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I1. Jones Offer Old School Station Lot 9,,-7AWalr►. KALISPELL Report To: Doug Russell, City Manager Development Services 201 1 st Avenue East Kalispell, Montana 5991 Phone (406) 758-7940 From: Jarod Nygren, Development Services Director Subject: Old School Station, Lot 9 Offer to Purchase Meeting Date: April 19, 2021 BACKGROUND: On April 5, 2015, by means of Resolution 5710, the City Council elected to take assignment from Flathead County of its tax lien on six parcels of Old School Station by paying the past due taxes and assessments. On April 20, 2015, City Council passed Resolution 5712 in which Council stated its intention to retain and sell the properties and to set the concluding date and time of the period of redemption for May 4, 2015, at 7 pm. By Resolution 5717 on May 4, 2015, Council determined to retain and sell all interests in the Old School Station lots under its ownership. The six properties were appraised by Clark Real Estate Appraisal in 2015 to establish listing prices for each lot. In April 2017, the City of Kalispell listed the properties for sale through Flathead Valley Brokers at the appraised values with the potential off set of reduced Special Improvement District bond payments as calculated for each individual lot. On April 6, 2021, the City received an offer for the purchase of Lot 9 from Clifton Jones. The buy -sell agreement is at full listing price with $10,000 in earnest money and reductions predicated on a signed Developer's Agreement wherein the buyer agrees to complete new construction on the site within 18 months of sale. The Developer's Agreement will also include provisions to reimburse the purchaser for the payment of the specials which come due annually. The purchaser will only be eligible for reimbursement provided the use meets the terms and conditions of the applicable Tax Increment Finance District. RECOMMENDATION: Make a motion to proceed with the Jones offer to purchase Old School Station Lot 9 as presented. FISCAL EFFECTS: For Lot 9 the City will receive the purchase price of $228,420 with $10,000.00 in Earnest Money. Pursuant to the terms of a Developer's Agreement, tax increment will be applied to reimbursement of SID payments if the purchaser meets the terms and conditions of the Tax Increment Finance District. Additionally, the purchase price will be reduced by $32,435.64 to $195,984.36 if the purchaser completes planned capital improvements to the property within 18 months of closing. ALTERNATIVES: Decline offer and/or identify different terms for buy -sell agreement. ATTACHMENTS: Map of Old School Station Buy -Sell for Lot 9 at Old School Station lk, Old School Station ■ LO'f 9 DTI 2.71 x dP �..� SOL 1 1.22 Be 2.47 ac hL -IL SNOWLINE LN— _ O Y- = i u 14c 5.61ac i I. T1. , 23�dc 11Ifi5 L[Yi'4 1.02 ac 1.E6 Be 4.73 Be Oil, OLD , •3 /� SCHOOLHOUSE LOOP 000 I [ YF OWNER City of Kalispell CITY OF KALISPELL �9 a,58 ac PENI :e AuthentisignID: 9E8D700B-1471-4735-80A2-E849808CC9C0 MULTIPLE COUNTER OFFER aEAlrart- aFPo3;writ 1 Date: 04/09/2021 2 3 This Multiple Counter Offer pertains to a Buy -Sell Agreement (hereafter the "Agreement") dated 4/6/2021 4 by and between city of Kalispell (hereafter 5 the "Sellery and Clifton Jones and/or -assigns (hereafter 6 the "Buyer") concerning the following real property (hereafter the "Property') described as: 7 100 Old School Drive Kalispell MT 59901 8 Old School Station, S33, T28 N, R21 W, Lot 9, Acres 2.82, Assr ##OOOE001368 9 10 11 12 All the terms and conditions of the A reement ex t th B C 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 g , cep a uyera ommitmem provision, are hereby incorporated by reference except as modified by the following terms and provisions: Buyer acknowledges that there are multiple offers on Lot 9 for City Council review at the April 19 City Council meeting. Buyer(s) will be notified of council's decision via written response on or before April 23, 2021. This offer and acceptance can only be approved by the authority of the City Council and it will meet next on Monday April 19, 2021. if the Council approves the structured offer and acceptance, the City Manager can sign off on/before April 23 at 5:00 pm. Additional counter offer terms may arise from City Council's recommendation and will be presented via written response to buyer(s) upon City Manager's request on or before April 23, 2021 at 5:00 Pm_ Seller to provide incentive refund 14.7% of purchase price upon completion of building project within 18 months of closing. Any Special Improvement District reimbursement shall be pursuant to a Developer's Agreement finalized within the Due Diligence period and mutually approved by buyer and seller with the intent to reimburse the purchaser for the payment of the specials which come due annually (provided the use meets terms and conditions of applicable Tax Increment Finance District.) Strike lines 135-137 of Buy Sell. Line 370 of Buy -Sell: Buyer's Commitment time to be extended to 04.23.21 at 5:00 pm. ❑ The dates for performance contained in the Agreement shall be extended the same number of days that have elapsed between the Agreement and the date of final Acceptance of this Multiple Counter Offer except for the closing date which shall remain as set forth in the Agreement; OR to All performance dates contained in the Agreement shall remain the same. All the terms and conditions contained in the Agreement, which have not been specifically modified or deleted by this Multiple Counter Offer are hereby approved by the Seller subject to the Multiple Counter Offer conditions set forth below. Seller is also making a counter offer(s) to another prospective buyer(s) on terms which may or may not be the same as in this Multiple Counter Offer. Acceptance of this Multiple Counter Offer by Buyer shall NOT be binding unless and until this Multiple Counter Offer is subsequently re -signed by Seller, as set forth below, and the re -signed copy is delivered in person, by mail or electronic means to the Buyer or Buyer's Broker/Salesperson within the time specified ("Final Acceptance"). In the event that Seiler receives at least one accepted Multiple Counter Offers, Seiler reserves the right to determine which accepted Multiple Counter Offer to confirm, if any. Final Acceptance by Seller shall occur only if Seller has signed under "Seller Final Acceptance" as set forth below. Seiler may withdraw this Multiple Counter Offer any time prior to receiving written acceptance from Buyer. If acceptance is not.given by Buyer by expiration of the time for acceptance, this offer is null and void. Cam] I © 2019 MONTANA ASSOCIATION OF REALTORSO TORSO ! Buyer's Initials Multiple Counter Offer, April 2019 Seller's Initials Page 1 of 2 This form presented by Linda D Pistorese I Flathead Valley Brokers i (406) 752-8883 i iindap@fvbmt.com TRANSACTIONS AuthentisignID: 9E8D700B-1471-4735-80A2-E849808CC9C0 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Seller agrees to sell the Property set forth above on the terms and conditions set forth herein. Unless acceptance of this Multiple Counter Offer is signed by Buyer and a signed copy delivered in person, by mail or electronic means and received by Seller or Seller's Broker/Salesperson prior to 04/23/2021 at 5-:00 F--Lam. ® p.m., Mountain Time, this Multi le Counter Offer shall be considered withdrawn. P m "Y- 2, Seller's;Signatur� city of Kalispell Date Seller's Signature Date The parties hereto, all agree that the transaction contemplated by this document may be conducted by electronic means in accordance with the Montana Uniform Electronic Act. BUYER ACCEPTANCE Buyer accepts the foregoing Multiple Counter Offer and agrees to purchase the Property set forth above on the terms and conditions specified. Unless acceptance of this Multiple Counter Offer is signed by Seller and a signed copy delivered in person, by mail or electronic means and received by Buyer or Buyer's Broker/Salesperson prior to at -7❑ a.m. G p.m., Mountain Time, this Multiple Counter Offer shall be considered withdrawn. 04/12/2021 Buyer s s12IPO UW:50 PM MDT Clifton Jones and/or assigns Date Buyer's Signature Date SELLER FINAL ACCEPTANCE By signing below, Seller accepts the Multiple Counter Offer and creates a binding contract. Seller's Signature City of Kalispell Date Seller's Signature Date NOTE: Unless otherwise expressly stated the term "Days" means calendar days and not business days. Business days are defined as all days except Sundays and holidays. Any performance which is required to be completed on a Saturday, Sunday or holiday can be performed on the next business day. © 2019 MONTANA ASSOCIATION OF REALTORS@ Multiple Counter Offer, April 2019 Page 2 of 2 This form presented by Linda D Pistorese I Flathead Valley Brokers 1 (406) 752-8883 1 lindap@fvbmt.com TRANSACTIONS