HomeMy WebLinkAbout20- Exchange Agreement - NorthWestern Corporation dba NorthWestern Energy - Lot 2B, Minor Subdivision No. 154 EXCHANGE AGREEMENT
THIS FX HNNGE AGREEMENT ("Agreement") is made and entered into this I S day
o , 2020,by and between the City of Bozeman, a self-governing municipality
operating pursuant to its Charter and the laws of the State of Montana, of 121 N. Rouse
Avenue,Bozeman,Montana 59715 (the"City") and NorthWestern Corporation, a Delaware
Corporation, d/b/a NorthWestern Energy of 11 East Park, Butte, Montana 59701
("NorthWestern")provides as follows:
Recitals
1. The City is the owner of a certain parcel of real property, located in Gallatin County,
Montana,which is described as follows:
Tract 33 of Northeast Annexation Tracts 33, 34, and 35 to the City of
Bozeman, located in the Southwest Quarter, of Section 31, Township 1
South,Range 6 East, Gallatin County,Montana(the"City Property")
2. NorthWestern is the owner of two certain parcels of real property, located in Gallatin
County,Montana which are described as follows:
Lot 2B of the Amended Plat of Lot 2, Minor Subdivision No. 154, located
in the Southwest Quarter, of Section 31, Township 1 South, Range 6 East,
Gallatin County,Montana("Lot 2B"); and
A tract of land located within the SE1A of Section 31, TIS, R6E, PMM,
Gallatin County, Montana, and being a portion of Certificate of Survey
No. 157 and described as follows: Beginning at a point on the south
boundary line of Section 31, T IS, R6E from which the SW corner of said
Section 31 bears S88°10'08"W 1463.36 feet, said point being the SE
Corner of said Certificate of Survey No. 157 and the SE corner of the tract
herein described and being witnessed by a 5/8"x 24"rebar with cap which
bears N2°17'33"W 35.00 feet from said point; thence N2°17'33"W
1221.71 feet on the most easterly boundary of said Certificate of Survey
No. 157; thence S88°10'08"W 240.00 feet; thence S2°17'33"E 1221.71
feet to the south boundary line of said Section 31, being coincident with
south boundary line of said Certificate of Survey No. 157, said point being
witnessed by a 5/8"x 24"rebar with cap which bears N2°17'33"W 158.40
feet from said point; thence N88°10'08"E 240.00 feet on the south
boundary line of said Section 31 to the point of beginning, according to
Certificate of Survey No. 157A. ("COS 157A")
(Collectively the"NorthWestern Properties")
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3. NorthWestern intends to construct a city standard street from Manley Road,through a
city park (the "Manley Road Park"), and over the NorthWestern Properties, and
which street will provide access to the Manley Road Park, Glen Lake Rotary Park,
and NorthWestern's Real Property. NorthWestern is willing to construct such street
to the Glen Lake Rotary Park, (the "Park") and to exchange the costs of design,
engineering, and constructing the street and the portions of the NorthWestern
Properties over which the street will be located to the City in exchange for a certain
portion of the City Property.
4. The City determined on March 19, 2018 that a portion of the City Property, was no
longer necessary for the conduct of City business or the preservation of City property
and also that the public interest will be furthered by an exchange of the portion of the
City Property for the portion of the NorthWestern Properties on which the street is to
be constructed, allowing a second public access to the Park.
5. The City and NorthWestern (individually "Party" and collectively the "Parties")
desire to exchange such properties on the terms and subject to the conditions, as
established pursuant to this Agreement.
Agreement
Now therefore for good and valuable consideration,the Parties agree as follows:
1. Exchange Parcels.
a. City Exchange Parcel. The portion of the City Property, as is generally depicted
as Remainder Tract 2 on Exhibit"A" (the "City Exchange Parcel"), together with
all interest of the City in any adjacent, vacated streets and alleys; all easements
and other appurtenances thereto; and all improvements and all permanently
installed or attached fixtures. Further provided,the City's conveyance of the City
Exchange Parcel shall be:
i. Reserving an easement to the City for its existing sewer line and future
telecommunications facilities 30 feet in width and located at the southerly end
of the City Exchange Parcel, for the benefit of the City, its successors or
assigns. This existing sewer line shall remain the sole property of the City.
