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HomeMy WebLinkAboutApplication APPLICANT 12/1/2006 " , ~ i, J' , ; " ; City of SpringfIeld Development Services Department 225 FIfth Street SpringfIeld, OR 97477 541 726 3753 DEMAND FOR COMPENSATION UNDER BALLOT MEASURE 37 PROPERTY OWNER INFORMATION (Please type or print) McKav Investment Comoanv. LLC Name of Property Owner Name of Firm James W SOlckellnan Name of Representative (If Any) Gleaves SweaunQen PottCI & Scott LLP Name of Firm 2350 OaIffi1ont Wav. #204 Street Address ')75 Odk Street SUIte 800 Street Address EUQene. OR 97401 City, State, Zip EUQene. OR 97440-1147 City, State, Zip 485-4711 Phone 485-4714 Fax 686-8813 Phone 345-2034 Fax Public Meeting Does Owner request a pubhc meeting? Yes No.K Private Real Property Description A Demand shall be for a sIngle property or separate contiguous properties under the same ownership Map and Tax Lot # 17-03-25-34. tax lot 3900 1650 CentennIal Boulevard. Sonndield. OR Fee Tltlc SIte Address Owner's Intereslln the Real Property REQUIRED ATTACHMENTS (SEE REVERSE OF THIS FORM) AND COMPLETENESS This Demand and all attachments required on the reverse side of this form must be provided before acceptance by the City Manager Only after acceptance will the 180 day processing perIod commence as specified under Ballot Measure 37 (Springfield MUniCIpal Code Sec 2900 et sec ) NOTARIZED SIGNATURES Notary Stamp ") (8 ()FFIClAL SEAL ! TRACY A .., ..r...--a i' ~ NOTAAVP\J8UC.OREGOM 'I ClOMMISSlON NO. A388292 ~ MYc;ot.lIo!!S$OfII 'Xl'! $JAj IAAV6,2009 ~ , ., . X Owner Signature Subscnbed to me this 30" day of ~V1 VV ~ 20..J1..k Notary 51gnature DISCLAIMER NOTICE ' Approvalofcompensatlonormoddicdtlon removal ornon applIcatIOn of land use regulatIOn does not warrant or otherVo'1se guarantee that the present property owner orallY successors Interest can legally use the subject property for the purpose, or In the manner approved by the CIty liS such use or purpose may Impact third partJe~ including nghts established by Covenants, Conditions and Restnctlons (CC&Rs) other pnvate restnctrons or other regulntJons restnctlons orcontracls ~ Flle# Fee PaId ~ n STAFF COMPLETES.Tf,IS SECTION Date Demand Submitted ~Lfll ~ Received by Date Demand Accepted for ProceSSlnO 'i <-fh~ </ CHECKLIST &. REQUIRED ATTACHMENTS TO BE SUBMnTED BY PROPERTY OWNER DEMAND FOR COMPENSATION - BALLOT MEASURE 37 Reference Sprmgfield MunICIpal Code SectIons 2.920(4}, 2.930 and 2940 1 Application Form A completed application form (the front page of this packet must be filled out) to mclude a) The name, mallrng address, telephone number and authorization signatures for all the property Owners or contract Owners, b)The designated Owner or agent who IS the Owner's designated representatrve regarding the processing of the application, and c) Every Lessee and Lessor of the pro perty and their mailing address and telephone number Please use addltronal sheets If all the mformatlon cannot fit on the front page 2 Property Description A legal descriptIon and tax lot number of the property as well as a street address for the property (If any) 3 TItle Report A title report Issued within 30 calendar days of the application's submittal, including a) Title histOry, b) A statement of the date the Owner acquired Ownership of the property, c) The ownership Interests of all Owners of the property, d) Every person or entity holdmg a hen agamst or security Interest In the property, and (e) Every person or entity holding a future, contmgent, or other mterest of any kmd In the property 4 Copy of Regulations Applicable to the Demand A statement specIfically Identlfymg all the sections of the Springfield MunICipal Code, Spnngfield Development Code, or other current land use regulatIon that allegedly restnct(s) the use of the real property and allegedly causes a reduction In the faIr market value of the property 5 Demand Statement A statement specifying a) The proposed use of the property, b) The amount of the Demand and the fair market value of the property before and after applicatIon of the Identified land use regulation, c) To whom any compensation detennlned must be paid and why the Owner IS entitled to compensatIon under the requirements of the provIsions added to ORS Chapter 197 by Ballot Measure 37 (see also Item 6 below) 6 Demand Criteria A statement addressmg ill! of the followmg crltena a) The City has either enacted or enforced a land use regulation that restncts the use of pnvate real property or any mterest therein, b) The restnctlon on use has the effect of redUCing the fair market value of the subject property or any Interest therein, c) The IdentIfied land use regulation was enacted, enforced or applIed after the current Owner of the property (the Owner) became the Owner, and d) The Identified regulation IS not an exempt regulatIon as defined m SMC Section 2 920(4) 7 Appraisal An appraisal by an appraiser licensed by the Appraiser CertIfication and licensure Board of the State of Oregon supportmg the amount of the Demand that addresses the follOWing Issues a) The appraisal must expressly note all eXlstmg mfrastructure hmltatlons and value the property Without an assumption that the Infrastructure Will be Improved at governmental expense or through discretionary governmental action, b) The appraisal must expressly address and [ndlcate the amount of the alleged reduction m the faIr market value of the property at the tIme a complete Demand IS submitted to the City by showmg the difference m the fair market value of the property resultmg from enactment or enforcement of each of the Identified regulations indiVidually Identified In the Demand and after the application of all of the Identified regulations cumulatively, and c) The appra[sal must expressly conSider the effect of the aforesaId Ballot Measure 37 on the avaIlabIlity of other real property mcludmg the extent to which the supply of such other real property IS or WIll be Increased due to the non-enforcement, dlscontmuance, repeal or waiver of regulations followmg the passage of Ballot Measure 37 (see also Item 11 below) 8 Additional Documentation Copies of any leases or Covenants, CondItions and Restnctlons ("CCR's) applIcable to the real property, If any, that Impose restrictions on the use of the property 9 Access to Property Wntten permiSSion for access to the property by the City Manager or hIs/her deSIgnee including but not limited to agents or appraisers necessary to evaluate and appraise the property and the Demand for purposes of determining whether or not regulatlon(s) have had the effect of reducmg the faIr market value of the property _ 10 Fee A Demand shall Include a fee established by CounCil resolution to at least partially cover the City's cost of processmg the Demand If a Demand [S detennmed to be a Valid Demand the City shall reimburse the Owner for any fee paId _ 11 Statement Regarding Exempt Land Use Regulations A statement by the Owner makmg the Demand of why the followmg exemptions to the requirement for compensatIon do not apply a) Restricts and prohIbits commonly and hIstOrically recognized pubhc nUisances under common law, mcludlng but not limited to SMC Chapter 5 as amended from time to tIme and the crrmmallaws of the State of Oregon and the City of Spnngfield, b) Restncts or prohibits actIVitIes for the protection of publiC health and safety, such as fire and bUlldmg codes, health and sanItation regulatIons, and pollution control regulatIons, c) Is reqUired to comply With federal law, d) Restncts or prohibits the use of property for the purpose of selling pornography or performmg nude danCing, or e) Was enacted pnor to the date of the acquIsitIon of the property by the Owner, or pnor to acqUisition by a family member of the Owner who owned the subject