05-042.00 Qualchan Investments1(~
RETURN ADDRESS
City of Spokane Valley
11707 E. Sprague Ave
Spokane Valley, WA 99206
Attn: Chris Bainbridge, City Clerk
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Please Type or Print Neatly & Clearly All Information
Document Title(s): Mitigation Agreement SR 27 (Pines Road) Mansfield Road Construction Project
Reference Number(s) of Related Documents
Grantor(s) (Last Name, First 8 PAiddle Inftial)
DeveloperlOvrner: Qualchan Investmonts Spokane, Inc.
Grantee(s) (Last Name, Firsl & Middle Inilial~
Mitigation Agreement vrith Developer noted above and City of Spokane Valley
Legal DeSCfIPtIOn (Abbreviated fomti is acceptable) i.e. SectionlTo~,vnshiplRangelll4 Section
10-25-44 S26 213 RODS OF W60RODS OF N4V 114 OF NV~1 1!4 & N13 113 RODS OF 1n164RODS OF SI~V 114 OF h!W 114 EXC CO
RDS
Assessor's Tax Parcel ID Number: 45102.9011
The County Auditor vrill rely on the information provided on this form. The Staff will not read the document to verify the Accuracy or
completeness of the indexing information provided herein.
Sign below only if your document is Non-Standard.
am requesting an emergency non-standard recording for an additional fee as provided in RCW 36.18A10. I understand that the
recording pro sling requirements may cover up or othentise obscure some pars of the text of the original document. Fee for non-
standa ro ing is $50.
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NIITIC ATIQI\ AGItP,:l~;ivrlcly T
SIt 27 (P.I'i TFS RQAD) / I~IAI~TSFII+/IaTa RQAD CD~TSTI2UCTIOi`i PRp,lE~CT
'1"his iVtitigation Agreement ("A~reement") is entereduito by a~~d between
Qualchan l.nvestments Spokane, Inc. (`'1eveloper"), a Washington Corporation, having
offices for the transaction of business at 104 South Division, Spokane, Washington 99202;
and the City of Spokane Valley ("City"),apolitical subdivision of the State of Washington,
hereinafter jointly referred to as "Parties":
I~~;CITAI.,S
l . "fhc City, in cooperation with Spokane County and the ~~~ashington State
Department of Transportation; is planning to design. and construct improvements to the
SR 27 (Pines Road) and Mansfield Road corridor v~~dl Transportation Partnership
Program ("1!'P) grant .funds from the Transportation Improvcrncnt Board (T1I3) and
Congestion ManagemenUAir Quality (Ci~~IAQ} grant i.'unds from the Spokane Regional
Transportation Council (SFtTC). The Warne of the projeci is the Pines/Mansfield Corridor
Congestion Relief Project ("Project") and the purpose of this project is to alleviate
existing and future traffic congestion in this area.
The Project will reconfigure the WB ramps of I-90 at SIB-27 (Pines Rd.), using the
existing slip ramps to Indiana Ave. and Montgomery Ave. WB ofi=ramp traffic will use
the slip ramp to a signalized intersection at Indiana Ave. ~~%E3 on-ramp traiiic will use the
slip ramp at Montgomery Ave. To improve operation of the WF3 on-ramp and ensure
safety, the portion of Montgomery Ave. between Pines Rd. and the slip ramp will be one-
way, westbound only. Therefore, to provide access to Pines Rd. for the properties west
of fines Rd., Mansfield Ave. will be improved; with a traffic signal at the intersection of
)vtansficld Ave. & Pines Rd. Curb, gutter, sidewalks and bike lanes will also be
constructed. Iii addition; a signal will be installed at the Ivlirabeau Pkwy & Pines Rd.
intersection to bring this intersection up to an acceptable level of service.
2. The Developer i the owner/developer of certain real property generally located
within the SR 27 (Pines Road) and Mansfield Road corridor north of Interstate 90 legally
described in Exhibit "A" ("Property").
3. The Developer is developing the Property for residential and/or commercial uses
(the "Development'} which «~11 increase traffic congestion and directly impact existing
transportation infrastructure along ehe Pines/Mansfield cvn idor from and including the
on- and ofl=ramps at I-90. Mitigation of these impacts will be required as part of the
development of said property.
