HomeMy WebLinkAboutItem 04 Krey Property Donation
AGENDA ITEM SUMMARY
Meeting Date:
Meeting Type:
Department:
Staff Contact:
June 4, 2007
Regular Session
CMO/CAO
Jerry Smith/Joe ty
Leahy
x3729
10 minutes
S P R I N G FIE L D Staff Phone No:
C I T Y C 0 U N C I L Estimated Time:
ITEM TITLE: KREY PROPERTY DONATION
ACTION
REQUESTED:
Approve/Not Approve:
A motion to have the Mayor sign an Agreement by Millie Krey Regarding a
Restricted Donation of Property to the City of Springfield for Support of the
. Justice Center and Police Services in the Community of Springfield.
ISSUE
STATEMENT:
Mrs. Millie Krey and her family members representing property interests of
the Krey Trust have reached agreement with the City on the terms regarding
the donation of the 0.9-acre property on the 4900 block on the southside of
Main Street. The donation agreement (Attachment 1) includes conveying.
one-half the interest in the property to the City of Springfield with
restrictions on how the proceeds of any sale of the assets could be used by
the City of Springfield.
ATTACHMENTS: 1. Restricted Donation by Millie Krey to the City of Springfield for
Support of Justice Center/Police Services in the Community of Springfield
DISCUSSION/
FINANCIAL
IMPACT:
The donation and a subsequent sale ofthe property (valued by recent
appraisal at about $327,000) would likely entail netting out some costs for
legal services, and (based on a Levell Environmental Study) removal of
asbestos tile and moldy debris, and other relatively incidental costs. Initial
estimates are $20-25,000 for these activities and these expenses would be
deducted from the proceeds after sale.
RESTRICTED DONATION BY MILLIE KREY TO THE CITY OF
SPRINGFIELD FOR SUPPORT OF JUSTICE CENTER/POLICE SERVICES
IN THE COMMUNITY OF THE CITY OF SPRINGFIELD
RECITALS :
A. WHEREAS, Mildred (Millie) E. Krey and her husband Kenneth (Ken) M.
Krey, now deceased, are long-time residents and supporters of the
community of the City of Springfield; and,
B. WHEREAS, Millie Krey and Ken Krey believe in the importance of an
effective Police Department providing for a safe and liveable community;
and,
C. WHEREAS, Millie Krey has been a much appreciated benefactor of the
Springfield Police Department including previous donations of time, energy
and financial support for the Cityof Springfield K-9 Unit; and,
D. WHEREAS, Millie Krey and Ken Krey executed certain declarations of trust
and quitclaim deeds on December 21, 1995, which collectively created a
joint trust, herein referred to as the Krey Trust, with Millie Krey and Ken
Krey as the initial Trustees; and,
E. WHEREAS, the Krey Trust assets included, among other things, that
certain parcel of real property located at 4909, 4911 and 4915 Main
Street, Springfield, Oregon, Lane County Map No. 17-02-33-32-06400 (the
Property), as more particularly described on the attached Exhibit A; and,
F. WHEREAS, at Ken Krey's death on June 29, 2004, the Krey Trust split into
two separate and equal shares, the marital share and the non-marital
share; and
G. WHEREAS, Millie Krey, as the surviving Trustee, is the trustee of both
shares, each of which owns, among other things, an undivided one-half
interest in the Property; and
ATTACHMENT 1 - PAGE 1
.. /' -
H. WHEREAS, Millie Krey, as the surviving settlor of the Krey Trust has an
unrestricted right to revoke or amend the marital share created under the
Krey Trust and otherwise deal with the assets of the marital share as she
wishes; and
I. WHEREAS, the Property has an approximate real market value of
$327,000 as determined by an appraisal prepared by Paul H. Schaffner,
dated November 9, 2006, with an effective date of value of November 6,
2006; and,
J. WHEREAS, Millie Krey wishes to donate the undivided one-half interest in
the Property owned by the marital share created Under the Krey Trust to
the City of Springfield for the use and support of the City of Springfield
Police Department, and specifically for the support of the proposed
Springfield Justice Center (Police, Court and Jail Facility) currently
proposed to be built in the area bounded by A Street, C Street, Pioneer
Parkway and 5th Street in downtown Springfield; and,
K. WHEREAS, the City of Springfield gratefully acknowledges the gift and
intends to sell the donated undivided one-half of the Property and use the
net proceeds to the City from the sale for support of Police services and
the Springfield Justice Center as directed by donor Millie Krey; and,
L. WHEREAS, the City of Springfield is a municipal corporation of the state of
Oregon and contributions to a municipal corporation are deductible if
made for exclusively public purposes.
NOW THEREFORE, based upon the foregoing Recitals the parties agree as
follows:
1. DONft,TION. Subject to the conditions set forth in Section 3, Millie Krey
(the Donor) hereby agrees to give and donate, through a separate deed,
to the City of Springfield, a municipal corporation of the state of Oregon,
the undivided one-half interest in the Property owned by her as trustee of
the marital share created under the Krey Trust.
2. SALE OF PROPERTY. Millie Krey, as trustee of the non-marital share
created under the Krey Trust, owner of the other one-half undivided
interest in the Property, hereby agrees to cooperate in the sale of the
Property with the City of Springfield, and agrees to allow the City of
Springfield to take the lead in negotiating with potential buyers for the
sale. .
