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Home My WebLink AboutR-1996-112 Title InsuranceRESOLUTION NO. R-96- 112 A RESOLUTION authorizing and directing the City Manager and the City Clerk of the City of Yakima to execute a personal undertaking with Chicago Title Insurance Company in order to create marketable title for the trade of former Fire Station No. 2 for improved property located at 124 S. Second Street. WHEREAS, on the 2nd day of July, 1996 the City Council passed Resolution No. R-96-84 authorizing and directing the City Manager and City Clerk of the City of Yakima to execute a Purchase and Sale Agreement with Sunfair Associates for the trade of former Fire Station No. 2 for improved property located at 124 S. Second Street to be used to house the Cable TV Division; and WHEREAS, following passage of that Resolution, Sunfair Associates determined that it was unable to obtain financing due to a restriction in the Deeds for Lots 1 and 16, Block 312, Capital Addition to the City of North Yakima; and WHEREAS, in order to complete the trade of former Fire Station No. 2 for improved property located at 124 S. Second Street, Sunfair Associates is requiring that the City remove the restrictions from Lots 1 and 16 of Block 312, Capital Addition to the City of North Yakima; and WHEREAS, entering into the attached and incorporated "Personal Undertaking" with Chicago Title Insurance Company is the most expeditious means by which the restrictions can be removed from the title report; and WHEREAS, Sunfair Associates has indicated that having the restrictions removed from the title report will be sufficient for their purposes, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and the City Clerk are hereby authorized and directed to execute the attached and incorporated Personal Undertaking with Chicago Title Insurance Company. ADOPTED BY THE CITY COUNCIL this 2ottday of August ,1996. A 1'1bST: City Clerk (b1b)res/Fire No. 2 nn Buchanan, Mayor CHICA TITLE INSURANCE C( PANY COUNTY: YAKIMA STATE: WASHINGTON PERSONAL UNDERTAKING 3cf Z°7 ORDER NO.: INDEMNITY NO.: WHEREAS, the CHICAGO TITLE INSURANCE COMPANY, either directly or through its agent, Fidelity Title Company , hereinafter referred to as "the Company," is about to issue its title insurance policy or policies or commitments therefor, all hereinafter refe red to as "the Title Insurance Policy," in respect to the land therein described as follows: Lots 1 , TA, f 4,. Block 312, Capital Addition to North Yakima, Volume A, page 29; �Q 14, AND WHEREAS, the Company in its search and examination preparatory to fulfilling said request has deter- mined that title to said real property appears to be subject to the following items: Rights of O. A. Fechter and L. 0. Janeck or their heirs and assigns, as d€cribed in various deeds affecting said premises, being Yakima Auditor's File Nos. 58468, 58469, 58847, and 37830; AND WHEREAS, the Company has been requested to issue the Title Insurance Policy, and may hereafter in the ordinary course of its business issue title insurance policy or policies or commitments therefor in the form or forms now or then commonly used by the Company in respect to the land or to some part or parts thereof, or interest therein, all of the foregoing being hereafter referred to as "Future Policies or Commitments," either free and clear of all mention of the aforesaid items or insuring against loss or damage because of said items set out above. NOW THEREFORE, the undersigned, jointly and severally, for themselves, their heirs, personal representatives and assigns do hereby covenant and agree with the Company: 1) To forever fully protect, defend and save the Company harmless from and against all the items referred to above, and from any and all loss, cost, damages, attorneys' fees and expenses of every kind and nature which it may suffer, expend or incur under or by reason of, or in consequence of, the Title Insurance Policy on account of, or in consequence of, or going out of the items referred to above, or on account of the assertion or enforcement or attempted assertion or enforcement thereof or of any rights existing or hereinafter arising or which may be claimed to exist under, or by reason of, or in consequence of, or growing out of the items referred to above; 2) To provide for the defense, at their own expense, on behalf and for the protection of the Company and parties insured or who may become insured, against loss or damage under the Title Insurance Policy (but without prejudice to the right of the Company to defend if it so elects) in all litigation consisting of actions or proceedings based on any items referred to above which may be asserted or attempted to be asserted, established or enforced in, to, upon, against or in respect to