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HomeMy WebLinkAboutAuthorize City Manager to sign and submit Grant application for MT Community Development Block GrantCommission Memorandum 1 REPORT TO: Honorable Mayor & City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Grant Application for the Montana Community Development Block Grant, Economic Development Program 2011 Planning Grant, in partnership with the State of Montana’s Department of Natural Resources and Conservation MEETING DATE: September 19, 2011 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign and submit the grant application for the Montana Community Development Block Grant (CDBG), Economic Development Program 2011 Planning Grant, in partnership with the State of Montana’s Department of Natural Resources and Conservation. BACKGROUND: The property, known as the Mandeville Farm, was purchased by the City of Bozeman from John and Donna Mandeville on July 29, 2003 for $3,054,000 for the location of a solid waste transfer station. (Attachment 1) The property consists of approximately 85 acres, is zoned M-2 (Manufacturing and Industrial) and is within the boundaries of the Mandeville Farm Industrial TIF. (Attachment 2) Due to rising project costs, objections from nearby residents and other related issues, the transfer station was never constructed. The City of Bozeman retains title to the property, which currently functions as a grain field. (Attachment 3) The Bozeman City Commission identified Mandeville Farm as a 2011 – 2012 policy initiative (2e) on its 2011-2012 adopted work plan. (Attachment 4) As such, the City’s internal Economic Development Team has discussed Mandeville Farm on several occasions and suggested that the existing preliminary plat design on the 85 acres may not represent the highest and best design for the property today. Unless extended, the preliminary plat expires in April, 2012. The current site design was intended for a transfer station that was never constructed. There are likely more appropriate designs for other, more contemporary, uses. The Economic Development Council has identified manufacturing, along with the bio-science and photonics sectors, as one which the city should encourage and support. Mandeville Farm’s existing zoning designation, the possibility of the establishment of a Foreign Trade Zone (FTZ), proximity to Interstate 90, the east-west rail corridor and possible rail spur, North 7th Avenue and Gallatin Field Airport collectively support the concept of the approximately 85 acre Mandeville Farm as the location for the creation of a manufacturing center for southwest Montana. 9 Commission Memorandum 2 City Staff was contacted by Craig Campbell, Unit Manager for the DRRC’s Bozeman Field Office to discuss City plans for the property. Mr. Campbell was informed that our EDT was working on the issue and was exploring how an FTZ might function on the Mandeville property. The EDT quickly entered into discussions with the DNRC about the 200 + acres of State Trust Land described above and shown in Attachment 2. It was during those discussions that the DNRC was informed of the CDBG Economic Development planning grant and the City’s desire to apply for the grant in order to produce a workable plan for the 85 acres of Mandeville Farm. (Attachments 5 & 6) At that time the DNRC was invited to join the City’s effort and possibly seek the grant in partnership and rather than simply plan for the Mandeville property, we would endeavor to plan for the approximately 300 acres of contiguous property. Additionally, the DNRC matching funds in the amount of $12,500 offsets the total match of $25,000 by one-half. The Department of Natural Resources and Conservation (DNRC) manages 200 + acres known as the State Trust Lands to the south, south-east and contiguous with Mandeville Farm. (Attachment 2). The stated goal of the DNRC is “manage the State of Montana's trust land resources to produce revenue for the trust beneficiaries while considering environmental factors and protecting the future income-generating capacity of the land.” If awarded, the 2011CDBG Economic Development Planning Grant presents a unique opportunity to partner with the State of Montana and collectively plan for the 85 acres of City-owned property and as much as 200 acres of State Trust Lands. The vision is to create a zone or area in southwest Montana wherein manufacturers of products, i.e. textiles, vaccines or lasers, can realize cost savings, increase efficiencies or take advantage of the existing TIF or future FTZ, by strategically planning to locate, re-locate or expand operations into a zone supportive of efforts to encourage and increase manufacturing in southwest Montana. UNRESOLVED ISSUES: As stated in the proposed MoA (Attachment 2), the City must receive the grant prior to committing the $12,500 portion of match funding. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: The maximum award for the planning grant is $50,000. If awarded and accepted, the grantee(s) are obligated to match one-half of the total amount of the grant, or $25,000. The City of Bozeman will be responsible for one-half of the required match of $25,000, or $12,500. The City of Bozeman has negotiated a Memorandum of Agreement with the DNRC to partner on the match obligation. The DNRC will be responsible for the balance of the $25,000 match, or $12,500. 10 Commission Memorandum 3 Attachments: 1) July 1, 2003 memo to the City Commission RE: Purchase of Transfer Site – Mandeville Property; 2) Un-executed Memorandum of Agreement between the City of Bozeman and Montana Department of Natural Resources and Conservation in joint support of the proposed CDBG economic development planning grant, with exhibit maps; 3) Mandeville Farm Warranty Deed; 4) City of Bozeman Adopted 2011-2012 Work Plan; 5) Montana Community Development Block Grant 2011 Application; and 6) City of Bozeman/DNRC CDBG ED Planning Grant Proposal. Report Complied on: September 7, 2011 11 CITY OF BOZEMAN Bozeman Montana To City Commission From Miral Gamradt Finance Director p Date July 1 2003 Re Purchase of Transfer Station Site Mandeville Property At the July 7 2003 Commission meeting the City Commission will be asked to ratify the City Managers signature on a buy sell agreement for the future transfer station site The purpose of this memo is to provide the Commission information related to the proposed purchase PROPERTY TO BE PURCHASED Purchase COS Tract Acres Price Parcel 1 2153 1 A 222233 2153 3A 247610 2153 4A 283600 Total 753443 2637000 Purchase COS Tract Acres Price Parcel2 2153 Total Both Parcels 2A 100020 420000 53463 3057000 Street address 411 F Main St Phone 406 5822300 Mailing address PO Sox 1230 Fax 406 522344 Bozeman Montana 597711230 TDll 406 5822301 12 r Purchase of Transfer Station Site Mandeville Property Page 2 Financin The land will be purchased by the citys Solid Waste Fund The city h as b een a ware o f t he impending closure of the current landfill site for several years In previous years the decision was made to replace the landfill with a Transfer Station and possible composting facility rather than stay in the landfill business Landfill rates were set at a level that would enable the city to build sufficient cash reserves to 1 Place sufficient money in reserve to meet the Federal Financial Assurance Requirements for the closure and post closure of the landfill 2 Purchase a Transfer Station site and 3 Construct a new Transfer Station The city has met the first condition The city accumulated and set aside 2425024 for the closure and post closure costs of the landfill We are in full compliance with the Federal requirements In addition the city has accumulated reserves toward the acquisition of a site and construction of a Transfer Station Listed below is a graph of the citys Solid Waste Fund working capital for a tenyear period The significant drop in fiscal year 2 004 r eflects t he p urchase o f t he t ransfer station site SOLID WASTE FUND WORKING CAPITAL v a 5000000 a 4000000 00 3000000 z 2000000 1000000 nn nI1o w 95 96 97 98 99 00 01 02 03 04 1ST 8 YEARS ACTUAL LAST TWO YEARS PROJECTEI The graph above is indicative of the wide fluctuations we experience in working capital balances in the enterprise funds The key is to manage these balances in a manner which will allow us to meet the capital needs of the city 13 Purchase of Transfer Station Site Mandeville Property Page 3 The projections above contemplated the closure of the current landfill in early 2004 Our Solid Waste and Engineering staff have been doing everything possible to try and extend the landfill life It is certainly possible that the landfill will last longer than the early 2004 If this occurs it will give us more time to construct the Transfer Station as well as the additional revenues we will receive from keeping the landfill open longer We are hopeful we will be able to construct the Transfer Station without incurring any debt The 8 53 a cres p ropased t o b e p urchased i s m ore t han w hat w ill b e n eeded f or t he T ransfer Station site and possible composting facility It is possible that the additional land could be used for a new shop complex If this occurs the other funds will contribute toward the land purchase and repay the Solid Waste fund for their proportionate share of the cast This alternative is still being reviewed 14 15 Y COMMERCIAL BUY SELL AGREEMENT REALTOR Including Earnest Money Receipt 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 OPPORitMITY This Agreement stipulates the terms of sale of this property Read carefully before signing This is a legally binding contract If not understood seek competent advice Bozeman Citv of Bozeman Montana date June 23 2003 as Joint Tenants with rights of survivorship Tenants in common Single in hisher own right n Other hereinafter called Buyer agrees to purchase and the Seller agrees to sell the following described real property hereinafter referred to as Property commonly known as 1225 Redwin Drive County Of in the City of Bozeman Montana legally described as Tract 2A of COS 2153 TOGETHER with all interest of Seller in vacated streets and alleys adjacent thereto all easements and other appurtenances thereto and all improvements thereon All permanently installed fixtures and equipment that are attached property are included in the purchase price such as electrical plumbing and heating fixtures except any personal ro rt that Seller does not remove durin occu an after closin r OxriwiruT RLATn To Mcuical izewaTifla aF Ttr AaSolt PERSONAL PROPERTY The following items of personal property and otlrr assets are set forth hereafter or per attached addendum free of liens and without warranty of condition are included none PURCHASE PRICE AND TERMS Total purchase price is Four Hiudred Twent Thousand US Dollars 420 ooo oo payable as follows lo ooo oo earnest money to be applied at closing alo ooo oo as additional cash payment payable on or before closing balance of the purchase price will be financed as follows Buyers offer is contingent upon obtaining the financing specified herein If financing cannot be obtained this offer is terminated and the earnest money will be refunded to the Buyer 45 CLOSING DATE The date of closing shall be date August is 2op The parties may by 46 mutual agreement close the transaction at any time prior to the date specified The Buyer and Seller will deposit with the 47 closing agent all instruments and monies necessary to complete the purchase in accordance with this Agreement Commercial BuySall Page 1 aT 7 uyeYs Initials 6Monlena Association of REALTORS 03p72i703 Sellafs Inltlals Prudential Montana Real Estate 1925 North 22ndBozeman M7 59718 Phone 406 5879566 Fax 406 587SA53 Lloyd Mandeville Mandeville Cr Produced with Z1pForm ny RE FormsNet LLC 18025 FiHeen Mile Rcad Glirnan Township Michigan 48035 800 3838805 16 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 s3 64 s5 ss 67 s8 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 so 91 92 93 POSSESSION Seller shall deliver to Buyer possession of the property and allow occupancy when all required documents have been signed by all parties and delivered to closing agent OR on the date of recording the deed or Notice of Purchasers Interest OR 15 2004 at no cost to sellersellersmayretainpossessionuntilMay Seller shall provide keys andor means to operate locks mailboxes security systems alarms if applicable RECEIPT OF EARNEST MONEY The undersigned Broker or Salesperson hereby acknowledges receipt from Buyer of earnest money in the amount of Ten Thousand US Dollars lo o00 oo as evidenced by cash check or All parties to this Agreement agree unless otherwise provided herein that the earnest monies will be deposited pursuant to Montana Law or within 5 business days of the date all parties have signed the Agreement or B and such funds will be held in a trust account by Prudential Bozetaan Real Estate Parties agree that interest accruing on earnest money if any white deposited shall be payable to e it is r ation for services renderedIflfistispayabletotheBrokrageedthatsumssopaidareconsider Prudential Bozeman Real Estate Selling Real Estate Firm Phone Number by Signature of Salesperson Lloyd Mandeville BUYERS REPRESENTATION OF FUNDS Buyer represents that they have sufficient funds fnr the down payment and closing costs to close this sale in accordance with this Agreement and are not relying upon any contingent source of such funds unless otherwise expressly set forth herein APPRAISAL PROVISION Property must appraise for at least NA If the property does not appraise far at least the specified amount the transaction is terminated unless the Buyer elects to proceed with the transaction without regard to appraised value Written notice of Buyers election to proceed shall be given to Seller or Sellers BrokerSalesperson within NA days of Buyer or Buyers BrokerSalesperson receiving notice of appraised value SMOKE DETECTORS Property has None Smoke Detectors WATER Description of water if any to be transferred None The cost of transferring will be paid by Seller p Buyer split equally between Buyer and Seller Documents for transfer will be prepared and filed by NA PROPERTIES INSPECTIONS The buyer is aware that any Brokerage Firms and Salespersons involved in this transaction have not conducted an expert inspection or analysis of the property or its condition and make no representations to the Buyer as to its condition do not assure that the property andor buildings will be satisfactory to the Buyer in all respects that all equipment will operate properly or that the property andor improvements comply with current building and zoning caries and ARE NOT building inspectors building contractors structural engineers electricians plumbers sanitarians septic or cesspool experts well drillers or well experts land surveyors civil engineers flood plain or water drainage experts roofing contractors or roofing experts accountants attorneys or title examiners or experts in identifying hazardous waste andor toxic materials Commercial BuySall page 2 of7 BuyeYs Initials Sellers Initials Produced wdh zipFormTM by RE FormsNet LLC 18025 Fifteen Mile Road Glinton Township Michigan 48035 800 3839805 Mandeville CI 17 94 INSPECTION CONTINGENCY The Buyers offer to purchase is contingent upon Buyers acceptance of the property 95 conditions identified through any inspections or advice requested below Buyer agrees to acquire at their own cost 96 independent inspections or advice from qualified inspectors or advisors of the Buyers choice Buyer agrees that any 97 investigations or inspections undertaken by Buyer or on hisher behalf shall not damage or destroy the property 98 without the prior written consent of Seller Further Buyer agrees to return the property to its original condition and to 99 indemnify Seller from any damage or destruction to the property caused