HomeMy WebLinkAboutRes1987-075
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Sponsored by: Garzini
CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-075
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING AN AGREEMENT WITH ALASKA
MUTUAL BANK AND APPROPRIATING FUNDS TO MAKE INTEREST
PAYMENTS ON THE GATEWAY SUBDIVISION LOAN WITH AMB
WHEREAS, the city of Seward has received an offer from
Alaska Mutual Bank which would allow the city to prevent the
foreclosure of Gateway Subdivision and the subsequent loss
of the city's covenants; and
WHEREAS, the agreement offered by Alaska Mutual Bank
provides for the payment by the city of $7,479 per month to
hold its option on the property open until June 30, 1988;
and
WHEREAS, if the agreement with AMB is approved, the
administration will begin making marketing contacts to
pursue private interest in this property; and
WHEREAS, with the opening of the prison, the Gateway
Subdivision project should become a more viable one as the
demand for lots increases;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that:
Section 1. The city manager is hereby authorized to
enter into an agreement with Alaska Mutual Bank in accor-
dance with the terms set forth in AMB's letter of August 19,
1987, a copy of which is attached and incorporated herein by
reference.
Section 2. The city manager is further authorized to
transfer the sum of SEVENTY-FOUR THOUSAND, SEVEN HUNDRED AND
NINETY DOLLARS ($74,790) from the General Fund-Fund Balance
to the General Services Account No. 101-118-518-10-79 for
the purpose of making interest payments to Alaska Mutual
Bank to preserve the city's option on the Gateway Subdivi-
sion.
Section 3. This resolution shall take effect immedi-
ately upon its adoption.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
Sn'l'PD, z:.I1\SKA, tl',i~ _~ Clay of Auqust , 19~
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-075
THE CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
DUNHAM, GIESELER, HILTON, MEEHAN, NOLL & SIMUTIS
NONE
BOOHER
NONE
ATTEST:
(City Seal)
APPROVED AS TO FORM:
HUGHES, THORSNESS, GANTZ,
POWELL & BRUNDIN, Attorneys
for the City of Seward, AK
7~ Yl/~
Fred B. Arvidson
City Attorney
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RESOLUTION NO. 87-075
ATTACHMENT "A"
~ Alaska Mutual Bank
August 19, 1987
l?l @~c~G ~8~lOJ
Mr. Ronald Garzini
C i t Y of Sewat'd
P. O. Be.x 157
Seward, Alaska 99564
CITY OF SEW.A.RO
CITY MANAG~R
Dear Mr. Garzini.
The Investment Committee and Board of Directors of Alaska
Mutual Bank have reviewed the proposal presented by you
relating to Gateway Subdivision. We have determined that
your proposal is acceptable, but the option price will be
increased on a monthly basis beginning at $1,375,121121121 on Sept.
3121, 1987, and we will agree to an additional 6 month
extension to exercise the option. Thus Alaska Mutual will
agree to the following:
1.
The agreement with the City of Seward would be for a
period of 6 months with the right to two additional
extensions for 4 months (to June 3121, 1988) and 6
months (to Dec. 3121, 1988).
~. The City of Seward would pay AMB $7,479.121121 on or
before the first of each month, commencing Sept. 1
1987. through the agreement period of any extension.
3. The City would be granted the exclusive option to
buyout AMB's position in the amount and at the
times set forth below.
OPTION PRICE PURCHASE DATE
$ 1,375,121121121 Sep 3121, 1987
1,4121121,121121121 Oct 3121, 1987
1,425,121121121 Nov 3121, 1987
1,45121,121121121 Dec 3121, 1987
1,475,121121121 Jar. 3121, 1988
1,5121121,12100 Feb 28, 1988
1,525,000 Mat' 30, 1988
1,55121,121121121 Apt' 30, 1988
1,575,121121121 May 30, 1988
Financial Services of Alaska Mutual Bancorporation:
Alaska Mutual Bank, Alaska Mortgage Company and Simlog Leasmg Company
1500 W Benson Boulevard. P.D Box 99003. Anchorage, Alaska 99509-9003. (Q07) 258-7890
Member FDIC
RESOLUTION NO. 87-075
ATTACHMENT "A"
. 1,6121121,121121121 Jun 3121, 1988
1,625,121121121 Jul 3121, 1988
1,65121,121121121 Aug 3121, 1'388
1,7121121,121121121 Sep 3121, 1988
1,725,121121121 Oct 3121, 1'388
1,75121,121121121 Nc.v 3121, 1988
1,775,121121121 Dec 3121, 1988
The City of Seward will have the option of gaining control of
the R.E. and have sufficient time to find a developer willing
to go forth with the project. In addition the prison will be
on line and the demand for the lots will increase. This
represents and compromise position and Alaska Mutual would
take a significant discount from the loan balance.
If you have any questions or need additional
please call.
i r,fo:)t'mat ior,
s~
Victor' Mollozzi
Senior Vice President
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