4. The Parties are desirous of entering into an Agreement which provides for the
payment of a proportionate share of the Project in consideration for the allocation of a
specified number of P.ivl. Peak Hour trips and mitigation of traffic impacts associated
with the Development.
1
~ualchan lnvestrnents S; ~lnc., Mitigation A~;recment ~( ,
PineslMansi=teld itoad ConStr~JCtiOn Project ~ " Page 2 of 6
5. "I'hc lleveloper recognizes the need to improve the traffic congestion i.n the
Pines/Mansfield corridor and has agreed to financially participate in the Froject by
contributing apro-rata share of the required local matching funds. The Developer's pro-
rata share is based on the total number of trips previously estimated for the Development.
6. Pursuant to RC~V 43.210.060, and RC~~i~ 82.02.020, the City has the authority to
allow a payment to mitigate a direct impact that has been identif ed as a consequence of a
proposed development. The City (1) has identified future road projects necessitated by
planned development in certain areas o f the Cih=; and (2) has identified a reasonable
relationship between impacts generated b}= the Development to the transportation system
and the financial contribution toward those impacts.
7. 'T'o nvtigate the direct impacts of the 1evelopment upon existing transpartation
facilities, the Parties are voluntarily entering into this Agreement pursuant to RC~~'
82.02.020.
8. It is intended that this Agreement provide fields in order to nitigate the direct
traffic-related impacts of the trips resultin; from. the laeveloprnent.
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P9Publz Wwka~Capita! Prot''stslPines•binasfid8dtitigEtion ggjccnems5bfuigptian AgTC~cnsl~9FfIGATIOT AGAEEi~t~T$ Q~!chan.Feu!.dor_
' ' ' Qualchan Investments S} `~~nc., Mitigation Agreement ~ ~ J
Pineslfytansfield Roatl Construction Project ~ Psge 3 of 6 ~_;
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NO~V T:1=CER.IIFORE in consideration of the muh~al covenants and conditions hereafter ~ °~ ~~ o
set forth, the Developer and the City hereto agree as follows: `nom m Q
l.. Vciluntary Agreement. This Agreement, including all attached documents; is a ~ ~e
voluntary agreement as that term is used in RC~V 82.02.020. The nutigaeion fees
charged herein are proportional to the traffic-related impacts generated by the
Development. The parties acknowledge that the capital project is reasonably j
necessary to mitigate the direct traffic impact of the Development. In the event this ~~
mitigation agreement is determined by a court to be invalid; the City shall refund the I ~~
unexpended portion of nutigation fees. 1~ollowing a termination of this agreement the ~
Developer shall, as reasonably required, mitigate the duect traffic impacts of the ~ ~~
Dcvelopmen.t through the State F,nvmnmental Polic}~ Act. ~
~~~
2. i'roiect Funds. the Project is being fitnded from several sources including, the ~ ~;
\~Vasltingion State Department of Transportation (tiVSDOT), the "1'113, the SRTC, the ~
City, and private developers. Funds from ~VSDOT; TIB, SRTC and the City have ~
been obligated. See "l;:xhibit 13". '
3. Mitigation Fee. The Developer shall pay $4,926; ($303.4b per P.~9. Peak I-lour
trip), which has been determined to be the Developer's contribution to the 1'rojeet for
mitigation of future trafi:ic impacts related to the Development. This traFi•ic
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
de{initive project. The Developer agrees to pay the mitigation fee prior to the City's
issuaaice of a building a building permit for development of the Property or three
years from the date the parties execute this Agreement, whichever comes fast. A
letter of credit, savings assigrunent or set-aside letter, or other appropriate mechatusm
that gives the City a unilateral right to access the funds pursuant to this agreement
fio>n a f nancial institution shall be provided to the City no later than :h'cbruary 25,
2005. All fees paid by the Developer shall be used as reimbursement to the City For
the local match required for the 1"l13 and SRTC ~•ants related to the design, right-of-
way acquisition, and construction of the Fmjecl.
5. Site Development. F3uilding permits u~ll be issued for the Development when 1) this
agreement has been executed by the Developer and the City, and 2) ehe 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.