property pnor to the acqUisitIOn or mhentance by the Owner, whichever came first [If "family member" status IS claimed, It must also be addressed In the title report reqUired by Item 3 above] Date Received 'Z( ~ Planner MM ~- December 1, 2006 Hand Delivered Attn: Greg Mott or Gary Karp City of Spnngfleld Development Services Department 225 Fifth Street Spnngfleld, OR 97477 Re Demand for CompensatIOn Under Ballot Measure 37 Dear Development Services Department This firm represents McKay Investment Company, LLC m ItS demand pursuant to Ballot Measure 37 for waiver or compensatIOn pertammg to land use regulatIOns for property located at 1650 Centenmal Boulevard, Spnngfield, Oregon, map no 17-03-25-34, tax lot 3900 Attached as Exhibit A IS the status of title report conflrmmg our client's ownership of the subject property McKay Investment Company, LLC mtends to construct a major commerCial development on the subject site More specific mformatlOn concernmg the proposed development may become available dunng the processmg of thiS claim As you know, Ballot Measure 37, ORS 197352(1), provides that If any land use regulatIOn placed on properties has the effect of "reducmg the fair market value of the property, or any mterest therem ," the owner of the property must be paid compensatIOn for the loss of value or the land use regulatIOns waived The subject property was conveyed to McKay Investment Company by Warranty Deed on August 1, 1962 A copy of that deed IS attached as Exhibit B That company, a co- partnership, mcluded as partners J Douglas McKay and Lmda Lee McKay which IS reflected m Exhibit B On January 1, 2000, the subject property was conveyed by McKay Investment Company, aka McKay Investment Co, a partnership, to McKay Investment Company, LLC by Warranty Deed A copy of that Date Received Planner MM Gleaves Swearingen Potter & Scott Lt. ~~ '"'t.~ ATTORNEYS AT LAW Phone (541) 6868833 Fax (541) 345 2034 975 Oak Street SUite 800 Eugene Oregon 97401 3156 Mailmg Address PO Box ]147 Eugene Oregon 97440 ] 147 Emad tnfo@orbuslawcom Web Site wwworbuslawcom Sean M Bannon Fredenck A Batson Jon V Buerstatte ]oshuaA Clark A J GlUstma Thomas P E Herrmann* Dan Webb Howard Stephen 0 Lane WllhamH J\lartm* Laura T Z Montgomery* Tanya C O'NeIl Standlee G Potter Ian T Richardson Martha] Rodman Douglas R Schullz Malcolm H Scott James W Spld,erman Kate A Thompson JancM Yates * Also admitted mWashmgron /Z/I ! () (, CIty of Spnngfleld Development ServIces Department December 1, 2006 Page 2 deed IS attached as ExhIbIt C McKay Investment Company, LLC Included as members J Douglas McKay and LInda McKay Korth, members of the ongInal partnershIp A copy of the fIrst page of the January 1, 2000 OperatIng Agreement confIrmIng the contInued ownershIp IS attached as ExhIbIt D WhIle It may not be the case that some transfers between one entIly and another entIly constItutes a change In ownershIp, here J Douglas McKay and LInda McKay Korth have retaIned ownershIp of the properly "or an Interest thereIn" from the date of the 1962 conveyance Our clIent seeks compensatIOn for the effect on the value of the properly for all land use regulatIOns applIed to the subject properly SInce that 1962 date or a waIver of those regulatIOns Adequate compensatIOn for the burden of regulatIOns adopted SInce 1962 would exceed that IndIcated In the appraIsal referenced below I am aware that some local governments have claImed some transfers to lImIted lIabllIly compames constItute a change In ownershIp As IndIcated above, partIcularly In thIs Instance, we do not belIeve that IS the case For purposes of thIs claIm, should there be a fInal deCISIOn on that Issue at the Oregon Supreme Court or the Oregon Court of Appeals determInIng such a transfer IS a change In ownershIp, we demand compensatIOn or waIver of all nonexempt regulatIOns applIed to the property SInce January 1,2000 RegulatIOns applIed to the properly SInce that 2000 date for whIch waIver or compensatIOn IS sought Include, but are not lImIted to, applIcatIOn of the Nodal Development Overlay deSIgnatIOn to the properly, the MIXed-Use CommerCIal deSIgnatIOn, all provIsIons of the Spnngfield Development Code In ArtIcle 31, MInImum Development Standards and SIte Plan ReVIew Standards, and ArtIcle 32, PublIc and Pnvate Improvements Attached as ExhIbIt E IS a letter from RIchard J Duncan, MAl, SRA, Duncan & Brown, establIshIng the effects of the MIXed-Use CommercIal zone on the value of the subject properly Attached as ExhIbIt F IS a supplemental letter provIded by Alan Evans pertaInIng to the effect on value of these regulatIOns and, In partIcular, the effect of sIte revIew reqUIrements on the value of the property Mr Evans has been a commerCIal real estate broker WIth a pnmary focus on retaIl real estate for more than 20 years The Intent IS to Include In thIs claIm all necessary InformatIOn for the CIly to process the Measure 37 claIm WhIle there may be IndIvIdual Date Received Planner MM ni, /61, CIty of SprIngfield Development ServIces Department December 1, 2006 Page 3 reqUIrements of the CIty ordInance for such a claIm whIch may not be addressed here, ORS 197 352 does not contaIn such reqUIrements but only the reqUIrement of a demand on the government body If there IS addItIOnal InformatIon that would be of assIstance In processIng thIS claIm, please adVIse me ~ Attachments Ftlmg Fee $500 ExhIbIt A TItle Report ExhIbIt B Warranty Deed (1962) ExhIbIt C Warranty Deed (2000) ExhIbIt D OperatmgAgreement (1/1/00,1" page) ExhIbIt E Duncan & Brown Report (9/19/06) ExhIbIt F Alan Evans supplement letter (11/28/06) Jca cc McKay Investment Company, LLC (w/o att) Joseph J Leahy (w/att) Date ReceIved Iv /, /61.. Planner MM , Exhibit A Rrst American First Amencan Title Insurance Company 0' Oregon 600 Country Club Road Eugene, OR 97401 Phn (541)484-2900 Fax - (541)4847321 FOR ALL OUESTIONS REGARDING THIS PRELIMINARY R_~PClRT_ PI_~ASF r.ONTAr.T. Ronald Denton, Title Officer Phone (541)484-2900 - Fax (541)484-7321 - Emall radenton@firstam com Alan Evans 101 E Broadway #101 Eugene, OR 97401-3114 Order No 7199-912425 November 16, 2006 Attn Phone No (541)345-4860 - Fax No Emall alan@eebcre com (541)345-9649 Re 1st Supplemental Preliminary Title Report ALTA Owners Standard Coverage Liability $ Premium $ AL TA Owners Extended Coverage Liability $ Premium $ ALTA Lenders Standard Coverage Liability $ Premium $ ALTA lenders Extended Coverage Liability $ Premium $ Endorsement Premium $ Govt ServICe Charge Cost $ other Preliminary Title Report Cost $ 000 We are prepared to Issue Title Insurance Policy or Policies In the form and amount shown above, Insuring title to the following described land The land referred to In thiS report IS deScribed In Exhibit A attached hereto and as of November 09, 2006 at 8 00 am, title vested In McKay Investment Company, LLC, an Oregon limited liability company, as to Parcel I, Cuddeback Investments, Inc , an Oregon corporation, as to Parcel II and Wells Fargo Bank, successor In Interest to the First National Bank of Oregon, a national banking aSSOCiation, as to Parcel III Subject to the exceptions, exclUSions, and stipulations which are ordlnanly part of such PoliCY form and the follOWing Date Received Planner MM ThiS report IS for the exclUSive use of the partJes herem shown and IS prelimmary to the Issuance of a title Insurance policy and shall become VOid unless a policy IS Issued, and the full premium paid 11.