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HomeMy WebLinkAbout157-02 RESOLUTION• RESOLUTION NO. 157-02 A RESOLUTION TO APPROVE AN OFFER AND ACCEPTANCE CONTRACT WITH ARKANSAS -MISSOURI RAILROAD COMPANY, INC. FOR THE PURCHASE OF 1.31 ACRES OF RAILROAD RIGHT- OF-WAY LOCATED ADJACENT TO GREGG AVENUE FOR A PRICE OF $36,000.00 AND A BUDGET ADJUSTMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves the offer and Acceptance Contract attached as Exhibit A with the Arkansas -Missouri Railroad Company, Inc. for the purchase of 1 31 acres of railroad right-of-way located adjacent to Gregg Avenue for the price of $36,000.00 plus closing costs. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves the budget adjustment attached as Exhibit B in the amount of $36,500.00 for the purchase of the railroad right-of-way. fI p v1i't�pSED and APPROVED this the 15th day of October, 2002. •`� t .. AC . \ ., 01 '. . , J •he �y� I I' By: ATTEST. APPROVED: By: eather Woodruff, City Cl NAME OF FILE: CROSS REFERENCE: Item # Date Resolution No. 157-02 Document 1 10/15/02 Resolution # 157-02 2 10/15/02 Offer and Budget adjustment acceptance contract 3 10/23/02 4 10/03/02 Staff Review Form 5 10/22/02 Memo from Heather Woodruff, City Clerk to Ed Connell, Engineering NOTES: • • • • OFFER AND ACCEPTANCE CONTRACT Page 2 of 5 • 8. The closing date is designated to be within Thirty (30) days after approval of this Contract by the Fayetteville City Council. This Contract will submitted to the Fayetteville City Council for approval within three weeks of the date of Seller signature. 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 descnbed property 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. Seller shall disclose to Buyer any and all environmental hazards of which Seller has actual knowledge. Buyer shall accept property described in Exhibit "A" on an "as -is" basis. 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 the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous agreements, representations and understanding with respect to such matters, and no oral representations or statements shall be considered a part hereof. 16. Seller asserts and Buyer hereby acknowledges that this offer is also expressly contingent upon the assurance by Buyer that, after conveyance of the property, said property will not be altered in any manner which would affect or otherwise compromise the operation of the Seller's railroad upon the existing rail line, resulting from, but not limited to, changes in drainage, alignment of the existing rail line, or otherwise, and further, that if any such changes or alterations be made by Buyer after conveyance of the property which does so affect or otherwise compromise the operation of the Seller's railroad, then Buyer shall be responsible for any and all costs associated with correcting said alterations so that the operation of Seller's railroad may be conducted in such a manner as existed pnor to the sale of the property descnbed herein. • OFFER AND ACCEPTANCE CONTRACT Page 3 of 5 elk 17. This contract expires, if not accepted by the Seller, on or before the 3rd day of October, 2002. 18. 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 $3,000 00 EARNEST MONEY DEPOSIT. SELLER: Arkansas and Missouri Railroad Company BY: ltid-v\ -' C.� \ G Brent McCrea y, President WITNESS: BUYER: City of Fayetteville, Arkansas, a municipal corporation Dan Goody, Mayor Date: Date: to/lo 2. Date:4l/rk � /fare Date: 9/A/a. Hea er oodruff, City Clerk • OFFER AND ACCEPTANCE CONTRACT Page 4 of 5 EXHIBIT "A" PROPERTY DESCRIPTION Gregg Avenue Proposed Right of Way Acquisition (Poplar St. to Spruce St.) The East Twenty-five (25) feet of the Arkansas and Missouri Railroad Company Main line 100 foot wide right of way across the W% -SE'/. of Section 4 and a portion of the NWY of the NE'/. of Section 9, all in Townshipl6 North, Range 30 West, being more particularly described as follows: Commencing at the Southeast comer of the NW'/. -NE% of said Section 9 and running North along the east line thereof a distance of 1363 feet; thence West a distance of 272 feet, more or less to a point which is 50 feet East of the centerline of the Railroad Company's Main track and the Point of Beginning; thence continuing westerly a distance of 25.0 feet; thence running southwesterly, parallel with said Railroad Company's Main track centerline and 25 feet east thereof , a distance of 2,275.04 feet; thence in a southeasterly direction, being perpendicular to said railroad track centerline a distance of 25 feet; thence in a northeasterly