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HomeMy WebLinkAbout68-03 RESOLUTIONRESOLUTION NO. 68-03 • A RESOLUTION TO APPROVE THE REAL ESTATE PURCHASE AND SALE CONTRACT WHEREIN LEGACY PROJECT LLC PURCHASES THE 289 ACRE 1-540 BUSINESS PARK SITE FROM THE CITY OF FAYETTEVILLE FOR 5.2 MILLION DOLLARS AND OTHER CONSIDERATION WHEREAS, Mayor Dan Coody has negotiated the sale of 1-540 Business Park site to Legacy Project LLC for 5.2 million dollars and Legacy Project's commitment to preserve and protect 100 acres of wetland or near wetlands until it conveys this 100 acres to an environmental conservation non-profit organization; and WHEREAS, the City of Fayetteville is empowered by A.C.A. § 14-54-302 with the authority to buy, sell and convey real estate and the City Council can authorize the Mayor to execute such contract to sell municipally owned real estate. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILI.E, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves the Real Estatc Purchase And Sale Contract Between Legacy Project, LLC And The City Of Fayetteville (attached as Exhibit A) in which the City sells its 289 acre 1-540 Business Park acreage to Legacy Project LLC for 55.2 million plus Legacy Project LLC's agreement to convey 100 acres of this property which is wetland or near wetland to an environmental conservation non-profit organization. Section 2. That the City Council of the City of Fayetteville, Arkansas repeals or amends any Resolution that is in conflict with this Resolution or the terms of the Contract attached as Exhibit A. PASSED and APPROVED this the 6th day of May, 2003 eFIEire 4•, /,r-. • 1` ,R G ). \ %`"ITTE �.; 1 i:i raj . BY :r�o..d c.-1 a nw7tC. Sondra Smith, City Clerk APPROVED: By: D N COODY, ayor • • REAL ESTATE PURCHASE AND SALE CONTRACT BETWEEN LEGACY PROJECT, 1 LC AND THE CITY OF FAYETTEVILLE Subject to the terms and provisions contained herein, the City of Fayetteville, Washington County, Arkansas, (hereinafter "City of Fayetteville"), hereby agrees to sell and convey to Legacy Project, LLC, an Arkansas limited liability company, and/or its assigns (hereinafter "Legacy Project"), and Legacy Project hereby agrees to buy from and pay to the City of Fayetteville for that certain parcel of land (the "Land") generally located on the north side of Interstate 540, situated in the City of Fayetteville, Washington County, Arkansas, containing approximately 289 acres of land, more or less, said land being identified and/or described on Exhibit "A" attached hereto and made a part hereof. A legal description of the Property shall be determined from the survey provided for below, and such legal description may be substituted as Exhibit "A" hereto and shall be the legal description used in the deed from the City of Fayetteville to Legacy Project. This Contract is executed and is subject to the following terms and conditions: I. Purchase Price. The Purchase Price for the Property shall be Five Million Two Hundred Thousand Dollars ($5,200,000.00). The Purchase Price shall be payable at Closing (as hereinafter defined), in cash, by cashier's or certified check, or by wire transfer of immediately available funds, less the prorations and adjustments set forth in this Contract. 2. Earnest Money. Within seven (7) business days after the approval of this Contract by the Fayetteville City Council, Legacy Project shall deposit with the City of Fayetteville, the sum of Ten Thousand Dollars ($10,000.00) as Eamest Money. The Eamest Money shall be either cash or check payable to the City of Fayetteville. If this Contract closes, the Earnest Money shall be applied to the Purchase Price. 3. Survey. Within thirty (30) days following the approval of this contract by the Fayetteville City Council, Fayetteville shall cause a current updated ALTA survey to he made of the Property, by a licensed surveyor or registered professional reasonably acceptable to Legacy Project and shall furnish Legacy Project the Survey. The Survey shall indicate: a. That the corners of the Property have been properly monumented; b. The perimeter boundaries of the Property; c. The location of all improvements upon or bounding the Property; d. The location of all easements within or traversing the Property, if any, giving recording data where applicable; e. The location of all roadways traversing, adjoining or bounding the Property, giving recording data where applicable; f. That there are no encroachments except as may be specifically shown on the Survey; and • • g. The number of"net acreage" of land within the Property which shall consist one hundred eighty nine (189) acres more or less. As used herein, the term "net acreage" shall mean the total number of acres of land within the Property, excluding any land lying within any existing river, creek, lake, waterway, wetland, drainage -way, rail way, 100 -year flood plain, or special flood hazard area. The Survey shall contain a certification from the surveyor or engineer to Legacy Project, and any lender designated by Legacy Project, which certification shall be in form and substance as the Surveyor's Certificate attached hereto as Exhibit "B". 4. Title Commitment. Within forty-five (45) days following the approval of this Contract by the Fayetteville City Council, the City of Fayetteville, at its sole cost and expense, shall cause to be furnished to Legacy Project a current title commitment for an owner's title insurance policy (the "Title Commitment") issued through the Title Company, setting forth the status of title of the Property and all exceptions, including rights-of-way, easements, restrictions, covenants, reservations and other conditions, if any, affecting the Property which would appear in an owner's title insurance policy if issued, together with true, legible copies of all instruments referred to in the Title Commitment affecting title to the Property. 