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HomeMy WebLinkAboutminutes.council.19861103Continued MeetirYU Asx~en Citv Council November _3f_1.986 Mayor Stirling called the meeting to order at 5:05 p.m. with Council members Isaac, Fallin, Walls and Collins present. Councilman Isaac said Grassroots is under the impression the Council is changing their allocation. Mayor Stirling said he feels whatever the city's allocation is, Grassroots should always film the Council meetings and elections. Council requested this be added to the November 10th Council meeting. RED ROOF INNS City Attorney Taddune told Council this is a public hearing scheduled to consider Ordinance #51, 1986, which was amended to make the proposal for the sale of Red Roof generic regarding the purchaser. Taddune told Council since the last meeting, staff has not had any discussions with any purchasers. Taddune told Council staff has had discussions with Red Roof, who has proposed to reconvey the property, in lieu of foreclosure, to purchase the furniture and fixtures for not more than $150,000, to defer the payments for 2 years based on 7.5 interest rate; at the end of 2 years, the entire principle amount will be due, and to release all claims between Red Roof and the city. Taddune told Council there are no documents to be appended to Ordinance #51, changing the promissory note, because staff has not finalized the documents with any potential purchasers. Taddune recommended against approving this ordinance until the documents are finalized. City Manager Bob Anderson reminded Council they approved Ordinance #51, with a specific purchaser in mind. This has since been made generic and any reference to a spe c i f i c purchase r has been removed. Anderson recommended not approving Ordinance #51 until there is a specific proposal f or Council to consider. Anderson said Ordinance #53 is an alternative strategy in which the Red Roof will sell the city the furniture and fixtures for a reasonable price and under terms which will allow the city to defer the payment until the Red Roof could be sold. Anderson told Council Ordinance #53 would give the city a furnished hotel with which to go through a public process and sale on. Anderson pointed out the furniture and fixture are worth less to anybody than they are in place in the hotel. Mayor Stirling said this lodge has never been successful as a lodge. Nlayor Stirling said the Council needs to examine the highest and best use of this property, and what would be in the best interests of the town. Mayor Stirling said the city should move on Ordinance #53, take the ownership and deed back to the property in lieu of f oreclosure, buy the f urniture and fix t he roof. Mayor Stirling said otherwise Council will be reacting to whatever proposal is before them without developing a strategy 1 Continued Meetina Aspen Citv Council Nave~b~r 3. 198 for the property. Taddune told Council Red Roof has proposed a re convey ance in lieu of foreclosure, a installment contract on the furniture and fixtures of $150,000. Red Roof produced the bid-in price of $280,000 plus attorney's fees. Taddune told Council he has leases indicating the property was secured to finance 5600,000 when initially acquired for furniture and fixtures. Taddune suggested Council add Ordinance #53 to t his agenda and pass it on first reading. Gideon Kaufman, representing a potential purchaser, told Council they had hoped to be able to present a contract. Kaufman sid they seem to be in a bidding situation with the city. Kaufman told Council, originally they were dealing with Red Roof contingent upon the f urniture and fixtures being lef t in place without risk. The city is negotiating with Red Roof and is able to make a better deal with Red Roof . Kaufman said they are in a difficult position to make an offer because they do not know who will own the furniture and fixtures and who will be involved. Mayor Stirling agreed the situation needs clarity so that everyone knows how to proceed. Kaufman said one of the reasons there is not an offer from his client is that the city is contemplating a better offer. Bob Grueter, representing Red Roof, told Council he met with potential purchasers and with the city staff and felt the best way to proceed is to have the city take over the property. Councilman Isaac moved to table Ordinance #51, Series of 1986, until November 10, 1986; seconded by Councilwoman Walls. All in f avor, with the exception of Councilman Collins. Motion carried. Councilman Isaac moved to add Ordinance #53, Series of 1986, to the agenda; seconded by Councilwoman Walls. Councilwoman Fallin asked why this ordinance could not wait for first reading until November 10th and have the public hearing, November 24th, which is when it will be scheduled if passed tonight. Taddune told Council Red Roof is looking for a signal to see if the city is interested in reconveyance of the property. All in favor, with the exception of Councilmembers Fallin and Collins. Motion carried. Councilman Isaac moved to read ordinance #53, Series of 1986; seconded by Councilwoman Walls. All in favor, with the exception of Councilmembers Fallin and Collins. Motion carried. ORDINANCE #53 (Series of 1986) 2 Continued Meeting Aspen City Council November 3~ 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 TO BE PAID ON A DEFERRED INSTALLMENT CONTRACT BASIS AT THE RATE OF 7.5 PERCENT, A RELEASE OF ALL CLAIMS BETWEEN THE PARTIES AND SETTING FORTH ADDITIONAL TERMS AND CONDITIONS THEREOF, AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND ALL OTHER DOCUMENTS NECESSARY TO ACCOMPLISH THE TRANSACT ION ON BEHALF OF THE CITY OF ASPEN was read by the city clerk Councilman Isaac moved to adopt Ordinance #53, Series of 1986, on first reading; seconded by Councilwoman Walls. Roll call vote; Councilmembers Collins, no; Walls, yes; Isaac, yes; Fallin, no; Mayor Stirling, yes. Motion carried. Councilwoman Wal 1 s moved to adjourn at 5 : 45 p. m. ; seconded by Councilman Isaac. All in favor, motion carried. ~,. - - Kathryn S h, City Clerk 3