the land or any part thereof, or interest therein; and 3) To pay, discharge, satisfy or remove all or any of the items referred to above, (a) on axiciFtN demand , (b) when called upon by the Company after 30 days' notice in writing and mailed to the undersigned at the address set out below; and 4) That each and every provision herein shall extend and be enforced concerning future policies or commitments. Nothing contained herein shall be construed so as to obligate the Company to issue its Title Insurance Policy, in the form requested herein. However, should the Company issue any such Title Insurance Policy, it will do so in reliance upon the undertaking of the undersigned and the issuance of such Title Insurance Policy shall be the consideration for the above undertakings by the undersigned. The Company shall have the right at any time hereinafter, after notice to the undersigned below, when it shall deem necessary, expedient, desirable or of interest to do so, in its sole discretion, to pay, discharge, satisfy or remove from the title to said real estate all or any of the items set out above. The undersigned covenants and agrees to pay to the Company all amounts so expended on demand. FOR EXECUTION BY CORPORATIONS FOR EXECUTION BY INDIVIDUALS IN WITNESS WHEREOF, the undersigned, being the IN WITNESS WHEREOF, the undersigned have exe- hereinafter named corporation, has caused these presents to cuted this agreement this be signed by its G--vYLa-,A-'"--eyi\Pfesiclen.t and attested by day of A.D. its C- -`k- eefetary and has caused its corporate 19 seal to be hereto affixed this n? 1 day ofA.D. (SEAL) 19 9 6 r errvec no: % —Y. By ,, J ATTEST: J )G'c e&-�'`oc 4 % Zrazdegt Address of Corporation ci )'L RE$O U 1O + ao: OF YAKIMA ,-J ,-Ij A F. 3716 (R. 10-76) ` 4..K 11,4-r; e 10/ Address: (SEAL) Address: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of Vi/a0/q& ITEM TITLE: Authorizing and directing the City Manager and the City Clerk of the City of Yakima to execute a personal undertaking with Chicago Title Insurance company in order to create marketable title for the trade of former Fire Station No. 2 for improved property located at 124 S. Second Street. SUBMIIR1'k,D BY: Glenn Rice, Assistant City Manager Jeff B. West, Assistant City Attorney CONTACT PERSON/TELEPHONE: Jeff B. West/575-6030 SUMMARY EXPLANATION: On July 2,1996 the City Council passed Resolution R96-84 authorizing and directing the City Manager and the City Clerk to enter into an agreement with Sunfair Associate to trade former Fire Station No. 2 for property and a building located at 124 S. Second Street. The building at 124 S. Second Street is to be used by the City to house the Cable TV Division. On several occasions prior to July 2, 1996 Sunfair Associates, represented by H.R. "Jerry" Maggard had assured both the City Manager's office and the City Attorney's office that certain Deed restrictions on the former Fire Station No. 2 property were acceptable to Sunfair Associates and that the City would be able to convey the property to Sunfair Continued on page 2. Resolution X Ordinance Contract Other(Specify) Funding Source APPROVED FOR SUBMITTAL: "' City Manager STAFF RECOMMENDATION: Council Policy Issue BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: (b1b)agenda/Personal Undertaking .jw Associates subject to those restrictions. However, shortly after the City Council passed Resolution R96-84 Sunfair Associates advised the City that they were not willing to enter into the Agreement since they would be unable to finance improvements on the site of former Fire Station No. 2 due to the Deed restrictions. Sunfair Associates required that the Deed restrictions be removed from the title report: prior to entering into the Purchase and Sale Agreement. Chicago Title Insurance through their local agents at Fidelity Title have agreed to issue a title insurance report without the Deed restrictions if the City enters into a personal undertaking agreeing to defend and indemnify Chicago Title Insurance Company from any claims which may arise due to the Deed restrictions. Attached to this Agenda item is a privileged confidential attorney-client memorandum advising the members of the City Council of the legal ramifications of entering into this agreement. The fiscal impact of entering into this agreement depends upon what happens in the future. If no future claim is ever brought, this will allow the City to procure new :housing for the able TV Division at a substantially lower cost than is otherwise available. However, should a claim be raised in the future, the City would have to shoulder the costs of defense, as well as, in a worse case scenario, potentially "buying back °' Lots 1 and 16, Block 312, Capital Addition. (bib)agenda/Personal Undertaking.jw