5. Additional Information. Within fifteen (15) days following the approval of this contract by the City Council, the City of Fayetteville shall furnish to Legacy Project the following: a. Legible, accurate and complete copies of the most recent ad valorem tax statements affecting the Property from all taxing authorities having jurisdiction over the Property; b. Copies of all leases, if any, (together with all amendments or modifications thereto), service contracts, warranties or other agreements affecting the Property; and c. To the extent available to City ofFayctteville, all engineering studies, surveys, soil tests, environmental reports or studies, feasibility, demographic or economic studies, aerial photographs, topographical maps, and copies of all plans and specifications, including site plans for improvements, facilities and utilities to be constructed on or adjacent to the Property. 6. Review of Title and Survey. Legacy Project shall have a period (the "Review Period") ending thirty (30) days after the date on which Legacy Project receives the last of (i) the Title Commitment; (ii) the Survey required in Section 3 above; and (iii) the additional information required in Section 5 above, in which to notify City of Fayetteville of any objections Legacy Project has to any matters shown or referred to in the Title Commitment or the Survey. Any exception to which Legacy Project does not object shall be considered as a "Permitted Exception". In the event Legacy Project notifies City of Fayetteville of any unacceptable exceptions or conditions, City of Fayetteville shall have thirty (30) days thereafter (the "City of Fayetteville's Cure Period") in which to eliminate or modify such unacceptable exceptions or conditions in a manner reasonably acceptable to Legacy Project. In the event City of Fayetteville is unable to eliminate or modify such unacceptable exceptions or conditions to the satisfaction of Legacy Project within City of Fayetteville's Cure Period, then in that event Legacy Project may 2 • • terminate this Contract by providing written notice to City of Fayetteville at any time at or prior to Closing, in which event this Contract shall terminate and the Earnest Money shall be returned to Legacy Project and the parties hereto shall have no further obligations one to the other. 7. Inspection. At all times prior to Closing, Legacy Project, its agents, representatives and designees (including prospective lenders, tenants, occupants and users of the Property and their agents and representatives) shall have the right to enter the Property to conduct any investigations, soil tests, environmental assessments and engineering and feasibility studies as may deemed necessary or advisable in connection with the purchase or use of the Property; provided, however, Legacy Project shall be responsible for any damages to the Property caused by Legacy Projcct, its agents, representatives and designees. If it should be determined by Legacy Project, in its sole and absolute discretion, that the Property is not suitable for the purposes for which Legacy Project intends to utilize the Property, then Legacy Project shall be entitled to terminate this Contract by giving written notice thereof to City of Fayetteville prior to the expiration of the Inspection Period (as hereinafter defined), whereupon the Earnest Money less Fayetteville's cost of obtaining the Title Commitment and for the Survey, shall be returned to Legacy Project, and thereafter City of Fayetteville and Legacy Project shall have no further obligations or liabilities to each other hereunder. "Inspection Period" shall mean that period beginning upon the approval by the Fayetteville City Council of this Contract and ending at the time that the Fayetteville Planning Commission has approved the Preliminary Plat or Large Scale Development for this land in a form and manner acceptable to Legacy Project with no appeal taken to the City Council or when the City Council approved a Planned Zoning District for this project in a form and manner acceptable to Legacy Project or approves (on appeal) the Preliminary Plat or Large Scale Development for this property or major part thereof in a form and manner acceptable to Legacy Project. Upon such final approval by the Planning Commission or City Council of a Large Scale Development, Preliminary Plat or Planned Zoning District in a form and manner acceptable to Legacy Project, the Inspection Period expires and Legacy Project loses its right to terminate this contract. 8. Approvals. City of Fayetteville agrees to cooperate with Legacy Project in obtaining any and all authorizations, approvals, and permits required and needed to develop this property as a Planned Zoning District, Preliminary Plat or Large Scale Development. In the event all such authorizations and approvals from the Fayetteville City Council and Fayetteville Planning Commission are not obtained by Legacy Project, Legacy Project shall have the right to terminate this contract without further liability and to be refunded the Earnest Money by the City of Fayetteville. 9. Closing Date and Place. The Closing hereunder shall take place within thirty (30) days after the expiration of the Inspection Period. If on the scheduled Closing Date, (1) Legacy Project has made objections in accordance with Section 6 hereof that have not been curcd or waived; (ii) the Title Company has advised that it will not issue the Owner's Title Insurance Policy in accordance with Section 13(e) below; (iii) City of Fayetteville is in default of any of its obligations, covenants, representations or warranties set forth in this Contract, (iv) then Legacy Project may, at its sole option: (x) waive any defect or requirement and close the transaction herein contemplated; (y) 3 • • extend the Closing for such reasonable time as maybe required for City of Fayetteville to cure any title defect or other default hereunder, such postponed date shall then become the Closing Date; or (z) terminate this Contract if such defect constitutes a material breach of this Contract and be refunded the Earnest Money by the City of Fayetteville. 