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2023, 06-20 study sessionMINUTES City of Spokane Valley City Council Study Session Tuesday, June 20, 2023 Mayor Haley called the meeting to order at 6 p.m. The meeting was held in person by Council and staff` in the Great Roorn at Centerl"lace, 2426 Jul Discovery Place, Spokane Valley, and also remotely via Zoom ineeting. Attendance: CoLincilmembers Staff' Pain Haley, Mayor John Hohman, City Manager Rod Higgins, Deputy Mayor Erik Lamb, Deputy City Manager Torn Hattenburg, Councilmember Tony Beattie, Sr. Deputy City Attorney Brandt Peetz, COUnCilinernber Bill Helbig, Community & PW Director Laura Padden, COLIncilmernber ChelsicTaylor, Finance Director Ben Wick, Council ill onn ber John Bottelli, Parks & Rec Director Artie Woodard, Councilillernber [via zoom] Gloria Mantz, City Engineer Mike Basinger, Economic Dev, Director Others in attendance: Adam Jackson, Engineering Manager Kelly Konkright, Attorney Lesh Brassfield, Comm, Marketing Officer Matt Reeves, CIS Analyst John Whitehead, Hinnan Resources Director Emily Estes -Cross, Public Information Officer Virginia Clough, Legislative Policy Coordinator Greg Bingarnan, IT Specialist Christine Bainbridge, Outgoing City Clerk Marci Patterson, Newly Appointed City Clerk ROLL CALL: City Clerk Patterson called roll.; all CoLuicilinembers, were present. APPROVAL OF AMENII)ED AGENDA It was inoved by Dej)ul)) 1l&7))or 11iggins, seconcled and unan into usly agreed to qI)I)rove the amenclecl ogenda. GENERAL PUBLIC COMA4ENT OPPOWl'UNITY: Afler Mayor Haley explained tile process, she invited public comment. Ms. Barb HoAqW,Spokane -Valley [via zoom]: spoke of the need for more police cameras, especially ill areas of high crime. Mr, Dart Allison, Sppkane—Vallcy: reported that Mr. Jack Pring died last night. Mayor Haley asked for a moment of silence, in remembrance of Mr. Pring. Mr, jack-Calloy: said lie is with tile Southwest Mountain States Regional Counsel of Carpenters, and mentioned that in 2021 the construction company I...aRiviere, Tile, was found to have misclassified numerous employees and to owe more than $34,000 in wages, and that the company was debarred from public works projects in Washington state for two years; that in January, 2022,'Foni LaRiviere found a business partner and opened five new companies; and said lie has three companies working for the City of Spokane Valley, oil a Sullivan Road project; said there is apparently a loophole which allows the company to work on city projects, and lie requested the City Manager, City Attorney, and Council to drall an ordinance to close that loophole. ACTION ITEMS: 1. Public Heariim Six -Year "11'ransliortation, Improvenient Program (TIP) .-- Adam Jackson Mayor Haley opened the public hearing at 6:06 p.tll. Mr. Jackson explained that we are required to hold a public hearing and adopt a comprehensive transportation program for the ensuing six calendar years, which plan Must then be: submitted to the Washington State Department of Transportation by June 30 of each year. Mr. Jackson briefly went over the 41 proJects, included in the'rip, including eight projects for 2024 closeout; four bridge and grade separation projects; eleven intersection improvement pro.jects; one local access street COLHICH Meeting Minutes, StUdy Session: 06-20-2023 Nage I of 4 Approved by Council: 07-11-2023 pro.ject; one arterial preservation project, seven other reconstruction or preservation projects; and nine safety, sidewalk, trail and storrnwatei:prqjccts, Mayor Haley invited public comment; no comments were offered and Mayor Haley closed the public hearing at, 6:18 pm. 2. Resolution 23-007 AdoRtinp-- Six-Year'1111 - Adam Jackson It was moved by Depiq AlItiYor fliggins, seconded and -unaniniously agreed to al-q)rove Resoluflon 23-007 adopting the 2024-2029 Six Year 771' cis presented. 3. Resolution 23-008 Amending Planning, Commission Rules of Procedure - Tony Beattie It was moied by Dej)ulyMayor I-liggins and seconded to adopt Resolution 23-008 adopting the Revised Planning Commission Rules of Procedure to tenywrarily relocate regular ineetings to CenterPloce -Regional Event C"enter, 2426 N Discoiery Place, Spokane Valley, Washington. Attorney Konkright explained that, as Council did for Council meetings, this will temporarily change the Planning Commissio 11 meeting location to Centerl' facewhich will alleviate the need for calling every njecting a special meeting, and enable amending agendas if the need arises. Mayor Haley invited public comment; no comments were offered. 1,'ofe by acclamation.- inivor,- unanimous. Opposed- none, Motion carried. 4. Motion Consideration: Barker Road/BNSF Change QLdcrs - Rob Lochmiller It was movedby DePitly Mayorl-liggins andsecondedto authorize the City Manager I.ofinalize andexecute Change Order Numbers 22, 31, 44, 47, 49, 59, 64 and 67 ii4th Mt%Y,f piney Conywiny in the conount of $90,353.24, $ 77,053.3 7, $0,18L 73, $3,388,93, $5,317.22, $5,369. 06, $4,897.36, and $369.48 resIxelively, City Engineer Mantz mentioned the updated spreadsheet showing the change orders; that the original contract was about $11.6 million and this revised contract amount is about $13.4 million. Mayor Haley invited public comment; no coniments, were offered. [Able ky acclamation.- in favor.` unaninvous. Qpjjosed: none. Motion carried. 5. Motion Consideration: Tourism Promotion Area/Sp.okanc Sports - Mike Basinger' It was iiioie(,11)yDelizit.)iMci,),or.fliggin,s and seconded lo qpj,)rov)e that the City Manager or (designee execute a contract ivith ,51,)okane Sports,16i, $300,000 toprovideq)orts reerttitaient cii?dt)7arlcelirig,sei°i)icesfot•2023, After a brief overview from Mr, Basinger, Mayor Haley invited public comments. Ms., Rose Noble, Visit 5p.qkane CEO: said they too]( forward to the support and to the City working with Spokane Sports. Mr. Dan A-M-S-0-ti-JiaA Iac-LY—Alems: said lie was under the assumption that after the previous meeting for the $300:,000, that this is headquartered in the HUB which is in Liberty Lake and said he wondered how this would work for our city going to Liberty Lake to Set Lip a new program, Mr Grant Guinn owner of'Fl-Lib Iton Hotel: said whether events happen at the HUB, Plantes Ferry or downtown Spokane, said the room nights from those facilities often times generate revenue for hotels here in Spokane Valley so it is important to support these types of sporting requests in the partnership with Spokane Sports, There were no further public, comments. Vote by acclamation: infiavor,' unanimous. 0])I,)osed.- none. Motion carried 5a. Motion Considerafica: Sp��,, jj,_ anlit W�',ilcr 11,arl< - john Bottelli ...... . .... . . ....... . ..... It was inoved by Deputy Mayor Higgins and seconded to authorize the CityAlfanager to (1) finalize and execute the Lease TerminafiOnfor the current lease.for use q ,f a portion (?I' Palley Mission Park; and (2) finalize and execute, the Lease Agreement n4th F W. Holdings, LLC, dha SPlashdown F omily TV Wer Park for use oj'the same premises to operate a ivater park, and any related documents to accony)lish the same. Parks and Recreation Director Bottelli gave a quick background of our agreements with the previous owners of the water part(, which is a private business located on City property; that this agreement is similar to those previous agrecinents, with some modifications, such as annual lease fees and renewal options, all as set out in the Request for Council Action form, Mayor Haley invited public comment; no comments were offered. Vote lay acclainatiow inftivor.. unanimous. 01)1)osed.- none. 1lotion carried. Council Meeting Minutes, Study Session: 06-20-2023 Page 2 of 4 Approved by Couacil: 07-11-2023 NON -ACTION ITEMS: 6. Comrnuni Development Block Grant CDBG U date Jolin Hohman Erik Lamb Gloria Mantz Ms. Mantz gave background on the CDBG and the City's status since 2005 for participating in the Urban County Consortium, in that we have deferred entitlement status; she noted the requalification period is 2024-2026 and we have four options to consider; that for those options, staff is evaluating the impacts for the City and the region; and that the deadline to notify HUD and the County of our selection is July 7. She went over the CDBG and HOME allocation amounts for our city, as well as those for the County and the Emergency Services Grant, which this is the first year of eligibility, adding that we don't know if the County would qualify for those grant funds if the City accepted entitlement. Ms. Mantz then went through each option, what it would provide, the City's responsibility, and what must be in place for each option. She again noted the timeline for action to notify HUD and the County, is July 7 to accept entitlement status and receive CDBG funds directly frorn HOME, and that an agreement must be executed by August 4, 2024, for a HOME consortium. Discussion ensued regarding the options, deadlines and possible outcomes for each, noting there was consensus that option three, to defer entitlement status and participate through the State CDBG program, would not be beneficial for the City. There was also discussion about how all this plays into the regional homeless collaborative effort, and risks for our City and risks for the County, depending on the option chosen. Mr. Hohman stated that the main issue with the County is they struggle to determine if they are in or out of the regional group. He also noted that we might need to review our outside agency process and shift the focus to more of community needs. Concerning option 2, accept entitlement status and enter into a joint agreement with Spokane County, it was noted that the Board of County Commissioners has final authority on how funding is spent. Councilmember Woodard sand he prefers we stay with option 4, which is defer entitlement status and participate as part of the Urban County with Spokane County; said the deadlines are quicky approaching and if we wait to see what will occur with the regional plan, we could be worse off if we don't do this correctly. Councilmember Peetz said she would like us to ask the County about the voting privilege for our own projects, and Mr. Lamb said we can vote on our projects moving forward with the new interlocal. It was also noted that the HHAA (Homeless Housing and Assistance Act) funds are not tied to CDBG, HOME, or ESG and that staff believes the HHAA funds should be separated from the CDBG County Consortium agreement. Mr. Hohman explained that staff are analyzing impacts and costs to receive and administer HHAA funds and will provide information at a later date, separate from the CDBG discussion. Councilmembers Wick and Peetz agreed they want to keep the set -aside, and Councilmember Hattenburg said he favors option 4 as that appears to have positive points and fewer changes. Mayor Haley said that she is concerned about the options as some of the discussions are not in our control; that the County has indicated it can take and control all funding. Councilmember Wick asked what would happen if Council did nothing; and Mr. Hohman said tonight is just for discussion, and that this will come back to Council next week for possible action. Mayor Haley called for a recess at 7:41 p.m.; she reconvened the meeting at 7:51 p.m. 7. Potential Grant Opportunity: Transportation Improvement Board — Adarn Jackson Mr. Jackson explained that the Washington State TIB issued a recent call for projects for the Urban Arterial Program (UAP), and the Active Transportation Program (ATP); that the UAP has historically funded street - related projects, and the ATP replaces TIB's sidewalk program. He mentioned the critical program details for the funds and award ranges, and noted the two projects for UAP consideration, and the one project for the ATP. After brief discussion about possible placement of pedestrian crossings, there was Council consensus that staff proceed with the proposed projects, with a motion consideration coming back to Council at the July 11 meeting. 