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HomeMy WebLinkAbout09 29 2026 Special Study Session AgendaYELM CITY COUNCIL - STUDY SESSION AGENDA September 29, 2026, 4:0 0 pm Study Sessions are held in-person at Yelm City Hall 106 2 nd Street SE Yelm, WA 98597 and virtually on Zoom on the first Tuesday of each month. Registration is required to attend virtually by sele cting the link below: https://us06web.zoom.us/webinar/register/WN_tbS82aC-RSGwqcuCy8qjpg 1.Presentations/Discussion Items a.Development Agreement between the City of Yelm and Blue Fern Development 2.Mayor’s Report 3.Councilmember Initiatives All regular Yelm City Council meetings are recorded. Meetings can be viewed on YouTube, or a copy may be purchased by contacting the City Clerk’s office at 360.458.8816. It is the City of Yelm’s policy to provide reasonable accommodations for people with disabilities. If you are a person with a disability and in need of reasonable accommodations to conduct business or participate in government processes or activities, plea se contact Kathy Linnemeyer, at 360.458.8816 at least four (4) working days prior to the scheduled event. FINAL DRAFT DEVELOPMENT AGREEMENT CITY OF YELM And YELM MPC,LLC. This Development Agreement(“Agreement”)is entered as of the day of, (the “Effective Date”), by and between Yelm MPC, LLC, a Washington limited liability company, and/or assigns (“Developer") and the City of Yelm ("City"). Developer and the City are herein collectively referred to as the “Parties." RECITALS A.Developer has a legal property interest in certain real property located within the City of Yelm Urban Growth Area (“UGA”) consisting of approximately 640 acres, which is fully described on Exhibit A attached to this Agreement and incorporated herein (the “Property”).The City currently owns this property and, on November 13, 2025, entered into a Purchase and Sale Agreement with Developer for the Property, based on particular terms set forth therein (the “PSA”). B.On November 25, 2008, the City issued a Final Environmental Impact Statement for the proposed Thurston Highlands Master Planned Community(the“FEIS”).That previous project proposal was based on a mixed-use development on a 1,240-acre site in the southwest quadrant of the incorporated area of the City of Yelm. That proposed Master Plan included the Property plus additional acreage located to the east. Under any conceptual land use alternative, the development scenarios included several thousand res idences to be provided in a mix of housing types and densities; commercial development; passive and active open spaces, including protection of critical areas; reservation of area for emergency services; accommodation of public services, such as water supply, wastewater collection, stormwater management facilities; and the extension of Tahoma Boulevard through larger area,connecting to SR 507.No master plan was ever approved for this proposed community,although the City did complete the SEPA review process and rezoned the area as Master Planned Community. C.The Property, consisting of approximately 640 acres, is located entirely within the larger area which formerly comprised the proposed Thurston Highlands Master Planned Community. Developer proposes a master planned development of the Property generally consistent with the Urban Village Alternative as described in the 2008 EIS, with area set aside for commercial and public park uses. The Parties recognize that the Urban Village Alternative depicts only residential development, and that Developer is separately required to construct commercial development as provided in this Agreement. The City anticipates that development under this Agreeme nt will confer a substantial benefit to future development of the adjacent property(ies) and provide a significant public benefit primarily in the extension of Tahoma Boulevard. 1 Developer has separately applied for a Concept and Final Master Plan that proposes to develop the Property in up to five phases,including a range of residential uses and densities, specific acreage for future commercial and multifamily development, stormwater facilities serving the public and private improvements, property dedications for a public park, property dedication for emergency services, provision of arterial right of way for a future Tahoma Boulevard roadway to serve the larger region, dedication for water tower and related service, and dedicated critical areas and buffers (collectively referred to herein as the “Project”). Developer has worked closely with the City on utility and grading pla n specifications allowing for technical evaluation of the viability of the proposed development. D.Because of the size and scope of the Property and Project, Developer anticipates that the Project will be built in Phases as identified by the PSA, with multiple Divisions in each Phase. To maximize marketability, Developer and the City anticipate that each Phase and potentially Divisions will involve more than one homebuilder at any given time. E.Considering the complexity and size of the Project, the City recognizes that additional regulatory flexibility beyond that set forth in Title 18 YMC is critical to support a successful development.Regulations pertaining to the Project are adopted as part of the Concept Master Plan. F.Development Agreements are authorized by RCW 36.70B.170 to establish the “development standards and other provisions that shall apply to and govern and vest the development, use, and mitigation of the development of the real property for the duration specified in the agreement.” G.The City and Developer intend to create uniform processes and standards for entitlement and development of the Property, including master planning and subdivision. Developer recognizes that the City’s approval of the Concept Master Plan results in an update to the City’s Official Zoning Map pursuant to YMC 18.15.040. H.The Parties recognize that development of the Property depends on Developer securing funding for the extension of the Tahoma Boulevard and other public improvements, and the City’s public right of way and acquisition of the Tahoma Boulevard, costs of which are expected to be paid through tax allocation revenue collected within a tax increment area formed by the City under chapter 39.89 RCW. Because the funding and acquisition plan is central to the Parties' decision to enter into this Agreement, the Parties have addressed its role, and the consequences should it not be put in place, in the operative provisions of this Agreement. Pursuant to the provisions of RCW 36.70B.170, et seq., and in consideration of the mutual promises, benefits and obligations set forth herein, the City and Developer hereby enter into the following Development Agreement: 2 DEVELOPMENT AGREEMENT EXHIBITS: Exhibit A:Legal Description Exhibit B: Impact Fee and System Development Charges Exhibit C:City of Yelm Engineering and Development Design Exhibit D: Tahoma Boulevard Road Section Exhibit E:Onsite Road Standards Exhibit F:Alley Sections Exhibit G: Trail Sections 3 DEFINITIONS: "Development Regulations" means the controls placed on development or land use activities by the City including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, official controls, planned unit ordinances, subdiv ision ordinances, binding site plan ordinances, environmental review (including SEPA procedures and substantive SEPA policies), building and site design, utilities, stormwater, impact fees, transportation concurrency and other laws, ordinance, policies, an d administrative regulations and guidelines of the City governing land development contained within the Yelm Municipal Code (hereinafter “YMC”), Comprehensive Plan, and City Engineering Standards and Specifications. Zoning and other applicable laws, policies and regulations include but are not limited to the following categories: i.The uses permitted by existing zoning; ii.The density and intensity of uses permitted by existing zoning; iii.The maximum height and size of the proposed buildings; iv.The provisions for reservation and dedication of land; v.The public improvements required to be constructed to mitigate the additional development; vi.The environmental regulations including SEPA mitigation requirements and critical areas; and vii.The development regulations applicable on the date of this Agreement. “Preliminary plat” means a neat and approximate drawing of a proposed subdivision showing the general layout of streets and alleys, lots, blocks, and other elements of a subdivision consistent with the requirements of chapter 58.17 RCW and Title 18 YMC. Th e preliminary plat shall be the basis for the approval or disapproval of the general layout of a subdivision. "Project permit" or "Project permit application"means any land use or environmental permit or license required from a local government for a project action, including but not limited to subdivisions, binding site plans, planned unit developments, conditional and special uses, shoreline substantial devel opment permits, engineering, site plan review, permits or approvals required by critical area ordinances, site-specific rezones which do not require a comprehensive plan amendment, but excluding the adoption or amendment of a comprehensive plan, subarea pl an, or development regulations except as otherwise specifically included in this subsection. “Final plat” is the final drawing of the subdivision and dedication prepared for filing for record with the county auditor and containing all elements and requirements set forth in chapter 58.17 RCW and Title 18 YMC. 4 A.TERM AND GENERAL DEVELOPMENT PROVISIONS 1.Term.The Term of this Agreement shall commence upon the effective date of t his Agreement and shall continue in full force and effect for the sooner of(i)a period of ten (1 0) years,or(ii)issuance of the final certificate of occupancy, unless amended by mutual agreement of the City and Developer. The City and Developer intend for this Agreement to be in effect for a term concurrent with the Master Plan and intend that any request for extension of the Master Plan will be processed concurrently with an extension of this Agreement, and that any expiration of the Master Plan shall cause this Agreement to expire. The City and Developer agree that if the Master Plan is extended, the term of this Agreement shall likewis e be extended for the term of the Master Plan. Notwithstanding the initial ten(1 0) year term, if Developer completes Phase 1 and Phase 2 within the initial term, the term of this Agreement shall be extended by an additional five (5) years for each subsequent Phase (Phase 3, Phase 4, and Phase 5) that thereafter reaches completion, with e ach such five (5) year extension applying to and measured from the completion of the corresponding Phase. For purposes of this Section, a Phase is “completed” when certificates of occupancy have been issued for seventy-five percent (75%) of the dwelling un its within that Phase. a.Termination due to Tahoma Boulevard Funding. The Parties recognize that development of the Property depends on Developer securing funding for the extension of the Tahoma Boulevard and other public improvements, the public use of the Tahoma Boulevard, and the City’s acquisition of the Tahoma Boulevard, costs of which are expected to be paid through tax allocation revenue collected within a tax increment area formed by the City under chapter 39.89 RCW. Because the funding for the Project and formation of the increment area by the City pursuant to chapter 39.89 RCW are key to this Agreement,this Agreement and the agreement between the City and the Developer regarding such public use and acquisition (the “Tahoma Boulevard Agreement” or “TBA”) shall lapse and be of no further force or effect, automatically and without further action by either Party, if the ordinance forming the tax increment area is not adopted and effective within ninety (90)days after the Effective Date of this Agreement. Upon such lapse, each Party shall bear its own costs and shall have no further obligation to the other, except for those obligations that expressly survive termination of this Agreement. b.Option to Extend Initial Term. The City hereby grants to Developer the option to extend the initial term of this Agreement for an additional five (5) years (hereinafter “Extension Option”), provided that such extension is necessary to accomplish closing obligations under the Purchase and Sale Agreement and the Developer provides evidence of substantial progress and commitment to construction of the Development Property. If 5 Developer seeks to exercise the Extension Option hereby granted, the Developer shall notify the City of Yelm Planning and Building Manager, in writing not less than 90 days prior to the termination date of this Agreement, of Developer’s intent to exercise the Extension Option. Developer shall provide evidence of substantial progress and commitment to construction of the Development Property not later than 60 days prior to the termination date of this Agreement. 