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TUESDAY, MARCH 14, 1989 <br /> <br />City Manager Brown presented a status report on the downtown hotel project <br />proposed to be built by Martinsville Development Associates pursuant to the <br />terms of a purchase option agreement between the City (and/or the Martinsville <br />Redevelopment & Housing Authority, whose membership consists solel~ of the <br />members of the City Council) and Elledge & Associates, of Wilkesboro, North <br />Carolina, which agreement was dated November 7, 1986, and was duly executed by <br />Mayor Oakes as Chairman of the Authority (see page 414, et seq., of Minute Book <br />No. 25). Said purchase option agreement, as subsequently exercised by Elledge. <br />& Associates, granted Elledge & Associates the exclusive right, for a term of <br />sixty days from November 7, 1986, to purchase the Authority's property <br />(fronting Bridge Street between West Church Street and West Main Street) for <br />the sum of $300,000.00 (cash) and, further, provided the Authority with the <br />right and privilege of repurchasing said property for the sum of $282,000.00 <br />(cash) in the event construction of the hotel complex failed to begin within <br />one year from said November 7, 1986. The purchase option agreement also <br />restricted future usage of said property to the construction, operation and <br />maintenance of a hotel facility. Council was informed that, in execution of a <br />deed of trust from Martinsville Development Associates, dated January 20, 1987, <br />Piedmont Trust Bank, Martinsville, Virginia, will offer said property for sale <br />at public auction on April 5, 1989, reportedly because of non-payment by <br />Martinsville Development Associates of principal or interest due Piedmont Trust <br />Bank since September of 1988. According to minutes of a meeting of City <br />Council held January 12, 1988, construction of the hotel project was to have <br />begun on or before January 13, 1988, the date of the deed by which Elledge & <br />Associates (or its counterpart of subsidiary) purchased the hotel site property <br />from .the City's Redevelopment & Housing Authority; however, as those minutes <br />indicate, UDAG funding assistance for the project had been denied and Mr. <br />Maurice Elledge, President of Elledge & Associates, in order to seek other <br /> <br /> <br />