AN ORDINANCE related to a settlement agreement between the City of Seattle and Building 11 Investors, LLC; authorizing the Superintendent of Parks and Recreation to implement the terms of the settlement agreement; increasing appropriations in connection thereto; making a cash transfer between various city funds; and ratifying and confirming certain prior acts, all by a 3/4 vote of the City Council.

WHEREAS, on or about February 24, 2009, pursuant to Ordinance No. 122814, the City of Seattle ("City") and Building 11 Investors LLC ("LLC") entered into a Lease for the renovation, development and operation of Building 11 at Magnuson Park; and

WHEREAS, certain disagreements arose between the City and the LLC concerning the Lease that resulted in litigation between them; and

WHEREAS, the City and the LLC have agreed to settle that litigation in a manner that will, among other things, terminate the leasehold interest of the LLC; compensate the LLC for past work on the project, including capital improvements, professional services, and permits; compensate the LLC for future construction work required for code compliance and subsequent planned operation of Building 11 by Parks and Recreation; and resolve all differences between the LLC and the City relating to Building 11; NOW, THEREFORE

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section: 1. In order to pay for necessary costs and expenses incurred or to be incurred in 2013 for the purpose of settlement of litigation between Building 11 Investors, LLC and the City (the "Settlement"), but for which insufficient appropriations were made due to causes that could not reasonably have been foreseen at the making of the 2013 budget, appropriations for the following items in the 2013 budget are increased from the funds shown, as follows:

Item	Fund	Department	Budget Control Level	Amount
1.1	Parks and Recreation Fund (10200)	Department of Parks and Recreation (DPR)	Policy Direction and Leadership (K390B)	$7,250,000
Total				$7,250,000

Section 2. To support the appropriation for item 1.1, cash is hereby transferred as shown in the following table:

Item	Fund	Amount	Transferred (In / Out)
2.1	Parks and Recreation Fund (10200)	$5,850,000	Transferred In
	Emergency Subfund (00185)	($5,850,000)	Transferred Out
Total		$0

Section 3. The Superintendent of Parks and Recreation is authorized to implement the Settlement terms negotiated and determined by the City Attorney to be in the best interest of the City, including terminating the Lease between the City and the LLC upon completion of the remaining construction work to be performed by the LLC.

Section 4. Any act consistent with the authority taken after passage but prior to the effective date of this ordinance is ratified and confirmed.

Section 5. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of ________________________, 2013, and signed by me in open session in authentication of its passage this

_____ day of ___________________, 2013.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2013.

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of __________________________, 2013.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Eric Friedli DPR Building 11 Settlement Agreement ORD January 28, 2013 Version #1