HomeMy WebLinkAbout020121_cabs01JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, Jefferson County Administrat
DATE: February 1, 2021
RE: Briefing and Potential Action to Concur that County Administrator Send a
Joint Letter with Jefferson Land Trust Requesting the WA Department of
Natural Resources to Obtain Appraisals on Three Leased Trust Land
Transfer Properties in Preparation for Potential Purchase by the Land Trust
STATEMENT OF ISSUE: The Jefferson Land Trust (JLT) will brief the Board of County
Commissioners on JLT's proposal to purchase three leased Trust Land Transfer properties and
the Board may concur with the County Administrator signing and sending a joint letter with the
JLT requesting the WA Department of Natural Resources to obtain appraisals on the three leased
Trust Land Transfer properties in preparation for potential purchase of the parcels by JLT: two
properties in the Quimper Wildlife Corridor, and on the Coyle Peninsula.
ANALYSIS: As part of the state's Trust Land Transfer (TLT) program, the State Legislature
funded the transfer of three parcels in Jefferson County that are managed by the WA Department
of Natural Resources (DNR), but executed 50-year leases in 2009 instead of an outright transfer
of ownership. The parcels would again revert to being eligible for commercial timber harvest
once the leases expired, unless new TLT leases were again funded by the Legislature at that time.
The three parcels are called Quimper Peninsula West (81 Acres), Quimper Peninsula East (28
acres) and Thorndyke (50 acres). See attached location maps.
Under the provisions of the three leases, the County has the right to purchase a leased property
for its residual value during the term of the lease. The residual value is the difference between
the value of the lease and the current market value of the property, as determined by a fair
market appraisal.
Jefferson Land Trust is now offering to raise funds to complete a full purchase and transfer of
ownership of the three properties, in order to make their protection permanent. The first step, is
asking DNR to conduct an appraisal of the properties, which JLT is prepared to pay for.
In addition to location maps, background materials provided by the Jefferson Land Trust about
the three projects are attached:
• An overview of the Jefferson County/DNR Trust Land Transfer Leased Properties;
• Draft joint letter to DNR
• 2009 Quimper Peninsula West TLT Lease (as an example of the three existing TLT
Leases)
• 2009 Stewardship Agreement between Jefferson Land Trust and Jefferson County
Sarah Spaeth, JLT's Director, Conservation and Strategic Partnerships, will brief the County
Commissioners on JLT's proposal to purchase the leased properties.
FISCAL IMPACT: None from the briefing.
RECOMMENDATION: Staff recommends hearing the briefing by the Jefferson Land Trust,
and then pass a motion concurring with the County Administrator signing a joint letter with the
JLT, requesting that the DNR initiate appraisals of the three properties.
Date
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Jefferson County/DNR Trust Land Transfer
Leased Properties
Trust Land Transfer Program Overview
Washington State Department of Natural Resources (DNR) manages more than
3 million acres of state properties that earn income to fund schools, universities,
capitol buildings, and other state institutions and help fund local services in many
counties. They strive to improve returns from state trust lands; however, not all
trust lands are best suited for income production. According to DNR "Some state
trust lands have important social or ecological values that are desirable to be
managed for a special use or feature of importance rather than for economic
returns. The Trust Land Transfer (TLT) Program presents an opportunity to retain
these special lands in public ownership while maintaining and improving
economic returns to trust beneficiaries. Transfers [are made] to designated
public agencies of selected lands with statewide significance deemed appropriate
for state park, fish and wildlife habitat, natural area preserves, natural resources
conservation areas, public open space, or recreation purposes." Each biennium
DNR takes applications for the TLT program from across the state, ranks them,
and presents a package to the legislature for funding. The Legislature reviews
the proposal, determines the makeup of the final package, and sets an
appropriation funding level, which then compensates DNR for the value of the
land whose ownership, or use, is transferred to a local government.
Jefferson County TLT Lease Background
In 2005 JLT approached Jefferson County about applying to the 2007-9 TLT
program for Quimper West, Quimper East (two DNR parcels located within the
area of the Quimper Wildlife Corridor) and a Thorndyke Shoreline property, and
the County agreed. DNR ranked the three properties the County submitted for
consideration highly enough to qualify for the available funding, although the
legislature decided to change from transferring ownership to Jefferson County to
negotiating renewable 50-year leases that specify the properties are for habitat,
open space, and recreation.
Under the terms of the leases, the County has the right to purchase a leased
property for the residual, or difference between the value of the lease and the
current market value of the property, as determined by a fair market appraisal.
As an example, in June 2009, the 80-acre Quimper West property could have
been purchased by the County from DNR for $170,000.
When the leases took effect in June 2009, Jefferson County's fiscal situation led
them to have reservations about undertaking management of additional lands, so
Jefferson Land Trust stepped in and negotiated a stewardship agreement with
the County. We agreed to submit annual monitoring reports and if cleanup,
noxious weed control, or other stewardship activities are needed, consult with
Jefferson County staff, and to the best of our capacity, address the concerns with
the help of community volunteers. At its option, Jefferson County may assist with
these activities.
The Current Situation
Over the last few years Jefferson Land Trust has discussed advancing the
purchase of these three properties with DNR staff and Jefferson County
Administrator Philip Morely. DNR staff has outlined the process that the partners
would need to initiate for DNR consideration. Our contacts at DNR indicated that
the 50-year leases were not ideal from DNR's perspective, and that they were
interested in resolving those with acquisition of the remainder fee interest by the
County.
Jefferson Land Trust is prepared to raise the money needed for the full transfer of
these three TLT properties in order to ensure protection in perpetuity. We are also
able to cover the appraisal costs as required by DNR. The first step in launching
the process is submitting a joint letter to DNR requesting that the full transfer of
the Quimper West, Quimper East and Thorndyke properties be initiated. DNR
would then authorize an appraisal process that would determine the remaining
value of the fee interest. This is necessary for the Land Trust to gauge the
funding needed for full transfer.
JEFFERSON LAND TRUST
Helping the community preserve open space, working lands and habitat forever
1033 Lawrence Street, Port Townsend WA 98368
360.379.9501 info@saveland.org www.saveland.org
October _, 2020
Bob Winslow, Trust Land Transfer Project Manager
Washington Department of Natural Resources
Olympia, WA 98504
Dear Mr. Winslow -
Jefferson Land Trust and Jefferson County are following up on our earlier conversations about the
possibility of Jefferson County acquiring the remainder fee interest in the three DNR TLT properties
shown below that are currently under 50-year renewable leases to our County. We would like to initiate
this process as outlined in section 3.02 of the leases, and we understand that the next step is for the
State to obtain appraisals of the remainder fee interest for each of the properties. We are prepared to
pay, in advance, the cost of those appraisals if you can let us know what that cost will be.
Once we have the appraised values, the County, Jefferson Land Trust and community will be in a
position to assemble the necessary funding to submit an offer reflecting the fair market value at the time
of the appraisal.
Thank you.
Sincerely yours,
Philip Morley, Jefferson County Administrator
Sarah Spaeth, Jefferson Land Trust Director of Conservation and Strategic Partnerships
cc: Brock Millern, Conservation, Recreation, and Transactions Division
Dave Gordon
Name
Acres +/-
Lease Term
Fee
TILT Lease
Ownership
Value paid by
Value at time
legislature
of lease
Quimper
81 acres
50 years; ends
$1,155,000
$985,000
Peninsula
in 2059
West
Quimper
28 acres
50 years; ends
$430,000
$371,200
Peninsula East
in 2059
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>efferson Land Trust is a 501 (c) (3) nonprofit, tax-exempt, private corporation. " 10,C°"
Thorndyke 50 acres 50 years; ends $681,000 $619,000
in 2059
JEFFERSON LAND TRUST
Helping the community preserve open space, working lands and habitat forever
. 1033 Lawrence Street, Port Townsend WA 98368
360.379.9501 info@saveland.org www.saveland.org
October—, 2020
Bob Winslow, Trust Land Transfer Project Manager
Washington Department of Natural Resources
Olympia, WA 98504
Dear Mr. Winslow -
Jefferson Land Trust and Jefferson County are following up on our earlier conversations about the
possibility of Jefferson County acquiring the remainder fee interest in the three DNR TLT properties
shown below that are currently under 50-year renewable leases to our County. We would like to initiate
this process as outlined in section 3.02 of the leases, and we understand that the next step is for the
State to obtain appraisals of the remainder fee interest for each of the properties. We are prepared to
pay, in advance, the cost of those appraisals if you can let us know what that cost will be.
