ORDINANCE __________

AN ORDINANCE relating to the contract rezone granted by Ordinance 115663, which amended Plat 40W, page 10 of the Official Land Use Map to rezone property located at 700 Union Street from Downtown Office Core 2 (DOC/2) to Downtown Office Core 1 (DOC/1); accepting a Fourth Amended Property Use and Development Agreement in connection therewith.

WHEREAS, Ordinance 115663 accepted from the Washington State Convention and Trade Center (WSCTC) an Amended Property Use and Development Agreement; Ordinance 117006 accepted a Second Amended Property Use and Development Agreement; Ordinance 117095 accepted a Third Amended Property Use and Development Agreement (collectively referred to as the "PUDA"); and

WHEREAS, Ordinance 117006 waived DOC/1 bulk requirements to permit the development of an additional 705,000 square feet of gross floor area on the portion of WSCTC's property which would remain after conveyance of the Eagles Building site ("Block 65 Remainder"), based in part on the Owner's contribution to low-income housing at the Eagles Building qualifying for housing bonus, and through its receipt of transferable developments rights (TDRs) from the Eagles Building under the LowIncome Housing/Landmark Performing Arts theater TDR provisions of the Land Use Code; and

WHEREAS, on May 3, 1994, WSCTC transferred a portion of Block 65 (the "Eagles Building Site") and $2.7 million to the Eagles Building Limited Partnership ("EBLP") formed by A Contemporary Theatre and the Seattle Housing Resources Group; however WSCTC retained 75,997 square feet of gross floor area of Landmark Performing Arts Theater / Housing TDR's ("TDR's); and

WHEREAS, on May 3, 1994, EPLP delivered a Performance Agreement to the City agreeing to maintain the Eagles Building as a Landmark Performing Arts Theater and to develop 44 units of low-income housing in the building thereby earning 264,043 square feet of Housing Bonus ("Housing Bonuses"); and

WHEREAS, on May 3, 1994, a Linkage Agreement was signed by WSCTC, the City, and EBLP linking the 75,997 square feet of TDR's and 264,043 of Housing Bonuses to the Block 65 Remainder as legally described in the Linkage Agreement recorded under King County Recording No. 9405041039; and

WHEREAS, based on the recommendations of the City and State task force, the Washington State Legislature authorized the expansion of the convention center facility in downtown Seattle and in order to finance the project, the Legislature required that $15 million in additional funding be obtained from public and private sources;and

WHEREAS, the City of Seattle signed a Memorandum of Agreement ("MOA"), pursuant to which the City committed $7.5 million to the project and contemplated the possibility of a future transfer of development rights including the Housing Bonuses from the Block 65 Remainder to the "North Site" for hotel development as part of the convention center expansion project; and

WHEREAS, the participation of private co-developers was necessary in order to fund the project, and after a public bidding process, the R.C. Hedreen Company ("Hedreen") was selected as one of the codevelopers and WSCTC assigned and conveyed to Hedreen WSCTC's interest in the TDRs and Housing Bonuses; and

WHEREAS, Hedreen did not use the Housing Bonuses or TDR's in the development of the hotel component of the expansion project; and

WHEREAS, the parties desire to amend the Linkage Agreement to permit the Housing Bonuses and TDRs to be transferred off of the Block 65 Remainder for Hedreen's use on other downtown sites and desire to amend the Property Use and Development Agreement to reflect the fact that the Housing Bonuses and TDRs on the Block 65 remainder have been transferred; and

WHEREAS, SMC section 23.76.058B provides that contract rezones may be modified by agreement between an Owner and the City, provided the amended agreement shall be approved by the City Council; and

WHEREAS, SMC section 23.76.058B provides that amendments which are within the spirit and general purpose of the prior decision of the Council may be approved by the council by ordinance after receiving any advice when it deems necessary, and after providing notice and an opportunity to comment to persons who submitted written and oral comments on the original rezone decision; and amendment of the PUDA to delete the condition is within the spirit and general purpose of the Council's prior decision to grant the rezone; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The Fourth Amended Property Use and Development Agreement that was submitted to the City by the Washington State Convention and Trade Center, owner of the property, by which said owner agrees to certain restrictions upon the property to ameliorate the adverse impacts of uses and development otherwise permitted in the Downtown Office Core 1 (DOC/1) upon the property in the vicinity, is hereby accepted and attached to this ordinance as "Exhibit A."

Section 2. The City Clerk is hereby authorized and directed to file a copy of said Fourth Amended Property Use and Development Agreement and of this ordinance at the King County Records and elections Division, to file the original of the Fourth Amended Property Use and Development Agreement with this ordinance at the City Clerk's Office, and to deliver copies of the same to the Director of the Department of Design, Construction and Land Use and to the King County Assessor's Office.

Section 3. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of ____________, 2002, and signed by me in open session in authentication of its passage this _____ day of _________________, 2002.

_____________________________________

President _______ of the City Council

Approved by me this _____ day of _________________, 2002.

___________________________________________

Mayor

Filed by me this _____ day of ____________________, 2002.

___________________________________________

City Clerk

(Seal)

JBB:jbb

04/04/02

WSCTC rezone/4PUDAord.

