12-140.01 Spokane County Library District: Real Estate Acqusition `2--,11o. 1
2017 ADDENDUM TO THE INTERLOCAL AGREEMENT FOR ACQUISTION OF REAL
ESTATE BETWEEN THE CITY OF SPOKANE VALLEY AND THE SPOKANE COUNTY
LIBRARY DISTRICT
WHEREAS, the City of Spokane Valley (the City) and Spokane County Library District
(the Library District) (referred to jointly as the Parties) executed an interlocal agreement (the
Agreement) on September 27, 2012. The purpose of the Agreement was for the City to sell the
District certain real property located on the north side of Sprague Avenue, between Balfour Road
and Herald Road,with the intent that the Library District would design and construct a new library
facility that would serve as the primary library facility in the City; and
WHEREAS, pursuant to the Agreement, the City sold 2.5 acres to the Library District,
Spokane County parcel number 45174.9063 (the Site), with the transaction closing on or about
October 31, 2012. The Parties agreed to an additional transfer of property pursuant to the
Agreement, which was dependent upon the needs of the Library District as determined in a
collaborative joint needs analysis/conceptual site plan prepared by the Parties. The total property
acquired by the Library District from the City was 2.82 acres,with the total closing price,including
land and apportioned costs, of$839,285.10; and
WHEREAS, Section 10 of the Agreement contains a requirement that "in the event that
the Library District has not, within five years following the Closing, secured voter approval of a
construction bond for the library building and ancillary improvements in such amount as shall be
determined necessary by the Library District,that thereafter the Library District shall reconvey all
of the Property back to the City at the same price paid by the Library District to the City."
WHEREAS, the conceptual site plan process took place largely in 2013, and included
significant technical input and analysis by the Parties, consultants, and the public. This extensive
public participation has been integral to the plan to develop the Site as the main library facility in
the City, including identifying the functions desired and needed by the community in a modern
library facility; and
WHEREAS, in April 2014, the Library District put two ballot measures before the
electorate in the greater Spokane Valley region. The first measure was whether to create a capital
facilities area which was a subset of the entire Library District, and which would primarily benefit
from the proposed improvements. The second measure was whether to approve construction of
the new library at the Site, a second but smaller library facility near the intersection of Sprague
Avenue and Conklin Road, as well as improvements at the Argonne Branch, located at Argonne
Road and Upriver Drive. The creation of the capital facility area,which required a simple majority,
was approved. The vote to approve construction of the facilities, which required at least a 60%
approval, failed, although it received 54.84% approval; and
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WHEREAS, in August 2015, the Library District again requested that the voters in the
capital facility area approve the proposed construction. The capital facility area is legally valid for
up to two election attempts, so did not need to be approved as part of the 2016 effort. This effort
received 57.57% approval, falling just short of being successful; and
WHEREAS,the Parties mutually recognize the importance of having a modern,functional
library facility to support the educational needs of the citizens of the City, including children and
adults; and
WHEREAS, the Parties mutually recognize the economic development benefits of co-
locating the new library facility with the City's proposed renovations of Balfour Park, which are
also adjacent to the City's new City Hall facility. The Parties assert these combined improvements
will act as a magnet for private development in the area; and
WHEREAS, the Parties prepared a Joint Site Plan which identified certain right-of-way
improvements or site-wide improvements (collectively referred to as "frontage improvements")
that are necessary for the respective proposed projects on the site. Said improvements will benefit
the multiple uses planned for the combined site. The Parties wish to work together to provide the
necessary site improvements while keeping the cost manageable for the citizens; and
WHEREAS, the Parties agree that a continuing and enhanced partnership between the
Parties is crucial for success in jointly developing the Site.
NOW THEREFORE, the Parties agree to make the following amendments to the
Agreement:
6. Joint Site Development Plan.
A. An approximately 25,000 square foot building on one floor,that will serve as a
destination facility with programming intended to draw participants from the
Spokane County region. The ultimate size of the facility shall be determined
following appropriate public engagement.
C. Site requirements:
• Building footprint of approximately 25,000 square feet.
The Parties agree to contribute the following amounts to the frontage and/or site
improvements on the Library Site which have been identified in the Joint Site Development
Plan. The Library District shall contribute its investment of$1.3 million to purchase the
two library construction sites, including the Site, as well as the second library site near
Sprague Avenue and Conklin Road, and will no longer seek reimbursement for the land
costs through a subsequent bond. This Library District obligation is separate from and in
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addition to any amount sought in bond proceeds, and represents the actual expenditure
amounts to purchase both sites. The City shall contribute $1.3 million in frontage and/or
joint site improvements on the Library Site. This amount includes the $839,285.10 paid
by the Library District to the City for the Site. This City obligation is separate from and in
addition to any frontage or site improvements the City would already be responsible for in
developing and constructing Balfour Park. The intent of these contributions by the Parties
is to accomplish the mutual goals set forth in the recitals to this Addendum, above, and to
reduce the amount of bond proceeds that would be requested from the voters. Exhibit B,
previously attached to this Agreement is deleted.
The Parties shall, within 45 days of validation of the passage of ballot measure approving
construction bonds, form a joint site development project team.
10. Re-Purchase by City. In order to construct a library building and ancillary
improvements on the portion of the Property acquired by the Library District, it is
anticipated that the Library District will need to secure voter approval of a bond levy
covering the Library Site and the Sprague and Conklin site projects. Without voter
approval of such bond, the Library District will not be in a position to develop its portion
of the Property. The Parties agree that in the event that the Library District has not, by
October 31, 2022, secured voter approval of a construction bond for the library building
and ancillary improvements in such amount as shall be determined necessary by the Library
District, that thereafter the Library District shall reconvey all of the Property back to the
City at the same price paid by the Library District to the City. The Parties may, by mutual
written agreement after October 31, 2021, extend the timeframe for reconveyance by an
additional two years, to October 31, 2024. Such payment shall be paid all in cash. The
Library District, in such event, shall convey title to the City with the same type of
instrument as it received the Property from the City, and from that point in time this
agreement would be considered void. In the event the construction bond is approved, the
Library District shall commence construction within one year of the date of voter approval
of the construction bond.
12. Use of Property. The City agrees that its portion of the Property will be dedicated
to public use and will not be sold to any third party. A deed restriction shall be recorded
by the Library District within a reasonable amount of time from voter approval of a
construction bond that would limit the use of the Site to a library facility for a minimum of
50 years from date of opening. The Library District agrees that its portion of the Property
will be developed into a public library facility provided that funding for such project is
secured as provided above in Section 10.
The City, at its expense, will be allowed to use the entire site for civic purposes until the
District provides the City with a notice that the District will commence construction
activities in 30 days. The City agrees to hold harmless and indemnify the District from and
against all claims, causes of action, and damages arising out of the City's use of the
Property for any such civic purposes.
This Addendum shall become effective upon the date of the signature of the last party
signing this document.
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CITY OF SPOKANE VALLEY SPOKANE COUNTY
4A/L
LIBRARY DISTRICTI 7`,/ � ^.,moi (o/ZS !x017
Mark Calhoun, City Manager Patrick Roewe, Executive Director
Approved . . . orm: Approved as to form:
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Officthe i ttorney 'a McMu en, Counsel for SCLD
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