e e you go at this time I will call the special meeting of the LW and Water Authority order please call the role henkins Harris here Chapman Gil here Hampton weager Williams Warren business item number one consider approving a purchase and sale agreement and settlement agreement between school hasso Inc and the lot and Water Authority in the amount of $2,875 th000 for the purchase of the authority on behalf for the purchase by the authority on behalf of the city of Lon of improvements made by Schoolhouse slooh Inc as well as a personal property B apperances and other rights asso associated with the improvements or personal property C School House slw inc's interest in any leases or occupancy agreements with third-party tenants currently within the property d a copy of any existing plans and specifications for the improvements in any surveys Environmental Studies engineering reports and other technical information owned by School House SL Inc and E all all January 1 2023 electricity meter readings related to or taken from any location at the property or the last meter readings in the custody control or possession of school house SLO ank prior to the termination of Skool house sl's lease that related to or were taken from any location on the property set agreement also addressing other issues relating to the transaction providing a release from school house slooh Inc of claims it may have against the lot Water Authority in the city of lton providing a release by the lot and water authority of claims it may have against School High Slo Inc and if the agreement is approved authorize the execution of the agreement and any other action necessary to effectuate payment to school house slooh Inc Tim okay good afternoon board members so lengthy agenda item title but essentially what we're doing here is the authority if this approves is it's a purchase and and sale agreement and settlement agreement between the authority and Schoolhouse slooh Inc and the authority would be uh essentially buying the improvements and and kind of some history in the background for for the for the board to consider uh of course the city of lton owns Lake latonka uh the city uh leases this water system to the lot and Water Authority uh to manage and operate the authority uh with the city's consent back in uh in 1997 leased uh the land commonly known as Schoolhouse slew to Schoolhouse slooh Inc uh for and that lease essentially ran from May of 97 to December 31st of 2022 it was a ground lease and a non-exclusive concession operation agreement and so Schoolhouse slooh Inc ran the concession area uh operated operated that part of Schoolhouse slooh uh for you know 97 two to the end of 2022 um and so during that time Schoolhouse slew Inc uh they have built improvements uh structures on the land and operated those improvements with certain Machinery equipment fixtures and tangible property uh after Schoolhouse slooh inc's lease terminated uh there was a dispute essentially arose regarding the disposition of the improvements as a result of the lease's termination there's a section in the lease that talks about uh the the the lease estate that a new succeeding leie will be required to purchase those uh those improvements uh however since Schoolhouse sl's lease uh inks terminated uh over a year ago a new le has not been identified and rather the city's uh is administering the camping The Boat House leases and essentially acting in that capacity we're we're running Schoolhouse sleo in so um the the lease also required this expired that there be three independent appraisals done of the property to uh to determine its approximate value and those three appraisals have been done uh the first one by David means came in at 3 million 100,000 the second one for Isaacs and Associates came in at 2,700,000 and the third one uh Robertson and Company realy advisers came in at 2,830 thou th000 so the three appraisals have been done um the council at this point or the authority I say uh the proposed purchasing uh agreement will resolve the dispute with Schoolhouse slw Inc and then under the proposed agreement as as it was read in the title essentially The Authority will be purchasing from Schoolhouse slooh Inc on on behalf of the city the improvements made by Schoolhouse slooh Inc from that period of 97 to 2022 and as well as certain other things personal property apperances and and other Associated uh items rights associated with the improvements uh and and I'm not going to go through all that that's it's in it's in the background the agenda item but the the authority will be acquiring the those improvements and the rights to those improvements U and as part of this too Schoolhouse slooh Inc like like the may like the board chairman said in his in his reading was going to release all claims it has against the authority in the city uh the authority uh will release its claims it has with Schoolhouse it may have with Schoolhouse slooh Inc relating to any occurrences concerning this lease uh the land the improvements in the personal property in dispute um and the the purchase uh will be funded by the Authority's uh utility system Revenue note the for series 2023 which the which was issued in December of last year uh the The Authority uh got voted to go out for that in late October of last year the city council ratified that action at the same time and so uh we have the funds to to purchase the improvements um and that that's that's it in pretty much a nutshell if there's