HomeMy WebLinkAboutOrdinance 4827 ORDINANCE NO, 4827
AN ORDINANCE WAIVING THE REQUIREMENTS OF
FORMAL COMPETITIVE BIDDING AND APPROVING A
CONTRACT FOR DEMOLITION SERVICES WITH BIOBASED
REALTY, LLC, BIOBASED TECHNOLOGIES, LLC, AND
BIOBASED SYSTEMS, LLC, IN EXCHANGE FOR A $ 17,000.00
CREDIT TOWARD THE PURCHASE OF THE WATER AND
SEWER OPERATIONS CENTER ON CATO SPRINGS ROAD
WHEREAS, the Real Estate Sales Contract approved by the City Council November 1 ,
2005, requires the removal of structures currently located on the Cato Springs property; and,
WHEREAS, BioBased Realty, LLC, BioBased Technologies, LLC and BioBased Systems,
LLC desire to achieve the first LEEDS Platinum Building Rating in Arkansas; and,
WHEREAS, BioBased Realty, LLC, BioBased Technologies, LLC and BioBased Systems,
LLC has offered to, and is uniquely qualified to provide demolition services to include on-site
recycling of building debris in order to achieve a LEEDS Platinum Building Rating for its new
facilities at the site.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE, ARKANSAS:
Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby finds that such
circumstances constitute an exceptional situation where competitive bidding is not feasible or
practical, and waives the requirements of formal competitive bidding and hereby approves a contract
for demolition services with BioBased Realty, LLC, BioBased Technologies, LLC and BioBased
Systems, LLC in exchange for a $ 17,000.00 credit toward the purchase of the Water and Sewer
Operations Center on Cato Springs Road. A copy of the contract for demolition services is attached
hereto marked Exhibit "A" and made a part hereof.
PASSED and APPROVED this 7th day of February, 2006.
APPROVE :
By: 14
DAN COODY, Mayor
ATTEST:
By: &:l � /Lt� ` o`� EFt1VTF7� �.,,, '
`. G� , . . . . 0 SG,
SONDRA SMITH, City Clerk G�TY pc .0 ,PP
z0
c
• FAYETTEVILLE ;
%9S'9RKANSPCbJ�'`'
°'a;;j'GTON�'o`���
CONTRACT FOR SERVICES
This Contract, is entered into on this 74 day of February, 2006,
between the City of Fayetteville, and BioBased Realty, LLC, BioBased
Technologies, LLC and BioBased Systems, LLC (hereinafter BioBased). This
contract shall be in full force and effect on the date first written above.
In consideration of the mutual covenants contained herein, and other
good and valuable consideration, the City of Fayetteville and BioBased agree
as follows:
1. Statement of work: BioBased agrees and understands that it shall
provide the following services to the City of Fayetteville:
a. to demolish as much as necessary for BioBased's
development, the two (2) buildings on the Cato Springs
property; and
b. to recycle certain building materials in order to achieve
LEEDS Certification; and
c. if necessary, remove and properly dispose of any remaining
debris.
2. It is expressly agreed and understood by the parties that in exchange for
the performance of the above services by BioBased, the total amount of
credit to be applied toward the purchase price of the former Water and
Sewer Operations Center property shall not exceed $17,000.00.
3. The parties agree and understand that this Agreement is supplemental
to the Real Estate Sales Contract approved by the City Council on
November 1, 2005, and that it does not alter, amend or abridge any of
the rights, obligations, or duties of the parties not expressly addressed
herein.
4. A waiver by either party of any of the terms or conditions herein shall
be limited to that particular instance, and shall not be construed as a
general waiver of either party 's right to seek appropriate remedies for
any other breaches by either party.
5. This contract constitutes the entire understanding of the parties as to the
provision of demolition services at the Cato Springs property, and no
modification or variation of the terms of this contract shall be valid
unless made in writing and signed by the duly authorized agents of the
City of Fayetteville and BioBased.
