Section 101-570 Res. 211-00; Authorizing a Memorandum of Understanding w/Stephens College for the Lease/Purchase of the Stephens Lake Property


Council Bill No.           R 211-00         

A RESOLUTION

authorizing a Memorandum of Understanding with Stephens College for the lease/purchase of the Stephens Lake property.


BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBIA, MISSOURI, AS FOLLOWS:
            
    SECTION 1.  The City Manager is authorized to execute a Memorandum of Understanding with Stephens College on behalf of the City for the lease/purchase of the Stephens Lake property.

    SECTION 2.  The Memorandum of Understanding shall provide that the lease/purchase shall be contingent upon the following:

    a.    Passage of Proposition 1 at the November 7, 2000 election which would authorize the imposition of a local park sales tax.
    b.    An environmental inspection and assessment of the property that determines that the property is free of environmental contaminants or hazardous substances which the City would be legally required to remediate.
    c.    A commitment issued by a reputable land title insurance company for issuance of an owner’s policy of title insurance insuring that Stephens College has marketable title to the property.

    SECTION 3.  The Memorandum of Understanding shall provide that the lease purchase would contain the following terms:
    a.    The City would lease the Stephens Lake property from Stephens College for a period of six years.
    b.    At any time after the fifth anniversary of the date of lease, the City could exercise an option to purchase the property for the sum of $7,000,000.
    c.    Lease payments would be payable semiannually in the amount of $209,125.
    d.    The lease would be assignable.
    e.    The lease would be structured so that the rental payment is equivalent to tax exempt interest under Section 103 of the Internal Revenue Code of 1986.

    ADOPTED this 16th day of October, 2000.