MINUTES

CITY OF JEFFERSON COMMON COUNCIL

SPECIAL MEETING

THURSDAY, FEBRUARY 12, 1998

 

The Thursday, February 12, 1998, special meeting of the City of Jefferson Common Council was called to order at 5:00 p.m. by President Oppermann. Members present: Ald. Wendorf, Ald. Carnes, Ald. Polk, Ald. Oppermann and Ald. Beyer. Ald. Wagner, Ald. Hetzel, and Mayor Brawders were absent. Also present was City Administrator Schornack, City Attorney Scheibel, and Administrative Assistant Sellnow.

authorizing subordination of city's lien under collateral assignment of purchaser's interest in the land contract and mortgage from foremost buildings, inc.

Ald. Polk introduced Resolution No. 169.

CITY OF JEFFERSON
RESOLUTION nO. 169

BE IT RESOLVED by the Common Council of the City of Jefferson that the City hereby subordinates its lien under a Collateral Assignment of Purchaser's Interest in the Land Contract from Foremost Buildings, Inc in the amount of $170,000 recorded May 1, 1997, in the Office of the Register of Deeds of Jefferson County, Wisconsin, in Vol. 988, Page 432, Document No. 972357 on the property described on attached Exhibit A, commonly known as 138 W. Candice St., Jefferson, WI, to an Assignment of Vendee's Interest in a Land Contract on the same property from Foremost Buildings, Inc. to Wisconsin Business Development Finance Corporation in the amount of $285,000 recorded January 22, 1998, in the Office of the Register of Deeds of Jefferson County, Wisconsin, in Vol. 1021, Pages 786-788, Document No. 986289, and re-recorded on February 4, 1998, as Document No. 987011; said Assignment being subsequently assigned to the U.S. Small Business Administration as Document No. 986290, which Document was also re-recorded on February 4, 1998, as Document No. 987012. And,

BE IT FURTHER RESOLVED that the City Administrator is hereby authorized to sign a subordination form whereby the City of Jefferson subordinates its lien under a Mortgage from Foremost Buildings, Inc. in the amount of $170,000, dated May 1, 1997, and recorded May 1, 1997, in the Office of the Register of Deeds of Jefferson County, Wisconsin, in Vol. 988, Page 429, as Document No. 972356, on the property described on attached Exhibit A, commonly known as 138 W. Candice St., Jefferson, WI, to an Assignment of Vendee's Interest in a Land Contract on the same property from Foremost Buildings, Inc. to Wisconsin Business Development Finance Corporation in the amount of $285,000 recorded January 22, 1998, in the Office of the Register of Deeds of Jefferson County, Wisconsin, in Vol. 102 1, Pages 786-788, as Document No. 986289, and re-recorded on February 4, 1998, as Document No. 987011; said Assignment being subsequently assigned to the U.S. Small Business Administration as Document No. 986290, which Document was also re-recorded on February 4, 1998 as Document No. 987012.

Ald. Polk, seconded by Ald. Wendorf moved to approve Resolution No. 169.

Jim Van Lieshout of the Jefferson County Bank was present to explain this resolution.

Foremost Buildings, Inc. requested this special meeting of the Council. Staff was contacted by Foremost and Jefferson County Bank stating that this resolution was needed and they could not wait until February 24, the night of the next regular Council meeting. This resolution needs to be in the hands of the Small Business Administration by tomorrow morning at 8:00 a.m. or Foremost Buildings will miss the window to receive the moneys applied for.

On January 6, 1998, the Common Council authorized the subordination of its lien as to machinery, equipment, furniture and fixtures of Foremost Buildings, Inc. to the Wisconsin Business Development Finance Corporation and assigned to the U.S. Small Business Administration.

Foremost Buildings, Inc., is now requesting that the City also subordinate its lien under the collateral assignment of purchaser's interest in the land contract and mortgage. It was brought to our attention at the time that Foremost Buildings, Inc. applied for our revolving loan moneys that they may seek a SBA loan. It is a requirement of SBA that the Bank and City come in behind SBA as far as priority on liens.

The funding received by the SBA will be used to pay down 40% of the loan that Foremost Buildings has with Jefferson County Bank.

Roll was then called on Resolution No. 169. On call of the roll, the motion carried unanimously.

Ald. Beyer, seconded by Ald. Carnes moved to adjourn the special meeting of the Jefferson Common Council. The motion carried unanimously.