ii. Together with an easement for ingress and egress to and between the City
Exchange Parcel and NorthWestern's Service Center Property (Tract 37
Northeast Annexation) as generally depicted as Proposed New 50' Wide
Private Access Easement on Exhibit "A". The easement shall be for the
benefit of NorthWestern, its successors or assigns. The easement shall not be
for use by the general public or any other person or entity; however, the City
may continue to use the easement area for purposes related to its Storage Yard
Property, provided such use does not unreasonably interfere with
I
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NorthWestern's use of the easement. In the event NorthWestern transfers
ownership of the City Exchange Parcel without transferring its ownership of
its Service Center property to the same party this easement shall terminate. If
the easement does not terminate as described above, the uses authorized by
the easement shall be limited to those uses substantially similar to
NorthWestern's use or the easement shall terminate. Notwithstanding the
above, in the event the easement does transfer to NorthWestern's assigns or
successors, the easement shall not be for ingress and egress for the public and
may not be used for nonindustrial commercial or residential purposes.
b. NorthWestern Exchange Parcels. Lot 2B as is generally depicted on Exhibit"B",
page 1 and the portion of the COS 1 S7A, as in generally depicted as TR 4 on
Exhibit "B", page 2 (the "NorthWestern Exchange Parcels"), together with all
interest of NorthWestern in any adjacent, vacated streets and alleys; all easements
and other appurtenances thereto; and all improvements and all permanently
installed or attached fixtures. Further provided, NorthWestern's conveyance of
the NorthWestern Exchange Parcels shall be:
i. Reserving an easement to NorthWestern for its existing natural gas and
electric lines, for the benefit of NorthWestern, its successors or assigns.
These existing natural gas and electric lines shall remain the sole property of
Northwestern.
c. Generally. The City Exchange Parcel and the NorthWestern Exchange Parcels
(Collectively the "Parcels") shall be conveyed along with all interests of the
conveying party in any surface or ground waters,whether the same be statements
of claim, certificate of water right, permits to appropriate water, exempt existing
rights, interests in irrigation or ditch companies, ditch rights or easements or
otherwise,which are appurtenant to the respective Parcels.
2. Property Division.
a. City Exchange Parcel. The Parties understand that to create a legally conveyable
parcel that the City Exchange Parcel will need to be divided from the City
Property. The Parties understand that such a division is intended to be
accomplished by certificate of survey, creating the City Exchange Parcel, using
the exemption for "rights of way or utility sites" pursuant to Montana Code
Annotated §76-3-201(1)(1i). In order to record such a survey all real property
taxes and special assessments assessed and levied on the City Property, if any,
may need to be paid. NorthWestern will pursue the survey and necessary
governmental approvals, at its own cost and expense. The City agrees, subject to
Section 10, below, to cooperate with the survey and governmental approvals, to
permit NorthWestern, its surveyors, engineers and contractors access to both the
City Exchange Parcel and the City Property for all necessary survey and planning
work, to sign all applications, consents, surveys and other documents associated
with the same, and, if applicable, to pay before the recording of the survey all real
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property taxes and special assessments assessed and levied on the City Property as
required to record the survey dividing the City Exchange Parcel from the City
Property. At closing,the Parties agree that NorthWestern shall reimburse the City
for the portion of the real property taxes and special assessments paid by the City
in order to record the survey, which are attributable to the City Exchange Parcel
from the date of Closing. In determining the amount of real property taxes and
special assessments attributable to the City Exchange Parcel, all improvements
other than those located on the City Exchange Parcel shall be excluded and the
real property taxes and special assessments pertaining to the bare land shall be in
proportion which the area of the City Exchange Parcel bears to the area of the
City Property.
b. NorthWestern Exchange Parcels. The Parties also understand that to create a
legally conveyable parcel that one of the NorthWestern Exchange Parcels will
need to be divided from the second of the NorthWestern Properties identified in
Section 2 of the Recitals. It is understood that such a division is intended to be
accomplished by certificate of survey, creating the second of the NorthWestern
Exchange Parcels,using the exemption for"rights of way or utility sites"pursuant
to Montana Code Annotated §76-3-201(l)(h). In order to record such a survey all
real property taxes and special assessments assessed and levied on the
NorthWestern Properties, if any, may need to be paid. NorthWestern will pursue
the survey and necessary governmental approvals, at its own cost and expense.
NorthWestern agrees, if applicable, to pay before the recording of the survey all
real property taxes and special assessments assessed and levied on the
Northwestern Properties as required to record the survey dividing the
NorthWestern Exchange Parcels from the NorthWestern Properties. At closing,
the Parties agree that the City shall reimburse NorthWestern for the portion of the
real property taxes and special assessments paid by NorthWestern in order to
record the survey, which are attributable to the NorthWestern Exchange Parcels
from the date of Closing. In determining the amount of real property taxes and
special assessments attributable to the NorthWestern Exchange Parcels, all
improvements other than those located on the NorthWestern Exchange Parcels
shall be excluded and the real property taxes and special assessments pertaining to
the bare land shall be in proportion which the area of the NorthWestern Exchange
Parcels bears to the area of the NorthWestern Properties.
