HomeMy WebLinkAboutResolution 07-37 07/23/2007
RESOLUTION NO 07-37
A RESOLUTION INITIATING ANNEXATION OF CERTAIN TERRITORY TO THE CITY OF
SPRINGFIELD AND REQUESTING THAT THE LANE COUNTY LOCAL GOVERNMENT
BOUNDARY COMMISSION APPROVE THE ANNEXATION BY EXPEDITED PROCESS.
WHEREAS, the City received an application to annex 7.05 acres into the City of Springfield on January
22,2007, said territory being described as follows:
Township 17 South, Range 3 West, Section 15, Map 40, Tax Lot 500 as more particularly described in
Exhibit A of this Resolution.
WHEREAS, the City requests annexation ofthat portion of the International Way/Maple Island Road
roundabout right-of-way adjacent to the site and not yet annexed, said 0.05 acre territory being included
in the property more particularly described in Exhibit A of this Resolution.
WHEREAS, the territory proposed to be annexed as set forth in Exhibit A is within the Eugene-
Springfield Urban Growth Boundary, and is adjacent to the City Limits; and
WHEREAS, the City Council is authorized by ORS 199.490(2)(a)(B) to initiate annexation upon
receiving consent in writing from a majority of the electors registered in the territory proposed to be
annexed and written consent from owners of more than half the land in the territory proposed to be
annexed; and,
WHEREAS, the property owners of the certain territory described in Exhibit A signed a consent to annex
(Exhibit B); and,
WHEREAS, no registered voters reside within the territory (Exhibit B); and,
WHEREAS, the City Council is authorized by Springfield Development Code 6.030(2)(a) and ORS
222.111, the 2001 Springfield Charter and other applicable Oregon Revised Statutes to initiate annexation
when the territory in the annexation proposal can be provided with the minimum level of key urban
facilities and services in an orderly and efficient manner as defined in Eugene-Springfield Metro Area
General Plan Policies 8.a and b, Page II-C-4; and where there will be a logical area and time within
which to deliver urban services and facilities; and
WHEREAS, minimum level key urban facilities and services are defined in the Eugene-Springfield Metro
Area General Plan, page V-3 as wastewater service, stormwater service, solid waste management, water
service, fire and emergency medical services, police protection, city-wide parks and recreation programs,
electric service, land use controls, communications facilities and services, and public schools on a district-
wide basis; and ~
WHEREAS, the territory proposed to be annexed can be immediately provided with a minimum level of
key urban facilities and services with the exception of long-term off-site transportation and long-term off-
site stormwater management facilities, which are being provided for in an Annexation Agreement which
has been negotiated with City staff and the Owner, as described in the record of Planning Case Number
LRP2007-00003; and
WHEREAS, an annexation agreement has been proposed for execution by the City of Springfield and
Progress Investment Group L.L.c. (Owner) which will memorialize the Owner's commitment, agreement
and obligation to meet the City's requirements for provision of the minimum level of key urban services
as required for an affirmative City recommendation for the annexation request; and
WHEREAS, the City Manager is authorized to forward this resolution supporting the applicant's request
to the Lane County Local Government Boundary Commission when an annexation agreement is entered
into by the City of Springfield and Progress Investment Group L.L.C. (Owner); and
WHEREAS, the City supports the applicant's request for expedited Boundary Commission processing.
NOW THEREFORE BASED ON THE FOREGOING RECITALS, THE COMMON COUNCIL OF
THE CITY OF SPRINGFIELD DOES RESOLVE AS FOLLOWS:
Section 1 : The Common Council of the City of Springfield does hereby recommend approval of the
annexation of the subject territories to the City by the Lane County Local Government Boundary
Commission, Lane County, Oregon, said territories being described as follows:
Township 17 South, Range 3 West, Section 15, Map 40, Tax Lot 500, said territory being
included in the property more particularly described in Exhibit A ofthis Resolution; AND,
That portion of the International Way/Maple Island Road Roundabout right-of-way adjacent to
the site, said 0.05 acre territory also being included in the property more particularly described
and set forth in Exhibit A of this Resolution.
Section 2: This resolution shall take effect upon adoption by the Common Council of the City of
Springfield and approval by the Mayor.
Section 3: The City Council recommends that the Boundary Commission approve the proposed
annexation upon execution of an annexation agreement as described in the Recitals.
Section 4: The City Manager shall forward this resolution supporting the applicant's request to the Lane
County Local Government Boundary Commission.
ADOPTED by the Common Council of the City of Springfield this 23rd day of July 2007 by a vote of ~
for and ~ against. '
APPROVED by the Mayor of the City of Springfield this 23 rd
ATTEST:
CitYReC~ ~
REViEWED & APPROVED
A~ TO FORM
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DATE: ,-\ ~""'[)J
OFFICE OF CITY ATTORNfY
LEGAL DESCRIPTION
Parcel 1 of Land Partition Plat No. 94-P0501, as filed and platted May 6, 1994
Official Records of Lane County, Oregon and in the office of the Lane County
Surveyor as County Surveyor File (CFS) No. 31948.
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Springfield, OR
Assessor's Map 17-03-15-40 Tax Lot 500 and northern portion of right of way at Maple Island
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LAND PARTITION PLA T NUMBER 94-P
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DATE L..r.'1 t ,qqi
LANE COUNi{ CLERK A: RECORDER
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PARTITION MAP FOR
G. H. & COLLEEN F.
FROEMMING
AND
ROBERT BAECHER
IN THE A.C. STEVENS D.L.C. No. 45
S.E- 1/4 SECTION 15, T,17S., R.3W., W.M.
SPRINGFIELD, LANE COUNTY, OREGON
MAY 4, 1994
SCALE 1"=200'
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PROJECT No.94-9C
PAGE I OF 2
EXPIRES DEC. 3l. 1995
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SUBJECT SITE
SUBJECT
PROPERTY:
TL 500
SUBJECT
PROPERTY:
Northern portion of
right of way at Maple Island
Road roundabout
17-03-1540
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There onnow,umnlid thatacrO'J'f"lllY thaproducL
Usen aJsume ail yesptJlUibility for any faD or damage ari3ing
from any fII'TOI', omission a' jXXfioaJdl inacClD'l:JCyiflhi.s procltM:t
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Within City Umits
Not Within City Umits
'X) 140 Feel
July, 2007
City ofSprihgfield ,
Development Services Department
225 Fifth Street
Springfield, OR 97477
Phone: (541)'726-3759
Fax: (541) 726-3689
SPRINGFIELD
EXHIBIT B-1
Annexation Application
Location of the Property No(z''''HWe.~; ~6IZ. Or 1N~/ZIJATloNAJ.. - tJAy' f
Co~l'oiZA.~ //JAY
Assessor's Map(s) and Tax Lot(s) of the property included in the request, (please indicate if only a portion
of a lot is included inthe request and attach any additional map and tax lot numbers on a separate sheet of
paper.)
Map # rl- 0'f7-/6 -1
Lot # -boo
Map #
Lot #
Map #
Lot #
Map #
Lot #
Area of Request ~, I '='0
Square Feet or q, 0i5
Acres
Existing Use(s) of the Property fiv13lER.-r. Or2/'J./Ak!17. I U,.J05V6wPeD
t..A-Jr:?
Proposed Use(s) of the Property (~I2A'"'7?E:
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Address
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Applicant Name
Address
Owner Name(s)
Phone: (~4/) 0AA--5-5Q'-/
. GI2tJJP) &. ~.c;..
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Phone: ~9.h)?%' ~zot;;;;
The undersigned acknowledges that the information in this application is correct and accurate.
Applicant Signature r- ......~ l ~'-<.. Date ':t~-::t/eoo?
. I j
he owner, the owner hereby grants permission for the applicant to act in his/her behalf
Date -:; If=! / z.co '+
,
Owner Signatu
Journal No.
Map No.
Date Accepted as Complete
For Office Use Only:
Received By
Tax Lot
. 1
Revised 3/8/2005 bj
FORM #1 .
2
PETITION
ANNEXATION TO THE CITY OF SPRINGFIELD
TO: LANE COUNTY LOCAL GOVERNMENT BOUNDARY COMMISSION
We, the undersigned, constitute the owners' of at least one-half of the land area of the property described in the
attachment marked "Exhibit A" AND .
We desire to be affilexed to the City of Springfield. A map is attached marked "Exhibit B," showing the
aJfected territory and its relationship to the present city limit boundaries.
