HomeMy WebLinkAbout120-91 RESOLUTIONr
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RESOLUTION NO. 120-91
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A CONTRACT OF SALE AND
PURCHASE FOR THE PURCHASE OF APPROXIMATELY 20
ACRES OF LAND ON OR ABOUT 2900 CITY LAKE ROAD
FROM EASCO HAND TOOLS, INC. FOR $350,000.00.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to execute a Contract of Sale and Purchase
of approximately 20 acres of land on or about 2900 City Lake Road
from Easco Hand Tools, Inc. for $350,000.00. A copy of the
Contract of Sale and Purchase authorized for execution hereby is
attached hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 28th day of June
e By City C)tkrk
y'!r r
- r
1
•
•
, 1991.
•
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•
CONTRACT OF SALE AND PURCHASE
This Contract of Sale and Purchase ("Contract"), dated
July 1, 1991, by and between Easco Hand Tools, Inc. ("Seller") and
the City of Fayetteville, Arkansas ("Purchaser").
WHEREAS, Seller has entered into a Purchase Agreement for
that parcel of land with improvements and personal property
commonly known as 2900 City Lake Road, Fayetteville, Arkansas, and
WHEREAS, Seller is willing to sell a portion of the Property
as identified and described on Exhibit A ("Property") to the
Purchaser, and Purchaser is willing to buy a portion of the
Property, all pursuant to the terms and provisions hereof,
NOW, THEREFORE, in consideration of the mutual promises
recited in this Contract and other good and valuable consideration,
the receipt and sufficiency of which are hereby expressly
acknowledged, the parties agree as follows:
1. Agreement to Sell and Purchase. Subject to the terms and
conditions hereto, the Seller hereby agrees to sell the
property to the Purchaser, and the Purchaser hereby agrees to
purchase the Property from the Seller.
2. Purchase Price. The total purchase price for the Property shall
be the sum of Three hundred fifty thousand dollars ($350,000)
("Purchase Price").
3. Covenants, Representations and. Warranties
(A) Seller represents and warrants that the following
statements are true and correct and shall be true and correct
on the date of closing and such representations and warranties
shall survive closing:
(i) Seller has and will have full authority to enter into
and carry out the terms and provisions of the Contract and to
execute and deliver all documents which are contemplated by
this Contract, and all actions of Seller necessary to confer
such authority upon the persons executing the Contract, and all
documents which are contemplated by this Contract on behalf of
Seller, shall have been taken.
(8) Purchaser represents and warrants that the following
statements are true and correct and shall be true and correct
on the date of closing and such representations and warranties
shall survive closing:
(i) Purchaser has and will have full authority to enter
into and carry out the terms and provisions of the Contract
and to execute and deliver all documents which are
contemplated by this Contract, and all actions of Purchaser
necessary to confer such authority upon the persons
executing the Contract, and all documents which are
contemplated by this Contract on behalf of Purchaser, shall
have been taken.
4. Closing. The Closing shall occur on July 2, 1991.
5. Closing Procedures.
(A) At Closing the Seller shall execute and deliver, or cause
to be executed and delivered, to the Purchaser or to
Purchaser's nominee: (i) a recordable General Warranty Deed
conveying to the Purchaser or its nominee, title to the Real
Property.
(B) At Closing, Purchaser shall deliver to -Seller a certified
check made payable to Seller for Three hundred fifty thousand
dollars ($350,000).
(C) This transaction shall be closed through the title
company (the cost of which shallbe borne equally by the
parties), and it shall be a condition of Closing that the title
company shall be prepared to issue: (i) at the Buyer's sole
expense, an owner's policy of title insurance on the standard
ALTA Form insuring that Purchaser (or its nominee) has good and
indefeasible title to the Real Property, issued by the title
company in an amount equal to the Purchase Price, subject only
to the standard exceptions and other exceptions approved by
Purchaser, k
6 Prorations and Adjustments. Purchaser assumes and agrees to
pay all assessments for public improvements becoming a lien
after Closing. Utility charges and otheritems of income and
expense (including, without limitation, charges under service
contracts), customarily adjusted, shall be prorated as of the
Closing. The proration of real estate taxes shall be prorated
to date of closing and all installments of real estate taxes
due and payable in 1992 and thereafter shall be the Purchaser's
responsibility.
