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HomeMy WebLinkAbout~Master - Deferred payment from Vantage Enterprises RESOLUTION NO.02-472 RESOLUTION ACCEPTING OFFER OF DEFERRED PAYMENT FROM VANTAGE ENTERPRISES UNTIL SEPTEMBER 30,2002, FOR THE CITY OF AMES WHEREAS,in 1997,the City entered into a ground lease with Vantage Enterprises,LLC,for use of 12.75 acres of land at the Municipal Airport; and, WHEREAS,Vantage Enterprises constructed two buildings and leased them to VisionAire Corporation for assembly and testing of jet aircraft; and, WHEREAS,the City's ground lease with Vantage Enterprises had an initial term of ten years starting on July 1, 1997, and may be renewed for an additional 40 years; and, WHEREAS,as an additional incentive for the VisionAire development,the City provided a very reduced rent structure to Vantage Enterprises in that the annual rent was set at$100/acre for the first five years; and, WHEREAS, on July 1,2002,rent in the total amount of$34,425 was due,however,to date,no payment has been received; and, WHEREAS,the Manager of Vantage Enterprises,Wayne Moore,has requested deferment of rent payment until September 30,2002; and, WHEREAS,the provisions of the ground lease provide that upon an event of default,the Landlord(City) may give notice of the default and that the lease will terminate, and upon termination, the Tenant (Vantage Enterprises)shall surrender the land leased and the improvements thereon to the Landlord. WHEREAS,because of the unexpected problems with the VisionAire Corporation,Vantage Enterprises has not been able to realize the rent stream that was anticipated in 1997 when the ground lease was executed;and, WHEREAS, the City has a responsibility to the airport users, the citizens, and the FAA to pursue rent payments in accordance with the signed Lease. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that Vantage Enterprises,LLC,be declared in default and the Mayor be directed to formally notify them that the City will pursue the remedies stipulated in the Ground Lease if payment is not made by October 1,2002. ADOPTED THIS 27"'day of August,2002. �?lid ..... Diane R.Voss,City Clerk Ted Tedesco,Mayor Introduced by: Quirmbach Seconded by: Goodhue Voting aye: Goodhue,Hoffinan, Quirmbach,Vegge,Wirth Voting nay: None Abstaining: Cross Resolution declared adopted and signed by the Mayor this 27"'of August,2002.