HomeMy WebLinkAbout96July16 CC Regular Mtg MinsMeridian City Council
July 16, 1996
Page 49 -
up to the August 6 meeting, any further discussion? AI those in favor? Opposed?
MOTION CARRIED: All Yea
ITEM #12: DEED FOR GOLF COURSE PROPERTY:
Cowie: Council you received a fax from Spink and Butler. I don't know if you have had a
chance to read it yet. I guess how clean is this Watt in what we were looking for.
Morrow: In terms of the deed we are light years ahead of where we were. We are within
a couple of hours of getting that completed. The desire by Mr. Turnbull is to link the
recording of the deed and the side agreement together to be signed at the same time.
Really where we are at here is that there have been two revisions or two re-writes of the
side agreement. There are still some things in there that I am uncomfortable with. I won't
speak for the counselor but I think in terms of the deed, the deed is just about there, the
side agreement needs some fine tuning yet. Having said that I would have the counselor
take it from there.
Fitzgerald: Mr. Mayor and Council I kind of got in on this actually on Saturday sa I have
been having a quick education into the status of this. As I understand it there are basically
three issues presently the one is the deed to the property, the second is the side
agreement, third is an easement agreement. As I understood it originally although the
easement agreement is somewhat separate and distinct it is a related issue to this.
Focusing in on the deed which is exhibit B to the facts that you received as Councilman
Morrow indicated it has been cleaned up. But in terms of concern one of the issues is item
2 which is the easements and right of ways for roads, ditches, tunnels, utilities and other
purposes on the date hereof. To my knowledge the City has not received a legal
description of that property. So they have not been able to obtain a title report. So in
essence what we are dealing with is these easemerrts and rights of way for roads etc., not
know what those are :until a title report is done. Also coupled with that is item 3,
exceptions, reservations, terms, covenants and conditions of record. Again that would be
shown in the title report. So we are in somewhat in the dark on that. Based upon my
conversations with Joann Butler today and this fax the message on that fax Mr. Turnbull
is to fax over to our office a legal description. From that we can obtain presumptively a title
report to find out what exactly those easements and rights of ways and etc. any exceptions
or reservations are to clean up that issue. In terms of the agreement my understanding
is as Councilman Morrow indicated is that they want to execute the deed of gift with this
agreement concurrently. There are some issues with regards to this agreement that BRC
who is the grantor wants to have some so to speak protection in terms of the development
and use of this. My concern is how do these relate to obligations that exist under the
current lease agreement with Cherry Lane Recreation Inc. for the operations and
Meridian City Council
July 16, 1996
Page 50
maintenance of the golf course. That in my mind is a very big issue. So that the City is
not agreeing with BRC to do something that it has no capability of performing or ability to
perform. In terms of the maintenance, there are issues of what is a material change and
BRC having the ability to approve or disapprove of that development. So in terms of the
agreement itself I see some real issues that need to be ironed out. Again given my quick
education in this and the long history I think that it is an extensive examination of the lease
and this agreement and how the two inter-relate needs to be given some careful
consideration. So at this point in time I think that we are or I would advise the Council that
given the status of this agreement and the issues that are out there that it is not ready to
necessarily proceed with the absolute approval of the agreement and correspondingly with
the deed until that examination can be made. However I would indicate based upon my
review of where we were previously and where we are this evening it is mooring forward.
Corrie: Thank you counselor, I guess my question would be to Walt how are we as far as
time?