>/xecution of this agreement releases the Developer from the requirement of
constructing frontage improvements on the Property; provided said frontage
improvements are included in the Project. If frontage improvements are not included
r^;1Put:tSc tiYO~k54Caplial Projew5': inud.lan~ielQ~thiguloa A,gratr.~ :s1.'dicigMion P.yocasatsV.llTIGAT10:1 ACRL•E.~1E~'I'S Qwlehnn-F'wl.dac
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Qualchan investrents St. .l~Inc., lvliti~ation A~reernent `~' ~~~ '
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Pines/iVlansfield Road Constructron Project Page 4 of 6
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i.n the Project, the 17cveloper is responsible for constructing frontage improvements ili
addition to paying the nutigation fees. ~ ° m ~;
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6. Comnliancc with RCW 82.02.020. Payment collected by the Cit}r will. be held in a ~ a
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mitigation fee reserve account and ma}~ only be expended to fund the design, right-of= ~~ m N
way acquisition; and constniction of the Project. Payments shall be expended within
five years of collection. "I'hc City shall be entitled to rcimbtusement from the
mitigation fee reserve account for any fields it may expend for the design, right-of--
way acquisition and construction of the Project prior to the collection of the fee. tiny ~
funds in the nutigation fee reserve account not expended within five years shall. be ~
refunded by the City with interest as provided i.n R.CW 82.02.020. ~
~
7. Committed P.M. Peak Hour Trills. The City agrees to reserve up to a total of 18l ~
P.i\~1. Pock Hour trips for the Property until the Development is complete, provided ~ ~_~
such reservation complies with all federal, state and local laws at the time application ~ ~~~-
:for a building permit is made. "Complete" is defined as having received all
goveriuilental permits and approvals necessary to constrict and permanently occupy ~~
the Development. Tf the total number of P.iv1. Peak Hour trips for the Development ~_
exceeds the total number of reserved trips noted above, a new traffic shady shall be
provided to determine if additional traffic mitigation is required.
8. Concurrence: In accordance with the City's adopted concurreney standards pursuant
to 12C~V 36.70A; the P.lvl. Peak 1-Tour trips mitigated herein. shall he considered to
have satisf ed conc~u~rcncy from the. Development as provided in paragraph 7. Any
remaininD capacity shall be available to the general public.
9. 1\otice: All communications, notices or demands of any hind which. a party under
this Agreement is required or desires to Hive to any other party shall be i.n ~~Titing and
be either (1) delivered personally, (2) sent by facsimile transmission Frith a.n.
additional copy mailed first class, or (3) deposited in the U.S. mail, certified mail
postage prepaid, return receipt requested and addressed as follows:
Lf to the City: City of Spokane. Valley
].1.707 ~. Sprague Ave., Suite 10~i
Spokane Valley, WA 99206
Fax: (509) 921-1008
Attn: City Manaer
If to the 17eveloper: Bryan Stone
Qualchan lnvestlnents Spokane, Inc.
104 S. Division St.
Spokane, OVA 99202
P;~~'u6lic W'arksSCapiL] Projoets~3'ixs-Msaft~5~\5it~tiun AgrccmcntSbli:igation A~rxr~:ts~\QTIG.ATiON AGREJ:NkNTS Qual~ia.~-Final.doe
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Qualchan In~~estments S}. l ~, Inc.; litigation Agreement ~~ l
Pir~eslMansfield Road Construction Project Page. ~ of G
10. Successors. This Agreement shall be binduig on and inure to the benefit of the
successors and the assigns of. the .Parties.
11.. (i)yernin~ La~~°. This Agreement shall be construed in accordance with the laws of
the State of ~~~ashington. Any action 1'or enforcement of this Agreement shall be
brought in a court of competent .jurisdiction in Spokane County; Washington or as
otherwise provided by statute.
12. Modifications. l~To modification or amendment of this Agreemeni shall be valid until
the same is reduced to ~~7iting and executed v~~t?i the same formalities as the present
Agreement.
13. `Waiver. No officer, employee, agent or otherwise of the City has the po«~er, right or
authority to waive any of the conditions or provisions to this Agreement Flo waiver
or any breach of this Agreement shall be held to be a waiver of any other or
subsequent breach.
14. Representation. This Agreement forms a filly integrated agreement between the
Parties. 1\TO other understandings, oral or other rise, regarding the subject rnattcr of
this Agreement shall be deemed to exist or to bind any of the Parties hereto. This
ab Bement shall meet the mitigation requirements for directtraffic-related impacts of
the Development within the Project linuts as described in the Project description in
Section 1 of the Recitals and as identified and documented in the City file(s)
referenced in Section 8 of the Recitals. Tlus a~•eement shall not supersede any other
conditions of approval not directly related to traffic-related impacts of the
Development within the Project limits.
