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HomeMy WebLinkAbout100-04 RESOLUTION• RESOLUTION NO. 100-04 A RESOLUTION TO APPROVE THE SALE OF THE CITY OWNED ANNEX TO THE FAYETTEVILLE PUBLIC LIBRARY FOR $551,000.00 PURSUANT TO THE BID FROM THE FULBRIGHT BUILDING LLC WHEREAS, on or about October 7, 2003, the City Council passed an ordinance to exempt a potential sale of the Library Annex from the requirements of Ordinance No. 4358 "In order to ensure neighborhood compatibility and preservation of the historic exterior of the Roberta Fulbright Library building ...,"; and WHEREAS, the City and Library Board prepared a Request For Proposals on April 15, 2003, for the sale of the Library and Annex; and WHEREAS, the one proposer, Fulbright Building LLC, offered to purchase both structures for One Thousand Dollars more than their individually appraised value; and WHEREAS, the Fayetteville Library Board of Trustees voted to sell the Fayetteville Public Library building to Fulbright Building LLC on June 21, 2004. NOW, THEREFORE, 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 agrees to sell the city -owned Library Annex to Fulbright Building LLC for $551,000.00. PASSED and APPROVED this the 6th day of July, 2004. ATTEST: SONDRA SMITH, City Clerk By: APPROVED: DAN COODY, Mayor .0,111111111,,„ U,•'c,\T Y O, . G� :13' FAYETfEVILLE; t %,y�•yRkANSPSJ���• ',? ,y • S ,,G70N ',,a• • MED -ARK BUILDING: • • ATTACHMENT D 3 The Annex COMMENCING AT THE NORTHWEST CORNER OF THE SW 'A OF THE NW 'A OF SECTION 15, TOWNSHIP 16 NORTH, RANGE 30 WEST, WASHINGTON COUNTY, ARKANSAS. THENCE, SOUTH 87° 39' 09" EAST FOR A DISTANCE OF 472.00 FEET WITH THE NORTH BOUNDARY LINE OF SAID SW ''A OF THE NW 1/4.; THENCE SOUTH 02° 41' 46" WEST FOR A DISTANCE OF 29.59 FEET TO A 5/8"1. PIN (set) ON THE SOUTH RIGHT-OF-WAY LINE OF DICKSON STREET FOR THE POINT OF BEGINNING; THENCE SOUTH 87° 36' 08" EAST FOR A DISTANCE OF 132.59 FEET WITH SAID SOUTH RIGHT-OF-WAY LINE; THENCE SOUTH 02° 42' 14" WEST FOR A DISTANCE OF 336.62 FEET TO A POINT 0.6 FEET NORTH OF AWI. PIN (fd); THENCE NORTH 88° 48' 28" WEST 132.59 FEET TO A COTTON SPINDLE (fd); THENCE NORTH 02° 41' 47" EAST FORA DISTANCE OF 339.41 FEET TO THE POINT OF BEGINNING. THE ABOVE DESCRIBED PROPERTY CONTAINS 1.03 ACRES OF LAND MORE OR LESS. TOGETHER WITH AND SUBJECT TO ANY EASEMENTS OR RESTRICTIONS OF RECORD. HISTORY According to Washington County records, the subject has been held in its' current ownership form for many years. The original building was built m 1961 and an addition was made in 1969-70. To the appraiser's knowledge, there have been no transactions involving the subject property within the past three years. 15 ATTACHMENT D • OFFER AND ACCEPTANCE CONTRACT 1. Buyer, The Fulbright Building, LLC, offers to buy, from the City of Fayetteville, Seller, subject to the terms and conditions set forth herein, the following described property: See attachment D3 2 Purchase Price: subject to the following conditions the Buyer shall pay for the property at closing the total and cash payment of $551,000 cash. 3 Contingent Earnest Money Deposit: The Buyer herewith tenders a check for $ 10,000 to the City of Fayetteville , hereinafter referred to as Seller, as earnest money, which shall apply on the Purchase Price. This offer of purchase is contingent upon approval of the Fayetteville City Council 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 Buyer. If Buyer fails to fulfill his obligations under the contract or after all conditions have been met, Buyer fails to close this transaction the earnest money may at the option of the Seller, become liquidated damages to the Seller. Alternatively, Seller may assert legal or equitable rights which it may have because of breach of this contract. 4 Conveyance will be made to 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 Seller. 5 Seller shall furnish, at Buyer's cost a policy of title insurance in the amount of the purchase price from a title insurance company as selected by Buyer. 