2.Proposed Change to Zoning.Approval of a Concept Master Plan may result in a zoning determination and change to the City’s Official Zoning Map. YMC 18.15.040.. As part of this Agreement, the City will process the Concept Master Plan and associated zoning determinations in accordanc e with the YMC and applicable law and will forward a recommendation in support of the same to the Hearing Examiner and City Council. The Parties acknowledge that consideration and approval of the Concept Master Plan and related zoning determinations consti tute land use actions that cannot be predetermined by this Agreement pursuant to RCW 36.70B.170, that this Agreement creates no obligation on the Hearing Examiner or City Council to approve the same, and that the City Council retains the full discretion al lowed by law to approve, approve with modifications, or deny the same following the public hearing process required by RCW 36.70B.200 and the YMC. Developer acknowledges and accepts the risk that the Concept Master Plan and related zoning determinations ma y not be approved as proposed or at all. 3.Vesting of Development Regulations. All Project Permit applications for the Property for the duration of this Agreement shall vest to the approved Master Plan, this Agreement, and Development Regulations,defined above and including those set forth in Title 18 as modified in the Concept Master Plan and otherwise herein, and other applicable laws in place on the Effective Date of this Agreement, except as otherwise provided for in this Agreement and its Exhibits. The City shall not apply to the Project any ordinance, resolution, rule, regulation, policy, standard or other measure that may be in conflict with the vested-to Development Regulations or that reduces the rights provided by this Agreement unless agreed to by Developer in writing. Th e City and Developer agree that this vesting provision shall not apply to purely procedural standards contained in the YMC, including, administrative final plat procedures, approving authorities and hearing procedures. In the event that this Agreement expires by its terms or by law prior to issuance of any permits or approvals applied for based on an approved preliminary or final plat for any Phase or Division and necessary to complete development under this Agreement, t he City and Developer agree that vesting of these regulations will apply to said applications, subject to the City’s determination as to whether additional review under the State Environmental Policy Act, chapter 43.21C RCW, is required. Further, the City and Developer agree that any preliminary plat which has not yet been final platted upon termination or expiration of this Agreement, and 6 any Project Permits associated therewith but which have not yet been applied for, shall remain subject to and benefit from the vesting provisions herein. The City shall not apply subsequently adopted ordinances, regulations and design standards to infrastructure development of the Property, either directly or indirectly (i.e., by imposing requirements for such compliance pursuant to the State Environmental Policy Act), provided that the City reserves authority to apply new or different regulations as required by a serious threat to public health and safety, as required by federal or state law, or to address materially changed infrastructure or environmental conditions. The Parties shall meet not less than once every five (5) years to review the vested Development Regulations and consider mutually agreed updates. The following amendments, additions, increases or other changes to the following plans, laws, ordinances, regulations, fees and monetary charges, adopted by the City following the effective date of this Agreement, are exempt from the vesting provisions of this Agreement: a) Any permit application, permit review and inspection fees applicable to any application for a master plan, binding site plan, subdivision or short subdivision or other land use approval for any portion of the property not included in Exhibit C and to the extent not waived by this Agreement or other action of the City Council; b)Water, sewer, stormwater and irrigation connection charges, general facility and monthly service charges, (except for the System Development Charges expressly set forth in Exhibit B, which are locked for the five (5) year period provided in Section 4), as the City Council may from time to time adopt; c)The Washington State Building Code, including without limitation the International Building Code and such other International or other Uniform Codes adopted by the Washington State Building Code Council and/or the City Council, including electrical, buildi ng, plumbing, fire and other ancillary uniform or international construction codes adopted pursuant to Ch. 19.27 or 19.27A RCW; d)Any plans, policies, ordinances, regulations or development regulations that the City must change by virtue of, or the City reasonably determines to be necessary to change to comply with, the requirements of any federal or state law or the directive of any state or federal agency or court, in order to avoid being in violation of state or federal law, or to preserve the City’s eligibility to receive shared revenues, grants or other funding, but only to the extent necessary to comply with such state or federa l law; and, e)Taxes of any nature of general applicability throughout the City. 7 Any waiver or revision of a vesting provision under this Agreement shall be processed as a Major Amendment under Section 5 and shall be made only upon the mutual written agreement of the City and Developer. 4.Impact Fees and System Development Charges.The Project shall vest to those impact fees and system development charges in those fee categories and rate schedules expressly set forth in Exhibit B. Only the impact fees, system development charges, and other fees and charges expressly identified in Exhibit B are locked as provided in this Section. All other fees and charges shall apply at the rate and amount in effect at the time a complete permit application is submitted for the applicable lot or building. Any listed indexed fee shall be adjusted solely by t he Consumer Price Index for All Urban Consumers (CPI-U), Seattle-Tacoma- Bellevue, All Items, using July 2025 as the base index, and shall be calculated as of the date a complete building permit application is submitted for the applicable lot or building.The impact fees and system development charges set forth in Exhibit B are locked at the rates and amounts set forth in Exhibit B for a period of five (5) years commencing on the Effective Date of this Agreement. Upon expiration of that five (5) year period the lock shall end, and any fee or charge set forth in Exhibit B for which a complete permit application has not been submitted and the applicable fee paid before expiration shall thereafter be assessed at the rate and amount in effect at the time a complete permit application is submitted, regardless of any extension of the term. 5.Interpretation and Amendment of Agreement. The City and Developer recognize this Agreement is of an extended duration and covers a significant area of land within the City limits. As a result, the City and Developer recognize they cannot forecast long term market conditions or other circumstances which may affect development or uses of future Phases within the Master Plan. Therefore, the City Administrator is hereby given wide latitude in interpreting the terms of this Agreement to prioritize development flexibility in the application of use chart s and bulk regulations, subject to the Minor and Major Amendment process set forth below, under which Major Amendments require review and approval by the City Council. Except for Major Amendments under subsection (a) below, an Amendment to this Agreement’s s pecific terms and/or provisions set forth in the Exhibits, condition of the Master Plan or the Master Plan map requested by Developer shall be processed as a Minor Amendment, approved by the City Administrator or designee without requirement of public hearing. a.Major Amendments. An amendment shall only be deemed a Major Amendment if it: (i) materially changes the Tahoma Boulevard alignment, cross-section, or connection points; (ii) materially changes the location, size, or configuration of a public park or other public dedication area; (iii) materially changes the approved residential densi ty, product mix, or commercial acreage of a Phase; (iv) materially revises a Phase boundary; (v) reduces any required public dedication; (vi) waives 8 or modifies a vested engineering, stormwater, or utility standard in a manner of more than minor significance; (vii) extends the term of this Agreement beyond the extensions expressly provided in Section 1, it being understood that exercising an extension right expressly granted in Section 1, including the automatic Phase- completion extensions and the Extension Option, is not itself a Major Amendment; (viii) materially diminishes a mitigation measure relied upon in project-level environmental review; or (ix) waives or revises a vesting provision under Section 3, or the impact fee or system development charge vesting under Section 4. A Major Amendment shall require review and approval by the City Council following public notice. b.Minor Amendments.All other amendments, including without limitation minor revisions to internal road or alley alignment within an approved corridor, utility layout adjustments within an approved corridor or easement, platting details, lot line adjustments, and minor setback implementation consistent with vested standards, use-category determinations for uses readily analogous to a listed use, stormwater configuration changes that preserve approved treatment and detention volumes, phasing or infrastructure timing changes that do not alter the items listed as Major, and par k or open-space configuration within the agreed service area that do not reduce designated open space beyond the tolerance set forth in Section 2 5, and other comparable development details,shall be deemed Minor Amendments. c.Any determination that an amendment is Major shall be supported by written findings issued within fourteen (14) days of request. The final determination regarding whether an Amendment to this Agreement is Minor or Major shall rest with the City Administrator subject to appeal to the Hearing Examiner,following the timelines set forth in Section 6, below. 