--------~---- ~ - -----~ . -- - - ~- --- - ---~
ATTACHMENT 1 - PAGE 2
3. CGNDmONS. The City of Springfield hereby accepts from Millie Krey,
individually, and in her capacity as trustee of the marital share created
under the Krey Trust, the gift described in Section 1 on the following
conditions:
Upon sale of the Property as set forth in Section 2 above, the City's one-
half of the net sale proceeds (the City's Proceeds) are to be utilized solely
for purposes of support of the Police Department and Springfield Justice
Center including specifically the construction of the Police, Courts and Jail
Facility as described above in Recital J. This support may be
accomplished by the following actions by City:
A. Purchase of the Carter Building premises located at 220 North 5th
and 430 North A Street, Springfield, Oregon, including office space
as well as the leasehold premises of the Lane County Justice Court
and the parking lot immediately to the north. That property is
known as Lane County Map Identification No. Section 35, Township
-17, Range 03, Quarter 31, TL 01200-801, TL 02900-801, TL 02800,
TL 01100, and TL 01000. The City agrees to use its best
reasonable efforts to acquire the Carter Building. Donor
understands that the City's Proceeds may be insufficient to
purchase the Carter Building real property; however, Donor agrees
that this condition may be complied with by the application by the
City of the City's Proceeds to the purchase price of the Carter
Building. Donor understands that acquisition of the Carter Building
by the City of Springfield will be a major component of the
Springfield Justice Center development in the fol/owing ways:
The parking area north of the building will be important to the
development of the Police, Court and Jail Facility. In the event the
Carter Building is ultimately renovated or removed, the location
occupied by the Carter Building and parking lot will be available for
other municipal functions in proximity to the Police, Court and Jail
Facility.
Notwithstanding the foregoing, both Donor and City agree that
nothing herein shall be construed as a limitation upon the power of
the Common Council of the City of Springfield to sell, trade, or
otherwise dispose of the Carter Building or any portion of the real
property designated as the Carter Building herein in the event that
the Common Council of the City of Springfield determines that it is
in the public interest to do so. In the event of such sale, trade or
disposition, any funds realized in the sale of said real property shall
be directed and utilized as follows:
-----~------- ~-- -.__~ ~___n______,_____ _~____ ___
ATTACIIMENT 1 - PAGE 3
i. For the' expenses and' costs of sale including realtor's
commission, if any.
ii. City of Springfield shall apply an amount received from any
sale of the Carter Building not less than the net proceeds
received by the City from the sale of the City's one-half
undivided interest in the Property for the purposes described
in Section 3B hereinbelow.
iii. All remaining funds from the sale of the Carter Building may
be directed and utilized for whatever purpose the Common
Council in its discretion may determine.
B. In the unlikely event that City is unable to acquire the Carter
Building or the City determines that it is not in the public interest to
acquire the Carter Building Property, Donor agrees that the City's
Proceeds may be utilized for other construction and equipment
purposes for the Springfield Justice Center, including specifically
but not limited to radio systems, communication systems, internal
security, and Annex Building upgrade.
C. Except as described in Sections A or B above, no funds received by
the City from the donation or derived from the sale of the City's
undivided one-half interest in the Property shall be used for the
purposes of General Fund operations. Funds must be specifically
utilized as specified herein.
4. ACCEPTANCE. The City of Springfield hereby graciously accepts the gift of
the real property from Donor, Millie Krey, subject to the conditions
specified herein.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
ATTACHMENT 1 - PAGE 4
, 5. NO OTHER CONSIDERATION. Donor has received no consideration for Donor's
gift other than as set forth in this document.
DONOR:
CITY OF SPRINGFIELD
By:
Mildred (Millie) E. Krey
Mayor Sid Leiken
By:
Deborah D. Krey
Christine Lundberg, Council President
i. l ::- t....\;;. r:.
STATE OF OREGON)
) 55.
County of Lane )
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Personally appeared before me this _ day of , 200_ the
above named Mildred (Millie) E. Krey, and acknowledged the foregoing instrument to be
her voluntary act and deed.
Notary Public for Oregon
My Commission Expires:
STATE OF OREGON)
) ss.
County of Lane )
Personally appeared before me this _ day of , 200_ the
above named Deborah D. Krey, and acknowledged the foregoing instrument to be her
voluntary act and deed.
Notary Public for Oregon
My Commission Expires:
RESTRICTED DONATION AGREEMENT Page -5-
ATTACHMENT 1
*** ADDITIONAL NOTARIES ON FOLLOWING PAGES ***
ATTACHMENT 1 - PAGE 5
STATE OF OREGON)
) ss
County of Lane )
Personally appeared the above named Sid Leiken as Mayor for the City of
Springfield and acknowledged the foregoing instrument to be his voluntary act and
deed on this _ day of , 200_,
Notary Public for Oregon
My Commission Expires:
STATE OF OREGON)
) ss
County of Lane )
Personally appeared the above named Christine Lundberg as Council President
for the City of Springfield and acknowledged the foregoing instrument to be his '
voluntary act and deed on this _ day of , 200_,
Notary Public for Oregon
My Commission Expires:
RESTRICTED DONATION AGREEMENT Page -6-
ATTACHMENT 1
,ATTACHMENT ~_ ~ PAGE 6