HomeMy Public PortalAbout050-2010 - Disposal of Surplus PropertyORDINANCE NO. 50-2010
AN ORDINANCE AUTHORIZING AND APPROVING THE
DISPOSAL OF SURPLUS MUNICIPAL UTILITY PROPERTY
TO A QUALIFIED NONPROFIT CORPORATION
WHEREAS, the City of Richmond ("City"), and the Economic Development Corporation
of Wayne County, Indiana ("EDC") have negotiated certain economic development incentives
with Perpetual Recycling Solutions, LLC ("Company"), which include the disposal of certain
real property ("Property") owned by Richmond Power and Light ("Electric Utility");
WHEREAS, Electric Utility is the owner of the Property, which Property is legally
described in Exhibit "A", attached hereto and incorporated herein by reference as Exhibit "A";
and
WHEREAS, Electric Utility took title to the Property as Richmond Power & Light, a
municipal power authority with its headquarters in the State of Indiana; and
WHEREAS, Electric Utility has or will be taking action to effectuate transferring
ownership of Property by deed to City; and
WHEREAS, the Common Council of the City is the governing body of the Electric
Utility; and
WHEREAS, in order to dispose of the Property, the Common Council must find that the
Property is surplus to the Electric Utility and is therefore, not governed by IC 8-1.5-2-4; and
WHEREAS, the Common Council must also find that the Property falls within the
exception under the City's existing Electric Utility bond ordinances ("Outstanding Ordinances"),
which provide in part:
... So long as the BANS and the bonds herein authorized are outstanding, the City
shall not mortgage, pledge or otherwise encumber such utility or any part thereof,
nor shall it sell, lease or otherwise dispose of any portion thereof except
equipment or property which may become worn out, obsolete or no longer
suitable for use in the electric utility; and
WHEREAS, in order to accomplish a portion of the economic development incentives, it
is necessary for the City to sell the Property to the EDC; and
WHEREAS, IC 36-1-11-1(b)(7) provides an exemption from the provisions of IC 36-1-
11 for the sale or lease of real property by a unit to an Indiana nonprofit corporation organized
for educational, literary, scientific, religious, or charitable purposes that is exempt from federal
income taxation under Section 501 of the Internal Revenue Code; and
WHEREAS, the EDC has indicated it satisfies the requirements of IC 36-1-11-1(b)(7),
and therefore, the disposal of the Property to the EDC is not governed by any statute; and
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WHEREAS, IC 36-1-3-6 provides that if there is no statutory provision requiring a
specific manner for exercising a power, and the City desires to exercise that power, it must adopt
an ordinance prescribing a specific manner for exercising the power.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, THAT:
Section 1. The Common Council finds and determines that, upon receiving
ownership of Property from Electric Utility:
(a) The Property is surplus to the Electric Utility and is therefore, not
governed by IC 8-1.5-2-4;
(b) The Property falls within the exception under the City's existing Electric
Utility bond ordinances; and
(c) Based upon information provided by the EDC, the EDC is an Indiana
nonprofit corporation organized for educational, literary, scientific, religious, or charitable
purposes that is exempt from federal income taxation under Section 501 of the Internal Revenue
Code.
Section 2. Upon receiving ownership of Property, the Common Council hereby
approves the sale and conveyance of the Property to the EDC, for the sum of $1.00 and other
valuable consideration.
Section 3. The adoption of this ordinance constitutes the specific manner for
exercising its home rule power in accordance with IC 36-1-3-6.
Section 4. This ordinance shall be in full force and effect from and after its passage
and approval by the Mayor.
APPROVED AND ADOPTED this _15th _ day of November, 2010 by the Common
Council of the City of Richmond, Indiana.
_S/S J. Clams President
J. Clayton Miller
Attest:_S/S Karen Chasteen City Clerk
Karen Chasteen
Presented to the Mayor of the City of Richmond, Indiana, this _16th day of November, 2010 at _9:00
A.M.
S/S Karen Chasteen City Clerk
Karen Chasteen
Approved by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _16th day of
November, 2010 at 9:30 A.M.
_S/S Sarah L. Hutton Mayor
Sarah L. Hutton
Attest:_S/S Karen Chasteen City Clerk
Karen Chasteen