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05-01 RESOLUTION
RESOLUTION NO. 5-01 A RESOLUTION APPROVING AN OFFER AND ACCEPTANCE CONTRACT BETWEEN THE CITY OF FAYETTEVILLE AND ROSIE DORSEY, ROWIE HOWARD, WILLIAM BARKER AND ALICE McCLELLAND FOR THE PURCHASE OF 18.88 ACRES OF LAND OFF HUNTSVILLE ROAD IN THE AMOUNT OF $151,000 PLUS ASSOCIATED CLOSING COSTS WHERE APPLICABLE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves an Offer and Acceptance Contract between the City of Fayetteville and Rosie Dorsey, Rowte Howard, William Barker and Alice McClelland for the purchase of 18.88 acres of land off Huntsville Road in the amount of $151,000 plus associated closing costs where applicable. A copy of the contract is attached hereto marked Exhibit "N' and made a part hereof. PASSED AND APPROVED this 16th day of January , 2001. APPROOnVED: By: l, a!(/0e) n� ATTEST: By: a Heather Woodruff, City Charles D. Coody, Mayor NAME OF FILE: CROSS REFERENCE: Date Contents of File Initials No O/ ta4 . � 49 .. S- 4 / a ./.?-1, etaelaz 'J� r e (S.1 _/ Q rel id,�'�#me, 1 4 21 /DeL/V-d id 1 r I a ° e rliket /I-/2an _am:4e / ,, 7-,-d/ /.mac, s-.4„,,,. �0,„ \�") %u�"� /1. % t ✓ / 4.' i L, - /�O _rte O -//tib I -.5-D/ A',An o" .��. liter 4 id / ..il/,,�F. f/J2n�u> or p ) /-160/ /14,7Y ,/ll e_,//A- \Sa- -3--) /-25-6/ i_n is 0-70-, ( _- ,e -a -o/ ,‘„mc)). -/a/4,,,,,47.64../0 409 'Star 4, d y RESOLUTION NO. 5-01 Oa 6E .1t51 A RESOLUTION APPROVING AN OFFER AND ACCEPTANCE CONTRACT BETWEEN THE CITY OF FAYETTEVILLE AND ROSIE DORSEY, ROWIF HOWARD, WILLIAM BARKER AND ALICE McCLELLAND FOR THE PURCHASE OF 18.88 ACRES OF LAND OFF HUNTSVILLE ROAD IN THE AMOUNT OF $151,000 PLUS ASSOCIATED CLOSING COSTS WHERE APPLICABLE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves an Offer and Acceptance Contract between the City of Fayetteville and Rosie Dorsey, Rowie Howard, William Barker and Alice McClelland for the purchase of 18.88 acres of land off Huntsville Road in the amount of $151,000 plus associated closing costs where applicable. A copy of the contract is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 16th day of January , 2001. ATTEST: ByG/.l.%� Heather Woodruff, City Cl APPROVED: ,_ !) By: LA arta-, Charles D. Coody, Mayor • ~ EXHIBIT A OFFER AND ACCEPTANCE CONTRACT 1. The City of Fayetteville, Arkansas, a municipal corporationt, hereinafter referred to as the Buyer, offers to buy, subject to the terms and conditions set forth herein, the following described property: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, the Buyer shall pay for the property at closing, the total and cash payment of $151,000. 3. Contingent Earnest Money Deposit: The Buyer herewith tenders a check for $7,550 to Gary Boyle of Lindsey & Associates, Inc., agent for Rosie Dorsey, Rowie Howard, William E Barker, and Alice McClelland, as tenants in common, each with an undivided 25% interest, hereinafter referred to as the Seller, as earnest money, which shall apply on the purchase price. This offer to purchase is contingent upon approval of the City Council of the City of Fayetteville, Arkansas, and, if they do not so approve, the earnest money deposit will be returned to the Buyer by the Seller. If title requirements are not fulfilled or the Seller fails to fulfill any obligations under this contract, the earnest money shall be promptly refunded to the Buyer. If the Buyer fails to fulfill his obligations under this contract or after all conditions have been met, the Buyer fails to close this transaction, the earnest money may, at the option of the Seller, become liquidated damages to the Seller. Alternatively, the Seller may assert legal or equitable rights which it may have because of breach of this contract. 4. Conveyance will be made to the Buyer 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 Seller 5. The Seller shall fumish a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the Buyer. Buyer and Seller shall equally share in the cost of said title insurance policy. 6. Seller agrees to allow Buyer, if Buyer so desires, at Buyer's expense, to survey the property. Seller 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 rn the satisfaction of the Buyer X 7. Taxes and special assessments due on or before closing shall be paid by the Seller. Insurance, general taxes, ad valorem taxes, special assessments and w rental payments shall be prorated as of closing. �. • OFFER AND ACCEPTANCE CONTRACT Page 2of5 8. The closing date is designated to be 30 days after approval of this offer to purchase by the City Council of the City of Fayetteville, Arkansas. If such date of closing falls on a weekend or holiday, it will be held the following working day. 9. Possession of the property shall be delivered to the Buyer on the date of closing. 