REVERSION CLAUSE RETAINED
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CITY SIGNS DEED 1-18-1 LMS

The Salmon City Council has voted to deed to Lemhi County the Monroe Street property on which the District Seven Health Department clinic was built and leave the deedís original reversion clause intact.

The action taken by the council during its January 18 meeting completes the land transaction which began by ordinance in 2001. It will be up to the county to complete the land transaction agreement with District Seven Health.

The 2001 ordinance pertaining to the deed transfer contained a clause that stipulated if the District Seven Health Department ever vacated the building, both the land and the building would revert to the city. The Health Department had recently told the city that at this point it would prefer the reversion clause be removed from the deed the city was signing over to the county since District Seven has no intention of ever relocating the clinic facility and would like to have clear title on the land and facility.

During the councilís discussion on whether or not to remove the reversion clause, City Attorney Fred Snook explained that a reversion clause is usually added to a deed when the party giving the land wants to guarantee the property continues to be used as originally intended, in this case for a health facility.

Snook said the practice is not uncommon and was in fact attached to the land on which the Tendoy School resides. Snook said a few years ago the Leadore School District, in an effort to reduce costs, was considering closing the Tendoy School until it learned it could not close the school and sell the land because of the reversion stipulation placed in the original deed signed around 1918. In effect, even if the district closed the school it could not sell the land and everything would revert to the Pattee family.

Snook said that the Health Department building was built with money from a grant therefore the question is that if the land was deeded to house a health clinic facility, and the building was built by a grant rather than District Health funds, why would the city want to strike the reversion clause?

Councilman Jim Bockelman posed two considerations. One was a question of whether the health district is a state agency or an entity contracted to the state. On the plus side he added that if the building were to be sold to a private party it would then be placed on the tax rolls. Councilman Jim Baker said he would like the question of state agency or contracted entity answered.

When it came to a vote on including the reversion clause in the Quit Claim Deed Waidely, Kluesner, Hill, Bender and Bockelman voted yes and Baker voted no. The deed with the reversion stipulation will be forwarded to the county.

In other business the council unanimously voted to move a street vacation request by Calvary Chapel and the Discovery Care Center into the official vacation process.

The area in question is a 70 foot long, 60 foot wide undeveloped portion of Church Street located north of Shanafelt Street. Under terms of the vacation request 20 feet of the easterly half of Church Street would revert to Calvary Chapel ownership and 40 feet of the westerly half would revert to the Discovery Care Center. They are the only owners of property which adjoin that section of platted but undeveloped street.

City Planning Director Dan Maiyo said the application meets Idaho codes.

Larry Wade of Wade Surveying represents both parties and has done the necessary research. He said the Discovery Care portion of land would be used for fire access to the center and the Calvary Chapel portion would be used to build a new Sunday School.

Based on the affirmative council vote, Maiyo will now prepare an official ordinance including a plat map and legal land description of the area so the ordinance can enter the required three -reading voting process.

The next meeting of the Salmon City Council will be February 1st beginning at 6PM in the Salmon Valley Center meeting room.




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