HomeMy WebLinkAbout20-73 RESOLUTIONRESOLUTION NO. 2/J-23
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BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
That the Mayor and City Clerk be, and they hereby are, auth-
orized and directed to execute one certain agreement by and between
the City of Fayetteville, Arkansas and Armstrong Realty Company
for the sale of property in the Fayetteville Industrial Park. A
copy of this agreement marked Exhibit "A" is attached hereto and
made a part hereof.
PASSED AND APPROVED THIS
1973.
ATTEST:
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DAY OF
APPROVED:
`iJ7( .04
Mayor
AGREEMENT
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THIS AGREEMENT, made this / ��k day of 771aAd, , 1973,
between the City of Fayetteville, Arkansas, a municipal corporation,
party of the first part, hereinafter called the "Seller", and.:.-•
\.' Armstrong Realty Company, an Illinois corporation, party of the.-
Second.part, hereinafter called the "Buyer".
Writ:ESSETH :
For a d innc.onstion of the premises, mutual covenants,
and agreements herein contained, the Seller and the Buyer agree as
follows:
1. -The Steel` agree to sell and Buyer agrees to purchase
the�fcllowing described real property (here:i fter sometimes
,referred to as "Rea1,..Estats') locat in Washington County, Arkan:;as:
A tract of land situate .n the West 1/2 of Section 26,
Township 16 North, F ge 30 West, Washington County,
Arkansas. The saw oeing within the Fayetteville
Industrial P�.r< Fayetteville, Arkansas, and being more
particularly described as follows:
BeOnring ata point whidh is South O1°13' West 1313.36
ft:4A from the NW Corner of Section 26, thence South 88°51'
KEast.1340.22 feet along the South Right -of -Way line of the
Frisco Railroad to the West Right -of -Way. line of a public
road; thence following said public road Right -of -Way South
O1°17' West, 1321.36 feet; thence North 88u52' West,
469.87 feet,`thence South 0°34' -'West 990.00 feet; thence
North 88°44' West 879.78 feet; thence North 1°13' East
2309.45 feet to the Point of Beginning.
upon the terms and. conditions hereinafter set forth.
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2. The total purchase price shall be One Hundred Twenty Five
Thousand ($125,000.00) Dollars which shall be paid in cash on the
closing date of this transaction.
3. Seller shall deliver or cause to be'delivered to Buyer or
Buyer's agent, not`less than 15 days prior to the time of closing,
a title binder for an owner's title insurance policy issued by the.
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Sad
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vti]ky ✓,rte. �.. m.SiTf-i.9 eceel
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Chicago Title Insurance Company in the amount of the purchase price,,
covering title to the Real Estate on or after the date hereof,
• showing title in Seller.subject only to: (a) the general exceptions
contained in the binder; and (b) any title exceptions set forth in
this Agreement.
4. If the title commitment discloses unpermitted exceptions
that render the title unmarketable, Seller shall have. 21 days from
the date of delivery thereof to have the exceptions removed from the
commitment or to have the title insurer commit to insure against
loss or damage that may be occasioned by such exceptions, and, in
such event, the time ofclosing shall be 28 daysafter delivery of
the commitment or the time expressly specified in Paragraph 5 hereof,
whichever is later. If Seller fails to have the exceptions removed,
or in the alternative, to obtain the commitment for title insuraz
specified aboveas to such exceptions within the specified time,
Buyer may terminate this Agreement or may elect, upon notice to
Seller within seven days after the expiration of the 18 -day peri
take title to said property in its existing condition. .If Buyer
not so elect, this Agreement shall become null and void without
further action of the parties.
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5. This transaction shall be closed on or before March 15;.
1973, at the office of the Seller's City Attorney,. 14 East Centel.
Street, Fayetteville, Arkansas, or on the date, if any, to which such
time is extended by reason of Paragraph 4 hereof. At the time of
closing, the Seller shall deliver\to the Buyer a duly executed Warranty
Deed in such form that is satisfactory to Buyer's counsel conveying
said Real Estate. The Buyer shall thereupon deliver to the Seller the
purchase price in accordance with'the terms of Paragraph 2 of the
Agreement. The Seller shall pay for the documentary stamps on the
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deed. The Buyer shall pay for recording said Warranty Deed.
