HomeMy WebLinkAboutAgenda Packet 06/11/2002 (2)
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WAS H I N G-T 0 N, USA
AGENDA
CITY COUNCIL MEETING
321 EAST FIFTH STREET
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~ORT ANGELES
June 11,2002
SPECIAL MEETING - 7:30 p.m.
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A. CALL TO ORDER - Special Meeting (7:30 p.m.)
ROLL CALL -
PLEDGE OF ALLEGIANCE -
B. ITEMS FOR DISCUSSION -
1. Conference Center: Downtown Forward
Executive Committee and Lodging Tax
AdvIsory Committee concurrence with P.A.
Conference Center Review Team regarding
Conference Center Proposal by Ehm
ArchItecture
2. Agenda for June 15,2002, City Council
Retreat
3. Multi-Cultural Statement by City Council
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(a) Accept Ehm's Due DIlIgence Response, (b)
Authorize CIty staff to SIgn Letter of Intent, and
(c) Authorize City staff to negotiate an agreement,
committmg Lodging Tax revenues to the project
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Accept Agenda
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Accept Statement
C. ADJOURNMENT
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PUBLIC HEARINGS
Public hearings are set by the City Council in order to meet legal requirements pertaining to matters such as, land use permit applications, proposed
amendments to City land use regulations, zoning changes, annexations. In addition, the City Council may set a public hearing in order to receive
public mput prior to making decIsions which impact the cItizens. Certain matters may be controversial, and the City Council may choose to seek
publiC opmion through the public hearing process.
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NOTE: HEARING DEVICES AVAILABLE FOR T~OSE NEEDING ASSISTANCE
MAYOR TO DETERMINE TIME OF BREAK
June 11, 2002 Port Angeles City Council Meeting
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DATE:
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SUBJECT:
~ORTANGELES
WAS H I N G TON, u. S. A.
CITY COUNCIL MEMO
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June 7, 2e61
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MAYOR WIGGINS AND CITY COUNCIL ~
Timothy 1. Smith, Economic Development Dir~
Recommendation from the Conference Center Review Team, Lodging Tax and
Downtown Forward Advisory Committee's regarding consideration ofEhm Proposal
for a Conference Center.
Summary: Last year, the City implemented a Request for Proposal process to solicit the development of a
dedicated Port Angeles Conference Center facility. Proposals received were reviewed, with the Ehm
Architecture Proposal being selected as the "preferred proposal", subject to a "due diligence phase" during
which the continued review of Ehm's proposal would focus on several details which were not requested in the
RFP submittal process. The Conference Center Review Team has since worked closely with Ehm to analyze
his response to the issues of "due diligence" and has concluded that the response should be accepted as
"substantially complete". The Conference Center Review Team recommendation was presented to the Lodging
Tax and Downtown Forward Advisory Committee's. The Lodging Tax Advisory Committee and Downtown
Forward Advisory Committee each agreed to accept the Review Team's recommendation and to forward a
concumng recommendation to the City Council.
Recommendation: Accept the recommendations by the Conference Center Review Team, Lodging Tax
Advisory Committee and Downtown Forward Advisory Committee, that:
1. the Due Diligence Response from Ehm Architecture is "substantially complete",
2. staff be authorized to sign a Letter ofIntent (attached) to commit the subject City Lodging Tax
resources toward the Ehm proposal,
3. staff be further authorized to negotiate an agreement, subject to the Council's final
consideration and approval, to commit the subject City Lodging Tax revenues to the Ehm project,
pending receipt and final approval of the project's Marketinl! Plan, Marketinl! Bud~et and
Imnlementation Schedule.
Backl!round Last year, at the recommendation of the Lodging Tax Advisory Committee (L T AC) and chrection
of City Council, staff implemented a Request for Proposal (RFP) process to solicit a public/private partnership
for the development of a dedicated Port Angeles Conference Center facility capable of successfully attracting
groups of up to 450-500 people. The L T AC is a City advisory committee, prescribed by State law, which
includes representation from three local lodging businesses, three local tourism promotion groups, and two
Citizens-at-Iarge. The Conference Center RFP was developed with assistance and input by the LTAC,
Downtown Forward Advisory Committee (DF AC), Port of Port Angeles, Chamber of Commerce and other local
business associations. Advertisement of the RFP began last June, and ended on September 28th, 2001.
RFP Response and the Initial Phase of the Proposal Review Process
The RFP advertisement attracted the interest of nearly two dozen firms. Copies of the full RFP package were
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also sent to local area lodging establishments for their consideration of submitting a proposal. However, at the
closure of the submittal deadline, only two proposals were received by the City Clerk office. One proposal was .
received from Ehm Architecture for a hoteVconference center development on the Oak Street Site, and another
proposal was received from Ravenhurst Development for a remodel and expansion of the Landing Mall.
Following an initial "threshold review" by staff, both of the proposals were presented in a joint public
meeting/presentation of the City of Port Angeles and the Port of Port Angeles. At the direction of the City
Council and Port Commission, the proposals were then forwarded to an ad-hoc committee of the City's LTAC
(Conference Center Review Team) for a more detailed analysis and for the potential determination of a
"preferred proposal". The RFP review process was designed to progress to a more in-depth consideration and
potential negotiation phase following the determination of a "preferred proposal". To focus both public and
private sector resources, the "preferred proposal" review phase was set to occur over the course of a 45 day
"due diligence" time frame. The goal of this phase of the review process was to identify, negotiate and attempt
to substantially resolve specific issues such as project design, parking, land acquisition, deal points, availability
of total financing and/or other proposal specific issues.
RFP Review Team Recommendation on the "Preferred Proposal"
The RFP Review Team met on several occaSlOns between October and December 2001 in an effort to identify
the strengths and weakness of the two proposals received, and to deliberate on the potential selection of a
"preferred proposal" in accordance with the Evaluation Criteria.
Initial Review Evaluation Criteria
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5.
Compliance with Facility Requirements as outlined in the RFP
Compliance with Operations Requirements as outlined in the RFP
Estimated Return on Public Investment.
Likelihood for the Project to Achieve Long-term Financial Success.
Compliance with the Downtown Forward Plan as developed by the community and adopted by
City Council in 1997.
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At the conclusion of the initial review phase, the City Council concurred with recommendations by the Review
Team, L T AC, and DF AC to select the Ehm Architecture Proposal for the Oak Street Site as the "preferred
proposal" subject to the further clarification of several "due diligence" issues.
Ehm Architecture Proposal for Oak Street
Conference Center Review Team Initial Findmgs and Conclusions
Compliance with Facilities Program Requirements:.
./ Fully meets or exceeds location and facility requirements as outlined in RFP
./ New hotel with conferencing facilities and restaurant would be higWy competitive in conferencing
market
./ Fits with community's general vision for development of Oak Street site
./ Accommodates Waterfront Trail, public access to waterfront area and Estuary, adds parking
./ Design proposal suggests a great deal of flexibility subject to addition of overall costs
./ Some question reo quality of final concept and design, medium vs. higher end quality hotel
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Compliance with Operations Program Requirements:
Provides for an all "private sector" operating and marketing management team as opposed to public
resources involvement
Provides marketing leverage via nationaVworldwide marketing connection (Six Continent Hotels)
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Stated interest in P A unit to be flagship product that may launch replication of new chain of conference
center hotels
Some concern that ROI projects 13% return, when 15% is preferred
Some concern that marketing specifics are lacking
Return on Public Investment:
Although some costlbudget items are not fully defined, budget suggests some "slack" room capable of
absorbing other potential costs
Proposal seeks no more than $1 OOK annual lodging tax commitment subject to staying within proposed
budget
Considerably more leverage of public investment compared to other proposal under consideration
Good potential for increasing lodging tax revenues by raising average annual room rate due to new
construction of a waterfront hotel
Concern over lack of response strategy in the event of cost overruns
Likelihood for Achieving Long-Term Financial Success:
Development would be very competitive with similar conferencing facilities
Preliminary cost/revenue information is favorable - a more detailed look at this in next phase is required
Long-Term ownership and management commitment looks strong, but it is realized these kinds of
facilities are always subject to sale
Compliance with City/Community Vision for Downtown Development:
Proposal is exact match of Downtown Forward Plan vision of development on Oak Street site
Anchors west end of downtown waterfront and will promote more potentlal in-fill development along
waterfront and west SIde of downtown
Builder willing to consider further public input on final design
Will attract more people to downtown
Moderately high-end development
The "Due Diligence" Review Phase
The next phase of the review process centered on a more specific analysis of the "preferred proposal" and
focused on the clarification of issues which were identified in the initial findings and conclusions. Specific
request for clarification regarding the Ehm proposal for Oak Street included the following:
Preferred Proposal Due Diligence Phase
1. Substantial progress be made on the Pre-Design of the Building Structure(s) and Site
Improvements, which is acceptable to the City and which shall include descriptions of:
(a) interior and exterior design and finishes to assure high quality
(b) provisions for parking in accordance with City regulations
(c) preservation of public access to the current Waterfront Trail
(d) any other onsite or off site improvements necessary to meet anticipated
permitting requirements
(e) the option of building the conference center as a separate structure.