by the Buyers investigations or inspections 100 if Buyer does not purchase the property 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 11fi 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 Inspections or advice requested by the Buyer or other concerns noted are to be CHECKED as follows Building Inspection Zoning Determination Sellers Property Disclosure Review and Approval of Protective Covenants Roof Inspection Easements StructuralFoundation Inspection Flood Plain Determination Electrical Inspection Water Sample Test Plumbing Inspection Septic or Cesspool Inspection Heating ventilation cooling system Inspection Radon PestRodent Inspection Asbestos Underground Storage Tanks Well Inspection for condition of Well and Quantity of Water Sanitary Approval Accounting Advice Legal Advice Survey Required or Corner Pins Toxic WasteHazardous Material Located Reset bl ess to Property Other An thin Bu er deems a ro iata Release date for the above checked items Jul 3oth 2003 WAIVER OP INSPECTION 1 DO NOT REQUEST ANY INSPECTION OR ADVICE IWe are not declining an inspection or advice based upon any assurances by a Salesperson andor the Seller as to the condition of the property or that to request such inspections or advice would reduce the potential that our offer would be accepted Buyers Signature city of Bozeman Buyers Signature CONTINGENCIES The inspection contingency and the contingencies listed below in additional provisions or on attached addendum shall be deemed to have been released waived or satisfied and the transaction shall continue to closing unless by the date specified for each contingency the party requesting that contingency has notified the other party or the other partys BrokerSalesperson in writing that the contingency is not released waived or satisfied If a party has notified the other parry prior to the release date that a contingency is not released waived or satisfied the transaction is terminated and the earnest money will be returned to the Buyer unless the parties negotiate other terms or provisions TITLE CONTINGENCY This offer is contingent upon Buyers receipt and approval to Buyers satisfaction of the preliminary title commitment Release Date s business days from Buyers or Buyers Representatives receipt of preliminary title commitment INSURANCE CONTINGENCY This Agreement is contingent upon Buyers ability to acquire at a rate acceptable to the Buyer hazard insurance on the property Release Date July z xao3 This Agreement is contingent upon ratification b the cit Commission 141 142 143 Release bate Julp B Zoos 144 This Agreement is contingent upon closin on the sale of tracts lA 3A ana 4A cos 2153 rich 145 John and Donna Mandeville 146 147 148 Release Date August 15 2003 Commerdal Buysalt Page 3 d 7 ayers Inials sellers Initials Produced with ZtpFormTM M tp FarmsNet LLC 18025 Fitbaen Mile Road CliManTownship Midugan A8035 800 3839905 Mandevlle Cr 18 149ADDITIONALPROVISIONSBuerisawareoftherailroadrihtofmaYellowstoneiline150easementthrowhtheroert151entisrelativeofSellersBuerisreresentedbtheirown1alcounsel15215315415515615715815916016116216316416516616716816917017117217317417517617717179180181182183184185186187188189190191192193194195196197198199200CONVEYANCETheSellershallconveytherealpropertybyGeneralwarranterdeedfreeofallliensandencumbrancesexceptthosedescribedinthetitleinsurancecommitmentasapprovedbyBuyerTheSellershallconveythepersonalpropertybybillofsaleTheSellershallfurtherconveyanyandallsecuritydepositsrentalagreementspropertyconditionreportsandotherdocumentationinregardtoanypartsofthepropertyoccupiedbytenantsCLOSINGAGENTSFEESClosingagentsfeewillbepaidbySellerBuyerEquallySharedTITLEINSURANCESellerat5elfersexpenseshallfurnishBuyerwithanALTAStandardCoverageOwnersTitleInsurancePolicyasevidencedbyastandardformAmericanLandTitleAssociationtitleinsurancecommitmentinanamountequaltothepurchasepriceBuyermaypurchaseadditionalownerstitleinsurancecoverageintheformofExtendedCoverageorEnhancedCoverageforanadditionalcosttothebuyerItisrecommendedthatbuyerobtaindetailsfromatitlecompanyCONDITIONOFTITLEAllmortgagesjudgementsandliensshallbepaidorsatisfiedbytheSelleratorpriortoclosingunlessotherwiseprovidedhereinSelleragreesthatnoadditionalencumbrancesrestrictionseasementsorotheradversetitleconditionswillbeplacedagainstthetitletothepropertysubsequenttotheeffectivedateofthepreliminarytitlecommitmentapprovedbytheBuyerSPECIALIMPROVEMENTD15TRICTSSpecialImprovementDistrictsincludingruralSIDsincludingthosethathavebeennoticedtoSellerbyCityCountybutnotyetspreadorcurrentlyassessedifanywillbepaidaffbySelleratclosingassumedbyBuyeratclosingORDAllperpetualSIDsshallbeassumedbyBuyerPRORATIONOFTAXESANDASSESSMENTSSellerandBuyeragreetoproratetaxesSpecialImprovementDistrictassessmentsforthecurrenttaxyearaswellasprepaidrentswaterandsewersystemchargesandorcommonareamaintenancefeesifanyasofthedateofclosingunlessotherwiseagreedandnoother201202CONDITIONOFPROPERTYSelleragreesthatthePropertyshallbeinthesameconditionnormalwearandtear203exceptedfromthedateoftheexecutionofthisAgreementuptothetimeBuyertakespossessionoftheProperty204SelleragreestoleavethePropertyinbroomcleanorbetterconditionandallowBuyerawalkthroughinspectionof205saidPropertypriortoclosingtoinsurethatallappurtenancesandappliancesincludedinthesaleremainonthe206rpertyrCornmerasleuysellPageearBuyersInitialsSeNerSInitialsProducedwithZipFonnbyREFarmsNetLLC18025FiReenMileRoadCIIrHonTownsfiipMittJgan480958003839805MadevillaCr19 207NOXIOUSWEEDSDISCLOSUREBuyerofpropertyintheStateofMontanashouldbeawarethatsomeproperties208containnoxiousweedsThelawsoftheStateofMontanarequireownersofpropertywithinthisstatetocontrolandto209theextentpossibleeradicatenoxiousweeds1arinformationconcerningnoxiousweedsandyourobligationsasan210ownerofpropertycontracteitheryourlocalCountyextensionagentorWeedControlBoard211212MEGANSLAWDISCLOSUREPursuanttotheprovisionsofTitle4fiChapter23Part5oftheMontanaCode213Annotatedcertainindividualsarerequiredtoregistertheiraddresswiththelocallawenforcementagenciesaspartof214MontanasSexualandViolentOffenderRegistrationActInsomecommunitieslawenforcementofficeswillmakethe215informationconcerningregisteredoffendersavailabletothepublicIfyoudesirefurtherinformationpleasecontactthe215localCountySheriffsofficetheMontanaDepartmentofJusticeinHelenaMontanaandtheprobationofficers217assignedtothearea218219RADONDISCLOSURESTATEMENTThefollowingdisclosureisgivenpursuanttotheMontanaRadonControlAct220MontanaCodeAnnotatedSection753OfiRADONGASRADONISANATURALLYOCCURRINGRADIOACTIVE221GA5THATWHENITHASACCUMULATEDINABUILDINGINSUFFICIENTQUANTITIESMAYPRESENT222HEALTHRISKSTOPERSONSWHOAREEXPOSEDTOITOVERTIMELEVELSOFRADONTHATEXCEED223FEDERALGUIDELINESHAVEBEENFOUNDINBUILDINGSINMONTANAADDITIONALINFORMATION224REGARDINGRADONANDRADONTESTINGMAYBEOBTAINEDFROMYOURCOUNTYORSTATEPUBLIC225HEALTHUNITIfthePropertyhasbeentestedforradontheSellerwillprovideacopyofthetestresultsconcurrent226withanexecutedcopyofthisAgreementIfthePropertyhasreceivedradonmitigationtreatmenttheSellerwiHprovide227theevidenceofthemitigationtreatmentconcurrentwithanexecutedcopyofthisAgreement228229BUYERSREMEDIES230AIftheSellerfailstoaccepttheoffercontainedinthisAgreementwithinthetimeperiodprovidedinthe231BUYERSCOMMITMENTsectionallearnestmoniesshallbereturnedtotheBuyerBIftheSelleracceptsthe233offercontainedinthisAgreementbutrefusesorneglectstoconsummatethetransactionwithinthetimeperiod234providedinthisAgreementtheBuyermay2351DemandimmediaterepaymentofallmoniesthatBuyerhaspaidasearnestmoneyanduponthereturnof236suchmoneytherightsanddutiesofBuyerandSellerunderthisAgreementshallbeterminatedOR2372DemandthatSellerspecificallyperformSellersobligationunderthisAgreementOR2383DemandmonetarydamagesfromSellerforSellersfailuretoperformthetermsofthisAgreement239240SELLERSREMEDIESIftheSelleracceptstheoffercontainedinthisAgreementandBuyerrefusesorneglectsto241consummatethetransactionwithinthetimeperiodprovidedinthisAgreementtheSellermay2421DeclaretheearnestmoneypaidbyBuyerbeforfeitedOR2432DemandthatBuyerspecificallyperformBuyersdutiesandobligationsunderthisAgreementOR2443DemandthatBuyerpaymonetarydamagesforBuyersfailuretvpertormthetermsofthisAgreement245246BUYERSSELLERSCERTIFICATIONByenteringintothisAgreementeachpersonorpersonsexecutingthis247AgreementasBuyerorSellerrepresentsthathesheiseighteen18yearsofageorolderofsoundmindandlegally248competenttoownortransferrealpropertyintheStateofMontanaandifactingonbehalfofacorporation249partnershiparothernonhumanentitythathesheisdulyauthorizedtoenterintothisAgreementonbehalfofsuch250entity251252CONSENTTODISCLOSEINFORMATIONBuyerandSellerherebyconsenttotheprocurementanddisclosureby253BuyerSellerandSalespersonsandtheirattorneysrepresentativesandotherpartieshavinginterestsessentialto254thisAgreementofanyandallinformationreasonablynecessarytoconsummatethetransactiondescribedinthis255Agreementspecificallyincludingaccesstoescrowsfarreviewofcontractsdeedstrustindenturesorsimilar25fidocumentsconcerningthispropertyorunderlyingobligationspertainingthereto257258RISKOFLOSSAlllossordamagetoanyoftheabovelescribedrealpropertyorpersonalpropertytoanycauseis259assumedbySellerthroughthetimeofclosingunlessotherwisespecified260261TIMEI5OFTHEESSENCETimeisoftheessenceastothetermsandprovisionsofthisagreementCommerdalBuySellPage5of7BuyersInitialsBalletsInitialsProducedwithZpFormbyREFarmsNelLLC18pZ5FiReenMileRoadCliManTownshipMichiganA8035800388805MndevillaCr20 262 BINDING EFFECT AND NONASSIGNABILITY The Agreement is binding upon the heirs successors and assigns of 263 each of the parties hereto however unless otherwise provided for in this agreement Buyers interest is not assignable 264 without the Sellers express written consent 265 266 ATTORNEY FEES In any action brought by the Buyer or the Seller to enforce any of the terms of this Agreement the 267 prevailing party in such action shall be entitled to such reasonable attorney fees as the court or arbitrator shall 268 determine just 269 270 COMMISSION The Sellers andor Buyers commitment to pay a commission in connection with this transaction is an 271 integral part of this Agreement 272 273 FACSIMILE The parties agree that a facsimile copy of this Agreement which contains the parties signatures may be 274 used as the original 275 276 COUNTERPARTS A copy of this document may be executed by each individualentity separately and when each has 277 executed a copy thereof such copies taken together shall be deemed to be a full complete contract between the 278 parties 279 2g0 ENTIRE AGREEMENT This Agreement together with any attached exhibits and any addenda or amendments signed 281 by the parties shall constitute the entire agreement between Seller and Buyer and supersedes any other written or 282 oral agreements between Seller and Buyer This Agreement can be modified only in writing signed by the Seller and 283 Buyer 284 285 EARNEST MONEY DISPUTES Buyer and Seller agree that in the event of any controversy regarding the eamest 286 money and things of value held by the Broker closing agent or any person or entity holding such money or property 287 unless mutual written instructions are received by the holder of the earnest money and things of value Broker ar 288 closing agent shall not be required to take any action but may await any proceedings or at Brokers or closing 289 agents option and sole discretion may interplead all parties and deposit any monies or things of value in a court of 290 competent jurisdiction and may utilize as much of the eamest money deposit as may be necessary to advance the 291 cost and fees required for filing such action 292 293 ALTERNATIVE DISPUTE RESOLUTION At any time the parties may agree to submit any dispute arising out of this 294 transactian to mediation or arbitration Parties by agreement shall specify mediation OR binding arbitration The cost 295 of mediationarbitration shall be paid equally by the parties 296 297 ADDENDA ATTACHED Mandatory Mold Disclosure to be attached on all inhabitable real property along with the 298 fallowing check all that apply 299 Sale of Buyers Property 1031 Tax Deferred Exchange 300 Addendum for Additional Provisions Backup Offer 301 Sellers Disclosure Statement 302 303 304 305 RELATIONSHIP CONFIRMATION The parties to this agreement confirm that the real estate licensees identified 306 hereafter have been involved in this transactian in the capacities indicated below and the parties have previously 307 received the required statutory disclosures setting forth the licensees duties and the limits of their obligations to each 308 party 309 310 Llovd Mandeville N Ainsworth Of Prudential Bozeman Real Estate 311 name of licensee name of Brokerage company 312 is acting as Sellers BrokerSalesperson Dual BrokerSalesperson Statutory Broker 313 314 L1o d Mandeville N Ainsworth Of Pruden ial Bozeman Real Estate 315 name of licensee name of Brokerage company 316 is acting as Buyers BrokerSalesperson Dual BrokerlSalesperson Statutory Broker 317 Sellers BrokerSalesperson includes Sellers SubBroker or Salesperson Cammeraal BuySell Page 6 of7 Se11eYs Initials euyers tnitlals Produced with LpFormTM by RE FormSNel LLC 18025 FiRaen Mile Road Clinton TawnsNp Michigan 48035 800 3839805 Manlevillq Cr 21 318 BUYERS ACKNOWLEDGMENT Buyer acknowledges that heshe has examined the real and personal property that 319 Buyer enters into this Agreement in full reliance upon hisher independent investigation and judgement that prior verbal 320 representations by the Seller or Sellers agent or representatives do not modify or affect this Agreement and that by 321 signing this Agreement Buyer acknowledges having read and understood this entire Agreement 322 323 BUYERS COMMITMENT IWe agree to purchase the abovedescribed Property on the terms and conditions set forth 324 in the above offer and grant to said Salesperson until date June 26 Zoos at 500 325 am pm Mountain Time to secure Sellers written acceptance Buyer may withdraw this offer at any time prior to 326 Buyer being notified of Sellers written acceptance If Seller has not accepted by the time specified this offer is 327 automatically withdrawn 32 329 UVUE HEREBY ACKNOWLEDGE receipt of a copy of this Agreement bearing myour signatures 330 331 Buyers Address 1 East ruin City Bozeman 332 333 State rrr Zip Code 59vi5 Phone Number taoet 5822303 334 335 Buyers Name Printed cit of Bozeman 336 337 Dated this oE at tl 5 I am pm Mountain Time 338 339 t 341 Buyers Signature 342 343 Buyers Signature 344 OFFER PRESENTA71ON This offer was presented to the Sellers on 345 346 347 Date Time am p m By 348 349 350 351 SELLERS COMMITMENT IWe agree to sell and convey 352 and conditions herein above stated 1We acknowledge a 353 signatures and that of the Buyers named above 354 355 35ti 357 358 359 360 361 362 363 3G4 365 Signature of person presenting the offer to Buyer the abovedescribed Property on the terms receipt of a copy of this Agreement bearing myour Sellers Address 1225 Redng Dxirra City Bozeman State rrr Zip Code 54ie Phone Number 4ost 582522 Sellers Name Printed crai nand villa Gonnie Mandeville at am p pm Mountain TmeDatedthis sellers Signature Sellers Signature 366 367 ACTION TAKEN IF OTHER THAN ACCEPTANCE 368 369 Rejected by Seller Modified per Attached Counter 370 Sellers Initials Date Sellers Initials Date NOTE Any perfomrance which is required to te completed on a Saturday Sunday or a Holiday can be performed on the next business day MpntBna AssacieCon ofREALTORS 03012063 Commercial BuySell Page 7 oT7 Produced wim ZipFgYr1TM by RE FOrmsNet LLC 18025 Fifteen Mile Road Clinton Township Mrfdgan 48035 800 3839805 MaudeviUq Cr 22 tEALTOR 1031 Tax Deferred Exchange Addendum Seller 1 In reference to the BuySell Agreement between city of Bozeman 2 BUyerand John M Mandeville Donna R Mandeville 3 dated June 23 2003 covering the following described property 4 Redwing Drive Bozeman OUAIHWSIHt UPPOHTUNITY Seller 5 6 7 8 9 10 11 12 13 Buyer herein acknowledges that it