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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
February 23, 2000
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Date of Report (Date of earliest event reported)
THE ST. LAWRENCE SEAWAY CORPORATION
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(Exact name of registrant as specified in its charter)
Indiana
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(State or other jurisdiction of incorporation)
0-2040 35-1038443
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(Commission File Number) (I.R.S. Employer
Identification No.)
818 Chamber of Commerce Building
320 N. Meridian Street
Indianapolis, Indiana 46204
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(Address of principal executive offices) (Zip Code)
(317) 639-5292
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Registrant's telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On February 23, 2000, St. Lawrence Seaway Corporation (the "Company")
conducted a real estate auction and entered into definitive purchase and sales
agreements with seven non-affiliated, individual purchasers to sell an aggregate
of approximately 195 acres of agricultural real estate in Northern Indiana,
known as Schleman Farm (the "Property") at an aggregate gross price of Five
Hundred Sixty Seven Thousand Five Hundred ($567,500).
The Property was devoted by the Company to farming activities under the
cash lease method of operation. The cash lease method of operation involves the
leasing of property to farmers who are directly responsible for the operation
thereof and who paid the Company a rental fee covering a ten-month period for
the use of the property for farming and related activities. The Company
generally received these rental payments at one time or in semi-annual
installments. Real estate taxes and other minor expenses, such as insurance,
were the responsibility of the Company in some instances. As a result of the
sale of the Property and termination of the farm tenant prior to the planting
season, the Company will not realize any farm rental income from the Property in
its fiscal year ended March 31, 2001.
The Company engaged the services of its regular farm management
company, Halderman Farm Management Service, Inc., of Wabash, Indiana
("Halderman") to conduct the auction of the Property and to broker the sales.
Halderman had managed, and was responsible for the negotiation of all leases,
tenant contracts, and general operations and programs of the Schleman Farm. The
Company will pay Halderman, from the gross proceeds of sale of the Property, a
commission of 5% of the aggregate gross purchase price, and will reimburse
Halderman for $4,500 in advertising and marketing expenses in connection with
the auction.
Each purchase and sale agreement between the Company and the purchasers
provides that the closing for the sale of the Property will be no later than May
15, 2000, unless mutually agreed by the parties. Each agreement also requires
the Company to provide, at its expense, a staked survey and title commitment
prior to closing. The Company will also have to pay taxes on any gain from the
sale that exceeds its existing Net Operating Loss.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE ST. LAWRENCE SEAWAY CORPORATION
By: /s/ Daniel L Nir
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Daniel L Nir
President and Treasurer
Dated: March 6, 2000