10. City of Fayetteville's Representations and Warranties. City of Fayetteville represents and warrants to Legacy Project as follows: a. City of Fayetteville has and, at the time of Closing, will have and will convey to Legacy Project by general warranty deed good and marketable fee simple title to the Property, free and clear of any and all encumbrances and title exceptions other than the Permitted Exceptions. b. There are no adverse parties in possession of the Property and no parties in possession of the Property as lessees, tenants at sufferancc or trespassers; and no party has been granted any license, lease or other right relating to the use or possession of the Property. Public city streets shall remain open and available for public use. c. There is no pending or threatened condemnation or similar proceeding affecting the Property or any part thereof, nor is any such proceeding contemplated by the City of Fayetteville. d. No portion of the Property is affected by any special assessments, whether or not constituting a lien thereon, nor is any such proceeding contemplated by the City of Fayetteville. e. There are no unpaid charges, debts, liabilities, claims or obligations arising from the ownership and/or operation of the Property which could give rise to any mechanic's or materialmen's or other statutory lien against the Property, or any part thereof, or for which Legacy Project will be responsible. f The Property has full and free access to and from a public street and City of Fayetteville has no knowledge of any pending or threatened governmental proceeding or any other act or condition which would limit or result in the termination of such access. g. There is no pending or to the knowledge of the City of Fayetteville threatened judicial, administrative or other proceeding which might adversely affect the current zoning classification of the Property, and there is no fact which would result in a modification or termination of such zoning classification. h. There is no pending or to the knowledge of the City of Fayetteville threatened litigation, actions or proceedings against City of Fayetteville or the Property which could adversely affect title to the Property or any part thereof or the ability of City of Fayetteville to perform any of its obligations hereunder or the use of the Property by Legacy Project. i. No consent or approval of any person, entity or of any governmental agency or authority is required with respect to the execution and delivery of this Contract by City of 4 • • Fayetteville or the consummation by City of Fayetteville of the transactions contemplated hereby or the performance by City of Fayetteville of its obligations hereundcr. ,l. City of Fayetteville has not received notice from any governmental, agency requiring the correction of any condition with respect to the Property, or any part thereof, by reason of a violation of any federal, state, county or city statute, ordinance, code, rule or regulation or stating that any investigation has been commenced or is contemplated regarding any of the foregoing. k. Performance of this Contract will not result in any breach of, or constitute any default under, or result in the imposition of any lien or encumbrance upon the Property under, any agreement or other instrument to which City of Fayetteville is a party or by which City of Fayetteville or the Property might be bound. 1. There are no attachments, executions, assignments for the benefit of creditors, receiverships, conservatorships or voluntary or involuntary proceedings in bankruptcy or pursuant to any other debtor relief laws contemplated or filed by City of Fayetteville or pending against City of Fayetteville or the Property. m. There are no contracts or other obligations outstanding for the lease, sale, exchange, or transfer of the Property or any portion thereof. n. City of Fayetteville has full power and authority once the Fayetteville City Council has formally accepted this Contract by Resolution to enter into this Contract and to perform its obligations under this Contract. This Contract constitutes the legal, valid and binding obligations of City of Fayetteville once it is accepted by Fayetteville City Council Resolution. Legacy Project's obligation to close this Contract shall be contingent on the above representations and warranties also being true and correct on the Closing Date. I 1. Covenants of City of Fayetteville. City of Fayetteville covenants and agrees with Legacy Project that: a. City of Fayetteville will advise Legacy Project promptly of any litigation, condemnation or administrative hearing conceming or affecting the Property of which City of Fayetteville has knowledge or notice. b. City of Fayetteville will not knowingly allow or permit the introduction, spillage, release, discharge, use, storage or disposal of any pollutant of any kind into or onto the surface water, ground water, soil or subsurface of the Property. 12. Risk of Loss. Risk of all Toss, destruction or damage to the Property or any portion thereof, from any and all causes whatsoever until consummation of the Closing shall be borne by City of Fayetteville. In the event of damage by fire or other casualty or a taking by condemnation or similar proceedings or actions of all of the Property, or any portion of the Property which is material to the use of the remainder of the Property, Legacy Project shall have the option to terminate this 5 • • Contract upon written notice to City of Fayetteville, in which event the Earnest Money less Fayetteville's expenditures for Title Commitment and Survey shall be promptly refunded to Legacy Project, and neither Legacy Project nor City of Fayetteville shall have any further right or obligation hereunder. 