FEDRAC PKT 10-11-2005
City of Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, October 11,2005 City Hall
4:00 p.m. Hylebos Conference Room
AGENDA
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMITTEE BUSINESS
A. Approval of the September 13,2005 Minutes Action
B. Leland Consulting Scope of Services (Doherty) Action
C. Business Outreach Effort (Doherty) Information
D. Participation in Small Business Development Center at lIighline Action
Community College (Doherty)
E. Development Effort along Northern Section of SR 99 (Doherty) Information
F. Sprint PCS Site Lease Extension (Wang) Action
4. OTHER
5. FUTURE AGENDA ITEMS
A.
B.
6. NEXT MEETING:
FEDRAC - Economic Development: November 8, 2005
FEDRAC: November 22, 2005
Committee Members: Citv Staff:
Eric Faison. Chair Patrick Doherty, Economic Development Director
Jeanne Burbidge Vacant, Management Intern
Jim Ferrell (253) 835-2403
K:\FEDRAC\2005\101 1\101 105 Agenda doc
City of Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, September 13, 2005 City Hall
5:30 p.m. Hylebos Conference Room
MINUTES
Committee Members in Attendance: Chair Eric Faison, Member Jeanne Burbidge, and Member Jim FerrelL
City Council 'Members in Attendance: Mayor Dean McColgan, Deputy Mayor Linda Kochmar, and
Councilmember Mike Park
Staff Members in Attendance: Iwen Wang, Management Services Director; Pat Richardson, City Attorney; Patrick
Doherty, Director of Economic Development; Rob VanOrsow, Solid Waster/Recycling Manager; Jordan Wheeler,
Management Intern.
Others in Attendance: John Caultleld, Planning Commission Chair; Jim Yoder, Steadfast Companies;Gary
Martindale, Steadfast Companies; Bruce Lorig, Lorig Associates; Eric Hall, Federal Way Mirror.
1. CALL TO ORDER
Chair Eric Faison called the meeting to order at 5:34 p.m.
2. PUBLIC COMMENT
None.
3. COMMITTEE BUSINESS
a) Approval of the August 9,2005 meeting minutes
Committee members Jeanne Burbidge and Jim Ferrell requested Agenda Item C on the August 9,
2005 minutes to be revised. Committee member Burbidge called for the final paragraph to be
amended to clarity to read that the committee agreed to invite property owners, developers, and
other stakeholders in Federal Way to a future FEDRAC meeting to participate in a collaborative,
interactive and open-ended economic redevelopment discussion paneL
Committee member Ferrell also requested Item C to be amended to show his concern in creating
an economic development fund. Mr. Ferrell feels the committee may be premature in creating the
fund because it's not completely known what it is for yet and he believes that investing a
designated amount in a specific fund could weaken the city's position to negotiate with developers.
b) 2006-2007 Solid Waste & Recycling Grants Approvals
Presented by Rob VanOrsow
Mr. VanOrsow briefly presented to the committee the Solid Waste and Recycling grants awarded
for 2006-2007.
Motion to approve the targeted grant') and proposed projects for 2006-2007 tlndforward the
resolution to full council/or approval. Motion seconded and carried.
A-I
Chair Eric Faison called for a short recess at 5:40. The committee reconvened at 5:53.
c) potential Public-Private Partnership Strategies
Before the start of the discussion Economic Dcvelopment Director Patrick Doherty handed out a
map of the Federal Way City Center and copies of the Leland Group Commission Report.
Mr. Jim Yoder, Mr. Gmy Martindale, and Mr. John Caulfield were introduced to the committee
and thanked for participating in the open-ended discussion.
Mr. Doherty opened the discussion by giving background on recent developments in regards to
achieving the City's vision ofthe downtown core. Mr. Doherty mentioned the interim zoning
changes, how the city is currently working on what will replace the zoning ordinance, and thc
recent discussions on the city center and how the city can be involved in redevelopment of
downtown.
Mr. Doherty presented to the Committee a drawing of a redeveloped city center from the
Comprehensive plan vision. The drawing shows a downtown that is pedestrian-friendly, mixed-
use, and includes housing, retail, civic uses, and more. Mr. Doherty also reminded the committee
that the City has hired the Leland Consulting group to help us understand how to achieve the City's
comprehcnsive plan vision and how redevelopment occurs. Already the Leland Group presented
some strategies and a market report to the committee and Council. At the Council's request the
Leland Group's study had an emphasis on Lifcstyle retail, however the City is also certainly
interested in all redevelopment types.
Mr. Doherty also added that the next presentation by the Leland Group is a "how to" presentation.
Mr. Doherty stated that the purpose of the discussion is to learn the diversity of opinions
stakeholders may have in the topics of public-private partrierships and downtown redevelopment.
Mr. Doherty handed out a list of potential discussion points and started the discussion by asking
the stakeholdcrs and committee members to respond to the following point, "If the City were to
position itsclfto consider public-private partnerships to achicve redevelopment in the City Center,
do you think the lifestyle retail, multistory or mixed-use development types would be more likely?"
Mr. Dohcrty defined the question by asking if redevelopment would happen in the downtown core
if the city did not actively pursue mixed-use development.
Planning Commission Chair John Caulfield responded by informing the committee and
stakeholders that downtown redevelopments and the pursuit oflifestylecenters are happening in
cities all around Federal Way. Mr. Caulfield mentioned cities like Kent, Renton, Burien,
University Place, and Puyallup that are taking action to attract those types of projects. Mr.
Caulfield stated that the pursuit of new mixed-use developments is about achieving the vision and
in order for that to happen propcrty owners, stakeholders, the, city, and developers havc to work
together.
Mr. Jim Yoder suggested to tl~e committee that the city should keep a menu of options and
opportunities on the table rather than focus on Lifestyle centers or other specific types of
developments. Mr. Yoder also recommended the city to look at what it can do for creating
incentives but to take care in not becoming too restrictive whereas to limit growth and
development.
Mr. Bruce Lorig of Lorig Associates offered his take on downtown redevclopment and identified
the difficulties of developing parking space and purchasing land for structured parking. Mr. Lorig
discussed land costs, the dynamics of structured parking, and possible roles the City could play in
developing structured parking.
K:\FEDRAC\200S\Oi) 13\01) I:) Mil1lJ~es,d()c A-2
Committee member Jim Ferrell reported that he is impressed with the new improvements to the
Alderwood Mall in Lynnwood, WA and askcd if the stakeholders could conccive ofsomcthing
similar happening in Fcderal Way. Mr. Yoder agreed that it is possible and the committee
discussed the process, The Commons, and stakeholders' interest in more retail dcvelopments in the
city center. The committee members and stakeholders then briefly discussed office space and
housing developments downtown.
The stakeholders were kindly asked to give their opinions on what thc city could do now to attract
lifestyle retail to Federal Way. The stakeholders and committee members offered their thoughts
and considerations, such as making the land more available, meeting with more developers and
property owners to craft a downtoWn plan, and defining the downtown vision.
The stakeholders and committee members discussed diffcrent methods and processes of
redeveloping downtown, such as a transformation or catalyst project or a series of smaller
incremental developments. Other forms ofpedestrian-fricndly retail centers were cited, such as
complexes with parking located away from the storefronts in the rear of the complex. The
stakeholders also discussed how to implement "big box" retail into pedestrian-friendly retail
centers.
Mr. Doherty wrapped up the discussion by reminding the committee and stakeholders that cities
that are in the same market and surround Federal Way are actively intervening in the market and
doing some sort of part to encourage retail development. Mr. Doherty stated that his concern is
that Federal Way could be perceived as the one community in the arca that is not proactive in
establishing themselves in the market.
4. OTHER
None.
5. FUTURE AGENDA ITEMS
6. NEXT SCHEDULED MEETING
October 11,2005 at 5:30 p.m. in the Hylebos Conference Room.
7. ADJOURN
Chair Eric Faison adjoumed the meeting at 7: 13 pm.
Recorded by Jordan Wheeler
K:\FEDRACI2005\091 ]\091) Mi,,"te<.dnc A-3
CITY OF FEDERAL WAY
MEMORANDUM
Date; October 7, 2005
To: ic Development and Regional Affairs Committee
Via; ity Manager
From: c nomic Development Director
Subject: s or eland Consulting Group
POLICY QUESTION:
Review and consideration of the Scope of Services and range of fees associated with
continued engagement of the Leland Consulting Group to provide expert assistance
in actively promoting City Center redevelopment, pursuant to the "City Center
Redevelopment Strategy."
BACKGROUND
The City Council hired the Leland Consulting Group ("Leland") earlier this year to
provide a City Center market strategy and redevelopment strategy.
On September 20, 2005 the Leland presented its final "City Center Redevelopment
Strategy" report.
On October 4, 2005 the City Council passed Resolution No. 05-459 that accomplished
four things:
. Accepts the "City Center Redevelopment Strategy"
. Reiterates City Council express support for the Comprehensive Plan City Center
vision that will require substantial additional development of a variety of
developments types and uses;
. Expresses City Council intent to consider for implementation the redevelopment
strategies suggested by Leland at approximately the 2010 timeframe; and,
. Expresses City Council intent to consider potential public-private and/or public-
public financial partnerships for appropriate redevelopment projects.
Within the "City Center Redevelopment Strategy" report, the Leland laid out three
approaches for promoting redevelopment projects within the City Center:
. Use infonnation from the market strategy to develop promotional materials for
private intercsts that approach the City and request infomlation (responsive
approach);
~l
. Use information from the market strategy to develop promotional mateIials,
identify potential developer interests (regional and national), and solicit their
participation through developers RFQ's/RFP's (proactive, staiY-led approach);
. Retain the services of an outside real estate strategist to prepare promotional
materials, identify potential developcr partners, administer the RFPIRFP
processes, define partner roles, and negotiate terms, etc. (proactive, consultant-
assisted approach)
The City Council considered these approaches and expressed its intcrest in pursuing the
third approach cited above by continuing to cngage the services of the Leland.
Consequently, Councilmembers requested that Leland provide a Scope of Services and
range of fees associated with this work.
Attached you will find Leland's Scope of Services and range of fees.
PROPOSAL
Option 1. Continue to engage the Leland Consulting Group to provide the attached
Scope of Services within the cited range of fees. The exact fees paid will depend upon
the extent of services required, subject to City oversight and approvaL
Option 2. City chooses not to engage Leland at this time.
STAFF RECOMMENDATION
Staff recommends Option 1.
COMMITTEE ACTION
"r move to approve Option _."
17'2-
LELAND CONSULTING GROUP
~ 5 October 2005
Subject: City Center RedeveIopment Real Estate Advisory Services
On behalf of Leland Consulting Group (LCG) Real Estate Strategists, and RTKL
Associates, Inc., we are pleased to present this proposal to assist you with
development advisory services related to redevelopment of City Center and
advancement of key catalyst projects in the area. Critical to the success of such a
project is choosing the right developer to be the City's partner. LCG has extensive
experience working with cities and other public agencies to organize and conduct
such selection processes and we look forward to the opportunity to work with you in
this capacity on City Center initiatives.
With experience bridging the public and private sectors, LCG will bring to the
process an understanding of what it takes to motivate a private developer and how
the public and private partners can work towards delivery of a successful project.
