HomeMy WebLinkAbout1310 S
RESOLUTION NO. 1310
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
TOWN OF LOS ALTOS HILLS ORDERING AND DIRECTING THE
TERMINATION OF A CONTRACT TO PURCHASE THE ADOBE
CREEK LODGE PROPERTY
RESOLVED, by the City Council of the City of the Town of Los
Altos Hills , County of Santa Clara, State of California (herein
referred to as the "TOWN") , that
WHEREAS , on December 5 , 1979 the City Council adopted Resolution
No . 1251 authorizing the TOWN to enter into and the Mayor to execute
a "Contract for Purchase and Sale of Real Property" (herein referred
to as the "CONTRACT") ; and
WHEREAS, the CONTRACT provided for the purchase by the TOWN of
the real and personal property described therein and commonly known
as Adobe Creek Lodge (herein referred to as the "PROPERTY") under
certain terms and conditions ; and
WHEREAS, the CONTRACT provided for the purchase of the PROPERTY
with proceeds from the sale of Revenue Bonds issued or guaranteed by
Buyer; and
WHEREAS, the CONTRACT further provided that the TOWN:
"may terminate this Contract , without breach, . . .
if . . . Buyer has not received sufficient proceeds
from the sale of the above-described Revenue Bonds
to pay the purchase price by September 5, 1980 . . . " ;
and
WHEREAS, in compliance with other provisions of the CONTRACT,
the TOWN caused to be formed "Adobe Creek Recreational Facilities , '
Inc . ," a non-profit public benefit corporation (herein referred to as
the "CORPORATION") , and the TOWN' entered into an Agreement with Rutan
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and Tucker to serve as Special Bond Counsel in connection with the
issuance of bonds ; and
WHEREAS , the TOWN thereafter entered into an Agreement with
Harris , Kerr, Forster and Company (herein referred to as "HARRIS")
to provide a market demand study concerning membership potential
for a country club on the PROPERTY and a financial feasibility study,
among other things ; and
WHEREAS, the City Council informed its Special Bond Counsel and
HARRIS that it desired to consider the purchase of the PROPERTY and
its subsequent leasing to the CORPORATION, which, in turn, would
organize a private membership club to operate the tennis facilities
and restaurant facility on the PROPERTY; and
WHEREAS , at its: Regular Meeting held on September 3 , 1980 , the
City Council has considered the advice furnished to it by its Special
Bond Counsel concerning the issuance of bonds , as well as the market
demand and finanCial:. feasibility studies provided to it by HARRIS,
NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND ORDERED as
follows ;
1 . There is a demand for a private recreational club and the
PROPERTY is well suited for this use with the .addition of certain
facilities .
2 . The activity level needed for the Adobe Creek Lodge to
break even in its early years is likely to be too high to coexist
with such a private recreational club and within the concepts of the
General Plan of the TOWN.
3 . The proposed use of the facilities w'uld not generate
sufficient revenues to meet operation and maintenance costs and debt
service .
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4 . The proposed leasing of the PROPERTY to the CORPORATION to
organize a private club to operate the facilities even though member-
ships were made available to all members of the public would not qualify
as an activity essentially public in nature and, therefore , would not
qualify for a tax exempt status .
5 . The proposed financing by issuance of bonds through the
CORPORATION is not feasible because they could not qualify as being
tax exempt .
6 . The marketability of such a bond issue is questionable
even if it qualified as being tax exempt .
7 . That the CONTRACT be, and it hereby is ordered terminated
upon the ground that the sale of bonds from which to obtain proceeds
to pay the purchase price cannot be held.
8 . That the City Clerk is ordered and directed to cause a copy
of the within Resolution to be mailed to David Bellucci at 26220 Moody
Road, Los Altos Hills , California.
REGULARLY passed and adopted this 3rd day of September, 1980 .
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:) :
Mayor
ATTEST :
City C erk _
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