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Home My WebLink AboutResolution 2014-14 Land Exchange (Basic American-City of Rexburg)C IT Y OF REXBURG Americas Fancily Comuumily RESOLUTION NO. 2014-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REXBURG, IDAHO, APPROVING THE EXCHANGE OF REAL PROPERTY BETWEEN THE CITY OF REXBURG AND BASIC AMERICAN FOODS, INC; AND AUTHORIZING AND DIRECTING THE MAYOR, TO EXECUTE ALL NECESSARY DOCUMENTS REQUIRED TO IMPLEMENT THE EXCHANGE; AND PROVIDING AN EFFECTIVE DATE. THIS RESOLUTION, made on the date hereinafter set forth by the City Council of the City of Rexburg, Idaho, a municipal corporation under Idaho Law, hereinafter referred to as the "City." WHEREAS, the City, is authorized to exchange real property in accordance with Idaho Code, Chapter 14 & 20, Title 50; WHEREAS, the City is the owner in fee simple title of real property described on Exhibit A attached hereto and made a part hereof ("City's Relinquished Property"); WHEREAS, Basic American Foods, Inc. is owners in fee simple title of that certain parcel of real property described on Exhibit B attached hereto and made a part hereof ("Basic American Foods, Inc. Relinquished Property"); WHEREAS, the City and Basic American Foods- Inc. desire to accomplish a teal property exchange, in order that on the completion of such exchange, the City shall be the owner in fee simple of the Basic American Foods, Inc. Relinquished Property and the Basic American Foods Inc. will be the owner in fee simple of the City's Relinquished Property; WHEREAS, City staff has reviewed the Exchange and recommends approval of the Exchange as a fair value for value exchange; WHEREAS, the City Council finds it in the best public interest to approve the Exchange and to authorize the Mayor to execute all necessary documents to implement the transaction subject to the conditions set forth below. Instrument # 390763 REXBURG, MADISON, IDAHO 8.25-2014 04:29:21 No. of Pages: 6 Recorded for: CITY OF REXBURG KIM H. MUIR Fee: Ex -Officio Recorder Deputy RESOLUTION 2014 —14 - PAGE 1 Y y,Y.%b URn, U.� a C I TY OF REXBURG Americas Family Community NOW THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE CITY COUNCIL OF THE CITY OF REXBURG, IDAHO, AS FOLLOWS: Section 1. That the above statements are true and correct. Section 2. That the Exchange is hereby approved and accepted. Section 3. That the Mayor is hereby authorized, permitted, and directed to execute all necessary documents required to implement the actions contemplated by the Exchange subject to representations by all parties to the exchange. Section 4. This Resolution shall be in full force and effect immediately upon its adoption and approval. AFFIRMED AND PASSED by the Rexburg City Council of Rexburg, Madison County, Idaho, this 6TH day of August, 2014. Richard S. oodland, Mayor ATTEST: By: V Blair D. Kay, City Clerk Cd Y�llllJlllL�1►L►ZIIC�CS7Ct1MPA C I TY OF REXBURG America4 Family Community Exhibit A City of Rexburg Property at 166 East North Th Area One (1) TRACT 1: Beginning at a point that is West 249.95 feet from the Northeast corner of Section 19, Township 6 North, Range 40 East, Boise Meridian, Madison County, Idaho, and running thence South 278.97 feet; thence West 247.11 feet; thence North 30 020'20" East 323.23 feet; thence East 83.34 feet to the point of beginning. SUBJECT TO: A 10 foot wide easement along the East side of the above described tract for roadway purposes. TOGETHER WITH: A 20 foot wide roadway easement which centerline is described as follows: Beginning at a point that is West 249.95 feet from the Northeast corner of Section 19, Township 6 North, Range 40 East, Boise Meridian, Madison County, Idaho, and running thence South 278.97 feet, TRACT 2: Beginning at a point that is West 397.06 feet and South 278.97 feet from the Northeast corner of Section 19, Township 6 North, Range 40 East, Boise Meridian, Madison County, Idaho, and running thence South 90 feet; thence West 152.67 feet; thence North 30 020'20" East 104.28 feet; thence East 100 feet to the point of beginning. RESOLUTION 2014 —14 - PAGE 3 DY RE%b URO o C I TY OF REXBURG America's Family Community Exhibit B Basic American Foods, Inc Property at approximately 51h west between (51h North and 71h North); Area Two (2) — Attachment A Beginning at the SW corner of the NW1/4 of the NWI/4 of Section 19, Township 6 North, Range 40 East, B.M ; thence North 984.50 ft.; thence S 52021'47" E 260 ft.; thence S 26°53'48" E 926.45 ft.; thence west 625 ft. to the point of beginning. RESOLUTION 2014 —14 - PAGE 4 HOPKINS RODEN CROCKETT HANSEN & HOOPES, PLLC SEWARD H. FRENCH (1941-1984) TED C. SPRINGER (1943-1984) WILLIS B. BENJAMIN (1939-1999) .lune 23, 2014 LARY S. LARSON E-MAIL larylarson @hopkinsroden.mm Stephen P. Zollinger, Esq. City of Rexburg P.O. Box 280 Rexburg, Idaho 83440 Re: Basic American Foods, Inc. Proposed land exchange Dear Steve: We represent Basic American Foods, Inc. You suggested that it might be helpful for us to put into writing the details of the land exchange that Basic American and the City of Rexburg have been informally considering over the last few weeks. I have attempted to do that. Before you make use of this document, let me know if there are any other points that the City would find important to discuss from its perspective. 1. Basic will trade that portion of its Madison County property lying south and west of the South Fork of the Teton River (about 5.5 acres currently subject to the License Agreement dated August 14, 2007, called the "Basic Parcel") for the roughly 1.6 -acre parcel on W. 1000 North between the railroad tracks and the credit union property on N. 2"d East (called the "City Parcel'). The City Parcel will include any water rights associated with the well on the property. 2. The City will provide a survey of the Basic Parcel. 3. Basic will have 90 days after the signing of the agreement to complete its inspections of the City Parcel, to ensure that there are no prohibitive environmental conditions or easements. 428 PARK AVENUE • IDAHO FALLS, ID • 83402 (208) 523-4445• FAX (208) 523-4474 • WWW.HOPKINSRODEN. COM 599 WEST BANNOCK • PO BOX 2110 • BOISE. ID • 83701-2110 • 1208) 336-7930 • FAX (2031336-9154 • W W W.HOPKINSRODEN.COM June 23, 2014 Page 2 4. Real property taxes on both parcels will be pro -rated as of the date of the exchange. Otherwise, both parcels will be traded free and clear of all liens and encumbrances that would affect their value or future use. 5, The City will provide a title report on the City Parcel, and Basic will provide a title report on the Basic Parcel. Each will provide title insurance for the other. The agreed value of both parcels will be $190,000. 6. The trade will be considered a tax-free "1031 exchange" from Basic's standpoint. The City will cooperate with that objective, although the City will not be obligated to incur any expense to accomplish that. 7. The Basic Parcel will be transferred to the City subject to a restriction that limits its use to public, recreational use other than hunting or target shooting. No other public, commercial, industrial, or residential development will be allowed. 8. Upon the filing of an appropriate application by Basic, the City will grant a building permit for Basic to place an internally illuminated business sign on the north- east corner of the City Parcel. If you have any other thoughts about the terms of the transaction, don't hesitate to give me a call. Sincerely, Lary LSL/ln (90243915;1)