7. Possession. Possession of the Property shall be delivered by
the Seller to the Purchaser at the Closing.
8. Failure to Close -Default. In the event Purchaser fails to
consummate the transaction contemplated by this Contract in
accordance with its terms for any reason except pursuant to a
right to do so contained herein and except for the Seller's
default, the Seller shall be entitled to all legal and
equitable remedies under the law.
9. Notices. Any notices or other documents required or permitted
to be given under the terms of this contract shall be deemed,
delivered when received thereof to a nationally -recognized
overnight delivery service, whether actually received or not,
addressed to the parties as follows:
If to the Seller: EASCO Hand Tools, Inc.
Attn: George Koenigsaecker
1609 N. Old Missouri Road
Springdale, AR 72764
With a copy to: M. Teri Lynch
665 W. Exchange Street
Akron, Chio 44302
If to the Purchaser:
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
or to such other address as shall be specified by like notice.
10. Sinding Effect. This Contract shall be binding upon and shall
inure to the benefit of the parties hereto and their respective
successors and assigns.
•
11. Entire Agreement. This Contract, including the attached
exhibits, embodies the complete agreement of the parties hereto
with respect to the subject matter hereof, and cannot be
altered, amended, or modified except by their written
agreement.
12. Governing Law. This Contract shall be governed by and
construed in accordance with the laws of the State of Arkansas.
13. Time. .Time is on the essence of this Contract, and each and
every provision hereof.
IN WITNESS WHEREOF, the parties hereto have caused the Contract
to be executed and dated as of the date first above written.
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SELLER: EASCO HAND _.OLS, Inc.
By:
Di - tor of Fi ante
PURCHASER: THE CITY OF FAY 'TTEVIL E, ARKANSAS
2V727,
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LEGEND
• FOUND MON PIN
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A• STONE MARKER
--a EXISTING PENCE
siGISTER, 49.„
ate, e• 1•
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ACERtIPICATICa.
Thi; is to certify thol I hove toms!
Con+pisled 0 'survey of the °bore
described property, AH eosemente.
ono or tnCroochment6 revealed by
Surrey are shown en the plat of stn,
MELVIN L. MILMOLLAND, R.L.S.
ARK.REGISTRATION No.648
•MILMOLLAND COMPANY
ENGINEER{NG 0 SURVEYING
FAYETTEVILLE, ARKANSAS .
.FILING DATA
Covnty,
800X,-'. ._
Pape, . _.
Stale, _
MAY,
Buyer:
Setters.
_EASCO HAND TOOLS, INC.
5115 FAYETTEVILLE COVhTvi WASHINGTON
Starr
Stilt
ARKANSAS *m.Dart JON? 1991
1" •t Jost Jet«o. g _ 1644
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TOTAL P.03
i
RESOLUTION NO. 120-91
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A CONTRACT OF SALE AND
PURCHASE FOR THE PURCHASE OF APPROXIMATELY 20
ACRES OF LAND ON OR ABOUT 2900 CITY LAKE ROAD
FROM EASCO HAND TOOLS, INC. FOR $350,000.00.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to execute a Contract of Sale and Purchase
of approximately 20 acres of land on or about 2900 City Lake Road
from Easco Hand Tools, Inc. for $350,000.00. .A copy of the
Contract of Sale and Purchase authorized for execution hereby is
attached hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 28th day of June
ATTEST:
By:
44)City C rk
1991.
CONTRACT OF SALE AND PURCHASE
This Contract of Sale and Purchase ("Contract"), dated
July 1, 1991, by and between Easco Hand Tools, Inc ("Seller") and
the City of Fayetteville, Arkansas ("Purchaser").