6.Interpretations of Terms and Modifications of Development Standards. Any interpretation or modification of a term of this Agreement, condition of the Master Plan or Development Regulation, or dispute regarding the foregoing, shall be resolved first by Developer submitting a written request to the City Administrator or designee, requesting interpretation or modification. The City Administrator or designe e shall decide whether it agrees with the request in writing within fourteen (14) days of receiving the request. Any denial or conditional approval shall include specific written findings, identify the particular Agreement provision or vested standard relied upon,and describe the basis for the decision with reasonable specificity. If the City Administrator or designee fails to issue a written decision within such period, the Parties may agree in writing to an extension; absent agreement, the request shall be deemed denied and Developer may a ppeal that constructive denial to the Hearing Examiner as provided below. In no event shall a request be deemed approved solely by reason of the City’s failure to act within a specified time.The written decision may be appealed by the Developer to the Hearing Examiner within ten (10) days of the written decision and within fourteen (14) days the City shall request that the Hearing Examiner conduct a hearing at its 9 earliest opportunity. Any subsequent appeals of the written decision shall be brought exclusively by Land Use Petition, pursuant to Chapter 36.70C RCW. The dispute resolution terms set forth in Section 5 8 shall not pertain to this Section. B.PROJECT DESCRIPTION 7.Property Development. Developer agrees to construct the Property generally consistent with the PSA, the proposed development of the Property shown on the Urban Village Alternative Conceptual Land Use Plan, Figure 1.3-6 of the FEIS, and Concept Master Plan.The City and Developer recognize that modifications to those Plans may be necessary as the Project proceeds; any such modification shall be made only through the amendment process set forth in Section 5 of this Agreement and shall not relieve Developer of its obligations under this Agreement. Environmental review of any such modifications is addressed separately, herein. Modifications shall be processed in accordance with Section 5 of this Agreement. Detailed plans for development of the Property shall be approved through Project Permits and approval processes set forth herein. Road widths, onsite and offsite easement and right-of-way dedications, public open spaces, and street and utility improvements shall be governed by the Master Plan for any future site plan entitlement application and reviewed under the Development Regulations as vested to under Section 3, above. However, depictions of building footprints, shapes, square footage, and number of sto ries in the Master Plan are illustrative only and shall not bind future Project permit applications. 8.Zoning. The Property is currently zoned Master Planned Community (MPC) and does not require a rezone to process and approve subdivision under Chapter 58.17 RCW. 9.Permitted Uses. All uses set forth in Title 18, Division 5, YMS (Zoning), as modified herein and in the Exhibits, shall be those allowed within the Master Plan. In the event a use is not specifically listed within the zoning code, it shall be allowed if readily analogous to a listed use. If not, Developer shall be entitled to the requested use based on an Administrative Zoning Interpretation approved by the Public Services Director upon reasonable justification. In the event of disagreement, the Determination process set forth in Section 6 shall be used. C.PHASING OF DEVELOPMENT. 10.The PSA provides that the Master Plan shall include up to five Phases for purposes of subdivision and closings, each Phase not being larger than one-hundred sixty (160) acres in size unless otherwise approved by the City. Each Phase may be divided into mul tiple divisions which will be established upon entitlement for each Phase. Each phase is anticipated to yield the following approximate number of residential units with the specific unit types and zoning considerations to be provided 10 with the Master Plan. Developer may construct Tahoma Boulevard through the Phase 1 site as part of Phase 1. Upon issuance of the five hundred and ninety-ninth (599 th)residential occupancy permit, Developer shall commence construct ion of the remaining segment of Tahoma Boulevard(meaning all portions of Tahoma Boulevard not previously constructed)and shall complete th e remaining segment prior to issuance of the eight-hundredth (800 th) residential occupancy permit in accordance with a construction schedule approved by the City,with progress reports to the City. The City shall use diligent efforts to acquire any necessary right of way for Tahoma Boulevard,including condemnation if authorized by the City Council. Developer and City shall expeditiously coordinate,apply for and diligently pursue all permits required for Tahoma Boulevard, including from the Washington State Department of Transportation, in time to meet th e requirement s of this Section. Nothing in this Agreement prevents Developer from constructing all of Tahoma Boulevard as part of Phase 1.T he following table reflects the referenced construction. PHASE ACREAGE UNIT AND INFRASTRUCURE MATRIX (based on gross area) (Approximate Yield–Final Counts to be Determined at Preliminary Plat Phase) Phase 1 119.83 gross acres+/-600 residential units Emergency services area dedication –2 acre s Regional Sanitary sewer lift station Extension of Tahoma Blvd to the Phase 1 Site and through Phase 1. Following issuance of the 599 th residential occupancy permit, Developer shall construct and complete the remaining segment of Tahoma Boulevard and connection to SR 507 prior to issuance of the eight-hundredth (800 th) residential occupancy permit. 11 Phase 2 145.70 gross acres+/-650 residential units Public Park dedication– 10 acres Water tower and easement –2 acres Commercial/mixed-use tract –4 acres Extension of Tahoma Blvd from Phase 1 and through the final phase of development and connection to SR 507. Phase 3 135.60 gross acres+/-650 residential units Commercial/mixed-use tract –6 acres Extension of Tahoma Blvd from Phase 1 and through the final phase of development and connection to SR507. Phase 4 98.51 gross acres+/-400 residential units Affordable housing parcels shall be assigned (if not already completed) Extension of Tahoma Blvd from Phase 1 and through the final phase of development and connection to SR507. Phase 5 146.32 gross acres+/-700 residential units Extension of Tahoma Blvd from Phase 1 and through the final phase of development and connection to SR507. 11.The Master Plan identifies, at a minimum, the general location of development areas, Arterial and Collector public roads, approximate public park dedication area, sensitive areas and associated buffers, and City of Centralia utility easement. The Master Plan includes conceptual utility and grading plans for future reference as 12 specific entitlement applications proceed. The Master Plan demonstrates that the site is being developed in an integrated and cohesive manner based on a complete site delineation of sensitive areas. The Master Plan also shows the Tahoma Boulevard alignment in its currently planned route offsite from the Property and as preliminarily designed through the Property. 12.Public Dedication Areas.The City has reviewed the utility and service needs for the Master Plan and confirms adequate capacity with the proposed water tower, pond, and well for the anticipated water, sewer, and stormwater demands. The City has not yet made a determination regarding capacity requirements for emergency service demands, and that determination is reserved to the City and may be made following execution of this Agreement.To support these utilities and services, Developer agrees to dedicate or otherwise set aside from development the following: approximately two acre s for an emergency services area (Phase 1), approximately two acres for water tower and treatment area(Phase 2),approximately ten acres for public park (Phase 2) and areas as needed for Tahoma Boulevard and its associated improvements (all Phases) (referred to in this Section as the “Public Dedication Area(s)”). The locations for the Public Dedication Areas as shown on the Master Plan may be moved only upon written agreement of the City and Developer, which shall not require further Council approval and shall not be unr easonably withheld. Considering that the City currently owns the underlying property and Developer is agreeing to commit certain areas for future public use, the Parties wish to coordinate on the process for preserving those areas. a.The Parties agree that Developer will dedicate the land identified on the Concept Master Plan for each of these Public Dedication Areas as part of final platting for each Phase, and Division within each Phase if applicable, assuming final platting is approved after Closing of the given Phase. In the event Developer has not Closed on the Phase at the time of final plat for any Phase in which the Public Dedication Area(s) are not otherwise placed in a separate tract by lot segregation, the final plat shall set forth said public dedication area(s) as separate lots or tracts and the City shall retain ownership to public dedication area(s) upon Closing of the Phase under the PSA. b.For purposes of the emergency services area, Developer shall ensure that area is dedicated and available to emergency services upon construction and dedication of Tahoma Boulevard to the west terminus of Phase 1. c.With respect to the 10-acre public park area proposed within Phase 2, the City and Developer agree that a large lot segregation will create a separate tract over which the City will retain ownership based on agreed property boundaries for said tract in approximately that location shown on the Master Plan. However, Developer may adjust the boundaries and location of such public park area during platting of Phase 2, provided that the full 13 ten (10) acres of public park area shall be preserved, in order to reasonably accommodate other development needs, including but not limited roadway alignment, location of residential lots, and location of commercial space anticipated as part of Phase 3. 13.Developer will acquire ownership to the property subject to the easement benefitting the City of Centralia, Recording Number 221154, as part of Closing on each Phase. The City will assist in coordination with the City of Centralia for the proposed road right of way crossings and trail corridor prior to Closing of any Phase. 14.Each Phase shall have all infrastructure and other mitigation associated with said Phase constructed or otherwise in place at the time of the first certificate of occupancy unless otherwise agreed to by the City and Developer as part of each Project Permit process. However, certificate of occupancy within a Phase shall not be withheld so long as the public improvements, utilities, stormwater facilities, mitigation measures, and other infrastructure required to serve the applicable final plat, lot, or building permit have been installed, bonded, temporarily approved,or otherwise secured in the manner permitted by vested City standards and the applicable implementing approval. Infrastructure intended solely to serve later divisions, later phases, or future off-site system expansion shall not be required as a condition to issuance of an earlier certificate of occupancy unle ss expressly identified in this Agreement or the applicable implementing approval.Phased infrastructure shall be designed and constructed to meet City engineering standards, as vested herein, for dead end streets and utilities. Bonding for infrastructure shall be allowed to facilitate final platting. Phases may ultimately be built sequentially or simultaneously. Accordingly, infrastructure a nd timing of development different from the Concept Master Plan may be proposed by Developer and processed as a Minor Amendment under Section 5 of this Agreement, based on the needs and timing of specific Implementing Projects and technological advancement s. 15.To effectuate phased development and ph ased infrastructure, including establishment and construction of Tahoma Boulevard, the City understands and agrees that Developer may require the ability to construct infrastructure or conduct grading activities, including earthwork, mining and stockpiling, within areas still owned by the City and outside of any actively developed Phase. The City shall grant Developer the temporary construction access, license rights, and easement rights reasonably necessary to perform grading, utility, drainage, roadway, and related work on City-owned portions of the Property and on City-owned lands needed to implement approved Project infrastructure. The City shall issue the applicable form of permissio n within fifteen (15) days a fter receipt of a written request identifying the work area and proposed activity, provided such work is consistent with an approved permit, civil plan, or other implementing approval. Such rights shall be granted at no cost other than mutually agreed thir d-party recording or survey 14 expenses. 