The city council Tuesday passed a resolution declaring the Roanoke Rapids Theatre as surplus property and will sell the property at 500 Carolina Crossroads Parkway using the sealed bid process.
The action comes as G&T Holdings, which is made up of Thomas and Evon McLean,was declared to be in default on their balloon payment to the city.
The original agreement the city had with G&T was that they make monthly payments. Then about two or three years ago they were supposed to make a balloon payment to pay off everything that was owed on the theater and the interest.
Instead of outright foreclosure proceedings on the troubled venue the council last month opted to go with receiving the deed of trust in lieu of foreclosure, which reverted the property back to the city.
The resolution presented by City Manager Kelly Traynham authorizes her to receive sealed bids on behalf of the council.
The bids will be opened on September 12 at noon in the first floor conference room of city hall.
The resolution defines a responsible bid to be accompanied by a deposit of 5 percent of the amount of the proffer.
The responsible bidder must also be current on payment of all property taxes owed to the city.
Traynham said in a memo to the council that an advertisement for the sealed bid process will appear in a newspaper of general circulation in the area and a bid package will appear on the city’s website.
The advertisement will be published at least 30 days before the bid-opening. Once the bid-opening process is initiated it is expected to have a duration of 60 days.
Staff will request a due diligence period of up to five days subsequent to opening the bids.
If a responsible bidder is accepted there will be a 10-day upset bid process.
Meanwhile, public works Director Larry Chalker told the panel that employees have continued doing routine maintenance in anticipation of the bid process moving forward. That includes landscaping, cleaning, servicing HVAC units, checking all production equipment and reprogramming thermostat controls.