is the intention of the Seller to complete an IRC Section 1031 tax 14 deferred exchange Buyer agrees the Sellers rights and obligations under this agreement may be 15 assigned to facilitate such exchange and this agreement may be part of an integrated interdependent 16 exchange agreement Buyer agrees to cooperate with the Seller in executing such documents as may 17 be necessary to enable Seller to qualify for said exchange at na additional cost or liability to Buyer 18 19 20 21 22 Seller John M Mandeville DateTime 23 24 25 26 Seller Donna R Mandeville DateTime 27 28 30 Buyer City of Bozeman DateTime 31 32 33 34 Buyer DateTime NOTE Any performance which is required to be completed on a Saturday Sunday or a Holiday can be performed on the next business day MONTANA ASSOCIATION OF REALTpRS 019902 Prudential Montana Real Estate 1925 North 22ndBareman MT 59718 Phone 406 5879566 Fax 40G 5875453 Lloyd Mandeville Mandeville to Produced with ZipFormTM by RE FormsNet LLC 16025 Fifteen Mile Road Clinton Township Michigan 48035 80D 3839805 23 MOLD DISCLOSURE Q EtAIAINOVStC bPPbRTUtgTY RfAL70R 1225 Redwing Drive Property Address Bozeman MT 59715 MOLD DISCLOSURE There are many types of mold Inhabitable properties are not and cannot be constructed to exclude mold Moisture is one of the most significant factors contributing to mold growth Information about controlling mold growth may be available from your county extension agent or health department Certain strains of mold may cause damage to property and may adversely affect the health of susceptible persons including allergic reactions that may include skin eye nose and throat irritation Certain strains of mold may cause infections particularly in individuals with suppressed immune systems Some experts contend that certain strains of mold may cause serious and even lifethreatening diseases However experts do not agree about the nature and extent of the health problems caused by mold ar about the level of mold exposure that may cause health problems The Centers for Disease Control and Prevention is studying the link between mold and serious health conditions The seller landlord sellers agent buyers agent or property manager cannot and does not represent or warrant the absence of mold It is the buyers or tenants obligation to determine whether a mold problem is present To do so the buyer or tenant should hire a qualified inspector and make any contract to purchase rent or lease contingent upon the results of that inspection A seller landlord sellers agent buyers agent or property manager who provides this meld disclosure statement provides for the disclosure of any prior testing and any subsequent mitigation or treatment for mold and discloses any knowledge of mold is not liable in any action based on the presence of or propensity for mold in a building that is subject to any contract to purchase rent or lease If the preceding box is checked SellerLandlord has knowledge that the buildings on the property has mold present Ifi the preceding box is checked Sellers AgentProperty Manager has knowledge that the buildings on the property has mold present If SellerLandlord knows a building located on the property has been tested for mold SellerLandlord has previously provided ar with this Disclosure provides the BuyerTenant a copy of the results of that test if available and evidence of any subsequent mitigation or treatment SellerLandlord Date a er AgentProperty anager Da e Craig Mandev 1e Lloyd N Mandeville SellerLandlord Date Setters AgentProperty Manager Date Connie Mandeville ACKNOWLEDGMENT The undersigned BuyerTenant Buyers Agent or Statutory Broker acknowledge receipt of this Disclosure the test results if available and evidence of subsequent mitigation or treatment 03 BuyerTenant Date Buyers AgentStatutory Broker Date BuyerTenant Date MONTANA A550CIA1ION OF RFJaLTORS Inc 052003 Mold Disclosure Prudential Montana Real Estate 1925 North 22ndBozernan MT 59718 Phone 406 X579566 Fax 406 5875453 Lloyd Mandeville Buyers AgentStatutory Broker Date Mandeville Cr 24 SELLER PROPERTY DISCLOSURE STATrIENT LJ MONTANA ASSOCIATION OF REALTORS STAfvARD FORMr REALTOR 1 The undersigned Seller having entered into a Listing with Prudential sozeman Real Estate 2 as Broker dated June 16 2003 and involving certain real property located at 1225 RedPirrg Ing 3 1225 Redwin Drive in the 4 city of Bozeman county of Gallatin Montana which real property is legally 5 described as Lot 21 Cos 2153 6 the Property Seller executes this Disclosure 7 Statement in order to assist the Broker in disclosing all Adverse Material Facts which concern the property to prospective 8 purchasers Adverse Material Facts are those which materially affect the value the structural integrity or present a 9 documented health risk to occupants of the property This Disclosure Statement provides a listing of components fixtures and 10 items of personal property to serve as a guide to the Seller in considering the condition of the property and to provide a medium 11 for the disclosure of Adverse Material Facts concerning the property The identification of the components fixtures and items 12 of personal properly provided in this Disclosure is not intended to serve as a representation about the condition of any 13 component fixture or item of personal property listed herein unless information concerning a particular component fixture or 14 item is provided by the Seller 15 16 THIS INFORMATION IS A D15CLOSURE BY THE SELLER OF ADVERSE MATERIAL FACTS CONCERNING THE 17 PROPERTY AS OF THE ABOVE DATE IT I5 NOT A WARRANTY OF ANY KIND BY THE SELLER THE BROKER OR 18 SALESPERSONS AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS THE BUYER MAY WISH TO OBTAIN 19 20 I 21 SELLERS INSTRUCTIONS 22 23 This Disclosure Statement is intended to be prepared by the Seller and should not be prepared by the BrokersSalespersons 24 The Seller should consider the listed components fixtures and items of personal property that may be present in the property 25 to be sold and note in the spaces provided the existence and nature of any Adverse Material Facts concerning each item 26 The Seller understands that the information provided herein is intended to be provided to prospective purchasers of 27 the property and that any inaccurate or false information may form the basis for a claim by a Buyer against the Seller 26 29 11 g0 SELLERS DISCLOSURE 31 32 The Seller dedares that the Seller has prepared this Disclosure Statement and any attachments thereto and to the best of the 33 Sellers knowledge and belief the Disclosure Statement and attachments are true correct and complete Seller hereby 34 authorizes the Broker to provide a copy of this statement to any person ar entity in connection with any actual or anticipated 35 sale of the property Seller further agrees to hold the Broker harmless from all claims far damages based upon the disclosures 36 made in this Disclosure Statement along with the failure of the Seller to disclose all Adverse Material Facts 37 38 THE FOLLOWING DISCLOSURES ARE MADE BY TWE SELLER AND ARE NOT THE REPRESENTATIONS OF THE 39 BROKERS OR THE SALESPERSONS TWIS INFORMATION IS A DISCLOSURE ONLY AND IS NOT A WARRANTY 40 INDUCEMENT NOR CONTRACT BETWEEN SELLER AND BUYER 41 42 A The subject property may contain the components fixtures and personal property described below 43 Range Dishwasher Garbage Disposal Oven Trash Compactor Water Softener Microwave Exhaust Fans Built in Vacuum 44 System Water Heater WD Hookups Ceiling Fan Intercom Remote Controls TV Antenna Satellite Dish Window Screens 45 Central Heating WallWindaw AC Central Air Conditioning Solar Electric Sump Pump Evaporator Coolers Pool Spa 46 PaollSpa Heater Hot Tub Sauna PatioDecking BuiltIn Barbecue Gazebo Private Utility Underground Sprinklers Security 47 Gates Garage Garage Door Openers Carport Rain Gutters Burglar Alarms Fire Alarms and Smoke Detectors 48 Please use the space below to describe any Adverse Material Facts concerning the items listed above or other 49 components fixtures ar personal property If this space is inadequate please attach additional sheets 50 51 52 53 Sellers Property Disclosure 7 of 4 B ers nitials5ellers nitials Prudential Mmrtana Real Estate 1925 North 22rn113oxeman MT 59718 Phone 406 5879566 ax 406 5875453 Lloyd Mandeville Mandeville Cr Produced with ZipFarmTM Fry RE FdrrnsNet LLC 18025 Fifteen Mile Rvad Clinton Township Mkhlgan 48035 800 3839805 25 54 B The property generally contains t Basic components described below 55 Interior Walls Ceilings Floors Exterior Walls Roof Windows Doors Foundation abs Driveways Sidewalks Fences 56 Electrical Systems Plumbing Sewers Septic Water Systems and Access Roads 57 Please use the space below to describe any Adverse Material Facts concerning the items listed above or other general 58 components of the property If this space is inadequate please attach additional sheets 59 60 61 62 C Please use the spaces provided to describe any Adverse Material Facts concerning the components fixtures or 63 matters noted below If the space provided is inadequate please attach additional sheets 64 65 1 ROOF Leakage Deterioration and Structural Condition FF 67 68 69 2 FOUNDATION Depth Footings Reinforcement and Gracking fi 70 71 72 73 3 BASEMENT Leakage Flooding Moisture or Evidence of Water and Fuel Tanks 74 75 76 77 4 ELECTRICAL SYSTEM Wiring utlets Svitches Service Shorts Alterations and Overloads i f1LI 78 80 81 5 PLUMBINGSEWERSEPTIC including pipes drains faucets fixtures and toilets 82 a Private Septic Systems Adherence to Health Codes Clogging Backing Up Drain Field Septic Tanks Holding 83 Tanks and Cesspools U 84 U1 85 86 87 b Public Sewer Systems Clogging and Backing Up 88 9 90 91 6 HEATING SYSTEM Gas Leaks Furnace Problems and Thermostat n Jf x 92 93 94 95 7 INSULATION Walls Ceiling Utility Bills Vapor Barrier and For 96 97 98 99 8 P IVATE WELL AND WATER RIGHTS Well Production 100 9m Quality and Quantity Water Rights and Abandoned Wells 102 103 9 WOOD STOVES AND FIREPLACES Compliance With Air Quality Laws Chimney Cleanliness Chimney Fires and 104 Adherence to Codes in Installation Jo 105 106 107 Sellers Property Disclosure 2 of 4 n r 1 Buye s In iaisSetler nitials Produced wah ZipFormTM by RE FormsNet LLC 18025 Fifteen Mile Road CfntonTownship Michkan48035 800 383905 Mandeville Cr 26 108 10 ACCESS If the property is not c public street note an 17riveway A9reement rvate Easements and Legal Disputes 109 Concerning Access r 110 111 112 D Please use the space provided below to note any Adverse Material Facts concerning any of the matters noted 113 below abng with any other matters which you feel constitute Adverse Material Facts but are not otherwise noted 114 in this Disclosure Statement If the space provided below is inadequate please attach additional sheets 115 1 Common walls fences and driveways that may have any effect on the subject property 116 Encroachments easements or similar matters that may affect your interest in the subject property 117 3 F2oom additions structural modifications or other alterations or repairs made without necessary permits 118 4 Room additions structural modifications or other alterations or repairs not in compliance with building codes 119 5 Landfill compacted or otherwise on the property or any portion thereof 120 6 Settling slippage sliding ar other sail problems 121 7 Flooding drainage or grading problems 122 8 Major damage to the property or any of the structures from fire earthquakes floods slides etc 123 9 Zoning violations nonconforming uses violations of setback requirements etc 124 Neighborhood noise problems or other nuisances 125 11 Property Owners association obligations dues lawsuits etc 126 12 Common area problems 127 13 Violations of deed restrictions restrictive covenants or other such obligations 128 14 Notices of abatement or citations against the property 129 15 Lawsuits or legal proceedings including foreclosures and bankruptaes involving the Seller and threatening or 130 affecting this real property 131 16 Waste dump or disposal or IandFll or commercial use in the vicinity of the property which causes smoke smell noise 132 or other pollution 133 17 Street or utility improvement planned that may affect or be assessed against the property 134 Zoning or land use change planned or being considered by the city or county 135 19 Proposed increase in the tax assessment value or homeowners association dues for the property 136 20 Asbestos 137 21 Location of the property in a floadplain shoreline master plan wetland or other environmentally sensitive area 138 22 Radon gas or radon progeny If the property has been tested please attach a copy of all test results 139 23 Mitigation or treatment made to the property for radon gas or radon progeny Please attach a description of the 140 nature of the mitigation nr treatment and attach a copy of any evidence of mitigation or treatment 141 24 Leadbased paint 142 25 Underground storage tanks or class II injection wells 143 26 Destructive insects such as termites or carpenter ants If property has been tested or treated attach 144 documentation 145 27 Mold or Mildew if property has been tested or treated attach documentation 146 28 Insurance claims involving property 147 29 Noxious weeds 148 30 Tenant problems defaults ar other tenant issues 149 31 Health department or other governmental licensing compliance or issues 150 151 QOWSpti Ine fi1rr f F tG ctZ 152 mere taw c kosa s howca mr 153 Zcca cc55S b fv tT 154 sr C lam C r vrp C d Cu r rp S 155 156 157 158 159 160 161 162 163 Sellers Property Qisclosure 3 of 4 Buyers IrnalslSellers nitials Mandeville Cr Produced whh ZipFdrmTM by RE FormsNet LLC 18025 fmeen Mile Road C6rrtonTownship MichVgan 48035 800 339805 27 164 Seller certifies that the infc lion herein is true correct and completF the best of the Sellers knowledge 165 and belief as of the date signea by Seller 166 167 16 169 Seller W Date lv 1 L 170 Craig Mandeville 171 172 Seller h Date 5 173 Connie Mandeville 174 175 BUYERS ACKNOWLEDGMENT 176 177 Subject Property Address ZZS c T l5 178 179 180 BUYERS UNDERSTAND THAT THE FOREGOING DISCLOSURE STATEMENT SETS FORTH ONLY THOSE ITEMS 181 WHICH THE SELLER HAS DETERMINED TO BE ADVERSE MATERIAL FAGTS THE DISCLOSURE STATEMENT DOES 182 MOT PROVIDE ANY GENERAL REPRESENTATIONS CONCERNING THE STATUS OF THE PROPERTY NOR DOES THE 183 FACT THIS DISGLOSURE STATEMENT FAILS 70 NOTE AN ADVERSE MATERIAL FACT CONCERNING A PARTICULAR 184 FEATURE FIXTURE OR COMPONENT IMPLY THAT THE SAME IS FREE OF bEFECTS BUYERS MAY WISH TO 185 OBTAIN PROFESSIONAL ADVICE INSPECTIONS OR BOTH OF THE PROPERTY AND TO PROVIDE FOR 186 APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN BUYERS AND SELLERS WITH RESPECT TO ANY ADVICE 1871NSPECTIONS OR DEFECTS BUYERS ARE NOT RELYING UPON THIS PROPERTY DISCLOSURE STATEMENT FOR 188 BUYERS DETERMINATION OF THE OVERALL CONDITION OF THE PROPERTY IN LIEU OF OTHER INSPECTIONS 189 REPORTS OR ADVICE 19a 191 IIWE ACKNOWLEDGE RECEIPT OF A COPY OF THIS STATEMENT 192 193 194 Buye Date Q Z3 195 196 197 Buyer Date 198 NOTE Any performance which is required to be completed on a Saturday Sunday or a Holiday can be performed on the next business day OMONTANA ASSOCIATION OF REALTORS 03012003 Sellers Property Disclosure 4 0 Buyers InitialsSeliers Initials Produced wtth ZipFOrmTM by RE FnrmsNet lLG 18025 Flrteen Mile Road GFntan Tnwnshlp Mkhgan 48035 900 359905 Mxndarilk Cr 28 RELATIONSHIPS IN REAL ESTATE TRANSACTIONS COMBINED EXPLANATION AND DISCLOSUREREnLTORDefinitionofTermsandDescriptionofDuties 1 A Seller Agent is obligated to the Seller to 2 act solely in the best interests of the seller 3 obey promptly and efficiently all lawful instructions of the seller 4 disclose all relevant and material information that concems the real estate transaction and that is known to 5 the seller agent and not known or discoverable by the seller unless the