16.The parties acknowledge that the Master Plan and Phasing sizes and locations are preliminary and may be changed from time to time based on infrastructure availability, market conditions, sensitive areas, and other factors, many of which are beyond the cont rol of the City and Developer. Any such change to Master Plan or Phasing sizes or locations shall be processed under the Minor or Major Amendment procedures of Section 5, according to its classification. Developer shall be entitled to revise the Master Pla n and Phasing from time to time with City approval, subject to the review processes established by City code, including any applicable Hearing Examiner and City Council review, so long as the master plan and phasing plan provide for the development of park s, recreational improvements, the quantity and type of housing units,and commercial areas as set forth in this Agreement. Developer shall have the right to make Minor Modifications to the Concept Master Plan so long as those modifications do not conflict with any conditions of approval recommended by the Hearing Examiner a nd adopted by the City Council.Any such Minor Modifications shall be administratively approved by the City, subject to reasonable conditions that are capable of being accomplished, pursuant to Section 5. 1 7.Commercial. Developer shall construct not less than one hundred fifty thousand (150,000) gross square feet of commercial, including mixed use,development within the commercial or mixed use areas designated on the Master Plan. Mixed use development shall count toward the required one hundred fifty thousand (150,000) gross square feet only if not less than twenty percent (20%) of the gross square footage of the mixed-use project consists of non-residential space, excluding parking and areas primarily serving residential units. Not less than forty percent (40%) of such commercial development shall be constructed by the completion of Phase 2, and the remainder shall be constructed by the completion of Phase 3. Provided, however, that if Developer has not been able, despite commercially reasonable efforts, to construct the remaining 60 percent (60%)of the required commercial development by the completion of Phase 3, Developer may satisfy the requirement by completing pad ready building sites (including providing that complete infrastructure and utilities are provided to the site in support of development-ready vertical development) for the required commercial and/or mixed use development. For purposes of this Agreement, a Phase shall be deemed complete when certificates of occupancy have been issued for seventy-five percent (75%) of the dwelling units within that Phase. 1 8.Affordable Housing. Developer shall construct,or coordinate for construction by an affordable-housing builder for each Phase a minimum of five percent (5%) of the units in that Phase as affordable units, with a minimum of thirty (30) affordable units per Phase, affordable to households earning between fifty percent (50%) and eighty percent (80%) of the area media n income (AMI) for Thurston County. Developer may defer construction of a Phase’s affordable units only upon a written 15 demonstration to the City that, despite commercially reasonable efforts, construction financing for the affordable units is not available on commercially reasonable terms. Any deferral requires the written concurrence of the City Administrator, shall not e xceed twenty-four (24) months, and shall not reduce the number of affordable units required. If deferred units are not under construction by the end of the deferral period,t he City may, in its sole discretion, accept conveyance of land from the Developer in exchange, in whole or in part, for the Developer’s obligation to construct affordable housing units. These affordable units shall not count towards the residential and multifamily units otherwise approved with this Development Agreement. Developer shall make this conveyance by completion of Phase 4 subject to the following provisions: a.Acreage shall be useable for housing construction (i.e. not steep slopes, wetlands, buffers etc.) and the City shall approve feasibility of the location for constructing the required minimum number of units. The acreage may be located in either the residential or commercial portions of the Project. b.Developer shall be responsible for construction of access, water and sewer, consistent with vested Development Standards, up to the parcel boundary(ies)and for all necessary permits and fees associated with the affordable housing units.The City shall waive utility connection charges and City controlled impact fees for affordable housing units at or below seventy percent (70%) of AMI and shall reduce by fifty percent (50%) those charges and fees for affordable housing units above seventy percent (70%) and up to eighty percent (80%) of AMI. c.If the property is conveyed to the City, the City will issue an RFQ/RFP for potential owner/developers of the affordable housing. Developer, at its option, can participate in the selection process. 19.Impacts to Public Schools. Developer recognizes the Project will have impacts on either Rainier or Yelm School Districts as the development occurs. Developer shall enter into a mitigation agreement with the applicable School District as part of each Project Phase. Further, pursuan t to the FEIS, it is recognized there may be shortfalls between revenues generated by the development and the requirement for public services in the early phases of the project. Provision of services during this period of time may warrant interim provision s and/or operations funding by the D eveloper at higher levels than those assumed in the fiscal analysis. The Developer will reach a “shortfall agreement”, if necessary for public school facilities, to be executed between the Developer and the applicable school district prior to approval of the Phase 1 preliminary plat. 16 D.STATE ENVIRONMENTAL POLICY ACT(SEPA) 20.Prior SEPA Review.As part of the City’s previous zoning of the Property to MPC, the City completed a Final Environmental Impact Statement, issued November 25, 2008 (the “FEIS”). That FEIS included comprehensive review of the following environmental categories: Aesthetics Air Quality Fiscal Analysis Fish,Wildlife and Habitats Geology and Soils Grading,Drainage and Utilities Infiltration Effects Assessment Light and Glare Parks and Recreation Surface Water Technical Report Transportation Impact Analysis Wetlands No appeals from that environmental review occurred. 21.SEPA Review –Future Phases of Development.At the time of submission of permit applications for future phases of development of the Property, Developer shall submit an environmental checklist and any supporting documentation regarding potential impacts of that phase of the development, except to the extent such impacts have been previously subjected to environmental review and mitigation as set forth in this Agreement and the FEIS. E.PERMIT PROCESSING PROVISIONS 22.Platting of Divisions.Upon approval of the conceptual Master Plan, the City agrees to process preliminary plat applications for Phases or divisions of Phases in an expedited manner pursuant to the process set forth herein. 23.Binding Site Plan Process.The City has adopted a binding site plan process under YMC 18.14.070 for commercial and industrial pads. Said binding site plan process may be used for residential, commercial or mixed-use development within the Project.The City agrees to process applications in an expedited manner within the timeframes established under Chapter 18.10 YMC. 24.Platting Process for Phases Containing Divisions. a.Preliminary Platting of Divisions. The City agrees to process applications in an expedited manner within the timeframes established under Chapter 17 18.10 YMC. Where any Phase is proposed for preliminary platting by division, Developer may either submit (i) separate applications for each division within a Phase, (ii)a single preliminary plat application containing multiple divisions or (iii) a combination of the foregoing options. For an application falling under either (ii) or (iii), above, the preliminary plat approval shall include conditions allowing final plats for each division to be separately reco rded, subject to any necessary implementing conditions. b.Final Platting of Divisions. In such event, the first final plat for the first division shall be recorded within five years of the date of preliminary plat approval for the Phase. Each final plat for each subsequent division shall be recorded within two years of the date of the prio r final plat division. Developer may apply for sequential one-year extensions of the final plat schedule within thirty (30) days of the deadline to submit the particular division’s final plat application. The Public Services Director shall grant such exten sion for good cause, which shall not be unreasonably withheld. A maximum of 5 extensions may be allowed for each division final plat. 25.Engineering Review; Concurrent Review Allowed; Preliminary Plat Modifications. The City agrees that Developer may submit engineering plans for review concurrently with preliminary plat application review for each Phase or division after the City’s first round of preliminary plat application review comments. Engineering plan approva l will not be issued before approval of the preliminary plat but may be issued concurrently therewith. In the event lots approved by preliminary plat are not desired for final platting and public facilities or services necessary to serve the plat are subst antively unaffected, the Developer shall be allowed to adjust individual lot boundaries or reserve said lots within the preliminary plat as future development or other use tracts during the engineering process and without requirement for minor modification to the plat. After preliminary plat approval, minor revisions may be made without triggering Section 5,limited to the lesser of: (i)a ten (10)percent increase in the number of lots or units; (ii) a change in access points so long as offsite trip distribution is not materially altered; (iii) a change in the aggregate area of designated open space that does not decrease the amount of designated open space by more than five (5) percent, and does not cause Project- wide designated open space to fall below the twenty percent (20%) minimum; (iv) any other change which does not substantially alter the character of the approved preliminary plat. Any reduction of designated open space b eyond the tolerance set forth in clause (iii) shall be processed as a Major Amendment. 26.Administrative Approvals of Final Plats. While nothing herein shall bind the City to future legislation,to facilitate the development of the site,the City expresses its current intent to adopt an administrative final plat approval process prior to the first final plat within Phase 1 of the Master Plan. In the event of such future legislation, the City agrees that administrative final plat processes will be applied to final 18 platting of each Phase and Division. 