CITY COMMISSION AGENDA ITEM

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Department:

City Attorney’s Office

Commission Meeting Date:  October 3, 2017

Staff Contact:

Toni R. Wheeler, City Attorney

Recommendations/Options/Action Requested:

 

Authorize Mayor to execute a settlement agreement with Riverfront, L.L.C. related to rent and parking maintenance payments under the Amended and Restated Ground Lease, as amended, for real property commonly known as 1 Riverfront Plaza in Lawrence, if appropriate. 

 

Executive Summary:

In April 2017, the City Manager advised the City Commission that the Finance Director had reported an issue with the City’s accounts receivables.  After Riverfront requested a review of the agreements and billings concerning its ground lease for the real property commonly known as 1 Riverfront Plaza, the Finance Department reviewed its records and concluded it had not billed Riverfront for rent and garage maintenance payments for quite some time.    

 

Riverfront has agreed to pay the full amount due the City including sums that, if litigated, would be uncollectible by the City because of the five-year statute of limitations on contracts.  The Settlement Agreement provides that Riverfront will pay to the City the sum of $256,096.00 as follows:

 

  • The City will immediately credit the $20,000.00 paid to the City by Riverfront in June 2017 against that sum;
  • Riverfront will deliver $180,000.00 to the City within seven days of the full execution of the Settlement Agreement; and
  • The remaining balance of $56,096.00, which is outside the statute of limitations, shall be paid in equal installments of $2,337.33 per month, commencing January 2018 with the final installment payment due in December 2019.

 

Staff believes the resolution of the matter, as proposed in the Settlement Agreement with Riverfront, is fair and appropriate.  We appreciate the cooperation of the Simons family, as well as its attorneys, especially Mr. Webster Golden, in reaching a resolution to the matter.

 

Strategic Plan Critical Success Factor

Effective Governance/Professional Administration

Sound Fiscal Stewardship

Collaborative Solutions

Fiscal Impact (Amount/Source):

The fiscal impact to the City is a payment to the City of $256,096 over 26 months.  

Attachments:

Settlement Agreement

 

 

Reviewed By:

(for CMO use only)

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