HomeMy WebLinkAbout7th & Hendricks/Olympic Community Action Program (OlyCAP) re: Land Option (Ins ex 6-1-21)- 040521 -1 Dryeti
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OPTION TO ENTER INTO PURCHASE AND SALE AGREEMENT
This Option to Enter into Purchase and Sale Agreement(this Option) is entered into as of
the date of the last signature below by Jefferson County, a Washington municipal corporation(the
County) and Olympic Community Action Programs, a Washington non-profit corporation
(OlyCAP).
1. TERMINATION OF 2019 PSA. On September 9, 2019, the parties entered into a Purchase
and Sale Agreement (the 2019 PSA). The September 9, 2019 Purchase and Sale Agreement
was amended by the parties on August 28, 2020. On the execution of the last party to sign this
Option,the 2019 PSA is terminated.
2. PROPERTY.
Common Address None.
Tax Parcel Number 948-323-702
Legal Description Lots 1,2,7 and 8,in Block 237,of the Supplemental Plat of the Eisenbeis
Addition to the City of Port Townsend,as per plat recorded in Volume 2 of Plats,
page 24,records of Jefferson County,Washington;
TOGETHER WITH the West half of vacated Grant Street adjoining,pursuant to
Ordinance#1764.
EXCEPT that portion,if any,lying Southerly of the North 100 feet of said Block
237.
Situate in the Count of Jefferson,State of Washington.
Included Items None.
(no contribution to value)
3. BUYER. The Buyer shall be Olympic Community Action Programs (OlyCAP).
4. SELLER. The Seller shall be Jefferson County (the County).
5. TERMS AND CONDITIONS.The terms and conditions for the sale have been negotiated by
the parties and are set forth in the Real Property Purchase and Sale Agreement, attached as
Exhibit A, including Exhibit 1 (the PSA).
6. EXERCISE OF OPTION.OlyCAP may exercise its option at any time up through the Option
Expiration Date by providing written notice to the County. Upon exercise of the Option, the
parties shall enter into the PSA within 30 days.
7. ASSIGNMENT. Provided the assignment requires compliance with all the terms and
conditions of the PSA,the Option shall be assignable by OlyCAP to another entity(including,
but not limited to, an LLC or LLLP) which is controlled by OlyCAP, without additional
approval by the County.
8. EXCLUSIVITY.The County shall not initiate or carry on negotiations for the sale or lease of
the Property with any other party prior to Closing.
Option to Enter into Purchase and Sale Agreement Page 1 of 5
3/25/2021 11:00 AM
9. OPTION EXPIRATION DATE.This Option expires on December 31,2021,unless OlyCAP
gives notice of its intent to execute the PSA. If OlyCAP gives notice of its intent to execute
the PSA prior to December 31, 2021, then the parties shall execute the PSA in substantially
the same form as in Exhibit A within 30 days and the closing shall occur within 30 days
thereafter. If the parties do not fully execute the PSA within 30 days of OlyCAP's notice of
intent to execute the PSA or there is no closing of the PSA within 30 days thereafter,then this
Option shall expire and be void ab initio.
10. CLOSING DATE; CLOSING AGENT. Closing shall occur within 30 days after the parties
execute the PSA (Closing Date). "Closing" or "Close" shall mean the date on which all
documents required by the PSA are recorded, and the sales proceeds are available for
disbursement. Closing shall occur at First American Title Company, 2424 S. Park Ave., Port
Townsend, WA 98368, (360) 385-1322 (First American Title), which shall act as Closing
Agent,unless the parties agree in writing otherwise.OlyCAP and the County shall deposit with
the Closing Agent all instruments, monies, and other documents reasonably required to
complete the closing of the transaction in accordance with the terms of the PSA.
2. GENERAL PROVISIONS.
a. Notice. Unless otherwise specified in this Option, any notice required or given under the
terms of this Option must be written. Receipt of any notice shall be defined as the earlier
of three (3)business days following the postmark date; or the date the party actually
receives the notice.
Notice to OlyCAP shall be sent to: With a copy to:
Name: Cherish Cronmiller Colette Kostelec
Executive Director Kostelec Law Office
Address: 823 Commerce Loop Address: PO Box 866
Port Townend, WA 98368 Port Townsend, WA 98368
Tel: (360) 385-2571 Tel.: 360-379-6453
Email: cronmiller@olycap.org Email: colette@kostelec-law.com
Brad Britzmann
BJB Law Group
809 W. Riordan Rd., Ste 100 Flagstaff,
Arizona 86001 Phone: (314)401-7030
Fax: (928) 752-0400
brad@bjblawgroup.com
Option to Enter into Purchase and Sale Agreement Page 2 of 5
3/25/2021 11:00 AM
Notice to the County shall be sent to: With a copy to:
Name: Mark McCauley Name: Philip Morley
Director, Central Services County Administrator
Address: P.O. Box 1220 Address: P.O. Box 1220
Tel: (360)385-9135 Tel: (360) 385-9383
Email: mmcauley@co.jefferson.wa.us Email: pmorley@co.jefferson.wa.us
And to:
Name: Philip C. Hunsucker
Chief Civil Deputy Prosecuting Attorney
Address: P.O. Box 1220
Tel: (360) 385-9219
Email: phunsucker@co.jefferson.wa.us
b. Controlling Law.This Option shall be governed by and construed in accordance with
the laws of the United States,the State of Washington, and the County of Jefferson,as if
applied to transactions entered into and to be performed wholly within Jefferson County,
Washington between Jefferson County residents.No party shall argue or assert that any
state law other than Washington law applies to the governance or construction of this
Option.
c. Jurisdiction and Venue. Should either party bring any legal action under this Option,
each party in such action shall bear the cost of its own attorney's fees and court costs.
The venue for any legal action shall be solely in the appropriate state court in Jefferson
County, Washington, subject to the venue provisions for actions against counties in RCW
36.01.050.
d. Integration Clause. This Option and its attachments memorializes the entire agreement
of the parties and contains all its parts,that no party made any representation or promise
that is not contained in this Option and this Option is not based on any inducement,
promise or representation, expressed or implied,which is not contained in this Option,
and this Option supersedes all prior or simultaneous representations,discussions,
negotiations, and agreements,whether written or oral, within the scope of this Option.
e. Time is of the Essence. Time is of the essence as to all terms and conditions of this
Option.
f. Voluntary Sale. OlyCAP may utilize federal funds with respect to the acquisition,
rehabilitation and/or development of the Property. Because federal funds may be so used,
OlyCAP discloses to the County as follows:
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3/25/2021 11:00 AM
i. This sale is voluntary. If the County does not wish to sell,OlyCAP does not have the
power to acquire the property by condemnation or eminent domain.
ii. OlyCAP estimates the fair market value of the Property to be greater than the
purchase price.
(SIGNATURES FOLLOW ON THE NEXT PAGE)
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3/25/2021 11:00 AM
1
IN WITNESS WHEREOF,the parties have entered into this Purchase and Sale
Agreement effective as of the date of the final signature below.
JEFFERSON COUNTY WASHINGTON OLYMPIC COMMUNITY ACTION
PROGRAMS,a Washington non-profit
corporation
Board of County Commissioners
Jefferson County,Washington
Cherish Cronmiller
• r "2021-04-01
T18:08:06.07:00
By: By:
Kate De Chair Date Cherish Cronmiller Date
Executive Director
B ilc
Greg therton,Commissioner Date
By:
Heidi Eisehbour,Commissioner Date
SEAL: y f4
�s .;
ATTEST:
eot 1//512—
Carolyn Ga loway U Date
-Dewy-Clerk of the Board
Approved as to form only:
April 7,2020
Philip C.Hunsucker Date
Chief Civil Deputy Prosecuting Attorney
Option to Enter into Purchase and Sale Agreement Page 5 of 5
3125/2021 11:00 AM
EXHIBIT A
REAL PROPERTY PURCHASE AND SALE AGREEMENT
This REAL PROPERTY PURCHASE AND SALE AGREEMENT("Agreement") is entered into
and effective as of the date of the final signature below,which shall be deemed the date of"mutual
acceptance", between Jefferson County, a Washington municipal corporation (the "County") and
Olympic Community Action Programs, a Washington non-profit corporation ("OlyCAP").
OlyCAP agrees to buy the property identified in Section 1 below(the"Property")and the County
agrees to sell the Property on the following terms and conditions:
1. PROPERTY.
Common Address None.
Tax Parcel Number 948-323-702
Legal Description Lots 1, 2, 7 and 8, in Block 237, of the Supplemental Plat of the
Eisenbeis Addition to the City of Port Townsend, as per plat recorded
in Volume 2 of Plats, page 24, records of Jefferson County,
Washington;
TOGETHER WITH the West half of vacated Grant Street adjoining,
pursuant to Ordinance#1764.
EXCEPT that portion, if any, lying Southerly of the North 100 feet of
said Block 237.
Situate in the Count of Jefferson, State of Washington.
Included Items None.
(no contribution to value)
2. BUYER. The Buyer shall be OlyCAP or its permitted successor or assign.
3. SELLER. The Seller shall be the County.
4. PURCHASE PRICE. The total purchase price for the Property shall be THIRTY-SIX
THOUSAND TWO HUNDRED DOLLARS ($36,200.00), U.S. funds (the "Purchase
Price").
