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04. Resolution 4412 - Authority to Sell 3 Lots - Teton Terrace�►L v1A DATE: June 29, 1998 TO: Glen Neier, City Attorney Theresa White, Clerk of Council FROM: Susan Moyer, PECDD Housing Manager SUBJECT: Resolutions to Sell City Lots Glen, please prepare two resolutions for the July 6, 1998, council meeting to sell the following city -owned lots: Lots 4 and 5 in the plat of Woodland Court, a re -subdivision of Lots 27, 28 and 29, Block 1 of Green Acres, located in the SE 1/4 of the SE 1/4 of Section 17, Township 28 North, Range 31 West, Principal Meridian, Montana, Flathead County, Montana to Pacific Homes and Land lnc.for $8,000 cash per lot and a $14,000 zero interest deferred second mortgage per lot (ultimately to be assumed by the homebuyer and assigned to the Glacier Affordable Housing Foundation). Lots 24, 25 and 26 in Teton Terrace in the NE 1/4 of Sec. 12, T28N, R22W, PM, M, Flathead County, Montana to H & H Enterprises for $6,000 cash per lots 24 and 2jand $3,000 per lot for lot 26 and zero interest deferred second mortgages in the amount of $10,000 per lot (ultimately to be assumed by the home buyers and assigned to the Glacier Affordable Housing Foundation.) cc: Lawrence Gallagher, Director PECDD c:\homebuyer\council\July 8 permission to sell Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7700 - FAX (406) 758-7758 RESOLUTION NO. 4412 A RESOLUTION AUTHORIZING THE MAYOR, FINANCE DIRECTOR AND CLERK OF COUNCIL TO EXECUTE THE DOCUMENTS NECESSARY TO TRANSFER LOTS 24, 25 AND 26, TETON TERRACE, A SUBDIVISION OF PORTA VILLA #2, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NEl/,, OF SECTION 12, T28N, R22W, P.M.M, FLATHEAD COUNTY, MONTANA TO H & H ENTERPRISES. 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 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 detached residences on said property and other single family detached residences on remaining lots owned by the City within the Teton Terrace 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 WHEREAS, the City of Kalispell, a municipal corporation owns certain real property, to wit: LOTS 24, 25 AND 26, TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NEY44, OF SECTION 12, T28N, R22W, P.M.M, FLATHEAD COUNTY, 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 E:\wp\res\4412 teton terr.wpd 1 Kalispell, Glacier Affordable Housing and lending institutions responsible for providing construction financing, and 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 detached 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, H & H Enterprises submitted the most acceptable proposal to build single family detached 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. E:\wp\res\4412 teton terr.wpd 2 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA AS FOLLOWS: SECTION I. That the Mayor, 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 24, 25 AND 26 OF TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NEl/,, OF SECTION 12, T28N, R22W, P.M.M, FLATHEAD COUNTY, MONTANA to H & H Enterprises for Twelve Thousand Dollars ($12,000.00) cash for Lots 24 and 25, and Three Thousand Dollars ($3,000.00) cash for Lot 26, together with a Note in the amount of Ten Thousand Dollars ($10,000.00) for each Lot, 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 Teton Terrace 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. William E. Boharski - Mayor Attest: Theresa White Clerk of Council E:\wp\res\4412 teton terr.wpd 3