11. Motion to Approve Land Purchase for Upper Zone Construction of Water Tank-- - City of Kalispell Public Works Department
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post Office Box 1997 Kalis ell, Montana 59903-1.997 - Telephone 406 758-7720 Fax (406)75$-7831
REPORT TO: Mayor and City Council
FROM: James C. Hansz, P.E., Director of Public Works
SUBJECT: Land Purchase — Upper Zone Water Storage Tank Site
MEETING DATE: October 16, 2006
BACKGROUND: The current Water Fund budget includes funding for a new Lipper Zone
Water Storage tank. The project was included in the 05106 budget and is carried over to this year.
Council has been periodically apprised of progress on this project and previously endorsed
staffs recommendation to increase the size of the facility to a capacity of 2 million gallons.
Much of the effort to date has been to identify and obtain a suitable site for the new tank. This
was done and the past several months have been focused on. acquiring the property.
The site lies adjacent to West Valley Drive on the high point locally known as
Sheepherder's Hill. This site allows for matching the tank elevation to the existing system
requirements and offers the ability to construct an in -ground tank, which was a desirable goal of
the City and one shared by the property owners. Once construction is completed there will be
little evidence there is a major component of the City's water system located there. Attached are
copies of the general site plan and three-dimensional planning views of the site.
An independent appraisal of the site was conducted to establish the fair market value of
the property. The appraised fair market value is $90,000. The City's consultant and City
Attorney then worked together with the property owners to negotiate an agreeable purchase
price. The agreed price is $88,000. The City Attorney along with the owner's attorney have
drafted the attached buy -sell agreement reflecting the agreed purchase price for the property.
Staff recommends approval of the negotiated buy -sell agreement for this property.
RECOMMENDATION: Approve buy -sell agreement for property to locate a new Upper Zone
Water Storage Tank
ACTION REQUESTED: AT CITY COUNCIL MEETING OF OCTOBER 16, A MOTION
TO APPR0VE THE PURCIMSE OF PROPERTY FOR A NE W WATER STORAGE TANK,
October 161, 2006 Upper Zone Water Storage Tank Land Purchase.doc
FISCAL EFFECTS: Expenditure of funds totaling $88,000.00 from the water fund.
ALTERNATIVES: As suggested by the City Council
Respectfully submitted,
kam . Hansz, P.E. ames H. atrick
Direc or of Public rks 1 ity Engineer City Manager
Attachment: Buy -Sell Agreement, site plan and 3D tank views.
October 16, 2006 Upper Zane water Storage Tank Land Purchase.doc
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AGREEMENT TO SELL AND PURCHASE
DATED this I day of September 2006 at Kalispell, Montana.
City of Kalispell, a municipal corporation, of 312 1 st Avenue East, Kalispell, Montana
59901, hereinafter called "BUYER" agrees to purchase, and Stephen N. Becker and ,dean D.
Becker, trustees of the Becker Living Trust, the undersigned SELLER., agrees to sell the
following described real estate hereinafter referred to as "premises" i� the City of Kalispell,
Flathead County of Montana, legally described as:
PARC U A -I
SATED .IN THE NORTH 112 NORTHWEST 114 SOUTHWEST 114 OF SECTION 1 Q, �T 28N,,
lL22�+?, �[* .M,M, ,[-. ,.A.LFlEAD COUNT , d�'�LJ.NTANA.,AND RE iV�,J PAR'Off'T [C'7'.N 9ASIrJH1J R.[ ■
COS
C��.] 5025, AECORDU OF FZATHLAD COZ= AND BEING MO E PARTICULARLY
DESCRIBED AS FOLL 0 WS:
BEGINNING AT A 2 .114'' AL UM7AV I C 4P AL4RKED "THHURSTON 10503--S ", AT THE WEST
QUARTER CORNER OF SAID SECTION I0;
THENCE SCE UTH86042'31 "F,4ST, .LONG THE EAST' WEST AED SECTION LINE, 330. 03 FEET;
THENCE SO UTH 04 005 48 " WEST; PARALLEL WITH AND 3 3 0 00 FEET FROM TffE WE.ST.LINE
OF SAID SECTION 10, 250.02 FEET;
THENCE NORTH 86 °42'.31 WEST, PARALLEL W THAND 250. 00 FEET FROM THE EA S'T- WEST
.AID SECTION LINE TO THE WEST LINE OF SAID SECTION 10, 330.03 FEET,.
THENCE NORTH 04 "0548" EAST; ALONG SA ID- WEST SECTION LINE, 250. 02 FEET TO THF
POINT OF BEGINNING, CONTAINING 1. 894 ACRES OF LAND, MORE OR LASS, ALL AS
S OWN ON THE ATTACHED +DRA WLNG WHICH IS HEREWITH INC GRPORA TED IN AND
M D.E A PART OF THIS LEGAL DESCRJPTIGN AND IS SUBJECT TG ALL FASE .ENTS AyD
RIGHTS OF WA Y OF RECORD PER TLNMVT TO THIS TRACT.
PURCHASE PRICE
Total Purchase price is EIGHTY EIGHT THOUSAND AND NO/) OOTHS ($88,000,00)
DOLLARS U.S. payable at closing.
PURCHASE AND SALE AGREEMENT - 1
SPECIAL PROVISIONS
BUYER shall pay all closing costs of the purchase and sales transaction, as well as any
costs associated with subdividhag the subject parcel ftom the property remaining in the
ownership of the SELLER.
