HomeMy WebLinkAboutRES 1987-049 CITY OF GRAPEVINE, TEXAS
RESOLUTION NO. 87-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS AUTHORIZING THE CITY
MANAGER TO NEGOTIATE A REDUCTION IN PRINCIPAL
AMOUNT OF THE REAL ESTATE LIEN NOTE GIVEN BY
THE CITY UPON THE PURCHASE OF LAND LOCATED IN
THE WILLIAM DOOLEY SURVEY AND AUTHORIZING AND
�,,,, DIRECTING THE CITY MANAGER TO ARRANGE
FINANCING FOR THE REMAINING BALANCE THEREOF,
AND TO OBTAIN A RELEASE OF CERTAIN OTHER
COMMITMENTS OF THE CITY AND TO EXECUTE ON
'�'�'"' BEHALF OF THE CI'I'Y ALL NECESSARY DOCUMENTS TO
EFFECTUATE THE FOREGOING; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, on March 17 , 1987 , the City Council approved
Resolution No. 87-17 which authorized the purchase from Dallas
Grapevine Associates ( "Seller" ) of a 12 .15 acre tract of land
(the "Property" ) located in the William Dooley Survey, Tarrant
County, Texas; and
WHEREAS, in payment of a portion of the purchase price of
the Property the City delivered to Seller its Promissory Note
(the "Note" ) , dated April 9, 1987, payable to the order of
Seller in the principal amount of �1,016, 154.24; and
WHEREAS, to induce the City to prepay, or arrange for
prepayment of, the Note in full, Seller has offered to accept
the sum of $914,538.82, (representing a reduction in principal
amount of �101,615 .42, bein"g 10� of the unpaid principal
balance of the Note) , plus accrued and unpaid interest to the
date of payment, as payment in full of tY►e Note; and
WHEREAS, the Deed conveying the Property to the City
obligates the City to pay to Seller the additional sum of
�"`�` �52 ,925 .40 (the "Right of Way Obligation" ) in the event that
the City determines that certain right of way is not required
over the Property, and Seller is willing to release the City
from the Right of Way Obligation upon prepayment of the Note,
as above provided; and
WHEREAS, the proposed reduction of principal balance of
the Note would result in substantial savings to the City and
would be in the best interest of the citizens of the City of
Grapevine; and
WHEREAS, the City desires to accept the savings reflected
in Seller ' s offer to reduce the principal balance of the Note,
and to authorize the City Manager to arrange a reduction in
principal balance and/or prepayment of the Note and to arrange
bank financing, within the parameters set forth below, to
enable the City either ( i ) to borrow funds sufficient to enable
it to prepay the Note in the amount proposed by Seller; or ( ii )
to restructure the Note, and reduce the principal balance
thereof, as above provided, so as to enable a bank or other
lending institutional ( "Lender" ) to acquire the Note from
� Seller such that the Note becomes payable by the City to the
Lender upon the terms and conditions authorized below.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS:
Section l . That all the above premises are found to be
true and correct and are incorporated into the body of this
resolution as if copied in their entirety herein.
Section 2 . That the City Manager is hereby authorized,
empowered and directed, for and on behalf of and in the name of
the City, ( i ) to negotiate with Seller a reduction of principal
amount of the Note to an amount not to exceed $914, 538.82 (less
any reduction of principal from City funds pursuant to (iii )
below) and/or a prepayment in full of the Note in such amount;
( ii ) to require and obtain a release of the Right of Way
Obligation from Seller; ( iii ) to expend up to $35, 000 of City
funds reserved for payment of the Note to pay principal and/or
interest on the Note and/or the closing costs of the
transaction; and ( iv) to arrange with a Lender the financing of
the prepayment of the Note by the City and/or the purchase of
the Note, as restructured, by Lender from Seller upon the
following terms:
a) Interest Rate: not to exceed two and one-half
percent (2 1/2$) in excess of the "fed funds" rate
established from time to time by the Board of Governors
of the Federal Reserve System, adjusted not more often
than semi-annually;
b) Maximum annual increase in interest rate: two
percent (2$) ;
c) Maximum aggregate increase in interest rate: five
percent (5$) ;
d) Amortization: approximately equal monthly
installments of principal and interest over a term of not
less than thirty six (36 ) months;
e) Collateral: the Property;
f) Maximum principal amount of financing: $890,000 .
° Section 3 . The City does hereby appropriate and
authorize the payment of principal, interest and closing costs
from City funds in accordance with Section 2 ( iii ) above.
Section 4. The City Manager is hereby authorized,
empowered and directed, for and on behalf of and in the name of
the City, with the approval of the City Attorney' s office, to
execute any and all documents and instruments and to do any and
all acts and things, which he deems necessary or appropriate to
effectuate the purposes of this Resolution.
Section 5 . The fact that the present resolutions and
regulations of the City of Grapevine, Texas, are inadequate to
properly safeguard the health, safety, morals, peace and
general welfare of the inhabitants of the City of Grapevine,
Texas, creates an emergency for the immediate preservation of
the public business, property, health, safety and general
welfare of the public which requires that this resolution
become effective from and after the date of its passage and it
is accordingly so resolved.
PASSED AND APPROVED this 3� day of November , 1987 .
� �
� �j`;���i��j�-�`�"1"'� �.�-
Mayor , City of Grapevine, Texas
ATTEST:
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City ecretar
APPROVED AS TO FORM:
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City Attorney
11260
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