HomeMy WebLinkAbout1998 09-28 SpecialMERIDIAN CITY COUNCIL SPECIAL MEETING SEPTEMBER 28. 1998
The special meeting of the Meridian City Council was called to order by Mayor Robert
D. Corrie at 6:00 p.m.
MEMBERS PRESENT: Keith Bird, Charlie Rountree, Glenn Bentley.
OTHERS PRESENT: Robert Corrie, Will Berg, Kenny Bowers, Bill Gigray, Mike Ingram,
Steve Bravo.
Corrie: Note that all Councilman are here except Ron Anderson. We'll be (inaudible) a
little later. I guess why don't we start Bill, kind of give us run down of what you had on
there and what we need to do and then Kenny you had (inaudible).
Gigray: Thank you Mr. Mayor, members of the Council, the fire chief and those
appearing here. I have provided to me a proposed agreement dated September 19,
1998 entitled real property purchase and sale agreement which would be entered into
by and between Meridian Industrial Park as Idaho general partnership and the City of
Meridian which by its terms would purchase lot 17 of block 3 of the Meridian Business
Park for the sum of $275,000 providing that $150,000 would be paid in cash or on
closing date which is proposed to be October 31, 1998 and the balance of the purchase
price to be paid in cash by November 30, 1998. I've further been advised that this
matter has been appropriately budgeted for purchase and that there are funds available
to do this and that it's also important to the city as it would pursue this purchase be able
to do it in two fiscal years. Understanding that the end of this fiscal year is September
30th with the commencing of fiscal year 98-99 October 1. With that in mind there is a
certain amount of haste in which this matter needs to come before you for consideration
and there are some limitations in what we can review in the time period in question.
Also notice that there was a offer expiring date of September 24th and I think I received
this the night of the last council meeting which would have been the 22nd. I believe the
Mayor secured from the authorized representative an extension of that until the 30th
which Mr. Winston Moore has provided that extension. I had recommended and had
spoken with Ron Anderson I believe is one of the point people on this particular project
that because this is not the transaction as I would understand is in the normal course of
business of the city, that it would be a matter which would come before the council for
its consideration and the authorization of entering into this agreement which would
provide a liability of course for the expenditure of these funds at these times. I then also
ask to have provided whether or not there were any covenants or conditions or
declarations covering the property. I noticed that there was a provision in the
agreement governing the use and architectural plans by the seller and also by the
owner of the property adjoining to the west of the subject property. I felt it would be
prudent for the city to review these declarations if any there are to determine what
documents might govern the use of this property. It's my understanding that it's the
intention of the city that this property would be used for a fire station and for a fire
station use and equipment and of course one of the concerns of course from the city's
standpoint is that this property would functional for that use and could be used that way
Meridian City Council Special Meeting
September 28, 1998
Page 2
and the other concern of course will be the city's concern that the title to the property
can in fact be transferred by the seller. With that in mind and looking at the agreement
it is my recommendation and it hopefully will be coming in a couple of minutes that we
enter into this agreement upon the condition that the seller as well as the city will enter
into an addendum to the agreement because you're meeting now and I don't know that
you are going to have time to meet again to try to get this on auto pilot. The idea of the
addendum of the agreement is to make it an integral part of this purchase and sale
agreement so that this doesn't have to be changed. But it would provide specifically
and I'll go over it when it comes in here, but the main point is one that the cash since
we'd be looking at making a cash payment before October 31, 1998 which would be
before the closing date, that that money be placed in collection with the escrow holder
pending closing and also pending the receipt by the city of a preliminary title report
showing that good and sufficient title of this property can in fact be transferred because
if there were a impediment to that which would defeat the sale, we want a provision that
that purchase price could be returned to the city. If those conditions were met then that
payment would be met as provided in this agreement in closing and then we would
proceed to make the remaining payment on November 30t", 1998. Secondly an
amendment to the use provision which would provide specific provisions of the intent
and nature of the use of the property by the city as a fire station and that that was
disclosed and that it would be a condition of the agreement that it would be a frustration
of the purpose of the agreement if the city could not use it as a fire station and
specifically tying it to architectural control issues. We understand that this agreement
says that they're not warranting zoning and those things and those are not under their
jurisdiction and control and wouldn't propose they were and I don't propose in the
addendum that they would be making such warranties. What we would propose by the
addendum to the use provision of this agreement is that the city's use of this property is
a fire station and I'm advised by the chief that there would the need to place an
antenna. There's a provision in the declarations it has a restrictions on antennas.