The annexation constitutes a minor boundary change under' the Boundary Commission Act and should therefore
be considered by the Boundary Commission and, after study, a Final Order should be entered by the Boundary
Commission, '
0~1+--
Date ::t /,--::J / ..zco~
/ .
By
Date
By
Date
By
Date
MAP# 1q.~O':b./~' tj
LOT# '::;;00
MAP#
LOT#
With the above signature, I am verifying that I have the authority to consent
to the annexation on my own behalf or on behalf of my firm, agency or trust.
Revised 3/8/2005 bj
4
. PETITION SIGNATURE SHEET Owners I Electors
3
(Note: This petition may be signed by qualified persons,
even though they do not A,"nOw their tax lot numbers)
NAME ADDRESS T AX LOT NUMBERS
Twp, R See V. 1/16 Lot #
(Example) John Doe 135 6th Avenue East, Eugene
/"
Joe I{A~ (_J ~~7Jt ~8z ~~.,. .Ave- ~ €vt5f~ D~ I~ ~ 600
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With the above signature, I am verifying that I have the authority to consent to the annexation on my own
behalf or on behalf of my firm agency or trust.
8
Revised 3/&/2005bj
PROPERTY O\VNERS
REQUEST FOR EXPEDITED PROCEDURE
FOR ANNEX-t."TION OR
- '
EXTRATERRITORlAL WATER OR WASTEWATER LINE EXTENSION
ORS 199.466
I (We), the undersigned property owner(s),.request this (annexation proposal) (water line
extension proposal) (wastewater line extension proposal) be approved without the study, public
hearing or adoption of a fmal order required by ORS 199.461. This request is made pursuant to
the provisions ofORS 199.466.
I (We) understand that a study, public hearing and adoption of a fmal order may be
required if requested by any person or governing body receiving a copy of the executive officer's
analysis and recommendation as required by ORS 199.466.
This request is made in addition to and supplements all other requirements for filing an
annexation petition or tentative plan for an extraterritorial water or wastewater line extension.
Tax Lot E-, Township ~ S, Range.&- E/W, Section.4-, Map 600
Tax Lot _, Township _ S, Range _ E/W, Section _, Map -
Tax Lot _, Township _ S, Range _ E/W, Section~, Map ---:-
Address
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Date: ~/ A !z.oo9
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Subject:
July 23. 2007
Planning Case No. LRP2007 -00003
Request to annex 7.10 acres into the City
Date:
Request: An application for Annexation was submitted to the Springfield Planning Division on
January 22, 2007, for property located at the northwest corner of International Way and
Corporate Way: Assessor's Map Number 17-03-15-40 TL 500 within Springfield's UF-I 0
Urbanizable Fringe Overlay District. The City also requests annexation of that portion of the
International Way/Maple Island Road roundabout right-of-way adjacent to the site and not yet
annexed. -
Description: The territory proposed to be annexed. a~ described in the legal description
which accompanies this request, includes approximately 7.10 acres of land. The subject
territory is contiguous with the Springfield City Limits.
Property Owner: Progress Investment Group, L.L.c.. 2982 Crescent Avenue. Eugene. OR
97402
Zoning and Plan Designations: The Springfield Zoning Map district and The Metro Plan
designation for the property are Campus Industrial (CI). The subject property abuts the UF-I 0
Urbanizable Fringe Overlay District (with underlying CI Springfield zoning) to the north (Maple
Island Slough) and east and the Springfield City Limits (CI zoning district) along its eastern and
southern boundaries.
Existing land Use: The property is currently vacant. According to Lane County Elections
records. no active electors currently reside at the property.
Reason for Annexation/Proposed land Use: The property owner of the subject territory,
Progress Investment GroupL.L.c.. has requested annexation in order to seek development of
the site consistent with the standards of the Campus Industrial(CI) zoning district and the
Gateway Refinement Plan. The proposed uses are not permitted in the Urbanizable Fringe
Overlay District, thus annexation is required. If annexation is approved. the owner proposes to
develop a corporate headquarters/business park.
Availability of Key Urban Services: The annexation request was distributed to
Development Review Committee members for evaluation of the ability to provide/extend the
minimum level of key urban services as specified in SDC Article 6 Annexation. Section
6.030(2)(a), and Metro Plan Policies 8.a and b. Page II-C-4. Key urban services are described as:
"sanitary sewers, solid waste management, water service, fire and emergency medical services,
police protection, parks and recreation programs. electrical service, land use controls,
communication facilities, and public schools on a district-wide basis (in other words, not within
walking distance of all students served). Paved streets with adequate provision for storm water
runoff and pedestrian travel. meeting applicable local policies, are important. particularly in new
developments and along existing streets heavily used by pedestrians." Staff finds, based on
analysis. that all key urban services are available to serve the territory, with the exception of
long-term off-site transportation and long-term off-site stormwater management facilities, which
LRP2007-00003
6
are being provided for in an Annexation Agreement which has been negotiated with City staff
and the applicant.
Sanitary Sewers: An 8-inch public sanitary sewer system is located in International Way along
the southern boundary of the subject property. The existing system has sufficient capacity and
sufficient depth to serve the subject property upon annexation. The eventual extension of
Maple Island Road north of the International Way roundabout would also include an 8-inch
sanitary sewer line and may provide an alternative tie-in point for future development on the
subject property.
Storm Water Management: An existing public GO-inch stormwater sewer located in
International Way along the southern boundary of the subject property has available capacity to
serve the annexation area. The City grants development approval only where adequate public
and/or private stormwater managements systems provisions have been made as determined by
the Public Works Director, consistent with the City's En.gineering Design Standards and
Procedures Manual.
Water Service: Springfield Utility Board (SUB) will provide water service to the subject
property following annexation. An existing 12-inch water line is located in International Way
along the southern boundary of the subject property. No extra-territorial extension is
required.
Solid Waste Management: The City and Sanipac have an exclusive franchise arrangement
for waste management service inside the city limits. Upon annexation, Sanipac will serve this
property.
Fire and Emergency Medical Services: The Fire Marshall's representative reviewed the
application and has determined that City of Springfield fire and emergency services can be
provided to serve the site upon annexation. The subject property is located within the four
minute response time area of Springfield Fire and Life Safety Fire Station 5 located at Pheasant
Boulevard. Development of the subject property will be subject to all applicable Springfield
Development Code and Fire Code requirements to provide adequate Fire and Life Safety access
and water supply.
Transportation Services: The City Transportation Engineer has reviewed the application.
The property abuts International Way along its southern boundary. International Way is
classified as a collector street by the City of Springfield. Extension of the public street system to
serve future development of the subject property will be provided as negotiated with City staff
and the applicant in the Annexation Agreement. The site is within Lane Transit District's
service area.
PoliCe Protection: Upon annexation the area will receive police protection from the City of
Springfield, consistent with service provision throughout the city and with service that is now
provided to adjacent properties. When the property is developed International Way and a
future extension of Maple Island Road will provide access to the subject property.
Parks and Recreation Programs: After annexation, the subject property will be within the
Willamalane Park and Recreation District boundary. City residents receive park and recreation
services from the District. The District operates cwo aquatic centers, a Community Center, an
Adult Activity Center, and 31 parks containing a variety of outdoor recreational amenities.
LRP2 00 7-00003
7
There are two parks currently located in the vicinity of the annexation area: Gamebird Park. a
1.7S-acre neighborhood park at 1500 Mallard Avenue, and Robin Park, a O.SI-acre
neighborhood park at 2950 Wayside Loop. Other nearby recreational opportunities include
Harvest Landing. Eastgate Woodlands. and Island Park, A complete listing of Willamalane's
parks and programs can be found on-line at www.Willamalane.org, or at 736-4044.
Electric Service: Springfield Utility Board (SUB) provides electrical service to this area. Upon
annexation and development, underground power will be extended to the subject property.
land Use Controls: The City and Lane County adopted an intergovernmental agreement in
1987 transferring all building and planning authority in the urban transition area from Lane
County to Springfield. Since enactment of that agreement the City's Development Services.
Department has provided all planning and building functions for the citizens and property
owners of the subject property. The City of Springfield Development Services Department will
continue to provide land use control for the site after a~nexation.
Communication Facilities: Qwest and Comcast currently provide communication service in
this area for and an array of wireless companies provide a number of different communication
services. The City has no exclusive franchise arrangements with telecommunication or wireless
companies. The field is competitive and therefore guarantees a wide selection currently and
. upon annexation.