6 Seller agrees to allow Buyer, at Buyer's expense, to survey the property. Seller agrees, at Seller's expense, to cure any title problems which may result from any differences between the recorded legal description 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 closing. 8. Seller acknowledges that Buyer offers to purchase the property as outlined in buyer's proposal and Request For Proposal incorporated herein and made a part hereof. 9. The closing date is designated to be October 1, 2004. The location and time of closing shall be agreed to by Seller and Buyer. e. • • 10. Possession of the property shall be delivered to the Buyer on the date of closing. 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. This AGREEMENT shall be governed by the laws of the State of Arkansas. 14. This AGREEMENT, when executed by both Buyer and 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. 15. This contract expires, if not accepted, on or before July 19, 2004. CITY CLERK if dJUd/•✓j Lat.( �/o� Date:� Date: 7/27/07( Date: //l9/Q5,‘ ATTACHMENT D OFFER AND ACCEPTANCE CONTRACT 1. , offers to buy, from the City of Fayet&eville, eller, subject to the terms and conditions set forth herein, the following described property: See attachments D1, D2, D3, Purchase Price: subject to the following conditions the Buyer shall pay for the property at closing the total and cash payment of $ i,15a , 000.0° cash. Contingent Earnest Money Deposit: The Buyer herewith tenders a check for $ 10,000 to the City of Fayetteville and Fayetteville Public Library hereinafter referred to as Seller, as earnest money, which shall apply on the Purchase Price. This offer of purchase contingent upon approval of the Library Board of Trustees and Fayetteville City Council 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 Buyer. If Buyer fails to fulfill his obligations under the contract or after all donditions have been met, Buyer fails to close this transaction the earnest money may at the option of the Seller,. become liquidated damages to the Seller. Alternatively, Seller may assert legal or equitable rights which it may have because of breach of this contract. 4. Conveyance will be made to Buyer'by general warranty deed, except it shall be subject to recorded instruments and easements, ifany, which do not materially affect the value of the property. Such conveyance shall include mineral rights owned. by Seller. 5. Seller shall furnish, at Buyer's cost a policy of title insurance in theamount of the purchase price. from a title insurance company as selected by Buyer. 6. Seller agrees to allow .Buyer, at Buyer's expense, to survey the property. Seller agrees, at Seller's expense, to cure any title problemswhich may result from any differences between the recorded legal description 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 assessme_nts__and rental payments shall be prorated as of closing. 8. Seller acknowledges that Buyer offers to purchase the property as outlined in buyer's proposal and Request For Proposal incorporated herein and made a part hereof. 9. The closing date is designated to be Q n k,.. 1i,,pny ( eo) days after acceptance of this offer by the Seller. The location and time of closing shall be agreed to by Seller and. Buyer. 10. Possession of the property shall be delivered to the Buyer on the date of closing. 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. This AGREEMENT shall be governed by the laws of the State of Arkansas. 14. This AGREEMENT, when executed by both Buyer and 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. 15. This contract expires, if notaccepted, on or before the day of 1 .1uiy , 2004. 