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HomeMy WebLinkAboutRes1988-076 . . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 88-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE SALE OF ADDITIONAL GATEWAY SUBDIVISION LOTS AND MODIFICATION OF OPTION AND PURCHASE AGREEMENT WITH CLINT D. HALL, DBA HALL QUALITY BUILDERS WHEREAS, the city previously authorized the sale of seventeen (17) lots within the Gateway Subdivision to Clint D. Hall, dba Hall Quality Builders, through Resolution No. 88-061, approved by the City Council on May 26, 1988; and WHEREAS, the inclusion of a second builder with similar agreement terms might place a glut of housing on the market and put untenable restraints on construction during the winter months; and WHEREAS, negotiations involving the city, Hall Quality Builders and the second builder (METCO/TREND, JV) divided the available smaller lots between the builders with Dora Way separating the two projects; and WHEREAS, such an agreement places an additional four lots within the area for Hall Quality Builders and spreads the required performance milestones over a longer period of time; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The city manager is authorized to execute an addendum, attached and incorporated herein by reference, to the Option and Purchase Agreement approved by the Seward City Council on May 26, 1988. Section 2. A negotiated sale of lots and the waiving of appraisal in accordance with Section 2-85 of the City Code is hereby found to be in the public interest. Section 3. This resolution shall take effect thirty (30) days following its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 13 day of June , 19~. -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 88-076 AYES: NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA ~ ,!:~. ~-<<4~ HA~RY E ESELER, MAYOR DUNHAM, GIESELER, HILTON, MEEHAN, NOLL & SIMUTIS NONE O'BRIEN NONE APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN, Attorneys for the City of Seward, AK (Ci ty Seal) N 11/~ Fred B. Arvidson City Attorney -2- RESOLUTION NO. 88-076 Attachment . OPTION AN> PUIQiASE AGREEMENT ADDENll)4 On this " ..." day of ._.n ... ..""....."..' 1988, the City of Seward ("City") and Cl int D. Hall d/b/a Hall Qual ity Builders ("Builder") entered into an Option and Purchase Agreement for certain lots within Gateway Subdivision. By this Addendum both parties mutually agree to amend that Agreement as follows: . Within ~~.c;:t'.QnJ. delete the description of property and, in its stead, include the following description: "Lots 1 through 19, Block Two (2), and Lots 5 and 6, Block Six (6), all located within Gateway Subdivision, Plat No. 84-18, recorded in the Seward Recording District, Third Judicial District, State of Alaska." . Within S.~kt1QI).~ delete the second sentence and, in its stead, include the following: . "The entire purchase price for each lot shall be due and payable at first draw of construction financing, or upon closing of the sale of residence constructed thereon by Builder; and, in any event, the entire purchase price of each lot, on which substantial construction has occurred, shall be payable immediately upon termination of this Agreement." . Within ~~c.:t.19.1).3 delete the first sentence and, in its stead, include the following: "Builder agrees to have at least five (5) single-family homes under substantial construction by August 1, 1988." . Within ~~t.1Q.o. 8.c, delete "ten (10)" and, in its stead, include "five (5)". Renumber Sections 9 through 15 as Sections 10 through 16. . . Insert the following as ~~k~1on 2: "9. ~~&Q[l(t j:~t~n.~.f9.1J.. Qf t.b.1~ Aqr.~.E;lrrl\3.1)t. Upon the occurrence of all of the following events this Agreement may be extended for a time beyond April 1, 1989: . a. Builder has complied with all the terms and conditions of this Agreement, including, but not limited to, Builder's obligations to have completed the construc- tion of homes in accordance with Paragraph 7 of this Agreement; and CITY OF SEWARD, ALASKA OPTION AND PURCHASE AGREEMENT ADDENDUM - CLINT D. HALL RESOLUTION NO. 88-076 Attachment . b. By March 1, 1989, Builder has given City written notice of Builder's desire to extend this Agreement; and c. Builder has an additional eleven (11) single- family family residences under substantial construction prior to September 30, 1989; and d. The City Council of the City of Seward has determined by Resolution adopted prior to March 31, 1989, that it is in the public interest to continue this Agreement. In determining the public interest the City Council shall have absolute, uncontrolled discretion and may refuse to extend this Agreement for any reason whatsoever, including, but not limited to, termination of the Extension Agreement with Alliance Bank, performance of Builder under this Agreement, market conditions in Seward, budget constraints or objectives, and other factors as the Council may determine relevant to the public interest; and e. City and Builder have obtained the written con- sent of Alliance Bank to an amendment of the Extension Agreement upon terms and conditions satisfactory to both City and Builder. . In the event this Agreement is extended beyond April 1, 1989, City will not be responsible for any monthly payments or increase in principal amount payable to All iance Bank required under the extension." This Agreement Addendum shall not be binding or effective until properly executed and delivered by City and Builder. DATED this ~"" ...... day of." . ,". ..... .'. ~. . ,~ , . ,. ~.,. . 1r..I 1988. CITY: BUILDER: CITY OF SEWARD, ALASKA CLINT D. HALL d/b/a HALL QUALITY BUILDERS DARRYL 'sCH"AEFERM.EYER;' C'i'ty" 'M'~~;;g~~' C'LINT' '6'~"HAi.'C, "O:;~e'r . .. ... . -2- CITY OF SEWARD, ALASKA OPTION AND PURCHASE AGREEMENT ADDENDUM - CLINT D, HALL RESOLUTION NO. 88-076 Attachment . ATTEST: APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN Attorneys for the City of Seward i.'INDA"s". MURPHV:"C1'ty' ci ~'rk"""" ....... il <City Seal) I ! FRED s:"AFtvI[)SON;' city' Att~~'n~y" ......, STATE OF ALASKA ss. ! THIRD JUDICIAL DISTRICT . THIS IS TO CERTIFY that, on this............ day of _ . ...... .......' 1988, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared ..... ..._. ........H.._..... .... .... .....H". ... ...... and LINDA S. MURPHY, known to me and to me known to be the City Manager and City Clerk of the City of Seward, and known to be the individuals named in and who executed the foregoing document, and they acknowledged to me that they were authorized to execute the foregoing document by authority granted them in the Municipal Code of Ordinances for said City and for the uses and purposes therein set forth. WITNESS my hand and Notarial seal the day and year first hereinabove written. Notary'Publ ic 'f~H and 'f~~'.A:lask~" Commission expires:.. . . .. ... .... STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that. on this............... day of,_. .. . ., 1988, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared CLINT D. HALL, known to me and to me known to be the individual named in and who executed the foregoing document, and he acknow- ledged to me that he signed and sealed the same as his free and voluntary act for the uses and purposes therein set forth, WITNESS my hand and Notarial seal the day and year first herein- above written. . N~t~~'y 'P~bl 1~ f~ ~~d"for"Al~~k~' Commission expires:.. ... ,. ... . . " ...~ 4, .. -3-