any questions questions council do you have questions if not do there a motion so move I have a motion for approval second and a second anything special on this uh no that requires a majority to pass majority okay all right uh discussion or debate please vote and the motion carries 7 to zero we have a motion for for adjournment have a motion and a second please call the rooll Chapman yes Gil yes weager yes Williams yes Warren yes henkins Harris yes I will call the special meeting of the loton city council to order please stand for the invocation by Pastor Bob weager and remain standing for the Pledge of Allegiance let's pray our father as we come before you today we are so thankful for the opportunity to stand before you and look to you as the God of all wisdom to once again Lord you've taught us in Proverbs that um a wise man Hears A Matter before he answers it thank you Father for the the materials that you provided for us to study and look over what you would have us to do may you be pleased with all all these decisions and we thank you Father for the opportunity to serve guide and direct us as we continue now in Jesus name amen amen I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all right thank you Pastor and please call the RO henkins Harris Chapman Gil here Hampton weager here Williams here Warren pres business item number one consider approving a resolution amending the city of Lon FY 2324 budget as amended by appropriating 10 million 354,000 Improvement in the operation of the water systems at Lake lonka who's speaking I I can lead off and then Joe Don can can pick up uh part of this council is this budget amendment is to uh now that the authority has has approved uh the purchase of the improvements at Schoolhouse slooh is to amend the the city's budget so that the payment can effect be effectuated essentially and so that's that's the second component and then Jo on there's a part on here for arpa and I'll let you discuss that yes the part on the ARP is just appropriating the money sorry can you hear me now okay uh part of the AR the part on the arpa grant is to budget the money so that it can be spent for the improvements out on uh into the Industrial Development Area of lton the uh it the money was not is is available it just was never budgeted to be done we need to get it budgeted so Rusty can continue on with this project out there okay tell me which partt ARA this was it's the it is the uh income replacement funds that we' set aside then the expenditures for that can be is this the same is this the same funds that we were originally going to use for the sports complex and then we used it for West Wind it is the funds that were going to be used for West Wind yes sir I'm talking that they gave us back okay all right I'm clear now council do you have any other questions see manager looks like he wants to say something I just have a question for the City attorney did the Floyd Law Firm look at this and weigh in on this expenditure of arpa I'm thinking so my pause so um I want to say it was discussed with Lynn uh this expenditure ARA idea is not not a new not not something that's new it was Rusty is coming up to add to add to this but it was it was discussed when we started talking about doing the Redevelopment agreement the amended Redevelopment agreement I want to say in August or so and at that point I think a decision was made to and to to look at going with arpa funds instead of CIP funds that was originally in the I think in the original Redevelopment agreement um but I I think Lynn Lynn knows about it we have discussed this with Lynn uh and she weighed in that the change and the switch from the uh payment over to the West Wind as an incentive and changing that back to infrastructure for R for the development of that property would be a cleaner method of using the Opera funds than uh originally planned yes in in a phone call with Lyn and the City Attorney at that time uh she said that is a cleaner way to to use the arpa funds because that is one of the line four line items specifically for uh infrastructure improvements is a much cleaner way of using those funds okay okay well that's concerning that we were going to do something that wasn't clean but apparently it's been changed so we're good and I think that takes care of the arpa funds is that correct and theyve all want to clarify because of that more defend more defenda bles maybe everything has been done under the direction of the bond attorney I want to clarify that is that correct okay any question question I do mayor Miss Williams okay yes how much how much money is given back from West Wind back to you said the money was coming back from West Wind the original amount set aside uh for the West Wind incentive was $10 million a portion of that $10 million was coming out of the arpa funds uh and another portion of that $10 million a minor portion part of the concern for Bon Council too I think that's coming back to me is the arpa funds have to be spent by a certain part part is infrastructure the 7 million or so but part of it is the 2.9 Million for the purchase of the uh Schoolhouse slew and that is not arpa money the arpa uh West Wind project is the phase one waterline project the design of the phase one waterline project the pre- purch purchase of materials for that phase one the design for the phase 2 project which is the sewer systems to support that site and other water improvements to for that entire industrial site okay so let's