Chapter 15.04 PROPERTY MANAGEMENT ORDINANCE

This Property Management Ordinance is enacted by the Puyallup Tribal Council (“Council”) to set forth guidelines concerning the management of certain Tribal assets and resources. This chapter creates a central management role for Puyallup International, Inc. (PII), which is a corporation wholly owned by the Puyallup Tribe, and is an agency and instrumentality of the Tribe. [Res. 160790 (07/16/90) § 101]

15.04.020 PII management philosophy.

The Council confirms the imperative need to separate business decisions and management from the administration of Tribal government as provided for in PII’s Charter and recognizes that PII will base its decisions primarily on economic considerations, although taking into account other important Tribal objectives. The Council shall support PII’s policy of basing decisions primarily on economic considerations. [Res. 160790 (07/16/90) § 102]

15.04.030 Tribal law and interests.

PII shall comply with Tribal and federal law and with its Charter, keep the Council informed of its activities and consider the need to coordinate with other Tribal departments to take into account other interests of the Tribe. [Res. 160790 (07/16/90) § 103]

Subchapter 2. Property Management and Development

15.04.040 Property management.

PII shall be responsible for carrying out economic development for the Tribe as set forth in its Charter. PII shall advocate and pursue the economic interests of the Tribe, including managing properties, businesses and assets of the Tribe for profit. PII shall manage such Tribal real estate or projects as the Council from time to time shall assign or lease to it for economic purposes. Council may from time to time withdraw lands from PII’s property management; provided, however, that the Council shall not terminate any lease of property to PII unless actions or circumstances justify termination under the terms of the lease. The Council hereby assigns to PII responsibility for management of Tribal properties and projects set forth below. [Res. 160790 (07/16/90) § 104]

15.04.050 Development projects.

PII shall be responsible for projects related to the economic development of settlement lands over which the Tribe has approval authority under the Settlement Agreement reached by the Tribe and non-Indian parties, such as, but not limited to, the Union Pacific grade separation, Blair navigation project, East/West Road around and/or Blair Bridge replacement. PII shall also be responsible for determining whether to exercise the Union Pacific option and shall enter into the partnership agreement with Trammell Crow with respect to the Torre property. PII shall recommend to the Council the confirmation or approval of easements across the river bed. PII shall also serve as property manager for parcels that it leases from the Tribe in the future, property PII purchases from time to time to the benefit of the Tribe, and property leased by others from the Tribe. (Authority to purchase land was given to PII in its Charter because there may be circumstances in which Tribal economic development will be better served by having PII hold the land in fee for certain period of time. Land held in fee by PII can be the subject of a fee-to-trust application at a later time.) [Res. 160790 (07/16/90) § 104.1]

15.04.060 Definition of “property management.”

The term “property management” as used in this chapter shall include some or all of the following, depending on the circumstances and the property involved: planning, development, insurance, security, maintenance, enforcement of lease and contract terms and collection of revenues, lease payments and rents. [Res. 160790 (07/16/90) § 105]

Subchapter 3. Revenue and Leases

15.04.070 Collection and disposition of revenues.

The Council and PII shall use the following guidelines to determine the amounts available for reinvestment and distribution under Sections 11.3 and 11.4 of the PII Charter. PII shall collect all revenue generated on or by lands, businesses, and assets under its management, lease, ownership, or control, including but not limited to rental and lease payments, payments for joint ventures, dividends, partnership payments and receipts from sales of properties and businesses over which it has management responsibilities. These items shall be treated as gross revenue for purposes of this section. From gross revenue PII shall subtract its expenses, debt service, management established reserves, and basis in properties and businesses sold all as determined based on generally accepted accounting principles, to arrive at the amount that is subject to reinvestment and distribution under Sections 11.3 and 11.4 of the PII Charter. [Res. 160790 (07/16/90) § 106]

15.04.080 Dividend.

Beginning May 1, 1990, PII shall pay to the Tribe a dividend of at least $16,000 per month. Amounts paid to the Tribe under this provision shall be credited against the amounts to be distributed to the Tribe under PTC 15.04.070 and Sections 11.3 and 11.4 of the PII Charter. This section concerning payment of monthly dividends shall expire on March 31, 1992, unless extended by mutual agreement of the Council and PII, but expiration of this provision shall not affect the requirements of PTC 15.04.070 or Section 11.3 and 11.4 of the PII Charter. [Res. 160790 (07/16/90) § 107]

15.04.090 Leases of Tribal land.

PII may lease land or interests in land from the Tribe to the extent permitted and subject to the conditions imposed by the Tribal Constitution and Bylaws and federal law. Any lease of Tribal land to PII or lease, sublease or assignment of lease by PII to third parties shall be deemed to be for governmental purposes. Any proposed lease of Tribal land shall be subject to the provisions of Article IX, Section 3 of the Tribal Constitution, which gives preference to cooperative associations of Tribal members and individual Tribal members, and which requires approval of the Secretary of the Interior for any lease of Tribal land. The Council and PII shall use the following procedure whenever the Council receives a proposal to lease a parcel of Tribal land not previously leased to PII that the Council wishes to consider. [Res. 160790 (07/16/90) § 108]

