HomeMy WebLinkAboutExhibit 27 - MJS Investors-City of Arlington Development Agreement 202512110493
AGREEMENT
Rec:$317.50
12/11/2025 3:41 PM 1 of 15
SNOHOMISH COUNTY,WA
Electronically Recorded
WHEN RECORDED RETURN TO:
MJS Investors Acquisition
11400 SE 8t1i Street, Suite 200
Bellevue,WA 98004
Attn: Rob Risinger
CTI-NCS-241434-SC
CTI-NCS-240887-SC
CTI-NCS-241012-SC
CTI-NCS-240888-SC
CTI-NCS-251459-SC
CTI-NCS-240914-SC
CTI-NCS-251457-SC
CTI-NCS-251458-SC
DOCUMENT TITLE(S)
Development Agreement
REFERENCE NUMBER(S) OF DOCUMENTS ASSIGNED OR RELEASED:
GRANTOR(S).
City of Arlington,a Washington municipal corporation
GRANTEE(S).
MJS Investors Acquisition, LLC, a Washington limited liability company
ABBREVIATED LEGAL DESCRIPTION:
Portion NW 1/4 of Section 25-31N-5E; and
Lots 1, 2,3,4,5,6, 7 of Large Tract Segregation rec#9003160385 in NE 1/4 Section 26-31N-5E,
Snohomish County
Full legal on attached Exhibit "C"
TAX PARCEL NUMBER(S)c
31052600100200,31052600102300,31052600100100,31052600102200,31052600101700,
31052500200600,31052600102000, and 31052600102100
CHICAGO TITLE INSURANCE COMPANY
has placed the document of record as
a customer courtesy and accepts
no liability for the accuracy or validity LPB 01-05
of the document.
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DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT ("Agreement") is made and entered into this
day of t _, 2025, by and between the CITY OF ARLINGTON, a Washington municipal
corporation ("City"), and MJS INVESTORS ACQUISITION, LL.C, a Washington limited liability
company ("MJS")(together,the"Parties", and individually, a"Party").
I. RECITALS
WHEREAS, the Washington State Legislature has authorized the execution of
development agreements between a local government and an individual or entity having ownership
or control of real property within its jurisdiction, pursuant to RCW 36.70B.170 through RCW
36.70B.210;
WHEREAS, Chapter 20.39 of the Arlington Municipal Code ("AMC" or "Code") further
authorizes the City to enter into a development agreement pursuant to the regulations set forth therein;
WHEREAS, the City, in partnership with MJS, is in the process of creating the Lindsey
Subarea Plan to provide a policy and permitting framework to encourage development of housing,
investment of safe,multimodal connectivity,create a well-connected network of parks and open space,
and enhance the natural environment that will apply to an approximate 87.49 acres area bounded by
SR 531 (172"d St NE)on the north,the 840 Ave NE alignment on the east, the 168`' St NE alignment
on the south, and the 75`h Ave NE alignment on the west("Lindsay Subarea Plan");
WHEREAS,the City and MJS have expended significant time,effort,and financial investment
into the creation of the Lindsay Subarea Plan;
WHEREAS, the City anticipates the Lindsay Subarea Plan will be adopted into the
Comprehensive Plan and Code in early 2026;
WHEREAS, pursuant to the State Environmental Policy Act ("SEPA"), on September 26,
2025, the City published a Draft Environmental Impact Statement that evaluated all probable
significant adverse environmental impacts and recommended appropriate mitigation for the
development proposed by the Lindsay Subarea Plan ("DEIS");
WHEREAS, MJS is under contract to purchase, has control of, and intends to develop the
real property located in the City of Arlington,within the future Lindsay Subarea and identified as
Snohomish County Parcel Nos. 31052600100200, 31052600102300, 31052600100100,
31052600102200, 31052600101700, 31052500200600, 31052600102000, and 31052600102100
(collectively the "Site"), with residential single-family homes and as further detailed below
("Project");
WHEREAS, the City and MJS desire to provide certainty with respect to development
standards and regulations that will apply to the Project in order to achieve the development
mandated by the Lindsay Subarea Plan;
WHEREAS,the City goals and benefits to the public from the development of the Project
include not wasting the significant public investments in creating the Lindsay Subarea Plan, as
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well as providing needed housing, producing positive economic impacts to the City, promoting
environmental quality, and mitigating financial risk for City funds;
WHEREAS, a development agreement must be approved by ordinance or resolution after
a public hearing;
WHEREAS, a public hearing for this Agreement was held on December 1, 2025, and the
City Council approved this Agreement on December 1, 2025;
WHEREAS, this Agreement constitutes a final land use action pursuant to RCW
36.70C.020 and is subject to review pursuant to RCW 36.70C.005 et seq; and
NOW, THEREFORE, in consideration of the mutual promises set forth herein and the long-
term benefit to both the City and MJS,the Parties hereby agree as follows.