IN WITNESS WHEREOF, we have hereunto set our hands on the
date first written above.
"'RwrR11111 ,,, CITY OF FAYETTEVILLE
* 616: , . . , ,egs ,
r�a •G\T Y 0040
E : FAYETTEVILLE * ? By: i
- y •,yP5; DAN COODY, Ma o
ATTEST: 0%�;y111 iyGroN °J`��
By:
SONDRA SMITH, City Clerk
BIOBASED REALTY, LLC
BIOBASED TECHNOLOGIES, LLC
BIOBAS
By, ! D SYSTEMS, LLC
TOM MUCCIO, CEO
Agent or Witness:
By:
2
02A3
�1I06
City of Fayetteville 7
�
Staff Review Form
City Council Agenda Items 05rd lapsed
or QJld �a5t+� �CCtia��i4
Contracts '�JJ
', 72006
City Council Meeting Date
Ray M . Boudreaux Aviation & Economic Development General Government
Submitted By Division Department
Action Required:
Action Required : Approve a Supplementary Agreement to the Real Estate Sales Contract with BioBased Realty,
LLC, Contact: Tom Muccio, CEO, 3715 N Business Dr. , Suite 107, Fayetteville, AR, 72703, Phone: 479-587-9433,
fax: 479-587-9486, email: tmuccio@biobased.net, to carry out demolition of the existing buildings on the site in
exchange for a reduction to the sales price for the property.
(revenue)
$ 17,000.00 $ 940,000.00 Contrib
Cost of this request Program Category / Project Name
1010.0001 .4881 .02 $ - General Fund revenue
Account Number Funds Used to Date Program / Project Category Name
NA $ 9403000.00 General
Project Number Remaining Balance Fund Name
Budgeted Item �X Budget Adjustment Attached
Previous Ordinance or Resolution # Ord. #4787
Department erector / D to O Original Contract Date: 11 /04/05
IT Original Contract Number:
CIA
City Attp Date ��yy
Received i NIECle s Office
RED
yl4
Finance And Internal Service Director Da e
Received in Mayor's Office EIIfEAE
Mayor Date
Comments: Reference BA# 0 58
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Fayetteville City Council
THROUGH : Dan Coody, Mayor
FROM : Ray Boudreaux, Aviation & Economic elopment
I
DATE: January 19, 2006
SUBJECT: Supplementary Agreement with Bio-Based Industries
Recommendation
Staff recommends approval of the supplemental agreement.
Discussion
City Council previously approved an agreement with Bio-Based to sell the former Water & Sewer
Operations Center to Bio-Based Industries. Bio-Based has requested the City leave the existing
buildings so they (Bio-Based) can perform the remediation/removal as part of their development.
Bio-Based further requests the City reduce the purchase price by $ 17,000. This amount represents
the cost of the demolition contract the City had entered into to remove the structures.
Additional information concerning this request can be found in Bio-Based letter incorporated into
this packet.
If you have any questions please contact Ray Boudreaux.
Thank you.
JAFacilities\Bio-Based Supplemental Agreement.doe
MEMORANDUM
TO: Ray Boudreaux, Economic Development Director
FROM: Coy Hurd, Project Manager
DATE: January 6, 2006
SUBJECT: Tom Muccio memo of January 5
I am in receipt of a letter from Tom Muccio regarding the old Water and Sewer
Operations campus. I have attached it for your review. Because you are the lead on this
negotiation, I wanted to let you know my opinion on this proposal.
I am certainly in favor of this proposal. I do hope that you will be able to convince all
parties that this is a good idea and that we can move forward in this regard. Please let me
know how I can help you in your efforts to bring closure to this matter.
Hardcopy sent via city mail system, January 6.
ORDINANCE NO.