Experience has proven that success begins at the outset with the design of the
selection process and continues through developer selection and negotiations.
The balance of this proposal outlines our proposed scope of work beginning with
preparation of marketing materials through seIection of a developer(s) and finishing
with negotiation assistance. In keeping with previous discussions with the City's
leadership and staff, we suggest a five-part process.
Assignment Approach
Phase I will include the preparation of materials which communicate the City and
study area's "story" -- highlighting market opportunities, demographic and
psychographic profiles, and Council's commitment to the area's renaissance. The
content of these materials will be based on market findings documented in the City
Center Redevelopment Strategy, with information of particular interest to the
development community highlighted. These marketing and promotion materials
will be made available to all advocacy organizations in the City, as welI as interested
parties which request it from the City. (Fee Estimate: $6,500)
www./e/alldcollsu/tillg.COI/I
Phase II will include preparation of a request for qualifications (RFQ) and list of
prospective candidates who have the potential to deliver projects consistent with the
)Q South Quebe<; Street, Suite AJ.I04 City's and community's vision for the area. The "request for qualifications"
Centennial, Colorado approach is highIy recommended over the request for proposals. The RFQ process
80112
p. 303.458.5800 allows the City to select the master developer on the basis of qualifications,
f 303.458.5420 experience, skills, political savvy and sensitivity, and related attributes.
Portland, Oregon
503.222.1600 The RFQ package will have certain materials attached including, but not limited to,
Seattle. Washingl""
206.780.0553 the marketing materials prepared in Phase L a detailed description of the study area
Boston, A1a$$ttdu4,';:flt8 and its current physical and political status, and any other supportive documents
978.443.0435 including 'the Market Strategy. Work products from this phase will include
New Y ark, t'./t~~~~ \'m-k- attachment documents, suggested names (which will be added to by others), and the
212. 794.2994 mailing or distribution of the RFQ.
Austin, 'f(:'):t:l)"
325.944.8400
San Miguel de Allende, AI",'i""
011.52.415.152.3932
IIlI1 Real Lsl1lte Strategists
~3
LELAND CONSUL'fING GROUP
L: LCG will work with the City to prepare selection criteria for use in evaluating the
RFQ submittals. We will also design a process that includes interviews, a selection
committee, and other elements.
Upon developer selection, LCG will then recommend an initial memorandum of
understanding (MOD) to outline all significant deal points between the City and
preferred developer followed by a development and disposition agreement (DDA)
leading to a final sale (or lease) of the land for development.
Thus, a specific plan for the area is not necessary at the time of selecting the
developer. Considerably more important will be to select the right partner. That
said, it is entirely appropriate to include the City's vision for the area in the RFQ so
that the developer understands what some of the City's expectations might be. (Fee
Estimate: $8,000)
Phase III will include working closely with the City and its representatives to
interview and select the appropriate developer (or developers). This will involve a
filtering process of interviews of a limited number of respondents followed up by a
specific proposal request from the winning developer(s). Work completed by Leland
Consulting Group and RTKL during this phase will include coordination with the
City and selected developer on a development concept. As an advisor to a number
of cities and development organizations, and.given the depth of RTKL's experience
designing and implementing projects of this type, we regularly become involved in
"development programming" - determining the mix, character, quality, and other
attributes of the development. The benefit to the City will be assurance that the
project is realistic and achievable. Note: Detailed design work will be financed
under a separate contract and likely funded by the developer. (Fee Estimate:
$12,000)
Phase IV will include working on an on-going basis with the City and developer(s),
if requested, to obtain necessary entitlements, provide appropriate documentation
and testimony for various public entitlements, and system facilitation. (Fee Estimate:
$5,000)
Upon developer selection, Phase V will include working with the City and property
owners in negotiations with the developer(s) to form an MOU, ultimately leading to
a DDA and implementation. If desired by the City, LCG would be pleased to serve
as the City's advisor throughout this negotiation process. In this capacity, our role
would be to "work in the middle of the deal" for the overall good of the project. By
working in the middle (as we call it), decision--making can be accelerated. Thus, we
keep our focus on the "big picture" - realizing meaningful investment for Federal
Way - while giving the developer a setting to explore details of the project, as well as
raise issues. In the context of this work, LCG will facilitate discussions with the City
regarding partnership terms and tools for consideration.
The negotiation phase is an iterative process where negotiations occur
simultaneously with final planning and deal structuring. The deal points under
consideration will include: sale or lease decisions, phasing, level of funding from the
developer, timing of the development, publici private roles, the appropriate mix of
. /\cal Estllle Strategists 2
1;~
---...
LELAND CONSUL'rING GROUP
L: uses, financing sources, public contributions, off-site infrastructure issues, tenants,
and dedicating portions of the site for future uses. A significant portion of the
eventual DDA will address controls to ensure successful performance and remedies
in the case of non-performance. This phase (and implementation) will be an open~
book process for both partners, thus the City can be assured that the deal is equitable
and there are no unjustified windfalls. At the end of this phase, all of the significant
deal points necessary for a DDA should be in place.
It is difficult to define a budget for the negotiation assistance phase of this work since
the nature and type of negotiations will vary depending on many factors out of our
control, including the level of involvement desired by the City, the complexity of the
plan, and the relative ease or difficulty of dealing with the selected developer. The
process of planning and negotiation could take from 5 to 12 months to complete,
possibly more. While we would attempt to quantify fees for this work prior to
commencement, LCG estimates that active involvement during all phase will
command fees in the range of $35,000 to $50,000 but could be more.
Conclusion
If you have any questions, please do not hesitate to contact Bill or myself at
303.458.5800 or by email: arickel'@1cgdenver.com or bcunnin~ham@1cgdenver.com.
We appreciate the invitation to submit this proposal and truly look forward to the
opportunity to continue to work with you on redevelopment of City Center.
Sincerely,
LELAND CONSULTING GROUP
Anne B. Ricker Bill J. Cunningham
Principal Principal
. [\cul Estate Strategists 3
13S
CITY OF FEDERAL WAY
MEMORANDUM
Date: October 6, 2005
To: Finance, Economic Development and Regional Affairs Committee
Via: David H. Mosele anager
From: Patrick Dohe mic Development Director
Subject: Status of Busine s utreach Efforts
BACKGROUND
As part of her duties, since March 2005, Economic Development Assistant Lillian Yeh
has been visiting businesses throughout Federal Way in response to the Council's
direction to increase direct outreach from the City to local businesses. Ms. Yeh has been
visiting businesses in commercial districts throughout the City on an approximately
weekly basis. In addition to introducing herself and offering herself as a point of contact
with the City, she has inquired about the status of the business and solicited any concerns
or issues that the City could assist with. Presently, issues and concerns expressed by the
businesses have been related to the appropriate department personnel for resolution.
The following is a summary ofthe businesses districts that have been visited and the type
of issues that have arisen.
. Pavilions Center
. Gateway Center
. SeaTac Plaza
. SR 99, Pacific Highway South, between S 272nd Street to S 320lh Street.
. Businesses along S 324th Street
Issues raised and City's final resolution:
. Early morning business trash pick-up disturbs residential neighbors behind the
Pavilions Center. Public Works worked with the vendor and changed the pickup
schedule.
. Uncompleted sidewalk repair and landscaping in front of McDonald's after the
Pacific Highway improvement project. Concern forwarded to Public Works and
both the sidewalk and landscaping have since been completed.
. Security concerns expressed by businesses along Pacific Highway. Concerns have
been forwarded to Deputy Chief Wilson. Extra patrol has been assigned to the
area.
. Complaints of increased presence of homeless persons and prostitutes in the
evenings along the stretch of Pacific Highway around McDonald's. FWPD has
been informed of the increased activities. Extra patrol has been assigned to the
area.
t ,1
. Several business owners expressed their claims of marked decreases in business
in the SeaTac Associates' shopping center; located at 31830 Pacific Hwy S.
Claims are that businesses have experienced a decrease in traffic since the
construction of the Pacific Highway improvements, especially since installation of
the median. Staff reviewed sales tax data from September 2003 through February
2005 and found no dramatic changes in sales revenue either before, during or after
the improvement project. A Helpful Guide for Federal Way Commuters brochures
from Public Works have been distributed to the businesses in the shopping center
for their patrons.
. Several businesses have also expressed their concerns and frustration over back-
ups at the S. 316th St north bound left turn lane into the Pavilion Center from
Pacific Highway S. During the 2004 holiday season this was most notable and the
backup caused a general traffic jam for the north bound traffic on Pacific
Highway S. Public Works indicated that timing ofthe traffic light cannot be
adjusted for specific time of the year..
. Koharu Restaurant claims it has had problems with the Community Development
Services Department regarding its signage. The owner said that the City required
the removal of a sign several years ago, although the owner believed the sign was
in compliance with all signage regulations. She would very much like to replace
the sign. It is unclear why Koharu's signs were removed. The signs may have
exceeded the allowable size or allowable number of signs for the business's
Exposed Building Face (EBF). The owner was informed of the sign regulations
and given a staff contact to reapply for permits.
Finally, Ms. Yeh will continue her weekly outreach efforts in the field throughout the
City's business districts, forwarding on issues and concerns to the respective Departments
and/or agencies for their consideration. Similarly, we will return to the Committee to
provide quarterly updates of this nature.
COMMITTEE ACTION
None required.
A.PPRQVALBY
COMMITTEE:
......':(:!pJllll1ittee Member <Q,~,mmitti;::eMeI1lber
t~L
CITY OF FEDERAL WAY
MEMORANDUM
Date: October 6, 2005
To: Finance, Economi Development and Regional Affairs Committee
Via: David H. Mos e ager
From: Patrick Dohe omic Development Director
Subject: Participation In the mall Business Development Center at Highline
Community College
POLICY QUESTION:
Should the City of Federal Way participate in the funding of the Small Business
Development Center at Highline Community College to provide assistance to small
businesses in Federal Way?
BACKGROUND
In February 2005, Federal Way was invited to participate in the Southwest King County
Economic Development Initiative's Small Business Development Center (SBDC) at
Highline Community College. The Southwest King County Economic Development
Initiative (SKCEDI) includes the cities ofBurien, Des Moines, Normandy Park,SeaTac
and Tukwila; the Port of Seattle, King County and Highline Community College. As part
ofSKCEDI's goal to generate jobs, increase household income and encourage quality
development in the member communities, the SBDC was formed in February 2003 to
provide assistance to small businesses.
The services provided on a one-to-one basis include assisting entrepreneurs with financial
planning and marketing strategies, production and organizational issues, and business
performance assessment. In addition, businesses have access to a wide range of resources
including traditional and non-traditional small business lenders, workshops and training.
In 2004, SBDe counseled 102 businesses, closed $130,000 in loans, invested $53,500 in
equity, and a total of 13 jobs created and/or retained. Year to date in 2005, the center has
. counseled 165 businesses, closed $2.1 million in loans, invested $593,000 in equity,
created 62 new jobs and retained 13 jobs.
