HomeMy WebLinkAbout8740RESOLUTION NO. 8740
A RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY
LOCATED AT 1225 EAST ORMAN AVENUE, PUEBLO, COLORADO
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO THAT:
SECTION 1.
The President of City Council is hereby authorized to execute a sales contract, approved
as to form by the City Attorney, for the purchase of the real property located in the City of
Pueblo, County of Pueblo, and State of Colorado, and described as Lot 34, Block 11, College
Hill Subdivision, 2nd, more commonly known as 1225 East Orman Avenue for a sum not to
exceed $50,000. The acquisition of such property is hereby approved.
SECTION 2.
Funds shall be paid from the Economic Development Special Tax Fund (38- 1998 -100-
000- 040 -8950)
INTRODUCED June 28, 1999
BY Cathy A. Garcia
Councilperson
APPROVED: z n
President of of the Council
ATTEST:
City rk
COUNCIL AGENDA - BACKGROUND PAPER
TITLE: A resolution authorizing the acquisition of certain real property
located at 1225 East Orman Avenue, Pueblo, Colorado
DEPARTMENT: City Manager's Office
DATE: June 28, 1999
ISSUE: Should City Council authorize the acquisition of 1225 East Orman
Avenue
BACKGROUND: Convergys (formerly Matrixx Marketing) has been plagued with a
parking shortage for their employees which has also impacted their
ability to expand their operation. The property owners contacted
the City about purchasing their house since the house is now
surrounded by parking lots owned by the City. With the
acquisition of this house, the City will own approximately a half a
block facing Orman Avenue that will be converted into one large
parking lot for the general public as well as Convergys. The City
will retain ownership of the parking lots. The property was
appraised about a year ago in the range from $45,000 to $47,000.
Because of the lapsed time, the cost for a new appraisal, and the
costs to put up a fence and barrier on both sides of the house
because of our parking lots, administration feels the price of
$50,000 is appropriate.
FINANCIAL IMPACT: Funds for this acquisition in the amount of $50,000 will come from
the Economic Development Special Tax Fund (38- 1998 - 100 -000-
040- 8950).
I June 1999
Office of City Manager P i (•
# 1 City Hall Place LO i9�y
Pueblo, Colorado 81003�Y
Subject: City purchase of 1225 East Orman Avenue
Attention: Don Saling, Assistant City Manager
As you are aware, we are the joint owners of the subject property known as 1225 East Orman
Avenue. The living conditions have become unbearable at this location due to the adjacent
parking lot situation. And, the presence of this house prevents the City of Pueblo from
completing it's parking lot project. After much discussion, we have both concluded that it
would be in everyone's best interest to sell this property to the City of Pueblo at this time.
We have both concluded that a cash selling price of $50,000 would be very fair to the City of
Pueblo. While this amount is somewhat higher than the 25 August 1998 Appraisal amount of
$45,500 we feel that it is appropriate due to the following circumstances:
1. The 25 August 1998 appraisal is nine months out of date, and even at that time was
based on property values that were in themselves were already more than 6 months out of date.
Pueblo property values have increased substantially over the past year, and that increase should
be reflected in the selling price.
2. The Appraisal concludes that "the subject property is in the value range from $45,500
to $47,000" as of 25 August 1998, but somewhat arbitrarily selects the lower end of this range.
3. The Appraisal is significantly adversely influenced by "locational obsolescence ",
which seems somewhat unreasonable since the majority of that "locational obsolescence" is due
to this City of Pueblo parking lot project.
4. All three of the comparable properties used to establish the appraised value were
located within the sphere of influence of this parking lot project, and their values had been
adversely impacted by this same "locational obsolescence ". Two of the three comparables were
purchases by the City of Pueblo, and are no longer in' existence.
5. Based on our survey of the nearby realty market, replacement houses of comparable
size and quality that are a couple of blocks away from this parking lot project - and thus outside
of the adverse sphere of influence of this parking lot project - are currently being sold for in the
vicinity of $55,000 to $60,000.
6. The Appraisal concludes that it would cost $65,812 to replace the subject house, but
provides no justification for the large $19,000 depreciation used to reach the cost approach
number of $46,812.
7. It is unclear that the Appraisal has properly reflected the numerous improvements that
were made to 1225 Orman Avenue East over the past 10 years.
We have concluded that a selling price of $50,000 would be very fair - based on the passage of
time alone. In addition, a purchase at this time would eliminate additional expenses to the City
of Pueblo to perform the necessary adjacent improvements reasonably required to return this
I June 1999
2
property to an even modestly livable state - including barriers for physical protection from
vehicles using this parking lot, sound and headlight isolation, and intruder security.
If the selling price of $50,000 is acceptable, we are prepared to act quickly and complete this
sale so that the City of Pueblo can get on with the completion of this parking lot project. Please
give us a call if you would like to discuss these topics further.
Sincerely,
Crescencio G. Montoya
1225 East Orman Avenue
Pueblo, Colorado 81003
719 -543 -4504
and J nn M. Quigley
325 Malaga Drive
Santa Barbara, CA 93108
805- 969 -9606
Fax: 805- 969 -4340
1 1111111111 1111
1293083 08/23/1999 11:31A WD Chris C. Munoz
1 of 2 R 10.00 D 0.00 Pueblo Cty Clk 8 Ree.
