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HomeMy WebLinkAboutJack L. Smith, Jr. and Judith Witt Smith 100793 646,` to-N-9 ' • ort poi f =,: : JEFFERSON COUNTY • ti PLANNING AND BUILDING DEPARTMENT f( � `' 6t P.O. Box 1220 J ,_l 'i ;: f, Port Townsend, Washington 98368 fw; Planning (206) 385-9140 ' ` 4tys- P t--- / ' Building (206) 385-9141 JEFFERSON COUNTY COURTHOUSE Craig Ward, Director WATER QUALITY IMPROVEMENT LOAN AGREEMENT NUMBER 93-003-21 AGREEMENT made this // day o0e�j(j-Pr— , 1993, by and between JEFFERSON COUNTY, hereinafter referred to as the "COUNTY", and Jack L. Smith, Jr. and Judith Witt Smith hereinafter referred to as the "OWNER". COUNTY and OWNER agree as follows: 1. PREMISES: Owner shall have installed the rehabilitation measures described in the attached Exhibit "A", REHABILITATION MEASURES, hereinafter referred to as the "REHABILITATION MEASURES", on the property located at 4011 Oak Bay Rd., Port Hadlock WA, hereinafter referred to as the "PREMISES". OWNER has provided a legal description of the PREMISES, which is set forth in the attached Exhibit "B". OWNER represents that he is the OWNER or CONTRACT PURCHASER of the PREMISES. 2. REHABILITATION MEASURES:OWNER represents that OWNER has contracted with a contractor or contractors acceptable to the COUNTY for the purchase and installation at the PREMISES of the REHABILITATION MEASURES. 3. LOAN: The COUNTY will loan OWNER the amount of Fifteen Thousand Two Hundred Seventy-two Dollars and 60 Cents ($15,272.60) hereinafter referred to as the "LOAN", after installation of the REHABILITATION MEASURES. The COUNTY may make such LOAN by paying contractor on behalf of OWNER. OWNER shall be responsible for paying all other obligations to contractor above the amount of the LOAN. 4. PROMISSORY NOTE AND DEED: At the time of the LOAN, OWNER shall execute a promissory note, herinafter referred to as the "NOTE" to the COUNTY for the amount of the LOAN in the form set forth as Exhibit "C". The NOTE, shall be secured by a deed of trust on the PREMISES, in the form attached as Exhibit "D", which shall be executed by OWNER simultaneously with the execution of the NOTE. 5. REPAYMENT OF THE LOAN: OWNER shall repay the LOAN pursuant to the terms specified in the NOTE. 6. SEPARATE CONTRACT: The purchase and installation of the REHABILITATION MEASURES are to be provided for under a separate contract between OWNER and contractor. COUNTY shall not be, and shall not be deemed to be, a party to such contract. All obligations to contractor shall be OWNER's and not COUNTY's responsibility. OWNER expressly acknowledges the COUNTY's involvement with respect to the REHABILITATION MEASURES, including but not limited to any inspection by COUNTY of the PREMISES or of the REHABILITATION MEASURES, is solely undertaken in connection with furnishing the LOAN. The types of materials, methods of installation, quality and timing thereof; and any warranties with respect to the REHABILITATION MEASURES or their installation at the PREMISES are solely matters to be agreed upon between OWNER and contractor. COUNTY does not make (and OWNER acknowledges that COUNTY does not make) any implied or express warranty (including but not limited to any implied warranty of merchantability of fitness), representation or promise with respect to either (a) the REHABILITATION MEASURES, (b) any materials and labor required for the installation of the REHABILITATION MEASURES, or (c) the installation of the REHABILITATION MEASURES. 7. RELEASE: OWNER releases COUNTY from any and all claims, losses, harm, costs, liabilities, damages, and expenses directly or indirectly resulting from or in connection with either (a) the REHABILITATION MEASURES, (b) any materials and labor required for the installation of the REHABILITATION MEASURES, or (c) installation of REHABILITATION MEASURES. 8. ENTIRE AGREEMENT: All exhibits hereto are incorporated into this AGREEMENT. This AGREEMENT sets forth the entire AGREEMENT between the parties and supersedes any and all prior agreements with respect to the REHABILITATION MEASURES. No change, amendment, or modification of any provision of this AGREEMENT shall be valid unless set forth in a written amendment to this AGREEMENT signed by both parties. Executed as of the date first hereinabove writt Granting Authority: AC://// Dated is a ojt, airman e erson County Board f Commission s STATE OF WASHINGTON ) )ss. County of Jefferson ► On this day personally appeared before me 6(1,A RL Nj©'j ,to me known to be the individual described in and who executed the foregoing instrument, and acknowledged to me that he signed and sealed this said instrument as his free and voluntary act and deed for the uses and purposes therein mentioned. Given under my hand and official seal this /1 day of Le/ 1993. TARY PUBLI in and for the ate of Washington residing at ort Townsend. My commission expires: //30/F.5 LORMek L. bEL A)& Owner(s): Dat€77/7g ck L. mith, r� u It Itt mit STATE OF WASHINGTON ) )ss. County of Jefferson ► On this day personally appeared before me 'ack L. 5i-, "Tv. and 31,4G+t-w• S ---F` , to me known to be the individual(s) described in and who executed the foregoing instrument, and acknowledged to me that they signed and sealed this said instrument as their fee and voluntary act and deed for the uses and purposes therein mentioned. Given under my hand and official seal this 7 day of DeA-cl�j- , 1993. NOTARY PUBLIC in and for the State of Washington residing at Port V.2 Townsend.My commission expires: Ref: REHAB NO: 93-003-21 EXHIBIT "A" REHABILITATION MEASURES The rehabilitation measures are those requirements or conditions stated in the sewage disposal permit issued by the Jefferson County Health Department and approved on October 6, 1993 REHAB NO: 93-003-21 EXHIBIT "B" PREMISES LEGAL DESCRIPTION: The land referred to herein is located in the County of Jefferson, State of Washington, and described as follows : That portion of Government Lot 4 , Section 19 , Township 29 North, Range 1 East , W .M. , described as follows : Beginning at the Southwest corner of said Government Lot 4 ; thence North 26 degrees 27 ' East 850 . 