Since its inception, approximately 10% or 20-25 oftotal annual assistance inquiries
represented Federal Way businesses. Highline SBDe has been able to serve a small
number of business owners who reside in Federal Way but have businesses in one of the
cities in the SKCEDI partnership. Most of the businesses were referred to the Tacoma
SBDC office; however, it appears that the majority ofthese businesses remain unserved
since Tacoma SBDC counts very few Federal Way businesses among its cl~entele.
)- (
Currently, one full time Business Development Specialist and a half-time administrative
support personnel staffthe SBnC at Highlinc. The Business Development Specialist
handles a full case load of approximately 40~50 per month. If Federal Way chooses to
participate in the program, the Center will have to increase its business development staff
to accommodate the anticipated increase in demand. Initially a half-time Business
Development Specialist will be more then sufficient in handling Federal Way's
businesses. This change in staffing means an increase of$35,000 in SBDC's 2006
budget.
All the participants contribute $10,000, with the exception of$5,000 from Normandy
Park due to the low number of businesses located within its boundary. In addition to the
minimum contribution, each jurisdiction also actively works with SBDC and Highline
Community College to recruitprivate sponsor funding (largely from banks). Dr. Mary
Averett, Dean and Director ofthe Center has been leading this effort. In 2004, SBDC
raised approximately $30,000 from local banking institutions. A budget is attached with
the memo.
Given Federal Way's population and number of businesses (approximately 2,600-2,800),
SKCEDI has requested that Federal Way contribute a minimum of$35,000, in any
combination of city funds and private sponsor funding, in order to extend SBDC services
to Federal Way's businesses.
PROPOSAL
Option 1. Consider CitY funding for up to approximately one-half of the projected SBDe
participation cost (approximately $17,500) during the upcoming 2006 Supplemental
Budget process, to be contingent upon one-to-one matching contributions from the
banking community; and, direct staff to seek matching funding from area banks and
financial institutions.
Option 2. City chooses not to become involved with the SBDC at this time.
STAFF RECOMMENDATION
Staff recommends Option 1.
COMMITTEE ACTION
"I move to approve Option _."
J>-l-
.
Small Business Development Centerat Highline Community College.
I. ORGANIZATIONAL BACKGROUND
Mission, Activities and History
Mission: The Southwest King County Economic Development Initiative's Small Business
Development Center (SBDC) at Highline Community College is an all-purpose small
business resource, providing Southwest King County entrepreneurs with the technical
assistance necessary to grow their businesses and create and retain jobs in order to enhance
the area economy.
Activities: The SBDC is designed to meet the individual needs of Southwest King County
small businesses by providing counseling, training and technical assistance in all aspects of
business management. The services provided on a one-to-one basis include assisting
entrepreneurs with financial planning and marketing strategies, aiding them in dealing with
production and organizational issues, and helping them to assess the performanee oftheir
business. In addition, the SBDC offers business owners access to a wide range of
resources including traditional and non-traditional small business lenders, workshops and
training.
The Business Development Specialist (BDS) employed at the SBDC is an experienced
counselor capable of providing business owners with assistance on the full gamut of
management and technical topics. Specifically, the BDS may help entrepreneurs with:
. Expanding, stabilizing, selling or buying a business venture;
. Business planning;
. Analyzing financial data and information;
. Improving marketing techniques and efforts;
. Starting a business that is past the pre-development stage.
Assistance from the SBDC is available to anyone interested in starting a small business or
expanding an existing small business and who does not have the resources to hire the
services of a private consultant. The SBDC makes a special effort to serve those
businesses and entrepreneurs who are socially and economically disadvantaged. Within the
area of the county served by the Highline SBDC there are four cities and an unincorporated
area each with median household income more than 20% below the median for King
County as a whole. For example, median household income in North Highline (White
Center), an area with a large immigrant and refugee population, is 75% of the County's
median. Moreover, North Highline is the only Census Tract in King County with a
poverty level of over 20%.
Historv: In 1998 an informal partnership between the cities of Burien, Des Moines,
Normandy Park, SeaTac andTukwila; the Port of Seattle; King County and Highline
Community College was formed to promote economic development in the area in
proximity to Sea- Tac International Airport. This partnership, named the Southwest King
County Economic Development Initiative (the Initiative), is an inter-jurisdictional, sub-
regional cooperative economic development effort whose goals are to 1) generate jobs, 2)
1
Southwest King County Economic Development Initiative
Small Business Development Center at Highline Community College
0--3
increase household income and 3) encourage quality development in the member
communities.
By collaborating on economic development goals, the partners are able to achieve more
than they can accomplish by each jurisdiction or institution acting individually. It is
hoped that sometime in the future this cooperative approach toeeonomic development can
serve as a model transferable to other areas.
The Initiative has produced an economic development plan that, among other things,
evaluated the potential for real estate development in the area, assessed the strengths and
weaknesses of the Southwest King County economy and identified areas of potential
involvement. The plan,.in turn, was based on a series of economic development
roundtables and panels which sought to uncover the best means for the area's economic
development. Out of the plan came two implementation projects: a small business export
promotion program and the creation of the SBDC at Highline.
The SBDC was established by the partnership because no such service existed in the area,
a need for small business technical assistance was observed and a business technical
assistance entity such as the SBnC was seen as fundamental to business retention, job
creation and overall enhancement of the area's economic base. In February 2003 staffwas
hired and the SBDC opened its doors. Since its opening, the SBDC has served over 90
entrepreneurs and currently has an active case load of 30 businesses. In recognition of its
achievements, the SBDC received the 2003 Outstanding At-Large Business Award from
the Southwest King County Chamber of Commerce.
Organizational Goals
The SBDC's 2004 organizational goals are to:
1. Secure a commitment from the Washington State SBDC to a) recognize the
Highline SBDC as part of the State System, b) designate the SBDC as an official
small business development center in 2005 and c) provide partial funding for the
SBDC in 2004 and continued funding in 2005.
2. Be recognized as the primary business resource center for Southwest King County
small businesses by the area funding institutions, local governments, residents and
other stakeholders.
3. Act as a catalyst for economic development efforts in Southwest King County
through cooperation and partnership with the publie, private and non-profit sectors.
II. OPERATIONAL FINANCES
Overview
Funding for the first year ofthe SBDC's operation (2003) came from a grant from the U.S.
Economic Development Association (EDA) and matching funds supplied by the Initiative
partners. Year 2004 revenues include a relatively small portion of these funds ($7,095)
that have been carried over and are available to meet expenses. In addition, the Initiative
partners have pledged a total of at least $65,000 for the year 2004 budget. These funds are
2
Southwest King County Economic Development Initiative
Small Business Development Center at Highline Community College
n~4-
.
over and above money they had contributed to the Initiative in the past. Additional "gap"
funding totaling $24,500 has been received for Key Bank, US Bank, Washington Mutual,
the Puget Sound Energy Foundation, Sterling Savings Bank and the State SBDC system.
The Initiative is working with Washington State University (WSU) to have the SBDC at
Highline designated as a full member business development center within the Washington
State SBDC system in 2005. We are confident of securing this designation.
With the State system designation will come financial support. However, the Initiative and
the SBDC must secure funding to finance the SBDC's operation in 2005 as well as to
establish a basis for permanent long-term funding.
Future Funding Strategies
Efforts to raise additional funds for both 2004 and 2005 are currently underway.
It is anticipated thatthe SBDC will receive recognition by the State SBDC as a participant
in the state program. As a result of this designation, up to 50% of the annual operational
expense for the SBDC at Highline could be funded by the State. This level of funding is
predicated on the US Small Business Administration receiving increased financial support
for this fiscal year from Congress. Ifthis does not occur, alower level of revenues from
the State system would be forthcoming. At whatever level of support, the local SBDC will
have to match the State contribution dollar-for-dollar and at least one-half of the match
must be in cash. Thus, the Initiative will have a role in seeking funding to match the State
contribution in 2005 and beyond.
Sources for Current Year Operations
For the current year, the Initiative has secured funding from:
USEDA/Initiative Partner Matching Funds Carryover $ 7,075
Initiative Partner Funds Received to Date (6/2004) 30,000
Key Bank 1,500
Puget Sound Energy Foundation 5,000
Sterling Bank 500
US Bank 5,000
Washington Mutual 5,000
Washington State SBDC 7500
TOTAL FUNDS COLLECTED 6/14/04 $61,575
The expenditure budget for 2004 is $97,000.
Collection of the remaining Initiative Partner $35,000 will essentially cover year 2004
,budget.
In addition, other banks and foundations have been contacted regarding financial support,
especially in terms offunds for 2005.
3
Southwest King County Economic Development Initiative
Small Business Development Center at Highline Community College
])-5
.
III. PROGRAM EVALUATION AND SBDC 2004 GOALS
The SBDC undergoes scrutiny of its operations both through reports to the Initiative's
Steering Committee and Executive Committee on a monthly and quarterly basis
respectively. These reports include a discussion of:
. Outreach efforts;
. Number of core clients served and a summary of their diversity;
. A brief narrative on the nature of the technical assistance provided and to what
extent the assistance provided created or retained jobs and increased or stabilized
revenues.
At the end of the year, the SBDC will be evaluated on the basis of the goals its 2004 goals
established at the beginning ofthe year:
1. Did the SBDC serve 30 core clients during the year?
2. Were 100 clients referred to other business resources in 2004?
3. Did six clients complete a business plan during the year?
4. Did six clients complete and make application for funding their business operation
during 2004?
4
Southwest King County Economic Development Initiative
Small Business Development Center at Highline Community College
]) -~ b
>W(f)C OJLe(f)~ OJeL(f)~ ~~c"'U>(f)mOJOJ n~
nmOJ~ m OJ~ m~OJ~ ~n<~.eeDOO ~-
n~on ~~'O< ~~'O< On<~S~5.(f)m 0a
roxO~ Xno~ Xnn~ ~ OJ--~~ ~e
nO ~ wff ~ mff ~ ->m~~~3OJ(f) m0
Oon~ ~ c ~ C 0.0 mm~rom 0
~ 0 -. o' CD o' ~ 3 <:J ::l ill e
~~3a ~ 00 ~ 00 _""0 ro ~<1l~ Coc
$6' iii' III 0 III 0 ~(f) - ~ /00
OC~0 c c (f)e Ul a
og3 ~ ~ ~~
~~ro ~ CD ~o
mm~ 0 0 O;::l.
