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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. T...
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