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RESOLUTION RELEASING PROPERTY FROM THE LEASE AGREEMENT BETWEEN FROLIC FOOTWEAR AND PEOPLES PROPERTY ASSOCIATION OF JONESBORO, ARKANSAS
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WHEREAS, Frolic Footwear, Inc., an industry of the City of Jonesboro, has requested the Mercantile Bank of Jonesboro, as Trustee and the City of Jonesboro and the bondholders of the bonds dated January 1, 1957, issued by the Municipal Parking Authority of the City of Jonesboro to release the following described tract of land to-wit:
A part of Lot 10 of Cobb and Lee’s Survey of the Northwest Quarter of Section 17, Township 14 north, Range 4 East, more particularly described as follows: Commence at the Southeast corner of the Southwest Quarter of the Southwest Quarter of Section 17, Township 14 North, Range 4 East; thence North 1°13’ East 31.2 feet to the North right of way line of Aggie Road 248.2 feet to the point of beginning proper; thence East along the north right of way line of Aggie Road70 feet; thence North 196.2 feet to the Southwesterly right of way line of St. Louis San Francisco Railway switch track; thence in a Northwesterly direction along the Southwesterly right of way line of St. Louis San Francisco Railway switch track 124.6 feet, more or less, to a point 300.3 feet due North of the point of beginning; thence South 300.3 feet to the point of beginning.
From the terms of a Lease dated January 1, 1967, between Frolic Footwear, Inc. and the Peoples Property Association of Jonesboro, Arkansas and to subordinate a lien presently existing against said tract of land, which lien is created by a mortgage from the Peoples Property Association of Jonesboro, Arkansas to the Jonesboro Municipal Parking Authority, dated January 1, 1957, recorded in mortgage record book #91, Page 220 of the Circuit Clerk of Craighead County, Arkansas, and by an assignment of such mortgage by the City of Jonesboro to the Mercantile Bank, as trustee, on January 1, 1957, recorded in mortgage record book #91, Page 230, office of the Circuit Clerk of Craighead County, Arkansas, in favor of a new mortgage lien shall be for the purpose of obtaining new and additional funds to be used in the construction of a new building located upon said tract of land, and
WHEREAS, the existing bondholders of such above described bonds have consented and agreed to such, and it is considered by the City Council to be in the best interest of the City of Jonesboro and in the best interest of Frolic Footwear, Inc. to allow such new construction to be made upon such tract of land, now belonging to the City, and it being necessary, to provide the financing for such new construction;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Jonesboro, Arkansas, that the City Council has given its permission and consent to the Mercantile Bank of Jonesboro as Trustee to release, said described tract of land from the terms of the aforesaid Lease, and to further subordinate the above described mortgage lien existing upon such tract of land in favor and to the benefit of a new mortgage lien to be placed against said land to be security for additional funds which shall be obtained for the purpose of constructing upon said land a new building.
PASSED and ADOPTED this 10th day of July, 1967.