~ ~ ~ ~
I r
-. 0
co :E
Z -
....
w~~w ~www = ..... ....~
....~mo ~o~o ~~O""N""""mo
0000 0000 omoooo~~o
0000 0000 O~OOOOONO
0000 0000 o~ooooo~o
mmn m~n I OO+""'i~c"'U>(f)mOJOJ o~
OJLg OJ~g ~~c~og~~~~~~g m~ (f)
m5;- lll...,_ <O">~ OJ-'-'~~ ~~ 0
::J -. a ~ -. a r:r. a - > m ~ "'"1 = 3 OJ (f) 1lI C
@ ~ co@ ~ co -t cn""'io 3 a 0 co iil lJl ro ro ~ m en :f
-0 -0 om__. 3 < ~~1lI eCD :E
IRt. U ~ IRt. U ~ - 0 ~ ~ -- "'U ro ~ m...-, a. Co ro
\~ o' 0 \<:9 o' 0 !!!. "'U - (f) ~ (f) - ;:;: "< co)> III
W::lw W::lw (f) e (f)e W an ~
~Ulw O1I1lW ~ C~ 3 ^
~ IRt. 01 0 IRt. 01 -a ~ "'0"8 _. 3'
0\<:90 O\~o ~ 0 ~ ~ co
owo owo o;::l. 3,;::l. 00 n
~o ~o ;::l. ~ e 0
o 0 ~ "0 e
o 0 0::::: "0 ::J
o 0 OJ 0 .:<
<1l ~ (f)
~ 3
III
::J .... OJ
Q. (O-:::ON(l)........01 C
e ~O~O~AO""N........mo~.
a --~-~--------::J
<1l ooooom000001010 <1l
Ul ooooO~OOOOONo III
~ 090000100000010 III
ro 0
c. <1l
<1l <
..., <1l
~ + + Ic"'U>mmOJOJ 0)> 0
< 00 I ~. ~. -I 0 < ::l. C C D 0 0 1lI n ~
nr e C c ~ C 01 g. 0 < ;;. s ~ 5. (f) (f) 0 Co 3
'< 0" ~ r:r OJ r:r > ~ > OJ 3' ===1 = ~ CD (f) ~ "T1 <1l
~ ~OJ-tO-f3C.-am(Q""<1l3<1l111 m~ ::l
m --. ocno 0 lllm<1l::J- co. ~
n Om_ -~ 3~ < ::J~lll -~ n
0. -O~~~ ~ _...., ro ~",.""I ....
m !!. - (f) - (f) ::J (f) - ;:t' "< CO AJ <1l
~ "'U ~ C (f)e W a- a
o (f) OJ '0 C~ ::e ~
~ C ro "0 "'O~ ~
<> ~ ::J 0 ~o '<
3 ~ - ;::l. O;::l.
o 0 (f);::l.
..., ;::l. m
ro -
-
cr OJ
e ro
m ::J
5' ---
ro
m
III
CD ......_.-1., ~
~ W....AWON=........~
NON~""'O~AO""N""""(J)O
ooooooo<oOOOO~~O
oooooOO"'-JOOOOONO
09000000100000010
I
-:D-7
CITY OF FEDERAL WAY
MEMORANDUM
Date: October 6, 2005
To: Finance, Econ .rnic Development and Regional Affairs Committee
Via: David H. anager
From: Patrick Doher c nom~c Development Director
Subject: opment Effortfor Northern Section of Pac?/ic Highway S
BACKGROUND
Staff has begun work on a new economic development initiative to complement the City
Council's redevelopment plans to create a more vibrant City Center. The northern
corridor of Pacific Highway South spans from S 272nd Street down to S 31 ih Street,
north of the City Center. Zoning along this major corridor includes office, commercial
and residential. Currently, the corridor is underdeveloped with numerous vacant parcels
and commercial buildings. Given that Pacific Highway S functions as major arterial in
Federal Way, these parcels and buildings otTer great visibility and redevelopment
potential for commercial and residential opportunities should be strong.
In response to these opportunities, staff has taken steps to gather information that will be
useful in the future development for the area. A detailed survey of the developable
properties along Pacific Highway between S 2721ld Street and S 31ih Street has been
completed. Staff has gathered relevant information on developable parcels, such as size
of property, current valuation and photos. Providing access to this databasc via the
Internet will assist in directing potential developers and investors to the opportunities the
area has to offer. The database will be available on the City website in the near future.
Attached you will find sample print-outs from the City's web site that include such
property information.
This publicly accessible property database represents the first step to encourage economic
investment and redevelopment in the north corridor of Pacific Highway South. Staff
will continue to explore other potential proactive steps or tools in order to foster
redevelopment in the area and will report back to FEDRAC regarding these options.
ST AFF RECOMMENDATION
NIA
COMMITTEE ACTION
None required.
E-\
City of Federal Way - Site 1 Building Locator Page 1 of 1
A~ Federal Way
Site I Building Locator
To help you find a wide array of new redevelopment opportunities or to m;
business even easier, use our new on-line Site/Building Locator to find rete
Business & Economic building space or available land to meet your needs.
Development
~ Print . , . \SI View listings of office space
. S View listings of retail spac~
~ S,Cbarnb.er-OLC"Q01mel]::e . & View listings of industriallfle!<building space
C=-' c.itY-.MaD-s . . View listings of available. or for available land
C=-' City Profile . . ~jeY.Lli.stings. of redevelopable land ill.the northern SR 99 corrido[
C30 Doing Business with the City Each listing includes the site's address, building or land square footage, lee
~ E"QOQIIlj~ Development features, as well as a listing agent and contact information.
:: O!Jtstanding.LQl;9_tiQ!1
:: Outstanding _"Y~~_"J'WJ"~''',~"._,~,^'~~_'"~~M'_._.,..",.''"U",._"~',_~,~_.____,________~",_,~_~_.._~,.~~","~__.~_.~".___'_._'___,._____..,~"'.~___~,~~~"..
Qgmqgr~Qbks.
:: OJ.ltSta~[L(et Patrick Doherty
Conditions Director of Economic Development
:: Quts.talliijl12,\{j~itQr City Manager's Office
Destinations Phone: (253)835-2612
:: City Center E-mail: EcoDevca>cityoffede.r.alway.com
Redevelopment
:: Site I Building Locator
:: Links to Other Sites
00 Franchise & Leasing
C=-' D E 'tsJi li.te .
-- . ~l . _ nsmg
C30 Projects & Construction
<0 D Site / Buildin~ Locator
00 DS.treets_frTranspor.taUQn
<0 Zoning. Codes & Planning
E~2.
http://www.cityoffederalway.com/Page.aspx?view=416 1015/2005
pachwystat Image Map Page Page 1 of 1
Click on the map to view an area in more detail,
and obtain information on properties:
Northern SR 99
Corridor -
Redevelopment
Opportu nities
Legend
o Redevelllpml!nlOpportunity
P<oiWh;
: Lakes
~'1 PoIrt
I
l
~ 0.125 0.25
N 0
> , 'Miles
,
;'H. A Federal Way
.ill
E-3
http://webedit.cityoffederal way .comlpreview/folderslhomelbusinesseconomicdevelopment... 10/6/2005
pachwy 1 Image Map Page Page 1 of 1
,..
"~"i 'j
Redevelopment ,,/.. -;' t,,"';;J;:::J _M:
"', ..., / '~ ,-.-..." 1 "I
· U J'.~ Ii.. jCl :; '.' .
Opportunities _.n,__'::::?,' i;i L'~t:;!L!L__ I
i . .. '. . .......1..n...._
Map 1 '-1\~.._..-:,n1~.,:"..___L__-:c_.._.._..".. s 2UNOST
'. .\\\ t! ~'.".' ;"""r.' i.c) '.. '.':~.'.:"".'.'....'.:-..--~'---'-.'~....'
t '.' . pW! -, r i ' '. .'. .., I rl '--"
-rr.:j~ f:,:,,"':i -../ (" \.. j:"""':,,,"-:"::'::',,,,:~ ::'~: t7':l't'"''';-':t'!..
r' \ "'- ,'";pl' i i.. .r"U'1 '. ..'....'"....~'.'....< lj' --'- f
,~... . .:;' -\ f : ~ '~..:J .'.:"'''..' c;.
i:i?'~ ,,~ '] .' /. ...... '7':: ..' .....,t""l. .. ......(') .'.'."'.'
,'::1\ ~;:1 ,;:>'1), " , . if'"-', k" ".,,~.
~\ ?'o ! N r b
~,;> !L {..j . I '::" ,,\_\'
""",.19 J',,>I' , ;' ~ ,] I.J1'..........1: Ii"
""" Ci .:-~ 'I "'"",d- , . " [J~'
.~ ~ ~,s:::~ito / ". fJr~.r-i~R - )~
-(!1J ,:.1 q) b ,,'. ~" , : ~t::}UI
KII~' JffA' "":4
\!I,<,'\ ,,".\\"""J' / .:to fI' '.
,\ w\l. .:oJ.';" "j.) ...... .
~ 0 125 250 Feet --~~... .-l~, '-~- ,,- - "...............
I I I ,:' (J ;' I
lW.. '""" is a"""'f>Olried b, NO .....lTVlIiIl..,./ ~ / i.."
., . .. 11""1 c-f']
..f":." ':~: . J l 1 ;." \-,.;J
00 ---..---"", I , " ']
_..A-ta.....'J __".... . "Ii _' .,. i ./ ,/ ' 1
, ~ E.-' 1 I....... -.-....r---... ....-.....--..., I' I
",.,' :!:;b c.'" "''''i '1'!" ...' :(.j'
":i-"':;Y .:'.,lI' ...;.~ I~;:>".~ .'~" j , i i '.....
-~~--< ~', ! l ,/ ,\ f
r""} , . .' I .,.
- r"-- --", I '" - - -I! I I,
'\ f'l' 'i'::1 'I I ,
ilff1w~ w ~.,..~"'""'"'~ r-j J
: "1--..1 f(l..,:J1 iun~.~71 ;' / ,,(
a -J f'1 I "r I ' .. '" ,<,. ,.,'\. -.) "
fJJ .;] - -" l$lIl2GIt t111 -'\} f .
...., r-- '27lmtT 1.=" ,."..,.,. -I'~'''''''T'
-- , J~.j ~ r ~~ I I Ciill i '"f ..Cl.... I~ff;;~:- ','I"U_"'-_U- -, -.-. n__._.~_....
"!,,lfilit r~-; .I~j ! .I!.. k:l i .
L _(<~ hI" , '~i~ "'/!'--." i
~trlCs~~\, ii!.~'" . .' '~~i' de) ,r.
'- i -, ~n' \;.!~~~~r] s't, i ~-/L~
I \...'...............".... "1 ,~... I "', I
;i).t'-;3:("''', .' ': .. /', .1,
, " t , " .." J_____ - - - I " \tp
11 \i 't-." I'" '~. I " .. ^-"
1\ Ic.\-:' \::) / / ~O"" I ,:-) -.1"...., ) r:""\ /_ ~
" '} I ~ _ \ ' ...~, ............. "Ool ' . I, rl. - I
i . ,~\ tJ l, ~,- i .. ! \!-",; ,""_' ,r" I I I, ~}V' '" ~"
i ,...\ ,1,1,' 1 '.., ,5t 'k...) ,.,... ,".1.' :11 i'l I A'-S','.,\'~;' /,1"'-'-
I' .. I -I~ ---r- ,....\;-"'".' 1-",". I""" d,~""........;J I ::",," ,rl i'.,.,,,;;
'I ' . 7 I' - ~~"-- - - I ","y, '- , y
" ~'11' , 1 ," ',I. J ------- .f-rtt....-. '''.
'::'.I 'r - j ',"" 0204 ~\, ~r~ "'~\r ",'~ \ -. ~, I L.:,;,'J: f~'/. I
it! ~I.jll'" ~I ,".', '"" ""~-..-. ',...,.....' ..-<.:<t:') 'ol-.
