Tumwater Brewhouse

8/18/2019 Tumwater Brewhouse

1/10

AGENDA ITEM

NO

7a

MEETINGDATE

April 5

2 6

TO

City

Council

council@ci

tumwater

wa

us

FROM

Heidi

Behrends

Cerniwey Assistant City

Administrator

Brewery Project

Manager

hcerniwey@ci tumwater

wa

us

SUBJECT

Letter

of Agreement wth

Falls

Development toAcquire

Old

Brewhouse

and

Trails

Attachments

A

Letter o

Agreement

between

the

City

o Tumwater

and Falls

Development LLC for

Tumwater

Historic Brewery Site Development

Project

2

Recommended

Action

Authorize

the

Mayor to

sign the

Letter

of Agreement in

substantially similar

form

as approved by

city

attorney

to transfer

ownership

of

Old Brewhouse

building

necessary

easements

for access

utilities construction

and

trails

to

the

City and advance

adaptive

reuse

of the

historic

brewery

site

3

Background

The Old Brewhouse

is a community icon and historic landmark

The

property

was

placed

on

the

NationalRegister

of

Historic Places in 978 The structure

has

been on

Washington

Trust

for

Historic Preservation Watch List

snce

2 4 Revitalizing

this

asse t

has been

a City

and community priority for

severayears

Over the years the City has taken a number of actions

designed to protect

the

Old Brewhouse

These have included

Comprehensive Plan

goals and

policies

to

protect

designated

national

landmarks

and

encourage

the

development

of the

Tumwater

Historic Commercial Zoning District

In the

mid 99 s

the

City

adopted special

zoning

and shoreline

designation for the

Old Brewhouse

to

encourage its preservation and redevelopment A

specific

City goal

states

preserve historic old brewhouse

and restoration is in the

Capital

Facility

Plan

Protecting

and restoring the structure for future generations is in the

public

s

best

interest Redevelopment

of

the historic

site

will benefit the public

preserve

historic structures

provdepubic

access

create opportunity for


2/10

economc

development

tourism

cutura preservaion envronmena

cleanup

improve water

quality

and protect habitat

and

critical

areas

Creating public

access

through

construction of pedestrian

bicycle

trails

and

boardwalks

will

enhance

the regional trail network and provide recreational

benefits to

the

community

4

Alternatives

Renegotiate the agreementwith FallsDevelopment LLC

5

Fiscal

Notes

Acquisition of the

Old

Brewhouse commits

the

City to rehabilitation of

the

structurewthan

esimated

cos o 5 6 million dollars for full

use

Foundation

grants State

Heritage

Program

State Community Capital

Project

funding

CERB

private

donations

and

tax credits

are

potential

sources of

funding Operations and maintenance would

be

additional


3/10

LETTER

OFAGREEMENT

BETWEEN THE CITY OF TUMWATERAND

FALLS

DEVELOPMENT

LLC

FORTUMWATERHISTORIC BREWERY SITE REDEVELOPMENT PROJECT

THIS

LETTER

OF

UNDERSTANDING

Letter is

made

by

and

between the

City

ofTumwater hereinafter

the City and Falls Development LL C a corporation of limited partnership organized under the laws of

the State ofWashington hereinafter Falls Development

This Letter is by and between the

City

of Tumwater

and

Fal ls Development hereinafter the

Letter

relates to

the

Tumwater Historic Brewery

Site

Redevelopment

project

hereinafter the

Project

which is located at 24 Custer Way SW

and

3223 Boston Street SW hereinafter the

Property

The

O ld Brewhouse is a

community

icon and a

historical

landmark located

on

the Property

Protecting

and

restoring

the

structure

for future generations is

in

the

public

s best

interest The

Old Brewhouse is the six story Italianate brick tower with sandstone trim arched windows

