The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION # 11-55
Resolution to approve Purchase Agreement and Assignment of Purchase Agreement related to Kirkwood Community College / John McDonald building.
WHEREAS, The City of Monticello wishes to see the John McDonald Building occupied, put in the hands of a private owner, and hopefully occupied by Four Oaks and other commercial tenants, and
WHEREAS, In furtherance of that objective, City staff has had many discussions with Four Oaks, Kirkwood, and an interested owner, Joel and Leslie Althoff, with regular reporting on said discussions / topic to the City Council, and has arrived at a process that appears agreeable to all parties, whereby the City would enter into a Purchase Agreement with Kirkwood to purchase the building for $1.00, with full rights to assign its’ rights to a third party, resulting in the direct transfer of the property to said third party by Kirkwood, and
WHEREAS, City Staff has negotiated the terms of an assignment with Althoff, whereby Althoff would pay the City the sum of $50,000 to step into the City’s shoes, as purchaser under said purchase agreement, the terms of said assignment being incorporated within this Resolution by this reference, as if set forth fully verbatim herein, and
WHEREAS, Althoff has agreed to the assignment, with the understanding that the City will negotiate an Economic Development Agreement with him, providing certain tax incentives over a period of time to offset the investment that will need to be made at the facility, and recognizing further that the Assignment is contingent upon the approval of such an agreement by the City and Althoff, and
WHEREAS, Four Oaks has indicated a willingness to remain in Monticello as a tenant at the John McDonald facility without objection to the proposed Althoff ownership, has met with Althoff and had open lines of communication with Althoff for weeks, and has indicated that they are very appreciative of the City’s and the Althoff’s efforts to keep them in the community and are very hopeful that they will be able to make that happen while acknowledging that there are a few details to yet be worked out on their end, but that a decision must be made very soon, and
WHEREAS, The City finds that the entry into the proposed purchase agreement with Kirkwood, and the proposes Assignment of that purchase agreement with Althoff to be in the best interests of the City, the best hope of keeping Four Oaks as a tenant and local business, the best present option to see to the maintenance and continued use of the John McDonald facility, and of no risk to the City as the Purchase Agreement, Assignment, and Economic Development Agreement are all contingent upon one another and the failure of any one of said agreements to be approved in an agreeable fashion to the relevant parties will allow the City to immediately withdraw from the purchase agreement without any obligation whatsoever.
NOW, THEREFORE, BE IT RESOLVED that the City Council of Monticello, Iowa does hereby approve the proposed Offer to Buy Real Estate and Acceptance and Assignment of same, and does hereby authorize the Mayor Pro Tem and the City Clerk to execute the same on behalf of and at the direction of the City Council.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the City of Monticello, Iowa to be affixed hereto. Done this 18th day of April, 2011.
John Sauser, Mayor Pro Tem
Attest:
Sally Hinrichsen, Monticello City Clerk