Public Schools: The annexation area is within the boundaries of District 4j. The school
district has not registered opposition to this annexation request. Schools are Bertha Holt
Elementary. Monroe Middle and Sheldon High School.
Site Information:
Natural Features: The subject property abuts a GoalS Natural resource site: Maple Island
Slough. The slough contains wetlands. According to FIRM Map Number 41 03911133F, the
property is within the lOa-year flood plain Zone AE. Topography is relatively level. Site soils
are mapped as Soil Series 26- Chehalis Silty Clay Loam, occasionally Flooded, 95 Newberg Fine
Sandy Loam, and 75 Malabon Silty Clay Loam. The site is currently vegetated with afjlbert
orchard and other vegetation.
LRP2007-00003
8
Subject Territory: 17-03-15-40 TL 500 and northern portion of Maple Island Roundabout
right of way
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LRP2007-00003
ANNEXATION AGREEMENT
July 17,2007 for Progress Investment Group
This Annexation Agreement ("Agreement") is made between the City of Springfield, an
Oregon municipal corporation ("City"), and Progress Investment Group, LLC ("Progress").
RECITALS
A. Progress owns the parcel(s) of land legally described in Exhibit A and shown on the map
attached as Exhibit B (the "Property"). The Property is proximate to the jurisdictional limits
of the City and is subject to annexation by the Lane County Local Government Boundary
Commission ("Boundary Commission") following minor boundary change processes.
B. Progress has submitted to the City an application to annex the Property to the City,
Annexation Application Journal No. LRP2007-00003, dated January 22, 2007, for
Assessor's Map No. 17-03-15-40, Tax Lot 500.
C. Progress wishes to annex the Property to the City and seeks support from the City for the
annexation before the Boundary Commission. The Springfield Common Council has
adopted Resolution No. _ supporting the annexation.
D. The Property is currently designated as Campus Industrial on the Metro Plan and is zoned
Campus Industrial (CI) on the Springfield Zoning Map.
E. Annexation of the Property requires a showing under SDC 6.030(2) that the Property can be
provided with the minimum level of key urban facilities and services as required by Metro
Plan Policy 8a and 8b, p.II-C-4, and such showing is supported by the substantial evidence
, in the record of the proceeding on this annexation. City staff has determined that the
minimum level of key urban services is currently available to the Property with the
exception of long-term off-sitetransportation and long-term off-site storm water
management facilities. The purpose of this Agreement is to memorialize Progress's and the
City's commitment and agreement to the allocation of financial responsibility for those off-
site public facilities that are necessary to serve the Property and to meet the City's
requirements for the provision of the minimum level of key urban services to the Property
necessary for an affirmative City recommendation for the annexation request, including
long-term off-site transportation and long-term off-site stormwater management facilities
After Recording, Return to:
City of Springfield
Public Works Department
225 Fifth Street
Springfield, OR 97477
Attn: Engineering Division
Place Bar Code Sticker Here:
ANNEXA TION AGREEMENT - Page 1 of 10
F. An interconnected transportation system with the existing and proposed land uses in the
Gateway area, including the CI, Community Commercial (CC), Mixed Use Commercial
(MUC), Medical Services (MS), and Medium Density Residential (MDR) zones, is required
in order to provide access and a transportation system for the movement of goods, services
and modes of travel to and from the annexed property.
G. Maple Islarid Road, generally located as depicted in Exhibit A, has been identified by the
City as an important north-south transportation corridor necessary to serve existing and
future development. To extend Maple Island Road north of International Way for the
functional needs of the proposed development requires the acquisition of 60 feet of right-of-
way along the western boundary as generally shown in Exhibit A. Progress intends to build
either two-thirds (2/3rds) of the necessary street improvements, or the full street
improvements necessary to connect and modify the northern roundabout at the south
terminus of this segment of Maple Island Road. Connecting this segment of Maple Island
Road to the northern roundabout on International Way will require some additional
dedication of property by Progress around the roundabout to allow modifications made by
the City of the existing roundabout and setback pedestrian ways from the roundabout. The
design of the pedestrian ways and the required dedications will be sufficient to operate the
roundabout safely and may be considered part of the required setbacks. Moreover, to ensure
construction and long-term life of the roadway and utilities, the City requires that Progress
provide necessary temporary construction easements and permanent utility and slope
easements.
The estimated total area required for acquisition is 42,600 square feet for the required 60-
foot street right-of-way and the additional area for modifying the roundabout.
The City will seek to obtain through negotiations with adjacent property owner, Shorewood
Packaging, some of the right-of-way for this new segment of Maple Island Road to the west
of Progress's subject site and to develop a full street design within the narrowest right-of-
way feasible and suitable to accommodate the functions of the existing Shorewoodfacilities
west of the new Maple ISland Road, the proposed new facilities currently proposed on
Progress's subject site east of the new Maple Island Road, and transportation requirements
anticipated by further development in the vicinity of Maple Island Road.
H. A public stormwater management system with sufficient capacity to serve the Property and
other existing and proposed land uses in the vicinity of the Property is also necessary to
support a finding that this key urban service is available to serve the Property.
. An existing public stormwater management system is located in International Way
and has the capacity in its 60" stormwater pipe to accept stormwater from Progress's
subject site.
. Stormwatermanagement facilities can be built within Progress's riparian setback
areas along Maple Island Slough as allowed under the Springfield Development
. Code and if built to the City of Springfield standards and approved by the City of
Springfield. While some stomiwater flow currently is northward to the Maple Island
Slough along Progress's property, any proposal for alterations and increased flows
ANNEXA TION AGREEMENT - Page 2 of 10
may require Progress to obtain approvals from any affected property owners and
appropriate public agencies controlling such stormwater flows and effluent.
1. The City requires Progress to grant either an easement or a donation of the area 50 feet south
from the. top of the bank of the Maple Island Slough to maintain and protect the riparian area .
along the top of the slough. The easement will allow the City access to the riparian area to
maintain and ensure maintenance of the area for stormwater management. The riparian
easement shall be included as qualifying for, as may be required or allowed, the open space
requirements of the Springfield Development Code for the development of the Property.
l A public sanitary sewer system with sufficient capacity to serve the Property and other
existing and proposed land uses in the vicinity of the Property is necessary to support a
finding that this key urban service is available to serve the Property.
n existing 8-inch public sanitary sewer system is located in International Way
along the south boundary of Progress's subject site.
. The eventual extension of Maple Island Road north of the International Way
roundabout would also include an 8-inch sanitary sewer line and may provide an
alternative tie-in point for connecting sanitary sewer lines from Progress's proposed
development on the subject site to the City's.public system.
K. The City is requiring Progress to contribute to the funding of the provision of key urban
services that benefit the properties but are located off-site.
1. The City is requiring owners proposing to annex properties in the Gateway Area to make
financial contributions to assist in funding off-site transportation improvements. For
properties zoned CI, the present required financial contribution shall be equivalent to
$45,500 per acre in July 2005 dollars. The actual contribution amount shall be determined
by increasing the stated contribution amount by the percentage increase in the Engineering
News Record's 20-City Construction Cost Index (ENR 20,,:City CCI). The base index to be .
used for this calculation shall be 7422, which is the published index rate for July 2005.
M. The City is requiring owners proposing to annex properties in the Gateway Area to make
financial contributions to assist in funding off-site stormwater improvements. For properties
zoned CI, the present required financial contribution shall be equivalent to $14,150 per acre
in July 2005 dollars. The actual contribution amount shall be determined by increasing the
stated contribution amount by the percentage increase in the Engineering News Record's 20-
City Construction Cost Index (ENR 20-City CCI). The base index to be used for this
calculation shall be 7422, which is the published index rate for July 2005.
N. In order to facilitate orderly development of the Property and ensure the full provision of
key urban services that are satisfactory to the City and meet the City's conditions for an
affirmative recommendation for annexation to the Boundary Commission or its successor,
and in exchange for the obligations of the City set forth below, Progress agrees to comply
with all requirements imposed on Progress in this Agreement.'
O. With the proximity of the McKenzie River to the Progress site, there are issues related to the
floodplain and floodway that affect the area zoned Campus Industrial, including the Progress
ANNEXATION AGREEMENT -Page 3 of 10
parcel. For development and site design, Progress will use the requirements of the more
restrictive data from the currently applicable FEMA maps and the recent floodplain-
floodway study using the Corrected Effective Model (CEM) in the McKenzie River
Floodplain Assessment and prepared by David Evans & Associates dated November 6,
2002, for the development of Peace Health's RiverBend Hospital.