All Parties have read and wldcrstand 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.
15. Authori ~. 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.
Pg946938
U . ~'fitiE T, I Y _ Y _ . 8nokane Co, 0WA I oP
P;VwL~'m Worl-s'.Capital Projan~Pines-hlraslkld~Citigneinn Agxemcnt~Atiiigaroon A~cemtntsL4lCl'rGATIOIX AGRE~4EN7'S Qualchan-Fi.-aS.tlx
' ~ ~ ,' Qualchan Investments SE. Inc., Mitigation agreement ~`~
' Pines/e`~ansf eld Road Construction Project Page 6 of b
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the Parties lave executed this Agreement this _~ day of
QUALCIIAl\i INVESTIMI/fijTS SPOF:r-BNB, INC.
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John Stone. President
STATE OF ~~'ASI-ITNGTON )
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County of Spokane )
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On this _~~ day of ihY'l~~ 2005 before me; the ~~.,
undersigned, a 1\'otary Public in turd for the State of «~ •hngfon, du]y commissioned and ~ ~j
sworn, personally appeared ~1'~.i-~ ~'fiUJ~~~ to me kno~~vn io be the
fni'~S 1!~'+oYl ~~ of_~~js~~C L~r,+~--~ fi~c~~ fn~c.~f~ ~~'l~d~:c?~~~'. /hc • the
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corporation. that executed the foregoing instrtuncnt; and aclnow~led;ed the insi~-ument to be
the free and volunta~}~ act and deed of tl;!e corporation, for the uses and purposes therein
mentioned, and on oath stated that he is authorized to execute the instz-ument.
~~~1T1\rES S , icy hand
certificate above written.
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CITY SY~~~E VAL
llavid Mercier, City Manager
and official seal hereto affixed the day and year in this
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°Al~ ~ 13LI `, iii and for the State of
~~l~ashington, residing at ~~oO~Qrle~:~~
Ivry commission expires: _(~ ~ - may- p ~'
Primed Name
A1~=E : • RO O~ORM:
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hris Ba.inbridgc; City Cler Cary 'skell, ~pu City Attorney
P:'~Pulic K'ocksSCapiLii Pmjew'~Pine~-Ma25fi~1dLKi~frf+tion Apj~men~Afnigprinn Ageemenu~2>flTIGATtON AGitEL•MEYiS Qualeh~n-F"ieal.doe
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,k(l`y/J\I Exhibit "A" ?~;_
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10-25-44 S2o 213RO~DS OF W60RODS OF NW1/4 OF NW1/4 8~ N13 1/3RODS OF W60RODS OF SW114
OF NW1l4 EXC CO RDS
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PineslNEansfield Cost E stimate
PE ROW Construction Totals
City Portion - Mansfield Ave. (3-lane Section)
Preliminary Engineering $75,622
Sons investigation $15,000
Right-of-e-•ay 56fl0,000
Project Signing 52,000
Contingencies - i0iu $75,622
Constn,ction Engineering - 10% S75,822
Gonstrucfion - 109b $756,220
Environrnentallh4is~c. Enq 515 393
SvbUotels $107,015 $600,ODD $3D9,464 $1,616,479
WSDOT Portion
Design Engineering 5200,000
Right-of-way {Euclid) $25,DD0
ROW -Pines SSOD,000
Cons~uckion S1 570 464
Confingpn_i25 558,745
Sales Tax - B. i °.U $123,158
Cflnstn,ction En~ineerinq 16°6 $262 979
Subtotals S24D,D00 $125,DOD $ 2,022,34S.D0 X2.347.348
TOTAL $307,015 $725,000 :2,931,810 $3,963,825
Added 550,O+J0 Per revised estimate from WSDOT for additional flagging required at RR crossing,
TIB S 2,1x3,561 559b
Develop?rs $ 499,735 13%
City $ 55,000 1 °,o
1NSDOT 5 55,000 1
Ctd1AQ _ $ 1,160 SDO 29%
Total $ 3,903,856 10D%
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5194593
Pages 9 of 9
03/=it2605 Nc~13P
Spokane Co, G(r4
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