HomeMy WebLinkAbout12 28 2004 Special CM215
COUNCIL MEETING MINUTES
December 28`", 2004
Minutes of a Special Meeting held at the Chubbuck City Council Chambers, December 281h,
2004.
Present: Mayor John O. Cotant, Council members Steven M. England, Marvin C. Gunter, Kent
Kearns, Attorney Thomas J. Holmes, Public Works Director Steven M. Smart and City
Clerk Ron C. Conlin. Councilman Leroy S. Quick was excused.
Meeting was called to order at 5:14 p.m. by Mayor Cotant.
PURPOSE OF SPECIAL MEETING is to discuss Avalon Park Subdivision - Park Lawn and
Mesquite street improvements.
AVALON PARK SUBDIVISION - PARK LAWN AND MESQUITE STREET
IMPROVEMENTS - PWD Smart presented the Avalon Park Subdivision plat. PWD Smart
stated Avalon Park Subdivision developers are asking the City to give them a grant of
$54,246.11. PWD Smart stated the developers were under the understanding they would
be getting this grant, but the City did not.
PWD Smart stated Bunce has agreed to pay $40,000, (25 %) of the required improvements
as described in Exhibit A. The Partnership has agreed to pay $120,000, (75 %) of the
required improvements as described on Exhibit A. Upon satisfactory completion of the
required improvements, the City has agreed to grant the Partnership $55,992.22 to pay a
portion of the cost of constructing Park Lawn Ave which will provide access to the
affordable multi - family apartments the Partnership is constructing. In addition, the City
has agreed to reimburse the Partnership $51,507.78 to pay the cost of constructing
Mesquite Road. Bunce, or any future landowner of the Bunce Property, agrees to
reimburse the City as stipulated in the agreement for that portion of the Required
Improvements to Mesquite Road the City has paid as described on Exhibit A, upon
obtaining a building permit for any structure on the Bunce Property.
Apportioned Total Cost of Required Improvements:
Park Lawn Avenue $108,492.22
Mequite Drive $ 51,507.78
Total $160,000.00
Proportionate Share of Improvement Cost:
Avalon Park Limited Partnership (75 %) $120,000.00
Bunce, Alder & Bunce (25 %) $ 40,000.00
Total $160,000.00
217
COUNCIL MEETING MINUTES - (cont.)
December 28 'h, 2005
AVALON PARK SUBDIVISION - (cont.)
Required Reimbursement to City of Chubbuck:
Bunce Lotl, Block 2
$
25,753.89
Bunce Lot 1, Block 1
$
25,753.89
Bunce Lot 3, Block 2
$
0.00
Bunce Lot 2, Block 1
$
0.00
Bunce Lot 3, Block 1
$
0.00
Total Reimbursements $ 51,507.78
Attorney Holmes stated if this agreement is approved, we should attach an extra page to
Exhibit A that recites the City's approach, so it is clear.
Fred Comforth, Community Development explained the proposal. Mr. Comforth stated
the development will pay the full property tax.
Councilman England asked if the City has any other developments like this in the City.
Councilman England asked if this is approved, are we opening up a situation where future
developments will expect the same thing, are we setting a precedence. Councilman
England expressed concern that if the other half of the property develops with the same
people and same development, will they expect the same type of grant. Mr. Comforth
stated if they knew ahead of time they would not come back and want a grant.
Councilman Kearns expressed concern about the request not going through a regular
meeting.
Councilman Kearns suggested this request spur the City into development of a policy
statement about when the City does participate in infrastructure construction.
Councilman Gunter expressed the following concerns:
1. Asking for the request and wanting an answer on such short notice.
2. Concern about setting a precedence.
3. Discussion about what affordable housing is.
219
COUNCIL MEETING MINUTES - (cont.)
December 28th,2004
AVALON PARK SUBDIVISION - (cont.)