8. Launch of New City Website -- Lesli Brassfield Communications and Marketing Officer Brassfield reported that the City has used Qsend for hosting the City's website since 2009, and in early 2022, the Economic Development Department began planning to Council Meeting Minutes, Study Session: 06-20-2023 .Page 3 of 4 Approved by Council: 07-11-2023 create a new website to improve city communications -,in(] public engagement, She gave a brief background on the process to choose a new company ror hosting, and of the many features the new website will have, and that we will have a new domain and therefore new e-rnail addresses; she noted that cniails received from the spokanevalley.org extension will be forwarded automatically to the new email address for several months. She said the new website goes live tomorrow, 9, Interlocal A i-reement with SDokane County for Pictol-netrY-L"I—agP.YY-.-Mil(—e B4 qtt Reeves Mr. Reeves explained about our need for high resolution aerial imagery and of the use of that technology by many departments; that Spokane County has historically been our provider of that aerial imagery and it has been determined there is a need to re-establish an agreement since the parameters within the, previous interlocal agreement have changed significantly, such as it contained references to groups that are no longer involved in the agreement, He noted the draft agreement has been reviewed by Spokane County and Spokane Valley's legal departments and both Eire satisfied with the verbiage as written,There was Council consensus to place the interlocal agreement on a future agenda for a motion consideration. 10. Federal ProCUrernent Code - Chelsic 'I jor Finance Director Taylor explained that during the City's most recent audit of Federal Awards, the auditors stated that the City' S Procurement polices did not meet certain federal regulations even though the City formally procured public works projects as required and no issues were found with our procurement methods. She further explained that staff have been working on a draft ordinance to address the additional procurement policies in those audit reconimendations, ']'here was Council consensus for staff to move forward as suggested with a draft ordinance for a first reading. I 1. Advance -�Aeiicl�a-Mqyor I laley There were no Suggested changes to the Advance Agenda. COUNCIL COMMENTS There were no further Council comments, CITY MANAGER COMMENTS Mr. Holtman gave a brief update on the City Hall construction activities, and said the company is making good progress. It was n7oved by Dej?uly MaYoi- .1figgins, seconded and unaniniously qgreed to adjourn. The meeting adjourned at 8: 19 p.m. A T 'S"f: terson, City Clerk Pam flaley, Mayo Council Meeting Minutes, Study Session: 06-20-2023 Approved by Council: 07-11-2023 Page 4 oN 11cm 5�,i 1 gm# I I ugg a fal anm I 111 ffiffi -Meeting Date: June 20, 20i23 Department Director Approval: JR Check all that apply: ❑ consent ❑ old business Z new business ❑I public hearing 0 information n admin. report [:1 pending legislation ❑ executive session AGENDA ITEM TITLE: Motion Consideration: Lease Agreement with F.W. Holdings, LLC., d,b,a. Splashdown Family Water Park GOVERNING LEGISLATION: RCW 35A. 1 1,02Q chapter 3,49 SVMC PREVIOUS COUNCIL, ACTION TAKEN: Splash -Down Concessions, Inc. previously leased a portion of the Valley Mission Park since 1983 for the purposes of operating a water slide and concession business (Splashdown). In May 2009, the City granted a new 10-year lease to, Splash -Down Concessions, Inc., which had come under new ownership in 2005. The City executed an amendment to the new lease in May 2012, but ultimately terminated the lease agreement with Splash -Down Concessions, Inc., in 2018. Then, following a change in ownership of the corporation, which was renamed "New Splash -Down Concessions, Inc,", the City executed a new lease agreement on June 5, 2018 for the continued operation of the water park. In each of the years 2020, 2021, and 2022 however, the City granted a suspension of' the annual lease payment because the water park had been unable to operate due to the Covid-1 9 pandemic. BACKGROUND: Upon incorporation, the City became the owner of Valley Mission Park, and also became the lessor to Splashdown. The first agreement had been entered into between Spokane County and Splash -Down Concessions, Inc., in 1982, and then renewed for another 10 years in 2002, prior to incorporation. The owner in 2003 was a small, closely held corporation, and the City's primary contact was shareholder Bill Bleasner. The Bleasner group sold the corporation to Goeff and Melissa Kellogg in 2005, who operated Splashdown through 2017. In 2009 the City granted a new lease agreement which simplified the payment terms as an annual flat fee. In 2012 the City granted an amendment to the new lease, reducing the annual fee from $43,000 to $20,000 due to changes in local market conditions which neither party had anticipated. The new owners continued to struggle to make their payments Linder the new lease however, and in 2018 the City terminated the lease agreement. The Bleasner group then again became the owner of the corporation in 2018 and renamed the entity "New Splash -Down Concessions, Inc." after which the City entered into a new lease agreement with them for their ongoing operation of the water park. The annival lease payment for the new agreement was established at $15,,000 plus applicable leasehold excise taxes. Fast -forward to the spring of 2020„ and the onset of the Covid-1 9 pandemic, Splashdown was not able to open in 2020 or 2021 as a consequence of emergency health orders issued by Governor Inslee, As such, Council agreed not to require Splashdown, to open and further waived the lease payments, for 2020 and 2021, resulting in the loss of $,30,000 of lease revenue. Splashdown was not able to open in 2022 due to several major factors. As a consequence of being closed since 2019, the water park had declined in condition and there were numerous instances of vandalism resulting in substantial damage to the facilities. Lastly, due to the death of the managing owner, in 2020, there was uncertainty amongst the remaining owners on how to proceed. The remaining owners again requested an amendment to the lease agreement to, Hein 5oi allow them to remain closed and to waive the lease payment for in 2022 while they actively attempted to sell the business,, which, included the slides and other personal property attachments on, the premises. As such, Council' again agreed to not require Splashdown to open and waived the lease payment for 2022, resulting in the loss of an additional $15,000, in lease revenue. The structural improvements constructed on the leased portion of Valley Mission Park have now been purchased by a new entity, F.W. Holdings, LLC, which is a Limited Liability Corporation owned and operated by Brandin Olson, a resident of Spokane Valley, Mr. Olson is committed to rejuvenating the facility and re -opening as "Splashdown Family Water Park" in 2023 if possible. Staff has prepared a draft lease agreement that updates some boiler -plate language and has primarily the same terms as the prior agreement except for the following items: A scrivener's error was identified in the legal description of the Leased Premises and corrected in the draft lease agreement and a map depicting the Premises has been added to the document as Exhibit A. - In recognition of the capital and resources the new owner is investing in the improvements on the leased property to make them suitable for providing water park services to the public:, the lease fees for the first four years are discounted as follows: Per the draft lease, Splashdown shall pay to the City annual lease fees in the following amounts: $1,0010 for the remainder of year 2023, $3,000, for year 2024, $7,000 for year 2025, $10,000 for year 2026, $15,000 for year 2027, and $15,000 for year 2028, plus applicable leasehold excise tax. - The renewal option for a second 5-year term requires renegotiation of the lease fees. - The operator may request written permission to offer services beyond those ancillary and related to recreational water slide services. - The operator may request written permission to operate at times of the year when water service has been shut off to Valley Mission Park provided such operation does not damage City property or facilities, - References as Exhibit B letter from Spokane County regarding Conditional Exemption from Requirement to Connect to the Public Sewer, November 13, 2019, OPTIONS: (1) Move to authorize the City Manager to finalize and execute the Lease Agreement as drafted or amended; or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: I move we authorize the City Manager to (1) finalize and execute the Lease Termination for the current lease for use of a portion of Valley Mission Park; and (2) finalize and execute the Lease Agreement with F.W. Holdings:, LLC, d.b.a. Splashdown Family Water Park for use of the same premises to, operate a water park, and any related documents to accomplish the same. BUDGET/FINANCIAL IMPACTS: Generate $1,000 in 2023, $3,000 in 2024,1$7,000 in 20,25, $10,000 in 2026, and $15,000 in 2027 and 2028. STAFF CONTACT: John Bottelli, Parks & Recreation Director ATTACHMENTS: Lease Termination; Proposed Lease Agreement LEASE TERMINATION AGREEMENT THIS LEASE TERMINATION AGREEMENT (this "Agreement") is made and entered into as of June 20, 2023 (the "Termination Date"), by and between the City of Spokane Valley, a Washington municipality ("Landlord"), and New Splash -Down Concessions, Inc., a Washington corporation ("Tenant"), under the following circumstances: A. Landlord and Tenant are parties to that certain Lease Agreement — New Splash -Down Concessions, Inc., attached hereto as Exhibit A (the "Lease"), whereby Landlord leased to Tenant that portion of Valley Mission Paris identified therein (the "Premises") for the purpose of operating a water park thereon; B. In May of 2023, Tenant transferred to F.W. Holdings, LLC, all ownership rights, title and interest that Tenant had in the existing structural improvements situated on the Premises; C. Landlord and Tenant acknowledge and agree that it is in their best interests to immediately terminate the Lease; and D. Landlord and Tenant mutually desire to enter into this Agreement to cancel and terminate the Lease upon the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the premises, the mutual covenants contained herein, and other good, valuable and adequate consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Recitals. The recitals set forth above are hereby incorporated by this reference. The pal -ties agree to and acknowledge each of the recitals of fact and each of those statements of agreement that are found and set forth in the recitals. 