-/t /61r , Preliminary Report Order No 7199-912425 Page 2 of9 1 Taxes for the current fiscal year are reduced by reason of Religious Exemption If the exempt status IS terminated under the statute pnor to July 1, said property will be taxed at 100% of the assessed value (Parcel I) 2 Taxes for the year 2006-2007 Tax Amount $ 7,771 08 Unpaid Balance $ 7,77108, plus Interest and penalties, If any Code No 01900 Map & Tax Lot No 1703253404402 Property ID No 0212124 (Parcel III) Taxes for the year 2005-2006 Unpaid Balance $ 7,599 88, plus Interest Taxes for the year 2004-2005 Unpaid Balance $ 7,45414, plus Interest Taxes for the year 2003-2004 Unpaid Balance $ 7,240 17, plus Interest Taxes for the year 2002-2003 Unpaid Balance $ 6,61482, plus Interest Taxes for the year 2001-2002 Unpaid Balance $ 6,489 17, plus Interest Taxes for the year 2000-2001 Unpaid Balance $ 6,332 38, plus Interest Taxes for the year 1999-2000 Unpaid Balance $ 6,401 64, plus Interest Taxes for the year 1998-1999 Unpaid Balance $ 6,223 13, plus Interest 3 Taxes for theyear 2006-2007 Tax Amount Unpaid Balance Code No Map & Tax Lot No Property ID No (Parcel I) $ $ 01900 1703253403900 0212033 68,793 79 68,793 79, plus Interest and penalties, If any Rrst Amencan Title Date Received Planner MM 1'2-1/ Of, - Preliminary Report Order No 7199-912425 Page 30f9 4 Taxes for the year 2006-2007 Tax Amount $ 4,085 54 Unpaid Balance $ 4,085 54, plus Interest and penalties, If any Code No 01900 Map & Tax Lot No 1703253403900 Property ID No 5007784 (Personal Property assessed to BI-Mart Corp #603) 5 Taxes for the year 2006-2007 Tax Amount $ 414 69 Unpaid Balance $ 414 69, plus Interest and penalties, If any Code No 01900 Map & Tax Lot No 1703253403900 Property ID No 5120082 (Personal Property assessed to Abby's Pizza Inn) 6 Taxes for the year 2006-2007 Tax Amount $ 1,158 18 Unpaid Balance $ 1,15818, plus mterest and penalties, If any Code No 01900 Map & Tax Lot No 1703253403900 Property ID No 5361058 (Personal Property assessed to Wendy's Old Fashioned Hamburgers) 7 Taxes for the year 2006-2007 Tax Amount $ 187 65 Unpaid Balance $ 187 65, plus mterest and penalties, If any Code No 01900 Map & Tax Lot No 1703253403900 Property ID No 5503279 (Personal Property assessed to Dollar Store #901) 8 Taxes for the year 2006-2007 Tax Amount Unpaid Balance Code No Map & Tax Lot No Property ID No (Parcel II) 9 Taxes for the year 2006-2007 Tax Amount Unpaid Balance Code No Map & Tax Lot No Property ID No $ $ 01900 1703253404101 0212074 22,344 48 22,344 48, plus Interest and penalties, If any $ $ 01900 1703253404101 5084841 850 11 850 11, plus mterest and penalties, If any Rrst Amencan Tttle Date ReceIVed 1'1.-11 ,/ OY Planner MM Preliminary Report Order No 7199-912425 Page 4 of9 (Personal Property assessed to Taco Bell #372) 10 Taxes for the year 2006-2007 Tax Amount $ 2,643 62 Unpaid Balance $ 2,64362, plus Interest and penalties, If any Code No 01900 Map & Tax Lot No 1703253404402 Property ID No 5347172 (Personal Property assessed to Wells Fargo Bank #92471 Inc ) 11 The rights of the public In and to that portion of the premises herein descnbed lYing within the limits of streets, roads and highways 12 Easement, including terms and provIsions contained therein Recording Information September 19, 1961, Reception No 44347 In Favor of Northwest Natural Gas Company, a corporation For Utilities (Parcel I) 13 Easement, including terms and proVISiOnS contained therein Recording Information February 05, 1963, Reception No 98548 In Favor of The First National Bank of Oregon, Portland For Customer parking (Parcel I) 14 Easement, Including terms and proVISiOnS contained therein Recording Information June 11, 1963, Reception No 13832 In Favor of City of Spnngfield For Public utilities (Parcel I) 15 The terms and provIsions set forth In that certain easement from The First National Bank of Oregon, Portland, a national banking aSSOCiation, to McKay Investment Co , a partnership, recorded June 25, 1963, Reception No 15462, being an easement for pipelines and Ingress & egress (Parcels I and III) 16 ReselVatlon of utilities In vacated street area and the nght to maintain the same as set forth In Ordinance No 1808, a copy of which was Recorded November 22, 1963, Reception No 34155 And re-recorded May 01, 1972, Reception No 97020 17 The terms and provIsions contained In that certain easement from Hazel P Peterson to McKay Investment Company, a partnership, recorded January 04, 1968, Reception No 9941, being an easement for sewer line or other underground utility (Parcel I) FIrst Amencan Title Date Received /"Z 0/ "V Planner MM ! ( Preliminary Report Order No 7199-912425 Page 5 of 9 18 Lease and the terms and conditions thereof Lessor McKay Investment Company, a partnership Lessee Taco Bell, a California corporation Recorded November 14, 1968 Recording Information 45029 (Affects Parcel II) 19 Easement, including terms and provISions contained therein Recording Information November 06, 1973, Reception No 73-50317 In Favor of City of Spnngfield (Parcel I) 20 Easement, including terms and provIsions contained therein Recording Information January 17,1977, Reception No 77-02804 In Favor of City of Spnngfield, acting by and through Its Spnngfield Utility Board For Water transmission or distribution line (Parcel I) 21 Easement, Including terms and provISions contained therein Recording Information January 17, 1977, Reception No 77-02805 In Favor of City of Spnngfield, acting by and through ItS Spnngfield Utility Board For Water transmission or distribution line (Parcels I and II) 22 Easement, Including terms and proVISiOnS contained therein Recording Information September 14,1998, Reception No 98-73229 In Favor of City of Spnngfield, acting by and through Its Spnngfield Utility Board For Public water utility (Parcel I) 23 Right, title and Interest of PMD Restaurants, LLC, by reason of Its execution of FinanCing Statement recorded May 13, 1999, Reception No 99-43178 The present ownership and other matters affecting said Interest are not shown herein (Parcels I and II) And by FinanCing Statement recorded February 16, 2005, Reception No 2005-011519 24 Declaration of Cross Easements, Including terms and prOVISions thereof Recorded November 22, 2005, Reception No 2005-093358 Affects Parcels I and II Arst Amencan Title Date Received . 11-- It ( b7>' Planner MM I' Preliminary Report Order No 7199-912425 Page 6 of9 25 Covenants, conditions, restnctlons and/or easements, but deleting any covenant, condition or restnctlon Indicating a preference, limitation or diScrimination based on race, color, religion, sex, handicap, family status, or national ongln to the extent such covenants, conditions or restnctlons Violate Title 42, Section 3604{c), of the United States Codes Recording Information November 22, 2005, Reception No 2005-093359 Affects Parcel I 26 Lease With Redundant Cartndge, Inc, dated Apnl 22, 2003, as amended Lease With Jennifer Williams, dba, Shabryls, dated July 10, 2002 Lease With Janis West, dba Z-COII, dated May 18, 2005 Lease With 81-Mart Corporation, dated December 09, 1964, as amended Lease With Stanley T Merrell and Connie J Merrell, dated July 06, 1988, assigned to 5pnngfield Taco, a partnership, as disclosed by ASSignment of Leases recorded November 30, 2005, Reception No 2005-095349, OffiCial Records of Lane County, Oregon (parcellI) 27 Unrecorded leases or penodlc tenancies, If any - END OF EXCEPTIONS - NOTE Taxes for the year 2006-2007 PAID IN FULL Tax Amount 403 06 Map No 1703253403900 Property ID 5487960 Tax Code No 01900 (Personal Property assessed to 5teplna's Famous Pizza) NOTE Taxes for the year 2006-2007 PAID IN FULL Tax Amount $409 90 Map No 1703253403900 Property ID 5515083 Tax Code No 05229 (Personal Property assessed to Schwan's Home Service Inc ) SituS Address as disclosed on Lane County Tax Roll 1600,1650,1705,1710,1780,1782 and 1792 Centennial Blvd, 1489,1449,1453, 1455, 1457, 1459, 1461,1469,1471,1475,1479,1483, 1485, 1487, 1491, 1493, 1499, 1505, 1507, 1509, 1511, 1519 and 1521 Mohawk Blvd, and 1250, 1480, 1484, 1486 and 1488 18th Street, 5pnngfield, OR 97477 THANK YOU FOR CHOOSING FIRST AMERICAN TITLE! WE KNOW YOU HAVE A CHOICE! cc cc McKay Investment Co LLC cc Alan Evans, Evans Elder & Brown Inc 101 E Broadway #101, Eugene, OR 97401-3114 Rrst Amencan ntle Date Received Planner MM ( 2-/1 / q Prellmmary Report Order No 7199.912425 Page 7 of9 ~.