HomeMy WebLinkAbout52-79 RESOLUTION•
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RESOLUTION NO 5:=Q —
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A MODIFICATION OF THE CITY'S PARTICIPATION AGREEMENT
WITH THE FAYETTEVILLE INDUSTRIAL DEVELOPMENT CORPORATION.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
MiCROFILMED
DA TEAUG 8 379
That the Mayor and City Clerk are hereby authorized and
directed to execute a modification of the City's Participation
Agreement with the Fayetteville Industrial Development Corporation.
A copy of the modification authorized for execution hereby is
attached hereto marked "Exhibit A" and made a part hereof.
PASSED AND APPROVED this 6-n-, day of 1979.
Att./.'et
. •
ett,
ERK
APPROVED:
ct)t)-x-t-Ne
EXHIBIT A
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MODIFICATION OF PARTICIPATION AGREEMENT
This agreement executed this 5n) day of
1979, by and between the City of Fayetteville, Ar ansas,
designated herein as "City" and the Fayetteville Industrial
Development Corporation, designated herein as "Company".
WHEREAS, the parties have previously executed a Participation
Agreement dated August 4, 1969, a copy of which is attached
hereto and made a part hereof; and
WHEREAS, the parties desire to modify said agreement
to clarify certain provisions thereof.
NOW, THEREFORE, the City and the Company mutually agree
as follows:
(1) That the Participation Agreement marked "Exhibit A"
attached hereto and made a part hereof is hereby modified by
adding the following paragraphs:
6. The Company shall share in the proceeds from the sale
of lots located in real estate described in Exhibits A, B, and
C in direct ratio to the investments of the Company and the City
until such time as the outstanding bonds issued by the Corporation
to acquire said real estate have been retired.
(b) The Company shall use its share of the proceeds from
the sale of each and every lot located in real estate described
in Exhibits A, B, and C to first pay all accrued interest on said
outstanding bonds and with any remaining amount of said proceeds
to be applied to reduce outstanding principal.
(c) No additional costs related to the real estate described
in Exhibits A, B, and C shall be allowed the Company by the City.
(d) The Company and the City agree that as of December
31, 1978, the unpaid principal on the Company's outstanding bonds
was one hundred thousand three hundred eleven dollars ($100,311.00)
and that interest on said bonds has been paid in full to said
date.
7. The City agrees that proceeds from future Industrial
Park land sales where the Company is not entitled to a share in
the proceeds shall be used for industrial development purposes and
for maintenance and operation of the Industrial Park. The Company
agrees to utilize its existing assets and assets hereafter acquired
for industrial development purposes and for expansion of
the Industrial Park. The Company agrees to reimburse the City by
separate agreement for each project, for the cost of constructing
future streets, water lines, sewer lines, and drainage facilities
in the Industrial Park when said construction is financed from
City funds above and beyond any grants which may be received.
IN WITNESS WHEREOF, the parties have executed this Modification
on the day and year first above written.
CITY OF FAYETTEVILLE, ARKANSAS
Eel\
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CITY/0 ERKi''
ATTEST:
atte)°"2"4
SECRETARY
BfAYCD: 17Wit‘e\C
FAYETTEVILLE INDUSTRIAL
CORPORATION
By VIV/e//0
Vice PRESIDENT
•••••
JO. Plc
MODIFICATION OF PARTICIPATION AGREEMENT
This agreement executed this Srt.-P day of
1979, by and between the City of Fayetteville, Arkansas,
designated herein as -City" and the Fayetteville Industrial
Development Corporation, designated herein as "Company".
WHEREAS, the parties have previously executed a Parti -c:.':
Agreement dated August 4, 1969, a copy of which is att.:J.:led
hereto and made a part hereof; and
WHEREAS, the parties desire to modify said agreement
to clarify certain provisions thereof.