P. The City will propose including the extension of Maple Island Road onto the City's
transportation Systems Development Charges (SDCs) list, which will allow Progress to
receive transportation SDCs credits for the construction of part or all of the Maple Island
Road extension described in Recital G.
Now, therefore, based upon the foregoing Recitals, which are specifically made a part of this
, Agreement, the parties agree as follows:
AGREEMENT
1. Obligations of Progress. Consistent with the above recitals, Progress agrees to perform the
obligations set forth in this section.
the purpose of this Agreement, the "Annexation Date" means the later of
(i) the date of approval by the Boundary Commission or successor public agency
approving annexation of the Property to the City and the expiration of any
applicable appeal periods, or
effective date of the annexation if the Boundary Commission or successor
public agency approving annexation provides for a delayed effective date.
This section is subject to the requirements of Section 7, below,
1.2 In accordance with Recital G, Progress will take access to its development site from
the roundabout on International Way at a location determined by the City Traffic
Engineer until such time as the Maple Island Road is improved by Progress at which
time Progress shall take access from its private road as an extension of Maple Island
Road. Should the City acquire the property and improvements constructed by
Progress, the City shall grant Progress two access locations approved by the City of
. Springfield for safe access. Once the Maple Island Road access is opened, the City
may, at its discretion, prohibit future direct access ~rom Progress's development to
International Way.
To connect this segment of Maple Island Road to the northern roundabout on
International Way will require some additional dedication of property by Progress
around the north roundabout to allow both modifications of the existing roundabout
and setback pedestrian ways from the roundabout. The City design of the pedestrian
ways and the necessary dedications will be sufficient to operate the roundabout
safely and may be considered part of the required setbacks in the Springfield
Development Code.
The estimated total area required for acquisition is42,600 square feet for the
required 60-foot street right-of-way and the additional area for modifying the
roundabout.
ANNEXA nON AGREEMENT - Page 4 of 10
Progress shall, at its discretion, construct either two-thirds (2/3rds) of the necessary
width of the necessary street improvements to the extension of Maple Island Road,
or the full street improvements necessary to connect and modify the northern
roundabout on International Way at the south terminus of Maple Island Road.
Should Progress construct either two-thirds (2/3rds) of the necessary width of the
necessary street improvements to the extension of Maple Island Road, or the full
street improvements necessary to connect and modify the northern roundabout on
International Way at the south terminus of Maple Island Road, Progress or its
contractor shall pay the prevailing rate of wage pursuant to ORS 279C.800 through
.870. Progress will continue to own the property and improvements as a private road
and shall utilize such improvements as a private road until the City exercises its
option to purchase the necessary property and street improvements in the form and
on the terms and conditions set forth in the Option Agreement (the "Option")
attached hereto as Exhibit C.
1.3 In accordance with Recital G, Progress shall also provide construction easements as
needed for the future public road and any utility construction; suitable permanent
public utility easements along the entire length of the right of way, as well as suitable
slope easements (typically 4:1) as required by the City where necessary to ensure the
long-term stability of the road and any public utilities.
1.4 In accordance with Recital L, Progress shall contribute to off-site transportation
improvements an amount equivalent to $276,185.00 (Two Hundred Seventy-Six
Thousand One Hundred Eighty-Five Dollars) in July 2005 dollars. The actual
contribution amount shall be determined by increasing the stated contribution
amount by the percentage increase in the Engineering News Record's 20-City
Construction Cost Index (ENR 20-City CCI). The base index to be used for this
calculation shall be 7422, which is the published index rate for July 2005. The
amount is due to the City for off-site transportation improvements (6.07 acres x
$45,500 x ENR 20-City CCI adjustment factor). Such payment shall be due not later
than one month after the Annexation Date approval by the Boundary Commission or
its successor agency.
1.5 In accordance with Recital M, Progress shall contribute to off-site stormwater
improvements an amount equivalent to $85,890.50 (Eighty-Five Thousand Eight
Hundred Ninety Dollars and Fifty Cents) in July 2005 dollars. The actual
contribution amount shall be determined by increasing the stated contribution
amount by the percentage increase in the Engineering News Record's 20-City
Construction Cost Index (ENR 20-City CCl). The base index to be used for this
calculation shall be 7422, which is the published index rate for July 2005. The
amount is due to the City for off-site stormwater improvements (6.07 acres x
$14,150 x ENR 20-City CCI adjustment factor).
1.6 Provide and be financially responsible, including any construction and maintenance
thereof, for the provision of any additional urban facilities and services required as a
condition of approval of any land use approval, city permits and/or public
improvement plans as necessary to serve the development of the Property.
ANJ':.JEXA nON AGREEMENT - Page 5 of 10
2. Obligations ofthe City. Consistent with the above Recitals, the City agrees to:
, 2.1 Initiate and support annexation of the Property to the City of Springfield before the
Boundary Commission or its successor agency and support Progress's defense of any
appeal of a decision of the Boundary Commission annexing the Property to the City. '
However, the City will not assume any financial responsibility to provide legal
counselor fees on appeal.
2.2 Conduct the timely review and decision making of the Site Plan Review,Tree
Felling Permit, Drinking Water Protection District Overlay application, Floodplain
Overlay application and Public Improvement Plan applications that may be
submitted in the future in accordance with City procedures for the development of
the Property, provided that Progress shall pay for all required permit fees and costs
including those required for peer review and expedited review if the City
subsequently agrees to any request by Progress for expedited review of permit
applications it may seek.
2.3 Should Progress construct only two-thirds (2/3rds) of the necessary improvements,
the City may build or cause to be built the remaining one-third (l/3rd) width street
improvements to Maple Island Road north of the International Way roundabout and
make improvements necessary to connect and modify the north roundabout at the
south terminus of this segment of Maple Island Road. Connecting this segment of
Maple Island Road to the northern roundabout on International Way will use
property dedicated by Progress around the roundabout to allow modifications of the
existing roundabout and setback pedestrian ways from the roundabout. The City
design of the pedestrian ways and the required dedications will be sufficient to
operate the roundabout safely and may be considered part of the required setbacks
for the Progress development. The estimated total area required for dedication is
42,600 square feet for the required 60-foot street right-of-way and the additional area
for modifying the roundabout.
2.4 Should the City acquire the property and improvements from Progress, the City shall
grant Progress two access points from Maple Island Road at no cost to Progress and
at two access locations approved by the City of Springfield for safe access. These
future access locations may be proposed, specified, and approved in the development
review process for the current development as a future. substitute f<?r the entrance
proposed off the northeast quadrant of the International Way roundabout to
Progress's development. Progress would pay for any improvements on Progress
property necessary for connecting to Maple Island Road.
2.5 The City will seek to obtain through negotiations with adjacent property owner,
Shorewood Packaging, some of the right-of-way for this new segment of Maple
Island Road to the west of the Progress subject site and to develop a shared full street
design within the narrowest right-of-way feasible on the Progress site and suitable to
accommodate both the functions of the existing Shorewood facilities west of the new
Maple Island Road, for the proposed new facilities planned on Progress's subject site
ANNEXA nON AGREEMENT - Page 6 of 10,
east of the new Maple Island Road, and transportation requirements anticipated by
further development in the vicinity of Maple Island Road.
2.6 In accordance with Recital I, Progress shall receive a stormwater Systems
Development Charge (SDC) credit up to the value of the 50-foot stormwater
easement granted to the City or the property dedicated to the City along the top-of-
bank for stormwater maintenance purposes in the riparian area of Maple Island
Slough.
2.7 As described in Recital G, the City shall propose adding Maple Island Road to the
City's SDC eligible project list. The City shall credit Progress up to the full amount
of the eligible transportation SDC credits to Progress's proposed development of the
Property.
3. Covenants Running With the Land. It is the intention of the parties that the covenants herein
are necessary for the annexation and development of the Property and, as such, shall run with the
Property and shall be binding upon the heirs, executors, assigns, administrators, and successors of
the parties hereto, and shall be construed to be a benefit and burden upon the Property. This
Agreement shall be recorded upon its execution in the Lane County Deeds and Records. This
Agreement may be assigned by Progress and shall benefit any assigns or successors in interest to
Progress. Execution of this Agreement is a precondition to the support of the City of the annexation
of the Property to the City. Accordingly, the City retains all rights for enforcement of this
Agreement. Notwithstanding any other provision of this Agreement, this Agreement shall ilOt be
enforceable by the City against Progress or the Property unless and until annexation of the Property
to the City has been approved by the Boundary Commission and all applicable appeal periods have
expired. If such annexation approval is not obtained for the Property, then the parties shall record
an appropriate instrument declaring this Agreement null and void.