and

copper roof that

sits

at the base of the Deschutes River

The

historic tower

built

in 9 6

and

served as

the

center of gravity brewing operation for Olympia

Beer

until Prohibition in

9 6

The

Warehouse

Building refers collectively

to

several connected structures

on

the lower

portion of the historic site

including the

Cellar constructed

in

9 5 with an addition

in

9 7

directly

south

of the O ld Brewhouse the long two story warehouse built around 945 and ke g

house also built in 9 7 to the east on the Property

Redevelopment of the historic site wll

benefit the

public preserve historic structures provide

public

access

create opportunity

for economic development tourism cultural preservation

environmental

cleanup

improve

water

quality and protect habitat and

critical areas

Creating public

access through construction

of

pedestrian bicycle trails and boardwalks with

design

and scale that

are

appropriate tothe site and functionwll enhance the regional trail

network and

provide recreational benefits

to the community

The parties agree to

the

following

The most

efficient

economic development of the

Property

depends upon numerous

factors

such as

market

orientation and

demand

interest

rates

competitionand

similar factors

and

generally

itwill

be

most economically

beneficial

to

the

ultimate tenants and purchasers of

the

Property to

have

the

rate

of development determined by

the Fal ls

Development

However

the

parties

also

acknowedge that

because

the Proectwll

be phased

certain amenities associated

with

the

Project

must

be available to all phases of

the

Project in order to address

health

safety

and

welfare of the public Improvements associatedwth the

Project

shall

be addressed in

future agreements betweenthe parties

On

or

before April

3 2 6

Fal ls

Development will deliver to the

City

a statutory warranty

deed

that

creates a separate

land

parcel

which

includes

the O ld

Brewhouse

and

necessary easements

for site access and utilities toserve the Old Brewhouse A

legal description is

attached as Exhibit

A

and

Exhibit B Al

applicable

grants

and

historic taxcredit

incentives

for

rehabilitationwll

belong to the

City

On or

before April 3 2 6 Fal ls Development will deliver

a statutory warranty deed to

provide

necessary

easements

for

a

Public Trail

including but not limited to construction and

maintenance of the trails and boardwalk through the Property to the

City A

legal description is

attached

as Exhibit C and Exhibit D that describes

the

entire trail Said

easement

is 25 feet in

Draft

Letter

3 29 2 6


4/10

width If requested

by

theCity Fal ls Development shall provide within 3 days of request a

pedestrian easement

connecting the

tower

with the public trail and boardwalk

4

The

City

will provide a letter to

Falls

Development outlining a commitment to rehabilitate

the

Old Brewhouse and todesign and

construct

Public

Trails

and boardwalk that facilitate public

access to

the Property

5

The City

will

process

payment

of

4

5

to

Fal ls

Development

for

compensation

of

public trail

easement wthin

6

days after the deed transfer is recorded

6

The

City

and

Fal ls

Development will negotiate future agreement s to

share proportionate

costs

of

construction

for

the utilities and access

road necessary to

rehabilitate the O ld

Brewhouse

The City

and Fal ls Development agree in concept that

future

agreements

may

include

provisions

providing

that

if

Fal ls

Development

files

a complete

building

permit application

for the

Warehouse Building

by January

2 9 and

obtains a

certificate

of occupancy

for

the

Warehouse

Building by January

2 2 the

Citywill reimburse

up to

one

million dollars

for infrastructure

improvements

either as a

direct

reimbursement to Falls

Development based on

actual

costs or

as

otherwse negotiated betweenthe

parties

Infrastructure could

include

water

sewer

stormwater

or

access

road

improvements as

determined by

the City This payment shall be credited against the City s proportionate costs

7

The

City

and

Fal ls Development

will negotiate

parking

as

necessary

for

the us e

of the

O ld

Brewhouse

tower

and other public

facilities

in a future

agreement

8

Fal ls

Development will grant

the

City construction easements

of

a minimum of feet

in

circumference of the construction

site

9

The

City and Fal ls Development agree to work together to facilitate construction of

a

structure

adjacent tothe Old Brewhouse that meets

all

applicable federal state and local laws and

reguations

The

City

will explore funding options

for

future construction of a pedestrian bridge consistent

with City of Tumwater Parks Open Space Plan

that extends

from the Property to Tumwater

Historical

Park and

agrees

toworkwth

Falls

Development in a future agreement to provide

access topublic restrooms at

the Project site

The

City

agrees

in

concept

to

allow

Fal ls

Development

the

first

option to

lease

the

O ld

Brewhouse

structure to provide

a

complimentary use consistent with

adaptive reuse

of other

buildings on the Property Fal ls

Development acknowledges that funding constraints

or

circumstances may not support this option

2 At any

point

before legal transfer of

the

title

and

deed to the O ld Brewhouse are satisfied items

2

and

3

above

Falls Development reserves the right to rescind

all

terms

of

this agreement

wth

no

recourse

from the

City

3 Within

6

days of the payment pursuant toitem 5 above Falls

Developmentwll

contribute the

sumof 4 5 toward renovation

of

the

tower

4

The City and Fal ls Development will negotiate future agreements to address items not