16. NOTICE: BUYER ASSERTS AND SELLER HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE LIBRARY BOARD OF TRUSTEES AND FAYETTEVILLE.CITY COUNCIL'S APPROVAL OF THIS OFFER OF PURCHASE AND THAT THE FAILURE OF THOSE ENTITIES TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO BUYER OF THE $ 10,000 EARNEST MONEY DEPOSIT. BUYER lugricloit MAYOR its J* CL65. LL.L Date: AOLOr i • TAW CITY CLERK LIBRARY Date: Date: Date: 7/4Y ��cp11.111111 K/TR t,"ff CE.. IS'L'o \SY OE o: •� ;FAYETTEVILLE: 3 .t'• � : ti %9syNKANSGOJ�', �,,,c roN c°,•• • ,C.. a rn..ilirlLl1 1 1/ 1 1 me Liorary complex • • LEGAL DESCRIPTION The library complex site has recently beensurveyed along with all other properties held by the Fayetteville Public Library. The complex site was acquired via multiple transactions over the years. The appraiser is not certain whether a separate survey or combined legal description exists for this particular site. Therefore, for the purposes of thisappraisal, the subject's exact legal description is subject to a legal survey. following is a provided survey description of the entire complex site with `less and except' the site of the original Library building: ALL THAT CERTAIN TRACT OR PARCEL OF LAND BEING A PART OF THE SW ''A OF THE NW' 'A OF SECTION 15, TOWNSHIP 16 NORTH, RANGE 30 WEST, WASHINGTON COUNTY, ARKANSAS SAID. TRACT BEING THOSE TRACTS AS DESCRIBED IN BOOK 1344, PAGE 109, 534/112, 534/111, 683/352, AND 836/379, OF WASHINGTON COUNTY RECORDS AND BEING MORE PARTICULARY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: COMMENCING -AT THE NORTHWEST CORNER OF THE SW ''A OF THE NW ''A OF SECTION 15, TOWNSHIP 16 NORTH, RANGE 30 WEST, WASHINGTON COUNTY, ARKANSAS THENCE, SOUTH 87° 39'.09" EAST FOR A DISTANCE OF 472.00 FEET WITH THE NORTH BOUNDARY LINE OF SAID SW ''A OF THE NW 1/4:; THENCE SOUTH 02° 41' 46" WEST FOR A DISTANCE OF 29.59 FEET TO A 5/8"1: PIN (set) ON THE SOUTH RIGHT-OF-WAY LINE OF DICKSON STREET FOR THE, POINT OF BEGINNING; THENCE SOUTH 87° 36' 08"EAST FOR A DISTANCE OF 443.50 FEET WITH SAID SOUTH RIGHT-OF-WAY LINE TO AN 'T' SET IN CONCRETE; THENCE SOUTH 02° 4P 16" WEST FOR A DISTANCE QF 175.87 FEET TO A R/R SPIKE (set) THENCE NORTH 87° 18' 44" WEST FORA DISTANCE OF 60.00 FEET TO A 5/8"I.PIN (set); THENCE SOUTH 02 041116" WEST FOR A DISTANCE OF 60.00 FEET TO A 5/8"LPIN (set); THENCE NORTH 87° 18' 44" WEST FOR A DISTANCE OF 178.50 FEET; THENCE NORTH 02° 41' 16" EAST FOR DISTNCE OF 9.53 FEET; THENCE NORTH 87° 13' 11" WEST FOR A DISTANCE OF 72.50 FEET TO A 5/8" I PIN (set);THENCE SOUTH 02° 41' 16" WEST FOR A DISTANCE OF 111.97 FEET TO A POINT 0.6 FEET NORTH OF A'/2"I. PIN (fd); THENCE NORTH 88° 48' 28" WEST 132.59 FEET TO A COTTON SPINDLE (fd); THENCE NORTH. 02° 41' 43" EAST FOR DISTANCE OF 339.41 FEET TO THE POINT OF BEGINNING. THE ABOVE DESCRIBED PROPERTY HAVING BEEN SURVEYED BY BART L PETRAY CONTAINS 2.61 ACRES OF LAND MORE OR LESS. TOGETHER WITH AND SUBJECT TO ANY EASEMENTS OR RESTRICTIONS OF RECORD 11 1 1 1• 1 1 1 1 1 1 1 1 1 1 • ATTAtMENT D 2 The Main Building MAIN LIBRARY BUILDING:. • COMMENCING AT THE NORTHWEST CORNER OF THE SW 'A OF THE NW 'A OF SECTION 15, TOWNSHIP 16 NORTH RANGE 30 WEST, WASHINGTON COUNTY, ARKANSAS. THENCE, SOUTH 87° 39' 09" EAST FOR A DISTANCE OF 472.00 FEET WITH THE NORTH BOUNDARY LINE OF SAID SW ''A OF THE NW 1/4.; THENCE SOUTH 02° 41' 46" WEST FOR A DISTANCE OF 29.59 FEET TO A 5/8"1. PIN (set) ON THE SOUTH RIGHT-OF-WAY LINE OF DICKSON STREET THENCE SOUTH 87° 36' 08" EAST FOR A DISTANCE OF 132.59 FEET FOR THE POINT OF BEGINNING; THENCE SOUTH 87° 36' 08" EAST FORA DISTANCE OF 310.91 FEET WITH SAID SOUTH RIGHT-OF-WAY LINE TO AN SET IN CONCRETE; THENCE SOUTH 02° 41' 16" WEST FOR A DISTANCE OF 175.87 FEET TO A R/R SPIKE (set); THENCE NORTH 87° 18' 44" WEST FOR A DISTANCE OF 60.00 FEET TO A 5/8"I.PIN (set); THENCE SOUTH 02 °41' 16 WEST FOR A DISTANCE OF 60.00 FEET TO A 5/8"I PIN (set); THENCE NORTH 87° 18' 44" WEST FOR A DISTANCE OF 178.50 FEET; THENCE NORTH or 41' 16" EAST FOR A DISTNCE OF 9.53 FEET. THENCE NORTH 87°.13' 11" WEST FOR A DISTANCE OF 72 50 FEET TO A 5/8" I PIN (set);THENCE NORTH 02° 42'42" EAST FOR A DISTANCE OF 224.65 FEET TO THE POINT OF BEGINNING. THE ABOVE DESCRIBED PROPERTY CONTAINS 1.58 ACRES OF LAND MORE OR LESS. TOGETHER WITH AND SUBJECT TO ANY EASEMENTS OR RESTRICTIONS OF RECORD HISTORY According to Washington County records, the subject has been held in its' current ownership form for many years. The original building was built approximately 45 years ago and renovations were made in 1991. To the appraiser's knowledge, there have been no transactions involving the subject property within the past three years. 