HomeMy WebLinkAbout~Master - Release of Restrictive Covenant for 11 5South Sheldon Avenue RESOLUTION NO. 04-050
RESOLUTION APPROVING RELEASE OF
RESTRICTIVE COVENANT PERTAINING TO
PROPERTY LOCALLY KNOWN AS
115 SOUTH SHELDON AVENUE
FOR THE CITY OF AMES
WHEREAS,the City has received a request to release the 1980 restrictive covenant limiting
the use of the premises at 115 South Sheldon Avenue to a childcare center; and,
WHEREAS,that covenant was part of security arrangements with respect to a loan of funds
by the City to the childcare provider; and,
WHEREAS, those arrangements were subordinated to the first lien of a private lender to
facilitate restructuring of the childcare provider's debt load by City Council Resolution 93-023 and
the Subordination Agreement filed at Book 345,Page 71, as Instrument No. 09514 in the Office of
the Story County Recorder on February 10, 1993; and,
WHEREAS, a similar covenant signed by the childcare provider in 1995 is subordinate in
time to the first lien mortgage that was foreclosed; and,
WHEREAS, it does not appear that there is a viable restrict covenant, and for that reason,
the City Attorney, recommends that the form of release provided by the requestor be approved.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the request for the release of the restrictive covenant pertaining to property locally known as 115
South Sheldon is hereby approved.
ADOPTED THIS 24th day of February, 2004.
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Goodhue
Seconded by: Wirth
Voting aye: Cross, Goodhue, Goodman, Mahayni, Vegge, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 24'day of February, 2004.