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Josh Peters
From: William G. Funke [wgfunke@olypen.com]
Sent: Thursday, December 12, 2002 8:44 AM
To: AI Scalf
Cc: Josh Peters
Subject: Fw: Newsletter
AI,
Hello again. Good to see you yesterday. AI, I must say you look no worse for wear considering this past year.
I understand Josh Peters will soon submit his recommendations to you on the Port Ludlow Marina expansion and further that a
"modification" of one of the several options may be approved.
If a final approved plan is, in fact, a modification, does this open the EIS for further public discussion or comment?
In the following (today's) Port Ludlow Bulletin ( Ralph Thomas gone internet) you will find the comments "Reviewing the
Marina Lease....." by Randall Shelley shed further light on the Marina operations. I believe Shelley is a retired attorney.
Please add his comments to my previous complaints and position that "in addition to not meeting the specific EIS NO no
piecemeal requirements of the Port Ludlow MPR Ordinances, PLA's privatizing the Marina justifies terminating this
particular Marina EIS process". Mr. Shelley's observations further cloud the Marina Use picture.
While the second article by Ron Null in today's Bulletin may only be a political prod at Wendi Wrinkle, it does brings up the
matter of the current build out of more Point Ludlow townhouses and whether this development complies with Shoreline
requirements. I trust your department in current with this situation.
As you will recall, during their many PL Community Hallmark Resort presentations Messrs. Greg McCarry and Mike Derrig,
among other promises in exchange for community support in the ordinance development process, stressed their commitment
not to build out the platted Marina area townhouses except for the one five-town house unit completed several months ago plus
four individual houses to be located west of the marina office.
This ORM commitment was also considered during the Port Ludlow Ordinance Mediation process in the calculations for the
maximum build out permitted in the Resort Area under the MPR ordinances.
Does this disregard of ORM's stated plans for the number of Ludlow Point townhouses to be built change any of the EIS and/or
Shoreline requirements?
Note: You might also recall David Alverez recommendations to incorporate the many ORM commitments in the Development
Agreement Recitals, circumvented by ORM with the help of the "then" Village Council officers.
Regards,
Bill Funke
----- Original Message -----
From: Port Ludlow Bulletin
To: wgfunke@olypen.com
Sent: Wednesday, December 11,20026:29 PM
Subject: Newsletter
I laD
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s
12/12/02
. eNe~sle!ter 3
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Date: December 12th, 2002
Port Ludlow Bulletin
Reviewing the Marina Lease
What Will Be Left of the Marina
By Randall Shelley
I have come into possession of two leases for the marina, the
latter of which will be of interest to the residents of Port Ludlow.
My source---well, for now let's just call this person "Deep Keel" (I
protect my sources!)
On 2/1/87 Pope Resources signed a 30 year lease with the State of
Washington at $7,847 per annum, with annual increases, for
certain land which the state owned below extreme low tide for use
as a marina. The state reserved the right to renegotiate if assigned
to a new tenant.
On 8/07/01 Randall J. Verrue, on behalf of PLA, signed a twelve
year renegotiated replacement lease with the State at $48,610.62
per annum, with yearly increases, for the marina property. There is
a tenant option to renew for one additional term of four years at
which time the "...rent shall be recalculated..." - whatever that
means. This term if exercised will cause the new lease to expire on
8/6/2017 which is roughly when the old lease would have expired,
which is known as the "Termination Date". For those of you
planning to be alive then, it now gets interesting.
Paragraph 7.4 of the new lease provides:
"Tenant-Owned Improvements shall be removed by Tenant by the
Termination Date unless State notifies Tenant that the Tenant-
Owned Improvements may remain..."
Improvements are defined in the lease as "...pilings, fuel dock,
floats and ramp...". In other words, the State has the option to
return the land to its pre-marina state or continue with a marina.
(If the latter, then the prior tenant would have a "preference right"
to re-lease.) I suspect the State will elect to continue with a
marina, but there are no guarantees.
The new lease provides that if "Proceedings are commenced by or
against Tenant [PLA] under any bankruptcy act..." this can be an
"Event of Default" leading to termination of the marina lease.
The new lease also provides that all subleases must meet ten
specified requirements, designated (a) through (j), if it wishes to
sublet all or any part of the marina. These requirements
specifically apply to "routine subleasing of moorage slips" which
means slip rentals by people like you and me who have boats in
the marina. Those requirements include:
12/12/02
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Contents
Reviewing the Marina Lease
PLVC Alerted to Shoreline
Permit Status
I ~ --"'-1
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Forward this letter to a friend
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Forty words for $5, plus $.15 per
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Send ad and check to address
below.