There is also some other restrictions in the agreement with regards to potentially what I
would call a (inaudible) to the building. There may be the need to provide a generator
so that there's an alternate power source in the event of loss of power and there also
are provisions in the declarations that seem to reference some kind of rules and
regulations governing the use of motor vehicles and we would want to make sure and
this is section 3.15 vehicles says a use of all vehicles and equipment including but not
limited to trucks, trains, automobiles so on subject to architectural control committee
rules and regulations, which may limit the use thereof and of course we wouldn't want to
have limitations on the use of vehicles on that property that would prohibit our ability to
provide fire fighting and life saving services as you're contractually required to do and
as you're mandated to do for the city. So we would provide provisions in there to deal
with that as disclosure and that there would be an agreement with the seller here that
that could be treated as a hardship if we could demonstrate to the architectural
committee that it was necessary for the ordinary conduct of the business of what we
have to do is a general philosophy of how I would propose that that provision would be
Meridian City Council Special Meeting
September 28, 1998
Page 3
changed and there's a small change in section 8 just to deal with the return of the
$150,000 if the title issue cannot be cleared by closing. Other than that it would be
pretty much as they proposed. And I can give you the specific language of that I
proposed as soon as it runs in here. I've also got a memo to you that deals with some
of these central questions. And also refers to the specific sections of the declarations
that I have some concerns about. It's not abnormal to enter into an agreement like this
so if you can have a conditional sales agreement without a title report ,but you don't
want to be spending the dough and turning it over until you've had that. You know all
that stuff is cleared and it's going to not be a problem, and I'm not saying that the seller
is in any way intending to not have it any other way. I'm just trying to since we've got a
situation where we would have to spend that money before the proposed date of
closing, I think we need to provide a safety valve in that agreement. So it's just held in
escrow. As it would be if you were making an offer in a real estate purchase. A lot of
times it's just held until closing and is cleared out at that point. So anyway that is kind of
my overview on this and I had asked the chief to review these documents because he
certainly is more familiar with the needs of the department are building usage and so on
and if we have the people here in attendance who are representing the seller I think it
would be good to see what specific issues might arise from the architectural control or
use of the property knowing what we intend to do with it or the city does.
Bowers: Had heard today that there is a ditch running through that piece of property
and I don't know if we can reroute it or we're going to have to cover it up, pipe it.
Corrie: It's not piped all the way anyway.
Bird: Ron wanted to leave it open so that we could use it for (inaudible).
Bowers: That's fine if we can leave it open.
Bird: I don't whether we can or not.
Bowers: I don't know.
Corrie: It's open.
Bird: And I don't know — Ron thought it would be nice to leave it open so that you could
test your pumps and stuff.
Rountree: Is the 40 feet maximum height (inaudible)
Bowers: Did we decide to go to 50 foot Bill on that antenna?
(Inaudible)
Meridian City Council Special Meeting
September 28, 1998
Page 4
Rountree: Building height doesn't give you (Inaudible)
(Inaudible)
Bentley: I just had a question on whether we needed the hose tower and what the
height would be on that if we needed one.
Bowers: Most of the time you don't build hose towers any more. (Inaudible).
Rountree: I don't have a bit of problem proceeding with (inaudible) escrow conditions
so we can get going on it. But (Inaudible). I guess the other question I would have Bill
is there (inaudible).
Gigray: Well you've already budgeted for it so as long as it's in the budget and it's in
the expenditures in the next fiscal year I don't see a problem. Where we usually get into
these problems is where there aren't (inaudible) to do it. And your budgets are set.
They're already certified and submitted, so I don't see a problem.
Bird: As I understand the 150 of it we have to have the purchase order in immediately.
Gigray: Otherwise it will go as —
Bird: All next year, yeah. It won't carry over. It will all come out of next year's won't it?
Rountree: It isn't a budgeted carry over.
Bird: That's right so we got to get that 150 before the 30th. We got to get purchase
order out of this year's budget and the other 125. Right. I have nothing further. I agree
with Charlie. As long as we get the purchase order through to Janice so that it is in last
year's I guess we can cut the check anytime.
