RESOLUTION NO. 1355

A RESOLUTION OF THE COUNCIL OF THE CITY OF SALISBURY, MARYLAND TRANSFERRING FUNDS FROM THE CITY’S CONTINGENCY TO PAY TAXES AND COMMON AREA MAINTENANCE CHARGES ATTRIBUTABLE TO THE SPACE THAT THE CITY LEASES TO THE AIG IN THE PLAZA GALLERY BUILDING

WHEREAS, there is a total outstanding balance due for real estate taxes and common area maintenance charges in the amount of $42,944 under the AIG sublease agreement with the City for space currently leased by the City from Plaza Gallery LLC in the Plaza Gallery building; and

WHEREAS, the AIG does not currently have the financial resources to bring these obligations current; and

WHEREAS, the landlord, Plaza Gallery LLC, has threatened to evict the AIG from this space for non-payment of the above balance due; and

WHEREAS, the AIG desires to continue to occupy its space in the Plaza Gallery Building; and

WHEREAS, the City desires that the AIG continue to occupy this space;

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Salisbury, Maryland hereby appropriates $42,944 from the City’s Contingency to pay Plaza Gallery LLC this outstanding obligation while negotiations continue between the City and AIG for the repayment of this amount to the City .

AND, BE IT FURTHER RESOLVED that the City Council approves the following transfer of funds:

1) Reduce the City’s Contingency (90500-559500) $42,944

2) Increase Payment to Plaza Gallery (90500- 554409) $42,944

THE ABOVE RESOLUTION was introduced and duly passed at a meeting of the Council of the City of Salisbury, Maryland held on ____ day of ___________, 2006 and is to become effective immediately upon adoption.

ATTEST:

_______________________________ __________________________________

Brenda J. Colegrove Michael P. Dunn

CITY CLERK PRESIDENT, City Council

APPROVED BY ME THIS:

_______day of ______________, 2006

_______________________________

Barrie P. Tilghman

MAYOR, City of Salisbury