Council PKT 03-23-2010 SpecialCITY OP
;� Federal Way
AGENDA
FEDERAL WAY CITY COUNCIL
SPECIAL MEETING
March 23, 2010
Hylebos Conference Room - City Hall
Immediately Following Adjournment of the
Finance, Economic Development & Regional Affairs Committee
www. cityoffed eral wa y. com
1. CALL MEETING TO ORDER
2. COUNCIL BUSINESS
• Purchase and Sale Agreement for Former AMC Theaters Site - Action
Anticipated
3. ADJOURNMENT
COUNCIL SPECIAL MEETING DATE: March 23, 2010
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
ITEM #:
SUBJECT: PURC�IASE AND SALE AGREEMENT FOR FORMER AMC THEATERS SITE
POLICY QUESTION Should the City Council extend the Purchase and Sale Agreement with United
Properties for the former AMC Theaters site?
COMMITTEE N/A
CATEGORY:
❑ Consent
� City Council Business
❑ Ordinance
❑ Resolution
MEETING DATE N/A
❑ Public Hearing
❑ Other
STAFF REPORT BY: Patrick Doherty Economic Develo_pment Director_____DEPT Manager __
----..._ _ _ __..._.�_�_�__._�..._.,.._ _____ _.___.. _..__. _ ... � .._---..,._____..._._....�.__._....._.._...._ _____
Attachments: Letter from Unitea Properties, dated March 17, 2010
: : �:{e�:�i111�� 1�
The City of Federal Way entered into a Purchase and Sale Agreement with United Properties for the former
AMC Theaters site in December 2007. The closing date established in that Agreement was originally set for
9/11/08, but was first extended for one year until 9/11/09. On 9/10/09 the City Council approved an additional
extension of that closing date until 11/4/09 for the purposes of allowing United Properties to negotiate a potential
agreement with Lander Korus to take over the Agreement and close on the property. Two additional extensions
have been subsequently approved by City Council, allowing Lander Korus to attempt to close on the property by
3/31/10.
Lander Korus is a local real estate development firm that has been attempting to secure funding far the highrise,
mixed-use "Symphony" project, originally proposed by United Properties. They are currently negotiating with
financial entities interested in providing financial backing to this project; however, they believe more time is
necessary to finalize a financing package with one or more of these companies. United Properties has submitted
an official letter requesting an additional extension of the closing date for up to whatever time period City
Council deems appropriate. It should be noted that on March 16, 2010 Lander Korus requested up to 60 days.
The City Council retains the authority to allow assignment of the Purchase and Sale Agreement from United
Properties to another party. If City Council approves the requested extension of the closing date, it continues to
retain the authority over eventual assignment of the contract from United Properties, which it may consider now
or at any time prior to the closing date.
PROPOSAL:
Staff recommends two options far City Council consideration:
Option l: Extend the closing date of the Purchase and Sa1e Agreement with United Properties for the former
AMC Theaters site until June 15, 2010 allowing for consideration of potential assignment of the Purchase and
Sale Agreement from United Properties at a future City Council meeting prior to that date; or
Option 2: Reject the proposal for an extension of the Agreement's closing date.
STAFF RECOMMENDATION: N/A
CITY MANAGER APPROVAL:
COMMITTEE RECOMMENDATION: N/A
APPROVAL:
Committee Chair Committee 1Vlember Committee 1Vlember
PROPOSED COUNCIL MOTION(S):
"I move approval of Option
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
� APPROVED COUNCIL BILL #
❑ DENIED 1 reading
❑ TABLED/DEFERRED/NO AC1'ION Enactment reading
❑ MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED— 02/06l2006 RESOLUTION #
UNffED PROPERTIES LTB
March 17, 2010
City of Federal Way
33325 8�' Avenue South
Federal Way, WA 98003
A►ttention: Patrick Dohertv, Economic Develovment Director
Dear Sirs:
Re: Former AMC Site, Citv of Federal Wav — Svmphonv Development
Further to the Property Purchase and Sa1e Agreement with respect to the above-mentioned
property.
Uruted Properties is requesting Council's approval of an extension of the Closing Date of March
31, 2010 to whatever date the Council deems appropriate to afford the other parties interested in
assuming the Purchase and Sa1e Agreement su�cient time to finalize a financing commitment.
This extension would be pursuant to an agreement that any additional conesponding carrying
costs, as determined by the City, for the period of any extension granted would be the
responsibility of the party(ies) pursuing potential assumption of the Agreement.
We tliank Council for their consideration of this request.
Very truly yours,
Unit P operties- S phony, LLC
Davi on, President
Suite 550-2608 Granvilte Street, Vancouver, B.C., V6H 3V3 Phone: 604.736.3864 Faz: 604J36381 1