NOW, THEREFORE, the City and the Company mutually agree
as follows:
(1) That the Participation Agreement marked "Exhibit A"
attached hereto and made a part hereof is hereby modified by
adding the following paragraphs:
6. The Company shall share in the proceeds from the sale
of lots located in real estate described in Exhibits A, B, and
-11
cl EXHIBIT A
C in direct ratio to
the investments of the Company and the City
until such time as the outstanding bonds issued by the Corporation
to acquire said real
(b) The Company
the sale of each and
estate have been retired.
shall use its share of the proceeds from
every lot located in real estate described
C tO first pay all accrued interest on said
in Exhibits A, B, and
outstanding bonds an
d with any remaining amount of said proceeds
to be applied to reduce outstanding principal.
(c) No additional costs related to the real estate described
in Exhibits A, B, and C shall be allowed the Company by the City.
(d) The Company and the City agree that as of December
31, 1978, the unpaid principal on the Company's outstanding bonds
was one hundred thousand three hundred eleven dollars ($100,311.00)
and that interest on said bonds has been paid in full to said
date.
7. The City agrees that proceeds from future Industrial
Park land sales where the Company is not entitled to a share in
the proceeds shall be used for industrial development purposes and
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PARTICIPATION AGREEMENT ' e
en , e.. ,. 4> ik. day of
THIS AGREEMENTAn
Is d tered.into on this
4 , 195R, by ad.between th'e. CITY OF FAYETTEVILLE,
ARKANSAS, desisnated hereinas CITY and THE FAYETTEVILLE 'nun.-
RIAL DEVELOPMENT CORPORATION., desinnatzd herein as COMPANY;
WHEREAS, the COMPANY is the :owner of certain real estate
&situated in Washington County, Arkansas, described on Exhibits A
and B. appended hereto and made a part herecf as fully as if set
out herein word for word, and is the owner by assignment from the
Fayetteville Chamber of Commerce of the Option to Purchasethe real
estateldescribed on Exhibit C appended hereto and made a part hereof
Hluillbyjbhis reftrence; and,
i WHEREAS, the CITY is the owner of certain real estate situated
in Washington County, Arkansas, described on Exhibit 0 appended
hereto and made a part hereof as fully as if set out herein word
for word; and,
WHEREAS, the hest use to be made of the real estate described
on Exhibits A, B, C, and 0 is an industrial park for the City of
Fayetteville, and the develOpment of said real estate into an in-
dustrial park will promote the general welfare of the citizens of
Fayetteyille. Arkansas; and, '
WHEREAS, the CITY and the COMPANY desire to develop an industrial
park -for the City of Fayetteville, Arkansas, and to make available
the real estate described on Exhibits A, B, C, and 0 for such an
industrial park; and,
WHEREAS, the crry has made application for and expects to
receive Federal Grant Funds for use in the development of the said
industrial park from the Economic Development Administration and
Ozarks Regional Commission; now,
THEREFORE, the CITY and the COMPANY mutually agree as follows:
1. The COMPANY has purchased the real estate described on
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Exhibits A and B for the sum of 52520000 and'hereby agrees to convey
title of said real estete to CITY for 252,000 less $150,8D0 COMPANY
investment in industrial park for a total net cost to CITY of S93,200
The COMPANy shall assion its option to purchase real estate described
In Exhibit C to CITY.
2. The CITY shall acquire the real estate described in Exhibit
C and set aside and develop into an industrial park the real ostate
described in Exnibits A, 112 C, and b?, payino from said Federal Grant
Funds and available CITY funds the ccst of acquiring said real estate
described in Exhibit C and the cost of planning and.developing said
park. The CITY shall commence the planning and development of said
real estate into an industrial park as soon after the execution of
this agreement as may be practicable and shall 'continue with said
planning and development uninterrupted until the same shall be com-
pleted. The CITY shall have the absolute end unconditional direction
and control over the real estate described un Exhibits
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D and the planning and development of the industrialpark.
3. The CITY shall seil all of the industrial sites and/a/riots
disclosed by the plot plan and/or subdivision plat of the in-
E. CI and
rarh
r their fair and reasonable market value as sson
after the completion of the industrial park as may be practicable.