-''''''''" , , ~- __ 4!% First American Title Insurance Company of Oregon SCHEDULE OF EXCLUSIONS FROM COVERAGE ALTA LOAN POLICY (10/17/92) The following matters are expressly exduded from the coverage of thiS policy and the Company will not pay loss or damage costs attorneys fees or expenses whICh anse by reason of 1 (a) Any law ordinance or governmental regulation (Including but not limited to bUilding and zoning laws ordinances or regulations) restricting regulating, prohibiting or relating to (I) the occupancy, use, Of enjoyment of the land (II) the character dimensions or locabon of any Improvement now or hereafter erected on the land (III) a separation In ownership or a change In the dimensions or area of the land or any parcel of which the land IS or was a part, or (IV) environmental protection or the effect of any Violation of these laws ordinances or governmental regulations except to the extent that a notlce of tl1e etlforcffi'lent thereof or a notice of a defect hen or encumbrance resulting from a Violation or alleged vlolatJQn affecting the land has been recorded In the pubhc records at Date of Policy (b) Any governmental police power not exduded by (a) above except to the extent that a notICe of tl1e exercise thereof or a notice of a defect hen or encumbrance resulbng from a Violation or alleged VIOlation affecting the land has been recorded In the public records at Date of Policy RIghts of eminent domain unless notice of the exerCise thereof has been recorded In the publIC records at Date of PoliCY but not exdudlng from coverage any taklng which has occurred prIOr to Date of Policy which would be binding on the nghts of a purchaser for value wrthout knowledge 3 Defects hens encumbrances adverse claims, or other matters (a) created suffered assumed or agreed to by the Insured claimant (b) not known to the COmpany not recorded m the public records at Date of Policy but known to the Insured claimant and not disclosed m wntlng to the Company by the Insured claimant pnor to the date the Insured dallnant became an Insured under this policy (c) resultJngm no loss or damage to the msured dalmant (d) attaching or created subsequent to Date of Policy (except to the extent that thiS policy Insures the pnonty of the lien of the Insured mortgage over any statutory lien for ServiCes, labor or matenal or the extent Insurance IS afforded herein as to assessments for street Improvements under construction or completed at date of porICY), or (e) resultmg in loss or damage which W'Ould not have been sustained If the Insured claimant had paid value for the msured mortgage 4 Unenforceablhty of the lien of the msured mortgage because of the mabdlty or failure of the Insured at Date of Policy or the mablllty or failure of any subsequent owner of tl1e Indebtedness to comply With the applicable dOing bUSiness laws of the state In which the land IS sItuated Invalidity or unenforceablllty of the lien of the msured mortgage or dall11 thereof which anses out of the transaction evKlenced by the Insured mortgage and IS based upon usury or any consumer credit protection or truth In lendmg law Any statutory lien for ServiCes labor or matenals (or the claim of pnonty of any statutory lien for services labor or matenals over the lien of the msured mortgage) ansmg from an Improvement or work related to the land which IS COl1tracted for and commenced subsequent to Date of Policy and IS not financed In whole or In part by proceeds of the mdebtedness secured by the Insured mortgage whK:h at Date of Policy the Insured has advanCed or IS obligated to advance 7 Any claim whlcl1 arises out of the transaction creating the Interest of the mortgagee msured by thiS policy by reason of the operatJQrl of federal bankruptcy, state Inscfvency or similar creditors nghts laws, that IS based on (I) tile transaction creatmg the Interest of the msured mortgagee bemg deemed a fraudulent conveyance or fraudulent transfer or (II) the subordlnatKln of the Interest of the Insured mortgagee as a resutt of the apphcatlon of the doctnne of equitable subordmatlon or (III) tI1e trarlsactlOn creatmg the mterest of the irlsured mortgagee being deemed a preferential transfer except where the preferentral transfer results from the failure (a) to tlme!y record the Insl:rument of transfer or (b) of such recordatKln to Impartnotlcetoa purchaser for value or a judgm entor lien creditor ALTA OWNER'S POLICY (10/17/92) The follOWing matters are expressly excluded from the coverage of thiS policy and the Company WII! not pay loss or damage costs attorneys fees or expenses whICh arise by reason of 1 (a) Any law, ordmance or governmental regulatIOn (Including but not limited to bUilding and zoning laws ordinances or regulations) restricting regulating prohibiting or relatlng to (I) the occupancy use or enjoyment of the land (II) the character dllnenSlons or klcabon of any Improvement now or hereafter erected on the land, (III) a separation In ownership or a change m the dlmenslOlls or area of the land or any parcel of whICh the larld IS or was a part, or (IV) environmental protectloo, or tl1e effect of any Violation of these laws ordinances or governmental regulations, except to the extent that a notice of the enforcement tl1ereof or a notICe of a defect, lien or encumbrance resuttlng from a Violation or alleged Violation affecting the land has been recorded In the public records at Date of Pohcy (b) Any governmerltal police power not exduded by (a) above except to the extent that a notice of the exercise tl1ereof or a notICe of a defect lien or encumbrance resultrng from a vlOlatron or alleged Violation affectmg the land has been recorded in the pubhc records at Date of PolK:Y Rights of 8THnent domain unless notice of tl1e exerase thereof has been recorded In tl1e publIC records at Date of PolICY but not excludmg from coverage any takmg which has occurred prIOr to Date of PoliCY which would be bmdmg on the nghts of a purchaser for value witl10ut knowledge Defects, hens encumbrances adverse claims or other matters (a) created suffered assumedoragreedtobythemsureddalmant, (b) not known to the Company not recorded In the public records at Date of POliCY, but known to the Insured claimant and not disclosed m wntlng to the Company by the msured claimant prior to the date the msured claimant became an Insured under tillS poliCY, (c) resuttmg m no loss or damage to the msured claimant (d) attachmg or created subsequent to Date of Policy or (e) resulting m loss or damage whlcl1 would not have been sustained If tI1e msured claimant had paid value for the estate or Interest msured by thiS policy 4 Any claim which arises out of the transaction vesting m the msured the estate or Interest Insured by thiS policy by reason of tl1e operation of federal bankruptcy state Insolver1cy orsll11llarcredltors nghtslaws that IS based 00 (I) the transaction creatmg the estate or Interest msured by this policy being deemed a fraudulent conveyance or fraudulent transfer or (II) the transaction creating the estate or mterest msured by thiS policy being deemed a preferential transfer except where the preferential transfer results from the failure (a) to timely record the Instrument of transfer or (b) of such recordation to Impart notice to a purrnaser for value or a Iudgment or lien creditor SCHEDULE OF STANDARD EXCEPTIONS The AlTA standard polity fonm Will cootam m Schedule B the follOWing standard exceptions to coverage 1 Taxes or assessments which are not shown as existing liens