Every college student who takes a business law class or maybe in law school, the first "Contracts" class remembers the first day of class. Everyone is pretty excited and nervous. The prof enters the room. The prof's first words are:
"Good morning, class."
"Now.... can anyone tell me the difference between a "promise" and a "contract?"
Usually, cause it's the first day, there is just quiet.
So, the prof says, "Well, let's put it a different way. When a boy says to a girl, "Honey, I will love you forever." Is this an enforceable promise?
Quickly a hand is raised. "NO WAY" says an older, wiser female student. Everyone in the class chuckles.
What follows in that class is one of the best and funniest classes of a college career. So......
The other night at the Redevelopment Authority meeting, with the college students of Beloit College in the back row observing, Mr. John Decker proposed that he could support the $1.9 million dollar proposal for restoration of the old Ace, if the developers would pledge to pay taxes on the 1.9 million "cost" of the project, even if the completed project was assessed at a lower value, even say, 1 million.
Once Mr. Decker had completed his proposal, there was a silence as spectators were holding their breathe and trying to remember that college class years ago and how it all came out?
We have some fine legal blogger observers. There has been some time now since the meeting for the medium and long term memory to kick in.
Would such a promise be just "void" or would it indeed be enforceable?
You make the call.
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While "a kiss is not a contract" a written signed document often is. And this "promise" was agreed to be written as a term of the overall agreement. I am certain that all parties will want a contract that is fully enforceable, so I trust that this term will be. I understand that Bill Connors is investigating the proper wording to include this "promise" as a condition for when it comes before Council.
ReplyDeleteI was under the assumption that Thursday night's "promise" would be put into writing before any TIF money is released.
ReplyDeleteOne thing that was also a "promise," was we don't intend to sell the building several years after project completion. I think there should be a written contract before any money is released (due to the expectation that the appraisal will fall short). I think the written contract should include that the developers will continue to pay the difference if they sell the building before the TIF money is paid in full, or require that te sales contract on the property specify's that the buyer will continue to pay taxes at the inflated rate.
Off subject here.
ReplyDeleteWho is Tom Nonn???
I am sick and tired of people like RogerBerg, Ed Francious and brother
ReplyDelete(sorry I don't remember his name) and Jeff Farnsworth acting like they are doing the city such a favor and people should bend over to please them. When really what they are asking for is the tax payer's money and they need to remember that little FACT.