WHEREAS, Seller has entered into a Purchase Agreement for
that parcel of land with improvements and personal property
commonly known as 2900 City Lake Road, Fayetteville-, Arkansas, and
WHEREAS, Seller is willing to sell a portion of the Property
as identified and described on Exhibit A ("Property") to the
purchaser, and Purchaser is willing to buy a portion of the
Property, all pursuant to the terms and provisions hereof,
NOW, THEREFORE, in consideration of the mutual promises
recited in this Contract and other good and valuable consideration,
the receipt and sufficiency of which are hereby expressly
acknowledged, the parties agree as follows:
1. Agreement to Sell and Purchase. Subject to the terms and
conditions hereto, the Seller hereby agrees to sell the
property to the Purchaser, and the Purchaser hereby agrees to
purchase the Property from the Seller.
2. Purchase Price. The total purchase price for the Property shall
be the sum of Three hundred fifty thousand dollars ($350,000)
("Purchase Price").
3. Covenants, Representations and Warranties
(A) Seller represents and warrants that the following
statements are true and correct and shall be true and correct
on the date of closing and such representations and warranties
shall survive closing:
(i) Seller has and will have full authority to enter into
and carry out the terms and provisions of the Contract and to
execute and deliver all documents which are contemplated by
this Contract, and all actions of Seller necessary to confer
such authority upon the persons executing the Contract, and all
documents which are contemplated by this Contract on behalf of
Seller, shall have been taken.
(B) Purchaser represents and warrants that the following
statements are true and correct and shall be true and correct
on the date of closing and such representations and warranties
shall survive closing:
(i) Purchaser has and will have full authority to enter
into and carry out the terms and provisions of the Contract
and to execute and deliver all documents which are
contemplated by this Contract, and all actions of Purchaser
necessary to confer such authority upon the persons
executing the Contract, and all documents which are
contemplated by this Contract on behalf of Purchaser, shall
have been taken.
. ' .
4. Closing. The Closing shall occur on July 2, 1991.
5. Closing Procedures.
(A) At Closing the .Seller shall execute and deliver, or cause
to be executed and delivered, to the Purchaser or to
Purchaser's nominee: (i) a recordable General Warranty Deed
conveying to the Purchaser or its nominee, title to the Real
Property.
(B) At Closing, Purchaser shall deliver to -Seller a certified
check made payable to Seller for Three hundred fifty thousand
dollars ($350,000).
(C) This transaction shall be closed through the title
company (the cost of which shall be borne equally by the
parties), and it shall be a condition of Closing that the title
company shall be prepared to issue: (i) at the Buyer's sole
expense, an owner's policy of title insurance on the standard
ALTA Form insuring that Purchaser (or its nominee) has good and
indefeasible title to the Real Property, issued by the title
company in an amount equal to the Purchase Price, subject only
to the standard exceptions and other exceptions approved by
Purchaser.
6. Prorations and Adjustments. Purchaser assumes and agrees to
pay all assessments for public improvements becoming a lien
after Closing. Utility charges and other items of income and
expense (including, without limitation, charges under service
contracts), customarily adjusted, shall be prorated as of the
Closing. The proration of real estate taxes shall be prorated
to date of closing and all installments of real estate taxes
due and payable in 1992 and thereafter shall be the Purchaser's
responsibility.
7. Possession. Possession of the Property shall be delivered by
the Seller to the Purchaser at the Closing.
8. Failure to Close -Default. In the event Purchaser fails to
consummate the transaction contemplated by this Contract in
accordance with its terms for any reason except pursuant to a
right to do so contained herein and except for the Seller's
default, the Seller shall be entitled to all legal and
equitable remedies under the law.
•
•
9. Notices. Any notices or other documents required or
to be given under the terms of this contract shall be deemed
delivered when received thereof to a nationally -recognized
overnight delivery service, whether actually received or not,
addressed to the parties as tollowss
If to the Seller: EASCO Hand Tools, Inc.
Attn: George Koenigsaecker
1609 N. Old Missouri Road
Springdale, AR 72764
With a copy to: M. Teri Lynch
665 W. Exchange Street
Akron, Ohio 44302
If to the Purchaser:
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
or to such other address as shall be specified by like notice.