Morrow: I think what we can do here is that we are really close. I think we can authorize
as a Council we can authorize the Mayor to accept and also the Mayor and Clerk to sign
and attest the agreement and the deed because I am fairly convinced within the next few
days these will both be coming and we don't meet as a Council for these technical issues
to review those if the Council is comfortable with that. From the standpoint of the next
steps that we will be talking about that is awarding of the bids that we have that Brad will
discuss here in the next agenda item I believe. So it would be beneficial to be able to have
the capability to at least award those bids and be moving on with that. And. then in the
interim we don't meet for almost a regular meeting for almost three weeks. And given the
progress that we made today my anticipation that we need to have the Counselor's do a
little bit of work cross referencing the existing lease agreement with the conditions in terms
of maintenance and have the title policy to define what easements do exist.. Those are
realty the only two major issues left and once those are resolved then there is no reason
not to accept the deed and not to accept the side agreement. And w~: are ~ down the
road. One of the other things after we are done discussing this and you also have a copy
of a letter of commitment today by Brighton Corporation and David Tumbull in terms of
extending the road to the club house site by the latest next Spring depended on weather
conditions. That takes it out of the discussion that we had at our last meeting with Gary
and comments of an agreement between Mr. Lavan and Mr. Tumbull which the City wasn't
a party really too and it didn't do us any good for them to have an agreement because it
didn't get the road built in order to get a club house built. With this letter of commitment
that Mr. Turnbull has as a first draft then essentially what happens is the road is
constructed to the club house site next Spring and it is simply up to us as a City to say
okay everything is ready to go what is the schedule and design of the club house and the
disposition of such. So we have made substantial progress on both of those issues that
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July 16, 1996
Page 51
is where we are at now.
Fitzgerald: I just want to interject two comments, number one, I noticed that in the facts
from Joann Butler that it says that please note that Dave Turnbull has not reviewed this
document so that it must remain subject to his final review. And then in terms of my
comments I also then address this other easement agreement although I think that needs
to be taken into consideration just in simply my understanding of how the whole package
is put together. We don't know at this where those easements are going to be or any
information in that regard as to that easement agreement.
Corrie: Do we have a written agreement with Cherry Lane Golf Course- Inc. that they will
build a club house?
Morrow: Not to this, what has been happening is that the tail has been chasing the rabbit
wit the road and the club house. By virtue of this letter then we are getting ourselves into
position of saying okay here is the schedule for the road, now we want these other issues
resolved. We can do that now that we have something concrete in terms of the schedule.
Prior to this Mr. Lovan's position and rightfully so was that I can't build a club house if I
don't have a road to it. Mr. Turnbull's position was that he didn't know exactly when he
was going to build a road. And so in the course of the last couple weeks and ultimately
today we have got the position now where based on our last meeting we made the
recommendation to Gary as a Council that we weren't releasing the approvals for Ashford
Greens No. 1 until we got the issue resolved with respect to a letter between he and Wally
Lovan. Whe~~e we ended up with is we didn't want a letter of agreement between the two
of them because that did us no good. What we wanted was an agreement between us the
City and Mr. Turnbull first. Once we have the road in position then we deal with the issue
of Mr. Lovan and the club house.
Rountree: A process or a timing question, Walt you are suggesting doing something this
evening ~n terms of an action on this. Could we not, it would be r,.y preference to deal with
this at our planning session if that is possible given the situation with Mr. Turnbull's --
comments about not having had an opportunity to review this. I would certainly like to sit -
down and read this. If I do have comments that gets to my second question not having a
meeting for 3 weeks, should I direct them to Mayor (inaudible) for discussion and
incorporation or consideration of change so the Council can consider those if I have any.
What I am telling you now is that I am not in a position to take action on this this evening
if it means a special meeting because of the criticality of timing on this I am all for that. I
want to move it but I am uncomfortable given the information or lack of information I have
had an opportunity to review.
Morrow: I think it is certainly appropriate then the night of our strategic planning meeting
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July 16, 1996
Page 52 '
we could notice that as a special meeting fora 6:30 start and that gives us, I really think
that at the rate we went at today that a week from today we are essentially a done deal
plus we have the familiarity of Wayne being back so that if there are any little hidden
issues there we are not thinking of he has it covered. So I think it is appropriate that we
have a half hour special meeting and then move on into our planning session.
Rountree: That would be my preference.
Corrie: A quick question on that one, we have one Councilman that is not going to be here,
can we have it on the 30th if he wishes to be involved in it?
Morrow: Well the question is if you are going to, you have to understand this only applies
to 2 and 1 /3 holes approximately.
Corrie: It is required for the whole nine as you say, this deed (inaudible)
Morrow: Well not it is not required for the other 6 and 2/3 holes.
Corrie: Well it is if you want to use the money, it has to be deed in hand.