Rountree: Are we on line to get this down —
(Inaudible)
Gigray: If you've got a couple of minutes, I'll go down there and see where we are
because I'd like to read it. And if the seller is here then we can see whether or not
they've got a problem with any of it.
Bird: The seller is not here.
Gigray: They're not?
Meridian City Council Special Meeting
September 28, 1998
Page 5
Bowers: To my knowledge we have taken our 95 runs 96 and 97 runs and put them on
a map, dotted them out. We gave those to Ron and he sat down and drew his circles
out of where he perceives that the building should go. And everything pretty well
pointed towards Franklin Road somewhere around that area in the cemetery. It didn't
show which side of the Franklin to go on to but in that area.
Bentley: Kenny, what's your thoughts on an area for having this? I know you and I
discussed this about two years ago and what's your opinion on that?
Bowers: Councilman it's going to be widened as you know to five lanes one of these
days possibly. But that will still gives us easy access east and west. North and south
might be a little bit more difficult coming back to E. 1 st because it's so busy, but we
should be able to make the turn okay and head out to the freeway or head down E. 1 st
to the area down at Albertson's.
Bird: Kenny when the — actually this location would be a lot better to get out to the
southern part. Presidential by going to Eagle and coming down that way and you're on
Eagle Road so Eagle Road is a good access. We're going to be close to it.
Bowers: It will be easier to get to Eagle Road. The thing that's going to be a little
harder for that piece of property is all of our volunteers live out this way. So it's going to
take them a little longer to get to that area to cover the station for backup calls because
of traffic, because of construction and because it is a little farther away, but we hope as
we take on new volunteers possibly bring some volunteers into this area out this way.
Anderson: Also with Franklin being finished before this is built you know I think your
access from the west will be great as far as time wise of being able to (inaudible) since
it will five lanes coming in.
(Inaudible)
Corrie: This is not a public hearing, but I guess we can —
Rountree: Mr. Mayor I'd like to ask Commission Steve over there if he has any
questions.
Bravo: Let me kind of lay this out like Mike mentioned, (inaudible) kind of blind on it.
We've heard some ifs and maybes and this and that. So I guess not to sound hard ass
or anything but this situation is not lending itself to starting out as a very good sign of
(inaudible) work between the two entities with our new contract coming into play. We
have heard bits and pieces from Ron but like I said this is all unofficial. I realize the
situation that Eagle can have with this property. He mentioned to me about the time
Meridian City Council Special Meeting
September 28, 1998
Page 6
limits and all that. I think we have heard was I got a little upset with him at our last
meeting because through him we were lead to believe that you know if we go out and
get the money, (inaudible) this is going to happen. This will happen this year. This will
happen next year and then all of a sudden well maybe it can't happen. We don't have
enough funds because of the (inaudible) in property values. So I got a little irritated with
that and of course he answered me back and we got that squared away. With that he
did mention the fact that well I talked to the City Council and if you guys don't want to
foot the bill, we'll pay the whole thing. This is what I have been told and this is as far as
we know at this point. We've had no communication on actually where the station
should go in, seen any maps. We haven't done anything at this point. That's just where
I'm at. I'm just letting you guys know, I don't know if this is going to cause problems
down the road or what. That's where we're at. We don't know anything different as far
as — he had mentioned to me about the properties, asked if we could go out and look at
some properties. In the short notice I only had time to go out and look at one piece
which fell through. It wasn't worth even looking at once I got out there and the others
were outrageously high priced. So with Ron's knowledge he decided on this parcel
here and mentioned to me for what's available and what's affordable if that's the best
place to put it. So I went along with what I've been being told that this is probably the
best place we're going to get (inaudible) but that's about as far as we taken anything.
Nothing else has been discussed as far as if we (inaudible) or if you guys are going to
foot the full bill for some reason. I don't know why that came up other than we didn't
have enough to put in this year with the (inaudible). With the 800 we decided it would
take. It looks like it's going to cost more than that. And that's where the (inaudible) or
to me not officially on the side, well the city mentioned that they'll foot the bill for I don't
know if he meant the excess or the whole kit and caboodle. And we're kind of out in
space on that issue too.
Corrie: I'm a little disturb two things. One is being a liaison he should be liaisoning with
you guys from the Council which he hasn't done. The second is he's making the
statement to the rural, you don't want to, we'll do it. He doesn't have that authority. It's
the council that makes that decision.
