HomeMy WebLinkAbout~Master - Release of security for sidewalk installation from Jordan Motors and acceptance of security from Lithia Motors RESOLUTION NO. 13-473
RESOLUTION RELEASING SECURITY FOR SIDEWALK INSTALLATION FROM
JORDAN MOTORS AND ACCEPTING CASH SECURITY FROM LITHIA MOTORS
FOR SIDEWALK INSTALLATION
FOR THE CITY OF AMES,IOWA
WHEREAS, in 2004, the City Council granted Jordan Motors a deferral of sidewalk
installation at 2901 Duff Avenue and 105 Kitty Hawk Drive; and,
WHEREAS, as a condition of the deferral, Jordan Motors gave the City a Letter of Credit
in the amount of$5,922 as financial security for the cost of future sidewalk installation; and,
WHEREAS, at the time, the City had future plans to improve Duff Avenue, therefore, the
installation of sidewalks was premature; and,
WHEREAS, on December 26,2012,Jordan Motors sold the property at 2901 Duff Avenue
and 105 Kitty Hawk Drive to Lithia Motors, and as part of the purchase agreement, Lithia Motors
agreed to execute a new agreement for the deferral of sidewalk installation with the City; and,
WHEREAS, additionally, Lithia Motors agreed to provide cash as its financial security in
the amount of$5,922 rather than the Letter of Credit previously provided to the City; and,
WHEREAS, on September 25, 2013, Lithia Motors provided the City with an executed
agreement for the sidewalk deferral at 2901 Duff Avenue and 105 Kitty hawk Drive; and,
WHEREAS, Lithia Motors also provided the City with a cash security in the amount of
$5,922,which will be placed in a non-interest-bearing escrow account for the cost of future sidewalk
installation; and,
WHEREAS, since Jordan Motors is no longer the owner of 2901 Duff Avenue or 105 Kitty
Hawk Drive and an alternate security has been provided by the new owner, it is appropriate for the
City Council to release the Letter of Credit in the amount of$5,922 provided by Jordan Motors;and,
WHEREAS, it is also appropriate for the Council to accept the cash security in the amount
of$5,922 and place it in a non-interest-bearing account.
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Ames, Iowa,
that releasing the security for sidewalk installation from Jordan Motors and accepting a cash security
for same from Lithia Motors is hereby approved.
ADOPTED THIS 8'day of October, 2013.
11�grLf A.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Szopinski
Voting aye: Davis, Goodman, Orazem, Szopinski, Wacha
Voting nay: None Absent: Larson
Resolution declared adopted and signed by the Mayor this 8`h day of October, 2013.