2.
Provision of a Business Plan Document acceptable to the City.
3. Provision of a Marketing Plan. Budget and Implementation Strategy, which supports the
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Business Plan and which is acceptable to the City.
4.
Successful Property AcauisitionlLease Negotiations with the
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(a) the Port of Port Angeles
(b) the WA State Dept of Natural Resources
(c) any other property owner for the acquisition and/or lease of Oak Street
Development Site and any other necessary properties.
5. Evidence that all Sources of Proiect Financing are available.
6. Provision of a Proiect Development Schedule
7. Development ofthe basic terms for a lease by the City of the conferencing facility, with a lease-
back or other operatmg agreement for marketing and operation of the conferencing facility
consistent with a viable marketing/operation plan.
Ehm initially responded to the issues of due diligence in a document submitted in early April, 2002. Copies of
that document were forwarded to the Review Team, Lodging Tax and Downtown Forward Advisory
Committees, and the City Council. At the concurrence of the various review groups, staff also solicited the
assistance of a professional, hospitality industry market analysis and project development firm (the Chambers
Group) to assist in the review of the Ehm due diligence document. A copy of the Chambers Group conclusions
(attached) identified several elements which required further information. Some of that further clarification has
since occurred to the satisfaction of the Conference Center Review Team, leading to their determination that the
due diligence response should be accepted by the City as "substantially complete". While the Review Team, .
L T AC and DF AC agree that most of the issues of due diligence have been satisfied, all parties including Ehm
agree and recognize that several "key details", especially relating to the Marketing Plan and Implementation
Strategy and final "deal structure" including complete project financing, still need further clarification before
any final contractual agreements to proceed with development of the project can be entered into.
Next steps:
Ehm has explained to the Review Team and staff that his efforts to fully respond to the remaining "key details"
are hindered by the lack of clear, documented evidence that the City, Port and DNR intent to go forward with
a proposal provided the remaining concerns are fully satisfied. He has told us that he needs an expression of
that commitment to fmalize his development team and to make a determination on who he will partner with to
assemble complete financing of the project. In an attempt to work through this issue the Conference Center
Review Team and staff have determined that it is reasonable to consider a "conditioned" intent to commit to the
project by (1.) agreeing that Ehm's Due Diligence Response has been "substantially met" with the exception
of specific items, and (2.) that through a Letter of Intent (attached) the City, Port and DNR could exhibit the
intent to each proceed toward final commitment conditioned upon the receipt and final approval of those specific
Items. A Letter of Intent has been drafted for that purpose, and assuming approval to sign the Letter of Intent,
Ehm will have the indication of commitment which he says he needs which wIll allow him to assemble and
submit to us the remaining details necessary for final negotiations of the proposed project.
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LETTER OF INTENT
This letter of intent memorializes the mutual intent of the parties to undertake specified actions in
furtherance of the development ofa motel, restaurant and convention center complex (the "project")
on the property hereafter identified All exhibits referenced herein are incorporated by such reference.
1. Parties. The parties to this letter of intent are: Pier Group L.L.c. or its assigns
("Developer"); The Port of Port Angeles ("Port"); The City of Port Angeles ("City"); and the
State of Washington Department of Natural Resources ("DNR").
2. Property. The property proposed as the project site and the current ownership thereofis
described in Exhibit 1 and depicted on Exhibit 2.
3.
Proiect. The project to be undertaken by Developer is generally described in Exhibit 3 and
the accompanying site plans and elevations (Exhibits 3A through~. It is acknowledged
the final design of the proposal is likely to be modified during environmental review and
permit processing, but that the principal components of the project as narratively described in
Exhibit 3 will not be modified without the consent of all parties hereto.
4. Land excham!e and boundary adiustment. The Port and DNR will pursue approval ofa
land exchange by the Board of Natural Resources (pursuant to RCW 79.90.457, WAC
332-30-170 and other applicable laws) whereby all right, title and interest of the DNR in
Parcel C as depicted and described in Exhibit 4 will be transferred to the Port in exchange for
transfer by the Port to DNR of all of its right, title and interest in Parcel D as depicted and
described in Exhibit 4. The Port and DNR also agree, contingent upon approval of the land
exchange by the Board of Natural Resources, to jointly seek a boundary adjustment from the
City for the land exchange herein described. The Port shall bear all survey and appraisal
costs, recording fees and all other expenses associated with the land exchange process and
boundary adjustment. An appraisal submitted by the port and reviewed for completeness by
DNR may be acceptable for determining values for this land exchange.
5. Port convevance. The Port will grant and convey to Developer good and marketable title to
Parcels A and C as depicted and described in Exhibit 4, together with a quit claim of any
interest the Port may have in improvements, including fill, situate on Parcels Band E as
depicted and described on Exhibit 4, for the total sum of One Million and NollOO
($1,000,000.00), all cash at closing.
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6. DNR lease Parcels Band D. DNR will enter into a new 55-year tidelands lease with
Developer for Parcels Band D as depicted and described in Exhibit 4. The rent to be charged
by DNR for Parcel B will be based upon the ultimate usage ofthe parcel in accordance with
formulas and examples set forth in Exhibit 5. The parties understand and acknowledge that
the rent to be paid for Parcel D shall at all times be non-water dependent rent as that term is
defined in applicable state laws and shall be in the initial amount specified in Exhibit 5 and
shall be subject to adjustment over time based upon changes in assessed value of the adjoining
upland parcel as more specifically described in Exhibit 5. The parties further acknowledge
that the rent to be paid by Developer for Parcel B is anticipated to be a combination of non-
water dependent and public access rentals. The formulas and examples set forth in Exhibit 5
are acknowledged to not necessarily represent the ultimate design and usage for Parcel B.
The parties acknowledge that final negotiation of usages and rents for Parcel B will be
conducted in conjunction with or at the conclusion of permit processes for the development of
the project. Use classifications for the state owned parcels leased to the Port or the Developer
shall be determined by DNR. The portions of Parcel B developed for public access to the
shorelines will be dedicated by Developer to such use and may be subleased to the City for
park purposes. Those areas so dedicated shall not be subject to payment of any rentals to
DNR so long as authorized under RCW 79.90.470. Said leases shall reserve to the Port an
easement for access for Port purposes to the harbor area lying north of Parcel B and the dock
located in the harbor area identified as Parcel F. The leases shall also reserve an easement for
public trail purposes in favor ofthe City in the area depicted on Exhibit 3 and Exhibit 4.
7. Conti2uoUS harbor area leases. Harbor areas abut Parcel B on the north and include an
area offilled harbor area and riprap approximately 75 feet in width (Parcel E on Exhibit 4)
and an existing pier depicted on Exhibit 4. The rent for the footprint of the riprap bulkhead
will be calculated at non water-dependent rates. The subject harbor area leases are legally
described in Exhibit 6. The Port will relinquish management of these harbor areas to DNR.