by the records of any taxmg authority that levies taxes or assessments on rea! property or by the publIC records proceeding by a publIC agency which may result m taxes or assessments or notice of such proceedings, whether or not shown by the records of sl/Ch agency or by the public records Any facts nghts mterests or claims which are not shown by the public records but whICh could be ascertained by an Inspection of saKI land or by making Inquiry of persons In possession thereof Easernents claims of easement or encumbrances which are not shown by tl1e public records unpatented mining claims reservations or exceptions in patents or In Acts authOrizing the Issuance thereof water nghts dalms or title to water 4 Any lien or right to a lien for serviCes labor or material theretofore or hereafter fumlshed Imposed by law and not shown by the pubhc records S DiscrepanCies, connlets In boundary lines shortage in area encroachments or any other faets which a correct survey would disclose NOTE A SPECIMEN COPY OF THE POLICY FORM (OR FORMS) WIll BE FURNISHED UPON REQUEST TI 149 Rev 599 Rrst American Title Date Received ''2- 0 IIJ(p Planner MM ~ Preliminary Report Order No 7199-912425 Page 8 of 9 Exhibit "A" Real property In the County of Lane, State of Oregon, described as follows PARCEL I BEGINNING AT A POINT BEING NORTH 89041' 53" WEST, 30856 FEET (RECORD 30864 FEET) FROM THE SOUTHEAST CORNER OF BLOCK 6 OF MOHAWK FIRST ADDmON, AS PLATTED AND RECORDED IN BOOK IS, PAGE 23, LANE COUNTY OREGON PLAT RECORDS, AND RUNNING THENCE NORTH 40 24' 51" EAST, 104 16 FEET, THENCE NORTH 700 22' 19" WEST, 13323 FEET TO THE EASTERLY MARGIN OF MOHAWK HIGHWAY, THENCE ALONG SAID EASTERLY MARGIN NORTH 290 13' 07" EAST, 19469 FEET, THENCE LEAVING SAID EASTERLY MARGIN AND RUN SOUTH 600 47' 00" EAST, 90 00 FEET, THENCE NORTH 290 13' 07" EAST, 95 00 FEET, THENCE SOUTH 15047' 00" EAST, 7 07 FEET, THENCE SOUTH 600 47' DO" EAST, 5 00 FEET, THENCE NORTH 290 13' 07" EAST, 80 00 FEET, THENCE NORTH 60047' 00" WEST, 5 00 FEET, THENCE SOUTH 740 13' 00" WEST, 14 14 FEET, THENCE NORTH 600 47' 00" WEST, 85 00 FEET TO SAID EASTERLY MARGIN OF MOHAWK HIGHWAY, THENCE ALONG SAID EASTERLY MARGIN NORTH 290 13' 07" EAST, 183 70 FEET, THENCE LEAVING SAID EASTERLY MARGIN RUN SOUTH 890 44' 15" EAST, 165 65 FEET TO THE EAST LINE OF SAID BLOCK 6, THENCE ALONG SAID EAST LINE NORTH 00 13' 30" EAST, 21 71 FEET, THENCE LEAVING SAID EAST LINE RUN SOUTH 89046' 30" EAST, 141 99 FEET, THENCE NORTH 700 06' 00" EAST, 30 02 FEET, SOUTH 740 28' 08" EAST, 62 15 FEET, THENCE SOUTH 890 53' 24" EAST, 152 99 FEET, THENCE NORTH 580 49' 12" EAST, 25 85 FEET, THENCE SOUTH 890 48' 26" EAST, 3465 FEET TO THE WEST MARGIN OF 18TH STREET, THENCE ALONG SAID WEST MARGIN SOUTH 00 11' 34" WEST, 692 06 FEET TO THE NORTH MARGIN OF CENTENNIAL BOULEVARD, THENCE LEAVING SAID WEST MARGIN AND RUNNING ALONG THE NORTH MARGIN OF CENTENNIAL BOULEVARD THE FOLLOWING FOUR (4) COURSES 1) NORTH 890 49' 36" WEST, 252 70 FEET, THENCE 2) ALONG THE ARC OF A 170848 FOOT RADIUS CURVE TO THE RIGHT, THE CHORDS OF WHICH BEARS NORTH 860 19' 36" WEST, 20860 FEET, A DISTANCE OF 208 73 FEET, THENCE 3) ALONG THE ARC OF A 2317 33 FOOT RADIUS CURVE TO THE LEFT, THE CHORD OF WHICH BEARS NORTH 860 19' 36" WEST, 28294 FEET, A DISTANCE OF 283 12 FEET, THENCE 4) NORTH 890 49' 36" WEST, 5 42 FEET, THENCE LEAVING SAID NORTH MARGIN RUN NORTH 00 10' 24" EAST, 14 34 FEET TO THE POINT OF BEGINNING, IN SPRINGFIELD, LANE COUNTY, OREGON PARCEL II BEGINNING AT A POINT ON THE SOUTHEASTERLY MARGIN OF MOHAWK HIGHWAY, SAID POINT BEING NORTH 890 44' 15" WEST, 110 08 FEET FROM THE NORTHEAST CORNER OF BLOCK 6 OF MOHAWK FIRST ADDmON, AS PLATTED AND RECORDED IN BOOK 15, PAGE 23, LANE COUNTY OREGON PLAT RECORDS, AND RUNNING THENCE ALONG SAID MARGIN, NORTH 290 13' 07" EAST, 19533 FEET, THENCE LEAVING SAID MARGIN RUN SOUTH 890 48' 27" EAST, 455 08 FEET TO THE WEST MARGIN OF 18TH STREET, THENCE ALONG SAID WEST MARGIN SOUTH 00 11' 34" WEST, 273 00 FEET, THENCE LEAVING SAID WEST MARGIN RUN NORTH 89048' 26" WEST, 3465 FEET, THENCE SOUTH 580 49' 12" WEST, 25 85 FEET, THENCE NORTH 890 53' 24" WEST, 152 99 FEET, THENCE NORTH 740 28' 08" WEST, 62 15 FEET, THENCE SOUTH 700 06' DO" WEST, 30 02 FEET, THENCE NORTH 890 46' 3D" WEST, 141 99 FEET TO THE EAST LINE OF SAID BLOCK 6, THENCE ALONG SAID EAST LINE NORTH 00 13' 30" EAST, 109 54 FEET TO THE NORTHEAST CORNER OF SAID BLOCK 6, THENCE NORTH 890 44' 15" WEST, ALONG THE NORTH LINE OF SAID BLOCK 6, 110 08 FEET TO THE POINT OF BEGINNING, IN SPRINGFIELD, LANE COUNTY, OREGON PARCEL III Rrst American Title Date ReceiVed Planner MM 1"1.-- /1 /07" I , Preliminary Report Order No 7199-912425 Page 9 of9 BEGINNING AT THE STONE MARKING THE SOUTHEAST CORNER OF THE A M POWERS DONATION LAND ClAIM NO 69, TOWNSHIP 17 SOUTH RANGE 3 WEST OF THE WILLAMETTE MERIDIAN, THENCE, NORTH 890 48' 27" WEST 1449 97 FEET ALONG THE SOUTH LINE OF SAID DONATION LAND CLAIM NO 69 TO A POINT, THENCE, NORTH 00 13' 30" EAST 99 15 FEET TO AN IRON PIPE MARKING THE INITIAL POINT OF MOHAWK FIRST ADDITION ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 15, PAGE 23 OF PLATS OF THE RECORDS OF LANE COUNTY, OREGON, THENCE, NORTH 890 41' 53" WEST 30864 FEET TO THE TRUE POINT OF BEGINNING THENCE, NORTH 890 41' 53" WEST 200 00 FEET ALONG THE SOUTH LINE OF BLOCK 6 OF SAID PLAT TO AN IRON PIPE SET ON THE EASTERLY MARGIN OF MOHAWK HIGHWAY, THENCE, NORTH 290 13' 07" EAST 165 00 FEET ALONG THE EASTERLY MARGIN OF MOHAWK HIGHWAY TO A POINT, THENCE, SOUTH 700 22' 19" EAST 135 00 FEET TO A POINT, THENCE, SOUTH 40 24' 51" WEST 100 00 FEET TO THE TRUE POINT OF BEGINNING IN SPRINGFIELD, LANE COUNTY, OREGON ALSO BEGINNING AT A POINT BEING NORTH 890 41' 53" WEST 308 64 FEET AND NORTH 40 24' 51" EAST 100 00 FEET FROM THE INITIAL POINT OF MOHAWK FIRST ADDITION, AS PLATTED AND RECORDED IN BOOK 15, PAGE 23, LANE COUNTY OREGON PLAT RECORDS, BEING IN TOWNSHIP 17 SOUTH, RANGE 3 WEST OF THE WILLAMETTE MERIDIAN, RUN THENCE NORTH 40 24' 51" EAST 4 15 FEET, THENCE NORTH 700 22' 19" WEST 133 24 FEET TO THE EASTERLY LINE OF MOHAWK HIGHWAY, THENCE ALONG SAID EASTERLY LINE SOUTH 290 13' 07" WEST 4 06 FEET, THENCE LEAVING SAID EASTERLY LINE SOUTH 700 22' 19" EAST 13500 FEET TO THE POINT OF BEGINNING, IN LANE COUNTY, OREGON Tax Parcel Number 0212033 and 0212074 and 0212124 Arst Amencan Tttle Date Received Planner MM (1--/114 I ~N':.....16~Q_9_ 79:Jll.) INRTRUMENT No WARRANTY DEED Exhibit B For VaJue Receu'ed HARLAN E. CARTER and HELEN V. CARTER, husband and wife, (the said Harlan E. Carter being the same person as H. E. Carter) the grantors, do hereby grant bargam, sel! and convey unto MC KAY INVESTMENT COMPANY, a co-partnership, composed of Miles E. MCKay, Eleanor p. MCKay, J. Douglas MCKay and Linda Lee MCKay, as the sole and only pa~toers thereof the grantee ,the followmg deBcrlbed pretnls"'~ to wit LOTS 1 and 4, BLOCK 16, ORIGINAL PLAT OF EUGENE CITY, Lane County, Oregon, as platted and recorded in Volume "All of Judgment Docket, page 2, records of Lane County, Oregon~ EXCEPTING therefrom, the West 40.0 feet TO HAVE AND TO HOLD the said premlses with then appurtenances unto the said Grant i its successors iaax!Kand asSIgns forever And the said Grantors do h reb ee , \>,Jth the saId Grantee ,that they are the Owner S In fee SImple f d e Y covenant to and free from all Incumbrances, except the l~en of taxes for the sa;.e~~~ge~2:htj ;hey are and that they will warrant and defend th';;- same from all other lawful claims whatsoever Dated August 1, 1962 '''EliL) o ~ /l :Ba4J//_.rC?~LlAE I- )J,.l." l (/",1:;:) (SEAL) '':EAL) \.. ~ \ STATE OF OREGON COUNTY O~ ~N~ .. ,,-/ On thIS S rl/ day of Augu\:t 1962 ~ 5 5 personally came before me a Notary Pubh.;\n and for sard .....,s county the wlthm named Harlan E. \Carter ]i!; and !!