HomeMy WebLinkAbout1995 Resolution No. 026•
•
RESOLUTIOtl No.,2_k_
SERIES OF 1995
A RESOLUTION RESTRUCT RING THE CITY OF ENGLEWOOD ':.l PROMISSORY
NOTE ON TROLLEY SQUARE .
WHEREAS, there is a current $800,000 Note on the Troll ey Squa•e prop e,;;y with a
principal balance due of $488 ,000; and
WHEREAS, Dillon Companies, Inc . ("Dillon") has r P.qu ested the City t-, ,ostructure the
Promissory Note and release the First Deed of Trust on the Trolley Squ u,, •roperty fo r
redevelopme nt purpose s; an d
WHEREAS, the City of Englewood beli ev es that the propo seJ redeve lopn: nt of the Troll ey
Squa re site is in the best inter est of the City ; and
WHEREAS, the restructurinpi the . · ote requires that the tirnicg •nd the amounts of the
mstallment payments be revi sec.'. to pro vi de for 40 quarterly paym onts of $7,200 .00 with an
additional annual payment of 52 0,(r.'1.00 on April 1 of each year; and
WHEREAS , the City 's belief is L • It is in the best interest of the City and the ci tizens of
Englewood to have Kin g Soop ers remain on t he site and have the site redeveloped rather than
losi ng thi s anch or tenant; and
WHE REAS , the entire Note wou ld be paid if Dill on were to leave this site prior to the yea r
2005, or the entire Note wou ld be due ii the Dillon Companies , Inc. was in default in an: of th e
other te rms of the Note ; and
\VHEREAS , to restructure financ in g fo r redevelopmen t of the site it is necessa ry for the
City to release its fir st li en pcsition and rely upon the overall asset s of the Dill on Com pon ies,
Inc . to fulfill its obligation; and
WHEREAS , the City's due dilii;u1co h as show n that t he Dillon Comp a nie s, Inc . doe s have
suffi cie nt assets to fu lfill this obli1:2 tion:
NO W, THEREFORE, BE IT RE SOLVED BY THE CITY COUNCIL OF THE C ITY OF
E:-<GLEWOOD , CO LORADO , THAT :
The City Council of th e City of En glewood , Colorado authorizes the City Manager to
restruct ure the current Prom issory Note of $488,000 on the Trolley Square property
authorizi ng 40 quarterly payments of$7,2 00.00 plus 10 annual payme nts ofS20,000.00 due
on April 1 of eech y ear. The restructure shall be conditioned upon Dillon or a related entity
ac qu inng ownership of the Trolley Squ.sre prop erty on or before July 1, 1995 .
The City Cou ncil of the City of Englewoo d , Colo rado a uthorizes the City Manager to ente r
into an a greerr.e nt with D'"on Compan ies , Inc. providing for the payment of $20,000 .00 per
year for ten (1 ?) co nsecutiv e years to Dill on Compan ies, Inc. to redevelop the Troll ey
Squa re property, each annual payment to be condition ed upon Dillon operating (or cau si ng
another to operate) a grocery store on the site and in no way beinir in defaut on any of the
terms of the f>Tomissory Note on the Trolley Square property between Dillon nnd the City of
E ngl ewo od .
ADOPI'ED AND APPROVED this 27th day ofFebruar:,, 1995.
~d-~-
Loucrish i• A. Ellis , City Clerk
I, Louer ishia A. Ellis , C:~· r.Jerk for t_ll~ City of Englewood , Colorado, hereby certify the
above is a true co py of Resolution N~ Series of 1995. ~C.!i{_
Loucrishia A. Ellis
•