Res 1140 - Disp Grace Village P
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COUNCIL BILL NO. 1416
RESOLUTION NO. 1140
A RESOLUTION AUTHORIZING AN AGREEMENT WITH THE STATE OF OREGON
REGARDING DISPOSITION OF THE "GRACE VILLAGE" PROPERTY.
WHEREAS, the City was directed by a letter dated June 19, 1992 from the
Economic Development Department of the State of Oregon to transfer the Grace
Village property to Marion County, and
WHEREAS, the State of Oregon has the legal authority to direct the transfer
of the property, and
WHEREAS, the City, over a seven year period, has endeavored to cooperate
with the State in resolving the Grace Village issue, while at the same time protecting
the interests of the City taxpayer, and
WHEREAS, it has been the highest priority of the City to recover City tax
money spent in the Grace Village project and litigation, and
WHEREAS, the proposed agreement with the State of Oregon allows tax
money to be recovered, NOW, THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. The Mayor is authorized to execute, on behalf of the City, the
agreement with the State of Oregon regarding disposition of the "Grace Village"
property, a copy of which is attached and, by this reference, incorporated herein.
Section 2. That the Mayor and City Administrator are authorized to execute,
on behalf of the City, any related documents necessary to implement said agreement.
Approved as to form':'n~ ~ 0
City Attorney
APPROVEO'-l!J!-" LU ~&J2YL-
FR W. KYSER, M OR
Page 1 -
COUNCIL BILL NO. 1416
RESOLUTION NO. 1140
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Passed by the Council AUGust 27. 1992
Submitted to the Mayor August 28, 1992
Approved by the Mayor August 28, 1992
Filed in the Office of the Recorder AUGust 28. 1992
ATTEST: j7~~~
Mary Ten nt, City Recorder
City of Woodburn, Oregon
Page 2 -
COUNCIL BILL NO. 1416
RESOLUTION NO. 1140
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AGREEMENT
"state" -
STATE OF OREGON, by and through its Economic
Development Department,
CITY OF WOODBURN
August _' 1992
"City" -
Date
of 1974,
grants.
RECITALS:
1. Title I of the Housing and Community Development Act
Public Law 93-383, as amended, provides for certain
2. Pursuant thereto, the state and City entered into
Grant Agreement #85-316-ED on July 26, 1985.
3. Pursuant to the Grant Agreement, the state delivered
$252,297 to the City which, in turn, loaned $245,000 thereof to
Grace Village Associates to purchase certain property within the
City (the "Property").
4. Construction began on the project, but Grace Village
Associates ran out of money and did not pay its general contractor,
Woodburn Construction Co..
5. Woodburn Construction Co. stopped work, filed a
foreclosure lawsuit in the Marion County circuit Court, and claimed
the City's mortgage was behind the construction lien of Woodburn
Construction Co.
6. The Circuit Court held that the City's mortgage lien
Page 1 - AGREEMENT August 27, 1992 - 5:02pm
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was senior to the construction liens, and the court foreclosed the
mortgage.
7 . The Marion County Sheriff sold the Property at a
foreclosure sale to the City.
8. No one redeemed within the statutory redemption
period, and the City obtained a sheriff's deed to the Property.
9. The State provided instructions to the City to deed
the Property to Marion County.
10. The city has received several payments from Grace
Village Associates on the loan, rents from the Property, and
interest thereon. After deducting certain costs attributable
directly to the Property, the amount remaining from those receipts
is, as of August 17, 1992, $6,661.38 in the hands of the City and
$11,964.19 in the trust account of a property management company.
11. The city has incurred other costs, eligible under
the Grant Agreement, of not less than $104,421,81 in hiring counsel
to defend the litigation and foreclose the mortgage and ultimately
acquire the Property through the sheriff's foreclosure sale, paying
delinquent property taxes, and for appraisers, title searches,
repairs, and management of the Property and administration of the
Grant Agreement,.
Now, therefore, the State and City hereby agree as
follows:
A G R E E MEN T
12. Pursuant to the State's directions, the City will
deed the Property by statutory bargain and sale deed to Marion
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County for a housing project to be constructed by the Farmworker
Housing Development Corporation, which shall meet a national
objective under the Housing and Community Development Act.
13. The state will deliver or cause to be delivered to
the City $60,307.72 plus up to $4,250 for the City's remaining
legal costs in the matter.
14. The city will deliver to the state or its written
designee:
a. the $6,661.38 (plus any amounts delivered to the
City by the property management company after August 17, 1992 but
prior to closing hereOf) and
b. an assignment of the City's rights in and to the
$11,964.19 (plus any additional amounts collected into that trust
account between August 17, 1992 and the closing hereof).
15. The exchange of deed for the funds will be outside
escrow.
16. The State agrees and acknowledges that by delivery
of the deed to Marion County the City:
a. will have cured any possible default by the
City, if any there may be (and which the City denies), under the
Grant Agreement;
b. will have no further liabilities or obligations
to the state under the Grant Agreement; and
c. will be eligible, to the extent of any other
pUblic body, for future Community Development Block Grants, Special
Public Works Fund and Strategic Reserve Fund grants and any other
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similar programs administered by the state.
IN WITNESS WHEREOF, the State and City have executed this
Agreement, in duplicate, by their duly-~uthorized officers as of
the date first hereinabove written.
STATE OF OREGON, by and
through its Economic
Development Department
CITY OF WOODBURN
By
Name:
Title:
By
Name:
Title:
Approved as to form:
Approved as to form:
By
Name:
Assistant Attorney General
N. Robert Shields
Woodburn City Attorney
ASSENT
Marion County and Farmworker Housing Development
Corporation hereby assent to the foregoing.
MARION COUNTY
FARMWORKER HOUSING DEVELOPMENT
CORPORATION
By
Title
By
Title
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