-,f,~~f},; V. Carter. hUSbab\d and I, '> 1:.s:~ w';'~'Cl.Tlc.:'I', .. =" tq..'~ Jl.e'fI_~~6ym to he the Identical pe~son S de ""\, ti ~: e :fxl';'''iltd lfl.and vnt<("e~cllted the wlthm Instrun\ent, and \ ( !;>~.q~ facYJl'O WrirJV#~h\lt they executed tfl!ame I l' 3~;::- -!l:~~w. .!!.~h!tarltytiirtheusesandpurpo"es here," ~8€1i1l rJIl.6>~dp- C".J....:: u",> ~"\"'r/lJBUVI{~ -. l:_ilB ~ Jri~"~'t:1lIrtlln8~ndi'e(l1 thIS day and year laot a live ,j ~:1 ~ ~~}"':...... ~~'-" "::l"<:'- \ " s .. .. " "' "'<:'f' OF ..&;~~~ / \ l: ~~;5 "f""t,~"'T,-"l~/f _" 5rig; Notary Pubhc tor Oregon - "a .,8 ~ B~ - ,g:!~ 1ll"",ComnllulOnexPlres ijp/6~ lIlU 'EffiE , .~ .:J - / ::. ~ I..T.lrL~ ...~.,...-......l.:lf.ll\f,.A"'Y EUGENE O"~GON _(SEAL) \D "" ;- aM: <qll ~ ;; ~rn '" % ~"3 , s' ~ e1 ~ ~ a!~i-~j J ~o Jt; . 0 3---/- ~ " \ " \ " ", , Date Received I Z. If / ~ Planner MM -L:::f-!-, AUG-24-2006 16 36 l'O_ \Onee Devereaux Exhibit ( 541 485 0307 P 23 , DIVISION OF CHIEF DEPUTY C~ERK lANE COUNTY DEEDS AND IlECDRDS 11111 " 1M 11111 111111111111111 0011.<.;1"'12 16.;3.: ~'. 1.35 2000001327 2:58:57 P" 01/18/2800 RPR DEED 1 - I CASHIER IS 21'1MHMtllM 46.00 After R=nIutg Rctum to UIlbI a cbange IS mjlIeSIed au tax 5IlIIelI1ents sba11 be sent to the followJng addrc:ss' NO CHANGE Jolm C Watkmson Walkwson Laud Rubensteln Lashway & Balclwm, P C. 101 East Bmadway, Suite 101 Eag,:De, OR 97401-3114 L J WARRANTY u-.u - STATUTORY FORM --=-- McKay Investment Company, aka McKay Investment Co . a partnerslup, Grantor, conveys and warrants to McKay Investment Company, LLC, an Oregon lmuted liability, Grantee, the followmg descnbed real property free of encumbrances except as speeUically set forth herem Legal descnpl10n on attached Exlubil A Subject to Reservations, rights-of-way, easements, conditions and restrictIons of record, leasehold interests, and monetary encumbrances suffered or created by Grantor TInS INSTRUMENT WILL NOT ALLOW USE OF THE PRvr""-. { DESCRIBED IN TflJS INSTRUMENr IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS ,,=v1<E SIGNING OR AC..."",. um THIS INS'ffiUMENI', TIlE PERSON ACQUIRING FEE TITLE TO TIlE PROP5RTY SHOUU> CHECK WITH THE APPROPRlA1E CITY ORCOUN'IY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND TO DETERMINE ANY LIMITS ON LA WSUITS AGAINST FARMING ORfORESTPRACrICSS AS DEFINED INORS 30 930 The liability and obligations of Grantor to Grantee and Gnmtee's successors and assigns under the warrantles and covenants contamed herein or proVlded by law shall be lunited to the amount, nature and terms of any ngbt of indemmfication available to Grautor under any lltle Insurance policy, and Grantor shall have no liability or obligation except to the extent that reunbursement for such liab1lrty or obligation is available to Grantor under any such title IOsurance policy The hnutatlons contained herem expressly do not relieve Grantor of any liabIlity or obligations under this Instrument, but merely define the scope, nature, and amount of such liability or obligatIons The true consldenrtion for tins conveyance IS other t1U1J\ money Warranty Deed - I g,~~e Rec"'lIed (1-1; / Of, '-'''.el /VIM ~ '-IMII.lCKAYl~__... -- .~" -. - ,,1 II. I AUG-24-2006 16 36 lnnee Devereaux 54t 485 0307 P 24 Tlus conveyance IS effective January I, 2000 J~~'~~( .rY-./~ 0~ ~Z;; Linda McKay Kottb- .f STATE OF OREGON ) )ss County of Lane ) TIns instrument was acknowledged before me tlus ~ day of JanuaJ)', 2000 by J Douglas McKay and Linda McKay Korth as authon:red partners &Kay Investment Company ;.'.,," "...' . (llR:W,WI. ! ~y A.ICeI.l.OGG : IIITAIlYI'UBLt-OflEllo.l .' 00lIII1IlSIOlI NO 0513<1 'iloli."" ~~EXI'~ESNO~ ~~~!:.~..l 1rtJfJ4 {!.. WJo~, Notary Publict'or Oregon ~ \ My Commission Expires I 13/ au Date ReceIved (~;; J61r Planner MM Warranty Deed. 2 ____ If 11" AUG-24-2006 16 36 \nnee Devereaux 54t 485 0307 P 25 1!..AO.llUC A PARCEL J Beglnning at a point on the SOIIth Ime of the A M Powers DonatIon Land Claim No. 69 Townslup 17Soutb, Range 3 West of the WillamelteMeridian, 1450.7 feet North 89057' West of the Southeast corner thereof, then North O. 03' East 287 16 feet; thence South 890 57' East 465 3 feet; thence South 00 03' West 287 16 feet; thence North 890 57' West 465 3 feet to the place ofbegmmng" in Lane County, Oregon CJl.l-= 1 that pol11on described m deed to the CIty ofSpringlleld recorded July 25,1957, Reception No 18049, Deed Records of Lane County, Oregon. ALSO E),.....= 1 that portion descn'bed m deed to the City of Springfield, recorded November I, 1971, Reception No 70906, OffiCUll Records of Lane County, Oregon TOGElHER WITII that portion of vacated Centennial Boulevard wluch wOllld inure to said parcel In accordance to law, as vacated by VacatIon Ordilllll1ce No. 1808, recorded November 22, 1963, Reception No 34155, Deed Records of Lane County, Oregon EXCEPT that portion descn'bed in deed to the CIty ofSpnngfield recorded June II, 1963, ReceptJon No. 13833, Deed Records of Lane County, Oregon PARCEL II. Begmning at a point winch is North 0.03' East 433 89 feet from a pomt On the South Ime oftbe A1banson M Powers Donation Land Claim No 69, Township 17 South, Range 3 West of the Willamette Mendian, whtch last mentIoned point is 14507 feet North 890 57' West from the Southeast comer of said claun, from saId beginrung pomt lUll North 00 03' East 586 93 feet; thence South 890 57' East 465 3 feet, thence South 0003' West 586 93 feet, thence North 89' 57' West 465 3 feet to the place of beginning, 10 Lane County, Oregon EXCEPT Beginnmg at a pomt on the Easterly margin of Mohawk Highway, said pomt bemg North 890 44' IS" West 11008 feet and North 290 13' 7" East 145.31 feel from the Northeast comer of Block 6, MOHAWK FIRST ADDmON as platted and recorded In Book 15, Page 23, Lane County Oregon Plat Records, thence along the said Easterly margin North 29. 13' 7" East 50 feet, thence leaving saId Easterly margm South 890 48' 27" East 100 feet; thence parallel WIth S81d Easterly margIn South 29" 13' 7" West 50 feet; tbence North 890 48' 27" West 100 feet to the point of beginning, m Section 25, Township 17 South, Range 3 West of the Willamette Mendian m Lane County, Oregon ALSO EXCEPT that portion described In deed to the City of Springfield recorded February 20, 1959, Reception No 60561, Deed Records of Lane County, Oregon PARCELm Beginning at a pomt North 890 57' West 14507 feet and North O. 03' East 850 00 feet from the Southeast comer of the A M Powers Donation Land Claim No 69 In Township 17 South, Range 12. -Ir/OJ.- Date Received F:XHmd ~ Planner MMPage I of3 pages-- Lei' ... ---- , - .". -(.....--.-1 -. .. AUG-24-2006 16 36 lnnee Devereaux 641 486 0307 P 26 3 West, run thenlXl North 00 OJ' East 1704 feet, thence North 89. 5T West 1475 feet to the Southeasterly hne of the County Road, thence along said line ofeounty Road South 29. 09' West 19497 feet; thenceSoulh890 5TEast 1096 feet to the poinl ofbeginnlllS, in Lane County, Oregon EXCEPT: Begimung at a point 00 the Easterly matgl/l of Mohawk Highway, said point being North 89044' 15" West 110.08 feel and North 290 13'7" East 145.31 feet from the Northeast comer of Block 6, MOHAWK FIRST ADDmON, as platted and recorded In Book 15, Page 2J, Lane County Oregon Plat Records, thence along the saJd Easterly margin North 29. 13' 7. East 50 feet, thence leavmg said Easterly margin South ,890 48' 27" East 100 feet, thence parallel With SBld Easterly margin South 290 13' 7" West 50 feet, thence North 89. 48' 27" West 100 feet to the point of begmning, in Section 25, TOWl1$hip 17 South, Range 3 West of the Willamette Mendlan In Lane County, Oregon PARCEL IV Begionmg at a point North O. 03' East 287 16 feet and 14507 feet North 890 57' West of the Southeast comer of the A M Powers Donahon Land Claim No 69, TownsInp 17 South, Range 3 West of the Willamelte Meridian; thence North 0.03' East 146 73 feet, thence South 89. 