27.Final Plat Timelines for Phases and Divisions.Each final plat application shall include a draft set of Covenants, Conditions and Restrictions for a homeowners’ association to provide controls pursuant to Washington State laws, as may be amended from time to time. Upon application for a final plat, th e City agrees to process and schedule said final plat application on the next available City Council consent agenda within thirty (30) days (consistent with YMC 18.10.090) of complete application submittal. In the event the City adopts an administrative approval for final plats, the City agrees to issue a decision on any final plat application within thirty (30) days (consistent with YMC 18.10.090) of complete application. In the event the City finds the final plat application is incomplete or inconsistent with any condition of preliminary plat approval, or otherwise results in a threat to public health, safety or welfare under RCW 58.17.170 the City shall provide Developer with a reasonable opportunity to revise the final plat application or otherwise cure the potential threat prior to denial. F.TRANSPORTATION IMPROVEMENTS AND ROADWAY STANDARDS 28.Tahoma Boulevard Alignment. The City has planned for the extension of Tahoma Boulevard between State Route 510 and State Route 507 to address existing an d future, regional transportation circulation for several years prior to this Agreement. Pursuant to terms of the PSA, Developer and the City have agreed to the acquisition and construction of Tahoma Boulevard to extend it from its current terminus through private property to complete its connection to State Route 507. Developer and the City have agreed upon a general route to complete this extension. Based on that agreement, Developer has developed preliminary engineering plans for a prospective alignment through Phase 5 on which the Concept Master Plan Map relies. Pursuant to the terms of the PSA, the City and Developer are pursuing further design work and establishment of necessary and reasonable public right of way. The Parties recognize that development of the Property depends on Developer securing funding for the construction of the Tahoma Boulevard and other public improvements, the public use of the Tahoma Boulevard, and the City’s long-long term use and acquisition of the Tahoma Boulevard pursuant to the Tahoma Boulevard Agreement. Costs of such use and acquisition are expected to be paid through tax allocation revenue collected within a tax increment area formed by the City under chapter 39.89 RCW. Funding, public use, and transfer of the Tahoma Boulevard extension and other eligible public improvements shall be governed by the Tahoma Boulevard Agreement between the City and Developer. The Tahoma Boulevard Agreement establishes the intent of the City to form the tax increment area pursuant to chapter 39.89 RCW, to use tax allocation revenue collected within such tax increment area to acquire the expanded Tahoma Boulevard and related public improvements, and the public works procurement, prevailing wage, bond, and retainage requirements applicable to the Tahoma Boulevard expansion and any other 19 public improvement s. Notwithstanding anything to the contrary herein, in the Tacoma Boulevard Agreement or any other related document, the parties acknowledge that financing obtained by Developer for construction of the Tahoma Boulevard and other public improvements shall sole ly be an obligation of the Developer and shall not be guaranteed by or otherwise an obligation of the City. The parties acknowledge that the City intends to use tax allocation revenue to acquire the Tahoma Boulevard and other public improvements if and to the extent such tax allocation revenue is available for such purpose. The City’s obligation shall not be a debt, shall bear no interest, does not represent a repayment obligation, and will not be evidenced by a promissory note, bond or other evidence of indebtedness issued by the City, and no pledge of City funds, its full faith and credit or its non-voted taxing or debt authority shall be pledged. 29.Traffic Impact Analysis for Master Plan and Entitlements for Project Phases. Developer has submitted a traffic analysis memorandum to support the Concept Master Plan which does not identify any new or increased significant adverse environmental impact likely to result from development consistent with the Concept Master Plan. The City has not reviewed or confirmed that conclusion. The City’s determination under this Section is reserved and may be made following execution of this Agreement, and nothing in this Section constitutes City concurrence with the traffic analysis memorandum. Traffic Impact Analysis for Phases 1 t hrough 5, are addressed below. 30.Tahoma Boulevard Temporary Terminus. a.The roadway cross-section for Tahoma Boulevard as currently constructed as part of the Tahoma Terra development has sufficient capacity to accommodate traffic from Phases 1 and 2 of the Project. The boulevard design with a separated landscape median results in a greater factor of safety for purposes of emergency se rvices by providing two routes of travel. b.Developer has conducted a traffic analysis report related to anticipated traffic impacts resulting from up to 1,320 residential units anticipated for Phases 1 and 2 of the Project. Given the staged construction of Tahoma Boulevard for each Phase, the City has considered the potential impacts of issuing certificates of occupancy based on a separated boulevard design and agrees it is reasonable to issue the foregoing number of certificates of occupancy for Phases 1 and 2. c.Developer shall then construct secondary access to serve future Phases of the Project, whether that be through extension of Tahoma Boulevard to connect to State Route 507 or alternative secondary access that is approved by the 20 City at that time, which may also take into account temporary access for fire and life safety purposes. 31.Traffic Impact Analysis for Phases 1 and 2. The Developer has submitted traffic impact analyses for Phases 1 and 2 and the City’s review of those analyses has not been completed. The Parties acknowledge that the City’s confirmation and related decisions under this Section are reserved to the City and may follow the execution of the Agreement. 32.Traffic Impact Analysis for Phases 3-5. a.For Phases 3 through 5, D eveloper shall submit a traffic impact analysis as part of the entitlement application for each Phase, based on the scoping parameters set forth in this Section. The traffic analysis for each future phase shall be established through a traffic scoping process with the City to address the following study intersections: i.Burnett Rd/ Yelm Ave(SR 510) ii.93 rd Ave/Yelm Ave(SR 510) iii.Mountain View Road/Yelm Ave(SR 510) iv.Killion Rd/Yelm Ave(SR 510) v.Cullens Rd/Yelm Ave(SR 510) vi.Longmire St/Yelm Ave(SR 510) vii.Edwards St SW/Yelm Ave(SR 510) viii.First St S(SR 507)/Yelm Ave(SR 510) ix.First St S(SR 507)/Mosman Ave SE x.SR 507 /Mill Road xi.Tornado Alley/Tahoma Blvd a.The City and Developer will agree upon adjustments to the traffic forecasts at study intersections related to timing and completion of the North Yelm Loop. b.A future horizon year consistent with the anticipated buildout of each Phase shall be established in traffic scoping with the City. c.An assumption regarding a growth rate for background traffic shall be mutually agreed upon by Developer and the City through traffic scoping. d.Following submission of each traffic impact analysis, the City shall have the TIA report peer reviewed by the City’s traffic consultant. Any discrepancies between the traffic impact analysis and the peer review shall be resolved by mutual agreement of the City and Developer in a final traffic report. The final report shall serve as the basis for all SEPA 21 review of traffic impacts of development of the Phase on offsite intersections and for mitigation of such impacts. 33.Impact Mitigation for Intersections. a.Developer proposes that, f or Phases 1 and 2, payment of the transportation impact fees identified in Exhibit B and completion of the signal timing or striping modifications identified through the City’s review of the traffic impact analyses for Phases 1 and 2 constitute Developer's sole off-site transportation mitigation obligation.The City has not confirmed this proposal; confirmation, modification, or rejection is reserved to the City upon completion of its review of the traffic impact analyses for Phases 1 and 2, which the Parties acknowledge may occur following execution of this Agreement. b.For Phases 3 through 5, any off-site transportation mitigation not already funded through adopted impact fees shall be limited to Developer's proportionate-share impact, calculated by the mutually approved final traffic impact analysis for the applicable P hase using the trip generation, trip distribution/assignment, background growth, and horizon-year assumptions established during written traffic scoping. c.Under no circumstance shall Developer be required to fund correction of existing deficiencies or future system improvements beyond its proportionate share. d.Any required Developer-funded off-site improvement shall be subject to a dollar cap equal to Developer's proportionate share as shown in the final approved traffic analysis, and all eligible design,right-of-way,permitting, and construction costs shall be credited automatically against transportation impact fees otherwise due for the Project, with any excess credited or waived against other fees otherwise due for the Project or carried forward as a transferable pr oject credit. e.For those intersections identified in a TIA which are projected to fall below the LOS established by the Comprehensive Plan without impacts from a Developer Project Phase, and which require improvements not listed in the Yelm CIP (and therefore not include d in the transportation impact fees), the City and Developer shall agree upon a proportionate share contribution that would reasonably provide financial mitigation for the Project Phase impacts without delay to the Project Phase or otherwise imposing a req uirement that Developer fully resolve the LOS failure. f.For those intersections identified in a TIA which are projected to fall below the LOS established by the Comprehensive Plan as the result of the given 22 Phase, and which require improvements not listed in the Yelm CIP (and therefore not included in the transportation impact fees), the following shall apply: i.The City shall determine whether the improvement needed to meet City-adopted LOS is a system-improvement necessary to accommodate regional future traffic growth, or a direct and proportionate impact of the given Phase. ii.The City shall determine whether to add the improvement required to bring the intersection or roadway into compliance with City LOS standards to the City’s transportation plan and transportation impact fee funded list or require Developer to construct the improvements. iii.If the City determines that Developer must construct the improvement, Developer shall receive full credit against transportation impact fees from the City. In the event the Developer constructs any improvement pursuant to this Agreement, the City agrees Developer shall be entitled to a latecomer agreement as provided for under Washington State laws. Eligible costs for credit against transportation impac t fees, reimbursement and latecomer agreement include design, engineering, permitting, and construction costs, the costs of right-of-way acquisition and the value of property dedication required for construction of the improvements, and any actual management and contingency costs. Developer shall maintain accurate records of all costs and payments eligible for such credit and shall segregate costs associated with offsite improvements and costs associated with the three-quarter (¾) street frontage improvements abutting the Developer Property. Such records shall be provided to the City in support of an application by Developer for such transportation impact fee credits. Credits may be applied against transportation impact fees for all phases of the Developer development,but in no event shall the total impact fee credits for transportation improvements awarded pursuant to this Agreement exceed the total amount of standard and supplemental transportation impact fees owing by Developer for its development. iv.If the City determines that the right of way required to construct the improvement is not available, Developer shall be given the option of paying a fee in lieu of construction in the amount of Developer’s share of the cost of the improvement or reducing the amount of any pending credit against transportation im pact 23 fees in the amount of Developer’s share of the cost of the improvement. G.SENSITIVE AREAS 34.Sensitive Areas Study and Native Growth Protection Area. Developer has submitted a sensitive areas study in support of the Concept Master Plan. Therein, the biologist has completed a delineation of all wetlands located on site and concluded there are no streams on site. The report further establishes buffers f or each onsite wetland. This study is considered the final report for purposes of the Master Plan, this Agreement and Phase 1 of the Project. The final report shall further serve as the basis for review of sensitive area impacts of development of the Prope rty through all remaining Phases. Based on the Master Plan wetland delineation, Developer shall develop a native grown protection area map which shall be reviewed and approved by the City, recorded against the Property and bind all development to the recor ded critical areas and their buffers for purposes of future entitlement for all Phases so long as developed consistent with the terms of this Agreement. To the extent Developer proposes any wetland or wetland buffer modifications,alterations or fill, the City reserves the authority to require further critical areas evaluation to comply with chapter 18.21, YMC, as vested to herein. 