AN ORDINANCE WAIVING THE REQUIREMENTS OF
FORMAL COMPETITIVE BIDDING AND APPROVING A
CONTRACT FOR DEMOLITION SERVICES WITH BIOBASED
REALTY, LLC, BIOBASED TECHNOLOGIES, LLC, AND
BIOBASED SYSTEMS, LLC, IN EXCHANGE FOR A $ 175000.00
CREDIT TOWARD THE PURCHASE OF THE WATER AND
SEWER OPERATIONS CENTER ON CATO SPRINGS ROAD
WHEREAS, the Real Estate Sales Contract approved by the City Council November 1 ,
2005, requires the removal of structures currently located on the Cato Springs property; and,
WHEREAS, BioBased Realty, LLC, BioBased Technologies, LLC and BioBased Systems,
LLC desire to achieve the first LEEDS Platinum Building Rating in Arkansas; and,
WHEREAS, BioBased Realty, LLC, BioBased Technologies, LLC and BioBased Systems,
LLC has offered to, and is uniquely qualified to provide demolition services to include on-site
recycling of building debris in order to achieve a LEEDS Platinum Building Rating for its new
facilities at the site.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE, ARKANSAS:
Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby finds that such
circumstances constitute an exceptional situation where competitive bidding is not feasi le or
practical, and waives the requirements of formal competitive bidding and hereby approve a �o tract
for demolition services with BioBased Realty, LLC, BioBased Technologies, L ^ io ased
Systems, LLC in exchange for a $ 17,000.00 credit toward the purchase•o ate and Sewer
Operations Center on Cato Springs Road. A copy of the contract ford ffi sery'1 a is attached
hereto marked Exhibit "A" and made a part hereof.
Ak
PASSED and APPROVED this 7`h day of F ruary, 200 .
AP D:
DAN Cbl , Mayor
A
By:
SO V.SN)ft H, fit Clerk
BioBased B/OBASEO
Technologies S ,. sTEMs
Tom Muccio, CEO
Dr. Coy Hurd
Director, Building Services
City of Fayetteville
113 West Mountain St.
Fayetteville, Arkansas 72701
January 5, 2006
Dear Dr. Hurd,
Thank you for the information concerning the demolition of the two buildings on the
Cato Springs property. BioBased Realty is offering to do the demolition work in
exchange for a reduction in the sales price of the property by the amount the City of
Fayetteville plans to pay for the work.
This action would allow us to move faster and, more importantly, maximize our ability to
qualify for the higher LEED status in our pursuit of having the first Platinum rated
building in Arkansas. BioBased Realty respectfiilly requests that the City not demolish
those buildings, but rather pay us the $17K that has been allocated to knock them down
and dispose of them. We will then take responsibility for the ultimate tear down and
disposal of the buildings if desired.
We understand that there is a minimum amount of asbestos in these buildings and will
take appropriate caution in any work that is done in the buildings. The City will remain
responsible for the clean up that is required of the balance of the site as specified in the
approved contract.
Please let me know if this meets your needs and/or if there is anything else that we are
required to do to get your approval.
Thanks in advance,
Tom Mucci
3715 N. Business Dr. Suite 107, Fayetteville, AR 72703
Telephone: (479) 587-9433 Fax: (479) 587-9486 Email: tmuccio@biobased.net
www.biobased.net www.biobasedtechnologies.com
F CUS ON
TE
AR I LLE
www.fayetteville.com
January 5, 2006
Ray Boudreaux
Director, Aviation & Economic Development
Fayetteville Municipal Airport
4500 S. School Ave., Suite F
Fayetteville, AR 72701
Dear Mr. Boudreaux:
Please find attached a letter from Tom Muccio of BioBased Systems requesting modification to
the agreement with the City of Fayetteville for the purchase of the former water/wastewater
operations center at the comer of Cato Springs Road and Razorback Road. Please take the
necessary action to formalize an agreement between the City of Fayetteville and BioBased
Systems which will allow the purchase price of the property to be reduced by $17,000 in
exchange for the demolition and removal of the two concrete buildings on the property.
