By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The Hutchinson City Council will discuss the Atrium Hotel purchase process with the City Attorney as part of an executive session June 15. There appears to be an issue with the owner and the bank who still holds that owner's note and the city.
"Our big concern right now is how we set it up procedurally, the mechanism for protecting the city against the bank's interest and the owner's interest, so that once we draft this thing, we're protected and in a position that puts us in, maybe not first position, but one that's respective of the debt owed," said City Manager Jeff Cantrell.
Council member Jon Daveline wants to be clear that he doesn't want any entanglements if the city is going to buy the hotel.
"I'm sure you will consider making sure that there are provision for a lien release by the Dallas bank, to make sure that, at some point, immediately upon the acquisition we retain title, secure title," Daveline said. "We remove Mr. Joseph out of the equation completely, that we have complete control of the property itself."
Cantrell said that right now it would take a cash deal to cut the current owner and the bank out and because the City was planning to pay for it with future bed tax receipts, they hadn't worked the details out yet. City Attorney Paul Brown was optimistic, though.
"I'm thinking that it is executive session," Brown said. "I can tell you, from my end of things, that it will be ready for the next council meeting."
One of the items that can allow for an executive session of a governing body, according to K.S.A. 75-4319 is for the preliminary discussion of the acquisition of real property.