NORTH!KITSAP!LEGACY!PARTNERSHIP!!

Memorandum!of!Understanding!!
!
This!Memorandum!of!Understanding!is!entered!into!by!Kitsap!County!(“County”)!and!Pope!
Resources!and!Olympic!Property!Group!(collectively,!“Landowner”)!to!identify!the!guiding!
principles!and!actions!to!be!undertaken!to!evaluate,!and!implement!if!feasible,!a!
comprehensive!program!for!public!acquisition!of!up!to!7,000!acres!of!open!space!and!plan!for!
the!sustainable!development!of!Port!Gamble!and!its!related!uplands!(“North!Kitsap!Legacy!
Partnership”).!

RECITALS!

WHEREAS,!the!Kitsap!County!Comprehensive!Plan!and!Open!Space!Plan!envisions!a!
coordinated!and!connected!open!space!network!that!includes!new!public!access!to!saltwater!
shorelines,!interconnected!trail!systems,!sustainable!forestry!practices,!as!well!as!opportunities!
for!recreation!and!enhanced!protection!for!wildlife!habitat,!shorelines!and!critical!areas;!and!!!

WHEREAS,!the!Landowner!owns!land!at!Gamble!Bay,!!which!includes!valuable!herring!
spawning!habitat!and!eel!grass!beds!and!whose!uplands!contain!a!biodiversity!of!species!
including!federally"protected!Bald!Eagle!and!Osprey!nests.!!
!
WHEREAS,!the!Landowner!and!Kitsap!County!support!the!ongoing!clean"up!and!
elimination!of!wood!waste!and!selected!toxic!chemicals!in!Port!Gamble!Bay!identified!by!the!
State!of!Washington;!and!
!
WHEREAS,!until!1853!the!Port!Gamble!S’Klallam!Tribal!Village!Teekalet!was!located!on!
what!is!now!Port!Gamble,!and!the!Tribe!currently!have!uses!of!the!Port!Gamble!Bay!and!its!
shoreline,!including!the!Tribe’s!treaty!fisheries.!
!
WHEREAS,!the!North!Kitsap!Trails!Association!has!been!established!to!facilitate!the!
creation!of!land!and!water"based!trails!and!kayak!routes!in!North!Kitsap;!and!!

WHEREAS,!Landowner!owns!approximately!8,000!acres!of!real!property!within!Northern!
Kitsap!County!(“Landowner!Property”).!!Landowner’s!Property!includes!the!National!Historic!
Landmark!District!of!Port!Gamble,!approximately!three!miles!of!salt!water!shoreline!on!Hood!
Canal!and!on!Port!Gamble!Bay,!and!approximately!7,000!acres!of!commercial!timberland!that!
may!be!suitable!for!public!access!to!saltwater!shorelines,!interconnected!trail!systems,!
permanent!public!open!space,!and!recreational!opportunities,!enhanced!protection!for!wildlife!
habitat,!shorelines!and!critical!areas!as!well!as!sustainable!forestry!activities!that!maintain!the!
biodiversity,!productivity!and!health!of!the!forest;!and!!

WHEREAS,!as!a!public!entity,!the!County!has!limited!financial!resources!and!is!interested!
in!pursuing!public/private!economic!development!opportunities!that!provide!jobs!and!is!a!
viable!tax!base!to!support!necessary!public!services;!while!permanently!protecting!miles!of!

August 16, 2010June 28, 2010 1

Kitsap!County!saltwater!shoreline!and!approximately!7,000!acres!of!forest!owned!by!the!
Landowner;!and!!

WHEREAS,!the!County!recognizes!the!importance!of!rural!lands!and!rural!character!to!its!
economy,!its!people,!and!its!environment,!as!well!as!reducing!the!inappropriate!conversion!of!
forest!lands!undeveloped!land!into!low"density!residential!development;!and!.!

