Loading...
10. Timmreck AcquisitionAgenda -April 14, 1997 AGENDA ITEM 10 - TIMMRECK ACQUISITION BACKGROUND/CONSIDERATION: I have enclosed a memo from Larry Gallagher outlining this issue. The funding for this acquisition will come from the airport TIF funds. If our discussion of the Daley Fields is positive and a "go" for the sale of the property, we could complete this purchase that has been pending for two years. The purchase of the property will allow us to further control the airport area property. RECOMMENDATION: I recommend that we complete this purchase: A. if we believe we are proceeding with the airport improvements; and B. if we believe that Daley Fields will be sold. If we are not certain that we can proceed with these issues, we should further delay the purchase of this property. ACTION REQUIRED: A MOTION to authorize staff to complete the purchase will be necessary for us to proceed. 1 1 e I� l� 011 Incorporated 1892 Planning, Economic & Community Development Department P.O. Box 1997 Kalispell, MT 59903-1997 248 Third Avenue East (406) 758-7740 (406) 758-7739 (office fax) (406) 758-7758 (City Hall fax) To: Clarence W. Krepps, City Manager From: Lawrence Gallagher, PECDD Director �. Subject: Early Acquisition of Lois Timmreck Real Est to - Identified in County Records as Tract 8, Section 18, T28N,R21 W, and also as Parcel "C"of Survey #1 1395; a 1.478 acre, rectangular, vacant parcel of land on the northwestern corner of Airport Road and 18th Street West, Kalispell, Montana (Plat map attached) Date: April 4, 1997 Lois Timmreck, owner of the real property described above, has offered to sell her property to the City of Kalispell for One Hundred Thousand Dollars ($100,000.00) on an installment sale contract. The offer and terms were offered through her attorney Arlene Anderson Knote in the attached letter dated March 17, 1997. 1 recommend that the City accept the offer to sell and suggest that the City Council consider approval of a resolution authorizing the purchase of the property. Please place this item on the City Council Meeting Agenda for consideration. The City has adopted Ordinance #1242 approving the Kalispell City Airport/Athletic Complex Redevelopment Plan. An objective of the Plan is to ensure that, to the extend feasible, the Kalispell City Airport will meet FAA guidelines for safety reasons. The Timmreck property is located in the designated "Runway Protection Zone" (RPZ) at the north end of the runway. The provisions of the RPZ are not only to preclude obstructions potentially hazardous to aircraft, but also to control building construction as a protection from nuisance and hazard to people on the ground. Guidelines were developed recommending that clear zones be kept free of structures and any development which would create a place of public assembly. Both the Neighborhood Plan and Urban Renewal Plan for the area contemplated purchasing the Timmreck property for the RPZ. The subject property was appraised by Roger D. Jacobson, MAI, and John D. Atkinson, Associate Appraiser. As of June 21, 1995, it is their opinion that the EW�I 110l6iIWi QPPCRTUNFY Clarence W. Krepps, City Manager Page 2 April 4, 1997 "fair market value" of fee simple property rights as defined in the appraisal is $100,000.00. A copy of the appraisal was delivered to Mrs. Timmreck and her attorney for their review and comment. Two months ago, I called the City's appraiser and asked his opinion as to changes in market value over the past year. He advised me that market conditions had not changed dramatically, however, a new appraisal of the property may "indicate a slight increase in the estimate of "fair market value." After conveying this information to Ms. Timmreck and her attorney, and discussing the delay of obtaining a new appraisal, it was suggested there were possible tax advantages of considering an immediate offer to sell at the 1995 appraised value on an installment sale. Please let me know if you would like additional information to aid you or the City Council in their consideration of this request. Atch 2 Y: 1. Plat Map - Parcel "C" of Survey #1 1395 2. Letter from Arlene Anderson Knote, March 17, 1997 0 i 0 20' VACATED BAKERS ALLEY SNOp ADDITION AVENUE SEWER LIFT SOtITHSIAE I _ STATION � O' S88.3338 E - _ " REBAR 8 28.19' (RJR / 13 % Z4 (RJ Q 66 C,qp ' 85.44' R i I ?i. 6r' (RJ t o N000032,Z"w O " R68AR �. $ OI 121 50 97' R) - -- ; RO n�I s I. 589"04150-W - 36.26' \l 39?'� I p a o n ^4 • • f` 12.67' (R) l RfBAR D.t. 518/7?9 ; a. A s r / 588°52.28"W 2159, SEMENT -N, ' PARCEL "B" . " REBAR 0. 7/7 Ac. i r Pw£ 00 TRACT ' 9W" m n I `a C.O.S. 9645 a -4 1 N mN I I PARCEL " C" ° 1.478 Ac. 288131 s $O` to po v (00 5• �0 BQNOARY �34.7' , On 288131 tam a 1 O*m C'S� 00 z a O 1 np A �� FORMER 80UNOaR�._ vQ gas �6as j 91 :0:0 rRACT "1" m . %J 47.58- 1 - 53F/948 Pg$ f rot 7?.JO' JS�•� r - 197.58' - 15073 0.062 Ac. C.O.S. PARCEL "A•. $ O - ON' STRFET ! OkMERR)-- N y 3536 . �� x 0 642 Ac. t� 60(N'� 1 303.12' (R) t 19 20 t - S88•t?'00"W - 33313' (R) _ NAS1S OF 9EARINGS PER 30.Or (R) PURDY'S ADDITIOMV t t FND. Z" ALUMINUM CAP — 'Or Or 2 PER CORNER RECORD ADDITION Arfene Anderson Knote Attorney At Law Post Once Box 2683 1795 Highway 2 West Phone: (406) 892-5331 Columbia Falls, MT 59912 Fax: (406) 892-5337 March 17, 1997 Lawrence Gallagher, Director Planning, Economic & Community Development Department P.O. Box 1997 Kalispell, MT 59903-1997 Re: Timmreck Property, Airport Road at 18th Street Dear Mr. Gallagher, Per our conversation of March 17, 1997, I am writing to relay terms to which Lois Timmreck has said she would agree for an installment sale of her property near the city airport to the city of Kalispell. Lois offers a $100,000 sale price with $25,000 down and $75,000 financed at 6.50% interest over five years with annual payments beginning January 1, 1998. We believe this to be a fair offer given Lois' willingness at this time to accept the 1995 appraisal value of $100,000 and the current Applicable Federal Rate at which Lois will be taxed, whether or not she receives it, namely 6.38%. We hope to hear from you soon regarding this offer. Sincerely, Arlene Anderson Knote Lois Timmreck 836 East Washington