information is subject to confidentiality 6 arising from a prior or existing agency relationship on the part of the seller agent 7 safeguard the sellers confidences 8 exercise reasonable care skill and diligence in pursuing the sellers objectives and in complying with the 9 terms established in the listing agreement 10 fully account to the seller for any funds or property of the seller that comes into the seller agents 11 possession and 12 comply with all applicable federal and state laws rules and regulations 13 14 A seller Agent is obligated to the Buyer to 15 disclose to a buyer or the buyer agent any adverse material facts that concern the property and that are 16 known to the seller agent except that the seller agent is not required to inspect the property or verify any 17 statements made by the seller 18 disclose to a buyer or the buyer agent when the seller agent has no personal knowledge of the veracity of 19 information regarding adverse material facts that concern the property 20 act in good faith with a buyer and a buyer agent and 21 comply with all applicable federal and state laws rules and regulations 22 23 ABuyer Agent is obligated to the Buyer to 24 act solely in the best interests of the buyer 25 obey promptly and efficiently all lawful instructions of the buyer 26 disclose all relevant and material information that concems the real estate transaction and that is known to 27 the buyer agent and not known or discoverable by the buyer unless the information is subject to confidentiality 28 arising from a prior or existing agency relationship on the part of the buyer agent 29 safeguard the buyers confidences 30 exercise reasonable care skill and diligence in pursuing the buyers objectives and in complying with the 31 terms established in the BuyerBroker agreement 32 fully account to the buyer for any funds or property of the buyer that comes into the buyer agents 33 possession and 34 comply with all applicable federal and state laws rules and regulations 35 36 A Buyer Agent is obligated to the Seller to 37 disclose any adverse material facts that are known to the buyer agent and that concern the ability of the 38 buyer to perform on any purchase offer 39 disclose to the seller or the seller agent when the buyer agent has no personal knowledge of the veracity of 40 information regarding adverse material facts that concern the buyer 41 act in goad faith with a seller and a seller agent and 42 comply with all applicable federal and state laws rules and regulations 43 44 DUAt AGENCY IF A SELLER AGENT IS ALSO REPRESENTING A BUYER OR A BUYER AGENT IS ALSO 45 REPRESENTING A SELLER WITW REGARD TO A PROPERTY THEN A DUAL AGENCY RELATIONSHIP MAY 46 BE ESTABLISHED IN A DUAL AGENCY RELATIONSHIP THE DUAL AGENT IS EQUALLY OBLIGATED TO BOTH 47 THE SELLER AND THE BUYER THESE OBLIGATIONS MAY PROHIBIT THE DUAL AGENT FROM ADVOCATING 48 EXCLUSIVELY ON BEHALF OF THE SELLER OR BUYER AND MAY LIMIT THE DEPTH AND DEGREE OF 49 REPRESENTATION THAT YOU RECEIVE A BROKER OR A SALESPERSON MAY NOT ACT AS A DUAL AGENT 50 WITHOUT THE SIGNED WRITTEN CONSENT OF BOTH THE SELLER AND THE BUYER 51 52 Initi Montana Association of REALTORS p3p1ZOp3 Page 1 of 2 agency disclosure Prudential Montana Real Estate 1925 Norih 22ndBozeman MT 5971 Phone 406 5879566 Fax 406 5875453 Lloyd Mandeville Mandeville Cr Protluced wi7 ZipForm by RE FormsNet LLC 18025 FiHeen Mile Road Clirnon Township Michigan 48035 800 3639905 29 53 A Dual Agent is obligated to a Seller in the same manner as a seller agent and is obligated to a buyer in the 54 same manner as a buyer agent except a dual agent 55 has a duty to disclose to a buyer or seller any adverse material facts that are known to the dual agent 56 regardless of any confidentiality considerations and 57 may not disclose the following information without the written consent of the person to whom the 58 information is confidential 59 i the fact that the buyer is willing to pay more than the offered purchase price 6p ii the fact that the seller is willing to accept less than the purchase price that the seller is asking 61 for the property 62 iii factors motivating either party to buy or sell and 63 iv any information that a party indicates in writing to the dual agent is to be kept confidential 64 65 A Statutory Broker is not the agent of the Buyer or Seller but nevertheless is obligated to them to 66 disclose to 67 i a buyer or a buyer agent any adverse material facts that concern the property and that are 68 known to the statutory broker except that the statutory broker is not required to inspect the fig property or verify any statements made by the seller and 70 ii a seller or a seller agent any adverse material facts that are known to the statutory broker and 71 that concern the ability of the buyer to perform on any purchase offer 72 exercise reasonable care skill and diligence in putting together a real estate transaction and 73 comply with all applicable federal and state laws rules and regulations 74 75 An Adverse material fact means a fact that should be recognized by a broker or salesperson as being of 76 enough significance as to affect a persons decision to enter into a contract to buy or sell real property and may be 77 a fact that 78 i materially affects the value affects structural integrity ar presents a documented health risk to 79 occupants of the property or 80 ii materially affects the buyers ability or intent to perform the buyers obligations under a proposed or 81 existing contract 82 Adverse material fact does not include the fact that an occupant of the property has or has had a communicable 83 disease or that the property was the site of a suicide or felony 4 85 Relationship DisclosureConsent 86 The undersigned Broker or Salesperson hereby discloses the relationship as checked below and the undersigned 7 Seller or Buyer acknowledges receipt of such Disclosure and consents to the relationship disclosed 8 89 Check all the Applicable Relationships 90 91 Seller Agent Buyer Agent 92 93 Statutory Broker Dual Agent by checking this box the undersigned buyer or seller consents to the licensee 94 acting as a dual representative 95 96 97 98 99 100 101 Lloyd Mandeville N Ainsworth 102 Broker andor Salesperson Lloyd N Mandevile Date 103 104 10 4 z o 10607 Seller Buyer city of Bozeman Date 107 Page 2 of 2 agency disclosure Produced with ZipForm1 by RE FormsNel LLC 18025 Filleen Mile Road ClirHon Township Michigan 48035 800 3839@05 Maodevitly Cr 30 v COMMERCIAL BUY SELL AGREEMENT EALTOR Including Earnest Money Receipt touu Houslac OPPONTIINItY 1 This Agreement stipulates the terms of sale of this property Read carefully before signing This is a legally 2 binding contract If not understood seek competent advice 3 4 Bozeman Montana date June z3 2003 Cityof Bozeman a5 6 Joint Tenants with rights of survivorship Tenants in common Single in hisher own right 7 ther hereinafter called Buyer agrees to purchase and the Seller agrees to sell the following described real property hereinafter 9 referred to as Property commonly known as RedwiDripe 10 in the City of Bozeman 11 County of Montana legally described as xracts lA3A 6 4A ox cos 2153 12 13 14 15 16 17 TOGETHER with all interest of Seller in vacated streets and alleys adjacent thereto all easements and other 1 appurtenances thereto and all improvements thereon All permanently installed fixtures and equipment that are attached 19 property are included in the purchase price such as electrical plumbing and heating fixtures except None 20 21 22 PER50NAL PROPERTY The following items of personal property and other assets are set forth hereafter or per 23 attached addendum free of liens and without warranty of condition are included none tpt o t nnAckarEa 24 AoMtzrtT C To tutnraNtpl rckaCorr 4F 4p X41 25 26 PURCHASE PRICE AND TERMS 27 Total purchase price is Two Million SixHUndredThirtySeven Thousand Forty US Dollars 2 637 oao oo payable as follows 2g so ooo oo earnest money to be applied at closing 30 z 5s7 oao oo as additional cash payment payable on or before closing 31 balance of the purchase price wilt be financed as follows 32 33 34 35 36 37 3 39 40 41 42 Buyers offer is contingent upon obtaining the financing specified herein If financing cannot be obtained this offer is 43 terminated and the earnest money will be refunded to the Buyer 44 45 CLOSING DATE The date of closing shall be date August L52o03 The parties may by 46 mutual agreement close the transaction at any time prior to the date specified The Buyer and Seller wilt deposit with the 47 closing agent all instruments and monies necessary to complete the purchase in accordance with this Agreement Commercial Buyyen Page 1 of 7 Buyers Initials Montana Association of REALTORS 03012003 eners Initials Prudential Montana Real Estate 1925 North 22ndBozeman MT 59718 Phone 406 5879566 1ax 4D6 5875453 Lloyd Mandeville Mandeville Io produced with ZipFormT by RE FormsNet LLC 18025 Fifteen Mile Road Clinton Township Michigan 48035 800 3839805 31 48 POSSESSION Seller shall deliver to Buyer possession of the property and allow occupancy 49 when all required documents have been signed by all parties and delivered to closing agent OR 50 on the date of recording the deed or Notice of Purchasers Interest OR 51 sellers will retain osession of cro s until the end of the 2003 rowin season 52 Seller shall provide keys andor means to operate locks mailboxes security systems alarms if applicable 53 PbC Rdtasd FaQ IN CMrLtE To S 54 RECEIPT OF EARNEST MONEY The undersigned Broker or Salesperson hereby acknowledges receipt from Buyer of 55 earnest money in the amount of FiftThousand US Dollars 56 50 ooo oo as evidenced by cash check or 57 All parties to this Agreement agree unless otherwise provided herein that the earnest monies will be deposited pursuant 58 to Montana Law or within 5 business days of the date all parties have signed the Agreement or 59 and such funds 60 will be held in a trust account by Prudential Bozeman Real Estate 61 Parties agree that interest accruing on earnest money if any while deposited shall be payable to 62 63 If interest is payable to the Broker it is agreed that sums so paid are consideration for services rendered 64 65 Prudential Bozeman heal Estate by 66 Selling Real Estate Firm Phone Number Signature of Salesperson 67 Lloyd N Mandeville 68 BUYERS REPRESENTATION OF FUNDS Buyer represents that they have sufficient funds for the down payment 69 and closing costs to close this sale in accordance with this Agreement and are not relying upon any contingent source 70 of such funds unless otherwise expressly set forth herein 71 72 APPRAISAL PROVISION Property must appraise for at least 73 NA 74 If the property does not appraise for at least the specified amount the transaction is terminated unless the Buyer elect 75 to proceed with the transaction without regard to appraised value Written notice of Buyers election to proceed shall be 76 given to Seller or Sellers BrokerSalesperson within NA days of Buyer or Buyers BrokerSalesperson receiving 77 notice of appraised value 78 79 SMOKE DETECTORS Property has None Smoke Detectors 80 81 WATER Description of water if any to be transferredny rights remaining after transfer of xract 2 cos 2 1723 to the State of Montana 83 The cost of transferring will be paid by Seller Buyer split equally between Buyer and Seller 84 Documents for transfer will be prepared and filed by gayer 85 86 PROPERTIES INSPECTIONS The buyer is aware that any Brokerage Firms and Salespersons involved in this 87 transaction have not conducted an expert inspection or analysis of the property or its condition and make no representations to the Buyer as to its condition do not assure that the property andar buildings will be satisfactory to 89 the Buyer in all respects that all equipment will operate properly or that the property andor improvements comply with 90 current building and zoning codes and ARE NOT building inspectors building contractors structural engineers 91 electricians plumbers sanitarians septic or cesspool experts well drillers or well experts land surveyors civil 92 engineers flood plain or water drainage experts roofing contractors or roofing experts accountants attorneys or title 93 examiners or experts in identifying hazardous waste andar toxic materials Commercial BuySell Page 2 of 7 Buyers Initials sellers Initials Produced with TipForm by RE FvrmsNet LLC 18025 Fifteen Mile Road Clinton Township Michigan 48D35 800 3839805 Mandeville Jo 32 94 INSPECTION CONTINGENCY The Buyers offer to purchase is contingent upon Buyers acceptance of the property95conditionsidentifiedthroughanyinspectionsoradvicerequestedbelowBuyeragreestoacquireattheirowncost 96 independent inspections or advice from qualified inspectors or advisors of the Buyers choice Buyer agrees that any97investigationsorinspectionsundertakenbyBuyeroronhisherbehalfshallnotdamageordestroytheproperty 98 without the prior written consent of Seller Further Buyer agrees to return the property to its original condition and to 99 indemnify Seller from any damage or destruction to the property caused by the Buyers investigations or inspections 100 if Buyer does not purchase the property 101 102 Inspections or advice requested by the Buyer or other concerns noted are to be CHECKED as follows 103 Building Inspection Zoning Determination 104 Sellers Property Disclosure Review and Approval of Protective Covenants 105 p Roof Inspection Easements 106 StructuralFoundation Inspection Flood Plain Determination 107 p Electrical Inspection Water Sample Test 108 Plumbing Inspection Septic or Cesspool Inspection 109 Heating ventilation cooling system Inspection 110 Radon PestRodent Inspection 111 Asbestos Underground Storage Tanks 112 Well Inspection for condition of Well and Quantity of Water Sanitary Approval 113 Accounting Advice Legal Advice 114 Survey Required or Corner pins Toxic WasteHazardous Material 115 Located p Reset 1 Access to Property 116 Othernything Buyer deems appropiate 117 Release date for the above checked items July 30th zoo3 118 119 WAIVER OF INSPECTION I DO NOT REQUEST ANY INSPECTION OR ADVICE IWe are not declining an 120 inspection or advice based upon any assurances by a Salesperson andor the Seller as to the condition of the property 121 or that to request such inspections or advice would reduce the potential that our offer would be accepted 122 123 124 Buyers Signature city of Bozeman Buyers Signature 125 126 CONTINGENCIES The inspection contingency and the contingencies listed below in additional provisions or on 127 attached addendum shall be deemed to have been released waived or satisfied and the transaction shall continue to 128 closing unless by the date specified for each contingency the party requesting that contingency has notified the other 129 party or the other partys BrokerSalesperson in writing that the contingency is not released waived or satisfied ff a 130 party has notified the other party prior to the release date that a contingency is not released waived or satisfied the 131 transaction is terminated and the earnest money will be returned to the Buyer unless the parties negotiate other terms 132 or provisions 133 134 135 136 137 13 139 140 141 142 143 144 145 146 TITLE CONTINGENCY This offer is contingent upon Buyers receipt and approval to Buyers satisfaction of the preliminary title commitment Release Date 5 business days from Buyers or Buyers Representatives receipt of preliminary title commitment INSURANCE CONTINGENCY This Agreement is contingent upon Buyers ability to acquire at a rate acceptable to the Buyer hazard insurance on the property Release Date July 2 200 This Agreement is contingent upon ratification by the city commission Release Date July s 2003 This Agreement is contingent upon ICi4FACToeviZS Tq L1 r tetra c 1 47 qC U et F LLVs F la 148 fsA Release Date J Commervial BuySell Page 3 of 7 uyers Initials Sellers