HomeMy WebLinkAboutRES 12-045 RESOLUTION NO. 12-045
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT that the City is authorized to purchase and acquire ownership of the land, building,
furnishings and fixtures commonly referred to as Hotel Beaumont, located at 625 Orleans,
Beaumont, Texas, which acquisition may be accomplished in such manner as the City
Manager and the City Attorney determine to be in the best interest of the City, and the
City is authorized in connection with such acquisition to work with Capital One N.A. (the
"Bank" or "Capital One") (any any successor to the Bank and the holder of the Bank's first
lien note) and the owner of Hotel Beaumont, 625 Orleans Limited Partnership (the
"Owner"), to determine the most cost effective manner for this acquisition, and without
limiting the foregoing, the City is authorized to accomplish the acquisition of Hotel
Beaumont under any one or more of the following options, or any combination thereof, or
under any other method determined by the City Manager and City Attorney to be in the
best interest of the City:
(1) acquiring from Capital One (or any successor to Capital One)the first lien
note that exists and is secured by the property for the entire amount owed to
the Bank under such note and then acquiring title to the property by either
foreclosing on the lien that exists on the property that secures such note or
taking a deed in lieu of foreclosure from the Owner;
(2) buying the property directly from the Owner for the amount owed to Capital
One, so that the funds are advanced to the Owner and Capital One at
closing in exchange for a deed to the property, and which funding may be
arranged as a loan by the City to the Owner in exchange for a deed to the
property; or
(3) bidding for and acquiring ownership of the property at any foreclosure sale
conducted by Capital One or any successor in interest to Capital One, and
also any foreclosure sale conducted by the City; and,
BE IT FURTHER RESOLVED THAT the City is authorized to spend such amount
of the City's funds necessary to accomplish the foregoing acquisition of the property,
which is estimated to be $827,419 to payoff the debt owed to Capital One, plus any
additional accrued interest and closing expenses; and,
BE IT FURTHER RESOLVED THAT the City is authorized, to the extent
necessary, to work with HUD and take such action as is necessary or advisable as
determined by the City Manager and City Attorney in regards to the City's outstanding
Section 108 loan to HUD; and,
BE IT FURTHER RESOLVED THAT the City is authorized, to the extent advisable,
as determined by the City Manager and City Attorney, to accelerate and demand payment
of any of the notes and debt owed by the Owner to the City and assigned to HUD and to
foreclose its liens the City and HUD hold on the property that secure such indebtedness
and to bid at any such foreclosure in such amounts as determined by the City Manager
and City Attorney; and,
BE IT FURTHER RESOLVED THAT the City Manager and City Attorney are
authorized to negotiate and enter into, and sign on behalf of the City, any such note
purchase agreements, purchase contracts, deeds, assumptions, other agreements,
closing documents, settlement statements and other documents and interests as may be
necessary or appropriate to accomplish any of the foregoing, on such terms as either of
the City Manager or City Attorney determine to be in the best interest of the City.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 28th day of
February, 2012.
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- Mayor Becky Ames -
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