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Home My WebLink AboutR-2017-027 Assignment of Note and Deed of Trust; KeyBankA RESOLUTION RESOLUTION NO. R-2017-027 authorizing the City Manager to execute the Assignment of Note and Deed of Trust transferring interest in the instrument to the City of Yakima from KeyBank. WHEREAS, 415 North 6th Avenue currently has City of Yakima liens against it for code violations; and WHEREAS, attempts to have the bank remove the structure to comply with code requirements was unsuccessful because the bank is not interested in retaining any interest or expending any money on the property; and WHEREAS, the bank has agreed to assign its interest in its deed of trust and promissory note to the City in exchange for not having to expend any funds on the property or take any action on the property; and WHEREAS, ONDS has an interest in pursuing the pending foreclosure of the property and obtaining ownership of the property to provide a building lot for additional low income housing in Yakima, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute the Assignment of Note and Deed of Trust, wherein the City will take over the bank's interest in the property and move forward with foreclosure. A copy of the assignment is attached hereto ADOPTED BY THE CITY COUNCIL this 7th day of March, 2017 ATTEST yP• .1,, • Sony -Maar Tee, City Cleric�'' ITEM TITLE: SUBMITTED BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.E. For Meeting of: March 7, 2017 Resolution authorizing an Assignment of Note and Deed of Trust relating to property located at 415 North 6th Avenue, which will result in the City being able to move forward with foreclosure, removal of the dilapidated structure, and to work with Habitat for Humanity to build another low income housing unit Archie Matthews, ONDS Manager Sara Watkins, Senior Assistant City Attorney SUMMARY EXPLANATION: 415 North 6th Avenue is a property that currently has a number of City liens on it for code enforcement actions. It has been vacant for some time and the City is unaware of the location of the owner. The City has been in contact with the bank regarding removal of the structure. Due to recent Washington case law regarding entry of property that is in foreclosure, the bank will not remove the structure. Instead, the bank has offered to sign over its interest in the property to the city in exchange for $0.00 and provide a release of liability for removal of the structure. This does not give ownership of the property to the City, but does give the City a right to pursue foreclosure of the deed of trust and the City's liens. ONDS would like to move forward with the foreclosure, clear title to the property, and use the property for low-income housing. Because accepting the assignment comes with some risk to the City, namely the requirement to foreclose the property and address any issues with the owner to obtain any legal right to possess the property, this is coming before the City Council for approval. If approved, the City will take over the foreclosure procedure and move forward to attempt to obtain legal ownership of the property. ONDS plans to work with Habitat for Humanity to provide an additional home for a low-income family in Yakima on the site once the foreclosure is finalized and the structure is removed. ITEM BUDGETED: NA STRATEGIC PRIORITY: Neighborhood and Community Building APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMITTEE RECOMMENDATION: This was approved to be sent to the entire City Council by the NCBC Committee at their December, 2016 meeting. ATTACHMENTS: Description Upload Date D resdution 2/28/2017 D KeyBank & City -Assignment of Note d of Trust 2/10/2017 Type Cover Memo Backup Material WHEN RECORDED RETURN TO F1NNEY, FALK & YARGER,.PLLP ATTN: JOE FALK 117 NORTH 3RD STREET, STE. 201 YAKIMA, WA 98901 ASSIGNMENT OF NOTE AND DEED OF TRUST Abbreviated Legal: Lot 9, Blk 286, Charlton Add B-102 Assessor's Parcel No.: 181324-12477 Reference No.: 7518781 FOR VALUE RECEIVED, the undersigned, KEYBANK NATIONAL ASSOCIATION, hereby conveys, quitclaims, assigns and transfers to CITY OF YAKIMA, WASHINGTON, a Washington municipal corporation, whose address is 129 North 2nd Street, Yakima, WA 98901, its beneficial interest in, to and under that certain Deed of Trust, dated. July 8, 2006, wherein the Assignor is beneficiary, executed by CONNIE J. NORMAN, an unmarried person, as Grantor, to FIRST AMERICAN TITLE INSURANCE COMPANY, as Trustee, and recorded on July 24, 2006, under Auditor's File No. 7518781, records of Yakima County, Washington. The realproperty encumbered by such Deed of Trust is legally described as follows: Lot 9, Block 286, of CHARLTON ADDITION TO NORTH YAKIMA, now Yakima, Washington, according to the Official Plat thereof, recorded in Volume "B" of Plats, Page 102, records of Yakima County, Washington (Assessor's Parcel No. 181324-12477) The undersigned Assignor further assigns to CITY OF YAKIMA, without warranty, the Promissory Note described or referred to by such Deed of Trust, the. money due and to become due thereon, with interest, andall rights accrued or to accrue under said Deed of Trust and/or such Promissory Note. PAGE 1 FINNEY, FAL K & Y'ARGER, PLLP ATTORNEYS AT LAW 117 NORTHTM /RD STREET, SUITE 201 YAKIMA, WA 98901. TELEPHONE (509) 453-5.604 The undersigned Assignor further disclaims any and all obligations, warranties, and liabilities under or related to such Promissory Nate and Deed of Trust. The undersigned Assignor does by these presents expressly limit the covenants of this assignment to those herein expressed, and excludes all covenants andvuarranties arising or to arise by statutory or other implication. DATED: January 7-7 , 2017, ASSIGNOR: KEY TI l NAL ASSOCIATION By: Its OVICO STATE OF i ss COUNTY OF C = 8 } On this'7day of January, 2017 before me, the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared -Pe4e k rz. , to me known to be the ,\,,,r Vte VOMEYBANK NATIONAL ASSOCIATION, the corporation that executed the foregoing instrument, and acknowledged the said instrumentto be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that is authorized to execute the said instrument. Given under my hand and official seal this c3-# day of January, 2017. PAGE 2 ry Pµblic in and for the State: ofn, residing at gt tx M.y.app:ointment expires:. JENNIFER L. LASHL.F. Netary.Pubiic, State of; ... My Gor3rnission Expire: May17,'2020 PINNEY, .PALK & YARGER, PLLP ATTORNEYS AT LAW 117 NORTH THIRD STREET, SUITE .201 YAKIMA, 'W'A 98901 TELEPHONE (509) 453-5604 ACCEPTANCE OF ASSIGNMENT The undersigned CLIFF MOORE, being the City Manager for the City of Yakima, Washington, hereby accepts the foregoing Assignment of Promissory Note and Deed of Trust in behalf of the City of Yakima. The undersigned further acknowledges the disclaimer and release of KeyBank National Association and releases KeyBank from any and all obligations, warranties, and liabilities under or related to such Promissory Note and Deed of Trust. DATED this day of January, 2017.. PAGE 3 CLIFF MOORE, City Manager for City of Yakima, Washington FINNEY, FALK & YARGER, PLLP ATTORNEYS. AT LAW 117 NORTH THIRD STREET, SUITE 241 YAKIMA, WA 98901 TELEPHONE (509) 453-5604