II. AGREEMENT
A. Project. MJS proposes developing the Site with approximately 224 single-family homes,
as shown on the conceptual site plan attached hereto as Exhibit A("Conceptual Site Plan"). MJS
estimates construction of the Project will be complete within 10 years, but this timeline is subject
to change.
B. Lindsay Subarea Plan Adoption and Application. The Parties agree the Project shall be
subject to and governed by the Lindsay Subarea Plan following Arlington City Council's adoption
of the Lindsay Subarea Plan and it becoming effective. The Parties further agree the Project shall
be subject to all Code provisions concurrently adopted by the City Council to implement the
Lindsay Subarea Plan("Adopted Lindsay Subarea Standards").
C. Vesting. The Parties agree that notwithstanding the Project being subject to and vested to
the Adopted Lindsay Subarea Standards,the Project is otherwise vested to the Code in effect as of
the date of this Agreement and as modified by this Agreement(collectively,"Vested Standards").
The Vested Standards specifically include Chapter 20.93 "Critical Areas Ordinance"of the Code,
as well as development regulations, policies, procedures and guidelines addressing zoning,
environmental review, building and site design, utilities, transportation, and other laws. Except
for the Adopted Lindsay Subarea Standards and as stated otherwise herein, any amendments to or
additions to the Code shall not apply to the Project.. To the extent the Adopted Lindsay Subarea
Standards cross-reference a Code provision outside the Adopted Lindsay Subarea Standards, the
vested version of that cross-referenced Code provision shall apply.
D. Future Amendments to Code. MJS may request to be bound by future amendments to the
Vested Standards, which request shall be granted by the City's Community and Economic
Development Director unless granting such request would create a serious threat to public health
and safety. In the event such vesting to codified amendments is requested and granted, MJS shall
vest to the regulations and standards set forth in the entirety of the applicable Chapter set forth in
Code.
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E. Vested Critical Areas Stream Buffer and Regulations. Consistent with Section 3.2.3 of the
DEIS and the planned Code amendments contemplated therein, the buffer of Edgecomb Creek/
Stream L shall be 50 feet, as generally depicted on Exhibit B, and the following provisions
regarding wetland buffers shall apply to the Project:
1. A 25%wetland buffer reduction beyond the minimum wetland buffer requirements
identified in AMC Table 20.93-4 is allowed if the wetland is enhanced with native tree and
shrub plantings and non-native invasive plants are removed; and
2. Buffer averaging of wetlands beyond the minimum wetland buffer requirements
identified in AMC Table 20.93-4 and including reduced wetland buffers per Section II.D.1
above is allowed if the wetland is enhanced with native tree and shrub plantings and non-
native invasive plants are removed.
F. Park Requirement. In satisfaction of AMC 20.44.032(f)(3)(iv), it is understood that this
Code requirement will apply to the entirety of the Lindsay Subarea and to the extent any parks,
public or private,are provided in connection with the Project, such parks may be smaller than two
(2)acres but still count towards satisfaction of the Code requirement.
G. 79t' Avenue NE Dedication. MJS agrees to dedicate and the City agrees to accept
dedication of that portion of 79'Avenue NE that is adjacent to the Site,unless otherwise mutually
agreed by the Parties.
H. 791h Avenue Creek Crossing. The City agrees that to the extent MJS is required to construct
a creek crossing along 79`h Avenue over the portion of the creek between Snohomish County Parcel
Nos. 31052600100200 and 31052600101800,the crossing will not be required in connection with
the first phase of development of the Project and will instead be required during a subsequent
phase.
1. Utilities. Utilities infrastructure improvements shall be provided in connection with and
as necessary to satisfy the proportionate requirements of each respective phase of Project
development,as summarized in Section II.L.
