7442M MW M
M
M
men
RESOLUTION
NO.
7,442
M M M �
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A DEED IN LIEU OF FORE-
CLOSURE TO LOT 30, CHARLES VALLEY PHASE II
SUBDIVISION, LITTLE ROCK, ARKANSAS; AND
FOR OTHER PURPOSES.
WHEREAS, the City of Little Rock, Arkansas, is
342
the holder of record title to Lot 30, CHARLES VALLEY PHASE II
SUBDIVISION, Little Rock, Arkansas, ( "Lot 30 ") subject to a
bond issue lease to Lagniappe IV Limited Partnership ( "Lagniappe ")
and an indenture originally running to Union National Bank
of Little Rock, the trustee, pursuant to which a Lagniappe
Inn motel was constructed and is operating on Lot 30; and
WHEREAS, the bond issue is in default and the bonds
have been redeemed by Savers Federal Savings and Loan
Association (_ "Savers "), the issuer of a letter of credit
backing the bonds; and
WHEREAS, Savers has instituted foreclosure proceedings
in Pulaski Chancery case number 84 -2926, seeking to foreclose
the fee ownership and the leasehold interest; and
WHEREAS, an offer to purchase Lot 30 has been received
which would satisfy the debt to Savers, would protect the
interests of the investors, would satisfy the claims of other
local trade creditors, would keep the motel operating and
providing jobs, and which would protect the City's claim for
payments in lieu of taxes, the City having no equity interest
in Lot 30; and
WHEREAS, the offer to purchase has been approved
by Savers, the investors, and all other necessary parties,
R -l3
t- �
M MW M m4 M r
contingent upon the City delivering to Savers a deed in lieu
of foreclosure; and
WHEREAS, prompt action on the part of the City is
required in order to effect the abovedescribed transfer,
which transfer is in the best interest of the City, the
other parties, and the residents of the City of Little Rock;
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and
the City Clerk are hereby authorized and empowered to execute
immediately a deed in lieu of foreclosure to Lot 30, CHARLES
VALLEY PHASE II SUBDIVISION, Little Rock, Arkansas, to
Savers Federal Savings and Loan Association, to be approved
as to form by the City Attorney; provided, that the Mayor
and City Clerk are satisfied that the transfer has been
approved by the managers and investors in the Little Rock
Lagniappe Inn and that satisfactory arrangements have been
made for the payment to the City of Little Rock of payments
in lieu of taxes for the year 1985 in an amount no less than
$13,500.
ADOPTED this 16th day of July, 1985.
ATTEST:
Ci Clerk Jang Czech
APPROVED:
Mayor
i d • .
A. Prince
343