10. Seller hereby grants permission for the Buyer or its employees or designates to enter the above described property and improvements for the purpose of inspection and/or surveying. 11. All fixtures, improvements and attached equipment are included in the purchase price. 12. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the Seller. 13. eller shall d lose to Buy any and a environmenta - ards h actual o -dge. Up - - cepta all condi • - d t- an. • cce - ance, -uyer - e eq eo hall sh onmental h or dete • ,a testm• •r the exi envir• -ntal haz Sel is e sense. s h envir ssociated • or 1 nd S ce of en be kn the er ternati and Sell ns Ily the ds. Sho d, S dis :uye shall in • • is of the exist cure yer hich Sell this O er an all ce of at re elle' sha • etion, mfy Buyer a • •1 uc may all cos ntal haz- said cure. SEE ATTACHED GENERAL ADDENDUM #4TBOY-1LSISV-OOW01 E • 14. This agreement shall be governed by the laws of the State of Arkansas. 15. This agreement, when executed by both the Buyer and the Seller shall contain icy %9' the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous Jeji agreements, representations and understanding with respect to such matters,4f[ and no oral representations or statements shall be considered a part hereof. 'I 16. This contract expires, if not accepted on or before the 15th day of January, 2001. 17. NOTICE: BUYER ASSERTS AND SELLER HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO BUYER OF THE $7,550 EARNEST MONEY DEPOSIT. M a OFFER AND ACCEPTANCE CONTRACT Page 3 of 5 SELLER: Rosie Dorsey %'r uni ga-mgt Rowie Howard Welham E. Barker Alice McClelland AGENT OR WITNESS: Boyl � a-61-7 Lindsey Associates, Inc. � Y BUYER: City of Fayetteville, Arkansas, a municipal corporation Fred Hanna, Mayor tatedel eather Woodruff, City Cleric' Willie Dorsey Elmer Howard DATE: /a a m O Date: / •2 p ••400 Date: niPka Date: 0/oak. OFFER AND ACCEPTANCE CONTRACT Page 4 of 5 EXHIBIT "A" PROPERTY DESCRIPTION EXHIBIT A Beginning at a point thirty (30) feet South of the Northwest corner of the East - half (E%) of the Northeast Quarter (NE%) of Section Twenty-two (22), Township Sixteen (16) North of Range Thirty (30) West of the 5th P.M., thence East 165 feet; thence South 04° 00' 00" East 268 feet; thence East 60 feet; thence South 04° 00' 00" East 65 feet; thence South 12° 35' 00" East 255 feet; thence South 85° 20' 00" East 221 feet; thence South 01° 37' 49" West (Deed says South) - 1301 feet to the centerline of the old (and abandoned) P. & G E Railroad right of way; thence North 85° 58' West along said centerline (Deed says West) - 525.37 feet (Deed says 519 feet), more or less, to the West line of said 80 acre tract; thence North 01° 08' 20" East (Deed says North) - 1863 feet to the Point of Beginning and containing 18.88 acres, more or Tess. SIGNED FOR IDENTIFICATION: SELLER: Ar £foie,gente2eller' BUYER. The City of Fayetteville, Arkansas, a municipal corporation BY: tnna, Mayor R f OFFER AND ACCEPTANCE CONTRACT Page 5 of 5 STATE OF ARKANSAS COUNTY OF WASHINGTON ACKNOWLEDGMENT ) ) ss. BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Rosie Dorsey and Willie Dorsey, wife and husband, Rowie Howard and Eimer Howard, wife and husband, William E. Barker and Judy Barker, husband and wife, and Alice McClelland, a single person, to me well known as the Grantors of the foregoing instrument, and who stated and acknowledged that they had executed the same for the consideration and purposes therein mentioned and set forth. WITNESS my hand and seal on this day of fefn her 2000. MY COMMISSION EXPIRES: *3A 3 OFFICIAL SEAL NOTARY PUBLIC 1. Masl�ir; tbwi Copyright Addendum Lindsey & Associates, Inc. 'Me Bring Great 2000 Neighbors Together' Arkansas "FM0 RAEALLTORS ' REALTOR® Page 1 of 2 (Rev. 6100) iation Form Regarding Serial Number: 4TBOY-1LSISV-0OW01 the Real Estate Contract (Form Serial Number CITY OF FAYETTEVILLE ) dated (month) DECEMBER (day) 12 (year) 2000 between the Buyer, CITY OF FAYETTEVILLE ARKANSAS and the Seller, ROSIE DORSEY,ROWIE HOWARD,WM E BARKER ALICE MCCLELLAND covering the real property known as 1033 HUNTSVILLE, FAYETTEVILLE AR. (the 'Property), the Undersigned Buyer and Seller agree that: RE. PARAGRAPH 13: SELLER HEREBY REPRESENTS TO BUYER THAT TO THE BEST OF SELLER'S KNOWLEDGE: A. THE PROPERTY IS NOT THE SUBJECT OF ANY JUDICIAL OR ADMINISTRATIVE NOTICE OR ACTION RELATING TO HAZARDOUS