J. Oversized Water, Sewer, and Stormwater Credits. MJS shall be entitled to utilize any
future reimbursement program implemented by the City to secure reimbursement of the cost to
construct oversized utilities that may be required by the City. Consistent with Section 1L1, above,
oversized utilities shall include facilities with increased capacity and/or extensions of
infrastructure beyond what is necessary to satisfy the proportionate requirements of each
respective phase of Project development.
K. Cost Recovery/Latecomer Agreements. The City agrees to cooperate with MJS to timely
review and act on requests for cost recovery agreements in accordance with AMC Chapters 13.28
(stormwater), 13.02(water), and 13.08 (sewer), and Ch. 35.91 RCW.
L. Development in Multiple Phases. MJS plans to construct the Project in multiple phases.
Phase 1 is anticipated to consist of lots 1-167 and Phase 2 is anticipated to consist of lots 168-224.
The aforementioned phasing is an estimate and MJS shall have the discretion to determine the
number of phases,units within each phase, and sequence of phased development based on market
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demand. As phases are completed, and consistent with the requirement of Section II.I, the City
will not delay certificates of occupancy for the current phase based on improvements required for
a future phase.
M. SEPA Review. The Parties agree that the SEPA review conducted for the Lindsay Subarea
Plan is expected to fully address all requirements mandated by SEPA for any future permit
applications to entitle and buildout the Project. Therefore, consistent with WAC 197-11-600, the
City,as SEPA lead agency,agrees to satisfy any future SEPA requirements for the Project by using
existing environmental documents to the maximum extent possible and provided for by law.
N. Modifications to Conceptual Site Plan. The Parties recognize MJS may modify aspects of
the Project to accommodate market demand, better situate the location of buildings and other
improvements, and otherwise respond to future development realities. These modifications are
expressly provided for within the scope of this Agreement and without vitiating the vested rights
established herein,provided that such modification qualifies as an"insignificant design deviation",
"minor amendment",or"major amendment"as set forth in AMC 20.16.370.
O. Term of Agreement and Periodic Review. The Agreement is effective as of the date it is
recorded. The term of the Agreement shall initially be five (5) years from the date the date of
Phase 1 preliminary plat approval and shall automatically extend an additional five(5)years upon
Phase 2 preliminary plat approval. The Parties may extend either the initial or total term for two
(2) years each, upon mutual agreement of MJS and the City's Director of Community and
Economic Development. It is the intent of the Parties that the rights and obligations of this
Agreement shall apply to permits and/or approvals applied for during the term of this Agreement.
During the term, MJS shall provide an annual evaluation of the Project status. In the event the
Lindsay Subarea Plan is not adopted by the City Council by December 31, 2026, this Agreement
shall automatically terminate and be of no further legal force of effect.
P. General Terms.
1. City's Reserved Rights. Notwithstanding any other provisions of this Agreement,
pursuant to RCW 36.70B.170(4), the City reserves authority to impose new or different
officially adopted regulations of general applicability to the extent required by a serious
threat to public health and safety,as determined by the Arlington City Council after written
notice and an opportunity to be heard has been provided by MJS.
2. Relationship of Parties. The Parties to this Agreement are independent and nothing
in this Agreement is intended to create a partnership,joint venture or other entity.
3. No third-party beneficiaries. This Agreement is solely for the benefit of the Parties
hereto, and no third-party shall be entitled to claim or enforce any rights hereunder except
as specifically provided herein.
4. Severability. In the event any part of this Agreement is declared void or invalid,the
remaining portions of this Agreement shall not be affected but shall remain in full force
and effect.
5. Modification.The obligations of the Parties to this Agreement may not be modified,
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amended or waived except by written execution by all Parties.
6. Notices. All notices, demands or other communications required or permitted to be
given under the provisions of this Agreement shall be in writing and shall be considered as
properly given if delivered personally or sent by United States Postal Service first class or
overnight express mail or by overnight commercial courier service, postage and other
charges prepaid.Notices so sent shall be effective three(3)days after mailing,if mailed by
first class mail, and otherwise upon receipt at the address set forth below, provided,
however, that non- receipt of any communication as the result of any change of address of
which the sending Party was not notified or as a result of a refusal to accept delivery shall
be deemed receipt of such communication, if addressed as follows, or as later designated
in writing:
City of Arlington MJS
ATTN: ATTN: Rob Risinger
Community and Economic Development 11400 SE 81'Street, Suite 200
City of Arlington Bellevue,WA 98004
238 North Olympic Avenue
Arlington, WA 98223
7. Execution in Counterparts. This Agreement may be signed by one or more
counterparts, including by facsimile, scanned or electronic signatures, each of which shall
be considered an original, and all of which together shall constitute one instrument.
