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HomeMy WebLinkAboutResolution #2026RESOLIITION NO. 202E A RESOLOTION DECLARING DEFAOLT IN INTERNATIONAL PLASTICS RECYCLING, INC., AND IN DECONTAMINATION SYSTEMS, INC., ACCELERATING ALL NOTES GIVEN BY INTERNATIONAL PLASTICS RECYCLING, INC. AND BY DECONTAMINATION SYSTEMS, INC. TO THE CITY OF CANTON, AND DIRECTING THE CITY ATTORNEY TO TARE LEGAL ACTION TO PROTECT THE CITY. WHEREAS, the City of Canton has previously made three loans to International Plastics Recycling, Inc., formerally known as Decontamination Systems, Inc., hereinafter sometimes referred to as "IPRI" or "International Plastics Recycling, Inc.", said loans and notes being itemized as: a) A $99,000.00 loan from the City of Canton to International Plastics Recycling, Inc. utilizing federal money; b) A $150,000.00 loan utilizing a grant received from the Illinois Department of Commerce and Community Affairs; c) A $10,000.00 loan utilizing DCCA rollover funds; and, WHEREAS, the City of Canton has also entered into two agreements for the sale of real estate concerning two lots in the Enterprise Industrial District to International Plastics Recycling, Inc. as set forth in Echibit A hereto; and, WHEREAS, International Plastics Recycling, Inc. has failed or refused to comply with the terms and conditions of the aforesaid notes and agreements and is now in default in the premises of all of said notes and agreements. NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of Canton, Fulton County, Illinois as follows: 1. That the Canton City Council hereby finds the foregoing recitals to be fact. 2. That the Canton City Council hereby declares all of said notes and agreements to be in default, accelerates each of said notes and agreements so that the entire amount of principal and accumulated interest thereunder is immediately due and owing from International Plastics Recycling, Inc. and from Decontaminations Systems, Inc. to the City of Canton. 3. City records indicate that principal and interest due and owing prior to default are as set forth in Exhibit B to this Resolution. The City Council hereby finds Exhibit B to be accurate and factual. 4. Accordingly, the City Attorney is hereby directed to take, or, cause to be taken, such legal steps as he deems appropriate to collect the entirety of said accelerated principal and interest in full; regain immediate possession of the real property which is the subject of the aforesaid agreements, to include possession of any real property pledged as collateral pursuant to any mortgages given pursuant to said agreements; vest title to all patents and patent applications which are the subject of a certain collateral agreement dated October 29, 1986 in the City of Canton; foreclose any mortgages given to secure the aforesaid agreements; obtain such court orders as may be necessary to prevent future shipments of "chips" from being left or stockpiled in the Industrial Park; commence such action as may be necessary to invoke personal guarantees concerning said loans and agreements; and, take such. other and further action in the premises as the interest of the City of Canton may dictate. 5. This Resolution shall be in full force and effect immediately upon its passage by the City Council of the City of Canton, Fulton County, Illinois, and approval by the Mayor thereof. PASSED by the City Council of the City of Canton, Fulton County, Illinois at a regular meeting this 16th day of March , 1988, upon a roll call vote as follows: AYES: Aldermen Chapman, 11?ay, Bohler, r2eade, Sarff, Steck. NAYS: None. ABSENT: Aldermen Zilly, Kovac ev ch. ~C.~ Mayor ATTEST: f Ci Clerk. IPRI AGREEMENTS TO PQRCHASE REAL ESTATE 1. "Agreement For Sale Of Real Estate" dated as of December 5, 1984 and approved by Resolution No. 1058, wherein the City of Canton is the "Seller" and wherein Decontamination Systems, Inc., an Illinois corporation, is the "Buyer". Real estate which is the subject of said agreement is legally described as follows, to-wit: Lot Number Twenty-three (23) of the Enterprise Industrial District pursuant to the Subdivision Plat thereof filed in the Fulton County (Illinois) Recorder's Office on October 26, 1984, as Instrument Number 84-8960, subject to all easements of record, and, further, subject to all restrictive covenants and/or land use controls which Seller, or, Seller's successors and assigns may place on said Lot #23, all being situated in the City of Canton, County of Fulton and State of Illinois. 2. "Agreement For Sale Of Real Estate" dated as of May 21, 1985 and approved by Resolution No. 1079, wherein the City of Canton is the "Seller" and wherein International Plastics Recycling, Inc., an Illinois corporation, is the "Buyer". Real estate which is the subject of said agreement is legally described as follows, to-wit: Lot Number Twenty-two (22) of the Enterprise Industrial District pursuant to the Subdivision Plat thereof filed in the Fulton County (Illinois) Recorder's Office on October 26, 1984, as Instrument Number 84-8960, subject to all easements of record and, further, subject to all restrictive covenants and/or land use controls which Seller, or, Seller's successors and assigns may place on said Slot #22, all being situated in the City of Canton, County of Fulton and State of Illinois. EXHIBIT "A" to Resolution No. 2026 - IPRI PRE-DEFAULT ARREARAGES 1. CRAP $150,000.00 Loan @ 5$ interest: As of 02/01/88, principal and interest due is: $ 48,526.28 2. HHS/OCS $99,999.00 Loan @ 9~ interest: As of 12/01/87, principal and interest due is: 3. Patent Loan @ 10~ interest: As of 03/16/88, principal and interest due is: 4. Lot 22 purchase agreement: As of 12/04/87, principal and interest due is: $ 31,851.87 $ 11,380.96 $ 10,755.00 5. Lot 23 purchase agreement: As of 05/21/87, principal and interest due is: $ 12,135.00 TOTAL OF THE FOREGOING: $ 114,649.11 EXHIBIT "B" to Resolution No. 2026 CERTIFICATE STAZE (F IIZ.II~AIS, ) SS. COUNTY ~ FULTaN. ) I, Nancy Whites , City Cleric of the City of Canton, in the County . of Ptiilton and State of Illinois, do hereby oextif~i that as the City Clerk of the City of Canton, I am the keeper of records, minutes, ardintnoes and other books, records and papers of said City, and that the foregoing is a true and oarrect cony of: . RESOLUTION N0. 2025 A RESOLUTION DECLARING DEFAULT IN INTERNATIO"!AL PLASTICS RECYCLING, INC., AND IN DECONTA"~INATION SYSTEMS, INC., ACCELERATING ALL NOTES GIVEN RY INTERNATIONAL PLASTICS RECYCLI"I~, INC. AND BY DECONTAMINATION SYSTEMS, INC. TO THE CITY OF CAWTO"J, AND DIRECTING THE CITY ATTORNEY TO TARE LEGAL ACTION TO PROTECT THE CITY. adopted by the City Council of said City and appraNed by the A'~yor thereof on the 16th day of Marc h 19 88 WTII~ff.SS tay hand and the Corporate Seal of the City of Canton, Illinois this 17th day of March 19 88 . ~~~~ (SEAL),