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04. Resolution 4437 - Bids - 12 & 13 Teton Terrace & Resolution 4438 - Bids - 14, 15, 16 Teton TerraceInter Office Memorandum DATE: December 1, 1998 TO: Glen Neier, Interim City Manager FROM: Susan Moyer, Program Manager SUBJECT: Re -Awarding of Bid — Teton Terrace & Council Approval to Bid Glen, please prepare a resolution awarding the sale of the following lots in Teton Terrace: Lots 14, 15 and 16 for a purchase price of $16,000 each which will be in the form of a zero interest deferred mortgage to Timberland Construction, Inc. and ultimately to the buyers. The reason for the total deferment is due to the $7,000 higher construction cost by having to award to the next lowest bidder. The buyers were previously advised and qualified by the lending institutions based on the original bid as well as Buy/Sell agreements have been signed. Lots 12 and 13 to Pacific Homes and Land, Inc. for a cash purchase price of $3,000 each and a zero interest deferred mortgage in the amount of $13,000. The buyers for these units are in the 50% of median income range. The legal description is: Teton Terrace, a cluster development, located in the Northeast 1/4 of Section 12, Township 28 North, Range 22 West, Principal Meridian, Montana, Flathead County, Montana. In addition to the above resolution, we need council approval to bid Lots 3 & 4 in Teton Terrace as well as Lots 19 & 22 South Woodland Court. I am preparing a bid packet now and will advertise the day after council approval. Cc: Theresa White, Clerk of Council C:\myfiles\homeowner\bids RESOLUTION NO. 4437 A RESOLUTION AUTHORIZING THE ACTING CITY MANAGER, FINANCE DIRECTOR AND CLERK OF COUNCIL TO EXECUTE THE DOCUMENTS NECESSARY TO TRANSFER LOTS 12 AND 13, TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NE1/,, OF SECTION 12, T28N, R22W, P.M.M, FLATHEAD COUNTY, MONTANA TO PACIFIC HOMES AND LAND, INC. 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 -five 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 12 AND 13, TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NE1/,, 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 F:\wp\res\teton terr4.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, Pacific Homes and Land, Inc. 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. F:\wp\res\teton terr4.wpd 2 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA AS FOLLOWS: SECTION I. That the Acting City 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 12 AND 13 OF TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NE1/,, OF SECTION 12, T28N, R22W, P.M.M, FLATHEAD COUNTY, MONTANA to Pacific Homes and Land, Inc. for Three Thousand Dollars ($3,000.00) cash for each Lot, together with a Note in the amount of Thirteen Thousand Dollars ($13,000.00) 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 SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF , 1998. William E. Boharski - Mayor Attest: Theresa White Clerk of Council F:\wp\res\teton terr4.wpd 3 RESOLUTION NO. 4438 A RESOLUTION AUTHORIZING THE ACTING CITY MANAGER, FINANCE DIRECTOR AND CLERK OF COUNCIL TO EXECUTE THE DOCUMENTS NECESSARY TO TRANSFER LOTS 14, 15, AND 16, TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NE1/,, OF SECTION 12, T28N, R22W, 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 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 five 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 14, 15 AND 1G, TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NE1/,, 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 F:\wp\res\teton terr3.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, Timberland Construction 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. F:\wp\res\teton terr3.wpd 2 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA AS FOLLOWS: SECTION I. That the Acting City 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 14, 15 AND 16 OF TETON TERRACE, RECORDS OF FLATHEAD COUNTY, LOCATED IN THE NE',,, OF SECTION 12, T28N, R22W, P.M.M, FLATHEAD COUNTY, MONTANA to Timberland Construction for Sixteen Thousand Dollars ($16,000.00) cash for each Lot, together with a Note in the amount of Sixteen Thousand Dollars ($16,000.00) 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 SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF 1998. William E. Boharski - Mayor Attest: Theresa White Clerk of Council F:\wp\res\teton terr3.wpd 3