ORDINANCE _________________

AN ORDINANCE vacating a portion of the alley in Block 5, Heirs of Sarah A. Bell's Addition to the City of Seattle, on the petition of Seventh & Olive, Inc. and Stewart Avenue Properties and accepting easements for traffic control devices and alley access, in connection therein, (Clerk File 302587).

WHEREAS, there has been filed with the City Council the petition of Seventh & Olive and Stewart Avenue Properties (Clerk File 302587), for the vacation of a portion of the alley in Block 5, Heirs of Sarah A. Bell, as herein fully described; and

WHEREAS, following a public hearing on said petition, which commenced on October 20th, 1998, said petition was conditionally granted; and

WHEREAS, pursuant to Section 35.79.030, RCW, Seattle Municipal Code Chapter 15.62, the petitioner has paid $125,000 to the City, which amount is one-half the appraised value of the property approved for vacation, according to an appraisal obtained by the Director of the Seattle Department of Transportation; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. That

The portion of the alley described as the north 119 feet of the alley in Block 5, Heirs of Sarah A. Bell's Addition to the City of Seattle, as recorded in Volume 1 of Plats, page 103, Records of King County, Washington, being the alley in the block bounded by Olive Street, Seventh Avenue, Stewart Street, and Eighth Avenue

be and the same are hereby vacated; also RESERVING to the City of Seattle the right to make all necessary slopes for cuts or fills upon the above-described property in the reasonable original grading of any rights-of-way abutting upon said property after said vacation.

Section 2. That the easement for traffic control devices, Recording Number 20010105001610, attached hereto as Attachment A, is hereby accepted.

Section 3. That the easement for alley access, Recording Number 20020325002050, copy attached hereto as Attachment B, guaranteeing public access to the vacated alley is hereby accepted.

Section 4. That the City Clerk is hereby authorized and directed to file a copy of this Ordinance at the King County Records and Elections Division, and to deliver copies of the same to the Director of the Department of Design, Construction and Land Use, and to the King County Assessor's Office.

Section 5. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2002, and signed by me in open session in authentication of its passage this _____ day of __________, 2002.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2002.

_________________________________

Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2002.

____________________________________

City Clerk

(Seal)

MoiraGray/mg

Block5VacOrd

9/11/02

version #1

1 Reference Number of Related Document: N/A

Grantor(s): 1700 Seventh L.P., Housing Resources Group, Eighth & Stewart Limited Partnership

Grantee(s): City of Seattle

Abbreviated Legal Description: Lots 5-8, Block 5, Sarah A. Bell's Addition to the City of Seattle, Vol. 1 of Plats, Page 103, King County, Washington

Additional Legal Description is on Exhibits A, B and C of Document

Assessor's Property Tax Parcel or Account No.: 065900-0255-06, 065900-0265-04, 065900-0235-01

ALLEY ACCESS EASEMENT

THIS ALLEY ACCESS EASEMENT ("Easement"), dated as of _______________, 2001, is executed by 1700 Seventh L.P., a Washington limited partnership ("1700 Seventh"), HOUSING RESOURCES GROUP, a Washington nonprofit corporation ("HRG"), and EIGHTH & STEWART LIMITED PARTNERSHIP, a Washington limited partnership ("Eighth & Stewart") (together, "Grantors").

RECITALS

A. 1700 Seventh is the owner of the real property legally described on Exhibit A attached ("Office Parcel"), and HRG is the owner, and Eighth & Stewart is the lessee, of the real property legally described on Exhibit B attached ("Housing Parcel") (together, the "Property").

B. 1700 Seventh and HRG filed a petition (C.F. 302587) with the City of Seattle ("City") pursuant to RCW Ch. 35.79 and Seattle Municipal Code Ch. 15.62 and the City Street Vacation Policies for the vacation of that portion of the alley abutting the Property and legally described on Exhibit C attached ("Vacated Alley").