2. Termination of Lease. Landlord and Tenant stipulate that the Lease is and shall be deemed cancelled as of June 20, 2023. 3. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the termination of the Lease and supersedes all prior oral or written negotiations and communications by or on behalf of the parties, and no variance or modification hereof shall be valid and enforceable, except by supplemental agreement in writing, executed and approved in the same manner as this Agreement. 4. Governing _Law. This Agreement shall be governed by and construed in accordance with the laws of the state in which the Premises are located. 5. Conflict. In the event of any conflict between the terms of the Lease and the terms of this Agreement, the terms of this Agreement shall control. 6. Defined Terns. Defined terms used in this Agreement not defined herein shall have the meaning set forth in the Lease. 7. Counterparts, Signatures. This Agreement may be executed in counterparts. This Agreement may also be executed and delivered by facsimile signature, PDF or any electronic signature complying with the U.S. federal ESIGN Act of 2000 (e.g., www.docusign.com). [signature page follows] IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the Termination Date. LANDLORD: CITY OF SPOKANE VALLEY, a Washington municipality By: Name: John Hohman Its: City Manager TENANT: NEW SPLASH -DOWN CONCESSIONS, INC., a Washington corporation By:_ Name Its: Heidi Shutts Director Date Date 2 Exhibit A l g- f V q LEASE AGREEMENT — NEW SPLASH -DOWN CONCESSIONS, INC. This Agreement is between the City of Spokane Valley, a municipality of the State of Washington, with an address of 10210 East Sprague Avenue, Spokane Valley, Washington, 99206, hereinafter referred to as the "City," and New Splash -Down Concessions, Inc. having offices with an address of 2206 North Pines, Spokane Valley, Washington, 99206, hereinafter referred to as "Splashdown," jointly, hereinafter referred to along with the City as the "Parties." WITNESSETH: WHEREAS, pursuant to RCW 35A.11.020, a city may lease real property, buildings, or facilities in the rendering of recreational services; and WHEREAS, the City is the owner of Valley Mission Park, located at 11123 East Mission, Spokane Valley, Washington; and WHEREAS, the City (and Spokane County prior to that) previously leased a portion of Valley Mission Park to Splashdown for the purpose of operating a water slide facility for use by the public; and WHEREAS, the City issued a notice of termination of the prior Lease Agreement (Agreement) to the prior owners of Splashdown on May 8, 2018 for material breach of the Agreement principally relating to non-payment of the lease amounts; and WHEREAS, the new owners of Splashdown is a group of investors led by William and Ruth Bleasner and the registered agent is John Montgomery, 2206 North Pines, Spokane Valley; and WHEREAS, Splashdown, under its new ownership, desires to enter into a new lease agreement with the City under the sarne terms that have been historically agreed to; and WHEREAS, the City desires to have Splashdown continue to provide recreational amenities to the residents of the City and has no other current use for the property at issue. NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties mutually agree as follows: Section 1. Sub iect and Purpose. - The City leases to Splashdown, subject to the terms and conditions herein contained, certain real property in Valley Mission Park located at 11123 East Mission, Spokane Valley, Washington, and more particularly described as follows: That portion of Blocks 72, 75, 76 lying South of State Highway and Blocks 78, 79, 81 and 82 all in Pinecroft First Addition according to plat hereof recorded in Book "M" of Plats, Page 35, Spokane County, Washington. Together with that portion of vacated Johnson Street adjoining said Blocks. Except the West 110 feet of said Blocks 72, 75, 78 and 81; also, except the East 346.7 feet of said Blocks 76, 79 and 82; also except that portion of said Block 82 and vacated Johnson Street included within the existing tennis courts. Containing 2.56 acres more or less. Water Slide Agreement — New Splash -Down Concessions, Inc. Page 1 of 9 This property shall hereinafter be referred to as the "Premises" for the purpose of constructing and operating only a water slide or slides and related landscaping uses. Splashdown is further permitted to sell food, soft drinks, active wear, and souvenirs on the Premises consistent with operation of the water slide. Splashdown and its clients are permitted to use the paved parking lots immediately adjacent to Mission Road (north and south) for purposes directly related to the operation and normal use of the waterpark, and subject to any applicable provisions in the Spokane Valley Municipal Code (SVMC). The City reserves the right to designate spaces for specific uses which may place limitations on use by Splashdown. Splashdown is not permitted to drive outside of the parking lot area, such as on the grass or sidewalks, without specific written permission from the Parks Director. Section 2. Term. - The initial term of this Agreement shall be for 67 months, commencing on June 1, 2018, and terminating on December 31, 2023. This Agreement may be extended for an additional five years, which would run from January 1, 2024 to December 31, 2028. The option shall be considered and determined no later than November 1, 2023. Section 3. Construction of Slide Facilities. A. Splashdown, at its sole expense, shall construct and maintain upon the Premises a water slide or slides, together with appropriate fencing, support structures, landscaping, splash pool, and all related facilities and equipment. If at any time during the life of this Agreement the Splashdown fails to use the Premises for the purpose of construction and operation of a water slide or slides, without first obtaining permission in writing from the City, this Agreement may at the City's option, be terminated. B. If Splashdown desires to add additional flumes, apparatus, or other recreational items or facilities other than those constructed and in use at the time this Agreement is executed, Splashdown shall first obtain written permission for the City at least 90 days prior to the start of construction, and obtain all necessary permits related thereto. Section 4. Operation of Slide. A. Splashdown may only utilize the premises for the operation of a business providing recreational water slide services for public use during the last week of May, the months of June, July, and August, and the first week of September; provided, however, that hours of operation shall comply with any applicable SVMC provisions. B. Splashdown shall be responsible for garbage, electricity, water, natural gas, sewer, telephone service, and any other public utility of any kind furnished to the Premises during the term of this Agreement, including any extensions. Splashdown shall pay any and all other costs and expenses of every kind whatsoever in connection with the use, operation, and maintenance of the Premises and all activities conducted thereon, and the City shall have no responsibility of any kind whatsoever for any such costs. C. Any signage shall comply with currently adopted SVMC provisions. D. Splashdown shall not discriminate against any employee or applicant for employment, or patron in violation of federal or Washington State law. Water Slide Agreement -- New Splash -Down Concessions, Inc. Page 2 of 9 Section 5. Fee. - Splashdown shall pay to the City for the initial and renewal terms of this Agreement an annual lease payment of $15,000, plus applicable leasehold excise tax (the annual payment). The annual payment may, at Splashdown's option, be paid in one lump sum payment or, alternatively, in three equal payments. If the annual payment for 2018 is in three equal payments, they shall be physically received by the City no later than 4:00 p.m. on August 5, September 5, and October 5. For subsequent years, if the annual payment is in equal payments, the payments shall be due by 4:00 p.m. on July 5, August 5, and September 5. Section 6. Compliance with Leasehold Excise Tax. A. This Agreement is subject to the "leasehold excise tax" pursuant to chapter 82.29A RCW, as adopted or amended, and shall promptly pay the City all Ieasehold excise tax amounts in addition to the fees set forth in Section 5. The rate is currently 12.84% pursuant to state law, which currently results in a tax of $642 per $5,000 payment, or $1,926 for the annual lease payment of $15,000. This amount may change in the future if chapter 82.29A RCW is amended, and it shall be Splashdown's responsibility to ensure it is paying the correct amount. B. Splashdown agrees to promptly pay when due any other taxes, rates, charges and assessments, special or otherwise and public charges of every kind and nature which may be lawfully imposed or assessed in any way on Splashdown regarding its use of the Premises. Splashdown further agrees to pay promptly when due all applicable taxes imposed on Splashdown as a result of the services provided upon the Premises. C. Splashdown shall comply with and abide by all federal, state, municipal, and other governmental statutes, ordinances, laws and regulations affecting the Premises, the construction, operation and maintenance of the water slide thereon, the improvements thereon, or any activity conducted on or in such Premises. Section 7. Termination. — In addition to all other rights and remedies, which the Parties may have herein or at law, the Parties may terminate this Agreement as follows: By Splashdown: This Agreement may be terminated by Splashdown upon 30 days written notice upon a default by the City in the performance of any terms of this Agreement required to be performed by the City, and the subsequent failure of the City to remedy such default within 30 days after the receipt from Splashdown of written notice to remedy the same; provided, however, that no notice of termination shall have any force or effect if the City shall have remedied the default prior to the expiration of the 30-day period, or if the nature of such default is such that a period in excess of 30 days is necessary in order for the City to cure the default and shall diligently continue its efforts to correct such default. In such event, the City shall have a reasonable amount of time to cure the default. By CITY: This Agreement may be terminated by the City upon 30 days' written