05-03-1996 SPECIAL CC - Laserfiche WebLink

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MY OF REQUEST WORFOR K COUNCILSESSION CONSIDERATIONMEETINGDATE STAFF REPORT �°.,� (IOW May 3. 1996 � Partne<st' Item Description: Discussion of the Purchase of the Bel-Rae Ballroom Administrator's Review/Recommendation/, -No Comments to supplement this report CJ -Comments attached. Explanation/Summary(attach supplement sheets as necessary) Summary: An emergency meeting has been called at the request of the Mayor in writing for May 3, 1996 at 5:30 pm. This special meeting has been called as the result of a meeting on Wednesday May 1, 1996 held at City Hall with Mr. Jambor, his attorney Dick Fudali, the Mayor, Council member Blanchard, Cathy Bennett and myself. Background: Cathy Bennett and the City's real estate attorney from Kennedy and Gravin have been working with Tony's attorney since April 17, 1996 finalizing the purchase option\agreement that was approved at the EDA meeting on April 22, 1996. Approximately five drafts have gone back and forth between the two parties making semantic changes and significant changes such as including the following: • City to cover the cost of all closing costs and attorney fees • Including the sign easement as part of the agreement for $750,000. • Including an itemized property list • Reducing the number of years of financial data delivered to the City • Requiring the Buyer to obtain a survey of the property rather than the Seller • Including language with regards to taking over a contract with the Property Tax Management Group for 1996 taxes. As of Friday April 26, 1996 there were two items in the Option Agreement that still needed to be resolved. The items included the Default and Casualty Clauses. Cathy discussed these items with the City Attorney and it was decided that if the option was exercised then both the City and Mr. Jambor were obligated to close on or before July 31, 1996. If either party defaulted the other has the right to sue for damages. With regards to the casualty issue it was decided that if prior to closing there was, for an example, a fire,then each party would split the insurance deductible evenly which was negotiated down from the Bel-Rae incurring the full cost of the deductible. Tony's attorney wanted it worded that either party would be allowed to get out of the agreement if there was a casualty prior to closing. A revised agreement with these last two final changes was faxed the Mr. Fudali on Friday afternoon.