Once we have the appraised values, the County, Jefferson Land Trust and community will be in a
position to assemble the necessary funding to submit an offer reflecting the fair market value at the time
of the appraisal.
Thank you.
Sincerely yours,
Philip Morley, Jefferson County Administrator
Sarah Spaeth, Jefferson Land Trust Director of Conservation and Strategic Partnerships
cc: Brock Millern, Conservation, Recreation, and Transactions Division
Dave Gordon
L4aEDITF
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°
f Fo�gND TRVSTy~
Jefferson Land Trust is a 501 (c) (3) non profit, tax-exempt, private corporation. °� °°
Name
Acres +/-
Lease Term
Fee
TLT Lease
Ownership
Value paid by
Value at time
legislature
of lease
Quimper
81 acres
50 years; ends
$1,155,000
$985,000
Peninsula
in 2059
West
Quimper
28 acres
50 years; ends
$430,000
$371,200
Peninsula East
in 2059
Thorndyke
50 acres
50 years; ends
$681,000
$619,000
in 2059
AFTER RECORDING RETURN TO:
Department of Natural Resources
Asset Management and Protection Division
ATTN: Trust Land Transfer Program
P.O. Box 47014
Olympia, WA 98504-7014
WASHINGTON STATE DEPARTMENT OF
Natural Resources
.............
Peter Goldmark Commissioner ofPublictands
QUIMPER PENINSULA WEST
TRUST LAND TRANSFER LEASE
Lease No. 60-082210
BY THIS LEASE, issued under the authority of Washington Laws of 2008, Chapter 328, Section
3042, the STATE OF WASHINGTON, Department of Natural Resources, hereinafter called
"State", leases to JEFFERSON COUNTY, hereinafter called "Lessee", the use of the premises,
hereinafter called the "Premises", in Jefferson County Washington, the legal description(s) of
which is set forth in Exhibit 1 A, attached hereto and incorporated herein by this reference and
the encumbrances, if any, of which are set forth in Exhibit 1B, attached hereto and incorporated
herein by this reference. This Lease is made upon the terms and conditions and for the
consideration enumerated herein.
1.01 Lease Term.
in fifty (50) years, on
SECTION 1 OCCUPANCY
This Lease is effective as of the date of signature by State and shall expire
1.02 Condition of Premises. Taking possession of the Premises by Lessee shall constitute
acknowledgment by Lessee that the Premises are in good condition and that the Premises are in
all respects suitable for the Permitted Use(s) in Section 2. State has no obligation to make any
repairs, additions, or improvements thereto and expressly disclaims any warranty that the
Premises are suitable for such Permitted Use(s). Lessee agrees to maintain the Premises in at
least as good a condition as the Premises are received, and allow no degradation of the Premises
and natural resources thereon.
Trust Land Transfer Lease 1 of 22 Lease No. 60-082210
1.03 Non -Default Termination. In response to a written request from Lessee asking to
surrender the leasehold, State may, at its sole discretion, terminate all or part of this Lease upon
satisfaction by Lessee of all outstanding duties and obligations.
1.04 Renewal of Lease. At the end of this Lease term, Lessee shall have the option to apply
for another fifty (50) year lease term, upon lump sum payment of full fair market value of the
leasehold on the date of renewal, and subject to reaching agreement upon the provisions of a new
Lease in context of applicable law in existence at the time of renewal.
SECTION 2 USE OF PREMISES
2.01 Permitted Use. Lessee may put the Premises to the following use(s) for public benefit:
fish and wildlife habitat, open space, or recreation. Lessee may also request alternative uses of
the Premises that are compatible with the original intended public purposes, provided such uses
are approved by State, and by the Legislature of the State of Washington, at Lessee's sole
expense.
2.02 Plan of Development. Lessee shall not make any improvements to nor modify the
Premises without submitting ninety (90) days in advance to State its general plan for the use and
development hereinafter called "Plan of Use and Development", of the Premises seeking State's
consent to the uses and development proposed in the plan. State will review the plan and provide
comments within ninety (90) days of receipt, with State's review primarily focusing upon
consistency with the Permitted Uses and the Habitat Conservation Plan described in Section
2.05. State may condition its consent on any review or approval required by other entities or
may delay its comments and consent until any required review or approval(s) is received, at
State's discretion. Lessee shall comply with the agreed upon terms of the approved Plan of Use
and Development. The plan shall include, as appropriate, the following:
A map showing the areas and acreage to be developed along with the location of
improvements;
2. Changes in use that may occur as a result of the Lessee's management of the
Premises pursuant to a plan of development;
3. Timber harvest, land clearing and grading plans with acreage figures; and
4. An estimated total cost of improvements.
Any Plan of Use and Development must be consistent with the Permitted Uses, and may be
limited by Subsection 2.04 and Section 6.
All costs and fees associated with development, construction, maintenance and removal of
improvements upon the Premises during and at the end of the Lease term shall be the sole
responsibility of Lessee.
Trust Land Transfer Lease 2 of 22 Lease No. 60-082210
Lessee shall obtain all building permits and other required permits, licenses, permissions,
consents, and approvals from governmental agencies or third parties in connection with this
Lease and Lessee's Permitted Uses including construction of any improvements, changes,
alterations, additions, repairs, maintenance to or replacement of the Premises, or for the conduct
of any activity upon the Premises at the sole cost and expense of Lessee. Copies of such permits,
licenses, notifications, permissions, consents, and approvals shall be supplied to State upon
request.
2.03 Compliance Specifications. On all improvements relating to the development of the
Premises, the following shall apply:
State may make inspections during construction.
2. State shall make a final inspection of the completed project and, if acceptable,
shall issue its written acceptance.
State's approval or disapproval of any plans, specifications, improvements or completed projects,
shall not obligate or render State liable in any way.
2.04 Limitations on Use. The following restrictions shall apply to use of the Premises:
Lessee shall conform to all applicable laws, rules, regulations, permits, orders, or
requirements of any public authority affecting the Premises and the use thereof
and shall bear, at Lessee's sole expense, any costs of such compliance including
any attorney fees, costs, fines or penalties.
2. Lessee shall remove no valuable material, including but not limited to forest
products, timber, minerals, sand, or gravel, unless Lessee has received State's
prior written approval and made arrangements to compensate State for the value
thereof. All timber, forest products and valuable material ownership thereof
remain with State.
3. Lessee shall take all reasonable precautions to control negative effects of
designated or dispersed public access, including, but not limited to: a) protect the
Premises from fire, insects and disease, and make every effort to report and
suppress such fires, and report outbreaks of insects and disease as may occur; b)
protect the Premises from asset value losses due to vandalism, garbage dumping,
resource theft or other illegal activities; and c) protect the Premises from damage
to soils, water quality, plants, animals or other elements of the forest environment.
If necessary to control such negative effects, Lessee shall close, limit, or redirect
public access, at Lessee's reasonable discretion. Lessee's regulation of activities
on the Premises shall be consistent with applicable law and the Plan of Use and
Development.
4. Lessee shall not allow any activity that negatively impacts adjoining land
managed by State. State shall have sole discretion in this regard.
Trust Land Transfer Lease 3 of 22 Lease No. 60-082210
5. Lessee shall not allow any activities on the Premises that adversely impact the
natural resources without written authorization.