direction, being parallel with and 50 feet east of said Railroad Company's Main track centerline, to the Point of Beginning, containing 56,876.00 square feet (1.306 acres), more or less, subject to easements, leases and rights of way of record. SIGNED FOR IDENTIFICATION: SELLER: Arkansas and Missouri Railroad Company BY: °r , \\k G. Brent McCready, President BUYER: The City of Fayetteville, Arkansas, a municipal corporation BY: Da " Coody Mayor 1 • OFFER AND ACCEPTANCE CONTRACT Page 5 of 5 ACKNOWLEDGMENT STATE OF ARKANSAS ) ss. COUNTY OF WASHINGTON ) • 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 Dan Coody and Heather Woodruff, to me well known as the persons who executed the foregoing document, and who stated and acknowledged that they are the Mayor and City Clerk of the City of Fayetteville, Arkansas, a municipal corporation, and are duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said municipal corporation, and further stated and acknowledged that they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 244 day of c k,srffleSe- 2002. MY COMMISSION EXPI Public ACKNOWLEDGMENT STATE OF ARKANSAS ) ) COUNTY OF WASHINGTON ) 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 G. Brent McCready and �.C(-Orv. . P LPL . to me well known as the persons who executed the foregoing document, and who stated and acknowledged that they are the President and Z.Qc . , and are duly authorized to execute the foregoing instrument for and in the n me and behalf of the Arkansas and Missouri Railroad Company, a Virginia corporation, and further stated and acknowledged that they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this c„ 2tt day of 0 ca, % 2002. MY COMMISSION EXPIRES: /.C1% f 1 1 az“ co" cLa art— "OFFICIAL SEAL" Maria Andreadis Notary Public State of Arkansas County of Washington My Commission Exp. 07/15/2006 Notary Public City of Fayetteville, Arkansas Budget Adjustment Form • EXHIBIT B udget Year 2002 Department. Division: Program: Public Works Water & Sewer Maintenance Capital Water Mains Date Requested 10/15/2002 Adjustment # Project or Item Requested: $36,500 is requested in Water & Sewer Fund to fund the purchase of 1.31 acres of railroad right-of-way for the Gregg Avenue waterline replacement/ improvement project. Project or Item Deleted: Funding proposed for this adjustment is from the Mt. Sequoyah Water/Sewer Improvements Project. Justification of this Increase: The item is requested for the needed water/sewer line replacement/upgrade for Gregg Avenue. Justification of this Decrease: The Mt. Sequoyah project will have approximately $1.5 million remaining after this adjustment. Increase Expen e (Decrease Revenue) • Account Name Amount Waterline Improvements 36,500 Account Name Account Number 5400 5600 Project Number 5808 00 02129 1 Decrease Expense (Increase Revenue) Amount Account Number Waterline Improvements 36,500 5400 5600 Project Number 5808 00 01023 1 Approval Signatures Requested By Date /0 -Z-o2. udget Man:,_et Date Department Director Date %o—Z-o.. es Director / Date Mayor Blue Copy: Budget & R h / Yellow Copy: Requester Type: A Date of Approval Budget Office Use Only B C Posted to General Ledger Posted to Project Accounting �t E Entered in Category Log H: I B UDGETI PROJECTSI B UD_ADJI BA_20021 GREGG_WL. WK4 • STAFF REVIEW FORM • X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of _ October 15 2002 FROM: Ed Connell Name Engineering Public Works Division Department ACTION REQUIRED: The passage of a resolution approving the Offer and Acceptance Contract between the City of Fayetteville and Arkansas -Missouri Railroad Company, a Virginia corporation, for the purchase of 1.31 acres ofrailroad right of way (25 ft. wide)located adjacent Gregg Avenue in the SE'/. of 4-16-30 and the NE%, of 9-16-30, for a price of $36,000 plus associated closing costs where applicable. Such resolution shall include a Budget Adjustment for this purpose. COST TO CITY: $36,000 Cost of this Request 5400-5600-5808.00 Account Number 02129-30 Project Number $ 155,950 Gregg Ave. Water Line Replace. Category/Project Budget Category/Project Name $155'950 lundsUsed .10 Date Program Name 0 Water/Sewer Remaining Balance Fund BUDGETEW: 2?cge i X Budgeted Item X Budget Adjustment Attached Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: ccobntin (A)C1� omey Purchasing Officer /0/2400_ er { / / ate ASS Oa— �vlIDate aOz- ate GRANTING AGENCY: jd ntema untor Date ADA Coordinator Date STAFF RECOMMENDATION: Staff recommends approval of the contract and purchase of the property for as such right of way is