Thereafter DNR will lease the harbor areas depicted on Exhibit 4 as area F to the Port for
mixed uses, including water dependent, non water-dependent and public access uses, for a
new 3D-year term. It is anticipated the Port may sublease portions ofthis harbor area and
portions of the pier as depicted in Exhibit 4 to Developer for the 3D-year term. The Port shall
pay rentals for said harbor area lease from time to time as described in Exhibit 7. The harbor
area identified as Area E shall be leased by DNR to Developer for a new 3D-year term and
shall be dedicated to public access uses, subject also to easements reserved to the City and the
Port as identified in Section 6 above. A copy of the form for the proposed leases between the
Developer and DNR for ParceJs B, D and E are attached as Exhibit 8.
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8. City trail/park. Portions of Parcel B and Parcel E as depicted in Exhibit 4 may be subleased
by Developer to the City for public park and trail purposes. The areas anticipated to be
subleased to the City are depicted and described in Exhibit 3. Neither the City nor Developer
shall pay any rent to DNR for these public access areas as ultimately determined by DNR and
specified in the subject lease as being dedicated to public use.
9. Convention center. The City shall lease the convention center facilities described in
Exhibit 3 from the Developer for the sum of One Hundred Thousand Dollars ($100,000.00)
per year, to be paid from city lodging tax revenues. The City shall lease back the convention
center to Developer in consideration- of the Developer's agreement to operate, maintain and
market the convention center in accordance with the terms of the business plan document and
marketing plan budget and implementation strategy previously submitted by Developer to the
City and dated the _ day of , 2002, and the terms of a convention center
sublease which remains to be negotiated prior to closing.
10. SEPA compliance. The City shall act as lead agency for State Environmental Policy Act
review and compliance associated with all governmental actions contemplated herein.
11. Due dili2ence / 200d faith. The parties acknowledge Developer has: made "substantial
progress" on pre-design of the building structure and site improvements; submitted a business
plan document acceptable to the City; submitted a preliminary marketing plan budget and
implementation strategy acceptable at this stage to the City; provided satisfactory evidence
that project financing is available and provided project development schedule all as
contemplated by the letter of intent between the City and Ehm Architecture and dated January
30,2002 ("due diligence phase requirement letter"). The parties hereto further acknowledge
that execution of this letter of intent by all parties satisfies the remaining terms of said due
diligence phase requirement letter The parties mutually agree to pursue with good faith and
due diligence the closing of this transaction through signing of definitive agreements
consistent herewith. The parties hereto acknowledge that a number of matters pertinent to
the finalization of this transaction remain to be negotiated. Those items include, but are not
limited to, the following:
( a) establishing a schedule for permit processing and closing of the real estate
transactions identified above;
(b) final approval of the Developer's marketing plan, budget and implementation
strategy by the City;
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( c) development of final documents consistent with this letter of intent, to be
utilized at closing;
(d) development of mutually acceptable definitive plans to provide adequate
parking for the project;
( e) allocation of closing costs;
(f) approval by all parties of final design and acceptance by Developer of permits
as issued. "
12. Not a bindimr contract. Neither this document nor anything contained herein shall be
construed as an actual agreement or contract. This letter is not intended to have legally
binding effect, but is an expression of intent. By signing this letter the parties declare they will
deal in good faith towards the goal of reaching the future agreements discussed herein.
13. Counterpart si2:natures. This Letter ofIntent may be signed by the parties in counterpart.
PIER GROUP L.L.C.
PORT OF PORT ANGELES
By:
By: _
Its:
Its:
Date:
Date:
CITY OF PORT ANGELES
STATE OF WASHINGTON
DEPARTMENT OF NATURAL
RESOURCES
By:
By:
Its:
Its:
Date:
Date:
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OAK STREET PROJECT
Letter of Intent
Exhibit List
1. Legal description(s) of site (present Port and DNR ownerships)
2. Site map (present Port and DNR ownership harbor line, etc.)
3. Project description, site plans and elevations (3A - ~
4. Site map and legal descriptions for Parcels A-F (include trail)
5. Rent formulas for parcels Band D
6. Legal description of Parcel F
7. Harbor area rent formulas for Parcel F
8. Form of lease for parcels B, D and E
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EHM
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Tim Smith
C Conference Review Committee
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May 16, 2002
RECEIVED
Timothy J. Smith, Economic Development Director
City of Port Angeles
P.O. Box 1150
Port Angeles, WA 98362
MAY 2 0 2002
City of Port Angeles
RE: Response to The Chambers Group's Due Diligence Response Analysis
Dear Mr. Smith;
I am in receipt of The Chambers Group's analysis of my Due Diligence Response.
As you know, the Due Diligence document that you prepared stated your request for significant progress
toward satisfaction of the various issues rather than absolute satisfaction of those issues. Consequently,
I feel that I have largely demonstrated significant progress toward satisfaction of most issues identified.
The following narrative will further elaborate upon this point, and follows the outline utilized in the subject
analysis:
PreDesign and Site Improvements
a. Desion and Finishes - Regarding the interior and exterior design of the facility, absent of an accepted
deal with the City it is premature to further elaborate on any design feature of the project. The
information provided to the City reflects significant progress toward completion of the design, and
therefore meets the intent of the Due Diligence criteria. The design and the guestroom configurations,
which will largely be dictated by the franchise offeror and the management entity, will be completed
promptly upon reasonable assurance that the project will proceed; in essence, upon acceptance of
the Due Diligence Response by the City Council.
b. Parkino Provisions - I have proposed a reduction of parking onsite in response to numerous requests
for more public amenities along the Waterfront Trail. This parking modification results in a total of 127
spaces provided onsite, while 246 spaces would be achievable if parking were to be maximized
according to our previous layout. I have negotiated a tentative agreement to purchase an adjacent
parcel of land, which would allow me to realize an additional 80 to 90 spaces. Community
Development Director Brad Collins told me in a telephone conversation on May 13 that a range of
between 275 and 340 spaces will be required; however, I have not yet received written confirmation
of these figures from Mr. Collins.
As you know, I have been in discussion with the City regarding possible joint development of
structured parking in the vicinity of my project. I anticipate that we will come to mutual agreement on
a project that will satisfy both my needs and the City's needs for additional parking.
c. Preservation of Public Access to the Current Waterfront Trail Easement - No issue.
d. Additional Improvements Necessary to meet Permittino Reauirements - No issue; as stated,
appropriate consultants have already been engaged and have proceeded with design work.
Business Plan
The Business Plan will be expanded in response The Chambers Group's comments; however, I feel
strongly that my Due Diligence Response demonstrates significant progress toward completion of our
Randal Jay Ehm AlA Pnnclpal 'l707 California Ave SW
lHI1all randalcgehmarch.com _e, WA 88116
Internal www.ehmarch.com 206 6461783
FAX 206 933 8098
Toll Free 800 299 6463
1016101 Washlnglon _
San Diogo, CA 82103-1808
6192996463
9407 Vancouver Mill Drive, Suite C1 675 Montgomery Road P.O. Box 21 rt
Vancouver, WA 98882 Bellingham, WA 88226 Pasco, WA 99302-2127
800 299 6463 800 299 6463 609 646 2101
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Business Plan. This plan may be modified concurrently with entitlements and permitting of the facility, and.
will not have significant impact on the projections we have made for the viability of this project.
. Admittedly, the deal structure is complex. This is completely due to the significant interest I have
received on thiS project from numerous investment groups and individuals. I anticipate that I will hold
lease agreements with a restauranteur and with the City of Port Angeles. I will accept no joint
ventures for investment in this project. I will form a simple corporation with a minimum number of
partners that Will act as a single entity relative to execution of this project, and therefore will have no
negative impact on the project's success. I Will hold a franchise agreement and may also hold a
management contract, both of which will provide further assurance of the project's success as they
will be with established and reputable companies All of these issues are typical of any hotel deal, and
will largely be addressed Within the next two weeks. However, it must be understood that complete
funding of this hotel project and absolute commitment from potential franchisees require significant
finanCial commitment from the developer, and therefore cannot be made until Ehm Architecture Inc.
has received a commitment from the City of Port Angeles and has obtained control of the property
from the Port.
. I no longer intend to involve the company that had been listed in management of this facility. As stated
above, the hotel and management companies I intend to engage will not make a firm commitment to
this project until it is recognized as a work in progress. However, I am gathenng letters of intent from
these entities and will present them to the City as soon as they come available.