12 • • MED -ARK BUILDING: • • ATTACHMENT D 3 The Annex COIVIMkNCING AT THE NORTHWEST CORNER OF THE SW ''A OF THE NW 'A OF SECTION 15, TOWNSHIP 16 NORTH, RANGE 30 WEST, WASHINGTON COUNTY, ARKANSAS. THENCE, SOUTH 87° 39' 09" EAST FOR A DISTANCE OF 472.00 FEET WITH THE NORTH BOUNDARY LINE OF SAID SW' 'A OF THE NW 1/4.; THENCE SOUTH 02° 41' 46" WEST FOR A DISTANCE OF 29.59 PEbT TO A 5/8"1. PIN (set) ON THE SOUTH RIGHT-OF-WAY LINE OF DICKSON STREET FOR THE POINT OF BEGINNING; THENCE SOUTH 87' 36' 08" EAST FOR DISTANCE OF 132.59 FEET WITH SAID SOUTH RIGHT-OF-WAY LINE; THENCE SOUTH 02° 42' 14 WEST FOR A DISTANCE OF 336.62 FEET TO A POINT 0.6 FEET NORTH OF A %z"I. PIN (fd); THENCE NORTH 88°'48' 28" WEST 132.59 FEET TO A COTTON SPINDLE (fd); THENCE NORTH 02° 41' 47" EAST FOR A DISTANCE OF 339.41 FEET TO THE POINT OF BEGINNING. THE ABOVE'DESCRIBED PROPERTY CONTAINS 1.03 ACRES OF LAND MORE OR LESS. TOGETHER WITH AND SUBJECT TO ANY EASEMENTS OR RESTRICTIONS OF RECORD. HISTORY According to Washington County records, the subject has been held in its' current ownership form for many years. The original building was built m 1961 and an addition was made in 1969-70. To the appraiser's knowledge, there have been no transactions involving the subject property within the past three years. 15 NAME OF FILE: CROSS REFERENCE: Item # Date Resolution No. 100-04 w/attachments Document 1 1 06/22/04 memo to mayor & City Council 2 Response to RFP to purchase Library Complex 3 Redevelopment Plan & Description of Proposed Use 4 Proposed Offer 5 The Rollston Building 6 Campbell Avenue Terrace 7 The Ozark Building 8 The Campbell -Bell Building g UARK Bowl 10 Inn at Carnall Hall 11 Letter to Richard Alexander from 1st Federal Bank 12 draft resolution 13 Staff Review Form 14 memo to Hugh Earnest 15 copy of Settlement Statement 16 copy of HUD -1 Certification 17 copy of HUD -1 Certification NOTES: r FAYETTEVIPI.E THE CITY OF FAYETTEVILLE, ARKANSAS 7/0fr ft- /00 - L, hey 74iv4/ Sk/ F/Lric5A" Date: June 22, 2004 To: The Mayor and Council From: Hugh Earnest Subject: Sale of Municipal Annex adjacent to Fayetteville Public Library Recommendation It is our recommendation that the council accept the bid submitted for the purchase of the referenced city owned property. Background Staff of the library and city worked together to prepare a request for proposal for sale of the Fayetteville Public Library complex at 217 E. Dickson. The complex is composed of the main library with approximately 24,000 square feet and the annex, a former professional building, with approximately 6600 square foot. The two buildings were connected in 1991. Both properties were listed in the Request for Proposal. As the Council knows, the Library Board of Trustees owns the main library and the City of Fayetteville owns the Annex. A copy of the RFP is attached. Current Situation The two entities received only one proposal for the respective properties. A selection committee composed of City staff, an Alderman, Library staff, Library Trustee and a representative of the neighborhood reviewed the proposal. After considerable discussion, the committee unanimously recommended that the proposal from the Fulbright Building LLC consisting of Richard Alexander, John Nock, Rob Merry -Ship, Ted Belden and John Tyson be accepted The offer for the city portion is $551,000 and the offer for the Library portion is $1,201,000. Attached for your review is a copy of the proposal from the successful bidder and the offer and acceptance form. Budget Impact Sale of the annex will realize an amount of $551,000 to the city. These proceeds will be placed in the city general fund unless we are instructed otherwise by Council. 