WASTE OR ENVIRONMENTAL CONTAMINATION. B. SELLER HAS RECEIVED NO NOTICE OF ANY CLAIM OR VIOLATION OF ANY LAW OR REGULATION HAVING TO DO WITH ENVIRONMENTAL PROTECTION C. NO HAZARDOUS OR TOXIC SUBSTANCES HAVE BEEN STORED, PROCESSED. OR DISPOSED OF ON THE PROPERTY DURING THE PERIOD THAT SELLER HAS OWNED THE PROPERTY D. NO UNDERGROUND STORAGE TANKS ARE LOCATED ON THE PROPERTY( OTHER THAN A HOUSEHOLD SEPTIC TANK). (a). BUYER TO PAY FOR ANY ENVIRONMENTAL HAZARDS TESTING //er (b). S 41111111PHAS NO OBLIGATION TO CURE ANY ENVIRONMENTAL HAZARDS TO BE i' DISCOVERED 7q (Continued on Page 2 at 2) tbwi General Addendum Page 2 of 2 (Rev. 6100) Lindsey & Associates, Inc. We Bring Great Neighbors Together" REALTOR Copyright 2000 Arkansas REALTORS® Association This General Addendum, upon its execution by both parties, incorporates by above -referenced Real Estate Contract not expressly modified herein. reference all provisions of the THIS;IS A LEGALLY BINDING REAL ESTATE CONTRACT WHEN SIGNED BY -THE PARTIES BELOW.s -READ R CAREFULLY. • IF YOU.DO NOT. UNDERSTAND,THE,EFFECT OF ANY PART, CONSULT YOUR ATTORNEY BEFORE SIGNING REAL ESTATE, AGENTS CANNOT GIVE YOU, LEGAL ADVICE. THE PARTIES SIGNED BELOW WAIVETHEIR RIGHT TO HAVEAN ATTORNEY DRAFT.THIS FORM. • ;'•. THIS FORM IS PRODUCED AND COPYRIGHTED BY. THE ARKANSAS REALTORS ASSOCIATION. THE SERIAL' NUMBER BELOW:IS A UNIQUE, •NUMBER -NOT USED'ON ANY OTHER FORM :THE SERIAL NUMBER"BELOW SHOULD. BEAN ORIGINAL PRINTING, MT( MACHINE COPIED; OTHERWISE.THE FORM MAY, HAVE BEEN ALTERED. DO NOTSION THIS FORM IF IT IS DEING EXECUTED PAST DECEMBER•31;2000 - FORM SERIAL NUMBER. 4TBOY=ILSISV-00W01 The above addendum is executed on (month) DECEMBER (day) a if (year) 2000 at c5.700 (am) LINDSEY AND ASSOCIATES iffl The above addendum is executed on Supervising Broker (month) DECEMBER (day) (year) 2000 LINDSEY AND ASSOCIATES at . tOD Cr( Y4T-v'Ot lwp.n dor es rho Buyer ym A et m,` 1 0 Buyer I-1 EN TA-) Get✓ (am)(Ia• /'wt'°"`� SA (/ Supervising Broker ROSIE DORSEY.ROWIE HOWARD, Print Seller's Name 1444 aeker, Wide ele N%/4, (THIS SPACE LEFT INTENTIONALLY BLANK) ,LC cr auran4 &'L/.,..t$5-`ate-ancz 7 L) 5Caie: I "= 300 ft. M Charles T. Combs 15.0 Acres 470.25 S88°49'17: 302.67 5 properties 1 a zz F 70 Ccdagwint Subdnision S8P2r45•r: Soulheunl Ap:unucnls - N82°34.24" 254.53 524 588°49'5 15t11 Street American Leiyon )0:4411V 797 Shenandoah Mobile hone Pk. 792 S88'_22'li o 0 al 0 NE comer 22-16-30 SE corner NH -22-10-3i co() FEB- 5-01 MON 10:16 BRO1111,ORTN FAX NO. 57594110 P.O1 BRONSON THE ONLY NAME YOU NEED TO KNOW IN TEB3 LOAN CLOSING AND TITLE INSURANCE BUSINESS DELIVER TO: BRONSON ABSTRACT CO., INC. 3810 MONT STREET, SUITE 5 FAYETTEVILLE, AP.. 72703 thilneti DATE: Z-) 5/ZOO/ REFBRBNCE. FAX NUMBER: 6'y5'6Zo'� SENT BY: iati tb"r Phone (501)442-2700 Fax (501)442-8475 Number of pages in this transmission: REMARKS: • The information contained in this facsimile message is client privileged and confidential information intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, or the employee or agent responsible to deliver to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify Bronson Abstract Co., inc., immediately by telephone or return the original message to us via the U.S. Postal Service. Thank you. FEB- 5-01 NON 10:16 MON NORTH HOUSING AND URBAN FAX NO. 5759612 go P.02 N 25024206 A. SETTLEMENT STATEMENT B. TYPE OF LOAN 1. QFHA 2. 0 FMHA 3.0 CONV.UNINS. 4. OVA S. QCONV.INS. 5. r4. Nwnet FATIC 01-11881 7. Lean Number e. Mendgo Inovnce ase Number C. NINE This !arm Ie *s,Yfnod to CM you snV:mml N newel e•ONmem welt Amounts pot io and by 61e nrJemcm arum ere Mows runnel marked "4.041" wwe Pe*3 mtdde me dosing: may ore shown nae M noliuntl nal IncludedgIn Ne UNA D. NAME AND ADDRESS DF eo6PAwER CITY OF FAYETTEVILLE, ARKANSAS 113 W. MOUNTAIN STREET, FAYETTEVILLE,AR 72701 W ALICE lm.V1. MCCLELLAND, pouromeeEt�ltdprere E BAHAE R, OSIE DORSEY ROWIE HOWARD AND ADO SS OF LENR LENDER ,F. G. PROPERTY LOCATION 1033 HUNTSVILLE RD., N. SEDIMENT AGENT BRONSON ABSTRACT CO INC FAYETTEVILLE ARKANSAS 72701 ova a SETTLEMENT 3810 FRONT STREET. SUITE 5 I. 541 rLEMENT DATE 2-8-01 FAYETTEVILLE, ARKANSAS 72703 nLS6U0.3EMEHT DATE 2-8-01 J. SUMMARY OF BORROWER'S TRANSACTION K SUMMARY OF SELLERS TRANSACTION 100. GROSS AMOUNT DUE FROM BORROWER 400. GROSS AMOUNT DUE TO SELLER m1. Cones. IBMs price 151,000.00 401. Canna Kim POO 151,000,00 102 Po lel Ph try 402. Person& aaoiny 103. Senaman ct na to bo,.ow+ pin 14011) 131:00-1 403. 104. . 4J2-tCo 404. 105. 405. ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE ADJUSTMENTS FOR ITEMS PAID BY SCLIER IN ADVANCE 104 0y/Tow, tame to 401. CArfIe+n reeve rd 107. Courcy In to 407. Co My Yen to 101. Alttoeln.ms to 405. Anton ma to 1W. 409. 110. 410. 111. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER IS/y 411. re 151,131.00 420. CROSS AMOUNT DUE TO SELLER 151,000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER 500. REDUCTIONS IN AMOUNT DUE TO SELLER 201. Dwaon or mrnca mu„ey 7,550.00 60I. Encm Doubt (500 kcm,dlnon) 20Y. 111ntIpY imam 01 roe !oat) 502. strut ant Our to Mcr (Y,r 14011 -10,414375- 10.4 1'7.7..2N. 203.Gln IND(3) YMcn su01TU 10 501 GNono IOM(F) taken melon 10 2d. Ap lcttcn dewtl 41L. PAYOO Of bst mengege bN 205. owed Cul mortar 503. PAyoa ell n.w,d Dort .ge Inn zro. xa o7. 507. 46. . 30'0. 509. ADJUSTMENTS FOR ITEMS UNPAID BY SELLER ADJUSTMENTS FOR ITEMS UNPAID BY SELLER 210. CltyRu.m leen to 510. C' /Town tan to 2-8-01 34.87 511. cony Wade 1-1-01 n&2-8-01 34.87 211. Coo ta'm 1.1 -01 to 212. New nmtl to 512. Asseamtde to 213. 513. 214. 514. 215. 513. 211. 515. 217. 517. 240. 511. ala. 319. 220. TOTAL PUD aV/TLR eta toweJI 7,584.87 S26 TOIAL PEOUC11a1 AMOUNT nue Mtn 9tn.ty r10i49r8E- 300. CASH Al" SETTLEMENT FROM OR TO BORROWER 600. CASH AT SETTLEMENT TO OR FROM SEL ER ml. aro,, @NMnl an from nwrovar (Int 1201 .151743;aa 464,13-1.00 601. GNI amount duo w trier Noe 420) 151,000.00 m. Lies emu= Dad nyMl bn„u.w el n• nOI ( 7,584.87) 602. Lee 14mww .moot a .ear 191• sec) ( 40,149S3- )) qp (� 7y ;q 73 603. CASH ®TO 0 FROM SELLER /21.44451414/ 303. CASH RI FROM 0 TO BORROWER Z d t lel Dent 61 ml I have canlNlly reviewed the HUD -1 Settlement Stmemenl end LO Lha bat p my knowledge Ntl bilin, R m e IMe an ecoula s e redipts and disbursements made on my account or by me in thla 1Tensacbon. I further cerlty that I have received a copy m the HUD -t SMCI°. ment SUtement. CITY OF FAY LLELLE. AR!RSP8 WILLIAM E. BARKER, ROSIIFypORSEY, AUCj MCCLFI.LAND. ROWIE HOWAS.0 Ben ro the bat beat of my knowledge. the HUDI bynont Statement which I haveo w prepared Ise true and acnlo account of the funds which was received and have bowl or will be disbursed by Ih9 undersigned as part el thla transaaon. risetram WARNIN(4.3 1114 4 WIMP CO wmwndy mote 44. el.ammY to ma Untied Mon on this or any ONw 4LnW barn. Penne: Imm, crew COO C]n IMbde o Non rd IMOINOnn124. Fr details au: TAM ID U. 5. Code Cotton 1011 and 54td0n 1010. F2566.LN EraN3/Ot) iv P(7411ii(1Afa1) 11001 9P/74C- 11051 p/745 HUD -1 (0747) RESPA. NS 43052 ,SETT !Y) Et 57» • THE REAL ESTATE CONSULANTS •REALTORS • APPRAISERS • CONSULTANTS• November 20, 2000 Mr. Ed Connell City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 RE• Appraisal Services Dear Mr. Connell: Barker Property 1033 E. Huntsville Rd , Fayetteville, AR Appx. 18.61 Acres 118 N. East Ave. P.O. Box 726 Fayetteville. AR 72702 Phone (501) 442-0762 In compliance with your request, and for the purpose of estimating the Market Value of the above captioned property, I hereby certify that I have personally inspected the property and made a survey of matters pertinent to the estimation of its value. The intended use of this appraisal is for purchase evaluation purposes of the City of Fayetteville. I further certify that I have no interest, present or contemplated, in the property under appraisement, and that the tee was not contingent upon the value estimate reported, nor based upon a percentage of the appraised value. The following narrative appraisal report contains the data gathered in the investigation, and shows the method ot'appraisal in detail. The report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation This is considered a Complete Summary appraisal report. Based upon the inspection of the subject property and the investigation and analysis carried out in this report, it is the considered opinion of the appraiser that the Market Value of the property as of October 17, 2000 and subject to the assumptions and limiting conditions set forth within the body of this report, is as tbllows: ONE HUNDRED FIFTY EIGHT THOUSAND DOLLARS ($158,000) tto S tted, S n,. e Certified General Appraiser #CG0202 3 tf:: r: :.D ':,'$; a* i GENE::'_ 1 * a 1 _ % % I\!. r.,..•... ... izi 'J. ' L...... 4. 