Initials Produced with ZipForm by RE FvrmsNet LLC 18025 Fifteen Mile Road Clinton Township Michigan A8035 800 3839805 Mandeville IO 33 149ADDITIONALPROVISIONSBuerisawareoftherailroadrihtofwaYellowstoneialine150easementthrouhtheroartNaturalaseasementandtheCellTowerleaseMemorandtunoflease151attached152ListinaantisrelatedtoSellerBuexisbeinreresentedbBuersownlealoounsel153154E155156157158Tumdtob159160161162163164165166167168169170171CONVEYANCETheSellershallconveytherealpropertybyGeneralwarrantydeedfreeofall172liensandencumbrancesexceptthosedescribedinthetitleinsurancecommitmentasapprovedbyBuyerTheSeller173shallconveythepersonalpropertybybillofsaleTheSellershallfurtherconveyanyandallsecuritydepositsrental174agreementspropertyconditionreportsandotherdocumentationinregardtoanypartsofthepropertyoccupied175bytenants176177CLOSINGAGENTSFEESClosingagentsfeewillbepaidbySellerBuyerEquallyShared178179TITLEINSURANCESelleratSellersexpenseshallfurnishBuyerwithanALTAStandardCoverageOwnersTitle180InsurancePolicyasevidencedbyastandardformAmericanLandTitleAssociationtitleinsurancecommitmentinan181amountequaltothepurchasepriceBuyermaypurchaseadditionalownerstitleinsurancecoverageintheformof182ExtendedCoverageorEnhancedCoverageforanadditionalcosttothebuyerItisrecommendedthatbuyerobtain183detailsfromatitlecompany184185CONDITIONOFTITLEAllmortgagesjudgementsandliensshallbepaidorsatisfiedbytheSelleratorpriorto186closingunlessotherwiseprovidedhereinSelleragreesthatnoadditionalencumbrancesrestrictionseasementsor17otheradversetitleconditionswillbeplacedagainstthetitletothepropertysubsequenttotheeffectivedateofthe18preliminarytitlecommitmentapprovedbytheBuyer189190SPECIALIMPROVEMENTDISTRICTSSpecialImprovementDistrictsincludingruralSIDsincludingthosethathave191beennoticedtoSellerbyCityCountybutnotyetspreadorcurrentlyassessedifanywillbe192paidoffbySelleratclosing193assumedbyBuyeratclosingQR194195AllperpetualSIDSshallbeassumedbyBuyer196197PRORATIONOFTAXESANDASSESSMENTSSellerandBuyeragreetoproratetaxesSpecialImprovement198Districtassessmentsforthecurrenttaxyearaswellasprepaidrentswaterandsewersystemchargesandor199commonareamaintenancefeesifanyasofthedateofclosingunlessotherwiseagreedandnoother200201202CONDITIONOFPROPERTYSelleragreesthatthePropertyshallbeinthesameconditionnormalwearandtear203exceptedfromthedateoftheexecutionofthisAgreementuptothetimeBuyertakespossessionoftheProperty204SelleragreestoleavethePropertyinbroomcleanorbetterconditionandallowBuyerawalkthroughinspectionof205saidPropertypriortoclosingtoinsurethaallappurtenancesandappliancesincludedinthesaleremainonthe206rpartyCommercialBuySallPage4of7BuyersInitialsSellersInitialsproducadwithZipFormTbyREFormsNetLLC18025FiReenMileRvadClintonTownshipMichigan48tl3581H13839805Mnndcvillcto34 207 NOXIOUS WEEDS DISCLOSURE Buyer of property in the State of Montana should be aware that some properties208containnoxiousweedsThelawsoftheStateofMontanarequireownersofpropertywithinthisstatetocontrolandto209theextentpossibleeradicatenoxiousweedsForinformationconcerningnoxiousweedsandyourobligationsasan210ownerofpropertycontracteitheryourlocalCountyextensionagentorWeedControlBoard211 212 MEGANS LAW DISCLOSURE Pursuant to the provisions of Title 46 Chapter 23 Part 5 of the Montana Code213Annotatedcertainindividualsarerequiredtoregistertheiraddresswiththelocallawenforcementagenciesaspartof214MontanasSexualandViolentOffenderRegistrationActInsomecommunitieslawenforcementofficeswillmakethe215informationconcerningregisteredoffendersavailabletothepublicIfyoudesirefurtherinformationpleasecontactthe216localCountySheriffsofficetheMontanaDepartmentofJusticeinHelenaMontanaandtheprobationofficers217assignedtothearea 218 219 RADON DISCLOSURE STATEMENT The following disclosure is given pursuant to the Montana Radon Control Act220MontanaCodeAnnotatedSection753606RADONGASRADONISANATURALLYOCCURRINGRADIOACTIVE221GASTHATWHENITHASACCUMULATEDINABUILDINGINSUFFICIENTQUANTITIESMAYPRESENT222HEALTHRISKSTOPERSONSWHOAREEXPOSEDTOITOVERTIMELEVELSOFRADONTHATEXCEED223FEDERALGUIDELINESHAVEBEENFOUNDINBUILDINGSINMONTANAADDITIONALINFORMATION224REGARDINGRADONANDRADONTESTINGMAYBEOBTAINEDFROMYOURCOUNTYORSTATEPUBLIC225HEALTHUNITIfthePropertyhasbeentestedforradontheSellerwillprovideacopyofthetestresultsconcurrent226withanexecutedcopyofthisAgreementIfthePropertyhasreceivedradonmitigationtreatmenttheSellerwillprovide227theevidenceofthemitigationtreatmentconcurrentwithanexecutedcopyofthisAgreement22 229 BUYERS REMEDIES 230 A If the Seller fails to accept the offer contained in this Agreement within the time period provided in the231BUYERSCOMMITMENTsectionallearnestmoniesshallbereturnedtotheBuyerBIftheSelleracceptsthe233offercontainedinthisAgreementbutrefusesorneglectstoconsummatethetransactionwithinthetimeperiod234providedinthisAgreementtheBuyermay2351DemandimmediaterepaymentofallmoniesthatBuyerhaspaidasearnestmoneyanduponthereturnof236suchmoneytherightsanddutiesofBuyerandSellerunderthisAgreementshallbeterminatedOR2372DemandthatSellerspecificallyperformSellersobligationunderthisAgreementOR2383DemandmonetarydamagesfromSellerforSellersfailuretoperformthetermsofthisAgreement239 240 SELLERS REMEDIES If the Seller accepts the offer contained in this Agreement and Buyer refuses or neglects to241consummatethetransactionwithinthetimeperiodprovidedinthisAgreementtheSellermay2421DeclaretheearnestmoneypaidbyBuyerbeforfeitedOR 243 2 Demand that Buyer specifically perform Buyers duties and obligations under this Agreement OR2443DemandthatBuyerpaymonetarydamagesforBuyersfailuretoperformthetermsofthisAgreement245 246 BUYERSSELLERS CERTIFICATION By entering into this Agreement each person or persons executing this247AgreementasBuyerorSellerrepresentsthathesheiseighteen1yearsofagearolderofsoundmindandlegally24competenttoownortransferrealpropertyintheStateofMontanaandifactingonbehalfofacorporation249partnershiporothernonhumanentitythathesheisdulyauthorizedtoenterintothisAgreementonbehalfofsuch250entity 251 252 CONSENT TO DISCLOSE INFORMATION Buyer and Seller hereby consent to the procurement and disclosure by253BuyerSellerandSalespersonsandtheirattorneysrepresentativesandotherpartieshavinginterestsessentialto254thisAgreementofanyandallinformationreasonablynecessarytoconsummatethetransactiondescribedinthis255Agreementspecificallyincludingaccesstoescrowsforreviewofcontractsdeedstrustindenturesorsimilar256documentsconcerningthispropertyorunderlyingobligationspertainingthereto 257 258 RISK OF LOSS All loss or damage to any of the abovedescribed real property or personal property to any cause is259assumedbySellerthroughthetimeofclosingunlessotherwisespecified 260 261 TIME IS OF THE ESSENCE Time is of the essence as to the terms and provisions of this agreement Commercial BuySell Page 5of 7uyersInitials Sellers Initials Produced with ZipForm by RE FormsNet LLC 18025 Fifteen Mile Road Glinion Township Michigan 48035 800 3839805 Mandeville Jo 35 262 BINDING EFFECT AND NONASSIGNABILITY The Agreement is binding upon the heirs successors and assigns of 263 each of the parties hereto however unless otherwise provided for in this agreement Buyers interest is not assignable 264 without the Sellers express written consent 265 266 ATTORNEY FEES In any action brought by the Buyer or the Seller to enforce any of the terms of this Agreement the 267 prevailing party in such action shall be entitled to such reasonable attorney fees as the court or arbitrator shall 268 determine just 269 270 COMMISSION The Sellers andor Buyers commitment to pay a commission in connection with this transaction is an 271 integral part of this Agreement 272 273 FACSIMILE The parties agree that a facsimile copy of this Agreement which contains the parties signatures may be 274 used as the original 275 276 COUNTERPARTS A copy of this document may be executed by each individualentity separately and when each has 277 executed a copy thereof such copies taken together shall be deemed to be a full complete contract between the 278 parties 279 20 ENTIRE AGREEMENT This Agreement together with any attached exhibits and any addenda or amendments signed 281 by the parties shall constitute the entire agreement between Seller and Buyer and supersedes any other written or 282 oral agreements between Seller and Buyer This Agreement can be modified only in writing signed by the Seller and 283 Buyer 284 285 EARNEST MONEY DISPUTES Buyer and Seller agree that in the event of any controversy regarding the earnest 286 money and things of value held by the Broker closing agent or any person ar entity holding such money or property 287 unless mutual written instructions are received by the holder of the earnest money and things of value Broker ar 288 closing agent shall not be required to take any action but may await any proceedings or at Brokers or closing 289 agents option and sole discretion may interplead all parties and deposit any monies or things of value in a court of 290 competent jurisdiction and may utilize as much of the earnest money deposit as may be necessary to advance the 291 cost and fees required far filing such action 292 293 ALTERNATIVE DISPUTE RESOLUTION At any time the parties may agree to submit any dispute arising out of this 294 transaction to mediation or arbitration Parties by agreement shall specify mediation OR binding arbitration The cost 295 of mediationarbitration shall be paid equally by the parties 296 297 ADDENDA ATTACHED Mandatory Mold Disclosure to be attached on all inhabitable real property along with the 298 following check all that apply 299 Sale of Buyers Property 300 Addendum for Additional Provisions 301 302 n 1031 Tax Deferred Exchange Backup Offer 303 304 305 RELATIONSHIP CONFIRMATION The parties to this agreement confirm that the real estate licensees identified 306 hereafter have been involved in this transaction in the capacities indicated below and the parties have previously 307 received the required statutory disclosures setting forth the licensees duties and the limits of their obligations to each 308 party 309 310 Llovd Mandeville N Ainsworth OfPrudential Bozeman Real Estate 311 name of licensee name of Brokerage company 312 is acting as Sellers BrokerSalesperson Dual BrokerSalesperson Statutory Broker 313 314 Llo d Mandeville N Ainsworth of Prudential Bozeman Real Estate 315 name of licensee name of Brokerage company 316 is acting as Buyers BrokerSalesperson Dual BrokerSalesperson Statutory Broker 317 Sellers BrokerSalesperson includes Sellers SubBroker or Salesperson r Commercial BuySell Page 6 of 7 uyers Initials Sellers Initials Produced with ZipFormTM by RE FormsNef LLC 78025 Fifteen Mile Road Clinton Township Michigan x8035 800 3839805 Mandcvillc Jo 36 318 BUYERS ACKNOWLEDGMENT Buyer acknowledges that heshe has examined the real and personal property that 319 Buyer enters into this Agreement in full reliance upon hisher independent investigation and judgement that prior verbal 320 representations by the Seller or Sellers agent or representatives do not modify or affect this Agreement and that by 321 signing this Agreement Buyer acknowledges having read and understand this entire Agreement 322 323 BUYERS COMMITMENT IWe agree to purchase the abovedescribed Property on the terms and conditions set forth 324 in the above offer and grant to said Salesperson until date June 26 2003 at s 00 325 am pm Mountain Time to secure Sellers written acceptance Buyer may withdraw this offer at any time prior to 326 Buyer being notified of Sellers written acceptance If Seller has not accepted by the time specified this offer is 327 automatically withdrawn 328 329 IWE HEREBY ACKNOWLEDGE receipt of a copy of this Agreement bearing myour signatures 330 331 Buyers Address i East Main City Bozeman 332 333 State MT Zip Code 59715 Phone Number 40651322303 334 t335BuyersNamePrintedcityofBozemanbLtp V So Y pyL1 336 337 Dated this Z3r ty of rl 71x3 at 5 am pm Mountain Time 338 339 34 341 guyers Signature Buyers Signature 342 343 344 OFFER PRESENTATION This offer was presented to the Sellers on 345 346 347 Date Time am pm By 348 Signature of person presenting the offer 349 350 351 SELLERS COMMITMENT IWe agree to sell and Canvey to Buyer the abovedescribed Property on the terms 352 and conditions herein above stated IWe acknowledge a receipt of a copy of this Agreement bearing myour 353 signatures and that of the Buyers named above 354 355 Sellers Address City 356 357 State Zip Code Phone Number 358 359 Sellers Name Printed John MMandevilleDonna R Mandeville 360 361 Dated this at am pm Mountain Time 3s2 3s3 3s4 365 Sellers Signature Sellers Signature 366 367 ACTION TAKEN IF OTHIR THAN ACCEPTANCE 368 369 Rejected by Seller Modified per Attached Counter 370 Sellers Initials Date Sellers Initials Date NOTE Any performance which is required to be completed on a Saturday Sunday or a Holiday can be performed on the next business day Montana Association of REALTORS 03012003 Commercial BuySell Page 7 of 7 Produced with ZipForm by RE FormsNet LLC 78025 Firieen Mile Road Clinton Township Michigan 48035 800 3839805 Mandeville Ja 37 1 II 1031 Tax Deferred Exchange Addendum Seller REALTOR OPPWI7Yt0tY 1 In reference to the BuySell Agreement between cit of Bozeman 2 Buyer and john M Mandeville Aonna R Mandeville Seller 3 dated June 18 Zoos covering the following described property 4 Redwinct Drive Bozeman 5 6 7 8 9 10 11 12 13 Buyer herein acknowledges that it is the intention of the Seller to complete an IRC Section 1031 tax 14 deferred exchange Buyer agrees the Sellers rights and obligations under this agreement may be 15 assigned to facilitate such exchange and this agreement may be part of an integrated interdependent 1B exchange agreement Buyer agrees to cooperate with the Seller in executing such documents as may 17 be necessary to enable Seller to qualify for said exchange at no additional cost or liability to Buyer 18 19 20 21 22 Seller John M Mandeville DateTime 23 24 2 26 Seller rionna R Mandeville DateTime 27 28 30 Buyer city of Bozeman DateTime 31 32 33 34 Buyer DateTime NOTE Any performance which is required to tie completed on a Saturday Sunday or a Holiday can be performed on the next business day MONTANA ASSOCIATION OF REALTORS 019902 Pntdential Montana Real Estate 1925 North 22Tx113ozeman MT 59718 Phone 46 5879566 Fax 406 5875453 Lloyd Mandeville Mandeville Produced with ZipFormTM by RE FarmsNet LLC 18025 Fifteen Mlle Road GuntonTownship Michigan 48035 800 3839805 38 RELATIONSHIPS IN REAL ESTATE TRANSACTIONS COMBINED EXPLANATION AND DISCLOSURE EWAL IIAUSNG REALTORm Definition of Terms and Description of Duties 0pP07U 1 A Seller Agent is obligated to the Seller ta 2 act solely in the best interests of the seller 3 obey promptly and efficiently all lawful instructions of the seller 4 disclose all relevant and material information that concerns the real estate transaction and that is known to 5 the seller agent and not known or discoverable by the seller unless the information is subject to confidentiality 6 arising from a prior or existing agency relationship an the part of the seller agent 7 safeguard the sellers confidences 8 exercise reasonable care skill and diligence in pursuing the sellers objectives and in complying with the 9 terms established in the listing agreement 10 fulty account to the seller for any funds or property of the seller that comes into the seller agents 11 possession and 12 comply with all applicable federal and state laws rules and regulations 13 14 A Seller Agent is obligated to the Buyer to 15 disclose to a buyer or the buyer agent any adverse material facts that concern the property and that are 16 known to the seller agent except that the seller agent is not required to inspect the property ar verify any 17 statements made by the seller 18 disclose to a buyer or the buyer agent when the seller agent has no personal knowledge of the veracity of 19 information regarding adverse material facts that concem the property 