrtrnitics. LL('to be the free and voluntary act of such ParrY for the
uses and purposes mentioned in the instrument.
Dated: :At -;4 - 20il il
b /t/.o
(print or tYPe name)
NOTARY PUBLIC in and forthe
state of w
IL,
ashi
,J
ngtolr, residing at:-
My Commission exPires:7
Development Agreernent for Funding Transportation Improvemonts
Page l8 of19
FG:54082696.4
A t(
Statc of Washington
ANDREWD. MARSIIALT
MYCOMMISSION E)OIRES
0346202r
otrry PubUc
NOTARY BLOCK FOR GEM I / McCORMICK LAND COMPANY
STATE OF WASHINGTON
COI.]NTY OF \L,,4
0
I certiff that I know or have satisfactory evidence that i\4r. Dotrts Skorbtt! is the person
who appeared before me, and said person acknowledged that (heishe) signed this instrument, on
oath siated that (he/she) was authorized to execute the instrument and acknowledged it as the
-[N"A"f of -Q.l=N--l--Llf(]M.c(gu!ic,k Latrd-elUpAlly to be the free and voluntary act of such
Party for the uses and purposes mentioned in the instrument.
Dated:tr"U I'r 20!:l-
A^J*, b {lA"^
(print or type name)
NOTARY PUBLIC in and forthe
)
)
)
ss.
ll
State of Wasl{ngton,
V*{.1-)
residing at:-
My Commission expires @t,'
Development Agreement for Funding Transportation Improvements
Page 19 of l9
FGt54082696,4
Stgte of Weshlngton
ANDREWD. MARSIIATL
MYCOMMISSIONE)CIRES
03{G2021
Exhibit A-1
McCormick ProPertY
List of Parcels Subiect to lmpact Fee Credit
McCormick North
052301'4-023-2008
052301-4-027-2004
a5?30L-4-024-2007
052301-4-025-2006
052301-4-026-2005
0s2301-4{13-2000
042301-3-011-2005
McCormlck\ilect
082301-2-002-2004
082301-2-003-2003
082301-1-013-2003
082301-2-00+2t 01
082301-1-010-2005
082301-1-014-2002
172301-2-002-2003
17230L-2-004-2001'
t7230t-2-oo3-2002
172301-2-006-2009
172301-2-005-2000
L7230L-2-W7-2008
172301-3-00+2009
McCormlckWoods
042301-3-010-2006
6031-000-131-0002
55s2-000-045{008
092301-1-005-2002
092301-4-004-2007
092301-1-009-2008
092301-4-005-2005
092301-4-003-2008
092301-4402-2009
162301-1-021-2003
162301-1-020-2004
162301-1-019-2007
\"/1f1.
Exhibit A-2
McCormick ProPertY
Maps of Parcels/Areas subject to lmpact Fee credit
't
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Lpggnd
McCormick Notth i North
McCormick West
f rrr.Ir.r..r.r.!r"'t'i west i
t,,....-..,..---....,-ri.,r.'t....il
t.,....,........'''....,,!,i..'...,r*.r.4
McCormick Woods it.........
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Exhibit B-1
List of Parcels wlth Vested Concurrency
McGormlck North
052301-4-023-2008
0s2301-4-027-2004
052301-4-024-2007
052301-4-025-2005
052301-4-026-200s
05230J.-4-013-2000
042301-3-011-200s
McCormlck West
082301-2-00?-2004
082301-2-003-2003
082301-1-013-2003
082301-2-004-2107
082301-1-010-2006
08230L-1-014-ZOO2
L723AL-2-OO2-2003
t7230L-2-OO4-2001
t7230L-2-oo3-2002
172301-2-005-2009
172301-2-005-2000
172301-2-007-2008
172301-3-004-2009
McCormlckWoods
042301-3-010-2006
5031-000-131-0002
5552-000-045-0008
092301-1-005-2002
092301-4-004-2007
092301-1-009-2008
092301.-4-00s-2005
092301-4-003-2008
092301-4-002-2009
162301-1-021-2003
152301-1-020-2004
162301-1-019-2007
Legacy Lots
s190-000-018-0009
5031-000-032-0002
6031-000-025-0001
6031-000-063-0004
s161-000-021-0009
514s-000-023-0008
5139-000-013-0008
6031-000-074-0001
Exhibit B-2
Map of Parcels/Areas with Vested Concurrency
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Jti.,,,,
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Lesend
NorthMcOormick North
McCormick West West
McCormick Woods
Golf Facilities
'!.'.l.l.l.l.r.'.r'.r''.""..'.-".".t:ecii...,..,.......,.,-..,
see Exhibit 81 for legacy lots vested to concurrency with this agreement
,-
Exhibit C
Boundary of 2005 Traffic Agreement
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