35.Sensitive Area Alterations and Mitigations.Developer shall have the option to propose sensitive alterations, buffer reductions, buffer averaging and to use other mitigation techniques in accordance with the provisions of Chapter 18.21 YMC. H.STORMWATER;SEWER;DOMESTIC WATER. 36.Stormwater System Design. The City and Developer agree upon the following adjustments to the City of Yelm Engineering Specifications and Standard Details (ESSD): a.No retention/detention facility shall be located within an area that is used to satisfy an open space requirement unless it is approved during Site Plan Review. ESSD 3.00.020 Part A. In the event trails or other active recreation is planned on or around retention/detention facilities,Developer shall receive a credit toward open space requirements for any such amenities and such use shall be counted toward the twenty percent (20%) open space estimation. b.The maximum depth of an infiltration facility (including but not limited to bioretention, infiltration pond, vaults) shall be seven feet from the bottom of the facility to the top of the facility or side slope. This depth will account for six feet of pondi ng depth and one foot of freeboard. Reference: 2024 Department of Ecology Manual, BMP 17.10. Infiltration facilities shall be designed with a minimum 3:1 side slopes, and if over four-point-five (4.5) 24 of ponding depth, a three-foot wide bench shall be provided halfway down the slope or a fence shall be installed around the entirety of the facility. c.The stormwater from individual lots (roof and footing drains) may be collected and conveyed with six-inch pipes and cleanouts and connect directly to catch basins within the Right-Of-Way. Up to six individual lots may share one six-inch pipe connection to a single catch basin in the Right- Of-Way. d.On-lot infiltration is anticipated for portions of the Project depending on site conditions. The design and location of the infiltration systems, including setbacks, will be determined by a licensed geotechnical engineer and will be specific to the site and lot conditions in each case. This will allow the Developer to minimize the size and impact of the trenches while still delivering a system that is appropriately designed for the application based on lot size,lot grade,soil type,and like considerations. e.The City will consider measures to address flow control needs of the Project and hydrology based on site conditions, wetland ratings and available stormwater management practices, such as dispersion devices based upon review of Developer’s civil engineer a nd biologist. f.All stormwater facilities (infiltration, detention and retention facilities) located on public property shall be owned and maintained by the City of Yelm. Private facilities on private lots, if used, will be owned and maintained by the homeowner. EDDS, Sec tion 3.00.100. g.Stormwater facilities shall be designed to accommodate the lot coverage assumptions. Impervious surface on private lots that exceeds the lot coverage assumptions may be managed by private facilities on the lot they serve. h.Stormwater facilities may be designed and constructed to serve multiple phases of the Project. Facilities constructed as part of an earlier phase may be expanded, modified, or supplemented to accommodate runoff from subsequent phases. i.Stormwater facilities approved and constructed under prior phase approvals shall be deemed compliant with the stormwater regulations in effect at the time of their approval and shall not be required to be retroactively modified to meet subsequently adopted stormwater regulations, provided that the originally approved treatment and detention volumes for such prior phases are preserved. j.In the event a stormwater facility is expanded or modified to serve additional phases, only the incremental improvements necessary to accommodate runoff from the new phase(s) shall be required to comply with the stormwater regulations in effect at the time of application for the subsequent phase. The previously approved and constructed portions of the facility shall not be 25 subject to re-evaluation or upgrade to current standards, except as necessary to ensure that: i.The total required stormwater volumes (existing and new) are fully provided, ii.The functionality and performance of the overall facility are not materially impaired, and iii.The expanded facility meets current standards solely with respect to the additional contributing area. iv.Nothing herein shall be construed to waive the requirement that the combined system, as expanded, provides the total required stormwater management for all contributing phases. 37.Sewer Lift Station Design. Developer has provided initial design for a gravity flow system, combined with lift stations, for sewer service across the Project as part of its Concept Master Plan. The City concurs with this design approach and has received final approval from the Was hington State Department of Ecology. a.In the event the City does not have standard details for sewer appurtenances related to gravity sewer, WSDOT standards shall be followed.Details provided by engineer of record or manufacturer shall also be acceptable. b.The City has confirmed sewer capacity for serving the Project for the following number of ERUs based on the following capacity measurements assuming detached and attached residential, up to approximately two hundred and forty (240) apartments, up to thirty thousand (30,000) square feet of commercial development, and all public dedication areas as improved: ESTIMATED WATER & WASTEWATER DEMAND Detached Multifamily Commercial Residential Commercial Park Total Phase Residential Residential SF ERUs ERUs ERU ERU Units Units s s 1 600 0 0 600 0 0 600 2 650 0 0 650 0 5 655 3 650 240 30,000 842 36 0 878 4 400 0 0 400 0 0 400 5 700 0 0 700 0 0 700 Total 3,000 240 30,000 3,192 36 5 3,233 26 38.Reclaimed Water. Developer has provided a reclaimed water design for the Concept Master Plan. The design extends reclaimed water along the Tahoma Boulevard through a twelve-inch main and provide loops therefrom in a smaller pipe size to provide reclaimed water to be used for irrigation purposes in open spaces. 39.Utility Separation and Cover. A five-foot (5’) separation horizontally between all non-potable utilities (such as sewer, storm, and reclaimed water) shall be allowed. A horizontal separation of ten-feet (10’) between potable water and non-potable utilities shall be met to the extent feasible. Where infeasible, alternate measures may be allowed, such as encasing the potable water, enhancing of pipe materials, or placement of the utilities in separate trenches, as allowed by the Washington State Department of Ecology “Orange Book”formally Criteria for Sewage Works Design. Vertical separation between non-potable utilities shall be a minimum of 6”. Vertical separations between non-potable and potable water, developer may request an adjustment to vertical utility separations (eighteen inches (18”) minimum), by providing altern ative safety measures. For example, six inch (6”) vertical separation with a casing or controlled density fill, throughout the Project or on a Phased or Division basis based upon reasonable justification, which may include economic or site design considera tions to allow for development yield objectives to be met. ESSD 4.00.150. Minimum and maximum cover over pipes may be adjusted to allow for maximum serviceability of the overall site. 40.Emergency Services. Developer shall dedicate a minimum of two acre s for City use for emergency services use which shall be located at a location to be determined by Developer but contained within Phase 1,located within the western area of Phase 1 so as to be centrally located to the Project and readily accessible to future Phases. Developer shall provide such dedication with the final plat of Phase 1, Division 2, consistent with Section 1 2. 41.Domestic Water and Water Tower. City has confirmed there is sufficient water rights, capacity and pressure to serve the Project, assuming construction of a water tower, pond and well. City will design and construct the water tower, pond and well based on the following funding parameters and for service to the Project upon issuance of the 500 th building permit. City will assume the first four million dollars in costs to allow for up front design and construction. City will fund the following two million dollars in construction costs from Water System Development Charges paid by the first 250 building permits in Phase 1. Developer will construct booster pumps for Phase 1 buildout as may be necessary, depending on City’s construction schedule. In the event reasonable construction costs exceed six million dollars, Developer will pay for up to two million dollars in actual costs and will be subsequently credited its Water System Development Charges on a per permit basis. 27 Thereafter City shall collect Water System Development Charges on a per permit basis for the remainder of the project. If construction is delayed, all Developer deadlines and performance obligations dependent upon water service availability shall be automatically extended for the duration of the delay, and Developer s hall not be deemed in default by reason of such delay. 42.Latecomers Agreements (Water; Sewer). In the event Developer constructs water and/sewer from the current terminus of Tahoma Boulevard to the Project which infrastructure is not otherwise funded, Developer shall be entitled to a latecomer agreement for a duration of not exceeding fifteen(15)years pursuant to YMC 13.12.010. 43.Site Grading. To achieve site-wide mass balance, the Developer shall be permitted to conduct grading, excavation (borrow), and/or stockpiling activities within areas of the Project site that are located outside the limits of the phase under active construction (“Off-Phase Areas”), including within future phases, provided that borrow and stockpiling activities shall be conducted only on portions of the Property that Developer has purchased and closed on under the PSA or that are subject to a written lease, easement or other license between the City and Developer. Borrow areas and stockpile locations shall be identified on the approved civil plans, including associated limits of disturbance, clearing, grading, and erosion and sediment control measures in accordance with applicable Cit y standards and permits. The City acknowledges that field conditions may necessitate adjustments to the location, configuration, and extent of such borrow and stockpile areas. Accordingly, the Developer shall be permitted to modify these areas in the field, provided that: Such modifications are consistent with the overall intent of the approved plans, Appropriate erosion and sediment control measures are implemented and maintained, and The modifications are documented and submitted to the City as part of record drawings and/or through applicable field revision or inspection processes, as determined by the City. No additional discretionary approvals shall be required for such adjustments, provided the work remains within the Project boundaries and complies with applicable grading, drainage, and environmental regulations. All disturbed Off-Phase Areas shall be stabilized in accordance with City standards and permit requirements until such time as they are developed under a subsequent phase. 