HomeMy Public PortalAbout2022.09.22 QuitClaim Deed Net Prophet LLCQUITCLAIM DEED
With Local Housing Restrictions
FOR VALUE RECEIVED, Net Prophet LLC, Grantor, does hereby convey, release,
remise, and forever quitclaim unto Net Prophet LLC, whose current address is 146 E. Chubbuck
Rd, Chubbuck, ID. 83202, all of its right, title and interest, together with all rights, title and interest
hereafter acquired by Grantor, in the following premises located at 321 Running Horse Drive in
McCall, Valley County, Idaho, to -wit (the "Property"):
Lot B6 of the Running Horse Subdivision, according to the official plat thereof
which is recorded in the Office of Recorder of Valley County, Idaho, Instrument
No. `As M1'Z
Grantor and Grantee hereby covenant and agree, and the City of McCall approves pursuant
to its signature below, that the Property shall be subject to certain restrictions, as follows
(collectively "Local Housing Restrictions"):
(1) General Criteria:
(a) General criteria for all tenants or purchasers of the Property ("General
Criteria"):
(i) Employed, work minimum 30 hours/week or 1,560 hours/year, for
a McCall Business for a set period (6 consecutive months) or have
employment offer from a McCall Business; or
(ii) Senior (age 65 and older) as primary resident as may be further
defined in the applicable McCall Local Housing Policy; or
(iii) Person with disability; and
(iv) No Short -Term Rental or vacation renting or sub -leasing.
(b) Clarification of General Criteria:
(1)
An employer with employees who satisfy the General Criteria may
rent or purchase the Property for rental to such employees, subject
to these Local Housing Restrictions with regard to rentals.
(ii) A "McCall Business" is a business that has a physical location
within the boundaries of either the McCall Donnelly School
District or the Meadows Valley School District. (hereinafter the
"McCall Area"). Businesses that have multiple physical locations
must have at least one location within the McCall Area to qualify
as a McCall Business. Telework, or other work from home, for a
business which is not located within the McCall Area does not
qualify as a McCall Business.
(iii) Short -Term Rentals shall be defined as a rental or lease for thirty
(30) days or less.
sjm 2022-9-22
QUITCLAIM DEED (With Local Housing Restrictions) — 1 Local Housing Deed Restriction Template
(2) Restrictions on Rental of the Property:
(a) Any tenant must meet the General Criteria at the time of commencement
of the lease.
(i) The Base Rental Rate for the Property shall be $2000.00 per
month; provided, in the event that the Property Owner elects to
rent the Property, the Property Owner shall notify the City of such
intention prior to renting the Property. In such case, the Base
Rental Rate shall be reset to the actual rent charged to the first
tenant to rent the Property, as reflected in a signed lease or rental
agreement for the Property. The lease or rental agreement shall be
provided to the City as a precondition of the Base Rental Rate
being reset. The reset Base Rental Rate shall be confirmed in an
amendment to this Deed executed by the Property Owner and the
City and recorded with the Valley County Office of Recorder The
Base Rental Rate shall be adjusted as follows, commencing from
the date on which the Property is rented for the first time:
a. The Base Rental Rate shall be adjusted in the event that the
owner of the Property makes Capital Improvements to the
Property. "Capital Improvements" shall be defined as a
permanent structural alteration to or expansion of the
improvements on the Property which require a building
permit under prevailing Ordinances and Codes. In the event
of such Capital Improvements, the Base Rental Rate shall
be increased by a sum equal to the percentage which results
from dividing the actual cost of the Capital Improvements,
as confirmed by the Building Permit, by the Valley County
Assessed valuation of the improvements on the Property
prior to the Capital Improvements. By way of example:
If the assessed valuation of the improvements on the
Property, prior to the Capital Improvements, is $500,000
and the cost of the Capital Improvements is $100,000, the
Base Rental Rate shall be increased by 20%.
An owner proposing to increase the Base Rental Rate shall
provide written notice to the City of McCall of the increase
in the Base Rental Rate, together with A copy of the
building permit.
b. The Base Rental Rate (including adjustments for Capital
Improvements as appropriate) will be adjusted annually and
according to the percentage increase or decrease of the
Consumer Price Index for All Urban Consumers (CPI -U)
for the twelve calendar months prior to and including the
most recent month for which such Index is available. The
base for computing the adjustment is the Consumer Price
Index for All Urban Consumers (CPI -U) as published by
sjm 2022-9-22
QUITCLAIM DEED (With Local Housing Restrictions) — 2 Local Housing Deed Restriction Template
the United States Department of Labor, Bureau of Labor
Statistics. Annual increases in the rental rate for the
Property may not exceed the Base Rental Rate (including
adjustments for Capital Improvements, as appropriate)
multiplied by the CPI Percentage Increase. The owner of
the Property will use the following formula to compute the
calculation for each year's Base Rental Rate:
The Current Year's Base Rental Rate = Last Year's Base Rental
Rate (adjusted as appropriate for Capital Improvements) x (The
Current CPI / Previous Year's CPI)
Example (without Capital Improvements): For a lease
beginning January 1, 2020.