II- I 11 "I ,,\j I' , ,\ ' ,'......01.. ;;J::_' { " ~">"Y ,
- "j Jot, '. I I" -' " '.; .~~~ .. .. --' I' '\'.~, \
I ;']'. I " I 1 e, n ...~~.1" ..' _' .. .~\ ..~, I
{_!. I J "j _.-.. 0) f"':;";;~':c""::'::"" I O!:jz #..- (\ <~,/
- - -l._ ___L -- - ... .>0 Ii .,
UT ....... ~ i... ,Q j f.:: '" .)/;f.;r
--, - - ~r .--(....,..,.- R7 ...' 1 171 1'1 -- ~", ~:.~
f ~ ~ " I I ,~ , ,~, ," ," '-
j "'J 'I t -,. ,~.ll... %', I r ,-- , , "-"~"::.
- "IL 1'~LlI I 1 0- , '-~'! I i'r't,.,:,\, .. </;.~}
Ic.jl "lll f I' 1'!-"' \ Ilqtr ' ,',', , ' " I
I ,""" I--~' 11,.1 J'JIIII :'-,--' /'\:\,~/,,).
, '"l'f I Ii! - I I' f'.. . ._. ;.-..( {,\ <'''.... "J. ';c..bel
Iii I , :: CJ j ( .. -. ,....1~):" '""cl \, ",/ t,-?~
! I "!l' I (- I i'\ 'W \. ,'- no;:', .'.
E>4
http://www.cityoffederalway.comlfolderslhomelbusinesseconomicdevelopmentleconomicd. .. 10/5/2005
City or Federal Way - 3322049009 Page I of2
~ Federal Way
Site / Building Locator
Pacific Highway South Redevelopment Opportunity:
Business & Economic Parcel # 332204-9009
Development 27400 Pacific Highway 5
~ ". Print ."
lilYie.w..current property info.rm...ation from the King County's Assessor'~JH1i
~ -.Chamber of Comrnelce (This is an external site.)
<0 City Map~ If you are interested in this site, please contact:
<0 City Profile
<0 Doing Bu~lness with the City Patrick Doherty
<QI ECQnomic Development Director of Economic Development
:: Outstanding LQcation (253) 835-2612
:: Qutstanding E~trick. DohertylAlcityoffederal way .com
Qemographics
:: Qut~tanding Market or
Conditions
:: Outstanding.'lisitor Lillian Yeh,
Destinations Economic Development Assistant
:: City Center (253) 835.2501
Redevelopmem Lillian. YehlAlcityoffederalway,CQffi
:: Site I Building Locator Site PhotOs..;.
:: Unks to Other Sites
CJt Franchise 8: Leasing
00 D Permits,& Licensing
CJt Projects 8: Constr.!.!C1ion
0, D Site I Building Locat9L
<0 D .streets 8: TranspOl1ation
~ Zoning,..cQdes 8: Planning
E-5
http://www.cityoffederalway.com/Page.aspx?page=887 10/5/2005
. 1iI ~.. .
. . . . . ......
.
...
J\~;";-~ :r;. .
.._.".J.._ . ","-
..~-
:...~~i,:'~~~'~ "~- -
---.--- --.-::~ -~"-, m.. ~-~2",:~~::._~. ---s-
Uo,,,':''''''::'.
-~".. '~1~~~'~~.~: . -.,
~'.'~7:~; - .
~..,..,-...:.:.-........ - -,'-
--. -............;
.,
...-...... ---.
..
. II
.
.
CITY OF FEDERAL WAY
MEMORANDUM
Date: October 6, 2005
To: Finance, Economic Dcvelopment and Regional Affairs Committee
Via: David H. MO~ Manager
From: Iwen Wang, Management Services Director ~
Subject: Sprint Spectrum Panther Lake Site Lease Extension
Policy Question
Should the City extend the lease agreement for five years based on updated lease rate starting at
$2,000.00 per month?
Background
The City initially entered into the site lease agreement ("Lease") with Sprint PCS for the Panther
Lake cell tower siteetIective January 2, 2001. The Lease is for five years and may be renewed
for three consecutive five-year terms. The initial monthly rent is $1,500.00 per month, and will
be adjusted 4% each year thereafter. Applying the escalator, the initial rent effective January 2,
2006 would be $1,825.00 per month. The Lease provides for additional rent adjustments at
subsequent renewal terms only if the rent rate is more than 20% below market and that thc City
and Sprint PCS were to conduct an MAl appraisal to determine the market rent.
After some discussion with Sprint PCS, they have agreed to increase the monthly rent to
$2,000.00 per month effective January 2,2006, without appeal process, with the remaining terms
and conditions unchanged.
As a side note, the City recently received a proposal from Cingular Wireless to amend an existing
site lease to lower the rent as they have duplicate sites in the city from the mcrger with AT&T
Wireless. They stated either the City modify the lease terms (lower rental and limit future rent
increases to 4% for each five-year term), or they will most likely terminatc one of their leases at
the end of current term. StatI declined the proposal as it could affect the market rate, and thus
have compounded impact on other site leases as well. It is important to keep in mind, however,
that as the industry continues to consolidate, we may need to consider lower future rents and/or
see reduced site leases.
Staff Recommendation
COlIDcil approves the proposed site lease extension and forwards the First Amendment to Lease
Agreement for full Council approval.
Committee Recommendation
Forward Lease Extension to full City Council for approval on November 1, 2005 Council
meeting.
APPROV AL OF COMMITTEE REPORT:
Committee Chair Committee Member Committee Member
f'-I
FlRST AMENDMENT
TO
LEASE AGREEMENT
FOR
SPRINT SPECTRUM LP
(AG # 01-05)
This First Amendment ("Amendment") is dated effective this 26th day of December, 2005,
and is entered into by and between the City of Federal Way, a Washin!:,rton municipal corporation
("City"), and Sprint Spectrum LP, Delaware limited partnership ("Tenant").
A. The City and Tenant entered into a Lease Agreement dated January 2,200 I, whereby
the City agreed to lease to Tenant a portion of the property, located at 34519 14th Way SW ("Lease").
B. Section 27.b. of the Lease provided that any modification of or amendment to the I
Lease must be in writing and executed by both parties.
C. 'fhe City and the Tenant desire to amend the Lease to renew the term for an additional
5 years and to increase the monthly rental rate.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged
the parties agree to the following terms and conditions:
1. Term.
Pursuant to Section 2 of the Lease Agreement, the Lease shall be renewed for an additional
five (5) year term commencing on December 26, 2005, and expiring December 25, 2010, unless
renewed pursuant to the terms of the Lease Agreement.
2. Rent.
Section 3 shall be amended to increase the rental rate paid by the Tenant to the City during
the new term. During thefi ve year renewal term, Tenant shall pay to City rental fees in the amount
of Two Thousand and Noll 00 Dollars ($2,000.00) per month, subject to the annual percentage
increase set forth in the Lease Agreement.
3. Full Force and Effect.
All other terms and conditions of the Agreement not modified by this Amcndment shall
remain in full force and effect.
DATED the effective date set forth above.
f- 2
CITY OF FEDERAL WAY
By:
David H. Moseley, City Manager
PO Box 9718
Federal Way, WA 98063-9718
ATTEST: APPROVED AS TO FORM:
, City Clerk Patricia A. Richardson, City Attorney
TENANT:
SPRINT SPECTRUM LP
By:
STATE OF )
) ss.
COUNTY OF )
On this day personally appeared before me , to me known to be the
of that executed the foregoing instrument, and
acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for
the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said
instrument and that the seal affixed, if any, is the corporate seal of said corporation.
GIVEN my hand and official seal this day of ,200_.
-
(typed/printed name of notary)
Notary Public In and for the State of
My commission expires
F- 3
--.-----....----.....
ORIGINAL ~CJ~y&o/"..r; A.I1..Mt~.LM€#/
(!,&./n'pUJ ,IJ,e.,'v ~
~~ <.)\-6
SITE LEASE AGREEMENT
THIS LEASE is entered into thi~ day 0~/,(tlttf,200~, by and between the CITY
OF FEDERAL WAY, WASHINGTON, a municipal corporation (hereinafter "City") and SPRlNT
SPECTRUM L.P., a Delaware limited partnership, with its principal office located at 4683 Chabot
Drive, Suite 100, Pleasanton, California 94588 (hereinafter "Tenant").
City is the owner in fee simple of public open space located in the City legally described on
the attached. Exhibit A C"City Property"). Tenant desires to lease space on and air-space above the
City Property, as described below, for the installation and operation of certain equipment which
include antermas. connecting cables and seven (7) equipment cabinets to be used by Tenant and
appurtenances (collectively, "Equipment") for use in cormection with its operation of telephony
wireless communications service more specifically identified as personal communications service
("PCS").
In consideration of their mutual covenants, the parties agree as follows:
1. Leased Premises. City leases to Tenant and Tenant leases from City, on a non-
exclusive basis, a portion of the City Property as depicted in the attached Exhibit B, together with
necessary space and rights for access and utilities ('<the Premises"). Tenant may locate its
Equipment on the Premises in the manner as described specifically in the attached Exhibit C.
Tenant may not add Equipment in addition to that shown on Exhibit C other than as may be
approved in writing by the City. The City's approval of additional anterma will not be
unreasonably withheld; the City's approval of additional cables, equipment cabinets and/or
appurtenances may be withheld in the City's sole and absolute discretion.
2. Term. This Lease shall be five (5) years and shall commence on the date of
execution by the City (the "Commencement Date") and shall end at 12:00 a.m. (midnight) on the
fifth (5th) anniversary of the Commencement Date. This Lease may be renewed for three (3)
additional five (5) year terms upon giving written notice to the City no more than six (6) months
before and no later than three (3) months before the end of the current five (5) year term. The City
may refuse to renew (i) in the event of an uncured. breach of the Lease during the preceding term, or
(ii) ifthe fair market rental, as determined. by an independent appraiser jointly selected and paid for
by the City and Tenant, is 20% more than what would otherwise be due by the Tenant hereunder;
provided that the City gives 60 days notice to Tenant and MAl real estate appraisal methods are
followed and that Tenant shall have the opportunity to pay such higher rental figure. Any such
refusal by the City shall be in writing and shall be sent to Tenant at least sixty (60) days prior to
expirationofthe then current five (5) year term.
3. Rent
a. During the first five (5) year term Tenant shall pay to the City rental fees in
the amount of $1500.00 per month, subject to the annual percentage increase set forth below, which
monthly rental figure is due on the 5th day of each month (in addition to the depositof$1500.00
from Tenant to City to ensure performance but not as a limitation of Tenant's liability herein). The
-1-
F~4
~
deposit shall be held by the City without liability for interest. Tenant specifically waives any right
to bring an action that the rent obligation herein is contrary to the provisions of any local, state or
federal law, provided that if the rent obligation is determined to be contrary to local, state or federal
law through legal actions brought by others then Tenant shall have the right as Tenant's sqle
remedy to immediately terminate this Lease without penalty or other liability at its sole discretion.
If this Lease is terminated at any time other than on the last day of the month, rent shall be prorated
as of the date of termination and, in the event of termination for any reason other than nonpayment
of rent, all prepaid rents shall be refunded to Tenant, less any expenses or damage incurred by the
City as a result of the termination. Tenant shall pay the City a late payment charge equal to five
percent (5%) of the amount due for any payment not paid when due. Any amounts not paid when
due shall bear interest until paid at the lesser of the rate of one percent (1 %) per month or the
highest rate permitted by law.
b. The monthly rental figure shall be increased by four percent (4%) per year
throughout the term of this Lease and renewal terms (if any).