C. Following a public hearing on the vacation, on October 26, 1998, the petition was granted, with conditions, by the City Council.

D. The City Council imposed the condition that alley access to the building commonly known as the 720 Olive Building located on Lots 9, 10, 11 and 12 of Block 5, Sarah A. Bell's Addition to the City of Seattle ("720 Olive Building") and to the public shall be preserved ("Alley Access Condition").

E. Grantors are recording this Easement to satisfy the Alley Access Condition.

AGREEMENTS

NOW, THEREFORE, in consideration of the vacation of the Vacated Alley, Grantors hereby covenant, bargain and agree on behalf of themselves and their successors and assigns as follows:

1. Owners shall preserve access to the 720 Olive Building from, and shall preserve public access over, the Vacated Alley, 24 hours per day, 7 days per week. Unavoidable closures for ordinary maintenance and repair of the alley surface, underground utilities and the improvements adjoining the alley shall be coordinated with, and approved by, the City and all abutting property owners.

2. This Easement shall be recorded in the record of King County and shall be deemed to attach to and run with the Property and shall be binding upon Grantors, their successors and assigns.

3. This Easement may be amended or modified by agreement between Grantors and the City; provided such amended agreement shall be approved by the legislative authority of the City by ordinance.

4. This Easement is made for the benefit of the City and the public, and the City may institute and prosecute any proceeding at law or in equity to enforce this Easement.

5. In the event any covenant or condition contained in this Easement or any portion thereof is invalid or void, such invalidity or voidness shall in no way affect any other covenant, condition or restriction contained in this Easement.

Dated this _____ day of __________, 2001.

GRANTORS:

1700 SEVENTH L.P.

By: CLISE VENTURE ONE LLC,

a Washington limited liability

company, its general partner

By: CLISE PROPERTIES, INC., its Member

By:

Name:

Title:

HOUSING RESOURCES GROUP

By:

Name:

Title:

EIGHTH & STEWART LIMITED PARTNERSHIP

By: Housing Resources Group,

a Washington nonprofit corporation,

its general partner

By:

Name:

Title:

STATE OF WASHINGTON )

) ss.

COUNTY OF KING )

I certify that I know or have satisfactory evidence that ____________________ is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the __________ of CLISE PROPERTIES, INC., a Washington corporation, the member of CLISE VENTURE ONE LLC., a Washington limited liability company which is the general partner of 1700 SEVENTH L.P., the limited partnership that executed the within and foregoing instrument, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.

Dated this _____ day of __________, 2001.

(print or type name)

NOTARY PUBLIC in and for the State of Washington, residing at

My Commission expires:

STATE OF WASHINGTON )

) ss.

COUNTY OF KING )

I certify that I know or have satisfactory evidence that ____________________ is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the __________ of HOUSING RESOURCES GROUP, a corporation, to be the free and voluntary act of such company for the uses and purposes mentioned in the instrument.

Dated this _____ day of __________, 2001.

(print or type name)

NOTARY PUBLIC in and for the State of Washington, residing at

My Commission expires:

[Seal or Stamp]

STATE OF WASHINGTON )

) ss.

COUNTY OF KING )

I certify that I know or have satisfactory evidence that ____________________ is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the __________ of HOUSING RESOURCES GROUP, a corporation, which is a General Partner of EIGHTH & STEWART LIMITED PARTNERSHIP, the limited partnership that executed the within and foregoing instrument, to be the free and voluntary act of such partnership for the uses and purposes mentioned in the instrument.

Dated this _____ day of __________, 2001.

