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214j <br />Special Council Meeting <br />12/7/92 <br />Page Two <br />Mr. Basile said he feels the same way. Why should we pay real estate taxes if he is living rent free <br />for 6-7 months; he thinks that should be enough. <br />Mr. Fixler said he lrnows the Mayor has a date he wants this to transfer by, but his question is to <br />offset these expenses if you were to purchase it but delay transfer of his property for 2 or 3 months <br />would he go along with it to avoid the first half taxes or is it out of the question. <br />Mayor Pietrafese said it is; he has a second mortgage on the property and that is what he is trying <br />to eliminate, (actually the second mortgage is for the $140,000.) <br />Mr. Rinker said to summarize for the members of the audience, this has been an item we have <br />discussed over the past number of months. Characteristically, we have had executive sessions <br />because it concerns acquisition of property (this is one of those areas State statutes afford us an <br />opportunity to discuss behind closed doors with the idea of getting a lower price.) Mr. Rinker said <br />he can't recall when negotiarions began, but we finally got to a point where this $140,000 figure <br />seemed to turn the trick. His own personal feeling on this, as often happens with certain deals, <br />you get to a point where parties are close to coming together and then there are always one or two <br />other items that can be setbacks to the entire transaction. We had discussed this recendy; he does <br />not think any one of us is particulazly pleased to start up front and say they are going to allow <br />somebody to go rent free, and let them avoid taxes (however taxes are always postdated and you <br />pay after the fact.) There is no question about those items, but we got down to a point and we <br />discussed whether or not this was going to stop matters at this stage, or if we would let this go by <br />in the interest of making the transaction. We feel this is a piece of property that is very important; <br />we have been trying to acquire properties we felt would be useful down the road for the Village for <br />possible expansion of certain facilities. Mr. Rinker said his personal feeling is this was an idea, <br />we are ready to go, there are a couple of expenses and he is not crazy about it, but in order to <br />secure this and get this behind us, we are going to go ahead with it. (He thought it was the <br />consensus to go ahead with it.) <br />Mayor Pietrafese said one last item. This property really is very important, very critical, because it <br />is the largest of the three parcels that are there and it will set a precedence for us, hopefully, in the <br />future if we should decide to do anything with the other two parcels that are there. At $140,000 or <br />$142,000 including taxes and closing costs, actually we are saving money. I remember when we <br />anticipated if we decided to take those three properties we were considering an over $200,000 per <br />property figure. So, actually, we are saving ourselves over $150,000 if we decide to proceed in <br />that direction. <br />Mr. Rinker said ultimately you try to turn the deal if you feel it is worth paying the price for it. <br />Mr. Basile said we aze paying personal taxes we shouldn't pay. <br />? <br />L <br /> <br />Mr. Rinker said he is not disputing that; you get to a point where either you do or you don't <br />because you feel it is worth the benefit of the bargain. <br />ROLL CALL: AYES: All <br />NAYS: None <br />Morion Carried <br />Ordinance Enacted <br />