HomeMy WebLinkAboutOrdinance 1836, Buy Sell, Parking Garage Office Space_4
Memorandum to City Commission: Final Adoption of Ordinance 1836 Page 1 of 2
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission.
FROM: Scott Lee, Parking Manager.
SUBJECT: Final Adoption of Ordinance 1836 – an Ordinance ratifying the signature
of the City Manager entering into a Commercial Buy-Sell Agreement for the sale of vacant
office space on the second floor of the Bridger Park Downtown parking garage. MEETING DATE: October 8, 2012.
AGENDA ITEM TYPE: Consent (4/5 vote of the Commission required for final adoption
of Ordinance 1836)
RECOMMENDATION: I recommend the Commission give final approval to Ordinance 1836.
SUGGESTED MOTION: If the item is removed from consent, I suggest the following motion: Having conducted a public hearing on September 24, 2012, considered written and spoken public testimony, and based on the findings contained in the September 14, 2012 staff
memorandum, Ordinance 1836 and findings articulated by the Commission, I hereby move to: (i)
finally adopt Ordinance 1836 ratifying the signature of the City Manager entering into a
Commercial Buy-Sell Agreement for the sale of vacant office space on the second floor of the Bridger Park Downtown parking garage.
BACKGROUND:
The action on final adoption of Ordinance 1836 is the result of efforts on the part of the City to
obtain a buyer for the office space located on the second floor of the Bridger Park garage on East Mendenhall Street as directed by adopted motion of the City Commission on June 4, 2012.
The Agreement between the Federal Transit Authority and the City for grant monies related to
the construction of the Bridger Park does not restrict the sale of this office or other commercial
spaces within the physical structure of the facility.
If the Commission finally adopts Ordinance 1836, upon the expiration of 30 days after approval
of final adoption, the City Manager will be authorized to conclude the sale. Closing will then
take place according to the terms of the Commercial Buy-Sell Agreement.
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Memorandum to City Commission: Final Adoption of Ordinance 1836 Page 2 of 2
ALTERNATIVES: As determined by the City Commission.
FISCAL EFFECTS: The purchase price for the sale is 125,000.00 cash at closing. In addition to the purchase price, Buyer has agreed to pay one-half of the cost of the performed appraisal, or $750.00 additional. The City will obtain approximately $112,562.50 at closing. Ordinance 1836
directs the proceeds from the sale to be placed into the Parking Enterprise fund and assigned to
capital replacement and long term maintenance.
ATTACHMENTS:
• Ordinance 1836 for final adoption.
• For more information about materials included with the original Memorandum to the
Commission dated September 14, 2012:
http://weblink.bozeman.net/WebLink8/0/doc/49719/Electronic.aspx
Report compiled on: September 28, 2012
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ORDINANCE 1836
Page 1 of 4
ORDINANCE NO. 1836
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RATIFYING THE SIGNATURE OF THE CITY MANAGER ENTERING INTO
A PURCHASE AND SALE AGREEMENT FOR THE SALE AND CONVEYANCE OF A
1000 SQUARE FOOT UNFINISHED VACANT OFFICE SPACE ON THE SECOND FLOOR
OF THE BRIDGER PARK PARKING GARAGE, PROVIDING CONTINGENCIES AND AN
EFFECTIVE DATE.
