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2. Resolution 5239 - Authorizing Examination of Land PurchaseCity of Kalispell Charles A. Harball office of City Attorney City Attorney 312 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 MEMORANDUM TO: Mayor Pamela B. Kennedy and Kalispell City Council FROM: Charles Harball, City Attorney James H. Patrick, City Manager Tel 406.758.7708 Fax 406.758.7771 charball@kalispell.com SUBJECT: Resolution No. 5239 Authorizing City Manager to Conduct Due Diligence for the Potential Purchase of Property at 2792 Highway 93 South, Kalispell, Montana MEETING DATE: Monday September 17, 2007 — Regular Meeting BACKGROUND: Approximately one half acre of real property at 2792 Highway 93 south, Kalispell, Montana is currently being offered for sale. This property fronts Highway 93 and is contiguous to a larger City owned property on the south end of the city airport. with the proper access to Highway 93 that the subject property would provide, the City may consider utilizing the property that it currently owns for a fire station and other airport improvements, such as an airport terminal building and accessory uses. Staff has discussed the possibility of the City purchasing this property with the seller. However it is necessary for the City to conduct certain due diligence, such as obtaining a market appraisal, prior to making any offer. Staff and the seller need to know if the City Council is inclined to pursue the acquisition of this property. RECOMMENDATION: That Council consider Resolution 5239 and authorize the City Manager to go forward with the due diligence examination of this property. FISCAL EFFECTS: other than the cost of the appraisal, none at this time. Respectfully m' , Charles Har 11, City Attorney James H. Patrick, City Manager RESOLUTION No, 5239 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO CONDUCT ALL DUE DILIGENCE REQUIRED FOR THE PURCHASE APPROXIMATELY .550 ACRES OF REAL PROPERTY LOCATED IN FLATHEAD COUNTY, MONTANA AND MORE PARTICULARLY DESCRIBED AS TRACT "A" OF COS# 17904 OF RECORD FLATHEAD COUNTY, MONTANA AND GENERALLY KNOWN AS 2792 HIGHWAY 93 SOUTH, KALISPELL, MONTANA. WHEREAS, approximately .550 acres of real property located in Flathead County, Montana and more particularly described as tract "A" of COS# 17904 of record, Flathead County, Montana and generally known as 2792 Highway 93 South, Kalispell, Montana is currently being offered for sale; and WHEREAS, the above described property fronts Highway 93 and is contiguous to a larger City owned property on the south end of the city airport; and WHEREAS, with the proper access to Highway 93 that the subject property may provide, the City may consider utilizing the property that it currently owns, described above, for a fire station and other airport improvements, such as an airport terminal building and accessory uses; and WHEREAS, the City Manager should obtain an appraisal for the market value of the subject property and thereafter, upon obtaining approval of City Council, enter into negotiations with the owner of said subject property, offering no more than the appraised value for such real property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. The City Manager is hereby authorized to obtain an appraisal for the market value of that real property described as Tract "A" of COS# 17904 of record Flathead County, Montana and generally known as 2792 Highway 93 South, Kalispell, Montana and to conduct such other due diligence as may be prudent prior to making an offer to purchase such real property. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 17TH DAY OF SEPTEMBER, 2007. Pamela B. Kennedy Mayor ATTEST: Theresa white City Clerk