notice to Splashdown for the following: A. The failure of Splashdown to make any payments of money as required hereunder after receiving 10 days' written notice of its failure to pay such money. Water Slide Agreement — New Splash -Down Concessions, Inc. Page 3 of 9 B. Abandonment of the Premises by Splashdown and/or the continuance of unauthorized conduct and operation of the business required hereunder for a period of at least five consecutive days. Failure to operate the business as authorized herein would be considered abandonment. Provided, however, that the City agrees that interruptions in the operation of the water slide due to weather conditions or repairs shall not constitute an abandonment of the Premises. C. A default by Splashdown in the performance of any terms, conditions, or covenants of this Agreement, and the failure of Splashdown to remedy such default within 30 days after receipt of written notice to remedy the same. Splashdown may cure any such default to the satisfaction of the City, which shall render the notice of default moot. In such event, Splashdown shall have such time as is reasonably required to cure the default. Section 8. Removal of Improvements. A. In the event of termination of the lease under Section 8, the Parties shall have the following remedies: By Splashdown: In the event of termination by Splashdown, and except as provided herein, Splashdown shall have the right to remove all improvements from the Premises at any time within 120 days after such termination within the hours of 7:00 a.m. and 8:00 p.m. Splashdown shall restore the Premises to its original condition during the same time frame allowed for removal of the structure. By City: In the event of termination by the City or at the end of the term of this Agreement, the City shall have the right for a period of 90 days after termination to purchase the improvements from Splashdown at a price to be mutually agreed upon. In the event the City does not exercise its right to purchase the improvements, Splashdown shall remove the same within 120 days after the expiration of such period and restore the Premises to its original condition during the same time frame. B. In the event of a termination, and Splashdown does not remove the improvements placed upon the Premises by Splashdown within the time frames set forth herein, the City may at its option, (1) on the payment of $1.00 take title to said property; or (2) dismantle, remove and store such property at a location convenient to the City and charge to Splashdown a fee for dismantling, removing, transporting, and storing said property. Section 9. Waste and Nuisance Prohibited. - Splashdown shall not commit, or suffer to be committed, any waste or nuisance on the Premises. Section 10. Sewers. The Parties agree to the following allocation of costs with regard to sewer: A. Sewer Capital Facilities Rate: Splashdown shall be responsible for paying all Sewer Capital Facilities Rate charges (i.e. ERU's) allocable to Splashdown's use of the Premises. a B. Splashdown shall pay all construction costs incurred to connect new service, increase service due to expansion of the water slide facilities, and to maintain sewer service. Water Slide Agreement — New Splash -Down Concessions, Inc. Page 4 of 9 Splashdown shall, at its expense, install an additional water meter(s) to measure the flow of water entering the sewered portion of the Promises. C. Splashdown shall hook up to sewer no later than October 31, 2019, or when the City, as the owner of the property, is notified by Spokane County that hookup is required. D. Splashdown shall pay all monthly sewer charges allocable to Splashdown's use of the Premises. Section 11. Notices. A. All notices, demands, or other writings in this Agreement provided to be given or made or sent or which may be given, or made or sent by either Party hereto to the other, shall be deemed to have been fully given or made or sent when made in writing and deposited in the United States mail, certified, postage pre -paid and return receipt requested, and addressed as follows: To CITY: City of Spokane Valley, Attn: City Manager 10210 East Sprague Avenue Spokane Valley, Washington 99206 To LESSEE: New Splash -Down Concessions, Inc. 2206 North Pines Spokane Valley, Washington 99206 B. The address to which any notice, demand, or any other writing may be given or made or sent to any Party may be changed by at least 30 days' written notice. Section 12. Insurance. Splashdown shall procure and maintain, for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Splashdown's operation and use of the leased Premises. No Limitation. Splashdown's maintenance of insurance as required by the agreement shall not be construed to limit the liability of Splashdown to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance Splashdown shall obtain insurance of the types described below: 1. Commercial General Liahilfty insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The City shall be named as an insured on Splashdown's Commercial General Liability insurance policy using ISO Additional Insured -Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. 2. Pro a insurance shall be written on an all risk basis. B. Minimum Amounts of Insurance Splashdown shall maintain the following insurance limits: Water Slide Agreement — New Splash -Down Concessions, Inc. Page 5 of 9 1. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 2. proppM insurance shall be written covering the full value of Splashdown's property and improvements for their full replacement value with no coinsurance provisions. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance: 1. Splashdown's insurance coverage shall be primary insurance as respects the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of Splashdown's insurance and shall not contribute to it. 2. Splashdown's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after 30 days' prior written notice by certified mail, return receipt requested, has been given to the City. D. Acceptability of Insurers insurance is to be placed with insurers with a current A.M. Best rating of not less than A:V11, F. Verification of Coverage Splashdown shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of Splashdown. Section 13. Indemnification and Hold Harmless. Splashdown shall defend, indemnify, and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of Splashdown's use of Premises, or from the conduct of Splashdown's business, or from any activity, work or thing done, permitted, or suffered by Splashdown in or about the Premises, except only such injury or damage as shall have been occasioned by the sole negligence of the City. Section 14. Attorney's Fees - If any action at law or in equity shall be brought to enforce the provisions of this lease or to enforce or interpret any of the covenants, terms, or conditions of this lease, or for the recovery of the possession of the Premises, each Party shall pay all of their own attorney's fees. Section 15. Repairs. A. Throughout the term of this Agreement, Splashdown shall at its own cost and without any expense to the City, keep and .maintain the Premises in good, neat, and sanitary order. This includes all buildings and improvements of every kind which may be a part thereof including all appurtenances thereto, including sidewalks adjacent thereto. The City shall not be obligated to Water Slide Agreement —New Splash -Down Concessions, Inc. Page 6 of 9 make any repairs, replacements, or renewals of any kind, nature, or description whatsoever to the Premises, or any buildings or improvements thereon. B. Splashdown shall control all rodents and other pests that may be on or in the Premises during the term of this Agreement. C. Splashdown shall provide trash and garbage receptacles and have refuse removed from the Premises on a regular basis. D. Splashdown shall remain in compliance with all applicable laws and regulations of the Spokane Regional Health Department. Section 16. Insolvency or Bankruptcy - If Splashdown becomes insolvent, voluntarily or involuntarily bankrupt, or if a receiver, assignee or other liquidating officer is appointed for the business of Splashdown, then the City may terminate this Agreement. Section 17. Emplo + e - Splashdown shall conduct a background check on all employees working at the water slide or any concessions operated on the Premises. Section 18. Liens - Splashdown shall keep the Premises free and clear from all mechanics' and materialmens' and other liens from work or labor done or services performed in any way arising out of the use of the Premises by Splashdown. Section 19. Ownership of improvements, — All improvements and equipment placed on the Premises by Splashdown shall be and remain the property of Splashdown, and the City shall have no interest therein except as provided hereinafter. Section 20. Non -Liability of Chy for Theft Burgiga or Vandalism - The City shall not be liable in any manner for any loss, injury, or damage incurred by Splashdown from any acts of theft, burglary, or vandalism. Splashdown shall be responsible for providing all expenditures relating to any security precaution. that Splashdown deems necessary or appropriate for the safety of the personnel, guests, employees, patrons, or users of the premises, or property of Splashdown located on the Premises. Splashdown shall implement security measures sufficient to secure the Premises after hours and prevent unauthorized use. Section 21. Relationship of the Parties. A. The Parties intend that an independent contractor relationship will be created by this Agreement. The City is interested in only the results to be achieved, and the conduct and control of the services will lie solely with Splashdown. Splashdown will be solely and entirely responsible for its acts and the acts of its agents, employees, servants, sub -lessee or otherwise during the performance of this Agreement. B. No agency, employment or partnership is created by this Agreement. Splashdown's business is separate and apart from that conducted by the City. Neither Party will have authority to act for the other in any obligations or expenses whatsoever of the other Party. Section 22. Venue Stipulation - This Agreement has been made and delivered within the State of Washington, and shall be governed by the laws of the State of Washington, both as to interpretation and performance. Any action at law, suit in equity, or ,judicial proceeding for the Water Slide Agreement — New Splash -Down Concessions, Inc. Page 7 of 9 enforcement of this Agreement or any provision hereof shall be instituted and maintained only in Spokane County Superior Court. Section 23. Assi zg �ment - Each Party to this Agreement binds themselves, their partners, successors, executors, administrators, and assigns to the other Party of this Agreement and to the Party's successors, executors, administrators and assigns of each other Party with respect to all terms, conditions and covenants set forth herein. Splashdown may not assign, transfer in whole or in part its interest in this Agreement without the same being first authorized