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.