. The Chambers Group was provided copies of the Pro Forma during generation of the Market Analysis.
While they mentioned that It was not in a format they are used to seeing, they neither informed Ehm
Architecture that there was anything negative about the format, nor did they offer any suggestion as
to how it should be modified. The Pro Forma is stili in flux as I determine additional parking needs
along with expense of alternative management, financing and franchise agreements. I believe th~
the Information provided reflects substantial progress toward completion of our definitive Pro Form~
and as the sole indiVidual taking any risk on the project at this point I am comfortable proceeding with
the project as that document is further refmed.
. The line items included in the Pro Forma for General Manager and Repair & Maintenance Expense
are being reviewed by a heavily-experienced hotel development consultant. Any necessary
modifications to the Pro Forma will be presented to the City Council for consideration, although they
are not considered critical to the viability of his project as we expect to reach optimum profitability by
Year 3.
. I had assumed a lease rate of approximately $ 24,000 per year for the DNR-owned property. The
actual cost of the potential land lease is contingent upon determination of the amount of parking that
will be required on the DNR-owned parcel, as that use is considered "Non-Water Dependent" by DNR
and so must yield income. A definitive agreement between the Port of Port Angeles and DNR has not
yet been reached; however, the estimated figure for this lease rate has been included in the Pro
Forma based upon conversations I have had with the Port.
. The Smith Travel Report included m the Due Diligence Response contained information about some
subject properties in the area to offer insight into the local hotel market; however, the competitive
conference set properties actually used in development of our projections were listed on the Smith
Travel Reports that were contained in our initial submittal.
. The construction costs submitted are based upon the original 150-room configuration. The 146-room
figure is reflective of the fact that several suites are anticipated at the fourth floor, which will reduce
the 150-room room count without reducing square footage of the overall project. No mOdification.
the Pro Forma is necessary.
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. Line Item numbers under the Furnishing, Fixtures and Equipment (FFE) budget reflect the fact that
many guestroom FFE items (including carpeting, wall covenngs, plumbing and electrical fixtures) are
either completely or partially Included in the guestroom construction figure, which is proprietary
information and which The Chambers Group was not fully apprised of. Our budget is consistent with
the expenses I will encounter in utilization of my proprietary, modular approach to guestroom
construction, and therefore bears no further modification.
. The Miscellaneous Fees line item included provision for potential lease rate of the DNR property, along
with an estimated figure for potential purchase of adjacent property for parking. I am currently
reViewing this line item, although reduction of this figure (as may occur if less DNR-owned land is
utilized for parking) would only have positive impact on the overall budget and therefore is not
considered critical to .proJect financing at this time.
Marketing Plan
I intend to refine our Marketing Plan as I proceed with this project, and will take The Chambers Group's
comments Into consideration as I do so.
. I have purposefully excluded discussion of the local competitive environment. I intend to protect local
hotels as best I can, and do not intend to pursue the existing hotel market beyond the basic local
marketing strategies I have listed in the Marketing Plan.
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. My Marketing Plan will be more specific relative to competing properties as I bring our marketing staff
on board. I have collected marketing information from all competing properties, and feel that my
Marketing Plan reflects significant progress toward completion of a SUitable plan to satisfy the City's
interest In our operation of a privately-operated facility.
. I recognize that no other property in the area offers the unique amenities contained within our
proposed project. Language relative to the unique characteristics of the local lodging market is solely
descnptive and can be added to our Marketing Plan without affecting our marketing efforts. Again,
I feel that our Marketing Plan meets the intent of the City relative to demonstrating our strategies and
objectives, and that the document is sufficient for acceptance by the City with no further modification.
. I have researched the specific needs and demands of the conference and meetings market, but do
not feel that this information is appropriate for inclusion into a publicly-consumed Marketing Plan. I
respectfully reserve my approach to thiS line item as proprietary and confidential information.
. I feel that the information I have provided relative to our Salas and Marketing budget is adequate for
the purposes of the Due Diligence document. This budget has been in development over the past
several months, but will not be further refined until I receive clear approval to move forward through
acceptance of the Due Diligence Response.
I have had numerous discussions with City officials relative to publication of the Business and Marketing
Plans, and consider both documents as adequate In meeting the City's requirement for substantial
progress in development of such documents. I intend to reserve any further refinements as proprietary
and maintain that they are not critical to any judgment regarding the City's potential participation in this
project.
.
Successful Property Acquisition I Lease Negotiations
I do not consider there to be any uncertainties relative to establishment of the site. I am quite comfortable
with the negotiations that have taken place between myself, the Port of Port Angeles and DNR. The Port
has issued a draft agreement between my firm, the Port, the City and DNR which identifies all acceptable
terms of sale and which largely represents the form of agreement that we collectively intend to execute.
13
I anticipate receiving a draft lease agreement or other document from the City in the immediate future
relative to dissemination of funds from the Lodging Tax Funds. .
Documented Evidence that Financing is Available
Identification of Individuals or groups leading the project team is largely dependent upon my ability to
proceed with the project. While I do have considerable interest in participating from strong investors, I
have been hampered in negotiations by the fact that I do not yet have a commitment from the City to
participate and do not yet have possession of the property. However, I will forward a copy of the Deal
Structure, along with identification of the Management Team, by separate cover.
Project Development Schedule
The schedule is aggressive for two reasons. One is that the City, Port and DNR have agreed to allow me
to fast-track the approval processes. The other is that my development company has developed a
process for turnkey construction that The Chambers Group cannot quantify. I have researched this
program Intensively, and have involved the contractor and the guestroom manufacturer in all scheduling
projections
Agreement with City for Commitment of Lodging Tax Funds
As previously stated, it is important the City commit to this project and that It demonstrate goodwill by
contributing to construction of the conference center.
Summary
I will provide you with an outline of the deal structure, along with information on the proposed management
team, by separate cover In the next few days. That outline will describe the financial entities involved in
the project through investment and tending, it will define the distribution of ownership in the project and
It Will describe the management team and their relevant expenence.
.
With the Council's acceptance, I will be in a strong position to finalize negotiation on property acquisition,
permanent financing and franchise management. I look forward to receiving a positive response soon.
.
14
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WAS H I N G TON, U. S. A.
CITY MANAGER'S OFFICE
April 30, 2002
Mr. Randal Jay Ehm AlA, Architect
Ehm Architecture
2707 California Avenue, SW
Seattle, W A 98116
RE: Conference Center/Hotel Development Project
Due Diligence Response
Dear Mr. Ehm;
Per my recent discussions and e-mail to you, attached is a copy ofthe Chambers Group's report
to the City of Port Angeles regarding their review of the Due Diligence Response that was
submitted by Ehm Architects to the City on AprilSth, 2002. The review outlines several issues
relative to the Proj ect Pre-design and Site Improvements, Business and Marketing Plans, Property
AcquisitionlLease Negotiations, Financing, and Development Schedule 'that will require
additional docum~nted inforrp.ation and/or clarification in order to meet the stipulated
requirements of our Letter of Intent signed on February 12, 2002. I know that you are already
aware ofthese issues and acknowledge from recent conversations that you have been working on
many if not all of them and appreciate your diligence in that regard.
I am continuing to work with local community stakeholders with regard to identifying and
developing potential parking options that may involve City owned properties and which may help
support your project's need for off-site parking. I understand that you believe your efforts to
secure full project financing may come together soon. Assuming that is the case and you are able
to provide us the further information as outlined in the Chambers report, we may be able to
forward a recommendation to the City Council as early as May 21, 2002. Please note that the
process we expect to follow necessitates the continued "community involvement" which is
facilitated by the Conference Center Review Team, the Lodging Tax Advisory Committee and
the Downtown Forward Committee, and that due to that process, we need to allow sufficient
opportunity for those groups to meet and deliberate their recommendations to the City Council.
Ifwe are unable to pull everything together by May 21 st, I will certainly continue to work with you
on another date. If necessary, I would also advocate the City continue to work with you on a
reasonable extension of time.
