cover
TO: Mayor Robert J. O’Connor
FROM: Alayne M. Weingartz, Corporation Counsel
DATE: December 16, 2016
SUBJECT:
A Resolution Approving a Settlement Agreement with RTW Fox Valley, LLC regarding a Lease at the Fox Valley Golf Course
PURPOSE:
To resolve the pending litigation between the City and RTW Fox Valley regarding their leasehold interest at the Fox Valley Golf Course.
BACKGROUND:
RTW Fox Valley, LLC holds a leasehold interest from the City at the Fox Valley Golf Course for the operation of their catering/event business, also known under the names "Fox Valley Events of Elegance" and "Chateau On the Green". The City has ceased operation of the golf course at that location, and has previously had a buyer interested in purchasing the property for development purposes. The City and the RTW entities have been involved in litigation in order to ascertain the extent of the leasehold interest of RTW et al.
DISCUSSION:
In order to resolve all disputes between the parties, the City and RTW have agreed upon a Settlement Agreement and Mutual Release. The Settlement Agreement provides in summary that the City will pay RTW$1,400,000.00 to buy out the remaining leasehold interest of RTW, with payments of that sum occurring in three payments, the first payment of $466,666.67 due by end of December, 2016, the second equal payment due June 30, 2017 and the third payment due January 5, 2018. Should the City sell the property prior to January of 2018, we shall pay the remaining sums owed to RTW upon any such closing. The City will play interest in the amount of 2.0% beginning on January 1, 2017 on all remaining sums owed. RTW has until March 31, 2017 to remove all of its equipment and fixtures from the banquet facility on the property, and it's leasehold interest will be relinquished in total on March 31, 2017. The Parties release each other from any liability.
IMPACT STATEMENT:
This agreed resolution of this legal matter will not impact any City of Aurora functions. The funds to be paid to RTW will be paid out of___________________________..
RECOMMENDATIONS:
Through this Resolution, I recommend approval of the Settlement Agreement
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Approving a Settlement Agreement with RTW Fox Valley, LLC regarding a Lease at the Fox Valley Golf Course
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora and RTW Fox Valley, LLC are involved in litigation in the Circuit Court of Kane County, Illinois, regarding the leasehold interest of RTW at the Fox Valley Golf Course property owned by the City; and
WHEREAS, the Parties have agreed upon a Settlement Agreement which resolves all pending legal matters between them, as set forth in the Settlement Agreement and Mutual Release, a copy of which is attached hereto and incorporated herein by reference; and
WHEREAS, the City Council of the City of Aurora finds it desirable and in the best interests of the City to amicably settle this litigation as provided in said Settlement Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Settlement Agreement and Mutual Release by and between the City of Aurora and RTW Fox Valley, LLC as attached hereto and incorporated herein by reference is hereby approved.