13. City of Favetteville's Obligations at Closing. At the Closing, City of Fayetteville shall deliver or cause to be delivered to Legacy Project, at City of Fayetteville's sole cost and expense, each of the following items: a. A general warranty deed duly executed and acknowledged by City of Fayetteville, conveying to Legacy Project good, marketable fee simple title in the Property, subject only to the Permitted Exceptions. b. A current certificate from the Title Company, reflecting no financing statements (UCC -1s) or other filings which affect the Property or any part thereof. c. An Owner's Policy of Title Insurance (the "Owner's Policy") in the amount of the Purchase Price issued by the Title Company on the standard form in use in the State of Arkansas, on the Policy of a Title Insurance Company satisfactory to Legacy Project, insuring good and marketable fcc simple title to the Property in Legacy Project, subject only to the Permitted Exceptions and the standard printed exceptions, but containing extended coverage endorsements acceptable to Legacy Project. All exceptions, conditions or requirements described in Schedule 8, Section 1 of the Title Commitment which are the obligation of City of Fayetteville or which are required to be satisfied in order to cause the Owner's Policy to be issued shall be released or satisfied prior to or at Closing, and such items and requirements shall not constitute Permitted Exceptions (whether or not Legacy Project makes any objections thereto) nor be exceptions to the Owner's Policy to be provided by City of Fayetteville. d. City of Fayetteville shall, at City of Fayetteville's sole cost and expense, make sewer and water available to the boundary of the Property within two months of the Closing date. e. Such evidence or documents as may be reasonably required by Legacy Project or the Title Company evidencing the status and capacity of City of Fayetteville and the authority of the person or persons who are executing the various documents on behalf of City of Fayetteville in connection with the sale of the Property. f. Afler the Closing is completed, the City of Fayetteville shall make available to Legacy Project the amount of Seven Hundred Thousand Dollars ($700,000.00) to be used solely to reimburse Legacy Project for its infrastructure construction expenses on the property described in Exhibit "A". All expenses to be reimbursed by this 5700,000.00 grant must meet all grant terms. 14. Legacy Project's Obligations at Closing. At the Closing, Legacy Project shall deliver to City of Fayetteville the following items: 6 • • a. The Purchase Price (Five Million Two Hundred Thousand Dollars), in cash, subject to any prorations or other adjustments contained in this Contract Legacy Project will receive credit for the SI0,000.00 Earnest Money previously paid. b. An agreement to convey and deed one hundred (100) acres, more or less, of the Property identified by Legacy Project to an environmental conservation non-profit organization acceptable to and determined by Legacy PrQlect based upon a selection process submitted with the development plans acceptable to City of Fayetteville, which acreage shall not be any part of the net usable acreage unless otherwise voluntarily approved by Legacy Project in its sole discretion. The conveyance shall be made within twenty-four (24) months after Closing and the conservation land shall be preserved and protected by Legacy Project until final conveyance. c. Such evidence or documents as may reasonably be required by City of Fayetteville or the Title Company evidencing the status and capacity of Legacy Project and City of Fayetteville and the authority of the person or persons who are executing the various documents on behalf of Legacy Project and City of Fayetteville in connection with the purchase and sale of the Property. 15. Prorations and Costs. Ad valorem taxes for the then current year shall be prorated at the Closing effective as of the Closing Date. If the Closing shall occur before the tax rate is fixed for the then current year, the proration of taxes shall be based upon taxes for the prior year and adjusted for the year of closing when they become finally determined with such settlement to be made within ten (10) days after the date taxes are finally determined. City of Fayetteville shall be responsible for any and all taxes related to the Property for years prior to Closing due to a change in land usage or ownership. City of Fayetteville and Legacy Project shall jointly be responsible for any and all transfer taxes, conveyance taxes (including, but not limited to, documentary stamp taxes) and/or recording fees payable on account of transfer of title to the Property to Legacy Project. Additionally, City of Fayetteville shall be responsible for any and all "rollback" taxes arising from the Property's use prior to Closing. 