The proceeds fro; tha sale of all industrial sites and/or lots
lecated.on the real estate described on Exhibit 0 shall be retained
in full by the CITY. Te CITY and the CUPANY shall share in the
proceeds from the sale of each and every lot located in real estate
described in Exhibits A, B. and C in direct ratio to the investments
of the COMPANY and the CITY. The COMPANY's investment is a15P,000
plus any anount contributed after ths date of this agreement and the
CITY's investment is the amount of CITY funds used to develop the park
which will be $250,O00, plus or minus.any funds added or subtracted
during the development of the park.
4. The CITY and the COMPANY shall by mutual agreement
establish the prices at which the land is to be.sold. and the COM-
PANY shall use its best efforts to assist the. CITY in sell in the
industrial sites and/or lots as disclosed by the plot plan and/or
subdivision plat of the industrial park.
5. The obligation of the CITY under this agreement is subject
to the condition precedent that the CITY shall receive the Federal
Grant Funds described hereinabove.
IN WITNESS WHEREOF, the parties have hereunto set their hands
In original duplicates on the date hereinahove first written.
ATTEST:
ATTEST:
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CITY OF FAYETTEVILLE
FAYETTEVILL17,4IN3USTRIAL
CORPOP.A9V/
DEVELOPMENT
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EXHIBIT "A"
A part of the NW 1/4; and a part of the NW 1/4 of the
SW 1/4 of Section 26, Township 16 North, Range 30 West,
being more particularly described as follows: Beginning
at a point in the public road which is 4 chains South
of the NW corner of Section 26, and running thence
South 51 chains to a point which is 5 chains North of
the SW corner of the NW 1/4 of the SW 1/4 of Section
26; thence East 13.33 chains; thence North 990.0 feet
to the North line of the SW 1/4 of Section 26; thence
East 7.76 chains along said North line of the SW 1/4
to a point in the public road; thence North with
said road 35.94 chins; thence West with said road
21 chains to the place of beginning', containing 95.6
acres, more or less.
EXHIBIT "B"
Part of the NE 1/4 of the NW 1/4; part of the NW 1/4
of the NE 1/4; part of the NE 1/4 of the NE 1/4; part of
the SE 1/4 of the NW 1/4; the SW 1/4 of the NE 1/4; part
of the SE 1/4 of the NE 1/4; part of the NE 1/4 of the
SW 1/4 part of the NW 1/4 of the SE 1/4; part of the
NE 1/4 of the SE 1/4, all in Section 26; and part of the
NW 1/4 of the SW 1/4 of Section 25, all in Township
16 North, Range 30 West, particularly described as
follows: Beginning 21 chains East and 13.66 chains
South of the NW Corner of Section 26; thence South
21.44 chains to the South line of the SE 1/4 of the NW
1/4 of Section 26; thence East 435.5 feet along said
South line of the SE 1/4 of the NW 1/4 to an existing
fence; thence South 3057. East 1022.0 feet with said
fence to the center line of a public road; thence South
71°53' East 321.1 feet along said road centerline to
the intersection of an old public road running North
83014' East; thence North 83°14' East to the channel of
the West Fork of White River; thence in a Northwesterly
direction with the channel of the river to a point
1.44 chains North of the South line of the NE 1/4 of
the NE 1/4 of Section 26; thence West 39 chains to the
point of beginning.