113 WEST MOUNTAIN 72701 479-521-7700 FAX 479-575-8257 RESPONSE TO REQUEST FOR PROPOSAL TO PURCHASE THE LIBRARY COMPLEX AT 217 EAST DICKSON STREET, FAYETTEVILLE ARKANSAS JUNE 4, 2004 BY THE FULBRIGHT BUILDING, LLC RICHARD ALEXANDER - K013 MERRY -SHIP - JOHN NOCK - TED BELDEN - JOHN TYSON DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob Mercy -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 John Tyson Phone: 479-290-4233 Principal Contact Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander(� arkansas.net • • THE LIBRARY COMPLEX ROBERTA FULBRIGHT BUILDING and MCD,ARK BUILDING RESPONSE TO REQUEST FOR PROPOSAL REDEVELOPMENT PLAN AND DESCRIPTION OF PROPOSED USE THE FULBRIGHT BUILDING, LLC COMPRISED OF RICHARD ALEXANDER, ROB MERRY -SHIP, JOHN NOCK, TED BELDEN AND JOHN TYSON PROPOSES TO ACQUIRE, REDEVELOP AND PRESERVE THE ROBERTA FULBRIGHT BUILDING AND THE ADJOINING MEDARK BUILDING WHICH CURRENTLY SERVE AS THE HOME OF THE FAYETTEVILLE PUBLIC LIBRARY. IT IS THE RESPONDENT'S INTENT TO USE ITS BEST EFFORTS TO PLACE THE MAIN LIBRARY BUILDING ON THE NATIONAL REGISTER OF HISTORIC PLACES AND TO REDEVELOP THE INTERIOR OF THE LIBRARY COMPLEX INTO UPSCALE PROFESSIONAL OFFICE SPACE IN A MANNER CONSISTENT WITH THE OVERALL CHARACTER AND VISION OF ARCHITECT WARREN SEGRAVES ORIGINAL DESIGN. THE PRESERVATION OF THE EXTERIOR FACADE OF THE BUILDING, AS WELL AS THE EXISTING LANDSCAPING AND STREET FRONT, IS A PRIMARY COMPONENT OF THE REDEVELOPMENT PLAN; AS SUCH, THE MAJORITY OF THE REDEVELOPMENT WILL TAKE PLACE ON THE INTERIOR OF THE BUILDING. THE PROPOSED INTERIOR DESIGN WILL INCORPORATE FUNDAMENTAL ARCHITECTURAL PRINCIPLES THAT WILL DIRECTLY HARMONIZE WITH THE EXISTING EXTERIOR ELEMENTS. IN SUMMARY, IT I5 THE RESPONDENT'S INTENT TO PRESERVE THE EXTERIOR BUILDING ELEVATIONS, LANDSCAPING AND STREET FRONT OF THE PROPERTY AS I5. RESPONDENTS BELIEVE THAT THE PROPOSED REDEVELOPMENT OF THE INTERIOR SPACE AS UPSCALE PROFESSIONAL OFFICES IS COMPATIBLE WITH EXISTING ZONING AND THE NEIGHBORHOOD, AND WILL HAVE LESS IMPACT ON THE NEIGHBORHOOD, BY WAY OF TRAFFIC AND PARKING THAN THE BUILDINGS CURRENT USE. DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob I\cern--Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 John Tyson Phone: 479-290-4233 Principal Contact: Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander @@ arkansas.net • • THE L[BR..AR Y COMPLEX ROBERTA FULBRIGHT BUILDING and MEDARK BUILDING PROPOSED OFFER THE FULBRIGHT BUILDING, LLC OFFERS THE FOLLOWING: I. 2. $1,201,000 FOR THE MAIN BUILDING AT 217 E. DICKSON ST. $551,000 FOR THE ANNEX AT 211 E. DICKSON ST. 3. A PLEDGE OF A $50,000 TAX DEDUCTIBLE GIFT TO THE LIBRARY FOUNDATION TO BE SPENT AT THE DISCRETION OF THE LIBRARY BOARD OF TRUSTEES ON OR FOR THE NEW LIBRARY FACILITY COMPLETE DETAIL OF THE OFFER IS OUTLINED IN ATTACHMENT D. REDEVELOPMENT TIMELINE THE RESPONDENTS BELIEVE THE PROJECT WILL BE COMPLETED WITHIN 12-14 MONTHS. THIS PROPOSAL SUBMITTEI33 ON THE 1 RICHARD ALEXANDER, MANAGING MEMBER, THE FULBRIGHT BUILDING, LLC BY DAY OF COAf DEVELOPMENT TEAM RICHARD ALEXANDER AND ROB MERRY -SHIP ARE WELL KNOWN IN THE AREA FOR THEIR COMMITMENT TO EXCELLENCE IN THE REV1TALIZATION AND PRESERVATION OF HISTORIC STRUCTURES. THE DEVELOPERS HAVE EXTENSIVE EXPERIENCE IN DEVELOPING SIMILAR HIGH END MIXED USE COMMERCIAL, RESIDENTIAL AND PROFESSIONAL OFFICE PROJECTS IN THE HISTORIC DOWNTOWN FAYETTEVILLE AREA. THE FOLLOWING LIST INCLUDES EXAMPLES OF PROJECTS THE DEVELOPERS HAVE RECENTLY COMPLETED: DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob _Merv --Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 John Tyson Phone: 479-290-4233 Principal Contact Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander( arkansas.net • • THE L[BR.ARY COMPLEX ROBLRTA FULBRIGHT BUILDING and MEDARK BUILDING THE ROLLSTON BUILDING 315 ROLLSTON AVE. YEAR COMPLETED -1995 SIZE -10,000 SQ. FT. THE ROLLSTON BUILDING WAS ONE OF THE FIRST MIXED-USE BUILDINGS IN DOWNTOWN FAYETTEVILLE. IT WAS A ONE STORY CINDERBLOCK WAREHOUSE THAT WAS CONVERTED INTO AN ALL STUCO BUILDING HOUSING TWO RESTAURANTS ON THE BOTTOM FLOOR AND SIX LUXURY APARTMENTS ON THE SECOND FLOOR. A&D COST: APPROX. $1,000,000 DEVELOPMENT TIME: APPKOX. 