97-5191 Transfer Fox TheatreConeWbalM-Salina
RESOLUTION NUMBER 97-5191
A RESOLUTION AUTHORIZING THE GRANT AND TRANSFER
OF CERTAIN REAL PROPERTY AND A GRANT OF FUNDS TO THE
HISTORIC FOX THEATER OF SALINA FOUNDATION.
WHEREAS, the City of Salina has owned the Fox -Watson Theater
(including the Fox Theater storefronts) located on the northeast corner of the intersection
of Santa Fe Avenue and Walnut Street in downtown Salina (the "Theater") since March
1.989 when it was donated to the City by Dickinson Theaters, Inc., subject only to the
condition that it not be used for first -run motion picture presentations for twenty years;
and
WHEREAS, a group of Salina citizens formed in 1996 for the purpose of
identifying options related to the future use of the Theater have incorporated a 501(c)(3)
qualified Kansas not-for-profit corporation known as the Historic Fox Theater of Salina
Foundation (the "Foundation") for the purposes of owning, redeveloping, and preserving
the Theater; and
WHEREAS, on December 2, 1996, the governing body adopted
Resolution Number 96-5089 (the "Resolution of Intent") expressing its intent to make
a grant of the Theater to the Foundation on the basis of certain public benefit policy
determinations; and
WHEREAS, the governing body wishes to authorize the conveyance of
the Theater to the Foundation upon the terms stated in this resolution; SO NOW
THEREFORE
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
Section 1. Transfer of Title. The mayor is authorized to execute a
special warranty deed conveying title to the Theater from the City to the Foundation (the
"Deed"), at no financial cost to the Foundation, subject to the following deed covenants:
A. That the current deed covenant prohibiting the use of the
Theater fon- first -run motion picture presentations for twenty years
from March 1989 to March 2009 (the "Covenant Term") shall
apply to the Foundation.
B. That for the balance of the Covenant Term, any plans for
development, sale, or lease of the Theater shall be subject to the
prior written consent of the governing body, to either be granted or
denied at the sole discretion of the governing body on the basis of
its evaluation of the proposed action in relation to the public
benefit policy determinations set forth in the Resolution of Intent.
Section 2. Grant of Funds. The City Manager is authorized to make
a grant to the Foundation at the time of the transfer of title to the Theater from the City
to the Foundation:
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A. In the sum of $15,000 from the 1997 Transient Guest Tax
receipts previously programmed for transfer to the Bicentennial
Center Fund; and
B. Of all remaining funds (approximately $6,500) held by
Salina Downtown, Inc. ("SDP') in the reserve account established
pursuant to the Property Management Agreement between the City
and SDI dated April 17, 1997, (the "Property Management
Agreement") for maintenance, lease deposits, and management
services related to the Fox Theater storefronts.
Section 3. Assignment of Leases. The City Manager is authorized to
execute an Assignment of Leases to the Foundation assigning the current leases for the
Fox Theater storefronts including:
Address
Tenant
Date
Term
153 S. Santa Fe
Warren Ediger, Architect
5/1/97
24 mon.
155 S. Santa Fe
Jacqueline Brown, d/b/a Allusions 10/23/97
24 mon.
157 S. Santa Fe
Wes Dewitt, d/b/a Day of the Lady
5/1/97
24 mon.
Section 4.
Termination of Property Management Agreement.
The
City Manager is authorized to terminate the Property Management Agreement (a) on the
basis of a mutual waiver with SDI of the sixty (60) day notice requirement, and (b) in
anticipation of a comparable substitute agreement between the Foundation and SDI.
Section 5. Execution of Related Documents. The City Manager is
authorized to execute on behalf of the City any other documents necessary to carry out
the grant of the Theater and the financial assistance authorized by this resolution.
Section 6. Delivery of Transfer Documents. The City Attorney is
authorized and directed to deliver the Deed, Assignment of Leases, and any other
documents of transfer necessary to complete the grant of the Theater to the Foundation
at such time as the Foundation can establish that it is recognized by the State of Kansas
and the United States Internal Revenue Service as a valid 501(c)(3) qualified Kansas
non -for-profit corporation, in good standing.
Section 7. Effective Date. That this resolution shall be in full force and
effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 18`h
day of August, 1997.
(SEAL)
ATTEST: nn
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u y . Lon , CMC, Cityerk
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�tstin M. Sea n, Mayor