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HomeMy WebLinkAboutMinutes - City Council - 12/14/2009SPECIAL CITY COUNCIL 14 DECEMBER 2009 The South Burlington City Council held a special meeting on Monday, 14 December 2009, at 5:00 p.m., in the Conference Room, City Hall, 575 Dorset St. Members Present: M. Boucher, Chair; S. Dooley, M. Emery, J. Knapp, F. Murray Also Present: C. Hafter, City Manager; D. Gravelin, Assistant City Manager; S. Stitzel, City Attorney; Chief T. Whipple, Officer Snyder, Police Department 1. Consideration of Approval of Documents re: Purchase of 19 Gregory Drive: A. Declaration of 19 Gregory Drive, a Condominium with Exhibit's A-F: B. Fit-up with contract documents C. Option Agreement on 19 Gregory Drive, Unit 1 Condominium D. $7,200,000 Bond Anticipation Note for the Purchase & Renovation of 19 Gregory Drive, Unit 2: Mr. Stitzel explained that the exhibits include proposed By-Laws for the property. There are 2 units in this condo property divided in 73% and 27% of the total property. At present, REM Development is the declarant. By recording the Declaration, REM submit's the building to a "common ownership" agreement. Each owner has an interest in the limited common areas. There is no right to establish any other units, and any change would require 100% agreement. The City will have use of 93 parking spaces, and the other tenant will have 49 parking spaces. Mr. Stitzel said the document has been structured to allow the city use of its unit for Police use. The Declaration allows either unit owner to lease out its space. The Declaration contemplates that the space the city is acquiring and some common area will be undergoing renovations that are described in the Fit-Up Agreement. When renovation is complete, there will be new documents that redefine the exact square footage and the city's unit percentage will increase a bit because of the squaring up of one corner of the building. The By-Laws (required by State Law) set up the process to create an association and how that association will operate. The key thing the Association does is to manage the common areas for the benefit of both owners (e.g., plowing, lawn maintenance, electrical repairs, heat/utilities, etc.). The unit owners will choose an executive committee (2 persons from the City and 1 from REM). This Committee will take care of the day-today operation of the building. By and large they will operate by unanimous consent, but REM has agreed that a 2-1 vote will be binding. Mr. Stitzel explained that unique to this agreement is an option for the city to purchase unit #1. At the end of 20 years, the City has the option to acquire that property for $1.00. The option price for the city to purchase this other unit decreases each year. Mr. Hafter said he will make a recommendation to the Council next week as to who should serve on the executive committee. Mr. Stitzel said there will be a deed from REM to the city conveying unit 2 to the city. Simultaneously, the city will sign the fit-up agreement with REM, and there will be an option agreement for unit #1. Mr. Murray asked if there is protection so the tenant of unit #1 doesn't believe he can remain beyond 20 years. Mr. Stitzel said there can be a notice in the land records that there can be no lease beyond the 20 years. Members and the City Attorney considered a number of "what if's" with regard to the lease agreement. Mr. Murray then moved that for the acquisition, funding, operation and maintenance of 19 Gregory Drive, the City Council approve the following documents and authorize the execution of said documents by the City Manager, Chair of the City Council, Members of the City Council and/or any other required City representative: 1. The Condominium Declaration and By-Laws with included Exhibit's a through F that also are referenced at page 23 of 35 of the Condominium Declaration 2. The Fit-Up Agreement and fit-up plans for the First (Plan A) and Second (Plan B) Floors 3. An Agreement to enter into an Option Agreement and Floor Plans for 19 Gregory Drive 4. The $7.2M bond anticipation note for the purchase and renovation of 19 Gregory Drive, Unit 2, condominium. Ms. Dooley seconded the motion which was then passed unanimously. 2. Consideration of Municipal Bond Financing Documents for the Airport Parkway WWTF Improvement, $29,800,000 Bonds: Mr. Murray moved that the City Council approve the documents and their execution, which documents include a Resolution and Certificate, Loan Agreements (2), General Obligation Bonds (2), Certificates of Registration (2), Tax Certificate and IRS For 8038-G-by the City Council, and its Chair, Treasurer, and Secretary, the City Clerk, and City Treasurer - for the $21,800,000 of bonds for the improvements to the Airport Parkway Waste Water Treatment Facility. Mr. Knapp seconded. The motion passed unanimously. As there was no further business to come before the City Council, the meeting was adjourned at 6:00 p.m. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.