5. CLOSING DATE; CLOSING AGENT. Closing shall occur on within 30 days after the
parties fully execute this Agreement (the "Closing Date"). "Closing" or"Close" shall mean
the date on which all documents required by this Agreement are recorded, and the sales
proceeds are available for disbursement. Closing shall occur at First American Title Company,
2424 S. Park Ave., Port Townsend, WA 98368, (360) 385-1322 ("First American Title"),
which shall act as"Closing Agent", unless the parties agree in writing otherwise. OlyCAP and
the County shall deposit with the Closing Agent all instruments,monies, and other documents
3/31/2021 1:00 PM
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 2 of 15
reasonably required to complete the closing of the transaction in accordance with the terms of
this Agreement.
6. POSSESSION AND OCCUPANCY. OlyCAP shall be entitled to possession and occupancy
of the Property on the Closing Date.
7. ESCROW/CLOSING COSTS. OlyCAP shall pay all closing costs.
8. CONVEYANCE OF TITLE.At Closing,the County shall convey to OlyCAP fee simple title
to the Property by duly executed and acknowledged statutory warranty deed, free and clear of
all defects and encumbrances, except any defects or encumbrances explicitly approved by
OlyCAP.
9. THE PROJECT; 50-YEAR COMMITMENT TO AFFORDABLE HOUSING.
a. -Project Defined. "Project"means construction and operation of a two to four-story multi-
use building with a variety of sizes of residential apartment units, in which the residential
apartment units must be offered for rent to low income households at 60%of area median
income or less. Although OlyCAP currently intends to include an early learning center in
the building, that use is not a required element of the Project and the County's agreement
to this sale is not contingent upon the Property being used for that particular purpose.
b. Minimum Length of the Project. "Minimum Length"of the Project shall be 50 years.
c. Limitation on Use of the Property. OlyCAP shall not use the Property for any other
purposes, except for the Project.
d. County's Interest in Affordable Housing. The County's willingness to convey the
Property to OlyCAP under these terms is based solely on OlyCAP's intent to develop the
Project and OlyCAP's demonstration of the financial viability of the Project.
10. CONTINGENCIES; DUE DILIGENCE; EXTENSION OF CLOSING DATE. Closing
is contingent upon the following events and approvals.OlyCAP agrees to proceed in good faith
and with all deliberate speed to perform required due diligence to meet the contingencies. If
any of the contingencies are not met,upon notice from OlyCAP to the County,this Agreement
shall terminate, and the Parties shall be released from any further obligations under this
Agreement. The Closing Date shall be extended as mutually agreeable to accommodate
OlyCAP's ability to satisfy these contingencies.
a. McCarron Contingency.The Parties acknowledge that in order for the County to convey
the Property to OlyCAP via Statutory Warranty Deed, James and Noreen McCarron(the
McCarrons)must agree to convey a Partial Fulfillment Deed under the existing Real Estate
Contract between the County and the McCarrons dated March 15, 2002 (recorded at
Auditor's File Number 462554). Closing shall be contingent upon the McCarrons'
willingness to do so. OlyCAP shall have sole responsibility for obtaining such approval
from the McCarrons.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 3 of 15
b. Authorized Sale Contingency. The County must be authorized by law to sell the Property
to OlyCAP for the Project at the Purchase Price. The County and OlyCAP shall cooperate
to fulfill all legal requirements for a sale of the Property to OlyCAP for the Project at the
Purchase Price,including but not limited to compliance with RCW 39.33.015 and any other
applicable provision of law.
c. Financing Contingency. Closing shall be contingent upon OlyCAP securing grants and
loans in the amount sufficient for the development of the Project. OlyCAP shall have sole
discretion in determining whether it has obtained sufficient funding.
d. Intended Use Contingency.
i. Closing shall be contingent upon OlyCAP providing to the County financing
agreements that bind OlyCAP and its lenders for the Project and the requirement to
provide residential apartment units for rent to low income households at 60% of
area median income or less for the Minimum Length. OlyCAP shall grant the
County a covenant restricting the use of the Property to such affordable housing for
not less than the Minimum Length (the"Deed Restriction Covenant Agreement").
ii. The financing agreements shall require a housing covenant agreement that secure
this requirement that must be recorded and run with the land.
iii. The financing agreements shall comply with all applicable statutes, regulations for
financing that apply to agreements with the Washington State Department of
Commerce.
iv. Area median income means median income in Jefferson County, Washington,
adjusted for family size, as estimated from time to time by the United States
Department of Housing and Urban Development(HUD). If HUD ceases to provide
such estimates of median income,then median income shall mean such comparable
figure for Jefferson County. Washington published or reported by a federal, state,
or local agency as the County shall select.
v. The County shall be a third-party beneficiary of the housing covenant agreements.
e. Economic Viability Contingency.
i. No later than 60 days before Closing, OlyCAP shall provide to the County an
Economic Viability Analysis that demonstrates to the County's satisfaction that the
Project is financially viable for the Minimum Period. At Closing, the County shall
provide the Closing Agent a written statement that it accepts the Economic
Viability Analysis provided by OlyCAP.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 4 of 15
ii. An "Economic Viability Analysis" is an analysis of the Project, prepared by a
qualified professional economist or financial analyst experienced with affordable
housing, which addresses the economic viability of the Project using generally
accepted accounting principles(GAAP) and includes:
1. The Development Costs of the Project, including:
a. All direct costs, including any Lease costs, site preparation and demolition;
residential construction costs; and, parking costs;
b. All indirect costs, including any city permits and fees; architecture,
engineering, and other types of consulting services; taxes, insurance, legal,
and accounting services; affordable housing requirement incentives;
miscellaneous/other services; and, sales and marketing; and,
c. Financing costs and whether the necessary financial resources are available
for OlyCAP to undertake the Project; and,
2. Appropriate assurance by lending institutions or other financial entities that
OlyCAP has or can reasonably obtain adequate financial support for the Project.
iii. A projected cash flow statement analysis for the Project, including estimates of the
annual net operating income (NOI) of the apartment prototype, which is the
difference between total project income (annual rents) and project expenses,
including operating costs, rent restrictions, and vacancies.
f. Inspection Contingency. Closing shall be contingent upon OlyCAP's subjective
satisfaction the Property is appropriate for the Project. OlyCAP will bear all costs to
evaluate the Property, including but not limited to all studies and investigations, designs,
and consultations with relevant permitting jurisdictions. Buyer and its employees and
agents shall have the right from the date of this Agreement through Closing Date(or earlier
termination of this Agreement)to enter upon the Property or any part thereof at reasonable
times and from time to time upon providing two business days advance notice to the County
and receiving the County's approval, which shall not be unreasonably, withheld,
conditioned or delayed,for the purpose,at Buyer's cost and expense,of making all soil and
other tests or studies under the provisions of this Agreement. If the County does not
respond to the Buyer within the two-business-day period stated above,the County shall be
deemed to have approved Buyer's entry upon the Property;provided,however,Buyer shall
indemnify and hold harmless Seller from and against any mechanic's or other liens or
claims that may be filed or asserted against the Property or Seller by any actions taken by
Buyer in connection with the Property.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 5 of 15
g. Neighboring Property Owner Approval Contingency. The parties are aware of an
agreement dated December 21, 1983, recorded against the Property at Auditor's File
Number 287289, between predecessors of the County, predecessors of the McCarrons,
predecessors of Castle Hill Associates, LLC (CHA), and predecessors of Quality Food
Centers, Inc. (QFC)that runs with the land which creates an easement and right of way in
which the County, the McCarrons, CHA and QFC must give permission for changes to
parking access and ingress and egress. Closing shall be contingent upon OIyCAP receiving
written permission from the neighboring property owners waiving/terminating the
easement/restrictions as applied to the Property. However,this contingency shall not apply
if OlyCAP demonstrates to the County's satisfaction that the Project can be constructed
without violating the easement/restrictions.
h. Title Search Contingency. At Closing, OlyCAP shall be satisfied with the condition of
title for the Property.OlyCAP shall provide the County with a copy of the title commitment
prepared by a title company.
i. Commissioner Approval Contingency. This Agreement is contingent upon written
approval by the Jefferson County Board of Commissioners.
j. Jefferson Healthcare Interlocal Agreement Contingency. The parties acknowledge that
the Property is currently subject to an Interlocal Agreement between the County and
Jefferson County Public Hospital District No. 2 ("Jefferson Healthcare") under which
Jefferson Healthcare is granted a 5-year license to use the Property for employee parking.
The Interlocal Agreement provides for early termination upon 30-days' notice and upon
reimbursement by the County for contributions made by Jefferson Healthcare towards the
paving of the Property(pro-rated based on length of time between paving and termination
vs. initial 5-year license term). This Purchase and Sale Agreement is contingent upon the
County exercising its right to terminate the license with Jefferson Healthcare and the
County making any early termination payment to Jefferson Healthcare.
