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HomeMy WebLinkAbout98-26 Ordinance No. 98-26 Authorizing acceptance of a deed of trust and note relating to Maple Shade Shopping Plaza on a partial donation and partial purchase basis, and authorizing the incurring of debt for such purchase • Adopted: December 28, 1998 Effective: December 28, 1998 • .~ i ORDINANCE 98-26 ORDINANCE AUTHORIZING ACCEPTANCE OF A DEED OF TRUST AND NOTE RELATING TO MAPLE SHADE SHOPPING PLAZA ON A PARTIAL DONATION AND PARTIAL PURCHASE BASIS, AND AUTHORIZING THE INCURRING OF DEBT FOR SUCH PURCHASE WHEREAS: 1. The Town of Pulaski is interested in acquiring property in the Town of Pulaski known as Maple Shade Shopping Center for multiple public purposes, including but not limited to municipal use as well as economic development and Town revitalization; and, 2. The real estate has been assessed for tax purposes at $417,900.00; 3. The real estate is subject to the lien of a deed of trust securing a note dated February 28, 1978, in the original amount of $825,000.00, with a current principal balance of $715,356.34, the holder of which is Thomas J. McCarthy, Jr.; and, 4. Thomas J. McCarthy, Jr. has offered to negotiate said note to the Town • without recourse, the value thereof considered by both parties to be at least the tax value of the collateral, that is, $417,900.00, if not more; and, 5. The parties have agreed to a purchase price of $417,900.00 payable on the following terms and conditions: One-half the purchase price, that is, $208,950.00, will be due and payable upon negotiation and delivery of the note to the Town; provided, however, that Thomas J. McCarthy, Jr. has agreed to forgive such payment as a donation and gift to the Town, which donation will be acknowledged by the Town at the time of delivery of the note; The sum of $52,237.50 will be due on January 15, 1999; the remaining balance of $156,712.50 will thereafter bear interest at the rate of six per cent (6°k) per annum from January 15, 1999 and will be payable in three principal installments of $52,237.50 plus accrued interest thereon, on January 15, 2000; January 15, 2001; and January 15, 2002, payable to Thomas J. McCarthy, Jr., his successors and assigns; This transaction is contingent on the Town receiving an enforceable sales contract executed by the owners of the property, but is no contingent on the closing; and, • 6. The Town Council deems it in the best interest of the Town to finalize this i transaction; NOW, THEREFORE, be it ORDAINED by the Town Council of the Town of Pulaski, Virginia, sitting in special session on December 28, 1998, that: 1. The acquisition of said deed of trust note and deed of trust on the foregoing terms and conditions is approved; 2. Upon receipt of an executed copy of the sales contract signed by the property owners, the Town Manager or, in his absence, any Acting Town Manager, is authorized and directed to do all things reasonably necessary to complete this transaction, including but not limited to accepting the note; accepting a donation by forgiveness of the initial payment of $208,950.00 and executing a receipt therefore; and executing such other documents that may be necessary; 3. The Finance Director is authorized and directed to make the initial January 1999 payment from Museum funds and unappropriated surplus and the remaining three (3) payments from such funds as are designated by the Council in its budget sessions, however, that the ob{igation of the Town to pay will not be contingent on the source of said funds; This Ordinance is effective upon adoption and is adopted by recorded vote of the Town • Council of the Town of Pulaski, Virginia, on December 28, 1998, as follows: James M. Neblett Aye W. Edgar Hale Absent Lane R. Penn Aye Joseph L. Weddle Ave Jeffrey S. Worrell Aye Pauline G. Mitchell Aye Bettye H. Steger Ave Charles W. Stewart gy.P TOWN OF PU I, VIRGINIA By: . ohn A. Johnst Mayor Atte Patricia Pendergrast, CI of Council • 3 • • I, Patricia Pendergrast, Clerk of Council, certify that the foregoing Ordinance 98-26, Authorizing acceptance of a deed of trust and note relating to Maple Shade Shopping Plaza on a partial donation and partial purchase bases, and authorizing the incurring of debt for such purchase at their regular meeting on December 28, 1998. . < ~.~ Patricia Pendergrast, Clerk o ouncil tp/c/ordinance/2002-04 •