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HomeMy WebLinkAbout1991-04-01-R NO 91 BEFORE THE CITY COUNCIL OF THE CITY OF BATESVILLE, ARKANSAS A RESOLUTION AUTHORIZING THE CITY OF BATESVILLE TO ENTER INTO AN AGREEMENT WITH THE BATESVILLE JAYCEES REGARDING THE USE OF THE JAYCEE BUILDING AND THE MONIES DERIVED THEREFROM WHEREAS , the City of Batesville deeded certain land to the Batesville Jaycees on June 11 , 1966 conveying certain land in the West half of the Southwest Quarter of Section 16 , Township 13 North, Range 6 West in Independence County, now commonly known as the Jaycee Building; and WHEREAS , the Deed to the Jaycees from the City contained a reverter clause that provided as follows : In the event the Grantee ceases to be an active organization, or in the event the property herein conveyed ceases to be used for public purposes , then the property herein conveyed to the Batesville Jaycees shall automatically revert to the Grantor , the City of Batesville, Arkansas . and, WHEREAS , the City of Batesville passed Resolution Number 83- 8-1 on August 23 , 1983 authorizing the rental of the Jaycee Building to Multiway Associates for $600 . 00 per month; and WHEREAS , it was agreed between the City of Batesville and the Batesville Jaycees that the monthly rental be applied to improvements at White River Stadium, next to be donated by the Jaycees to the City for any Community Center undertaking begun by the City, and if no Community Center was begun within the lease period then the balance not used on improvements to the Stadium would be used for other community improvements with the approval of the City Council ; and r. WHEREAS , the City of Batesville and the Batesville Jaycees desire to continue the rental arrangement with Multiway Associates without the necessity of the City exercising its rights under the reverter clause while reserving and maintaining those rights , and the Jaycees desire to donate the funds to the City of Batesville heretofore collected and insure appropriate use of the rental proceeds in the future; now BE IT THEREFORE RESOLVED: 1 . That the City of Batesville and the Batesville Jaycees should enter into a lease agreement with Multiway Associates , a copy of which is attached hereto and incorporated herein by reference. 2 . That the language and spirit of Resolution Number 83-8-1 of the City Council of Batesville, Arkansas is adopted by reference herein. 3 . That the rental money received from Multiway Associates for the use of the Jaycee Building would be paid to the "Batesville Jaycee/City of Batesville Improvement Trust" . 4. That the rental money heretofore collected total approximately Fifty Seven Thousand Dollars ($57 ,000 .00) will be placed into the Trust account and disbursed as set out hereinbelow. 5 . That the Trustees of the Batesville Jaycee/City of Batesville Improvement Trust shall be the Mayor of the City of Batesville, the President of the Batesville Jaycees and the Trust Office of the Citizens Bank of Batesville, or his successor . • 0 6 . The Trust instrument or Trust Agreement shall contain the following language: A. No money may be drawn out of the Trust Account unless said money is used for capital maintenance or a capital improvement within the City of Batesville. B. No funds will be withdrawn or checks written unless signed by all three trustees . C. No funds will be expended without the consent and approval of the Batesville City Council and the Board of Directors of the Batesville Jaycees . D. An annual accounting will be provided to the Batesville City Council and the Board of Directors of the Batesville Jaycees by the Trustees . Said report would no only include the expenditures from the year just completed but would also propose future uses of the fund income. E. That all income of whatever kind from the Jaycee Building will be deposited into the Trust Account and all expenditures for maintenance and upkeep of the building shall be written out of the Trust Account . F. At no time will the fund balance be allowed to be drawn down below the balance reasonably necessary as a depreciation and maintenance reserve fund for the Jaycee Building. 7 . Of the approximately Fifty Seven Thousand Dollars ( $57 , 000. 00) previously collected but undisbursed, Forty Thousand Dollars ($40 , 000 . 00) would be donated to the City at the present time for improvements at the North Recreation Complex. Ten ~ ! 0 Thousand Dollars ($10,000.00) would be donated to the City as soon as construction could start for improvement or construction of facilities at Riverside Park. Five Thousand Dollars ( $5,000 . 00) of said funds shall be maintained in the Trust account as a depreciation/maintenance fund. BE IT FURTHER RESOLVED, that so long as the funds are so administered the City would not exercise its revert clause in the Deed to the Jaycees provided that all monies are used for capital improvements to City property as outlined hereinabove. Said agreement does not constitute a waiver of any rights the City of Batesville or the Batesville Jaycees have under the Warranty Deed of June 11 , 1966 , the language of said Deed being incorporated herein by reference. (W BE IT FURTHER RESOLVED, that the Mayor shall be authorized and empowered to execute whatever documents necessary to effectuate the intent and spirit of this resolution and the agreement between the City of Batesville and the Batesville Jaycees . IN WITNESS WHEREOF we have set our hands and seals this day of :�,� 1991 . /J ONORABLE JIM BARNETT, MAYOR ATTEST: DENISE JOHN.TON, CLERK