WHEREAS, the City Council of Elkins, Arkansas, passed Resolution 2008-21 to acquire a parcel of real estate and improvements from the Scarborough Revocable Trust ult/d February 28, 2007, for use as a multi-use City Administration Building.
WHEREAS, Rob Sample, as Trustee, agreed on behalf of the Scarborough Revocable Trust ult/d February 28, 2007, to sell the parcel of real estate and improvements to the City for use by the Elkins's Administration for the sum of Two Hundred Ninety-Five Thousand and noll 00 Dollars ($295,000.00) with the parties paying their specified share of all costs associated with the conveyance as set forth in such Agreement approved by Resolution 2008-21 with the sale scheduled to close the week of August 25th. WHEREAS, Arvest Bank is agreeable to financing the entire purchase price of $295,000.00, new procedures instituted in response to the overall economy now requires a mortgage on a second parcel ofland owned by the City to secure $35,750.00 of the purchase pnce.
WHEREAS, changes in lending procedures by Arvest Bank require that the City execute two (2) notes totaling $295,000.00 or less and execute first mortgages on two parcels of real estate instead of one parcel.
WHEREAS, Resolution 2008-21 authorized a loan of$295,000.00 secured by only a first mortgage on the land and improvements being acquired, although the restructuring presented above is within the broad authorization of 2008-21, specific authority for the second promissory note to Arvest and the additional mortgage is necessary.
BE IT THEREFORE RESOLVED BY THE CITY COUNCIL OF ELKINS, ARKANSAS, that after due deliberation and consideration of above facts and discussion of the restructured financing for the acquisition ofthe parcel of real estate and building from the Scarborough Revocable Trust u/t/d February 28, 2007, the Council has determined that the interests of the City, its residents and occupants will be best served by proceeding with the purchase of the parcel of real estate and building for the price of$295,000.00 plus the City's share of the costs/expenses of the transaction.
The Mayor and Recorder-Treasurer should be and hereby are authorized to execute and tender to Arvest Bank two promissory notes (not to exceed $295,000.00) and two first mortgages (on the parcel being acquired and another parcel owned by the City) to fully fund the purchase from Seller with all debt to be paid in full within five years (even if refinancing is required).
The Mayor and Recorder-Treasurer are also hereby authorized to take all necessary steps to obtain clear title to the parcel of real estate subject to the two first mortgages to finance the purchase price and to pay the City's share ofthe costs associated therewith from the funds ofthe City of Elkins General Fund.
PASSED AND APPROVED this 21stday of August, 2008.
- RESOLUTION 2008-23 (117 Downloads)