OPTION TO PURCHASE LAND
-KNOW ALL MEN BY THESE PRESENTS:
That I, Della Anne Gustafson, in consideration of One Dollar (81.00)
and other' considerations paid by thc Fayetteville Chamber of Commerce
of Fayetteville, Arkansas, the receipt whereof is hereby acknowledged,
hereby, for ourselves, our heits; executors and administrators, agree
to sell and convey to said Fayetteville Chamber of Commerce, or assigns,
for the consideration hereinafter mentioned, the following described
properties located in Washington County, Arkansas, to -wit:
Part of the South half of the Southwest Quartor of Section
part of the Nerth half of the North half or "“ition 26, in
Township 16 North, Range 30 Kest, and more particularly described
as follows: Beginning 1.37-1/2 chains North of a point nine -
tenths of a chain East of the Southwest Corner of the Northeast
Quarter of the Northeast Quarter of Section 26; thenCe West 40
chains; thence North 14 1/2 chains; thence West 2.40 chains;
thence North 4.12 1/2 chains to the Section line between Section
23 and 26; thence continuing North 12.80 chains to the Town
Branch; ,thence North 80°'Enst 6.61 chains; thence North 27 1/2°
Fast 6.27 chains; thenceNorth 530 East 6.27 chains; thence
North 530 East 1.51 chains; thence East '6.50 chains to the main
channel of West Fork of_White River; thence with the meanderings
of the main channel of said river to the place of beginning,
less and except the following parcels heretofore conveyed by
• J. M. Grimes to the Fayetteville Water Company, to -wit: Reginnin
in the middle of the West Fork of White River on the North line
of Section 26 and running West 60 feet; thence South IS° East
165 feet.; thence West 14e feet; thence South 250 feet; thence
North SO° East 350 feet to the middle of the river; thence North
with the middle o. the river to the place of beginning; also
beginning 14S feet Wst of the Northeast corner of the Northeast
Quarter of the Northwest Quarter of Section 26 and running thence
West 75 poles: thence South 30 feet; thenCC EaSt 75 ocies; thence
North 30 fe-r to tbe place ef b,5ginningr, ter a roadway from mai::
county road to the small lot last above described, and containing
In all 100 acres, more or less. Also excepting land described in
a deed from David C. Coward and Emma C. Coward, his hire, to
C. W. Appleb'y; J. C. White and J. H. 11c1lrov, as commissioners
of Water improvement District No. 1 of the City of Fayetteville,
• Arkansas, to -wit: A part of the Southcaat t':uarter of the South-
west Quarter of Section.23 and a part of the Northeast Quarter .
of the Northwest Quarter of Section 20, Towhip 10 North oil.
Range 30 West, and more particularly descried as follows, to -wit:
Beginning at n point in the middle of the rork of'White River
where the section line between Sections 23 and 26 cros-:es said
river, suntiosed to he the quarter section corner between said
sections, and running, thence West 00 feet; thence Senth !S° laast
165 feet; thence West 14S feet: thence North 335 feet; thence
East to the middle of the Channot of zne WoJt Fcrk or 'vhito River:
thence up said river following the meahdirings oF the same ti) the
piace of beginning contalning three-101:rth (371) of an acre,
he the same mere or •and containi:ft In all the land hereEr
conveyed 97 acres, MOFQ or less.
The c,,hdideratic%n to r
or
S. .n:; shall h. bolt
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is obrioa may hc accep!
!LOt::,ind
- taid L”.
O(
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or assigns, after January 1, 1969, and not later than. Septbmber 30,
1969 by written notice to that effect. Conveyance shall be made
within 30 days after such acceptance by a Warranty Deed conveying
clear title free from all encumbrances; Provided that the said
Fayetteville Chamber of Commerce, or assigns, shall give to the
undersigned 10 days written noticc of the time when such deed shall
bc delivered. All notices, tenders, and deliveries hereunder shall
be served and made to the undersigned at 1501 Miracle Mile Drive,
Apartment 1024, Tucson, Arizona, 85705.
In witness whereof I,have hereunto set my hand and seal this
.1 ft day of //lLtrk. , 1969.
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ACKNOWLEDGMENT
STATE OF ARIZONA)
)ss.
COUNTY OF PIMA )
BE IT REMEMBERED, That on this day came before the undersigned, a .
Notary Public within and for the County aforesaid, duly commissioned
and acting; ./12-7.CLA .s.v.1,-E (7 Criii7to me well lnown
as the Seller in the foregoing eption Tn PuTFTace Land, and stated
that• she had executed the same for the consideration and purposes
therein mentioned and set forth.
Witness my hand and seal as such Notary Publi this
of , 1969.
' My Commission expires:
Cotjsirn Exp
cs Sen. 15. in.
