Req. # 1 0081
RESOLUTION NO. 36225
1 WHEREAS, in 1999, because the City's Business Systems Improvement
2 Project ("BSIP") required the short-term use of office space to provide interim
3 office space for employees and project members involved with the BSIP, the
4 City Council adopted Resolution No. 35561, authorizing the execution of a
5 lease/option to purchase, the option to purchase, and other documents
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necessary and incidental to and for the lease and purchase of the Carlton
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8 Center and parking garage, located at 1551 Broadway, and
9 WHEREAS the City exercised that option and purchased the Carlton
10 Center for $3.7 million, and
I I WHEREAS the BSIP project was complete in 2003, but the Carlton
12 Center currently provides offices for the City's Business and Information
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Systems Department, and
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WHEREAS the Carlton Center also currently provides offices for
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16 employees and contractors assigned to the new Tacoma Convention Center
1 7 ("Convention Center") project and the staff of the Convention Center itself, and
18 WHEREAS, in 2003, the City Council expressed to staff an interest in
19 selling the Carlton Center building, and
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WHEREAS the City desires to retain the associated parking garage,
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which is currently valued at $1 million, for future expansion of the Convention
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23 Center, and
24 WHEREAS the City has received an offer from Fred Roberson to
25 purchase the Carlton Center building, but not the associated garage, for the
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res10081.doc-S1V/1ad
LEG 004 (11/89)
sum of $3.1 million, less $160,000 for necessary building maintenance, for a
net total purchase price of $2.94 million, and
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3 WHEREAS the terms of the offer are that Mr. Roberson will pay
4 $2 million in cash and provide the City with a promissory note bearing interest
5 at 6 percent for the balance, and
6 WHEREAS Mr. Roberson desires ultimately to leave the building to the
7 University of Washington Tacoma ("UWT") as a part of his estate, and
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WHEREAS the promissory note will be due and payable at the time
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10 Mr. Roberson's ownership of the building passes to UWT through his estate,
I I and
12 WHEREAS Mr. Roberson's offer requires that the City provide
13 75 parking permits in the immediate vicinity of the building for use by building
14 tenants during business hours Monday through Friday, and
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WHEREAS Mr. Roberson's offer also requires that the City, upon his
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17 request, provide up to an additional 30 parking permits for use by building
18 tenants during business hours Monday through Friday, at market rates, within
19 the general vicinity of the Carlton Center building, and
20 WHEREAS, after business hours and on weekends, the City would
21 retain full control the parking stalls, and
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WHEREAS, under the Roberson offer, all obligation of the City to
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provide parking permits for building tenants will terminate at the time
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25 Mr. Roberson's ownership of the building passes to UWT through his estate;
26 Now, Therefore,
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resIO081.doc-SIV/Iad
LEG 004 (11/89)
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
That the offer of Fred Roberson to purchase the Carlton Center for
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3 $3.1 million ($2.94 million net) represents appropriate value and consideration
4 for acquisition of the building.
5 BE IT FURTHER RESOLVED that the City Council finds that, in light of
6 Mr. Roberson's desire to ultimately transfer the building to UWT as a part of his
7 estate, it is in the best interests of the City of Tacoma to accept the offer of
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Fred Roberson to purchase the Carlton Center, subject to the terms of this
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resolution.
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11 BE IT FURTHER RESOLVED that the City agrees to provide 75 parking
12 permits in the immediate vicinity of the building for use by building tenants
13 during business hours Monday through Friday, at a rate established by
14 reducing the full-time fair market rate in proportion to the tenant's limited usage
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during normal business hours, and up to an additional 30 parking permits for
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1 use by building tenants during business hours Monday through Friday, at
18 market rates, within the general vicinity of the Carlton Center building.
19 BE IT FURTHER RESOLVED that the proper officers of the City are
20 hereby authorized to execute a purchase and sale agreement with Fred
21 Roberson, for the purposes hereinabove enumerated, subject to the terms of
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LEG 004 (11/89)
this resolution, said document to be substantially in the form of the proposed
Purchase and Sale Agreement on file in the office of the City Clerk.
2 JUN 2 9 2004
3 Adopted
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5 Mayor
Attest:
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City Clerk
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Approved as to form I ality:
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Assistant y
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res1OO81.doc-SIV/Iad
LEG 004 (I 1/89)
CITY CLERK USE
REQUEST FOR O"INANCE Request#:
Tacoma OR RESOLUTION Ordinance
Resolution
1. DATE: June 23, 2004
2. REQUESTING DEPARTMENT/DIVISION/PROGRAM 3. CONTACT PERSON (for questions): PHONE/EXTENSION
General Services/Asset Management Rick Brush 5320
4. PREPARATION OF A RESOLUTION IS REQUESTED FOR THE CITY COUNCIL MEETING OF TUESDAY JUNE 29,
2004.
5. SUMMARY TITLE/RECONIMENDATION: (A concise sentence, as it will appear on the Council Agenda)
Authorizing the appropriate City officials to execute a purchase and sale agreement and other necessary
documents for the sale of the Carlton Center office building to a buyer to be determined.
6. 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?)
The City has received offers to purchase the Carlton Center office building and is presently asking for
final and best offers. The City Council is scheduled to select a buyer in an executive session on June
29, 2004, with final approval of a purchase and sale agreement at its regular meeting the same day.
7. FINANCIAL IMPACT: (Future impact on the budget.)
The sale will enable the retirement of an internal note and UDAG loan used to purchase the property.
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:
Source Documents/Backup Material Location of Document
Purchase and Sale Agreement City Clerk
9. FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & State $ City $ Other $ Total Amount
Name:
5700-CARLT To Be Determined
If an expenditure, is it budgeted? F-@ Yes No Where? Cost Center Aect
10. ATTORNEY CONTACT: (Enter Name of Attorney that you've been working with)
Steve Victor
I 1. iep nt Director/Utility Division Approval Director of Finance Approval City Manager/Director Utilities Approval
GSWebMg,1Docum-t,.* Office of the City Clerk
(12103)
Resolution No. 41.10 Z"! 226
Adopted: JUN 2 9 2DD4
Maker of Motion:
Seconded: jy
Roll Call Vote:
MEMBERS AYE5@, NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Phelps
Mr. Stenger
Mr. Talbeq--
Mayor Baarsma@
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Phelps
Mr. Stenger
Mr. Talbert
Mayor Baarsma
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