11. ESCROW AND CLOSING.
a. This Agreement constitutes not only the agreement of purchase and sale between OlyCAP
and the County, but also instructions to the Closing Agent for the consummation of the
purchase and sale through the escrow. The Closing Agent shall not prepare any further
escrow instructions restating or amending this Agreement unless specifically so instructed
by the parties. Subject to the reasonable approval of the parties, the Closing Agent may
include its standard general escrow provisions.
b. As soon as practical after the receipt of this Agreement, the Closing Agent shall ascertain
the effective date of the agreement and advise the parties in writing,on the date ascertained.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 6 of 15
c. The Closing Agent is authorized and instructed to conduct the escrow in accordance with
this Agreement, applicable law and custom and practice of the community in which the
Closing Agent is located, including any reporting requirements of the Internal Revenue
Code.
d. Subject to satisfaction of the contingencies described in this Agreement,the Closing Agent
shall close the escrow by recording a statutory warranty deed, the Deed Restriction
Covenant Agreement, and the other documents required to be recorded, and by disbursing
any funds and documents in accordance with this Agreement.
e. OlyCAP shall pay all of the Closing Agent's charges and OlyCAP shall pay the usual
recording fees and any required documentary transfer taxes. OlyCAP shall pay the
premium for a standard coverage owner's or joint protection policy of title insurance.
f. The Closing Agent shall verify that all of the contingencies described in this Agreement
have been satisfied or waived prior to Closing.
g. If this transaction is terminated for non-satisfaction and non-waiver of a contingency,then
neither of the parties shall thereafter have any liability to the other under this Agreement,
except to the extent of a breach of any affirmative covenant or warranty in this Agreement.
In the event of such termination, the Closing Agent promptly shall refund all funds
deposited by OlyCAP with the Closing Agent, less only the Closing Agent cancellation
fees and costs, all of which shall be OlyCAP's obligation. If this transaction is terminated
as a result of the County's breach of this Agreement then OlyCAP shall be promptly
refunded all funds deposited by OlyCAP with the Closing Agent and the cancellation fees
and costs.
h. The Closing shall occur on the Closing date or as soon thereafter as the escrow is in
condition for Closing;provided,however,that if the Closing does not occur by the Closing
date and said date is not extended by mutual instructions of the parties, a party not then in
default under this Agreement may notify the other party and the Closing Agent, in writing,
that unless the Closing occurs within 5 business days following said notice, the escrow
shall be deemed terminated without further notice or instructions.
i. Except as otherwise provided herein, the termination of escrow shall not relieve or release
either OlyCAP from its obligation to pay the Closing Agent's fees and costs or constitute
a waiver,release or discharge of any breach or default that has occurred in the performance
of the obligations, agreements, covenants or warranties.
12. POSSESSION. Possession of the Property shall be given to OlyCAP at Closing.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 7 of 15
13. SALE IS "AS IS." OlyCAP acknowledges and agrees that the Property is sold and conveyed
to, and accepted by, OlyCAP in an "as is" condition with all faults. OlyCAP acknowledges
that the reduced purchase price of the Property is due, in part,to OlyCAP's willingness to take
title to the Property in an"as is"condition.
14. OLYCAP'S INVESTIGATION.
a. OlyCAP has investigated and has knowledge of operative or proposed governmental laws
and regulations (including, but not limited to, zoning, environmental, and land use laws
and regulations)to which the Property is or may be subject and accepts the Property solely
upon the basis of its review and determination of the applicability and effect of such laws
and regulations.
b. OlyCAP hereby acknowledges that,except as otherwise stated in this Agreement,OlyCAP
is purchasing the Property in its existing condition and has made all inspections of the
Property OlyCAP believes are necessary to protect its own interest in,and its contemplated
use of, the Property.
c. The parties acknowledge that, except as otherwise stated in this Agreement, no
representations, inducements, promises, agreements, assurances, oral or written,
concerning the Property, or any aspect of the occupational safety and health laws,
Environmental Law,or any other act, ordinance or law,have been made by either party,or
relied upon by either party. "Environmental Law" means any law or regulation relating to
health, pollution, or protection of the environment.
d. OlyCAP acknowledges that it is entering into this Agreement based on OlyCAP's own
investigation of the physical and environmental conditions of the Property, including
subsurface conditions. OlyCAP has conducted a Phase I Environmental Assessment for
the Property,
p rty, a true and correct copy of which is attached-as Exhibit 1:
e. OlyCAP assumes the risk that adverse physical and environmental conditions may not have
been revealed by OlyCAP's own investigation.
15. NO REPRESENTATION BY THE COUNTY RELATING TO THE CONDITION,
VALUE,FITNESS,OR ZONING OF THE PROPERTY. OlyCAP acknowledges that the
County, its agents and employees,and other persons acting on behalf of the County,have made
no representation or warranty of any kind in connection with any matter relating to the
condition, value, fitness, or zoning of the Property upon which OlyCAP has relied directly or
indirectly for any purpose.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 8of15
16. REPRESENTATIONS BY THE COUNTY RELATING TO THE PRIOR USE OF THE
PROPERTY. The County makes no representation about the use of the Property prior to the
County's ownership, including whether and Hazardous Substances were ever generated or
released at the Property. "Hazardous Substances" means pollutants, contaminants, toxic or
hazardous wastes,or any other substances,the removal of which is required or the use of which
is restricted,prohibited,or penalized by any Environmental Law.The County's representations
about the use of the Property during the County's ownership are contained in the disclosure
previously provided to OlyCAP, which disclosure is attached as Exhibit 1 and made a part of
this Agreement.
17. OLYCAP'S WAIVER OF CLAIMS. OlyCAP waives, releases, remises, acquits, and
forever discharges the County, the County's predecessors in title, successors, employees,
agents, or any other person acting on behalf of the County, of and from any claims, actions,
causes of action, demands, rights, damages, costs, expenses or compensation whatsoever,
direct or indirect, known or unknown, foreseen or unforeseen, which OlyCAP now has or
which may arise in the future on the account of or in any way growing out of or connected with
the physical or environmental condition of the Property at the time of the execution of this
Agreement and to the extent the same are not known to the County.
18. FURTHER DOCUMENTS AND ASSURANCES. The parties shall each, diligently and in
good faith, undertake all actions and procedures reasonably required to place the escrow in
condition for Closing as and when required by this Agreement. The parties agree to provide all
further information, and to execute and deliver all further documents, reasonably required by
the Closing Agent.
19. OLYCAP'S INDEMNITY.
a. OlyCAP agrees to defend, hold harmless and indemnify the County and its officers,
officials, employees, agents and volunteers against all loss and damage and any and all
claims and actions arising out of ownership of or operations at the Property after the
Closing, including, without limitation, costs, demands, expenses, fines, judgments,
lawsuits, liabilities, settlements, and other amounts actually and reasonably incurred in
connection with any liability, suit, action, loss, or damage.
b. Should a court of competent jurisdiction determine that this Agreement is subject to RCW
4.24.115, then, in the event of liability for damages arising out of bodily injury to persons
or damages to property caused by or resulting from the concurrent negligence of OlyCAP
and the County, its officers, officials, employees, agents and volunteers, OlyCAP's
liability, including the duty and cost to defend, hereunder shall be only to the extent of
OlyCAP's negligence.
•
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 9 of 15
c. The indemnification provided in this Agreement constitutes OlyCAP's waiver of immunity
under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification.
The parties have mutually negotiated this waiver.
d. The provisions of indemnity in this section shall survive the Closing.
20. DAMAGE TO COUNTY PROPERTY DURING CONSTRUCTION OF THE
PROJECT. OlyCAP shall be responsible for the repair of any and all damage caused during
the construction of the Project to other property owned by the County. For the avoidance of
doubt, property owned by the County includes parking lots and their asphalt coatings.
21.HAZARDOUS SUBSTANCES. If at any time after the Closing, the Property is found to be
contaminated by any Hazardous Substance, OlyCAP shall defend, indemnify, and hold
harmless the County and its officers, officials, employees, agents and volunteers for any
investigation or the remediation of such contamination to the satisfaction of a lead regulatory
agency and shall defend, indemnify, and hold harmless the County for any and all claims and
actions made related to the presence of any Hazardous Substance at the Property. The
provisions of indemnity in this section shall survive the Closing.
22. RELEASE OF COUNTY FROM RESTRICTIONS IN THE DECEMBER 21, 1983
AGREEMENT; COUNTY GRANT OF INGRESS/EGRESS EASEMENT. After it
obtains title to the Property,OlyCAP shall release the County from OlyCAP's rights to enforce
against the County the December 21, 1983 agreement described in the Neighboring Property
Owner Contingency, above. At Closing, OlyCAP shall provide the County with a written
waiver of any restrictions in the December 21, 1983 agreement that apply to other property
owned by the County that runs with the land. OlyCAP agrees that this waiver may be recorded
by the County at no expense to OlyCAP. OlyCAP agrees there is no adequate remedy at law
for breach of this section and that this section may be enforced by specific performance. In
consideration of OlyCAP's waiver of the 1983 Agreement,the County shall, at Closing, grant
OlyCAP an ingress/egress easement across County parcels 948-323-801 and 948-323-701 for
the purpose of providing access from 7th Street and Sheridan Street to the eastern portion of
the Property, which portion will be dedicated for shared parking between the OlyCAP and
County properties.