4. Reimbursement Within thirty (30) days of the Commencement Date, and
following receipt of an invoice from the City, Tenant shall reimburse the City for all of the City's
costs and expenses to negotiate and execute this Lease, induding attorneys' and consultants' fees
and the time expended by the City staff and City Attorney's office. The amount to be reimbursed
shall not exceed Fifteen Thousand Dollars($15,OOO.OO).
5. Permitted Use of Premises.
a. Tenant shall use. that portion of the Premises leased herein for the
installation, operation and maintenance of its Equipment to provide PCS wireless communications
and no other service. The Equipment and Premises may not be used for cable television or open
video system services.
b. Tenant shall, at its expense, comply with all applicable federal, state and
local laws, ordinances, rules and regulations (including laws and ordinances rdating to zoning,
aesthetics, landscaping, fencing, permits, removal and abandonment, screening, health, radio
frequency emissions, other radiation and safety) in connection with the provision of PCS wireless
communications service and the use, operation, maintenance, construction and/or installation of
Equipment and/or the Premises; provided, however, that Tenant shaH not be required to comply
where its rights have previously vested by operation of law. Tenant shall obtain all required
governmental approvals, authorizations, licenses and permits at Tenant's expense. City agrees to
reasonably cooperate with Tenant in obtaining, at Tenant's expense, including reimbursemeI1s of
City's reasonable attorneys, administrative and other related fees, any licenses and permits required
by Tenant's use ofthe Premises.
c. Tenant shall remove the Equipment from the Premises upon termination of
the Lease. Upon removal of the Equipment, Tenant shall restore the affected area of the Premises
to the reasonable satisfaction of the City to its condition prior to installation of the Equipment,
normal wear and tear excepted. All costs and expenses for the removal and restoration to be
performed by Tenant shall be borne by Tenant. If, however, Tenant requests permission not to
remove all or a portion of the improvements and City consents to such nonremoval, title to the
-2-
F-5
affected improvements shall thereupon transfer to City and the same thereafter shall be the sole and
. entire property of City. and Tenant shall be relieved of its duty to otherwise remove same.
6. Improvements. Tenant may update or replace the equipment from time to time
provided that toe replacement facilities are not greater in number or size or different in type. color
or shape or height than the existing facilities and that any change in their location on the Premises is
approved in writing by City which approval shall not be unreasonably withheld and which shall be
pursuant to lawful authority. Subject to the foregoing. Tenant may change the Equipment
configuration specified in attached Exhibit C or add facilities with the prior written approval of
City. Tenant shall submit to City a written request for any such change or addition and any
supplemental materials as may be requested. for City's evaluation and approval. City shall have
thirty (30) days after receipt of all requested materials in which to respond to such request and
unless City so notifies Tenant to the contrary such approval shall be deemed granted. No lights or
signs may be installed on the Premises or as part of the Equipment, unless required by
governmental action or regulation and approved by applicable City process( es); provided. however.
that subject to approval through applicable City land use or building permit approval processes.
Tenant may install one service light, no higher than eight (8) feet above the ground. The service
light (if any) may be used only to provide light during maintenance of the equipment cabinets. and
shall remain off at all other times.
7. Premises Access. Tenant shall have reasonable access to the leased portion of the
Premises (described in Exhibit B) 24-hours-a-day, 7 days-a-week. City retains and reserves the
right to access the leased portion of the Premises (described in Exhibit B) at all times; provided that
in non-emergency situations. Tenant shall be given at least 24 hours prior notice and an opportunity
for Tenant's representative to accompany the City.
8. Utilities. Tenant shall have the right to install needed utilities and. at its expense.
separately meter charges for the consumption of electricity and other utilities associated with its use
of the Premises and shall timely pay all costs associated therewith.
9. Maintenance. Tenant shall. at its own expense, maintain the Premises and
Equipment on or attached to the Premises in a safe condition and in good repair. Additionally.
Tenant shall keep the Premises free of debris caused by Tenant and anything of a dangerous,
noxious or offensive nature or which would create a hazard or undue vibration. heat. noise or any
interference with City services caused by Tenant. Tenant shall have sole responsibility for the
maintenance. repair and security of its Equipment and leasehold improvements and shall keep the
same in good repair and condition during the Lease term.
10. Compliance with Laws. Tenant's use, of the Premises is subject to its obtaining all
certificates. permits, zoning and other approvals that may be required by any federal, state or local
authority or from any other necessary person or entity. Tenant shall erect, maintain and operate its
Equipment in accordance with applicable site standards, statutes. ordinances, rules and regulations
issued by the Federal Communications Commission, the City, federal or state government or any
other governing bodies; provided, however, that Tenant shaH not be required to comply where its
rights have previously vested by operation of law. Tenant acknowledges that all aspects of this
Lease are consistent with the Telecommunications Act of 1996. existing Washington State statutes
and Engrossed Substitute Senate Bill 6676 (as such Bill was passed by the Senate and House of
-)-
F--b
Representatives of the State of Washington) and the City Code, and to the best of its knowledge,
this Lease is consistent with all other applicable federal, state and local laws. However, if the Lease
is determined to be contrary to local, state or federal law through legal actions brought by others
then Tenant shall have the right, as Tenant's sole remedy, to immediately terminate this Le~se
without penalty or other liability at its sole discretion). In addition, Tenant specifically
acknowledges that all or a portion of the Premises is dedicated public open space subject to City's
regulatory and proprietary authority. Nothing herein shall be deemed to limit, impair or affect
City's authority to franchise or otherwise permit usage of this open space pursuant to its regulatory
or proprietary authority.
11. Interference. Tenant shall not use the Premises in any way which wrreasonably
interferes with the use of the Premises by City; or lessees, tenants or licensees of City, with rights to
the Premises prior in time to Tenant's. Further, Tenant shall operate the Equipment in compliance
with the requirements of Federal Way City Code ("FWCC") ~22-966(i)(2). and in a manner that
will not cause interference to the City, including City, police or Valley Communications, and other
lessees, tenants or licensees with rights to the Premises prior in time to Tenant's. City shall have
the right to permit co-location of other telecommunications facilities on the Premises, pursuant to
the Federal Way City Code Section 22-966(h).
In the event that any other tenant's activities interfere with Tenant's use of the
Facilities, and Tenant cannot work this interference out with the other tenants, Tenant may, upon 30
days notice to City, terminate this Lease and restore the leased premises to its original condition,
normal wear and tear excepted. In such event, Tenant shall be entitled to a pro rata refund of all
pre-paid rent. Tenant shall cooperate with all other users to identify the causes of and work towards
the resolution of any electronic interference problem. In addition, Tenant agrees to eliminate any
radio or television interference caused to City facilities, including without limitation City, police or
Valley Communications equipment, or surrounding residences by Tenant's facilities at Tenant's
own expense and without imposition of extra filters on City equipment. Tenant further agrees to
accept such interference as may be received from City operated equipment; provided that the City
will make a good faith effort to mitigate or eliminate the interference that its equipment causes, but
not to the degree that mitigation will materially compromise the functionality of the City's
equipment.
12. Termination Except as otherwise provided herein, this Lease may be terminated
without penalty to City or further liability of City as follows:
a. Upon thirty (30) days written notice by either party for failure to cure a
default or breach, including nonpayment of amounts due under this Lease, within that thirty (30)
day period; or such longer period as may be required to diligently complete a cure commenced
within the thirty (30) day period; or
b. Upon ninety (90) days written notice by Tenant that the Premises are or
become unusable under Tenant's design or engineering specifications for its Equipment or the.
communications system to which the Equipment belongs.
-4-
F-7
c. Upon thirty (30) days written notice by City if Tenant abandons or vacates
or ceases using the Premises or Equipment or if Tenant is adjudicated as bankrupt or makes any
general assignment for the benefit of its creditors or if Tenant becomes insolvent.
d. Upon thirty (30) days written notice by City for reasons involving public
health, safety or welfare. In addition, if the public's health, safety or welfare is endangered by the
operations of Tenant's Equipment and Tenant fails to discontinue its operations as soon as is
reasonably possible after receipt of notice thereof, and thereafter Tenant is unable to cure the
conditions causing the endangerment within thirty (30) days after receipt of such notice, City may
immediately terminate this Lease.
e. Immediately, upon written notice by City, in the event of an emergency, as
determined by the City in its reasonable discretion.
In the event of termination, Tenant shall pay City all monies due, including attorney
and collection fees and any other damages incurred by City as a result of such termination but
limited, solely to the Lease termination and excluding unrelated consequential or incidental
damages, e.g. an unrelated emergency.
No re-entry and taking of possession of the Premises by City shall be construed as
an election on City's part to terminate this Lease, regardless of the extent of renovations and
alterations by City, unless a written notice of such intention is given to Tenant by City.
13. Indemnity and Insurance.
a. Disclaimer of Liability. Except to the extent caused by the sole negligence
or willful misconduct of the City, its employees, agents or contractors, City shall not, at any time,
he liable for injury or damage. occurring to any person or property arising out of Tenant's
construction, installation, maintenance, repair, use, operation, condition or dismantling of the
Premises or Tenant's Equipment; provided, further, that neither City nor Tenant shall be liable for
claims arising from the other's sole negligence, breach of contract or intentional acts or omissions
of their officers, boards, commissions, employees, agents, attorneys and contractors.
Tenant releases and waives any and all claims against the City, its officers, agents,
employees or contractors for damage to or destruction of Tenant's Equipment caused by or arising
out of activities conducted by the City, its officers, agents, employees and contractors, in the public
ways and upon City-owned property subject to this Lease, except to the extent any such damage or
destruction is caused by or arises from the sole negligence, breach of this Lease or any willful or
malicious action on the part of the City, its officers, agents, employees or contractors. Tenant
further agrees to indemnify, hold hannless and defend the City, its officers, agents, employees or
contractors against any claims for damages, including, but not limited to, business interruption
damages 'and lost profits, brought by or under users of Tenant's facilities as the result of any
interruption of service due to damage or destruction ofT enant's facilities caused by or arising out of
activities conducted by the City, its officers, agents, employees or contractors, except to the extent
any such damage or destruction is caused by or arises from the sole negligence, breach of this Lease
or any willful or malicious action on the part of the City, its officers, agents, employees or
contractors. Tenant further agrees to indemnify, hold harmless and defend the City, its officers,
-5-
F~e
agents. employees or contractors against any claim that location of the Equipment on the Premises
is not permitted by the Conditions. Covenants and Restrictions ("CCRs") of the Park Lane Estates
Division 2 Homeowners Associatim, as now existing or as may be amended.
The provisions of this Section shall survive the expiration. revocation, or
termination of this Lease.
b. Indemniticationand Hold Harmless; Tenant and City shall, at their sole cost
and expense, indemnify and hold harmless one another and their officers, boards, commissions.
employees, agents, attorneys, successors, assigns and contractors from and against any and all
liability, damages and claims (including, without limitation. reasonable fees and expenses of
attorneys, expert witnesses and consultants), which may be asserted by reason of any act or
omission of each, its employees, agents or contractors or which may be in any way connected with
its intentional acts, omissions or breaches of contract.