8. Entire Agreement.The Parties hereto agree that this Agreement constitutes the only
agreement between them regarding the issues addressed by this Agreement for the Project,
and no oral representation nor prior writing extrinsic to this instrument shall have any force
or effect.
9. Legal Review. This Agreement has been reviewed and revised by legal counsel for
all parties and no presumption or rule that ambiguity shall be construed against the party
drafting the document shall apply to the interpretation of reinforcement of this Agreement.
The Parties intend this Agreement to be interpreted to the full extent authorized by
applicable law.
10. Jurisdiction and Venue. This Agreement shall be interpreted, construed and
enforced in accordance with the laws of the State of Washington. Venue for any action
under this Agreement shall be Snohomish County, Washington.
11. Attachments. All attachments and exhibits to this Agreement are incorporated into
this Agreement.
12. Transfer of Ownershi /Successors and Assigns.The City acknowledges the Project
may be constructed by a party other than MJS. In the event of a transfer of ownership of
all or any portion of the Site,the benefits accruing to,and the obligations placed upon MJS
under this Agreement shall run with the land and title to the Property and inure to the
benefit of,and be binding upon,each person or entity having any right or title or other legal
interest in the Site.
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13. Recording. This Agreement shall be recorded against the Property as a covenant
running with the land and shall be binding on the Parties and their heirs, successors and
assigns for the Term of this Agreement. MJS shall record this Agreement, and exhibits
thereto, and shall pay the Snohomish County recording fee.
14. Effect of Expiration. Upon expiration of this Agreement,all rights and obligations
of the Parties under this Agreement shall terminate and be of no further effect. All
development applied for after expiration or termination of this Agreement shall be required
to satisfy any then applicable City codes, ordinances, regulations and requirements. It is
the intent of the Parties that the rights and obligations of this Agreement shall apply only
during its term and to any permits or approvals applied for during its term, and that once
this Agreement has expired, all rights created by the terms of this Agreement will expire.
[End of Agreement; signatures on the following page]
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IN WITNESS WHEREOF,the Parties have executed this Agreement.
CITY OF ARLINGTON
Name: Von E. z
Title: 1-
MJS INVESTORS ACQUISITION,LLC
Name
Title: 14
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STATE OF WASHINGTON )
ss.
COUNTY OF �jp �� )
On this day personally appeared before me E. to me known to be the
mayor of CITY OF ARLINGTON,a Washington municipal corporatio ,that executed the within
and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act
and deed of said Washington municipal corporation for the uses and purposes therein mentioned,
and on oath stated that 11C is authorized to execute said instrument.
GIVEN under my hand and official seal this Zl�day of '� , 2025.
10-,'7 r P
�s••""DER
(Print nam of notary)
..•••�J R M '• NOTARY PUBLIC in andX?1W,
e State of
• 1T5Sg'' F�
s O • • 'A Washington,residing at
e3., NOTARY •N? My commission expires —
N PUBLIC �� m
EM
OF WASN�a•''
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STATE OF WASHINGTON )
ss.
COUNTY OF KING )
On this day personally appeared before me PQ�%t 1�h ,to me known to
be a member of the MJS INVESTORS ACQUISITION, LLC LimiteJLiability Company,the
limited liability company that executed the within and foregoing instrument, and acknowledged
the said instrument to be the free and voluntary act and deed of said limited liability company,
for the uses and purposes therein mentioned, and on oath stated that said individual is authorized
to execute said instrument.
GIVEN under my hand and official seal this I ei'day of , 2025.
