5343 - 78 Penn Central RR delinquent taxes

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RESOLUTliON NO. 5343 :BY: Chinnock, Magnotto, McBride, Salmon, Wendling, Brockman, Brown A RESOLUTION authorizing and directing the County Treasurer to exchange notes issued by Penn Central Railroad in partial payment of delinquent taxes for tax years 1969 to 1976 inclusive for new notes to be made Payable to the City of Lakewood and turned over to the City of Lakewood to be applied to the payment of delinquent taxes owed. WHEREAS, the Federal District Court for the Eastern District of Pehnsylvania has approved the Reorganization Plan of the. Trustees of the Penn Central Transportation Company and granted the Trustees permission to implement the Reorganization Plan, and WHEREAS, the date for the implementation of the Reorganization Plan has been set by the Court as October 25,t978, and WHEREAS, the Cuyahoga County Treasurer did execute a release on October 1978, specifying the total amount of the settlement of the Penn Central delinquent tax claim owed to the City of Lakewood and what amount of the settlement is to be paid with cash and what amount is to be paid with notes (securities), and has delivered said release to the Trustees of the Penn Central Transportation Company, and WHEREAS, Revised Code 323.32 as enacted by Am. Sub. H.B. 994 of the ll2th General Assembly enables the City of Lakewood to have any notes issued to the Treasurer of Cuyahoga County, in partial settlement of its claim, be ex- changed for several new notes in denominations equal to the proportionate share of the claim of the City of Lakewood and also enables the City of Lakewood to borrow money and issue its note in anticipation of the revenue payable on maturity of the railroad note and pledge the railroad notes or the proceeds.thereof, or sell such a railroad note at a public or private offering; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LAKEWOOD, STATE OF OHIO: Section 1. That the Treasurer of Cuyahoga County is instructed to cause any railroad notes in his possession to be exchanged for severa'l new notes in denominations equal to the proportionate share of the claim of the City of Lakewood as determined by the County Auditor pursuant to Am. Sub. H.B. 994 and the provisions of the Plan of Reorganization, and to deliver said new notes into the possession of the Treasurer of the City of Lakewood upon receipt of said new notes; SectiOn 3. That a copy of this resolution be immediately certified to the County Treasurer and the Cbunty Auditor. Section 4. That this resotuti:on shall take effect and be in force immediately provided it receives 'the affirmative vote of two-thirds of all members elected to I~ouncil, and is approved by the Mayor.