WHEREAS,!to!carry!out!its!mission!as!a!publicly"held!company,!Landowner!is!actively!
evaluating!conversion!to!alternative!uses!or!third"party!sales!of!its!North!Kitsap!property.!!
Landowner’s!interests!include!obtaining!a!fair!risk"adjusted!economic!return!for!its!owners,!
determining!the!long"term!future!of!Port!Gamble,!and!providing!certainty!for!overall!use!and!
disposition!of!Landowner!Property!in!North!Kitsap!County.!!Landowner!is!not!a!distressed!seller!
of!any!of!its!Landowner!Property.!!Port!Gamble,!however,!is!not!economically!viable!in!its!
current!state!and!lacks!the!infrastructure!to!expand.!asThe!Landowner!has!made!annual!
subsidies!to!maintain!Port!Gamble!that!are!not!sustainable!long"term.!!In!addition,!conventional!
commercial!forestry!operations!in!the!northern!portions!of!the!County!present!economic,!
operational,!and!social!challenges;!and!!!!

! WHEREAS,!Landowner!Property!represents!a!significant!portion!of!Landowner’s!
operating!portfolio!in!North!Kitsap!and!a!source!of!ongoing!revenue,!the!parties!acknowledge!
that!pressure!exists!between!Landowner’s!need!to!maintain!ongoing!operating!revenue!and!the!
North!Kitsap!Legacy!Partnership’s!need!to!keep!as!much!of!the!land!ownership!and!mature!
timber!available!for!public!acquisition;!and!
!
WHEREAS,!the!County!has!an!interest!in!enhancing!the!historical!and!cultural!character!
of!Port!Gamble!and!including!!providing!a!pilot!program!for!rural!clustering!techniques,!
consistent!with!the!Growth!Management!Act,!for!Port!Gamble’s!associated!uplands.!This!
project!demonstration!shall!reduce!environmental!impacts!through!improved!infrastructure!
that!incorporates!feasible!and!sustainable,!low"impact!development!and!energy!efficiency!
techniques!(water!reuse,!solar,!geothermal,!etc.),!as!well!as!enhancing!its!economic!vitality;!and!!

WHEREAS,!as!the!single!owner!of!approximately!8,000!acres!of!land!in!North!Kitsap!
County,!Landowner!is!in!a!unique!position!to!partner!with!the!County!to!achieve!a!range!of!
permanent!public!benefits,!as!well!as!fulfill!its!mission!of!providing!an!appropriate!economic!
return!for!its!owners;!and!!

WHEREAS,!the!County!and!Landowner!share!multiple!common!interests!which!could!
benefit!from!an!innovative!approach!to!public"private!cooperation;!and!!!

WHEREAS,!the!parties!acknowledge!a!limited!window!of!opportunity!exists!for!the!
County!and!Landowner,!along!with!other!interested!agencies,!groups!and!members!of!the!
public,!to!each!secure!permanent!benefits!consistent!with!their!respective!interests;!and!!!!

WHEREAS,!without!these!joint!efforts,!Landowner’s!land!management!and!disposition!
plans!will!be!driven!solely!by!market!forces,!which!may!include!continued!timber!harvesting!

August 16, 2010June 28, 2010 2

and/or!sales!to!third!parties!or!other!actions!to!dispose!of!its!land!portfolio!in!North!Kitsap!
County;!and!!

WHEREAS,!the!process!set!forth!in!this!Memorandum!will!include!extensive!input!from!
the!general!public!and!interested!parties!with!a!focus!on!new!shoreline!public!access,!
preservation!of!open!space,!wildlife!habitat,!trails!and!recreation,!shoreline!and!waterfront!
access!and!historic!!and!cultural!preservation!and!enhanced!protection!for!wildlife!habitat,!
shorelines!and!critical!areas;!and!!!

WHEREAS,!Landowner!and!the!County!acknowledge!this!type!of!comprehensive,!
multiple"land!planning,!as!set!forth!in!this!Memorandum!and!to!be!contained!in!a!proposed!
development!agreement,!is!an!unprecedented!new!collaborative!approach!in!Kitsap!County.!!
The!parties!will!use!all!reasonable!efforts!to!further!each!party’s!interests,!but!the!parties!
acknowledge!there!is!no!guarantee!of!success.!!!!

