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HomeMy WebLinkAboutOrdinance 10- 1779 Sale of former City Hall, 411 East Main St. d ti ORDINANCE NO. 1779 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING THE CITY MANAGER TO SIGN A PURCHASE AND SALE AGREEMENT FOR THE SALE AND CONVEYANCE OF THE FORMER BOZEMAN CITY HALL LOCATED AT 411 EAST MAIN STREET AND INCLUDING SEVERAL CONTINGENCIES REGARDING THE SALE AND AN EFFECTIVE DATE. WHEREAS, the City of Bozeman owns property known as the former Bozeman City Hall located at 411 East Main St., with a legal description of. Rouse's 1 st Addition to Bozeman, Lots 10 14, Block F, Section 7. T2S R6E, Bozeman, Gallatin Co., Montana; and WHEREAS, the City is desirous of selling the above described real property; and WHEREAS, Section 2.11 of the Bozeman City Charter requires adoption of an ordinance when the City "convey[s]... or authorize[s] the conveyance... of any lands of the city and WHEREAS, Section 2.05.030 of the Bozeman Municipal Code (BMC), adopted pursuant to Ordinance 1658, grants the City Commission the jurisdiction and power to sell any real property, however acquired, belonging to the City that is not necessary to the conduct of city business or the preservation of property; and WHEREAS, Section 2.05.040, BMC, adopted pursuant to Ordinance 1713, states, "When the City Commission, after a public hearing, has determined by a two- thirds vote of all the members, that any real property owned by the city is not needed for public use, or that the public interest may be furthered, the City may sell such property by... negotiated sale..., ORDINANCE 1779 Page 1 of 5 subject... to a minimum price established through an appraisal that certifies the value of such property..." and WHEREAS, Section 2.05.040, BMC, also states, "Notice of sale... shall be published as provided in MCA 7 -1- 4127 and WHEREAS, Section 2.05.050.13, BMC, adopted pursuant to Ordinance 1658, states, a sale may not be made for less than 90% of the appraised value and WHEREAS, Section 2.05.060, BMC, adopted pursuant to Ordinance 1658, states, no sale of real property shall be made of any property unless it has been appraised within one year prior to the date of the sale and WHEREAS, on July 14, 2008, the Bozeman City Commission, by a vote of four to zero, determined the property located at 411 Fast Main St., which served as the former Bozeman City Hall, was no longer necessary to the conduct of city business; and WHEREAS, at that time the Bozeman City Commission authorized the City Manager to market the property and negotiate a sale; and WHEREAS, Keith O'Reilly, MAI, a General Certified Appraiser from Bridger Appraisal, Inc., on February 19, 2009, appraised the value of the former Bozeman City Hall to be between $900,000.00 and $1,200,000.00; and WHEREAS, on January 15, 2010, the Bozeman City Manager received an offer to purchase this property for eight hundred ten thousand dollars ($810,000) cash; and WHEREAS, the offer to purchase the former Bozeman City Hall is attached to this Ordinance as Attachment 1; and WHEREAS, should the Bozeman City Commission provisionally adopt this ordinance accepting said offer by no less than a two thirds vote of its total membership, notice of ORDINANCE 1779 Page 2 of 5 provisional adoption of this ordinance shall be published in compliance with Sect. 7 -1 -4127, MCA, prior to final adoption; and WHEREAS, should the Bozeman City Commission provisionally adopt this ordinance the City Commission shall conduct a public hearing on acceptance of the purchase and sale agreement attached as Attachment 1 at final reading. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 The Bozeman City Commission hereby accepts and authorizes the City Manager to sign the offer for the sale of the former Bozeman City Hall tendered by purchaser GSC Family Limited Partnership which is attached as a Purchase and Sale Agreement (Attachment 1). The property is located at 41.1 East Main Street and is legally described as Rouse's I" Addition to Bozeman, Lots 10 14, Block F, Section 7. T2S, R6E, Bozeman, Gallatin Co., Montana. By accepting this offer the Commission authorizes, subject to completion of the contingencies as stated in the attached Purchase and Sale Agreement and those contingencies listed below, the conveyance of the fee title to the property to the purchaser: 1. The sale prices shall be eight hundred and ten thousand dollars and zero cents ($810,000.00). 2. The purchaser shall pay cash to the City at closing. 3. The City Manager shall not be authorized to sign the Purchase and Sale Agreement until 30 days after final adoption of this ordinance; as such, the Purchase and Sale Agreement shall not be binding on the City of Bozeman until executed by the City Manger at that time. 4. The sale shall close no later than April 15, 2010. 5. Prior to release of contingencies, an agreement, acceptable to the Bozeman City Commission, shall be signed by the purchaser and the City regarding ownership, and maintenance of all infrastructure within the building including the tunnel and that infrastructure related to heating and other utilities shared with Fire Station No. 1 and for payment of related utility services. 6. The purchaser shall recognize and agrees that the City of Bozeman may reserve to itself any easement(s) for access, maintenance, and replacement of fixtures remaining on the property that are necessary for service of the Bozeman Fire Station No. 1. Proceeds of the sale shall be deposited in the City Hall construction fund. ORDINANCE 1.779 Page 3 of 5 Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provision of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification Instruction. The provisions of this Ordinance shall not be codified in the Bozeman Municipal Code; rather, this Ordinance shall be maintained by the City Clerk in an indexed file of all Ordinances not to be codified. Section 6 Effective Date. This ordinance shall be in full force and effect 30 days after final adoption. ORDINANCE 1779 Page 4 of 5 PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 19` day of January, 2010. JEF SS M o 50 -AV SST: r a gztN C 0.� FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the 1st day of February, 2010. The effective date of this ordinance is March 3, 2010 JEF SS M r ATTEST: p Ar N, C 1883 APPROVED AS TO FORM: G G SULLIVAN City Attorney ORDINANCE 1779 Page 5 of 5