6. The Seller agrees to deliver possession of said property
on the date of closing -as above set forth in.this Agreement.
7. Taxes for the year 1972 and all prior years shall be paid
by Seller. Taxes for the year 1973 assessed against the property
described in this Agreement shall be pro -rated as of the closing.
date. Taxes for all subsequent years shall be paid by the Buyer.
8. In the event that the Buyer shall fail to perform this
Agreement promptly on its part at the time and in the manner herein
specified, this Agreement shall be terminated and become null and.
void. Time is of the essence of all the terms hereof.
9. In the event the Seller shall fail to perform this Agree-
ment promptly on its part at the time and in the manner herein
specified, then at the option of the Buyer, this Agreement shall be
terminated and shall become null and void.
10. Seller warrants that the above described property is
presently zoned I-2, General. Industrial District, which is designed
to provide areas for manufacturing and industrial activities.
-Seller further warrants that the industrial park road as depict& -n
Exhibit "1" is in-place as shown on said plat.
11.. Seller warrants that an eighteen (18) inch sewer line i..
available and operational to the property line of the above desc:cibed
property.
12. Seller warrants that a twelve (12) inch water line is
available and operationalto thelproperty line of. the above described
property.
13. ' Buyer warrants that it will build and operate its facility
to be located on the above described property in compliance with all
federal, state and local regulations regarding, air, water, waste
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AGREEMENT -
disposal and noise pollution.
14. A. No unimproved portion of the Real Estate shall be
disposed of by Buyer without the prior written consent of Seller,
or, in the absence of such written consent, without first giving to
Seller, in care of the City Manager at the City Administration
Building of Seller, written notice by registered or certified mail,
return receipt requested, of Buyer's intention to dispose of said
unimproved portion of the Real Estate. For purposes of this
Agreement the term "unimproved portion of the Real Estate" shall be
deemed to mean a portion of the Real Estate which Buyer desires to
dispose of on which a permanent structure which enhances the capital
value of said portion of,Real Estate is not situated. No such
notice shall be given until Buyer shall have obtained. a bona fic,a
written offer to purchase said unimproved portion of the Real Estate.
Atrue copy of such written offer shall be attached to said notice.
Seller shall have the option to purchase said unimproved portion at.a
price which is the lesser of (i) an amount equal to One Hundred
Twenty Five Thousand Dollars ($125,000) multiplied by a,fractio. 4 the
numerator of which shall be equal to the number of square feet
tained insaid unimproved portion and the denominator of which .:11
be equal to the aggregate number of square feet contained in ti:c l
Estate, plus interest thereon at the rate of 6% per annum from the
date hereof until the date of closing of such sale; or (11) the
purchase price contained in said offer. The election shall be made
in writing by certified or registered mail, return receipt requested,
to Buyer at its offices on the Real. Estate with a copy thereof to the
President of. Buyer at its principal administrative offices. Said
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acceptance shall be within twenty (20) days from the date of the
aforesaid notice from Buyer. Closing of said sale shall be exactly
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AGREEMENT -
thirty (30) days from date. of Seller's exercise of said option at..
-the Office of the City Attorney of Seller. The full purchase price
shall be paid at closing. The other terms of such purchase and
sale shall be as set forth in said offer, except as inconsistent
with the terms hereof. Upon expiration of said twenty (20) day
period, if Seller has not elected to purchase said unimproved
portion of the Real Estate pursuant to the provisions of this
sub -paragraph A, Buyer may sell said unimproved portion pursuant to
the terms of the aforesaid offer. Said sale shall be only to the
offeror named in said offer at a price not less than that set forth.
in said offer.- If such sale and conveyance shall not have been
completed within seven (7).months of the expiration of the aforesaid
twenty:(20) day period, said unimproved portion of the Real Estatc
shall again become subject to the restrictions of this sub -paragraph
A relating to the sale thereof. Seller's rights contained herein Rre
non -assignable.
