10-27-99 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL OCTOBER 27, 1999 The City Administrator reported that warranty deeds can be provided for two of the properties. It is the pond property that is in question at this point. Pedersen suggested that not closing on the properties will increase North Wild's incentive to obtain clear title to the pond property in a timely manner. LaValle pointed out that RJ Marco wants warranty deeds, and felt that 60 days was not an unreasonable amount of time to delay the closing until warranty deeds can be obtained for all three properties. Reiling pointed out that every day the closing is delayed costs them money. Reiling stated that when they signed the purchase agreement they did not know that the closing would be delayed. LaValle pointed out that the City did not know this either, and that the purchase agreement requires warranty deeds for the properties. Fahey pointed out that the purchase price for all three sites is over $300,000. From an equity standpoint, he felt the City could proceed to close and escrow an appropriate amount of money until a warranty deed can be produced for the pond property. Fahey Felt the escrow should be large enough to provide a financial incentive for North Wild to clear up the title issue. Morelan stated that he was more concerned about how RJ Marco felt about closing. The City Administrator pointed out that delaying the closing will benefit RJ Marco since they will be able to hold onto their money longer. RJ Marco has indicated that they want compliance with the terms of the purchase agreement. Reilin~ stated that it was their intent to close on the l5'~'. He felt there was no reason not to close given that funds wouid be escrowed to guarantee that the quiet title action would be completed. Morelan pointed out that this is a three party transaction, and if all three parties are not agreeable, then the purchase agreement should stand as negotiated. Fahey felt that if funds are escrowed, there is sufficient guarantee that the quiet title action will be completed. The City Administrator indicated that it is the City's decision given the City holds the purchase a~reement. 20