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10. Resolution 4389 - Woodland Court LotsAgenda -January 5, 1998 AGENDA ITEM 10 - RESOLUTION 4389-AUTHORITY TO SELL LOTS -WOODLAND COURT -1ST TIME BUYERS PROJECT BACKGROUNDlCONSIDERATION: We will be accepting bids for the land purchase and construction of two homes on lots 6 and 21 in the Woodland Court project. To authorize these sales, we will need approval from the Council. The lots will sell for $8,000.00 cash with a zero interest deferred second mortgage of $16,000.00 respectively to the low bidder. As per the normal program criteria, the zero interest mortgage will be assumed by the buyer and assigned to the Glacier Affordable Housing Foundation for future recapture and assistance to other low income families upon resale, refinancing, or change of ownership. RECOMMENDATION: To continue this program's goals and objectives and to assist in the creation of affordable housing within Kalispell, I recommend approval of the sale of lots 6 and 21. ACTION REQUIRED: Approval of RESOLUTION 4389 is required to enable staff to continue with this portion of the program. RESOLUTION NO. 4389 A RESOLUTION AUTHORIZING THE MANAGER, FINANCE DIRECTOR AND CLERK OF COUNCIL TO EXECUTE THE DOCUMENTS NECESSARY TO TRANSFER LOTS 6 and 21, PLAT OF WOODLAND COURT, A RESUBDIVISION OF LOTS 27, 28, AND 29, BLOCK 1, OF GREENACRES, LOCATED IN THE SVI, OF SE1/, SECTION 17, T28N, R21W, P.M.M, FLATHEAD COUNTY, MONTANA TO TIMBERLAND CONSTRUCTION. WHEREAS, the City Council of the City of Kalispell recognizes a need for affordable housing within the City, and WHEREAS, the creation of affordable housing opportunities has been established as a goal by the City, and WHEREAS, the City of Kalispell, a municipal corporation owns certain real property, to wit: LOTS 6 AND 21, PLAT OF WOODLAND COURT, A RESUBDIVISION OF LOTS 27, 28, AND 29, BLOCK 1, OF GREENACRES, LOCATED IN THE SEY4 OF SEY4, SECTION 17, T28N, R21W, P.M.M., Flathead County, Montana, and WHEREAS, the City has obtained final plat approval on said property and created three single family residential lots on said property, and WHEREAS, the City has applied for and received a Community Block Grant in the amount of $400,000.00 and a Montana Home Investment Partnership Program in the amount of $400,000.00 and will use a portion of each grant to fund site development and construction assistance to build the three single family residences on said property and other single family residences on remaining lots owned by the City within the Woodland Court Subdivision, and WHEREAS, the City intends to utilize the lots created and improved to make property available to low income first time home buyers meeting certain eligibility requirements established by the Planning, Economic and Community Development Department of the City of Kalispell, Glacier Affordable Housing and lending institutions responsible for providing construction financing, and j:\wp\res\wood1d2 1 WHEREAS, the PECDD, Glacier Affordable Housing and local lending institutions adopted a procedure whereby reputable contractors within Flathead County submitted competitive proposals to build pre - designed single family residences on the within described real property for sale to pre -qualified individuals desiring to obtain affordable housing, and WHEREAS, based upon review of proposals submitted by said contractors Timberland Construction submitted the most acceptable proposal to build single family residences on the above described real property, and WHEREAS, the Montana Board of Housing has agreed to provide up to $2,400,000.00 for the purpose of providing permanent financing to qualified first time home buyers, and WHEREAS, the proposed project, because it is directed at low income first time home buyers, requires that individual lots be sold at less than the fair market value, and WHEREAS, the property is not held in trust by the City of Kalispell for a specific purpose and therefore does not require an election in order to authorize its sale, and WHEREAS, the property is not necessary for the conduct of City business nor for the preservation of property owned by the City and it is in the best interest of the City of Kalispell and its inhabitants to sell said property to pre -qualified low income first time home buyers as described herein. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA AS FOLLOWS: SECTION I. That the Manager, Finance Director and Clerk of Council are hereby authorized and directed to execute all necessary legal documents to transfer all right, title and interest that the City has in LOTS 6 AND, 21, PLAT OF j:\wp\res\wood1d2 2 WOODLAND COURT, A RESUBDIVISION OF LOTS 27, 28, AND 29, BLOCK 1, OF GREENACRES, LOCATED IN THE SEl/, OF SEI/,, SECTION 17, T28N, R21W, P.M.M., Flathead County, Montana, to Timberland Construction for Eight Thousand Dollars ($8,000.00) cash, together with a Note in the amount of Sixteen Thousand Dollars ($16,000.00) bearing no interest, secured by a Second Mortgage. SECTION II. Said Note, secured by a Second Mortgage shall be assumed by the purchaser of the respective lots and be assigned to Glacier Affordable Housing at the time of closing of the permanent loan. Said Note shall be due on sale or refinance of said property secured by the Second Mortgage. SECTION III. That the proceeds of the sale of the lots, authorized herein, shall be used to complete City obligations for the full development of Woodland Court Subdivision for the benefit of low to moderate income buyers within the City of Kalispell. PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL THIS DAY OF , 1998. Wm E. Boharski, Mayor Attest: Debbie Gifford, CMC/AAE Clerk of Council j:\wp\res\wood1d2 3