4. Limitations on the Development. No portion of the Property shall be developed prior to the
approval of appropriate City permits.
5. Mutual Cooperation. The City and Progress shall endeavor to mutually cooperate with each
other in implementing the various matters contained herein.
6. Modification of Agreement. This Agreement may only be modified in writing signed by
both parties. Any modifications to this Agreement shall require the approval of the Springfield City
Council. This Agreement shall not be modified such that the minimum level of key urban facilities
and services as required by Metro Plan Policy 8a and b, p.II-C-4 and as required herein are not
provided in a timely manner to the Property.
7. Land Use. Nothing in this Agreement shall be construed as waiving any requirements of
state law or regulations of the Springfield Development Code or Springfield Municipal Code which
may be applicable to the use and development of the Property. Nothing herein shall be construed as
the City providing or agreeing to provide approval of any building, land use, or other development
application or land and drainage alteration permit application submitted by Progress. Progress is
responsible for obtaining at Progress's cost all state or federal permits and any other approvals as
may be required.
ANNEXA TION AGREEMENT - Page 7 of 10
8. Dolan. Progress knows and understands its rights under Dolan v. City ofTigard, 512 U.S.
374,114 S. Ct. 2309 (1994), and by entering into this Agreement hereby waives any requirement
that the City demonstrate that the public improvements and other obligations of Progress for
payments, financial responsibility and reimbursements set forth in Section 1 and required herein are
roughly proportional to the burden and demands placed upon the urban facilities and services by the
development and to the impacts of the development of the Property. Progress further waives any
cause of action it may have pursuant to Dolan v. City ofTigard and cases interpreting the legal
effect of Dolan arising out of the actions described herein.
9~ . Waiver of Right of Remonstrance. Progress agrees to sign any and an waivers, petitions,
consents and an other documents necessary to obtain the public facilities and services described
herein as benefiting the Property, under any Improvement Act or proceeding of the State of Oregon,
Lane County or the City and to waive an rights to remonstrate against these improvements.
Progress does not waive the right to protest the amount or manner of spreading the assessment
thereof, if the assessment appears to Progress to be inequitable or operate unfairly upon the
Property. Progress waives any rightto file a written remonstrance against these improvements.
Progress does not waive its right to comment !-Ipon any proposed Local Improvement District (LID)
or any related matters orally or in writing.
10. Ballot Measure 37. Progress hereby waives any claims to compensation it may have under
Ballot Measure 37 now existing, existing at the date of the Boundary Commission's approval of
Progress's annexation request; bills enacted by the legislature or approved through the initiative or
referendum process.or referred by the legislature which provide claims under Ballot Measure 37 or
similar compensation, provided, however, that this waiver does not extend to any Ballot Measure 37
claims that are created by new land use regulations enacted after the date of the Boundary
Commission's approval of the annexation request.
11. Invalidity. If any provision of this Agreement shall be deemed unenforceable or invalid,
. such enforceability or invalidity shall not affect the enforceability or validity of any other provision
of this Agreement. The validity, meaning, enforceability, and effect of this Agreement and the
rights and liabilities of the parties hereto shall be determined in accordance with the laws of the
State of Oregon.
DATED this 2'3 cl-day of .. S"",l1--' 2007.
IN WITNESS WHEREOF, Progress and the City have executed this Agreement as of the date first
herein above written.
S71 my. ESTMENT GROUP, LLC
~ '
BY ~o~~k. 2. \-\A.wC~
ITS . M.rAt.tA.,~""" . .
STATE OF OREGON
ANNEXA TION AGREEME
} 55
)f 10
COUNTY OF LANE
BE IT REMEMBERED that on this 2:2; 1> day of ~l-'t ,2007 before m~, the undersigned, a
no~ public ~ an for said County and State, personally appeared t.he within named
Vo7t;:'f.I b. tlweS whose identity was proved to me on the basis of satisfactory
evidence a1}~ who by me duly sworn, did say that m. . . is/~
the M A-NA 6~ of the within named limited liability company
and does acknowledge said instrument to be the free act and deed of said limited liability company
and was signed on behalf of said limited liability company by authority of its members.
OFFICIAL SEAL'
JANET G HALLVElURTON
NOrAAY PUBLIC-OREGON
COMMISSION NO. 386259
MY OOMMISSION EXPIReS aCT 20, ~~D8_
! 0 -2( -0'8'
My Commission Expires
By:
REVIEWED it APPROVED
AS TO FORM "
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DATE: . I { I J I ~.\
LEGAL COUNSEL
STATE OF OREGON
COUNTY OF LANE
} 55
BE IT REMEMBERED, that on this a41!: day of::ru.lvr , 2007 before me, the
undersigned, a notary public in and for said County and State~ally appeared the within
named Gino Grimaldi whose identity was proved to me on the basis of satisfactory evidence and
who by me duly sworn, did say that he is the City Manager of the within named municipal
corponition and does acknowledge said instrument to be the free act and deed of said municipal
corporation, and that the seal affixed to said instrument is the Corporate seal of said municipal
corporation, and that said instrument was signed and sealed in behalf of said municipal corporation
by authority of its City Council
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year last above written. ~ 0( 4-rnu "-
NOTARY BLIC FOR OREGON
f) OFFICIAL SEAL
I', AMY l SOWA
; - ,! NOTARY PUBLIC - OREGON I / ~;;;)- dO 0 1
\,~ ..,/ COMMISSION NO. 397942 MY COMMISSION EXPIRES
MY COMMISSION EXPIRES NOV. 22.2009
ANNEXA TION AGREEMENT - Page 9 of 10
LEGAL DESCRIPTION
Parcel 1 of Land Partition Plat No. 94-P0501, as filed and platted May 6, 1994
Official Records of Lane County. Oregon and in the office of the Lane County
Surveyor as County Surveyor File (CFS) No. 31948.
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OPTION AGREEMENT
AND
AGREEMENT OF PURCHASE AND SALE
DATE:
, 2007
("Effective Date")
FROM:
Progress Investment Group, LLC,
an Oregon limited liability company
("Owner")
TO:
City of Springfield,
an Oregon municipal corporation
("Optionee")
RECITALS
A, Owner owns fee simple title to the real property described in Exhibit A attached
hereto (the "Real Property") and intends to construct street improvements on the Property (the
"Improvements") pursuant to that certain Annexation Agreement between Owner and Optionee
dated as of the date he.reof. The Real Property and Improvements, together with all other rights,
hereditaments, and tenements appurtenant to the Real Property and Improvements, are
collectively referred to herein as the "Property."
B. Optionee desires to acquire an option to purchase the Property on the terms and
conditions herein stated.
C, Owner has agreed to grant Optionee an exclusive option to purchase the Property
and the parties desire to evidence their agreement regarding the option.'
The parties therefore agree as follows:
AGREEMENT
Section 1. Grant of Option
Owner, for and in consideration of the sum of $1 ,000.00 (the "Option Money Payment")
paid to Owner by Optionee in cash, receipt of which is acknowledged by Owner, grants to
Optionee the sole and exclusive option to purchase the Property in the manner and for the price
stated in this Agreement.
Section 2, Option Terms
2.1 Term, The term of the Option shall commence on the Effective Date and shall
continue for a period often (10) years (the "Term"). If the last day of the Term falls on a
Saturday, a Sunday, or a holiday recognized by the federal government or the state of Oregon, all
of Optionee's rights during either such time period shall extend through the next business day.
2,2 Exercise of Option, This option shall be exercised, if at all, by written notice (the
OPTION AGREEMENT - I
N:\Cit)'\Planning ZoningProgress Investment GroupOption Agreement 071707.doc
"Exercise Notice") given by Optionee to Owner at any time during the Term, which notice shall
state that Optionee has elected to exercise this option. This option may be exercised only with
respect to the entirety of the Property, and nothing contained herein shall be construed as
permitting Optionee to purchase less than all of the Property pursuant to this option. Upon.
exercise of this option, Optionee shall be obligated to purchase the Property from Owner, and
Owner shall be obligated to sell the Property to Optionee, for. the price and in the manner herein
set forth.