20 rr act in good faith with a buyer and a buyer agent and 21 comply with all applicable federal and state taws rules and regulations 22 23 A Buyer Agent is obligated to the Buyer to 24 act solely in the best interests of the buyer 25 obey promptly and efficiently all lawful instructions of the buyer 26 disclose all relevant and material information that concerns the real estate transaction and that is known to 27 the buyer agent and not known or discoverable by the buyer unless the information is subject to confdentiality 2 arising from a prior or existing agency relationship on the part of the buyer agent 29 safeguard the buyers confidences 30 exercise reasonable care skill and diligence in pursuing the buyers objectives and in complying with the 31 terms established in the BuyerBroker agreement 32 fully account to the buyer for any funds or property of the buyer that comes into the buyer agents 33 possession and 34 comply with all applicable federal and state laws rules and regulations 35 36 A Buyer Agent is obligated to the Seller to 37 disclose any adverse material facts that are known to the buyer agent and that concern the ability of the 38 buyer to perform on any purchase offer 39 disclose to the seller or the seller agent when the buyer agent has no personal knowledge of the veracity of 40 information regarding adverse material facts that concem the buyer 41 act in goad faith with a seller and a seller agent and 42 comply with all applicable federal and state laws rules and regulations 43 44 DUAL AGENCY IF A SELLER AGENT IS ALSO REPRESENTING A BUYER OR A BUYER AGENT IS ALSO 45 REPRESENTING A SELLER WITH REGARD TO A PROPERTY THEN A DUAL AGENCY RELATIONSHIP MAY 46 BE ESTABLISHED IN A DUAL AGENCY RELATIONSHIP THE DUAL AGENT IS EQUALLY OBLIGATED TO BOTH 47 THE SELLER AND THE BUYER THESE OBLIGATIONS MAY PROHIBIT THE DUAL AGENT FROM ADVOCATING 48 EXCLUSIVELY ON BEHALF OF THE SELLER OR BUYER AND MAY LIMIT THE DEPTH AND DEGREE OF 49 REPRESENTATION THAT YOU RECEIVE A BROKER OR A SALESPERSON MAY NOT ACT AS A DUAL AGENT 50 WITHOUT THE SIGNED WRITTEN CONSENT OF BOTH THE SELLER AND THE BUYER 51 52 I nit Montana Assoaation of REALTORS 03012003 Page 1 of 2 agency disclosure Prudential Montana Real Estate 1925 North 22ndBozeman MT 59718 Phone 406 5879566 1as 406 5875453 Lloyd Mandeville Mandeville Produced with ZipFormT d7 RE FormsNet LLC 18125 FMteen Mile Road Gtirrton Township Michigan 48035 80038398D5 39 53 A Dual Agent is obligated to a Seller in the same manner as a seller agent and is obligated tv a buyer in the 54 same manner as a buyer agent except a dual agent 55 has a duty to disclose to a buyer or seller any adverse material facts that are known to the dual agent Sti regardless of any confidentiality considerations and 57 may not disclose the following information without the written consent of the person to whom the 58 information is confidential 59 i the fact that the buyer is willing to pay more than the offered purchase price 60 ii the fact that the seller is willing to accept less than the purchase price that the seller is asking 61 for the property 62 iii factors motivating either party to buy or sell and 63 v any information that a party indicates in writing to the dual agent is to be kept confidential 64 65 A Statutory Broker is not the agent of the Buyer or Seller but nevertheless is obligated to them to 66 disclose to 67 i a buyer or a buyer agent any adverse material facts that concern the property and that are 68 known to the statutory broker except that the statutory broker is not required to inspect the 69 property or verify any statements made by the seller and 70 ii a seller or a seller agent any adverse material facts that are known to the statutory broker and 71 that concem the ability of the buyer tv perform on any purchase offer 72 exercise reasonable care skill and diligence in putting together a real estate transaction and 73 comply with all applicable federal and state laws rules and regulations 74 75 An Adverse material fact means a fact that should be recognized by a broker or salesperson as being of 76 enough significance as to affect a persons decision to enter into a contract to buy or sell real property and may be 77 a fact that 78 i materially affects the value affects structural integrity yr presents a documented health risk to 79 occupants of the property or 8D ii materially affects the buyers ability or intent to perform the buyers obligations under a proposed or 81 existing contract 82 Adverse material fact does not include the fact that an occupant of the property has or has had a communicable 83 disease or that the property was the site of a suicide or felony 4 85 Relationship DisclosureConsent 86 The undersigned Broker or Salesperson hereby discloses the relationship as checked below and the undersigned 87 Seller or Buyer acknowledges receipt of such Disclosure and consents to the relationship disclosed 88 89 Check all the Applicable Relationshipsj 9D 91 Seller Agent Buyer Agent 92 93 Statutory Broker Dual Agent by checking this box the undersigned buyer or seller consents to the licensee 94 acting as a dual representative 95 96 97 98 99 100 lO1Llo d Mandeville N Ainsworth 1D2Broker andor Salesperson Lloyd rr Mandeville Date 1 D3 r104l 1 D5 p 3 xdo3 106 Seller Buyer city of Bozeman Date 107 Page 2 of 2 agency disclosure Producetl wile ZipF6rtnTM 6y RE FormSNet LLC 18025 FdlOn MiIE R89tl ClinWn Township MiItlgan a8p35 800 389805 Mandeville 40 41 42 43 44 IlL4fliQc1IIIIIIIIlIIIjShellevVanoeCallatlnCoMTDEED1200nWARRANTYDEEDTHISINDENTUREismadeandenteredintoonthedayofjIJ2003byandbetweenJOHNMMANDEVillEandDONNARMANDEVillE1121MandevillelaneBozemanMT59715GrantorsandCITYOFBOZEMANof411EastMainBozemanMT59715GranteeWITNESSETHThattheGrantorsdobythesepresentsgrantbargainsellconveywarrantandconfirmuntotheGranteeandtoitssuccessorsandassignsforeverthatcertainrealpropertysituatedintheCountyofGallatinStateofMontanaparticularlydescribedasfollowsTRACT1ATRACT3AANDTRACT4AOFCERTIFICATEOFSURVEYNO2153SITUATEDINTHENW1AOFSECTION36TOWNSHIP1SOUTHRANGE5EASTPMMGALLATINCOUNTYMONTANAACCORDINGTOTHEOFFICIALPLATTHEREOFONFILEANDOFRECORDINTHEOFFICEOFTHECOUNTYCLERKANDRECORDEROFGALLATINCOUNTYMONTANATOGETHERWITHalltenementshereditamentsandappurtenancesthereuntobelongingorinanywayappertaining0QTHISCONVEYANCEISSUBJECTTOTHEFOllOWINGJaRealpropertytaxesandassessmentsfor2003andrealpropertytaxesandassessmentsforallsubsequentyearsb2bEasementsforutilitiesditchesstreamscanalsorroadsastheymaybelocatedgoveralongandacrossthesubjectpropertynowofrecordorapparentfromphysicalEexaminationandinspectionofthepremises0cAlloutstandinginterestsandreservationspertainingtooilgascoalandothermineralsreservedorconveyedbyGrantorspredecessorsintitleifanydFederalstateandlocallawsandregulationsincludingzoningbuildingandlanduseregulationsaffectingthepremisesifanyeMattersshownonCertificateofSurveyNos9391723and2153fRelinquishmentofaccesstoStateHighwayandoflightviewandairbydeedtotheStateofMontanarecordedFebruary61964Book144ofDeedspage583officialrecordsgTermsandConditionsoftheWaiverofAnnexationrecordedMay291980Film56Page1020officialrecordshTermsandconditionsoftheStateofMontanaDepartmentofHealthandEnvironmentalSciencesCertificateofSubdivisionPlatApprovalrecordedOctober311980Film59page495officialrecordsiDesignationofacontrolledgroundwaterareabyDepartmentofNaturalResourcesrecordedJuly271998inFilm187page2329officialrecordsjMemorandumofleasewithOptiondatedMay152000byandbetweenJohnMMandevilleandDonnaRMandevilleasLessorandWWCHoldingCoIncasLesseeH63090001SK5424wPDWarrantyDeedPage145 IIIIIIIIIIIIIIIIIIIIIIIIU1ShellevYanoeCallatlnCoMTDEED1200recordedOctober152001asDocumentNo2050420officialrecordsandonthetermsandconditionscontainedthereinandanunrecordedleasereferredtothereinkStatementofcovenantsandtheconditionsandprovisionssetforththereinrecordedJanuary92001asDocumentNo2028101officialrecordsIThetermsconditionsandprovisionsascontainedintheAgreemententitledWaterPipelineandAccessEasementandAgreementbyandbetweenJohnMMandevilleandDonnaRMandevilleandCityofBozemandatedJune132001recordedApril172002asDocumentNo2066505officialrecordsmLackofmeansofingressandegresstoapublicroadduetothelocationofarailroadrightofwaybetweenthesubjectpropertyandapubliclandandnAccessandutilityeasementoverTract1AofCertificateofSurveyNo2153dated1111yq2003andrecordedasDocumentNo2117275oftheofficialrecordsofGallatinCountyMontanaTOHAVEANDTOHOLDallandsingulartheabovedescribedpremisesuntoGranteeandtoitssuccessorsandassignsFOREVERAndtheGrantorsdoherebycovenantthattheywarrantanddefendallrighttitleandinterestinandtothesaidpremisesandtoquietandpeaceablepossessionthereofuntotheGranteeanditssuccessorsandassignsagainsttheactsanddeedsoftheGrantorsandallandeverypersonorpersonswhomsoeverlawfullyclaimingortoclaimthesameINWITNESSWHEREOFtheGrantorshaveexecutedthisinstrumentthedayandyearfirsthereinabovewrittenJ11OOHIjMMelEVILLKDONNARMANDEVILLESTATEOFMONTANAssCOUNTYOFGALLATINOnthis2sLOOyofO2003beforemetheundersignedofficerpersonallyappearedJohnrMandilleandDonnaHMandevilleknowntometobethepersonswhosenamesaresubscribedtothewithininstrumentandacknowledgedtomethattheyexecutedthesameforthepurposesthereincontainedINWITNESSWHEREOFIhavehereuntosetmyhandandofficialsealthedayandyearinttIilJmlhumentfirstabovewrittenJDJvOflAqOTARNotaPuortheStateofMontanaPrintNamenSErLrJResidingat0rcfMyCommissionExpiresI9dJ012t1OFMOtLJJIIIIIGailOHutsNotaryPublicfertt1eStteofMontanaResidingatBozenlNlMontl1aH63090001SK5424wPQMycommissionniY1hl9200ie246 mmilcTOGETHERwithalltMrenenumtgheZltamentnppartnaneeswaterliklaZlaterilitiJtothe8rwUJbeZrnttilllarlitrtthet8tatetitZeinteresttllalmandlIlHVlniLofthesaidparfjftlwfir8tparbt1Mrdll1TOHdYE4rrDTOHOLltheaboveamrwedpremwiththapprlent8aZpitiljUntotheJaittptJkoftfylIranatQilanllrla8i1foroverillIhesaidlutiAJofthoJdtforaulllIlIilt4JMiafVaMinsitammcovenantwilhthesalrZP4tmllthesecon1rJar1aJltl1dthU61anrli1tt8t1trlCttlLzfaUYezedflfflillwentISalltIIiILlIliJeonanipancesthahtrtUOOlithttndltwfuautIrttltoselltte8amelJultJlJtatnlZJLna1kfheNsatl1lH7HsatOJ8nlf1SSIIhUulnntawllrcnrthetttltosaapreuegtothearratrvothooolprtHJJJIlIS1M0foreveragainsttlMInwlutclcti11l1InZdemandIfaUpsrS01MwhonVJotJerLOJWITNESSWHEREOFthesaidpart4ofIhfirMpflrtha411IonIQtQlLUlIran4MarIhayrLlflraboooriUonZp71tt2JrsoSAADIVNPRCfekilJJ60hitcidZE2di1eklZJdJl1dteotJLkpnuuunuCXNO7LElDcrJ4ElN147 48 49 50 MONTANA COMMUNITY DEVELOPMENT BLOCK GRANT ECONOMIC DEVELOPMENT PROGRAM 2011 APPLICATION GUIDELINES FOR PLANNING GRANTS MONTANA DEPARTMENT OF COMMERCE Dore Schwinden Director Andy Poole Administrator Business Resources Division Karyl Tobel Assistant Division Administrator Business Resources Division Nancy Guccione Section Manager Nick Rich Program Specialist Debra Demarais Program Specialist 301 South Park Avenue P.O. Box 200505 Helena, Montana 59620-0505 Phone: (406) 841-2744 Fax: (406) 841-2731 Website: http://cdbged.mt.gov TDD: (406) 841-2702, or Montana Relay Service: 711 Effective April 2011 51 April 2011 2 MONTANA DEPARTMENT OF COMMERCE COMMUNITY DEVELOPMENT BLOCK GRANT ECONOMIC DEVELOPMENT PROGRAM APPLICATION GUIDELINES FOR 2011 PLANNING GRANTS A. INTRODUCTION According to local officials, the costs of preparing planning studies often present a serious obstacle for communities with limited resources. The Community Development Block Grant – Economic Development (CDBG-ED) program is able to play a unique role in assisting Montana communities because of its ability to offer planning grants to local governments. The grants can be used for a variety of planning activities, including the initial planning necessary to develop a CDBG-ED project, prepare an economic development strategy, or similar planning efforts needed to help a community address critical needs. MDOC has set aside $210,000 of CDBG-ED funds from the Economic Development category for planning grants to be awarded through the 2011 CDBG-ED Program. Complete applications will be accepted on a first-come, first-served basis until all CDBG-ED planning grant funds have been committed. Applications will be recorded with date and time received by the Department and reviewed in order of receipt. Applications considered incomplete or ineligible will be returned to the applicant and their placement on the list of received applications will be removed. Applications that are not typed will not be accepted. Acceptance of an application does not imply a commitment for funding from the Montana Department of Commerce (MDOC). Applications will be reviewed for eligibility and appropriateness for expenditure of CDBG-ED program funds and compliance with state, federal and program requirements. 1. Eligible Applicants CDBG-ED planning grants are available only to eligible general-purpose local governments: counties, incorporated cities and towns, and consolidated city- county governments. Unincorporated areas are not eligible to apply directly to the Department for planning grant assistance; local governments must sponsor applications on behalf of unincorporated areas. Local governments may also apply on behalf of special purpose districts or non-profit organizations, such as a human resource development council or a local economic development organization. Only one application may be submitted by a local government to the CDBG-ED program for planning grant assistance each program year, unless there are exceptional circumstances present that would warrant an additional application for a CDBG-ED planning grant. In general, local governments with a current CDBG-ED planning grant are ineligible to apply for an additional planning grant until their current planning project is completed and the local government has received a closeout status by the Department. 52 April 2011 3 2. Required Contacts a. All local governments must show a coordinated effort with the Certified Regional Development Corporation (CRDC) in their area. A copy of a letter approved passed by a CRDC’s Board of Directors showing support for the proposed project and application must be included in each application for CDBG-ED assistance. If a local government is not able to provide this, it must include an explanation why one is not included. For information on which organizations are currently designated CRDC’s please see the following website: http://businessresources.mt.gov/CRDC/default.mcpx b. A letter from the local government’s chief elected official or executive officer sponsoring the request, with original signatures, must be included with the application. Applications submitted without documentation of sponsorship will not be accepted. 3. Eligible Activities Funds can be used for the preparation of plans, studies, analyses, or research related to economic development such as: Preparation of community needs assessments, action plans, or implementation strategies with a focus on economic development; Conducting income surveys necessary to complete a CDBG-ED application (should not be the only planning activity proposed in the application) Preparation of downtown revitalization studies, redevelopment plans, urban renewal plans, and historic preservation studies; Preparation of feasibility studies, preliminary environmental assessments for the purpose of grant applications, or Preliminary Architectural Reports (PARs) for reuse of underutilized, empty or abandoned buildings, industrial or manufacturing facilities (contact the Department for a PAR outline); Preparation of funding applications for economic development projects (should not be the only planning activity proposed in the application); Preliminary Engineering Reports (PERs), or for related activities normally associated with preliminary engineering such as surveys, studies and data collection in support of an economic development project only (contact the Department for a PER outline). 53 April 2011 4 NOTE: CDBG-ED may pay up to 50% of the cost of any approved study or plan, not exceeding the CDBG-ED award amount. Invoices will be paid up to 50% by CDBG-ED for each request for reimbursement of eligible expenses. 