57' East 4653 feet, thence South O. 03'West 14673 feet, thence North 89. STWest465 3 feet to the place of beginning, in Lane Couoty, Oregon EXCEPT that portIOn described In deed to the Crty ofS..;:....;:eld, recorded July 20, 1959, ReceptIon No 60561, Oeed Records of Lane Couoty, Oregon PARCEL V All of Block 6 in the MOHAWK FIRST ADDITION to Sprmgfield, Oregon ALSO that portion of vacated Centennial Boulevard which would more to SBld parlXll In accordance to law, as vacated by Vacation OrWnanlXl No 1808, recorded November 22, 1963, Reception No 34155, Deed Records ofJ..ane County, Oregon EXCEPTING THEREFROM- Beginning at the Northeast comer of Block 6, MOHAWK FIRST ADDITION to ::;I'.~e.:eld, as platted and recorded in Lane County Plat Records, run thence North 89045' 30. West 93 feet, thence South 29. 13' West 150 feet paraJ1el with and along the Mohawk Highway; thence South 89. 45' 30" East to a point wluch is South O. 13' 30" West below the POlOt ofbeginnmg, thence North 00 13' 30" East to the place of beginning, in Lane County, Oregon ALSO EXEPT Begmnmg at the Slone marking the Southeast comer of the A M Powers DonatIon Land Claim No 69, Townslup 17 South, Range 3 West ofthe WillametteMendlan; thence North 890 48' 27" West 1449.97 feet along the South line of said Donation Land CIBlm No 69 to a point, thence North 00 13' 30" East 99 15 feet to an iron pipe marking the Iniual Point of MOHAWK FIRST ADDITION accordmg to the plat thereofn:corded In Volume 15, Page 23 of plats of the Records of Lane County, Oregon, thence North 89041' 53" West 308 64 feet to the TRUE POINT OF BEGINNING, thence North 890 41' 53" West 200 00 feet along the South hne of Block 6 of said plat to an I/'On pIpe set on the Easterly margin of Mohawk J:lJghway; thence North 290 13' 07" East 165 00 feet along the Easterly margin of Mohawk Highway to a pomt, thence South 700 22' 19" East Date ReceIved Planner MM IOOfiI3IT A Pa'! 00 pa~ [vl'l DY ~ '" . , AUG-24-2006 16 36 \nnee Devereaux 541 485 0307 P 27 13500 feet to a pomt; thence South 4024' 51" West 100.00 feet to the true pornt ofbegmmng in Spnngfield, Lane County, Oregon ALSO EXCEPT Beginmng at a point being North 890 41' 53" West 308.64 feet and North 4.24' 51" East 10000 feet from the Initial Pomt of MOHAWK FIRST ADDITION, as platted and recorded In Book 15, Page 23, Lane County Oregan Plat Records, bemg in ToWIIslup 17 South, Range 3 West of the Willamette Meridian; run thence North 40 24' 51" East 4 15 feet, thence North 70.22' 19" West 13324 feet to the Easterly line of Mohawk Highway, thence along $aid Easterly line South 290 13' 07. West 406 feet, thence leaving 58id Easterly line South 70. 22' 19" East 135 00 feet to the POm! ofBegilllllllg, In Lane County, Oregon ALSO EXCEPT' Beginning at a point to feet South 290 13' West of the point ofi...;........;..on of the Easterly nght-of.way line of Mohawk Boulevard and the prolongation of the Northerly nght-of-way line of"M" Street, said pomt of:".~".Ing bemg South 290 13'West 3337 feet from the Northwest comer of Block 6, MOHAWK FIRST ADDmON, as platted and recorded in Book IS, Page 23, Lane County Oregon Plat Records, thence South 60. 47' East 85 0 feet, thence North 740 13' East 14.14 feet, thence South 600 47' East 50 feet, them;e South 290 13' West 80 0 feet, thence North 600 47'West 5 0 feet, thence North ISO 47' West 14 14 feet, thence North 60.47' West 85 0 feet, thence North 290 13' East 60 0 feet to the point of beginning in Lane County, Oregon ALSO EXCEPT Beginnmg at a pomt 10 feet North 29. 13' East ofthe point ofinte~ection of the Easterly nght of way bne of Mohawk Boulevard and the prolongation ofthe Southerly nght of way line ofuM" Street, $aid point ofbeginmng bemg South 290 13' West 393 7 feet from the Northwest comer of Block 6, MORA WK FIRST ADDITION, as platted and recorded in Book IS, Page 23, Lane County Oregon Plat Records, thence South 60. 47' East 600 feet, thence South 290 13' West 1000 feet, thence North 60047' West 60 fuet, thence North 29. 13' East 100 feet to the pomt of begmning, in Lane County, Oregon. ALSO ExCEPT BegllllllDg at a point bemg South 290 13' West 393 7 feet and South 60. 47' East 6000 feet from the Northwest comer of Block 6, MOHAWK FIRST ADDmON, as platted and recorded m Book 15, Page 23, Lane County Oregon PIal Records, thence South 60. 47' East 25 feet, thence South IS" 4T East 707 feet. thence South 29. 13' West 95 00 feet, thence North 60. 47' West 30 00 feet, thence North 29. 13' East 100 00 feet to the Pornt ofBegmning, rn Lane County, Oregon. PARCEL VI: Begmning at a pomt on the Easterly margin of Mohawk Highway, said pOlDt being North 89. 44' IS" West 11008 feet and North 290 13' 7" East 14531 feet from the Northeast comer of Block 6, MOHAWK FIRST ADDITION, as platted and recorded m Book 1 S, Page 23, Lane County Oregon Plat Records, thence along the said Easterly 1I1lITgrn. North 290 13' 7" East 50 feel, thence leaving Said Easterly margin South 890 48' 27" East toO feet, thence parallel with said Easterly matgln South 29. 13' 7" West 50 feet, thence North 89. 48' 27" West 100 feet to the pomt ofbegrnrung, m Section 25, ToWllsIup 17 South, Range 3 West of the Willamette Menman In Lane County, Oregon Date Received Planner MM It/I/ Of' EXHIBrr A !'age J <:" 3 pages tCF TOTAL P 27 Exhibit D OPERATING AGREEMENT of McKAY INVESTMENT COMPANY, LLC, an Oregon LImIted LlabIhty Company INITIAL MEMBERS: J Douglas McKay, Lmda McKay Korth, TracIe A McKay Sh0J31, Kelly Korth Thakkar, Amy L McKay Romero, KImberly Korth WIlhams and Steven James Korth (Sometrmes referred to herem mdlvldually as a "member" or collectIVely as "members") EFFECTIVE DATE January 1,2000 RECITAL A The partIes are currently conductmg operatIOns as a partnershIp, under a partnershIp agreement dated October 25, 1997 (PartnershIp) The PartnershIp IS engaged m the busmess of acqumng and managmg real property for mvestment purposes under the name McKay Investment Company, an Oregon general partnershIp The partIes now WIsh to convert theIr partnershIp to a hmlted IIablllty company under the Oregon LImIted LIabIlIty Company Act (Act) B. The members mtend that thIS conversIOn shall be treated as a tax- free exchange under 9721 of the Internal Revenue Code of 1986, as amended (Code), that IS not conSIdered a taxable sale or exchange under Code 9708 and WIll not result m a temllnatIon of the PartnershIp for federalmcome tax purposes C. To convert the PartnershIp mto a hmIted lIablhty company, each of the members WI]] contnbute hIS or her respectIve mterest m the Partnerslup to the Company on the EffectIve Date m exchange for an mterest as a member ofthe Company After thIS converSIOn, each member's mterest m the profits and losses and capItal of the Company WIll be the same as the member's pnor mterest m the profits and losses and capItal of the PartnershIp, and the busmess of the PartnershIp wlll contmue to be camed on by the Company D. The PartnershIp was fonned and the Company wlIl contmue to be operated for the purposes of (1) owmng and managmg the property descn bed on attached ExIu bIt A (Property), (11) aggregatmg the assets of the members for effiCIent mvestment, (lll) facIlItatmg the admmlstratlOn of the Property, (IV) provldmg an efficIent method oftransferrmg mterests m the Property, (v) protectmg the busmess of the Company and the Property from bemg dIsturbed by the members and theIr credItors, ehcept McKay Investment Company, LLC, Operatmg Agreement - I ~1~~ffm-rbDU':'~~!