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007-15 - Resolution - First Amendment to Development Agreement with Bayside, LLC for Bayside PlatIntroduced by: Requested by: Drafted by: Introduced: Public Hearing: Adopted: RESOLUTION NO.007-15 Development Director City Attorney City Attorney March 24, 2015 March 24, 2015 March 24, 2015 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PORT ORCHARD AND L224-1 BAYSIDE, LLC FOR THE BAYSIDE PLAT TO ELIMINATE THE CURRENT PROCEDURE WHEREBY THE DEVELOPER PAYS ROAD MITIGATION FEES INTO ESCROW, ALLOWING THE DEVELOPER TO PAY THESE FEES DIRECTLY TO THE CITY OF PORT ORCHARD. WHEREAS, the Bayside Plat, which is within the permitting jurisdiction of the City of Bremerton, which approved the subdivision of 294 lots on 56 acres; and WHEREAS, the Bayside Plat was originally planned to take access from the Kitsap County -owned and maintained road of Anderson Hill Road, and was therefore required to obtain County Road Approach Permits, Right -of -Way Permits and to pay Road Mitigation Fees to the County, all as set forth in a 20G7 Development Agreement; and WHEREAS, in 2009, the City of Port Orchard annexed the McCormick Woods area, and vehicle access to the Bayside Plat is now from a road within Port Orchard City limits; and WHEREAS, Kitsap County assigned the 2007 Development Agreement to the City of Port Orchard to allow the Road Mitigation Fees to be collected by the City; and WHEREAS, since November 22, 2014, the developer has paid the Road Mitigation Fees into an escrow account, but both parties desire that the Fees be paid directly to the City of Port Orchard; WHEREAS, a public hearing was held on this First Amendment to the Development Agreement on March 24, 2015; Now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby authorizes the Mayor to sign the First Amendment to Development Agreement By and Between the City of Port Orchard and L224-1 Bayside, LLC for the Bayside Plat, which is attached hereto as Exhibit A and incorporated herein by this reference. Resolution No. 007-15 Paae 2 of 2 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage on this 24th day of March, 2015. ATTEST: City Clerk, Brandy Rinearson, CMC Mayor Timothy . Matthes H A+RD''% Z Q 0;�o Co.�^ e (� CD- �'�. ' •SFPTE�O• P,��. Resolution No. 007-15 Exhibit A CITY OF PORT ORCHARD 201506260273 Amended Agreement Rec Fee $ 79.00 06/26/2015 02:48 PM Page 1 of 8 Dolores Gilmore, Kitsap Co Auditor AFTER RECORDING RETURN TO: The City of Port Orchard Attn: City Clerk 216 Prospect Street Port Orchard, WA 98366 WASHINGTON STATE COUNTY AUDITOR/RECORDER'S INDEXING FORM Document Title(s) (or transactions contained therein): 1. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT ... BAYSIDE PLAT Grantor(s) (Last name first, then first name and initials) 2. City of Port Orchard Grantee(s) (Last name first, then first name and initials) 3. FREESTONE BAYSIDE LLC Legal Description (abbreviated: i.e., lot, block, plat or section, township, range) 4. Freestone at Bayside Division 1. according to the Plat recorded in Volume 33 of Plats. naaes 185-189 (all lots 1-125 and Tracts A-F and XX). Assessor's Property Tax Parcel or Account Number: 042301-1-065-2004 (AFN 201306100393) Reference Number(s) of Documents Amended: Kitsap County Auditor's No. 201409080187. Resolution No. 007-15 Exhibit A 6/8/15 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF PORT ORCHARD AND FREESTONE BAYSIDE LLC FOR THE BAYSIDE PLAT THIS FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT executed on November 5, 2007 (hereinafter the "Development Agreement" recorded under Kitsap County Auditor's No. 201409080187), is made on the 11*1 day of ,:�rUA L , 2015, by and between the City of Port Orchard, a Washington municipal corporation, hereinafter the "City," and Freestone Bayside LLC, a limited liability corporation, organized under the laws of the State of Washington, hereinafter the "Developer," with its principal place of business at 6820 20`" St E Suite A, Fife, WA, 98424. RECITALS WHEREAS, the "Development Agreement" relates to the residential development known as the Bayside Plat, which is to be constructed on property located west of Anderson Hill Road, approximately 1000 feet north of SW Old Clifton Road, Tax Account No. 042301-1-065-2004 (hereinafter the `Bayside Plat" or the "Property"); and