AGENDA Council Services & Safety Committee

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1 AGENDA Council Services & Safety Committee 5:30 PM - Tuesday, December 8, 2015 Eagle Room, 130 E. Sunset Way, ssaquah WA Page COMMTTEE MEMBERS Tola Marts, Chair Eileen Barber Josh Schaer 3-50 Staff Liaison: Scott Behrbaum, Police Chief 1. CALL TO ORDER 2. AGENDA TEMS a) AB Public Dedication of Land, Atlas Park, (A) Presented by: Christopher Wright, Project Oversight Mgr b) Economic Development Update, () Presented by: Keith Niven, Economic Development Director 2015/16 BRE (Business Retention & Expansion) Sports Medicine PZ (nnovation Partnership Zone) EVC Reboot (Economic Vitality Commission) 3. ADJOURNMENT Next meeting is currently scheduled for January 12, 2016 at 5:30 PM / Eagle Room. NQURES Please contact Theresa Schaap or theresas@issaquahwa.gov. 5:30 PM [30 Mins] 6:00 PM [20 Mins] Page 1 of 50

2 Meeting room is wheelchair accessible. American Disability Act (ADA) accommodations available upon request. Please phone at least two business days in advance. Note: Times listed for meetings topics are approximate and items are subject to being shifted from the original order. () nformational, (A) Action Needed, (D) Discussion Page 2 of 50

3 CTY COUNCL AGENDA BLL City Council Regular Meeting - 16 Nov 2015 NEW AB Consent Calendar Public Dedication of Land, Atlas Park Proposed Council Action: Refer to Services & Safety Committee DEPARTMENT OF COUNCL COMMTTEE LASON OTHER COUNCL MEETNGS EXHBTS Development Services, Christopher Wright n/a n/a A. Signed Memorandum of Understanding B. Proposed Agreement C. Park Rendering POLCY & BUDGET NFO Comp Plan Policy Nos. P Policy A2.4, P Policy B3.3, UC Policy B1 through B8 Consistent: Yes Expenditure Required $ n/a Amount Budgeted Other Policies CDDS, 7.4 $ n/a SUMMARY STATEMENT Section 7.5.A of MC 18.19A (Central ssaquah Area Development and Design Standards) states: "Park Credit. The applicant shall receive a credit against the value of the land for Significant Community Space set asides. The credit calculation is consistent with MC Fee adjustments and shall use fair market value as the land value. This includes Neighborhood Parks and Significant Plazas provided and maintained by the applicant for use by the public as a Significant Community Space." On May 21, 2014, the Development Commission approved the Site Development Permit for the Atlas multifamily project, File No. SDP n accordance with Central ssaquah Development and Design Standards (CDDS), Community Spaces, Section 7.4 and Figure 7A, the approval included providing an area of the site for a Significant Community Space (Neighborhood Park) and a Shared Use Route. The applicant has asked the City to accept ownership of the property containing these Community facilities. That area of land was subsequently created as a separate parcel, "Parcel 3," through a Lot Line Adjustment, LLA The 1.47 acre parcel will include the stream buffer area, a Shared Use Route and the Neighborhood Park. Consistent with the municipal code, the Park Mitigation fees will be offset by the value of the Community Facilities and land provided. Valuation of the facilities and land was determined by two professional comparative appraisals. The resulting credit will completely offset the Park mpact Fee due for this project. Consistency With Comprehensive Plan: P Policy A2.4 Support the Creation of the "Green Necklace": Support the saturation of ssaquah's developing urban environment with an array of publically accessible green elements including community and neighborhood parks, riparian corridors, tree lined streets, active and passive plazas and other shared urban spaces creating a public realm connected by a comprehensive trail system on and off roads. When private development is required to provide a public space, such as urban plazas, parks and/or trails, they are to remain as part of the public realm and should remain accessible and function as if publically owned. Natural features will be used as key design elements to create a unique sense of place and enhance the values and functions of the natural Page 3 of 50

4 environment. P Policy B3.3 Connectivity: Strive to promote connectivity of natural and built environments. Connectivity promotes the health, sustainability, interaction, wayfinding and mobility of the natural environment (wildlife and habitat). Strive to link natural features such as open space, waterways and provide built multi-modal trails to maximize user experience within both the built and natural environment. Linkages also promote the "Green Necklace" vision for the City and allows regional connections to adjacent cities and opens natural areas. UC Policy B1. mprove the Active Transportation system as established in the Nonmotorized Routes and Parks map (Exhibit 7). The expanded and improved system will increase mobility within Central ssaquah, provide transportation benefits, emphasize recreational benefits and connect to the larger, regional trail system including Lake Sammamish State Park, Cougar Mountain and Tiger Mountain. UC Policy B2. Prioritize park, open space and trail projects to ensure annual investments in the Green Necklace. UC Policy B3. Locate an active recreation facility for indoor and outdoor recreation in the East Lake District and a Neighborhood Park elsewhere in Central ssaquah. These parks would be in addition to the parkland planned in the Green Necklace. UC Policy B4. Promote the development of Green Streets throughout Central ssaquah with the integration of open space and landscaping, including street trees to improve and reduce the amount of stormwater runoff, be aesthetically pleasing and provide an attractive pedestrian experience. UC Policy B5. ntegrate natural features such as wetlands, riparian corridors and hillside views into the site design as amenities and protect them as environmental resources. Require natural resources management practices into site development and operation by: a. incorporating natural drainage practices into park development to provide community amenities and watershed benefits, where appropriate and feasible; b. integrating the Green Necklace into the riparian corridors to achieve multiple benefits, including enhanced fish and wildlife habitat, improved stormwater management, trail connections and environmental education; and c. requiring landscape plans to include drought tolerant native plants to reinforce ssaquah s unique natural setting and reduce water consumption. d. allowing flexibility in building design, orientation, spacing and landscaping. UC Policy B6. Use partnerships, grants, bonds, Fees n Lieu of Community Space and other innovative means for financing the completion of the Green Necklace. UC Policy B7. Monitor the acquisition of and proposed funding for the Green Necklace through the Capital mprovements Program and by monitoring the Fees n Lieu to ensure that commitment to acquisition occurs. dentify additional steps to spur acquisition if monitoring shows the Green Necklace goals for Central ssaquah are not being achieved. UC Policy B8. Elevate landscape maintenance to a higher priority to ensure the long term success of the Green Necklace as the Central ssaquah moves from suburban to urban. a. nvest private and public resources in the maintenance of landscaping, including streetscapes, public plazas, shared use routes and parks; and b. Recognize maintenance funding as a vital piece of the long term success of the Green Necklace. Administration's Recommendation: Authorize the Mayor to enter into and execute the Agreement for the Dedication of Land with LMC Gilman Square LLC ("Lennar"). Update: n/a Alternative(s): 1) Approve without referral to committee. 2) Refer back to administration for review and resubmittal. RECOMMENDATON Administration / Development Services Department: Page 4 of 50

