By Jim Reece - Sticking points for a purchase agreement of the Knight Foundry by the City of Sutter Creek were not stalled on the purchase price last week, heading into a Friday deadline on negotiations. Both sides agree to a 1.3 Million-Dollar purchase price of the 136-year-old water powered Industrial Age relic. But owner Richard Lyman and the Sutter Creek City Council were at odds over the terms of the purchase – escrow, grants, getting the funding the city needs to make the purchase. Assistant City Manager Sean Rabe said the two sides had agreed on the 1.3 million dollar purchase price but were haggling on the details. The City Council gave a “last and final offer” in September, which Lyman followed with a counter-offer earlier this month. “Rabe said the “city basically counter offered his counter offer with another final offer.” The issue, Rabe said, is that the city does not have enough money in the general fund to pay for the Knight Foundry. The city has won a California Cultural and Historical Endowment grant for 580,000 dollars, to put toward the purchase of the foundry. The city also applied for a 692,000-dollar grant from the Sierra Nevada Conservancy and awaits a decision on the grant award, expected in March. Rabe said between both of the grants, the city could basically have enough money to make the 1.3 million dollar purchase. Part of the agreement negotiations with Richard Lyman is that the city does not want to formally commit to the foundry’s purchase until the city knows that it has gotten that other grant. Rabe said he expected a reply by 5 p.m. Friday from Lyman and would know today what was the outcome of the negotiations. The Sutter Creek City Council negotiated the purchase details in a closed session last Monday night at the end of the city council regular meeting.
Monday, 27 October 2008 02:34
Sutter Creek Haggles With Knight Foundry Owner Over Purchase Details
By Jim Reece - Sticking points for a purchase agreement of the Knight Foundry by the City of Sutter Creek were not stalled on the purchase price last week, heading into a Friday deadline on negotiations. Both sides agree to a 1.3 Million-Dollar purchase price of the 136-year-old water powered Industrial Age relic. But owner Richard Lyman and the Sutter Creek City Council were at odds over the terms of the purchase – escrow, grants, getting the funding the city needs to make the purchase. Assistant City Manager Sean Rabe said the two sides had agreed on the 1.3 million dollar purchase price but were haggling on the details. The City Council gave a “last and final offer” in September, which Lyman followed with a counter-offer earlier this month. “Rabe said the “city basically counter offered his counter offer with another final offer.” The issue, Rabe said, is that the city does not have enough money in the general fund to pay for the Knight Foundry. The city has won a California Cultural and Historical Endowment grant for 580,000 dollars, to put toward the purchase of the foundry. The city also applied for a 692,000-dollar grant from the Sierra Nevada Conservancy and awaits a decision on the grant award, expected in March. Rabe said between both of the grants, the city could basically have enough money to make the 1.3 million dollar purchase. Part of the agreement negotiations with Richard Lyman is that the city does not want to formally commit to the foundry’s purchase until the city knows that it has gotten that other grant. Rabe said he expected a reply by 5 p.m. Friday from Lyman and would know today what was the outcome of the negotiations. The Sutter Creek City Council negotiated the purchase details in a closed session last Monday night at the end of the city council regular meeting.