28 Grading within on-site slopes identified as geologically hazardous areas may be permitted when supported by a geotechnical report prepared by the Project geotechnical engineer. Such areas may be regraded, stabilized, and improved as engineered slopes in ac cordance with the geotechnical recommendations,provided that the design demonstrates long-term stability. Where a geologically hazardous area is regraded and constructed as an engineered slope in accordance with an approved geotechnical design, the associated geologic hazard buffer may be reduced or eliminated, as appropriate, provided that: The geotechnical report demonstrates that the regraded slope achieves a factor of safety and performance standard consistent with or exceeding applicable code requirements, The need for the buffer is mitigated through engineering design, including slope geometry, reinforcement, drainage controls, and erosion protection measures, and The City concurs that the engineered condition no longer warrants the full extent of the standard buffer. Any modified or eliminated buffer shall not be required to be re-established in future phases,provided the engineered slope remains in place and continues to perform as designed. 44.Road Standards.Developer and the City will, to the extent feasible, work to modify applicable road standards in order to implement low impact development techniques. Such techniques may require deviations from road standards, which will be considered through the City’s road standards variance process. 45.Tahoma Boulevard Road Standard.The improvements to Tahoma Boulevard shall be constructed in accordance with the City of Yelm Engineering Development Design Standards (“EDDS”), as shown on Exhibit C(excerpted roadway standards) and except as specifically agreed to per modified Tahoma Boulevard roadway section, as shown on Exhibit D. 46.Internal Road Standards.The improvements to these roads, alleys and access tracts shall be constructed in accordance with the EDDS, as shown on Exhibit E (excerpted roadway standards) and except as specifically agreed to below: a.Developer shall be allowed adjustments and/or deviations from the adopted minimum street design standards including but not limited to road grades, right of way widths, and curb radius, which shall be subject to City approval that shall not be unreasonably withheld and may be conditioned on reasonable requirements. 29 b.All road section details that have a varying buffer, which is noted “to be determined by the City Engineer”, shall be zero (0). c.City Curb ramp detail 2-12 is not compliant with current ADA and PROWAG standards, WSDOT curb ramps shall be sure for the site. d.Alley standards.Alleys shall be utilized for rear loaded product and follow the standards below i.Alleys shall be twenty(20)feet wide and accepted as public roadways. ii.Alleys maybe be inverted crown or supered to one side as demonstrated on Exhibit F. iii.Alleys shall include stormwater collection conveyance. While other utilities are not anticipated to be placed in Alleys,developer reserves the right to run any other utility necessary to serve to units within the alley such that utility separations, as provided herein, and appropriate easements are provided. e.Developer shall be entitled to construct three-quarter (¾) street improvements (including sidewalks and landscaping on one side of the road and two travel lanes) where any roadway is bifurcated between Phases, Divisions or property boundaries. The City wil l review any such proposed three-quarter (¾) street improvement on a case-by-case basis to apply reasonable conditions regarding adequate and safe transportation of vehicles and pedestrians, and for future full street construction where a three-quarter (¾)street exists along a Phase or Division boundary. f.On Street Parking.On street parking is allowed on all internal roads except along Tahoma Boulevard and collector roads which interconnect Phases and Tahoma Boulevard. Developer may use a local street standard cross- section for any collector (same overall ROW) where alley-lo aded residential product lines both sides of the fronting roadway. g.Off street Parking. Off-street parking may be provided in private driveways, garages or off-street parking lots.Driveway parking shall be 8.5 feet wide by 20 feet deep,min. h.Street Corners. Given the Project development as a Master Plan, the City agrees that site planning for individual entitlement applications need not meet the provisions set forth in YMC 18.59.060 for purposes of single family and townhome residential units. i.Contractor shall be allowed to use onsite suitable materials for subbase in 30 lieu of import gravel base. Geotechnical engineer shall review on site materials and compaction must still be met. 47.Deviations or Adjustments from Engineering Standards.Developer may require certain engineering standard and specification deviations or adjustments to accommodate development as anticipated under the Concept Master Plan. The parties have attempted herein to list those potential areas of deviation or adjustm ent that could be needed but recognize that it is impossible to anticipate any or all necessary requests. The City agrees to accept and process any deviation or adjustment request and provide a decision within thirty (30) days, absent extenuating circumstances. The City shall review each such request in its reasonable discretion and may approve, approve with reasonable conditions, or deny the request based on sound engineering judgment, consistency with the Concept Master Plan, a nd compliance with the applicable provisions of the YMC and this Agreement. In the event of disagreement over any City decision, the City shall provide a written decision with administrative appeal opportunity to the City’s Hearing Examiner to be resolved on an expedited basis as provided for in Section 6. I.PARKS,RECREATION,OPEN SPACE,AND PEDESTRIAN CONNECTIONS 48.Parks and Recreation. At least one public park of a minimum size of 10 acres shall dedicated, or otherwise set aside and retained in City ownership, as part of Phase 2 of the Project,unless otherwise agreed in writing by the City.The 10-acre public park dedication space shall be situated so that it is located centrally to all phases at the location depicted and amenities outlined on the Concept Master Plan or similar location which serves the equivalent purposes and approved by the City Administrator pursuant to Section 5. The purpose of the public park is to serve as a focal point and organizing element for Project,including both the commercial/mixed-use area and residential neighborhoods for their use and enjoyment. The City recognizes that the value of this dedication was bargained for with the PSA and constitutes Developer’s reasonable contribution towards park impacts of the Project. Developer shall propose, fund, and construct the park amenities, including but not limited to amenities supporting events and recreational open space or play area(s)up to a total cost of two million dollars, which amount shall be adjusted annually on each anniversary of the Effective Date by the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Seattle-Tacoma-Bellevue area published by the United States Bureau of Labor Stati stics.The park improvements shall be completed as of Phase 3 completion (defined above as 75% occupancy). 49.Open Space. Inclusive of the above park area, Developer agrees to set aside at least twenty percent (20%) of the total site area to a combination of public and private, active and passive, open spaces. This calculation is based on a Project-wide basis; 31 each Phase will have varying amounts of open space depending on the phase characteristics, development layout and location of critical areas. These open spaces include public park area(s), community meeting spaces, event spaces, trails, private parks (incl uding pocket parks), critical areas and buffers. Stormwater ponds are not counted toward open space calculations however activated spaces around ponds and/or over stormwater vaults would count toward open space calculations. At least one active open space area will be located within every division of a Phase.Pocket parks are to be owned and maintained by the Phase and Division homeowner association. Active open spaces shall include, but not be limited to the following outside privately owned yards: (i)Playgrounds developed with children’s play equipment; (ii)Improved pedestrian or bicycle paths with hard or soft surfaces; (iii)Sports fields with associated improvements; (iv)Indoor or outdoor sports courts(such as volleyball,basketball or tennis courts), swimming pools, and similar facilities; (v)Picnic areas with permanent tables,benches or gazebos; (vi)Community clubhouse and meeting facilities; (vii)Community gardens for use by the residents; (viii)Plazas with lighting,artwork,and sitting space for pedestrians (ix)Outdoor exercise facilities and courses (x)Pet relief strips and play areas;and (xi)Other similar uses. 50.Pedestrian Connectivity. a.There shall be pedestrian and visual connectivity between Phases and Divisions. b.Sidewalks may be utilized as pedestrian connections between parks in addition to unpaved trail systems. c.A mix of paved and soft-surface trails and paths will be provided throughout the site for interconnectivity of open spaces, parks and amenities. Options for trails include wood chip/hog fuel, compacted soils, gravel, asphalt and concrete. Trail materials will be based on use and site design. Trail sections are provided in Exhibit G. Sections are provided in concept only and materials, width, and design of trails may differ from shown. d.To the extent that adjacent phases or properties are currently undeveloped, temporary barricades shall be installed at the ends of the pedestrian connections in order to discourage unauthorized or unsafe access onto such other properties. e.Those trails and paths which are paved shall comply with applicable ADA 32 requirements in accordance with applicable law. J.MISCELLANEOUS 51.Construction.The requirements of this Agreement are intended to complement and expand on the requirements in the City of Yelm Municipal Code. To the extent that a conflict exists between this Agreement and the YMC, the terms of this Agreement shall control. The City an d Developer shall cooperate in good faith and in a spirit of cooperation and fair dealing in the interpretation and application of the terms of this Agreement. 52.Parties and Authority.The signatories to this Agreement represent that they have the full authority of their respective entities to commit to all terms of this Agreement, to perform the obligations hereunder and to execute the same.A memorandum of this Agreement shall be recorded and a complete copy kept at Yelm City Hall and made available to anyone requesting review or a copy consistent with the Washington State Public Records Act. 53.Transfer of Obligations and Assignments. a.Assignment of Interest After Closing. Developer shall have the right to assign or transfer all or any portion of its interests, rights, obligations, or responsibilities under this Agreement to third parties acquiring an interest in any portion of the Prope rty that Developer has closed on under the PSA. b.Assignment of Interest Prior to Closing. Prior to entitlement of any Phase of the Project, Developer shall be entitled to assign its interest subject to the terms of the PSA.Developer may assign all or any portion of its rights and obligations under this Agreement, whether to an affiliate, merchant builder, parcel taker, financing entity, or other successor in interest, upon written notice to the City together with an assumption agreement executed by the assignee. City consent, not unreasonably withheld, shall be required for any assignment of rights or obligations relating to an unbuilt Phase or to Project- wide infrastructure. The assigning Developer’s release from liability with respect t o the transferred property shall take effect only upon a written assumption agreement and the City’s written confirmation of the assignee’s capacity to perform. City consent shall not be required for assignments to affiliates or for transfers of lots,tracts,divisions,or phases to builders or purchasers that assume the applicable obligations for the transferred property. Upon effectiveness of any assignment and assumption, assigning Developer shall be released from liability for obligations first arising after the effectiv e date of assignment with respect to the transferred property, except for obligations expressly retained in writing. c.No Creation of Master Developer Relationship. Under no circumstance will assignment create a Master Developer relationship under this Agreement. 