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HomeMy WebLinkAboutItem 24 Gray House Intergovernmental Agreement AGENDA ITEM SUMMARY Meeting Date: Meetiog Type: Departmeot: Staff Contac,t: S P R I N G FIE L D Staff Phone No: CITY CO UN C I L Estimated Time: ITEM TITLE: GRAY HOUSE INTERGOVERNMENTAL AGREEMENT January 22, 2008 Regular Session City Manager~ffice Jeff Towery \:/ \, 3627 5 Minutes ACTION REQUESTED: Authorize/not authorize the City Manager to execute the proposed agreement with Willamalane Park and Recreation District for maintenance and management of the Gray Homestead property. ISSUE STATEMENT: The City and Willamalane jointly purchased the Gray Homestead property in July, 2006 consistent with the Heritage Park Pre-Development Agreement adopted by the City and the District earlier that year. The proposed Intergovernmental Agreement (IGA) formalizes the arrangement contemplated in the pre-development agreement. In summary, the facility is jointly owned and the District provides day-to-day management and maintenance of the house and grounds. The District will pay all utilities and retain any rental revenue generated from the site. Both parties will jointly agree on the final use of the facility, currently expected to be as a community meeting place, similar to the Tomseth House at Dorris Ranch. The City has the option to convey its interest in the property to the District in the future. The City Attorney and Agent of Record have both reviewed and approved the IGA. ATTACHMENTS: Attachment 1: Intergovernmental Agreement Attachment 2: Willamalane Agenda Memo DISCUSSION/ FINANCIAL IMPACT: None INTERGOVERNMENTAL AGREEMENT (Gray Homestead Maoagement Agreement) BETWEEN: The CITY OF SPRINGFIELD, an Oregon Municipal corporation ("CITY") and The WILLAMALANE PARK AND RECREATION DISTRICT, a special purpose district duly formed under the laws efthe State of Oregon ("DISTRICT") EFFECTIVE DATE: ,2007 RECIT ALS A. Whereas,ORS 190.010 provides that units of local government may enter into agreements for the performance of any or all functions and activities thai a party to the agreements, its officers or agents, have authority to perform; B. Whereas, CITY and DISTRICT jointly purchased the historic Gray Homestead property in July 2006 as required by the Heritage Park Pre-Development agreement approved by the Springfield City Council and the Willamalane Park & Recreation District Board of Directors on June 29, 2006; C. Whereas, the three-acre Gray Homestead property is located at 7575 McKenzie Highway, Springfield, Oregon and includes the original homestead house (Gray House); D. Whereas, the Heritage Park Pre-Development agreement requires the CITY and DISTRICT to manage and maintain the Gray Homestead under certain conditions; E. Whereas, it has been agreed that until the Gray Homestead is leased to Heritage One, LLC as stipl,llated in the Heritage Park Pre-Development agreement, the Gray House shall be used and managed as a single family residence; F. Whereas, the DISTRICT has set aside funding to improve the Gray House to assure its acceptability as a single family residence; and G. Whereas, the CITY and DISTRICT desire to assign management and maintenance 'responsibility for the Gray Homestead consistent with the Pre-Development Agreement and aligned with the goals of each agency. AGREEMENT NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS, WHICH ARE EXPRESSLY MADE A PART OF THIS AGREEMENT, THE PARTIES HEREBY AGREE AS FOLLOWS: 1. The property will be owned equally by the CITY and DISTRICT. 2. The DISTRICT will manage the day-to-day operations of the property. The DISTRICT will keep the CITY informed of any significant issues and/or changes. 3. The DISTRICT will manage and maintain the property as outlined in the Pre- Development Agreement and Sales Agreement. 4. The District will add the property coverage to their blanket policy and name the City as an additional insured. The coverage shall be "all risk of loss" with a $1,000 deductible. Any uninsured losses, premiums, deductibles will be shared equally'by the parties. The ,~___~___ _ ~ ~ J_ ATTACflMENT 1 - PAGE 1 District will solicit quotes for flood and earthquake coverage and if it is mutually agreed upon buy the coverage and shared the premiums equally. Each party will add the location to their respective liability policy and sign a bilateral subrogation waiver. 5. The DISTRICT will pay for all utilities. 6. The DISTRICT will receive any revenue generated from rental or use of the site. 7. The DISTRICT will be solely responsible for maintaining the property and to make any necessary repairs to the house to keep it secure, safe, and present~ble. 8. The DISTRICT will also improve the house to ensure it can be used as a caretaker, single-family residence until Heritage One LLC begins its development on Heritage 'Park as described in the Pre-Development Agreement. 9. The DISTRICT may obtain an architect or other qualified consultant to provide a general assessment of the house that would outline additional repairs to the building in priority order to ensure that the integrity of the building is maintained. This list will be utilized by the DISTRICT to prioritize improvements beyond critical structural repairs. 