3. Street Construction. The Parties desire a city standard street be constructed
connecting Manley Road to the Park. The Parties acknowledge the street shall be
located over the Manley Road Park and over the NorthWestern Exchange Parcels.
Upon approval and recording of the survey anticipated by Section 2(b) creating the
NorthWestern Parcels, NorthWestern shall, at its own cost and expense, cause a city
standard street in a design approved by the City Engineer to be constructed
connecting Manley Road to the Park, in conformance with all applicable design,
engineering and construction standards as typically required by the City for its public
streets, including seeding of disturbed areas and control of noxious weeds.
NorthWestern, upon acceptance of the street by the City Engineer, shall assign to the
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City all the assignable warranties related to the construction of the street which it
obtains from the contractor(s) retained by NorthWestern to construct the street.
NorthWestern agrees to include in its contract for construction of the City Street a
requirement its contractors provide the City a 2-year maintenance bond listing the
City as an obligee.
4. Consideration. The Parties recognize the estimated costs of constructing the street
connecting Manley Road to the Park, combined with the costs of survey and
engineering to create the NorthWestern Exchange Parcels and the City Exchange
Parcels, and the appraised value of the NorthWestern Exchange Parcels as used for
road purposes is anticipated to be greater than the appraised value of the City
Exchange Parcel. The Parties nonetheless determine the exchange to be in their
respective interests. NorthWestern specifically recognizes the City will not provide
any additional remuneration to NorthWestern above the appraised value of the City
Exchange Parcel excepting closing costs as described herein. Similarly, the City
specifically recognizes NorthWestern will not provide any additional remuneration to
the City above the costs of constructing the street connecting Manley Road to the
Park, combined with the costs of survey and engineering to create the NorthWestern
Exchange Parcels and the City Exchange Parcels, and the appraised value of the
NorthWestern Exchange Parcels as used for road purposes, excepting closing costs as
described herein.
5. Contingencies. The Parties agree that this transaction is subject to the contingencies
as follows:
a. Title Review. The Parties' obligation to consummate the exchange is contingent
upon their respective review and approval of a preliminary title commitment
concerning the Parcels, which each would acquire under this Agreement (the
"Title Review"). If the Title Review discloses any condition(s) that is
unacceptable to either of the Parties, such Party shall give written notice of said
unacceptable condition(s) to the other Party on or before thirty (30) days from the
date the Party giving the notice received the preliminary title commitment. If a
Party fails to provide such notice and copy by such date, then this contingency
shall be deemed waived by that Party. Upon receipt of written notice of
unacceptable condition(s) the receiving Party shall have thirty (30) days to advise
the Party giving the notice in writing whether it will agree to remedy the
unacceptable condition(s). If the receiving Party elects to remedy the
unacceptable condition(s) the transaction shall proceed to closing, however it
shall have an additional thirty (30) days from the specified closing date to affect
the remedy, if necessary. If the receiving Party elects not to remedy the
unacceptable condition(s) noted the obligation of the Party giving the notice to
consummate the exchange shall be terminated.
b. Appraisals. Pursuant to Bozeman Municipal Code Section 2.06.870, both the City
Exchange Parcel and the NorthWestern Exchange Parcels must be appraised. The
City will commission a disinterested certified general real estate appraiser to
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provide an appraisal of the City Exchange Parcel. Similarly NorthWestern will
commission a disinterested certified general real estate appraiser to provide an
appraisal of the NorthWestern Exchange Parcels, which appraisal shall account
for the value of the street, and related improvements, to be constructed by
NorthWestern and which must also recognize the NorthWestern Exchange Parcels
are to be used for road purposes only and not for future development. Upon
receipt of such appraisals,the Party receiving the appraisal shall promptly provide
a copy to the other Party. If the appraisals result in the exchange anticipated by
this Agreement to not qualify under Bozeman Municipal Code Section 2.06.870,
than the Parties' respective obligations to exchange shall be terminated and this
Agreement will have no further force or effect.
c. Subdivision. The Parties' respective obligations to exchange under this
Agreement are contingent upon their agreeing as to the final configuration of the
City Exchange Parcel and NorthWestern Exchange Parcels, including easements
(if any) and the filing of the requisite surveys. If the surveys creating the City
Exchange Parcel and NorthWestern Exchange Parcels are not able to be filed of
record on or before sixty (60) days from the date of this Agreement, the Parties'
obligations to exchange shall be terminated and this Agreement will have no
further force or effect.
d. Floodplain Permit. NorthWestern's obligation to consummate the exchange is
contingent upon receipt of a floodplain permit for or assurances, adequate in
NorthWestern's sole opinion, that NorthWestern's anticipated use of the City
Exchange Parcel will be permitted (the "Floodplain Permit or Assurance"). If
NorthWestern does not receive the Floodplain Permit or Assurance,
NorthWestern shall give written notice of the same to the City, on or before the
date of Closing,and NorthWestern's obligation to consummate the exchange shall
be terminated. NorthWestern shall be responsible for all costs associated with
pursuing the Floodplain Permit or Assurance.