WHEREAS, the Property is within the permitting jurisdiction of the City of Bremerton, and Bremerton approved a subdivision on the Property of 294 lots on 56 acres; and WHEREAS, the Bayside Plat was originally planned to take access from the Kitsap County -owned and maintained road of Anderson Hill Road, and was therefore required to obtain County Road Approach Permits, Right -of -Way Permits and to pay Road Mitigation Fees to the County, all as set forth in the Development Agreement executed in 2007; and WHEREAS, in 2009, the City of Port Orchard annexed the McCormick Woods area, and vehicle access to the Bayside Plat is now from a road within Port Orchard City limits; and FIRST AMENDMENT to the Development Agreement Bayside Plat Page 1 of 6 Resolution No. 007-15 Exhibit A WHEREAS, on August 25, 2014, Kitsap County executed an Assignment of Development Agreement (C064-14), which was recorded against the Property and assigned all of its rights under the 2007 Development Agreement to the City; and WHEREAS, based on the above, the Developer has agreed to establish a process under which road mitigation fees of One Thousand Fifty -Nine Dollars and no cents ($1,059.00) per dwelling unit in the Bayside Plat are paid to the City of Port Orchard, as a condition of issuance of building permits by the City of Bremerton; and WHEREAS, the parties acknowledge that between November 22, 2014 and 1 0115(insert date), road mitigation fees were paid by the Developer into an escrow with First American Title Insurance Company (3905 Martin Way, Suite A, Olympia, WA 98506); and WHEREAS, the parties agree that immediately following the execution of this First Amendment by both parties, these fees, which total Seventy -Nine Thousand, Four Hundred Twenty Five Dollars ($79,425.00), will be transferred from the First American Title Insurance Company, and paid directly to the City of Port Orchard either by check or wire transfer; and WHEREAS, immediately after such payment is received by the City of Port Orchard, the City shall provide the Developer with a written receipt, showing that the full amount of $79,425.00 was paid to the City; and WHEREAS, the parties further agree that all future road mitigation fees corresponding to building permits received from the City of Bremerton must also be paid to the City of Port Orchard; and WHEREAS, the parties desire to enter into this First Amendment to the Development Agreement in order to establish this new method for payment of road mitigation fees directly to the City of Port Orchard; and WHEREAS, the Port Orchard City Council provided public notice and held a public hearing on this First Amendment to the Development Agreement on , 2015; Now, therefore, the parties hereto agree as follows: GENERAL PROVISIONS Section 1. Substitution of the City of Port Orchard for Kitsap County. The parties acknowledge that as a result of the Assignment of Development Agreement executed between the City of Port Orchard and Kitsap County on August 25, 2014, all references FIRST AMENDMENT to the Development Agreement Bayside Plat Page 2 of 6 Resolution No. 007-15 Exhibit A to "Kitsap County" in the Development Agreement are hereby stricken and replaced with "the City of Port Orchard." Section 2. Amendment of Section 3 of the Development Agreement. Section 3 of the Development Agreement is hereby amended to read as follows: 3. Mitigation Fee Payment Schedule for Bayside Plat. Bayside agrees to pay the Mitigation Fee described in of Section 2 to imp Gou -the City of Port Orchard as follows: a. The building mifigation fee for- eaeh let shall be paid into a single eser-ew aeeeunt at Bank of Amefiea prior- to the issidanee of the asseei4ed building permit by the City of Brefne4en. Bayside shall Br-efneAea. b. Kitsap Geuf4y may withdraw monies deposited to Prior to the issuance of a building permit for any residence in the Bayside Plat, Bayside shall deposit the Mitigation Fee described in Section 2 with the City of Port Orchard, at the address and to the attention of the person identified in Section 7 herein. Section 4. Amendment of Section 4 to the Development Agreement. Section 4 of the Development Agreement shall be amended to read as follows: 4. Building Applications. At the same time Bayside, or its successor, agent or assigns, applies to the City of Bremerton for a