10. Binding Effect. This Contract shall be binding upon and shall
inure to the benefit of the parties hereto and their respective
successors and assigns.
1I. Entire Agreement. This Contract, including the attached
exhibits, embodies the complete agreement of the parties hereto
with respect to the subject matter hereof, and cannot be
altered, amended, or modified except by their written
agreement.
12. Governing Law. This Contract shall be governed by and
construed in accordance with the laws of the State of Arkansas.
13. Time. Time is on the essence of this Contract, and each and
every provision hereof.
IN WITNESS WHEREOF, the parties hereto have caused the Contract
to be executed and dated as of the date first above written.
SELLER: EASCO HAND DOLS, Inc,
By:
Di tor of Fi-ance
PURCHASER: THE CITY OF FAY TTEVILJ.E, ARKANSAS
By:
'hi -4-'2049i I 7.3'29
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EASCO-SPRIIGDRLE, PR.
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;ERTIFICATION
No to to certify that I hart to this
completed 4 Survey of the abort
described property, All cosemtnts.
&'d or enCroothmenli revealed by t
warty Ort 1hOwn On tht plot of Sur..
MELVIN h. MiLMOLLANO, R.L.S.
ARK.REOISTRATION No.640
,MlLMOLLAND COMPANY
ENGINEERING & SURVEYING
FAYETTEVILLE, ARKANSAS .
_FILING DATA
County.,_
Son, _a -
Page,
Sayer:
Seller
State, - _
EASCO NAND TOOLS, INC.
OILY !AXETTEVILLE - COVArr WASHINGTON
ARKANSAS °Mt Jt1Nt3 1991
1" •a 3001, ,o/ «0. S - 1E44
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TOTAL P.03
AYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Richard Shewmaker, Economic Development Coordinator
FROM: Jerry E. Rose, City Attorney
DATE: June 25, 1991
RE: Offer & Acceptance Contract/Easco Hand Tools
At your request I have reviewed the attached Contract of Sale
and Purchase. Just some comments:
1) ¶5(A) -conveyance is normally by general warranty
deed subject to recorded instruments and easements,
if any, which do not materially affect the value of
the property. This may not be essential since they
get their title from us and we buy it back
immediately. It's your call but I'd like it better
if we got a warranty deed.
2) ¶5(C) -no real problems. The city normally pays for
the title insurance and your contract has us pay
for only one-half.
3) 16 Proration is normal. I don't see any problems
here. The title insurance company should prepare
all closing documents and we will have to look at
their figures as they are developed.
We usually add the following to our city contracts:
"BUYER ASSERTS AND SELLER HEREBY ACKNOWLEDGES
THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON
THE CITY OF FAYETTEVILLE'S BOARD OF DIRECTORS
APPROVAL OF THIS OFFER OF PURCHASE AND THAT
THE FAILURE OF THE BOARD TO SO APPROVE IT WILL
MAKE ALL PORTIONS OF THIS OFFER NULL AND
VOID."
It's not essential but I'd recommend it.
5) Exhibit A needs, obviously, to accurately described
the approximate 20 acres we are buying.
Other than these minor matters, I can see nothing legally
questionable about the contract. It's short and to the point.
I have also attached a proposed resolution which will just
require the attachment of the offer & acceptance signed by Easco.
JER/cbp
Attachments
To.
r& FA •
YETTEVI LLE
THE CITY OF FAYETTEVILLE, ARKANSAS
TO: The Fayetteville City Board of Directors
FROM: Scott C. Linebaugh, City Manager,"/C
DATE: June 25; 1991
RE: Easco Hand Tools, Inc. & K -D Tool Location
The City of Fayetteville Economic Development division has been in the process of coordinating
the location of a division of Easco Hand Tools, Inc. to Fayetteville for the last two years. Early
in the process, Easco expressed a strong interest in utilizing the vacant Andrew Tower building
and the adjacent acreage, which is located m the Industrial Park -South. The building and
grounds are situated on 48.5 acres. The excessive acreage has always been a problem in
marketing the Andrew Tower building. Throughout the two year negotiation with Easco we
have indicated that the City of Fayetteville would acquire the excess property. We have been
requested to acquire 20.7 acres of land from Easco at $16,900 per acre for a $350,000 lump
sum. City staff recommends acceptance of this agreement with Easco and approval of a budget
adjustment from the Sales Tax Construction Fund ("pay as you go").