WHEREAS, the City of Bozeman owns property located on the second floor of the
Bridger Park Parking Facility located at 26 East Mendenhall Street; known as the vacant
unfinished office space on the second floor of the Bridger Park multi-modal parking facility,
hereinafter referred to as the “Property”; and
WHEREAS, the City is desirous of selling the Property; and
WHEREAS, Section 2.11 of the Bozeman City Charter requires adoption of an
ordinance when the City “convey[s]… or authorize[s] the conveyance… of any lands of the
city”; and
WHEREAS, Section 2.05.030 of the Bozeman Municipal Code (BMC), adopted
pursuant to Ordinance 1658, grants the City Commission the jurisdiction and power to sell any
real property, however acquired, belonging to the City that is not necessary to the conduct of city
business or the preservation of property; and
WHEREAS, Section 2.05.040, BMC, adopted pursuant to Ordinance 1713, states,
“When the City Commission, after a public hearing, has determined by a two-thirds vote of all
the members, that any real property owned by the city is not needed for public use, or that the
public interest may be furthered, the City may sell such property by… negotiated sale…,
subject… to a minimum price established through an appraisal that certifies the value of such
property…” and
WHEREAS, Section 2.05.040, BMC, also states, “Notice of sale… shall be published as
provided in MCA 7-1-4127”; and
WHEREAS, Section 2.05.050.B, BMC, adopted pursuant to Ordinance 1658, states, “…
a sale may not be made for less than 90% of the appraised value”; and
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ORDINANCE 1836
Page 2 of 4
WHEREAS, Section 2.05.060, BMC, adopted pursuant to Ordinance 1658, states, “…
no sale of real property shall be made of any property unless it has been appraised within one
year prior to the date of the sale”; and
WHEREAS, on June 4, 2012, the Bozeman City Commission, by a vote of 4 to 0,
determined the Property was no longer necessary to the conduct of city business; and
WHEREAS, Keith O’Reilly, MAI, a General Certified Appraiser from Bridger
Appraisal, Inc., on July 12, 2012, appraised the value of the Property at $127,000.00; and
WHEREAS, on July 11, 2012, the Bozeman City Manager signed an agreement for the
sale of the Property for $125,000.00 cash subject to several contingencies including appraisal,
creation of a condominium unit through an exemption from subdivision review, inclusion of the
condominium unit into the Mendenhall Marketplace Condominiums and ratification of the
agreement by ordinance of the Commission; and
WHEREAS, the agreement to sell the Property is attached to this Ordinance as
Attachment A; and
WHEREAS, should the Bozeman City Commission provisionally adopt this ordinance
ratifying said agreement by no less than a two-thirds vote of its total membership, notice of
provisional adoption of this ordinance shall be published in compliance with Sect. 7-1-4127,
MCA, prior to final adoption.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
Section 1
The Bozeman City Commission hereby ratifies the attached agreement for the sale of the
Property.
By accepting this offer the Commission authorizes, subject to completion of the contingencies as
stated in the attached Commercial Buy - Sell Agreement and those contingencies listed below,
the conveyance of the fee title to the property to the purchaser:
1. The sale price shall be one hundred twenty five thousand dollars and zero cents
($125,000.00).
2. The purchaser shall pay cash to the City at closing.
3. The Commission’s ratification of the City Manager’s signature shall not be effective until
30 days after final adoption of this ordinance; as such, the Purchase and Sale Agreement
shall not be binding on the City of Bozeman until such time and until completion of all
included contingencies.
4. The sale shall close as stated in the agreement.
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ORDINANCE 1836
Page 3 of 4
5. Proceeds of the sale shall be deposited in the parking enterprise fund and assigned to
capital replacement and long term maintenance.
Section 2
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances
of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full
force and effect.
Section 3
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provision of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 4
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 5
Codification Instruction.
The provisions of this Ordinance shall not be codified in the Bozeman Municipal Code;
rather, this Ordinance shall be maintained by the City Clerk in an indexed file of all Ordinances
not to be codified.
Section 6
Effective Date.
This ordinance shall be in full force and effect 30 days after final adoption.
PROVISIONALLY PASSED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the 24th day of September, 2012.
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ORDINANCE 1836
Page 4 of 4
____________________________________
SEAN A. BECKER
Mayor
ATTEST:
_______________________________
STACY ULMEN, CMC
City Clerk
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the 1st day of
October, 2012. The effective date of this ordinance is October 31, 2012.
_________________________________
SEAN A. BECKER
Mayor
ATTEST:
_______________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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