5 MOVE TO: Refer AB 7061 to the December 8, 2015 Council Services & Safety Committee for review and recommendation, returning to full Council on December 21, Page 5 of 50

6 MEMORANDUM OF UNDERSTANDNG This MOU is intended to outline the basic points of a more formal agreement to be entered into between the pruiies as set forth herein. n consideration of mutual promises and benefits, the parties agree as follows: 1. LMC Gilman Square LLC ("Lennar") will dedicate in fee simple to the City oflssaquah, Washington (the "City") a parcel efland that includes the pru k area, the Shared Use Route, and the "dogleg" extension of 5th St. NW (the " Dedicated Property"). The Dedicated Property is shown as Parcel 3 on the Lot Line Adjustment survey that is attached hereto as Exhibit "A". The legal description for the Dedicated Propetiy is attached hereto as Exhibit "B". The Dedicated Propetiy will be free and clear of all liens and encumbrances other than those identified in the title commitment or title report attached hereto as Exhibit "C"(the "Petmitted Encumbrances"); provided, however, that in no case shall the Permitted Encumbrances include any liens for fmancing procured by Lennar in connection with its development. 2. n accordance with City code, the City will give Lennar a credit against the Park mpact Fee related to the development oflennar's multifamily project called Atlas. The Park mpact Fee for the Project is $1,597, ($4, per unit times 344 units) as of the date Lennar was issued building permits for the Project. 3. The amount of the credit (the "Credit") will be the sum of (i) $1.25 million for the land comprising the Dedicated Prope1iy, which is the agreed upon appraised value of the Dedicated Property, plus (ii) the agreed upon cost of the improvements (the "mprovements") that ru e required by the previously approved Site Development Permit and the yet to be approved Landscape Permit. The total Credit will not exceed the amount of the Park mpact Fee. 4. The tender of a deed to the Dedicated Property by Lennru will occur following completion of construction within the Dedicated Propetiy and prior to issuance of the Temporru y Cetiificate of Occupancy for Building B/C, as follows: a. Lermru will notify the City in writing that construction of the mprovements is complete (the "Completion Notice"). Lennru will also provide City with an {WDT DOCX;2/ /} _2/(89972/0 19) Page 6 of 50

7 updated title report and information verifying the cost ("Verified Cost") of installing the mprovements. b. The City will, within thirty (30) days after such notification and information from Lennar, reasonably determine whether the mprovements.have been completed in a manner that is not inconsistent with the approved Site Development Permit and Landscape Permit and notify Lennar of such determination. f the City accepts the mprovements and ~grees to the reasonableness of the Verified Cost of installing the mprovements, then the provisions of subsection (c) below shall apply. f the City determines that one or more portions of the mprovements have been completed in a manner that is inconsistent with the approved Site Development Permit and Landscape Permit or disagrees with the reasonableness ofthe Verified Cost of installing the mprovements, then the City shall (within such thirty (30) day period) provide Lennar with a written notice of the same specifically identifying all such inconsistencies ofthe mprovements and or disagreement with the reasonableness ofthe Verified Cost of installing the mprovements. Lennar shall have the right to remedy such inconsistencies and or disagreements and to resubmit the Completion Notice one or more times until such mprovements are accepted by the City. flennar disagrees with the City's assertion that one or more portions of the mprovements were completed in a manner inconsistent with the Site Development Permit and Landscape Permit, and or disagrees with the reasonableness of the Verified Cost then Lennar shall at all times have all rights available to it at law and in equity to determine the same. c. Upon the City's acceptance of the mprovements, Lennar will tender the deed for the Dedicated Property, which will be deemed to have been accepted by the City upon tender. f the sum of (i) the appraised value of the Dedicated Property ($1,250,000) plus (ii) the verified and agreed cost ofthe mprovements is less than the Park mpact Fee (a "Shortfall"), then Lennar will pay for any such Shortfall prior to issuance oftemporary Certificate of Occupancy for Building B/C. n no event shall Lennar receive the benefit of any portion of the Credit that may be in excess of the Park mpact Fee. (WDT DOCX;2/ / } _2/(89972/0 19) Page 7 of 50

