HomeMy WebLinkAbout03/07/2017 06E Assignment of Note and Deed of Trust; KeyBank ,,r
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.E.
For Meeting of: March 7, 2017
ITEM TITLE: 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
SUBMITTED BY: 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: fir 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 Type
D resdution 2/28/2017 Cover Memo
D KeyBank &City-Assignment of Note& --d of Trust 2/10/2017 Backup Material
RESOLUTION NO. R-2017-
A RESOLUTION 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: Kathy Coffey, Mayor
Sonya Claar Tee, City Clerk
WHEN RECORDED RETURN TO
FINNEY,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.
FINNEY, FALK & YARGER, PLLP
ATTORNEYS AT LAW
117 NORTH THIRD STREET, SUITE 201
YAKIMA, WA 98901
PAGE 1 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 andwarranties
arising or to arise by statutory or other implication.
DATED: January rL , 2017,
ASSIGNOR:
KEYzA J kTi•NALASSOCIATION
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By:; jz Lot
Its vi6f Pe,9d .A
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STATE OF
ss
COUNTY OF C. = 8(4 . )
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
TP-e k ri , to me known to be the ,\,�r Vte 14 f EYBANK 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.
Mk/41/k ° .:IL,k(f)1—" CkILL'i - -
loo ry Public in and for the State:
of Wa& n residing at y- i • p , N .
'>:.._ , M appointment expires: r 11 0o
.; 1 y � r
�:- �- JENNIFER L. L.ASI-tl.€::1
It Notary Public.State of C'4:
�'""" tuly Commission Expire-6
v' . "410-'° May 17,2020
PIN1EY, .WALK & YARGER, PLLP
ATTORNEYS AT LA.N.
117 NORTH THIRD STREET, SUITE .201
YAKIMA, WA 9890i.
PAGE 2 TELEPHONE (509) 453-5E04
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..
CLIFF MOORE, City Manager for City
of Yakima, Washington
FINNEY, FALK & YARGER, PLLP
ATTORNEYS. AT LAW
117 NORTH THIRD STREET, SUITE 201
YAKIMA, WA 98901
PAGE 3 TELEPHONE (509) 453-5604