23. SALE OF THE PROPERTY PRIOR TO THE END OF THE MINIMUM LENGTH
FOR THE PROJECT.
a. If prior to the Minimum Length,the Property is condemned or destroyed such that it cannot
be rebuilt or repaired for its intended purpose, sold except in connection with a transfer of
the Project to OlyCAP or an affiliate of OlyCAP or to another nonprofit organization or
public agency which commits to maintaining the property in its intended purpose for the
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 10 of 15
remainder of the Minimum Length, becomes subject to eminent domain such that it cannot
be used for its intended purpose, or its use changes to something other than the Project,
OlyCAP shall pay the County:
i. The 2019 FMV;
ii. Less the Purchase Price;
iii. Plus the County's portion of the County's Shared Appreciation.
b. The County's Shared Appreciation (CSA) shall be determined by the following formula:
CSA=(NP-TDC)x 2019 FMV/TDC,where:
i. 2019 FMV means the fair market value of the Property at the time of the execution
of this Agreement. The parties acknowledge and agree that the 2019 FMV is
THREE HUNDRED SIXTY-TWO THOUSAND TWO HUNDRED EIGHTY
DOLLARS ($362,280) based on the assessed value of the Property as determined
by the Jefferson County Assessor as of the date of this Agreement.
ii. NP means: (A)The sales price or fair market value, as determined by an appraisal
satisfactory to the County; (B) Plus, any insurance proceeds, condemnation
proceeds or eminent domain proceeds due or payable to OIyCAP or its successor;
(C) Less, any outstanding balance, including unpaid interest, on loans secured by
liens recorded against the Property; and, (D) Less any reasonable and necessary
costs of sale (if the Property is sold), including appraisal, real estate commissions,
real property excise tax, escrow fees, recording fees,title and insurance premiums.
iii. TDC means the total development costs of the Project, including acquisition costs,
including: (A) The purchase price of the Property; (B) The costs of surveys and
inspections; (C) Appraisal, title insurance, escrow fees, recording fees any
reasonable and necessary attorney's fees; and, the cost of construction, including:
(D)hard and soft construction costs;(E)Hazardous Substance remediation required
by a governmental agency; (F) Architectural and engineering fees; and, (G)
Construction management fees and project management/development fees.
c. OlyCAP's payment to the County shall be due and payable to the County 30 days after the
County's demand for payment made to OlyCAP or its successors.
d. The County agrees to allow its right to payment under this Section to be subordinated to
the liens and interests of Project lenders, as needed to facilitate financing of the Project.
The County shall execute any subordination agreements as requested by OlyCAP or the
Project financing parties to document such subordination.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 11 of 15
24. ASSIGNMENT. Provided the assignment requires compliance with all the terms and
conditions of this Agreement,this Agreement shall be assignable by OlyCAP to another entity
(including, but not limited to, an LLC or LLLP) which is controlled by OlyCAP, without
additional approval by the County.
25. EXCLUSIVITY. The County shall not initiate or carry on negotiations for the sale or lease
of the Property with any other person prior to Closing.
26. USE OF PROPERTY DURING DUE DILIGENCE PERIOD. OlyCAP understands that
the County is currently providing parking the Property to Jefferson Healthcare under and
interlocal agreement. To the extent OlyCAP requires occasional and limited use of the
Property to fulfill its due diligence needs, the County agrees to cooperate with obtaining
authorization from Jefferson Healthcare to make the Property available for such needs.
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 12 of 15
27. GENERAL PROVISIONS.
a. Notice. Unless otherwise specified in this Agreement, any notice required or given under
the terms of this Agreement must be written. Receipt of any notice shall be defined as the
earlier of three(3)business days following the postmark date;or the date the party actually
receives the notice.
Notice to OlyCAP shall be sent to: With a copy to:
Name: Cherish Cronmiller Colette Kostelec
Executive Director Kostelec Law Office
Address: 823 Commerce Loop Address: PO Box 866
Port Townend, WA 98368 Port Townsend, WA 98368
Tel: (360) 385-2571 Tel.: 360-379-6453
Email: ccronmiller@olycap.org Email: colette@kostelec-law.com
Brad Britzmann
BJB Law Group
809 W. Riordan Rd., Ste 100 Flagstaff,
Arizona 86001 Phone: (314)401-7030
Fax: (928) 752-0400
brad@bjblawgroup.com
Notice to the County shall be sent to: With a copy to:
Name: Mark McCauley Name: Philip Morley
Director, Central Services County Administrator
Address: P.O. Box 1220 Address: P.O. Box 1220
Tel: (360) 385-9135 Tel: (360) 385-9383
Email: mmcauley@co.jefferson.wa.us Email: pmorley@co.jefferson.wa.us
And to:
Name: Philip C. Hunsucker
Chief Civil Deputy Prosecuting
Attorney
Address: P.O. Box 1220
Tel: (360) 385-9219
Email: phunsucker@co.jefferson.wa.us
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 13 of 15
b. Controlling Law. This Agreement hall be governed by and construed in accordance with
the laws of the United States, the State of Washington, and the County of Jefferson, as if
applied to transactions entered into and to be performed wholly within Jefferson County,
Washington between Jefferson County residents. No party shall argue or assert that any
state law other than Washington law applies to the governance or construction of this
Agreement.
c. Jurisdiction and Venue. Should either party bring any legal action under this Agreement,
each party in such action shall bear the cost of its own attorney's fees and court costs. The
venue for any legal action shall be solely in the appropriate state court in Jefferson County,
Washington, subject to the venue provisions for actions against counties in RCW
36.01.050.
d. Integration Clause. This Purchase and Sale Agreement memorializes the entire
agreement of the parties and contains all its parts,that no party made any representation or
promise that is not contained in this Agreement and this Agreement is not based on any
inducement,promise or representation,expressed or implied,which is not contained in this
Agreement, and this Agreement supersedes all prior or simultaneous representations,
discussions,negotiations,and agreements,whether written or oral,within the scope of this
Agreement.
e. Time is of the Essence. Time is of the essence as to all terms and conditions of this
Agreement.
f. Voluntary Sale. OlyCAP may utilize federal funds with respect to the acquisition,
rehabilitation and/or development of the Property. Because federal funds may be so used,
OlyCAP discloses to the County as follows:
i. This sale is voluntary. If the County does not wish to sell,OlyCAP does not have the
power to acquire the property by condemnation or eminent domain.
ii. OlyCAP estimates the fair market value of the Property to be greater than the purchase
price.
(SIGNATURES ARE ON THE FOLLOWING PAGE)
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 14 of 15
IN WITNESS WHEREOF,the parties have entered into this Purchase and Sale Agreement
effective as of the date of the final signature below.
JEFFERSON COUNTY WASHINGTON OLYMPIC COMMUNITY ACTION
PROGRAMS,a Washington non-profit
corporation
Board of County Commissioners
Jefferson County, Washington / Cherish ilter AI
Cro 2021-04-01
By: 2 f By: 710:46:01-07:00
K e Dean, hair Date Cherish Cronmiller Date
Executive Director
By; 'i/( /
Gre , ommissioner Date
By: Z 44S(14
Heidi Eisenhc1i r,Commissioner Date
r, d
SEAL: ,, 6.
• V i /l •�:1. r
ATTEST:
() 'Vie - al
Carolyn Galloway Date
Deputy Clerk of the Board
Approved as to form only:
�`, April 7, 2021
Philip C. Hunsucker Date
Chief Civil Deputy Prosecuting Attorney
Purchase and Sale Agreement
Jefferson County to OlyCAP
Page 15 of 15
EXHIBIT 1
Phase I Environmental Site Assessment
EXHIBIT 1
STRATUM GROUP
PO Box 2546,Bellingham,Washington 98227
Phone:(360)714-9409
September 14, 2020
Dale Wilson, Executive Director
OlyCAP
823 Commerce Loop
Port Townsend, WA 98368
Re: Report
Environmental Site Assessment: Phase I
Jefferson County Parcel 948323702
Port Townsend, WA 98368
Dear Mr. Wilson:
Stratum Group is pleased to present the results of our Phase I Environmental Site Assessment for
the above referenced property in Port Townsend,Washington. This Phase I Assessment was
conducted in conformance with the Federal Standards and Practices for All Appropriate Inquiries
(40 CFR Part 312)and in general conformance with the methodology of ASTM Standard Practice
E 1527-13.
Based on our site visit, historical research, and evaluation of potential off-site risks, it is reasonable
and prudent to believe that the risk of contamination at the site is so minimal that no further
investigation is warranted.
Should you have any questions concerning this Environmental Site Assessment, please do not
hesitate to contact us at(360)714-9409.
Sincerely yours,
Stratum Group
>1 ///'r rr n
Dan McShane, L.E.G., M.Sc. Geoff Malick, G.I.T. M.Sc.
