09. Gateway Orchard Land PurchaseAgenda -December 9, 1996
AGENDA ITEM 9 - GATEWAY ORCHARD LAND PURCHASE
BACKGROUNDICONSIDERATION: I have enclosed a memo compiled by the
City Attorney for historical review of this property. Glen has
outlined the sequence of events very well. Based upon this
information, I have negotiated with Mr. Fraser a settlement that
is, in my opinion, fair and equitable to both parties.
Glen has attempted to make more recent contact with Strickland to
discuss other alternatives with no success.
RECOMMENDATION: To clear up a three year old City mistake without
further time involved or legal costs, I believe the compromise of
$21,000 is fair for both parties. I recommend the Council approval
of this pay to fulfill the 1993 agreement.
ACTION REQUIRED: Authorization for the City Manager and City
Attorney to complete this transaction for $21,000.
6 i
(11as
Incorporated 1892
Telephone (406) 758-7700
Douglas Rauthe
FAX (406) 758-7758
Mayor
Post Office Sox 1997
Kalispell, Montana
Clarence W. Krepps
Zip 59903-1997
City Manager
December 5, 1996
City Council
Members:
Gary W. Nystul
TO: Clarence Krepps, City Manager Ward I
FROM: Glen Neier, City Attorney Ward ollins
RE: Lot A, Porta Villa St!rKdivision Gateway Orchard Villa) Norbert F. Donahue
Ward II
You have requested that this office provide you and the City Council with background on the DaledHlaarr
ar
proposed settlement with Gateway Orchard Villa. A review of the file has provided this
office with the following: Jim dtI ilnson
During the 1970's the City approved a series of subdivisions known as Porta Villa I, II, III La ren Granmo
Wad III
and IV. The City required, as a condition of approval, that the developers reserve a lot, Lot
A, for a future extension of Yellowstone Street. In the mid-1980's taxes on Lot A became Pamela B. Kennedy
Ward IV
delinquent because the original developers did not want to pay taxes on property which they
could not develop. Eventually, the developers deeded Lot A to the City with a reversionary wa du V e Larson,
interest, should the property not be used for an extension of Yellowstone Street.
In 1993 Frank Strickland, et al, began developing the Gateway Orchard Villa Subdivision.
Gateway was located on a landlocked section of property, which required access either
through Lot A or an extension of Glenwood Street. After some discussion it was determined
that the Gateway would acquire a lot along Two Mile Drive and extend Glenwood between
Liberty Street and Two Mile Drive. The City, in error, agreed to transfer title to Lot A to
Strickland in exchange for acquisition of the Two Mile lot and extension of the Glenwood.
After it was discovered that the City could not supply Lot A, this office contacted the
surviving developers of Porta Villa and attempted to determine if they would be willing to
sell or give Lot A to the City. They expressed no interest in dealing with the City. (A copy
of their response is attached hereto).
The City, after negotiations with Strickland, agreed to have Lot A appraised and to pay to
Strickland the amount determined by the appraisal. (Although, I was unable to find any
minutes on the matter, I believe that the Council authorized an appraisal in early 1995).
Roger Jacobson, MAI appraised the property at $18,000 in July of 1995. Strickland did
not agree with the appraisal, and Bruce Williams offered $20,000 to settle the matter. The
offer was rejected. Since Williams left, I have had conversations with Mike Fraser,
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representing Strickland, and Fraser has offered to settle the matter for $25,000. Now I
understand, Clarence Krepps and Fraser have agreed that the City would pay $21,000 to
Strickland in full satisfaction of the agreement of 1993. By doing this, the City would retain,
at least temporarily, title to Lot A of Porta Villa, and simply reimburse Strickland for the
value of the lot used to extend Glenwood.
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.itv of Kalispell
box 1 • 97
Kalispell. Mt.. 5990-3 4-22-94
Ht•t•: Glen Nel er Cit.,; Ht.t.ornev:
Fe: Lot A Port.a Villa 42
year Si r :
I received vo ur let.terof 3-11 ?4. after much difficulty,
I have contacted the utter living owners. Two of them Jame-.
Scharen }: Dort.hea F. Bau ka past awav this Fast. year.
As you point out in your letter it is quite evident that.
this pr-i pert•'V is not needed for edt•erlt•ion of Yellowstone
Street to Meridian Road.
We all feel that. this Property should be returned us as
a`aeeyy.
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[:preen McKni�g�f,',�t.
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