15.04.100 Bidding process.

The Council shall not consider or act upon any proposal to lease Tribal land unless a bid is submitted in writing to the Council setting forth all the pertinent terms of the proposed lease. Upon receipt of a bid from any party, the Council shall notify PII. If the Council chooses to consider leasing the parcel, PII shall give notice of the availability for lease of the parcel in the following manner, depending on the duration of the lease. For any proposed lease that will be of one year’s duration or less, notice shall be posted for no less than 10 calendar days in the Tribal Administration Building and in other surrounding Tribal buildings. For any proposed lease that will be greater than one year in duration, notice shall be posted in the locations described above, and shall be published in appropriate local newspapers as determined in each case. Any person requesting of PII a copy of any bid proposal shall be provided one without charge. The Council shall set a deadline for submission of bids for the parcel in question which shall be no fewer than 14 and no more than 21 days after the last day of advertising the property for lease. The Council shall, within five working days after the deadline for bids, act upon the bids. The Council may take any action it deems appropriate, including, but not limited to, accepting a bid under the standards set forth in PTC 15.04.110; rejecting all bids; accepting a bid on condition(s); or directing one or more bidders to provide further information concerning the bid. The Council retains its complete authority and discretion to determine whether to lease a parcel of land. [Res. 100593 (05/10/93); Res. 160790 (07/16/90) § 108.1]

15.04.110 Standards for award of leases.

When the Council receives competing bids for lease of a parcel of Tribal land, the Council shall, if it determines to lease the parcel, award the lease to the party whose bid will provide the greatest total economic benefit to the Tribe; provided, however, that if the bid which meets that standard has been submitted by a party that is not PII, an individual Tribal member, or a cooperative association of Tribal members, the Council may in its discretion choose among bids submitted by PII, individual Tribal members, and cooperative associations of Tribal members and lease the land to the party, from among that group, whose bid will provide the greatest total economic benefit to the Tribe; provided further, however, that the Council retains its authority and discretion to determine in each situation the uses for which it will lease Tribal land. These standards are subject to, and shall be applied in a manner consistent with, the provisions of federal statutes and regulations. [Res. 160790 (07/16/90) § 108.2]

Subchapter 4. Planning and Investments

15.04.120 Determination of total economic benefit.

Unless it is clear from the face of competing bids that one provides greater total economic benefit to the Tribe than other bids, the Council shall hire an independent qualified appraiser to determine the total economic benefit that will be provided by each of the competing bids. The cost of each appraisal shall be borne by the party whose bid is appraised. If equal economic benefit is determined to be offered by competing bids, preference shall be given as set forth in Article IX, Section 3 of the Tribal Constitution. When measuring the total economic benefit of a bid submitted by PII, the Council shall include the total value of any payments to be made or reasonably expected to be made by third parties to PII even though only a portion of the payments or income may be distributed to the Council pursuant to PTC 15.04.070 and Sections 11.3 and 11.4 of PII’s Charter. PII is wholly owned by the Tribe and shall be regarded as operating for the benefit of the Tribe as a whole. [Res. 160790 (07/16/90) § 108.3]

15.04.130 Contamination cleanup.

Tribal environmental policy is developed by the Tribe’s Environmental Department in conjunction with the Council. The Settlement Agreement provides that “the Tribe will adopt standards for trust lands which meet or exceed the highest standards of federal and state environmental protection.” The Council recognizes that contamination cleanup on the settlement lands is vitally important to the successful development and management of business enterprises by PII. The Council therefore creates the Settlement Lands Cleanup Team (“SLCT”) which shall consist of the Environmental Development, the Fisheries Division, and PII. The SLCT shall monitor all aspects of contamination cleanup of settlement lands consistent with the Settlement Agreement, related documents, and Tribal environmental laws and policies. The Environmental Department shall act as the contact agency within the Tribe. It shall, upon receipt of any documents relevant to cleanup of the settlement lands, distribute copies to PII and other interested departments. The Environmental Department shall be the spokesperson for the Tribe on matters relating to the environment, including contamination cleanup. PII shall refer all inquiries and communications by parties outside the Tribe to the Environmental Department. The SLCT shall, after consultation with other interested departments, develop recommendations to the Council on all pertinent aspects of cleanup planning and actions. In cases where the Environmental Department and PII do not agree on a recommendation, each shall express its views to the Council. The SLCT shall report to the Council on a regular basis regarding the status of cleanup activities. [Res. 160790 (07/16/90) § 109]

15.04.140 Tribal land use planning.

Tribal land use policy is developed by the Land Use Department in conjunction with the Council. Tribal land use policy reflects a balance of concerns including economic, cultural, social, recreational, and other benefits which contribute to the well-being and interests of the Tribe and its members. PII and the Land Use Department (as well as other departments) shall work together to share information and resources to maximize the efficiency and effectiveness of Tribal government. PII shall provide input to the Director of the Land Use Department, to other relevant departments of Tribal government, and to the Council on land use and taxation matters. Responsibility for zoning and other land use matters remains, however, with the Land Use Department. [Res. 160790 (07/16/90) § 110]

15.04.150 Initial capitalization.

The Council has previously, by Council Resolution No. 223290B, provided PII with initial capitalization in the amount of $8,000,000 in cash from the Tribal settlement. PII shall use at least $3,200,000 of those funds to purchase real estate to add to the Tribal land base. [Res. 160790 (07/16/90) § 111]

15.04.160 Long-term investments.

PII shall consult with the Council before making any long-term investments over $250,000. [Res. 160790 (07/16/90) § 112]

Subchapter 5. Miscellaneous

15.04.170 Public announcements.

PII shall coordinate public announcements with the Council. [Res. 160790 (07/16/90) § 113]

15.04.180 Assistance to Tribal government.

PII shall give assistance, as requested, to any unit of Tribal government on purchase of real estate or other economic issues that may arise from time to time. [Res. 160790 (07/16/90) § 114]