by motion of the City Council. A decision by the City Council to provide consent or denial shall be communicated to Splashdown within a reasonable time frame, not to exceed 30 calendar days of written request. The City Council's decision shall be made considering, among other factors, the financial stability, experience in operatingtowning water slides and related recreational facilities, and the ability to meet conditions within this Agreement. In the event of an assignment, the assignee shall assume all liability of the assignor. Any unauthorized voluntary assignment or sub -lease shall be void, and shall terminate this lease at the City's option. Section 24. Waiver - No officer, employee, or agent of the City has the power, right or authority to waive any of the conditions or provisions of this Agreement. The waiver of any breach of this Agreement shall not be held to be a waiver of any other or subsequent breach. All remedies afforded in this Agreement or at law shall be taken and construed as being in addition to every other remedy provided herein or by law. The failure of the City to enforce at any time any of the provisions of this Agreement or to require at any time performance by Splashdown of any of the provisions hereof, shall be in no way construed to be a waiver of such provisions, nor any way affect the validity of this Agreement or any part hereof or the right of the City to thereafter enforce each and every such provision. Section 25. Modification - There shall be no modification of this Agreement, except in writing, executed with the same formalities of this present instrument. Section 26. Severability. A. It is understood and agreed by the Parties that if any part, term, or provision of this Agreement is held by the Court to be illegal, the validity of the remaining portions or provisions shall not be affected, and the rights and obligations of the Parties shall be construed and enforced as if this Agreement did not contain a particular part, term, or provision held to be invalid. B. If it should appear that any part, term, or provision hereof is in conflict with any statutory provisions of Washington, then the part, term, or provision hereof which may conflict shall be deemed void insofar as it may be in conflict, and be deemed to modify the Agreement to conform to such statutory provisions. Section 27. Time of the Essence - Time is of the essence regarding each and every provision of this Agreement. Section 28. All Writing Contained Herein - This Agreement contains all the terms and conditions agreed upon by the Parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the Parties. In the event any language in an attachment which has been made part of this Agreement conflicts or appears to conflict with this document, it is expressly agreed by the Parties that this written Agreement shall control in the resolution of any such disputes. Water Slide Agreement — New Splash -Down Concessions, Inc. Page 8 of 9 Section 29. Exhibits -- A. Insurance certificates. IN WITNESS WHEREOF, the PARTIES have caused this Agreement to be executed on the date and year set forth above. C�I�T�Y OF SPOKANE VALLEY: NEW SPLASH -DOWN CONCESSIONS, INC.: Mark Calhoun, City Manager Name-� lie Tax. ID No- R€DACTED Approved as to form: Approved as to form: ice the C6 b6mey unsie -% ow ash -Down Concess' s, Inc, s This document contains confidential tax information and has been redacted pursuant to RCW 82.32.330. You may petition for a review of our findings pertaining to any redacted or withheld documents pursuant to Spokane Valley Municipal Code (SVMC) 2.75.080; and obtain judicial review pursuant to RCW 42.56.550. Water Slide Agreement ---New Splash -Down Concessions, Inc. Page 9 of 9 2021 AMENDMENT TO THE LEASE BETWEEN THE CITY OF SPOKANE VALLEY AND NEW SPLASH -DOWN CONCESSIONS, INC. Spokane Valley Contract #18-104.2 For good and valuable consideration, the legal sufficiency of which is hereby acknowledged, City and New Splash -Down Concessions, Inc. mutually agree as follows: 1. Purpose: This Amendment is for the lease for New Splash -Down Concessions, Inc. by and between the Parties, executed by the Parties on June 1, 2018, and which terminates on December 31, 2023. Said lease shall be referred to as the "Original Lease" and its terms are hereby incorporated by reference. New Splash- down concessions, Inc. is obligated to pay the City an annual lease payment of $15,000 plus 12.84% of this payment as Ieasehold excise tax. 2.Original Lease Provisions: The Parties agree to continue to abide by those terms and conditions of the Original Lease and any amendments thereto which are not specifically modified by this Amendment. 3. Amendment Provisions: This Amendment is subject to the following provisions: All such amended provisions are hereby incorporated by reference herein and shall control over any conflicting provisions of the Original Lease, including any previous amendments thereto. COVID-19 continues to have a ma or im act on businesses in bokane Coun . Due to the various health restripfigm placed by the state pf 3YashinMn and the Spokane Health DistrigL water facilities such as Splash -Down Concessions Inc. wU not operate at full ca aci . Given these restrictions, New Splash -Down Concessions. Inc. will not gpen in 2021. Because New Splash -Down. -Concessions, Inc. will not open for 2021 the Qty wai es the lease p4yment for 2021. The Cfty will not EMirc Now Splashdown Concessions, Inc obtain pEgmises liability insurance, for the 2021 season since fty will not be open, and the operator shall post at least five no treeassiag si on each of the four fenced sides of the pMpM. Section 2 of the lease is amended to change the ex iration date of the initial term from 12ecernber 31 2023 to December 3L_2025 The parties have executed this Amendment to the Original Lease this ` -1 day of June, 2021. CITY OF SPOKANE VALLEY: k Calhoun City Manager APPROVED AS TO FORM: Office 11 10 eiey NEW SPLASH -DOWN CONCESSIONS, INC. By: Section 29. Exhibits — A. Insurance certificates. IN WITNESS WHEREOF, the PARTIES have caused this Agreement to be executed on the date and year set forth above. CITY OF SPOT VALLEY: NEW SPLASH -DOWN CONCESSIONS, INC.: Am ark Calhoun, City Manager Name Tax ID No.— REDACTED Approved as to form: Approved as to form: n .. This document contains confidential tax information and has been redacted pursuant to RCW 82.32.330, You may petition for a review of our findings pertaining to any redacted or withheld documents pursuant to Spokane Valley Municipal Code (SVMC) 2.75.080; and obtain judicial review pursuant to RCW 42.56.550. Water Slide Agreement — New Splash -Down Concessions, Inc. Page 9 of 9 2022 AMENDMENT TO THE, LEASE BETWEEN THE CITY OF SPOKANE VALLEY ,AND NEW SPLASH -DOWN CONCESSIONS, INC. Spokane Valley Contract #18-104.3 For good and valuable consideration, the legal sufficiency of which is hereby acknowledged, City and New Splash -Down Concessions, Inc. mutually agree as follows: 1. Purpose: This Amendment is for the lease for New Splash-Dowct Concessions, Inc. by and between the Parties; executed by the Parties on June 1, 2018, and which terminates on December 31, 2023. Said lease shall be referred to as the "Original Lease" and its terms are hereby incorporated by reference. New Splash- down concessions, Inc. is obligated to pay the City an annual lease payment of $ 15,000 plus 12.84% of this payment as leasehold excise tax. 2. Original Lease Provisions: The Parties agree to continue to abide by those terms and conditions of the Original Lease and any amendments thereto which are not specifically modified by this Amendment. 3. Amendment Provisions: This Amendment is subject to the following provisions: All such amended provisions are hereby incorporated by reference herein and shall control over any conflicting provisions of the Original Lease, including any previous amendments thereto. COVID-19 significantlysignificafitly impacted the ability Of New S lash -Down Concessions Ino. too erate in 2020 and 2021 resulting in the business being unable too en either year. The,,Qijy and New Splash -Down, Concessions Inc. uttered into amendments to the Original Lease in 2020 and 2021 that allowed New Splash -Down Concessions Inc_ to not o en for business waiving lease a ments and waivingthe regw ednent to_ obtainpremises liability insurance. As a further cone uence of bein closed in 2020 and 2021 the physical facilities at New Splash -Down Concessions Inc. have suffered extensive vandalism and the landscaping has become substantial) over awn. Additional) due to the death of the mans ing owner in Au list 2020 there is a lack of certainly regarding future oaerations by New Splash awn Concessions Inc. The remainin famil have been actively attem tin6 to sell the business which leases.,a portion of Vhlle.y Mission Park from the City for its o erations. Given these issues New Splash -Down Concessions .Inc. will not open in 2022. Because New Splash - Down Concessions Inc. will not 012en for 2022 the Cijy waives the lease poment.for 2022. TheCity will not require New Splashdown Concessions Inc. to obtain remises liabili insurance for the 2022 season since the,. will not be o en and the o erator shall post at least five no trespassing si ns on each of the four fenced sides of the propqdy. The parties have executed this Amendment to the Original Lease this Z, P 1"q day of June, 202,2. CITY OF SPOK�ANE VALLEY* City Manager APPROVED AS TO FORM: 0 f rl c 0 ollf-c City tlo� y NEW SPLASH -DOWN CONCESSIONS, INC. By: 2 LEASE AGREEMENT- F.W. Holdings, LLC. This Agreement is between the City of Spokane Valley, a municipality of the State of Washington, with an address of 10210 East Sprague Avenue, Spokane Valley, Washington, 99206, hereinafter referred to as the "City," and F.W. Holdings, LLC having offices with an address of 6I22 E Valleyview Drive, Spokane Valley, Washington, 99212, d.b.a. Splashdown Family Water Park hereinafter referred to as "Splashdown," jointly, hereinafter referred to along with the City as the "Parties." WITNESSETH: WHEREAS, pursuant to RCW 35A.11.020, a city may lease real property, buildings, or facilities in the rendering of recreational services; and WHEREAS, the City is the owner of Valley Mission Park, located at 11123 East Mission, Spokane Valley, Washington; and WHEREAS, the City (and Spokane County prior to that) previously leased a portion of Valley Mission Park to Splashdown for the purpose of operating a water slide facility for use by the public; and WHEREAS, F.W. Holdings, LLC purchased the structural improvements constructed on the aforementioned leased portion of Valley Mission Park from the prior lessee, New Splash Down Concessions, Inc., on or about May 17t", 2023, and intends to continue using the leased premises to operate a family -oriented water park; and WHEREAS, F.W. Holdings, LLC is a Limited Liability Corporation owned and operated by Brandin Olson, 6122 E Valleyview Drive, Spokane Valley; and WHEREAS, the prior lease of the sane premises between the City and New Splash Down Concessions, Inc. terminated no later than .tune 20111, 