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HomeMy WebLinkAboutAuthorize City Manager to sign Closing Documents-Condominium Declaration and Bylaws REPORT TO: Honorable Mayor and Commission Members FROM: Jason Shrauger, Fire Chief Chuck Winn, Assistant City Manager SUBJECT: Authorize City Manager to sign closing documents for Public Safety Condominiums, Fire Station Unit. MEETING DATE: July 13, 2009 RECOMMENDATION: Authorize City Manager to sign closing documents. BACKGROUND: Pursuant to Section 3 of the Memorandum of Agreement, Joint Development or Sale of County Land dated October 10, 2007, the city is ready to close on purchase of condominium unit and associated common elements that comprise Fire Station Three. The closing is tentatively scheduled for next Friday morning. At the time of closing, a final payment is due for the purpose of closing on purchasing a portion of the Project Site for the City of Bozeman and its use as Fire Station Three. Construction of Fire Station Three is nearly complete and prior to occupancy closing on these documents is required. FISCAL EFFECTS: If approved, signing the closing documents will release $142,737.64 of Fire Impact Fee funds, currently held in escrow, for payment of: full interest in the Fire Station unit and a 71% interest in the general common elements of the Public Safety Condominium. Going forward, the Condominium Association will split of costs of insurance of the common elements and common area maintenance on a 50/50 basis. Costs of utilities will be based on estimated demand to be determined through a subsequent agreement. ALTERNATIVES: As suggested by the City Commission. ATTACHMENTS: Land Payment Escrow letter from Chris Gray Public Safety Condominium Documents Real Estate Transfer-Gallatin County City of Bozeman-Order No. 1-90029 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Gallatin County Attorney Marty Lambert,County Attorney Ms.Peggy Russell American Land Title 1800 W.Koch Bozeman,MT 59715 07/08/2009 Judge Guenther Memorial Center 1709 West College,Bozeman,MT 59715 Phone:(406)582-3745 Fax:(406)582-3758 Re:Real Estate Transfer-Gallatin County City of Bozeman-Order No.1-90029 Dear Peggy: It appears that Gallatin County and the City of Bozeman are ready to close the transaction as evidenced by your order number above.$142,737.64 has been in your escrow account since December 17,2008 pursuant to an agreement between the City and County as your file will reflect.With optimism both the City and County would like to close on the morning of Friday, July 17 at 9:00 a.m. Contrary to my last letter to you no other written agreements will be tendered to evidence the transaction.You have everything pertaining to the sale of property.However,the following will take place before closing: 1)The Architect will issue a certificate of substantial completion; 2)The County will record the Condominium Declaration and Bylaws for the Public Safety Condominiums (draft attached); 3)The County will record a Geothermal Heating and Cooling Apparatus and Use Easement to encumber the neighboring property with the Condominiums system; 4)The County will record amended Open Space Covenants encumbering the neighboring property. In addition,the County will present to you the deed to the City for the newly created Fire Station Unit of the Public Safety Condominiums (draft attached)in order to close. In accordance with the Agreement,the City of Bozeman will pay all escrow fees.In addition, the City is to receive all of the interest that has accumulated for the amount held in escrow.It is anticipated that no title insurance will be issued. A contact point for the City is Greg, have any questions. C:Greg Sullivan ,Bozeman City Attorney.Please contact me if you ay .ty County Attorney 54