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Agenda Memo Agenda Item: 20-42 Agenda Memo Agenda Item: 20-42 Subject: Termination of Declaration of Covenants, Conditions, and Restrictions on Corporate Parkway Branch Property Date: April 14, 2020 From: Jason Kuhl, Director & CEO I received the communication below from a real estate broker with regard to dissolving the Covenants, Conditions, and Restrictions (CCRs) in place at the Corporate Parkway Branch and the surrounding development. Upon reviewing them (attached for your reference) we recommend complying with the request to dissolve the CCRs. It is our understanding that 21 of the 22 other property owners intend to do so. The final owner has not yet been successfully contacted. To terminate the Declaration of Covenants, Conditions, and Restrictions, the attached document would need to be signed. The St. Charles City County Library District owns a property in what is known as 70 Corporate Plaza in Wentzville, MO. We are working on some new development projects in the area, and found that there are some obsolete Covenants, Conditions and Restrictions (CCR’s) that are showing up on title. We are contacting all 23 property owners in the subdivision to terminate the CCRs for the following reasons: a. Pic Investment Corp. (original developer and creator of the CCR’s in 1983) was administratively dissolved in 1985 for the failure to file an Annual Report, and no association for Seventy Corporate Plaza has ever been incorporated in the State of Missouri. b. There is currently no functioning association in Seventy Corporate Plaza, therefore, it would be impossible to obtain approval to construct new buildings with “Plan Approval Committee” approval since no such committee exists. For the above reasons, no entity has enforced the CCRs for many years (if ever), and, to the best of our knowledge, the existing buildings in the subdivision have not sought approval from, or been built in accordance with, the CCRs. Missouri case law has held that if a restrictive covenant (i.e., CCRs) has been repeatedly violated and not enforced, then it is deemed waived. The scenario that exists in 70 Corporate Plaza fits closely with the facts of the applicable case law. Unfortunately, only a court can determine if the CCRs have, in fact, been waived. Rather than going the through the courts, the easiest approach is to dissolve the CCRs so any current property owner or future property owner will not have this possible cloud on their title. The building requirements in the CCR’s are obsolete by today’s standards. The City of Wentzville’s zoning ordinances and current building codes are much more stringent. Requested Action: The Board of Trustees authorizes the Director and CEO to sign the Termination of Declaration of Covenants, Conditions, and Restrictions for the Library district property in 70 Corporate Plaza in Wentzville. ______________________________________________________________________________ [SPACE ABOVE LINE RESERVED FOR RECORDER’S USE] TERMINATION OF DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ON A SPECIFIED PARCEL OF SEVENTY CORPORATE PLAZA COME NOW THE UNDERSIGNED, being all of the Lot Holders within the tract of land in the City of Wentzville, St. Charles County, Missouri, described on Exhibit A attached hereto and incorporated herein by reference, and effective upon the date of recording this Termination of Declaration of Covenants, Conditions and Restrictions on a Specified Parcel of Seventy Corporate Plaza in the St. Charles County Records (the “Effective Date”) do hereby terminate and release the parcel from the Declaration of Covenants, Conditions and Restrictions on a Specified Parcel of Seventy Corporate Plaza dated June 3, 1983, and recorded in Book 960 Page 1197 of the St. Charles County Records, as amended by First Amendment to Declaration of Covenants, Conditions and Restrictions on a Specified Parcel of Seventy Corporate Plaza dated December 13, 1983, and recorded in Book 975 Page 1029 of the St. Charles County Records, and Second Amendment to Declaration of Covenants, Conditions and Restrictions on a Specified Parcel of Seventy Corporate Plaza dated December 23, 1983, and recorded in Book 976 Page 1045 of the St. Charles County Records (the “Declaration”). From and after the Effective Date, the parcel shall be released from and shall no longer be encumbered or burdened by or have any rights, benefits, powers, privileges, duties or responsibilities under the Declaration, and thereafter, the Declaration shall be of no further force or effect. The undersigned agree to and shall execute, acknowledge and deliver such further documents and instruments as may be required in order to carry out the purposes of this Termination of Declaration of Covenants, Conditions and Restrictions on a Specified Parcel of Seventy Corporate Plaza and to effectuate the transaction contemplated hereby. [SIGNATURE PAGES FOLLOW] CORE/0827545.0024/158353403.2 [SIGNATURE PAGE TO TERMINATION