2023; and WHEREAS, Splashdown, under its new ownership, desires to enter into a new lease agreement with the City; and WHEREAS, the City desires to have Splashdown continue to provide recreational amenities to the residents of the City and has no other current use for the property at issue. NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties mutually agree as follows: Section Z. Subject and Purpose. - The City leases to Splashdown, subject to the terms and conditions herein contained, certain real property in Valley Mission Park located at 11123 East Mission, Spokane Valley, Washington, and more particularly described as follows: That portion of Blocks 72, 75, 76 lying South of State Highway and Blocks 78, 79, 81 and 82 all in Pinecroft First Addition according to plat hereof recorded in Book "M" of Plats, Water Slide Agreement- F. W. Holdings, LLC Page I of 10 Page 35, Spokane County, Washington. Together with that portion of vacated Johnson Street adjoining said Blocks. Except the East 346.7 feet of said Blocks 76, 79 and 82; also except that portion of said Block 82 and vacated Johnson Street included within the existing tennis courts. Containing 3.65 acres more or less. This property shall hereinafter be referred to as the "Premises" and is depicted in Exhibit A attached hereto. This lease is for the purpose of constructing and operating only a water slide or slides and related landscaping uses. Splashdown is further permitted to sell food, soft drinks, active wear, and souvenirs on the Premises consistent with operation of the water slide. Splashdown and its clients are permitted to use the paved parking lots immediately adjacent to Mission Road (north and south) for purposes directly related to the operation and normal use of the waterpark, and subject to any applicable provisions in the Spokane Valley Municipal Code (SVMC). The City reserves the right to designate spaces for specific uses which may place limitations on use by Splashdown. Splashdown is not permitted to drive outside of the parking lot area, such as on the grass or sidewalks, without specific written permission from the Parks Director. Section 2. Term. - The initial term of this Agreement shall be for 66 months and 10 days, commencing on June 21, 2023, and terminating on December 31., 2028. This Agreement may be extended for an additional five years, which would run from January 1, 2029 to December 31, 2033, subject to agreement on the annual lease payment amounts required during the extended terra. To so extend this Agreement, the Parties must sign, no later than November 1, 2028, an extension agreement that identifies the amount of the required annual lease payments, which shall be subject to renegotiation as part of the extension. Section 3. Maintenance of Slide Facilities. A. Splashdown, at its sole expense, shall maintain upon the Premises a water slide or slides, together with appropriate fencing, support structures, landscaping, splash pool, and all related facilities and equipment. If at any time during the life of this Agreement the Splashdown fails to use the Premises for the purpose of construction and operation of a water slide or slides, without first obtaining permission in writing from the City, this Agreement may at the City's option, be terminated. B. If Splashdown desires to add additional flumes, apparatus, or other recreational items or - facilities other than those constructed and in use at the time this Agreement is executed, Splashdown shall first obtain written permission from the City at least 90 days prior to the start of construction, and obtain all necessary permits related thereto. The costs to construct and maintain such additional facilities shall be borne solely by Splashdown. Section 4. Operation of Slide. A. Splashdown may only utilize the Premises for the operation of a business providing recreational water slide services for public use, including ancillary and related purposes; provided, however, that operation shall comply with any and all applicable SVMC provisions and other applicable laws. Splashdown may utilize the Premises for other services only upon prior written approval of the City Manager or their designee. B. Under no circumstances may Splashdown operate when water service has been shut off Water Slide Agreement- F.W. Holdings, LLC Page 2 of 10 to Mission Park unless Splashdown has the ability to do so without damaging City property or facilities and obtains prior written permission from the City Manager or their designee. C. Splashdown shall be responsible for garbage, electricity, water, natural gas, sewer, telephone service, and any other public utility of any kind furnished to the Premises during the term of this Agreement, including any extensions. Splashdown shall pay any and all other costs and expenses of every kind whatsoever in connection with the use, operation, and maintenance of the Premises and all activities conducted thereon, and the City shall have no responsibility of any kind whatsoever for any such costs. D. Any signage shall comply with currently adopted SVMC provisions. E. Splashdown shall not discriminate against any employee or applicant for employment, or patron in violation of federal or Washington State law. Section 5. Fee. --- The base annual lease fee shall be $15,000. In recognition of the capital and resources Splashdown has invested in the improvements in order to restore the improvements thereon and make them suitable for providing water- park services to the public, the City agrees to discount the annual lease fees due for years 2023, 2024, 2025, and 2026. Splashdown shall pay to the City annual lease fees in the following amounts: $1,000 for the remainder of year 2023, $3,000 for year 2024, $7,000 for year 2025, $10,000 for year 2026, $15,000 for year 2027, and $15,000 for year 2028, plus applicable leasehold excise tax (the annual payment). For the years 2023, 2024, and 2025, the annual lease fee shall be paid in full on or before August I" of each year. Beginning with year 2026, the annual fee may, at Splashdown's option, be paid in one lump sum payment or, alternatively, in three equal payments. If Splashdown elects to pay in equal installments, Splashdown shall notify the City of its intent to do so by January 3151 of each year and then the payments shall be due by 4:00 p.m. on July 5, August 5, and September 5. If this agreement is renewed for a second 5-year term, the annual fees, including the base annual lease fee, for the second term will be re -negotiated as part of the renewal process. Section 6. Compliance with Leasehold Excise -Tax. A. This Agreement is subject to the "leaschold excise tax" pursuant to chapter 82.29A RCW, as adopted or amended, and Splashdown shall promptly pay the City all leasehold excise tax amounts with (and in addition to) the payment of fees set forth in Section 5. The rate is currently 12.84% pursuant to state law and shall be calculated upon the "base lease fee" identified in Section 5 of this Agreement. The leasehold excise tax rate may change in the future if chapter 82.29A RCW is amended, and it shall be Splashdown's responsibility to ensure it is paying the correct amount. B. Splashdown agrees to promptly pay when due any other taxes, rates, charges and assessments, special or otherwise and public charges of every kind and nature which may be lawfully imposed or assessed in any way on Splashdown regarding its use of the Premises. Splashdown further agrees to pay promptly when due all applicable taxes imposed on Splashdown as a result of the services provided upon the Premises. C. Splashdown shall comply with and abide by all federal, state, municipal, and other Water Slide Agreement- F.W. Holdings, LLC Page 3 of 10 governmental statutes, ordinances, laws and regulations affecting the Premises, the construction, operation and maintenance of the water slide thereon, the improvements thereon, or any activity conducted on or in such Premises. Section 7. Termination. - In addition to all other rights and remedies, which the Parties may have herein or at law, the Parties may terminate this Agreement as follows: By Splashdown: This Agreement may be terminated by Splashdown upon 30 days written notice upon a default by the City in the performance of any terms of this Agreement required to be performed by the City, and the subsequent failure of the City to remedy such default within 30 days after the receipt from Splashdown of written notice to remedy the same; provided, however, that no notice of termination shall have any force or effect if the City shall have remedied the default prior to the expiration of the 30-day period, or if the nature of such default is such that a period in excess of 30 days is necessary in order for the City to cure the default and shall diligently continue its efforts to correct such default. In such event, the City shall have a reasonable amount of time to cure the default. By CITY: This Agreement may be terminated by the City upon 30 days' written notice to Splashdown for the following: A. The failure of Splashdown to make any payments of money as required hereunder after receiving 10 days' written notice of its failure to pay such money. B. Abandonment of the Premises by Splashdown and/or the continuance of unauthorized conduct and operation of the business required hereunder for a period of at least five consecutive days. Failure to operate the business as authorized herein would be considered abandonment. Provided, however, that the City agrees that interruptions in the operation of the water slide due to weather conditions or repairs shall not constitute an abandonment of the Premises. C. A default by Splashdown in the performance of any terms, conditions, or covenants of this Agreement, and the failure of Splashdown to remedy such default within 30 days after receipt of written notice to remedy the same. Splashdown may cure any such default to the satisfaction of the City, which shall render the notice of default moot. In such event, Splashdown shall have such time as is reasonably required to cure the default. Section 8. Removal of Improvements. A. In the event of termination of the lease, the Parties shall have the following remedies: By Splashdown: In the event of termination by Splashdown, and except as provided herein, Splashdown shall remove all improvements from the Premises within 120 days after such termination at Splashdown's sole expense. Removal activities must occur only Water Slide Agreement- F.W. Holdings, LLC Page 4 of 10 between the hours of 7:00 a.m. and 8:00 p.m. Splashdown shall also restore the Premises to its original condition during the same time frame. By City: In the event of termination by the City or at the end of the term of this Agreement, the City shall have the right for a period of 90 days after termination to purchase the improvements from Splashdown at a price to be mutually agreed upon. In the event the City does not exercise its right to purchase the improvements, Splashdown shall remove the same within 120 days after the expiration of such period and restore the Premises to its original