addressed in this Letter

The

parties

agree

tothis

Letter and that it is based on the

best

information

available at

the time

of

signature The

parties

are committed to working in good faith and collaboratively to

achieve

the

goals

The

parties further agree that no

agreement is

made beyondwhat is included in this

document

IN

WITNESS WHEREOF

the

parties hereto

have caused

this Letter

to

be executed

as

of

the

datesset

forth below

Draft

Letter

3 29 2 6


5/10

OWNER

FALLS

DEVELOPMENT

CITY OF

TUMWATER

By

Its

ATTEST

By

City Clerk

APPROVED AS

TO

FORM

By

CityAttorney

Add

notary

blocks

Draft

Letter

3 29 2 6

By

Its Mayor


6/10

THAT

PORTION

OF

THE SOUTHWEST QUARTER O F

THE

NORTHWEST QUARTER OF SECTION

26

TOWNSHIP

8

NORTH

RANGE 2

WEST

W M THURSTON COUNTY WASHINGTON ALSO BEING A

PORTION

OF

TRACTS

5

AND

7 OFTHE SUPPLEMENTAL PLAT OF

CROSBY

S PLAT AS

RECORDED

IN

VOLUME OF PLATS PAGE 5 RECORDS OF

THURSTON

COUNTY WASHINGTON DESCRIBED AS

FOLLOWS

COMMENCING AT THE NORTHEAST

CORNER OF THE

FOLLOWING

DESCRIBED PARCEL

BLOCK 7 PLAT O F EASTTUMWATER AS

RECORDED

IN VOLUME

2 OF

PLATS PAGE 8 RECORDS

OF

THURSTON COUNTY WASHINGTON TOGETHER WITH THE VACATED SOUTH 5 FEET OF DE

SOTO

STREET

ADJOINING

SAID

BLOCK

ON THE NORTH

FROM

WHICH

POINT

THE

SOUTHEAST

CORNER THEREOF BEARS 5 42

W

THENCE N 7 56 25 67 54

FEET TO THE TRUE

POINT OF BEGINNING OFTHE

HEREIN

DESCRIBED

PROPERTY

THENCE N 4 55 W 83 44 FEET

THENCE

N89 25 4 94 3

FEET

THENCE S 4 55

83 44

FEET

THENCE S89 25 4 W 94 3 FEET TO THE

TRUE POINT

OF BEGINNING


7/10

SCALE

IN

FEET

2

4

8

EXHIBIT

B

TRUE

POINT

OF BEGINNING

DE SOTO

STREET

BLOCK

7

EAST

TUMWATER

VOL

2

PLATS PG

8

C

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8/10

EXHIBIT C

ANEASEMENT OVER UNDER ANDACROSS THAT PORTION

OF

THE SOUTHWEST QUARTER OF THE

NORTHWEST

QUARTER

THE

SOUTHEAST

QUARTER

OF

THE

NORTHWEST

QUARTER

AND

THE

NORTHEAST QUARTER OF THE NORTHWESTQUARTER ALL IN

SECTION

26 ANDTHATPORTION OF THE

SOUTHEAST QUARTER OF THE

SOUTHWEST

QUARTER

AND

THE SOUTHWEST QUARTER OF THE

SOUTHEAST QUARTER OF SECTION 23 ALL

IN TOWNSHIP

8 NORTH RANGE 2 WEST

W

M

THURSTON

COUNTY

WASHINGTON ALSO BEING PORTIONS OF THE PLAT OF CROSBY

S

DONATION LAND CLAIM AS

RECORDED IN

VOLUME

2 OF PLATS PAGE 8 THE PLAT OF

TUMWATER

AS RECORDED IN

VOLUME

2 OF

PLATS PAGE 8 THE SUPPLEMENTAL

PLAT

OF C CROSBY S DONATION LAND CLAIM AS RECORDED IN

VOLUME OF PLATS PAGE 5 LACKEY S

REPLAT AS RECORDED IN VOLUME

OF

PLATS PAGE 42

THE PLAT OF OLYMPIAHIGHLANDS AS RECORDED IN

VOLUME 7

OF PLATS PAGE

3

THE PLAT OF

SWAN

S ADDITION

AS

RECORDED IN VOLUME

OF PLATS PAGE 37 THE PLAT OFWILDWOODPARK

AS

RECORDED IN

VOLUME

9 OF PLATS

PAGE

39 ALL RECORDS OF

THURSTON

COUNTY WASHINGTON

SAID

EASEMENT

BEING

25

FEET

IN

WIDTH

HAVING

2

5

FEET ON

EACH

SIDE

OF

THE FOLLOWING

DESCRIBED

CENTERLINE

COMMENCING AT THE NORTHEAST

CORNER

OF THE

FOLLOWING

DESCRIBED PARCEL

BLOCK 7 PLAT OF EASTTUMWATERAS RECORDED IN VOLUME

2

OF PLATS PAGE 8 RECORDS

OF

THURSTON

COUNTY

WASHINGTON

TOGETHER WITH THE

VACATED SOUTH 5

FEET OF DE

SOTO STREET ADJOININGSAID BLOCK ON THE

NORTH

FROM WHICH

POINT THE

SOUTHEAST

CORNER THEREOF

BEARS S 42

W

THENCE

N 3 4

W 62

6

FEET TO THE TRUE

POINT

OF BEGINNINGOF THE HEREIN DESCRIBED

CENTERLINE

THENCE S2

34

E

84

8 FEET

TO

THE BEGINNING

OF

A 75 FOOT

RADIUS

CURVE TO THE LEFT

THENCE

SOUTHEASTERLY

THROUGH

A

CENTRAL

ANGLE OF 69

2

AN

ARC DISTANCE OF

9

78 FEET

THENCE

N89

38

26 E 676

