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Council approves termination of Sheridan Road sale agreement, authorizes $225,000 payment to settle
Summary
Council approved terminating a prior purchase-and-sale agreement for 14th Street property to remove the city’s construction deadline and authorized a payment to the purchaser (about $200,000 remaining purchase price plus a $25,000 termination payment) to avoid breach and potential litigation.
The Pekin City Council approved an ordinance to terminate a prior purchase-and-sale agreement involving lots one through five of the Firehouse Subdivision (14th Street) with buyer Dave Milm, a move tied to timing changes for construction of a new fire station on Sheridan Road. Staff said canceling the sale and paying Mr. Milm the remaining $200,000 owed under the original agreement, plus a $25,000 termination payment to cover his costs, will relieve the city from contractual deadlines to construct the new station and avoid potential breach claims.
Councilors asked detailed procedural and financial questions: staff explained the city currently holds the Sheridan Road parcels but has a mortgage related to the $200,000 portion; if the city failed to pay or convey the 14th Street property, Mr. Milm could elect a $200,000 buyout or pursue other remedies. Council members also questioned why the city initially accepted the terms and whether an appraisal had been completed; some members said they had not supported the original deal but voted to approve the termination payment to avoid the city having to lease back its fire station property or face litigation. The motion passed on the council floor.
