Contracts & Agreements_22-1973 - Laserfiche WebLink

Home Browse Search

lelgrs agenda use Location only Item (To be completed by person submitting) AGENDA ITEIM for Council Meeting of July 17, 1973 Date SUBJECT: Withdrawal of VFW Bid to Purchase Hall of Justice SUBMITTED BY: Name City Manager _ Address EXPLANATION: The VFW has requested, by letter dated July 14, 1973, to withdraw its bid submitted on May 29, 1973, under an official. "Invitation to Bid." The VFW bid was the only one submitted. Televents, the only other prospective bidder declined to bid, as the VFW stated at the Council meeting of May 15, 1973, that it was proposing to offer $40,000 for the property. The terms of the "Invitation to Bid" stated that a 90-day escrow will be completed by the successful bidder, otherwise the 10% deposit required by the bid will be forfeited. The city has devoted much administrative time to the VFW bid, which originated subsequent to the public announcement on April 26, 1973, that the Hall. of Justice was to be sold to Televents on a negotiated basis. A subsequent public offer to buy by the VFW at the May 15, 1973, Council meeting caused the Council to advertise for bids, and not approve the negotiated sale to Televents for $37,000 on a 15-year basis with 6% interest on the unpaid balance, as recommended by the Parking Place Commission. __._.__...._-- --Tlwiaa aZ�rTs use only) _____-----_..,,..,__..... The VFW withdrawal action has lost the sale of the property to '°ky-N-Ts: Televents, cost much administrative time, and a loss of interest earned on the money which would have been due from Televents. It is estimated that this cost and loss is as follows: Administrative cost to handle VFW offer .......... $263.32 Liquidated damages (loss of interest due from Televents over a 15-year period) .................................... $17,287.00 Total .............. $17,550.32 REC01 ENDATION: (See attached sheet)