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Thurston County and City of Lacey
Memorandum of Understanding
Relating to the Joint Purchase, Ownership, Use and Maintenance of Future Recreational Lands

THIS AGREEMENT is made this ________ day of ____________, 2000 by and between Thurston County, a subdivision of the State of Washington, hereinafter called "County" and the City of Lacey, Washington, a municipal corporation, hereinafter called "Lacey".

WHEREAS, there exists a substantial regional need for additional active recreational fields and facilities within both the incorporated and unincorporated portions of Thurston County, and

WHEREAS, the regional need for such additional recreational lands can best be met through cooperative efforts of the County and the various cities located within the County including such actions as the joint purchase and ownership of recreational lands, the cooperative development of such lands, and the sharing of costs of maintaining recreational facilities, and

WHEREAS, the parties have jointly explored the availability of recreational lands and have determined that there exists a parcel of land of sufficient size and in a location which will serve the needs of residents both in the City of Lacey and Thurston County, and

WHEREAS, the County has funds available derived from the Conservation Futures Program and Lacey has funds from a dedicated source of utility taxes which funds can be used to carry out the terms of this agreement,

NOW, THEREFORE, it is hereby agreed between the parties as follows:

1. The parties hereby agree that they shall jointly purchase, in accordance with the "Agreement for the Purchase and Sale of Real Estate" attached hereto as Exhibit "A", that certain parcel of real property described in such exhibit. The initial obligations of each of the parties shall be as follows:

A. The County shall pay the purchase price and closing costs upon closing of the purchase and sale.

B. Lacey shall, through an agreement with other property owners, pay the pro-rata share of sewer line extension costs attributable to such described real property.

C. Lacey shall pay to the County, an amount equal to ½ of the total of the purchase price and closing costs for said real property. The County shall use at least a portion of the funds pursuant to this subparagraph for the preparation of a site master plan and the first stage of recreational development upon such real property.

It is the intent of the parties that they shall ultimately expend equal amounts towards the purchase of the land, preparation of a master plan or plans and site development. In accordance with this intent, the County shall be given credit for all sums expended pursuant to subparagraph (A) of this section. Lacey shall be given credit for all sums paid to the County pursuant to subparagraph (C) of this section. Further, Lacey shall be given credit for the net amount of sewer line extension costs paid by Lacey after deducting any reimbursement from subsequent connectors to such line, provided however, that such credit shall not exceed the sum of $250,000. Not withstanding any provision in this section to the contrary, such credit, when due, shall be adjusted in a manner which, after considering the net interest paid or lost by Lacey on such costs at the State Local Government Investment Pool rate and all other amounts expended by the parties, will result in equal total expenditures by each party. This latter credit shall be effective at such time as the property is connected to public sewer for park development purposes. The amount and timing of all other expenditures by the parties for planning and development shall be subject to the availability of funds and require the mutual agreement of the parties.

2. A master plan for development of the site, including phasing, cost estimates, methods of financing development and a facility management plan shall be approved by each of the parties prior to being implemented.

3. During such time as the parties jointly own the property, all revenues received in any manner from the property or its use shall be dedicated to the operation, maintenance and capital costs for the facility. It is the intent of the parties that maintenance and operation costs of the facility will, to the maximum extent possible, be covered by facility use and user fees. However, if costs of maintenance, operation, and capital expenditures exceed such revenues, such excess costs only shall be the joint and equal responsibility of the parties.

4. The parties shall own the property as joint tenants. They may mutually agree to a different ownership status at any time during the first fifteen (15) years following the date of closing of the purchase of the property. After the expiration of fifteen (15) years, the County may, in its sole discretion, transfer its share of ownership to Lacey, provided, that at such date, the County has expended funds for purchase, planning, development, maintenance, operation and additional capital costs in an amount at least equal to that expended by Lacey. When Lacey becomes sole owner of the property and facilities located thereon, Lacey, from that date forward shall be entitled to all revenue and shall be solely responsible for all development, maintenance and operation of the property and facilities located thereon.

5. Each of the parties will further the regional cooperation emphasis set forth in this memorandum by encouraging active participation and use by all citizens of the County in order to provide the maximum recreational opportunities and offset the costs of development, maintenance and operation. The parties will further cooperate together and with all others in seeking grants and other sources of funding to maximize the potential recreational attributes of the property.

6. The parties shall, through their authorized officers, sign the Purchase and Sale Agreement in the form set forth on Exhibit "A" or as such Purchase and Sale Agreement shall be modified through the agreement of both parties.

Dated the day and date first above written.

CITY OF LACEY THURSTON COUNTY

___________________________ ________________________

Greg J. Cuoio, City Manager Commissioner

________________________

Commissioner

________________________

Commissioner

Approved as to form: Approved as to form:

________________________
Kenneth R. Ahlf, Lacey City Attorney

______________________________
David Klumpp, Deputy Prosecuting Attorney

Thurston County