10. The DISTRICT and CITY will jointly agree upon a final use of the building. At this point, it is expected that the house will be used similar to the Tomseth House at Dorris Ranch for meetings, family gatherings, small weddings, etc. The house will be decorated in a manner that reflects the history and heritage of the home. The Springfield Historic Commission will also be consulted. The Gray family will be encouraged to provide family artifacts and photographs that would be displayed within the house. 11. The CITY at its option may convey its interest in the property to the DISTRICT at a mutually agreeable time. 12. If Heritage One LLC does not begin development by the deadlines specified in the Pre- Development Agreement, the CITY and DISTRICT will consider selling the property. If sold to another party or agency, the proceeds would be split equally after the DISTRICT is reimbursed for its direct repair and improvement costs less any funds provided by City through its insurance carrier. ~\.J.ILu Approved by: City of Springfield Date: tJ ii::1.!! tl0 f' ""J _... ~:( i;",.~ ~ ,I~' .O',~ j" !,. .'~ '."lj,~/'- ''OJ Q.. " ~ r_ 'i ~ 1n .\:." >\1 ~,. ~,.-: ~ :. (i.. ,I ~ A~ \='~ ; - ',' >i. "J 'u.. 'i) . : U i'-();"~' ~-...1 _~~) L\~l~ D ATE: 1 t> r~:-l---"--'-----' n ' .. ,--~- __0"1 uFF'CC (1;" ~Jrl ,- f 'L vi' I,d;', ''"',HenNEY Willamalane Park & Rec tl I-:J-!( (lJ"1 Date: 2 ATTACf.IMENT 1 ~ PAGE 2 o Willamalane Park and Recreation District Community Recreation Center. 250 South 32nd St.. Springfield. OR 97478 541-736-4544, www.willamalane.org Agenda Memo DATE: November 14, 2007 TO: Board of Directors FROM: Bob Keefer, Superintendent SUBJECT: Gray House Intergovernmental Agreement Topic Should the District enter into an intergovernmental agreement with the City of Springfield for the maintenance and management of the Gray Homestead property located 7575 McKenzie Highway, Springfield, Oregon? Discussion In July 2006, the City of Springfield and the District jointly purchased the three- acre Gray Homestead property from Elva Gray as outlined in the Heritage Park Pre-Development Agreement. By agreement the District agreed to spend approximately $20,000 on the house to protect its historical integrity and facilitate its use as a temporary caretaker's residence. Later in July 2006 the house was broken into and stripped of its wiring and most of the plumbing was destroyed. Since that time, the District has been working with the City on an insurance claim and has secured $2,000 from the City's insurance company to help offset a portion of repair costs. In addition, the District maintenance staff and contractors have slowly repaired the damage and upgraded the infrastructure of the house to ensure its usability as a caretaker residence. The Heritage Park Pre-Development Agreement requires that the District and City maintain and manage the property. The proposed intergovernmental agreement (IGA) is attached to this memo and formalizes this arrangement. In general terms, the District will be responsible for the day to day management and maintenance of the property. The rental income from the tenant (caretaker) will be used to offset a portion of the improvement and repair costs and cover ongoing maintenance and management of the residence. In the near future, the City and District will have to determine the final best use of the facility. At this point, general agreement is focused toward using the house as a community meeting space similar to the Tomseth House at Dorris Ranch. When Heritage LLC secures their development agreement for the adjoining 212 acres from the City, they will also secure a 1 O-year lease from the District for the Gray House and property. At that point, the caretaker will be required to vacate the residence and Heritage will become responsible for the care of and improvements to the house. By agreement, Heritage may make improvements to the property after conferring with the District. Such improvements must be ATTACHMENT 2 - PAGE 1 consistent with maintaining the property's historical integrity and its future use as a community meeting space. Heritage may receive a maximum of $60,000 in SDC credits for improvements to the property as approved by the District. Operational/Policy Impacts This IGA provides the formal and legal basis for the District to actively manage the Gray Homestead property on behalf of the City. It is consistent with the previously approved Heritage Park Pre-Development Agreement. The rental income will be used to offset our ongoing maintenance and management cost of the property and will also assist the District in recovering a portion of the improvement costs that have been spent on the building to date. ReQuested Action Consider a motion to delegate authority to the Board President and Superintendent to execute the intergovernmental agreement between the City of Springfield and Willamalane Park and Recreation District for the maintenance and management of the Gray Homestead property. ATTACHMENT 2 - PAGE 2