10-27-99 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 27,1999 The City Attorney replied that he has not checked with the title company and was not prepared to estimate the timeframe at this point. The Attorney indicated that if the purchase agreement requires a warranty deed, they the sellers are obligated to produce such a deed. The Administrator reported that RJ Marco has indicated that they want to postpone closing until the warranty deed can be produced. The Administrator asked the Council for direction on the issue. Fahey noted that the City will not know the outcome of the quiet title action until it is completed. Morelan asked if there was a sunset on the development a~reement for the project. The Administrator replied that there was, but felt there was enough time to complete the quiet title action given that RJ Marco anticipates beginning construction on April ls~ The Administrator further reported that CI Title has indicated that it may be possible to complete the quiet title action within 60 days, and indicated that notice of the action must be provided to the property owners. Jay Reiling, North Wild, indicated that CI Title has indicated that they will insure title to the property and indicated that it was acceptable to close prior to completing the quiet title action. The Administrator indicated that CI Title may be willing to guarantee title, but he had not received a definite response from CI Title on this. CI Title also indicated that the ultimate decision on whether or not to close prior to issuance of a warranty deed rests with the purchaser. Fahey asked about closing if funds are escrowed to guarantee the quiet title action. Reiling indicated that they were willing to escrow funds equal to the purchase amount of the pond property. Fahey suggested that if those funds were escrowed, the City could close and disburse the remainin~ purchase price to North Wild. Fahey pointed out that warranty deeds can be issued for the other parcels, it is the pond parcel that requires the quiet title action. Fahey asked if there was any risk to the City in doin~ this, and indicated that he did not want to be unreasonable in holding back funds. The City Attorney indicated that he had not had an opportunity to analyze the risk to the City at this point. Pedersen stated that it sounds like there are some risks to the City in the event a warranty deed cannot be obtained on the pond property. 19