e. Zoning Change. NorthWestern's obligation to consummate the exchange is
contingent upon its review and approval of a change in the zoning district for the
City Exchange Parcel from PLI to M-1 (the "Zoning Change"). If NorthWestern
does not receive the Zoning Change NorthWestern shall give written notice of the
same to the City, on or before the date of Closing, and NorthWestern's obligation
to consummate the exchange shall be terminated. NorthWestern shall be
responsible for all costs associated with pursuing the Zoning Change.
f. General Due Diligence. The Parties' obligation to consummate the exchange is
contingent upon their respective review and approval of such other professional,
independent due diligence investigations concerning the Parcels, which each
would acquire under this Agreement, which such Party desires to have
investigated (the "Due Diligence"). If the Due Diligence discloses any
condition(s) that are unacceptable to either of the Parties, such Party shall give
written notice of said unacceptable condition(s) to the other Party, on or before
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sixty (60) days from the date of this Agreement. If a Party fails to provide such
notice and copy by such date, then this contingency shall be deemed waived by
that Party. Upon receipt of written notice of unacceptable condition(s) the
receiving Party shall have sixty (60) days to advise the Party giving the notice in
writing whether it will agree to remedy the unacceptable condition(s). If the
receiving Party elects to remedy the unacceptable condition(s) the transaction
shall proceed to closing, however it shall have an additional sixty (60) days from
the specified closing date to affect the remedy, if necessary. If the receiving Party
elects not to remedy the unacceptable condition(s) noted the obligation of the
Party giving the notice to consummate the exchange shall be terminated. The
Parties shall be responsible for all costs associated with their respective Due
Diligence. Each Party shall, upon reasonable prior notice, permit reasonable
access to its Parcel for the other Party and those involved in its Due Diligence.
Provided,that Due Diligence shall cause no material damage to the Parcels, and if
it should the Party or its representative causing such damage shall indemnify and
hold the Party owning the damaged Parcel completely harmless from such
damage.
6. Closing Date. The closing date shall be on or before forty-five (45) days from the
date the street construction anticipated by Section 3 is substantially complete as
determined by the City Engineer, unless the Parties otherwise agree in writing. The
closing shall take place at Security Title Company 600 South 19" Avenue, Bozeman,
Montana 59715 (the Closing Agent). The Parties shall deposit with the Closing Agent all
monies and executed documents as necessary to complete the transaction as anticipated
by this Agreement.
7. Closingz Costs.
a. NorthWestern's Closing Costs.
i. Acquisition of City Exchange Parcel. NorthWestern shall pay for one-half of
the charges of the Closing Agent related to its acquisition of the City
Exchange Parcel; for the recording charges for all deeds, water right transfers,
or other documents, associated with its acquisition of the City Exchange
Parcel, other than those to be paid by the City per this subsection (a); and any
commissions or fees charged by any real estate broker or salesperson,
attorney, accountant, appraiser or any other professional retained by
NorthWestern in conjunction with the transaction anticipated herein.
ii. Disposition of the NorthWestern Exchange Parcels. NorthWestern agrees to
pay for one-half of the charges of the Closing Agent related to the disposition
of the NorthWestern Exchange Parcels; all title insurance premiums and
charges, including the cost of an ALTA Survey if required to issue the title
policy for the NorthWestern Exchange Parcels; and the recording charges
associated with the release of any encumbrances or liens on the NorthWestern
Exchange Parcels to be satisfied by the City per the terms of this Agreement.
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b. The City's Closing Costs.
i. Acquisition of the NorthWestern Exchange Parcel. The City shall pay for
one-half of the charges of the Closing Agent related to its acquisition of the
NorthWestern Exchange Parcels;for the recording charges for all deeds,water
right transfers, or other documents, associated with its acquisition of the
NorthWestern Exchange Parcels, other than those to be paid by NorthWestern
per this subsection (b); and any commissions or fees charged by any real
estate broker or salesperson, attorney, accountant, appraiser or any other
professional retained by the City in conjunction with the transaction
anticipated herein.
ii. Disposition of the City Exchange Parcel, The City agrees to pay for one-half
of the charges of the Closing Agent related to the disposition of the City
Exchange Parcel; all title insurance premiums and charges, including the cost
of an ALTA Survey if required to issue the title policy for the City Exchange
Parcel; and the recording charges associated with the release of any
encumbrances or liens on the City Exchange Parcel to be satisfied by the City
per the terms of this Agreement.