40":•••-........... .,-'. - tc, 'ry7771111' 11C\ " jOhitnin7 fire FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE DATE: January 5, 2001 TO: Fayetteville City Council THRU: Dan Coody, Mayor � l John McGu , Administrati%e' S�vi es Drecto Th , Don Bunn, 's Public Works Director Jim Beavers, City Engineer Q FROM: Ed Connell, Land AgentJ,G - RE: 18.88 Acre Barker Property Purchase Huntsville Road, Fayetteville Pt. E1/4 -NW'% -22-16-30 Over the past two -three years, the city has undertaken a major drainage project for controlling storm water from the SE side of Mt. Sequoyah, between Huntsville Road and 15ih Street. The project included drainage resolution across portions of properties owned by William H. Barker (his heirs at the current time) and Charles Combs. The initial project envisioned open ditch over the northern portion of the project and pipe along the southern portion. Anticipated cost of the initial project was approximately $180,000 to $200,000. While Mr. Combs was willing and did provide the city with easements to construct the system along his property, the heirs of William H. Barker were not satisfied with the plans to pull open ditch along a major portion of their property. They further claimed that the city's approval of a subdivision development to the east discharged additional waters on their property which caused irreparable damages in the southern part of that property. They claim that they were never notified, until after the fact, that a subdivision (Cedar Point S/D) was being considered adjacent to their property. They further claim that had they known of the development, they would have made their presence known to ensure adequate and proper handling of storm drainage. They blame the city for their property damage and have, on occasion, threatened to file suit. Their solution was to run pipe 36"- 48" all the way north to the outlet pipe of the subdivision. It is estimated that to do the project as they desired would cost an additional $200,000. This project made little or no progress over the next year as the city was unwilling to commit to the additional expenditure and the Barker heirs were unwilling to provide the city with easements. When Mr. Barker passed in 1999, the heirs decided to sell the property (18.88 acres). An offer and acceptance was signed with a third party for $151,000 or $8,000/ acre. When this transaction did not materialize to a final stage, the property came back on the market. As noted from the above discussion, the additional cost of the drainage project exceeded the cost of the land and it was prudent that the city consider the purchase thereof. Jim Fayetteville City Council Barker Property Purchase Agenda Memo Page 2 of 2 The city can purchase the almost 19 acres for Tess money than would be spent to install the piping along the east line of this property. By purchasing the property , the city can implement the open ditch system that the city engineers believe adequate for this drainage system now or in the future and at the same time eliminate the possibility of a law suit. If the property is sold to a third party, that party is going to expect the drainage situation to be resolved by the city dust as if the Barker heirs still own same. The city has offered $151,000 for the property and the owners have accepted this offer (see attached 0 & A contract). The city has had the property appraised by Mark Risk: $158,000 was his estimated market value. This represents almost 19 acres of reasonable to good land within the city limits, with water and sewer available, for a value of less than $10,000 per acre, which is a good deal for almost anything within the city limits. If the city were to acquire the land; (1) The city could eliminate the need to spend about $200,000 or %] the cost of the drainage project. (2) The drainage project itself could be forestalled to some future date when city departments could be in a position to do the work itself at a much lower cost to the city. (3) Once the project is completed, there would be a considerable savings in the cost of the project and the city would have 19 acres of pnme land for any and all kinds of purposes, i.e., 1. Future park land for soccer or ball fields. 2. Land for growing trees, 3. Lands for affordable residential development on the north side of said property (Habitat for Humanity). 