16. Reservation of Public Streets, Right -of -Ways, Utility Easements and Temporary Construction Easements. A new waste water treatment facility project is currently in the preliminary stages of design and construction for the City of Fayetteville. As part of that project, many new waste water collection systems will be installed around the city and a large gravity main is planned for the north side of Clabber Creek across this property from East to West. It is therefore understood that, as part of this conveyance, Legacy Project will convey to the City of Fayetteville, at no cost to the city and on forms to be provided by the City of Fayetteville or their designee, a permanent Water/Sewer Easement of 40 foot width parallel to and south of the planned extension of Truckers Drive and any alignment adjustments as mutually agreed and a Temporary Construction Easement of 150 foot width south of the permanent easement, along with the right of ingress and egress across the property to facilitate construction. The Temporary Construction Easement shall terminate upon completion of the initial construction of the sewer main. The City of Fayetteville agrees to maintain a periodic consultation with Legacy Project as to the desirable and necessary design location of this proposed sewer main sewer line. Existing public streets, rights-of-way and easements shall remain public and be available for public use. 7 • • 17. Brokerage Commission. City of Fayetteville and Legacy Project each represent and warrant that it has not employed a real estate broker or agent in connection with this transaction, or otherwise taken any action which would subject either party to liability for any commission or fee relating to the purchase and sale of the Property. 18. City of Fayetteville's Default. In the event of City of Fayetteville's default hereunder, Legacy Project shall, as Legacy Project's sole and exclusive remedy, terminate this Contract by giving written notice from Legacy Project to City of Fayetteville and the Eamest Money will be immediately returned to Legacy Project. 19. Legacy Project's Default. In the event that Legacy Project shall fail to consummate this Contract for any reason, except City of Fayetteville's default or the termination of this Contract pursuant to any right of termination given to Legacy Project herein, the City of Fayetteville, as its sole and exclusive remedy for such default, shall have the right to terminate this Contract by notice to Legacy Project and to retain the Earnest Money. 20. Notice. All notices, demands, or other communications of any type (herein collectively referred to as "Notices") given by City of Fayetteville to Legacy Project or by Legacy Project to City of Fayetteville, whether required by this Contract or in any way related to the transaction contracted for herein, shall be in writing and shall be deemed delivered when actually received, or, i fearlier and whether or not actually received, (i) if delivered by courier or in person, when left with any person at the address reflected below, if addressed as set forth below, (ii) ifby facsimile, upon the transmittal of same, addressed and directed to the facsimile number noted below, (iii) ifby overnight courier service (such as, by way of example but not limitation, U.S. Express Mail or Federal Express) with instructions for delivery on the next business day, one (1) business day after having been deposited with such courier, addressed as reflected below, and (iv) if delivered by mail, when deposited in a Post Office or other depository under the care or custody of the United States Postal Service, enclosed in a wrapper with proper postage affixed (as a certified or registered item, retum receipt requested), addressed as follows: To Legacy Project: With Copy To: Legacy Project, LLC 5417 Pinnacle Point Drive, Suite 100 Rogers, Arkansas 72758 Attention: H. Collins Haynes Telephone: 479.464.8622 James W. Smith 3425 North Futrall Drive, Suite 103 Fayetteville, Arkansas 72703 Telephone: 479.695.1105 To City of Fayetteville:City of Fayetteville, Arkansas 113 W. Mountain Street Fayetteville, Arkansas 72701 Attention: Dan Coodv, Mayor Telephone: 479.575.8330 8 With Copy To: • • Hugh Earnest Chief Administration Officer 113 W. Mountain Street Fayetteville, Arkansas 479-575-8330 21. Section 6045(e) Compliance. City of Fayetteville and Legacy Project acknowledge and agree that Section 6045(e) of the Internal Revenue Code may require that notice of the sale and purchase of the Property described in this Contract be provided to the Internal Revenue Service by preparation of and filing with the Internal Revenue Service of Form 1099-B; and further, City of Fayetteville and Legacy Project agree to furnish and provide to City of Fayetteville; Attn: Accounting Department or to the Title Company any and all information that the Title Company may require in order for it to (i) comply with all instructions to Form 1099-B in preparation thereof and (ii) prepare and timely file with the Internal Revenue Service said Form 1099-B with respect to this transaction. 13y execution of this Contract, the Title Company agrees to provide to City of Fayetteville and Legacy Project, following the Closing, evidence that Form 1099-B was timely filed with the Internal Revenue Service, if such filing is required thereby. 22. Governing Law and Venue. This Contract shall be construed in accordance with the laws of the State of Arkansas and any court action arising out of this Contract shall be brought in Washington County, Arkansas. 23. Survival. All covenants, agreements, representations and warranties contained herein shall survive Closing and shall be binding upon the parties hereto and their successors and assigns. 24. Capacity. Except as hereinafter provided, each person executing this Contract hereby represents and warrants that he has the authority to do so and that his signature shall bind the entity for which he signed (after formal City Council approval by Resolution). Each party hereto shall provide the other party and the Title Company with such documentation as the Title Company or Legacy Project's or City of Fayetteville's attorney deems necessary to evidence the authority of that party to perform the actions contemplated herein. 