8. Taxes, Assessments (SID/RSID) and Rents. The City and NorthWestern agree to
prorate taxes, special improvement assessments for the current tax year, as well as
pre-paid rents, permit fees, water and sewer charges, irrigation assessments,
maintenance fees, and any other prepaid charges concerning the Parcels, as are
applicable, as of the date of closing. If the current year taxes are not known,
NorthWestern and The City agree that the previous year's tax assessment or an
estimated amount can be used to base the pro-ration.
9. Conveyance.
a. City Exchange Parcel. The City agrees, upon Closing, to execute and deliver to
NorthWestern a Warranty Deed ("Deed") to the City Exchange Parcel,
substantially in the form attached hereto as Exhibit "C". The City shall convey
any interests in leases, permits, allotments, water rights or other property by
appropriate transfer documents for the interest at issue.
b. NorthWestern Exchange Parcels. NorthWestern agrees, upon Closing, to execute
and deliver to the City a Warranty Deed ("Deed") to the NorthWestern Exchange
Parcels, substantially in the form attached hereto as Exhibit "D". NorthWestern
shall convey any interests in leases, permits, allotments, water rights or other
property by appropriate transfer documents for the interest at issue.
i
10. Title Insurance.
a. City Exchange Parcel. The City shall purchase for the benefit of NorthWestern an
} American Land Title Association (ALTA) Coverage Owners Title Insurance
E Page 8 of 21
Policy (as evidenced by a standard form ALTA title insurance commitment) in an
amount equal to the Appraised Value of the City Exchange Parcel. NorthWestern
may, as its option and expense, purchase additional coverages and/or a mineral
guarantee. Upon entry into this Agreement by both Parties, the City will order a
preliminary commitment for title insurance concerning the City Exchange Parcel
and will provide same to NorthWestern, promptly after such commitment is
issued.
b. NorthWestern Exchange Parcels. NorthWestern shall purchase for the benefit of
the City an American Land Title Association (ALTA) Coverage Owners Title
Insurance Policy (as evidenced by a standard form ALTA title insurance
commitment) in an amount equal to the Appraised Value of the NorthWestern
Exchange Parcels. The City may, as its option and expense, purchase additional
coverages and/or a mineral guarantee. Upon entry into this Agreement by both
Parties, NorthWestern will order a preliminary commitment for title insurance
concerning the NorthWestern Exchange Parcels and will provide the same to the
City,promptly after such commitment is issued.
11. Possession and Risk of Loss. The Parties shall deliver possession and occupancy of
their respective Parcels to the each other upon the closing date, after all monies are
received and documents delivered. All loss or damage to any of the Parcels, by any
cause, is assumed by the Party presently owning such Parcel through the time of
closing unless otherwise specified.
12.0ty Not Bound In Its Regulatory Authorily.NorthWestern recognizes the City enters
this Agreement as a landowner to this Agreement and not in its regulatory role. As
such, NorthWestern agrees that nothing herein binds the City to make certain
approvals in its regulatory authority in review of\subdivision exemptions, floodplain
permits,zoning changes,or site plan applications.
13. Disclosures.
a. General Disclosure. Except as provided herein, each Party acknowledges that it
has examined the Parcel it is to acquire in the exchange anticipated by this
Agreement and acknowledges that it enters into this Agreement reliance upon
such examination, upon inspections conducted by the inspectors of its choice and
that it is acquiring such Parcel, "AS IS" without any warranty or representation as
to its condition, unless expressly stated or referenced in this Agreement.
Specifically,NorthWestern acknowledges it has conducted an environmental field
investigation (Phase 1I), which consisted of the installation of soil borings and
monitoring wells to test the soil and groundwater for contamination, of the City
Exchange Property and agrees it will acquire the City Exchange parcel with full
knowledge of the contents of the environmental field investigation(Phase 1.1).
b. Encroachments on City Exchange Parcel. NorthWestern acknowledges certain
encroachments exist on the City Exchange Parcel including several trailer homes
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located in the southern portion of the City Exchange Parcel (the
"Encroachments").NorthWestern agrees to take possession of the City Exchange
Parcel subject to the Encroachments.