~ '''W Exhibit E DUNCAN & BROWN, Inc. REAL ESTATE ANALYSTS ~ ~ RICHARD J DUNCAN, MAl, 'iRA COREY S DINGMAN JASEN D HANSIoN A <;,'\nOArf<.'i. rHOMA~ ') MORGAN AL\N CLARK DAVID L eEl [ r R~ IFAH CAR1LR CLIN I I3LCRAVI September 19,2006 Of. r.nrIN,p,l, fOHN H BROWN, 1\.1AI McKay Investment Company, LLC 2350 Oakmont Way, SUite 204 Eugene, OR 97401 RE Mohawk Property Spnngfield, OR Dear Ms Korth- This letter IS m response to our recent conversatIOn regardmg the approximate 9 acres as referred to above that IS located adjacent to the BI-Mart property on Mohawk Blvd m Spnngfield You were mterested m my mput concermng any potentIal loss of value due to the change m zomng from Major Retail Center to Mixed-Use Commercial As a basIs for dlscussmg loss, the $5,600,000 offer you have on the property would seem to be a good startmg pomt as a basIs of the value of your property "as vacant" under Its pnor zomng of MRC, wluch I understand would have to be the zomng for this buyer The rezone of properties to Mixed-Use Commercial under the Spnngfield code IS somewhat similar to that m the Eugene code Although Mixed Use zomng has occurred, both communitIes are havmg difficulty attractmg redevelopment Into these mixed-use areas The mam problem IS the high cost that IS mcurred In this type of development Mixed use developments have not been shown to be financially feasible In either community Mixed use commerCial development may be successful at some pomt m the future, but to date mixed use projects are generally untested I have had discussIOns with several developers who have tned to develop projects that fit withIn these mixed-use areas To date all have Said that Without major Subsidies the projects simply do not "pencil out" The mam reason IS because of the high Increase m development costs that do not return a slgmficant amount of mcome to cover the cost The bUildIng and site cost components for development are the most difficult to control, because there are so many different bUildIng elements that are brought together In most situatIOns where these projects have been "successful", either land IS acqUired at a very low cost and/or there are govenunent subSidies or abatements that allow for an Increased cash flow, or reduced cost, usually occurrIng when land IS given or sold cheaply A great example ofthat currently IS the old Sears site m Eugene, In which the City IS lookmg to offer the property at a nomInal pnce simply to attract a mixed-use project After reviewIng the Spnngfield development code 1260 CHARNELTON S I REET, EUGFNE, O~ 1,xGol::IVed I-z. ~ I C? (541) 6~7-1938/683-3400 FAX (541) 683-0932 mf;lIatlJllelT1bMM com ' , ROSEBURG, ORFGON (541) 673-3300 and other proposed projects, It would seem that a large reductIOn m the value of the land would be reqUIred before a project might be successful After revlewmg the mformatlOn on mixed-use projects, it'S eVident that likely the hlghest and best use of the property IS as It currently eXists, because the return to value based on current mcome exceeds the value of the "mixed use zoned" land "If vacant" If a new project IS requued to be a mixed-use development (as discussed above) Truly, If someone IS to buy today under the current zonmg, that buyer would look to the eXlstmg property and ItS current mcome stream as the basIs of value I do not believe a buyer today would add value with the hope that at some unknown future date the property could be redeveloped I would venture to say that, at thiS pomt, the Mohawk area of Sprmgfield IS one of the less desuable locatIOns for a mixed-use project The economiCS and demographics of some of the other mixed-use areas m Eugene-Spnngfield would likely better afford an opportumty for a more successful project Smce the conclude Highest and Best Use of the property currently IS as It eXists, a simple mcome approach will offer a general value range for the property A typical buyer would expect a property of thiS caliber to be purchased for an overall rate m the 075 to 080 range Based on a review of the property's 2005 and year-to-date 2006 mcome and expense mformatlOn, the expected net operatmg mcome (NO!) would be about $275,000 to $300,000 Based on the above discussed overall rates and expected NOI, the current value of the property based on ItS mcome/expense data IS well below the current offer of $5,600,000 Hopefully thiS mformatlOn will help m your decIsIOn as to how to best work with that property Respectfully Submitted, ~J(A9 RlChard J Duncan, MAl, SRA Duncan & Brown . ,. Date Received Planner MM tz,j, / 0It I f ~ans lder & [own Inc. Exhibit F CO\.l\lERCIAL REAL ESTATE November 28, 2006 Mr James Splckerman Gleaves, Swearingen, Potter & Scott, LLP 975 Oak Street, SUite 800 Eugene, OR 97401 Re M 37 Clalml Mohawk Shoppmg Center Dear Jim I have reviewed the letter that Rick Duncan has wntten and wish to offer some supporting eVidence of loss of value The Imposlllon of the MUC zone rnakes the property unusable for Its highest and best use, which IS for a maJor retail forrnat anchor store ThiS use IS consistent with the owner's present offer of $5,600,000 If thIS property IS sold as-IS, with the MUC zOning In place, we would have to capitalize the eXisting net operating Income of approximately $300,000 The capitalization rate would be heavily weighted by the phYSical and functional obsolescence of the present Improvements, the short-terrn nature of most of the leases, and the fact that the property IS contaminated and subject to a DEQ clean up A rnarket rate cap without these factors would be approximately 7 5% With these mitigating factors, I believe that the appropriate cap rate would be between 9 5% and 10%, say 9 75% ThiS results In a value of $3,077,000 Therefore the loss In value IS $2,523,000 You have asked rne for an opinion about the loss In value associated with Site ReView ThiS IS a more difficult task as there IS a great deal of subJectivity Involved but I will attempt to quantify for you as best I can For a maJor formal retailer to prepare the submittals necessary for site review, an applicant can expect to pay at least $300,000 In professional and City fees associated with a cornplete subrnlttal, and expect that It will add at least SIX to ten rnonths to the proJect between the time getting to completeness ano the one hunared ana lWenty day penod In wmch tile City nas to respond Ii we assume an Implicit cost of funds of 9% and split the range In time and say eight months, then the loss of value associated with the tlrne thiS adds to the proJect IS $378,000 If I can be of further assistance, please do not heSitate to ask Sincerely, c?t--- E,: Alan Evans lOt East Broadway SUlle 101 Eugene, OR 97401 TEL (541) 345-4860 FAX (541) 345-9649 Date ReceIved Planner MM It I /~ ( I SENDER: COMPLETE THIS SECTION . Complete Items 1, 2. and 3 Also complete Item 4 If Restricted Delivery Is desired . Pnnt your name and address on the reverse so that we can return the card to you . Attach this card to the back of the mSllplece, or on the front If space permits 1 ArtIcle Addressed to J. Douglas McKay/Llnda McKay Ko! h McKay Investment Company, LLC 2350 Oakmont Way, #204 Eugenp, Oregon 97401 2 Article Number 7003 _ IIr'J],.'w ~'J.L"__...!.:_ . . 102595-02 M--1S4( COMPLETE THIS SECTION ON DELIVERY A Signature X;:Z;;::6 ~ B received by (Printed "tame) I C Date of Dellve~ c\ rY\c~I\('€- 1';;>'-l.-5-~ o Is delivery addnbs-'dlfferent from rtem 1? 0 Yes If YES, enter dehvery address below 0 No D Agent o Addressee 3 Service Type pg. CertIfied Mall D Express Mall o Reglsterad 0 Return Receipt for Merchandise D InsullldMall D COD Restrfcted Dellvely? (Extra Fee) 14 0500 0005 1258 8523 Dves ,..1-. .,., ,ED STATES POSTAL SERVICE ~ _ --..- ~~~ EUGENE OR97~ ~ :~~..''''.~d ;1<= DE 2...."'" : -~;~i..~..~ _' . t;.. ...........' PI\-1 .2'-....--..... __..... '--- . Sender Please pnnt your name. address, and this box - Clty of Sprlngfleld 225 Flfth Street Sprlngfleld, Orpgon 97477 Attpnl10n Brenda Jones J-"""" _wU" 11.1..1,..1,1..11.1.1\...1,\..1.\\..\..,1,11\.1.\..1.\,..\\..\ i'