2.05 Habitat Conservation Plan. The Premises are located within an area that is subject to
the State of Washington, Department of Natural Resources Habitat Conservation Plan (HCP) and
amendments thereto adopted in connection with Incidental Take Permit No. PRT-812521 as
supplemented by Permit No. 1168, and the Implementation Agreement for the HCP dated
January 30, 1997, and any amendments to said permits and agreement (Collectively "ITP"),
which are incorporated herein by this reference. As long as the HCP remains in effect, Lessee
and all persons acting under Lessee shall comply with the ITP and notify State if new locations
of permit species are identified or upon locating dead, injured, or sick individual species as more
specifically set forth in Exhibit 1 C while operating on the Premises. State shall have the right to
modify these terms and conditions from time to time to comply with the ITP, the Endangered
Species Act, the implementing regulations, and amendments thereto, or the requirements of the
federal agencies administering these laws. In conjunction with any Plan of Use and
Development submitted to State under Section 2.02 of this Lease, Lessee shall provide any
documentation, analysis, or other information that may be required by the United States
Department of the Interior, Fish and Wildlife Service, that is deemed necessary to maintain
compliance with the ITP. In the event State is required to provide any information about the
Permitted Uses in order to comply with the ITP, Lessee shall cooperate and promptly provide all
information required in the time requested by State.
SECTION 3 PAYMENT
3.01 Consideration. Under the authority of, and in compliance with Washington Laws of
2008, Ch. 328, Section 3042, the State of Washington, Department of Natural Resources Trust
Land Transfer Program has been authorized to enter into this Lease following deposit of a one
time, lump sum payment, representing the fair market value of the Lease as appraised, of NINE
HUNDRED EIGHTY-FIVE THOUSAND DOLLARS ($985,000), from the State Building
Construction Account to the Common School Construction Account ("Lease Payment") if this
Lease is executed on or before June 30, 2009, receipt of which is hereby acknowledged.
Lessee's adherence to, compliance with, and performance under, the provisions of this Lease are
necessary consideration to support Lessee's rights under this Lease. No additional consideration
is required from Lessee during the initial fifty (50) year lease term.
3.02 Option to Purchase the Remainder of the Fee Interest. At any time during this Lease,
Lessee may request to purchase the residual value of the fee interest by submitting an offer to
accept a land transfer that contains the terms and conditions of the offer. If State determines the
offer reflects the fair market value of the residual fee interest at the time submitted, then State
may accept the offer if on terms and conditions acceptable to State, pending approval of the
Board of Natural Resources. State, upon payment in advance by Lessee of appraisal costs, will
obtain a current appraisal which will determine the balance owed State to buy out the residual
value of the fee interest and acquire all interest in the property identified in Exhibit IA. To be
acceptable to State, the appraisal must reflect a current higher and better use that is equal to, or
exceeds, the use as originally appraised. The terms and conditions of the offer must include a
Trust Land Transfer Lease 4 of 22 Lease No. 60-082210
deed restriction that restricts the Permitted Use of the Property to fish and wildlife habitat, open
space, or recreation use in conformance with Washington Laws of 2008, Ch.328, Section 3042
and other applicable law, and require that the Premises no longer be used for any other purposes.
Said deed restriction shall be binding on the purchaser and all successors and assigns. The offer
must be contingent upon proper authorization, be in accordance with applicable law, contain
adequate reservations for minerals and other valuable materials, and be in a form satisfactory to
State.
3.03 Costs Resulting from Use or Changes in Use. All costs and fees associated with a
change in a use or development of the Premises, including but not limited to permits, licenses,
construction, or reconstruction shall be the sole responsibility of Lessee. In addition, Lessee
shall pay all costs and fees incurred by State which are associated with any change in use or
review or monitoring of any development requested by Lessee and authorized by State. Costs
and fees may include, but are not limited to, appraisals, surveys, staff time, and other similar
costs.
SECTION 4 RESERVATIONS
4.01 Compliance. State shall have access to the Premises at all reasonable times to determine
and secure compliance with this Lease. Failure to inspect or enforce compliance shall not be
construed as a waiver of State's right to declare a breach, nor relieve Lessee of any liability to
State for any breach of the terms, conditions, or requirements of this Lease.
4.02 Access. State reserves the right to grant easements on the Premises that do not materially
interfere with Lessee's use of the Premises. The easement applicant may be required to remedy
any damages to the Premises. Lessee's Plan of Use and Development and placement of
improvements must be such that access to State's adjacent ownership, if any, will not be
impaired.
4.03 Resource Disposal. Mineral rights and other valuable materials including timber, rock,
sand and gravel, shall continue to be managed by and be the property of State and no timber sale
will proceed that would be in contravention of applicable state land management plans. In
connection with Lessee's submission of a Plan of Use and Development pursuant to Section
2.02, and in the event a timber sale is approved for the Premises that is consistent with the
Lessee's use of the Premises, State shall be entitled to the revenue from any such sale unless
otherwise agreed and approved by the Board of Natural Resources. State shall distribute any
revenue accruing from resource disposal to the appropriate trust, as presently specified at
Chapter 79.64 RCW, or as may hereafter be designated by the Legislature.
SECTION 5 ASSESSMENTS, TAXES, INSURANCE
5.01 Assessments. Lessee shall pay all assessments that may be charged against the Premises.
Lessee obligations under this subsection are not limited to assessments relating to the
encumbrances (if any) listed in Exhibit I of this Lease, but extend to all assessments that may
Trust Land Transfer Lease 5 of 22 Lease No. 60-082210
be charged against the Premises, including, but not limited to, forest patrol assessments, weed
assessments, watershed protection district assessments, conservation district assessments, storm
water runoff assessments, and local improvement district assessments.
5.02 Utilities. Lessee shall be liable for all electrical power, water, sewer and other utility
charges or expenses, including power minimums and utility disconnect charges incurred prior to,
or following, termination or expiration of this Lease.
5.03 Taxes. Lessee shall pay leasehold excise tax if required by Washington State statute.
Lessee shall pay all federal, state and local taxes including, but not limited to, personal property
tax and excise tax, if any, that may be charged against the Lease and improvements located on
the Premises. If State must pay any assessments, taxes, penalties or interest because of Lessee's
failure to pay such assessments, taxes, penalties or interest, Lessee shall immediately reimburse
State for such expenditures and the obligation shall accrue interest until paid.
5.04 Insurance. Lessee shall, at all times during the term of this Lease at its cost and expense,
buy and maintain insurance of the types and amounts listed below. Failure to buy and maintain
the required insurance may result in the termination of this Lease, at State's option.
All insurance and surety bonds should be issued by companies admitted to do business within the
State of Washington and have a rating of A-, Class VII or better in the most recently published
edition of Best's Reports. Any exception shall be reviewed and approved by State's risk
manager before this Lease is accepted. If an insurer is not admitted, all insurance policies and
procedures for issuing the insurance policies must comply with Chapter 48.15 RCW and 284-15
WAC.
State shall be provided written notice before cancellation or non -renewal of any insurance
referred to therein, in accord with the following specifications:
a. Insurers subject to Chapter 48.18 RCW (admitted and regulated by the Insurance
Commissioner): The insurer shall give State forty-five (45) days advance notice
of cancellation or non -renewal. If cancellation is due to non-payment of
premium, State shall be given ten (10) days advance notice of cancellation.
b. Insurers subject to Chapter 48.15 RCW (surplus lines): State shall be given
twenty (20) days advance notice of cancellation. If cancellation is due to non-
payment of premium, State shall be given ten (10) days advance notice of
cancellation.
Before starting work, Lessee shall furnish State with a certificate(s) of insurance, executed by a
duly authorized representative of each insurer, showing compliance with the insurance
requirements specified in the Lease and, if requested, copies of policies to State. The certificate
of insurance shall reference the "State of Washington, Department of Natural Resources", and
the Lease number, found on the front page and footer of this Lease.
Lessee shall include all contractors and subcontractors as insured under all required insurance
Trust Land Transfer Lease 6 of 22 Lease No. 60-082210
policies, or shall furnish separate certificates of insurance and endorsements for each contractor
and subcontractor. Contractors and subcontractors must comply fully with all insurance
requirements stated herein. Failure of contractors and subcontractors to comply with insurance
requirements does not limit Lessee's liability or responsibility.
The "State of Washington, Department of Natural Resources", its elected and appointed officials,
agents and employees shall be named as an additional insured on all general liability, excess,
umbrella, and property insurance policies.
All insurance provided in compliance with this Lease shall be primary as to any other insurance
or self-insurance programs afforded to or maintained by State.
Lessee waives all rights against State for recovery of damages to the extent these damages are
covered by general liability or umbrella insurance maintained pursuant to this Lease.