"
321 EAST FIFTH STREET · P O. BOX 1150 · PORT ANGELES, WA 98362-0217
PHONE' 360-417-4500. FAX' 360-4114~9. TTY. 360-417-4645
E-MAIL: CITYMGR@CI PORT-ANGELES ,,~
I believe that ifthe concerns and issues outlined in the attached report are properly addressed and .
completed that we will have favorable recommendations to the City Council from myself and the
various groups mentioned above. I look forward to continuing to work with you.
Sincerely,
~7.~'C~~
Economic Development Director
cc: Mike Quinn
Craig Knutson
, Conference Center Review Team
Lodging Tax Advisory Committee
Downtown Forward Advisory Committee
.
.
16
',.
.
THE
CHAMBERS
GROUP, INC.
HOSPITALITY INDUSTRY CONSULTANTS
1904 Third Avenue., Suite 320
Seattle, WA 98101
April 26, 2002
(206) 441-5522
(206) 441-1775 FAX
Mr. Timothy J. Smith
Economic Development Director
City of Port Angeles
P.O. Box 1150
POli Angeles, W A 98362
Dear Mr. Smith:
.
The purpose of this letter is to provide you with an overview of our conclusions related to
our review of the Due Diligence Response that was submitted by EHM Architects to the
City of Port Angeles regarding the development of a hotel and conference center. Our
comments are organized in the same order that the requirements were listed on the City's
Letter of Intent.
PRE-DESIGN and SITE IMPROVEMENTS
The EHM document addressed the four specific requirements that are outlined in the
Letter of Intent. However, we believe that some of the items are either too generic in
nature, or require additional time and information to finalize.
a. Design and Finishes. There are some flaws in the interior design
including: an insufficient number or suites; guestrooms with two entry
doors; excess number of connecting rooms; and the location of some
of the hotel's amenities. The guestroom interiors are standard Crowne
Plaza designs and do not necessarily meet the requirements of a
Pacific Northwest waterfront location.
b. Parking Provisions. Not yet finalized.
c. Preservation of public access to the current Waterfront Trail easement.
The document states that the access will be maintained.
.
d. Additional improvements necessary to meet permitting requirements.
The developer states that a Civil Engineer will produce plans to meet
all of the requirements once the Due Diligence Response document is
accepted.
17
. .
..
Mr. Timothy J. Smith
City of Port Angeles
Page 2
.
BUSINESS PLAN
We believe that the following components of the Business Plan need to be improved
and/or expanded:
. The deal structure for the proposed project is fairly complex. There is
potential for the structure to include multiple leases (both land and
operations), joint ventures, multiple partners, a franchise agreement,
and operating agreements. The complexity of the deal could have
impact on the project's overall success.
. The management company that was identified in the submittal does
not appear to possess the type and depth of experience that would be
typical for the successful operation of a full-service hotel and
convention facility. If the company has expanded its capabilities and
qualifications, it is not evident from the information in the reviewed
documents.
. The pro forma projections are not in a format that is consistent with
industry standards and thus makes it impossible to compare the
numbers to similar properties. The presentation appears to represent
financials for a limited-service hotel.
.
. Some of the expenses in the pro forma do not reflect the requirements
of a full-service upper scale property. For example, a General
Manager's salary of $35,040 and a Repair & Maintenance Expense of
$19,000 do not appear to be adequate for the scope and type of project
described..
. It is not clear whether the pro forma addresses the cost of the potential
land leases.
. The inclusion of the Smith Travel Report is unnecessary, as it does not
identify the competitive set that was utilized for the data.
. The construction costs that were submitted are based on a 146-room
property rather than the 150 to 154 range that has been used elsewhere.
. Although the total Furnishing and Equipment budget seems adequate
for the project there is some question as to the projected costs for some
line items. The budget needs to be reviewed.
.
t8
The Chambers Group, Inc
, . .
..
.
.
.
Mr. Timothy J. Smith
City of Port Angeles
Page 3
. The total ofthe Miscellaneous Fees is equal to 26.7% of the Total
Project Cost, which is higher than the average for similar projects.
MARKETING PLAN
Although there are many strong components in this section, we believe that it needs to be
made more specific with regard to:
. The local competition
. The competition from Pacific Northwest resorts and meeting
facilities
. The unique characteristics of the Port Angeles lodging market
. The specific needs and demands of the meetings market
. Many of the items listed in the Sales Strategy section are
generic and not property and market specific.
. A detailed Sales & Marketing budget was not included.
Overall, the document does not provide the reader with evidence that there is clear
understanding of the market and the unique locational aspects of the proposed
development.
SUCCESSFUL PROPERTY ACQUISITIONILEASE NEGOTIATIONS
The document indicates that negotiations are in progress. The establishment of the site,
with all parts and parcels, must be fully completed, or at least firmed up as soon as
possible. There are too many uncertainties at the current time related to the site.
DOCUMENTED EVIDENCE THAT FINANCING IS AVAILABLE
The package contains a number of letters and documents that substantiate considerable
interest in the project. Included are letters from entities interested in providing equity,
financing and management. However, they are not in the form of final commitments,
which is understandable, given the fact that the project has not received final approval
from the necessary parties.
19
The Chambers Group, Inc
. . '
Mr. Timothy J. Smith
City of Port Angeles
Page 4
.
Additionally, there does not appear to be an individual or group leading the project team
with significant financial resources. For a project of this size and scope, one would
expect financial depth to be displayed for the development team.
PROJECT DEVELOPMENT SCHEDULE
Based on our experience with similar projects we feel that both the permitting and
construction schedules are very aggressive. There is really not any room for error in
either of them. We do not have experience with the off-site construction method that will
be utilized for this project so it is difficult for us to state that the schedule cannot be met.
AGREEMENT WITH CITY FOR COMMITMENT OF LODGING TAX FUNDS
Negotiations are in progress.
SUMMARY
We believe that if the concerns and issues outlined above are properly addressed and
completed, the City of Port Angeles will have a document that meets the stipulated
requirements of its Letter of Intent.
.
If you have any questions regarding the above information, please do not hesitate to
contact us at your convenience.
Sincerely,
THE CHAMBERS GROUP, INC.
Andrew N. Olsen
.
The Chambers Group, Inc
20
.
.
.
5-29-02; 5'25PM
EC;#
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EHM A
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May 29 2002
r,mothy J. Smith, Economic Development Director
jity of Port Angeles
321 East Fifth Street
Port Angeles, WA 96362-0217
RE: Port Angeles Hotel I Conference Center
Dear Mr Smith;
At your request. I. have prepared a Construction Matrix for the above-referenced project. I have also Included a
Marketing & Operations Matrix, to Identify the entities participating in those aspects of the project.
As I have indicated to you previously, I have received the highest level of commitment from each of these entities
that is possible without controlling the property and without having a City commitment on the deal. Definitive
commitments will come after the City has accepted our Due Diligence response as complete.
As we discussed in our meeting last week, Allied Hospitality is reviewing both my Marketing Plan and The
Chambers Groups' response. Their feedback will be forwarded to you as it comes available. Please bear in mind
that Allied Will have specific input themselves on the Marketing Plan for the faCility as an experienced operator.
Please feel free to call me if you should require further information in this regard.
AlA, Architect
Randal Jay Ehm AlA PrIncipal
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21
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LL1~ED
HOSPITALITY GROUP I ~CORPORATED
May 20 2002
Randal Jay Ehl11
MMP
PI eSldent/CEO
1016 West Wash1l1gton Strect
San DIego, CA 92103-1808
Mr Ehm
It was a pleasUl e speakll1g wIth you regarding the Port Angeles, Washmgton project
It sounds ltkc an cxcltmg prOJcct for the comll1l1l11ty and for MMP.
As wc discussed. AllIed HospItahty Group, Inc. 1<; a very well respected hotel
management company We are impressed with your efforts regardlllg thIS proJcct
and are sIrlcerely interested in assisting you in making this hotel successful.
Allied Hospltahty Group, lne (AlIG) has been in business n~arly 20 years. The
Founder, DaVid Falor, was wised m Seattle and began his career in hospitality in the
nOl thwest and west coast AHG has made a determination to secure management
opportullltles on the west coast Comequently, this project has great appeal for us
We, on your behalf, have had conversalions with Marnott regardmg the possibility of
flaggmg the property as a full service Marnott. We received a very posItive response.