12 Mos. DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob 1\{erre-Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 lobo Tyson Phone: 479-290-4233 Principal Contact Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander@ arkansas.net • • THE LI.BIZAIcY COMPLEX ROBERTA FULBRIGHT BUILDING and MEDARK BUILDING CAMPBELL AVENUE TERRACE 340 N. CAMPBELL AVE. YEAR COMPLETED -1997 SIZE -14,000 SQ. FT. THIS NEW ALL BRICK STRUCTURE CONTAINS 14 HIGH END RESIDENTIAL APARTMENTS. THE SITE CAMPBELL AVENUE TERRACE OCCUPIES ONCE CONTAINED TWO CITY CONDEMNED STRUCTURES. A&D COST: APPROX. $1,200,000 DEVELOPMENT TIME: APPROX. 12 Mos. %rs DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 john Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 John Tyson Phone: 479-290-4233 Principal Contact Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander{a3 arkansas.net • • THE LIBRARY COMPLEX ROBERTA FULBRIGHT BUILDING and MLDARK BUILDING THE OZARK BUILDING 2 N. COLLEGE AVE. YEAR COMPLETED -1998 SIZE -15,000 SQ. FT. THIS BUILDING WAS ORIGINALLY BUILT AS A THEATER AND OPERA HOUSE IN 1905. OVER. TIME IT BECAME RUN DOWN AND DILAPIDATED. IN THE 1990s, LOCAL PRESERVATIONISTS BEGAN AN EFFORT TO SAVE IT. ALEXANDER AND MERRY -SHIP BOUGHT THE BUILDING FROM THE CITY OF FAYETTEVILLE IN 1996 FOR $20,000 AND AFTER A $1.4 MILLION RENOVATION, TURNED IT INTO AN UPSCALE OFFICE BUILDING, WHICH REOPENED IN AUGUST OF 1998. IT WAS SOLD IN 2002 FOR $2.2 MILLION. ASD COST: APPROX. $1,400,000 DEVELOPMENT TIME: APPROX. 14 Mos. DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 John Tyson Phone: 479-290-4233 Principal Contact: Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander@ arkansas.net • • THE LIBRARY COMPLEX, ROBERTA FULBRIGHT BUILDING and MEDARK BUILDING THE CAMPBELL -BELL BUILDING 15 S. BLOCK AVE. YEAR COMPLETED -2000 SIZE -24,000 SQ. Fr. THE CAMPBELL -BELL BUILDING WAS FOR YEARS ONE OF THE REGION'S MOST POPULAR CLOTHING STORES. AFTER CLOSING IN THE MID 1990s, THE BUILDING SAT EMPTY FOR SEVERAL YEARS, BEFORE BEING PURCHASED IN 1998. THE TWO STORY STRUCTURE WAS RESTORED AND CONVERTED INTO OFFICE/RETAIL LEASE SPACE ON THE FIRST FLOOR WITH FOUR LUXURY CONDOMINIUMS ON THE SECOND FLOOR. A&D COST: APPROX. $2,500,000 DEVELOPMENT TIME: APPROX. 14 Mos. • DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob Mern-Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 John Tyson Phone: 479-290-4233 Principal Contact Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander@ arkansas.net • • THE LIBR.AR X COMPLEX ROBERTA FULBRIGHT BUILDING and MCDARK BUILDING U -ARK BOWL 644 W. DICKSON ST. YEAR COMPLETED -2002 SIZE -32,000 SQ. FT. Lt.is Mr. Iliil Ji11111111 "le THE U -ARK BOWL WAS BUILT IN 1949 AS A BOWLING ALLEY AND BALLROOM. ALEXANDER AND MERRY-SFIIP PURCHASED THE BUILDING IN 2000 AND CONVERTED IT INTO A MIXED USE RESIDENTIAL/COMMERCIAL FACILITY. THE FIRST FLOOR CONSISTS OF 12,000 SQUARE FEET OF EVENT, MEETING, AND RETAIL SPACES. THE SECOND FLOOR CONSISTS OF 14 HIGH END CONDOMINIUMS, RANGING IN SIZE FROM 1,250 TO 2,000 SQ. FT. A&D COST: APPROX. $3,800,000 DEVELOPMENT TIME: APPROX. 16 Mos. - L..