Bravo: I'm not sure if that was his intent, which way he meant it as far as making up the
shortfall or doing the whole project.
Bird: He had talked to us Bob.
Corrie: I know he had, but he still can't make that decision.
Bird: No, that's true.
Meridian City Council Special Meeting
September 28, 1998
Page 7
Bravo: Well he didn't make it official. I'm telling you what we (inaudible). None of this
has been — I mean the one where we got into the argument at the meeting was one of
(inaudible). It's not official. I'm just trying to mention to you.
Bentley: (Inaudible).
Ingram: Well a couple of things. (Inaudible) This piece was mentioned. To my
knowledge that was as far as it had gone. Nobody has contacted any of us other than
today as far as purchasing a piece of property. Ron's instruction was to get a hold of
me and we would evaluate where that station location — a probably location. That has
never been done. I have never been contacted. Number two is it the city's intent at this
time to be the sole owner of this piece of property because according to the agreement
that now is in question whether or not we were even enter into it. It is mandated in there
that any capital purchase would be usually agreed upon by the city and the rural. So
I'm questioning here we are about to enter into to an agreement and we're already
breaching the contract so I'm kind of questioning if that's the way this business is going
to continue, then I'm not sure that's the road we want to go down. I don't know. Is it the
City's intent to purchase this piece of property solely?
Corrie: I don't think it was before.
Bird: It wasn't mine, but if it — when it was talked your agreement hadn't been you know
it had been firmed on your agreement. We didn't know if you guys wanted to
(inaudible).
Ingram: That's us. We don't know yet. We haven't gotten that far.
Bird: Ron checked around on prices of ground. Downtown here if you buy existing 7'/2
square foot out on Fairview is that much or more. This we're getting for a little over $3 a
square foot.
Rountree: Question for Bob and I guess for your benefit. Some of this has to do with
it's the end of the fiscal year and the fire department has some carry over money. It
could be a part towards this and that's the sense of urgency apparently where we're at.
Could we not as a council take action on that (inaudible) a carry over account that could
be applied towards the amount that's budgeted this year and be a budget adjustment at
the end of the year. It would give us a little more time. I've got the same problem he's
got is we're sitting here and putting together an agreement and asking him to agree with
this thing all of a sudden (inaudible) pay 30% percent of it. Or we're going to buy it all
and we're going to lease it to you. (Inaudible) and at least at this point by agreement
there are partners and we missed a step and there and I think a significant step.
Meridian City Council Special Meeting
September 28, 1998
Page 8
Corrie: Bill just for clarification there we have until the 30th of this month to give them
the $150,000. You mentioned October the 31St
Gigray: I haven't looked at your budget. So I don't know ,but my question was is this
budgeted? And that mean if it's budgeted then that means you can take it out of this
year's fiscal budget and then you have a line item in next year's fiscal budget that allows
you to make the remaining payment. Now it's my understanding that this isn't
necessarily in the budget and the expenditure would not come out of any budget that
was submitted to the rural as part of the 98-98 fiscal year. Because if it were then it
would have to follow the process that we had crafted in that agreement by which capital
outlay expenditures would be done and they are stating here which is true. I guess it
was kind of my understanding that yes it was the intent of the city to use it as a
development for a fire station. That was the most specific need. But in the short term in
order to meet these fiscal year budget that it was considered as I understood it a piece
of property that the city would purchase and then would decide on the appropriate use
of that property of which the fire station was probably first in line and if that didn't work
out you might use it for some other purpose, but of course I'm having to deal with the
most known here in order to craft an agreement in short order here and so that's why I
dealt with this in the addendum specifically. Now that was how I understood it but you
know I think if you choose not to enter into the agreement and you want to — I mean the
thing we got to check with the treasurer on is whether or not you've got the appropriate
line item designations in order to carry it over and to make it specific to avoid going into
the general fund and I think as we sit here now without any further action, that's exactly
what will happen and then we'll lose it.
Corrie: I think to answer your question Charlie, yeah, we could take the $150,000 and
put it in escrow, give them time to act because we don't have make the final payment
until November the 30th, is that what you have?
Gigray: Well I would say if you're going to do that we need to change the agreement
because we need to add another contingency in there that this whole is subject to
gratification by the rural fire district.
Corrie: Give them a chance to study this. Then we can do that and even with that
understanding of escrow and get the money back.
