COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 170021

Approving and authorizing settlement of a claim asserted by Continental Steel, LLC, by and through the Michael Frost Living Trust through an exchange of City owned real property near Kessler Park for Trust property surrounded by park land.

WHEREAS, the City was awarded a grant to construct the Cliff Drive & Spirit of Kansas City Scenic Byways Trail (“Trail Project”); there is a limited time to utilize the grant funds, and benchmarks for the preparation and construction of the Trail Project must be met; and

WHEREAS, the City owns certain real property located in Kansas City, Jackson County, Missouri, being a part of Lots 70 and 71 of Hurcks Subdivision of Guinotte Bluff, (“City Property”), which is more fully described in Exhibit A, attached hereto which has not been dedicated for parks purposes and some of which is located north of the Trail Project; and

WHEREAS, Michael D. Frost, as Trustee of The Michael Frost Living Trust dated March 3, 2009 (“Frost Trust”) owns certain real property located south of the Trail Project which is no longer accessible by developed municipal roads or streets, which are more fully and legally described in Exhibit B, attached hereto (“Frost Trust Property”); and

WHEREAS, Continental Steel Fabrication, LLC, a Missouri limited liability company, with a business facility address of 1600 Dora Street in Kansas City (“Continental Steel”) operates a manufacturing facility off of Dora Street to the north of the Trail Project;  Continental Steel is affiliated with the Frost Trust; and

WHEREAS, Continental Steel has been traversing across the City Property to get to the Frost Trust Property on a pathway that intersects with the proposed trail; the pathway could impair the development and use of the Trail Project;

WHEREAS, Continental Steel asserted a claim to an implied easement across City Property and demanded an accommodation to be allowed access to the Frost Trust Property across and intersecting with the Trail Project, and the City disputed such claim (the “Dispute”); and

WHEREAS, the Office of the City Attorney has reviewed the basis of the Dispute, and developed a proposed settlement which was presented to the Board of Parks and Recreation Commissioners on December 20, 2016, and such Board approved Resolution No. 30759 which authorized the Director of Parks and Recreation Department (“Director”) to complete negotiations upon the settlement agreement by which the City would transfer a portion of the City Property with access from Dora Street (“City Trade Property”) for use by Continental Steel in exchange for the Frost Trust Property which is intended to be dedicated for parks purposes; and

WHEREAS, negotiations have concluded on the form of the Settlement Agreement, Exchange of Real Property, and Release of Claims (the “Settlement Agreement”), substantially in the form of Exhibit C; and

WHEREAS, interim steps have been taken described in the Settlement Agreement by obtaining a Phase I Environmental Assessment on the Frost Trust Property which has been completed and is deemed acceptable to the Director, and the potential City Trade Property has been identified and is legally described on Exhibit D;

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The Director of Parks and Recreation Department is hereby authorized to execute the Settlement Agreement, which form once signed being retained by that Department as conclusive evidence of the exercise of that authority and to implement the Settlement Agreement.

Section 2. The Director of the General Services Department is authorized to execute the Special Warranty Deed for the City Trade Property substantially in the form as Exhibit 3-Aiv of the Settlement Agreement, and other related closing documentation as needed.

Section 3. The Director of Public Works is authorized to execute the Non-exclusive Revocable License Agreement for a portion of Dora Street substantially in the form as Exhibit 3-Av of the Settlement Agreement.

Section 4. Upon the passage of a further Resolution from the Board of Parks and Recreation Commissioners to accept the Frost Trust Property as a part of the parks system in accordance with Charter Section 1003(b), and upon execution by the Frost Trust of the Trustee’s Warranty Deed, substantially in the form as Exhibit 3 Bi of the Settlement Agreement, then the City Manager is hereby authorized to accept the Frost Trust Property on behalf of the City for park purposes and declare it to be park property and to remain such forever in accordance with the provisions of Section 1004(a) of the Charter as an addition to the Kansas City, Missouri, Parks and Recreation and Boulevards System. The executed Acceptance of the form of the Trustee’s Warranty Deed, as recorded, shall be conclusive evidence of the Board’s subsequent approval.

Section 5. The Settlement Agreement shall be implemented with funds already allocated for parks purposes from funds previously appropriated in Account No. 3090-708409-B-70141301 in an amount not to exceed $25,000.00 to implement the Settlement Agreement.