B. Not withstanding anything herein contained to
contrary, Buyer may disposeof any unimproved portion of the Rea-
Estate free and clear of, and without first complying with, the
visions of sub -paragraph A of this Paragraph 14 in the followin;:
situations:
1. Conveying or granting an interest therein
security for any financing obtained by Buyer, including, but
not limited to, a mortgage, trust deed or a sale and lease-
back arrangement;
2. A reorganization, consolidation or
liquidation of Buyer;
3. A conveyance to any corporation which owns a
majorityof the outstanding shares of stock of Buyer or to any
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corporation a majority of whose outstanding shares of stock
are owned by Buyer; or
4. A conveyance to a corporation, the stockholders
of which in the aggregate, control at least 50% of the out
standing shares of stock of Buyer:..
C. It is mutually agreed and understood that one of the
principal considerations of this Agreement is the representation by
Buyer that the Real Estate is being purchased by Buyer for the
purpose of developing a manufacturing and processing operation which
will create. job opportunities for residents of the greater
Fayetteville area. Accordingly, at such .time when Buyer has at
least three hundred (300) full-time employees at its operations on
the Real Estate, the provisions of sub -paragraph A of this
Paragraph 14 shall automatically terminate forthwith, and any subca-
quent disposal of any unithproved portion of the Real Estate shall be
free and clear of the provisions of sub -paragraph A of this
Paragraph 14 and Buyer shall not be. required to first comply ther-
with. For purposes of this Agreement, the term "full-time empiy:..`
shall mean any personemployed by Buyer for more than 30 hours IT
week for at least 32 weeks out of the then immediately preceding.
weeks.
D. Upon the termination of the provisions of sub-
paragraph A of.this Paragraph 14 pursuant to the provisions ofstc'o-
paragraph C of this Paragraph 14, Seller shall cooperate with Bur
to remove anyobjections: to title of Buyer as to any unimproved
portion of the Real Estate which objection arises in connection with
the provisions of sub -paragraph A of this Paragraph 14. This
cooperation shall include executions by Seller of an appropriate
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waiver or release as may be required by Buyer.
15. This Agreement shall be construed under the laws of the
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AGREEMENT -
State of Arkansas.
16.. This Agreement shall be binding upon and shall inure
the benefit of each of the parties hereto, their successors
and/or assigns.,.
IN WITNESS WHEREOF; the parties have hereunto set their hands
and seals on the day and year first above written.
to
SELLER.
BUYER
CITY OF FAYETTEVILLE, ARKANSAS;
A Municipal Corporation
MAYOR
ARMSTRONG REALTY COMPANY,
An. Illinois Corporation •
ATTEST: •
ibb— Won/2-2r,
CITY •. Q3{ERKL
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ACKNOWLEDGMENT
STATE OF ARKANSAS
SS
COUNTY OF WASHINGTON
On this ! ftday of \NAL -4c11-- 1973, before the
undersigned, 11. Notary Public,duly commissioned, qualified and acting,
within and for the said County and:State, appeared in person the with-
in named, ._j, eC _ ,S 1 `,l1 and. i l:- Cct;.�
Ori to e
personally known, who stated that:they were the ----(1\7,_. and
_L\ Ce.c-ut ' of. the City of Fayetteville, Arkansas,,
a municipal corporation, and were duly authorized in their respective
capacities to execute the foregoing instrument for and in the name and
behalf of said corporation, and further stated and acknowledged that
they had so signed, executed and delivered said instrument for the
consideration, uses and purposes therein mentioned and set forth.:
IN WITNESS WHEREON have hereunto set my hand and official seal
this 15 day of J \ rte.. i,` , 1973.
c t
'Notary Public
My Commission Expires:
(1`A•`q 1ek 7Th
ACKNOWLEDGMENT
STATE OF ILLINOIS
SS
COUNTY.OF COOK
On this 14TH. day of MARCH , 1973, befc
the undersigned, a Notary Puolic, duly commissioner, qualified
,acting, within and for the said County and State, appearedin pe
the within named, John H. Armstrongand William T.
Armstrong to me -to me personally Known, who ed
that they were the President and Secretary
of the ARMSTRONG REALTY COMPANY, an Illinois coy
ration, and were duly authorized in their respective capacities
execute the foregoing instrument for and in the name and behalf of Said
corporation, and further stated and acknowledged that they had so signed,
executed and delivered said. instrument for the consideration, uses and
purposes therein mentioned and set forth.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal
-this 14TH day of MARCH i , 1973.
My Commission Expires:
//Notary
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Public