24-147.00McDonaldsUSATrafficMitigation edA/r C Ale , 241 - i 4 7
VOLUNTARY MITIGATION AGREEMENT FOR SPOKANE VALLEY McDONALDS
TRAFFIC MITIGATION
This Voluntary Mitigation Agreement("Agreement") is entered into between McDonald's USA, LLC, its
successors and assigns ("Developer"), a Delaware limited liability company, having offices at 110 N
Carpenter Street,Chicago, IL 60607, and the City of Spokane Valley("City"), a municipal corporation of
the State of Washington,hereinafter jointly referred to as"Parties":
RECITALS
1. This Agreement is entered into by the Parties pursuant to RCW 82.02.020, to provide a financial
contribution toward the Pines Rd. (SR-27)/ Sprague Ave. Intersection Improvement project that mitigates
increased traffic volumes generated by development of property as proposed in the Developer's permit
applications BLD-2024-0353 and EGR-2024-0010.
2. Developer is the owner/developer of certain real property generally located within an area located south
and adjacent to Sprague Avenue and west and adjacent to Blake Road, identified as a portion of parcel
number 45221.9314 in the City of Spokane Valley (herein collectively referred to as "Property"). The
Property covers a total of 11.15 acres of land.
3. The Developer has requested the City to approve an engineered grading permit and building permit
associated with the Spokane Valley McDonald's restaurant,a commercial development(herein collectively
referred to as the "Development"), which will increase traffic congestion and directly impact existing
transportation infrastructure at the Pines Rd./Sprague Ave.intersection located within the City. Voluntary
mitigation of these impacts has been requested by the Developer as part of the approval process pursuant
to the transportation concurrency analysis review. As part of this request, the following condition of
approval is included in the Certificate of Transportation Concurrency for approval of the permits:
Prior to the issuance of a building permit,the applicant shall enter into a voluntary
mitigation agreement with the City of Spokane Valley to make the proportionate
share contribution towards improvements at the intersection of Pines Road and
Sprague Avenue and shall pay the City the voluntary mitigation fee of $2,717
(1.1%of the estimated$737,000 improvement project applicable to mitigation).
Spokane Valley has determined that the project will contribute 8 PM peak hour trips and 15 AM peak hour
trips to the intersection at Pines Road and Sprague Avenue as provided in the Trip Generation And
Distribution Letter(TGDL) for the Development, dated June 10, 2024. The need for improvements was
identified in a prior development analysis. The Parties agree that the prior analysis applies to the proposed
Development, and that the Development will generate increased traffic volumes which will require
improvements to the City's transportation facilities. The City and Developer agree that a voluntary one-
time mitigation fee of$2,717 (8 trips at $339.63 per trip)represents Developer's proportional share of the
improvements necessitated by the Development ("Voluntary Mitigation Fee"), and that Developer shall
pay the Voluntary Mitigation Fee in lieu of other improvements, and the City shall not require Developer
to make,cause or perform any off-site transportation improvements in connection with the Development.
4. The Parties agree that the Voluntary Mitigation Fee identified herein is appropriate for improvements
deemed necessary based on calculations provided by the City in the TGDL Acceptance Letter dated June
12, 2024. The Parties further agree that the methodology used to identify the amount of the Voluntary
Mitigation Fee is reasonable and that the amount thereof is proportionate to the direct impacts of the
Development on the City's traffic facilities.
5. Pursuant to RCW 82.02.020, the City has the authority to allow a payment to mitigate a direct impact
that has been identified as a consequence of a proposed Development. The Parties (1) have identified
transportation improvements necessitated by the planned development of the Property; and (2) have
identified a reasonable relationship between impacts generated by the development of the Property to the
transportation system and the Developer's financial contribution toward those impacts.
6. To mitigate the direct impacts of the development of the Property upon transportation facilities as
identified in the document entitled June 10, 2024 Trip Generation and Distribution Letter for Spokane
Valley McDonald's and the associated acceptance letter, the Parties are voluntarily entering into this
Agreement pursuant to RCW 82.02.020.
AGREEMENT
NOW,THEREFORE, in consideration of the mutual covenants and conditions contained herein,
the Developer and the City hereto agree as follows:
1. Voluntary Agreement. This Agreement, including all attached documents, is a voluntary agreement
pursuant to RCW 82.02.020. The Developer's contribution is proportional to and reasonably necessary to
mitigate the traffic impacts created by the Development. In the event Developer breaches its obligation to
timely pay the Voluntary Mitigation Fee under this Agreement, all of the City's obligations under this
Agreement shall terminate. In the event this Agreement is determined by a court to be invalid, the City
shall refund the Developer the unexpended portion of the Voluntary Mitigation Fee payment,and the City's
obligations under this Agreement shall terminate.