Councilman England moved to approve the agreement as presented subject to; 1) Cap the
grant amount at $54,246.11. 2) Adding page two of Exhibit A, which will include
Community Development not seeking a property tax reduction and Community
Development not seeking forgiveness if they develop Lot 2, Block 2 or whatever the
southern property is, Councilman Kearns seconded. Roll Call Vote: Quick, absent,
England, yes; Gunter, yes; Kearns, yes.
At 5:55 p.m, Councilman England moved, Councilman Kearns seconded, with full council
approval to adjourn meeting.
John O. Cotant, Mayor
a 49-74
Ron C. Conlin, City Clerk
CALL OF SPECIAL MEETING
CITY OF CHUBBUCK
Pursuant to Idaho Code Section 50,604, the undersigned Mayor of the City of Chubbuck,
Idaho, hereby calls a special meeting of the City Council to be held in the Chubbuck City
Council Chambers, 5160 Yellowstone, Chubbuck, Idaho at the hour of 5:00 p.m. Tuesday, the
28th, 2004. The purpose of the special meeting is to discuss AvalOn Park Subdivision - Park
Law~~~_~/and Mesquite street 2~t>¢impr°vements' ~~6 ~~._~
'Date: 5ohn O. Cotant, Mayor
NOTICE OF SPECIAL MEETING
TO: MAYOR AND COUNCIL OF THE CITY OF CHUBBUCK, IDAHO
Pursuant to the call set forth above, notice is hereby given of a special meeting of the
Chubbuck City Council at the time and place, and for the object, recited in the call.
Ron C. Conlin, City Clerk
ACKNOWLEDGMENT OF NOTICE
The undersigned, Mayor and members of the Chubbuck City Council hereby
acknowledge receipt of notice of the special meeting as set forth above.
Leroy S. Quick, Council member
· Ken-'i"Keams, Council member
/Ste(~en M. England, Cou~cc~ m~mber
M~i~C. Gunter, Council member
FACILITIES AGREEMENT
This Agreement (the "Agreement") is made as of December 28, 2004 by and among the CITY OF
CHUBBtJCK, a body corporate and polifik of the State of Idaho, whose address is 5160 Yellowstone
Avenue, Chubbuck, Idaho 83202 ("City"), and Avalon Park LIMITED PARTNERSHIP, an Idaho limited
parmership, whose address is 4110 Eaton Avenue, Caldwell, Idaho 83607 ("Partnership"), and Bnnce,
Alder & Bnnce, Inc. whose address is 755 East Chubbuek Road, Pocatello, Idaho 83202 ("Bunce").
The City, the Partnership and Bunee may each also be referred to as a "Party" or together as the
"Parties."
A. The Partnership plans to purchase certain real property from Bunce, more particularly
described as lot 2, block 2 of Avalon Park Subdivision located in the City of Chubbuck, Bannock County,
Idaho (the "Partnership Property"). Bunce owns five additional Parcels (lot 1, block 2; lot 1, block 1; lot
3 block 2; lot 2, block 1, and lot 3, block 1, all also of Avalon Park Subdivision).
B. The Partnership and Bunce have worked together to obtain approval by the City of the
Apm-hnents (defined below) and the use of the Property and the Bunce Property and to record a final plat
(the "Final Plat") to complete a division of approximately 12 acres to create separate parcels that
constitute the Partnership Property and the Bunce Property.
C. Partnership intends to construct an apartment complex upon the Partnership Property
(the "Apartments").
D. In order to construct the Apartments and complete the Final Plat, certain permits and
approvals are required from various parties, including from the City.
E. One of the requirements was for the roadway and utility improvements of Park Lawn
Avenue and Mesquite Road, with a total cost of $160,000.00 as more particularly described on the
attached Exhibit A (the "Required Improvements").