condition during the same time frame. B. In the event of a termination, and Splashdown does not remove the improvements placed upon the Premises by Splashdown within the time frames set forth herein, the City may at its option, (1) on the payment of $1.00 take title to said property; or (2) dismantle, remove and store such property at a location convenient to the City and charge to Splashdown a fee for dismantling, removing, transporting, and storing said property. Section 9. Waste and Nuisance Prohibited. - Splashdown shall not commit, or suffer to be committed, any waste or nuisance on the Premises. Section 10. Sewers. The Parties agree to the following allocation of costs with regard to sewer: A. Sewer Capital Facilities Rate: Splashdown shall be responsible for paying all Sewer Capital Facilities Rate charges (i.e. ERU's) that are or may be applicable to, or made necessary by, Splashdown's use of Premises. B. Splashdown shall pay all construction costs incurred to connect new service, increase service due to expansion of the water slide facilities, and to maintain sewer service. C. Splashdown shall, at its expense, install an additional water meter(s) to measure the flow of water entering the sewered portion of the Premises. D. Consistent with the November 13, 2019, letter from Spokane County (attached hereto as Exhibit B), Splashdown must retire the on -site septic system serving the Premises and connect to the Spokane County sewer system only if one or more of the following occur: i. the existing Splashdown facilities on the Premises are expanded; ii. Facilities or buildings are added on the Premises which generate wastewater; iii. The Spokane Regional Health District determines that an on -site septic system has failed; or iv. Spokane County notifies either the City or Splashdown that the Premises must be hooked up to the Spokane County sewer system. E. Splashdown shall pay all monthly sewer charges allocable to Splashdown's use of the Premises. Water Slide Agreement- F.W. Holdings, LLC Page 5 of 10 Section 11. Notices. A. All notices, demands, or other writings in this Agreement provided to be given or made or sent or which may be given, or made or sent by either Party hereto to the other, shall be deemed to have been frilly given or made or sent when made in writing and deposited in the United States mail, certified, postage pre -paid and return receipt requested, and addressed as follows: To CITY: City of Spokane Valley, Attn: City Manager 10210 East Sprague Avenue Spokane Valley, Washington 99206 To LESSEE: F.W. Holdings, LLC 6122 E Valleyview Drive Spokane Valley, Washington 99212 B. The address to which any notice, demand, or any other writing may be given or made or sent to any Party may be changed by at least 30 days' written notice. Section 12. Insurance. Splashdown shall procure and maintain, for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Splashdown's operation and use of the leased Premises. No Limitation. Splashdown's maintenance of insurance as required by the agreement shall not be construed to limit the liability of Splashdown to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance Splashdown shall obtain insurance of the types described below: Commercial General Liabili1y insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The City shall be named as an additional insured on Splashdown's Commercial General Liability insurance policy using ISO Additional Insured -Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. 2. Property insurance shall be written on an all risk basis. B. Minimum Amounts of Insurance Splashdown shall maintain the following insurance limits: 1. Commercial General Liability insurance shall be written with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. 2. Prol2erU insurance shall be written covering the full value of Splashdown's property and improvements for their full replacement value with no coinsurance provisions. Water Slide Agreement- F.W. Holdings, LLC Page 6 of 10 C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance: 1. Splashdown's insurance coverage shall be primary insurance as respects the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City, if applicable to any loss, shall be excess of Splashdown's insurance and shall not contribute to it. 2. Splashdown's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after 30 days' prior written notice by certified mail, return receipt requested, has been given to the City. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Splashdown shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily Iimited to the additional insured endorsement, evidencing the insurance requirements of Splashdown. ,Section 13. Indemnification and Hold Harmless. Splashdown shall defend, indemnify, and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of (a) Splashdown's use of Premises, (b) the conduct of Splashdown's business, (c) any activity, work or thing done, permitted, or suffered by Splashdown in or about the Premises, or (d) the wrongful or negligent acts, errors, or omissions committed by Splashdown's employees, agents, owner(s), volunteers, contractors, and subcontractors to the fullest extent permitted by law, subject only to the limitations provided below. Notwithstanding the above, should a court of competent jurisdiction determine that this Agreement is subject to .RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Splashdown and the City, its officers, officials, employees, and volunteers, then Splashdown's liability hereunder, including the duty and cost to defend, shall be only to the extent of Splashdown's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes Splashdown's waiver of immunity under Industrial Insurance, Title 51, RCW, solely for the purpose of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. Section 14. Attorney's Fees - If any action at law or in equity shall be brought to enforce the provisions of this lease or to enforce or interpret any of the covenants, terms, or conditions of this lease, or for the recovery of the possession of the Premises, each Party shall pay all of their own attorney's fees. Water Slide Agreement- F.W. Holdings, LLC Page 7 of 10 Section 15. Repairs. A. Throughout the term of this Agreement, Splashdown shall at its own cost and without any expense to the City, keep and maintain the Premises in good, neat, and sanitary order. This includes all buildings and improvements of every kind which may be a part thereof including all appurtenances thereto, including sidewalks adjacent thereto. The City shall not be obligated to make any repairs, replacements, or renewals of any kind, nature, or description whatsoever to the Premises, or any buildings or improvements thereon. B. Splashdown shall control all rodents and other pests that may be on or in the Premises during the term of this Agreement. C. Splashdown shall provide trash and garbage receptacles and have refuse removed from the Premises on a regular basis. D. Splashdown shall remain in compliance with all applicable laws and regulations of the Spokane Regional Health Department. Section 16. Insolvency or Bankruptcy - If Splashdown becomes insolvent, voluntarily or involuntarily bankrupt, or if a receiver, assignee or other liquidating officer is appointed for the business of Splashdown, then the City may tenninate this Agreement. Section 17. Employees - Splashdown shall conduct a background check on all employees working at the water slide or any concessions operated on the Premises. Section 18. Liens - Splashdown shall keep the Premises free and clear from all mechanics' and materialmens' and other liens from work or labor done or services performed in any way arising out of the use of the Premises by Splashdown. Section 19. Ownership of Improvements. - All improvements and equipment placed on the Premises by Splashdown shall be and remain the property of Splashdown, and the City shall have no interest therein except as provided by this Agreement. Section 20. Nan -Liability of City for Theft. Burglaiv or Vandalism - The City shall not be liable in any manner for any loss, injury, or damage incurred by Splashdown from any acts of theft, burglary, or vandalism. Splashdown shall be responsible for providing all expenditures relating to any security precaution that Splashdown deems necessary or appropriate for the safety of the personnel, guests, employees, patrons, or users of the Premises, or property of Splashdown located on the Premises. Splashdown shall implement security measures sufficient to secure the Premises after hours and prevent unauthorized use. Section 21. Relationship of the Parties.. A. The Parties intend that only a lessor/lessee relationship will be created by this Agreement. Splashdown will be solely and entirely responsible for its acts and the acts of its agents, employees, servants, volunteers, sub -lessees or otherwise during the performance of this Agreement. B. No agency, employment or partnership is created by this Agreement. Splashdown's business is separate and apart from that conducted by the City. Neither Party will have authority to Water Slide Agreement- F.W. Holdings, LLC Page 8 of 10 act for the other in any obligations or expenses whatsoever of the other Party Section 22. Venue Stipulation - This Agreement has been made and delivered within the State of Washington, and shall be governed by the laws of the State of Washington, both as to interpretation and performance. Any action at law, suit in equity, or judicial proceeding for the,enforcement of this Agreement or any provision hereof shall be instituted and maintained only it) Spokane County Superior Court. Section 23. Assignment - Each Party to this Agreement binds themselves, their partners, successors, executors, administrators, and assigns to the other Party of this Agreement and to the Party's successors, executors, administrators and assigns of each other Party with respect to all terms, conditions and covenants set forth herein. Splashdown may not assign, transfer in whole or in part its interest in this Agreement without the same being first authorized by motion of the City Council. A decision by the City Council to provide consent or denial shall be communicated to Splashdown within a reasonable time frame, not to exceed 30 calendar days of written request. The City Council's decision shall be made considering, among other factors, the financial stability, experience in operating/owning water slides and related recreational facilities, and the ability to meet conditions within this Agreement. In the event of an assignment, the assignee shall assume all liability of the assignor. Any unauthorized voluntary assignment or sub -lease shall be void, and shall terminate this lease at the City's option. Section 24. Waiver - No officer, employee, or agent of the City has the power, right or authority to waive any of the conditions or provisions of this Agreement. The waiver of any breach of this Agreement shall not be held to be a waiver of any other or subsequent breach. All remedies afforded in this Agreement or at law shall be taken and