8 5. Lennar will provide routine maintenance of the trail and park to meet a commercially reasonable standard, i.e., consistent with landscaping maintenance standards for a firstclass multifamily community. Lennar will have no obligation to provide any non-routine maintenance. Non-routine maintenance activities, e.g., cleanup and repairs to improvements following a flood event, will be the City's option to perform or not, except to the extent that Lennar may, in its sole discretion, elect to additionally provide the same (with approval by the City and in a manner consistent with state law). flennar does not provide routine maintenance as provided herein after thirty (30) days' prior written notice from the City, then the City may elect to provide such maintenance. n that event, the cost of such maintenance actually incuned by the City, including labor, overhead, and equipment, plus a management fee equal to twenty percent (20%) of such costs, shall be paid by Lennar. 6. Lennar will provide indemnity and general liability insurance (not less than $2M in coverage), with respect to which the City, its officers and agents, will be additional insureds, protecting the City, its officers and agents against liability that arises from Lennar's maintenance activities on the Dedicated Property or other negligent acts or omissions. 7. The Parties agree to negotiate a permanent agreement (the "Permanent Agreement"), which will accomplish the intent and provisions of this MOU in a binding fmmat, with the parties hereto understanding that the purpose of this MOU is to establish the conceptual framework for preparing and negotiating the binding Permanent Agreement. The Permanent Agreement will direct and authorize the City Administrator to accept the deed to the Dedicated Prope1ty upon tender by Lennar in conformance with the terms of the Permanent Agreement, including the acceptable installation of all mprovements on the Dedicated Property. The Pe1manent Agreement shall be recorded against the prope1ty for the Project that is owned by Lennar. 8. The Permanent Agreement must be approved by the City Council. n the event the City Council does not approve the Permanent Agreement by April 30, 2015, or such other later date as agreed to in writing by the parties, then Lennar shall promptly pay the Park mpact Fees that would have been due at the time of issuance of the building permits but for the tetms of this MOU. (WDT DOCX;2/ f ) _21( ) Page 8 of 50

9 f Lennar fails to tender the deed for the Dedicated Property prior to issuance of the Temporary Certificate of Occupancy of Building B/C, the City reserves the right to seek the full amount of the Park mpact Fee or to bring an action in superior court to enforce the terms of this MOU or the Petmanent Agreement; provided, however, that nothing in this MOU or the Permanent Agreement will prevent Lennar from occupying, and Lennar shall be entitled to occupy and to petmit its tenants to occupy, Building A upon issuance by the City ofthe Temporary Certificate of Occupancy for Building A, which Temporary Certificate of Occupancy shall not be unreasonably withheld by the City. 9. Lennar agrees not to allow occupancy of Building B/C until the Dedicated Prope1ty and mprovements have been accepted by the City as provided herein. The City shall have the right to enforce this provision by injunction or other equitable relief, in addition to any other remedies available by law. 10. Lennar and the City agree that this MOU and the Permanent Agreement are compliant with all state laws, including RCW The Permanent Agreement will have additional reasonable "boilerplate" provisions, including severability, third party beneficiaries, venue in King County, etc. Dated this S..l(l-. day of March LMC Gilman Square LLC it!~~ City of ssaquah, Washington (Title) (Title) (WDT DOCX;2/ /) _21(89972/0 19) Page 9 of 50

10 EXHBT A- LOT LNE ADJUSTMENT SURVEY (WDT DOCX;2/ / ) _21(89972/0 19) Page 10 of 50

11 EXHBT B -LEGAL DESCRPTON Parcel 3, City of ssaquah Lot Line Adjustment LUA , as recorded under recording number records of King County, Washington. ( WDT DOCX; / ) _21(89972/019) Page 11 of 50

12 EXHBT C-TTLE REPORT (WDT DOCX;2/ /} _2/(89972/0 9) Page 12 of 50

13 Form WA-S {6/76) Commitment Face Page File No.: NCS WAl COMMTMENT FOR TTLE NSURANCE ssued by FRST AMERCAN TTLE NSURANCE COMPANY First American Title nsurance Company, herein called the Company, for valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed nsured named in Schedule A, as owner or mortgagor of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed nsured and the amount of the policy or policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of the Commitment or by subsequent endorsement. This Commitment if preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six (6) months after the effective date hereof or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue such policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until countersigned by an authorized officer or agent. N WTNESS WHEREOF, the Company has caused this commitment to be signed, to become valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By Laws. This Commitment is effective as of the date shown in Schedule A as "Effective Date." First American Title nsurance Company flr//l Dennas J. Gilmore PresJdent JeHrey S. Robinson Se<:HliOry First American 77tle nsurance Company Page 13 of 50

14 Form WA-S (6/76) Commitment File No.: NCS WA1 Page No. 1 First American Title nsurance Company National Commercial Services 818 Stewart Street, Suite 800, Seattle, WA (206) (800) FAX (206) Victoria L. Coats (206) vcoats@firstam.com Kathleen Michael (206) kmichael@firstam.com Nathan J. Jones (206) njjones@firstam.com Soupy Klea (206) sklea@firstam.com To: Lennar 1191 Second Avenue, Suite 1570 Seattle, WA File No.: NCS WA1 Your Ref No.: Gilman LLA Attn: Brad Reisinger SCHEDULE A 1. Commitment Date: January 12, 2015 at 7:30A.M. 2. Policy or Policies to be issued: AMOUNT PREMUM TAX 3. The estate or interest in the land described on Page 2 herein is Fee Simple, and title thereto is at the effective date hereof vested in: LMC Gilman Square, LLC, a Delaware limited liability company 4. The land referred to in this Commitment is described as follows: The land referred to in this report is described in Exhibit "A" attached hereto. First American 77tle nsurance Company Page 14 of 50