NOW,!THEREFORE,!the!County!and!Landowner!intend!this!Memorandum!of!
Understanding!to!identify!actions!and!responsibilities!by!each!party,!necessary!to!evaluate!and!
implement!an!overall!plan!for!Landowner!Property!in!North!Kitsap!County.!!!

AGREEMENT!

1. Overall!Goals!and!Guiding!Principles.!!Currently,!the!conceptual!components!of!
the!North!Kitsap!Legacy!Partnership!are!listed!below!and!illustrated!in!Exhibit!A.!!However,!
these!components!may!change!for!a!variety!of!circumstances!including!political,!
environmental,!practical,!or!economic!reasons.!!All!acreages!below!are!approximate.!

Hansville!Block!
! No!residential!development!or!timber!sales!of!Landowner’s!2,000"acre!block!near!
Hansville.!
! Public!ownership!of!the!Hansville!block.!
!!!
Option!and!“The!Divide”!Properties!
! Create!a!publicly!owned!open!space!and!trail!corridor!from!Arness!Slough!in!
Kingston!to!Landowner’s!Port!Gamble!block.!
! 104"acre!publicly!owned!open!space!through!the!Arborwood!project!to!the!Heritage!
Park!Option!Property.!
! Public!ownership!and!no!residential!or!commercial!timber!development!of!the!
Heritage!Park!Option!Property!(366!acres)!and!Landowner’s!“Divide”!property!(664!
acres),!in!addition!to!the!existing!Heritage!Park!acreage!(447).!
!
Port!Gamble!(Port!Gamble!Block,!Port!Gamble!Townsite!and!Port!Gamble!Shoreline)!
! 3,000!acres!(+/")!contiguous!block!in!the!Port!Gamble!land!block!(south!of!the!
townsite!and!associated!uplands!described!below)!in!public!ownership,!no!
development.!

August 16, 2010June 28, 2010 3

 ! 1.5!miles!(+/")!of!Port!Gamble!waterfront!(south!of!the!townsite),!in!public!
ownership,!no!residential!or!commercial!timber!development.!
! Permitting!higher!densities, effectively!transferring!residential!densities!from!
other!OPG!properties!in!and!near!Port!Gamble!townsite!and!associated!
uplands!to!offset!reduced!or!no!densitythe!removed!density!!in!Hansville,!The!
Divide,!Port!Gamble!southern!block!properties,!and!the!1.5!miles!of!
undeveloped!waterfront.!
! Maintain!and!enhance!the!historic!and!cultural!character!and!economic!!and!
environmental!sustainability!of!Port!Gamble,!including!the!townsite!(120!
acres)!and!the!adjacent!uplands!(1000!acres)(“Port!Gamble!Townsite”!and!
“Associated!Uplands”).!
! Port!Gamble!Townsite!and!the!Associated!Uplands!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!services!required!to!support!
the!to!the!town and!it’s!future!residents!(e.g.!police,!fire!and!rescue,!schools,!
etc.)!
oEmbraces!sustainable!development!including!construction!methods!and!materials,!
energy!conservation!and!efficient!operating!principles!to!the!extent!feasible!
!
Contiguous!blocks!of!open!space!or!forestland!will!be:!
! Owned!by!a!public!agency!or!land!trust.
! Potentially!subject!to!permanent!conservation!easement(s)!outlining!allowed!forestry!
and!passive!recreational!uses!including!non"motorized!trails,!as!well!as!prohibited!uses,!
which!shall!include!but!are!not!limited!to,!new!residential!and!commercial!development,!
and!hunting.!
! Managed!for!diverse,!healthy,!mature!forests,!not!commercial!forestry,!which!may!
include:.!
o Passive!recreational!uses
o Restoration!of!the!diversity!of!the!natural!forest!
o Growth!and!preservation!of!mature!trees!and!habitat!
o No!short"cycle!forestry!!
o Greens!harvesting!and!selective!logging!meeting!the!goals!listed!above.!
o May!be!managed!subject!to!a!certified!forest!management!plan.!
!
!subject!to!a!conservation!easement!outlining!allowed!and!prohibited!uses!
!Managed!for!limited!forestry!or!timber!production!if!desired!by!public!or!land!trust!
! Used!for!connected!public!access!for!non"motorized!trails!and!other!recreation!
! Used!to!promote!and!preserve!marine!and!upland!wildlife!habitat!
! Used!for!limited!utility!crossings!or!areas!through!reserved!easements,!if!other!
alternatives!are!not!feasible.!