The CPI for December 2018 = 251.233
The CPI for December 2019 = 256.974
Base Rental Rate = $1,000.00
Adjusted Base Rental Rate = $1,023.00 [$1,000.00 x (256.974 /
251.233)]. The rent beginning on January 1, 2020 may not
exceed 102.3% of the 2019 base rental rate, i.e., $1,023.00,
except in the case of adjustments to the Base Rental Rate for
Capital Improvements.
(3)
Annual increases in the rental rate for the Property may not exceed
the Base Rental Rate (adjusted for Capital Improvements as
appropriate) multiplied by the CPI Percentage Increase.
(b) If a tenant ceases to satisfy the General Criteria during the lease term, they
shall not be required to move out of the Property until the expiration of the
term of their lease. Leases shall have a maximum term of one year;
provided, that the lease can be renewable on a year to year basis upon
confirmation of qualification of the General Criteria prior to each renewal
period. However, a tenant who ceases to satisfy the General Criteria shall
be required to vacate the premises at the end of their lease and will not be
eligible for a renewal of that lease.
Restrictions on Sale of the Property:
(a) Any purchaser of the Property must meet the General Criteria at the time
of purchase, or they must rent the Property to tenants who satisfy the
General Criteria. Prior to sale, the seller and purchaser shall submit a copy
of the Purchase and Sale Agreement to the City and confirm the
information needed to verify whether the purchaser satisfies the General
Criteria.
(b) The Base Valuation for this Property shall be $300,000.00; provided, upon
the sale of the Property by Net Prophet, the Base Valuation shall be reset
to the actual purchase price for the Property, as reflected in the signed
sjm 2022-9-22
QUITCLAIM DEED (With Local Housing Restrictions) — 3 Local Housing Deed Restriction Template
Purchase and Sale Agreement for the Property which is provided to the
City. The reset Base Valuation shall be confirmed in an amendment to this
Deed executed by Net Prophet and the City and recorded with the Valley
County Office of Recorder prior to the closing of the sale. The Base
Valuation, with the following described adjustments, establishes the
maximum price for which the Property may be resold. The Base Valuation
will be adjusted annually as follows:
(i) In the event that the owner of the Property makes Capital
Improvements to the Property, as defined above, the Base
Valuation shall be increased by the actual cost of the Capital
Improvements, as confirmed by the building permit. The term
"Base Valuation" shall be deemed to include all Capital
Improvement adjustments which may be made from time to time.
(ii) The Base Valuation for the Property shall be adjusted according
the percentage increase of the Consumer Price Index for All Urban
Consumers (CPI -U) for the for the twelve calendar months prior to
and including the most recent month for which such Index is
available The base for computing the adjustment is the Consumer
Price Index, All Items, for the West Region Area (1982-84 = 100)
as published by the United States Department of Labor, Bureau of
Labor Statistics. The final selling price of the Property shall not
exceed the Base Valuation increased by the greater of: (i) 3% per
year, not compounded; or, (ii) the CPI Percentage Increase.
The owner of the Property will use the following formula to
compute the calculation for the maximum sales price at the time of
contracting to sell the Property:
Example (without Capital Improvements): Assuming the
owner purchased the Property for $250,000 in December 2018
and contracts to sell the Property in January 2020, the
applicable CPI for the month of the contract (December 2019
being the most recent month for which data is available) is
256.974. The applicable CPI for the month of purchase
(December 2018) was 251.233.
256.974 — 251.233 = 5.741 index point change.
5.741 / 251.233 = .0229 x 100 = 2.3% CPI percentage increase.
Base valuation at the time of purchase was $250,000.
Maximum sale price: greater of $250,000 x 102.3%=$255,750,
or $250,000 x 103% = $257,500 therefore $257,500.
(1)
Example (with Capital Improvements): Assuming the owner
purchased the Property for $250,000 in December 2018,
immediately makes Capital Improvements costing $50,000 and
sjm 2022-9-22
QUITCLAIM DEED (With Local Housing Restrictions) — 4 Local Housing Deed Restriction Template
contracts to sell the Property in January 2020, the applicable
CPI for the month of the contract (December 2019 being the
most recent month for which data is available) is 256.974. The
applicable CPI for the month of purchase (December 2018) was
251.233.