W A R R A N T Y D E E D
THIS DEED, Made this 12TH day of AUGUST, 1999 between
Cresencio G. Montoya and Mary B. Montoya and JoAn M. Quigley
of the County of PUEBLO and
State of COLORADO, grantor, and
PUEBLO, a Municipal Corporation
whose legal address is 1 CITY HALL PLACE, PUEBLO, COLORADO 81003
of the County of PUEBLO and State of COLORADO, grantees:
WITNESSETH, That the grantor for and in consideration of the sum of FIFTY THOUSAND
AND 00 /100, ($50,000.00) Dollars, the receipt and sufficiency of which is hereby
acknowledged, has granted, bargained, sold and conveyed, and by these presents does
grant, bargain, sell, convey and confirm unto the grantee, his heirs and assigns
forever, all the real property, together with improvements, if any, situate,lying and
being in the county of PUEBLO and State of Colorado, described as follows:
Lot 34, Block 11, College Hills, Second Filing, County of Pueblo, State of Colorado.
also known by street and number as 1225 E. ORMAN AVENUE, PUEBLO, COLORADO 81004
TOGETHER with all and singular the hereditaments and appurtenances thereto
belonging, or in anywise appertaining and the reversion and reversions, remainder and
remainders, rents, issues and profits thereof, and all the estate, right, title,
interest, claim and demand whatsoever of the grantor, either in law or equity, of in
and to the above bargained premises, with the hereditaments and appurtenances.
TO HAVE AND TO HOLD the said premises above bargained and described, with the
appurtenances, unto the grantee, his heirs and assigns forever. And the grantor, for
himself, his heirs and personal representatives, does covenant, grant, bargain, and
agree to and with the grantee, his heirs and assigns, that at the time of the
ensealing and delivery of these presents, he is well seized of the premises above
conveyed, has good, sure, perfect, absolute and indefeasible estate of inheritance, in
law, in fee simple, and has good right, full power and lawful authority to grant,
bargain, sell and convey the same in manner and form as aforesaid, and that the same
are free and clear from all former and other grants, bargains, sales, liens, taxes,
assessments, encumbrances and restrictions of whatever kind or nature soever, except
general taxes for 1999 and subsequent years; except easements, restrictions,
covenants, conditions, reservations and rights of way of record, if any;
The grantor shall and will WARRANT AND FOREVER DEFEND the above - bargained premises
in the quiet and peaceable possession of the grantee, his heirs and assigns, against
all and every person or persons lawfully claiming the whole or any part thereof. The
singular number shall include the plural, the plural the singular, and the use of any
gender shall be applicable to all genders.
IN WITNESS WHEREOF the grantor has executed this deed on the date set forth above.
J 6Xn M • • ey I
/ n
Cresencio G. Montoya
A X1
Mary B.' Montoya
STATE OF COLORADO }
} ss. The foregoin instrument was acknowledged before
County of PUEBLO } me thi day of AUGUST, 1999
by Cresencio G. Montoya and Mary B. Montoya
Witness my hand and official seal.
My commi on expires August 11, 2001
�Z � C
' , ` r.` "• " " ' rr rh, r , NOTARY PUBLIC
627 North Main Street
No. 932A. Rev. 7 -84 \ Al• Pueblo, Colorado 81003
.' C' V c.
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STATE OF: CALIFORNIA )
) ss.
COUNTY OF: c S +AI7* 640 )
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1295083 08/23/1999 W 51A WD Chris C. Munoz
2 of 2 R 10.00 D 0.00 Pueblo Cty Clk & Rec.
The foregoing instrument was acknowledged before me this day of
AUGUST, 1999 by: JoAn M. Quigley
Witness my hand and official seal.
My commission expires:
• � 1
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Not y Public
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Aff
ISSUED BY
TRANSNATION T ITLE I NSURANCE COMPANY OWNER'S POLICY OF TITLE INSURANCE
Transnation
A LANDAMERICA COMPANY"
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND
THE CONDITIONS AND STIPULATIONS, TRANSNATION TITLE INSURANCE COMPANY, an Arizona corporation, herein called the
Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in
Schedule A, sustained or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided
in the Conditions and Stipulations.
IN WITNESS WHEREOF, TRANSNATION TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto
affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company.
TRANSNATION TITLE INSURANCE COMPANY
Attest: 16, 1991 r� By:
Secretary 4 RIZONa President
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys'
fees or expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting,
regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improve-
ment now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of
which the land is or was a part; or (iv) environmental protection, or the affect of any violation of these laws, ordinances or governmental regula-
tions, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or
alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect,
lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding
from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without
knowledge.
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed
in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured
by this policy.
4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation
of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on:
(a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or
(b) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer
results from the failure:
(i) to timely record the instrument of transfer; or
(ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.
NM 1 PA 10
ALTA Owner's Policy (10- 17 -92)
Face Page
Form 1190 -56
ORIGINAL
Valid Only If Schedules A and B and Cover Are Attached
TRANSNATION TITLE INSURANCE COMPANY
POLICY OF TITLE INSURANCE
SCHEDULE A
Amount of Insurance: $ 50,000.00 Policy No.: 7569934
Date of Policy: August 23, 1999 at 11:51 A.M. up to and including
Reception No. 1295083
1. Name of Insured:
Pueblo, a Municipal Corporation
2. The estate or interest in the land described herein and which is
covered by this policy is: FEE SIMPLE
3. The estate or interest referred to herein is at Date of Policy vested
in:
Pueblo, a Municipal Corporation
4. The land referred to in this Policy is described as follows:
(SEE ATTACHED PAGE FOR LEGAL DESCRIPTION)
TRANSNATION TITLE INSURANCE COMPANY
Policy No.: 7569934
LEGAL DESCRIPTION
Lot 34, Block 11, College Hills, Second Filing, County of Pueblo, State of
Colorado.
Page 2