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HomeMy WebLinkAboutItem 09- Reciprocal Easement Agreement AGENDA ITEM SUMMARY Meeting Date: 7/1/2024 Meeting Type: Regular Meeting Staff Contact/Dept.: Jeremy Sherer/DPW Staff Phone No: 541-726-2292 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Encourage Economic Development and Revitalization through Community Partnerships ITEM TITLE: RECIPROCAL EASEMENT AGREEMENT ACTION REQUESTED: Adopt/Not adopt the following motions: AUTHORIZE THE CITY MANAGER TO ACCEPT AND EXECUTE A RECIPROCAL EASEMENT AGREEMENT BETWEEN SYCAN B CORP PROPERTY AND OLYMPIC STREET, LLC (17-03-22-20-01300) AND CITY OF SPRINGFIELD PROPERTY (17-03-22-20-01201) ISSUE STATEMENT: The City’s retaining wall along the “Flame Property” (TRS 17-03-22-20-01201) is proposed to be demolished and restored by Sycan B Corps and Olympic Street, LLC as part of the development process for the new Chick-fil-A. An easement and maintenance agreement has been negotiated to address future maintenance needs on the retaining wall. ATTACHMEN TS: 1. Reciprocal Easement Agreement 2. Aerial site map DISCUSSION/ FINANCIAL IMPACT: Sycan B Corps and Olympic Street, LLC are in the process of improving the "Chick-Fil- A" property identified as Assessors Map and Tax Lot No 17-03-22-20-01300 and 01600. The development includes demolishing and replacing the City's retaining wall partially located on the “Flame” property, identified as Assessor's Map and Tax Lot No. 17-03- 22-20-01201, the "Flame Property." The City's west boundary and Sycan B Corps and Olympic Street, LLC's east boundary and the retaining wall are coterminous. The retaining wall splits the common boundary line supporting the soil and backfill material on the City “Flame” property. Excavation and construction of the Chick-fil-A site requires demolishing and reconstructing the retaining wall. Building and Engineering staff reviewed and approved the replacement retaining wall design. Sycan B Corps and Olympic Street, LLC will restore the City's retaining wall to a condition as good as or better than the existing wall. Gateway Property's tenants, Chick-fil-A, and their development and construction team were granted a temporary access easement to begin preliminary site work on the retaining wall. Currently, the contractors are working under a temporary construction easement. If the agreement is adopted, the City of Springfield, Sycan B Corps and Olympic Street, LLC will agree to share the retaining wall maintenance responsibilities and costs. The reciprocal easement agreement (ATT 1) outlines each party's maintenance roles and responsibilities. The easement will be 20 feet wide, 10 feet on each side, for maintenance access. The consideration for this reciprocal easement agreement is other than monetary. The shared cost of maintaining the City's retaining wall will save the City future maintenance costs. After Recording, Return to: City of Springfield 225 Fifth Street Springfield, OR 97477 Until Requested Otherwise, Send All Tax Statements to: No change ATTACHEMNT 1 {00032750:3} C3672 RECIPROCAL EASEMENT AGREEMENT THIS AGREEMENT REGARDING a RECIPROCAL EASEMENT for construction and maintenance of a retaining wall is dated as of this April ____, 2024, between and among Sycan B Corp and Olympic Street, LLC, and the City of Springfield, a municipal corporation of the State of Oregon (the “City”). Consideration. The consideration for this Reciprocal Easement Agreement is other than monetary and includes, but is not limited to, the exchange of covenants contained herein. The parties hereby acknowledge receipt and sufficiency of the consideration for this Agreement. RECITALS: A. Sycan B Corp and Olympic Street, LLC are owners as Tenants in Common of real property presently identified as Map 17-03-22-20, Tax Lot 1300, as particularly described in Exhibit A attached hereto and incorporated by this reference (the “Gateway Property”). B. City is the owner of real property identified as Map 17-03-22-20, Tax Lot 1201, which is adjacent to the Gateway Property, as particularly described in Exhibit B attached hereto and incorporated by this reference (the “Flame Property”). C. There is an existing retaining wall along the boundary between the Gateway Property and the Flame Property, which Sycan B Corp and Olympic Street, LLC intend to reconstruct as part of redevelopment of the Gateway Property (the “Retaining Wall”). The approximate location and configuration of the Retaining Wall is shown on the map attached to this Agreement as Exhibit C and incorporated by this reference. The parties have entered into a temporary construction easement dated ___________________, 2024, for the purpose of the initial reconstruction of the Retaining Wall. D. The parties wish to grant and receive from each other reciprocal rights to access the Retaining Wall from either respective property, for the purpose of maintenance, repairs, or reconstruction of the Retaining Wall, as detailed in the terms and conditions of this Agreement. EASEMENT TERMS AND CONDITIONS: 1. Sycan B Corp and Olympic Street, LLC hereby grant and convey to City and its respective successors and assigns, a perpetual, non-exclusive easement as depicted in Exhibit C (“the Easement”), for the use and maintenance of the Retaining Wall subject to the terms and conditions set forth below. 