Title
AN ORDINANCE APPROVING THE CONVEYANCE BY THE CITY OF FOLEY, ALABAMA, OF REAL PROPERTY NOT NEEDED FOR PUBLIC OR MUNICIPAL PURPOSES
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
The Wolf Bay Lodge (WBL) transaction documents include the Sales Agreement, Easement Agreement, Vendors Lien, Guarantee, and Promissory Note. A Power Point showing the lease versus sale and the amount of money the City has collected over the past 50 months is also included. The City would like to reinvest $260,000 equity received from the WBL closing in the Aggregation Facility to create additional businesses, jobs, and income to the City.
Sales Agreement - The sales agreement is for a purchase price of $1.3 million, with $260,000 down. A promissory note in the amount of $1,040,000 will be executed for a 15 year periodat an initial interest rate of 4.5% per annum for the first 90 months. On the 91st month the payment of principal and interest due under the Note shall be adjusted and amoritized over 7.5 year at the new interest rate of 4.5%, increased or decreased, based upon the difference in the 10 year Treasury Note Rate on February 2015 and August 2022. The maximum amount of the New Interest Rate shall be 6.5% per annum and the minimum amount shall be 3.5% per annum.
Restrictions on the property are limited to a first class sit down family style restaurant serving a variety of foods commensurate with the Purchaser's current "Wof Bay" restaurant operations and to sell apprael in the gift store relating to the restaurant's business and trade name and for no other purpose. If not the City of Foley has the right after 60 days following each anniversary of the recording of the deed or shall automatically terminate after 99 years from the date of the recording of the deed. The City also has the first right of refusal under the same conditions.
Easement Agreement - The easement agreement is a non-exclusive easement agreement whereby the City will main...
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