If Lessee is self -insured, evidence of its status as a self -insured entity shall be provided to State.
If requested by State, Lessee must describe its financial condition and the self -insured funding
mechanism.
By requiring insurance herein, State does not represent that coverage and limits will be adequate
to protect Lessee and such coverage and limits shall not limit Lessee's liability under the
indemnities and reimbursements granted to State in this Lease.
The limits of insurance, which may be increased by State, as deemed necessary, shall not be less
than as follows:
Commercial General Liability Insurance.
Lessee shall maintain Commercial General Liability (CGL) insurance covering claims for bodily
injury, personal injury, or property damage arising on the Premises and/or out of Lessee's
operations and, if necessary, commercial umbrella insurance with a limit of not less than
$1,000,000 per each occurrence. If such CGL insurance contains aggregate limits, the General
Aggregate limit shall be at least twice the "each occurrence" limit. CGL insurance shall have a
products -completed operations aggregate limit of at least two times the "each occurrence" limit.
CGL insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01
(or a substitute form providing equivalent coverage). All insurance shall cover liability arising
out of Premises, operations, independent contractors, products completed operations, personal
injury and advertising injury, and liability assumed under an insured contract (including the tort
liability of another party assumed in a business contract), and contain separation of insured
(cross liability) condition.
Employer's Liability"Stop Gap" Insurance.
Lessee shall buy employers liability insurance, and, if necessary, commercial umbrella liability
insurance with limits not less than $1,000,000 each accident for bodily injury by accident or
$1,000,000 each employee for bodily injury by disease.
Trust Land Transfer Lease 7 of 22 Lease No. 60-082210
Workers' Compensation Coverage.
Lessee shall comply with all State of Washington workers' compensation statutes and
regulations. Workers' compensation coverage shall be provided for all employees of Lessee and
employees of any contractor, subcontractor or sub -subcontractor. Coverage shall include bodily
injury (including death) by accident or disease, which exists out of or in connection with the
performance of this Lease. Except as prohibited by law, Lessee waives all rights of subrogation
against State for recovery of damages to the extent they are covered by workers' compensation,
employer's liability, commercial general liability, or commercial umbrella liability insurance.
If Lessee, contractor, subcontractor or sub -subcontractor fails to comply with all State of
Washington workers' compensation statutes and regulations and State incurs fines or is required
by law to provide benefits to or obtain coverage for such employees, Lessee shall indemnify
State. Indemnity shall include all fines, payment of benefits to Lessee, contractor or
subcontractor employees, or their heirs or legal representatives, and the cost of effecting
coverage on behalf of such employees.
Business Auto Policy.
Lessee shall maintain Business Auto Policy (BAP) liability and, if necessary, commercial
umbrella liability insurance with a limit not less than $1,000,000 per accident. Such insurance
shall cover liability arising out of "Any Auto." BAP coverage shall be written on ISO form CA
00 01, or substitute liability form providing equivalent coverage. If necessary, the policy shall be
endorsed to provide contractual liability coverage and cover a "covered pollution cost or
expense" as provided in the 1990 or later editions of CA 00 01. Lessee waives all rights against
State for the recovery of damages to the extent they are covered by BAP liability or commercial
umbrella liability insurance.
SECTION 6 MANAGEMENT
6.01 Weed Control. Lessee shall control all weeds, including but not limited to county, state
or federally listed noxious weeds, on all lands under this Lease. Lessee shall be responsible for,
or shall immediately reimburse State, any weed control cost incurred as a result of Lessee's
failure to control weeds on said Premises.
6.02 Deleterious, Hazardous, Toxic, or Harmful Substances.
I . Deleterious Material. Lessee shall not make, or suffer to be made, any filling in
of the Premises or any deposit of rock, earth, ballast, refuse, garbage, waste
matter, chemical, biological or other wastes, hydrocarbons, any other pollutants,
or other matter within or upon the Premises, except as approved in writing by
State. If Lessee fails to remove all non -approved fill material, refuse, garbage,
wastes or any other of the above materials from the Premises, Lessee agrees that
State may, but is not obligated to, remove such materials and charge Lessee for
the cost of removal and disposal.
Trust Land Transfer Lease 8 of 22 Lease No. 60-082210
2. Hazardous, Toxic, or Harmful Substances.
a. Lessee shall not keep on or about the Premises, any substances now or
hereinafter designated as or containing components now or hereinafter
designated as hazardous, toxic, dangerous, or harmful, and/or which are
subject to regulation as hazardous, toxic, dangerous, or harmful by any
federal, state or local law, regulation, statute or ordinance (hereinafter
collectively referred to as "Hazardous Substances") unless such are
necessary to carry out Lessee's Permitted Use under Subsection 2.01 and
unless Lessee fully complies with all federal, state and local laws,
regulations, statutes, and ordinances, now in existence or as subsequently
enacted or amended.
b. Lessee shall:
(1) Immediately notify State of (i) all spills or releases of any
Hazardous Substance affecting the Premises, (ii) all failures to
comply with any federal, state, or local law, regulation or
ordinance, as now enacted or as subsequently enacted or amended,
(iii) all inspections of the Premises by, or any correspondence,
orders, citations, or notifications from any regulatory entity
concerning Hazardous Substances affecting the Premises, (iv) all
regulatory orders or fines or all response or interim cleanup actions
taken by or proposed to be taken by any government entity or
private party concerning the Premises; and
(2) On request, provide copies to State of any and all correspondence,
pleadings, and/or reports received by or required of Lessee or
issued or written by Lessee or on Lessee's behalf with respect to
the use, presence, transportation or generation of Hazardous
Substances related to the Premises.
Lessee shall be fully and completely liable to State, and shall indemnify,
defend, and hold harmless State and its agencies, employees, officers, and
agents with respect to any and all damages, costs, fees (including
attorneys' fees and costs), penalties (civil and criminal), and cleanup costs
assessed against or imposed as a result of Lessee's use, disposal,
transportation, generation and/or sale of Hazardous Substances or that of
Lessee's employees, agents, assigns, lessees, contractors, subcontractors,
licensees or invitees, and for any breach of this subsection.
6.03 Hazardous Conditions. Lessee shall immediately remedy hazardous conditions, and
exercise due diligence in notifying State and anyone at risk of harm.
6.04 No Waste. Lessee shall not commit or allow any waste of the Premises.
Trust Land Transfer Lease 9 of 22 Lease No. 60-082210
6.05 Condition of Premises at End of Lease. Prior to vacating the Premises, Lessee shall
leave the Premises and all improvements thereon to which State has elected to claim title in the
state of repair and cleanliness required to be maintained by Lessee during the term of this Lease,
and shall peaceably and quietly surrender the same to State.
SECTION 7 SUBLEASES AND ASSIGNMENTS
7.01 Subleases. The Premises, in whole or in part, and the appurtenances thereon shall not be
subleased without prior written approval from State, which approval shall be in State's sole
discretion and only if consistent with state trust land status and the Permitted Uses. If subleased,
Lessee shall remain obligated and responsible for all actions on the Premises, including
compliance with all provisions contained in this Lease. Subleases to public agencies as defined
by RCW 79.17.200 (1) or any nonprofit nature conservancy corporation or nonprofit historic
preservation corporation as defined by RCW 64.04.130, if for conserving for open space
purposes, are deemed consistent with state trust land status.
7.02 Assignment. Lessee shall not hypothecate, mortgage, assign, encumber, transfer, or
otherwise alienate this Lease, or any interest therein, or engage in any other transaction which
has the effect of transferring or affecting the right of enjoyment of the Premises, without the
prior written approval of State, which approval shall be in State's sole discretion and if consistent
with state trust land status and the Permitted Uses. Assignments to public agencies as defined by
RCW 79.17.200 (1) or any nonprofit nature conservancy corporation or nonprofit historic
preservation corporation as defined by RCW 64.04.130, if for conserving for open space
purposes, are deemed consistent with state trust land status.
7.03 Assignee/Transferee Obligations. Each permitted assignee, or transferee of Lessee
shall assume and be deemed to have assumed all obligations of Lessee under this Lease.
Notwithstanding any such assignment or transfer, Lessee shall be and remains jointly and
severally liable with the assignee or transferee for all obligations under this Lease, unless
released, in writing, by State.