50 feet to the Northeasterly corner of a tract conveyed by deed dated October 3 , 1950 and recorded in Volume 129 of Deeds , page 506 and the True Point of Beginning; thence South 37 degrees 15 ' West 497 .1 feet to the Northeasterly right-of-way line of the existing County Road; thence Northwesterly along said right-of-way line 52 feet ; thence North 37 degrees 15 ' East 240 .0 feet; thence North 52 degrees 45 ' West 135 . 0 feet ; thence North 37 degrees 15 ' East 258 feet more or less to the Northeasterly boundary of said tract ; Thence South 67 degrees 16 ' East 76 . 82 feet ; thence North 60 degrees East 20 . 42 feet ; thence South 75 degress 09 ' East 96 . 9 feet to intersect the Southwesterly line of the so called Burns Road; thence South 52 . 1 feet more or less to a point which is North 56 degrees 00 ' East 52 . 2 feet from the True Point of Beginning; thence South 56 degrees 00 ' West 52 . 2 feet to the True Point of Beginning; EXCEPT Burns Road. ---r�` - . ,,1 -11 -�-__ JEFFERSON COUNTY ,,ti PLANNING AND BUILDING DEPARTMENT �� ', Rl P.O. Box 1220 r" * Port Townsend, Washington 98368 �r TIP 1 .,t,,r , ,ti - �; m ` fit^ Planning(206)385-9140 _ NI a Building(206)385-9141 � " __, `'-may -=- '��-- FAX(206)385-9357 JEFFERSON COUNTY COURTHOUSE Craig Ward, Director EXHIBIT "C" PROMISSORY NOTE (Deferred Payment) NUMBER 93-003-21 Jefferson County, Washington FOR VALUE RECEIVED, undersigned owners) promises to pay to the order of Jefferson County, a political subdivision of the State of Washington, with its county seat in Port Townsend, Washington, hereinafter referred to as "BENEFICIARY," the sum of Fifteen Thousand Two Hundred Seventy-two and 60/100 Dollars ($15,272.60) in lawful money of the United States of America, which is the actual costs of Rehabilitation Measures and Loan Costs associated with the project. Interest shall be charged on this NOTE as set out below. The principal and interest shall be payable to Jefferson County at the office of Jefferson County Treasurer at Port Townsend, Washington, or such other place as BENEFICIARY may designate in writing. The principal amount of this NOTE shall be due and payable at such time as: (1) the grantor dies; (2) the grantor fails to maintain his or her permanent residence on the real property which secures this NOTE, which is set out in the premises attached hereto as Exhibit "B" and the deed of trust attached hereto as Exhibit "D," and by this reference incorporated herein; or, (3) the real property subject to the deed of trust, attached hereto as Exhibit "D," is transferred, sold, or conveyed, or any interest in the said property is transferred, sold, or conveyed. Where grantors are husband and wife at the time of execution of this NOTE, a transfer of the interest of one spouse to the other on dissolution of marriage or on death will not constitute a transfer of interest which makes this NOTE due and payable. INTEREST RATE: There will be a zero percent (0.0%) interest rate charge for the first five (5) years. An interest rate of four percent (4.0%) per annum compounded annually will be charged thereafter on the unpaid balance of the LOAN. The interest will be collected at such time as the principal amount of this NOTE is due and payable. PREPAYMENT OF NOTE: The grantor may pay the debt evidenced by this NOTE in full, or may pay any portion, without penalty at any time; however, any such payment will be credited to grantor's account as if received on the final day of the current interest period. If default be made in the payment of the indebtedness when due, then, at the option of the holder of this NOTE, the entire indebtedness shall thereafter bear interest at the maximum rate permitted by law. If this NOTE is placed in the hands of an attorney for collection after any default, whether suit is brought or not, OWNER promises to pay all costs of collection, including reasonable attorney's fees, and agrees that at the option of the holder the venue of any such suit may be laid in Jefferson County, Washington. Failure of BENEFICIARY to exercise all or any of its rights herein shall not constitute a waiver of any of such rights. Each and every party signing or endorsing this NOTE hereby waives presentment, demand, protest, and notice of non-payment hereof and binds himself as a principal and not as a surety. This NOTE is secured by a deed of trust of even date herewith granted by OWNER to Jefferson County. Beneficiary Representative: a001/111 / /O/!