25. Timing. Time is of the essence of this Contract. For purposes hereof, the "Effective Date" of this Contract shall be the date it is accepted by the Fayetteville City Council by Resolution. If the date that the performance of any obligations arising hereunder, or the date upon which any notice shall be given, is a Saturday, Sunday or any legal holiday under the laws of the State of Arkansas, then such date shall be extended to the next business day immediately succeeding such Saturday, Sunday or legal holiday. Notwithstanding anything contained in this Contract to the contrary, Legacy Project shall have the sole right and ability to terminate this Contract without further liability or obligation in the event the Fayetteville City Council does not accept and approve this Contract on or before May 20, 2003. Legacy Project shall exercise such termination right by providing to the City of Fayetteville a written notice of such termination at any time after May 20, 2003. 26. Complete Agreement. This Contract embodies the complete agreement between the parties hereto and cannot be varied or terminated except by written agreement of the parties. 9 • • • 27. Removal from Market. Upon the full execution of this Contract, City of Fayetteville hereby agrees that it shall neither solicit nor accept offers for the purchase, lease or development of the Property from any parties other than Legacy Project or its assigns. 28. Counterparts. This Contract maybe executed in any number of counterparts, each of which will be deemed to be an original and which together shall constitute the agreement of the parties hereto. 29. Good Faith and Fair Dealing. The parties agree to deal with each other fairly and in good faith. 30. The City Of Fayetteville Asserts And Legacy Project, LLC Hereby Acknowledges That This Offer Is Expressly Contingent Upon The Approval Of This Offer Of Contract Sale By The City Council Of Fayetteville And That The Failure Of The Council To So Approve Will Make All Portions Of this Contract Sale Null And Void. EXECUTED on this, the Z day of April, 2003, by Legacy Project, LLC. LEGACY PROJECT, LLC, an Arkansas limited liability company 4 EXECUTED on this, them day of , 2003, by City of Fayetteville. By: ISLAND DEVELOPMENT, LLC, Authorized Member By: V`i H. Collins Hay r horized Membcr LT(4 l • CITY OF FAYETTEVILLE, A Municipal Corporation 0 By Dan Coody, Mayor i 0 1. Witness: • 0 d Sondra Smith Fayetteville City Clerk 10 • • COMMUNITY SUNK MEMBER FDNC HAYNES & ASSOCIATES, LTD, 5417 PINNACLE POINT DR.. STE 100 479-464-8622 ROGERS, AR 72758 4/23/2003 4743 91.506/a29 150 PAY TO THE City of Fayetteville "10,000.00 • ORDER OF $ Ten Thousand and 00/100 DOLLARS City of Fayetteville Washington County, AR Legacy Project, LLC, Earnest Money MEMO 1 I1a0047430 9:0829050689: n■550430141 r N • • EXHIBIT "A" CITY OF FAYETTEVILLE NORTH INDUSTRIAL PARK PROPERTY DESCRIPTION: A part of Section 33, Township 17 North, Range 30 West, and being more particularly described as follows, to -wit: Beginning at tge Northwest comer of said Section 33; thence along the West line of said section South 02° 28' 11" Wcst 1816.06 feet; thence South 87° 19' 24" East 330.00 feet; thence South 02° 28' 10" West 2480.66 feet; thence South 87° 21' 18" East 660.23 feet; thence South 02° 25' 45" Wcst 329.99 feet; thence South 87° 21' 18" East 660.00 feet; thence North 02° 25' 51" East 329.86; thence South 87° 11' 53" East 631.86 feet to the westerly right of way line of U. S. Highway 71; thence Northerly along said west right of way line the following bearings and distances; North 34° 22' 18" East 922.60 feet North 38° 27' 59" East 150.76 feet North 34° 22' 25" East 949.12 feet North 27° 10' 09" East 171.37 feet North 07° 15' 05" East 170.41 feet North 05° 19' 10" West 280.77 feet North 12° 48' 23" West 100.11 feet North 16° 36' 56" West 57.67 feet North 04° 16' 48" East 188.26 feet North 16° 24' 53" East 126.58 feet North 31° 34' 48" East 190.36 feet North 50° 13' 36" East 191.34 feet North 66° 53' 26" East 127.62 feet North 75° 15' 02" East 117.54 feet North 74° 59' 16" East 100.11 feet North 26° 01' 09" East 74.14 feet; thence leaving said west right of way line and running North 87° 17' 25" West 1100.15 feet; thence North 02°26' 17" East 1030.76 feet to the North line of Section 33; thence along the North line of Section 33 North 87° 14' 56" West 247.50 feet to the North quarter corner of Section 33; thence along the North line of said Section 33 North 87° 19' 24" West 2637.40 feet to the Point of Beginning, containing 289.28 acres, more or less, being subject to rights of way and casements of record. 11 • • EXHIBIT "B" SURVEYOR'S CERTIFICATE The undersigned Registered Public Surveyor (the "Surveyor") hereby certifies to Legacy Project, LLC and/or its assigns ("Legacy Project") and (the "Title Company") that (a) this plat of survey and property description set forth hereon are true and correct and were prepared from an actual on -the -ground survey of the real property (the "Property") shown hereon; (b) such survey was conducted by the Surveyor or under his supervision; (c) all monuments shown hereon actually exist and the location, size and type of material thereof are correctly shown; (d) except as shown hereon, there are no encroachments onto the Property or protrusions therefrom, there are no improvements on the Property, there are no visible easements or rights-of-way on the Property, there are no visible discrepancies, conflicts, shortages in area or boundary line conflicts; (e) the size, location and type of improvements are as shown hereon and all are located within the boundaries of the Property and set back from the Property lines the distance indicated; (f) the distance from the nearest intersecting street or road is as shown; (g) there is ingress and egress to and from the Property by paved, dedicated public streets maintained by the city or county in which the Property is located; (h) all recorded easements have been correctly platted hereon; (i) the boundaries, dimensions and other details shown hereon are true