SECTION 8 IMPROVEMENTS
8.01 Authorized Improvements. No improvement shall be placed on the Premises without
the prior written consent of State and shall be in conformance with any approved Plan of Use and
Development submitted to State under Section 2. Authorized improvements must be listed in
Exhibit 2 or an amendment thereto, or contained in a written Letter of Authorization issued by
State. Unauthorized improvements shall either be: removed by Lessee without damage to the
Premises, removed by State at Lessee's expense, or become the property of State, at State's
option.
All improvements currently on the Premises belong to State except those authorized
improvements, both of which, if any, are listed in Exhibit 2. Exhibit 2 may be supplemented
with a Letter of Authorization issued by State, for the purpose of authorizing additional
Trust Land Transfer Lease 10 of 22 Lease No. 60-082210
improvements to the Premises during the term of this Lease. Letters of Authorization shall be
cumulative and become addenda to Exhibit 2 when determining the sum of all authorized
improvements.
8.02 Disposition of Authorized Improvements. Upon the expiration or termination of this
Lease, all authorized improvements shall belong to State as provided in RCW 79.13.050 without
compensation to Lessee, or, at the election of State, Lessee shall remove the improvements from
the Premises at Lessee's sole cost, and the affected portion of the Premises restored to its pre -
improved and natural condition. In the event State elects to have the improvements removed and
Lessee fails to remove the improvements within ninety (90) days, State may have the
improvements removed and the area restored at Lessee's expense.
8.03 Removal of Improvements during Lease. During the term of this Lease, authorized
improvements owned by Lessee may be removed by Lessee by submitting a general plan for
removal of authorized improvements and restoration of the Premises. State will review that plan
and, if acceptable, issue written approval. Lessee shall comply with the agreed upon terms of the
approved plan. Lessee shall be liable for any and all costs and/or fees and any and all damage to
the Premises or any improvement belonging to State resulting from such removal.
8.04 State's Repairs. State shall not be required or obligated to make any repairs, alterations,
maintenance, replacements, or repairs in, on, or about the Premises, or any part thereof, during
the term of this Lease.
8.05 Lessee's Repairs, Alteration, and Maintenance. Lessee shall, at its sole cost and
expense, keep and maintain the Premises and all improvements thereon and all facilities
appurtenant thereto (regardless of ownership) in good order and repair and safe condition for the
conduct of any activities or enterprises carried out on the Premises pursuant to this Lease, and
keep and maintain the whole of the Premises, including all improvements in a clean, sanitary and
attractive condition. Lessee shall maintain and repair State-owned improvements at Lessee's
own expense.
SECTION 9 ROADS AND ROAD MAINTENANCE
9.01 Roads Across Premises. Lessee is authorized, subject to an approved Plan of Use and
Development in accordance with Section 2, to use existing roads on the Premises needed for
Permitted Uses under this Lease. Lessee may, with written approval of State, construct
additional roads needed on the Premises, in accordance with Section 2 of this Lease and subject
to any limitations related to the ITP as determined by State in State's sole discretion.
Construction and maintenance activities shall meet or exceed Forest Practices Board standards
(Chapter 222-24 WAC) and be in conformance with the ITP. Lessee shall comply with the terms
set forth herein when using the roads.
9.02 Access to Premises. The property may be legally accessed by county and/or state rights -
of -way. Lessee is responsible for determining the appropriate legal access route that serves the
Permitted Use. Should the Lessee need alternate access, Lessee must also provide for access by
Trust Land Transfer Lease 11 of 22 Lease No. 60-082210
State to exercise its rights under the Lease. Lessee shall submit to State any agreements intended
to obtain and provide legal access to the Premises for State's review and approval prior to entry,
and State's consent may not be unreasonably withheld proposed that State may withhold consent
for any additional access that could affect State's future compliance with the ITP. Lessee is
responsible for acquisition and construction costs that may be needed to develop the desired
access route.
9.03 Term. The rights granted in this section shall last only until this Lease expires or is
terminated as provided herein unless otherwise authorized by State.
9.04 Road Repair. Lessee shall repair or cause to be repaired at its sole cost and expense
damage to a road(s) occasioned by it which is in excess of that which it would cause through
normal and prudent usage of said road(s). Within fifteen (15) days of the damage, Lessee shall
meet with State and provide a plan for the repairs.
9.05 Road Maintenance. The cost of road maintenance and resurfacing shall be borne by
Lessee unless associated with State's use of the Premises. State and Lessee acknowledge that
Lessee may make the roads available for public use to carry out the Permitted Uses and Lessee
accepts all cost and liability associated with any such public use. State shall not be required to
perform maintenance and resurfacing work unless it can be established that such work is needed
as a direct result of State's use of any roads on the Premises. Lessee hereby releases, discharges,
and agrees to defend, indemnify and hold State harmless for any and all claims, damages,
liabilities, and causes of action which may arise as a result of the Permitted Uses or Lessee's use
and control of the Premises. This indemnity is not intended to limit the scope or effectiveness of
the indemnity found in Section 11.01, but shall be in addition to said indemnity.
9.06 Improvements. Lessee shall construct no road improvements without the prior written
consent of State, which shall not be unreasonably withheld provided that State may withhold
consent for any road improvements that could affect State's future compliance with the ITP.
Unless the parties agree in writing to share the cost of improvements, improvements shall be at
the sole expense of the improver. Any improvements to road areas shall become property of
State upon expiration or termination of the Lease.
9.07 Road Fee. Lessee shall pay any road use or maintenance fees, including but not limited
to the Access Road Revolving Fund fees established by State.
9.08 Insurance. The provisions under Subsection 5.04 shall apply to Lessee's use of and to
those authorized by Lessee to use the roads and easements authorized herein.
SECTION 10 DEFAULT AND REMEDIES
10.01 Nonwaiver. Waiver by State of strict performance of any provision of this Lease shall
not be a waiver of, nor prejudice State's right to require strict performance of the same provision
in the future or of any other provision. The acceptance of performance, rent, or any other sum
owing, by State following a breach by Lessee of any provision of this Lease shall not constitute a
Trust Land Transfer Lease 12 of 22 Lease No. 60-082210
waiver of any right of State with respect to such breach and State shall be deemed to have
waived any right hereunder only if State shall have expressly done so in writing.
10.02 Attorney Fees and Venue. Each party shall be responsible for their own attorney fees
and court costs in the event of a dispute arising out of this agreement. Venue for resolving such
disputes shall be in Thurston County Superior Court of Washington.
10.03 Notices. Any notice given under this Lease shall be deemed received when delivered by
hand or five (5) days after deposit in the United States mail with first-class postage affixed,
addressed as noted below. Changes of address shall immediately be given in accordance with
this subsection. Any notice or missive given under this Lease shall be sent:
To State:
Department of Natural Resources
Olympic Region
Product Sales & Leasing
411 Tillicum Lane
Forks, WA 98331
To Lessee:
Jefferson County
Office of the County Administrator
1820 Jefferson Street
PO Box 1220
Port Townsend, WA 98368
10.04 Default. If Lessee breaches or defaults on any undertaking, promise or performance
called for herein, State may cancel this Lease after Lessee has been given thirty (30) days notice
of the breach or default and such breach or default has not been corrected within such time.
Upon such cancellation, all improvements on the Premises shall be forfeited and become the
property of State subject only to any previously approved waiver of interest or security interest.
State may seek damages for any and all violations or defaults with or without canceling this
Lease. In the event State deems the breach or default to constitute a threat to safety, life, or
property it may elect to intervene immediately and enter the Premises, without notice, to remedy
the breach or default and Lessee hereby agrees to repay State for all costs in remedying the
breach or default upon demand, together with interest thereon from the date of expenditure at the
rate set forth in this Lease. Alternatively, State may require Lessee to act immediately to remedy
the breach or default, should State deem it a threat to safety, life, or property.
10.05 Survival. All obligations of Lessee to be performed prior to the expiration or earlier
termination shall not cease upon the termination or expiration of this Lease, and shall continue as
obligations until fully performed. All clauses of this Lease, which require performance beyond
the termination or expiration date, shall survive the termination or expiration date of this Lease.
