111451 · 313
' MINUTES
~r~an November
City Commission, Sanford, ...... _ ................................................... 3
The City Commission of the City of Sanford, Florida, met in adjourned session st the City
Hall in the City of Sanford, Florida, at 1:30 o'clock P.N., November 16, 1951.
Present: Commissioner Fo A. Dyson, Nayor " Andrew Carraway
" Randall Chase
" John Ivey
" W.H. Stemper
City Attorney A. Edwin Shinholser
"- City Manager Clifford McKibbin, Jr.,
City Clerk H. N. Sayer
Meeting called to order by t-he Chairmen who announced that the purpose of the meeting was
to confer with Mr. L. H. Ghormley, representative of L. H. Ghormley & Company and Fisher Hawse
& Company, Inc., Knoxville, Tenn., relative to releaelng the City from contract to sell them
~-- the Port Terminal and Parking Meter Revenue Bonds in amount of $350,000.00, which was authorized
by Resolution No. 790.
Mr. Ghormley then advised that they would release the City from their contract to purchase
the terminal bonds and all obligations in connection therewith upon payment of actual out-of-
~.~ pocket expenses incured by them, covering surveys, bringing investors to Banford, printing
and circulating a prospectus, selling the bonds and withdrawing them from the market twice
because of the litigation on validation, and other miscellaneous e~enses.
Mr. Ghorm]ey also suggested that the City rescind the resolution authorizing the issuance
of the bonds and sale of them to L. H. Ghormley & Company and. Fisher Hawes& Company, Inc.,
and submit a request that the appealed case on valadity of the bonds be withdrawn and dis-
missed from the State Supreme Court; ~ting that in hie opinion if Supreme Court ruled the
bonds are valid, the bond purchasers could demand delivery of tbs bonds, and t he bond Attorneys
,-. and construction engineers could demand the fees for their services; also, that if the City
decided at a later date to construct the terminal under referendum approval, it would still have
to be financed under this bond issue, and that due to the change in national and international
conditions and with the approval of the qualified elector~ the City should be able to issue
bonds at a more favorable interest rate.
The City Attorney then advised in his opinion that since the bonds have already been
validated by Circuit Court the City does not have authority to withdraw the case from Supreme
Court.
Thereupon after considerable discussion, Commissioner Chase moved that the City accept
release from L. H. Ghormley & Company and Fisher Hawes& Company, Inc., of contract to sell
~hem the port terminal and parking meter revenue bonds and pay them for out-of-pocket expenses
incurred by them in connection therewith in sum of $2,500.00.
Seconded by Commissioner Carrawsy and carried.
Commissioner Stemoer next made the following motion which died for lack of a second:
"In view of the fact that Mr. Ghormley, representative of the bond purchasers, has etated,
first, that they are willing to release the City from all obligations and the City hae agreed
to this, but inhis opinion if the bonds are validated by Supreme Court the City would be liable
,.. to the bond purchasers unless they give us ~he release, which the above motion states; that
from his recent conversetion with Smith & Gillesple, the construction engineers, after the bond
validation by Supreme Court we would be liable for part or al2 of their engineering expenses;
and that the City would also be liable to the bond attorneys for their fees. Mr. Ghormley also
~ stated that due to national~and international conditions at present time and their affect on
the bond market, that inhle opinion if this project is taken up at a later date it was highly
possible that conditions would be more favorable, me~nln~ Inte~t
H-40750
MINUTES
City Commission, Sanford, Florida, N~vembe~' ibc. at 1~30 P t4 19 51
interest rate. In view of the above statements, and in order to save the
protect the City's rights, I move that the City Commissioners immediately
remove the validation proceedings from the Florida Suoreme Court."
City money and to
initiate action to
Commissioner Stemper next moved that the City Attorney be instructed, to take such steps
as necessary to minimize or terminate any further obligations that the City may have from the
issue of the port terminal and parking meter revenue bonds, and same died for lack of s
second.
There being no further business the meeting then adjourned.
ATTEST;