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Home My WebLink About97-109Resolution No. 97-109 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND REAFFIRMING THE CITY'S COMMITMENT TO RENT INTERIM ADMINISTRATIVE OFFICE SPACE IN THE REDEVELOPED WATERMAN-KATZ BUILDING, EXTENDING THE OCCUPANCY DATE, AND AUTHORIZING THE MAYOR TO NEGOTIATE AN AMENDMENT TO THE "COMMITMENT TO RENT" LETTER TO EXTEND THE OCCUPANCY DATE The City Council of the City of Port Townsend, Washington, does resolve as follows: WHEREAS, on June 23, 1997, by Resolution No. 97-78, the Port Townsend City Council approved a "Commitment to Rent" letter, establishing the City's commitment to rent administrative office space within the renovated Waterman-Katz Building, in accordance with the terms and conditions stated in the letter; and WHEREAS, in Resolution No. 97-78, the City Council adopted recitals and findings supporting the City's decision to rent administrative office space in the renovated Waterman-Katz Building. The Council hereby incorporates by reference within this Resolution all recitals and findings contained within Resolution No. 97-78; and WItEREAS, the project proponent of the Waterman-Katz project (Ballenas Project Management, Ltd.) has prepared building and engineering plans for the building renovation project. However, as a consequence of the time needed for structural engineering design work, the time required for the City's Historic Preservation Committee to review the proposed plans, and time needed for the City's Building and Community Development Department to review the plans, the anticipated February 1, 1998 occupancy date likely will not be met; and WHEREAS, the City Council has heard many comments from the Port Townsend community in response to the City's decision to lease space in the renovated Waterman-Katz Building. For the reasons stated in Resolution 97-78, the Council remains firmly convinced that the decision to rent space in the renovated Waterman-Katz Building is sound, and is strongly supported by City policy direction developed over many years; and WHEREAS, the Council reaffirms its previous findings in Resolution 97-78 that the City's participation in the redevelopment of the Waterman-Katz Building advances important City policy objectives, falls squarely within the direction of the Comprehensive Plan to promote downtown historic preservation and revitali:,ation, and provides the City with a unique opportunity to address pressing needs for improved public service while promoting the historic preservation and economic development of Port Townsend in a concrete, meaningful and positive way; and WHEREAS, the City Council believes that Ballenas has made substantial progress in the redevelopment project, and that a two-month delay in occupancy is reasonable. However, the Council also emphasizes that the City has an imperative need to resolve administrative space ncexls; that the City requires predictability in its budgeting for these needs; that the City will need to provide reliable notices to current lessors of existing City administrative office space to terminate existing administrative office leases; and that a reasonable final date for occupancy is NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Port Townsend as follows: 1. The Port Townsend City Council hereby reaffirms its intent and commitment with Ballenas Project Management Ltd. to lease interim administrative office space within the renovated Waterman-Katz Building, in accordance with the terms set forth in the "Commitment to Rent" letter, as amended by this Resolution. 2. The City Council hereby approves the following amendment to the "Commitment to Rent" letter: 10. Occupancy. The building will be ready for occupancy no later than April 1, 1998, or a date five months after issuance of the building _trermits for the improvements~ whichever date is later; provided, that for e~qch day of delay in occupancy beyond the date stated herein that is ean~ed by Ballenas or its contractors; agents or employees: Ballenas shall provide the City with one day of free rent. 3. The City Council authorizes and requests the Mayor to negotiate an amendment to the "Commitment to Rent" letter, and forward the same to Ballenas, requesting that Ballenas provide the City with a signed acknowledgment of the letter, amending Paragraph 10 as provided herein. ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor on this 6th day of October, 1997. Attest: Pam Kolacy, ~it~ ~ 10/02/97 CA:tlm/res/wkatz2. res 'e ~cCulloch, Mayor -2- Res. No. 97-109 c of the Mayor CITY HAIL Julie McCulloch MAYOR October 7, 1997 PORT TOWNSEND, WA 98368 (360) 385-3000 Mr. Peter Newall, President Ballenas Project Mgr. Ltd. 1747 Boundary Road Vancouver, B.C., Canada V5M 3Y7 Re: Waterman Katz Building -- Port Townsend's Amendment to June :Z3, 1997 Commitment to Rent Letter Dear Mr. Newall: Pursuant to Port Townsend Resolution Number 97-109, adopted on Monday, October 6, 1997, the Port Townsend City Council has authorized me to negotiate with Ballenas Project Management Ltd. to amend the "commitment letter" dated June 23, 1997. The City of Port Townsend has reconfirmed its intention to lease a portion of the Waterman Katz building, located at 701 Water Street, Port Townsend, Washington. The Council has agreed to amend the occupancy date to provide Ballenas reasonable time to complete the improvements set forth in the commitment letter. In accordance with Resolution No. 97-109, Paragraph 10 of the commitment letter is hereby amended as follows: 10. Occupancy. The building will be ready for occupancy no later than April 1, 1998, or a date five months after issuance of the building permits for the improvements, whichever date is later; provided, that for each day of delay in occupancy beyond the date stated herein that is caused by Ballenas or its contractors, agents or employees, Ballenas shall provide the City. with one day of free rent. With the exception of Paragraph 10, all terms of the commitment letter dated June 23, 1997 remain the same. Please understand that the City must make budget and contractual arrangements in anticipation of the occupancy date set forth in Paragraph 10. Therefore, time is of the essence, and Ballenas understands that any delay in occupancy will result in losses to the City. We anticipate addressing any further contractual issues regarding the terms of the lease and the specifications of tenant improvements (if Ballenas undertakes this work) in subsequent negouauons. The Council reaffim~s that when Ballenas purchases the building and restores and improves the building as provided above and in the June 23 commitment letter, as may be amended by the lease and any construction contracts, the City will lease the space in conformance with the terms stated therein. Mr. Peter Newall October 7, 1997 Pa~e 2 By acknowledging this letter, Ballenas understands that notwithstanding any other assurances provided in this letter or in the June 23, 1997 letter, this letter is provided by the City in its legislative, proprietary capacity, referring to the City's commitment to rent space within a building only, and is not to be construed as providing any assurances or representations regarding any particular outcome in any permitting processes. The appropriate department(s) of the City will continue to review all development and building permit applications in a routine, "arm's length" fashion, with the same scrutiny and regulatory standards as accorded to any other private or public sector project. The City Council remains enthusiastic about the opportunity to participate in the renovation of this important historic building while also addressing the City's very substantial needs to provide acceptable administrative office space which will better enable us to serve the public. We look forward to continuing working with you on this important project. Very truly yours, Ju[j~e~McCulloch, Mayor ACKNOWLEDGED AND ACCEPTED as above written this ~z'/~ day of October, 1997: Ballenas Project Managemem Ltd. Peter Newall; President ( copy: City Councilmembers Michael Hildt, City Administrator Timothy L. McMahan, City Attorney Bruce Freeland, BCD Director Bob Wheeler, Public Works Director Michael Lagarsky, City Treasurer [tlnffltr { new¢li2.doe } ]