1982 ADJ MTG MIN APR 27 - Laserfiche WebLink

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City Manager Trevino stated that originally Mr. King was going to raise his own funds and go ahead and build the Library and use his own financing, and 185 that was the original Lease -Leaseback Agreement. Mayor Huntoon said subsequently Mr. King was not able to procure the financ- ing, so we took a little different route, isn't that true. City Manager Trevino answered yes, that was correct. 2. Lease Purchase Agreement - between City of Colton and Bank of America regard- ing lease purchase of project building and lease back of project site. City Manager Trevino said this concerns the Lease Purchase Agreement, whereby the project site is vested with the Bank of America then leased back to the City. Mayor Huntoon said then we are talking about the lot and the property that the City had to lease to the Bank of America to get the construction started, is that true. Mr. Trevino answered yes, that was true, in other words the Bank becomes the owner of the property and they would lease it back to the City as trustees. Mayor Huntoon said then the Bank would actually have a lease on the City's property for a given fee - how much? NMr. Trevino said as Trustees, the Bank would administer the entire transaction 7 and I believe the amount was $5,000. Q Mayor Huntoon stated the City had to lease this ground for a period of time to Q the Bank of America so that they could put their building, so to speak, on the City's ground, therefore, they had to have a lease. Mayor Huntoon asked about the terms of the lease. Mr. Trevino stated that he was not sure, however, Mr. Brown of Best, Best & Krieger would have this information. Mayor Huntoon said he thought that he had read it somewhere, or Steve Edwards had told him, that the City did lease the ground for a minimal fee for a period of fifty years, and at the end of ten years, if everything has gone along accord- ing to schedule and the City has made its payments, the lease will be terminated and the Library will be the City's on the City's ground. Mr. Trevino stated he would say that was about right. 4. Trust Agreement - documents relating to ownership interests of Certificate Holders. Mr. Trevino explained that if the Certificates are sold to the general public obviously, then, the purchasers of these Certificates do have a vested interest in the buildings and grounds, and the Trust Agreement relates to the various ownership intersts of those Certificates. Mayor Huntoon said as he understands it, this building and the ground for the period of the Contract will belong to the Certificate holders, is that true. Mr. Trevino answered yes, that is true. Mayor Huntoon continued is it also true that these Certificates have no claim on the City's General Fund, however, the City does have a Contract and a Lease Purchase Agreement to buy this thing, so the City actually is bound, even as much as though they had a claim on the General Fund, is that true. Mr. Trevino said he felt, of course, that would be a legal question and he would have to answer it in layman's terms. Mr. Trevino continued as he understands it, the Certificate holder has a vested interest in both the building and grounds, and the General Fund is not used as collateral; should the City fail to meet its obli- gation, then the Certificate holder has the obligation and right, of course, to attach the Library building. Mayor Huntoon said that was, in essence, the way that he understood it. 5. Construction Management Agreement - construction management services in connec- tion with construction of library. Mr. Trevino advised this is a concept whereby the City hired Mr. King to act as Construction Manager and to oversee the construction of the Library project. APR 2 7 1980,