2.3 Failure to Exercise Option, If Optionee fails for any reason to exercise this
option in the manner set forth herein, Optionee shall have no further claim against or interest in
the Property or any of the Option Money Payment In the event of the failure to exercise the
Option, Optionee shall provide Owner with any instruments that Owner reasonably may deem
necessary for the purpose of removing from the public record any clo.ud on title to the Property
which is attributable to the grant or existence of this Option.
Section 3, Option Money
Whether or not the option is actually exercised, the Option Money Payment shall belong
to Owner, and the Option Money Payment shall not be credited against the Purchase Price.
Section 4, Purchase Price
4.1 Purchase Price, The purchase price for the Property (the "Purchase Price") shall
be the sum of (i) an amount equal to the base purchase price as follows:
Closing Date
Effective Date - December 31, 2007
January 1,2008 - December 31, 2008
January 1, 2009 - December 31, 2009
January 1,2010 - December 31,2010
January 1,2011 - December 31,2011
January 1, 2012-December 31, 2012
January J, 2013- December 31, 2013
January 1,2014 - December 31, 2014
January 1, 2015 - December 31, 2015
January 1, 2016 - December 31, 2016
January 1,2017 - Tenth Anniversary
of the Effective Date
Purchase Price
$205,000.00
$211,150.00
$217,484.50
$224,009.04
$230,729.31
$237,651.19
$244,780.73
$252,124.15
$259,687.87
$267,478.51
$275,502.87
and (ii) an amount equal to the total actual cost, which includes but is not limited to the payment
of the prevailing rate of wage pursuant to ORS 279C.800 through .870, incurred by Owner for
the construction of the Improvements (the "Construction Cost") as adjusted pursuant to this
paragraph. The Construction Cost shall be adjusted to reflect the greater of either (1) an increase
of three percent (3%) of the then current amount on January 1 of each calendar year subsequent
to the substantial completion of the Improvements, or (2) the percentage increase in the
Engineering News Record's 20-City Construction Cost Index (ENR 20-City CCI). The base
OPTION AGREEMENT - 2
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index to be used for this calculation shall be the published index rate from July to July at the end
of construction. Such Construction Cost calculation shall occur at that time subsequent to the
substantial completion of the Improvements. Within ten (10) days after Owner's receipt of the
Option Notice, Owner shall provide a written invoice to Optionee setting forth the Construction
Cost, including any applicable adjustment pursuant to this paragraph.
4,2 Payment of Purchase Price, The purchase price for the Property shall be payable
in cash at Closing.
Section 5, Remedies
5.1 Optionee, If Owner breaches any term or provision of this Agreement, then
Optionee, as its exclusive remedy and in lieu of any other relief, may either (1) terminate this
Agreement and obtain the return of the Option Money Payment, or (2) tender performance of the
obligations of Optionee and specifically enforce all obligations of Owner. Except as noted in
Section 5.3 and any specific remedies reserved elsewhere in this Agreement, Optionee waives the
right to pursue any remedy in law or equity against Owner other than the remedies specified
above, including any action for damages, in the event of a default by Owner.
5,2 Owner, If Optionee breaches any term or provision of this Agreement, and
regardless of whether the breach occurs before or after Optionee notifies Owner of the exercise of
the Option, then Owner, as its exclusive remedy and in lieu of any other relief, shall be entitled to
terminate this Agreement by giving Optionee written notice of termination and to retain the
Option Money Payment paid by Optionee. Owner acknowledges (l)the adequacy of this
exclusive remedy and (2) that this limitation of remedies is an essential part of this Agreement
from the perspective of Optionee. Except as noted in Section 5.3 and any specific remedies
reserved elsewhere in this Agreement, Owner expressly waives the right to pursue any other right
or remedy in law or equity other than the remedy specified above, including the right of specific
performance and the right to sue for damages, in the event of a default by Optionee. Optionee and
Owner have established the foregoing remedy in favor of Owner because of the difficulty and
inconvenience of ascertaining the actual damages Owner may suffer as a result of a breach of this
Agreement by Optionee.
5,3 Other Remedies, The limitations on remedies set forth in this section shall not
preclude either party from seeking or obtaining injunctive relief or from seeking recovery against
the other under any contractual indemnity set forth herein or for causing physical damage or
injury to persons or property. EXCEPT AND PROVIDED HOWEVER, ANY ACTION
AGAINST THE OPTIONEE IS SUBJECT TO THE OREGON CONSTITUTION AND THE
OREGON REVISED STATUTES INCLUDING SPECIFICALLY, BUT NOT LIMITED TO,
THE OREGON TORT CLAIMS ACT (ORS 30.260 THROUGH 30.295).
Section 6, Conditions Precedent to Closing
In addition to any other conditions contained in this Agreement, set forth below are
certain conditions precedent for the benefit of Optionee (the "Conditions"). The Conditions are
. intended solely for the benefit of Optionee and Optionee shall have the right to waive, by written
notice, any of the Conditions, at its sole discretion; giving the ExerciseNotice shall not constitute
such a waiver. If any Condition is not satisfied or waived on or before the de~dline for
OPTION AGREEMENT - 3
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satisfaction specified herein, then Optionee shall have the right to terminate this Agreement, at its
sole election, by giving Owner notice of termination before the deadline expires, to obtain the
return of the Option Money Payment, and to exercise any remedy available to Optionee if the
subject Condition was not satisfied by reason of a breach of this Agreement by Owner. If
Optionee does not give Owner notice of termination before the applicable deadline, then
Optionee shall be deemed to have waivedthe termination privilege with respect to the Condition
in question. The Conditions specifically delineated in this section are the following:
6,1 Title, At closing the Owner shall convey fee simple title to the Property by
statutory warranty deed, subject only to nondelinquent real property taxes, items _, _,_,
_, and _ of the preliminary title report prepared by (the "Title Company"),
Order No. _, dated ,2007 (the "Preliminary Commitment"), a copy of which
is attached as Exhibit B, the Memorandum described in Section 11 below, and other matters that
may be approved in writing by Optionee. On the Closing Date, the Title Company shall be
ready, willing, and able to issue, and shall issue to Optionee on recordation of the Owner's deed
mentioned below, the title insurance policy required by Section 8.6.
6.2 Performance, On or before the Closing Date, Owner shall have performed all of
the covenants, conditions, agreements, and promises to be performed by it under this Agreement.
Section 7, Closing
7.1 Time and Place. Closing of the sale and purchase of the Property (the "Closing")
shall occur on a date (the "Closing Date") selected by Optionee, but in all events the Closing shall
occur within thirty (30) days after the date that the Exercise Notice is given. The escrow for the
Closing shall be established at the office of the Title Company.
7,2 Closing Obligations, On the Closing Date, Owner and Optionee shall deposit the
following documents and funds in escrow, and the Title Company shall close escrow in
accordance with the instructions of Owner and Optionee.
7,2,1 Owner shall deposit the following:
(1) A statutory warranty deed, duly executed and acknowledged;
(2) A duly executed affidavit certifying that Owner is not a foreign person, trust,
partnership, or corporation in compliance with the requirements ofIRC 91445;
(3) Original counterparts or legible photocopies of all documents, feasibility studies,
surveys, engineering reports~ and other items of a similar nature in the possession of Owner that
relate to the Property; .
(4) Such documents as Optionee or the Title Company may require to evidence the
authority of Owner to consummate this transaction; and
(5) Such other documents and funds, including (without limitation) escrow
instructions, as are required of Owner to close the sale in accordance with this Agreement.
7,2,2 Optionee shall deposit the following:
(1) The Purchase Price;
(2) . Such documents as Owner or the Title Company may require to evidence the
authority of Optionee to consummate the transaction contemplated; and
(3) Such other documents and funds, including (without limitation) escrow
instructions, as are required of Optionee to close the sale and purchase of the Property in
OPTION AGREEMENT - 4
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accordance with this Agreement. ,
7,3 Costs, Optionee and Owner each shall pay one-half of the escrow fee of the Title
Company with respect to the Closing. Owner shall pay the premium for the title insurance policy
that Owner is obligated to provide to Optionee, and for all conveyance or excise taxes payable by
reason of the purchase and sale of the Property. Optionee shall pay the fee (exclusive of any
conveyance or excise tax) for recording the conveyance documents referred to herein.