The provisions of this Section shall survive the expiration, revocation, or
termination of this Lease.
c. Insurance. During the term of this Lease, Tenant shall maintain in full force
and effect and at its sole cost and expense, and naming City, its officers, boards. commissions,
employees and agents as additional insureds, the following types and limits of insurance:
1. Comprehensive commercial general liability insurance with
minimum limits of Two Million Dollars ($2,000,000) per occurrence and Five Million Dollars
($5.000,000) in the arulUal aggregate.
u. Comprehensive automobile liability insurance with combined single
minimum limits of Two Million Dollars ($2,000,000) per occurrence and Five Million Dollars
($5,000,000) in the annual aggregate. .
lll. Worker's compensation insurance and such other insurance as may
be required by law.
d. Evidence of Insurance. Certificates of insurance for each insurance policy
required by this Lease, along with written evidence of payment of required premiums, shall be filed
and maintained with City prior to commencement of the term of this Lease and thereafter.
e. Cancellation of Policies of Insurance. All insurance policies maintained
pursuant to this Lease shall contain the following or substantially similar endorsement:
"At least thirty (30) days prior written notice shall be given to City
by the insurer of any intention not to renew such policy or to cancel,
replace or reduce coverage regarding the Premises, such notice to be
given by registered mail."
f. Deductibles. All insurance policies may be written with conunercially
reasonable deductibles.
-6-
F-q
g. License. All insurance policies shall be with insurers licensed to do business
in the State of Washington and with a rating according to Am Best of A.IV or better, unless waived
by the City.
14. Holding Over. Any holding over after the expiration of the term hereof, with the
consent of the City, shall be construed to be a tenancy from month to month and shall otherwise be
on the tenns, covenants and conditions herein specified.
15. . Acceptance of Premises. Tenant accepts the Premises in the condition existing as of
the Commencement Date. City makes no representation or warranty with respect to the condition
of the Premises.
16. Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed given if personally delivered or mailed, certified mail, return
receipt requested, to the following addresses:
If to City, to: City Attorney
33530 - 1st Way So.
P. O. Box 9718
Federal Way, WA 98063.9718
With a copy to: City Manager
33530 - 1st Way So.
P. O. Box 9718
FederalWay,WA 98063.9718
If to Tenant, to: Sprint Spectrum L.P.
4683 Chabot Drive, Suite 100
Pleasanton, CA 94588
17. Subleasing or Assignment Tenant may not assign this Lease or sublet the Premises
or Equipment, in whole or in part, without the prior written consent of City, which may not be
unreasonably withheld. City may inquire into the qualifications and financial stability of a potential
assignee or sublessee and reasonably request any information related to such inquiry and may also
condition such approval upon the financial condition and technical expertise of a proposed assignee
or sublessee and upon the resolution of any compliance obligation under the Lease. If the City has
not responded to a request to assign or sublet with a decision within forty-five (45) days, City
approval shall be deemed given. Tenant may, however, upon notice to City and without City
approval, mortgage or grant a security interest in this Lease and the Equipment.
18. Successors and Assigns. Subject to Section 17, this Lease shall be binding upon
and inure to the benefit of the parties, and their respecti ve permitted successors and assigns.
19. Non- Waiver. Failure of City to insist on strict perfonnance of any of the conditions,
covenants, teons or provisions of this Lease or to exercise any of its rights hereunder shall not
waive such rights, but City shall have the right to enforce such rights at any time and take such
-7-
F-1Q
action as might be lawful or authorized, either in law or equity; provided that the City may not seek
enforcement for performance more than six (6) months after the City receives notice of a failure to
perform. The receipt of any sum paid by Tenant to City after a breach of this Lease shall not be
deemed a waiver of such breach unless expressly set forth in writing by the City within 10 d(!Ys
after receipt.
20. Taxes. Tenant shall pay all personal property taxes (or payments in lieu of taxes),
leasehold taxes, if applicable, and assessments for the Premises, if any, which become due and
payable during the term of this Lease attributable to the Equipment or Tenant's use of the Premises.
21. Lease Subject to Future Ordinances. Tenant acknowledges that the City may
develop rules, regulations, ordinances and specifications for the use of public open space and other
City property which shall govern Tenant's Equipment and activities hereunder as if they were in
effect at the time this Lease was executed by the City, and Tenant covenants and agrees to be bound
by same; provided, however, that Tenant shall not be bound where its rights have previously vested
by operation oflaw.
22. Title and Authority. Tenant acknowledges that its rights are further subject to a
Bormeville Power Authority ("BPA") transmission line easement recorded under King COW1ty
Recording Number 5026259. In the event such easement expires or terminates, so will Tenant's
rights under this Lease without any liability on the part of the City. City represents to Tenant
subject to BP A's easements that:
a. City has authority to execute this Lease;
b. City has title to the Premises free and clear of any liens or mortgages, except
for the BP A transmission easement, and those, matters, liens and/or mortgages which are of record,
disclosed and/or othetwise apparent to Tenant;
c. There is legal ingress and egress to the Premises; and
d. Execution and performance of this Lease will not violate any laws or
agreements binding on City.
23. Condemnation In the event the Premises are taken in whole or in part by any entity
by eminent domain, this Lease shall terminate as of the date title to the Premises vests in the
condemning authority. Tenant shall not be entitled to any portion of the award paid and the City
shall receive the full amount of such award. Tenant hereby expressly waives any right or claim to
any portion thereof. Tenant shall have the right to claim and recover from the condemning
authority, other than the City, such compensation as may be separately awarded or recoverable by
Tenant.
24. Alteration, Damage or Destruction If the Premises or any portion thereofis altered,
destroyed or damaged so as to materially hinder effective use of the Equipment through no fault or
negligence of Tenant, Tenant may elect to terminate this Lease upon thirty (30) days written notice
to City, as Tenant's sole remedy ~ In such event, Tenant shall promptly remove the Equipment from
the Premises and shalJ restore the Premises to the same condition as existed prior to this Lease,
-8-
F' -II
.
normal wear and tear excepted. This Lease (and Tenant's obligation to pay rent) shall terminate
upon Tenant's fulfillment of the obligations set forth in the preceding sentence and its other
obligations hereunder, at which termination Tenant shall be entitled to the reimbursement of any
Rent prepaid by Tenant. City shall have no obligation to repair any damage to any portion of the
Premises.
25. Dangerous Conditions: Authority for City to Abate. Whenever construction,
installation, or excavation of telecommunications facilities authorized by this Lease has caused or
contributed to a condition that appears to substantially impair the lateral support of the adjoining
public way, street or public place, or endangers the public, street utilities, or City~owned property,
the Public Works Director may direct Tenant, at Tenant's own expense, to take reasonable action to
protect the public, adjacent public places, City-owned property, streets, utilities, and public ways.
Such action may include compliance within a prescribed time.
In the event that Tenant fails or refuses to promptly take the actions directed by the
City, or fails to fully comply with such directions, or if emergency conditions exist which require
immediate action, the City may enter upon the Premises and take such actions as are reasonably
necessary to protect the public, the adjacent streets, public ways, and utilities, to maintain the lateral
support thereof, or actions regarded as necessary safety precautions; and Tenant shall be liable to
the City for the costs thereof. The provisions of this Section shall survive the expiration,
revocation, or termination by other means of this Lease.
26. Relocation of Facilities. Within thirty (30) days following written notice from the -
City, Tenant shall, at its own expense, temporarily remove, relocate, change or alter the position of
the Equipment (except for antennas) upon the Premises, or remove equipment not being used,
whenever the City determines that such removal, relocation, change or alteration is reasonably
necessary, for construction, repair, maintenance or installation of any City or other improvement in
or upon the subject property, for the operations of the City or other governmental entity in or upon
the Premises, for co-location of other telecommunications facilities or equipment pursuant to
Section II above, or for other legitimate public or governmental purpose. In the event that a
suitable altemative location for Tenant's Equipment cannot be located upon the Premises, Tenant
shall have the right to terminate this Lease upon 30 days written notice to the City, and shall be
entitled to a pro rata refund of all pre-paid rent. The provisions of this Section shall survive the
expiration, revocation, or termination by other means of this Lease:
27. Miscellaneous.
a. City and Tenant respectively represent that their signatory is duly authorized
and has full right, power and authority to execute this Lease.
b. With the exception of the applicable laws, ordinances, rules and regulations,
this Lease constitutes the entire agreement and understanding of the parties and supersedes all
offers, negotiations and other agreements of any kind. There are no representations or
understandings of any kind not set forth herein. Any modification of or amendment to this Lease
must be in writing and executed by both parties.
-9-
F- 1"2-
c. This Lease shall be construed in accordance with the laws of the State of
Washington.
d. Section captions and headings are intended solely to facilitate the reading
thereof. Such captions and headings shall not affect the meaning or interpretation of the text herein.
e. If the methods of taxation in effect at the Commencement Date of the Lease
are altered so that in lieu of or as a substitute for or in addition to any portion of the property taxes
and special assessments, if any, now imposed on Equipment, there is imposed a tax upon or against
the rentals payable by Tenant to City, Tenant shall also pay those amounts.
f. Tenant shall be responsible for obtaining all necessary approvals,
authorizations and agreements from any party or entity and it is acknowledged and agreed that the
City is making no representation, warranty or covenant whether any of the foregoing approvals,
authorizations or agreements are required or have been obtained by Tenant from any person or
entity.
g. If any provision of this Lease is found to be void or invalid, such invalidity
shall not affect the remaining provisions of this Lease, which shall continue in full force and effect.
This Lease was executed as of the date first set forth above.
SPRINT SPECTRUM L.P., by
,
Ib Mmlatins C....uo.:..Htl }i dl Mer
By: zfHIIt/ ~
Title: Sprint Spectrum L.P-
Ceorg<<.' r.hantouS
Site Development Director
APPROVED AS TO FORM:
'f td; ~jk,,1-... 1 f7v
Bob C. Sterbank, City A.ttorney
-10-
~-J3
-----...-...
STATE OF Ctl \-\ h( V\lGt )
COUNTY OF _(A \0\ m utcv ) 55.
)
rson~lly appeared before me, the undersigned, a Notary Public in and for
0\. , duly commissioned and sworn,
,., e.. \A , to me known to be t:> \ ,...-( v10 r" ) S; 1e O€Nt-Ioph1eJ'lt-
of the aging General Partner of Sprint Spectrum L.P., the Delaware limited partnership that
executed the foregoing instrument, and acknowledged the said instrument to be the free and
voluntary act and deed of said partnership, for the uses and purposes therein mentioned, and on
oath stated that he/she was authorized to execute said instrument on behalf of said partnership.
GIVEN my hand and official seal this ~ day of ,
~V>DI . !1
(/AA~ -r;,. "
lfj '';'~~';' ~R;l~~ t (signature of notary)
'-~~ f'Vl . o tt h'\ ().. r ~ I/o
u;. . COMM. "255807
W ~aiy PUblic-CalifornIa m
1. . .. JOAQUIN COUNTy - (typed/printed name of no~
w.w ww.. ~~r~'.~~~~~~i Notary Public in and for the State of \ '1 Y t'I l;v .