15 Form WA-5 (6/ 76) Commitment File No.: NCS WAl Page No.2 EXHBT 'A' LEGAL DESCRPTON: PARCEL A: LOTS A AND B, CTY OF SSAQUAH, LOT LNE ADJUSTMENT NO , RECORDED JULY 28, 1992 UNDER RECORDNG NO , N KNG COUNTY, WASHNGTON; TOGETHER WTH THAT PORTON OF VACATED NORTHWEST GLMAN BOULEVARD AS DEEDED BY THE CTY OF SSAQUAH RECORDED JULY 5, 1984 UNDER RECORDNG NO LYNG BETWEEN THE PROLONGATON OF THE EASTERLY AND WESTERLY LNES PRODUCED NORTH. PARCEL B: THAT PORTON OF THE WEST HALF OF THE NORTHEAST QUARTER OF SECTON 28, TOWNSHP 24 NORTH, RANGE 6 EAST, W.M., N KNG COUNTY, WASHNGTON; BEGNNNG AT A PONT SOUTH 88 30'08" EAST FEET FROM THE NORTHWEST CORNER OF SAD ADDffiON; THENCE NORTH 01 37'25" EAST FEET; THENCE NORTH 31 37'25" EAST FEET; THENCE SOUTH 59 16'53" EAST FEET; THENCE SOUTH 23 55'02" WEST 100 FEET; THENCE SOUTH 59 16'53" EAST 60 FEET; THENCE SOUTH 23 55'02" WEST FEET; THENCE NORTH 88 30'08" WEST FEET TO THE PONT OF BEGNNNG. PARCEL C: LOTS 2 AND 3 CTY OF SSAQUAH SHORT PLAT NO , RECORDED DECEMBER 18, 1978 UNDER KNG COUNTY RECORDNG NO WASHNGTON; TOGETHER WTH THAT PORTON OF VACATED NORTHWEST GLMAN BOULEVARD AS DEEDED BY THE CTY OF SSAQUAH RECORDED JULY 5, 1984 UNDER RECORDNG NO THAT WOULD ATTACH TO THE NORTHEASTERLY LNE OF SAD LOT 2. PARCEL D: A STRP OF LAND 35 FEET N WDTH OVER A PORTON OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER AND OVER A PORTON OF THE NORTH 50 FEET OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER, ALL N SECTON 28, TOWNSHP 24 NORTH, RANGE 6 EAST, WLLAMETTE MERDAN, N KNG COUNTY, WASHNGTON, THE CENTERLNE OF SAD STRP BENG DESCRBED AS FOLLOWS: BEGNNNG AT A PONT ON THE SOUTHWESTERLY LNE OF PRMARY STATE HGHWAY NO.2 DSTANT SOUTH 59 16'53" EAST, FEET FROM A MONUMENT MARKNG THE NTERSECTON OF THE NORTH-SOUTH CENTERLNE OF SAD SECTON AND THE SOUTHWESTERLY LNE OF SAD HGHWAY (SAD MONUMENT HAVNG BEEN SET BY VCTOR J. CARLSON JR, PROFESSONAL LAND SURVEYOR, TO MARK SAD NORTH SOUTH CENTERLNE, WHCH LOCATON WAS THEREAFTER AGREED UPON BY MARVN MOHL AND COMMSSONERS OF KNG COUNTY DRANAGE DSTRCT NO. 4, ABUffiNG OWNERS); First American Title nsurance Company Page 15 of 50

16 Form WA-S (6/ 76) Commitment File No. : NCS WAl Page No.3 THENCE SOUTH 30 43'08" WEST FEET TO THE TRUE PONT OF BEGNNNG OF SAD CENTERLNE; THENCE SOUTH 59 16'53" EAST FEET TO A PONT OF CURVE; THENCE EASTERLY ALONG THE ARC OF A CURVE TO THE LEFT, HAVNG A RADUS OF FEET, A DSTANCE OF FEET TO A PONT OF TANGENCY; THENCE SOUTH 88 30'08" EAST FEET TO A PONT OF CURVE; THENCE SOUTHEASTERLY, ALONG THE ARC OF A CURVE TO THE RGHT, HAVNG A RADUS OF FEET, AN ARC DSTANCE OF FEET TO A PONT OF COMPOUND CURVE; THENCE SOUTHERLY ALONG THE ARC OF A CURVE TO THE RGHT, HAVNG A RADUS OF FEET, A DSTANCE OF FEET TO A PONT OF TANGENCY; THENCE SOUTH 02 05'52" WEST FEET TO A PONT ON THE SOUTH LNE OF SAD NORTH 50 FEET OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAD SECTON 28 AND THE TERMNUS OF SAD CENTERLNE; TOGETHER WTH A STRP OF LAND 35 FEET N WDTH OVER A PORTON OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER ALL N SECTON 28, TOWNSHP 24 NORTH, RANGE 6 EAST, WLLAMETTE MERDAN, N KNG COUNTY, WASHNGTON DESCRBED AS FOLLOWS: BEGNNNG AT A PONT ON THE SOUTHWESTERLY LNE OF PRMARY STATE HGHWAY NO. 2 DSTANT SOUTH 59 16'53" EAST, FEET FROM A MONUMENT MARKNG THE NTERSECTON OF THE NORTH-SOUTH CENTERLNE OF SAD SECTON AND THE SOUTHWESTERLY LNE OF SAD HGHWAY (SAD MONUMENT HAVNG BEEN SET BY VCTOR J. CARLSON JR, PROFESSONAL LAND SURVEYOR, TO MARK SAD NORTH SOUTH CENTERLNE, WHCH LOCATON WAS THEREAFTER AGREED UPON BY MARVN MOHL AND COMMSSONERS OF KNG COUNTY DRANAGE DSTRCT NO. 4, ABUffiNG OWNERS); THENCE SOUTH 30 43'08" WEST FEET TO THE TRUE PONT OF BEGNNNG OF SAD CENTERLNE; THENCE SOUTH 59 16'53" EAST FEET TO A PONT OF CURVE; THENCE EASTERLY ALONG THE ARC OF A CURVE TO THE LEFT, HAVNG A RADUS OF FEET, A DSTANCE OF FEET TO A PONT OF TANGENCY; THENCE SOUTH 88 30'08" EAST FEET TO A PONT OF CURVE; THENCE NORTH 01 29'52" EAST FEET TO THE TRUE PONT OF BEGNNNG OF SAD 35 FOOT WDE STRP OF LAND; THENCE SOUTH 88 30'08" EAST A DSTANCE OF 68 FEET MORE OR LESS TO THE THREAD OF SSAQUAH CREEK; THENCE SOUTHEASTERLY ALONG THE THREAD OF SSAQUAH CREEK, A DSTANCE OF 60 FEET MORE OR LESS TO TS NTERSECTON WTH THE EASTERLY EXTENSON OF A LNE 35 FEET SOUTHERLY OF (MEASURED PERPENDCULAR TO) AND PARALLEL WTH AFOREMENTONED LNE STARTNG FROM THE TRUE PONT OF BEGNNNG; THENCE NORTH 88 30'08" WEST ALONG SAD EXTENSON AND LNE A DSTANCE OF 60 FEET MORE OR LESS TO THE EASTERLY LNE OF THAT 35 FOOT WDE STRP OF LAND AS DESCRBED ABOVE N MAN LEGAL, SAD PONT BENG A CURVE HAVNG A RADUS OF FEET; THENCE NORTHWESTERLY ALONG SAD CURVE TO THE LEFT AN ARC DSTANCE OF FEET THROUGH A CENTRAL ANGLE OF 06 39'47" TO A PONT OF COMPOUND CURVE; THENCE CONTNUNG NORTHWESTERLY ALONG A CURVE TO THE LEFT, HAVNG A RADUS OF FEET AN ARC DSTANCE OF FEET TO THE TRUE PONT OF BEGNNNG. PARCEL E: THAT PORTON OF THE NORTHEAST QUARTER OF SECTON 28, TOWNSHP 24 NORTH, RANGE OF 6 EAST, W.M., N K NG COUNTY, WASHNGTON, DESCRBED AS FOLLOWS: First American 77tle nsurance Company Page 16 of 50