7,4 Prorations, All items of expense incurred by Owner with respect to the Property
shall be paid by Owner at Closing, without proration. All real property taxes and assessments
payable with respect to the tax year in which Closing occurs shall be prorated between Owner
and Optionee as of the Closing Date. ,
7,5 Title Insurance Policies, As soon as practicable after Closing, Owner shall cause
the Title Company to issue its standard form Owners's AL T A Title Insurance Policy, with
extended coverage, in the amount of the Purchase Price, insuring fee simple title to the Property .
vested in Optionee, subject only to the Permitted Exceptions.
Section 8. Possession
Optionee shall be entitled to exclusive possession of the Property on and after the Closing
Date.
Section 9, Covenants of Owner
Owner acknowledges that the covenants of Owner contained in this Agreement, including
the covenants contained in this Section 9 (the "Covenants"), are material inducements to
Optionee to enter into this Agreement. The Covenants specifically delineated in this Section are
the following:
9.1 Information, Owner agrees to deliver to Optionee, within twenty (20) days after
the Effective Date, photocopies of all documents related to the use or ownership of the Property
that Owner possesses, including (without limitation) all studies, reports, aerial photographs, and
other documents of a like nature.
9.2 Maintenance, Before the Closing Date, Owner shall maintain the Property in the
same condition as it now exists, construction of the Improvements and ordinary wear and tear
excepted, and shall not cause or permit any waste.
9,3 Ownership, During the Term, Owner reserves the right to sell, contract to sell,
assign, lease, or otherwise transfer the Property or any part of it, and grant an option to any third
party to acquire all or any portion of it, provided that any such transfer shall be subject to the
option granted herein.
Section 10, As Is
Optionee acknowledges that the option granted herein is to purchase the Property "AS
IS," with all faults. '
Section 11. Recording
On the Effective Date, Owner shall execute, acknowledge, and deliver to Optionee a
Memorandum in the form attached as Exhibit C, which Memorandum shall automatically
OPTION AGREEMENT- 5
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terminate upon expiration of the Term.
Section 12, Waiver
Failure by Owner or Optionee to enforce any right under this Agreement shall not be
deemed to be a waiver of that right or of any other right.
Section 13. Successors and Assigns,
. Subject to the limitations on Owner's right to convey the Property set forth elsewhere
herein, the terms, covenants, and conditions herein contained shall be binding on and inure to the
benefit of the heirs, successors, and assigns of Owner and Optionee. Optionee may not assign its
interest in this Agreement and the Property to any person or entity, without the consent of Owner.
Section 14. Notices
All notices or other communications required or permitted under this Agreement must be
in writing and must be (1) personally delivered (including by means of a professional messenger
service), which notices and communications will be deemed received on receipt at the office of
the addressee; (2) sent by registered or certified mail, postage prepaid, return receipt requested,
which notices and communications will be deemed received three days after deposit in the
United States mail, postage prepaid; (3) sent by overnight delivery using a nationally recognized
overnight courier service, which notices and communications will be deemed received one
business day after deposit with the courier; or (4) sentby facsimile, which notices and
communications will be deemed received on the delivering party's receipt of a transmission
confirmation.
To Optionee:
City of Springfield
Attn:
Fax:
With a Copy to:
Attn:
Fax:
To Owner:
Progress Investment Group, LLC
2892 Crescent Avenue.
Eugene, OR 97408 ~
Attn: :::ro$~k. c;,
Fax: 541-33 -2135
With a Copy to:
Micheal M. Reeder, Esq.
OPTION AGREEMENT - 6
N:\Cit)'\Planning Zoning?rogress Investment GroupOption Agreement 071707.doc
Arnold Gallagher Saydack Percell Roberts & Potter, P.C.
800 Willamette Street, Suite 800
Eugene, OR 97401
Fax: 541-484-0536
The foregoing addresses may be changed by written notice, given in the same manner.
Section 15. Attorney Fees
If litigation is instituted with respect to this Agreement, the prevailing party shall be entitled to
recover from the losing party, in addition to all other sums and allowable costs, its reasonable
attorney fees, both in preparation for and at trial and any appeal or review, such amount to be set
by the court before which the matter is heard.
Section 16. Risk of Loss
Owner shall bear the risk of all loss or damage to the Property from all causes, through
the Closing Date. If, before the Closing Date, and regardless of whether the Exercise Notice has
yet been given or is subsequently given, all or part of the Property is damaged by fire or by any
other cause of any natwe or if all or any portion of the Property is taken by condemnation, or if
any such condemnation is threatened, Owner shall give Optionee written notice of such event.
Optionee may terminate this Agreement by giving written notice to Owner within fifteen (15)
days after receipt by Optionee of written notice from Owner of such casualty or condemnation,
and Owner will return to Optionee the Option Money Payment. If Optionee does not elect to
terminate this Agreement, then this Agreement shall continue in force and, if Optionee exercises
the Option and the Property is conveyed to Optionee, then all interest of Owner in and to any
insurance proceeds or condemnation awards that may be payable to Owner on account of such
casualty or condemnation shall be assigned to Optionee at Closing.
Section 17. Integration, Modification, or Amendments
This Agreement contains the entire agreement of the parties with respect to the Property
and supersedes all prior written and oral negotiations and agreements with respect to the Property
except the Annexation Agreement. Any modifications, changes, additions, or deletions to this
Agreement must be approved by Owner and Optionee, in writing.
Section 18, Representation
Owner and Optionee have each been represented by separate legal counsel of choice with
respect to this transaction. Except as otherwise provided in Section 15, each party shall be
responsible for all attorney fees incurred by it with respect to this Agreement.
Section 19, Counterparts; Pronoups
This Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same Agreement and shall be effective when one or more counterparts
have been signed and delivered by Owner and Optionee. With respect to any pronouns used, each
gender used shall include the other gender and the singular and the plural, as the context may
requIre.
OPTION AGREEMENT ~ 7
N:\City\Planning ZoningProgress Investment GroupOption Agreement 071707.doc
Section 20. Governing Law; Interpretation
This Agreement shall be governed by the laws of Oregon. If a court of competent
jurisdiction holds any portion of this Agreement to be void or unenforceable as written, Owner
and Optionee intend that (1) that portion of this Agreement be enforced to the extent permitted
by law, and (2) the balance of this Agreement remain in full force and effect.
Section 21. Time Is of the Essence
Time is of the essence of this Agreement.
Section 22, Authority to Execute
Each person executing this Agreement on behalf of Owner and Optionee, respectively,
warrants his or her authority to do so.
Section 23, Statutory Disclaimer
THIS INSTRUMENT WILL NOT ALLOW USE OF THE PROPERTY DESCRIBED IN
THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND
REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON
ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE
APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED
USES AND TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR
FOREST PRACTICES AS DEFINED IN ORS 30.930.
Section 24, Warranties and Representations of Owner
24,1 Warranties, Owner acknowledges that the warranties and representations of Owner
contained in this Agreement, including the warranties and representations contained in this
. Section 24 (the "Warranties"), are material inducements to Optionee to enter into this Option
Agreement. All Warranties, and Optionee's right to assert a breach of them, shall survive
execution of this Agreement, the Closing, and the execution and delivery of the Closing
documents. If, before Closing, Optionee discovers or is advised that any of the Warranties was
untrue when made, then Optionee shall have the option t6 either (1) terminate this Agreement
and obtain the return of all Option Money Payments paid, without waiving any cause of action
that Optionee may be entitled to assert against Owner by reason of the breach of the Warranty, or
(2) continue this Agreement, without waiving any cause of action that Optionee may be entitled
to assert against Owner by reason of the breach of the Warranty. If, after Closing, Optionee
discovers or is advised that any of the Warranties was untrue when made, then Optionee may
pursue any remedy available to Optionee at law or in equity by reason of the breach of such
Warranty. Owner warrants and represents to Optionee that the following matters are true and
correct:
OPTION AGREEMENT - 8
N:\City\Planning Zoningprogress Investment GroupOption Agreement 071707 ,doc
24,1.1 Hazardous Substances, For purposes of this subsection, the phrase "Hazardous
Substances" has the same meaning as is designated in ORS 465.200(15). Owner warrants,
represents, and covenants as follows:
(1) To the knowledge of Owner, there are no Hazardous Substances in, upon, or buried
on or beneath the Property and no HazardousSubstances have been emitted or released
from the Property in violation of any environmental laws of the federal or state
government;
(2) Owner has not brought onto, stored on, buried, used on, emitted or released from, or
allowed to be brought onto, stored on, buried, used on, or emitted or released from, the
Property any Hazardous Substances in violation of any environmental laws of the federal
or state government; and
(3) To the knowledge of Owner, no Underground storage tanks are located on the
Property, including (without limitation) any storage tanks that contain, or previously
contained, any Hazardous Substances, and Owner agrees not to cause or permit any such
tanks to be installed in the Property before Closing. '
Section 25, Environmental Audit. On or before the closing date, Optionee may at Optionee's
expense conduct an environmental review and audit (the "Environmental Audit") of the Property,
indicating to the satisfaction of Optionee that the Property does not contain, either on its surface
or in its subsurface or underlying water table, any Hazardous Substances (defined in
Section 13.1.1). The Environmental Audit may include a historical review ofthe use of the
Property, review of all regulatory agency permits and compliance and enforcement files and
records, soil tests, the acquisition of core samples and water table samples by drilling conducted
on the Property, and such other tests and studies as Optionee may deem appropriate. All tests and
studi~s shall be conducted by agents selected by Optionee and performed as Optionee shall
direct, subject to the approval of Owner, which shall not be unreasonably withheld, and the
provisions of Section 26. Optionee shall pay the cost of all tests and studies undertaken.
