RESOLUTION NO. 739
A RESOLUTION OF THE CITY OF UNIVERSITY PLACE, WASHINGTON, APPROVING A PURCHASE AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF UNIVERSITY PLACE AND VERUS PARTNERS, LLC FOR DEVELOPMENT OF UNIVERSITY PLACE TOWN CENTER
WHEREAS, the City has been engaged in a planning and development process for many years to create a visually attractive mixed-use town center to serve as the civic and commercial focal point of the community. In 1998, the City adopted a Comprehensive Plan and Land Use Map that called for the creation of a town center; and
WHEREAS, in 1999, following a series of public meetings, design workshops and public processes, the City adopted a town center plan that established a vision for redevelopment of the City’s central business area and which includes the following core objectives and strategies: (i) create a high quality comprehensive integrated retail, commercial and residential anchor for downtown University Place; (ii) create a special identity and gathering place for the City and its residents with access to downtown businesses; (iii) create a visually attractive and pedestrian oriented space in the downtown area; (iv) enhance public security and provide City residents with additional housing opportunities through the introduction of multi-family residential buildings in downtown; (v) encourage tourism; and (vi) revitalize the business district by creating a development which will improve the financial stability and general economic vitality of the City, preserve jobs, attract additional private investment in downtown and generate additional sales and property tax revenue for the City; and
WHEREAS, in 2002 and again in 2007, the City Council adopted a five-year Economic Development Strategic Action Plan; the Council also established an Economic Development Task Force to promote business growth and development within the City’s business districts to ensure an economically sustainable future. The Economic Development Task Force and the Strategic Action Plan identifies as one of the goals of the City the creation of University Place Town Center, with a mix of residential, commercial, cultural, community, public and open spaces (the “Town Center”). The development concept for Town Center is a mixed-use neighborhood that creates an integrated retail and residential center in the City; and
WHEREAS, pursuant to Ordinance Nos. 409, 469, 470, and 532, the City amended its Comprehensive Plan to provide for a Town Center overlay zone, adopted design standards and guidelines for the overlay zone and established a Planned Action Area within the overlay zone (the “Town Center Plan”). This area consisted of 24 lots of real property totaling approximately 31.7 acres of size located on the east and west sides of Bridgeport Way W. roughly between 35th Street and 38th Street. The City also adopted various amendments to its zoning code pertaining to height, density, setbacks and the application of design standards and guidelines in the overlay zone. The City completed and recorded the University Place Town Center Binding Site Plan in 2007, which was amended and recorded on September 18, 2009, under Pierce County Auditor’s file number 2009091815003 (the “BSP”); and
WHEREAS, in furtherance of the Town Center Plan, the City, over the course of several years, acquired and currently owns certain lots located within the Town Center Planned Action Area which are depicted on the BSP and referred to as Lots 1, 2, 3, 4, 7, 8, 9, 10, 11 and 12, and Tracts A & B, and the public right of way in and about the foregoing (the "Town Center Property"). The Town Center Property was acquired by the City specifically for the development of public facilities and private commercial uses to fulfill the goals of the Town Center Plan; and
WHEREAS, since acquiring the Town Center Property, the City has diligently pursued achievement of the goals of the Town Center Plan. The City has completed major site preparation work on Town Center Property to prepare it for public and private development including construction of
utilities, podium decks, more than 500 stalls of structured public parking (the “Town Center Garage”), a public plaza, public open space and street and sidewalk improvements; and
WHEREAS, in 2006, the City entered into an Agreement with the Pierce County Rural Library District for development of a joint Library and Civic Building in Town Center. The new Library/Civic Building is complete and open; and
WHEREAS, pursuant to the goals of the Town Center Plan, the City has for several years sought to convey all or portions of Lots 1, 2, 3, 4, 7, 8, 10, 11 and 12, within the Town Center Property for private investment and development. The City has conducted public request for proposal processes and listed the properties with a commercial real estate broker. One key element of the City’s vision is the development of a national commercial retail anchor within Town Center; and
WHEREAS, Lots 8 and 10 are successfully under development as the Clearview 100 and Latitude 47 commercial-residential mixed use buildings, with the Clearview 100 building completed and the Latitude 47 building, and Lot 10 parking garage are in progress; and
WHEREAS, Developer is a developer and operator of high quality retail facilities. The Developer desires to acquire Lot 7 of the Town Center Property (the “Lot 7 Property”) identified as Lot 7 on the BSP for purposes of constructing a retail anchor facility of approximately 38,000 square feet core/shell building for an anchor retail facility and related exterior structures and site improvements (i.e., parking and landscaping) thereon (the “Phase 1 Project”) and to also acquire the rights to continue development in phases on Lots 1, 2, 3, 4, and 11 (collectively, the “Phased Properties, and individually, the “Phased Property”) for future acquisition and development for additional commercial uses as provided in this Agreement. The construction and operation of such commercial facilities by the Developer would be consistent with, and in furtherance and fulfillment of, the Town Center Plan; and
WHEREAS, as described in greater detail in the Agreement, consideration from the Developer to the City for acquisition of the Lot 7 Property and the right to acquire the Phased Properties includes cash and the obligation to construct certain improvements on the Lot 7 Property. The University Place City Council has considered and determined that the Developer is providing sufficient consideration for acquisition of the Lot 7 Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UNIVERSITY PLACE, WASHINGTON, AS FOLLOWS:
Section 1. Incorporation of Recitals. The recitals are hereby incorporated herein as if set forth in full.
Section 2. Legislative Determination of Consideration. The Council of the City of University Place has considered the proposed transaction, including the consideration to the City to be provided by Verus Partners, LLC, including cash and the obligation to construct certain improvements on the Lot 7 Property, and in future phases on the Phased Properties and hereby makes a legislative determination that the consideration for this Agreement is sufficient, appropriate and in the best interests of the public.
Section 3. Approval of Form of Documents. The City Council hereby approves execution of the Purchase and Development Agreement in substantially the form of the documents accompanying this Resolution.
Section 4. Completion of Transaction. The City Manager is authorized to take and execute any additional measures or documents that may be necessary to complete this transaction, which are consistent with the approved form of documents attached, and the terms of this Resolution.
Section 5. Effective Date. This Resolution shall be effective immediately upon adoption by the City Council.
ADOPTED BY THE CITY COUNCIL ON NOVEMBER 4, 2013.
Ken Grassi, Mayor
Emelita Genetia, City Clerk
APPROVED AS TO FORM:
Steve Victor, City Attorney