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HomeMy WebLinkAboutVI (C) Public Hearing - Approval of Unsecured Promissory Note in Amount of $200,000 to Finance the Acquisitions of Base Operations Mgmt. Services, Inc. Properties East of Bluford Avenue between McKey Street and Oakland Avenue Agenda 6-16-98 FOLEY & LARDNER Item vIC ATTORNEYS AT LAW CHICAGO POST OFFICE BOX 2193 SACRAMENTO JACKSONVILLE ORLANDO, FLORIDA 32802-2193 SAN DIEGO LOS ANGELES 111 NORTH ORANGE AVENUE, SUITE 1800 SAN FRANCISCO MADISON ORLANDO, FLORIDA 32801-2386 TALLAHASSEE MILWAUKEE TELEPHONE(407)423-7656 TAMPA ORLANDO FACSIMILE(407)648-1743 WASHINGTON D.C. WEST PALM BEACH MEMORANDUM TO: The Honorable Mayor and City Commissioners of the City of Ocoee 1)7y1_, FROM: Paul E. Rosenthal, Esq. , City AttorneyDATE: June 11, 1998 RE: Promissory Note in Favor of Base Operations Management Services, Inc . At its June 2nd meeting, the City Commission approved a Purchase Agreement with Base Operations Management Services, Inc. for the purchase of 12 platted lots located east of Bluford Avenue between McKey Street and Oakland Street . The Purchase Agreement calls for a portion of the purchase price to be paid by delivery of an unsecured promissory note in the amount of $200, 000 which would bear interest at the rate of 8% per annum and be payable over a term of three years . Principal payments would be payable in equal annual installments and interest would be payable annually on the anniversary date of the Note. The provisions of Section C-8 (G) of the City Charter provides as follows : "When a proposal for the borrowing of money in any manner. . . shall receive a majority vote of the members of the City Commission and the amount to be borrowed exceeds $100, 000, such action shall not be effective unless it has been acted upon by the City Commission after a public hearing preceded by at least 7 days' notice of the hearing and the proposed action by publication in a newspaper of general circulation in the City of Ocoee . " The Note from the City in favor of Base Operations Management Services is subject to this provision of the City Charter even though it is being delivered as part of the purchase price. ESTABLISHED 1 8 4 2 00/ A MEMBER OF GLOBALEX WITH MEMBER OFFICES IN BERLIN, BRUSSELS,DRESDEN,FRANKFURT, LONDON,SINGAPORE,STOCKHOLM AND STUTTGART t Accordingly, a public hearing has been advertised which complies with the Charter requirements. A copy of the notice is attached. In order to proceed with the closing pursuant to the Purchase Agreement, it is necessary that the City Commission approve the borrowing of $200, 000 as described above and that such action be taken following the public hearing. In the event the financing is not approved, then the Purchase Agreement would be terminated. RECOMMENDATION: It respectfully is recommended that the City Commission, pursuant to the provisions of Section C-8 (G) of the City Charter, approve the borrowing on an unsecured basis of up to $200, 000 in connection with the financing of a portion of the purchase price for the acquisition of 12 platted lots as more fully set forth in a Purchase Agreement dated June 2 , 1998 between Base Operations Management Services, Inc. , as Seller, and the City of Ocoee, as Buyer. PER/ww Enclosure cc: Ellis Shapiro, City Manager Wanda Horton, Director of Finance C:\WP51\DOCS\OCOE\PROMISOR.MEM 16/11/981 ROSENTHAL I PER:ww -2- The Orlando Sentinel, Sunday, June 7, 1998 D-3 NOTICE OF PUBLIC HEARING Notice Is hereby given pursuant torter theCity of Ocoee. Florida. l Section C-8G cA the r da. that the Board of City Commis- sioners at a regular session to be held June 18.1998,at 7:15 p.m..will hold a Public Hearing at the Ocoee City Hall. 150 North Lakeshore Drive,Ocoee. Florida.in order to consider the approval of an unsecured prom- issory issory note in an amount not to exceed$200,000 to finance the acquisitions of certain real as- tate located east of Milford Ave- nue between McKey Street and Oakland Street. Interested parties may appear at the meeting and be heard with respect to the proposed action. A copy of the proposed promis- sory note may be examined at City Hall.150 North Lakeshore Drive.Ocoee.Florida between the hours of 8:00 a.m.and 5:00 p.m..Monday through Friday. You are advised that if a person decides to appeal any decision made with respect to any matter considered at such hearing,he or she will need a record of pro- ceedings and for such purpose may need to ensure that a ver- batim record of the proceeding is made which mdudes testimo- ny and evidence upon which the appeal is to oe based.Per- sons with disabilities needing assistance to participate in any of the proceedings should con- tact the City Clerk's office 48 hours in advance of the meeting at(407)656-2322. Jean Grafton.City Clerk.City of Ocoee June 7,1998 COR2155511 JUNE-7,1998