05. Resolution 5501 - Resolution of Intent to Convey Courtyard Apartments to Community Action PartnershipTel 406.758.7709
Fax 406.758.777
charball@kalispell.com
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TOO Mayor Ta mi' Fisher
and. Kalispell City Council
Charles Harball, City Attorney
Jane Howington, City Manager
Resolution No. 5501— a Resolution of Intent to Convey
Courtyard Apartments to Community .fiction Partnership
MEETINGDATE: June 20, 2011— Regular Council Meeting
In 1094 the City of Kalispell (the City) and Northwest Fontana
Human Resources, Inc. now dlb/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, Fontana, as
and for subsidized and transitional Dousing to meet the needs of low income individuals
and families. The City owns TO units of the Courtyard Apartments and. CAP owns 16
units. Pursuant to a Property Management agreement with the City, CAP manages and
maintains the asset. The funding sources for the City to purchase the Courtyard
Apartments were provided through two Dousing grants; one in the amount of $247,500
from CDBG and the other in the amount of $300,000 from the Fontana Horne Grant.
The regulatory agreement in place provides specific requirements regarding the
management of the asset as low income Dousing.
CAP now wishes to acquire the 10 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 lour income housing within the state and federal
regulatory authority. CAP has all of the preliminary financing approvals for the
transaction and now requires the City's assent to complete the transaction. The City has
the statutory authority to digest this property pursuant to the terms of MCA. 7-8-4201
MCA 7-8- 201 permits the City to convey this city owned property that will
continue to be managed and maintained as low income Dousing. The current resolution
makes the finding that this is in the best interest of the City. Upon receiving the final
regulatory and financing permissions, the conveyance will be closed at a local title
company with. the City Manager receiving the authority from Council to execute all of the
necessary documents.
Intent to Convey Courtyard Apartments Memorandum
June 16, 2011
Page - 2
RECOMMENDATION,: That City Council give consideration to and pass Resolution
No. 5501.
FISCAL IMPACTS: Conveyance of the property will eliminate the current negative
cash flow the City is experiencing with this asset.
Respectfully submitted,
... ........................ .......... .
Charl rba A City Attorney V a e Howington, City Ida alter
Office of City Attorney
City of Kalispell
RESOLUTIONOF r CONVEY THE OWNERSHIP INTERESTS OF
CITY OF r LOCATED AT 1842
AIRPORTA / KALISPELL, MONTANA TO NORTHWEST MONTANA
PLESOURCES, INC. DBA COMMUNITY ACTION PARTNERSHIP. W
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.
Now, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
• AS FOLLOWS:
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 11. 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.
ATTEST:
Theresa White
City Clerk
Tammi Fisher
Mayor
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