However, upon expiration or earlier termination of this Lease, the rights of Lessee and of all
Trust Land Transfer Lease 13 of 22 Lease No. 60-082210
persons, firms, corporations, and entities claiming under Lessee in and to the Premises and all
improvements thereon, unless specified otherwise in this Lease, shall cease.
10.06 State's Right to Cure Defaults. If Lessee fails to perform and is in default of any
undertaking or promise contained herein, including those set forth in any Plan of Use and
Development, State shall have the option, but is not obligated, to make such performance after
giving ten (10) days written notice to Lessee. State's costs and expense to correct Lessee's
failure to perform shall be reimbursed by Lessee and shall be immediately due and payable,
together with interest accruing from the date such cost or expense is incurred.
10.07 Remedies Cumulative. The specified remedies to which State may resort under the
terms of this Lease are cumulative and are not intended to be exclusive of any other remedies or
means of redress to which State may lawfully be entitled in case of any breach or threatened
breach by Lessee of any provision of this Lease.
SECTION 11 GENERAL PROVISIONS
11.01 Indemnity (Assumption of Liability). To the fullest extent permitted by law, Lessee
shall indemnify, defend and hold harmless State, and all officials, agents and employees of State,
from and against all claims arising out of or resulting from the performance of this Lease. A
"claim" as used in this Lease means any financial loss, claim, suit, action, damage, or expense,
including but not limited to attorneys' fees, attributable for bodily injury, sickness, disease or
death, or injury to or destruction of tangible property including loss of use resulting therefrom.
Lessee's obligation to indemnify, defend, and hold harmless includes any claim by Lessee's
agents, sublessees, employees, representatives, invitees, licensees, permittees, contractors or any
subcontractor or their employees, and any other persons entering the Premises pursuant to the
Permitted Uses. Lessee expressly agrees to indemnify, defend, and hold harmless State for any
claim arising out of or incident to Lessee's, sublessee's, any contractor's or subcontractor's
performance or failure to perform a contract. Lessee's obligation to indemnify, defend, and hold
harmless State shall not be eliminated or reduced by any actual or alleged concurrent negligence
of State or its agents, employees and officials. Lessee waives its immunity under Title 51 RCW
to the extent it is required to indemnify, defend and hold harmless State and its officials, agents
or employees.
11.02 No Partnership. State is not a partner nor a joint venturer with Lessee in connection
with the activities conducted and business carried on under this Lease, and State shall have no
obligation with respect to Lessee's debts or other liabilities.
11.03 Authority
State's Authority. This Lease is entered into by State pursuant to the authority granted under
Washington Laws of 2008, Ch. 328, Section 3042, by statute and the Constitution of the State of
Washington, and the State's Enabling Act. The terms and conditions hereof are subject to such
statutory and constitutional provisions as may be now in effect and such provisions which do not
impair the contractual rights of Lessee under this Lease that may lawfully be enacted subsequent
to the date of this Lease provided that State may interfere with Lessee's contractual expectations
Trust Land Transfer Lease 14 of 22 Lease No. 60-082210
to the extent required by laws subsequently enacted that relate to State's trust responsibilities.
Lessee's Authority. By signing this Lease, Lessee represents that Lessee is authorized to enter
this Lease and that Lessee's representative has been authorized to execute this Lease on Lessee's
behalf. Prior to executing this Lease, Lessee shall provide State with a resolution adopted by
Lessee's governing body evidencing authorization to enter this Lease.
11.04 Preservation of Markers. Any legal land subdivision survey corners, reference points
or monuments are to be preserved. If such are destroyed or disturbed, State shall be notified
immediately and prior to re-establishment. Upon approval of State, they shall be re-established
by a licensed land surveyor in accordance with the United States General Land Office standards
at Lessee's expense. Corners and/or reference points or monuments that must necessarily be
disturbed or destroyed in the process of carrying out the operations allowed by this Lease must
be adequately referenced and/or replaced in accordance with Chapter 58.09 RCW. Such
references and replacements must be approved in writing by State prior to removal of said
corners, reference points or monuments.
11.05 Condemnation. If all of the Premises are taken by any public authority under the power
of eminent domain, this Lease shall terminate as of the date possession is taken by said public
authority pursuant to such condemnation. If any part of the Premises is so taken and, in the
opinion of Lessee, it is not feasible to continue this Lease, then Lessee may terminate the Lease.
Such termination shall be made by notice to State given not later than thirty (30) days after
possession is so taken, the termination to be effective as of the later of thirty (30) days after said
notice or the date possession is so taken. No refunds or prorations on sums paid or due will be
made. All damages awarded for the taking or damaging of all or any part of the Premises shall
belong to and become the property of State, and Lessee hereby disclaims and assigns to State any
and all claims to such award.
State will not claim any interest in any award for personal property belonging to Lessee or for
Authorized Improvements then belonging to Lessee. State will not claim a share of any award
made to Lessee for moving expenses.
Lessee shall not exercise any powers of eminent domain that Lessee might otherwise be entitled
to use against State or the Premises, unless Lessee calculates the fair market value of the
Premises absent the encumbrance of this Lease.
11.06 Time of Essence. Time is expressly declared to be of the essence of this Lease and each
and every covenant of Lessee hereunder. This Lease shall not be valid unless mutually executed
on or before June 30, 2009, unless otherwise approved by the Legislature.
11.07 Lease Changes and Additions. Any changes or additions to this Lease or the attached
exhibits shall be made in writing, executed by the parties hereto, and neither State nor Lessee
shall be bound by verbal or implied agreements.
11.08 Entire Agreement. This written Lease or its successor or replacement contains the
entire agreement of the parties hereto with respect to the matters covered hereby, and no other
agreement, statement or promise made by any party hereto, or to any employee, officer or agent
Trust Land Transfer Lease 15 of 22 Lease No. 60-082210
of any party hereto, which is not contained herein, shall be binding or valid.
11.09 Invalidity. If any term or provision of this Lease or the application thereof to any person
or circumstance shall to any extent prove to be invalid, unenforceable, void, or illegal, the
remainder of this Lease, or the application of such term or provision to persons or circumstances
other than those as to which it is invalid or unenforceable, shall be not affected thereby, and each
term and provision of this Lease shall be valid and be enforced as written to the fullest extent
permitted by law.
11.10 Discrimination. Lessee shall not conduct or suffer any business or activity upon the
Premises which unlawfully discriminates against any person on the basis of race, color, creed,
religion, sex, age, or physical or mental handicap.
11.11 Exhibits. Any exhibit attached hereto shall be deemed apart of this agreement and
incorporated herein by reference.
Signed this day of , 20_
JEFFERSON COUNTY
Signature
Printed Name
Title
Signed this day of , 20_
STATE OF WASHINGTON
DEPARTMENT OF NATURAL RESOURCES
PETER GOLDMARK
Commissioner of Public Lands
Approved as to Form,
By Pamela W. Krueger,
Assistant Attorney General
Trust Land Transfer Lease 16 of 22 Lease No. 60-082210
LESSEE ACKNOWLEDGMENT
STATE OF WASHINGTON )
) ss
COUNTY OF JEFFERSON )
On this day personally appeared before me , to me known
to be the that executed the foregoing instrument and
acknowledged the said instrument to be the free and voluntary act and deed of said
for the uses and purposes therein mentioned, and on oath stated that he
was authorized to execute the said instrument.
WITNESS my hand and official seal this day of , 20
Notary Public in and for the State of
Washington, residing at
My appointment expires
Trust Land Transfer Lease 17 of 22 Lease No. 60-082210
COMMISSIONER OF PUBLIC LANDS
STATE OF WASHINGTON )
) ss.
COUNTY OF THURSTON )
On this day of , 20 , personally appeared before me Peter
Goldmark, the duly elected, qualified and acting Commissioner of Public Lands, State of
Washington, who executed the within and foregoing instrument on behalf of the State of
Washington, and acknowledged the said instrument to be the free and voluntary act and deed of
the State of Washington, for the uses and purposes therein mentioned, and on oath stated that he
was authorized to execute said instrument and that the seal affixed is the official seal of the
Commissioner of Public Lands for the State of Washington.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the day
and year first above written.
