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05. Resolution 4197 - Authorize Advertisement to Sell PropertyRESOLUTION NO. 4197 A RESOLUTION OF INTENTION TO SELL CERTAIN REAL PROPERTY OWNED BY THE CITY OF KALISPELL. WHEREAS, the City of Kalispell, a municipal corporation owns certain real property, to -wit: Lot 12, Block 188, Kalispell Townsite Company's Addition No. 1, Kalispell, Montana, and WHEREAS, Section 7-8-4201, MCA, authorizes the City Council to sell, dispose of or lease any property belonging to the City upon proper passage of an Ordinance or Resolution passed by two-thirds vote of all members of the City Council, and WHEREAS, the City acquired said property in a foreclosure action, and the City Council desires to sell said property for the purpose of returning said property into the housing stock of the City, 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION I. That it is the intention of the City Council of the City of Kalispell to sell certain real property located at Lot 12, Block 188, Kalispell Townsite Company's Addition No. 1, Kalispell, Montana, according to a map or plat thereof, on file and of record in the office of the Flathead County Clerk and Recorder. SECTION II. That the City Council hereby establishes a fair market value of said property to be the sum of Eighty Four Thousand Nine Hundred and Eighty-eight Dollars ($84,988.00). 1 SECTION III. That the City shall receive sealed bid proposals, addressed to the Clerk of Council, for the purchase of property from the City at an open administrative session on the 14th day of March , 1995. SECTION IV. That the terms of the sale shall be cash within ten (10) days after the notice from the City to the prospective purchaser that the bid for the sale of said property is acceptable to the City. SECTION V. That prospective purchasers of said property shall as a condition of bidding said property, submit to the City Clerk of Council with their proposal, cash, certified check or bank money order in an amount of not less than five (5) percent of the bid amount as earnest money. The earnest money, herein required, shall assure that the prospective purchaser, whose bid is accepted, shall enter into, execute and perform according to his bid. Should the prospective purchaser fail and refuse to purchase the property, he shall forfeit such earnest money to the City. The earnest money of the unsuccessful prospective purchasers shall be returned. SECTION VI. Should the successful prospective purchaser fail to purchase the property, the City reserves the right to consider and sell said property to the next highest prospective purchaser. SECTION VII. The City shall require the successful prospective purchaser to bid at least ninety (90) percent of fair market value, established herein. SECTION VIII. Should the City fail to receive any bids for the property, or should the bids received not be at least ninety (90) percent of the appraised value, the City Council reserves the right to sell the property at private sale at an amount agreeable between the City and a purchaser which shall be in the best interests of the City of Kalispell and its inhabitants. 2 SECTION IX. The Clerk of Council and City Attorney are hereby authorized to advertise the sale of the property through legal notice. Legal notices of the sale shall be published at least three times on successive weeks in the Daily Inter Lake. SECTION X. The City Council hereby reserves the right to reject any and all proposals, to determine whether any or all proposals submitted support the public interest, to waive any technicality or any informality and to accept only the bid or proposal which may be deemed in the best interest of the City of Kalispell. PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL, THIS 21st DAY OF FEBRUARY, 1995. Attest: Debbie Gifford, CMC Clerk of Council C Douglas D. Rauthe - Mayor NOTICE OF SALE OF CITY PROPERTY NOTICE is hereby given that the City of Kalispell will receive sealed bids for the purchase of certain real property owned by the City of Kalispell located at Lot 12, Block 188, Kalispell Townsite Company's Addition No. 1, Kalispell, Montana, according to the map or plat thereof, on file and of record in the office of the Flathead County Clerk and Recorder. Bids shall be received for the purchase of said property by the City Clerk of Council until 11:00 A.M. on the 14th day of March, 1995. All bids will be opened by the City Manager at an open administrative session commencing at 11:30 A.M. on the 14th day of March, 1995, in the Council Chamber, City Hall, Kalispell, Montana. The City Council has declared that the fair market value of said property is the sum of Eighty Four Thousand Nine Hundred and Eighty-eight Dollars ($84,988.00). The City shall require the successful prospective purchaser to bid at least ninety (90) percent of the fair market value. The terms of said sale shall be cash within ten (10) days after notice from the City to the prospective purchaser that the bid for the sale is acceptable to the City. Prospective purchasers of said property shall as a condition of bidding on said property, submit to the City with their proposal cash, certified check or bank money order in an amount of not less than five percent (5%) of the bid amount as earnest money. The earnest money, herein required, shall assure that the prospective purchaser, whose proposal is accepted, shall enter into, execute and perform according to his proposal. Should the prospective purchaser fail or refuse to purchase the property, he shall forfeit such earnest money to the City. The earnest money of unsuccessful prospective purchasers shall be returned. Should the successful prospective purchaser fail to purchase the property, the City reserves the right to consider and sell said property to the next highest prospective purchaser. Should the City fail to receive any bids for the property or should the bids received not be at least ninety percent (90%) of the appraised value, the City Council reserves the right to sell the property at private sale at an amount agreeable between the City and a purchaser which shall be in the best interests of the City of Kalispell and its inhabitants. The City Council hereby reserves the right to reject any and all bids, to determine whether any and all proposals submitted support the public interest and accept any bid which may be deemed best for the interests of the City of Kalispell. Any prospective purchaser wishing further information may obtain the same from Susan Moyer, Planning, Economic and Community Development Department, City Hall, P.O. Box 1997, Kalispell, Montana 59903-1997. Done by order of the City Council of the City of Kalispell, Montana, in regular meeting, held the 21st day of February, 1995. Clerk of Council Publish: February 22, 1995 March 1, 1995 March 8, 1995 0 (i� 0i ��Iivll Incorporated 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 Nall 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 $45,862.92 Interest at 9.00000% 1,891.84 Escrow/Impound Overdraft 445.44 Unpaid Late Charges 94.84 Fax Fee/Closing Agent (Ist Mortgage) 5.00 Attorney Fees M-00 Total Amount to Pay Loan in Full $48,910.04 Thus the total investment the City had in the property as of acquisition is $79,304.04. 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.