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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 -2-