4. Ineligible Activities The following activities will not be funded with CDBG-ED planning grant funds: Normal operating expenses or salaries for a non-profit, for-profit entity, or inter-governmental organization; Reimbursement for activities completed prior to submittal of a 2011 CDBG-ED Planning Grant Application, and prior to completion of a 2011 planning grant contract with the MDOC; A Comprehensive Economic Development Strategy (CEDS) required for the U.S. Economic Development Administration; Activities for housing, community public facilities improvements, and preliminary engineering reports for general water, wastewater, or solid waste. For these activities please contact the following program managers for more information: Jim Edgcomb, Manager Phone: (406) 841-2785 Treasure State Endowment Program Email: jedgcomb@mt.gov Gus Byrom, Manager Phone: (406) 841-2777 CDBG Public Facilities and Housing Email: gbyrom@mt.gov 5. Maximum Grants and Required Match For 2011, CDBG-ED planning grants are available in amounts up to $25,000. Local governments must provide a match on a 1:1 basis that must be firmly committed by the time CDBG-ED funds are released. Firm loan commitments, such as funds borrowed from another state or federal program or from a local bank, are acceptable forms of match. Grants or other cash contributions from other local, state, or federal agencies or programs or private foundations are also acceptable forms of match. Funds expended after the date of application can count toward eligible match. The CDBG-ED funds requested and proposed matching funds must be described in the budget form found in Exhibit I. Grant applicants may no longer substitute “in-kind” services for cash match. In documenting a public commitment, the applicant must: a. Specify the amount and use of the funds committed by the applicant as match. b. For funds to be provided by an entity other than the applicant, provide a letter of commitment from the agency or organization involved. The commitment of funds may be made contingent on CDBG-ED funds being awarded for the proposed planning project. 54 April 2011 7 The MDOC may reduce or entirely waive the match requirement for good cause in cases where the local government can clearly demonstrate that higher financial participation is not possible. The local government applying for assistance needs to provide narrative in its application requesting a waiver of the match requirement and reasons for that request. Applicants should not assume that without a formal request for a waiver of match, and without an adequate explanation for the request, the MDOC will automatically waive the match requirement. The Director reserves the right to make a final determination of grant award and required match. B. ADMINISTRATIVE EXPENSES Applicants may request up to 5% of their total CDBG-ED request for administrative expenses directly related to the planning grant activity. Reimbursement for administrative expenses will require itemized documentation of hours worked, tasks completed, and corresponding dates. No reimbursement will be made for activities completed prior to the date of CDBG-ED funding award. A Montana Department of Commerce contract must be completed and any start-up requirements fulfilled before a request for reimbursement of eligible expenses can be made. C. CRITERIA FOR CDBG-ED PLANNING GRANT APPLICATIONS The CDBG-ED Program will use the following five criteria to evaluate planning grant proposals for potential funding. Criteria 1. Relationship to Community Planning 2. Need for Planning Activity 3. Community Efforts and Financial Need 4. Benefit to Low and Moderate Income 5. First Time Recipient  Considerations for each of the above criteria are described in the attached application form. D. PROCUREMENT OF PROFESSIONAL SERVICES If the proposed planning project will require consultant services, the applicant needs to demonstrate that it has or will assure free and open competition in the procurement of professional services, as applicable, or has a plan to ensure such competition. All State of Montana and MDOC requirements concerning procurement of professional services will apply. To be eligible for reimbursement - professional architectural, or engineering services must be procured in compliance with Section 18-8-201, MCA. In order to ensure that expenditures will be eligible for reimbursement, contact the CDBG- 55 April 2011 8 ED program for guidance BEFORE procuring any professional services or incurring any costs for which the local government may later request reimbursement. E. APPLICATION PROCESS The planning grant guidelines and application form are available on the MDOC website at: http://cdbged.mt.gov or obtained by email from: jucarlson@mt.gov. Applicants must submit a completed application form with supporting documentation. An original and four copies of the application are required and must be submitted to: Nancy Guccione CDBG-ED Program Business Resources Division Montana Department of Commerce 301 S. Park Ave. PO Box 200505 Helena, MT 59620-0505 Email: nguccione@mt.gov Alternative accessible formats of this document will be provided upon request. If you need this document in an alternative format, such as large print, Braille, audio tape, or computer diskette, please contact the Montana Department of Commerce Business Resources Division at (406) 841-2734. 56 April 2011 9 2011 PLANNING GRANT APPLICATION FORM MONTANA COMMUNITY DEVELOPMENT BLOCK GRANT ECONOMIC DEVELOPMENT PROGRAM MONTANA DEPARTMENT OF COMMERCE The Applicant hereby certifies that: ACCEPTANCE OF CDBG-ED PROGRAM REQUIREMENTS It will comply with all applicable parts of Title I of the Federal Housing and Community Development Act of 1974, as amended, which have not been cited herein as well as with other applicable federal laws and regulations. It will comply with all requirements established by the Montana Department of Commerce and applicable State laws, regulations, and administrative procedures. It accepts the terms, conditions, selection criteria, and procedures established by the Montana Community Development Block Grant - Economic Development (CDBG-ED) Program and expressly waives any statutory or common law right it may have to challenge the legitimacy and propriety of these terms, conditions, criteria, and procedures in the event that it is not selected for an award of CDBG-ED funds. APPLICANT - CERTIFICATION To the best of my knowledge and belief, the information provided in this application and in the attached documents is true and correct. Name________________________________________ (Typed Name) Title_________________________________________ (Chief Elected Official) Signature_____________________________________ Date_________________________________________ Name of Local Government Submitting this Application______________________ Phone Number_________________________________ Mailing Address of Local Government Senate District Number________________________ House District Number_________________________ 57 April 2011 10 Federal Tax ID # for Local Government____________________________________ DUNS # of Local Government Local Government CCR/CAGE Code Name of Assisted Business (if applicable)__________________________________ Address of Assisted Business_______________ ___________________ DUNS # of Assisted Business____________________________________ Authorization of Release of Information The Applicant (Local Government) which has ultimate responsibility for submission of this application designates the following party as the authorized contact for additional information and/or documentation regarding this application for CDBG-ED planning grant funding: Name__________________________________________ Title___________________________________________ Mailing Address_________________________________ _______________________________________________ _______________________________________________ Email Address__________________________________ Phone Number__________________________________ Fax Number____________________________________ Exhibit I (Budget Form): Amount of CDBG-ED Funds Requested $_________________________________ Fill out exhibit and submit with application Exhibit II (Implementation Schedule): Fill out exhibit and submit with application ▻Each CDBG-ED Planning Grant applicant is required to submit a detailed description of the proposed project, and detailed response to each of the five criteria. Applicants must attach pertinent supporting documentation, as applicable. 58 April 2011 11 A. DESCRIPTION OF PROPOSED PLANNING PROJECT a. Provide a detailed description of the proposed planning project. B. CRITERIA AND CONSIDERATIONS Criterion 1. RELATIONSHIP TO COMMUNITY PLANNING a. Discuss the community’s overall planning efforts, and describe what tools the community has used to determine community development goals. b. Discuss how the proposed planning project is related to the community’s planning efforts and economic development goals. It is a goal of the Montana CDBG-ED Program to assist local governments with the management of community development, growth, and change consistent with the national and state objectives of the CDBG-ED program. A key related element is to assist communities in assessing their overall community development needs, including the needs of low and moderate-income persons, (and to assist local governments in preparing specific plans and activities to meet the identified needs). Criterion 2. NEED FOR PLANNING ACTIVITY a. Provide a discussion on the need for the planning activity to be addressed with CDBG-ED planning grant funds, time sensitivity issues, urgency for activity, or other issues that determine the priority of the planning activity over other potential planning activities. b. If the planning activity is related to a business expansion or retention issue, applicants need to provide discussion on the number of jobs it anticipates would be created or retained as a result of the proposed planning project. Criterion 3. COMMUNITY EFFORTS AND FINANCIAL NEED a. Provide a discussion on past efforts to address community development needs with local resources. b. Describe current efforts to secure assistance from all appropriate local, state, and federal public and private sources potentially available to assist in financing the proposed planning activity. c. Explain and provide documentation as necessary that demonstrates why the request for a CDBG-ED Planning Grant is necessary and reasonable, relative to the applicant’s financial capability. 59 April 2011 12 d. Explain the status of matching funds and dates when funding will be available for the proposed project. Given the high demand for planning grant assistance and the limited available funding, it is important that each applicant request only the difference between the total cost of a project and the amount of funds that the applicant can reasonably provide. Unless an applicant is determined to be eligible for a waiver of the match requirement, each applicant is expected to contribute a reasonable share of project costs and to request the least amount of CDBG-ED funds necessary to complete the planning project. Discussion should provide complete information documenting the existence of financial need for the CDBG-ED planning grant funds. Documentation can be provided according to individual community circumstances, but should include specific information such as an overall description of the local government’s revenues and budget and specific details describing why the local government (and non-profit agency, organization, or assisted business, if applicable) lacks the financial resources to undertake the planning activities itself, without CDBG-ED assistance. Providing general statements indicating that a community simply does not have sufficient revenues is not an adequate explanation for the need for CDBG-ED assistance. In addition, the MDOC will also evaluate the proposed budget and budget narrative to determine if the proposed costs for the planning project are adequately explained and justified, and are reasonable and appropriate. Criterion 4. BENEFIT TO LOW AND MODERATE-INCOME PERSONS a. Provide discussion on the degree to which the planning activity has the potential to benefit low and moderate-income (LMI) persons in the long term, such as, the creation of jobs for LMI persons. For additional information regarding LMI benefit, see the CDBG booklet called Documenting Benefit to Low and Moderate Income Persons. Criterion 5. FIRST TIME RECIPIENT The MDOC will give priority to those local governments or unincorporated communities that have submitted a complete application, proposed a viable project, and have never applied for and/or received CDBG-ED funding in the past. C. APPLICATION CHECKLIST (please review and check for a complete application): 1. Is the application submitted by a local government? __________Yes __________No (For a description of eligible applicants, see these guidelines A.1.) 2. Is the proposed planning activity an eligible activity as described under these guidelines? __________Yes __________No 60 April 2011 13 (For a description of eligible activities, see these guidelines A.3.) 3. Is the application submitted on behalf of a non-profit entity, inter-governmental organization, or unincorporated area? __________Yes __________No 4. Is there a letter from the local government stating sponsorship and support for the proposal included in the application? __________Yes __________No 5. Are there letters of commitment for project funding to be provided by the local government, non-profit, or other inter-governmental organization included in the application? __________Yes __________No 6. If other funds are not proposed to meet the matching funds requirement, has local government provided a formal request for a waiver of the match requirement in the application? __________Yes __________No 7. Is there a detailed description of the activity proposed for the application? __________Yes __________No 8. Is there detailed narrative that responds to each of the five criteria as defined in these guidelines? __________Yes __________No 9. Is the project budget form (Exhibit I) filled out with narrative explaining each line item? __________Yes __________No 10. Is the implementation schedule (Exhibit II) filled out and modified to fit the project? __________Yes __________No 11. Is there documentation showing local support, public outreach, or other pertinent information to support what is stated in the application? __________Yes __________No 61 April 2011 14 EXHIBIT I CDBG-ED PLANNING GRANT PROJECT BUDGET Budget for CDBG-ED Planning Grants Date: SOURCE: CDBG-ED SOURCE: Match (Identify) SOURCE: TOTAL Professional Services Other TOTAL PLANNING PROJECT $ $ $ $  Note: The budget must be accompanied by a narrative that describes the CDBG-ED funds requested and local matching funds to be supplied by the applicant of local, state, federal, or private funds involved. The budget justification must thoroughly explain the rational or basis for all proposed budget costs, by line item. 62 April 2011 15 EXHIBIT II CDBG-ED PLANNING GRANT SAMPLE PROJECT IMPLEMENTATION SCHEDULE TASK MONTH, YEAR PROJECT START UP Preparation of MDOC Contract PROCUREMENT OF PROFESSIONAL ASSISTANCE 1 Submit Request for Proposals (RFP) to MDOC for approval, if required 2 Publish RFP Select professional Execute agreement with professional PROJECT IMPLEMENTATION Prepare draft plan/report Submit interim drawdown of funds Public review and comment Finalize plan/report PROJECT CLOSEOUT Submit final deliverable Submit final drawdown 1 Including professional engineers, architects, and community development consultants, etc. 2 Architectural and engineering services must be procured in compliance with Section 18-8-201, MCA. 63 City of Bozeman CDBG ED Planning Grant Proposal: September 2, 2011 Page | 1 /A. Description of Proposed Planning Project: City of Bozeman—Department of Natural Resources and Conservation Introduction: Mandeville Farm is an 85.35-acre tract zoned for industrial development by the City of Bozeman. This parcel is adjacent to and north of Interstate 90 and is contiguous with the ‘Mandeville Property’ an even larger tract of school trust lands owned by the State of Montana. The Mandeville Property contains 190 acres of developable land and is managed by the Department of Natural Resources and Conservaiton. In addition to accessing I-90 at the 7th Avenue and 19th Avenue interchanges, both parcels have access to east/west rail service (Burlington Northern) and are located within minutes of Gallatin Field Airport (the State’s busiest airport in terms of passenger departures and arrivals and will soon include a customs agent). The need to coordinate land use planning for these parcels is undisputed; however, the highest and best use of either parcel may be significantly enhanced by combining the two parcels within a comprehensive planning and development strategy. Intuitively, this approach provides the highest return on investment for both the State of Montana and the City of Bozeman. Product/Conclusion: At the end of the land use planning and development process performed by the consultant as mentioned below, the end product should be an outline for joint development of the City and State parcels. Purpose: The purpose of this project is to improve the quality of life for Montana residents by determining the highest and best use of contiguous parcels described above, and developing a coordinated approach for developing these parcels consistent with existing economic development plans and the highest and best use. In addition, for the state- owned Mandeville Property, there is a constitutional responsibility of securing full market value for trust land beneficiary for the use of the tract. Goal: The goal of this project is to develop a comprehensive agreement between City and DNRC for the land use planning and development of contiguous parcels located north of Interstate 90 between 7th Avenue and 19th Avenue, within the City of Bozeman. 