HomeMy WebLinkAbout1985-112-07/03/1985-AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH BUCAIN CORPORATION, SOUTHRIDGE GREENS C RESOLUTION 85-112
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO ENTER INTO
- AN AGREEMENT WITH BUCAIN CORPORATION,
SOUTHRIDGE GREENS CORPORATION, CLIFFORD J. BUCKLEY,
AND BERNARD L. CAIN, JR.
WHEREAS, on the 26th day of October, 1982, the City of Fort Collins,
SouthRidge Greens Corporation, Bucain Corporation, Clifford J. Buckley and
Bernard L. Cain, Jr. , entered into agreements for the ownership and
construction of the SouthRidge Greens Golf Course; and
WHEREAS, SouthRidge Greens Corporation, Bucain Corporation, Clifford
J. Buckley and Bernard L. Cain, Jr. , have failed to perform according to
the terms of the agreements with the City of Fort Collins, having failed to
pay lease payments to the City in the amounts and the times when such
payments were due; and
WHEREAS, the City has negotiated with SouthRidge Greens Corporation,
Bucain Corporation, Clifford J. Buckley and Bernard L. Cain, Jr. , to
arrive at suitable terms for a new Agreement whereby the Bucain Corporation
would operate the SouthRidge Greens Public Golf Course on behalf of the
City and additionally pay to the City assessments from the sale of lots and
residential units, as a contribution toward the repayment of the debt for
the construction of the Golf Course.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS:
1. The City Manager be, and he hereby is, authorized to enter into an
Agreement between the City of Fort Collins and SouthRidge Greens
Corporation, Bucain Corporation, Clifford J. Buckley and Bernard L. Cain,
Jr., whereby Bucain Corporation agrees to operate on behalf of the City of
Fort Collins the SouthRidge Greens Public Golf Course, paying over to the
City certain net revenues derived therefrom and additionally making
payments to the City of assessments based upon sales of lots and
residential units in the SouthRidge Greens Subdivisions adjoining the golf
course.
2. In conjunction with the Agreement between the City and Bucain, the
Bucain Corporation and Clifford J. Buckley shall unconditionally guarantee
to the City the payment of the sum of $2,500,000. Additionally, Clifford
J. Buckley and Bernard L. Cain, Jr. , shall unconditionally guarantee
payment of $2,500,000, pledging their stock in the Bucain Corporation to
secure such guarantee upon the condition that after payment of $750,000 has
been received by the City, from all sources other than the net revenues
from the Golf Course,the sole recourse of the City against Cain shall be to
realize on the stock so pledged.
3. The Bucain Corporation, to secure unto the City the payment of the
sum of $2,500,000, shall grant a lien in its SouthRidge Greens Subdivision
properties , to record evidence the City's lien for its portion of sale
proceeds due from sales in the SouthRidge Greens Subdivisions.
4. The Agreement to be executed by the City Manager on behalf of the
City of Fort Collins shall contain any other provisions necessary to
protect the best interests of the City.
Passed and adopted at an adjourned meeting of the City Council held
this 3rd day of July, A.D., 1985.
mayor
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ATTEST:
City