E. Bunce has agreed to pay for y,40,000.00 (25%) of the Required Improvements as
described on Exhibit A. The Partnership has agreed to pay $120,000.00 (75%) of the Required
Improvements as described on Exhibit A. Upon the satisfactory completion of the Required
Improvements, the City has agreed to grant the Partnership $55,992.22 to pay a portion of the cost of
constructing Park Lawn Avenue, which will provide access to the affordable multi-family Apartments the
Partnership is constructing. In addition, the City has agreed to reimburse the Parmership $51,507.78 to
pay the cost of constructing Mesquite Road. Bunce, or any future landowner of the Bunce Property,
agrees to reimburse the City as stipulated in this Agreement for that portion of the Required
Improvements to Mesquite Road the City has paid as described on Exhibit A, upon obtaining a building
permit for any structure on the Bunce Property.
Avalon Park LTD BAB Inc. City of Chubbuck
NOW THEREFORE, the Parties mutually agree as follows:
1. REQUIRED IMPROVEMENTS. The Partnership shall cause the Required Improvements to be
made as described in Exhibit A. Bunce shall make a deposit in escrow of $40,000 for its portion of the
Required Improvements as described on Exhibit A with LandAmerica/Trans Nation Title on the date the
Partnership purchases the Partnership Property. After the improvements are accepted by the city and all
suppliers and contractors have been paid in full by The Partnership, The City shall reimburse the
Partnership $107,500 and The Partnership shall have the authority to require the withdrawal of the
$40,000 escrow to pay for the Required Improvements. Bunce, or any future landowner of the Bunce
Property, agrees to reiinburse the City as described on Exhibit A, upon obtaining a building permit for a
structure on the Bunce Property. Said reimbursement shall be $25.753.89 for the first building permit on
lot 1, block 1, $22,753.89 for the first building permit on lot 1, block 2. Said reimbursements totaling
$51,992.22 shall encompass the total encumbrances placed on the Bunce property by the City of
Chubbuck. Bunce consents to the recording of this Agreement in the real property records of Bannock
County as an encumbrance on and against the Bunce Property that runs with the land.
2. GRANT. of EASEMENT: Bunce hereby grants and conveys to the Partnership, and its successors,
contractors and assigns, subject to all the terrns, conditions and warranties contained herein, a temporary
easement through, on and over the Bunce Property, for the purpose of the consmaction, operation,
maintenance, repair, replacement and removal of the Required Improvements (the "Easement"). The
easement(s) herein granted are subject to all easements and encumbrances of record and are non-exclusive,
provided later granted easements shall be subject to the Partnership's fights and uses. This easement shall
cease to exist once the required improvements are complete and accepted by the city.
3. BINDING EFFECT: All provisions of this Agreement, including the benefits and burdens, mn with
the land and are binding upon and inure to the benefit, obligation and use of the successors and assigns of
the parties hereto.
4. GENERAL:
4.1 Covenants Run With the Land: This Agreement and the easement and restrictions
contained herein encumbering the Bunce Property shall be a burden on the Bunce Property, shall be
appurtenant to and for the benefit of the Partnership Property, and each part thereof and shall run with the
land.
4.2 Successors and Assigns: This Agreement and the restrictions created hereby shall inure
to the benefit of and be binding upon the Parties, their heirs, personal representatives, successors and
assigns, and upon any person acquiring the Bunce Property or the Partnership Property, or any portion
thereof, or any interest therein, whether by operation of law or otherwise.
4.3 Modification and Termination: This Agreement may not be modified or terminated, in
whole or in part, except with the consent of the Parties and then only by written instrument duly executed
and acknowledged and recorded in the office of the recorder of Bannock County,
Avalon Park LTD BAB Inc. City of Chubbuck
4.4 Breacl~' Shall Not Permit Termination: No breach of this Agreement shall entitle any
Party to terminate this Agreement, but such limitation shall not affect any other rights or remedies which
such Party may have for breach of this Agreement. Any breach of this Agreement shall not defeat or
render invalid the lien of any mortgage or deed of mast made in good faith for value, but this Agreement
shall be binding upon and be effective against any Party whose title is acquired by foreclosure, trustee's
sale or otherwise.