Section 26, Access to Property
26.1 Access, After date of Optionee's exercise notice Owner grants to Optionee and its
agents the right to enter on the Property at any reasonable times before the Closing Date for the
purpose of conducting tests or studies that Optionee may deem necessary or appropriate in
connection with its acquisition of the Property. Optionee shall bear the cost of all test and studies
undertaken. Owner shall cooperate with Optionee in making such tests and studies.
OPTION AGREEMENT - 9
N:\City\Planning Zoningprogress Investment GroupOption Agreement 071707,doc
26,2 Indemnification. Optionee shall defend, indemnify and hold Owner, as well as
Owner's tenants, harmless from any damages which may be caused by Optionee's access or
activities while exercising the right to access described in Paragraph 25.1.
[Remainder of page intentionally left blank.]
OPTION AGREEMENT - 10
N:\City\Planriing ZoningProgress Investment GroupOption Agreement 071707 ,doc
Executed as of the day and year first above written.
OWNER:
~
State of OREGON
County of LANE
} 55
BE IT REMEMBERED that on this 2~ ~ day of J;(.,'f ,2007 before me, the
undersign1.;a notary Pybli~d for said County and State, personally appeared the within
named \. st.I/J b. ~ whose identity was proved to me on the basis of
satisfactory evidence and who by me duly sworn, did say that *
is~he .I1ItNA~EJ( ., of the within named limited liability
company and does acknowledge said instrument to be the free act and deed of said limited
liability company and was signed on behalf of said limited liability company by authority of its
members.
IN TESTIMONY WHEREOF, I have hereunto set my han
and year last above written.
OFFICIAL SEAL
JANET G HALLYBURTON
NOTARY PUBLIC-OREGON . v"
COMMISSION NO. 386259 Y Commission Expires (0 -zh -'60
MY COMMISSION eXPliU1S ocr 2., ~Qoa
[Optionee signature on following page.]
OPTION AGREEMENT - II
N:\City\Planning Zoning\Progress Investment Group\Option Agreement 071707,doc
REVIEWED & APPROVED
~O FORM \
f2..-t' '\:'" ~ \..vt..r-I \ ~
DATE:~ 01
LEGAL COUNSEL
OPTIONEE:
By:
State of Oregon
County OF LANE
BE IT REMEMBERED, that on this ~1--t!:. day of ~, 2007 before me, the
undersigned, a notary public in and for said County and State, P6rsonaUy appeared the within
named Gino Grimaldi whose identity was proved to me on the basis of satisfactory evidence and
who by me duly sworn, did say that he is the City Manager of the within named municipal
corporation and does acknowledge said instrument to be the free act and deed of said municipal
corporation, and that the seal affixed to said instrument is the Corporate seal of said municipal
corporation, and that said instrument was signed and sealed in behalf of said municipal
corporation by authority of its City Council
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal the day
and year last above written.
I) OFFICIAL SEAL
AMY L SOWA .
;, ) NOTARY PUBLIC. OREGON
\.~ ,..,.. COMMISSION NO. 397942
". . MY COMMISSION EX~IRES NOV, 22, 2009
~ 'c;j.~
Notary Pu IC for Oregon
II . ;))-~;;rbDC} .
My Commission Expires
Attachments:
Exhibit A-Property
Exhibit B-Preliminary Commitment
Exhibit C-Form of Memorandum
OPTION AGREEMENT - 12
N:\City\Planning Zoningprogress Investment Groupoption Agreement 071707,doc
LEGAL DESCRIPTION
Parcel 1 of Land Partition Plat No. 94-P0501, as filed and platted May 6, 1994
Official Records of Lane County, Oregon and in the office of the Lane County
Surveyor as County Surveyor File (CFS) No. 31948. .
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\ ::,t'EXHIBlT"A' ,':. '''Ii
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Exhibit B
Preliminary Commitment
OPTION AGREEMENT - 14
N:\City\Planning ZoningProgress Investment Groupclption Agreement 071707,doc
Exhibit C
Form of Memorandum
MEMORANDUM OF OPTION AGREEMENT
DATE:
,2007
("Effective Date")
FROM:
Progress Investment Group, LLC,
an Oregon limited liability company
2892 Crescent Avenue
Eugene, OR 97408
Attn:
Fax: 541-335-2135
("Owner")
TO:
City of Springfield,
an Oregon municipal corporation
Attn:
Fax:
("Optionee")
Owner and Optionee are parties to that certain Option Agreement dated as of the dated'
hereof pursuant to which Optionee holds an exclusive option (the "Option") to purchase that'
certain real property and the improvements thereon described in Exhibit A attached hereto.
The Option expires on the tenth anniversary of the Effective Date.
[Remainder of page intentionally left blank.]
OPTION AGREEMENT - 15
N:\Cit)'J'lanning ZoningProgress Investment GroupOption Agreement 07] 707.doc
Executed as of the day and year first above written.
OWNER:
State of OREGON
County of LANE
} 55
BE IT REMEMBERED that on this ::i8r:1 day of .JU,l~ ,2007 before me, the
undersigned, a notary public in and for said County and Stat , personally appeared the wIthin
named .:Josph ~ -t-ftuve..S whose identity was proved to me on the basis of
~atisfactory evidence and who by me duly sworn, did say that ..J'()5~e" e ~e 5. ..
Is/are the ~ ~(' . .. of the WIt m named lImIted lIabIlIty
company and does ac owledge SaId mstrument to be the free act and deed of SaId lImIted
liability company and was signed on behalf of said limited liability company by authority of its
members.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed myofficial seal the day
and year last above written.
~.{ ,Jvzm.-
Notary Pub for. .
OFFICIAL SEAL I (- ;, -;- (YO 0 '1
~' AMY L SOWA . My Commission Expires
, ' NOTARY PUBLIC - OREGON ,. .
....,.,../ COMMISSION NO. 397942
'.. " EXPIRES NOV, 22. .. .
MYCOMMISS1OO :'2ool ptlOnee SIgnature on followmg page.]
OPTION AGREEMENT - 16
N:\City\Planning Zoning\Progress Investment Group\Option Agreement 071707 .doc
OPTIONEE:
By:
State of Oregon
County OF LANE
BE IT REMEMBERED, that on this 0l4fi. day of~, 2007 before me, the
undersigned, a notary public in and for said County arid S~sonally appeared the within
named Gino Grimaldi whose identity was proved to me on the basis of satisfactory evidence and
who by me duly sworn, did say that he is the City Manager of the within named municipal
corporation and does acknowledge said instrument to be the free act and deed of said municipal
corporation, and that the seal affixed to said instrument is the Corporate seal of said municipal
corporation, and that said instrument was signed and sealed in behalf of said municipal
corporation by authority of its City Council '
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal the day
and year last above written.
_OFFICIAL SEAL
., AMY l SOWA
i, } NOTARY PUBLIC - OREGON
....;, ,.... COMMISSION NO. 397942
, MY COMMISSION EXPIRES NOV. 22. 2009
~~~
Notary Publ for Oregon
11-:>;) ~ ;rOo 1
My Commission Expires
OPTION AGREEMENT - 17
N:\City\Planning ZoningProgress Investment GroupOption Agreement 071707,doc