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Conveniently located near town
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. eNewsle~ter 3
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"9.4 (c) The term of the sublease (including any period
of time covered by a renewal option) shall end before
the Termination Date of the initial Term or any renewal
term;
9.4 (d) The sublease shall terminate if this Lease
terminates, whether upon expiration of the Term,
failure to exercise an option to renew, cancellation by
State, surrender or for any other reason;
9.4 (e) The subtenant shall receive and acknowledge
receipt of a copy of this Lease;
9.4 (f) The sublease shall prohibit the prepayment to
Tenant by the subtenant of more than one month's
rent." [This provision is obviously for the protection of
the individual slip renter in the event of a bankruptcy
of the master tenant, in this case PLA. This
requirement was not in the original Pope lease.]
The following is a discussion of each point so that you can decide
whether PLA has met and is meeting its obligations.
Requirement (c) and (d): The "The Club" offered "...guaranteed
moorage privileges at the marina for 30 years..." Quite some
guarantee when their lease runs out in less than half that time.
Requirement (e): PLA never provided me a copy of the "Lease"-
though I've had boats in the marina for years. How about you?
Requirement (f): For 2002 PLA offered a 6% discount for payment
of moorage for the year in advance. Many of us paid in advance
because we did not know it is prohibited by the master lease PLA
has with the State. By letter dated December 1, 2002 PLA is again
offering to give a 6% discount for prepayment for the year 2003.
Obviously, PLA violated (past tense) 9.4 (c) and (d) and is
(present tense) continuing to violate 9.4 (e) and (f). The
consequences are discussed in chapter 14 of the new lease entitled
"DEFAULTS AND REMEDIES". These violations mean that PLA is
currently in "default" and the State may upon notice "...terminate
this Lease and remove Tenant [PLA] by summary proceedings..," if
PLA "...fails to cure the default..."
What does all this mean?
1. There is no guarantee we will have a marina in 15
years.
2. If the marina goes away, the value of our property
will diminish, whether or not we own a boat, since boat
owners will have much less interest in buying in our
community.
3. If the marina does not go away, it may end up being
controlled by an entity which has no other ties to our
community.
4. As time passes, the marina will become less
valuable to anvone who mav wish to Durchase it from
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PLA.
5. If PLA sells condominium slips, there is no
guarantee a purchaser will have them long no matter
what PLA promises or what is paid.
6. Since the master lease prohibits payment of more
than one month's rent, if you have already paid, you
may wish to ask for 11/12 of your money back and pay
by the month.
7. Keep a copy of this article so you can re-read it
before you make a decision concerning any future PLA
offering like "The Club".
8. If you bought from PLA after it took over and were
not advised of the above, you will have to decide
whether, from your perspective, there was a failure to
disclose a material fact. (The Pope marina lease had
different language but some of the same effects.)
In light of "The Club" fiasco and now this fiasco the question must
be asked, is PLA up to the task of running their operation in
conformance with the terms of the various leases and contracts
which obligate it and the law of the State of Washington? I'm not
,~f"lc::C?~E<:lg~t:J~~~Y~~I~fv1PT9P.m
PLVC Alerted to Shoreline Permit Status
Subject: Pope Resources, Shoreline Permit
The following letter was sent by Council-member Ron Null to the
Port Ludlow Village Council:
All PLVC Board Members;
I have just had occasion to review the Jefferson County permit
issued
to Pope Resources on May 11, 1993 ENTITLED; SHORELINE
SUBSTANTIAL
DEVELOPMENT PERMIT, WASHINGTON STATE SHORELINE
MANAGEMENT ACT (RCW
90.58).
Such a permit is required for development within a certain distance
of
the shoreline. This permit was for the development of the Heron
Beach
Inn, certain residential units, and related facilities. It is issued
to Pope Resources but is also binding on any successor in interest
(PLA).
This permit contains 51 conditions that were/are to be fulfilled. It
appears not all of the conditions have been completed. Jefferson
County is the enforcing agency
I suggest the Village Council Board formally request our new
12/12/02
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CommisSioner have the appropriate county staff make a detailed
review
of which conditions have not been fulfilled, report their findings to
her and to us and, of course, follow-up to see that the conditions
are
completed.
Ron Null
Tell us what you think.
Coldwell Banker and
Kathy Larkin (klarkin@olypen.com)
are roud to support the Newsletter.
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Page 5 of 5
Our Mailing Address:
Ralph Thomas
103 Cascade Lane
Port Ludlow, WA 98365
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12/12/02
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