4.5 Severability: If any term or provision of this Agreement or the application of it to any
Party or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement or
the application of such teim or provision to Parties or circumstances, other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement
shall be valid and shall be enforced to the extent permitted by law.
4.6 Third Party Beneficiary Rights: This Agreement is not intended to create, nor shall it be
interpreted or construed to create, any third party beneficiary rights in any person.
4.7 Captions and Headings: The captions and headings in this Agreement are for reference
only and do not define or limit the scope or intent of any of the provisions contained herein.
4.8 Construction: In construing the provisions of this Agreement and whenever the context
so requires, the use of a gender shall include all other genders, and the use of the singular and plural shall
be interchangeable.
4.9 Joint and Several Obligations: If any Party is composed of more than one person or
entity, the obligations of the persons or entities comprising said Party shall be joint and several.
4.10 Recordation: This Agreement shall be recorded in the office of the recorder of Bannock
County, Idaho.
Avalon Park LTD BAB Inc. City of Chubbuck
IN WITNESS WHERI~OF, th~ parties have executed this agreement as the date described above.
PARTNERSHIP:
Avalon Park Limited Partnership,
an Idaho limited partnership
By:
Idaho Development And Housing Organization (IDAHO), Inc., an Idaho
non-profit corporation, general partner
By:
Its:
CITY:
CityofChubbuck
By:
Its:
BUNCE, ALDER & BUNCE, INC.
By:
Its:
STATE OF IDAHO )
) SS.
County of Canyon )
On this , day of , in the year 2004, before me, a Notary
Public m and for the State of Idaho, personally appeared , known or
identified to me to be Executive Director of Idaho Development And Housing Organization (IDAHO), Inc.,
an Idaho non-profit corporation, General Partner of Avalon Park Limited Partnership, an Idaho limited
partnership, who caused Idaho
Development And Housing Organization (IDAHO), Inc., to subscribe said parmership name to the
foregoing insmnnent, and acknowledged to me that Idaho Development And Housing Organization
(IDAHO), Inc., executed the same as the general partner of and in said limited partnership name.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first
above written.
NOTARY PUBLIC for Idaho
Residing at Boise, Idaho
My commission expires:
STATE OF IDAHO )
) SS.
County of )
On this day of ,2004, before me, the undersigned, a Notary Public
in and for said State, personally appeared and known
or identified to me to be the of the CITY OF CHUBBUCK, an Idaho municipal corporation, and
acknowledged to me that he executed the instrument on behalf of said municipal corporation, and that such
municipal corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year in this certificate fumt above written.
Notary Public for Idaho
Residing at
My commission expires:
STATE OF IDAHO
County of Ada
On this , day of , in the year 2004, before me, a Notary
Public in and for the State of Ida,ho, personally appeared , known or
identified to me to be the president, or'vice president, or secretary or assistant secretary, of Bunce, Alder &
Bunce, Inc., an Idaho corporation, the corporation that executed the instrument or the person who executed
the instrument on behalf of said corporation, and acknowledged to me that such corporation executed the
same.
IN WITNESS' WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year first above written.
NOTARY PUBLIC for Idaho
Residing at Boise, Idaho
My commission expires:
Exhibit A
Payment for Required Improvements
Apportioned Total Cost of Required Improvements:
Park Lawn Avenue
Mesquite Drive
Total Cost
$108,492.22
$51,507.78
$160,000.00
Proportionate Share of Improvement Cost:
Avalon Park Limited Partnership (75%)
Bunee, Alder & Bunce (25%)
$120,000.00
$40,000.00
Required Reimbursement to City of Chubbuck:
Bunee lot 1, block 2
Bunce lot 1, block 1
Bunce lot 3, block 2
Bunce lot 2, block 1
Bunee lot 3, block 1
Total Reimbursements
$25,753.89
25,753.89
0.00
0.00
0.00
$51,507.78
Avalon Park LTD
BAB Inc.
City ofChubbuck
AGREEMENT - 7