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07. Resolution 4522 - Flathead Industries Deed RestrictionsREPORT TO: FROM: SUBJECT: City of Kalispell Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 - FAX (406) 758-7758 Mayor and City Council Glen Neier, City Attorney Chris Kukulski, City Manager Release of Deed Restrictions on Flathead Industries Property MEETING DATE: December 6, 1999 BACKGROUND: In 1981 the City of Kalispell sold three lots within the City to Flathead Industries for the purpose of building housing for physically and mentally handicapped individuals. The Deeds to the three parcels (Lot 8, Block 70; Lot 8, Block 62 and the East 80 feet of Lot 6, Block 40) contained restrictions limiting the use of the property to housing for the handicapped and prohibiting sale of the property without the approval of the City Council. At the October 19, 1998 Meeting, the Council approved a motion allowing removal of the restrictions. However, a closer reading of the Deeds indicated that a removing the impediments required a Resolution by the Council. Failure to pass a Resolution has not yet caused a problem for Flathead Industries but in order to clear the record so that Flathead Industries can transfer clear title in the future, this office prepared Resolution No. 4522 which authorizes the removal of the restrictions in the Deed. Removal of the restrictions will be accomplished by Quit Claim Deeds from the City to Flathead Industries. This office, at the direction of the Council, further prepared a Deed Restriction Agreement for execution by Flathead Industries and the City which will place the same restrictions on use and alienation on lots recently purchased by Flathead Industries for handicapped individuals. The restrictions will expire without further action by the City on January 1, 2031. RECOMMENDATION: Passage of Resolution 4522 is recommended. FISCAL EFFECTS: Unknown. ALTERNATJ,VES: As suggested by the City Council. Neier Attorr Report compiled December 2, 1999 C" . Chris A. Kukulski City Manager RESOLUTION NO. 4522 A RESOLUTION AUTHORIZING THE REMOVAL OF DEED RESTRICTIONS CONTAINED IN GRANT DEEDS EXECUTED ON BEHALF OF THE CITY OF KALISPELL TO FLATHEAD INDUSTRIES. WHEREAS, the City of Kalispell by Grant Deed transferred the following described property to Flathead Industries, a Montana non-profit corporation, on April 7, 1981: Lot 8 of Block 62 of Kalispell Original Townsite, Kalispell, Montana, (Book 712 Deeds, Page 606) and WHEREAS, the City of Kalispell by Grant Deed transferred the following described property to Flathead Industries, a Montana non-profit corporation, on September 3, 1981: East 80 feet of Lot 6 of Block 40, Kalispell Original Townsite, Kalispell, Montana, (Book 725 Deeds, Page 794) and WHEREAS, the City of Kalispell by Grant Deed transferred the following described property to Flathead Industries, a Montana non-profit corporation, on September 3, 1981: Lot 8 of Block 70, Kalispell Original Townsite, Kalispell, Montana, (Book 725 Deeds, Page 796) and WHEREAS, said Grant Deeds contained provisions containing the following language limiting use of the property and restraining alienation: Should said premises be used for other than a Center for the Handicapped, all right, title and estate in and to said premises shall revert to the said City of Kalispell and the grant made hereby shall be terminated. and Further, these premises may not be sold by the Grantee for any purpose without first such sale having been authorized by the appropriate Resolution passed by the City Council and approved by the Mayor of the City of Kalispell. WHEREAS, Flathead Industries has acquired Lot A of the Amended Subdivision Plat of Lots 8 and 9, Block 51, Kalispell; and Lot 10, Block 51, Kalispell for the purpose of constructing housing for handicapped individuals, and WHEREAS, in order to construct handicapped housing on the above referenced lots, Flathead Industries must sell the property deeded to Flathead Industries by the City in 1981, above described, and WHEREAS, to facilitate the sale of said property it is necessary to release those portions of the Grant Deeds that limit use and restrain alienation, and WHEREAS, Flathead Industries has agreed that the language limiting use and restraining alienation may be placed on Lot A and Lot 10, Block 51 with said conditions terminating on January 1, 2031. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION I. That the City Manager is hereby directed and authorized to execute on behalf of the City the legal documents necessary to release all conditions attached to Grant Deeds recorded at Book 712 Page 606; Book 725 Page 794 and Book 725 Page 796. SECTION II. That the City Manager is authorized to accept on behalf of the City a covenant executed by Flathead Industries restricting the use and restraining alienation of Lot A of the Amended Subdivision Plat of Lots 8 and 9, Block 51 and Lot 10, Block 51, Kalispell, Montana for a period terminating on January 1, 2031. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR THIS DAY OF DECEMBER, 1999. Wm. E. Bohars Mayor Attest: Theresa White City Clerk wp\fifthdeedres.wpd DEED RESTRICTION AGREEMENT THIS AGREEMENT, made and entered into this day of December, 1999, by and between FLATHEAD INDUSTRIES, a Montana non-profit corporation, and the CITY OF KALISPELL, a municipal corporation; W I T N E S S E T H That for and in consideration of the sum of One Dollar and other valuable consideration ($1.00 & OVC), the receipt and sufficiency thereof is hereby acknowledged, Flathead Industries does hereby grant unto the City of Kalispell the following Deed Restrictions: 1. That the within described real property shall only be used as a center for the Handicapped, to assist persons with physical, mental, and developmental and/or emotional impairments to become more functional members of the community, particularly by providing to such persons independent living facilities, but excluding facilities whose primary functions is to provide residential care to such persons on a 24-hour a day basis. Should said premises be used for other than a Center for the Handicapped, during the term of this Restriction, all right, title and estate in and to said premises shall revert to said City of Kalispell and the grant made hereby shall be terminated. 