Gigray: We're getting into some complicated negotiations here because the way that
agreement works we're suppose to propose the methodology by which capital
expenditures are going to be made and what you've got to do is be in a position where
you're going to be prepared to deal with the proposal and the commissioners I assume
from their own budgeting standpoint are already committed on the 98-99 fiscal year
budget. They've already certified that budget as already adopted and their expenditures
are going to be limited to what they have already approved for that fiscal year so any
Meridian City Council Special Meeting
September 28, 1998
Page 9
participation by the rural fire district would have to be in beginning probably fiscal 2000-
2001. It gets a little bit protracted and as I understand it it's not on the table yet. It
could be and whether or not the city bought the property and then made a proposal with
the rural about construction costs of the building and some joint ownership based on
some participation and construction costs. That could be done in future years. The big
issue here is going to be one whether the rural buys the idea of another station and
number two the location.
Bentley: Wasn't it part of the joint budge to build the new building in this coming fiscal
year?
Bravo: Yeah we had $240,000 out of the $800,000 total (inaudible).
Bentley: I think the issue here is nobody has gone over site location.
(Inaudible)
Bravo: We know we're going to go over cost already.
Bentley: I can sit here and tell you what he did when he explained it out to us, but I
think you need the same explanation that we received and the reasons for it. What he
said made sense to me and it may make sense to you if you have the maps and the
circles and what they were as the one mile and the three mile.
Bravo: And it already does. I talked to Ron on the side but we haven't got anything on
record saying that's what I'm getting at. There's nothing on record saying that we talked
about this and made these decisions.
Bentley: I would have to agree with Charlie that we take whatever action we need to
preserve the budget the $150,000 and whether we can do a tentative deal to affect the
purchase and depending on the rural getting their review because if they're going to
play as a partner in this they've got to know what their part is too.
Bird: Mr. Mayor I got a question to ask Steve. Did you guys approve the agreement?
Has that been approved then?
Bravo: We approved it with the changes you guys did a final that you guys signed off.
That's what we approved.
Bird: You have approved it?
Bravo: Yeah, we approved it. No we're having our meeting Thursday. We approved
what you have here at our last meeting to make those changes and present them to you
Meridian City Council Special Meeting
September 28, 1998
Page 10
guys. Okay. We have a meeting scheduled this Wednesday to propose it and accept it
and it's fine. All I was going to ask on the scenario I guess for your attorney with all
these stipulations that you mentioned you know not knowing for sure a way to get out of
the purchase if certain things didn't come to past with the scenario. If something I can't
even imagine but if something did happen on this and we couldn't come to an
agreement, what does that do to you guys investing in the property? Do you have other
uses planned for it already or are you stuck with it?
Rountree: Well it's the kind of property —
Bird: I was going to say I wouldn't mind being stuck with it.
Bravo: So it's not something that's going to be a hardship on the city.
Corrie: So Bill let me ask you this, do you think we can with the length of time we have
get all this together and present with the escrow the $150,000 take it out of the budget
within the next two days?
Gigray: I think the answer to your question is yes we can, but I think the thing that you
ought to consider this evening is what direction you really want to go on this because it
would make a difference in what contingencies I put in this addendum agreement. I
anticipate that and I have represented and represent rural fire districts that for them to
come to a definitive decision about whether or not they're going to agree with this
particular purchase or not by the proposed date of closing which is October 31 —
(inaudible)
Gigray: You know I don't know. That depends on what their read on this thing is.
don't know what the city's plan is at this point about construction. You can buy land and
sit on it quite a while before you ever start construction and I don't know what the city's
plans are there. And that might have a whole lot to do with how the commission's
response would be. The procedure would be if you did buy the ground, it's yours and
you can hold it for city purposes, but if you do sell it, you have to follow statutory
procedures. You get an appraisal and then you declare it as surplus property and go
through the whole rigmarole and auction it off.
Bravo: What you just mentioned would they have to do that if they purchased the
property as a single entity and they came to us and say everything came all right okay
we're — give us your 30. If they purchased it that way, do we have to go through that?
Gigray: No, it would go through your normal budget. At some point the chief would
make a proposal to the commission about a capital expenditure budget that would deal
with the construction of the station or some joint ownership of the real property. It would
Meridian City Council Special Meeting
September 28, 1998
Page 11
have to come through your normal budget process. This action by the city as I
understand it and I asked this question is this in the existing budget for the city? The
city has budgeted to be able to do this but as I understand it through the agreement with
the commission you would have to deal with this separately with the commission in
terms of how this would (inaudible). I think that's the intention. Now this as I prepared
this and I think it might go faster if I just read the excerpts of this just to get an idea.
