HomeMy WebLinkAboutRESOLUTIONS-1982-011-R-82' 2/10/82
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11-R-82
A RESOLUTION '
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Authorizing the City Manager
• ! and Corporation Counsel to Pursue
Default Remedies: Benson -Clark
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j WHEREAS,.the City of Evanston did on February 28, 1980 enter into
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an agreement for sale of certain real estate with Irvine -Buck Associates,
developer/purchaser for property commonly known as the Clark -Benson Triangle,
which agreement contemplated a start-up of construction by February 28, 1982
land provided remedies for default of either party; and
WHEREAS, this agreement was supplemented by the creation of escrow
(trust number 372924 at Chicago Title and Trust Company; and
WHEREAS, under the terms of said escrow trust funds deposited by
;!the seller and the purchaser along with a deposited original irrevocable
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;;letter of credit issued by the Northern Trust Company of Chicago with the
�) City of Evanston as beneficiary were to be remitted to the City upon its
Ildirection should purchaser fail to make all deposits into the escrow, in-
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1 cluding a financing commitment as required; and
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WHEREAS, the City Council of the City of Evanston is informed and
;;believes that no commitment for financing the construction of improvements
has been deposited in said escrow but that said commitment is by terms of
the escrow and the sales agreement to be deposited on or before February 28,
1982; and
WHEREAS, under terms of the Sale Agreement should purchaser default
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.I by failing to commence the construction of the improvements on February
28, 1982, plus unavoidable delays, the seller shall have the election to
receive all sums purchasers deposited in the escrow, collect the irrevocable
letter of credit, withdraw seller's deposits and require purchasers to re -
convey the premises, or in the alternative to exercise its .right of specific
i! performance,
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NOW, THEREFORE, BE IT RESOLVED that the City Council has determined
to pursue its right to obtain deposits and collect the letter of credit
and elects not to pursue its alternate remedy of specific performance,
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2/12/82
11-R-82 f
BE IT FURTHER RESOLVED by the City Council of the City of Evanston
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that pursuant to the rights of the City of Evanston as seller under the
;;Purchase and Sale Agreement and its rights pursuant to escrow 372924, the
• ',City Manager of the City of Evanston or his designee is hereby authorized
Tito exercise all rights of the City and to obtain all remedies provided by
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;;said documents. The City Manager is specifically authorized to execute
H directions to the escrow trustee for the return of all deposits and of the
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;original letter of credit and to make demand upon the Northern Trust Company
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`pursuant to the terms of Letter of Credit No. 247758(D). The Mayor is
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:'authorized to execute a sight draft upon the Northern Trust Company and all
;;other documents necessary to present the letter of credit.
�i BE IT FURTHER RESOLVED that this stated authority shall be exercised
I.on or after March 1, 1982 in the event that the required financing commitment
deposits and/or construction start-up deadlines have not been met pursuant to
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.,the terms of the agreement for purchase of sale and the escrow trust. i
• ;i .Mayor/
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;ATTEST:
City Cl er
Adopted: 1982.
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