August 16, 2010June 28, 2010 4

 2. Operating!Principles!and!Public!Involvement.!!The!County!and!Landowner!will!
work!collaboratively!and!in!partnership!in!the!development!of!a!public!involvement!plan,!as!
well!as!public!information!materials!and!presentations.!!The!process!will!address!the!rights!and!
interests!of!Tribes!and!be!inclusive!with!extensive!consultation!with!affected!interest!groups,!
other!agencies!having!jurisdiction!and!members!of!the!general!public.The!process!will!be!
inclusive!with!extensive!consultation!with!affected!interest!groups,!other!agencies!with!
jurisdiction!and!members!of!the!general!public.!!Decisions!to!implement!this!Memorandum!will!
be!transparent!through!a!public!process!described!below.!!!

The!mutual!commitments!outlined!in!this!Memorandum!entail!legislative!actions,!consistent!
with!Kitsap!County!Code!Title!21,!with!final!determination!by!the!Kitsap!County!Board!of!
Commissioners.!!The!parties!recognize!that!Landowner!is!a!publicly!held!company!subject!to!
certain!rules!and!restrictions!such!as!federal!securities!regulations,!other!regulations!or!
company!policies!which!will!have!to!be!observed!through!this!process.!!Property!transactions,!
financial!commitments!and!other!major!decisions!will!need!to!be!approved!by!Landowner’s!
board!of!directors.!!As!a!publicly!held!entity,!Landowner!will!be!primarily!motivated!by!
economic!considerations!with!any!transfers!requiring!financial!justification!for!Landowner!to!
proceed.!!!

The!parties!also!acknowledge!that!Kitsap!County!will!be!representing!and!promoting!the!public!
interest!for!this!project.!The!public’s!interest!includes,!but!is!not!limited!to,!the!preservation!of!
+/"!7,000!acres!of!Landowner’s!North!Kitsap!land!portfolio!for!habitat!protection,!sustainable!!
forestry!practices,!public!open!space!and!recreational!trail!opportunities.!!Kitsap!County!will!
also!be!advocating!for!historic!and!cultural!preservation,!sustainable!economic!development!
and!the!creation!of!a!vital!community!capable!of!supporting!necessary!public!services!in!the!
Port!Gamble!area,!to!be!implemented!by!land!use!planning!and!regulations!consistent!with!
state!law.!!

3.Cooperative!Conservation!and!Community"making!Funding!and!Financing!
Investigation.!!The!parties!acknowledge!success!of!the!overall!North!Kitsap!Legacy!Partnership!
components!will!require!some!level!of!public!funding!or!financing,!and!a!cooperative!and!
coordinated!vision!among!many!private,!governmental!and!tribal!groups!to!secure!these!
resources.!Landowner!and!the!County!will!investigate!funding!and!financing!strategies!to!
support!implementation!of!the!North!Kitsap!Legacy!Partnership’s!goals!for!achieving!public!
ownership!of!Landowner!Property!noted!in!Section!1!of!this!Memorandum,!based!upon!the!
following!approach:!!

i.!Allowance!of!Density!Transfer!and!Bonuses:!The!parties!recognize!that!moving!
development!into!and!near!Port!Gamble!in!a!consolidated!footprint!will!allow!Kitsap!
County!to!generate!conservation!value,!recognized!in!either!full!fee!or!conservation!
easement!title!to!real!property!County!to!generate!conservation!value,!recognized!in!full!
fee!title!to!real!property!within!the!7,000!acres!targeted!for!public!ownership.!!The!
parties!recognize!that!such!transfer!of!title!will!be!necessary!to!provide!local!match!for!
various!grants.!In!addition,!the!parties!recognize!that!it!may!be!possible!to!offset!

