Chillicothe City Council approved an ordinance Monday night authorizing the City of Chillicothe to enter into a lease/purchase transaction, the proceeds of which will be used to pay the costs of purchasing the Fast Lanes Family Entertainment Center for the purchase price of $2.2 million from Grand River Entertainment.

The ordinance states in part that the City Council approved the sale of the 2008A Certificates to Citizens Bank & Trust for the purchase price of $990,000, with an interest rate of 4.00 percent per annum, calculated on the basis of a 360-day year, consisting of 12 30-day months, subject to the conditions set forth in the Declaration of Trust and $1,210,000 for the 2008B Certificates, with an interest rate of 5.00 percent per annum, calculated on the basis of a 360-day year, consisting of 12 30-day months, subject to the conditions set forth in the Declaration of Trust. Delivery of the Certificates shall be made to the purchaser as soon as practicable after the approval of this ordinance, upon payment therefor in accordance with the terms of sale.

In order to purchase the Fast Lanes the city must enter into a lease/purchase agreement with Citizens Bank & Trust Co., pursuant to which the city, as the lessee, will sublease the property from Citizens Bank.

Attorney Robert Cowherd stated that, according to the agreement, the city’s portion of the agreement was $990,000, 45 percent of the project’s total.

The City of Chillicothe, the Chillicothe Industrial Development Corporation and Chillicothe Development, Inc., entered into a cooperative agreement in which the two companies will make payments to the city, and in turn, the city will then make payments to Citizens Bank & Trust for the purchase of Fast Lanes Family Entertainment Center. The companies will also receive an allocable portion of the proceeds from any future sale of the property, according to the ordinance..........