Title
A Resolution Authorizing The Exercise Of The City's Repurchase Option Under Section 2(c) Of The Statutory Warranty Deed To IRH Foley, LLC (Baldwin County Instrument No. 2073627) And The Reconveyance Of Undeveloped Property In Zones 2, 3, And 4
Summary
This resolution authorizes the City to exercise its repurchase option under the Statutory Warranty Deed with IRH Foley, LLC, following IRH's failure to timely commence development of the second phase of the workforce housing project as required by the deed. The resolution authorizes the Mayor and City officials to execute all necessary documents, complete the required subdivision, accept reconveyance of the undeveloped property in Zones 2, 3, and 4 for the contractual repurchase price of $10.00, and take any actions necessary to protect the City's interests and complete the transaction.
Body
WHEREAS, by Statutory Warranty Deed with Reservations dated June 12, 2023 (Instrument No. 2073627, Baldwin County Probate Office) (the "Deed"), the City of Foley, Alabama (the "City") conveyed to IRH Foley, LLC ("IRH") Lot 1, Sportstown Village Subdivision, Phase 1 (Slide 2604-B) (the "Property") for nominal consideration; and
WHEREAS, the conveyance was made to incentivize IRH to construct dormitory-style housing for J-1 Visa holders and transient workers, serving the public purpose of supplying workforce housing to businesses upon which City revenues depend; and
WHEREAS, the conveyance was subject to conditions ensuring the Property's return to the City if municipal benefits are not realized, including the repurchase option in Section 2 of the Deed; and
WHEREAS, the Deed requires development in four phases: Buildings 1-2 (Phase 1), Buildings 3-4 (Phase 2), Buildings 5-6 (Phase 3), and Buildings 7-8 (Phase 4); and
WHEREAS, Section 2(c) of the Deed provides that if the Grantee completes Buildings 1 and 2 but fails to commence vertical construction of Buildings 3 and 4 within thirty-six (36) months of the Deed's d...
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