Licensed Engineering Geologist Geologist-in-Training
°f
nwneenng
•41) Li cf-H�0
DANIEL McSHANE
REPORT
ENVIRONMENTAL SITE ASSESSMENT
PHASE I
HENDRICKS STREET AND 7TH STREET
JEFFERSON COUNTY PARCEL 948323702
PORT TOWNSEND, WASHINGTON 98368
For:
OlyCAP
823 Commerce Loop
Port Townsend, WA 98368
By:
p
STRATUM GROUP
PO Box 2546
Bellingham, WA 98227
(360)714-9409
September 14, 2020
TABLE OF CONTENTS
SECTION 1. EXECUTIVE SUMMARY 1#
SECTION 2. INTRODUCTION 1#
2.1 METHODOLOGY AND PURPOSE 1#
2.2 PROFESSIONAL QUALIFICATIONS 2#
2.3 DATA GAPS AND LIMITING CONDITIONS 3#
SECTION 3. SITE LOCATION AND PHYSICAL CHARACTERISTICS 3#
3.1 LOCATION 3#
3.2 SITE SETTING 3#
3.2.1 Geologic Summary 3#
3.2.2 Hydrologic Summary 4#
SECTION 4. SITE RECONNAISSANCE 4#
4.1 BUILDING CONDITIONS 4#
4.2 SURFACE CONDITIONS 4#
4.3 ADJOINING PROPERTIES 5#
SECTION 5. SITE DOCUMENTATION AND INTERVIEWS 6#
5.1 SITE DOCUMENTS 6#
5.2 INTERVIEWS 6#
SECTION 6.PAST USE OF SITE AND ADJOINING PROPERTIES 6#
6.1 SUMMARY OF PAST SftE USE 6#
6.2 SUMMARY OF PAST SITE USE OF ADJOINING PROPERTIES 6#
SECTION 7. POTENTIAL CONTAMINANT SOURCES 7#
7.1 STANDARD ASTM ENVIRONMENTAL RECORD SOURCES 7#
7.2 EVALUATION OF POTENTIAL CONTAMINATION SOURCES 7#
7.2.1 Potential O,ff-Site Source Information 7#
7.2.2 Potential On-Site Sources 8#
SECTION 8.CONCLUSIONS 9#
APPENDICES
APPENDIX I
Figure 1 - Site Vicinity Map
Figure 2—Aerial Photograph of Site and Vicinity
Figures 3 through 7— Site Photographs
APPENDIX II
Aerial Photographs
APPENDIX III
Historical Use and Public Records Search References
Stratum Group Indemnity
APPENDIX IV
Environmental Records
September 14.2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
SECTION 1. EXECUTIVE SUMMARY
Stratum Group conducted a Phase I Environmental Site Assessment for the property at 7`h Street
and Hendricks(Jefferson County Parcel 948323702)in Port Townsend, Washington. The
environmental assessment process included a site visit, a historical investigation, review of
environmental databases, and interviews to determine the risk of contamination to the soil,
groundwater, and/or vapor intrusion at the site.
The subject property occupies a single tax parcel that covers approximately 0.54 acres. The site is
currently a paved parking lot for an adjacent Jefferson County office building. No recognized
environmental conditions are suspected in connection with the current uses of the property.
The site was an undeveloped grass or hay field from at least 1951 until the site was graded to its
current level condition by 1990. The eastern 25 percent of the property had been paved for use as a
parking lot following excavation and grading of the property. The western 75 percent of the
property remained a maintained(mowed)grass field until May or June of 2015. The entire
property has functioned as a parking from June 2015 until present.No recognized environmental
conditions are suspected in connection with the historical use of the site.
None of the potential off-site contamination sources identified through our review of contaminated
sites within the ASTM search radius pose a significant risk of contamination to the subject property.
Based upon our site visit, historical review, and evaluation of potential off-site contamination
sources, it is our opinion that it is reasonable and prudent to believe that the environmental risk at
the site is minimal and therefore no further investigation is warranted.
SECTION 2. INTRODUCTION
2.1 Methodology and Purpose
The purpose of this Phase I Environmental Site Assessment is to identify,to the extent feasible
pursuant to the processes prescribed within the Federal Standards and Practices for All Appropriate
Inquiries(40 CFR Part 312)and ASTM Standard Practice E 1527-13, recognized environmental
conditions in connection with the subject properties. A recognized environmental condition is
defined as the presence or likely presence of any hazardous substances or petroleum products in,
on, or at a property: (1) due to any release to the environment; (2)under conditions indicative of
a release to the environment; or(3)under conditions that pose a material threat of a future
release to the environment. De minimis conditions are not recognized environmental conditions.
A de minimis condition is defined as a condition that generally does not pose a threat to human
health or the environment and that generally would not be the subject or an enforcement action if
brought to the attention of appropriate government agencies.
Stratum Group 1 7.12.19B
MIIlk
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
This report will also address controlled recognized environmental conditions(a past release of
hazardous substances or petroleum that remains in place with required controls), historical
recognized environmental conditions (a past release that has been cleaned up to meet unrestricted
land use criteria), if identified in association with the site.
A phase I report that conducts all appropriate inquiries into the previous ownership and uses of
the property consistent with good commercial and customary practices permits the user of the
report to satisfy one of the requirements to qualify for landowner liability protections including
innocent landowner, contiguous property owner, or bona fide prospective purchaser limitations
on liability within the Comprehensive Environmental Response, Compensation and Liability Act
(CERCLA)laws.
Environmental issues or conditions at a property may be present that are beyond the scope of a
typical phase I environmental site assessment, but which could under some conditions lead to
contamination or future financial burden and may warrant further research or investigation
beyond the phase I report. An example of non-scope considerations include: business related
environmental risk, asbestos-containing building materials,biological agents, cultural and
historical resources, ecological resources, endangered species, health and safety, indoor air
quality unrelated to releases of hazardous substances or petroleum products into the
environment, industrial hygiene, lead-based paint, lead in drinking water, mold, radon,
regulatory compliance, and wetlands. Non-scope considerations are generally not addressed in
this phase I report; however, our findings will be identified if significant conditions are
discovered during the conduct of our evaluation.
The scope of our services included:
• Inspection of the property for indication of hazardous substances, petroleum products,
stained soil, stressed vegetation, dumping, or careless manufacturing or industrial practices.
• Document the storage and waste management practices and the condition of the materials,
if present.
• Review of Federal, State, and local records as to locations of nearby hazardous waste sites,
leaking underground storage tanks, and landfills
• Review of aerial photographs, assessor's notes and other available public records to
determine past usage of the property and surrounding areas
• Review of the physical setting, geology, and hydrogeology of the site
• Preparation of this report describing the conditions encountered and recommendations for
further study, if necessary.
2.2 Professional Qualifications
We declare that, to the best of our professional knowledge and belief, we meet the definition of
Environmental Professional as defined in §312.10 of this part [Federal All Appropriate Inquiries].
Stratum Group 2 7.12.19B
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
We have the specific qualifications based on education,training, and experience to assess a
property of the nature, history, and setting of the subject property. We have developed and
performed the all appropriate inquiries in conformance with the standards and practices set forth in
40 CFR Part 312.
2.3 Data Gaps and Limiting Conditions
No data gaps or limiting conditions were encountered during the conduct of this Phase 1
Environmental Site Assessment except:
• We were unable to interview former owners of the subject property.
• Historical data for the site was not available at five year increments.
Our historical review of aerial photographs indicates the property has never been developed and its
only use has been as a parking area. Based upon this history,these limiting conditions do not
significantly affect our ability to adequately assess the risk to the subject property.
SECTION 3. SITE LOCATION AND PHYSICAL CHARACTERISTICS
3.1 Location
The subject property is located at the southeast corner of the intersection of 7`h Street and
Hendricks Street in the city of Port Townsend. The property is located approximately 0.3 miles
northwest of tidewater at Port Townsend Bay and approximately 1.5 miles southeast of downtown
Port Townsend. The property location is shown in Figure 1 in Appendix I.
3.2 Site Setting
The property is located in a commercial and residential area in Port Townsend. The vicinity of
the area has very gentle slopes, but the property itself is cut into a moderate hillside to the north
and west.
An aerial photograph of the site and vicinity is provided in Figure 2. Site photographs are
provided in Figures 3 through 7. Figures 1 through 7 are provided in Appendix I.
3.2.1 Geologic Summary
The Geologic Map of the Port Townsend South and Part of the Port Townsend North 7.5-minute
Quadrangles, Jefferson County, Washington(Schasse and Slaughter, 2005)indicates that the
subject property is underlain by Vashon till and modified land.
Stratum Group 3 7.12.19B
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
Vashon till as a very poorly sorted mix of clay, silt, sand, and gravel with scattered cobbles and
boulders that was deposited by glacial ice during the last glacial period between 18,000 and
14,000 years ago. The unit is highly compacted to the point of resembling concrete and
commonly forms steep, nearly vertical coastal bluffs in the Salish Sea region. The highly
compact nature of the deposit is from the glacial ice that had a maximum ice thickness in the area
of 4,000 feet(Schasse and Slaughter, 2005; Thorsen, 1981).
Modified land is described as soil and sediment that has been reworked by excavation or
redistribution to modify natural topography.
Our observations are consistent with the above described mapping. Five hand dug test pits and
cut slope exposures on the site revealed compact diamicton consistent with Vashon till. The till is
composed of compact and dense poorly sorted clay, silt, sand, and gravel with scattered cobbles
and boulders. Some of the test pits exposed shallow reworked till consistent with the modified
land.
3.2.2 Hydrologic Summary
No surface water features are present on the site.