2. City hereby grants and conveys to Sycan B Corp and Olympic Street, LLC and each of their respective heirs, successors and assigns, a perpetual, non-exclusive easement as depicted in Exhibit C (“the Easement”), for the use and maintenance of the Retaining Wall subject to the terms and conditions set forth below. Attachment 1 Page 1 of 3 {00032750:3} 3. Each party shall be responsible for the maintenance and repairs of the side of the Retaining Wall on their respective properties; if maintenance or repairs affect both sides of the Retaining Wall, the City shall pay one half of the costs of maintenance or repairs, and the owners of the Gateway Property shall pay one half of said costs. Except in the case of emergency repairs, the party who intends to performance maintenance or repairs under this paragraph must notify the other part ies in writing reasonably in advance of the maintenance and repair work; said notice must include the scope of maintenance or repairs needed and an estimate of the cost to each party. Maintenance and repair work may be performed by a party’s own employees directly or under a written contract with any party. Any contract for maintenance or repairs, the cost of which will be shared by the parties under this paragraph, must be awarded to the responsible contractor with the lowest -cost responsible quote, based on no less than three written quotes. For the purposes of this Agreement, maintenance and repairs are defined as ordinary or routine work and minor alterations that are intended to preserve the Retaining Wall. Maintenance and repairs do not include significant reconstruction, replacement, or removal of the Retaining Wall. 4. In addition to the rights and responsibilities under paragraph 3, any party may choose to maintain or repair all or portions of the Retaining Wall on the other property. In such event, the party maintaining or repairing all or portions of the Retaining Wall shall pay the cost of the maintenance or repairs. A party who maintains or repairs the Retaining Wall at its own cost need not provide written notice required under paragraph 3. 5. Nothing contained herein will be deemed to be a gift or dedication of any portion of the Easement to the general public, for the general public, or for any public use except as specifically stated herein. 6. This reciprocal grant of the Easement by the parties is made subject to the following terms, provisions and conditions applicable to each party and their respective permittees, contractors, assignees and successors in interest: a. Each party shall comply with all applicable federal, state and local laws with respect to the Retaining Wall. b. Each party shall be responsible for its own injuries, losses or damages, or those of its contractors or employees, which such party may suffer as a result of its maintenance or repairs of the Retaining Wall under paragraphs 3 and 4. c. Each party shall promptly restore any damage caused to the Easement area, including but not limited to damage to landscaping, as a result of its maintenance or repairs of the Retaining Wall under paragraphs 3 and 4. d. No party may construct or place buildings, billboards, fences, gates or any other structures – aside from the Retaining Wall itself – which would interfere with the other party’s rights under this Agreement. e. No party shall allow the accumulation of any trash, debris, waste, or junk to collect on that portion of the Easement area lying within the boundaries of its respective property. f. The parties may, by mutual agreement, agree to relocate, remove, or reconstruct all, or portions, of the Retaining Wall. Attachment 1 Page 2 of 3 {00032750:3} g. Each party shall conduct any repairs, construction, or reconstruction authorized under this Agreement in conformance with normal engineering design and construction practices. 7. The easements, rights, and obligations created hereunder shall be binding upon Sycan B Corp, Olympic Street, LLC, and City, and their respective successors and assigns , and shall be appurtenant to and shall run with the Gateway Property and Flame Property. The provisions of this Reciprocal Agreement are enforceable in law or equity by the parties hereto, and their respective heirs, contractors, successors, and assigns. This Agreement shall be subject to the law of the State of Oregon. SYCAN B CORP: __________________________ Richard Boyles, President CITY OF SPRINGFIELD: __________________________ Nancy Newton, City Manager OLYMPIC STREET, LLC: __________________________ Alan Evans, Manager STATE OF OREGON, COUNTY OF LANE ) ss. This instrument was acknowledged before me this _____ day of _______________, 2024, by Nancy Newton, as City Manager of the City of Springfield, a municipal corporation of the State of Oregon. /s/__________________________ Notary Public for Oregon My commission expires: ________ STATE OF OREGON, COUNTY OF LANE ) ss. This instrument was acknowledged before me this _____ day of _______________, 2024, by Richard Boyles, as President of Sycan B Corporation. /s/__________________________ Notary Public for Oregon My commission expires: ________ STATE OF OREGON, COUNTY OF LANE ) ss. This instrument was acknowledged before me this _____ day of _______________, 2024, by Alan Evans, as Manager of Olympic Street, LLC . /s/__________________________ Notary Public for Oregon My commission expires: ________ ACCEPTANCE: The City of Springfield is hereby approves and accepts this conveyance this ______ of _______________, 2024. __________________________ Nancy Newton, City Manager Attachment 1 Page 3 of 3 ATTACHEMENT 2 AERIAL SITE MAP CITY OF SPRINGFIELD “FLAME” PROPERTY (17-03-22-20-01201) SYCAN B CORPS & OLYMPIC STREET, LLC “CHICK-FIL-A” PROPERTY (17-03-22-20-01300 and 01600) City of Springfield “Flame” Property 17-03-22-20-01201 Sycan/Olympic “Chick-Fil-A” Property 17-03-22-20-01300/1600 Shared, coterminous retaining wall Beltline NORTH NTS Attachment 2 Page 1 of 1