256.974 — 251.233 = 5.741 index point change.
5.741 / 251.233 = .0229 x 100 = 2.3% CPI percentage increase.
Base Valuation at the time of purchase was $250,000.
Base Valuation increased by $50,000 in Capital Improvements.
Adjusted Base Valuation: $300,000
Maximum sale price: greater of $300,000 x 102.3%=$306,900,
or $300,000 x 103% = $309,000 therefore $309,000.
(c) If an owner who purchases the Property satisfies the General Criteria at
the time of purchase, they shall not be required to sell the Property at such
time as they fail to satisfy the General Criteria. However, they may not
lease the Property except pursuant to the terms of Section (2) above.
(d) If an owner who purchases the Property does not satisfy the General
Criteria themselves at the time of purchase but does rent the Property to
tenants who satisfy the General Criteria, they shall be required to sell the
Property at such time as they fail to rent the Property pursuant to the terms
of Section (2) above for a period of longer than 9 months.
(e) Upon the resale of the Property, the Base Valuation shall be reset to the
actual purchase price paid for the Property according to the terms provided
herein. All future annual adjustments, and adjustments for Capital
Improvements to the Base Valuation shall be applied to the new Base
Valuation established under this Paragraph.
Grantee, by its signature below, does hereby covenant, agree to, and accept the aforesaid
Local Housing Restrictions because Grantor, is or its predecessors received financial incentives
from the City of McCall in exchange for these covenants and restrictions. The Local Housing
Restrictions shall constitute a covenant burdening and running with the Property. The Local
Housing Restrictions shall bind and inure to the benefit of the heirs, assigns and successors -in -
interest of the parties. The Local Housing Restrictions may be amended or modified as to this
Property only with the written approval of the then owner of the Property and the City of McCall,
and such amendment or modification shall be recorded with the Valley County, Idaho Recorder.
The City of McCall, Idaho, or its successors in interest, shall be authorized to enforce these
covenants by such legal means, including but not limited to random or regular audits of lease and
sale records after reasonable advance written notice, or otherwise as are provided for the
enforcement of covenants running with the land. Grantee, their heirs, successors and assigns waive
any defenses of privity or any other defenses which may be asserted against the City of McCall
which seek to limit the enforceability of these covenants.
sjm 2022-9-22
QUITCLAIM DEED (With Local Housing Restrictions) — 5 Local Housing Deed Restriction Template
DATED this 15'day of F.Q,b rt,(,al , X23
GRANTOR GRANTEE
By: (L J t� or,i('
3p-j2cDWAjd,Managing Member
By: (.' �.�r�''%
Not oO ,-Managing Member
STATE OF IDAHO )
) ss.
County of alley tgrtin X.tL ) 44.
2023
On this 154" day of Vii). , -, before me, a Notary Public in and for said State,
personally appeared Ovid g , known or identified to me to be the Managing
Director of N e.* f o *ic.'k- , the limited liability company that executed the
instrument or the person who executed the instrument on behalf of said limited liability
company, and acknowledged to me that such limited liability company executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
day and year in this certificate first above written.
HOLLY F GARDNER
Notary Public - State of Idaho
Commission Number 56399
My Commission Expires Jun 21, 2028
APPROVED BY:
NOTARY PUBLIC FOR IDAHO
My Commission Expires: j( LI VLQ 2l 2028
CITY OF MCCALL
By7
ROBERT S. GI ES, Mayor
ATTEST:
By:
Pattiz..
..por BESSIEJO WAGNER, City Clerk
Ueck
sjm 2022-9-22
QUITCLAIM DEED (With Local Housing Restrictions) — 6 Local Housing Deed Restriction Template
STATE OF IDAHO,
)ss
County of Valley.
On this o�g day
of 1. -�. , 202, before me, Lori 14, 41/4%; l � , nS , a Notary
Public in and for said State, personally appeared ROBERT S. GILES and SARAH PORTER,
known or identified to me to be the Mayor and the Deputy City Clerk of the City of McCall, ID,
respectively, the Idaho municipal corporation that executed the instrument or the person that
executed the instrument on of behalf of said municipal corporation, and the person who attested
the Mayor's signature to the instrument, and acknowledged to me that such municipal corporation
executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
day and year in this certificate first above written.
i
LORI A WILKINS
NOTARY PUBLIC - STATE OF IDAHO
COMMISSION NUMBER 20220789
MY COMMISSION EXPIRES 3-1-2028
a . Q, 01,44.0_
NOTTARY PUBLIC FOR IDAHO
My Commission Expires: - / -;OAS
sjm 2022-9-22 redline
QUITCLAIM DEED (With Local Housing Restrictions) — 7 Local Housing Deed Restriction Template