4. Lands for future city divisions locations, or 5. The city could sell the land within a couple of years and recover a portion or all of the cost of the drainage project. (4). This property is zoned R-1 residential and has access to/from Huntsville Road. Parks & Recreation have considered the possible purchase of the American Legion baseball field off of Curtis Ave. This 5 acre tract, while being used for baseball purposes, could also provide an access route to the south part of the subject property. This other acquisition can be incorporated as required and/or finances are available. It is the recommendation of the staff that it makes sense for the city to take advantage and acquire the subject property at this time. • 1111 41111 STAFF REVIEW FORM X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of January 16, 2001 FROM: Ed Connell�f Engineering Public Works Flame TStvtclnn I )epartment ACTION REQUIRED: The passage of a resolution approving the Offer and Acceptance Contract between the City of Fayetteville and Rosie Dorsey, Rowie Howard, William E. Barker and Alice McClelland, as tenants in common for the purchase of 18.88 acres of land in the EVA -NE -22-16-30 for a price of $151,000 plus associated closing costs where applicable. COST TO CITY: 151 000 cost of this Request 4470 -9470 -580G. -a) Account Number 970384-1 rNect um her BUDGET 't.,VIEW: gt Lategor}l/tblect Budget $ : o— 1 unds Used 'Co Date 62, em� El XBudgeted Item ante Shenandoah Drainage Category/Project Name Program Name Sales Tax CIP Iunf Budget Adjustment Attached inntnr dm inImitative Servteec r),rertnr CONTRACT/GRANT/LEASE REVIEW: �ol ate S °/ ate I to GRANTING AGENCY: 1 5 o r e a uditor ate ADA Coordinator Date STAFF RECOMM ENDATION:Staffrecommends approval ofthe contract and purchase ofthe property for multiple reasons including economic implementation ofthe drainage project, potential lands for parks & recreation, city facilities or eventual residential development e: O ate ate thilde Cross Reference New Item: Yes X No Prev Ord/Res #: Orig Contract Date: 3 M • so a STAFF REVIEW FORM Page 2 Description Barker Property (18,88 acres) purchase Meeting Date January 16, 2001 Comments: Budget Coordinator Accounting Manager City Attorney Purchasing Officer ADA Coordinator Internal Auditor Reference Comments: • IlliTAFF REVIEW FORM X AGENDA REQUEST _ CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of January 16, 2001 FROM: LAND PURCHASE A. 3 Page 1 Ed Connell Engineering Public Works Name n 1)epartment ACTION REQUIRED: The passage of a resolution approving the Offer and Acceptance Contract between the City of Fayetteville and Rosie Dorsey, Rowie Howard, William E. Barker and Alice McClelland, as tenants in common for the purchase of 18 88 acres of land in the E'/rNE-22-16-30 for a price of $151,000 plus associated closing costs where applicable. COST TO CITY: 151000 Cost of this Request 4470-9470-580 6450 Account Number 970e38 nm er0 fU BUDGET '.•VIEW: r /S $$t Catego oject Budget o- I•unds Used To Date 1 new tnntnr g gore Shenandoah Drainage Category/Project Name Program Name Sales Tax CIP a • X Budgeted Item _ Budget Adjustment Attached — fnuntftrnt we Sennwnn 111rslnr CONTRACT/GRANT/LEASE REVIEW: 1/541/ ate GRANTING AGENCY: i of u nor ate ADA Coordinator Date STAFF RECOMMENDATION:Staffrecommends approval ofthe contract and purchase ofthe property for multiple reasons including economic implementation ofthe drainage project, potential lands for parks & recreation, city facilities or eventual residential development OI D ate Az4i(th Cross Reference New Item: Yes i No Prev Ord/Res #: Orig Contract Date: FAYETTEVTILE THE CITY OF FAYETTEVIIIE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Ed Connell, Engineering From: Heather Woodruff, City Clerk Date: January 23, 2001 Attached is a copy of the resolution approving the offer and acceptance contract betwee the city of Fayetteville and Rosie Dorsey for the purchase of property off Huntsville Road. The original will be microfilmed and filed with the City Clerk. cc: Nancy Smith, Internal Audit /'ao/vnod i o Form No. 1402.92 (10/17/92) ALTA Owner's Policy I"IIII.I(ti IIII. I I I I.I. I`�I 1'►.►1�I 11 ISSUED BY f/l am( 4//Il"'l /f ,.11l /Ilir"' /llll..11lt r" ( 411/IJI1,0 W SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. s T A ra e a r BRONSON ABSTRACT COMPANY, INC. e cq 3810 Front Street #5 Fayetteville, AR 72703 (501) 442-2700 Fax: (501) 442-8475 Agent for: First American Title Insurance Company First American Title Insurance Company ©oow o0Qo\i oo• O�D0�0�°0��� d a BY 4tT PRESIDENT p o° c' °n' o �o p o° aw;v ≥n % O G° ATTEST SECRETARY . �©°°o°° �°°`�I�'° J 770610 �a�aGC,;1 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured": the insured named in Schedule A, and, subject to any rights or defenses the company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representa- tives, next of kin, or corporate or fiduciary successors. (b) "insured claimant: an insured claiming loss or damage. (c) 'knowledge" or "known": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule (A), and improvements affixed thereto which by law constitute real property. The term land° does