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EXHIBIT "D"
A part of the Northwest Quarter (NW 1/4) of the Northwest
Quarter (NW 1/4) of Section Twenty-six (26) in Township
Sixteen (16) North of Range Thirty (30) West described as
follows: Beginning at the Northwest corner of Section
Twenty-six (26) and running thence East along the North
section line of Section Twenty-six (26), Seven Hundred
Thirty-five (735) feet; thence South Two Hundred Seventy
(270) feet to the Northright of way of the county road;
thence West along the North right of way of the county
road Seven Hundred Thirty-two (732) feet; thence North
along the West section line of section line of Section
Twenty-six (26), Three Hundred (300) feet to the point of
beginning, containing Five (5) acres, more or less.
(2) A part of the Southwest Quarter (SW 1/4) of the Southwest
Quarter (SW 1/4) of Section Twenty-three (23), in Township
Sixteen (16) North, of Range Thirty (30) West described as
follows: Beginning at the Southwest corner of Section 23
and running thence East along the South section line of
Section 23, 1221 feet; thence North 1320 feet, thence
West along the quarter section line 1221 feet; thence
South along the West section line of Section 23, 1320
feet to the point of beginning, containing Thirty-seven
(37) acres, more or less.
A part of the Northwest Quarter (NW 1/4) of the Southwest
Quarter (SW 1/4) of Section Twenty-three (23) in Township
Sixteen (16) North, of Range Thirty (30) West described
as follows: Beginning at the Northwest corner of the
Northwest Quarter (NW 1/4) and running thence East Seven
Hundred Twenty (720) feet; thence South One Thousand Three
Hundred Twenty (1320) feet; thence West Seven Hundred
Twenty (720) feet; thence North One Thousand Three Hundred
Twenty (1320) feet to the point of beginning, containing
Twenty-two (22) acres, more or less.
(4) A part of the East half of the Southwest Quarter of Section
Twenty-three (23), in Township Sixteen (16) North, of Range
Thirty (30) West, described as follows: Beginning at the
Northwest corner of said Eighty acre tract, and running,
thence East Two Hundred Ninety (290) feet to the West line
of a tract now owned by the City of Fayetteville; thence
South along the West line of said tract Seventeen Hundred
Sixteen (1716) feet, more or less, to the middle of the old
creek bed of Town Branch; thence Westwardly with the
meanderings of the creek bed of the Town Branch to the West
line of said Eight acre tract; thence North with said line
Seventeen Hundred Twenty-five (1725) feet, more or less, to
the point of beginning, containing Eleven and Forty-three
Hundredths (11.43) acres, more or less.
Part of the East half of the Southwest Quarter of Section
Twenty-three (23), in Township Sixteen (16) North, of Range
Thirty (30) West, beginning at a point four chains and
twenty-six feet East of the Northwest corner of said Eight
acre tract, and running South One Hundred and four rods, more
or less, to the Town Branch; thence down said branch with
its meanderings in a Northeasterly direction to a point
which is six and one-half chains due West of the middle of
the channel of the West Fork of White River; thence due
East six and one-half chains to the middle of the channel
of the West Fork of White River; thence down the river,
following the meanderings of the middle of the channel to
the North line of the said Eighty acre tract; and thence
West Forty-one rods and Thirteen and Six Tenths (13—.6)
feet to the place of beginning, containing Twenty-three
acres, be the same more or less.
(3)
•(5)
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GADDY
& COMPANY
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MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
FAYETTEVILLE, HARRISON, LITTLE ROCK. BATESVILLE, ARKANSAS: ST. THOMAS, US VIRGIN ISLANDS
PHONE 501/443-3401 Pp. BOX 309 sum 401 ONE WILROY PLAZA FAYE I 1hVIIIE ARKANSAS 72701
BOB L. GADDY. C1'A
RICHARD M. ARDEMAGN1. CPA
RONALD M KUPER& CPA
GARY L GREEN. GPA
TERRY C. BELLORA, CPA
PUN P. COBB. CPA
RONALD D. LEWELLYN, CPA
A. EUGENE CARTER. CPA
JOHNNY 13. MITCHUM, CPA
JACK M. VOLKAMER, IR.. CPA
DANIEL1. FLYNN CPA
LEWIS D. YARBOROUGH. CPA
March 19, 1979
Don Grimes
City Manager
City of Fayetteville
Fayetteville, AR 72701
RE: Industrial Park Fund
Dear Don:
Regarding the participation agreement with the Fayetteville Industrial Corporation
and our conversations with Dale Christy, I have made an accounting determination
based on the following assumptions.
