OCR Text |
Show )oiipronis On and Sib i;tY R. BLODGETT BTERVILLE City iwere forced to com-' com-' -s with a Salt Lake City 1 :rand accept only one-J one-J iai annual contractual f 'iotforthe sale of proper-it proper-it city's industrial park. ( SPLIT 3-2 vote, the -I agreed to accept an payment of $120,000 . 1 "j" of the amount called J 1 -k agreement signed I ' year ago. t I potion by Councilman I -Campbell, the council 3-2 with Councilmen I '-iuferth and Lee Dun-u Dun-u 'porting the motion. m Kenneth Holman s Knoles opposed. 5l i MOTION from Coun-i Coun-i Campbell also asked statement and a reportfrom thereal-1 thereal-1 Purchasing the 110 suggested that rate in the contract y from 10 percent JHo 15'2 percent. "TfflS PROPOSED interest rate is still considerably below existing interest rates," explained ex-plained Councilman Campbell, Camp-bell, who is an executive officer offic-er for State Savings and Loan. The council noted that because be-cause of the reduction in the land, payment this year, the city will be left with a deficit of $375,000 worth of tax anticipation anticipa-tion notes purchased to help pay city expenditures for the current fiscal year. PAYMENT ON these notes is due June 30 and city officials admitted that they expected the $240,000 payment, which included interest, would be used to help offset the tax anticipation anti-cipation loan. "It looks like we are really going to be in financial trouble now," said Councilman Holman. Hol-man. "But it means we either take what we can get or cause the buyers to default on the contract." MAYOR NEIL Blackburn explained the council could vote to refuse to negotiate the contract; agree to negotiate and accept $120,000 and suffer the consequences of the tax anticipation notes deficit; or attempt to renegotiate the contract, con-tract, including raising the interest in-terest rate. There is still a balance due on the contract after the April 1 payment of approximately approxi-mately $313,000. THE TENTATIVE agree-. ment is for Centerville to receive re-ceive $213,000 plus interest next year (April 1, 1983) and the balance of $ 1 00 ,000 plus interest in-terest on or before April 1, 1984. In an appeal to the council for an extension on the contract, con-tract, the Salt Lake realtor, Bonnie Reynolds, told the council that a drastic change in the economic conditions has made it difficult, if not impossible, impossi-ble, for her firm to keep its contractual con-tractual agreement. "WE HAVE made every effort to come up with the necessary money," she said. "We even sold several expensive expen-sive homes at a tremendous financial loss in an attempt to i raise the money." She added: "It's difficult just staying alive in the field of real estate, especially when everything else is changing and we have to live by hard-fast rules." SHE ASSURED the council that she still would like to work with the city in every possible way to meet the financial agreement of the contract. "It would be difficult to walk away from $100,000 that was made as a down payment," pay-ment," she said. "But if that's what we have to do, then I guess that's all we can do." SHE ALSO criticized the (former) council for being a little lit-tle deceptive or misleading in their representation of the property. She said some of the property could be classified as "wetlands" and not be used for construction. "Because of the economic conditions we have not even attempted to develop the property," prop-erty," Ms. Reynolds told the council. "Therefore, the coun- cil is ready in the driver's seat because, they have our ($1,000,000) initial payment and if we default the city would keep the payment plus get the property back." |