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05-04-54SpMtg A Special Meeting of the City Council of the City of Delray Beach was held in the Council Chambers ak 3:00 PM with Mayor Catherine E. Strong in the Chair, City Manager W. E. Lawson, Jr., City Attorney Neil MacMillan, and the following Council members present: Glenn B. S~udy, Mrs. Alma K. Wobble, and W. Cottingham Allen, a quorum being present. Mayor Strong called the meeting to order and stated the meeting was called for the purpose of consideration of proposal regarding financing of the Golf Course, as submitted by ~arren G. Grime s. Mr. Charles Crane addressed the Council with reference to the offer made by Mr. Grimes to lend the City 4100,000.00, to be used for the tmprowement of the golf course. Mr. Crane stated that Mr. Grimes had?previously offered to lend the ~100,000.0O @ t~ee percent interest, with a pledge of the revenue from utilities tax, but that the City Council felt that they should not undertake the loan by pledging this tax. Mr. Crane stated he had talked to Mr. Grimes the night before by telephone and that he had revised his offer. Mr. Grimes really wants some- thing nice for Delray Beach, ~hether he gets his money back or not, that he warZs to commemorate his residence here. Mr. Grimes thinks the rate of three percent is fair and he is willing to take tax exempt revenue certificates in return for his investment. Ne feels that he should have some Prot$ction and proposes that he take a mortgage on the golf course property and a chattel mortgage on the equipment. Mr. Grimes feels that if no mortgage dan be granted then what he would like is a certificate to be so rendered that if principal and interest is not paid on time that the golf course would be sold. Mr. Fred McNeece asked if that were not true c~ any revenue certificates on City p. roperty or any utility on which bonds are sold. City Attorney ~acMillan stated that he believed that was tuue - that the bond holders can take over. Mr. MacMillan stated that he would like to call to the attention of the Council the fact that you cannot issue certificates on City owned property .... without a vote of the Freeholders; that you cannot mertgage City property without a vote of the Freeholders. He pointed out that the revenue from utility tax is pledged for improvements around town, but that the Council could pledge the revenue from the golf course and that they would have to pledge that the revenue was adequate to take care of the certificates issued. Mr. Crane said that Mr. Grimes had stated it would be agreeable with him for the City to make no paymant on the prin- cipal until 1959 unless the City desired to do otherwise, and that the interest should go to some charity designated by the City. Mrs. Woehle asked if our income at the golf course is not adequate to take care of what we want. Mr. McNeece stated the net income for the last six months' period was approximately $20,000. Mrs. Woehle then asked if we have to put this out for bid and give other people a chance to bid on it. Mayor Strong stated that it would have to be advertised and Mr. MacMillan stated the certificates would bare to be validated by the Circuit Courte Mr. Sundy asked if Mr. Grimes would be protected by the certificates and Mr. MacMillan replied only so far as the golf course revenue is concerned. Councilman Allen asked if we would have to have a free- holder's election and the City Attorney stated ~n~ i~t~ey o~ly pledged the golf course revenu~ ~ ".. ?. Councilman Allen stated he understood it was not necessary to pay on the principal for five years, and asked what principal and interest would amount to and over what period of time payment would be made on the principal. Mr. Crane stated that the payment would be $10,000.00 in 1959 o n through 19~8 and that the interest would be three percent. Mrs. Woehle wanted to krow about the $30,000.00 worth of certificates now outstanding and Mr. Crane stated that those would be called. Mr. MacMillan then asked if they thought they would need $100~000.00. Mr. Mc~eece stated they could use ~70,000.00 and the $30,000.00 would be used to pick up the bonds. Mr. McNeece said they figure the income at the golf course about $50,000.00 a year now, and over a period of years with proper facilities it should increase to ~100,000.00. He stated the reason for the offer to defer the payment on the principal was so they could have a build-up period. Mayor Strong asked Mr. Whitley if he would like to express his views. Mr. Whitley stated that as he understood it - we have a man who wants to tur~ over $100,000.00 to the City on very reasonable terms and he feels that the City should give very serious consideration to the proposition. The expectancy is that in future years the golf course will be able to carry this obligation. Mr. Garner was then asked for his views and stated that it seemed to him that sc~e ma~ think there is something behind the proposition but that he felt sure there was not since it is Mr. Grimes. He stated that we would be neglecting the town if we did not take advantage of the offer. Mayor Strong stated they would like to get it started and to have a nice, new Club House. Mr. Garner said he ~uld like to point out that the golf course should be managed by the Golf Committee, and that he thought an effort should be made to keep a good Golf Committee. Councilman Sundy moved that Mr. Grimes be informed that the Council is acceptable in principal to hiS offer of lending ~100,000 to the City in return for revenue certificates pledging ~evenue of the golf course, The certificates are to be due and payable as would be agreeable for parties concerned, and necessary legal p~ocedttres be instituted to accomplish the above. The motion was seconded by Councilman Allen and unanimously carried. Mrs. ~oehle made a motion that the Mayor be authorized to contact Mr. Grimes by telephone and by letter, to advise him of the action taken by the Council and to thank him. Councilman Sundy seconded the motion which carried unanimously. The meeting then adjourned. APP ROVED: AT TEST: cit. Cler '