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GAC Minutes 1991 09/10GOLF COURSE ADVISORY COMMITTEE MINUTES September 10, 1991 Attending: Dave Engen, Chairman DeEtte McCarty Craig Collins Dan Hormaechea Ted Whiteman Bud Schmidt Charles Denham 1) D & D Land Trade Dan Hormaechea reviewed a letter fron Bill Killen (copy attached) written at the request of members of the golf course foundation rendering the opinion on the appraisal relative to the D & D land trade. Hormaechea stated that the foundation contacted Killen and Kerrick for a legal point of view and thats the extent of their involvement. Easements were in question as to whether or not the city is trading for land it currently has an easement for access through. After lengthy discussion Ted Whiteman inquired as to whether the city would benefit from the trade, is it in the city's best intrest? Dave Engen, along the some lines, asked "Can the city use the land specified by D & D, how much land does the city need for overflow parking and cart storage?" Dave Engen produced drawings of the parcel in questin with a 200' X 215' rectangular portion and asked if the committe thought this was adequate for city use. At this time the floor was open to motions. Ted Whiteman moved that the committee go on record objecting to the fact that the appraisal does not adequately consider easements in its appraised value of each parcel and further recommends that the city, during the process of trade, retain adequate land for cart storage and overflow parking no less than 1.5 acres. DeEtte McCarty seconded and the motion carried. Dan Hormaechea moved to have boundaries of the 1.5 acre plot defined as soon as possible. Ted Whiteman seconded and the motion carried. 2) The meeting with Mayor Allen was discussed briefly. Ted Whiteman produced his letter for committee approval. The committee agreed the letter was a positive step toward defining committee role in golf operations. Craig Collins moved that one statement be amended and the letter be sent. DeEtte McCarty seconded and the motion carried. 3) Spring Mountain Ranch Ted Whiteman moved that before city council approves layout and design of the Spring Mountain Ranch 9 holes, the committee would like to meet with developers to review the plans. Craig Collins seconded and the motion carried unanimously. 4) Cart Storage Design and Construction After much discussion about building design, cost and where money is to come from, Dan Hormaechea moved to ask Tom Haynes to produce a new drawing with spaces reduced from 10'X 12' to 8'X 11' to save area, also to decide on type of building. Ted Whiteman seconded and the motion carried. The committee needs feedback from private cart owners as to the type of building they desire. 5) Capital Improvements Bud Schmidt will provide forms for committee to re -prioritize capital improvements in October. 6) Winter Use of Clubhouse The city would like to see the clubhouse remain available through the winter carnival to host Christmas parties and other social gatherings. The committee recomended that Jim Mann come up with a proposal for restaurant to host or cater these events. 7) Mission Statement Bud Schmidt reported that the City council had recomended that the committee review Mission statement and have a work session to recomend amendments. The committee suggested that a council member or two sit in on this work session to bring all points of view into one room for discussion on the direction of committee. Dan Hormaechea moved that the committee is operating under Mission statement as of 1987, if there are any changes to this statement, it should be brought to the committee's attention. Craig Collins seconded and the motion carried. The meeting adjourned at 9:50 p.m. William M. Killen Carl B. Kerrick Law Offices of KILLEN & KERRICK, P.A. 200 East Park St. P.O. Box A.O. McCall, Idaho 83638 September 6, 1991 TO: McCall Golf Course Foundation c/o Dan Hormeachea, Secretary P. O. Box 187 McCall, Idaho 83638 FROM: William M. Killen Telephone: (208) 634-7118 FAX (208) 634-5880 RE: Review of Real Estate Consulting Group Appraisal - McCall Golf Course Parcels (Report Date of July 2, 1991) ATTN: Sam Alacano, Chairman Backccround: In response to your request I have reviewed the subject_f.appraisal In order to assess its validity and credibllity from a legal perspective. My understanding Is that the+ Foundation has received a request from the Chairman of the City's Golf Course Advisory Committee seeking their input on the document and they in turn elected to seek this legal opinion. Summary: My overall assessment is that the appraisal used, the analysis employed, and the conclusions rendered are reasonable and appropriate in light of the assumptions relied upon. However, certain of the assumptions themselves, appear to be at variance with the actual facts and circumstances and their legal consequences. As a result it is believed that the value estimates for certain of the parcels treated, No. 1 and 2 in particular are substantially flawed; that their appraised values are materially over stated as a result. Opinion: Parcel 1: The appraisal is based. in part, on the assumption that the parcel is subject only to a cart path access easement which is allegedly subject to being re-routed over the parcel to allow for further development (p. 46 - Utilites and Easements). A review of the subject easement and its language (Valley County Recorder's Instrument No. 87480, executed in 1974) does not support McCall Golf Course Foundation Page 2 September 6, 2991 this limited characterization. The express grant references "an easement for access between fairways Nos. 6, 7 and 8 of the golf course . . ." [presently holes 11, 12 and 13 respectively]. This language, coupled with the actual use both prior and subsequent to the grant indicates foot traffic, cart traffic, vehicular