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1. Resolution 5512 - Sale of Park Property - Empire EstatesREPORT TO: Mayor Tammi Fisher and Kalispell City Council FROM: Michael Baker, Director, Parks & Recreation SUBJECT: Surplus Property Sale MEETING DATE: August 1, 2011 BACK GROUND: Resolution No. 5497 directed the city staff to advertise an invitation to bid for the sale of a small 3,892 square foot unimproved and unbuildable surplus city parcel located at 296 Empire Loop, Kalispell, MT. The advertisement was published twice in the Daily Inter Lake. One bid was received in the total amount of $3,000. This bid is from the two adjoining land owners who will share the cost to purchase and split costs for a boundary line adjustment. Based upon city solicited statements from three local RE Brokers to establish market value of property this bid appears to be a fair offer. RECOMMENDATION: It is staff's recommendation that Council accept this bid of $3,000 and proceed with the sale to bidders Richard Desch and Michael Masa. A resolution by the Council to sell the property and to authorize the City Manager to sign necessary documents for the real estate requires two thirds of the council members present to agree. FISCAL EFFECTS: The sale of the property will generate aone-time revenue of $3000 as well as a small annual city tax revenue. ALTERNATIVES: As suggested by the City Council Respectfully submitted, .)A Michael Ba r Director of Parks &Recreation Jane Howington City Manager 306 I"Avenue East, P.0. Box 1997, Kalispell, MT 59903 Phone (406) 758- 7718— Fax (406) 758- 7719 www.kalispell.com WHEREAS, the final plat of Phase 4 of Empire Estates, approved by the city council on September 6, 2005 included a 3,892 square foot parcel dedicated as city parkland described as a parcel of land in the Southwest Quarter of the Southwest Quarter of Section 1, Township 28 North, Range 22 west, P.M.M., Flathead County, Montana, further described as the PARK in Block 3 of Empire Estates Phase 4, according to the plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana; and WHEREAS,, the subject parcel is of insufficient size for the City Parks Department to efficiently develop and maintain as a park, is redundant to the larger, more useful park in Empire Estates Phase I and is constrained by size and use restriction to be developed in any other way; WHEREAS, on June 61, 2011 the City Council passed Resolution 5497 stating its intent to sell the subject parcel as surplus property, and directing that an invitation to bid for the purchase to be published; and WHEREAS, Richard Desch and Michael Masa made the only offer to purchase the subject property with a bid in the total sure of $3,000.00; and WHEREAS, the Kalispell. City Council hereby concludes that the subject property is surplus city park property, that the offer made to purchase for the sure of $3,000 is a fair market price for the property and that it is in the best interests of the City of Kalispell that the city sell the property at that price to the bidders and to use the proceeds from such sale to develop and maintain other parks within the City. NOW, THEREFOR,, BE IT RESOLVED BY THE CITE' COUNCIL OF THE CITY OF KALISPELL., AS FOLLOWS: SECTION I. The City Manager is hereby authorized to consummate the sale of the above - described real property on behalf of the City to Richard Desch and Michael Masa for the total sure of $3,000. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF TIME CITY OF KALISPEI..,,L, THIS l ST DAY OF AUGUST, 2011. Tarnmi Fisher Mayor ATTEST: Theresa white City Clerk July 212011 In regards to the property in the Southwest Quarter of the Southwest Quarter of Section 1,, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana, further described as the Park in Block 3 of Empire Estates Phase 4. Richard Desch of 3 Empire Loop, Kalispell (406)-471-3030,, and Michael Masa of 293 Empire Loop, Kalispell (406)-471-8321 submit a bid of 1500.00 dollars each for a total of 3000.00. If this bid is accepted we will split the cost to have the boundary line adjusted to both of our properties. Richard Desch. Michael Masa. ADVERTISEA RESOLUTION OF INTENT TO AND SELL , CERTAIN FLATHEADSURPLUS CITY PARK PROPERTY DESCRIBED AS PARK IN BLOCK 3 OF EMPIRE ESTATES PHASE 4, COUNTY, MONTANA. WHEREAS, the final plat of Phase 4 of Empire Estates, approved by the city council on September 6, 2005 included the above -described small 3),892 square foot parcel dedicated as city parkland as well as the receipt of $16,920 as a payment in lieu of parkland dedication, which sum was utilized for development of the 1.75 acre park in Empire Estates Phase i; and WHEREAS, City Parks and Recreation Department has found that the subject park parcel is of insufficient size to efficiently develop and maintain and is essentially redundant to the larger, more useful park in Empire Estates Phase 1 and therefore seeks the city council to make the finding that the subject parcel is surplus and may be offered to the public for sale; and WHEREAS, pursuant to the terms of MCA 7-8-4201 the City may sell surplus property; and WHEREAS, the Kalispell City Council hereby finds that the subject property is surplus city park property that may be offered for sale to the public and that it is in the best interests of the City to use the proceeds from such sale to develop and maintain other parks within the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KA.LISPELL AS FOLLOWS: SEC'T'ION I. That parcel of city owned property described as: a parcel of land in the Southwest Quarter of the Southwest Quarter of Section 1, Township 28 North, Range 22 west, P.M.M., Flathead County, Montana, further described as the PARK. in Block 3 of Empire Estates Phase 4, according to the plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County} Montana, shall be advertised for sale. The best bona fide offer made shall be returned to the City Council for consideration and vote according to the terms of MCA 7-8-4201. SECTION I1. This resolution will become effective immediately upon passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 6TH DAY OF TUNE, 20I.1. ATTEST: Theresa White City Clerk Tammi Fisher Mayor