Shallow groundwater flow is generally a function of topography. Although the property has been
excavated and graded, the surrounding topography gently slopes to the southeast towards Port
Townsend Bay. Based on this topography, shallow groundwater at in the in vicinity of the site
likely flows towards the southeast towards Port Townsend Bay.
SECTION 4. SITE RECONNAISSANCE
Representatives of Stratum Group visited the subject property on September 4, 2020. We had
previously visited the site on June 24, 2019. Site conditions and adjoining sites had not
undergone ant changes between our site visits.
4.1 Building Conditions
No buildings or structures were located on the subject property at the time of our site visit.
4.2 Surface Conditions
The surface of the subject property mostly consists of a paved parking lot. Unpaved areas include
a grass strip on the southern boundary of the property the property and vegetated cut slopes along
the northern and western property boundaries. The grass strip included cement blocks spaced 3
to 5 feet apart. The cut slopes on the property range in height from 8 to 14 feet with slope angles
between 40 and 50 degrees. In the northeast portion of the property, a set of concrete stairs on the
Stratum Group 4 7.12.19B
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
cut slope connect the level parking area on the site to 7th Street. A rockery wall is located on the
lower 3 to 5 feet of the slope in the vicinity of the stairs. Vegetation on the cut slopes consists of
grass and weeds with scattered clusters of planted bushes, cherry trees, blackberry bushes, and
English Ivy.
No recognized environmental conditions were observed on exterior areas of the subject property.
Our exterior observations are summarized in Table 1.
TABLE 1
Exterior Observations Checklist
ASTM Observation Yes/NO! Comments
Deminimis
Hazardous containers
(i.e.drums,above ground tanks, No
batteries)
Underground tanks, fill or vent
pipes(associated with an underground No
tank or hydraulic hoists)
Solid waste dumping No
Fill soils No
Stained Soil No
Odors No
Electrical equipment(PCBs) No
Storm water system
(i.e.ponds,underground detention, No
ditches,drains,oil water separator,
filtration)
Stressed Vegetation
(due to contamination or herbicide No
application)
Waste Water
(i.e.wash racks,mop water disposal, No
process water not entering public sanitary
sewer)
Septic Systems No
4.3 Adjoining Properties
The adjacent property to the south at 615 Sheridan Street is used as an office building by
Jefferson County and as parking areas for the office building and shopping center further to the
Stratum Group 5 7.12.19B
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
south. The adjacent property consists of paved parking associated with the offices and
commercial development to the south. The property is bounded to the north by 7th Street and to
the west by Hendricks Street. On the opposite of each of these roads, there are several residential
properties developed with homes. To the northwest, an RV park(Sea Breeze Park)is located
kitty corner to the subject property.
SECTION 5. SITE DOCUMENTATION AND INTERVIEWS
5.1 Site Documents
No other site-specific documents regarding environmental conditions were available for the subject
property.
5.2 Interviews
No interviews were completed as part of this assessment. We contacted the Jefferson County
Health Department regarding the property. The Health Department had no records regarding the
site.
SECTION 6. PAST USE OF SITE AND ADJOINING PROPERTIES
Aerial photographs dating back to 1951 and assessor records were used for gathering information
regarding the past use of the subject property and adjoining properties. Copies of the aerial
photographs are provided in Appendix II. A list of the references for the historical research is
provided in Appendix III.
6.1 Summary of Past Site Use
The subject property was an undeveloped field from at least 1951 through at least 1979. The site
was graded sometime in the 1980s when the adjoining properties to the south and east were
developed as an office and commercial development. The eastern 25 percent of the site was
converted to a paved parking area at that time. The rest of the level area of the site was maintained
as a vacant grass covered lot. The remainder of the level ground on the property was paved and
converted to a parking lot in May or June of 2015.
6.2 Summary of Past Site Use of Adjoining Properties
North: 7th Street has bounded the site to the north since at least the 1920s. The homes located across
the street to the north were built in the late 1920s.
East and Southeast: The adjacent properties to the east and southeast were used as grass and hay
fields from at least 1951 through 1979. These areas were paved and used as parking beginning
Stratum Group 6 7.12.19B
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
sometime in the 1980s.
South: The adjacent properties to south were used as a grass and hay field from at least 1951
through 1979. The existing commercial building was built to the south in the 1980s.
West: Hendricks Street has bounded the west side of the property since at least the 1920s. Homes
were located across the street from the 1920s but had been removed by 1960s. Mobile homes
were located across the street to the west in the 1970s.
SECTION 7. POTENTIAL CONTAMINANT SOURCES
7.1 Standard ASTM Environmental Record Sources
The environmental records were reviewed to identify potential off-site contamination sources in the
vicinity of the subject property that have a potential to negatively impact the subject property's soil,
ground water, or surface water. The records were reviewed by Stratum Group from databases
downloaded on September 14, 2020. Based upon the site's location, the databases were searched
for Port Townsend and Jefferson County, Washington. A list of the references used to determine
the potential off-site contamination sites is presented in Appendix H. The results of our records
search can be made available in electronic form.
Two potential off-site contamination sources were identified in the environmental records located
within the ASTM search distance. The location of the site and the subject property are indicated on
the Figure 1 —Site Vicinity Map. The site found within the ASTM search distance and the potential
risk it poses to the subject property is discussed in Section 7.2.1.
Our records review augments the environmental databases reviewed through an EDR radius report
for Jefferson County parcel 948323702(Inquiry Number 5716431.2s)dated July 15, 2019. EDR
provided a map of listed sites and copies of the databases on which the sites were listed. The
approximate locations of the sites and the subject property are shown on the EDR radius map,
provided on pages 15 and 16 of the EDR report are included in Appendix V.
7.2 Evaluation of Potential Contamination Sources
7.2.1 Potential Off-Site Source Information
The sites found within the search radius, as identified by the ASTM standard,were evaluated to
determine the potential effect on the subject property. Factors such as location, topography,
groundwater flow direction, hydrologic barriers, type of contamination, and the actions taken to
remove the contamination are all considered to determine the potential off-site contamination
source's potential impacts on the subject property.
Stratum Group 7 7.12.19B
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
Two sites are identified in the environmental records: Sea Breeze Shell and Hilltop Texaco. Neither
of these two sites is located up gradient to the subject property and both impacted soil only. Based
on the locations of the sites and soil being the only media impacted,these two sites pose no risk of
contamination to the subject property.
One site was identified in the EDR report that is potentially up gradient of the subject property.
1553 8th Street(mapped site 3)was listed as a potential gasoline service station in the proprietary
EDR high-risk historical records database. However, our review of historical aerial photographs and
assessor records indicates that the property has only been a residential property. There are no reports
of contamination associated with this site and it is not listed on any public data bases. In addition the
site is approximately 500 feet away. Therefore,it is our opinion that although this site is potentially
up gradient of the subject property, it does not pose a risk to the subject property and does not
warrant further investigation.
None of the identified sites poses a significant risk of contamination to the subject property.No
other potential off-site sources were identified through our historical review.
7.2.2 Potential On-Site Sources
Representatives of Stratum Group visited the subject property on September 4, 2020. The purpose
of the site visit was to identify,to the extent feasible pursuant to the processes prescribed within
the Federal All Appropriate Inquiries and the ASTM Standard Practice E 1527, recognized
environmental conditions in connection with the subject property.
We did not observe any recognized environmental conditions or any indications of potential
contamination on the site.
The subject property is not listed in any public databases.
The subject property was an undeveloped field from at least 1951 through at least 1979. The site
was graded sometime in the 1980s when the adjoining properties to the south and east were
developed as an office and commercial development. The eastern 25 percent of the site was
converted to a paved parking area at that time. The rest of the level area of the site was maintained
as a vacant grass covered lot. The remainder of the level ground on the property was paved and
converted to a parking lot in May or June of 2015.
No recognized environmental conditions are suspected from the past use of the site.
Stratum Group 8 7.12.19B
September 14,2020
Jefferson County Parcel 948323702
Report-Environmental Site Assessment:Phase I
SECTION 8. CONCLUSIONS
We have performed a Phase I Environmental Site Assessment in general conformance with the
scope and limitations of ASTM Practice E 1527 and the Federal Standards for All Appropriate
Inquiries 40 CFR Part 312 for Jefferson County parcel 948323702.
Based upon our site visit,historical review and evaluation of potential off-site contamination
sources,it is our opinion that the risk of contamination at the site is minimal and no further
investigation is warranted.
Stratum Group 9 7.12.19B
APPENDIX I
Figure 1 - Site Vicinity Map
Figure 2 — Aerial Photograph of Site and Vicinity
Figures 3 through 7 — Site Photographs
Figure 1. Site Vicinity Map
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APPENDIX II
Historical Aerial Photographs hs
Aerial Photographs
(property boundaries are approximate)
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APPENDIX III
Historical Use and Public Records Search References
Stratum Group Indemnity
Historical Use and Public Records Search References
Historical Use Source References
1. Aerial photos dated 1951, 1955, 1968, 1979,as maintained by USGS Earth Explorer
2. Aerial photos dated 1990-2018(not all years included),as available on Google Earth
3. Aerial Photos dated 1994 as Maintained by Jefferson County
4. Property assessor records maintained by the Jefferson County Assessor's Office in Port
Townsend,Washington
Public Records Database Search References
Our public records search was completed through internet research. Each database is searched by city,
county, zip code or through mapping programs and are evaluated to determine if they are located within
the ASTM search distance of the subject property. The databases include many more sites than are
located within the search distance. Only sites identified within the search distance are named and mapped
within this letter report.