traffic, and utility lines crossing the subject parcel in at least two well-defined corridors. Meandering along and within the irregular northerly boundary of the parcel is the pathway used for foot and cart traffic essentially linking the 7th tee to the green and the 8th tee beyond. This corridor also carries a water line for the course which pre-existed the 1974 grant. A second branch of this pathway runs southward from a point roughly midway between the No. 7 tee and green linking up with the 6th green. This segment was substantially wider, providing vehicular access for course maintenance equipment and vehicles between fairways 6 and 7, as well as an additional water line running southerly to the 6th fairway. It is clear from the observations made in the Appraisal Analysis that no consideration was given to those routes save to---e limited extent, namely, the portion of the cart path meandering along the 7th fairway, because of its presumed moveable nature. In realty easement grants such as involved here, while moveable initially, namely, prior to their actual development, essentially "ripen" into fixed easements once physically established upon the land. In addition to the foregoing uses, all of which pre -dated the 1974 grant, Payette Lakes Water and Sewer District holds a record easement traversing from the 6th fairway alongside the above referenced South branch of the cart path/roadway northward across the 7th fairway. This was granted by the City in 1980. Finally in early 1990 City water, power and sewer lines were laid beneath the roadway, subsequently paved, which bisects the parcel from West to East providing access to the new club house. Given the character and extent of the uses crossing the subject parcel prior to the 1974 grant, together with the language of the grant, a reasonable construction of that grant is that it authorized access across the parcel for all purpose usual and incidental to the operation and maintenance of the portion of the golf course referenced as well at play itself. To characterize the easement as being only a cart path easement is highly questionable. Further, in light of the fixed nature of these uses, the appraiser's conclusion that the site is developable as either 15 condominium units or 5 residential lots is McCall Golf Course Foundation Page 3 September 6, 2991 suspect. Even if one assumes the 1990 improvements crossing the parcel are not within the scope of the 1974 grant, all prior crossings whether cart path, roadway or utility lines are either clearly within the grant or have matured prescriptively. Their precise location and character are not moveable as a matter of right and thus materially impact the conclusions reached as to use, potential and consequent value. A further error of material consequence to the appraisal is the mistaken assumption as to zoning. Parcel 1 is not Residential B, but Is rather Urban Agricultural and Recreation (Zone F). This is the Zoning Classification that encompasses the golf course proper; Residential B generally applies to homesites abutting the course in Timberlost I through VI; a review of the City Zoning Maps indicates the subject parcel is classified as a contiguous part of the course for zoning purpose and is coded accordingly. At most, Zone F may be developed at one residential unit per acre (F-3), at worst one per ten acres (F-1); unless otherwise designated land in Zone F is treated as F-1- the author was unable to identify any special designation beyond F for the subject parcel. Further, multi -unit residences are not permitted uses in this zone. Parcel 2: The analysis of Parcel 2 suffers from similar defects though to a much lesser degree. It too is included within the scope of the 1974 grant, and the actual uses pre -dated the grant, consisting of a surface pathway used as both a cart/foot path and as a vehicular roadway; it too carries underground water lines linking the golf holes involved. As before these crossing are and have been in place for a number of years, predating the 1974 grant and, as such, are not moveable as a matter of right. As pointed out by the appraisal analysis this easement corridor virtually bisects the parcel East to West. Their analysis rests on the belief that it can be developed into two (2) single family residences of around 10,000 square feet each (Appraisal a.t p. 70). While the analysis elects to disregard both the cart path and Eagle Drive (Appraisal at p. 64) (which partitions the property into eastern and western portions), both these features existed as of the appraisal date and radically limit the development potential of the parcel especially when coupled with the applicable set back requirements, in reality at most one buildable lot would be available on the westerly portion. McCall Golf Course Foundation Page 4 September 6, 2991 Further, while the appraisal treats the property as being Residential Zone B, its actual zoning classification would appear to have been Zone F at the relevant date (May 29, 1991). The actual zoning classification is somewhat unclear since no color coding appears on the City Zoning Map and it appears as unplatted property on the Timberlost VI Subdivision plat. Since that platting did not alter its character for zoning purposes It presumably remains Urban Agricultural and Recreation (Zone F-1), thus burdening it in the like fashion as parcel 1, insofar as development potential. Parcels 3 & 4: These parcels, while also crossed historically by roadways, are the parcels owned in fee by the City; as such the historical use of these roadways by the City or its employees and invitees is of no present consequence for valuation purposes. It is correctly treated as Residential B for zoning and development purposes. As such from a legal standpoint the appraisal assumptions used to determine values are appropriate.