Loading...
08. Authority to Advertise for Sale - 705 7th Ave WestIncorporated 1892 Planning, Economic & Community Development Department P.O. Box 1997 Kalispell, MT 59903-1997 MEMORANDUM DATE: January 31, 1995 TO: Lawrence Gallagher, Director Planning, Economic and Community Development FROM: Susan Moyer, Housing Manager Planning, Economic and Community Development 248 Third Avenue East (406) 758-7740 (406) 758-7739 (office fax) (406) 758-7758 (City Hall fax) SUBJECT: Jensen House - To Be Discussed At Council Workshop 2/13/95 The City of Kalispell rehabilitated a structure during the winter of 1992 located at 705 Seventh Avenue West. The rehabilitation was funded through a second City -made mortgage in the amount of $17,000 and a deferred third in the amount of $13,394. The deferred mortgage was to be repaid if the structure was ever sold. In July of 1993, the owners filed a Chapter 13 bankruptcy in which they listed Barclay's American Mortgage and the City of Kalispell as "unimpaired secured claims." In June of 1994 the City became aware that the owners were almost four months delinquent on their first mortgage and that Barclay's were soon to start foreclosure proceedings. A "Motion for Relief" was filed in Bankruptcy Court in Butte, Montana in July of 1994. This motion would have allowed Barclay American Mortgage to foreclose on a homestead. To protect the City's investment of $30,394, staff sought City Council approval to pay off the first mortgage and procure ownership of the property for later resale. This approval was first given at Council Work Session on August 8, 1994 and then formally at the following Council Meeting on August 15, 1994. At the time of closing the City paid a total of $48,910.04 for the following: Current Total Unpaid Principal Balance Interest at 9.00000% Escrow/Impound Overdraft Unpaid Late Charges Fax Fee/Closing Agent (1st Mortgage) Attorney Fees Total Amount to Pay Loan in Full $45,862.92 1,891.84 445.44 94.84 5.00 600.00 Thus the total investment the City had in the property as of acquisition is $79,304.04. f< t01JAL 1.00SI:JI3 f)MIPTE IP11TV Upon entering the premise, the structure was found to be in shambles and had been stripped of all kitchen appliances and wood burning stove. The City has invested $4,181.34 in cleanup repairs and new appliances. The total investment is now at $83,485.34. We recommend the property be offered for sale in the amount of our total investment -- $83,485. To do so, we need a resolution passed at the next regular Council Meeting, February 21, 1995, authorizing us to advertise the property for bid. If the Council chooses to offer to sell the property at the Fair Market Appraisal Value, we can so word the advertisement and proceed with soliciting an appraiser. Staff has spoken with two different appraisers who would be in a position to do an appraisal the latter part of next week. One quoted $400 and the other quoted a price of $425. Please advise how we are to proceed.