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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 11/30/1981 I Kent, Washington November 30, 1981 A special cial meeting of the Kent City Council, for which proper legal notice has been given, was called to order by Mayor Pro Tempore Len McCaughan. Present: Councilpersons Bailey, Hamilton, B. Johnson, J. Johnson, Masters, McCaughan and Mooney, City Administrator Cushing, City Attorney Mirk. Also present: Parks Director Wilson and H. Adams. The audience consisted of W. Carter of the Kent News Journal and one citizen. The purpose of the meeting was determined to be to further consider the purchase of approximately 9 acres adjacent to the Kent Meridian High School campus, from Norman Heutmaker for $613,000. Cushing noted that the City had been negotiating with Heutmaker and that the provision for $22-24 , 000 in interest for the approximate six month period until the IAC grant is received had been eliminated and that the City could cash out or prepay at any time. Barney Wilson noted that the project would be financed by IAC 60% and the remaining 40% by the City, King County and the Kent School District. It was noted that the cost of the Gibson parcel was estimated at $68, 000, plus $5,000 for relocation in addition to the cost of the Heutmaker property. He presented a timetable for the contract with Heutmaker and a financial summary, all of which were filed for the record. Wilson noted that the 60/40% proposal to IAC instead of the usual 75/25% should enhance the City' s application to IAC. He ex- plained the terms of the purchase contract as follows: 12/1/81 - Acceptance of the agreement by the City. 12/3/81 - $5, 000 earnest money delivered to escrow. 1/5/82 - Closing date. City to pay additional $55, 000 down payment. 1/5/82 - 6/30/82 - No interest or payment on principal. 3/27 and 28/82 - IAC funding session in Olympia. If grant is approved, the balance will be paid and project closed. If the grant is not approved, the following will apply: 7/l/82 - $30, 000 payment due. 7/l/82 - 6/30/83 - Interest at 9% on $523, 000 balance. 11/18 & 19/82 - IAC funding session. If grant approved, project would be paid off approximately 2/20/83. If not approved, the following will apply: 7/l/83-6/1/87 - Contract providing for 48 monthly payments of $13,264. 63 amortized over four years, including interest at 10%, computed on the diminishing principal balance. Masters questioned Heutmaker' s requirement that the agreement be signed by December 1, before the City budget for 1982 has been finalized, not- ing that if the IAC application is not approved the City would be forced November 30, 1981 to pay the amount expected in grant funds and further questioned whether we could be certain that the School District and the County would provide their share of the funds. Cushing stated that the deadline specified by Heutmaker probably had to do with a tax advan- tage for him. He noted further that the purchase agreement would not impact the 1982 budget, that $102, 438 would be forthcoming from the School District and $69, 523 from the County. He pointed out that in 1983 the City could use general funds or monies from the environ- mental excise tax funds, if necessary. Wilson determined for Hamilton that the funds from the School District were not dependent upon a bond issue. Upon Masters ' question he fur- ther noted that the City would maintain the park area and that the maintenance of the other property to be purchased would be done on a cooperative basis with the School District. He pointed out that the road would be financed through an LID and that the School District would put in a parking lot and covered grandstand for the field through a bond issue. Wilson noted for McCaughan that the City would trade some land with the School District. He stated that one or both of the homes on the site could be used to house maintenance or operations personnel. Upon B. Johnson's question, Bailey stated that the environmental ex- cise tax fund contains $556, 896 committed in trust. Masters asked if it was anticipated that all of this would be used for this projec Bailey noted that this was not the intent of the tax, but that if, in 1983, it was necessary, that funds would be available from this source. He stated further that there is only so much land available, and while some citizens had been critical about how much land the City purchased, the survey conducted by the Parks Department indicated that those in the 30 to 45 year old bracket were willing to pay the extra taxes to meet this obligation for the future. Wilson noted for Masters that 84% of this group were home owners. Masters stated that while she was in favor of the acquisition, it would be prudent to wait until the entire City budget was adopted in December before committing the City to the purchase. Bailey opined that Cushing was confident that there would not be a problem, noting that he had nego- tiated with the seller to eliminate the interest payments between the closing and June 30, 1982. Upon McCaughan's question, it was determined that the cost of the Heutmaker parcel WITH the IAC grant would be $274, 758 and WITHOUT the IAC grant, $774, 569. Wilson and Adams noted that they were con- fident that the application for the grant would be approved and that the $3. 5 million in IAC funds was not tied in with the State budget; that the money was part of a bond issue, although the bonds had not yet been sold. McCaughan noted that the taxpayers were taking a 2 - _ November 30, 1981 "hold the line" attitude and that the City had other projects as well, such as the Comprehensive Parks Plan, the Capital Improvement Plan, Traffic Study and the East Hill Plan. He further opined that this proposal appeared to benefit the School District as much, or more, than it benefitted the City. Wilson stated that this was viewed as a community project, and as such should receive a high priority with IAC. McCaughan asked when a bond proposal for park projects might come before the citizens for approval. Wilson noted that for 10 or 12 years parks projects have operated under Forward Thrust, and that a report from the County on the "Pro-Parks" project was underway. B. Johnson commented that she had confidence in the recommendation of the staff and that if there were problems with this proposal they would have to be solved in 1983. Masters objected to having to take action on this proposal today, before the 1982 budget had been passed. HAMILTON MOVED to adopt Resolution 941 authorizing the acquisition of the property and authorizing execution of the necessary documents, Bailey seconded. Mooney noted that he would abstain from voting, since Heutmaker had contributed to the "Action Kent" election campaign. Motion carried with Masters voting against it and Mooney abstaining. The special meeting was adjourned at 5: 15 p.m. B. Johnson announced that Mr. Voorhis would make a presentation on the jail facilities project at 3: 30 p.m. on December 1. J. Johnson noted that there would be a meeting on December 9 at 4 : 00 p.m. on the 4th floor to discuss budget changes . Marie Jensen, CMC City Clerk - 3 -