The use of "pay as you go" funds has been made possible by the purchase of the Systematics
and KHOG buildmgs. Based on the Board of Directors' approval of this purchase, the $487,500
for engineenng and architecture work on a new police building (scheduled for 1995) will no
longer be needed. Therefore, sufficient excess sales tax funds should be available for the
purchase of the industrial park land.
The current schedule for "pay as you go" projects and sales tax revenue will allow for the
purchase of this land. But, in order to keep funding intact for 1992 and beyond some shifting
of funds will be required. This shifting of funds is made possible by the fact that some projects
have expenenced delays in start-up and in completion. However, the total funding for "pay as
you go" projects will be relatively unaffected.
If you have any questions concerning this matter, please feel free to contact me. Thank you.
SCL/bts
113 WEST MOUNTAIN 72701 501 521.7700
E
TTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: City Board Members
From:
Date: June 26, 1991
Richard M. Shewmaker, Economic Development Coordinator
Subject: Benefits from location of Easco
in Fayetteville
In March, 1989, over 2 years ago, the City of Fayetteville Economic
Development Division began an effort to locate Easco Hand Tools, Inc.
in our community. Specifically, the effort was made to locate the
company in the Andrew Tower Building in the Southern Industrial Park.
The contact came from a United Way meeting in Dallas, Texas when
Director Shell Spivey and Easco Personnel Manager Carl Hackelton met.
Now we are able to proudly announce the location of a division of a
Fortune 500 company within our community. The K -D Tool Company is
acquiring the Andrew Tower Building in our Southern Industrial Park.
The property consists of two large buildings and 48.5 acres of land.
The excessive acreage has always been a problem in marketing the Andrew
Tower Building. Throughout the two year negotiation with Easco we have
indicated that the City of Fayetteville would acquire the excess
property. The company has requested we acquire from them a surplus
tract. The surplus property contains 20.7 acres and is for sale for
$350,000 or $16,908 per acre. K -D Tools expects to employ within a
three year period 500 persons with investment of $30,000,000.
Benefits to be derived by K -D tool locating in Fayetteville are as
follows:
1. impact of 500 Jobs in Fayetteville (U. S.
Aggregate Personal Income
Retail Sales
New Retail Establishments
Non -manufacturing Jobs
Population Increase
Family Units
School Enrollment
Chamber of Commerce)
$12,859,130
$ 9,751,190
45
420
1,335
675
405
•
•
Revenue Generation based on $30,000,000
County General Fund 4:0 mills
County Road Fund 1.3 mills
County Library Fund 1.0 mills
Fayetteville School District 36.2 mills
Fayetteville Fireman Pension .05 mills
Fayetteville Police Pension .05 mills
Fayetteville General Fund 2.2 mills
Total Revenues
investment
$ 24,000
7,800
6,000
217,200
3,000
3,000
13,200
$ 274,200
3. Road construction benefits accruing to the City of
Fayetteville as a result of this project are as follows:
a. Arkansas„Highway.-156 is under construction from the
Industrial'.Park to US.Highway 71 for a distance of 1.8
miles. Totalproject cost is $1,274,217 and the city
share of this prOect_i-s -$126,155.
b. A new road running from the intersection of Commerce and
Armstrong due west to Arkansas Highway 156 has been
partially approved. AIDC has provided $160,000 or 20 %
of the estimated $800;000 construction cost. The
Arkansas Highway Commission will be meeting or July 10th
to consider providing $640,000 or 80% toward to
construction of the project.
The location of K -D Tools, Inc. in Fayetteville has many more positive
impacts than mentioned above. The Company has already begun
subcontracting with our existing businesses and will play a major role
in the United Way Campaign as well as aid programs to the public school
system.