not include any property beyond the lines of the area described or referred to in Schedule (A), nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument. (U "public records': records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)Qv) of the Exclusions From Coverage, "public records" shall also incude environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketability of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this poicy sheMcontinue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the tide to the estate or interest, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or en- cumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to the Company the fight to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (I) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the fine to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE. by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, Inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized rep- resentative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and mem- oranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary informa- tion from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to Y. Upon the exercise by the Company of this option, all ility and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than • Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (ii), the Com- pany's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the Amount of Insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the company is liable under this policy, and shall only applyto that portion of any loss which exceeds, in the aggregate," 10 percent of. the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT. If the land described in Schedule (A)(C) consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the Amount of Insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made sub- sequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any Insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE. It is expressly understood that the Amount of In- surance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. PAYMENT OF LOSS. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Companies Right of Subrogation. Whenever the Companj/ shall have settled and paid a Im under this policy, all night of subrogation shall vest in e Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all nights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, Insured claimant shall transfer to the Company all nights remedies against any person or property necessary in rder to perfect this right if subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company's Rights Against non -Insured Obligors. The Company's right of subrogation against non- insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION. Unless prohibited by applicable law, either the Com- pany or the insured may demand arbitration pursuant to the Titre Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured, All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpret- ing any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the tithe to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving Ise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against 9. LIMITATION OF LIABILITY. (a) If the Company establishes the titre, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of titre, all as insured, in a reasonably diligent manner by any method, including litigation and the comple- tion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable 17. NOTICES, WHERE SENT. Al rptices requited b be given the Corroany and any dement io wiling required b be bmished the Canpany ahal'erdude the number of this policy end shall be addressed to the Company at I Fast Nrerican Way, Santa Ana, Carnomia 92707, or to the office which issued this policy. s °°°� ,Sau.L3a0as _-z43c+ ) '� o F3 .W3QIS32Id AS o° i7 10 £uedwoaauernsuj apxj uear raw as y £Cuedruoj aauamsul ajjij ueauacu ji;say aol lua6V 9L4a-zrr (Los) :Xeda OOLZ-Zbb (Los) C0LZL IJV'ap!AOUOAej 9# laells luad 0 'ONI 'ANVdWOO IOValSSV NOSNOUS 'a a w v v s OT90LL -suollelndllS pue SU011ipuo0 aql u! pap!nwd lualxa aql of Aluo 1nq pamsu! se 'all!1 aql 10 asualap u! paiinoul sasuadxa pue saal ,s/awoge slsoo aq1 Aed osle IIIM Auedwo0 aq1 -puel aql woil pue of 550332 jo lg6u e jo >laei 'p 'all!! aql 40 klllgelaHlewufl 'E '911!1 aql uo eouelgwnoua Io uall Io u! loalap Auy 'Z 'ulaJagl paleis se uegl Jag10 pa1San 6uiaq y alnpagoS u! paquosop 1salalu! JO alelso aql 01 af!1 ' L :lo uoseal Aq palnsu! aql Aq pallnou! Jo paulelsns y alnpagoS u! paleis aOUEJnsul to lunowy aql 6u!paaoxa lou 'a6ewep Io ssol lsu!e6e'y alnpagoS u! uMogs Aollod 10 ajeO 10 Se 'saJnsu! 