Notary Public in and for the State of Washington,
residing at
My appointment expires
Trust Land Transfer Lease 18 of 22 Lease No. 60-082210
EXHIBIT 1A
(As referenced in Introductory)
QUIMPER PENINSULA WEST
TRUST LAND TRANSFER LEASE
Legal Description
The SE 1 /4 of the S W 1 /4 and the S W 1 /4 of the SE 1 A of Section 32, Township 31 North, Range 1
West, Willamette Meridian, Jefferson County, Washington, according to U.S. Government
subdivision procedures,
TOGETHER WITH
Lots 1, 2, 3, 4 and 5 of Block 72 of the Supplementary Plat of Captain Tibbals Lake Park,
according to the plat thereof recorded in Volume 2 of Plats at Page 3, records of Jefferson
County Washington.
Dennis J. Gelvin, PLS (360) 902-1674
Land Description & R/W Specialist
State Land Survey Unit
PO Box 47060
Olympia, WA 98504-7060
Trust Land Transfer Lease 19 of 22 Lease No. 60-082210
EXHIBIT 1B
(As referenced in Introductory)
QUIMPER PENINSULA WEST
TRUST LAND TRANSFER LEASE
Encumbrances
Indefinite Easement granted under Application No. 50-029315, to Pacific Northwest Bell
Telephone Company for buried cable.
Indefinite Easement granted under Application No. 50-CR3161, to Jefferson County for County
Road.
Indefinite Condemnation for Easement granted under Application No. 82-000457, in favor of
Jefferson County.
North Jacob Miller Private Road Trespass granted under Application No. T3-083189, as shown
and described by that Record of Survey recorded September 14, 1995, in Book 17 of Surveys at
Pages 65-69, under Auditor's File No 384739, Jefferson County records.
East Middlepoint Road Trespass granted under Application No. T3-083190, as shown and
described by that Record of Survey recorded September 14, 1995, in Book 17 of Surveys at
Pages 65-69, under Auditor's File No 384739, Jefferson County records.
No other encumbrances of record.
There may be additional encumbrances that presently do not show on the records of the State of
Washington, such as cultural sites or endangered species. Encumbrances change over time.
Lessee is responsible to perform their own due diligence in matters where Lessee needs a
complete and current list of encumbrances.
Trust Land Transfer Lease 20 of 22 Lease No. 60-082210
EXHIBIT 1 C
(As referenced in Section 2.05)
QUIMPER PENINSULA WEST
TRUST LAND TRANSFER LEASE
Habitat Conservation Plan Requirements
Lessee shall immediately notify State of new locations of Permit species covered in the
ITP that are discovered within the leased Premises covered by the HCP, including, but
not limited to: locations of occupied murrelet habitat; spotted owl nest sites; wolves;
grizzly bears; nests, communal roosts, or feeding concentrations of bald eagles; peregrine
falcon nests; Columbian white-tailed deer; Aleutian Canada geese; and Oregon silverspot
butterflies. In all circumstances notification must occur within a twenty-four (24) hour
time period.
2. Upon locating any live, dead, injured, or sick specimens of any listed species covered by
the ITP within the leased Premises, Lessee shall immediately notify State. In all
circumstances notification must occur within a twenty-four (24) hour time period. Lessee
may be required to take certain actions to help State safeguard the well being of any live,
injured or sick specimens of any listed species discovered, until the proper disposition of
such specimens can be determined by State. Lessee may be required to take certain
actions to preserve biological material in the best possible state for handling any dead
specimens.
3. Lessee shall refer to ITP number PRT-812521 (a copy of the ITP is located for reference
in any of State's region offices) and PRT-1168 in all correspondence and reports
concerning Permit activities.
4. All applicable provisions of the ITP and this schedule must be presented and clearly
explained by Lessee to all authorized officers, employees, contractors, or agents of
Lessee conducting authorized activities on the Premises. Any questions Lessee may have
about the ITP should be directed to State.
Lessee shall notify State of any non -timber activity in order to allow State to determine
its obligation to provide information related to non -timber activities to the United States
Department of the Interior, Fish and Wildlife Service and Lessee shall provide any
information required by State that State is required to submit to the United States
Department of the Interior, Fish and Wildlife Service under the ITP, Condition L.
Trust Land Transfer Lease 21 of 22 Lease No. 60-082210
EXHIBIT 2
(As referenced in Section 8.01)
QUIMPER PENINSULA WEST
TRUST LAND TRANSFER LEASE
Authorized Improvements
All improvements currently on the Premises belong to State except:
None.
The following improvements are hereby authorized to be placed by Lessee upon the Premises•
None.
Trust Land Transfer Lease 22 of 22 Lease No. 60-082210
0 f;n UST
c -- LO 19 log
-I)N SY STEWARDSHIP AGREEMENT
Between Jefferson Land Trust ("JLT") and
Jefferson County ("the County")
THIS AGREEMENT is entered into between the Jefferson Land Trust
(hereinafter referred to as JLT), and Jefferson County (hereinafter referred to as the County), for
stewardship activities in support of open space and habitat preservation.
RECITALS
Whereas, JLT's mission is to work with the community to preserve open space
and habitat forever; and
Whereas, Jefferson Land Trust has been working since 1995 to protect the
Quimper Wildlife Corridor as a corridor linking critical habitat areas, in accordance
with the GMA goal of protecting such critical areas; and
Whereas, the Washington Department of Natural Resources has given Jefferson
County the opportunity to enter into 50-year renewable leases through the Trust Land
Transfer program in order to protect the open space and habitat functions of the three
properties described herein;
Now, therefore, the parties to this Agreement agree to the following:
1. TLT Obligations:
JLT hereby agrees to support Jefferson County's willingness to preserve and protect
these lands of important habitat and public open space values as follows:
• By reviewing the condition of the three properties described herein within ninety
(90) days of the date of the execution of the applicable lease between Jefferson
County and the State Department of Natural Resources and reporting their
condition in writing within 150 days of the execution of the applicable lease in
order to create a baseline condition report for that property.
• By periodically (not less than once every twelve months) undertaking the
monitoring the condition of these properties in the same manner as the
monitoring for the baseline condition report and delivering an annual written
monitoring report to the County.
• If cleanup, noxious weed control, or other stewardship activities are needed, JLT
will consult with appropriate Jefferson County staff, and after said consultation
will, to the best of its capacity, address the concerns with the help of community
volunteers. At its option, Jefferson County may assist with these activities.
Stewardship Agreement Between Jefferson County and Jefferson Land Trust
PaLye: 2
• If requested by the County, JLT will post the properties as appropriate with
signage provided by Jefferson County intended to discourage vandalism,
garbage dumping, and resource theft.
• JLT shall immediately notify the County upon discovering any new locations of
permit species, or upon locating any live, dead, injured or sick specimens of any
listed species covered in the Department of Natural Resources' Incidental Take
Permit for the subject properties.
2. Indemnification
Each party to this agreement shall be responsible for its own acts and/or omissions and
those of its officers, employees and agents. No party to this agreement shall be
responsible for the acts and/or omissions of entities or individuals not a party to this
agreement.
The County shall indemnify and hold harmless Jefferson Land Trust from any lawsuit,
action, claim for damages or other dispute arising by and between the County and the
State Department of Natural Resources if that lawsuit, action, claim for damages or
other dispute arises from or is based upon a term or obligation of the County or DNR
found within the real property lease between the County and the DNR.
The County agrees to release and hold harmless, indemnify, and defend JLT, and JLT's
members, directors, officers, employees, agents, and contractors, as well as the personal
representatives, heirs, successors, and assigns of each of them (collectively the
"Indemnified Parties") from and against all liabilities, penalties, costs, losses, damages,
expenses, causes of action, claims, demands, or judgments, including, without
limitation, reasonable attorney's and consultant's fees, arising from or in any way
connected with injury to or the death of any person, or physical damage to any
property, resulting from any act, omission, condition, or other matter related to or
occurring on or about the Leased Property, regardless of cause, unless due solely to the
negligence of any of the Indemnified Parties.