_____________________________________________

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

___________________________________

Randall J. Landes

Director of Finance

Approved as to form and legality:

___________________________________

Amelia McIntyre

Assistant City Attorney

Exhibit A

City Property-Entire Tract

Not limited to Trade Property

All of Lots 70, 71 and 72, Hurck's Subdivision of Guinotte Bluff, a subdivision in Kansas City, Jackson County, Missouri, except all that part of Lots 70, 71, and 72 of said subdivision, lying north of a line drawn from the west line of Dora Avenue to the east line of Lexington Avenue which is 75 feet south of (measured at right angles) and parallel to the south lines of Lots 9 and 18 of Block 12 and Lot 19 of Block 9 of Guinotte's Addition and said lines extended and except that part of Lot 72 of said subdivision described as follows: Beginning at the intersection of the northeasterly line of Lexington Avenue with the southerly line of Dora Avenue; thence southeasterly along the northeasterly line of Lexington Avenue a distance of 170 feet; thence north along a straight course to a point in the southerly line of Dora Avenue, which point is 130 feet easterly from the intersection of the northeasterly line of Lexington Avenue with the southerly line of Dora Avenue; thence westerly along the southerly line of Dora Avenue a distance of 130 feet to the point of beginning, being the same land in deed recorded as Document No. B570825 in Book B5945, page 310; subject to any part thereof used for public right-of-way.

Exhibit B

Michael Frost Living Trust Properties

Tract 1:

Lots 9, 10, 11, Block 2, North Side Place, a subdivision in Kansas City, Jackson County, Missouri.

Currently being Jackson County Tax Parcel No. 12-730-01-06-00-0-00-000 with a 2016 market value of $1,098.00 for tax purposes, and consisting of approximately 7,117.24 square feet.

Tract 2:

Lots 9 through 16, Inclusive, Duffy’s Addition, a subdivision in Kansas City, Jackson County, Missouri.

Currently being Jackson County Tax Parcel No. 12-730-01-11-00-0-00-00 with a 2016 market value of $1,098.00 for tax purposes, and consisting of approximately 18,881.578 square feet.

Tract 3:

Lots 20, 21, 22, 23 and 24, Inclusive, Duffy’s Addition, a subdivision in Kansas City, Jackson County, Missouri.

Currently being Jackson County Tax Parcel No. 12-730-01-12-00-0-00-00 with a 2016 market value of $1,098.00 for tax purposes, and consisting of approximately 11,744.015 square feet.

Tracts 1 through 3 have an aggregate of $3,294.00 of 2016 current market value for tax purposes for 37,742.83 square feet resulting in $0.087 per square foot.

Exhibit C

Proposed form of Settlement Agreement

Exhibit D

City Trade Property

January 19, 2017

LEGAL DESCRIPTION

LOT 70, HURCK’S SUBDIVISION OF GUINOTTE’S BLUFF

CITY OF KANSAS CITY, JACKSON COUNTY, MISSOURI

All that part of Lot 70, Hurck’s Subdivision of Guinotte’s Bluff, a subdivision in the City of Kansas City, Jackson County, Missouri, more particularly described as follows: Beginning at the Northeast corner of said Lot 70; thence South 2 degrees 41 minutes 40 seconds West, along the East line of said Lot 70, a distance of 167.60 feet; thence North 87 degrees 18 minutes 23 seconds West, a distance of 164.00 feet; thence North 14 degrees 39 minutes 24 seconds East, a distance of 40.03 feet; thence North 55 degrees 35 minutes 35 seconds East, a distance of 13.06 feet; thence North 2 degrees 12 minutes 21 seconds West, a distance of 26.40 feet; thence North 23 degrees 42 minutes 18 seconds West, a distance of 33.94 feet; thence North 15 degrees 49 minutes 24 seconds East, a distance of 129.31 feet, to a point on the North line of said Lot 70, being the South right-of-way line of Dora Avenue, as now established; thence South 62 degrees 19 minutes 53 seconds East, along the North line of said Lot 70, a distance of 147.00 feet, to the point of beginning.

The above described tract of land contains 30,506 square feet, or 0.700 acres, more or less.