Req. #1 1522
PUESOLUTIONNO. 37277
4 A RESOLUTION authorizing the execution of the second amended option and
development agreements with the Harold E. LeMay Museum for
2 development of a world-class automobile museum in Tacoma.
3 WHEREAS, on July 6, 2007, the City received notice from the
4 Harold E. LeMay Museum ("LeMay Museum") that it was exercising its option
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on Tacoma Dome Lots "B" and "C" for development of a world-class automobile
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museum, and
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8 WHEREAS, under current agreements, closing must occur within
9 24 months of exercising the option, and
10 WHEREAS, if the LeMay Museum elects to close in phases, any portion
I I of the property not used in the initial phase will remain under option to the
12 LeMay Museum for 20 years from the date of closing of the first phase, and
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WHEREAS the City and the LeMay Museum desire to amend the option
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1 5 agreement and the development agreement to (1) remove obligations of the
1 6 City to construct parking and infrastructure improvements prior to the
1 7 construction of the LeMay Museum; (2) allow the City to retain title to the
18 property along the perimeter of Tacoma Dome Lots "B" and "C" to provide for a
19 30-foot wide access road; (3) allow the LeMay Museum to construct a
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first-phase facility at a cost of at least $25 million, with commitment to construct,
2 1
22 in the second phase, a facility with a combined total cost of at least $40 million;
23 and (5) allow the City to use the LeMay Museum grounds and premises for
24 City-sponsored events, and
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resl 1522.doc-SIV/Iad
LEG 004 (11/89)
WHEREAS the option agreement also provides October 31, 2007, as
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2 the new date to exercise the amended option for the first phase, terminating on
3 October 31, 2009; Now, Therefore,
4 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
5 That the proper officers of the City are hereby authorized to approve of
6 and execute the second amended option agreement and the second amended
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development agreement with the Harold E. LeMay Museum, for the purposes
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hereinabove enumerated, said documents to be substantially in the form of the
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10 proposed amended agreements on file in the office of the City Clerk.
Adopted SEP I 1 2007
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14 Attest:
1 5
1 6 City Clerk
1 7
18 Approved as to fo
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resl 1522.doc-SIV/Iad
LEG 004 (11/89)
CITY CLERK USE ONLY
bcoma REQUEST FOR Request#:
EI ORDINANCE N "SOLUTION Ord./Res. 3 7 2 7 7
1. DATE: August 15, 2007
2. SPONSORED B,%,: COUNCIL NIEMBER(S) N/A
3a. REQUESTING 4a. CONTACT (for questions): PHONE:5207
DEPARTMENT/DiviSION/PROGF.AM Martha Anderson
Community & Economic Dev. Dept. 4b. Person Presenting: PHONE:
3b. Do PASS FROM [Committee Name]
F-1 Yes
F@ No 4c. ATTORNEY: PHONE:
NDid not go before a Committee Steve Victor 591-5637
@,e p @ar Meer/Finance Director
LDirector/Utilitv Division Budget 0 Lkan tilities
5. REQUESTED EFFECTIVE DATE: September 1 1, 2007
6. SUMMARY AGENDA TITLE: (A concise sentence, as it will appear on the Council agenda.
Authorizing approval of the second amended option agreement and second amended development agreement
between the City of Tacoma and the Harold E. LeMay Museum.
7. BACKGROUND INFORMATION/GENERAL DiscuSSION: (Why is this request necessary? Are there legal
requirements? What are the viable alternatives? Who has been involved in the process?)
On July 6, 2007 the City received notice from the Harold E. LeMay Museum that the Museum is exercising its option
on Tacoma Dome lots "B" and "C". Under current agreements, closing must occur within 24 months of exercising
the Option. If the Museum elects to close in phases, any portion of the property not used in the initial phase will
remain under option to the Museum for 20 years from the date of closing of the first phase. The City and the
Museum desire to amend the option and the development agreements to 1)Remove the City obligations to replace
displaced parking prior to Museum construction, 2) Remove City obligation to construct $1.6 million plaza and other
improvements; 3) Allow City to retain title to property along the perimeter of Dome lots "B" and "C" to provide for a 25
foot wide access road; 4) Allow Museum to construct a first-phase facility at a cost of at least $25 million, with
commitment to construct in second phase a facility with a combined total cost of at least $40 million-, and 5) Allow
City to use Museum grounds and premises for City-sponsored events. The option amendment also provides a new
date of September 7, 2007 to exercise the option for the first phase, terminating on September 7, 2009. The
balance of the site remains under the current 20 year option period.
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WJURE FILED:
Source Documents/Backup Material Location of Document-.
C__
Second Amended Option Agreement City Clerk
Second Amended Development Agreement City Clerk
9. FINANCIAL IMPACT: A. M No IMPACT (NO FISCAL NOTE)
:711
B. F-1 YES,OVER$100,000,FiscalNoteAttached
U.,
C. F-1 YES,UNDER$100,000,(NOFISCALNOTE)Providefundingsource
information below:
FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & Name: State $ city $ Other $ Total Amount
If an expenditure, is it budgeted? F@ Yes n No Where? Cost Center:
Acct
I/ED/Kath@1/2007RequestFo,Resolutions/RegForResoLeMavMASepll2OO7
Resolution No. 33 7 2 77
Adopted: SEP I 1 200?
Maker of Motion:
Seconded: @&d,e6oyl
Voice Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Fey
Ms. Ladenburg v"
Mr. Lonergan
Mr. Manthou
Mr. Stenger I
Mr. Talbert
Mayor Baarsma
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Fey
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Stenger
Mr. Talbert
Mayor Baarsma
i.,Icityclklcityclk@formsV-esol. doc