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HomeMy Public PortalAboutAB 17-228 McCall Avenue Home Lease transactionMcCALL CITY COUNCIL 216 East Park Street AGENDA BILL McCall, Idaho 83638 Number AB 17-228 Meeting Date October 12, 2017 AGENDA ITEM INFORMATION  SUBJECT: Greystone Village #3, Lot 10, Block, 1563 McCall Avenue, Request for Assignment of Lease Department Approvals Initials Originator or Supporter   Mayor / Council     City Manager  Originator   Clerk     Treasurer / Support   Community Development     Police Department     Public Works     Golf Course    COST IMPACT: n/a Parks and Recreation    FUNDING SOURCE: n/a Airport      Library    TIMELINE: October 1, 2017 Information Systems      Grant Coordinator    SUMMARY STATEMENT: The City of McCall has a lease agreement with James J. Hurley and Lorrie L. Hurley for a single lot located at 1563 McCall Avenue. Mr. and Mrs. Hurley are selling this home to Stephen Keaveny and Amanda Keaveny. Accordingly, Mr. and Mrs. Keaveny will assume the land lease for Lot 10. During the negotiation of the purchase of the home the sellers required that the buyers pay half of the transfer fee. Mr. and Mrs. Keaveny are requesting that Council waive their half ($1250) of the transfer fee ($2500). The Keaveny’s are considered “qualified buyers” as they intend to live in the dwelling. The Keaveny’s both have jobs within the community. The Hurley’s were considered “non-qualified” buyers as they used the house as a second home. In the original Lease document, under Section Three, there is a provision where the Council may reduce or waive the transfer fee. It states specifically: Lessee further agrees, for itself, its successors, and assigns, that upon assignment of this Lease to a subsequent purchaser of the Premises, Lessee shall pay to Lessor a lease transfer fee of $2,500.00. This fee may be reduced or waived if, in the sole discretion of the Lessor, such transfer fee would constitute a hardship upon the Lessee. Lessor shall use the criteria developed for reduction of utility charges as a beginning point for determination whether Lessee qualifies for a complete or partial reduction in the transfer fee. Other factors to be considered will include, but not be limited to: whether Lessee meets the criteria as a qualified person set out in Section One of this Lease, the sale price of the improvements compared to the original purchase price and cost of other improvements, and total household income. Attached are the Assignment of Lease and Consent to Encumbrance documents.  RECOMMENDED ACTION: Waive $1250 of the transfer fee for Stephen and Amanda Keaveny and authorize the transfer of the land lease for Greystone Village #3, Lot 10, Block 3, from James J. and Lorrie L. Hurley to Stephen and Amanda Keaveny; consent to allow Stephen and Amanda Keaveny to encumber their interest in 1563 McCall Avenue, McCall, Idaho; and authorize the Mayor to sign all necessary documents.  RECORD OF COUNCIL ACTION  MEETING DATE ACTION