Date Database
Database Searched Access to Database Downloaded from
Source
National Priorities List(active and delisted sites) September 14,2020
Resource Conservation and Recovery Act Transfer, September 14,2020
Storage,and/or Disposal Facility with no corrective action "Envirofacts Data Warehouse."U.S.
(RCRA TSD,non-CORRACTS) Environmental Protection Agency.
RCRA CORRACTS(RCRA corrective action sites) http:/lwww.epa.gov/enviro. September 14,2020
RCRA Hazardous Waste Handler or Generator records September 14,2020
(HWG)
CERCLIS(Active) September 14,2020
"Superfund Site Information"U.S.. September 14.2020
De-listed CERCLIS Sites(NFRAP) Environmental Protection Agency.,
http://www.epa.gov/superfund/sites/curs
ites/index.htm
"National Response Center."U.S. September
er 14,2020
National Response Center Database(NRC)—formerly Environmental Protection Agency.
ERNS http://www.nrc.uscg.mil/foia.html
State Confirmed and Suspected Contaminated Sites(CSCS) "Washington Facility/Site Atlas." September 14,2020
State Leaking Underground Storage Tank List(LUST) Washington State Department of September 14,2020
State Underground Storage Tank List(UST) Ecology—Geographic Information September 14,2020
State Brownfield Site System. September 14,2020
http://apps.ecy.wa.gov/website/facsite/vi September 14, 2020
State Institutional or Engineering Control Registry ewer.htm
Jefferson County Environmental Health Jefferson County Solid Waste Landfills 2020
Map
EDR Radius Report for Jefferson County Parcel 948323702 Inquiry Number 5716431.2s (EDR, July 15,
2019).
Stratum Group Indemnity
Stratum Group has prepared this report using reasonable efforts in each phase of its work to
estimate the liabilities associated with recognized environmental conditions on the subject property
and in the vicinity of the subject property. No environmental site assessment can wholly eliminate
uncertainty regarding the potential for recognized environmental conditions in connection with a
property. This report is intended to reduce,but not eliminate,uncertainty regarding the existence of
recognized environmental conditions in connection with the subject property, in recognition of
reasonable limits of time and cost.
Stratum Group makes no warranty, expressed or implied, as to the accuracy of information
contained in public records.
This report is not definitive and should not be considered a complete or specific definition of all
conditions above or below grade. Subsurface exploration of the site was not within the scope of this
study. Recognized environmental conditions in the subsurface, if present, could only be identified
by a subsurface investigation. An evaluation of area-wide atmospheric deposition of contaminants
is not evaluated within this report. If buildings are present on the property, asbestos and/or lead
containing materials may be present. This report did not include collection of samples for asbestos
containing materials or testing for lead. Should any renovation, remodeling, or demolition of
buildings occur on the property or if suspect materials are damaged, a thorough good faith asbestos
sampling should be completed.
As is now common in the industry, it is understood that, to the fullest extent permitted by law, our
clients agree to defend, indemnify and hold harmless Stratum Group,its owners, employees,
subcontractors and agents, from any(past,present, or future)pollution-related claims or damages at
the site,including potential claims from third parties that may name Stratum Group as a claimant.
APPENDIX IV
Environmental Records
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SITE HAZARD ASSESSMENT
Worksheet 1
Summary Score Sheet
Site Information:
Site Name: Seabreeze Shell
Address: 1408 Sims Way, Port Townsend, WA 98368
Ecology Facility Site ID No.: 93244565
Section/Township/Range: Section 10/T30N/R1W
Latitude: 48.103466 Longitude: -122.792901
Site scored/ranked for the September 2017 update
August 9, 2017
Site Description
The Seabreeze Shell site is located at 1408 Sims Way, Port Townsend,Washington, (Township 30N/
Range 1 W/ Section 10). There was a confirmed release to soil of petroleum hydrocarbons in April
2007.
Background
The Seabreeze Shell location was used as a gasoline station since about 1928. There are three current
underground storage tanks(USTs), which were installed on the site in 1985, and retrofitted to meet
upgrading requirements in 1998. The older historical tanks were reportedly removed in 1985.
Total volume of all underground tanks at this property is approximately 31,800 gallons.
In 1993, two soil borings were performed by Environmental Associates, Inc. Slight hydrocarbon odors
were noted in soil samples collected from a location near the former UST nest location.
In 1997, Aspect Consulting commissioned a geophysical study which included electromagnetic
magnetometer, and ground penetrating radar surveys. No metallic anomalies were noted at the reported
location of the former UST nest. One anomaly presented itself immediately south of the convenience
store, and it could be a historic buried pump island or out-of-service UST.
Follow-up Site Investigations
On April 25, 2007, Aspect Consulting(Aspect)had six direct-push exploration borings at the site and on
June 25 and 26, 2007 eight hollow stem auger borings completed. NW Probe, Puyallup, Washington,
did the direct push explorations. Cascade Drilling Inc, Woodinville, Washington, completed all of the
hollow stem auger borings.
The direct-push borings continuously sampled using 4-foot core barrels and acetate sleeves. Hollow
stem auger borings were sampled at 5-foot intervals using a 3 inch "Dames and Moore" split spoon
sampler driven with a 300 pound slide hammer. All soil samples were logged by an Aspect geologist,
1
and were field screened for indicators of hydrocarbons and volatile organic compounds (VOCs)using
visual and olfactory observations, and by headspace screening using a photoionization detector(PID).
The soil conditions at the site were reported to consist of asphalt or concrete overlying 2 feet of dense
gravel and sandy gravel fill. Native soil encountered below the fill generally included dense to very
dense,grey to brown, silty gravelly sands interpreted to be Vashon glacial till. More sand-rich deposits
encountered below an approximate depth of 30 feet were interpreted to be the upper portion of the
underlying Vashon advance outwash. The field indicators included elevated PID reading and odor noted
from borings B-03, B-06, B-7, B8, B 11, B12, and B14.
All soil samples collected were reported to have been placed into laboratory-supplied jars,placed in an
iced cooler, and retained for possibly laboratory analysis. Samples were analyzed for total petroleum
hydrocarbons (TPHs)-gasoline and VOCs were collected and preserved in accordance with EPA Method
5035A. Reportedly, industry standard chain-of-custody protocols were followed during sample
handling, storage and transportation.
The selection of the samples to submit for analysis was based on site conditions, historical use,results of
field screening observations, and the project analytical budget. Friedman & Bruya Inc. analyzed the soil
samples for: total petroleum hydrocarbons using Northwest Total Petroleum Hydrocarbon-extended gas
region(NWTPH-Gx)method, TPH as diesel and motor oil by NWTPH-Dx (extended diesel region),
BTEX compounds (benzene, toluene, ethyl benzene, and xylenes)by EPA Method 8021 B, and total lead
by EPA Method 200.8.
The TPHs as gasoline were detected above the MTCA Method A soil cleanup level of 30 mg/kg(when
benzene was present) in soil samples collected from borings B-06, B7, B8, and B 12. The detected
concentrations above MTCA Method A soil cleanup levels were in soil samples collected at or above 15
feet below grade. The TPHs samples as diesel had analytical results lower than the MICA Method A
soil cleanup level of 2,000 mg/kg.
Benzene was detected at concentrations above MTCA Method A soil cleanup level of 0.03 mg/kg in
samples from B-06, B 11, B 12, B 14, and B 15. Toluene exceeding the MICA Method A soil cleanup
levels were detected in soil samples from borings B-06 and B7, and ethyl-benzene and total xylenes
were detected exceeding MICA Method A soil cleanup levels for these compounds in samples from
borings B-06, B7, and B8.
All samples where concentrations of lead were detected were under the MTCA Method A soil cleanup
level. Table 1 below shows the analytical results for the samples that had concentrations above MICA
Method A soil cleanup levels.
2
Table 1: Analytical Results from soil samples compared to MTCA Method A Cleanup Levels
Sample# Depth Gasoline by Benzene Toluene by Ethyl-Benzene Total Xylenes
(feet) NWTPH-Gx by BTEX BTEX By BTEX by BTEX
(mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg)
8-06-12 12 4400 <1 26 32 290
B-06-15 15 2400 1.6 99 32 230
B7-10'-062507 10 5300 <0.4 59 74 570
B8-12.5'-062507 12.5 1100 <0.4 3.3 6.4 77
B11-15'-062507 15 3 0.06 0.23 0.07 0.53
B11-30'-062507 30 4 0.17 0.452 0.07 0.5
B12-12.5'-062607 12.5 400 <0.2 <0.2 1.3 10
B12-40'-062607 40 <2 0.04 0.11 0.03 0.14
B14-30'-062607 30 19 1.3 3 0.28 2.2
B15-15'-062607 15 3 0.05 0.12 0.03 0.24
MTCA Cleanup Level - 230 .03 7 6 9
*The values in bold are over the MCTA Method A Cleanup Levels
Site Hazard Assessment
A Site Hazard Assessment(SHA) was performed by Anita Hicklin, of Jefferson County
Public Health (JCPH), on August 21, 2009. There was no sign of any contamination on
the ground however the contaminated areas are below the site buildings and parking lot.