2. That the within described real property may not be sold by Flathead Industries for any purpose without first having been authorized by an appropriate Resolution passed by the City Council. The above Deed Restrictions shall be attached to the following described real property: Lot A of the Amended Subdivision Plat of Lots 8 and 9 of Block 51, and Lot 10 of Block 51, Kalispell Original Townsite, Kalispell, Montana, according to the map or plat thereof on file and of record in the Flathead County Clerk and Recorders Office. The above Deed Restrictions shall expire and be of no more force and effect from and after January 1, 2031. Dated this day of December, 1999. FLATHEAD INDUSTRIES By: _ Its: ATTEST: By: Its: ATTEST: By:_ Its: STATE OF MONTANA ) ss County of Flathead ) CITY OF KALISPELL By: Its: City Manager On this day of December, 1999, before me, personally appeared , to me personally known, who being duly sworn, did say that he, the said is the of FLATHEAD INDUSTRIES, the within named Corporation, and that the seal affixed to said instrument is the corporate seal of said Corporation, and that said instrument was signed and sealed on behalf of said Corporation by authority of its Board of Directors, and acknowledged said instrument to be the free act and deed of said Corporation. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. SEAL STATE OF MONTANA ) ss County of Flathead ) Notary Public, State of Montana Residing at Commission expires On this day of December, 1999, before me, a Notary Public in and for the State of Montana, personally appeared Chris Kukulski, City Manager for the City of Kalispell, Montana, a municipality, that executed the within instrument, and acknowledged that such City Manager subscribed, sealed and delivered said instrument as the free and voluntary act of said municipality, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said municipality. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. Notary Public, State of Montana SEAL Residing at Commission expires DEED RESTRICTION AGREEMENT THIS AGREEMENT, made and entered into this day of December, 1999, by and between FLATHEAD INDUSTRIES, a Montana non-profit corporation, and the CITY OF KALISPELL, a municipal corporation; W I T N E S S E T H: Whereas, the City of Kalispell in 1981 purchased and rehabilitated three residential properties, to -wit: East 80 feet of Lot 6 of Block 40, Kalispell Original Townsite, Kalispell, Montana; Lot 8 of Block 62, Kalispell Original Townsite, Kalispell, Montana; and Lot 8 of Block 70, Kalispell Original Townsite, Kalispell, Montana, at a total cost of $361,884.00, and Whereas, said properties after purchase and rehabilitation were gifted to Flathead Industries for housing for the handicapped subject to restrictions on use and alienation, and Whereas, Flathead Industries has requested that the City release said property from restrictions to facilitate the construction of new handicapped housing on Lot A of the Amended Subdivision Plat of Lots 8 and 9 of Block 51, and Lot 10 of Block 51, Kalispell Original Townsite, Kalispell, Montana, and Whereas, the City does not object to releasing said property so long as the original investment of the City is protected through the construction of handicapped housing. NOW THEREFORE; for and in consideration of the sum of One Dollar and other valuable consideration ($1.00 & OVC), the receipt and sufficiency thereof is hereby acknowledged, Flathead Industries does hereby grant unto the City of Kalispell the following Deed Restrictions: 1. That the within described real property shall only be used as a center for the Handicapped, to assist persons with physical, mental, and developmental and/or emotional impairments to become more functional members of the community, particularly by providing to such persons independent living facilities, but excluding facilities whose primary functions is to provide residential care to such persons on a 24-hour a day basis. Should said premises be proposed to be used for other than a Center for the Handicapped, during the term of this Restriction, prior to any change in use, Flathead Industries shall pay to the City of Kalispell the sum of Three Hundred and Sixty One Thousand Eight Hundred and Eight Four Dollars. 2. That the within described real property may not be sold by Flathead Industries for any purpose without first having been authorized by an appropriate Resolution passed by the City Council. The above Deed Restrictions shall be attached to the following described real property: Lot A of the Amended Subdivision Plat of Lots 8 and 9 of Block 51, and Lot 10 of Block 51, Kalispell Original Townsite, Kalispell, Montana, according to the map or plat thereof on file and of record in the Flathead County Clerk and Recorders Office. The above Deed Restrictions shall expire and be of no more force and effect from and after January 1, 2031. Dated this day of December, 1999. FLATHEAD INDUSTRIES By:_ Its: ATTEST: By:_ Its: By: Its: City Manager ATTEST: By:_ Its: STATE OF MONTANA ) ss County of Flathead ) On this day of December, 1999, before me, personally appeared , to me personally known, who being duly sworn, did say that he, the said is the of FLATHEAD INDUSTRIES, the within named Corporation, and that the seal affixed to said instrument is the corporate seal of said Corporation, and that said instrument was signed and sealed on behalf of said Corporation by authority of its Board of Directors, and acknowledged said instrument to be the free act and deed of said Corporation. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. Notary Public, State of Montana SEAL Residing at Commission expires STATE OF MONTANA ) ss County of Flathead ) On this day of December, 1999, before me, a Notary Public in and for the State of Montana, personally appeared Chris Kukulski, City Manager for the City of Kalispell, Montana, a municipality, that executed the within instrument, and acknowledged that such City Manager subscribed, sealed and delivered said instrument as the free and voluntary act of said municipality, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said municipality. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. Notary Public, State of Montana SEAL Residing at Commission expires