Does not include a contingency of the city being able to get out of this if the commission
doesn't affirm it. I didn't have that in the mix when I discussed this and if that's
something you really want in there or you want to reserve the right to do then I need to
know that —
(Inaudible)
Bird: I'm with you Bob. I don't think it's necessary.
Bentley: I don't want to hang any strings on this —
(Inaudible)
Rountree: I guess (inaudible).
Gigray: Well you'd be committed this fiscal year to do it. And that will be an
expenditure coming out of next fiscal year budget. And then you'll own a piece of
ground free and clear and since it's never been included specifically in the discussions
with the commission it's your ground. I mean that would be my advice to you, your
ground totally and then we'd have to get in communication with the rural fire district
about its potential use and development. If that's what you're looking at doing and we
want to make sure we don't get in an architectural problem here on the other end.
Corrie: Right. Why don't you go ahead Bill and give us that.
Gigray: We said at the beginning that this is to be an integrated part and considered
part of the real property purchase and sale agreement so that these two agreements
work together. They not having them saying they are independent. We're saying that
the buyer's signature to this agreement is contingent and conditioned upon the seller's
authorized representative entering into the addendum and the agreement and signing
too. I want to change section three, the real property agreement that says $150,000 in
cash tendered and placed in collection escrow with Stewart Title Company and that was
the company they named and which shall be held in accordance with the provision of
section 4. So we're providing for immediate payment of this. Section 3 that section 4 of
the agreement amended to provide that collection escrow the parties agree to
immediately establish a collection escrow with Stewart Title Company, Inc. pursuant to
the agreement the collection escrow agent shall hold the original cash deposit made by
Meridian City Council Special Meeting
September 28, 1998
Page 12
the buyer pursuant to section 3.1 of the agreement and shall hold an original of this real
property purchase agreement and the addendum to the agreement and the original
executed deed to the property as security for payment of the purchase price where the
buyer shall be instructed to collect, supply and disperse payments made pursuant and
in accordance with the terms of this agreement and to the release and deliver the deed
to the buyer when the buyer becomes entitled and so on. Then under section 6 under
use the buyer shall not commence construction on the property without first obtaining
written approval of the site development architectural plans for the seller and the owner
of the property adjoining the west boundary of the property. Now that's in there already.
Neither of which approval shall be unreasonably withheld and in accordance with the
declaration, covenants, conditions, and restrictions of Meridian Business Industrial Park
recorded and then I referenced the instrument number. Such approval is with the
understanding that it is the intent and purpose of the buyer in the purchase of the real to
eventually construct a fire station upon said premises. It is agreed by said parties that it
shall be considered a frustration of the purpose of this agreement in the even the buyer
cannot construct a fire station upon the premises by reason of imposition of any
architectural requirements contained in this declaration of covenants and so on. It is
agreed that it shall be considered a hardship under section 2.9 of the declaration and
covenants if the city can establish that there is an improvement, structure or
appurtenance that is required to operate the fire station in compliance with normal
operating performance needs. In particular is herein represented by the buyer that one
of those requirements will be an exterior radio antenna which would not exceed 75 feet
we allowed. We thought it was 50, but we thought that in case it was 56 we better —
and there maybe an exterior generator device to provide auxiliary power in the event of
a power outage and the city will require the right and ability to use all trucks, vehicles
and fire fighting equipment associated with it providence of fire fighting and fire
preservation services within the city and the Meridian Rural Fire District together with
any other district and/or city for which the city contracts for mutual aid or those services.
Then under section 8, title and title insurance it'd be amended to provide that the buyer
shall request the title company to issue a preliminary title report in conjunction with
issuance of title policy. The buyer shall then have 14 days after the delivery and they
had seven and I thought that was awful tight of the preliminary title report within in which
to disapprove in writing all easements or restrictions of record. That the buyer cannot
remove any disapprove exceptions by closing then this agreement shall be terminated
and either party thereafter shall be liable to the other. The escrow agent shall then be
so instructed to return the purchase and sales agreement to the seller marked cancelled
with a copy to the buyer and delivered to the seller executed deed to the property
delivered to the buyer $150,000 cash payment and any interest earned thereon. Buyer
and seller shall the title company to issue at closing a standard owners policy and then
the rest of that is pretty much as it was before. Given the constraints of time that's what
I came up with.