(print or type name)

NOTARY PUBLIC in and for the State of Washington, residing at

My Commission expires:

[Seal or Stamp]

EXHIBIT A TO

ALLEY ACCESS EASEMENT

LEGAL DESCRIPTION OF OFFICE PARCEL

LOTS 1, 2, 3, 4, 5 AND 6, BLOCK 5, PLAT OF AN ADDITION TO THE TOWN OF SEATTLE AS LAID OFF BY THE HEIRS OF SARAH A. BELL, DECEASED (COMMONLY KNOWN AS HEIRS OF SARAH A. BELL'S ADDITION TO THE CITY OF SEATTLE), ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 1 OF PLATS, PAGE 103, IN KING COUNTY, WASHINGTON;

EXCEPT THE NORTHWESTERLY 7 FEET OF SAID LOT 6, CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NUMBER 58229 FOR STEWART STREET AS PROVIDED BY ORDINANCE NUMBER 14881 OF THE CITY OF SEATTLE.

SITUATE IN THE CITY OF SEATTLE, COUNTY OF KING, STATE OF WASHINGTON.

EXHIBIT B TO

ALLEY ACCESS EASEMENT

LEGAL DESCRIPTION OF HOUSING PARCEL

LOTS 7 AND 8, BLOCK 5, PLAT OF AN ADDITION TO THE TOWN OF SEATTLE AS LAID OFF BY THE HEIRS OF SARAH A. BELL, DECEASED (COMMONLY KNOWN AS HEIRS OF SARAH A. BELL'S ADDITION TO THE CITY OF SEATTLE), AS PER PLAT THEREOF, RECORDED IN VOLUME 1 OF PLATS, PAGE 103, IN KING COUNTY, WASHINGTON;

EXCEPT THE NORTHWESTERLY 7 FEET OF SAID LOT 7, CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NUMBER 58229 FOR THE WIDENING OF STEWART STREET AS PROVIDED BY ORDINANCE NUMBER 14881 OF THE CITY OF SEATTLE.

SITUATE IN THE CITY OF SEATTLE, COUNTY OF KING, STATE OF WASHINGTON.

EXHIBIT C TO

ALLEY ACCESS EASEMENT

LEGAL DESCRIPTION OF VACATED ALLEY

THAT PORTION OF BLOCK 5, HEIRS OF SARAH A. BELL'S ADDITION TO THE CITY OF SEATTLE, VOLUME 1 OF PLATS, PAGE 103, IN KING COUNTY, WASHINGTON, SAID PORTION BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

ALL OF THE 16' WIDE ALLEYWAY ABUTTING LOTS 5, 6, 7 AND 8 IN SAID BLOCK 5,

SITUATED IN KING COUNTY, WASHINGTON.

H:\DEED\ALLEYEASEMENT01(LF).DOC 8

AFTER RECORDING RETURN DOCUMENT TO:

G. Richard Hill

Phillips McCullough Wilson Hill & Fikso

2025 First Avenue, Suite 1130

Seattle, Washington 98121

H:\DEED\ALLEYEASEMENT01(LF).DOC

H:\DEED\ALLEYEASEMENT01(LF).DOC A-1

AFTER RECORDING RETURN DOCUMENT TO:

G. Richard Hill

Phillips McCullough Wilson Hill & Fikso

2025 First Avenue, Suite 1130

Seattle, Washington 98121

H:\DEED\ALLEYEASEMENT01(LF).DOC

H:\DEED\ALLEYEASEMENT01(LF).DOC B-1

AFTER RECORDING RETURN DOCUMENT TO:

G. Richard Hill

Phillips McCullough Wilson Hill & Fikso

2025 First Avenue, Suite 1130

Seattle, Washington 98121

H:\DEED\ALLEYEASEMENT01(LF).DOC

H:\DEED\ALLEYEASEMENT01(LF).DOC C-1

AFTER RECORDING RETURN DOCUMENT TO:

G. Richard Hill

Phillips McCullough Wilson Hill & Fikso

2025 First Avenue, Suite 1130

Seattle, Washington 98121

H:\DEED\ALLEYEASEMENT01(LF).DOC

COUNCIL CONDITIONS ON THE ALLEY IN BLOCK 5, HEIRS OF SARAH A. BELL, C.F. 302587

The City Council granted the vacation subject to the following conditions:

1. The alley vacation is granted to allow the petitioners to design and develop an office tower and housing project with ground floor retail in a manner substantially in conformity with the proposal presented to the City Council and for no other purpose.