Stewardship Agreement Between Jefferson County and Jefferson Land Trust
Paze: 3
3. Subject Properties:
This Agreement covers each property below, when subject to a lease from the
Washington State Department of Natural Resources to Jefferson County:
Quimper Peninsula East
Portion of Section 33, T31N, R1W
Jefferson County, Washington
Land Description:
Government lot 5 of Section 33, Township 31 North, Range 1 West, Willamette
Meridian, Jefferson County, Washington, EXCEPT the north 330 feet thereof, as shown
and described by that Record of Survey recorded January 11, 1996, in Book 17 of
Surveys at Pages123-128, under Auditor's File No. 387842, Jefferson County records.
APN 101 333 002
Quimper Peninsula West
Portion of Section 321, T31N, R1W
Jefferson County, Washington
Land Description:
The SE1/4 of the SW1/4 and the SW1/4 of the SE1/4 of Section 32, Township 31 North,
Range 1 West, Willamette Meridian, Jefferson County, Washington, according to U.S.
Government subdivision procedures, APN 101 323 004 and 101 324 001
TOGETHER WITH
Lots 1, 2, 3, 4 and 5 of Block 72 of the Supplementary Plat of Captain Tibbals Lake Park,
according to the plat thereof recorded in Volume 2 of Plats at Page 3, records of
Jefferson County Washington. APN 999 007 201
Thorndyke
Portion of Section 4, T27N, R1E, W.M.
Jefferson County, Washington
Land Description:
Government Lot 3 of Section 4, Township 27 North, Range 1 East, Willamette Meridian,
Jefferson County, Washington. APN 721 043 008
Stewardship Agreement Between Jefferson County and Jefferson Land Trust
Paee: 4
4. Term•
This Agreement shall become effective after the execution of the Stewardship
Agreement and the leases of the subject properties between the Washington
Department of Natural Resources and Jefferson County, and shall expire fifty (50) years
from the date the leases were executed.
5. Amendments:
The parties to this Agreement may, through a writing approved and executed by both
parties, amend this Agreement.
Signed this p — day of vN-2 2009.
JEFFERSON COUNTY
David SullivanDate
Chair, Jefferson County Board of Commissioners
JEFFERSON LAND TRUST
--� y ,r-14 AV, kA Y J v� p c-
Owen FairbaA Date
President, Jefferson Land Trust
Approved as to Form:
60 �L
David Alvarez Date
Chief Civil Deputy Prosecutor
ATTEST:
plieatthes Date
Deputy Clerk of the Board
CONTRACT REVIEW FORM
CONTRACT WITH:
CONTRACT FOR:
Jefferson Land Trust
(contractor)
Open Space and Habitat Preservation TERM: 12/31/09
COUNTY DEPARTMENT: County Administrator
For More Information Contact: Philip Morley
Contact Phone #: ext. 3 83
RETURN TO: Erin - BOCC
(Person in Der
RETURN BY: A.S.A.P.
AMOUNT: PROCESS:
Revenue:
Expenditure:
Matching Funds Required:
Source(s) of Matching Funds:
Exempt from Bid Process
Consultant Selection Process
Cooperative Purchase
Competitive Sealed Bid
Small Works Roster
Vendor List Bid
RFP or RFQ
Step 1: REVIEW BY RISK MANAGEMENT
Review by:
Date Reviewed: tl
M APPROVED FORM
Comments:
Returned for revision (See comments)
Step 2: REVIEW BY PROSECUTING ATTORNEY
Review by: LV q
Date Reviewed:
APPROVED AS TO FORM Returned for revision (See comments)
Comm ts.
Step 3: DEPARTMENT MAKES REVISIONS
Have contractor sign appropriate number of originals.
Step 4: SUBMIT TO PROSECUTING ATTORNEY FOR FINAL SIGN OFF
Step 5: SUBMIT TO BOCC FOR APPROVAL
Submit original Contract and Agenda Request Form along with 9 copies of Contract and Review Form.
Place "Sign Here" markers on all places the BOCC needs to sign.
MUST be submitted to BOCC Office by 5 p.m. TUESDAY for the following Monday's agenda.
(This form to stay with contract throughout the contract review process.)
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of Commissioners
FROM: Philip Morley, County Administrator
DATE: June 8, 2009 29
RE: Quimper East, Quimper West and Thorndyke Trust Land Transfer Leases with DNR
and Stewardship Agreement with Jefferson Land Trust
STATEMENT OF ISSUE:
Staff recommends the Board of County Commissioners adopt a Resolution authorizing Chair David
Sullivan to execute the Quimper East, Quimper West, and Thorndyke Trust Land Transfer Leases with the
Washington State Department of Natural Resources. These are 50-year leases, which are fully paid for by a
State appropriation authorized by the Washington State Legislature in the current biennium.
Staff also recommends the Board of County Commissioners pass a Motion authorizing Chair David
Sullivan to execute a Stewardship Agreement with the Jefferson Land Trust for the same three properties
for the duration of the leases with DNR.
ANALYSIS:
The three proposed leases are through the DNR's Trust Land Transfer Program. The DNR, over time, has
consolidated trust lands to improve economic returns through land sales, exchanges, and acquisitions.
Low-income producing properties have been sold and replaced with properties that can be managed for
greater returns for trust beneficiaries. Some state trust lands have important social or ecological values that
are desirable to be managed for a special use or feature of importance rather than for economic returns. The
Trust Land Transfer (TLT) Program presents an opportunity to retain these special lands in public
ownership while maintaining and improving economic returns to DNR's trust beneficiaries.
The Legislature reviews DNR lands proposed to be transferred to other public entities, determines the
makeup of the final package, and sets an appropriation funding level. If approved, the transfer package is
authorized and funded by the State as a section in the State's Capital Budget Bill. Legislation generally
provides for the direct funding of properties.
Around 2006, the Department of Community Development learned of the opportunity under DNR's Trust
Land Transfer Program for counties to propose DNR lands for transfer to county ownership/management.
At the time, we understood that the fee simple transfer was the most likely option, and we asked long-time
(and now retired) DNR forester Mike Cronin for advice as to which properties in Jefferson County might
be good candidates for transfer because of their habitat value, potential value to the community, and also
properties that were relatively expensive or awkward for the DNR to manage.
Mr. Cronin pointed out three: "Quimper Peninsula East" and "Quimper Peninsula West" near Port
Townsend, and "Thorndyke" near the Thorndyke drainage. All three properties are currently used for
passive recreation - mostly for walking on the Quimper sites. The Thomdyke site has an especially
beautiful forest of mature second growth and access to public tidelands. The slope there is unstable too.
DNR maps and characterizations of the three parcels are attached to this memo.
DNR accepted the County's suggestion to include the three properties in its transfer program, but rather
than an outright transfer, proposed a 50-year lease arrangement. The State Legislature approved and
funded � INN s prop��iy 1Ist !SS Lite GVS/!-GVV7 vscsaiiiilii� vuuact.
The Jefferson County Board of County Commissioners signed a letter of intent in the fall of 2007. The
Jefferson Land Trust has been supportive of this effort, and both Jefferson Land Tnist and Jefferson County
have been working with DNR during the past two years to develop the leases before you today.
In addition, recognizing Jefferson Coun y's fiscal limitations in managing these additional properties, the
Jefferson Land Trust has offered to provide stewardship services for the three properties, to substantially
reduce potential future costs to the County. A Stewardship Agreement is attached for this purpose.
Finally, it is worthy to note that under the terms of the proposed lease, the County could make a future
request to purchase the residual value of the DNR's fee interest at fair market value, and DNR, at its option,
may or may not agree to the sale.
FISCAL EMIPACT:
There is no lease payment cost to Jefferson County of the three proposed Trust Land Transfer Leases.
Future County financial liability appears to be de minimus.
There is no cost to Jefferson County for the Stewardship Agreement with the Jefferson Land Trust.
RECOMMENDATION:
Adopt a Resolution authorizing Chair David Sullivan to execute the Quimper East, Quimper West, and
Thorndyke Trust Land Transfer Leases with the Washington State Department of Natural Resources.
Pass a Motion authorizing -Chair David Sullivan to execute a Stewardship Agreement with the Jefferson
Land Trust for the same three properties
ATTACHMENTS: DNR Maps and Property Characterizations for the three parcels
REVIEWED BY:
T
County Adm nis for Da
N