Bird: Sounds good tome.
Meridian City Council Special Meeting
September 28, 1998
Page 13
Corrie: Any further discussion?
Gigray: This is the memo as (inaudible).
Rountree: On the outside chance that we buy this piece of property and then for some
reason the rural falls apart and says this isn't the right place (inaudible). In my mind
that's a possibility. (Inaudible)
Bentley: You read pretty well.
Rountree: I don't think that's going to change.
Bentley: I wish that Ron — I don't know what happened, but I wish he'd given the same
presentation to them that he gave to us and I don't think we'd have heartburn right now,
and I don't know what happened.
Bird: Well they haven't signed the agreement yet.
Corrie: It sounds like they're going to though.
(Inaudible)
Gigray: That was one of the questions and Kenny will confirm and I asked Kenny when
this whole thing began. I talked to Ron about it was you know we have this budgeting
process under this new agreement was this under this and it was my understanding it
was not and I think you are absolutely right in that is you can buy this property and hold
on to it and use it for whatever city purposes you want. If it works out that it works with
the rural and the fire station, fine. But you could end up holding it if this run afoul.
Bird: Let me explain something I think, excuse me Mr. Mayor. There's an $800,000
budget in there for building that they know about. Right? Okay, 10,000 square foot
building in Garden City was built for $650,000. That's basically what we're wanting is
10,000. That leaves us $150,000. That's where the 125 comes with another. So they
are basically in there. The only thing we're doing is taking the 150 out of this year's
budget which we don't know if we're going to get paid back from that anyway from them.
They knew the $800,000 was in there. Right? We're not going to go over that
$800,000.
Rountree: (Inaudible)
Corrie: I think perhaps the feeling is that probably still the best place for one, but we're
(inaudible) here. Like Charlie says and if it doesn't go we get the money back and we'll
do it again or we can buy it and (inaudible). But that price, it's a pretty good price.
Meridian City Council Special Meeting
September 28, 1998
Page 14
Bird: Will you pay me ten percent of any extra I can sell it for? I'll make one phone call.
Bentley: So what do we need to do tonight? Do we just need to move on freezing up
that —
Rountree: We need to either approve the resolution —
Gigray: The resolution authorizing the Mayor and the Clerk to enter into the addendum
agreement and the original property agreement. That's really the only action that
would think you need to take and —
Bentley: Don't we need to do action on preservation that 150 that's this year's budget?
Gigray: Well if you sign that agreement (Inaudible)
(Inaudible)
Corrie: I'll sign that in the morning.
Bird: Mr. Mayor do we have a resolution number?
Corrie: 174.
Bird: I move that we adopt resolution number 174 setting forth certain findings and
purposes authorizing the Mayor and the City Clerk to enter into on behalf of this
municipality and agreement entitled real property purchase and sale agreement and
addendum to real property purchase and sale agreement city of Meridian, grantor.
Bentley: Second.
Corrie: Motion is made and second. (End of Tape)
Gigray: Well I just say for purposes of the record that motion would authorize
expenditures.
Corrie: Any further discussion? Hearing none, all those in favor of the motion say aye.
MOTION CARRIED: 2 ayes. 1 nay.
Corrie: Okay. Any further —
Gigray: I would just by way of comment Mr. Mayor I would recommend that we
consider at some point maybe crafting some kind of protocols on land purchases kind of
Meridian City Council Special Meeting
September 28, 1998
Page 15
like due diligence routing and so on and I think it will avoid the rush. I think you
probably made a very good move here. You got a good piece of property probably for a
very good price. It will be functional for your intended needs, but as you well know
they're always big expenditures and there can be issues about a lot of things that can
come up. When you're up against the gun to make decisions, sometimes there are
risks associated with that.
Corrie: If there's nothing else to come before the Council I will entertain a motion to
adjourn.
Rountree: So moved.
Bentley: Second.
Corrie: Motion made and second that we adjourn. All those in favor of the motion say
aye.
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(TAPE ON FILE OF THESE PROCEEDINGS.)
APPROVED:
ROBERT D. CORRIE, MAYOR
ATTEST:
WILLIAM G. BERG, JR., CITY CLERK