The western building, 700 Olive Tower, which houses the mixed use office and retail space is completed. The design has conformed to the Council proposal and Seattle Design Commission recommendations. The eastern building, Stewart Court is completed. It provides about 65 units of affordable rental housing as presented to Council.

2. All utility issues shall be resolved to the full satisfaction of the affected utilities. These may include easements, restrictive covenants, relocation of the utilities, or acquisition of facilities. All work shall be at the sole expense of the petitioner and shall be performed to the satisfaction of the utilities. During construction special provisions shall be made to ensure there is no disruption of service to the Marsh and McClennan Building. The utilities include Seattle City Light, US West (now Qwest), Seattle Transportation, Puget Sound Energy.

The petitioner has resolved all utility issues related to the vacation. They have executed and recorded easements to protect affected facilities:

* Seattle City Light, Recording Number 20011128001290

* Seattle Transportation, Recording Number 20010105001610

* Puget Sound Energy, Recording Number 20020301000545

* Qwest, Recording Number 20001208001119

* The petitioner coordinated with the Marsh and McClennan Building to ensure that there was no disruption of service during construction.

3. The petitioner is encouraged to continue to work with the Seattle Jobs Initiative and to the extent feasible direct both construction activity and newly created jobs to women and minority citizens and businesses.

The petitioner worked with the Office of Economic Development and provided status reports regarding apprenticeship usage. They have directed their operational subcontractors to continue to work with Seattle Jobs Initiative as employment needs arise.

4. All street improvements and the location of street improvements such as parking ingress/egress, service and loading areas shall be designed to SeaTran standards and shall require the approval of SeaTran.

Seattle Transportation has approved the street improvements.

5. The petitioner shall ensure that the building design at the alley entrances be compatible with the pedestrian character of the streets. This objective, as outlined in the revised plans, may be achieved by:

* Olive Way entrance: require that the building with its connection to the sidewalk extend and wrap into the alley similar to the adjacent Marsh and McLennan building.

* Stewart Street alley entrance: provide a street level use between the exit from the parking garage and the alley.

This work shall require the review and agreement of SeaTran and the Department of Design, Construction and Land Use.

The project includes facade design that extends the Olive Way treatment into the alley. A retail space is located between the exit from the parking garage and the alley on Stewart Street.

6. The petitioner shall continue to work on the streetscape surrounding the building with the goal of enhancing the pedestrian environment. This could include providing street furniture, public art, a way-finding information system, small scale design for the ground floor retail such as having entry points at 20-foot intervals, or other means to engage pedestrians, or an office lobby that invites public interaction in the building.

The petitioner has provided building design features that enhance the pedestrian environment: continuous glass canopy, special canopy lighting, detailed granite facade and main entrance paving, art windows, extensive windows to display lobby art, lobby furniture and transit information in the lobby.

7. The petitioner shall include a transit oriented commuter information center or other commuter support services in the ground floor of the structure to enhance the transit node.

The petitioner has provided transit information within the lobby and has installed signage indicating the transit information is available.

8. Alley access to the Marsh and McLennan building and to the public shall be preserved. A Property Use and Development Agreement or some other mechanism shall be required to ensure that Marsh and McLennan and the public will continue to have alley access and uninterrupted service access.

This ordinance accepts an alley access easement, Recording Number 20020325002050, preserving public access through the vacated alley and ensuring access for the Marsh and McLennan Building.

9. The proposal is to provide approximately 65 units of low and moderate-income housing.

The petitioner has signed a Joint Development Agreement with Housing Resources Group to construct, manage and own the housing project and to operate it as affordable housing. The construction was completed this summer.