They also seem to have no objection to the use of your modular product to build the"
hotel. We have an excellent reputation with Marriott They are comfortable with the
qualIty of the properties we manage as well as the excellent quality of our operations
We believe that the Marriott franchIse will contnbute greatly to this proJect's success
Mr Elun, we belicvc ABU's exceptIonal talent and expencnce IS a valuable asselln
aSSIstIng you IT1 mcetmg your goals. We arc prepared to hnng our expertIse 10 Ihe
tahle as soon as you are ready to move forward ObVIOusly, our expenence openll1g
new hotels as well as our expcrtlse will add a perspeetivc that you wJlI find valuable
Please let me know, II' you have need any further informatIOn We look forward to
worklllg WIth yuu on thiS project.
-"
Rohert I). Falor
President
101\7 NUR III 1\1 {L\VA ll~ f: ~ ;\V [lo"Jt 'I. (IIIC;\CO, I L (,0622 (J121224.!1I\(, ".\ '\ (;I.n 7 \\.KN''-l
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Resorts. Conferellce Centers. Full n71l1 Limited Sefvice Hotels · Restallml1ts
22
1" . ,~ ....,
.
.
.
5-29:::02';' .5: 25PM---;'-"
Tlmolhy J Smith
May 29, 2002
Page 2
EC;# 2
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CONSTRUCTION FINANCING MATRIX
Toam 1
Equity.
Participant
Ehm Architecture Inc.
Profile Capital LLC
Investors Guarantee & Surety Group Inc.
Red-Horse Holding Company
Eauity Stake
$ 1 mil/ion
$5 million
$15 M guarantee
N/A
% Ownership
70%
30%
N/A - fee based
N/A - fee based
Loan Guarantor
Lender:
Team 2 Participant Eauitv Stake % Ownership
Equity: Ehm Architecture llie $500,000 70%
Cor Equity Management $5. Million 30%
Loan Guarantor The Pacific States Mortgage Corporation $9 M guarantee N/A - fee based
Lender American Federal Commercial N/A N/A - fee based
Team 3 Participant Eauity Stake % Ownership
Equity' Ehm Architecture Inc. N/A 40%
MMP Inc. $ 6 million 60%
Loan Guarantor N/A N/A N/A - fee based
Lender Ken Shapleigh Inc. N/A N/A - fee based
Team 4 Participant Eauitv Stake % Ownership
Equity: Ehm Architecture Inc. $1 million 70%
Resource Management Group $ 5 million 30%
Loan Guarantor N/A N/A N/A - fee based
Lender Red Horse Holding Company N/A N/A - fee based
Team 5 ,
Participant Eauitv Stake ", % Ownership
EqUity. Ehm Architecture Inc $ 1 million 70%
LP Gibbons & Associates $5 million 30%
Loan Guarantor Investors Guarantee & Surety Group Inc. N/A N/A - fee based
Lender American Federal Commercial N/A N/A - fee based
MANAGEMENT / OPERATIONS MATRIX
Team
A
8
C
o
ManaQement Company/Operator
Allied Hospitality Group
The Hotel Group (THG)
MTM Management
Aramark Conference Centers
FlaQ
Marriott
Crowns Plaza
Preferred Hotels
Hilton Hotels
Confenlnce Coordnator
Allied with BR Green
THG with BR Green
MTM with BR Green
Aramarkl Sam Claude
~
NORTHWESTERN TERRITORIES, INC.
717 SOUTH PEABODY STREET. PORT ANGELES. WA 98362
Engmeers . Land Surveyors. GeologIsts
ConstructIon Inspectton . Materials Testmg
NTI
(360) 452-8491 1-800-654-5545 FAX 452-8498 E-Mail Info@ntl4u com
www.n1l4u.com
THAT PORTION OF FIRST CLASS TIDELANDS BLOCK 2 AND BLOCK 2A, PORT ANGELES
TIDELANDS WEST OF LAUREL STREET, CLALLAM COUNTY, WASHINGTON DESCRIBED AS
FOLLOWS:
TIDELANDS BLOCK 2A AS SHOWN ON SURVEY RECORDED MAY 3,2002 UNDER AUDITOR'S
FILE NUMBER 2002-1084452 AND FILED IN VOLUME 49 OF SURVEYS, PAGE 50, RECORDS OF
CLALLAM COUNTY, WASHINGTON.
G IGen\flIIb\DeSaII\2OO2ITldetandS8k>d< 2A WIld
EXHIBIT 1
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f'HD/I [J7['CT ON 7HC stMIW'IUJ ~ CJtt:I7"t AS
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AND 01H0I oc:a.FIiI,."..., HllIC"Da . IICCtJIIQIIIiIl ..PH
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NOr IICF'N ADOl\o[!) f/'f 1H$ .$UftIfY
Record of Survey
of First Class Tidelands Block 2 and Block 2A West
of Laurel Street. in front of Port Angeles Townsite.
Clallam County, Washmgton
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NOTES
I THE INNf:R ~ UNE AS SHOWN H€RCON IS BASED ON THE .'992
suPPI.DIOfTN. MAP Of' POI(T ANGD..ES TIDe /ANOS'. RITOROED AUGUST
18, 1119' UNDeR Ani 726a72 ANO FILED IN IoOLUIIE 12 OF Pl.AIS. P"CE
76 RCCOROS Of' ClALlAlI COUNTY. WASHlfoK;TOH
2 THIS lIONUIICNT .....S SET IN 199' RCPIACINC AN OLD exiSTING ROCK
NAIL SET I1Y PCRSONS UNKNO'IIN APPMOfTI. Y ro _ THe CENTVlUNE
INTFRSf'C17ON OF IWIJIOAD A\OEMJE ANO OAK ST/lffT rHe CURRENr
IJONIJMDtT POSITION nrs THE IH!'~ CENTalUNe IIflCRS8:rION
W[IJ. WHCN CALCVlAIltI tJS1NC _lN€ 26 Of' SV~. P..CE 42.
rH~ THe CURROlT lIONUf/eNT IS BCJJEVEO ro BE A PeRPETlJATICN
OF THE ROCK NAIL ANO HIS <<CN AJ;CCPTEO AS _'NC rHe
cCNTUIUNC wrrRSU:TION OF RAlLRCWJ A\OEMJE ANO OAK STRCEr.
o 50
\..w~._
SCALE IN Far
-!:
C)()
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O'J
o
suRVFYOR'S CERT1F7CA7F
THIS _ CORfiO:Tl Y RO'ffCSEJ{1'S A 5URVCY lIAD€ I1Y lie OR UNOCR IIY OIR€r:TlON
IN CONFOR!oIANCC WTTH THE SURVCY RCCOROlNG ACT AT THe REOUEST OF THE PORT
OF' POI(T ANCCLLS IN .-UoIRY. 2002.
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EXHIBIT 2
LEGEND
AFH
ClAUAM COUNTY AlJOfTOR'S FU _
SIT S/6-fNCH RCBAR ",TH PVoSnC $IJIlWY CAP STAJ/Pf:D
"Nn-.JOHNSTON PiS J1SJ I. ANO PVoSnC GlWlO STAKe
F'OUNO 2-INCH BIlASS eN' !tUSH _ _ SURFACe
FOlINO CITY OF PONT ANGaLS CCDOC11C aMlIQt
_ NO. ,'J-J-' PeR _uwr M OF ~
PA<< ZZ (SEE NOTC 2)
SIT l.EAD ANO TACK !tUSH _ CONCRCrr ~
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RECORDING CERT1F7CA7F
ntED f'OR RCCORO AT THE RCOUE:ST OF ~ ~ INC..
THIS.Jz.. llo\;r P~hNtI"f 2002 A.o. ,lor ti31 IoIINIJTES PllST
~ O'CLOCK '" AIiP RCCOROCO UNOER AUOIT'OR'S F1l.E MAIBER
.;, D^-J.-ID7 $q~ . RECZ CIAUAAI COUNTY. ~
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DC1'lITY cou IoIJOITOR -
Record of Survey
Tidelands Blocks 2 & 2A
in front of Port Angeles Townsite
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PROPOSED BUllDI~,C
PROPOSED LAND ~I ~.