According to Mr. Coy Hurd, Director of Building Services, the cost of the demolition was
established by soliciting bids for the work. Only one bid was received for $17,000. BioBased has
stated in the attached letter that they will assume responsibility for the demolition of the
buildings and request that the purchase price of the land be reduced by $17,000 at closing.
This course of action will allow BioBased to do the demolition by grinding, and recycling the
material of the south building and using it on the property. This will also be done on the north
building except that the concrete pillars will be saved and used as a part of the structural
members of their new laboratory. This in fact will cost more than simply leveling the building.
This recycling effort by BioBased Systems will count toward points needed to qualify for a LEEDS
building. BioBased's goal is to have the first Platinum LEEDS building in Arkansas. This will bring
great credit, recognition, and positive publicity for all.
Thanks for your help with this project. With all of us working together we may very well have a
Polyurethane Center of Excellence and a "cluster' of high tech, environmental friendly businesses
that create high paying jobs, increase our tax base, and stimulate our local economy.
Sincerely,
Steven K. Rust
President
Fayetteville Economic Development Council
1 W. Mountain, Suite 301 , PO Box 4156, Fayetteville, AR 72702 • 479.442.8885 • FAX 479.442.4580
ORDINANCE NO, 4787
AN ORDINANCE WAIVING THE REQUIREMENTS OF
§34.27, CODE OF FAYEITEVILLE AND APPROVING A
REAL ESTATE SALES CONTRACT WITH BIOBASED
TECHNOLOGIES IN THE AMOUNT OF $940,000.00 FOR NOV U 7 2005
THE PURCHASE OF THE WATER & SEWER OPERATIONS
CENTER ON CATO SPRINGS ROAD; DESIGNATING THE
PROCEEDS FOR ECONOMIC DEVELOPMENT PURPOSES; `
AND APPROVING A BUDGET ADJUSTMENT
IMPLEMENTING THE DESIGNATION.
BE TT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby waives .
the requirements of § 34.27, Code of Fayetteville, and approves a Real Estate Sales Contract
with BioBased Technologies in the amount of $940,000.00 for the purchase of the Water &
Sewer Operations Center on Cato Springs Road. A copy of the contract is attached hereto
marked Exhibit "A" and made a part hereof.
Section 2. That the City Council of the City of Fayetteville, Arkansas hereby
designates the proceeds of this sale for Economic Development purposes.
Section 3. That the City Council of the City of Fayetteville, Arkansas hereby
approves a Budget Adjustment implementing said designation of proceeds.
Section 4. That the City Council of the City of Fayetteville, Arkansas hereby
authorizes the Mayor and City Clerk to execute said contract with BioBased Technologies.
PASSED and APPROVED this 1st day of November, 2005.
APPRO
Y.
D COODY, Mayor
ATTEST://�� (�/J\J\
By: 9J/Gtc.L�-a �--il wrL
SONDRA SMITH, City Clerk
REAL ESTATE SALES CONTRACT
1 . The City of Fayetteville, Arkansas offers to sell and BioBased Realty, LLC offers to buy,
subject to obtaining acceptable financing and other terms and conditions set forth in this
contract, approximately 19.5 acres including all of Parcel 765-03017-000 and Parcel 756-15399-
010 except for a one acre parcel where the Children's House is currently located and a right of
way easement where the Children's House driveway is not located. This property is more
particularly described in Exhibit "A" attached hereto and made a part hereof.
SEE ATTACHED EJHIIBIT "A" FOR PROPERTY DESCRIPTION
2. Purchase Price: Subject to the following conditions, BioBased Realty, LLC shall pay for the
property at closing, the total cash payment of Nine Hundred Forty Thousand Dollars
($940,000.00).
3. Conveyance will be made BioBased Realty by general Warranty Deed, except it shall be subject
to recorded instruments and easements, if any, which do not materially affect the value of the
property. Such conveyance shall include mineral rights owned by the City of Fayetteville.
