Resolution 3659 - Authorizes Community Development to Undertake Certain ActivitiesRESOLUTION NO. 3659
A RESOLUTION AUTHORIZING THE COMMUNTTY DEVELOPMENT COMMITTEE AND THE
COMMUNITY DEVELOPMENT DEPARTMENT OF THE CITY OF KALISPELL TO UNDERTAKE
CERTAIN ACTIVITIES WHICH MAY LEAD TO THE ACQUISITION OF REAL PROPERTY
FOR THE DEVELOPMENT OF THE "WEST SIDE PARK". ; J
WHEREAS, the City of Kalispell City Council. by Ordinance No. 1065
passed on the 4th day of November, 1985, did designate certain projects
within the Downtown Redevelopment Area as Urban Renewal, Projects, and
WHEREAS, one of the projects designated by the Council was the
West Side Park Project, said project to consist of the acquisition of
land for and the furnishing and equipping of a neighborhood park
adjoining the Elrod School at an estimat'ed project cost of $200,000-00
with an additional $100,000.00 appropriated from the 1985-1986 budget
for the Community Development Department, and
WHEREAS, the Community Development Department has established a
procedure for the acquisition of property for the West Side Park
project utilizing professional appraisers to appraise the prope-,ty to
be acquired with the City Council establishing the fair market value
fo-- the property after review of the appraisals, and
WHEREAS, the Community Development Department and the Community
Development Committee deem it appzopriate that the Council. authorize
Ghe hiring of appraisers and authorize preliminary negotiations with
the property owners fox the purchase of property to be utilized in
the creation of the "West Side Park".
NOW THEREFORE BE IT RESOLVED by the City Council. of the City of
Kalispell, Montana, as follows:
1. The Community Development Department is hereby authorized
to obtain proposals from local appraisers to appraise the
six lots on the East side of -Block 71, Kalispell Original-
Townsite, for use as a park in connection with the West Side
Park Project and to obtain from the property owners the
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necessary consents to enter upon and appraise said property.
2. That the Community Development Committee of the City
Council is authorized to review the appraisals submitted by
the appraisers and to make recommefidations to the City Council
of the City of Kalispell based upon the -review of the
appraisals. I
3. That after the City Council of the City of Kalispell
establishes the fair market value of the property the Community
Development Committee by and through its agent, the Community
Development Department, is authorized to enter into nego-
tiations for the purchase of the property.
PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR THIS 2nd
DAY OF JUNE -1) 1986.
ohn "Ed" Kennedy'tr., Mayor
ATTEST:
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DonHalvei�;_City Clerk -Treasurer
1, the undersigned, City Clerk of the City of Kalispell, certify that the foregoing
is a -true copy of the Resolution passed by the City Council of the City of Kalispell,
Montana, at a regular meeting held
City Clerk of the City of Kalispell - , Montana
ACOUISITION PROCESS
1. Before the initiation of negotiations, the City shall
have the property appraised and assure that the owner
or representative is invited to accompany the appraiser.
2. The City in it's request for appraisers shall establish
criteria -for the appraiser based on nationally recognized
appraisal standards. The appraiser shall not consider
any decrease or increase in the market value due to the
City's proposed project.
3. Based -on the current accepted appraisal, the City shall
determine the amount it consi ' ders to be just compensation.
This amount shall not be less than the approved appraisal.
4. In determining just compensation, impro-vements on the
property shall be deemed to be part of the real property
to be acquired whether they belong to the real property
owner or a tenant.
Compensation is to be based on the greater of:
1) The amount which the improvements contribute
to the fair market value of the real property
OR
2) The fair market value of the improvements
if removed.
5. Promptly after the determination is made, the City shall
determine the amount it considers to be just compensation.
This amount shall not be less than the approved appraisal.
CONDEMNATION PROCEEDINGS: -
If the City is going to exercise its power of eminent domanin,
the City shall begin formal condemnation proceedings. The
City shall not make it necessary for the owners to begin legal
proceedings to prove the fact of the taking of the real property.
Nor shall the City advance the time of condemnation, defer negoti-
ations or condemnation, defer depositing funds in the court, or
take coercive actions -to compel an agreement on the purchase price.
The City shall reimburse the owner's reasonable.costs for attorney,
appraisall and engineering fees for condemnation proceedings if:
The court judgement decides the agency cannot acquire the
property by condemnation; or
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ACQJISITION PROCESS
The court makes a judg ement in favor of the owner as
plantiff in an inverse condemnation proceeding; or
The City effects a settlement of such proceedings.
RELOCATION PAYMENTS:
It is recommended that the City establish fixed payments for
a moving expense allowance and a.dislocation allowance based
on those outlined in HUD's Handbook 1376.1, Relocation and
Real Reoperty Acquisition as follows:
1. A moving expense allowance (fixed) of $300
This covers the cost of packing and actual moving
of belongings.
2. A dislocation allowance (fixed) of $200
This is to address hookup charges, deposits, etc.
that are normally incurred in a move.
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SA14PLES ATTACHED:
1. Initial letter to property owner requesti'ng permission to
appraise property.
2. Letter of Introduction for selected appraiser to present to
property owner.
3. Letter of Intent to Purchase.
4. Acquisition Packet: 1) Letter stating Fair Market Value
2) Offer to Sell
5. Sampe of Agreement With Selected Appraiser.
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I r C,
Proposed Procedure for Acquisition of Property for West Side Park
Project:
A) The City has by Resolution determined the need for development of
neighborhood park west of Elrod School, which encompasses the East 12
of Block _ , Kalispell Original.
B) Recommend follow procedure -utilized by City in Elms situation,
that is, obtain proposals for Appraisal from local appraisers as to
cost of appraising the property.
1) Have Council authorize Comm -unity Development Committee
to enter into contract with AppraiseT(s) chosen. (Standard
Appraiser Contract)
2) Obtain from landowners /tenants permission to enter onto
property for purposes of Appraisal.
3) Consider possibility of employing review Appraiser to
verify information, if we only use one Appraiser.
C) Community Development Committee review Appraisals after they axe
complete and bring recommendation to Council.
1) Council establishes fair market value for property.
2) Council authorize by Resolution the Community Development
Committee to enter into negotiations with property ownexs�
for purchase of property.
3) Property should not be purchased for less than fair
market value as determined by Council.
D) If negotiations are successful enter into contract with authorization
by Council Resolution to purchase property.
E) Council by a Resolution authorize acceptance of property by City.
F) If Negotiations are unsuccessful and owners want far in excess of
fair market value for property the City may face condemnation of
property which is authorized by Montana law. Recommend using eminent
domain only as a last resort.
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