August 16, 2010June 28, 2010 5

 additional!value!in!the!conservation!lands!through!allowance!of!additional!density!
within!the!identified!development!footprint.!The!parties!will!work!together!with!
stakeholders!to!examine!the!benefits,!impacts!and!market!feasibility!of!density!bonuses!
to!determine!if!such!additional!allowances!would!be!a!mutually!acceptable!trade!off!for!
generating!additional!conservation!value.!

ii.Conservation!Funding!and!Financing:!The!parties!will!structure!the!overall!project!
based!upon!phased!transfers!and!sales!of!lands!for!public!protection.!The!parties!will!
jointly!pursue!State!and!Federal!conservation!grant!sources!that!are!competitive.!If!
necessary,!parties!will!examine!the!benefits!and!impacts!of!financing!conservation!of!
forest!land!through!limited,!sustainable!timber!harvest.!

iii.Infrastructure!Funding!or!Financing:!The!parties!recognize!that!it!may!be!possible!to!
secure!additional!conservation!by!offsetting!Landowner!property!value!on!identified!
conservation!lands!through!public!funding!or!financing!of!such!infrastructure!as!sewer!
and!water!facilities.!The!parties!may!work!together!to!secure!infrastructure!funding!or!
financing!to!support!the!consolidation!of!development!into!and!near!Port!Gamble,!with!
transfer!to!public!ownership!of!conservation!lands!of!commensurate!value.!

3.4.Process.!!The!County!and!Landowner!will!convene!appropriate!meetings!to!determine!the!
feasibility!of!completing!the!North!Kitsap!Legacy!Partnership.!!This!includes!the!legislative!
processes,!hearings,!and!Technical!Advisory!Committee!process!described!in!Sections!2!and!5!
of!this!Agreement.!!Also,!the!parties!will!meet!with!other!agencies,!groups,!and/or!parties!to!
determine!the!feasibility!of!required!infrastructure,!such!as!wastewater!treatments,!
stormwater,!potable!water!and!transportation.!This!process!will!include!a!technical!advisory!
committee!discussed!in!section!5!below.!!The!parties!also!will!explore!sustainable!practices!and!
design,!energy!efficiency!techniques,!habitat!protection!and!restoration!and!enhancement!of!
marine!environmental!recreation!and!water!quality.!

4.5.Technical!Advisory!Committee.!!The!County!and!Landowner!will!convene!a!technical!
advisory!committee!consisting!of!citizens,!the!County,!state!and!local!agencies,!tribes,!
Landowner!and!other!interested!parties!with!technical!expertise!to!bring!to!the!project.!This!
committee!will!review!existing!environmental!information!and!provide!suggestions!to!inform!
the!initial!development!of!sub"area!details.!This!input!will!help!the!parties!develop!a!
preliminary!design!which!will!then!be!reviewed!for!any!further!suggestions!by!the!committee.!!
After!the!County!and!Landowner!have!made!any!refinements,!the!sub"area!design!will!begin!full!
SEPA!review!as!detailed!Section!7.3!below.!

5.6.!Proposed!Schedule.!!The!parties!propose!the!following!schedule,!which!is!subject!to!
adjustment!as!additional!information!is!obtained!regarding!funding!and!feasibility!of!the!North!
Kitsap!Legacy!Partnership:!
!
! Memorandum!of!Agreement!between!OPG!and!Kitsap!County!approved.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
August!July!2010!