construed as being in addition to every other remedy provided herein or by law. The failure of the City to enforce at any time any of the provisions of this Agreement or to require at any time performance by Splashdown of any of the provisions hereof, shall be in no way construed to be a waiver of such provisions, nor any way affect the validity of this Agreement or any part hereof or the right of the City to thereafter enforce each and every such provision. Section 25. Modification - There shall be no modification of this Agreement, except in writing, executed with the same formalities of this present instrument. Section 26. Severability. A. It is understood and agreed by the Parties that if any part, term, or provision of this Agreement is held by a court to be illegal, the validity of the remaining portions or provisions shall not be affected, and the rights and obligations of the Parties shall be construed and enforced as if this Agreement did not contain a particular part, term, or provision held to be invalid. B. If it should appear that any part, term, or provision hereof is in conflict with any statutory provisions of Washington, then the part, term, or provision hereof which may conflict shall be deemed void insofar as it may be in conflict, and be deemed to modify the Agreement to conform to such statutory provisions. Section 27. Time of the Essence - Time is of the essence regarding each and every provision of this Agreement. Section 28. All Writing: Contained Herein - This Agreement contains all the terms and conditions agreed upon by the Parties. No other understandings, oral or otherwise, regarding the subject matter Water Slide Agreement- F. W. Holdings, LLC Page 9 of 10 of this Agreement shall be deemed to exist or to bind any of the Parties. In the event any language in an attachment which has been made part of this Agreement conflicts or appears to conflict with this document, it is expressly agreed by the Parties that this written Agreement shall control in the resolution of any such disputes. Section 29. Exhibits - A. Map of the Premises B. Letter from Spokane County Environmental Services Director Kevin R. Cooke to City Of Spokane Valley Parks Director Mike Stone, dated November 13, 2019, C. Insurance certificates. IN WITNESS WHEREOF, the PARTIES have caused this Agreement to be executed on the date and year set forth above. LESSOR: CITY OF SPOKANE VALLEY By Name: John Hohman Date Its: City Manager TENANT: F.W. HOLDINGS, LLC By Name: Brandin Olsen Date Its: Owner and Manager Water Slide Agreement- F.W. Holdings, LLC Page 10 of 10 Exhibit A _.� _.�. -� _ VAT �..-_ �. � v , � � \ �.a � ♦ - A A� � �� �� ♦ �� ^�\�'V � � � go 77 FS ■ S \'^ '`\�\\\ "^.,'mil_" \90 �\♦\ \\v `� sro� �s v jlo�k �e A0 l4 Ok i.__...77m ng,ennls w Court Fer1c:� ` NO", 9if1�S0i1 4S.\ �11 \ 45093 06.46 y/� 9 4 E= Mission Ave Valley Mission Park South .45162.0327 — n m Lease Area N .... Exhibit A - Lease Premises = Valley Mission Park 1.3,000 w E E� Pinec- Plot t First Acldifion - 1j Tox Parcels Pint Area - 0 75 150 300 Feet s PlnccrofI 1 sl Add Blacks Si]Jokane Valleyy GI'S I 1 June 131A ?.023 Spokane County Environmental Services Kevin R. Cooke, RE., Director November 13, 2019 Mike Stone, Director City of Spokane Valley Parks Department 10210 E Sprague Avenue Spokane Valley, WA 99206-3682 RE Conditional EIxemption from Reqtdrement to Connect to the PLIblic Sewer Valley Mission Park, 11123 E. Mission Ave, Pat -cc] 45093.0646 Dear Mr. Stonc, Bi H Bleasner, owner of Splashdown at the Valley Mission Park, has been in contact with our office regarding the connection of the Splashdown facilities to the County's sanitary sewer system. Although the City's facilities on this property, are connected to the sewer, Splashdown is still utilizing two on -site systerns for wastewater disposal, Mr. Bleasner has provided documentation to this office, including cost estimates prepared by contractors. The estimated cost of redirecting the wastewater from the on -site systems to the Comity's regional sewer systorn is very high, in excess of $100,000. Splaslidown has a short, three-month operating season each year, lit consideration of the eircurnstances outlined above, and. as perjuitted under Chapter 8.0�3, Article 3000 of the Spokane Comity Sanitary Sewer Coale, I am graliting a Comfitional Exemlitim front man(latory sewer connection of those facilities directly related to the Splashdown operation. This conditional exemption may becO111C IILIIJ and void, and connection to the public sewer will be required, should any of the following events occur: 0 An expansion of the of the existing Splashdown facilities, The addition of new facilities or buildings on the property which generate wastewater. (Note: The addition of plumbing fixtures to the City's existing buildings that are currently connected to the sewer systern will not void this exemption) Detorminadon by the Spokane Regional Health District that an on -site septic system has tailed. 1026 West Broadway Avenue, 4th Floor o Spokane, WA99260-043,0 Phone; (509)477-3604 a Fax: (509)477--4715 * TDD:(509)477-7133 M 11FOW-1 If YOU have questions or yotj need additional information, please contact Mark Stiltz at (509) 477-7469 or by email at Sincerely, Kevin R, Coot e, P.R. Environmental Set -vices Director CC: Bill Bleasner, 12727 1,. Piper Rd., Spokane, WA 99217 Jon Sherve, Director, Spokane, Regional Health District / F'nvironnlental Health Karen Gehret, Spokane County Environmental Services I 91 Jq —R tE A . iE IN A 41 Q < Z w71.z p RM av f if C Y.J w S 0 ja W F IM k u 0 , g n F, z C) u Q u u u u u u u u u u a 0 uuuuuuu" n 0 C, 0 C 0 Oc uuuuuuuuUu 0 0 0 0 0 C C u so u q u I Community Development Block Granit (C�DB,G) Pirogram June 20, 2023 Background . . ...... .. . ....................................... n City has deferred entitlement status & �partici'pated in the urban county consortium since 2005 Is 2024-2026 requalification period Four options for CDBG program Staff evaluating impacts for City and the region Must notify HUID and County of selection by July 7, 2023 * For 2023, the CID BG allocation for the City is $605,710 * For 2023, the City's HOME allocation is $402,820 $5,00,000 rnin to participate independently Optioln to form a HOME consortium 1 Backgrou nd w 2023 Spokane County Allocations including City's portion: CDB,G - $1,667,671 HOME - $966,616 o County will qualify for at least of portion of HOME funds regarding of City's decision C) A consortium needs to be formed for all HOME funds to stay in the region Ernerg,ency Services Grant (ESG) - $146,506 o 2023 is the first year of eligibility (,) Unknown if County would qualify if City accepted entitlement 3 CI : ty of Spokane 'valley Entitlement Options Option 1- Accept entitlement status and' receive CD,BG funds directly from HUD Option 2 - Accept entitlement status and enter into a joint agreement with the urban county (Spokane County) Option 3 - Defer entitlement status and participate through the State CDBG program Option 4 - Defer entitlement status and parflcipate as a part of the urban county (Spokane County) 4 IN Eff $605,710 CDBG Allocation P3 Provides direct control and authority to decide how the funds are awarded and used In City responsible for all administration & implementation Consolidated plan, annual report, coordinating with advisory review committee, grant process, reporting, overseeing grantee and auditing 20% max for administration or -$121K In The following must be in place prior to receiving CDBG: — Adopt Consolidated Plan by May 15, 2024 — Establish advisory board — Develop templates/forms for selecting projects/award Hire One FTE to accomplish tasks above Estimated cost is approximately $300K (startup costs) - not HUD reimbursable I 11111�111grLgrqw. gpqiiiip!�Iqpqq� " III I I I I � III I w 3 FTEs for the ongoing CDBG implementation ---- Annuall cost is approximately $425,000 $121K HUD reirnbursable $304K from other City funds - unfunded $484,568 CDBG funds available for projects & providers, If chosen, this option provides a net benefit of $180K Currently, there is a net benefit of $484,568 to City and Spokane Region HOME funds impact A consortium needs to be formed & approved by HUD by September 30, 2023 to preserve all HOME funds 10% max for administration County may request additional City contribution to administer 11 6 M 'Gc"� TIMM- vul ESG Impact -- Unknown if the region would continue to qualify if this option is chosen HOME funds impact 11m Tirrieline for Action Notify HUD and County by July 7, 2023 Execute HOME consortium agreement by August 4, 2024 (a 2-week extension may be granted by HUD) 71=2 11111! 11PITI III 131!1111111;11�� : . .. Spokane County is responsible for all administration & implementation — Consolidated plan, annual report, coordinating with advisory review committee, grant process, reporting, overseeing grantee and auditing King County has a joint agreement with Kirkland, Redmond, Renton & Shoreline (JACs) — JACs have independent advisory review boards — County reviews recommendations from JACs for compliance with national objectives — King County is the ultimate authority Spokane County Board of Commissioners is the final authority Im S,po'kane County has not indicated they support this option .11 M 0 HOME & ESG fund impacts --- Same as Option #1 Timeline for Action Notify HUD and County by July 7, 2023 Execute JAC agreement & HOME consortium agreement by August 4, 2024 (a 2-week extension may be granted by HUD) E Option #4 - Defer entitlement status, and participate though the urban county • Clity has elected this option since 21005 Staff has recommended changes to the interlocal with the County Adding HOME and ESG funds to the set aside for the City Broadening allowable uses in the consolidated plan to support City Council priorities Providing for direct pass through of the state recording fees attributable to the City • County staff prefers the City administers these fund and Would like a separate agreement • Homeless Housing Action Act funds are not subject to the same HUD timeframes City Council approval prior to directing,, allocating or committing any City entitled funds to a regional entity County coordination County willing to discuss future alRocations that are proportional to the City's population and needs. However, formal comments have not been provided County is on hold until the Regional Homeless Entity presentation on June 28, 2023 iul 10 61 Option #4 - Defer Entitlement and Participate though the Urban County Consortium County will continue to administer CDBG, HOME and ESG program - No additional City staff This option does not impact regional HOME or EGG funds Timeline for Action Notify HUD and County by July 7, 2023 Execute interlocal by August 4, 2024 (a 2-week extension may be granted by HUD) Alternative Provide additional City funds for Outside Agency process and reconfigure process to align with goals/objectives of Housing Action Plan Net effect of supporting services with less costs of becoming entitlement and without HUD restrictions and potentially impacting other HUD funds for the region, 12 X