17 Form WA-S (6/76) Commitment File No.: NCS WAl Page No.4 BEGNNNG AT THE NORTHWEST CORNER OF THE HERBERT S. UPPER'S SECOND ADDTON TO SSAQUAH, ACCORDNG TO THE PLAT THEREOF RECORDED N VOLUM E 21 OF PLATS, PAGE 4, N KNG COUNTY, WASHNGTON, SAD PONT BENG SOUTH 88 30'08" EAST FEET FROM THE WEST LNE OF SAD NORTHEAST QUARTER; THENCE SOUTH 88 30'08" EAST FEET ALONG THE NORTHERLY LMTS OF SAD PLAT TO THE TRUE PONT BEGNNNG; THENCE NORTH 23 55'02" EAST FEET; THENCE ALONG A CURVE TO THE LEFT, THE CENTER OF WHCH BEARS NORTH 27 24'26" EAST HAVNG A RADUS OF FEET, AN ARC DSTANCE OF FEET; THENCE SOUTH 88 30'08" EAST 8.72 FEET; THENCE SOUTH 01 29'52" WEST FEET; THENCE NORTH 88 33'08" WEST FEET TO THE TRUE PONT OF BEGNNNG. PARCEL F: THAT PORTON OF THE WEST HALF OF THE NORTHEAST QUARTER OF SECTON 28, TOWNSH P 24 NORTH, RANGE 6 EAST, W.M., N KNG COUNTY, WASHNGTON, DESCRBED AS FOLLOWS: BEGNNNG AT THE NORTHWEST CORN ER OF HERBERT S. UPPER'S SECOND ADDillON TO SSAQUAH, ACCORDNG TO THE PLAT THEREOF RECORDED N VOLUME 21 OF PLATS, ON PAGE 4, RECORDS OF KNG COUNTY, WASHNGTON; THENCE SOUTH 88 30'08" EAST FEET; THENCE SOUTH 88 30'08" EAST FEET; THENCE NORTH 23 55'02" EAST FEET TO THE TRUE PONT OF BEGNNNG; THENCE SOUTH 23 55'02" WEST FEET; THENCE NORTH 88 30'08" WEST FEET; THENCE NORTH 23 55'02" EAST FEET; THENCE SOUTHEASTERLY TO THE TRUE PONT OF BEGNNNG; EXCEPT THAT PORTON THEREOF, F ANY, LYNG WTHN THE PLAT OF HERBERT S. UPPER'S SECOND ADD ill ON; AND EXCEPT ANY PORTON THEREOF LYNG WESTERLY OF THE FOLLOWNG DESCRBED LNE: BEGNNNG AT A MONUMENT MARK NG THE NTERSECTON OF THE NORTH-SOUTH CENTER LNE OF SAD SECTON AND THE SOUTHWESTERLY LNE OF PRMARY STATE HGHWAY NO.2, (SAD MONUMENT HAVNG BEEN SET BY VCTOR J. CARLSON, JR., PROFESSONAL LAND SURVEYOR, TO MARK SAD NORTH-SOUTH CENTER LNE, WHCH LOCATON WAS THEREAFTER AGREED UPON BY MARVN MOHL AND COMMSSONERS OF KNG COUNTY DRANAGE DSTRCT NO. 4, ABUTTNG OWNERS); THENCE SOUTH 59 16'53" EAST ALONG SAD SOUTHWESTERLY LNE FEET; THENCE SOUTH 30 43'08" WEST FEET; THENCE SOUTH 59 16'53" EAST FEET; THENCE SOUTH 30 43'07" WEST FEET; THENCE SOUTH 59 16'53" EAST FEET TO THE TRUE PONT OF BEGNNNG OF SAD DESCRBED LNE; THENCE SOUTH 23 55'02" WEST FEET TO THE SOUTH LNE OF THE NORTH FEET OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAD SECTON AND THE TERMNUS OF SAD LNE. Rrst American Title nsurance Company Page 17 of 50