August 16, 2010June 28, 2010 6

 ! Technical!advisory!committee!process.!!
! May!–!August!2010!
! Adopt!Title!17!regulations!regarding!development!agreements!and!Title!21!regulations!
regarding!development!agreement!processing.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
! June/July!2010!
! Adoption!of!Large!On"Site!Septic!(LOSS)!ordinance!and!repeal!of!moratorium.!!!!!!!!!!!!!!!!!!!!!!!!!!
July!2010!
! Submittal!of!proposed!development!agreement,!sub"area!site!plan,!allowed!densities,!
and!capital!facility!needs.!!
! October!2010!
! County!SEPA!Determination!of!Significance!and!EIS!Scoping.!!
! August/September!2010!
! Adopt!County"wide!(or!at!minimum!North!Kitsap)!non"motorized!plan!(trails,!etc.).!
December!2010!
! Adoption!of!Comprehensive!Plan!language!regarding!National!Historic!Towns,!their!
components!and!candidate!sites!(such!as!Port!Gamble).!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
December!2010!
! Release!first!draft!Sub"Area!Plan!policies!and!development!regulations.!
! January!2011!
! Approval!of!population!allocation!to!Port!Gamble!Townsite!by!the!Kitsap!Regional!
Coordinating!Council.!!
!!!!!!!March!2011!
! Release!second!draft!Sub"Area!Plan!policies!and!development!regulations!
! July/August!2011!
! EIS!Complete.!!
! July/August!2011!
! Adopt!of!Sub"Area!Plan,!development!regulations!and!approval!of!development!
agreement.!
! December!2011!

7.!! Legislative!Actions.!!The!County!and!Landowner!agree!to!make!best!efforts!to!
follow!the!work!items/deliverables!outlined!in!this!Section.!

7.1 Development!Agreement.!The!County!and!Landowner,!through!the!North!Kitsap!
Legacy!Partnership,!agree!to!collaboratively!work!together!on!a!Development!Agreement!to!
address,!including!but!not!limited!to,!the!following!items:!

! Permanent!protection!of!up!to!~7,000!acres!of!OPG!forest!land!through!transfers!of!fee!
simple!ownership!by!OPG!to!Kitsap!County!as!required!by!development!agreement,or!!
fee!simple!sales!to!Kitsap!County!or!conservation!organizations.!
! Kitsap!County!and!conservation!organizations,!with!technical!support!from!OPG,!shall!
actively!pursue!public!and!private!land!acquisition,!planning!and!stewardship!grants!for!
the!OPG!properties.!
! Development!agreement!term!of!applicability.!!

August 16, 2010June 28, 2010 7

 ! Cross"reference!to!concurrently!adopted!Comprehensive!Plan!revisions!sub"area!plan,!
development!regulations!and!their!associated!environmental!documentation!for!Port!
Gamble!Townsite!and!its!Associated!Uplands!that!addresses:!!
o National!Historic!Town!Designation!as!authorized!under!the!Growth!Management!
Act!(36.70A.520!RCW).!!
o Rural!clustering!program.!
o Capital!facilities!plan.!
o Inclusion!of!low!impact!development!techniques.!!
o Inclusion!of!water!reuse!technologies.!!
! Mutually!Aagreed"upon!property!valuation!methodology!of!Landowner!Property.!!
! A!schedule!and!sequence!of!properties!to!be!transferred!to!public!ownership,!as!well!as!
definition!of!public!ownership.!!
! A!Conservation!Easement,!consistent!with!Washington!State,!local!and!private!
acquisition!funding!programs,!regarding!appropriate!land!use!recreational!activities!on!
properties!noted!in!Section!1!of!this!Memorandum.!
! Agreement!on!the!sale!of!such!properties!while!agreement!is!in!effect.!!
! Agreed"upon!forestry!practices!while!the!agreement!is!in!effect.!!
! Termination!clause!and!associated!conditions!for!such!a!termination.!!

