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ORDINANCE NO. 53
(Series of 1986)
AN ORDINANCE APPROVING AN AGREEMENT WITH RED ROOF INNS, INC.
PROVIDING FOR THE RECONVEYANCE IN LIEU OF FORECLOSURE OF LOT 2,
GOLF COURSE SUBDIVISION (COMMONLY KNOWN AS THE "RED ROOF INN"),
FOR THE PURCHASE BY THE CITY OF FURNITURE, FIXTURES AND EQUIPMENT
CURRENTLY OWNED AND LOCATED ON THE PREMISES FOR A SUM OF NOT MORE
THAN $150,000.00 TO BE PAID ON A DEFERRED INSTALLMENT CONTRACT
BASIS AT THE RATE OF 7.5%, A RELEASE OF ALL CLAIMS BETWEEN THE
PARTIES AND SETTING FORTH ADDITIONAL TERMS AND CONDITIONS
THEREOF, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND
ALL OTHER DOCUMENTS NECESSARY TO ACCOMPLISH THE TRANSACTION ON
BEHALF OF THE CITY OF ASPEN
WHEREAS, in November of 1985, the City and Red Roof Inns,
Inc., entered into and transacted an agreement for the purchase
and sale of Lot 2, Golf Course Subdivision (commonly known as the
"Red Roof Inn"), wherein Red Roof Inns, Inc. agreed to pay the
City a purchase price of $2,500,000.00, payable $500,000.00 cash
at closing, with the balance evidenced by Red Roof Inns' non-
recourse promissory note bearing interest at the rate of 10% per
annum. Said note provides that it shall be payable in five (5)
annual installments of Four Hundred Thousand Dollars
($400,000.00) of principal, together with accrued interest, and
shall be fully due and payable within five (5) years from the
date of closing; and
WHEREAS, the City has been notified by Red Roof Inns, Inc.,
that it does not intend to make the principal and interest
payment due November 26, 1986; and
WHEREAS, Red Roof Inns, Inc. has proposed to reconvey the
property to the City in lieu of foreclosure proceedings; and
WHEREAS, in connection with Red Roof Inns, Inc. 's proposal,
there has been submitted to the City Council an agreement,
including the following terms and conditions:
1. Red Roof Inns, Inc. will reconvey Lot 2, Golf Course
Subdivision, in lieu of foreclosure.
2. In view of outstanding disputes between the parties
regarding maintenance, payment of water utilities, taxes, etc.,
Red Roof Inns, Inc. will convey to City furniture, fixtures, and
equipment commonly estimated at a fair market value of
$280,000.00, for the sum of not more than $150,000.00 to be paid
on an installment contract basis, bearing interest at the rate of
7.5% on deferred payments, to be paid two years from the date of
the reconveyance. The City's obligation would be secured by a
security interest in the furniture, fixtures and equipment and a
deed of trust on the property. The deed of trust may be removed
at such time as the City makes payment in full or guarantees
payment.
3. The City and Red Roof Inns, Inc. will execute a mutual
release regarding all outstanding disputes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ASPEN, COLORADO:
Section 1
That the City Council of the city of Aspen does hereby
approve that agreement for reconveyance of Lot 2, Golf Course
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Subdivision, in lieu of foreclosure, and the installment purchase
of furniture, fixtures and equipment currently on the premises,
copy of which is annexed hereto and incorporated herein, between
Red Roof Inns, Inc. and the city of Aspen, and does hereby
authorize and direct the Mayor to execute said agreement and all
other documents approved by the City Attorney as to form and as
may be necessary to accomplish said agreement on behalf of the
City of Aspen.
section 2
If any section, subsection, sentence, clause, phrase or
portion of this ordinance is for any reason held invalid or
unconstitutional in a court of competent jurisdiction, such
portion shall be deemed a separate, distinct and independent
provision and shall not affect the validity of the remaining
portions thereof.
section 3
Nothing in this ordinance shall be construed to affect any
right, duty or liability under any ordinances in effect prior to
the effective date of this ordinance, and the same shall be
continued and concluded under such prior ordinance.
section 4
A public hearing on the ordinance shall be held on the-1~
day of ~
, 1986, in the City Council
Chambers, Aspen City Hall, Aspen, Colorado.
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INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by
the City Council of the City of Aspen on the S day of
~ ' 1986.
illiam L. stirli g,
,.
ATTEST:
~ J~~
Kathryn ~o6h, City Clerk
FINALLY adopted, passed and approved this ~~
day of
~
, 19~~ /
f~~~
William L. Stirling, Mayor
ATTEST:
~~
Kathryn Ko, City Clerk
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