FEET TO THE BEGINNING OF A 85

6

FOOT RADIUS CURVE TO THE

LEFT

THENCE NORTHEASTERLY

THROUGH

A CENTRAL ANGLE OF 49 9 AN ARC

DISTANCE

OF 45 83

FEET

THENCE N4 48

5

E 74 FEET

THENCE

N43 3 27 E

94 9

FEET

THENCE N35 6 22 E 45 7 FEET


THENCE N48 52 39 E

25

6 FEET

THENCE N5 4 56

E

4 64

FEET

THENCE

N5 3 2 E 75 8 FEET


THENCE

N52 49 36 E 29 45 FEET TO

THE

BEGINNING

OF A 52

59

FOOT RADIUS CURVE

TO

THE

LEFT

THENCE

NORTHERLY THROUGH A CENTRAL

ANGLE

OF 38 39 2 AN ARC DISTANCE OF

35 88 FEET

THENCE N 4

5

E 72 25 FEET

THENCE

N 5 6 36 E 3 69 FEET

THENCE N 4 28 W48 95 FEET


9/10

THENCE

N2

37

46

W

84

FEET

THENCE N26 49 7 W

229

FEET

THENCE N 8 7 3

W

47 9

FEET

THENCE

N34

39 W

42

4 FEET

THENCE N44

59 22 W 57 8 FEET

THENCE

N4

2

6

W

68

FEET

THENCE

N36 44 59

W

52 8

FEET

THENCE N36 24

2 W 47

35

FEET

THENCE

N48

3

4

W 53 26 FEET

THENCE N53 24 6

W

24 67 FEET

THENCE

N56 52

47

24 39 FEET

THENCE

N5 34 24

99 39

FEET

THENCE

N49

48

32

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FEET

THENCE

N5 4 2 52 69 FEET TO

THE

BEGINNING

OF A 336

45 FOOT

RADIUS CURVE TO THE

LEFT

THENCE NORTHEASTERLY

THROUGH A

CENTRAL ANGLE OF

3 29 57 AN

ARC DISTANCE OF 3 4

87

FEET

THENCE

N38

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33

5

FEET

THENCE

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8

FEET

THENCE

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THENCE

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THENCE

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7

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FEETTO THE

BEGINNING

OF A 5 FOOT RADIUS CURVE

TO THE

RIGHT

THENCE NORTHEASTERLY EASTERLY AND SOUTHEASTERLY THROUGH A CENTRAL ANGLE

OF

82 3 32

AN

ARC DISTANCE OF 7

2

FEET

THENCE S6

5 E 85 3 FEET TO

THE TERMINUS OF THE

HEREIN

DESCRIBED CENTERLINE


10/10

LINE

NO

BEARING

DISTANCE

9

EXHIBIT

D

N 3

4

62 6

L

N 48 8 34

78 77

L2

5

2

34

84

8

L 3

N

4

5

72

25

L3 N

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E

676 CURVENO

DELTA RADIUS

LENGTH

L4

N

4 48

5

74

Cl

69 2

75

9 78

L5

N

43

3 27

949

C2

45 9

85

6 45 83

L6

N

35 6 22

45 7

C3

38 39

2 52

59 35

88

L7

N

49 33 8

46 44

C4

3 29 57

336

45

3 4

87

47

35

N

48

N 48 3 4

W

C5

82

3 32 5 7 2

L8

52 39

25 6

9

N 5 4 56

4 64

L

N

5

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75 8

L

N 48 8 34

78 77

L 2

N

52

49

36

29 45

L 3

N

4

5

72

25

L 4

N

5

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3 69

L 5 N

4

28 W

48 95

L 6

N

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46

W

84

L 7

N

26 49

7

W

229

L 8

N 8 7

3 W

47 9

L 9

N

34 39 W 42 4

L2

N

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57 8

L2

N

4 2 6

W

68

L22

N 36

44

59

W

52 8

L23

N 3624 2 W 47

35

L24

N 48 3 4

W 53

26

L25

N

53

24 6 W

24 67

L26 N

56 5247

24

39

L27 N 5

3424

99 39

L28 N

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98 22

L29 N 5 42

52 69

L3

N 38 36 38

33 5

L3

N

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L32

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L33

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L34

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L35

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L36

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L37

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TRUE

POINT OF

BEGINNING

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Tumwater Brewhouse