CONVE,YANCE
The SELLER shall convey the real property by warranty Deed, free of all liens and
encumbrances except those described above or those otherwise acceptable to the BUYER. as
described in the title insurance section of this agreement.
TITLE .INS UR.,�NCE
SELLER, at BUYER'S expense, shall furnish BUYER. with Title Insurance in the amount
equal to the purchase price, committing to insure merchantable title to the real property in the
BUYER'S name, free and clear of all liens and encumbrances except; zoning ordinances,
building and use restrictions. reservations in federal patents, beneficial utility easements apparent
or of record, easements of record, and any other encumbrances acceptable to BUYER.
If the SELLER'S title is not merchantable and cannot be made merchantable before the
stated closing date, 30 ADDIT OVAL DAYS SHALL BE ALLOWED FOR THE SELLER. TO
MAKE SUCH TITLE MERCHANTABLE. Encumbrances to be d i scb arged by the SELLER
shall be satisfied prior to closing or from SELLER'S proceeds at time of closing.
TAXES AND ASSESSA ENTS
SELLER and BUYER agree to prorate taxes and special improvement assessments for
the current tax year, if any, as of the date of closing, unless otherwise agreed.
CL OSTNG DATE
The date of closing shall be on or before September 1, 2006. The BUYER and SELLER
will deposit with the closing agent all instruments and monies necessary to complete the
purchase in accordance with, this agreement.
ADDITIONAL TEAS
B UYER `S REAfEDIES
If the Self' accepts the offer contained in this agmement but refuses or neglects to
consummate the transaction within the time period provided in this agreement, the BUYER. may:
PURCHASE AND SALE AGREEN ENT 2
(1) Demand that SELLER specifically perform SELLER'S
obligations under this agreement; or
(2) Demand monetary damages from SELLER for SELLER'S
failure to perform the terms of this agreement.
SELLER'S REMEDIES
i f the SELLER. accepts the offer contained in this agreement and BUYER refuses or neglects
to consummate the transaction within the time period provided in this agreement, the SELLER may:
(1) Demand that BUYER specifically perform BUYER'S duties and
obligations under this agreement; or
(2) Demand that BUYER pay monetary damages for BUYER' S
failure to perform the terms of this agreement.
B UYTR W CERT FIC4 TION
By entering into this agreement, each person or persons executing this agreement as
B UYER represents that he/she is eighteen (18) years of age or older, of sound mind, and legally
competent to own real property in the State of Montana; and if acting on behalf of a corporation,
partnership„ or other nonhuman entity that he/she is duly authorized to enter into the agreement
on behalf of such entity,
SELLER'S CERTIFICATION
By entering into this agreement, each person or persons executing this agreement as
SELLER represents that he/she is eighteen (18) years of age or older, of sound mind, and legally
competent to own real proper in the State of. Montana; and if acting on behalf of a corporation,
partnership, or other nonhuman entity that he/she is duly authorized to enter into this agreement
on behalf of such entity.
CONSENT TO DISCLOSEENFORAMY70N
BUYER and SELLER. hereby consent to the procurement and disclosure by BUYER,
SELLER, and sales representatives and their attorneys, agents; and other parties having interest
essential to this agreement, of any and all information reasonably necessary to consummate the
transaction described in this agreement, specifically including access to escrows for review of
contracts, deeds, trust indentures, or similar docurnents as prior transactions concerning thi
property of underlying obligation pertain' g thereto,
POSSESSION
SELLER shall deliver possession and occupancy to the BUYER on the closing date
unless otherwise agreed.
PURCHASE AND SALE AGREEMENT - 3
RISK OF L OSS
All loss or damage to any of the above -described real property or personal property by
any cause is assumed by SELLER through the time of closing unless otherwise specified,
TIME IS OF THE ESSENCE
Time is of the essence in this agreement and all clauses herein.
BINDING EFFECT AND NON --A SSIG)VAR,IL ITY
This agreement 1s binding upon the heirs, successors, and assigns of each of the parties
hereto, however, BUYER'S rights under this agreement are not assumable without the
SELLER'S express written consent.
ATTORNEY FEES
In any action brought by the BUYER or the SELLER to enforce any of the terms of this
agreement, the prevailing party in such action shall be entitled to such reasonable attorney fees
as the court or arbitrator shall determine Just,
BUYER'S AC )VORT EDGEMENT
BUYER acknowledges that he has examined the real and personal property, the BUYER
enters into this agreement in full reliance upon his independent investigation and judgment, that
prior verbal representations by the SELLER or SELLER'S agents or representatives do not
modify of affect. this agreement, and that by signing this agreement BUYER acknowledges
having read and understood this entire agreement, including the Additional Terms above.
BUYER'S COMMTMENr
JAVe agree to purchase the above -described property on the terms and conditions set
forth i n the above offer.
11WE HEPEBY ACKNOWLEDGE receipt of a copy of this AGREEMENT To SELL AND
PURCHASE bearing my/our signatures
BUYER:
ITY o SPELL
James H. Patrick, City Manager
]PURCHASE AND SALE AGREEMENT - 4
SELLER'S COMMITMENT
I/We agree to sell and convey to 13UYER the above -described property on the terms and
conditions hereina►bove stated. I/We acknowledge receipt of a copy of this agreement hearing
my/our signatures) and that of the BUYER named above.
Dated this day of 20 �
SELLER:
BECKER LIVING TRUST
PURCHASE AND SALE AGREEMENT - 5
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