and correct; (j) the Property has access to gas, electric, water, sewer and telephone utilities and the location and size of such utilities are correctly shown hereon, on the Property and on abutting streets and roads; (k) the Property does not serve any adjoining property for drainage, ingress and egress, or any other purpose, (I) no portion of the Property is located within any flood plain or flood pronc area; and (m) this survey conforms to the current standards and specifications for an ALTA/ACSM survey. The Surveyor expressly understands and agrees that Legacy Project, any lenderwho will be granted a lien on the Property, and Title Company are entitled to rely on this plat of survey as being true and accurate; and the consideration paid to the Surveyor for the preparation and certification of such survey has been paid, in part, for the benefit of Legacy Project, any lender who will be granted a lien upon the Property, and Title Company and in anticipation of their reliance hereon. Executed this day of , 2003. Registered Public Surveyor, No. Address: 12 RECEIVED DEC 15 2003 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE U.S OEP NT OF HOUSINGAND ( RAN OEVELOPMEflT • n.I come No 2562.266 111P a S MENT STATEMENT 8. TYPE OF LOM 1. OFHA 2. 0 FMHA 3.06 FF. sneer Ids Merlons Insurance GN Neater CONV.UNOtS.I7. Lo.. screw 4. OVA 5. OCONV.INS. I FATIC 03-74098V C. - MOTE: TIM Ana b Antrr11° one you StM a ere ot WAS settlena costs. Asan. an to an N en outside M Mons no r None b b Intima n s•teeman opera we Ono Rens, awned %po.c r wen W Wase Ord .* M td b nn ?OWL pail O. NAME MIO NAMC53 CF NORPOWER Mil E. """IE "'u'e°CIEss LEGACY PROJECT, LLC., H. COLIJNitITNYF • HAYNES, AUTHORIZED MEMBER 5417 PINNACLE POINT DR-, STE 1 ROGERSAR 72758 � ILV DAN COODY, MAYOR I W. MOUNTAIN FATETfEVIl1E AR 1 STREET 72701 of TIMER OF OF NORTH ARKITY ARBAKANSAS NORTH ARKANSAS 0. PROPERTY ILY.aTIOM PT NW NE NE NE 33-17-30BRONSON FAYETTEVILLE, ARKANSAS a SETTLEMENT ADEM TITLE • SERVICES, INC. RICE CP SETREMENT 2886 BELLA VISTA WAY I'sE21203WTE 1 BELLA VISTA, AR 72714 LT5eu16EMENT CATE ' J. SUMMARY OF BORROWERS TRANSACTION12-12-03 K SUMMARY OF SELLERS TRANSACTION WO. D. GROSS AMOUNT DUE FROM HLMROWOi GROSS AMOUNT DUE TO SELLER 11. Cored are Inc. 5200,000.00400. 4m. mem 1411* p1c* 5,200,000.00 .1W. Peron. Roomy) 40Z Person Property 103. Sstir,.a dn9n to bonuww Ino 14W) 280,813.00 CO. 409. 405. ADJUSTMENTS FOR HEMS PAID BY SEDER P4 ADVANCE ADJUSTMENTS FOR ITEMS PAD BY SELLER IN ADVANCE 106. Cay/Town Lean b 406. O tray b 107. Cony bin w 4m. Cony Casey a. t nen to .. Asae.wvb 1O a. AsanamM to lq, Y. 11. 41. 111.' 411. ni • 120. GROSS AMOUNT DUE FROM BORROWER 5,480,813.00 420 GROSS AMOUNT DUE TO SELLER • 200. AMOUNTS PAD BY OA IN BEHALF OF BORROWER5.200,000.00 500 REDUCTIONS IN AMOUNT DUE TO SEiIFA >Dt. Otpor or e.Mnt nosey 10,000.00 501. Eanaa Deposit tNavc 267. Peon 4PIPva a new boss) 1••e o.n 10,000.00 ]IIx. SrOnt.* Oar b 201 Edson b.1(s) tear send b ala. (In CO) 501 bistro bin 1 M aw)Mt to 12,885.00 XM. Agruia. OtDT11 SOA Peal Of patine* Ion .. ]m Second M ewlPpe 505 Payoff 4 anon no.teay Inn 206 NEW LOAN AMOUNT 513,000,000.0 Scs. 707 INIAL DRAW 5,470,813.00 502. m 5m Sm ADJUSTMENTS FOR HEMS UNPAID BY SELLER ADJUSTMENTS FOR HEMS UNPAID BY SEVEN 21. Chattiest Tres to 5IQ, CITY/Town Mm b 2 1 Canty 1 ,° ' t° bier.lb 7t2.512. MsuwM w !n. Aneenl An. b 711 Tl ]t1 214. ]Il 2u Sh 716. SM. 517. 216. SM >t; Le. 220. SAL -`M) BY/W OWEF 5,480,813.00 5211 MIAS TEDUCT1N 300. CASH AT SETTLEMENT FROM OR TO AMOUNT our saw 22,885.00s.00 BORROWER 800. CASH A7 STO OR FROM SELLER 301. 6q* no* y tom barons M 120) 5,460.813.00 0901. mow mem me to me to se m2 Ler sw'. M 20) 5,222,805.00 rots Pae bre. *mow PN no 15,480,873.00 e62 Len ..trcep. I 303: CASH ® FROM O TO BORROWER have sawn* a,* sere. Ri,* siol 003. CASH ®TO 0 FROM SELLER ( 22,885.00) 5,177,115.00' wretoly mimed One 11110.1 Seidl:mnq Statement and to the bear 1 my glnMOyp Settle- ment band d60wamleTlt6 myelo 00 mty account 0, by me i, this transaction 1 ember lle(IO/. Y H l eros and acmes a statene t of all mei Stat) certify that I neve received a copy ot Mfr NUD.1 SetOo-GA Y PR H. •. LMS 6p.o's HAYNES, A1/T110Rf2Ep MEMBER LIOGfA. To the best or . IM IR101 Settlement Statement which 1 have� 4 recthed and hay or w17 bo disbursed the prepped ta e Due end amnio Ory Laderslpgd a pen d UM bnactln. ter 4 Poen ma'am. R b • ons toUNTO LItt4 11•eRpnwell 16 5. C Sc on 1031 ..6 Swann 1010 Steles W On w any peri Wer "j57a1RM40.a EWn Ids . 1144 P1ot1 Puleedn) .Ota /0190 u1l • 1411Ai1 . DAN GOODY. MAYOR ot the funds which were Pawdbes ,Men cO,nb°m u. i.lCa. M 7409 14110-1 (0747) f(.SP& 110 4.1052 • • r U.S. DEPARTMENT OF HOUS URBAN DEVELOPMENT SETTLEMENT MENT Pugs 2 SFTTIFMENT CHARGES 700 TOTAL SAI FS/BROKERS COMMISSION based an IMMO a fn..pyo., m. 7001 u me.., 1 5 200.000.00 n MI 1 An 1 701 raaenVn GeV cl Sennett 900, NEMS PAYNILE_BLeStINFCLION WITH LOAN 91 then Decietellon Fn % COMMUNITY BANK 002 Loon °Penns 103 Martha Fn to COSBY AND ASSOC. m. Creat Aman 001 to .len i n wceon Fte age_ YA fn.9 Fee 97 A,mmctul Fn 000 Ffccusi m T!F to COMMUNITY BANK 009 1110 all uz All 014 Ait 900 rwMs REQUIRED BY LENDER TO BE PAN IN ADVANCE 10t60n.n .nm 12-12-03 to 907 Meckel m,atlt Penn tor mny 93 Hazsd Menet. F rl Ma los tes. to OA 10 1000 RESERVES DEPOSITED WITH LENDER 'Ti want .n,e.tct LODE Mol Income 1021 pry ween{. Tan, • 1 Mat met e 1TO not ■ 1 mo not 0 1 Inc 1001 Cane Prelate Tun mot 0 1 ..,. ?OM Arnim Atte-tweets. feat 11 1 196 1007 nal 1100 TTTLE CHARGES eels. ft m0 ma, 01 mo ft" a It m 1101 Mate(. a Dawn Fn to BRONSON TTRE SERVICES INC. 1102 Abram/ or MP 3.ad to BRONSON TTRE Iq) IIM1 este e➢o1 1 260.000.00 3 500.00 150.00 1101_ 111t 'utter. llaviirt 1103 Doaeeet ftmn.0m to BRONSON TRIS Hos Naar Fn. 1107 ARoerff Fn, to F LEWIS STEEN FN Met l Aon