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