Central Puget Sound Regional Transit Authority V. Marymoor Storage Partners Llc

CourtCourt of Appeals of Washington
DecidedDecember 26, 2023
Docket84466-1
StatusPublished

This text of Central Puget Sound Regional Transit Authority V. Marymoor Storage Partners Llc (Central Puget Sound Regional Transit Authority V. Marymoor Storage Partners Llc) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Puget Sound Regional Transit Authority V. Marymoor Storage Partners Llc, (Wash. Ct. App. 2023).

Opinion

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IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

CENTRAL PUGET SOUND REGIONAL No. 84466-1-I TRANSIT AUTHORITY, a regional transit authority, dba SOUND TRANSIT, DIVISION ONE

Plaintiff,

v.

LMRK PROPCO 3 LLC, a Delaware limited liability company,

Appellant,

CCTMO LLC, a Delaware limited liability company; T-MOBILE WEST TOWER LLC, a Delaware limited liability company; and SPRINT SPECTRUM PUBLISHED OPINION L.P., a Delaware limited partnership,

Respondents,

MARYMOOR STORAGE PARTNERS LLC, a Washington limited liability company; PUGET SOUND ENERGY, INC., a Washington public utility corporation; AT&T INC., a Delaware corporation; KING COUNTY, a Washington municipal corporation; and ALL UNKNOWN OWNERS AND UNKNOWN TENANTS,

Defendants.

BOWMAN, J. — Central Puget Sound Regional Transit Authority (Sound

Transit) paid $16.65 million as full and just compensation to condemn by eminent

domain property owned by Marymoor Storage Partners LLC. The property For the current opinion, go to https://www.lexisnexis.com/clients/wareports/. No. 84466-1-I/2

included a cell tower in which LMRK PROPCO 3 LLC (Landmark), CCTMO LLC,

T-Mobile West Tower LLC (T-Mobile Tower), Sprint Spectrum LLC, and T-Mobile

West LLC1 asserted compensable leasehold interests. Landmark appeals the

trial court’s disbursement of just compensation funds to CCTMO, T-Mobile

Tower, Sprint, and T-Mobile West. Landmark argues those entities were

judicially estopped from moving for disbursement based on an agreement that

their interests would be determined after an evidentiary hearing. It also argues

that the trial court did not follow statutory procedures before disbursing the funds

and that the disbursement was inequitable. We affirm.

FACTS

Marymoor owned 2.5 acres in Redmond. It used most of the property for

a self-storage facility. But it leased a small section on the northwest corner of the

property and several adjacent storage units to T-Mobile Tower. T-Mobile Tower

then built and operated a 100-foot-tall cell tower on the land, leasing space on

the tower for telecommunications antennae to several phone companies.

Marymoor assigned Landmark the right to collect rent from T-Mobile Tower’s

ground lease.

By 2018, AT&T, Sprint, and T-Mobile West each held leasehold interests

in the cell tower, granting the companies access and utility easements for affixing

and operating clusters of telecommunication antennae. AT&T, Sprint, and T-

Mobile West also held leasehold interests in the storage facility, granting each

company access to and use of a storage unit for equipment. T-Mobile Tower

1 T-Mobile Tower and T-Mobile West are different entities.

2 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/. No. 84466-1-I/3

held a leasehold interest in the cell tower, authorizing it to rent space on the

tower. T-Mobile Tower leased back its entire interest to CCTMO. And it granted

CCTMO a power of attorney to act on its behalf on matters related to the cell

tower leases. So, CCTMO held a sublease interest in the management of the

tower and the rent paid by AT&T, Sprint, and T-Mobile West. Finally, Landmark

held the ground lease for the cell tower site and the storage units. That interest

gave Landmark the right to collect income from T-Mobile Tower for use of the site

and from AT&T, Sprint, and T-Mobile West for rental of the storage units.

In early 2018, Sound Transit notified Marymoor that it intended to

condemn by eminent domain Marymoor’s property to construct, operate, and

maintain a portion of the “Downtown Redmond Link Extension” of its light rail

project. In preparation, Sound Transit hired property advisors to appraise

Marymoor’s property. The October 2018 appraisal valued the collective interests

in the property at $16.65 million—$15.5 million for the land and $1.15 million for

the cell tower interests.

In early 2019, Marymoor tried selling the property to Sound Transit to

avoid condemnation proceedings. But to do so, it needed to free its title from all

encumbrances. So, following mediation in June 2019, Marymoor and Landmark

executed a settlement agreement. Marymoor agreed to pay Landmark

$950,000, and Landmark agreed to secure releases of all the cell tower tenants’

leasehold interests. Marymoor then agreed to sell the property to Sound Transit

for $16.7 million. But Landmark failed to clear the title, and in September 2019,

Marymoor and Sound Transit’s purchase and sale agreement fell through. As a

3 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/. No. 84466-1-I/4

result, Marymoor and Landmark sued each other for breach of the June 2019

settlement agreement. The case proceeded to arbitration.

In October 2019, Sound Transit petitioned to condemn by eminent domain

Marymoor’s fee simple interest in the property as well as all encumbrances on

the land. It named Marymoor, Landmark, and CCTMO as respondents.2 The

court set the matter for trial in June 2020.

In January 2020, the court entered a stipulated order granting Sound

Transit immediate use and possession of the property once it deposited $16.65

million into the court registry as just compensation for the taking. Soon after, T-

Mobile Tower petitioned to intervene, which the court granted. After T-Mobile

Tower intervened, CCTMO’s attorneys represented its interest because their

interests were coextensive.3

In February 2020, Marymoor moved to release $15.5 million of the funds

in the court registry. CCTMO objected, arguing the motion was premature

because the parties had not yet determined their separate cell tower and land

interests. Alternatively, CCTMO requested that the court leave $2 million in the

registry to ensure compensation for the remaining interests. The court granted

Marymoor’s motion but left $2 million in the registry.

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