19981110 r-98-62RESOLUTION NO. R-98-62
A RESOLUTION AUTHORIZING THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF
FAIRFAX TO ENTER INTO A PURCHASE
AGREEMENT AND A DEED OF LEASE, OBTAIN THE
NECESSARY FINANCING, AND TO EXECUTE
NECESSARY CLOSING DOCUMENTS FOR THE
PURCHASE OF CERTAIN REAL PROPERTY LOCATED
WITHIN THE CITY OF FAIRFAX, AND MORE
PARTICULARLY IDENTIFIED AS TAX MAP PARCEL
NOS. 57-2-((2))-11, 57-2-((2))-17, 57-2-
((2))-18 AND 57-2-((2))-19.
WHEREAS, the City Council for the City of Fairfax created
the Economic Development Authority for the purpose of
assisting with the redevelopment of certain areas of the City;
and
WHEREAS, the Economic Development Authority has
identified a redevelopment area at the intersection of Routes
123 and 50; and
WHEREAS, WES Associates, Inc. (the "Seller"), the owner
of Tax Map Parcel Nos. 57-2-((2))-11, 57-2-((2) )-17, 57-2-
((2))-18 AND 57-2-((2))-19, consisting of approximately 2.4746
acres (the "Property"), located within the redevelopment area,
wishes to sell the Property to the Economic Development
Authority; and
WHEREAS, the Economic Development Authority and the
Seller have engaged in negotiations for the Economic
Development Authority to purchase the Property, and have
agreed upon a purchase price of One Million Two Hundred
Seventy-Five Thousand and no/100 Dollars ($1,275,000); and
WHEREAS, the Economic Development Authority and the
Seller have generally agreed to the terms of a Purchase
Agreement, setting forth certain terms and conditions that are
to be satisfied by both parties prior to the closing of this
transaction, of the form attached hereto as Attachment A; and
WHEREAS, Seller has agreed to lease back the Property
from the Economic Development Authority, under terms outlined
in the Deed of Lease attached to the Purchase Agreement, and
the amount of the lease payments will be sufficient to cover
the annual loan repayment amount; and
WHEREAS, the Economic Development Authority has requested
bids from local financial institutions for the financing, and
Southern Financial Bank has presented the recommended bid for
providing said financing.
R-98-62
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NOW, THEREFORE, BE IT RESOLVED that the Economic
Development Authority is hereby authorized to execute a
Purchase Agreement for the purchase of the Property and a Deed
of Lease leasing the Property back to the Seller, of the forms
attached hereto as Attachment A, to obtain the required
financing, and to execute any necessary Closing Documents,
with the City Attorney being authorized to make any legal and
non-substantive changes to the Purchase Agreement and Deed of
Lease; and
BE IT FURTHER RESOLVED that it is the intent of the City
of Fairfax to guarantee the loan to be made by Southern
Financial Bank to the Economic Development Authority, such
guarantee to be in form and substance reasonably acceptable to
Southern Financial Bank and the City, subject to final
approval of City Council upon consideration and review of the
guarantee documents.
]aw.
This Resolution shall become effective as provided by
ENACTED: November 10~ 1998
T. Coughlin
J. Greenfield
R. Lederer
J. Peterson
G. Rasmussen
S. Silverthorne
Vote
absent
Aye
Nay
Aye
Aye
Nay
k~/PIAYOR
DATE
ATTEST:
~City Clerk