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NK Legacy Partnership DRAFT MOU

NK Legacy Partnership DRAFT MOU

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Published by Tad Sooter
A draft memorandum of understanding between Kitsap County and Olympic Property Group.
A draft memorandum of understanding between Kitsap County and Olympic Property Group.

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Published by: Tad Sooter on May 03, 2010
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07/20/2010

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DRAFTNORTH KITSAP LEGACY PARTNERSHIPMemorandum of Understanding
 This Memorandum of Understanding is entered into by Kitsap County(“County”) and Olympic Property Group (“OPG”) to identify the guidingprinciples and actions to be undertaken to evaluate, and implement if feasible, a comprehensive program for public acquisition of up to 7,000 acresof open space and plan for the sustainable development of Port Gamble andits related uplands (“North Kitsap Legacy Partnership”).
RECITALS
WHEREAS, the Kitsap County Comprehensive Plan and Open SpacePlan envisions a coordinated open space network that includes public accessto saltwater shorelines, interconnected trail systems, sustainable forestrypractices, as well as opportunities for recreation and enhanced protection forwildlife habitat; andWHEREAS, the North Kitsap Trails Association has been established tofacilitate the creation of land and water-based trails and kayak routes inNorth Kitsap; andWHEREAS, OPG controls approximately 8,000 acres of real propertywithin Northern Kitsap County (“OPG Property”). OPG’s property includes theNational Historic Landmark District of Port Gamble, approximately threemiles of salt water shoreline on Hood Canal and on Port Gamble Bay, andapproximately 7,000 acres of commercial timberland that may be suitablefor permanent public open space and recreational opportunities, as well assustainable forestry activities; andWHEREAS, as a public entity, Kitsap County has limited financialresources and is interested in pursuing public/private economic developmentopportunities that provide jobs and is a viable tax base to support necessarypublic services; andWHEREAS, Kitsap County recognizes the importance of rural lands andrural character to its economy, its people, and its environment, as well asreducing the inappropriate conversion of undeveloped land into low-densitydevelopment.WHEREAS, to carry out its mission as a publicly-held company, OPG isactively evaluating conversion to alternative uses or third party sales of itsproperty. OPG’s interests include obtaining a fair risk-adjusted economicreturn for its owners, determining the long-term future of Port Gamble, andproviding certainty for overall use and disposition of the OPG Properties in
 April 26, 2010 
- DRAFT 
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North Kitsap County. Port Gamble is not economically viable in its currentstate. OPG has made annual subsidies to maintain Port Gamble, suchsubsidies are not sustainable. Conventional commercial forestry is noteconomically nor socially viable in Northern Kitsap County; andWHEREAS, Kitsap County has an interest in enhancing the historicalcharacter of Port Gamble and by providing a pilot program for ruralclustering techniques, consistent with the Growth Management Act, for PortGamble’s associated uplands. This demonstration shall reduceenvironmental impacts through improved infrastructure that incorporatessustainable, low-impact development and energy efficiency techniques(water reuse, solar, geothermal, etc), as well as enhancing its economicvitality; andWHEREAS, as the single owner of approximately 8,000 acres of land inNorth Kitsap County, OPG is in a unique position to partner with the KitsapCounty to achieve permanent public benefits, as well as fulfilling its missionof providing an appropriate economic return for its owners; andWHEREAS, Kitsap County and OPG share multiple common interestswhich could benefit from a public and private cooperative and innovativeapproach; andWHEREAS, the parties acknowledge a limited window of opportunityexists for Kitsap County and OPG, along with other interested agencies,groups and members of the public, to each secure permanent benefitsconsistent with their respective interests; andWHEREAS, without these joint efforts, OPG’s land disposition will bedriven solely by market forces, which may include sales to third parties orother actions to dispose of its land portfolio in North Kitsap County; andWHEREAS, the process sent forth in this Memorandum will includeextensive input from the general public and interested parties with a focuson open space, trails and recreation, shoreline and waterfront access andhistoric preservation; andWHEREAS, OPG and Kitsap County acknowledge this type of comprehensive, multiple-land planning, as set forth in this Memorandum andto be contained in a proposed development agreement, is an unprecedentednew collaborative approach. The parties will use all reasonable efforts tofurther each party’s interests, but the parties acknowledge there is noguarantee of success.NOW, THEREFORE, Kitsap County and OPG intend this Memorandum of Understanding to identify actions and responsibilities necessary to evaluateand implement an overall plan for OPG lands in North Kitsap County.
 April 26, 2010 
- DRAFT 
 
AGREEMENT
1.
Overall Goals and Guiding Principles .
Currently, theconceptual components of the North Kitsap Legacy Partnership are listedbelow and illustrated in Exhibit A. However, these components maychange for political, environmental, practical, or economic reasons. Allacreages below are approximate.
Hansville Block
No development of OPG’s Hansville 2,000-acre block.
Public ownership of the Hansville block. 
Option and “The Divide” Properties
Create a publicly owned open space and trail corridorfrom Arness Slough in Kingston to OPG’s Port Gamble block.
104-acre publicly owned open space through theArborwood project to the Heritage Park Option property.
Public ownership and no development of the Heritage ParkOption Property (366 acres) and OPG’s “Divide” property (664acres), in addition to the existing Heritage Park acreage (447)
Port Gamble (Port Gamble Block, Port Gamble Townsite and PortGamb
 
le Shoreline)
3,000 acres (+/-) contiguous blockin the Port Gamble land block (south of the townsite) in publicownership, no development.
1.5 miles (+/-) of Port Gamblewaterfront (south of the townsite), in public ownership, nodevelopment.
Permitting higher densities in andnear Port Gamble to offset reduced or no density in Hansville, The Divide, and Port Gamble southern block properties.
Maintain and enhance the historiccharacter and economic sustainability of Port Gamble,including the townsite (120 acres) and the adjacent uplands(1000 acres)
Port Gamble and the associateduplands development to be an economic center that:
o
Is designed to be as self supporting a community as possible(regarding daily goods and services)
o
Produces enough public revenues to pay for public servicesrequired to support the town
o
Embraces sustainable development and operating principles to
 April 26, 2010 
- DRAFT 
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