c. Environmental Disclosure of City Exchange Parcel. NorthWestern acknowledges
the City Parcel may contain Hazardous Substances. NorthWestern enters into this
agreement having conducted and reviewed the environmental condition of the
City Exchange Property and agrees THE CITY DOES NOT WARRANT,
EITHER EXPRESSLY OR IMPLIEDLY, THE CONDITION OR FITNESS OF
THE CITY PARCEL, ANY SUCH WARRANTY BEING HEREBY
EXPRESSLY NEGATED. NorthWestern, by acceptance hereof, acknowledges
that it has made a complete inspection of the City Exchange Parcel and is in all
respects satisfied as to the condition of the City Exchange Parcel regarding
Hazardous Substances and accepts the City Exchange Property in respect to
Hazardous Substances "AS IS." The term "Hazardous Substances" as used in this
Agreement means (1) any petroleum or petroleum products, radioactive materials,
asbestos in any form that is or could become friable, urea formaldehyde foam
insulation, polychlorinated biphenyls and radon gas and (2) any chemicals,
materials or substances defined as or included in the definitions of "hazardous
substances," "hazardous wastes," "restricted hazardous wastes," "toxic
substances,""toxic pollutants," "bio-hazard,""biological waste,""medical waste"
or words of similar import, under any applicable federal, state or local
environmental, safety or health laws, ordinances, rules of common law,
regulations or directives("collectively"Environmental Laws").
d. Hazardous Substances found during Road Construction. NorthWestern agrees
that should any Hazardous Substances be found on the NorthWestern Exchange
Parcels during construction of the street as provided for in Section 3, above,
NorthWestern shall remediate such Hazardous Substances during construction of
the city street in conformance with all applicable Environmental Laws and be
solely responsible for liabilities and costs of such remediation. Similarly,the City
agrees that should any Hazardous Substances be found on Manley Road Park
during construction of the street as provided for in Section 3, above, the City shall
remediate such Hazardous Substances during construction of the city street in
conformance with all applicable Environmental Laws and be solely responsible
for liabilities and costs of such remediation.
e. Megan's Law. In accordance with Title 46, Chapter 23, Part 5 of the Montana
Code Annotated certain individuals are required to register their address with
local law enforcement agencies as part of Montana's Sexual and Violent Offender
Registration Act. You may obtain information on these registrations by
contacting the local county sheriffs office, the Montana Department of Justice in
Helena, Montana and probation officers assigned to your area. The real estate
broker or salesperson, identified above does not have actual knowledge of sexual
or violent offender registration information that pertains to the property that is the
subject of this Agreement.
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f. Noxious Weeds. Each Party hereby notifies the other Party that noxious weeds
exist or may exist on the Parcels that are the subject of this Agreement. Each
Party hereby notifies the other Party that it is unlawful for any person to permit
any noxious weed to propagate or go to seed on the person's land, except that any
person who adheres to the noxious weed management program of the person's
weed management district or who has entered into and is in compliance with a
noxious weed management agreement is considered in compliance with the law.
g. Water Right Ownership Update Disclosure. By Montana law, failure of the
Parties at closing or transfer of real property to pay the required fee to the
Montana Department of Natural Resources and Conservation for updating water
right ownership may result in the transferee of property being subject to a penalty.
Additionally, in the case of water rights being exempted, severed, or divided, the
failure of the Parties to comply with section 85-2-424, MCA, could result in a
penalty against the transferee and rejection of the deed for recording.
14.Entire Agreement and Modifications. This Agreement supersedes all prior
agreements, contracts and understandings between the Parties. It may not be
modified or terminated orally.No modification, termination or attempted waiver shall
be valid unless in writing signed by the party against whom the same is sought to be
enforced.
15. Time. Time is of the essence in this Agreement and all clauses herein.
16,Discrimination. The Parties agree not to discriminate in the fulfillment of this
Agreement on the basis of race, color, religion, creed, sex, age, marital status,
national origin or actual or perceived sexual orientation, gender identify or disability.
17. Assignment. The Parties acknowledge the unique nature of this Agreement; as such,
a Party may not assign this Agreement without the express written authorization from
the other Party.
18.Remedies.
(a) If NorthWestern fails to close under the provisions of this Agreement because
of NorthWestern's default, then the City shall have as the City's sole remedy
the option of either of the following:
(i) Terminating this Agreement by giving written notice to NorthWestcrn;
or
(ii) Enforcing specific performance by NorthWestern of NorthWestern's
obligations under this Agreement.
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(b) If the City fails to close under the provisions of this Agreement because of the
City's default, NorthWestern shall have as NorthWestern's sole remedy the
option of either of the following:
(i) Terminating this Agreement by giving written notice to the City; or
(ii) Enforcing specific performance by the City of the City's obligations
under this Agreement.
a. (c) For all other breaches by a Party of the express representations,
warranties, continuing obligations, made or given in this Agreement (including
the attached exhibits), the other Party shall have any and all remedies available to
it in law or in equity.
19. Controlling Law. This Agreement shall be interpreted under the laws of the State of
Montana.
20. Interpretation. This Agreement has been reviewed by both Parties,each of whom has
had the opportunity to consult with independent counsel regarding it and has done so
to the extent that such party desired. No stricter construction or interpretation of the
terms hereof shall be applied against either party as the drafter hereof.