SWAP= 16.775
I' 'I Sf
=-1~ - ~ I I IE
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381
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IlmTU
TOTAL ABO';: TOTAl BELOW
GROUND ON- SolE GROUND ON- SITE
-PARKmG~ - n-PARKlIIG~-- - __ - _ _ _ _ _ _ _ __
125 SPACES 156 SPACES
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TOTAL
ADDITIONAL
PARKJNG='--
91 SPACES
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NORTHWESTERN TERRITORIES, INC.
717 SOUTH PEABODY STREET, PORT ANGELES, WA 98362
Engmeers . Land Surveyors. GeologIsts
ConstructIon InspectIOn. Matenals Testmg
NTI
(360) 452-8491 1-800-654-5545 FAX 452-8498 E-Mail Info@nl14u com
www nu4u.com
THAT PORTION OF FIRST CLASS TIDELANDS BLOCK 2 AND BLOCK 2A, PORT ANGELES
TIDELANDS WEST OF LAUREL STREET AND VACATED CHERRY STREET, CLALLAM COUNTY,
WASHINGTON DESCRIBED AS FOLLOWS:
TIDELANDS BLOCK 2B AS SHOWN ON SURVEY RECORDED MAY 3, 2002 UNDER AUDITOR'S
FILE NUMBER 2002-1084452 AND FILED IN VOLUME 49 OF SURVEYS, PAGE 50, RECORDS OF
CLALLAM COUNTY, WASHINGTON.
G IGenIRoblOesOlpbOnsl2002lrldelall<ls81od< 28 wild
EXHIBIT 4
NORTHWESTERN TERRITORIES, INC.
717 SOUTH PEABODY STREET. PORT ANGELES. WA 98362
Engineers. Land SUNeyors . Geologists
Construction Inspection. Matenals Testing
NTI
(360) 452-8491 1-800-654-5545 FAX 452-8498 E-Mail IOfo@nl14u com
www nll4u.com
LEGAL DESCRIPTION
Washington State Department of Natural Resources to the Port of Port Angeles
THAT PORTION OF FIRST CLASS TIDELANDS BLOCK 2A , PORT ANGELES TIDELANDS WEST OF
LAUREL STREET, CLALLAM COUNTY, WASHINGTON DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEASTERLY CORNER OF TIDELANDS BLOCK 2, SAID CORNER
BEING MARKED BY A LEAD AND TACK AS SHOWN ON SURVEY RECORDED FEBRUARY 6, 2002
UNDER AUDITOR'S FILE NUMBER 2002-1078598 AND FILED IN VOLUME 48 OF SURVEYS, PAGE
80, RECORDS OF CLALLAM COUNTY, WASHINGTON;
THENCE NORTH 33021'23" EAST, ALONG THE EASTERLY LINE OF SAID BLOCK 2, A DISTANCE
OF 149.99 FEET TO THE SOUTHEASTERLY CORNER OF SAID BLOCK 2A AND THE TRUE POINT
OF BEGINNING;
THENCE NORTH 56037'03" WEST, ALONG THE SOUTHERLY LINE OF SAID BLOCK 2A, A
DISTANCE OF 457.57 FEET;
THENCE NORTH 33022'23" EAST A DISTANCE OF 36.82 FEET;
THENCE SOUTH 56037.03.' EAST A DISTANCE OF 457.56 FEET TO THE EASTERLY LINE OF SAID
BLOCK 2A;
THENCE SOUTH 33021'23" WEST, ALONG SAID EASTERLY LINE, A DISTANCE OF 36.82 FEET TO
THE TRUE POINT OF BEGINNING.
ALL BEARINGS AND DISTANCES ARE RELATIVE TO THE WASHINGTON COORDINATE SYSTEM,
NORTH ZONE, NAD 83(91), AS SHOWN ON SURVEYS RECORDED IN VOLUME 48 OF SURVEYS,
PAGE 80, AND VOLUME 49 OF SURVEYS, PAGE 50, RECORDS OF CLALLAM COUNTY,
WASHINGTON.
G IGen\RoblOescnpllons\2OO2lAlRPORTlTodelandsB/ock 2 ONR to PORT wpd
NORTHWESTERN TERRITORIES, INC.
717 SOUTH PEABODY STREET. PORT ANGELES. WA 98362
Engmeers . Land Surveyors. Geologists
Construction InspectIOn. Matenals Testmg
NTI
(360) 452-8491 1-800-654-5545 FAX 452-8498 E-Mail mfo@nll4u com
www nll4u com
LEGAL DESCRIPTION
Port of Port Angeles to Washington State Department of Natural Resources
THAT PORTION OF FIRST CLASS TIDELANDS BLOCK 2 , PORT ANGELES TIDELANDS WEST OF
LAUREL STREET AND VACATED CHERRY STREET, CLALLAM COUNTY, WASHINGTON DESCRIBED
AS FOLLOWS:
BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID VACATED CHERRY STREET, SAID
CORNER BEING MARKED BY A LEAD AND TACK AS SHOWN ON SURVEY RECORDED
FEBRUARY 6, 2002 UNDER AUDITOR'S FILE NUMBER 2002-1078598 AND FILED IN VOLUME 48
OF SURVEYS, PAGE 80, RECORDS OF CLALLAM COUNTY, WASHINGTON;
THENCE NORTH 33022'23" EAST, ALONG THE WESTERLY LINE OF SAID VACATED CHERRY
STREET, A DISTANCE OF 149.99 FEET;
THENCE SOUTH 56037'03" EAST A DISTANCE OF 112.32 FEET;
THENCE SOUTH 33022'23'" WEST A DISTANCE OF 149.99 FEET TO THE SOUTHERLY LINE OF
SAID BLOCK 2;
THENCE NORTH 56037'03'" WEST, ALONG SAID SOUTHERLY LINE, A DISTANCE OF 112.32 FEET
TO THE TRUE POINT OF BEGINNING.
ALL BEARINGS AND DISTANCES ARE RELATIVE TO THE WASHINGTON COORDINATE SYSTEM,
NORTH ZONE, NAD 83(91), AS SHOWN ON SURVEYS RECORDED IN VOLUME 48 OF SURVEYS,
PAGE 80, AND VOLUME 49 OF SURVEYS, PAGE 49, RECORDS OF CLALLAM COUNTY,
WASHINGTON.
G IGenIRobIDesOlpbOns\2OO2\AIRPORnTiclelandsBlock 2 PORT to DNR wpd
Record of Survey
of First Class Tidelands Block 2A and Block 28, West
of Laurel Street, in front of Port Angeles Townsite,
Clallam County, Washington
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~'= ~AU*"-== =-~ ~
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WITH .",. ~ WA.IIMtID M7H A nm.. we
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OrHDt ~ ImC1f A'fCCMOtD QIt L.Htfl:DltOf])
Ht1T JHOWN ICJtttW fHS JUIMl" HU NOr 0I'7f7ItWHtD tHe
DOS1fHCC "ALL IVCH ~ Of lNCI./I.IMIWCD M
THOIf onr:r ON 7Ht JUIM')U) M.1'Ca CXCD'r AS
~r SHOffH IPftW.
rHIS ~ or S'UIMY M4Y tJtl7JC1 Dn$fJNfJ f[N(% lIIa
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~ ~ MSlD fJ1"OH l./N'ItIIff1T'D 1T1tE QAIWS ....~
NOr liaR M30t~ no 1H7 .st.WWY
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NOTFS
1 T/{. PURPOSE OF T/{. SURVEY IS 10 fUUSTRAfF A PROI'(]1;ED
8OUNOARY UN. ADJUSTJIOff 80WffN T/{. STAfF DEPNmIENT OF .ol41l1RAL
R<'SOlJFICf:S.ANO T/{. PORT OF PORT .ANCEU:S.
LEGEND
E:X1S11NC 8OUNOARY UN. (SEE NOfF J)
PROPOSm BOUNDARY UNE
BLOCK UN.
INNER HARfiOR UN.
