Minutes 03/14/1989 - Laserfiche WebLink

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TUESDAY, MARCH 14,. 1989 funding sources forthe project, which he described at that time as "alive and viable", requested an extension of the project start=up date to September 30, 1988, with the dnderstanding that the City may continue to use the property during the-extended period of time as a municipally-operated off-st'reet parking lot and, further, with the understanding that such start-up extension date request included the continuation and extension of the City's (i.e., R&HA's) right to re-purchase or buy back the property in the event the project failed to develop. Said minutes record the fact that, with the exception of Councilman Groden (who abstained because of a possibility of conflict of interest), all other members of Council, on the motion to grant the request, voted in the affirmative. City Attorney Worthy, commenting on the status of the project and related proceedings, informed Council that the re-purchase proviso has expired, whereas the restriction as to the use of the property will remain in effect until· such time, if Council so deems, as the Council removes the restriction. City Manager Brown reported that, although he has received no reply from the developer to a recent letter of inquiry as to status of the project (written at the direction of Council from Council's regular meeting held February 14, 1989), the deveioper has a permit, the developer has an architect, and the developer has assured Mr. Brown that funding is in place and along with other encouraging factors, the project is very much alive, with a resolution of the financing default with Piedmont Trust Bank expected to take place before the advertised auction date of April 5, 1989. Councilman Groden, after asking why Council was not notified in advance of the expiration of the extension date of September 30, 1988, referred to the term, "under construction", as applicable to the hotel project and in the agreement therefor; and, in addition, termed the recent paving of property purchased by the City at West Main and Moss Streets aS unnecessary and premature, inasmuch as the hotel project has not developed.