The file was reviewed in September 2015 by Christy Fiedler (JCPH) and the report was
updated August 9, 2017 by Roger Parker(JCPH).
The scoring and ranking of this site was based on site-specific results from environmental
samples collected between April 2007 and June 2007. No new sampling data was
generated during the SHA report process.
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SPECIAL CONSIDERATIONS(include limitations in site file data or data which cannot
be accommodated in the model, but which are important in evaluating the risk
associated with the site,or any other factor(s) over-riding a decision of no further
action for the site):
Due to the significant contamination documented on-site being primarily subsurface,the
surface water and air routes are not applicable for WARM scoring for this site. Thus,
only the groundwater route will be scored.
Route Scores:
Surface Water/Human Health: ROUTE SCORES:
Surface Water/Human Health: NS Surface Water/Environmental.: NS
Air/Human Health: NS Air/Environmental: NS
Groundwater/IIuman Ilealth: 21.3
OVERALL RANK: 5
4
WORKSHEET 2
Route Documentation
1. SURFACE WATER ROUTE—Not Scored
a. List those substances to be considered for scoring: Source:
b. Explain basis for choice of substance(s)to be used in scoring.
c. List those management units to be considered for scoring: Source:
d. Explain basis for choice of unit to be used in scoring:
2. AIR ROUTE—Not Scored
a. List those substances to be considered for scoring: Source:
b. Explain basis for choice of substance(s)to be used in scoring:
c. List those management units to be considered for scoring: Source:
d. Explain basis for choice of unit to be used in scoring:
3. GROUNDWATER ROUTE
a. List those substances to be considered for scoring: Source: 1, 4, 5
TPH-gasoline and BTEX
b. Explain basis for choice of substance(s)to be used in scoring:
These substances were detected in on-site subsurface soil and groundwater samples associated
with the site in concentrations exceeding their respective MTCA cleanup levels.
c. List those management units to be considered for scoring: Source: 1, 4, 5
Subsurface soils and groundwater.
d. Explain basis for choice of unit to be used in scoring:
The contaminating substances were detected in on-site subsurface soil and groundwater
samples in concentrations exceeding their respective MTCA cleanup levels.
5
WORKSHEET 6
Groundwater Route
1.0 SUBSTANCE CHARACTERISTICS
1.2 Human Toxicity
Drinking Carcinogenicity
Water Acute Chronic
Substance Standard Value Toxicity Value Toxicity Value * Value
(mg/kg-bw) (mg/kg/day) WOE PF
(to)
i TPH-G 8 8 3306 3 ND -- A 0.029 1.0
2 Benzene 8 8 3 10 ND -- ND ND --
3 Toluene 2 8 5000 3 0.2 1 ND ND --
4 Ethyl-Benzene 4 8 3500 3 0.1 3 ND ND --
5 Xylenes 2 8 50 10 2 1 ND ND --
*Potency Factor Source: 1. 4.5
Highest Value:1Q
(Max=10)
Plus 2 Bonus Points? Yla
Final Toxicity Value: l 2
(Max=12)
1.2 Mobility(use numbers to refer to above listed substances)
Cations/Anions OR Solubility(mg/L)
1= 1= 1.8 X 103=3
2= 2= 1.3 X 103=3
3= 3= 5.4 X 102=3
4= 4= 1.5 X 102=3
5= 5= 2.0 X 102=3
Source: 4 5
Value:
(Max=3)
1.3 Substance Quantity:
Explain basis: Unknown,use default=1
Source: 1
31,800 gal stored in retrofitted 1998 UST's.Unknown amount in Value: a
historical tanks removed in 1985. (Max=10)
6
2.0 MIGRATION POTENTIAL
Source Value
Containment(explain basis):
2.1 Contaminated area is covered by a building and parking lot, score as a �
landfill: 1)No liner=3; 2) Low permeability cover= 1; 3)No leachate 1,4,5 (Maxsr=10)
collection system=2.
2.2 Net precipitation: November through April= 11.77 in. 6 2
(Max=5)
2.3 Subsurface hydraulic conductivity: sands/gravels 1,4,5 4
(Max=4)
2.4 Vertical depth to groundwater: Obs.release to groundwater= 0' 1,4,5 (Max=8)
3.0 TARGETS
Source Value
3.1 Groundwater usage: Public supply,unthreatened alts. avail. 1 (Max 10)
3.2 Distance to nearest drinking water well: 2640 feet 1 (Maxi=5)
3.3 Population served within 2 miles: 43=1.7 1 (Max-100)
3.4 Area irrigated by (groundwater)wells within 2 miles: 0 1 (Max 50)
4.0 RELEASE
Source Value
Explain basis for scoring a release to groundwater: No confirmed 0
presence of contamination in groundwater. 1,4,5
(Max = 5)
7
SOURCES USED IN SCORING
1. Aspect Consulting Limited Phase II Site Assessment Report, August 27, 2007.
2. Underground Detection Services Report,April 22, 2007.
3. Adapt Engineering Phase I Environmental Site Assessment Report, March 28, 2007.
4. Washington State Department of Ecology,Toxicology Database for Use in Washington
Ranking Method Scoring, January 1992
5. Washington State Department of Ecology, WARM Scoring Manual,April 1992.
6. Washington Climate—Net Rainfall Table
7. Washington State Department of Health, SADIE Database printout for public water
supplies
NOTE: Remaining pages concern other
locations and have been omitted for the sake of
brevity.
8
Consent Agenda
Commissioners Office
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
7-7
FROM: Philip Morley, County Administrator,
i
DATE: April 5, 2021 G{
SUBJECT: AGREEMENT re: 7th& Hendricks Land—Option to Enter into Purchase and
Sale for Affordable Housing Project in the Amount of$36,200; Jefferson County Central
Services; Olympic Community Action Programs (OlyCAP)
STATEMENT OF ISSUE:
OlyCAP is working to increase the supply of housing to low income residents of Jefferson
County. As part of this effort, OlyCAP is proposing to build a 44-unit affordable housing facility
on land currently owned by Jefferson County, APN 948-323-702. Jefferson County wishes to
support this project.
This agreement is for an option to enter into purchase and sale agreement with OlyCAP for land
owned by the County located and 7th & Hendricks in the City of Port Townsend. This option
would replace the current purchase and sales agreement between OlyCAP and the County for the
same property. OlyCAP has obtained a number of grants for the project, which is to build
affordable housing, contingent on OlyCAP obtaining funding for the project, among other
contingencies stated in the purchase and sales agreement. OlyCAP believes that changing the
purchase and sales agreement to an option will enhance its ability to obtain full funding for the
project.
FISCAL IMPACT:
Should the board approve the attached Option for a Purchase and Sale Agreement with OlyCAP
and the sale be completed, the County will receive $36,200 in consideration for the sale.
RECOMMENDATION:
Approve and sign the option.
RE ED BY
e/7//
i ip Morle '. ounty Administrator Date:
CONTRACT REVIEW FORM
CONTRACT WITH: OlyCAP TRACKING NO.:
(Contractor/Consultant)
CONTRACT FOR: Jefferson County TERM: Indefinate
COUNTY DEPARTMENT
For More Information Contact: Philip Morley
Contact Phone #: 102
RETURN TO: Adiel McKnight RETURN BY: ASAP
(Person in Department) (Date)
AMOUNT: $36,200 PROCESS: E Exempt from Bid Process
❑ Consultant Selection Process
Revenue ❑ Cooperative Purchase
Expenditure ❑ Competitive Sealed Bid
Matching funds Required ❑ Small Works Roster
Source(s) of Matching Funds ❑ Vendor List Bid
❑ RFP or RFQ
❑ Other
Step 1: REVIEW BY RISK MANAGE,A "?
Review by: phili Morle r"",' /
Date Reviewed: 04/01/2021
El APPROVED FORM ❑ Returned for revision(See Comments)
Comments
Step 2: REVIEW BY PROSECUTING ATTORNEY
Review by: 0 C Philip C. Hunsucker
Date Reviewed: 04/01/2021 Chief Civil Deputy Prosecuting Attorney
El APPROVED AS TO FORM ❑ Returned for revision(See Comments)
Comments Changed PSA to an option to enter a slightly revised PSA.
Step 3: (If required) DEPARTMENT MAKES REVISIONS & RESUBMITS TO RISK
MANAGEMENT AND PROSECUTING ATTORNEY
Step 4: CONTRACTOR/CONSULTANT SIGNS APPROPRIATE NUMBER OF
ORIGINALS
Step 5: SUBMIT TO BOCC FOR APPROVAL
Submit original Contract(s),Agenda Request, and Contract Review form. Also,please send 2 copies of
just the Contract(s)(with the originals)to the BOCC Office. Place"Sign Here"markers on all places the
BOCC needs to sign.
MUST be in BOCC Office by 4:30 p.m.TUESDAY for the following Monday's agenda.
(This form to stay with contract throughout the contract review process.)