64 City of Bozeman CDBG ED Planning Grant Proposal: September 2, 2011 Page | 2 Approach: A. Upon notice of funding award, authorized representatives from the City and DNRC will develop a Request for Proposals for a qualified consultant to complete the following tasks: a. Consultant services shall be procured through a free and open competition in full compliance with City and State procurement policies. b. Assigned tasks will include: i. Identify any and all legal or administrative barriers to developing and implementing a joint land use and development plan and provide options for mitigating these barriers. 1. Determine potential for an expedited permit process specific to the project area by the City. 2. Identify any potential conflicts between the City and DNRC due to differences in ‘land title,’ encumbrances, etc. that may be exacerbated or diminished through joint planning and development; and provide strategies for mitigating these conflicts. ii. Using existing documentation and previously completed studies, conduct preliminary environmental assessment identifying barriers to development, especially to the extent these barriers are exacerbated or diminished through joint land use planning and development. iii. Coordinate with local, regional and state economic development entities (Prospera, TechRanch, MMEC, Port of Montana, etc.) to identify economic development strategies for the parcels with the highest potential for success (e.g., cluster development, establish Foreign Trade Zone). iv. Coordinate with local, regional and state human and community service providers (e.g., HRDC, Bozeman Job Service, Montana State University, Gallatin College) to determine best approaches for enhancing the economic quality of life for area residents, especially low and moderate income families (e.g., determine potential for affordable housing development within the project area, job skills training). v. Identify existing commercial and industrial enterprises with the potential for benefiting from the development of the project area and coordinate with the private sector for determining infrastructure requirements and development priorities. c. Conduct cost/benefit analyses for interesting approaches identified during the completion of Tasks b i-v. 65 City of Bozeman CDBG ED Planning Grant Proposal: September 2, 2011 Page | 3 d. Consultant’s final report and recommendations will be reviewed by the City and DNRC in consultation with MDOC. e. Based on the review (Item A.c), a draft agreement will be developed and submitted to DNRC and the City for consideration and modification. B. By the end of the 10th month of this project, the City and DNRC will enter into a formal agreement, substantially based on the results of the consultant study described above, for the development of the contiguous parcels. C. By the end of the 12th month of this project, and consistent with federal and State funding cycles, the City will develop and submit requests for funding for the implementation of planning and development tasks stipulated in the Agreement (Item B) consistent with mutually agreed upon priorities (also described in the Agreement). /B. Criteria and Considerations: Criterion 1. Relationship to Community Planning. The City of Bozeman’s most recent Economic Development Plan was adopted in 2009. This plan was developed by Prospera Business Network. The methodology included interviews with a broad spectrum of business and community leaders and a community survey. Planning was guided by an advisory committee. In addition, the City has a Planning Board comprised of community members and all meetings are open to the public. The most recent Community Development Plan was also adopted in 2009. The City of Bozeman is fully committed to transparency and public participation at all levels of local government, especially planning. As described above, economic development goals are determined by the community and all planning efforts actively engage the entire community. The 2009 City of Bozeman Economic Development Plan lists the following goals: 1. Support the expansion and retention of existing businesses and economic clusters that will continue to strengthen and diversity the economy and create higher paying jobs in Bozeman. 2. Maintain and upgrade infrastructure to support current and future needs of business. 3. Support education and workforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business. 4. Leverage local, state and federal economic development resources to enhance economic growth in Bozeman. 5. Creative a more collaborative and effective working partnership between the business community and the City of Bozeman… 66 City of Bozeman CDBG ED Planning Grant Proposal: September 2, 2011 Page | 4 6. Maintain the high quality of life that is considered an important asset to the business community. The 2009 Community Development Plan has two goals with multiple objectives. These goals are: a. Growth Management: Promote the unique history and character of Bozeman by preserving, protecting, and enhancing the overall quality of life within the planning area. b. Implementation: Ensure that all regulatory and non-regulatory implementation actions undertaken by the City to achieve the goals and objectives of this plan are effective, fair, and are reviewed for consistency with this plan on a regular basis. The City’s planning efforts for Mandeville Farm are fully consistent with the goals listed above. Since the City acquired the property in 2003, determining and developing the highest and best use of the parcel remains among the City’s highest priorities. In 2006, the City designated Mandeville Farm a Tax Increment Financing Industrial District and completed a planning study. The recent Great Recession placed many of these plans on the backburner as the City grappled with the need to provide basic services and retain existing businesses with substantially reduced revenues. As a result of discussions with the Department of Natural Resources regarding joint planning and development of the State-owned and City-owned contiguous parcels, this effort is rejuvenated and the City looks forward not only to the completion of the planning phase, but implementation of development. Criterion 2. Need for Planning Activity: Joint planning and development of contiguous parcels totaling 275 acres in size between the City and DNRC is a new and exciting opportunity for both the State and the City. The two entities have established an agreement in principle to proceed with the project and have determined to share the cost as well as the benefits of this initiative. In recognition of the uniqueness of this opportunity, application for an Economic Development Planning Grant under the Community Development Block Grant Program through the Montana Department of Commerce was determined the best approach for acquiring the resources and support necessary to complete project planning. This shared burden/shared benefit model will be sustained throughout project development and will substantially enhance the total benefit to all citizens of Montana. The potential number of jobs created through build-out of this parcel is difficult to estimate. Depending on the development model jointly adopted by the City and DNRC, potential job creation will be measured in the hundreds if not the thousands; and almost 67 City of Bozeman CDBG ED Planning Grant Proposal: September 2, 2011 Page | 5 all of these jobs will be permanent, family-wage jobs. Significantly, this project is ideal for stimulating a resurgence of the construction industry throughout southwestern Montana. Criterion 3. Community Efforts and Financial Need: The City of Bozeman has a stellar track record of committing local resources to addressing community development. The City actively supports the Prospera Business Network and TechRanch (non-profit entities providing job incubator and related services), Gallatin College (which will provide enhanced workforce training), and numerous business associations. Local resources are currently stretched to the breaking point and additional financial support is needed to move the Mandeville Farm project forward, especially considering the unanticipated opportunity of working with DNRC. This opportunity not only expands the economic potential of this project, it will also facilitate acceleration of the development phase. Combining City and State resources and focusing them on a common goal will leverage private investment capital and encourage entrepreneurs to look favorably on locating new business to the site. During the completion of the study proposed in this request, the City will begin preparing ‘next step’ proposals to other entities such as the Economic Development Administration, Big Sky Economic Development Trust Fund, USDA and similar resources. The City’s commitment of resources to this project ($12,500 in matching funds) is derived from the City’s General Fund. Eventually, the Mandeville Farm TIIFD will be able to fund planning and development projects specific to the project site but, for now, every taxpayer in Bozeman is being asked to support this project. Similar, broad- based funding is anticipated through the DNRC share of the matching requirements. In other words, this is a project paid for by Montana citizens for the benefit of Montanans. The total project cost of $50,000 ($25-K from MDOC and $25-K in matching funds) is reasonable to achieve the goals described above. In the event proposed costs in response to the request for proposals exceed the project budget, tasks will be ‘value engineered’ in order to achieve the primary goal of providing an outline for the joint development of the City and State parcels. This ‘outline’ will be the basis of a formal agreement for the development of the property. Matching funds will be provided by the City and DNRC upon receipt of notification of funding award by MDOC. Each entity will commit $12,500. Recently, the City was forced to increase sewer and water rates due to projected budget shortfalls, and also reduced the number of FTE’s on city payroll. These are extremely difficult choices for any City government and the City’s commitment of $12,500 to this project demonstrates the importance of this initiative to the long-term economic health of the community. 68 City of Bozeman CDBG ED Planning Grant Proposal: September 2, 2011 Page | 6 Criterion 4. Benefit to low and Moderate-Income Persons The consultant’s scope of work includes determination of the efficacy of designating a portion of the project site for affordable housing. This determination will be based on need and the results of a cost/benefit analysis. Considering the high rate of population growth within the City and throughout Gallatin County, need may be justified. In the event a housing component is included in the proposed project, low and moderate- income families will benefit directly from this project. Regardless of the outcome of the housing analysis, many of the jobs created by this project will benefit low and moderate-income individuals. Depending on sources of funding, the City will work with DNRC and other state agencies to encourage employment of low/mod-income people and other underserved populations. Criterion 5. First Time Recipient. Yes. Exhibit 1 City of Bozeman CDBG-ED Planning Grant Proposal Project Budget: August 29, 2011 Source: CDBG- ED Source: City of Bozeman Source: DNRC Total Professional Services $25,000 $12,500 $12,500 $50,000 Other 0 0 0 0 Total Planning Project $25,000 $12,500 $12,500 $50,000 Budget Justification: DNRC and the City of Bozeman will obligate matching funds ($12,500 each for a total of $25,000) upon receiving notice of funding award. The total project cost of $50,000 is reasonable and necessary to achieve the project’s goal and objectives. No indirect or administrative costs are charged to this project. Project administration and other indirect costs will be met by the City of Bozeman. Substantial time on task contributions by City and DNRC staff will also be provided at no cost to the funding agency. The ‘professional services’ rate of $80/hour is based on recent contracts between the City and professional services providers (excluding A&E providers). This rate reflects a 69 City of Bozeman CDBG ED Planning Grant Proposal: September 2, 2011 Page | 7 ‘team’ of professional and para-professional service providers (principal investigator to administrative support). Estimated hours (625) are based on project completion within 6-10 months using a 2-3 staff working 25% to 50% of their total time on tasks specific to this project. As soon as notice of funding is received, City and DNRC staff will meet to develop a comprehensive scope of work and request for proposals consistent with the needs of the project and expectations of the City and State. Some tasks listed below may be revised and additional tasks added as a result. Consultant services will be procured through a fair and open process fully consistent with City and State procurement policies. Estimated time on task is: • Identify legal and administrative barriers: 80 hours • Environmental review/mitigation: 100 hours • Economic development coordination: 100 hours • Community service/resources coordination: 100 hours • Determine infrastructure requirements: 120 hours • Cost/benefit analyses with recommendations: 125 hours • Total time on task (@ $80/hr): 625 hours Total project cost: $80/hr X 625 hours: $50,000 (hourly rate and time on task includes all ancillary costs such as travel, reproduction, communications, etc. incurred by consultant(s)) 70