HomeMy WebLinkAbout1982-002-01/19/1982-AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH HOME FEDERAL SAVINGS AND LOAN ASSOCIATI RESOLUTION 82- 2
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO ENTER INTO
AN AGREEMENT WITH HOME FEDERAL SAVINGS AND
LOAN ASSOCIATION OF THE ROCKIES (HOME FEDERAL)
AND STANLEY L KLEMETSON (KLEMETSON) FOR THE
PURPOSE OF PURCHASING THREE CONDOMINIUM UNITS LOCATED
AT 234 NORTH GRANT STREET IN THE CITY OF FORT COLLINS
WHEREAS, on November 17, 1980, the City entered into an agreement
whereby Klemetson would construct condominiums to be located at 234 North
Grant Street in the City, and
WHEREAS, the construction of the aforesaid condominiums was funded
utilizing a construction and development loan from Home Federal , and
WHEREAS, security for the construction and development loan of Home
Federal was supplied by Klemetson by deed of trust on the aforesaid con-
dominiums and by the City through deposit of Community Development Block
Grant Funds in the sum of One Hundred Thousand Dollars ($100,000) with
Home Federal , and
WHEREAS, three of the said condominium units cannot be sold at a
reasonable price upon the open market and, accordingly, Klemetson cannot
retire the development and construction loan of Home Federal , nor can
Klemetson retire a second loan made by the City in the amount of Thirty Two
Thousand Five Hundred Dollars ($32,500) , which loan is secured by second
deed of trust upon the property, and
WHEREAS, there remains in t;_ account at Home Federal , the sum of
Forty-Eight Thousand Eight Hundred Eighty-Seven and 86/100 Dollars
($48,887 86) including interest to January 6, 1982 as a portion of the
Community Development Block Grant Funds originally deposited by the City
with Home Federal as additional security, and
WHEREAS, there remains an indebtedness upon the aforesaid construction
and development loan of Home Federal in the sum of Ninety-Five Thousand
Forty-Two and 33/100 Dollars ($95,042 33) including interest to January
6, 1982, and
WHEREAS, it is the desire of the City to retire the construction and
development loan of Home Federal and obtain a complete release of the
encumbrance of Home Federal upon the remaining said three condominiums,
and
..
WHEREAS, it is further the desire of the City to acquire ownership of
the aforesaid three condominium units, in fee simple, free and clear of all
encumbrances, mechanic' s liens and other claims that may exist upon the
premises, upon the retirement of the construction and development loan
and upon the forgiveness of the promissory note executed by Klemetson in
favor of the City, and
WHEREAS, the Council of the City of Fort Collins has determined that
it is in the best interests of the City that the aforesaid encumbrances be
retired and forgiven and that the City acquire ownership of the aforesaid
three condominium units
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the City Manager be, and he hereby is, authorized to enter
into an agreement with Home Federal Savings and Loan Association of the
Rockies and Stanley L Klemetson for the purpose of acquisition, in fee
simple absolute, of the three remaining unsold condominium units located at
234 North Grant Street in the City of Fort Collins, upon the retirement, by
the City, of the development and construction loan of Home Federal as above
stated, and upon the forgiveness of the aforesaid promissory note executed
by Klemetson in favor of the City At the time of closing, the City shall
acquire Condominium Units 1 , 4 and 6 , Building A, The Corner Church Con-
dominiums , according to the Condominium Map and Declaration recorded
therefor in the office of the Larimer County Clerk and Recorder, by war-
ranty deed, conveying fee title to the City free and clear of all liens and
encumbrances and including any and all fixtures currently on the premises
BE IT FURTHER RESOLVED by the Council of the City of Fort Collins that
the above stated authorization is expressly contingent upon the prior
receipt by the City of the written promise of Stanley L Klemetson that,
upon sale by the City of the aforementioned condominium units, said Klemet-
son shall execute his promissory note, in favor of the City , for the
difference between the City' s total dollar outlay in acquiring said condo-
minium units less the City' s total net proceeds upon sale of said units,
and
FURTHER RESOLVED as an additional condition that said Klemetson shall
first deliver to the City his certified and sworn financial statement
detailing his financial condition at the present time and his financial
condition as of January 19, 1981
Passed and adopted at a regular meeting of the Council of the City
of Fort Collins held this 19th day of January, 1982
Mayor
ATTEST
1
City Clerk
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