'Auedwo0 aql palled ulaioq 'uollelodloo EluJO Ie0 a 'ANV&N00 30NVdflSNI 31111 NVOI83AV 1SHIJ 'SNOI1Vlldh1S ONy SNOIIIONOO 3H1 ONV 9 31l03H3S NI03NIV1N00 39VH3A0O WORM SNOI1d3OX33Hl'39V83A00INOH3 SNOISll0X3 3Hl01103fef1S MI aanssl NJWI.1J itI"I,II.fIIII X11 iII��I .. T -, AMA, • BRONSON ABSTRACT CO., INC. Abstracts MARCH 1, 2002 Title Insurance CITY OF FAYETTEVILLE 113 W. MOUNTAIN STREET FAYETTEVILLE, AR 72701 Escrows 3810 Front Street Suite 5 Fayetteville, AR 72703 501 442-2700 Telecopier 501 442-8475 FATIC 2001-12861 & 2001-12002 77o6// INSURANCE POLICY NO. J 770610 ^'tl NOTE: This letter contains IMPORTANT information about the real estate transaction you have just recently completed. Read this letter and retain it with your other valuable papers pertaining to the property purchased. The new home or other real estate you have purchased is protected with a policy of title insurance issued thru BRONSON ABSTRACT COMPANY., INC. We have assigned the above number to your records to assure prompt processing of future title orders involving the property, If you sell or obtain a loan on this piece of land within four (4) years, BRONSON ABSTRACT COMPANY, INC., WILL REDUCE THE USUAL POLICY RATE To obtain this SAVINGS, it will be necessary for you to inform the real estate agent and/or loan officer handling further transactions that such policies of title insurance if required should be issued thru BRONSON ABSTRACT COMPANY, INC., and you must request the real estate agent and/or loan officer to forward this letter to us with the order for title insurance. We appreciate the opportunity of serving you and will be glad to assist you in any way, remembering that PROTECTION OF YOUR PROPERTY IS YOUR FIRST CONSIDERATION --AND OURS. FIRST AMERICAN TITLE INSURANCE CO. Amount of insurance Premium: SPECIAL Policy No.J 770610 SCHEDULE A $151,000.00 Date of Policy: FEBRUARY 8, 2001 at 1:46 P.M. 1. Name of Insured: File No.FATIC 2001-11861 CITY OF FAYETTEVILLE, ARKANSAS, a municipal corporation 2. The estate or interest in the land described herein and which is covered by this policy is FEE SIMPLE and is at Date of Policy vested in: THE INSURED 3. The land referred to in this policy is described in the said instrument, is situated in the County of WASHINGTON, State of ARKANSAS, and is identified as follows: Beginning at a point thirty (30) feet South of the Northwest corner of the East Half (E 1/2) of the Northeast Quarter (NE 1/4) of Section Twenty-two (22), Township Sixteen (16) North of Range Thirty (30) West of the 5th P.M.; thence East 165 feet; thence South 4 degrees 00 minutes 00 seconds East 268 feet; thence East 60 feet; thence South 4 degrees 00 minutes 00 seconds East 65 feet; thence South 12 degrees 35 minutes 00 seconds East 255 feet; thence South 85 degrees 20 minutes 00 seconds East 221 feet; thence South 01 degrees 37 minutes 49 seconds West (Deed says South) — 1301 feet to the centerline of the Old (and abandoned) P. & G.E. Railroad right of way; thence North 85 degrees 58 minutes West along said centerline (Deed says West) - 525.37 feet (Deed says 519 feet), more or less, to the West line of said 80 acre tract; thence North 01 degrees 08 minutes 20 seconds East (Deed says North) - 1863 feet to the Point of Beginning and containing 18.88 acres, more or less. COUNTERSIGNED BY: BRONSON ABSTRACT COMPANY, INC********************************* 28 EAST CENTER STREET FIRST AMERICAN TITLE FAYETTEVILLE, AR. 72701 INSURANCE COMPANY ********************************* Policy No.J 770610 SCHEDULE B File No.FATIC 2001-11861 This policy does not insure against loss or damage by reason of the following: 1 General taxes for the year 2000 and subsequent years not yet due and payable. 2 Rights or claims of parties in possession, boundary line disputes, overlaps, encroachments, and any other matters not shown by the public records which would be disclosed by an accurate survey and inspection of the land described in Schedule A. 3 Loss arising from security interest evidenced by financing statements filed of record, as of the effective date hereof, under the Arkansas Uniform Commercial Code and Judgement Liens and other liens of record in any United States District Court or Bankruptcy Court in the State of Arkansas, as of the effective date. BRONSON ABSTRACT COMPANY, INC 28 EAST CENTER STREET FAYETTEVILLE, AR. 72701 ********************************* FIRST AMERICAN TITLE INSURANCE COMPANY *********************************