Title
Appropriating funds to Cooperative District for Lease with Wholesaler
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
The Amendment to the Lease Agreement between the Cooperative District and the wholesaler requires the funds to be made available immediately for tax exemption purchases for fixtures and equipment that will become a permanent part of the City owned building.
SOURCE OF FUNDING:
Please provide the amount requested: $500,000
Is this a budgeted item? Yes /No
Please provide the budgeted amount: $_____________ Account No. 12-680-0182
If budgeted, is this a capital purchase, capital project, or special fund? _________________________
Was this item included in the Fiscal Year Capital Projects Plan? Yes/No
If yes, please provide the amount included in Capital Projects Plan: $___________
Body
WHEREAS, the City of Foley Public Facilities Cooperative District entered into a lease agreement with Gulf Coast Produce of Alabama, LLC on March 3, 2014, and
WHEREAS, under Section 33 Tenant Allowance the Landlord is to provide up to $500,000 in total value for Tenant improvements and equipment that will be necessary to run a first class wholesale distribution center, and under Exhibit "B" these funds would be amortized over a ten year period at five (5%) percent interest, which is part of the lease payment, and
WHEREAS, an amendment has been submitted to change this section to make the funds available immediately for tax exempt purchases since the fixtures and equipment will become a permanent part of the City owned building (Peavey).
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Appropriates and approves a transfer of $500,000 under account 01-680-0182 to the District for the project.
SECTION 2: This Resolution shall become effective immediately upon its adoption as required by law.