Ism, x0 Iloi Me Want to FIRST AMERICAN TUIE INSURANCE (mann Aon Rem, No ' 2550000 1 IIw Lender's COmiT,i 1 13 0011000 00 250.00 250 00 7500 7500 • 30 00 30.00 13.000.00 30.00 30.00 12 500.00 1110 Dent. Cowling 1 5200.000.00 1111 1200 GOVERNMENT RECORDING AND TRANSFER CHMOES 1201 Nec. Fm,: Dees 11 00 Mei 1 50.00 Bann 1 81 00 1Al2 EllyMotate ui.amn IKIS it' Di1 Mvhaoe 1 1201 Sate pNtanse Deed 1 Monona* 1 VIli MC RM yyap� � 1600 1300 ADOMONAL SETTLEMENT C.cARGE8 1117 Sarni 1302 Pot ■meceon 1111 AT1tn FY Fel; 1101 IX.ST ¶S€AC,I 1121 a RAMSFY SURVEYING to be POC111450 to MITCHF1LWILLIAMS to MITCHFI L VAI I LAMS 1306 117 1400 TOTAL SFTIIEMFNT CHARGES lento/ on San 103 Secton J end 502 Secfbn 10 3 176.00 52500 280.813.00 12 885 00 Ace. m+eooe Receipt a Ms Schoenen Steen. an Ayers 1w Caeecwu nee LLC., H. COWNS 33-1054295 ( OF"FAY) Rete Ft)792 W0 (400, edrAcre n. ma w. 7409 • • SELLER'S/BORROW. AFFIDAVIT State of ARKANSAS County of BENTON The undersigned, referred to as Seller/Borrower, whether one or more, being first duty sworn on oath that the Seller/Borrower is the owner of the following described lands, situtated In WASHINGTON County, ARKANSAS . To -wit: SEE ATTACHED EXHIBIT' W Seller/Borrower further state the following facts are true: t. There is no adverse occupant of the property described above. 2. Seller/Borrower and those under whom Seller/Borrower claims title, have been In peaceful possession of said lands for more than 7 years past. 3.. There are no unrecorded options to purchase, sates contracts or lease agreements outstanding, which affects the property described above. 4. There have been no Improvements made on the property described above during the past 130 days for which a mechanics' and materlalmens' lien may be filed. S. No appliances have been Installed In the property described above on deferred payments which are unpaid for. 6. The property described above is not traversed by any roadways or easements except those shown on record. There are no delinquent assessments due on the resident's association cm the property described above, if applicable. 8. That no money whatsoever is owed on subject property to any person, firm, or corporal( other than the following 9. There are no outstanding judgments against Seller/Borrower as a result of legal action to include, but not limited to, tax liens, divorce, bankruptcy or foreclosure. 10. That the marital status of Seller/Borrower has not changed since they acquired above described property. Witness the hand and seal of the undersigned of this 12th day of peceinber 2003 . CIriI ' F Ana. Seller TY OF AYETTEVILLE ,EtlivOkttcs Ale � .7i: .±. ODI' MA 04 (`.‘ J�t, •. &worn to ;• MytAminisslon Expires: Borrower. COW S PROJECT, LLC., H. Bor UTHORIZED MEMBER me, a Notary Public on this 12th 2003 . Notary Public: Please return this to Wonsan Title Services. Inc., 1419 W. Walnut, Rogers, Arkansas, 72765 File -,Y AFRO If Parcel Na Patel Wo.. Patel No Parcel Ns Parcel No. 76615342401 76615360000 76515363000 76615833000 7195-151170000 • WARRANTY DEED MUNICIPAL CORPORATION BE IT KNOWN BY THESE PRESENTS: • THAT the CITY OF FAYETTEVILLE, ARKANSAS, a municipal cor- poration, hereinafter called GRANTOR, for and in consideration of the sum of One -hundred Dollar ($100.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey unto Legacy Project, LLC, an Arkansas limited liability corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: PROPERTY DESCRIPTION: A part of Section 33 Township 17 North, Range 30 West, and being more particularly described as follows, to -wit Beginning at the Northwest comer of said Section 33; thence along the West line of said Section 33 South 02' 28' 11" West 1816.06 feet thence South 87' 19' 24" East 330.00 feet thence South 02' 28'10' West 2480.66 feet thence South 87" 21 18" East 660.23 feet thence South 02'25 45" West 329.99 feet thence South 87' 21' 18" East 660.00 feet thence North 02' 25' 51" East 329.86; thence South 87' 11' 53" East 631 86 feet to the westerly right of way line of U. S. Highway 7V thence Northerly along said westerly right of way line the following bearings and distances; North 34' 22418- East 922.60 feet North 38' 2T North 34' 22' North 27' 10' North or 15' North 05' 19' North 12' 48' North 16' 36' North 04'16' North 16' 24' North 31' 34' North 50' 13' North 66' 53' North 75' 15' 59" East 150.76 fed 25" East 949.12 fed 09" East 171 37 fed 05" East 170.41 feet 10- West 280.77 feet 23" West 100.11 feet 56" West 57.67 feet 48" East 188.26 fed 53" East 126.58 feet 48" East 190.36 feet 36' East 191 34 fed 26" East 127 62 fed 02" East 117 54 feet North 74' 59' 16' East 100.11 feet North 26' 01 09" East 74.14 feet thence leaving said west right of way line and running North 87' 17' 25" West 1100.15 feet; thence North 02 26417" East 1030.76 fed to the North line of Section 33; thence along the North line of Section 33 North 87' 14' 56' West 247.50 feet to the North quarter comer of Section 33; thence continuing along the North line of said Section 33 North 87'19' 24" West 2637.40 fed to the Point of Beginning, containing 289.27 acres, more or less, being subject to rights of way and easements of record, TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantor, hereby covenants that it is lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantor will forever warrant and defend the title to the said lands against all legal claims whatever. • Warranty Deed City of Fayetteville - Legacy Prgect, LLC Page 2 of 2 • WITNESS the execution hereof on this /c2 6` day of J/BcteasiJe^e--- 2003 vo t r I t 4, ATS • Mit CITY OF FAYETTEVILLE, ARKANSAS, es,ma.;) war Sondra Smith •City Clerk (Seal) 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 Coady and Sondra Smith, 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 MY COMMISSION EXPIRES: day of 2003. Notary Public