(Ver. 1 )

When Recorded, Return to:

IMPORTANT: DO NOT REMOVE TABLE ROWS.raftd

Judith B. Barbour

Civil Division

Office of City of Seattle Attorney

600 4th Avenue, 10th Floor

Seattle, WA 98104

This first section is a Cover Sheet only (Add'l $1.00)

Note: 3-inch top margin required on page 1 in Washington (return address inclusive).

1-inch side and bottom margins.

Standardized Document Requirements Effective 1-1-97 (RCW 36.18 and 65.04)

MANDATORY FORMAT d

DISCUSSION DRAFT

FOURTH AMENDED

PROPERTY USE AND DEVELOPMENT AGREEMENT

THIS INSTRUMENT ("Agreement") executed this date in favor of THE CITY OF SEATTLE, a municipal corporation ("City"), by the WASHINGTON STATE CONVENTION AND TRADE CENTER ("Owner") of the property described below.

WHEREAS, Ordinance 115663 rezoned the following property at 700 Union Street, owned by Owner to Downtown Office Core 1 ("DOC-1"):

Block 65, A.A. Denny's 5th Addition to the City of Seattle as recorded in Volume 1 of plats, page 89, records of King County, Washington; and

WHEREAS, Ordinance 115663 accepted a Property Use and Development Agreement; Ordinance 116743 accepted an Amended Property Use and Development Agreement; Ordinance 117006 accepted a Second Amended Property Use and Development Agreement; Ordinance 117095 accepted a Third Amended Property Use and Development Agreement (collectively referred to as the "PUDA"); and

WHEREAS, on May 3, 1994, the Owner transferred a portion of Block 65 (the "Eagles Building Site") and $2.7 million to the Eagles Building Limited Partnership ("EBLP") formed by A Contemporary Theatre and the Seattle Housing Resources Group; however the Owner retained 75,997 square feet of gross floor area of Landmark Performing Arts Theater / Housing TDR's ("TDR's); and

WHEREAS, on May 3, 1994, EPLP delivered a Performance Agreement to the City agreeing to maintain the Eagles Building as a Landmark Performing Arts Theater and to develop 44 units of low-income housing in the building thereby earning 264,043 square feet of Housing Bonus ("Housing Bonuses"); and

WHEREAS, on May 3, 1994, a Linkage Agreement was signed by Owner, the City, and EBLP linking the 75,997 square feet of TDR's and 264,043 of Housing Bonuses to the Block 65 Remainder as legally described in the Linkage Agreement recorded under King County Recording No. 9405041039;

WHEREAS, EBLP has subsequently completed the restoration of the lowincome housing and theaters in the Eagles Building, and occupancy permits have been issued by the City;

WHEREAS, based on the recommendations of the City and State task force, the Washington State Legislature authorized the expansion of the convention center facility in downtown Seattle and in order to finance the project, the Legislature required that $15 million in additional funding be obtained from public and private sources;

WHEREAS, the City of Seattle signed a Memorandum of Agreement ("MOA"), pursuant to which the City committed $7.5 million to the project and addressed the possibility of transferring development rights including the Housing Bonuses from the Block 65 Remainder;

WHEREAS, the participation of private co-developers was necessary in order to fund the project, and after a public bidding process, the R.C. Hedreen Company ("Hedreen") was selected as one of the codevelopers and WSCTC assigned and conveyed to Hedreen WSCTC's interest in the TDRs and Housing Bonuses;

WHEREAS, the Expansion Project did not use the Housing Bonuses or TDR's;

WHEREAS, the parties desire to amend the Linkage Agreement to permit the Housing Bonuses and TDRs to be transferred off of the Block 65 Remainder and desire to amend the Property Use and Development Agreement to reflect the fact that the Housing Bonuses and TDR's on the Block 65 remainder have been transferred;

WHEREAS, the City Council has provided notice and an opportunity to comment on the Owner's request for an amendment, and has found that the amendment is within the spirit and purpose of the original rezone decision;

NOW THEREFORE, the PUDA is hereby modified as set forth herein, and Owner hereby covenants, bargains and agrees on behalf of itself, its successors and assigns that it will comply with the following conditions:

1. The Linkage Agreement will be amended to designate new receiving sites for the Housing Bonuses and TDRs consistent with SMC 23.49.012;

2. Upon the effective date of the amended Linkage Agreement, Section 2 of the Second Amended Property Use and Development Agreement shall hereby be deemed amended to reduce the permitted additional square feet of gross floor area from 705,000 to 364,960 square feet of gross floor area.

3. Owner represents and warrants that this Agreement has been duly authorized and when accepted by Ordinance shall be fully binding on Owner, and that no other party holds any interest in the Property.

DATED this ______ day of __________________, 2002.

OWNER

WASHINGTON STATE CONVENTION AND TRADE CENTER

James R. Ellis, Chairman of the Board

STATE OF WASHINGTON

COUNTY OF ___________

}

ss.

On this day personally appeared before me JAMES R. ELLIS, to me known to be the Chairman of the Board of the WASHINGTON CONVENTION AND TRADE CENTER, the Washington corporation that executed the foregoing instrument, and acknowledged such instrument to be the free and voluntary act and deed of such corporation, for the uses and purposes therein mentioned, and on oath stated that (s)he was duly authorized to execute such instrument.

GIVEN UNDER MY HAND AND OFFICIAL SEAL this _____ day of _______________________________, 2002.

Printed Name ___________________________________

NOTARY PUBLIC in and for the State of Washington, residing at ______________________________________

My Commission Expires ___________________________

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