Resolution 5501 - Resolution of Intent - Convey Ownership of Courtyard Apts to CAP-01
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WHEREAS, in 1994 the City of Kalispell (the City) and Northwest Montana Human Resources,
Inc. now d/b/a Community Action Partnership (CAP); entered into a joint venture to
purchase, construct, maintain and manage an apartment complex of 32 units, known
as the Courtyard Apartments at 1842 Airport Road, Kalispell, Montana, as and for
subsidized and transitional housing to meet the needs of low income individuals and
families; and
WHEREAS, the City owns 16 units of the Courtyard Apartments and CAP, which owns 16 units,
pursuant to a Property Management Agreement with the City, manages and
maintains the asset; and
WHEREAS, the funding for the City to purchase the Courtyard Apartments was provided through
two housing grants; one in the amount of $247,500 from CDBG and the other in the
amount of $300,000 from the Montana Home Grant and the regulatory agreement
provides specific requirements regarding the management of the asset as low income
housing; and
WHEREAS, it is the desire of CAP to acquire the 16 City owned units, assume the City's
obligation on its remaining debt and to obtain the necessary financing to rehabilitate
the asset to extend its life and continue to manage its use as low income housing
within the state and federal regulatory authority; and
WHEREAS, CAP has all of the preliminary financing approvals for the transaction and now
requires the City's assent to complete the transaction; and
WHEREAS, the City has the statutory authority to divest this property pursuant to the terms of
MCA 7-8-4201; and
WHEREAS, the Kalispell City Council hereby finds that it is in the best interests of the City to
transfer its ownership rights and obligations in the Courtyard Apartments to CAP
which will continue to maintain and manage the asset as low income housing within
the state and federal regulatory authority, which is a benefit to the citizens and
taxpayers of the City.
1OW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS • •
SECTION I. That the City Council hereby states its intent to convey its interests
and obligations in the Courtyard Apartments at 1842 Airport Road,
Kalispell, Montana to Northwest Montana Human Resources, Inc.
d/b/a Community Action Partnership upon all regulatory and
financing permissions being received.
SECTION II. The City Manager is hereby given the authority to execute all documents
necessary to effect the conveyance of the Courtyard Apartments to CAP.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 20TH DAY OF JUNE, 2011.
Tammi Fisher
Mayor
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Theresa White
City Clerk