21.Attorney'sFees. In the event either party finds it necessary to employ counsel in
order to enforce, rescind or interpret any term or provision of this Agreement, , the
prevailing party shall be entitled to recover from the other party in addition to costs
and disbursements allowed by law, the prevailing parry's reasonable attorneys fees.
Attorneys fees shall include any attorneys services rendered prior to the institution of
litigation, including the Bozeman City Attorney's Office and NorthWestern's in-
house attorneys, and include all matters pertaining to litigation as may be necessarily
incurred in such proceedings.
22.Facsimile and Counterparts. The Parties agree that a facsimile copy, which contains
the Parties' respective signatures, shall be considered an original. Further, this
Agreement may be executed in countetparts,each of which when taken together shall
constitute a fully executed Agreement.
23.Notices. Any notice, demand, request or other communication which either Party
hereto may be required or may desire to give under this Agreement shall be in writing
and shall be deemed to have been properly given if(a) hand delivered (effective upon
delivery), (b) mailed (effective three (3) days after mailing) by United States
registered or certified mail, postage prepaid, return receipt requested, (c) sent by a
nationally recognized overnight delivery service (effective one (1) day after delivery
to such courier) or (d) sent by facsimile or email (effective upon confirmation of
transmission), in each case, addressed as follows:
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IF TO NORTHWESTERN: IF TO THE CITY:
NorthWestern Energy City of Bozeman
Attn. Pat Patterson Attn: City Manager
Division Manager Bozeman City Hall
121 E Griffin Drive PO Box 1230
Bozeman,Montana 59771-0490 Bozeman,Montana 59771-1230
pat.pattersongnorthwestern.com
WITH A COPY TO: WITH A COPY TO:
NorthWestern Corporation Bozeman City Attorney
Attn: John Tabaracci PO Box 1230
Corporate Counsel Bozeman, MT 59771-1230
208 N.Montana Ave. Suite 205
Helena, Montana, 59601
j ohn.tabaracci@northwestern.com
City of Bozeman a self-governing NorthWestern Corporation d/b/a
municipality operating pursuant to its NorthWestern Energy,a Delaware
Charter and the laws of the State of Montana Corporation
4 ,Digitally signed by
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Page 13 of 21
Exhibit"A"-Illustration of the City Exchange Parcel
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Page 14 of 21
Exhibit"B"Page 1 -Illustration of NorthWestern Exchange Parcels
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Exhibit"B" Page 2-Illustration of NorthWestern Exchange Parcels
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Page 16 of 21
Exhibit"C"-Form of Deed City Exchange Parcel
After Recording,Return To:
Northwestern Energy
Attn:Lands and Permitting
11 East Park
Butte,MT 59701
WARRANTY DEED
FOR VALUE RECEIVED, City of Bozeman, a self-governing municipality operating
pursuant to its Charter and the laws of the State of Montana, of 121 N. Rouse Avenue,
Bozeman, Montana 59715 ("Grantor") does hereby grant, bargain, sell and convey unto,
NorthWestern Corporation, a Delaware Corporation, d/b/a NorthWestern Energy of 11 East
Park, Butte, Montana 59701 ("Grantee"), and to its successors and assigns, the following
described premises in Gallatin County,Montana, to-wit:
Remainder Tract 2 of Certificate of Survey No. , being a part of
Northeast Annexation Tract 33, situated in the SW1/4 of Section 31, TIS,
R6E,PMM in the City of Bozeman, Gallatin County,Montana
Together with an easement for ingress and egress over Remainder Tract 1
of Certificate of Survey No. , in the location and of the dimensions as
depicted in Certificate of Survey No. to and between Remainder Tract
2 of Certificate of Survey No. and Tract 37 Northeast Annexation;
provided the easement shall be for the benefit of the Grantee, its
successors or assigns. The easement shall not be for use by the general
public or any other person or entity; however,the Grantor may continue to
use the easement area for purposes related to its Storage Yard Property,
provided such use does not unreasonably interfere with Grantee's use of
the easement. In the event Grantee transfers ownership of Remainder
Tract 2 of Certificate of Survey No. without transferring its
ownership of Tract 37 Northeast Annexation to the same party this
easement shall terminate. If the easement does not terminate as described
above, the uses authorized by the easement shall be limited to those uses
substantially similar to Grantee's use or the easement shall terminate.
Notwithstanding the above, in the event the easement does transfer to
Grantee's assigns or successors, the easement shall not be for ingress and
egress for the public and may not be used for non-industrial commercial or
residential purposes.
But reserving onto the Grantor an easement for an existing sewer line and
future telecommunications facilities, 30 feet in width and located at the
southerly end of Remainder Tract 2 of Certificate of Survey No. , for
the benefit of the Grantor, its successors or assigns. The existing sewer
line shall remain the sole property of the Grantor.