18-FOOT WlOC PUBUC PEDESTRWI 1RAJL
PfR AFN 2000-10$8420 (:t10.~ Son
RIP RAP (%2S.OOO Son
2, T/{. INNER HN/8OR UNE AS SHOIffN H~ON IS llo<Sa1 ON THE "1992
51JPPl.D1fNTAL MAP OF PORT ANGEJ.ES T10C lANOS" Rf:r:ORDED AI.JCUST 18.
1995' UNDER HN 726872.AN0 F1LCD IN VOWMf: 12 OF PlA13;. PACF 7/S,
RECOROS OF ~ COUNTY. W,<SH/Nrm)N,
J SEE KJLUM. 2/J OF SURlofl5; PAC. 42 AND KJLL4IIF 4IJ OF SlJII'on5:
PAGe ISO FOR 5URVF:'f TJONUMfNTATION AND PlAT fJRCNCDOWN Pr1OaIJURC.
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RECORDING CrnnFlCATF
F1LCD FOR RE:CORO AT T1:f.f REOU<ST OF NOR'1HW51lRN TfRRTTDRTES. INC..
T/{/S ~ DAY Pf' /Yr~ 2002 AD, AT 1.!)_1/1NUTfS PAST
...a O'CLOCK.J:: M AND COROUJ IN KJLUMc ~ OF ~
PAGe ~ RECORDS OF CtAJ.1AJJ COO""" 'rI'ASHINCTON
~ /
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OO'IJ/Y N1Y AUOf1OR ~
SURVEYOR'S CEFmFlCATF
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11<15 loW' CORRE:C1l. Y REPRE:SENTS A 5URVF:'f WoDC BY liE OR UNOCR /JY OIR.cnON
IN CONFORIlANCE: WITH 11;. 5URVF:'f RECOI/OINC ACT AT THE REDU<ST OF 1I<E: PORT
OF PORT ANGE:Les IN APRIL 2002
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SCALL I..SO' DATE.. '125101
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~ NORT=~;::~::~:.:IES. INC.
Record of Survey
Tirfplnndc;: Rlnr:ks .?A &- 28
IHT JUIlW'I'Dt IMI'tClIl aM" << aaa:r n>> ~ 0It
01MJII ~ alia MCQlKKD Of ~
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iMP ..:0.71' A ~ IQIt a..uM ", ".,."".. rmL
UlMI. ~... &PeW ~ Jr7U' ~.....
Itar <<DI ....tID ., .. .......
Record of Survey
of Arst Class Tidelands Block 2A and Block 28. West
of Laurel street, in front of Port Angeles Townsite.
Cla/lam County. Washington
INII a.IIWY' . ewD ., ... ___ .......
=--=::WAUIN-==~~a
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2002 '0.....2 =
Parcel F
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THIS """ CO'Mft7tY RCPRE:SCN1S A ~ IIADC BY IIC OR UNOCR Vf DIRCr:T/ON
IN ~ wmt T/fC :WRVrr RrCOfl()lN(; ACT AT THE REDUEST OF THE POIf1
OF POIff' NICE1ES IH N'RtL. 2002.
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2. 11*: _ _ UHC AS $H()MI HEREON IS _ tIN 1HC "HZ
SlJWIIDIEN'fAL flAP OF ""'" ANGD.LS 1KlC u.Nl1S' ll[tDIlIOI AUt:VST II,
~~:.;::;, ~~ rz OF 1UTa. _ 71,
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RFr:tJRDINC CF:RT1F1CATF
nt11) fOR RCr:tJRO AT ~ 1IErJfE:ST OF _......,""" IlMIt:IIlIEl N:.
THIS --l... llo4T ff /yIO., 200z II.Il. AT iM),WMB P.csr '
..a!. 0 aocx.J:: /J N/D /If'lXIjlDfl) IH K:lUAII!' -!t.!L. OF SIAMl3:
pA(;C ~ RfXXJRDS OF QJoLVJJ axJNTY. -.
~I"LtL -"AI>^..
DCPUTY AIJOf1'OR -
Record of Survey
Tidelands Blocks 2A ~ 2B
in front of Port Angeles Townsite
EEi
_6
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\
A.
EXHIBIT 5 Letter of Intent Port Angeles Oak Street Property
b~~~
Initial Rent for Non Water-Dependent Uses
The initial rent for Parcels B, D and E for the areas of filled state owned tidelands
categorized by DNR, as being non water-dependent will be determined as follows:
1. The Sale Value of the Adjacent Upland, sold by the Port to Ehm Architecture
("Index Parcel"), is divided by the number of square feet in the Adjacent Upland
to calculate the value per square-foot. (The 2002 sale price of the Index Parcel =
$1,030,000.00, value per square foot = $12.0)
2. This value per square-foot will be multiplied by the number of square feet,
classified by DNR, as non water-dependent use within the Lease Area to
determine the Lease Area Value.
3. The Lease Area Value shall be multiplied by the use rate percentage as specified
by WAC 332-30-125(1) and (2) (Currently 9.5%).
4. The resulting number is the total amount of non water-dependent rent remitted to
DNR.
Four- Year Revaluations
DNR shall adjust the land value every four years. In order to adjust the initial land value,
the Parties have agreed to create an index based on county property assessment for the
Index Parcel. The parcel has not as yet been assigned an assessor's parcel number. The
2002 real property sale value for the Index Parcel is $525,510 per acre or $12.06 per ft2).
Starting in 2006 and every four years thereafter, DNR shall utilize the current assessed
real property value of the Index Parcel and calculate the percentage of value increase or
decrease of that parcel over the last four year period. The land value for the property
from the prior four-year period will be multiplied by the percentage of value change from
t~e Index Parcel to calculate the new current land value for the next four-year period.
Interim Year cpr Adiustments
The rent will be adjusted for inflation on an annual basis except for the years where the
land is revalued as described above. DNR shall use the CPI to adjust for inflation.
.
.
.
ftJ/jJlfJlJll
AGENDA
PORT ANGELES CITY COUNCIL
SPECIAL MEETING - COUNCIL RETREAT
LAKE SUTHERLAND
JUNE 15, 2002 9:00AM - NOON
A.
CALL TO ORDER - SPECIAL MEETING
B.
ROLL CALL
c.
GETTING ORGANIZED
1. Dealing with "Process"
2. Effectiveness of Committees
3. Council Communications, Packet Material
D.
BEING FOCUSED
1. Council Goals & Objectives
2. Community Work Plan
3. Community Visioning
E. BUILDING TEAMWORK
1. Council/Staff Working Relationship
2. Relationship with Planning Commission, Other Boards
3. Dealing with Conflict and Controversy
4. CM Evaluation Form
F. TAKING ACTION
1. Balancing Projects, Priorities and Resources ,
2. Special Project Comments (Storm Water, Economic Development, Government
Access Television, Solid Waste Routes, Other)
G. CHAMPION CHANGE
1. Transform the Organization
2. Think Horizontal, Think Empower, Think Links, Think Opportunity
3. Creative Solutions, Operational Flexibility, Dismantle Barriers
23
.
.
.
24
.
.
.
PROCLAMATION
Diversity and Civil Rights
WHEREAS, the Port Angeles community was founded upon a base of mutual respect,
understanding, and cooperation between native and immigrant residents ofthe North
Olympic Peninsula; and
WHEREAS, the City of Port Angeles affirms that the racial and ethnic-cultural diversity of its
community is a source of excellence, enrichment, and strength; and
WHEREAS, the City of Port Angeles has a long history of being a community accepting of all
people, and where non discrimination and diversity is valued as a way oflife through
our social, political, and economic fabric; and
WHEREAS, the City is committed to protect, to the best of its abilities, civil rights for all people;
and
WHEREAS, the potential of all people can be seriously undermined by discriminatory acts of
prejudice, violence, and hatred, and the City is determined to do everything within
its power and influence to rid itself of such acts.
NOW, THEREFORE, I, Glenn Wiggins, Mayor, on behalf of the City Council of Port Angeles,
do hereby proclaim that prejudice, racism, and hatred in all forms will not be tolerated in our
community, and that the City of Port Angeles will pursue justice and resolution to the full extent of
the law.
June . 2002
Glenn Wiggins, Mayor
25
.
'"
.
.
26