My commission expires: :J.........\o - 0
STATE OF W ASHfNGTON )
) S5.
COUNTY OF KING )
On this day personally appeared before me, the undersigned, a Notary Public in and for
the State of Washington, duly commissioned and sworn, David H. Moseley, to me known to be
the City Manager of the City of Federal Way, the Washington municipal corporation that
executed the foregoing instrument, and acknowledged the said instrument to be the free and
voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on
oath stated that he was authorized to execute said instrument.
GIVEN my hand and official seal thiso1b'+\. day of haeM'! ber2000.
EILE:::N ROBINSON ~~~
STATE OF WASHINGTON
NOT ARY w_.__ PUBLIC (notary signature)
C J-leeVl Ko b;'&1&.o VI
II.Y COlAlJISSION EXPIRES 1'"'29-C2
.
(typed/printed name of notary)
Notary Public in and for the State of Washington.
My commission expires: 1- c-l.9 -0 d-
K:\telecol)l\sprintsitelse2.doc
-11-
;r-- 14-
EXHIBIT A
Legal Description
-
The Premises are legally described as follows:
That portion of the SW !I. of Section 19, Township 21 North, Range 4 East, W.M., more
specifically known as Tract E ofParklane Estates - Division 2, as recorded at Vol. 156, page 11 of
the King County Volume of Plats, King County, Washington.
A-I
~~ IS
-
EXHIBIT B
Site Location Within the Premises
-
B-1
F-/(P
" .
~~ '
, \ ! r ,,- \ "J
, tilpi. ~ I"
~ . & p , l)~
\ h ~i Iii. ll~ \. f", ~
\ -< ~I.~ m' / ",-.
, '\: ,'-.
, "
\ ,,'-
'" 06-.( "
. "", ~~ ""
........ ;,{.,f'q. .....~
" .# '..
.. ..
,
,
/
.,AI /
ti... ~
IIIIS ,
ii ISI (")
~5S":' I ~:
e
~
o 2 !
~ 3 !
.... E " ~
i a ! ~ ~
z
0
fb- \l ~
.....u...l:t ........ >
r= -\7 .1'-.... -I' W
----1
W
n::
w
~
EXHIBIT C
Site Plan
ilitcludingLocation of EQuipment Boxes) -
C-l
F-lB
-
hCl\I _T (') SCCT<)OO ...-... AAftAy
(4) ...ItHltAo l'OlS(CTat
O>mto;.... ~ -..
I
~ ..
i ~
~
l:.
l:. .
{ ~
.. *
;;
lit" $PIWiT I'CS lU.OIO
(~T f'lIOltClM;
It( lIllIO<<
IlfW _T I'CS (lUltIOOIl "'''''''l
[/lUIf'\IO(T MO IIQ.AI'(O "1'( _11('
II(W ,'-<1- r...... (>1,,- ..-
lUte( "Mirm at ~1(J.l .'"
_-IIOU:C~ COUli't
.
NORTHEAST TOWER ELEVATiON
F-lC)
-
,
I
t
I r--------------___________________________________,
I I u'-r ,
\ I I
: t....;)" l'-r 4'-q" r-r :.
! I r-1'OIIlarot Of' kw ~
I I I CSU~~ll)
, , I
' - - ----- ,
I I
" ,~~
' , ~ I.L.lSc MOl
I I ,
' ,
. I I AAllo EIl\lflIIoo' ~
I : I Ie( MOr:c ~
I I
. I I
'I : I __ -'<<as <<An:
I /
,: 1. 1. I Sl'llM' IWllO ~
- - I ...... CA8IlCfS
" I I ,__
I '"+ I.. -r--
' ~~ I ,
\ , COl<<:llaf; WPPoftr "N>
1: I , \
,: I I \
~ I
I I
, ~CIlMlm
II .....lilI'P'<lIlfflW.ll;
"
.:
I.
I , CIUlIQ. AeA:Us
' i ..-q- $'-r $'-11" r.,o J'-!l. 1'......
I,
I ,
I .
, I
Li---____________________________________ T...;)'
\ 1- I
I :-~~ so. n.
,
ENlARGED SITE PlAN
F~2D
, . -
-
IllC l:BllIll = tsCIoIlJIII:
o..t" o..t" '..t' e:>'
M M 11 ....'$.
.tIJ
;:!
7
10
I
AN'T'EN-JA B.EV A TlONS AJ.DISOfwETRIC
.
--- ---
f7- 1-1
,
\ ORIGINAL
H "" \: ~.
r 1.."\,_
Recorded At The Request Of: CQtfORt1EO copy
And After Recording Return To:
Miller Nash LLP!Busch
601 Union Street, #4400 20010118001076
Seattle. W A 98101
FEDERAL YAY CI LE 12.0e
PAGE let OF ,15
el/1a/2801 t4:38
ICING COUNTY, WA
Site #SE36XCOIO-A Panther LakclCampusDrivc
MEMORANDUM OF LEASE
THIS MEMORANDUM OF LEASE is entered into on this ~lday of Octhc1~ ' 20Q1, by
and between the CITY OF FEDERAL WAY. a Washington municipal corporation, with an 0 ce at 33530 _ 1ft
Way South, Federal Way, WA 98003 (hereinafter referred to as "City"), and SPRINT SPECTRUM L.P., a
Delaware limited partnership, with its principal office located at 4683 Chabot Drive. Suite lOO,Pleasanton,CA
94588, (hereinafter referred to as "Tenant").
1. City and Tenant entered into a Lease (the "Lease") on Jd H tlq'" ~
~ . 200', for the purpose of installing, operating and maintaining a communications facility
in connection with Tenant's wireless telephone communications service and other improvements.
2. The tenn of the Lease is for five (5) years commencing OD 1)ece",Dt-r.;)b . 2000,
("Commencement Date") and terminating on the fifth anniversary of the Commencement Date
with three (3) successive five (5) year options to renew (subject to the provisions of the Lease}.
3. The land that is the subject of the Lease is described in Exhibit A annexed hereto, The .-
portion of the land being leased to Tenant (the "Premises") is depicted in Exhibit B annexed
hereto.
IN WITNESS WHEREOF, the parties have executed this Memorandum of Lease as of the day and year
fU'St above written.
TENANT:
Sprint Spectrum L.P.,
A Delaware LUn~ed ~
By: BY:~ -.-
Title: Sprint Spectrum L.P,
G~O!g~ ChaRteY~
Date: Date: Site Development Oirectol'
. /
I'l'*'l ,.
Approved as to Form;
~AX ~,hv
Bob C. Sterbank, City Attorney
1
F- l.L
1.. .. \ -' ,
,.1-
-
STATE OF Co 1 \ fDV"V\(~ )
COUNTY OF .-f) ~a \IV\ ~ ~ 55.
C.CJ- ~ On t~is day personally. a~peared before me. th undersigned. a Notary Public in and for the State of
\ 'f \1\ l. (J\. . duly commissioned and sworn" l'
to me known to be \)'. y-(tA-v\'" ~'Ile '\)e,..,p~~~"tofthe aging General Partner of Sprint Spectrum L.P..
the Delaware limited partnership iliat executed the foregoing instrument, and acknowledged the said instrument to
be the free and voluntary act and deed of said partnership, for the uses and purposes therein mentioned, and on oath
stated that he/she was authorized to execute said instrument on behalf of said partnership.
-. J1 ' 200\
GIVEN my hand and off,d.1 ",,11M. 0( day of .II ~ . _. .
,.....00.0.0..0.0 oJ,':' "( ~,;.-I, /n. .JJ
r ~ SARAH'" CAMARl (sign.m,e of no!>tY)
'. CQMM. ,,255607 m b ~
~ Notary Publjc.Califomla !!! a ('$ V\tt tft..,t' tJ
13' SAN JOAQUIN COUNTY -, . 'V\ -, 0
. . My Ccmn. Exp. March 6,2004 (typed/printed name no. .
J..... 000.......0..0.. .E NotmyPuhlic m and fo"he Statto~~n"^ , .
My commission expires: 3 - -
STATE OF WASHINGTON )
) 5S.
COUNTY OF KING )
On this day personally appeared before me. the undersigned. a Notary Public in and for the State of
Washington, duly commissioned and sworn. David H. Moseley, to me known to be the City Manager of the City of
Federal Way, the Washington municipal corporation that executed the foregoing instnunent, and acknowledged the
said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein --
mentioned, and on oath stated that he was authorized to execute said instrument
GIVEN my hand and official seal this~ ~ay of becaf1. fJeV-. 2000.
EILEEN ROBINSON ~~~
(signature of notary)
STATE OF WASHINGTON C. ; lee 14 1?o b "C1.S'O t..,
NOTARY -... PUBLIC (typed/printed name of notary)
llY COUUISSION EXPIRES )-29-C2 Notary Public in and for the State of Washington.
My commission expires: I-ottj-~
K:\telecom\sprint MOL SPA Campus Dr
I
F-L3
.
(I 1 ," .
-" .
EXHIBIT A
Legal Description
-
The ~remises are legally described as follows: -
That portion of the SW y. of Section 19. Township 21 North. Range 4 East, W.M.. more
specifically known as Tract E of Parklane Estates - Division 2. as recorded at V 01. 156. page 11 of
the King County Volume of Plats. King County, Washington.
.-
A-I
F- 2.4-
"
~' ..., ~. '" .
._IJII' ~. ...
.
EXHIBIT B
Site Location Within the Premises
-
-
-
B-1
f:-2S
--
.
, . .
I
". . t.
. ,"
Ill.
-
..II I <N
t 'Il Itl iT ,
~lllf ~ ~. ~71!
!~!8 '! , ,; \\ . -,'-
'(~
, ),.'
, " ~/:'"
1 " :
l-
'-" ". ;:l
0
~
<(
z
.' z .
" w
'Z. -
<(
..BI
t~ ..
1111; C'J ,-
. f I ! I
;sa s:
.
z
0
~-\l ~
>
_....'llIIt1I _.....~., ;-.U -I. W
ill
a::
Ul
:s:
F-2b
CITY OF FEDERAL WAY
CITY A TIORNEY'S OFFICE
Memorandum
CONFIDENTIAL! ATTORNEY-CLIENT PRIVILEGED
DATE: January 23,2001
TO: Chris Green, City Clerk
COPY: Iwen Wang, Management Services Director
Jane Gamble, Associate Planner
FROM: Eileen Robinson, Paralegal tjL
SUBJECT: Sprint Spectrum Site Lease Agreement
SE36XCO 1 O~A Panther Lake/Campus Drive (BP A)
Chris, attached is a copy of the original executed Site Lease Agreement with Sprint, together with a
copy of the Memorandum of Lease, which has been recorded under King County Recording No.
20010118001076. Please assign an AG number to this Agreement and advise Iwen, Jane and myself
of the assigned number.
Copies of the Site Lease Agreement are being provided to Iwen to monitor Lease payments and to
Jane for her project file.
K:\Telecom\Jetters\ sprint clerk memo
FL./