// 3 ��y. ._ ird[1 ���� Dated ! L Rio'are Wojt, ha rman ' . -fferson County Board of Commi -loners STATE OF WASHINGTON) 1 ss. County of Jefferson) On this day personally appeared before me V) j.Clorcii.e9 i 7co <_( to me known to be the individual described in and who executed the fegoing instru- ment, and acknowledged to me that he signed and sealed this said instrument as his free and voluntaryact and deed for the uses and purposes therein mentioned. P P Given under my hand and official seal this /l day of Q( 1993. NOTARY PUBLIC in and for the State Washington residing at Port T wn end My commission expires 1.oRNR L. DEcN Owner(s►: �nnJ�dV J Lon) Smith, Jr uyd ith Witt Smith STATE OF WASHINGTON) 1 ss. County of Jefferson) On this day personally appeared before me 3._k L Se+,'f".'Sv-. and J�,,c (.o. 3v...t-F"r-, , to me known to be the individuals described in and who executed the foregoing instrument, and acknowledged to me that they signed and sealed this said instrument as their free and voluntary act and deed for the uses and purposes therein mentioned. Given under my hand and official seal this `r- day of Oe ,ir L — 1993. L NOTARY PUBLIC in and for the State of Washington residing at Port own end. My commission expires Port_ `i 7 REFERENCE: 93-003-21 EXHIBIT D DEED OF TRUST This Deed of Trust, hereinafter referred to as Security Instrument, is made on // 'day of October, 1993. The Grantor, hereinafter referred to as Borrower, is JACK L. SMITH, JR., AND JUDITH WITT SMITH, husband and wife. The Trustee, hereinafter referred to as Trustee, is Charter Title Corporation. The Beneficiary, hereinafter referred to as Lender is Jefferson County, Washington, which is organized and existing under the laws of the State of Washington, and whose address is P. O. Box 1220, City of Port Townsend, County of Jefferson, State of Washington. Borrower owes Lender the principal sum of Fifteen Thousand Two Hundred Seventy Two and 60/100 Dollars ($15,272.60). This debt is evidenced by Borrower's note dated the same date as this Security Instrument, hereinafter referred to as Note, which provides for payment terms. This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions, and modifications; (b) the performance of Borrower's covenants and agreements under this Security Instrument and the Promissory Note executed on day of October, 1993, hereinafter referred to as Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in Jefferson County, Washington, to-wit: That portion of Government Lot 4, Section 19, Township 29 North, Range 1 East, W.M., described as follows: Beginning at the Southwest corner of said Government Lot 4; thence North 26 degrees 27' East 850.50 feet to the Northeasterly corner of a tract conveyed by deed dated October 3, 1950 and recorded in Volume 129 of Deeds, page 506 and the True Point of Beginning; thence South 37 degrees 15' West 497.1 feet to the Northeasterly right-of-way line of the existing County Road; thence Northwesterly along said right-of-way line 52 feet; thence North 37 degrees 15' East 240.0 feet; thence North 52 degrees 45' West 135.0 feet; thence North 37 degrees 15' East 258 feet more or less to the Northeasterly boundary of said tract; Thence South 67 degrees 16' East 76.82 feet; thence North 60 degrees East 20.42 feet; thence South 75 degrees 09' East 96.9 feet to intersect the Southwesterly line of the so called Burns Road; thence South 52.1 feet more or less to a point which is North 56 degrees 00' East 52.2 feet from the True Point of Beginning; thence South 56 degrees 00' West 52.2 feet to the True Point of Beginning; EXCEPT Burns Road. Together with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, rents royalties, mineral, oil and gas rights and profits, water rights and stock and all fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security instrument as the "Property". Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. Borrower and Lender covenant and agree as follows: 1 • • SECTION I PAYMENT OF PRINCIPAL AND INTEREST Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note. SECTION II APPLICATION OF PAYMENTS Unless applicable law provides otherwise, all payments received by Lender under Section I hereof shall be applied: first, to interest due; and last, to principal due. SECTION III CHARGES; LIENS Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property that may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations on time directly to the person owed payments. SECTION IV PRESERVATION AND MAINTENANCE OF PROPERTY; LEASEHOLDS Borrower shall not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. SECTION V INSPECTION Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice in writing at least twenty four hours prior to an inspection specifying reasonable cause for the inspection. SECTION VI BORROWER NOT RELEASED; FORBEARANCE BY LENDER NOT A WAIVER Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right 2 • or remedy. SECTION VII SUCCESSORS AND ASSIGNS BOUND; JOINT AND SEVERAL LIABILITY; CO-SIGNERS The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provision of Section XIII hereof. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co- signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear, or make any accommodations with regard to the terms of this Security instrument or the Note without that Borrower's consent. SECTION VIII LOAN CHARGES If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower that exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. SECTION IX LEGISLATION AFFECTING LENDER'S RIGHTS If enactment or expiration of applicable laws had the effect of rendering any provision of the Note or this Security Instrument unenforceable according to its terms, Lender, at its option, may require immediate payment in full of all sums secured by this Security Instrument and may invoke any remedies permitted by Section XV hereof. If Lender exercises this option, Lender shall take the steps specified in the second paragraph of Section XIII hereof. SECTION X NOTICES Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by written notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or 3 • any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. SECTION XI GOVERNING LAW; SEVERABILITY This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. SECTION XII BORROWER'S COPY Borrower shall be given one conformed copy of the Note and of this Security Instrument. SECTION XIII TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums as indicated by the Note and secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than thirty [30] days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. SECTION XIV BORROWER'S RIGHT TO REINSTATE If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) five [5] days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays the Lender all sums that then would be due under this Security Instrument and the Note has no acceleration occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys fees; and (d) takes such action as Lender may 4 reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Sections IX or XIII hereof. SECTION XV ACCELERATION; REMEDIES Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Sections IX or XIII hereof unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than thirty [30] days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property at public auction at a date not less than one hundred twenty [120] days in the future. The notice shall further inform Borrower of the right to reinstate after acceleration, the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale, and any other matters required to be included in the notice by applicable law. If the default is not cured on or before the date specified in the notice, Lender, at its option, may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give written notice to Trustee of the occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee and Lender shall take such action regarding notice of sale and shall give such notices to Borrower and to other persons as applicable law may require. After the time required by applicable law and after publication of the notice of sale, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of the Property for a period or periods permitted by applicable law by public announcement at the time and place fixed in the notice of sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to purchaser Trustee's deed conveying the Property any covenant or guaranty, express or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements therein. Trustee shall 1 app y the proceeds of the sale in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable Trustee's and attorneys fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it or to the clerk of the superior court of the county in which the sale took place. SECTION XVI LENDER IN POSSESSION 5 • Upon acceleration under Section XV hereof, or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. Any rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collections of rents, including, but not limited to receiver's fees, premiums on receiver's bonds, and reasonable attorneys' fees, and then to the sums secured by this Security Instrument. SECTION XVII RECONVEYANCE Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. SECTION XVIII SUBSTITUTE TRUSTEE In accordance with applicable law, Lender may from time to time appoint a successor trustee to any Trustee appointed hereunder who has ceased to act. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by the applicable law. SECTION XIX USE OF PROPERTY The Property is not used principally for agricultural or farming purposes. DATED this 7 day of October, 1993. PCs J CK L. SMITH, JR. JUDITH WITT SMITH STATE OF WASHINGTON ) ) ss. County of Jefferson ) On this day personally appeared before me Jack L. Smith, Jr. and Judith Witt Smith, husband and wife, to me known to be the individuals described in and who executed the foregoing instrument, 6 • and acknowledged to me that they signed and sealed this said instrument as their free and voluntary act and deed for the uses and purposes therein mentioned. Given under my hand and official seal this / day of October, 1993. NOTARY PUBLIC in and for the State of Washington, residing at 8/aq t 7. 7 Lou Smith • Kayak Port TownSKod PQ Box 1387 Port Townsend,WA 98368 Svptcinlber 30, 1993 Hoard of Commissioners Jefferson County PflRn= 12Th Port Townsend,WA 98368 Deal Sits: We are writing to inform you of our intentions to repay the Water Quality Loan agreement we are about to enter. We appreciate the availability of this loan program,without it we would not be able to repatrour existing system. . We expect to ntui t,elms runt by the cud of the summer of 1994. If our business continues to grow as we hope,we should be able to repay a minimum of 10%of the loan amount each year,if not sooner. Hopefully this will satisfy your concerns regarding repayment. Slncerely, L.11& Judy Smith