33 54.Voluntary Agreement.The Parties intend and acknowledge that this Agreement is a voluntary contract binding upon the Parties hereto, as well as their successors and assigns. 55.Amendment of Agreement This Agreement may be amended only by a written instrument executed by Developer and approved by the City in the manner required for the particular amendment classification under Section 5 of this Agreement. 56.Applicable Law and Venue.This Agreement is entered into under the laws of the State of Washington, and the Parties intend that Washington state law shall apply to interpretation of this Agreement. Venue and jurisdiction to enforce all obligations under this Agreement shall lie in Thurston County Superior Court. 57.Default. No party shall be in default under this Agreement unless it has failed to perform as required under this Agreement for a period of thirty (30) days after written notice of default from the other party. Each notice of default shall specify the nature of t he alleged default and the manner by which the default may be cured satisfactorily. If the nature of the alleged default is such that it cannot be cured within the thirty (30) day period, then commencement of the cure within such time period and the diligent prosecution to completion of the cure activities shall be deemed a cure. Any disputes under this section shall be resolved pursuant to the Dispute Resolution terms herein. 58.Dispute Resolution. In the event of any dispute between the City and Developer arising from this Agreement, including but not limited to deadlines, duties of parties, material breach, or damages but excluding determinations made under Sections 5 and 6, the parties will firs t attempt to resolve the dispute informally. If informal resolution fails, the Parties shall participate in good-faith, non-binding mediation. If mediation does not resolve the dispute, either party may bring an action in Thurston County Superior Court. Th e Parties may, only by separate written agreement entered after a dispute arises, submit that dispute to binding arbitration; no dispute concerning land use regulations, public dedications, or other matters of public law shall be subject to mandatory or bi nding arbitration. The parties shall attempt to agree on a mutually acceptable mediator during the next thirty days.If agreement is not reached within such time period,either party may request that the Presiding Judge of the Thurston County Superior Court appoints an arbitrator. The arbitration shall be conducted pursuant to the Rules of the American Arbitration Association, regardless of whether the arbitrator is a member of that Association. The arbitrator’s fee shall be divided equally between the parties, provi ded the arbitrator shall award costs,including the arbitrator’s fee,to the prevailing party if the arbitrator determines that a party has pursued claims in bad faith or claims which are frivolous. This section shall not apply to any action subject to Section 6, above. 59.Attorneys’ Fees and Costs.In any arbitration or judicial action to enforce or 34 determine a party's rights under this Agreement, the prevailing party (or the substantially prevailing party, if no one party prevails entirely) shall be entitled to reasonable attorneys' fees and costs, including fees and costs incurred in the appeal of a ny ruling of a lower court. In the event of litigation or arbitration between the parties hereto, declaratory or otherwise, in connection with this Agreement, the prevailing party shall recover its reasonable costs and attorneys' fees actually incurred, in cluding for appeals, which shall be determined and fixed by the court or arbitrator as part of the judgment, provided the parties hereby agree that the amounts actually charged to the parties by their respective counsel shall be presumed to be reasonable by any court or arbitrator and shall not be reduced or increased unless the court or arbitrator specifically finds that the rates for such legal work were unreasonable or that some portion of the legal work was unnecessary or performed without justification. 60.Severability.If any term or provision of this Agreement, or its applicability to a particular situation, is found to be invalid, void or unenforceable by a court of competent jurisdiction, then the remaining provisions of this Agreement shall continue in full force and effect unless and to the extent the remaining provisions, if implemented, would be inconsistent with or otherwise fail to carry out the mutual intent of the Parties. 61.Mutual Drafting and Construction.The Parties agree that both Parties participated fully in the negotiation and drafting of this Agreement and the rules of construction of ambiguities against the drafter shall not apply to either Party. The Parties acknowledge that all placeholders, drafting notes, bracketed alternatives, and incomplete exhibit references shall be removed and finalized before execution of the Agreement. 62.No Third Party Beneficiaries.Except and only as may be set forth explicitly herein, nothing in this Agreement is intended to create any third-party beneficiary relationship whatsoever, nor any right of a third party to appeal or otherwise demand interpretation or dispute resolution un der this Agreement. 63.No Joint Venture.Nothing in this Agreement is intended to create any type of joint venture or partner relationship between the City and Developer as to the Property or its development. 64.Binding; Successors and Assigns.The terms of this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto. This Agreement runs with the land and does not operate to limit or expand the rights of any Party to assign its interests. 65.Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed given when personally delivered, when sent by electronic mail with confirmation of receipt, or three (3) business days after deposit in the United 35 States mail, postage prepaid, registered or certified, return receipt requested, addressed to the Parties below, or to such other address as a Party may designate by written notice to the other. Nothing in this Section modifies or replaces notice requirements applicable to Project Permit applications or approvals under the Yelm Municipal Code or state law, which are governed by those provisions. To the City: To the Developer: Blue Fern Development 18300 Redmond Way, Suite 120 Redmond, WA 98052 Attn: Benjamin Paulus Email: ben@bluefern.com Phone: (360) 708-9130 with a copy to: Blue Fern Development 18300 Redmond Way, Suite 120 Redmond, WA 98052 Attn: Duana Kolouskova Email: duana@bluefern.com Phone: (206) 200-8986 66.Entire Agreement. This Agreement, together with the Exhibits attached hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings relating to that subject matter, provided that this Agreement does not supersede, and shall be read together with, the Purchase and Sale Agreement and the Tahoma Boulevard Agreement between the Parties. 67.Recording. This Agreement shall be recorded by the City with the Thurston County Auditor in accordance with RCW 36.70B.190 and shall run with the Property as provided in this Agreement. 68.Incorporation by Reference. All Exhibits and appendices attached to this Agreement are incorporated by reference as though fully set forth herein. 69.Waiver. The waiver by either Party of the performance of any covenant, condition, or promise under this Agreement shall not invalidate this Agreement, nor shall it be considered a waiver of any other covenant, condition, or promise. No waiver shall be effective unless in writing and signed by the Party against whom it is asserted, 36 and the exercise of any remedy provided by law or under this Agreement shall not exclude any other consistent remedy. 70.Time is of the Essence. Time is of the essence of this Agreement and of each provision in which the time of performance is a factor. 71.Compliance with Laws. Throughout the Term, and subject to the vesting and other provisions of this Agreement, Developer shall, at its sole cost and expense, comply with all applicable laws and ordinances as they relate to the Property and the Project. To the extent Developer's compliance requires the cooperation of the City, the City shall use reasonable efforts to cooperate. 72.Indemnification. To the maximum extent permitted by law, Developer shall defend, indemnify, and hold harmless the City and its officers, officials, employees, and agents from and against any and all claims, actions, suits, liabilities, losses, costs, and expenses, includ ing reasonable attorneys' fees, arising out of or resulting from (a) Developer's performance of, or failure to perform, its obligations under this Agreement; (b) Developer's design or construction of any public or private improvements contemplated by this Agreement, or Developer's activities on City- owned property during phased development; and (c) any third-party challenge to the validity of this Agreement or to any approval granted by the City under it, including any petition under Chapter 36.70C RCW, pro vided the City promptly tenders the defense and reasonably cooperates. This indemnity does not extend to claims caused by the sole negligence or willful misconduct of the City, is in addition to and not in limitation of any indemnity in the Purchase and Sa le Agreement, and shall survive the expiration or termination of this Agreement 73.Survival.The following provisions of this Agreement, and any other provision that by its nature is intended to survive, shall survive the expiration or termination of this Agreement: the Dispute Resolution provisions; the Indemnification provisions; the Attorneys'Fees and Costs provisions; the cost allocation upon lapse set forth in Section 1; the continuation of vesting for any preliminary plat not yet final platted and its associated Project Permits as provided in Section 3; the No Third Party Beneficiaries prov ision; the Applicable Law and Venue provision; the Recording provision; the rights and obligations of the Parties under the Tahoma Boulevard Agreement; and any accrued payment, reimbursement, or indemnification obligations, or other matters necessarily involving material rights or obligations necessarily extending beyond the expiration of any Term of this Agreement or the termination hereof. 74.Exculpation. Notwithstanding any other provision of this Agreement, there shall be no personal liability on the part of any individual officer, official, employee, or director of the City or the Developer with respect to any of the obligations, terms, covenants, or c onditions of this Agreement, and each Party shall look solely to the 37 other Party, or to any assignee or successor in interest, for the satisfaction of any remedy available in the event of a breach by the other Party. 75.Counterparts.This Agreement may be executed in counterparts. Dated as of the day and year first above written. [signatures on next page] 38 CITY OF YELM Attested by: By Joseph DePinto,Mayor,City Clerk Approved as to form: Brent Dille, City Attorney Date:,2026. STATE OF WASHINGTON) )ss. COUNTY OF THURSTON) I hereby certify that I know or have satisfactory evidence that Joseph DePinto is the Mayor of the City of Yelm, a Washington municipal corporation, and is the person who appeared before me, and acknowledged that he signed this instrument on behalf of such City,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such City for the uses and purposes mentioned in this instrument. DATED: . Notary Seal _ (Print Name) Notary Public 39 Residing at My appointment expires: 40 YELM MPC,LLC,a Washington limited liability company By Ben Paulus, its President Date: ,2026. STATE OF WASHINGTON) )ss. COUNTY OF THURSTON) I hereby certify that I know or have satisfactory evidence that Ben Paulus is the President of Yelm MPC, LLC, a Washington limited liability company, and is the person who appeared before me, and acknowledged that he signed this instrument on behalf of such limited liability company, on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of the limited liability company for the uses and purposes mentioned in this instrument. DATED: . Notary Seal _ (Print Name) Notary Public Residing at My appointment expires: 41