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RES 2004-26 ISLANDER MOBILE HOME PARKRESOLUTION NO. 2004-26 A RESOLUTION of the City of Bainbridge Island, Washington, authorizing the Mayor to negotiate the preservation of the Islander Mobile Home Park as a manufactured/mobile/modular home neighborhood that offers affordable single family homes within the Mixed Use Town Center zone. WHEREAS, the Islander Mobile Home Park, located upon real property within the Mixed Use Town Center of the City of Bainbridge Island, Washington, is a historic affordable single-family neighborhood and is currently comprised of 60 mobile homes (the "Park"); and WHEREAS, use of the property upon which the Park is located (the "Park Property") for manufactured/mobile/modular homes is a desired use for the Park Property and furthers the City's goals of preserving affordable housing within it jurisdictional boundaries; and WHEREAS, the City's Comprehensive Plan and related development regulations underscore the City's policies of protecting and preserving the Park as a valued downtown neighborhood; and WHEREAS, Patricia Alderman ("Alderman"), the owner of the Park Property, has announced her desire to sell the Park Property; and WHEREAS, a sale of the Property to a private entity jeopardizes the future use of the Park Property for its desired use as a manufactured/mobile/modular home park; and WHEREAS, the Islander Mobile Home Park Tenant's Association (the "Association"), a non-profit tenants association representing residents of the Park, has requested assistance from the City in preserving the historic and desired use of the Park Property; and WHEREAS, since Alderman's announcement, the Association and the City have worked closely together in formulating a potential plan to preserve the current use of the Park Property; and WHEREAS, after considering a variety of options, and with the assistance of Kelly Samson and Madison Glen, LLC, the parties have created a plan which would preserve the current use of the Park in perpetuity and which would allow those willing Park residents to purchase their homes; and WHEREAS, pursuant to the parties' plan, and in cooperation with Madison Glen, the Association intends to purchase approximately five (5) acres of the Park Property for purposes of maintaining no less than 50 and no more than 60 manufactured/mobile/modular homes located in the Park (the "Association Property"); the residents of the Park will be given the opportunity to purchase their respective homes; and Madison Glen will purchase a portion of the remaining Park Property; and DOCS\94700\001\218904.01 07/15/04 -1- WHEREAS, under the parties' agreed plan, the Association shall create or has created pursuant to applicable Washington law corporate bylaws and related documents, whereby each owner of a home within the Park will own one (1) share of capital stock in the cooperative; and WHEREAS, the Association has created a priority list, consisting of those residents of the Park who are unable to finance the purchase of their respective homes without assistance; and WHEREAS, subject to applicable law, the City desires to purchase at least six (6) shares in the corporation in the place of some of those residents identified by the Association on its priority list, for purposes of preserving the historic use of the Park as affordable housing and of monitoring the governance of the Park for its desired use; and WHEREAS, those residents included on the Association's priority list are amenable to the City purchasing their shares in the cooperative; and WHEREAS, in exchange for the City's assistance, the Association desires to place certain restrictive covenants against the Association Property, whereby the Association Property will be used for manufactured/mobile/modular housing purposes in perpetuity, and which will guarantee that a portion of the homes will be available to income qualified persons and families; and WHEREAS, the Association, Madison Glen, LLC, and the City have agreed to cooperate in facilitating the contemplated restrictive covenants, and in preserving the current use of the Park; and WHEREAS, as part of the parties' agreed plan, the Association, Madison Glen and the City have further committed to negotiating terms relating to (1) the transfer of certain development rights from the property to be purchased by the Association to the property to be purchased by Madison Glen; (2) the relocation of those Park residents to be displaced by Madison Glen's purchase of a portion of the Park Property; (3) covenants requiring that a portion of the Park homes be made available to income qualified individuals and families; and (4) a right of first refusal in favor of the City or other public entity with respect to the sale of homes within the Park; and WHEREAS, the contemplated restrictive covenants, agreements and benefits conveyed to the City under the parties' agreed plan will be a benefit to the City and will further the City's stated goals of preserving the current use of the Park pursuant to its Comprehensive Plan; and WHEREAS, the City Council has determined that it is in the best interest of the City to continue its negotiations for the above -outlined arrangement; now, therefore DOCS\94700\001\218904.01 07/15/04 -2- THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES RESOLVE THAT: Section 1. Subject to applicable law, the Mayor is hereby authorized to negotiate on behalf of the City the purchase of at least six (6) shares in the manufactured housing cooperative created by or to be created by the Association, and to further negotiate the terms and conditions relating to the City's ownership of such shares and the overall continued historic use of the Park. Section 2. Any agreement so negotiated shall be subject to the final approval of the City Council. PASSED by the City Council this 14th day of July, 2004. APPROVED by the Mayor this 15th day of July, 2004. arlene Kor onowy, Mayor ATTEST/AUTHENTICATE: S SAN P. KASPER, City Clerk FILED WITH THE CITY CLERK: July 7, 2004 PASSED BY THE CITY COUNCIL: July 14, 2004 RESOLUTION NO. 2004-26 DOCS\94700\001\218904.01 07/15/04 -3-