TITLE
The Mayor and City Council shall discuss and take action to approve the First Amendment to Promissory Note with BEA 1031 Exchange, LLC as Qualified Intermediary FBO James A. Smith and Diana D. Smith, as Co-Trustees of The JD Smith Living Trust dated June 5, 2013 in the amount of $4,358,769.06 and authorize City Manager Ben Bitter to execute the amendment. Discussion and Action.
AGENDA ITEM DESCRIPTION
On November 4, 2024, City Council approved the purchase of approximately 193.9 acres of real property generally located at the northwest corner of W. Steen Road and N. White and Parker Road from the JD Smith Living Trust dated June 5, 2013 and the Matthew and Elena Smith Family Trust dated July 12, 2012. The purchase price for this property is $16,948,000.00. Pursuant to the purchase agreement, the City entered into two promissory notes for the payment of the land, both of which were due and payable on or before November 30, 2025. James and Diana Smith have requested an earlier payment pursuant to their promissory note in exchange for a reduction in the interest rate. This amendment reduces the interest rate from 4.0% to 1.0% and moves the due date up to April 1, 2025. This action should result in a savings of about $45,000 to the City of Maricopa.
PRESENTER
This item will be presented by Matt Kozlowski, Deputy City Manager/Chief Financial Officer.
STAFF RECOMMENDATION
Staff recommends the approval of the First Amendment to Promissory Note.