18 Form WA-S (6/ 76) Commitment File No.: NCS WAl Page No.5 SCHEDULE 8 - SECTON 1 REOUREMENTS The following are the Requirements to be complied with: tem (A) tem (B) tem (C) tem (D) Payment to or for the account of the Grantors or Mortgagors of the full consideration for the estate or interest to be insured. Proper instrument(s) creating the estate or interest to be insured must be executed and duly filed for record. Pay us the premiums, fees and charges for the policy. You must tell us in writing the name of anyone not referred to in thi$ Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions SCHEDULE 8 - SECTON 2 GENERAL EXCEPTONS The Policy or Policies to be issued will contain Exceptions to the following unless the same are disposed of to the satisfaction of the Company. A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. B. Any facts, rights, interest, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of person in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. E. (1) Unpatented mining claims; (2) reservations or exceptions in patents or in acts authorizing the issuance thereof; (3) Water rights, claims or title to water; whether or not the matters excepted under (1), (2) or (3) are shown by the public records; (4) ndian Tribal Codes or Regulations, ndian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, labor, materials or medical assistance theretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value t he estate or interest or mortgages thereon covered by this Commitment. First American 77tle nsurance Company Page 18 of 50

19 Form WA-S (6/76) Commitment File No.: NCS WAl Page No. 6 SCHEDULE B - SECTON 2 (continued) SPECAL EXCEPTONS 1. Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of ssaquah is at 1.78%. Levy Area Code: 1400 For all transactions recorded on or after July 1, 2005: A fee of $10.00 will be charged on all exempt transactions; A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due. 2. General Taxes for the year 2015, in an amount not yet available, which cannot be pa id until February 15, Tax Account No.: Note: Taxes and charges for 2014 were paid in full in the amount of $2, (Affects a portion of Parcel A) 3. General Taxes for the year 2015, in an amount not yet available, which cannot be paid until February 15, Tax Account No.: Note: Taxes and charges for 2014 were paid in full in the amount of $18, (Affects a portion of Parcel A) 4. General Taxes for the year 2015, in an amount not yet available, which cannot be paid until February 15, Tax Account No.: Note: Taxes and charges for 2014 were paid in full in the amount of $17, (Affects Parcel B) 5. General Taxes for the year 2015, in an amount not yet available, which cannot be paid until February 15, Tax Account No.: Note: Taxes and charges for 2014 were paid in full in the amount of $7, (Affects a portion of Parcel C) 6. General Taxes for the year 2015, in an amount not yet available, which cannot be paid until February 15, Tax Account No.: Note: Taxes and charges for 2014 were paid in full in the amount of $1, (Affects a portion of Parcel C) 7. General Taxes for the year 2015, in an amount not yet available, which cannot be paid until February 15, Tax Account No.: First American Title nsurance Company Page 19 of 50

20 Form WA-S (6/76) Commitment File No.: NCS WAl Page No. 7 Note: Taxes and charges for 2014 were paid in full in the amount of $ (Affects Parcel D) 8. General Taxes for the year 2015, in an amount not yet available, which cannot be paid until February 15, Tax Account No.: Note: Taxes and charges for 2014 were paid in full in the amount of $1, (Affects Parcel E) 9. General Taxes for the year 2015, in an amount not yet available, which cannot be paid until February 15, Tax Account No.: Note: Taxes and charges for 2014 were paid in full in the amount of $1, (Affects Parcel F) 10. Easement, including terms and provisions contained therein: Recording nformation: For: Electric transmission line Affects: Parcel F 11. Easement, including terms and provisions contained therein: Recording nformation: October 15, 1948 under Recording No n Favor of: The Pacific Telephone and Telegraph Company For: Construct, operate, maintain, replace and remove such communication systems Affects : Parcels A, B, D and E Document(s) declaring modifications thereof recorded February 6, 1961 as Recording No of Official Records. A partial release of said easement was recorded November 25, 1980 under Recording No Easement, including terms and provisions contained therein: Recording nformation: February 4, 1960 under Recording No For: Utilities Affects: The Southerly 10 feet of Parcel E 13. Easement, including terms and provisions contained therein: Recording nformation: March 24, 1961 under Recording No n Favor of: Puget Sound Power and Light Company For: To construct, reconstruct, improve, repair maintain and operate electric distribution line Affects: Parcel C First American litle nsurance Company Page 20 of 50

