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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 Meridian City Council 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 Meridian City Council 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 Page 53 " 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? Meridian City Council July 16, 1996 Page 54 " 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