needed to install a 24" water line and Gregg Avenue already intrudes on about 60-70% of the subject right of way. This is a house keeping resolution to potential problem and provides an area to install the new water line. Included is a budget adjustment for this purpose. llepartmebt Director /O-o/•oZ mate Cross Reference New Item: Yes X No Date /0—) —el, Prev Ord/Res #: atm// (JZ� Orig Contract Date: ate FAYETTEVI LtE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE DATE* September 26, 2002 TO: Fayetteville City Council Dan Goody, Mayor THRU: Greg Boettcher, Public Work; Director Oisvr Jim Beavers, City Engineer FROM: Ed Connell, Land Agent��S./ RE: Purchase of Railroad Right of Way Poplar St. to Spruce St. along Gregg Ave. Earlier this year, the city purchased a 25 foot wide strip of Railroad right of way along Gregg Ave , from Poplar Street north to Van Ashe, to accomodate the expansions of Gregg Ave. north of Township Road. The City is now looking to run a new 24" water main from Van Ashe south to Sycamore St., along the West side of Gregg. Accordingly, the city needs to extend the acquisition of railroad right of way south to Sycamore in order to run this new line It has also been discovered that Gregg Avenue already encroaches into the railroad right of way as much as 20 feet between Poplar St. and Spruce Street (approx. 700 feet south of Sycamore). We have been unable to find any documentation which conveys this encroachment area to the city, thus it is in the city's interest to avoid potential problem areas by acqumng this additional land before control of the railroad is turned over to the new ownership, which will occur in about a month If one takes a rough estimate, it appears that about 60-70 percent of the 1.306 acres to be acquired is already under concrete pavement & curb of Gregg Ave. The city paid $40,000 per acre for the acreage purchased earlier this year from A & M Railroad. Such acreage was originally appraised at $43,500.00 per acre. The City and A & M have a joint use agreement for the first 700 feet south of Poplar St. and part of this acquisition will involve the area covered by that agreement. A & M initially asked for $38,820 for an area of 1.294 acres, being the east 25 foot of RR ROW from Poplar St. to just south of Spruce St or 1.306 acres. For this we have negotiated a price of $36,000 or $27,565 per acre. Since our year old appraisal for just north of this land appraised for over $43,000, we believe this to be a good deal for the city, especially where we are encroaching on a major portion of what we are offenng to purchase. As noted above, the secondary purpose for this acquisition is for the mstallatton of a new 24" water line on the west side of Gregg Ave.. Easements cost the same as fee simple acquisition. Your approval of this acquisition is recommended and appreciated. A copy of the executed Offer and Acceptance Agreement is attached for your reference. I will be glad to provide additional information if required. • 4. t t11 FAYETTEVIeI.E THE CITY OF FAYETTEVIUE. ARKANSAS DEPARTMENTAL CORRESPONDENCE 1 To: Ed Connell, Engineering From: Heather Woodruff, City Clerk Date: October 22, 2002 / Attached is a copy of the resolution and signed offer and acceptance contract with Arkansas Missouri Railroad. The original will be microfilmed and filed with the City Clerk. Cc: Budget and Research Nancy Smith, Internal Auditor I ORIGINAL • • EXHIBIT A O OFFER AND ACCEPTANCE CONTRACT 1. The City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as the Buyer, offers to buy, subject to the terms and conditions set forth herein, the following descnbed 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 $36,000.00. 3. Contingent Earnest Money Deposit: The Buyer herewith tenders a check for $ 3,000.00 to Arkansas and Missouri Railroad Company, a Virginia corporation, hereinafter referred to as the Seller, as earnest money, which shall apply on the purchase price. This offer of 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 Quit Claim Deed, therein conveying any and all rights of the Seller on an as -is basis, except it shall be subject to recorded instruments, easements, leases and rights of way, 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 furnish a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the Buyer. The cost of such title insurance shall be borne by the Seller. 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 the satisfaction of the Buyer 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 rental payments shall be prorated as of the closing date.