)k`CO1M1p j� / (Print name of notary)
_ 4+o 4t et e NOTARY PUBLIC in and for the State of
r yam=w�\-0 �"a�: �% Washington, residing at w
y u° 171281
o s x r My commission expires
tiQ S
Ie'+Jt�It
��'14,�Q�````�`��'14
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EXHIBIT A
Conceptual Site Plan
[On file with City]
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EXHIBIT B
Stream Buffer Map
[On file with City]
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Exhibit C —Legal Description
Parcel310526-001-002-00:
Lot 1, Large Tract Segregation recorded under recording number 9003160385, being a portion of
the northeast quarter of the northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington,
Except any portion within county road known as 172"a Street NE.
Parcel310526-001-023-00:
Lot 6, Large Tract Segregation recorded under recording number 9003160385, being a portion of
the northeast quarter of the northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington;
Except any portion within county road known as 172nd Street NE.
Parcel310526-001-001-00:
Lot 7, Large Tract Segregation recorded under recording number 9003160385, being a portion of
the northeast quarter of the northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington;
Except county road known as 172nd Street N.E.
Parcel310526-001-022-00:
Parcel A:
Lot 5, Large Tract Segregation recorded under recording number 9003160385, being a portion of
the northeast quarter of the northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington;
Parcel B:
An easement for ingress, egress and utilities as shown on Real Estate Contract recorded under
recording number 9306040107 and described as follows:
The East 352.00 feet of the West 898.00 feet of the South 60.00 feet of the North 800.00 feet of
said Northeast Quarter of the Northeast Quarter of Section 26, Township 31 North, Range 5 East,
W.M.;
Together with the East 60.00 feet of the West 606.00 feet of the North 740.00 feet of said
Northeast Quarter of the Northeast Quarter,
Except County Road.
Parcel310526-001-017-00:
PARCEL A:
Lot 2, Large Tract Segregation recorded under Recording No. 9003160385, being a portion of
the Northeast quarter of the Northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington.
PARCEL B:
This item intentionally deleted
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PARCEL C:
An easement for ingress, egress and utility purposes pursuant to Grant of Easement recorded
April 29, 1991, under recording number 9104290759, being a re-recording of instrument under
recording number 9006190629.
Situate in the County of Snohomish, State of Washington.
Parcel 310525-002-006-00:
The west half of the west half of the northwest quarter of the northwest quarter of Section 25,
Township 31 North, Range 5 East, W.M., in Snohomish County, Washington;
Except therefrom any portion within 172nd Street NE(Sisco Heights Road).
Parcel 310526-001-020-00:
PARCEL A:
Lot 3, Large Tract Segregation recorded under Recording No. 9003160385, being a portion of
the Northeast quarter of the Northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington.
PARCEL B:
An easement for ingress, egress, described as follows:
The East 352.00 feet of the West 898.00 feet of the South 60.00 feet of the North 800.00 feet of
said Northeast quarter of the Northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington;
Together with an easement for ingress and egress, described as follows:
The East 60.00 feet of the West 606.00 feet of the North 740.00 feet of said Northeast quarter of
the Northeast quarter of Section 26, Township 31 North, Range 5 East, W.M., in Snohomish
County, Washington;
Except county road known as 172nd Street N.E.
PARCEL C:
An easement for ingress, egress and utility purposes pursuant to Grant of Easement recorded
April 29, 1991, under recording number 9104290759, being a re-recording of instrument under
recording number 9006190629.
Situate in the County of Snohomish, State of Washington.
Parcel 310526-001-021-00
PARCEL A:
Lot 4, Large Tract Segregation recorded under Recording No. 9003160385, being a portion of
the Northeast quarter of the Northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington.
PARCEL B:
An easement for ingress, egress, described as follows:
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The East 352.00 feet of the West 898.00 feet of the South 60.00 feet of the North 800.00 feet of
said Northeast quarter of the Northeast quarter of Section 26, Township 31 North, Range 5 East,
W.M., in Snohomish County, Washington;
Together with an easement for ingress and egress, described as follows:
The East 60.00 feet of the West 606.00 feet of the North 740.00 feet of said Northeast quarter of
the Northeast quarter of Section 26, Township 31 North, Range 5 East, W.M., in Snohomish
County, Washington;
Except county road known as 172nd Street N.E., also known as Sisco Heights Road.
PARCEL C:
An easement for ingress, egress and utility purposes pursuant to Grant of Easement recorded
April 29, 1991, under recording number 9104290759, being a re-recording of instrument under
recording number 9006190629.
Situate in the County of Snohomish, State of Washington.