21 Form WA-S {6/76) Commitment File No.: NCS WAl Page No Easement, including terms and provisions contained therein: Recording nformation: For: ngress, egress and utilities Affects: Pa reel F 15. The terms and provisions contained in the document entitled "Release and Covenant Not to Sue" recorded July 5, 1984 as of Official Records. (Affects Parcel F) 16. Easement, including terms and provisions contained therein: Recording nformation: June 28, 1985 under Recording No n Favor of: Gilbert Centioli and Alma Centioli, husband and wife For: Vehicular and pedestrian ingress and egress and parking Document(s) declaring modifications thereof recorded October 28, 2013 as of Official Records. 17. The terms and provisions contained in the document entitled "Ordinance No. 1610" recorded July 5, 1985 as Recording No of Official Records. (Affects Parcels A and C) 18. The terms and provisions contained in the document entitled "Agreement" recorded December 5, 1985 as Recording No of Official Records. Document(s) declaring modifications thereof recorded June 17, 2014 as of Official Records. 19. The terms and provisions contained in the document entitled "Covenant Not to Sue" recorded October 9, 1986 as Recording No of Official Records. (Affects Parcel F) 20. The terms and provisions contained in the document entitled "Covenant Not to Sue" recorded March 17, 1993 as Recording No of Official Records. 5aid document does not contain a legal description. (Affects Parcel F) 21. The terms and provisions contained in the document entitled "Legal Description Clarification for Tax Parcel" recorded January 17, 2002 as Recording No of Official Records. (Affects Parcel D) 22. The terms and provisions contained in the document entitled "Memorandum of Commencement". recorded September 5, 2014 as of Official Records. Arst American 77tle nsurance Company Page 21 of 50

22 Form WA-S (6/76) Commitment File No. : NCS WAl Page No.9 {Affects Parcels A through E) 23. Easement, including terms and provisions contained therein: Recording nformation: n Favor of: Puget Sound Energy, nc. For: Guy wires and anchor poles Affects: Parcel A 24. Any facts, rights, interests or claims that may exist or arise by reason of the following matters disclosed by an ALTA/ACSM survey made by Encompass, Engineering and Surveying on June 04, 2013, last revised November 11, 2014, designated Job Number 13577: (A) Overhead power lines across the southwesterly and the northwesterly corners of Parcel A do not fall within an easement; (B) Overhead power lines across the southerly portion of Parcel D do not fall within an easement; (C) Gas line across the southerly portion of Parcel D does not fall within an easement; (D) Telephone line in the southeasterly corner of Parcel C does not fall within an easement. 25. A Deed of Trust to secure an original indebtedness of $57,202, recorded December 30, 2014 as Recording No of Official Records. Dated: December 30, 2018 Trustor: LMC Gilman Square, LLC, a Delaware limited liability company Trustee: First American Title nsurance Company Beneficiary: Wells Fargo Bank, National Association 26. A financing statement recorded December 30, 2014 as Recording No of Official Records. Debtor: LMC Gilman Square, LLC, a Delaware limited liability company Secured party: Wells Fargo Bank, National Association 27. Any question that may arise due to the shifting and/or changing in the course of ssaquah Creek. (Affects Parcel D and Lot 3 of Parcel C) 28. Rights of the general public to the unrestricted use of all the waters of a navigable body of water not only for the primary purpose of navigation, but also for corollary purposes; including (but not limited to) fishing, boating, bathing, swimming, water skiing and other related recreational purposes, as those waters may affect the tidelands, shorelands or adjoining uplands and whether the level of the water has been raised naturally or artificially to a maintained or fluctuating level, all as further defined by the decisional law of this state. (Affects all of the premises subject to such submergence) 29. Evidence of the authority of the individual(s) to execute the forthcoming document for LMC Gilman Square, LLC, a Delaware limited liability company, copies of the current operating agreement should be submitted prior to closing. 30. Title to vest in an incoming owner whose name is not disclosed. Such name must be furnished to us so that a name search may be made. A'rst American Title nsurance Company Page 22 of 50

23 Form WA-S (6/76) Commitment File No.: NCS WA Page No Unrecorded leaseholds, if any, rights of vendors and security agreement on personal property and rights of tenants, and secured parties to remove trade fixtures at the expiration of the term. r First American 77tle nsurance Company Page 23 of 50

24 Form WA-S (6/76) Commitment File No.: NCS WAl Page No. 11 NFORMATONAL NOTES A. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met. Failure to comply may result in rejection of the document by the recorder. B. Any sketch attached hereto is done so as a courtesy only and is not part of any t itle commitment or policy. t is furnished solely for the purpose of assisting in locating the premises and First American expressly disclaims any liability which may result from reliance made upon it. C. The description can be abbreviated as suggested below if necessary to meet standardization requirements. The full text of the description must appear in the document(s) to be insured. Lots A and B, LLA No , Rec Lots 2 and 3, SP No , Rec ptn Sec 28 Twp 24N Rge 06E, NE Qtr NW Qtr APN: , , , , , , , D. A fee will be charged upon the cancellation of this Commitment pursuant to the Washington State nsurance Code and the filed Rate Schedule of the Company. END OF SCHEDULE 8 Rrst American Title nsurance Company Page 24 of 50

25 Form WA-S (6/ 76) Commitment File No.: NCS WA1 Page No. 12 First American Title nsurance Company National Commercial Setvices COMMTMENT Conditions and Stipulations 1. The term "mortgage" when used herein shall include deed of trust, trust deed, or other security instrument. 2. f the proposed nsured has or acquires actual knowledge of a defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment, other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act or reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. f the proposed nsured shall disclosure such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option, may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions and Stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed nsured and such parties included under the definition of nsured in the form of Policy or Policies committed for, and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. n no event shall such liability exceed the amount stated in Schedule A for the Policy or Policies committed for and such liability is subject to the nsuring provisions, exclusion from coverage, and the Conditions and Stipulations of the form of Policy or Policies committed for in favor of the proposed nsured which are hereby incorporated by references, and are made a part of this Commitment except as expressly modified herein. 4. Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest or the lien of the nsured mortgage covered hereby or any action asserting such claim, shall be restricted to the provisions and Conditions and Stipulations of this Commitment. Arst American Tltle nsurance Company Page 25 of 50