Morrow: Well if you recall there are two different layouts, if this whole thing falls apart and
we never got the property we have another layout to make use of the property hat we have
in terms of the nine holes. We can do nine holes in two different manners and always
could from the very beginning. And so the issue is that we have designed this with this
property for these nine holes the Ashford Greens property comprises approximately 2 and
1 /3 holes. The point is that if we were never to get the property then we switch to the other
design and develop the nine holes with the existing property, Where we are at right now
is that we are close to getting these. If we are going to tie the award of the deed to the
award of the bids we can't wait to the 30th it has to be next week. The issue is that we
have the bids 26th of June and they are 30 day bids w-.-~ich expire the 26th of July.
Corrie: I guess my only problem with that is you are eliminating, if that happen to be the =-
case, you go to the original nine holes how many homes are we eliminating to pay back
the $350,000?
Morrow: All of the homes that (inaudible) they are part of the agreement.
Come: They are part of the agreement? So they would have to pay regardless of whether
they are on the golf course or not?
Morrow: You have to pay now whether you are on the golf course or not. There are a lot
Meridian City Council
July 16, 1996
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of homes that don't have (inaudible) 3 different subdivisions or 4 different subdivisions.
Corrie: I guess I would have to go back, we are talking about 600 and some homes that
took in total and I would I guess I would like Mr. Turnbull (End of Tape) that is your call.
I just had some questions if you go with the original back nine and you say it is I would
assume it was correct but we call it, would Turnbull's group be involved in that anymore?
Because they are not even in part of that back nine.
Morrow: No, Bob, they were required like anybody else it is a condition of their approval
to pay the fee within the subdivisions, whether they have frontage on the golf course or
not.
Corrie: If that be true than that is fine, I just didn't know what it was, I would have to look
at that. I want to make darn sure that they are involved in it because there are a lot of
homes.
Morrow: At this point it is in Mr. Turnbull's best interest to proceed with this because his
entire design of the subdivision and those homes are contingent upon them being on the
golf course. The whole reason for the signed agreement is his concern that the golf course
be an amenity to help sell his homes. So at this point he has everything to lose by no
proceeding forward with the deeding of the 200 1/3 acres. We as a council and City by
virtue of expiration of the bids make our decision at next Tuesday's meeting. There is no
other option. By virtue of the construction time schedule we need to be making that
decision and awarding those bids either tonight subject to work starting once we have the
deed in hand or we award those bids next week based on having deed in hand.
Corrie: I guess my original question is (Inaudible) it is your call. Charlie?
Rountree: I don't have any problem with awarding the bids tonight with the condition that
we get the deed in hand. That just takes care of the legal time line I assume we could
cancel it if the deed fell through (inaudible) but as far as the agreement I would just like
to see that in fairly final form.
Morrow: I don't disagree with that and it needs to be next week because you also have a
construction time line (inaudible) all of a sudden you are in August and it is too late to get
(inaudible) very little seeding growth.
Corrie: Any further comments of the Council?
Morrow: So let me ask you this, do we need a motion?
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July 16, 1996
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Corrie: If everybody is in agreement I will call a special meeting on the 23rd, along with
the planning meeting there will be a special meeting if nobody has any objections.
Bentley: So we need a motion to table?
Corrie: No I will just call a special meeting for the agreement and deed.
Rountree: So likewise defer item 13 until the 23 or is there any advantage
Morrow: No, let's award the bids tonight so that we have got them out there and ready to
go.
Rountree: With the conditions?
Morrow: Yes with the conditions that we accept the deed and the side agreement.
Rountree: Is that a motion?
Morrow: Yes
Rountree: Second
Corrie: Motion made by Mr. Morrow, second by Mr. Rountree that we award the bids, I
guess we have to look at the bids, I guess there is only one in each category, well we will
look at the bids at that point, to award the bids based upon the agreement and the deed
easement agreement (inaudible) with Council.
Fitzgerald: I don't know if this is necessarily appropriate but in terms of the motion the
acceptance of the bids is subject to and conditioned upon the deed, the side agreement
and easement agreement is that correct?
Corrie: That is correct, any further discussion? All those in favor? Opposed? -
MOTION CARRIED: All Yea
ITEM #13: AWARD BID FOR GOLF COURSE CONSTRUCTION:
Corrie: Brad, are you going to do that?
Watson: Mayor and Council we together with the Golf Course Committee have put
together a budget, construction budget. There are twelve items on there. We went out for