HomeMy WebLinkAbout1581A RESOLUTION NO. ISBN ff
A RESOLUTION of the City Council of Kent, Washington,
authorizing the Mayor to execute a real property purchase and sale
agreement for the acquisition of the site of Borden Chemical, Inc.
located in downtown Kent and to execute an agreement with King
County, Washington to provide financing for such acquisition
WHEREAS, the City of Kent, Washington (the "City") has negotiated an agreement with
Borden Chemical, Inc., (the "Seller") to acquire the site of its chemical plant in downtown Kent
(the "Borden Site")pursuant to which the City will acquire the site and lease it back to the Seller
for a limited period of time and upon termination of the lease the Seller will demolish the
facilities located thereon; and
WHEREAS, the City could exercise its power of eminent domain to acquire the Seller's
property and the Seller has negotiated the sale of such property under such threat; and
WHEREAS, the City deems it to be in the interest of the City and its citizens to acquire
the Borden Site given its central location in downtown Kent and the opportunity it affords the
City to develop its downtown core with coordinated public and private uses; and
WHEREAS, the City has negotiated an agreement with King County, Washington(the
"County") pursuant to which the County will loan to the City federal funds representing a
portion of the costs necessary for the acquisition of the Borden Site;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Kent,
Washington, as follows:
Section 1. Acquisition of the Borden Site. The City Council hereby finds and
determines that the acquisition of the Borden Site in accordance with the purchase and sale
agreement between the City and the Seller on file with the City(the "Real Property Purchase and
Sale Agreement") is in the best interest of the City and its citizens and will provide the City with
a unique opportunity to plan for the coordinated public and private use of its downtown. The
Mayor is hereby authorized to execute the Real Property Purchase and Sale Agreement in
substantially the form on file with the City and to take such other actions, including the
execution of a lease of the property back to the Seller for a limited period, as are necessary or
prudent to acquire the site and implement the terms and conditions of the Real Property Purchase
and Sale Agreement.
Section 2. Financing of the Acquisition of the Borden Site. The City Council hereby
finds and determines that the financing offered by King County, Washington in accordance with
the loan agreement on file with the City (the"Loan Agreement") is in the best interest of the City
and its citizens and will provide low cost financing with significant flexibility to acquire the
Borden Site. The Mayor is hereby authorized to execute the Loan Agreement in substantially the
form on file with the City and to take such other actions as are necessary or prudent to receive
such financing and obligate the City to repay such amounts in accordance with the Loan
Agreement, including the execution of a reimbursement agreement with U. S. Bank National
Association to secure a letter of credit as required by the Loan Agreement.
Section 3. Supplemental Financing. The City Council hereby authorizes the
expenditure and hereby appropriates such additional amounts as are necessary, in addition to the
proceeds of the Loan Agreement, to fulfill its obligations under the Real Estate Purchase and
Sale Agreement and to pay the costs associated with this transaction.
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Section 4, Effective Date. This resolution shall take effect immediately upon its
adoption.
ADOPTED by the City Council of the City of Kent, Washington, at a regular meeting
thereof this 12`h day of December, 2000.
CITY OF KENT, WASHINGTON
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ATTEST:
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