ACTION REQUESTED:
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Communication from the City Manager and Corporation Counsel with a Recommendation to WAIVE the City's RIGHT OF FIRST REFUSAL to Acquire the SPIRIT OF PEORIA, Due to the Lack of Financial and Business Information Concerning the Proposed Purchaser.
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BACKGROUND:
March 9, 2022 Update: Staff inquired of Mr. Grieves about obtaining an appraisal and the maintenance logs of the Spirit. In his text message response he stated "The offer to the City was condition free, Buyer has accepted the vessel in its, "as is, where is" condition. Allowing the City to perform any survey or appraisal would violate my agreement with Yacht Starship."
City staff still lacks any financial basis to determine if the $1 million purchase contract from Yacht Starship is "bonafide offer." Without additional information or the ability to appraise the boat, the city staff cannot recommend purchase of the Spirit of Peoria.
On or about July 12, 1996, the City entered into a Riverboat Landing Redevelopment Agreement with G&G Packet Company. Article XXI of the Agreement states:
If Tenant desires to sell the Spirit and/or Katie Hooper or successor vessels approved by the City (the "Vessels") in accordance with a bona fide offer made to or by a third party ("Third Party Offer") and Tenant wishes to sell such Vessel(s) pursuant to such Third Party offer, Tenant shall first offer the Vessel(s) to Landlord on the same terms and conditions as the Third Party Offer. The terms and conditions of any Third Party offer shall be set forth in writing, and a copy of such Third Party offer shall promptly be provided by Tenant to Landlord, together with reasonable financial and business information concerning the proposed purchaser(s). Landlord shall then have ninety (90) days from the date it receives a copy of the Third Party offer (the "Right of First Refusal Exercise Period") in which to advise Tenant in writing whether it elects to purchase the Vessel (s) on the terms and c...
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