HomeMy WebLinkAboutR-1260 - Amending Resolution 1258 to change the terms of the installment sales contract for real property in the downtown business district-,,
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CIT Y 0 F MAR Y S V ILL E
Marysville,Washington
RESOLUTION NO';2...100
A RESOLUTION OF THE CITY OF MARYSVILLE
AMENDING RESOLUTION 1258 TO CHANGE THE TERMS
OF THE INSTALLMENT SALES CONTRACT FOR REAL
PROPERTY IN THE DOWNTOWN BUSINESS DISTRICT.
WHEREAS,On April 27,1987 the City Council passed Resolu-
tion 1258 approving the terms of an installment sales contract of
certain publicly-owned real property in the downtown business
district;and
WHEREAS,an arithmetic error appears in said Resolution,
stating that the amount of the Promissory Note would be $240,000
instead of $246,000;and
WHEREAS,the Purchasers of the real property learned on
April 29,1987 that Seattle First National Bank would reduce the
size of the development loan by $350,000 for the first five
months of the project,thereby making it impossible for the
Purchasers to proceed with the closing on April 30,1987 as
required by the Earnest Money Agreements unless some financial
relief was granted;and
WHEREAS,a special meeting of the City Council was held on
May 1,1987 for the purpose of considering whether the City would
agree to modify the terms of its sales contract by placing an
additional $350,000 on a promissory note with a five month term;
and
WHEREAS,the City Council finds that such a proposal is
acceptable for the same reasons as are stated in Resolution 1258;
NOW,THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MARYS-
VILLE,WASHINGTON,AS FOLLOWS:
Resolution 1258,passed by the City Council on April 27,
1987,is hereby amended to approve the following terms of the
real estate transaction:
Purchasers:Towne Centre Mall Associates,a general
partnership,consisting of Lawrence S.McLean,Melvin
L.Brook,Kenneth W.Stanger,Joseph D.Holmes,Jr.,
and C. E.Loveless.
Resolution - 1
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Price:$820,000.
Down Payment:$224,000.
Short Term Promissory Note:$350,000;payable on
October 1,1987;/09'0 &,1>,).nterest per annum,payable
at maturity of the note.~~
Long Term Promissory Note:$246,000;payable on May 1,
1990;9.5%interest per annum,payable semiannually.
Security:A second deed of trust encumbering the
shopping mall property,subordinate to a first deed of
trust in favor of Seattle First National Bank in an
amount of up to 14.5 million dollars.
Additional Consideration:As additional consideration
for this transaction,the Purchasers shall allow the
City to occupy the Bill Bailey Tire Store building at
the corner of 3rd St.and State Avenue as a temporary
fire station during the time that the mall is being
constructed;and the Purchasers shall immediately
convey to the City,as a gift,the portion of the mall
property located west of the Burlington Northern
Railroad tracks which is presently on lease to the
Marysville Chamber of Commerce.
PASSED by t~~City Council and APPROVED by the Mayor this
,/51 day of --,!.Yl.,-,--,',4~1'-------'1987.
MAYOR
APPROVED AS TO FORM:
Resolution - 2