4. The City of Fayetteville shall furnish a policy of title insurance in the amount of the purchase
price from a title insurance company as selected by the City of Fayetteville. The City of
Fayetteville shall pay the cost of the title insurance.
5. The City of Fayetteville agrees to allow BioBased Realty, if BioBased Realty so desires, at
BioBased Realty's expense, to survey the property. The City of Fayetteville agrees to cure any
title problems which may result from any differences between the recorded legal descriptions of
the property and the survey description. Said title problems, if any, must be solved prior to
closing to the satisfaction of the City of Fayetteville. The City of Fayetteville shall provide at its
expense a survey of the one acre tract for Children House and right of way easement as depicted
on Exhibit `B".
6. Taxes and special assessments due on or before closing shall be paid by the City ofFayetteville.
Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be
prorated as of closing.
7. The closing date shall be within one hundred twenty (120) after approval of this offer by the
City Council, which can be extended by agreement of the Mayor for an additional sixty (60)
days. If such date of closing falls on a weekend or holiday, it will be held the following working
day.
8. Possession of the property shall be delivered to BioBased Realty on the date of closing.
9. The City of Fayetteville hereby grants permission for BioBased Realty or their designates to
enter the above described property and improvements for the purpose of inspection and/or
surveying.
10. Risk of loss or damage to the property by fire or other casualty occurring up to the time of
closing is assumed by the City of Fayetteville.
11 . The City of Fayetteville shall disclose to BioBased Realty any and all environmental hazards of
which the City of Fayetteville has actual knowledge. Upon acceptance of all conditions and
terms of this Offer and Acceptance, the City of Fayetteville shall bare the costs of any and all
testing for the existence of environmental hazards, including Phase I environmental study and a
Phase R study if necessary. Should the existence of environmental hazards be discovered, the
City of Fayetteville shall either cure such at its expense or BioBased Realty may terminate this
contract.
12. - The City of Fayetteville will remove at its expense the existing buildings (not including
Children's House) and debris in coordination with BioBased Realty prior to or immediately after
closing.
13. Prior to closing, BioBased Realty in conjunction with BioBased Technologies/BioBased
Systems will provide the City of Fayetteville with a Master Plan layout of the property
acceptable to the City Council. BioBased Realty or BioBased Technologies/BioBased Systems
shall take all reasonable action to ensure that any minor possible odor or pollution emissions do
not affect surrounding areas. BioBased agrees to build in scrubbers to protect air quality where
reasonably appropriate. Each building's general design (including construction materials) shall
be presented to the City Council for its approval prior to the building's construction. Normal
city developmental requirements such as Large Scale Development standards, etc. shall still be
required.
14. If any portion of the land conveyed by this contract is sold by BioBased Realty within the first
five years of the date of closing, an independent appraisal of the land's value (not to include the
value of any building thereon) shall be performed. BioBased Realty shall pay 75% of the
increase in appraised value of the land (with prorated sales cost deducted) to the City of
Fayetteville. BioBased Realty shall pay the City of Fayetteville 40% of the increase in appraised
value of the land (with prorated sales costs deducted) for any sales after 5 years until 10 years
from the closing date.
15. BioBased Realty is granted an option to purchase the remaining acre where Children's House is
located eight years after the closing date. BioBased Realty may exercise this option to purchase
at any time during the year following the eight year period after the closing date. BioBased
Realty and the City agree the price shall be determined at that time as follows:
(a) The property including improvements thereon shall be appraised by an independent
appraiser.
(b) BioBased Realty shall receive an offset from the appraisal value using the following
formula: For every full $100,000.00 in annual payroll paid to BioBased
Technologies/Systems and related companies' employees working in Fayetteville
over the Two Million Dollar annual payroll estimated for 2008, BioBased Realty
shall receive a reduction of $25,000.00 from the appraised value of this remaining
acre.
(c) Reductions allowed in paragraph (b) shall not reduce the final price for this acre
parcel below $60,000.00.
2