just clarify the 10 354 32994 is not all ARA money 2.9 of it is coming from the loan proceeds to purchase Schoolhouse Lees correct that is correct okay that brings up another question because we had approximately 9.5 million that was dedicated to the art to the West wi incentive that was returned at the end of that contract period uh the 2.9 off of here leaves something about 7.7 and there was 9.5 so what's where's the rest of that and what is the plan to properly allocate that in the give time okay that money is still sitting in our accounts it has not been allocated out yet for expenditure so as soon as we have an expenditure and the plan I believe would be to have all that money used uh for the development of infrastructure water sewer lines uh out to the industrial site I think Rusty is going to need all of it but we just haven't allocated out all of it yet okay is that a is that accurate yes that's correct you do expect to be reallocating the remainder of the arpa funds for infrastructure cor to the industrial par yes okay any other questions Council Mr Harris um and I don't know which one of you gets this on section two uh it says the city council does hereby amend the budget by 2,940 uh dollar 9 40,000 that we actually we need to fix that uh it should say $2,940 th000 this says $2,940 to fund the acquisition and improvements in the operation of the water system that provided a benefit to the lot and Recreation facilities at Schoolhouse loo what is the water system that we uh that we have to improve well that is the language that the bond attorney gave us to put into this resolution uh it is the money that the money that you just approved in the will uh city council meeting um or the Water Authority meeting is that $2.9 million that we have to pay over that we borrowed to pay over to uh Schoolhouse slute so it's not really going to a water system it's going to purchase School House so so in a broad sense the water system is the lake and everything associated with the lake and that would inclued the schoolhouse slew area and and the improvements made so I think council is councilman is considering the definition of water system a little too narrowly is but water system is is the schoolhouse would be the schoolhouse slew area yes that's a big broad yeah well that's that's the that's the language bong Council prepared and and that was acceptable with Bond Council and acceptable for the note so do we need to change the language here just to correct the 2 million $940 we we would need a floor Amendment why don't you make that motion okay yeah so we want that as part of an overall motion to accept Okay um so make the motion that we uh accept the resolution amending resolution 23- 94 uh with the exception of the change in section two uh where it says the city council does hereby amend the fiscal year 2324 budget originally adopted on the 13th of June 2023 for the purpose of increasing Appropriations in account number 75250 1- 53020 by 2,900 $4 to change that to $2,940 th000 uh to fund the acquisition improvements in the operation of the water system that provided a benefit to the lot and Recreation facilities at Schoolhouse slooh we have a motion is there a second we do have a second hold on just a minute so councilman Harris that that that error is in section two where it says $2,940 but if you go up two more parad graphs it's also in the last whereas where it says 2,940 40,000 that's that one's right okay so we're right there never mind okay we have a motion and a second discussion or debate please vote motion carries 7 to zero bringing up item number two approve and ratify the action of the lot and water authority and approving a purchase and sale agree agreement and settlement agreement between school high slow Inc and the lot and Water Authority in the amount of$ 2,875 th000 Tim thank you mayor and Council this is just an action item we put on for the council to to ratify the action of the lot and Water Authority in doing the purchase and sale agreement uh settlement agreement with Schoolhouse slink that the the Water Authority just just voted on probably 10 minutes ago or so um reason we put that on is that the city council back when the lease was done from the uh from the water authority to Schoolhouse slooh Inc back in 97 uh the Water Authority was the lur Schoolhouse slooh Inc was the L C the city's listed in the lease and the city signed the lease as the beneficiary uh I believe uh but so thought it would be appropriate to have city council just approve and ratify uh and so that's what we're doing here if there's any questions seeing no questions is there a motion move to approve and ratify the actions of the lot Water Authority in the purchase of uh properties and other tangible items from Schoolhouse SL we have a motion and a second discussion or debate please vote motion carries 7 to Zer is there a motion for adjournment move we do have a motion do we have a second second we do have a second hold and we're going to have one quick announcement afterwards but go ahead and get us out cold R Gil yes weager yes Williams yes Warren yes henkins Harris yes Chapman yes okay we do stand a journ but a quick announcement we are in a blood supply emergency I encourage each council member and all staff members to please consider going to oml and giving it and giving blood as well as the citizens that hear this announcement please consider giving blood now thank you
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