7.2 Comprehensive!Plan/Sub"Area!Plan!Preparation.!!The!County!and!Landowner!
agree!that!comprehensive!plan!map!and!text!amendments,!as!well!as!the!development!of!a!
sub"area!plan!and!associated!development!code,!are!appropriate!for!the!Port!Gamble!Townsite!
and!its!Associated!Uplands!and!shall!be!considered!by!the!County.!!The!development!
agreement,!as!outlined!in!Section!7.1,!shall!address!the!specific!components!of!the!necessary!
amendments!and!sub"area!plan!development.!!This!development!agreement!will!also!include!
evaluation!of!the!shoreline!designations!of!Port!Gamble!Townsite!and!shoreline!in!coordination!
with!other!County!shoreline!program!revisions!processes.!!

7.3 SEPA.!Upon!availability!of!substantial!sub"area!information,!the!County!will!
review!existing!environmental!documentation!and!make!a!threshold!determination!under!the!
State!Environmental!Policy!Act!(SEPA)!on!the!proposed!project!components!outlined!in!Sections!
7.1!and!7.2!of!this!memorandum.!!The!parties!expect!that!an!environmental!impact!statement!
will!be!required.!!Landowner!shall!be!responsible!to!fund!the!appropriate!level!of!
environmental!documentation,!consistent!with!Kitsap!County!Code!Title!18,!and!will!utilize!
existing!environmental!studies!and!information!to!the!extent!possible.!!However,!the!County!
shall!have!ultimate!responsibility!for!the!SEPA!process.!!

8.0! Suspension!Period.!!Between!the!execution!of!this!Memorandum!and!December!31,!
2011!January!1,!2011!(“Suspension!Period”),!during!which!time!the!review!process!described!in!
Section!6!will!occur!and!transaction!feasibility!and!acquisition!targets!will!be!more!firmly!
defined,!Landowner!agrees!that!it!will!not:!!

8.1! Engage!in!any!clear"cut!timber!harvests!or!substantial!selective!harvesting!within!
the!North!Kitsap!portfolio!described!in!Section!1,!or!!

August 16, 2010June 28, 2010 8

 8.2! Sell!any!portion!of!its!North!Kitsap!portfolio!with!the!exception!of!the!
approximately!142"acre!block!which!houses!the!former!transplant!nursery!and!the!150"
acre!Chatham!development.!!

At!least!thirty!(30)!days!prior!to!the!termination!of!the!Suspension!Period,!the!parties!shall!
meet!to!discuss!the!desirability!and/or!feasibility!of!extending!said!period.!!Landowner!in!good!
faith!will!consider!extending!the!Suspension!Period!in!the!context!of!its!business!needs,!but!the!
decision!to!continue!to!forego!or!not!its!timber!harvesting,!marketing!and!sales!is!at!
Landowner’s!sole!discretion.!

9.!Even!though!this!venture!is!called!the!North!Kitsap!Legacy!Partnership,!neither!this!
Memorandum!of!Understanding!nor!any!future!agreement!between!the!parties!creates!an!
actual!partnership!or!any!form!of!joint!venture!in!law!or!fact.!

DATE:! ! DATE:!
! ! !
POPE!RESOURCES,! ! KITSAP!COUNTY!BOARD!OF!COMMISSIONERS!
a!Delaware!limited!partnership! ! !
! ! !
! ! !
David!L.!Nunes,!President!&!CEO! ! Josh!Brown,!Chair!
19245!Tenth!Ave.!NE! ! !
Poulsbo,!WA!!98370"7456! ! !
! ! Steve!Bauer,!Commissioner!
! ! !
OPG!Properties!LLC,!a!Washington!limited! ! !
liability!company!!
! ! Charlotte!Garrido,!Commissioner!
! ! !
! ! ATTEST:!
! ! !
! ! !
Jon!Rose,!President! ! Opal!Robertson!
19245!Tenth!Ave.!NE! ! Clerk!of!the!Board!
Poulsbo,!WA!!98370"7456! ! !
! ! !
! ! !
! ! Approved!as!to!form!by!the!County!
Prosecutor’s!Office!
!

August 16, 2010June 28, 2010 9