OF DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ON A SPECIFIED PARCEL OF SEVENTY CORPORATE PLAZA] Dated as of __________________, 2020 ST CHARLES CITY COUNTY LIBRARY DISTRICT ______________________________________ Name ______________________________________ Name Owner of St. Charles County Parcel ID No.: 4-0019-S029-00-0008.0112000 STATE OF MISSOURI ) ) ss. COUNTY OF ST CHARLES ) On this _____ day of ______________, 2020, before me, a Notary Public in and for said state, personally appeared _____________________, _______________________ known to me to be the persons who executed the within Termination of Declaration of Covenants, Conditions and Restrictions on a Specified Parcel of Seventy Corporate Plaza and acknowledged to me that they executed the same for the purposes therein stated. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written. Notary Public 2 CORE/0827545.0024/158353403.2 EXHIBIT A CORE/0827545.0024/158353403.2 CORE/0827545.0024/158353403.2 Agenda Memo Agenda Item: 20-43 Subject: FY21 Budget Discussion Date: April 14, 2020 From: Jason Kuhl, Director & CEO Over the past several months, we have been working on developing the FY21 budget. The events of the past several weeks have introduced a great deal of uncertainty into that process. The attached Moody Report provides a concise overview of how property tax revenues could be negatively affected for years to come. Since that report was released, we have been advised by the State Library to plan for no State Aid in the coming year and for little to no Athletes and Entertainers Tax payments. The difficulty is not limited just to declining revenues; we will also likely see an increase in health insurance costs due to COVID- related claims. As we are still in the early stages of the pandemic and a clear picture of the economic impact has not emerged, we believe it is advisable to take an extremely conservative approach to the FY21 budget. We will discuss some strategies under consideration at your meeting. The Moody Report The 2020 Economic Downturn March 25, 2020 Free Content The Moody Report is a subscription service that tracks Missouri budget and governmental issues. This update is a free update for the public. Readers may share with others as they see fit. Strange Times In the past week your author received calls and texts that inquired, “What is going to happen to government and the economy?” As we write on March 25, 2020, we are in very strange times. Government and the economy have come to almost a standstill, as Governor Parson has closed the State Capitol and also has shut down Missouri governmental offices. The lack of economic activity will quickly have a dramatic impact on both state and local government revenues, which will impact Missouri’s ability to provide basic governmental services. Here are our thoughts on the current recessionary times, and how they will impact Missouri and its governmental entities. This overview is our view on March 25, 2020 and events will surely change quickly. To our readers stay safe and healthy –Jim Moody State Cash Reserves While the State originally projected to end Fiscal Year 2020 (the current fiscal year) with a cash and anticipated lapse of over $500 million, that beginning balance was budgeted by Governor Parson in the Fiscal Year 2021 budget. Budgeting the cash balance and the lapse is a pretty standard budgeting technique, and we are not being critical of that action. But that cash that was anticipated will likely not even be in the bank on June 30, 2020. The deteriorating economic picture makes the anticipated cash balance and potential lapse unrealistic. One should assume that the presumed cash balance and normal spending lapses will not occur. Therefore, available cash to operate Missouri government is going to be tight. Our current view is that any ending cash balance on June 30, 2020, will be small, and that there may be spending restrictions applied in FY 2020 in order to create some operating cash. A first infusion of the federal money we discuss below will need to get here quickly, or the State may not be able to pay bills when the Budget Reserve Fund is repaid. The Budget Governor Parson and legislative leaders have focused their attention (rightfully so) on passing the FY 2020 Supplemental Budget. The Supplemental Budget bill (House Bill 2014) will evolve as a new spending plan for the enhanced federal funding that should be forthcoming, and also to reflect the declining state General Fund. 1 There is plenty of time for the General assembly to pass the FY 2021 operating budget bills, which are poised to be debated in the Missouri House. FY 2021 will not begin until July 1, 2020, and in the normal course of state business the Governor does not sign the appropriations bills until the latter part of June. We are confident that the General Assembly and the Governor will find a way to get the FY 2021 budget in place in a timely manner.
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