Page 17 of 21
i
[Note this description may change to reflechuif vey fAr tkie=.pity Echatge PaiceJ
TO HAVE AND TO HOLD the said premises together with its appurtenances unto the
Grantee,and its successors and assigns forever, SUBJECT TO THE FOLLOWING:
1. Reservations and exceptions in patents from the United States or the State
of Montana;
2. Existing easements and rights-of-way of record;
3. All building,use,zoning, sanitary,and environmental restrictions; and
4. All prior conveyances, leases or transfers of any interest in minerals,
including oil, gas,and all other hydrocarbons and minerals.
Grantor further covenants and warrants that Grantor is now seized in fee simple absolute
of said premises;that Grantor has full power to convey the same;that the premises is free
from all encumbrances except those set forth above; that Grantee shall enjoy the quiet
and peaceful possession thereof without any disturbance; that Grantor will, on demand,
execute and deliver to Grantee, at the expense of Grantor, any further assurance of the
same that may be reasonably required; and, with the exceptions set forth above, Grantor
agrees to defend all right, title, and interest in the premises against any person lawfully
claiming the same.
DATED this day of 520
Page 18 of 21
City of Bozeman a self-governing
municipality operating pursuant to its Charter
and the laws of the State of Montana
By:
Its:
Attest:
Its:
STATE OF MONTANA }
ss
County of Gallatin )
This instrument was acknowledged before me on the day of
, 20_ by as and as
Of the City of Bozeman, a self-governing municipality operating pursuant to
its Charter and the laws of the State of Montana.
Notary Seal
Page 19 of 21
i
Exhibit"D"--Form. of Deed NorthWestern Exchange Parcels
After RecordingReturn urn To:
City of Bozeman
121 North Rouse Avenue
Bozeman,Montana 59715
WARRANTY DEED
FOR VALUE RECEIVED, NorthWestern Corporation, a Delaware Corporation, d/b/a
NorthWestern Energy of 11 East Park, Butte, Montana 59701 ("Grantor") does hereby
grant, bargain, sell and convey unto, City of Bozeman, a self-governing municipality
operating pursuant to its Charter and the laws of the State of Montana, of 121 N. Rouse
Avenue, Bozeman, Montana 59715 ("Grantee"), and to its successors and assigns, the
following described premises in Gallatin County, Montana,to-wit:
Lot 2B of the Amended Plat of Lot 2, Minor Subdivision No. 154, located
in the Southwest Quarter, of Section 31, Township 1 South, Range 6 East,
Gallatin County,Montana;
Tract 4 of the Amended Certificate of Survey No. 157A, situated in the
SW%a of Section 31, T1S, R6E, PMM in the City of Bozeman, Gallatin
County, Montana;
Together with all road improvements, including but not limited to all road
base, asphalt paving, striping, curbs, gutters for the road connecting
Manley Road to the Glen Lake Rotary Park, f/lda East Gallatin Recreation
Area;
But reserving onto the Grantor an easement for existing natural gas and
electric lines, located on the subject property, for the benefit of the
Grantor, its successors or assigns. These existing natural gas and electric
lines shall remain the sole property of the Grantor.
[Note this descr poor►may ck ange fo reflect#Wsurvey for the;4:.Exchange�?arcelj'
TO HAVE AND TO HOLD the said premises together with its appurtenances unto the
Grantee, and its successors and assigns forever, SUBJECT TO THE FOLLOWING:
I. Reservations and exceptions in patents from the United States or the State
of Montana;
2. Existing easements and rights-of-way of record;
3. All building,use,zoning,sanitary,and environmental restrictions; and
4. All prior conveyances, leases or transfers of any interest in minerals,
including oil, gas,and all other hydrocarbons and minerals.
Page 20 of 21
Grantor further covenants and warrants that Grantor is now seized in fee simple absolute
of said premises;that Grantor has full power to convey the same; that the premises is free
from all encumbrances except those set forth above; that Grantee shall enjoy the quiet
and peaceful possession thereof without any disturbance; that Grantor will, on demand,
execute and deliver to Grantee, at the expense of Grantor, any further assurance of the
same that may be reasonably required; and, with the exceptions set forth above, Grantor
agrees to defend all right, title, and interest in the premises against any person lawfully
claiming the same.
DATED this day of , 20
NorthWestern Corporation
A Delaware Corporation
d/b/a NorthWestern Energy
By:
Its:
STATE OF MONTANA )
ss
County of Silver Bow )
This instrument was acknowledged before me on the day of
, 20 by as of NorthWestern Corporation,
a Delaware Corporation,d/b/a NorthWestern Energy.
Notary Seal
Page 21 of 21