building permit within the Bayside Plat, Bayside, or its successor, agent or assigns, will also submit a copy of the Building Permit application to the City of Port Orchard at the address and to the attention of the person identified in Section 7 herein. NOT.. WIN. •i 'T , _ . Section 5. Amendment of Section 6 to the Development Agreement. The parties acknowledge that neither Kitsap County nor the City of Port Orchard is required to FIRST AMENDMENT to the Development Agreement Bayside Plat Page 3 of 6 Resolution No. 007-15 Exhibit A perform under Section 6 to the Development Agreement and that Section 6 is hereby stricken in its entirety. Section 6. All Other Provisions of Development Agreement to Apply. This First Amendment only amends the portions of the Development Agreement identified in Sections 1 through 5 herein, and the parties agree that all other provisions of the Development Agreement shall remain in full effect and validity. Section 7. Notice and Payment of Fees. Any notice to be given to the parties under this Agreement and/or the payment of fees by the Developer to the City, shall be to the parties at the addresses set forth below: City of Port Orchard Attn: Nicholas Bond 216 Prospect Street Port Orchard, WA 98366 Freestone Bayside LLC Attn: Malcolm Griffin Freestone Companies 6820 20`h St. E Suite A Fife, WA 98424 Section 8. Covenants Runniniz with the Land. The conditions and covenants set forth in this First Amendment to the Development Agreement are incorporated herein, and shall run with the land. The benefits and burdens of this First Amendment to the Development Agreement shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this First Amendment to the Development Agreement and the Development Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this First Amendment and the Development Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: FIRST AMENDMENT to the Development Agreement Bayside Plat Page 4 of 6 Resolution No. 007-15 Exhibit A CITY OF PORT ORCHARD: By: Timothy 6. Matthes Its: Mayor Date: ATTEST: B y: B and mearson, City Clerk APPROVED AS TO FORM: By: Carol A. Morris, Interim City Attorney STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP FRI+.'ES'CON .+.; BAYSIDE I.LC rvveo OW? to /sW-. �►�•�s � . By: 0e _ & - Print Name: Its: Managing Member Date: plc, FfIfL On this day personally appeared before me Timothy C. Matthes to me known to be the Mayor of the City of Port Orchard, the municipal corporation described in and that executed the within and foregoing instrument, and acknowledged that he signed said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument on behalf of said municipal corporation. GIVEN under my hand and official seal this at day of 2015. FIRST AMENDMENT to the Development Agreement Bayside Plat Page 5 of 6 ATTEST: Clerk APPR7 S TO FOR By: C roI A. w4ris, Interim City Attorney i STATE OF WASIINGTON i )Ss' i COUNTY OF KITSAP On this day personally.appeart d before me Timothy C; Matthes tome known to be the Mayor of the City of 'Port Orchard; the municipal corpo ation described in and that executed the within and foregoing instrument, an& acknowledged that he signed said: nstriimetlt, to be, the free and voluntaryact and . deed of aid municipal corporation, for the. uses and purposes, therein mentioned, and on oath state .that he was authorized tQ execute said instrument on behalf of said municipal corporation. GIVEN under my hand and of icial seal this day of 2015. FIRST AMENDMENT to the Dev.elopment.Agreement Bayside Plat Page,5 of 6 Resolution No. 007-15 Exhibit A E Ft OyO'�. N9P ...15 20 ..: �,1F INAS�`�G��\ fulls\ STATE OF WASHINGTON ) ss. COUNTY OF KITSAP ) OTARY PUBLIC in and for the State o ashin ton, residing at � � r�-�r�r� , Lon Print Name:. cai-n C My appointment expires: On this day personally appeared before me 4n an to me known to be the Managing Member of FREESTONE BAYSI.DE LL the corporation described in and that executed the within and foregoing instrument, and acknowledged that he signed 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 on behalf of said corporation. GIVEN under my hand and official seal this day of Jt/rw 2015. �nT � NOTARY PUBLI in and for the State of Washing on, rest mg at Print ame: My appointment expires: FIRST AMENDMENT to the Development Agreement Bayside Plat Page 6 of 6