26 Form WA-S (6/76) Commitment File No.: NCS WAl Page No. 13 The First American Corporation First American Title nsurance Company National Commercial Services PRVACY POLCY We Are Committed to Safeguarding Customer nformation n order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. t does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair nformation Values, a copy of which can be found on our website at Types of nformation Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: nformation we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; nformation about your transactions with us, our affiliated companies, or others; and nformation we receive from a consumer reporting agency. Use of nformation We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other finandal institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to non public personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and Rrst American's Fair nformation Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. c 2001 The First American Corporation -All Rights Reserved First American Title nsurance Company Page 26 of 50

27 0 z <> z ~ " E ~ < <.> "' :> "' w.,: li z ;sl,..:..,.,;.,;..... ~~ ~ 0 ~ z,: :5 0.. ~~ ~ z "" ~ Ul Ul Ul Ul "" < z "" ~ 0:: < 0.. "" 0 e!( 0 ~ 0!0' ~.. ~ ~ ll ~ ' ~ 1:! j.. "' l:l 3 :c <( ::> 0 <( (/) ~.J... 0 >- f- u z f- 0 z f- w 0 z :::!' t- (/) (/) :::> col <( -, o13: <( g, - w..ti:c z :tl< -.J :::>...J.J O 5o27i...JZ~ z 0 i= <( a::: <(...J u w 0 > <DO ~~-~ c1~ ~!!!~ ~: ~ ~.. *li. l ~ 58~\!~~ ~ ~~ ~l=~~ ~~~=~ ~ =-~ 1~ d~~~a ~ w~~~~~~; 2l ~~ ~! ~' ~~~ g- :;;\!l~., -~Jo 1~ y~ ~~.r ;o~ ~~uo~ ~~ ~ i sl ~... l!!ilt ~"'tl~~ s~~~. "" ii < u ~;~~~~e &i~ 4: r u~i!~~ li ~~~~; ~~ 8 ~ ~ ~ ;::: 1: a:: 0 ~~ ~~i!'~il ~! ~~~ie ~; ~ s h w w 3l!!!:~=~~~ u i ~ ~ ~h>-o ; ~~b{ ~ &i~ ~ Ji~e ~ Ul 0: ; a:~v;-~~p: ~ ~~ ~ ~~~*!!ill ~~ ~ ~~~~~ i ;! i ~ l ~e~! ;r "" 0.. i ri 0:: ~0 ~Q:~~ ~ 0 o<:!ll i! ze ~i ; " illn; ~ u w ~!:llk w~~ g~~e~~~~!~ lg 0:: :.::~ ~ a:::3:-c:oi a ~6~~eg~~~... :.. ~ ~ ~ ~ " :~, ~... ~ ;~ ~ '~,, '~ ~ ;3.i Page 27 of 50

28 CTY OF SSAQUAH LOT LNE ADJUSTMENT N 0. -~~~:.QQ_O_Q~ SSAQUAH, WASHNGTON ",.... u.u..68' U 18.1T L4 18.1T ~ 1Uit ' l611ut' L ' ll 24.70' l.t 31.77' LO 21.~ Ul 10.20' Cl R l4.to l l... 6-:)'41'40" C2 R :l'-10 L- 2.:.0 6-S'41'4t' $N'OT4f"[ $N'OT4fl S12'2'$':U( S&T2!1'S$'t W'Ot'20"'E SM"'t':WC SM"'T42"( S&e"'T 42"[ HSt'\t 'S!"W S0!'2t'S2"W...0.':12'11..: t--oo / l--eo "' tw '"' ~ ~ z ~ ~ Cl r::.~:o c " ~ J'JJ" ~ ',. ~=Ltto LK 01 tiiy R/" P$'4.)'JJ".-: 1/4~ SCC '~ ~=:~~o 6- ne,, C6 R llt.to 20' OCOCATtO 10~ l 1l.1l OTYOfiSSM)J~ PU':'S" ~~~ C7 lt 2S.O ~:;14. Cl ft loolfi.l1 PS'0'1'14" ct R 41S.~ L_.. l ,'lt. CO Jt.. U.O l t.-2yj1'70" en R M.s.e l l4,11 stw'ot" "' 0 J ;; 1: ~ "'' (...,..._ ',,..._ ' """'''..., -... ', l -..._,<<,..'-.J' "? ' PROPOS 0 PARCEl. 2 t09,oe2 so rr MCO.T T.Lle~*OHW H.&.)'[a.SlOf ~ / S C:.Ufi[..ns50'tASTOf ~ =~. -~ 1 N.w. Locu":~~-w li ', RECORDNG NO. SCAL : 1 JiC1( eo rr VOL/PAGE PORTON Of -..._~,,.,.,. '"-:''~> il- '- '- ~1/4 of!q:_t/. S ~~. T ~~N., R. ~-E,W.M....,..._ ' ' -... ', -..._, ',... ' -... ' '' -... '.J -...,..._ -..._. '""' ' ' l''(ASTOf k--_- ".' ~R ~8[R s upkrs SECONO ADO -, JO' lo' ~~ c~s PlAT -a. " ii'c 1 ~ 0 ~ lo 60 ~ SCALE 1" 60' ~~------~~:~~1xMN ~ "'",.. ~ JO ~~ " LOT LNE ADJUSTMENT FOR LMC GLMAN SQUARE, LLC DWC NO 13~77 LLA SHCCT 2 "' 2 Page 28 of 50

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49 NW Gilm an Bou leva rd KF C/T aco Bel l Shared Use Route ssaquah Creek Access Drive Shared Use Route Montessori School NW Locust Street N SCALE: 1 = Page 49 of 50

50 14-0 SHARED USE ROUTE VARES LANDSCAPE VARES LANDSCAPE SCALE: 1 = PLANTNG EDGE 2-0 PLANTNG EDGE ACCESS DRVE PARKNG SECTON AT SHARED USE ROUTE AT BULDNG C Page 50 of 50

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