)
The City of Fayetteville fully intended to reimburse the entire
cost of the purchase of the Industrial Park land, including Bond
interest to the Industrial Corporation.
2) The City does not intend to continue to pay the participation
required on land sales once the bond issue of the Industrial
Corporation has been fully retired.
3) No additional expenses.of the Industrial Corporation, in relation
to this land, are to be reimbursed.
4) Since the EDA Grant was used in accordance with their requirements
and has been audited by EDA, they will have no interest in the final
determiniation of this matter.
The accounting result of this approach will be to increase the Industrial Park
liability to the Industrial Corporation by $80,540 and increase the asset account,
land inventory, by a corresponding amount. The increase in land cost will reduce
net income of the Industrial Park for the year ended December 31, 1978 by $9359.
If the following is in agreement with your understanding, I would submit that the
following steps be taken.
1) A new agreement be drawn between the Industrial Corporation and the
City stating that:
A) The city will continue to pay participation to the Industrial
Corporation on applicable land tract sales only until the bond
issue of the Corporation has been retired.
B) That no additional cost relating to this purchased land will be
allowed.
C) That all participation payments made to the Corporation will be
used to first pay all accrued interest and any any remaining amount
to reduce principle.
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D) That the approximate amount at December 31, 1978 is $100,311 of
principle and interest is paid to that date.
2) That City board approval of this agreement be received.
I hope 1 have been able to clearly set out our understanding of this matter. I
would be happy to further review this matter with you or the board.
Cordially,
GADDY & COMPANY
Terry
Partne
tg
Bellora
GADDY&COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
F
FAYETTEVILLE CHAMBER OF COMMERCE
March 28, 1979
Mr. Donald Grimes
City Manager
City of Fayetteville
Fayetteville, AR 72701
Dear Don:
I reviewed the letter from Gaddy & Company concerning the
Industrial Park Fund and see no problem in following this line
of thinking. I would like to have a commitment made in any new
proposed contract that additional proceeds the City receives from
the sale of Industrial Park land would be earmarked for future
use in the expansion of this area, primarily in the area of
water and sewer extensions and street improvements.
I am enclosing a revised recap of Industrial Park Distributions,
reflecting the amount of participations due the FIDC as opposed
to those paid to date. The net result of this recap shows the
City owing the FIDC a balance of $27,239.68. This is a change
from the recap I gave you March 5, reflecting the fact that I
am herewith returning the last check tendered by the City since
we cannot accept it with the notation as a final payment.
I'll appreciate your processing whatever agreements necessary so
that we can get this matter brought up to date as soon as
possible.
Sincerely,
R. Dale Christy
President
RDC:ajf
Enclosure
123 WEST MOUNTAIN
• P.O. BOX 4216 • PHONE 501-521-1710
FAYETTEVILLE, ARKANSAS 72701
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RECAP - Industrial Park Distribution
March 28, 1979
Participation Participation Over
Date Sale To: Due Paid (Under)
9-18-72 R/P Electroplating $ 1,585.26 $ 1,585.26 $ -0-
3-30-73 Armstrong Bros Tool 45,425.00 45,425.00 -0-
4-06-76 Bargo Engineering 3,432.32 3,432.32
8-19-76 Packaging Specialties -0- 2,658.27 2,658.27
4-01-77 R/P Electroplating 1,932.83 1,932.83 -0-
10-18-77 Hackney Bros Body Co 36,732.00 36,732.00 -0-
4-10-78 L. A. Brush -0- 8,668.00 8,668.00
9-20-78 American Air Filter 14,654.00 14,654.00 -0-
9-20-78 Robertson Oil Co -0- 2,912.00 2,912.00
12-27-78 Warren Tool Co 16,392.27 16,392.27 -0-
12-27-78 Bargo Engineering -0- 136.73 136.73
2-26-79 Norris Industries 45,047.00 (45,047.00)
$161,768.36 $134,528.68
Net Due FIDC from City of Fayetteville $27,239.68