05-009.00 US BankDanko
FiiY S~af Smi.Y Gmu~rt:eni ~ ~ \
C~
Commercial Real Estate
Mail Stop PD-WA-T2CM
428 West Riverside, Second Floor
Spokane, WA 99201
509 353-6776!6788
509 353-6799/7355 fax
February 25, 2005
Mr. llave Mercier
City Manager
Cit-~~ of Spcka,~c V~illey
11.707 1~..SPr~~~e Avenue
5pok~u7e V~~Iley, ~~1~A 9J20G
Re: See Legal Description attached Lxh~bit "A"
Job \TO. Pines/Mansfield Mitigation Agreement
To whom it may concern:
The above-referenced Bank hereby certifies that the sum of $54,926.26 has been set aside from a
loan from U.S. Bank iVatiional Association, Loan # 0608735685-26. The funds have been set aside
for the benefit of the City of Spokane Valley (hereinafter referred to as "City"), to secure Qualchan
investments Spokane, Inc.'s (hereinafler referred to as "QIS") payment of amounts due under the
\~~1Lhilt7Qn AgrGGll1(:Ilt - ~1' ~7 Tines !toad) / vlantilield !toad Construction Project. Under the terms
of that Agreement, QTS is required to remit payment in the amount of 554,926.26 at the time a
building permit is issued for the project or February 8, 200S, whichever occurs first. It is our
understanding that in the event QIS or its successor-in-interest makes said payment to the City at the
time of permit or the City is presented with an equivalent financial guarantee by a successor-in-
interest to QIS's property, the City shall direct a letter to this institution releasing this set aside.
The Bank hereby certi f es and agrees that these funds will not be released without written
instructions from an authorized agent of the City. ~~Ve further agree that these Funds will be paid to
the City within 10 days of receiving a written notice that the monies are due and owing, provided that
the funds will not be released sooner than February 5, 2005, whichever occurs first. The Bank shall
have no duty or right to evaluate the correctness, or appropriateness of any such notice or
determination by the City, cscept as provided herein and shall not intcrplead or, in any manner, delay
payment of said fiords to the City.
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The applicant hereby agrees to this assi~mmcnt of funds. "1""his assignment of funds is irrevocable and
camiot be canceled by the Bank or Borrower.
There is no provision in this Set Aside Letter for any maintenance bond requirement.
Borrower:
Stone Riv d N1cCoi 'g Development, LLC
~-
By: ry P. Stoi anager
U.S. Bank National Association
/•~ ~-
By: Gay P~ S a~toi , ~~ice President
~~
_.,
Qualehan Investments Spokane, Inc., Mitigation Agreement
Pines/Mansfield Road Construction Project Purge 3 of 6
AGREEMENT
1JOW, TI-IERErORE, in consideration of the mutual covenants and conditions hereafter
set .forth, the Developer and the City hereto agree. as follows:
I. Voluntan~ Agreement. This Agreement, including al attached documents, is a
voluntary agreement as that term is used in RCW 82.02.020. The tnitigaticm fees
charged herein are proportional to the traffic-related impacts generated by the
Development. The parties acknowledge that the capital project is reasonably
necessary to mitigate the direct traffic impact o!'the Development. Ill the event this
mitigation agreement is determined by a court to be invalid, the City shall refund the
unexpended portion of mitigation fees. Following a termination of this agreement the
Developer shall, as reasonably required, mitigate the direct traffic impacts ol~ the
Development through the State Environmental Policy Act.
2. Project Funds. Tlie Project is being funded from several sources including, the
R'ashington State Department of Transportation (~~l~SIaOT), the TT.B, the SRTC, the
City, and private developers. Funds from DJSDOT; TI$, SRTC and the City have
been obligated. See "Exhibit 13".
3. yiitiaation Fcc. The- Developer shall pay $54,926, 0303.46 per P.M. Peak hIour
trip), which has been determined to be the Deve.loper's contribution to the Project for
mitigation of future trai~ic impacts related to the Development. This traffic
mitigation fee shall be expended towards the design; right-of way acquisition; and
construction of the Project.
4. Payment The parties understand at this time the Developer does not have a
definitive project. The Developer almees to pay the mitigation fee prior to the City's
issuance of a building a building permit for development of the Property or three
years from the date. the parties execute this Agreement, whichever comes :bzst. A
letter of credit, savings assigYmmcnt or set-aside letter, or other appropriate mechanism
that gives the City a unilateral right to access the funds pursuant to this agreement
from a financial institution shall be provided to the Ciry no later than February 25,
2005. All fees paid by the Developer shall be used as reimbursement to the City for
the local match required for the TIB and SRTC grants related to the design., right-of-
way acquisition, and construction of the Project.
5. Site Development. Building permits t~°ill be issued far the Development when l) t}mis
agreement has been executed by the Developer and the City, and 2) the Developer's
mitigation fees have been paid in accordance with Section 4 above, and 3) all other
conditions of approval of the Development required by state and local laws are
satisfied.
Execution of this agreement releases the Developer from the requirement of
constnicting frontage improvements on the Propertyy, provided said frontage
irrtprovements are included in the .Project. If frontage. improvements are not included
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