RES 18-739 - Authorizing Funds to Repurchase Hotel Property RESOLUTION NO. 18-739
A RESOLUTION of the City of Federal Way,Washington,authorizing
the use of$2,000,000.00 from the Strategic Opportunity Reserve and up
to$300,000.00 from the Contingency for Unanticipated Cost Reserve to
fund the repurchase of Parcel No. 092104-9331 and closing costs.
WHEREAS,the City Council of the City of Federal Way has determined that it is in the best
interest of the City to repurchase the 1.86 acre parcel of real property adjacent to the Performing Arts
& Event Center, Parcel No. 092104-9331 (the "Property"), from Ottone-Salinas, Inc. for
$2,187,756.00; and
WHEREAS, concurrent with this Resolution, the City Council authorized the use of City
funds, not to exceed $2,187,756.00 plus closing costs, to repurchase the Property; and
WHEREAS, the Finance Department identified the Strategic Opportunity Reserve and the
Contingency for Unanticipated Cost Reserve(together,the"Reserves")as City resources that may be
used to fund the repurchase of the Property and closing costs; and
WHEREAS,the City Council finds that the use of the Reserves to fund the repurchase of the
Property and closing costs is appropriate and consistent with the City's Reserve Fund Policy; and
WHEREAS,the City Council desires to authorize the Finance Director to use$2,000,000.00
from the Strategic Opportunity Reserve to fund the repurchase of the Property and closing costs;and
WHEREAS, the City Council desires to authorize the Finance Director to use up to
$300,000.00 from the Contingency for Unanticipated Cost Reserve to fund the repurchase of the
Property and closing costs; and
WHEREAS,the Reserves will be replenished over a three-year period in accordance with the
City's Reserve Fund Policy.
Resolution No. 18-739 Page 1 of 3
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. The Finance Director is authorized to use $2,000,000.00 from the Strategic
Opportunities Reserve, for the purpose of funding the acquisition of Parcel No. 092104-9331 and
closing costs.The City shall replenish the Strategic Opportunities Reserve over a three-year period.
Section 2.The Finance Director is authorized to use up to$300,000.00 from the Contingency
for Unanticipated Cost Reserve, for the purpose of funding the acquisition of Parcel No. 092104-
9331 and closing costs. The City shall replenish the Contingency for Unanticipated Cost Reserve
over a three-year period.
Section 3. Severability.If any section,sentence,clause or phrase of this resolution should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause, or phrase of this resolution.
Section 4. Corrections. The City Clerk and the codifiers of this resolution are authorized to
make necessary corrections to this resolution including, but not limited to, the correction of
scrivener/clerical errors, references, resolution numbering, section/subsection numbers and any
references thereto.
Section 5.Ratification.Any act consistent with the authority and prior to the effective date of
this resolution is hereby ratified and affirmed.
Section 6.Effective Date.This resolution shall be effective immediately upon passage by the
Federal Way City Council.
Resolution No. 18-739 Page 2 of 3
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON THIS 3RD DAY OF JULY, 2018.
CITY OF FEDERAL WAY:
411,-
FE' 'ELL, MAYOR
ATTEST:
Ar 1 I
SI P ANIE COURTNEY,0 C, CITY CLERK
APPROVED AS TO FORM:
3--\(zeJJL_
J. RYAN CALL, CITY ATTORNEY
FILED WITH THE CITY CLERK: 06/27/2018
PASSED BY THE CITY COUNCIL: 07/03/2018
RESOLUTION NO.: 18-739
Resolution No. 18-739 Page 3 of 3