2. Projects. The Parties agree that the Voluntary Mitigation Fee payment shall be expended by the City
on improvements at the directly impacted intersection of Pines Road and Sprague Avenue, including the
Sprague/Pines (SR-27) Intersection Improvement project and all necessary components of improvements,
as deemed appropriate by the City of Spokane Valley.
3. Mitigation Contribution. The Voluntary Mitigation Fee is based on calculations provided by the City
in the TGDL Acceptance Letter dated June 12,2024 for the analysis document entitled June 10, 2024 Trip
Generation and Distribution Letter for Spokane Valley McDonald's. The Developer agrees to pay the
Voluntary Mitigation Fee to mitigate traffic impacts resulting directly from development by the Developer
on the intersection of Pines Road at Sprague Avenue. Said fee is based on 8 additional trips at a cost of
$336.96 per trip.
4. Payment. The Developer agrees to pay the Voluntary Mitigation Fee prior to the issuance of any
building permit.
5. Compliance with RCW 82.02.020. Payment of the Voluntary Mitigation Fee by Developer and
collected by the City shall be held in a mitigation fee reserve account and may only be expended towards
the design, right-of-way acquisition, construction, and other related components of the projects identified,
and agreed to by the Parties in section 2 of this Agreement. The City shall be entitled to reimbursement
from the mitigation fee reserve account for any funds it may expend for the design and construction prior
to the collection of the fees. The Voluntary Mitigation Fee payment shall be expended by the City within
five years from the date of payment by the Developer. Pursuant to RCW 82.02.020, any funds in the
mitigation fee reserve account not expended within the five year period identified above shall be refunded
by the City to the Developer with interest; however, if the payment is not expended within five years due
to delay attributable to the Developer,the payment shall be refunded without interest.
6. Notice. All communications, notices or demands of any kind which a party under this Agreement is
required or desires to give to any other party shall be in writing and be either:
(a)Delivered personally;
(b) Sent by facsimile transmission with an additional copy mailed first class; or
(c) Deposited in the U.S. mail,certified mail postage prepaid,return receipt requested and
addressed as follows:
If to the City: City of Spokane Valley
10210 East Sprague Avenue
Spokane Valley, WA 99206
Fax: (509) 720-5075
Attn: City Manager
If to the Developer: McDonald's USA, LLC
c/o Kelsie Hieber
110 N Carpenter Street
Chicago, IL 60607
7. Successors. This Agreement shall be binding on and inure to the benefit of the successors and the
assigns of the Parties.
8. Governing Law. This Agreement shall be construed in accordance with the laws of the State of
Washington. Venue shall be in Spokane County,State of Washington. All disputes arising under or related
to this Agreement that cannot be resolved through informal discussion and negotiations shall be resolved
by litigation filed in the Superior Court for Spokane County,unless otherwise required by applicable federal
or state law. The prevailing party in any litigation of a dispute arising out of this Agreement shall be entitled
to recover its reasonable attorney fees and costs.
9. Modifications. No modification or amendment of this Agreement shall be valid unless and until the
same is reduced to writing and executed with the same formalities as the present Agreement.
10. Waiver. No officer,employee,agent or otherwise of the City has the power,right or authority to waive
any of the conditions or provisions to this Agreement. No waiver or any breach of this Agreement shall be
held to be a waiver of any other or subsequent breach.
11. Entire Agreement. This Agreement forms a fully integrated agreement between 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 hereto. All Parties have read and understand all of the Agreement, and now
state that no representation,promise or agreement not expressed in the Agreement has been made to induce
any Party to execute the same.
12. Authority. Both Parties to this Agreement represent and certify that they have full authority and power
to enter into and carry out this Agreement. The persons signing this Agreement represent that they have
authority to act for and bind their respective principals.
[Remainder of Page Intentionally Left Blank]
Executed this 025 day of JV l , 2024.
DEVELOPER:
MC� ��D'S S
By: \
Name: Arta s t-irei'U1
Its: ls 515ricv,ye
STATE OF ILLINOIS )
) SS:
COUNTY OF COOK )
I, ta J` W V KJ'4 ,a Notary Public in and for the county and state set forth above,CERTIFY
that \1 //l.Vl, �'�/jA , as VS oo�,( ,t f �,� of McDONALD'S USA, LLC, a
Delaware limited liility company, who is personally known to me oJbe the same person whose name is
subscribed to the foregoing instrument as such authorized party,appeared before me this day in person and
acknowledged that he/she signed, sealed and delivered this instrument as his/her free and voluntary act as
such authorized party and as the free and voluntary act of the company for the uses and purposes described
in this instrument.
Given under my hand and notarial seal,this o25 day of ..2p,Zi-�:
My commission expires dt 14 lje ZCJ + AIL
MICAELA WILpOURN
Official Seal
Notary Public-State of Illinois
My Commission Expires Jul 6, 2025
CITY:
CITY OF SPOKANE VALLEY
Jo n Hohman, City Manager
ATTEST: APP VED ipTO F RM:
Marci atterson, City Clerk ice f the Cit Attorney