{JJ - rr DEVELOPMENT TEAM: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Project Partners: Richard Alexander Phone: 479-521-9188 Rob Merry -Ship Phone: 479-521-9188 John Nock Phone: 479-530-6799 Ted Belden Phone: 501-580-3762 John Tyson Phone: 479-290-4233 Principal Contact Richard Alexander Phone: 479-521-9188 11 N. West Avenue Fayetteville, AR 72701 Fax: 479-521-1889 richardalexander(@ arkansas.net • • THE LIBRARY COMPLEX ROBERTA FULBRIGHT BUILDING and MEDARK BUILDING THE INN AT CARNALL HALL UNIVERSITY OF ARKANSAS CAMPUS YEAR. COMPLETED -2003 Size -50 RooM 50,000 SQ. FT. CARNALL HALL IS THE SECOND OLDEST BUILDING ON THE CAMPUS OF THE UNIVERSITY OF ARKANSAS. IT WAS BUILT IN 1905 AS A WOMEN'S DORMITORY AND WAS MUCH LATER USED AS OFFICE SPACE AND CLASSROOMS. THE BUILDING WAS VACATED IN 1991 AND LANGUISHED IN DISREPAIR FOR A DECADE. AFTER BEING CHOSEN BY THE UNIVERSITY IN 2001, ALEXANDER & MERRY -SHIP BEGAN AN $8 MILLION RENOVATION PROJECT. CARNALL HALL IS NOW A BOUTIQUE UPSCALE HOTEL AND 4 -STAR RESTAURANT. IT ALSO SERVES AS A WORKING CLASSROOM AND LABORATORY FOR THE UNIVERSITY'S BURGEONING HOSPITALITY PROGRAM. A&D COST: APPROX. $8,000,000 DEVELOPMENT TIME: APPROX. 14 Mos. P L BANK of Arkansas, FA The Financial Institution of Choice = Ross Mallioux .„e:,,,• June 2, 2004 osrtamy ar.„ Mr. Richard Alexander Fulbright Building, LLC Fayetteville, AR 72701 RE: The Fulbright Complex Roberta.Fulbright Building and Medark Building Dear Richard: This letter will document for your files and ours that you have provided to us a proposal to purchase and renovate the existing Fayetteville Library complex, known in your proposal as the Fulbright Complex. This proposal as well as our conversations indicate several partners with you in this regard and outline the purchase and renovation costs and proposals therewith. Per your request, this letter will document that First Federal Bank stands ready to accommodate you on this project per your proposal, and in the event that you need monies to purchase the land only, we stand ready to accommodate you with that request as well. We will also be more than happy to provide whatever documentation is acceptable and sufficient to the City of Fayetteville to verify that we stand ready to provide financing on this matter per what you have outlined in the proposal. This approval is contingent upon clear tide provided by the seller of the property as well as a first mortgage on the subject property to First Federal Bank of Arkansas and such documentations that would be pursuant to the proposal you have submitted as well as personal guaranties issued by the named guarantors you have provided to us with regard to this specific project. We are excited to be a part of this project and look forward to working with you and your partners in the near future. Should you need anything further in this regard, please do not hesitate to give me a call. Sincerely yours, Ross Mallioux Executive Vice President, Chief Lending Officer 2®W. Stephenson • P.O. Box 550 • Hauison, AR 72602 • (870) 741-7641 - 2025 N. Crossover RoadP.O. Box 1545 • Fayetteville, AR 72703 • (479) 571.2000 RESOLUTION NO. A RESOLUTION TO APPROVE THE SALE OF THE CITY OWNED ANNEX TO THE FAYETTEVILLE PUBLIC LIBRARY FOR $551,000.00 PURSUANT TO THE BID FROM THE FULBRIGHT BUILDING LLC WHEREAS, on or about October 7, 2003, the City Council passed an ordinance to exempt a potential sale of the Library Annex from the requirements of Ordinance No. 4358 "In order to ensure neighborhood compatibility and preservation of the historic exterior of the Roberta Fulbright Library building ...,"; and WHEREAS, the City and Library Board prepared a Request For Proposals on April 15, 2003, for the sale of the Library and Annex; and WHEREAS, the one proposer, Fulbright Building LLC, offered to purchase both structures for One Thousand Dollars more than their individually appraised value; and WHEREAS, the Fayetteville Library Board of Trustees voted to sell the Fayetteville Public Library building to Fulbright Building LLC on June 21, 2004. NOW, THEREFORE, 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 agrees to sell the city -owned Library Annex to Fulbright Building LLC for $551,000.00. PASSED and APPROVED this the 6`h day of July, 2004. APPROVED: By: DAN CO Y, Mayor ATTEST: By: SONDRA SMITH, City Clerk • STAFF REVIEW FORM • X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council Meeting of: July 6, 2004 FROM: Hugh Earnest General Government Administration Name Division Department ACTION REQUIRED: Approve a resolution to accept an offer in the amount of $551,000 from The Fulbright Building, LLC to purchase the Library Annex at 211 E. Dickson Street. COST TO CITY: 7 Cost of this request Account Number Project Number BUDGET REVIEW: Budget Manager Category/Project Budget Funds Used to Date $ Remaining Balance CONTRACT/GRANT/LEASE REVIEW: Budgeted Item Acco ting Man r /Date G �23'd`� Ci ttorney Date STAFF RECOMMENDATION: Division Head Date Department ire r Date cJc G-23gc Financ & Internal Services Dir. Date -U Chief A inistrative OfficerDate Mayor Date Program Category / Project Name Program / Project Category. Name Fund Name Budget Adjustment Attached Internal Auditor Date Purchasing Manager Date Cross Reference New Item: Yes No Previous Ord/Res#: Orig. Contract Date Orig. Contract Number FAYETTE\RLLE THE CITY OF FAYETTEVILLE, ARKANSAS City Clerk Division DEPARTMENTAL CORRESPONDENCE To: Hugh Earnest Administration QpQ From: Clarice Buffalohead-Pearman City Clerk Division Date: July 9, 2004 Re: Resolution No. 100-04 I 113 West Mountain Fayetteville, AR 72701 Telephone: (479) 575-8323 The City Council passed a resolution, July 6, 2004, approving the sale of the library annex to Fulbright Building, L.L.C. I have attached a copy of the resolution and two of the three originals of the Offer and Acceptance Contract. The resolution with attachments will be recorded in the city clerk's office and microfilmed. If anything else is needed please let the clerk's office know. /cbp attachments cc: Nancy Smith, Internal Auditor 10/20/2004 08:13 FAX A. Settlement Statement U.S. Department of Housing and Urban Dsvuopm.nt 001/004 • �+ 11 OMB No. 2502-0265 B. Type of Loan 1.0 FHA 2.0 FmM 3.SCoay.IJdn6. 6. Flo Number 7. Loan Nutter 8. Mortgage Inwranoe Case r*nthit 4,0 VA 5.0 Caw. Ins. 101414 C. Net.: This fpm is tyndahad m gNs you a sbtan'nt of actual sot0amerRomb. Amaunrs paid b and by S settlement agent art shown. It.nn markod •(pa.er were Pale aublee the do*g: may are shoom here for bfomu0pn puposm and are not Incbded m the tobb. D. Name and Address d Bonowvr E. Name and Address of Sailer F. Name aw Address of Lady The FukngN Budbq, LLC Fay to w. Public LCrary BmN of Fast Federal Banc 11 N West Av.. Troshn P.O. Box 55O Fayanvaa, AR 72701 _ CRY of FayuhavMe Manson, AR 72602.0550 211 Eau DId smr $boat 217 Ere( Dickson Saws Fay.itnCe, AR 72701 G. Property London N, Settlancm Agsm 217 E. Diduon SA211 E Okksun St Probosansl Land T1 a Company Feynn..4., AR 72701 Place of Sememen[ I. Settlement Data 2713 S.E. I St. SN 7 10H40. Bamvwbp,-AR 72712 J. SUMMARY OF BORROWER'S TRANSACTION: K SUMMARY OF SELLERS TRANSACTION: 100. 0R033 AMOUNT WE FROM BORROWER 400. GROSS AMOUNT DUE TO SELLER .. 101. Contraa salosydoe 1,752,t100A0 401. Contact sales p.4ce 1,752AM.00 102. Paaonu 402. Par.ogS 103. Senbma4 d.ar�es bemower 1400 13.032.]1 403. oar/pd 104. 404. 105 405. fbr items iafd by spar In advance YFbwls for Name psid by saa9n In advance 106. Obt.mfaxes b 408. Qtyft#el bum b 107. Can ban b 407. County berm b 10B Aseescmenb b 403 Mamsmaib to 1�" 409. 110. N0. 111. 411. 112' 412. 120, GROSS AMOUNT DUE ____BORROER 1,765932.71 420. GROSS AMOUNT DUE TO SELLER 1752,000.00 200. AMOUNTS PAN BY OR IN BEHALF OF BORROWER 500. REDUC'f1ONS IN AMOUNT TO SELLER 201. 't a cameo 10000.00 501. Excess Depoeft(see bnbm2bns C' -10 202. Pdn I am5UM of new s 2002.00Q0 502. Set8emmt fl9e5 to .eder m.1400 50,400.00 29!.d Monoage 503. Sand 204. 504. Payoff aIM moae ban . 505.P ofsesvd loon 206' 006. Fromeds b F 1 15p,T25.00 207. 607. Proceeds to Cy of Fends,C .540.876.00 208. 508.. 608. 'uabwns for pane unpW by tiller bleu ISa,. UflfMd by Mlle bxm b 510. bxge In nty lazes b 611. Owe b ssessmaub b 512. Asn.smaw b 513. 514. MPAID 515. 516 517. 518. 519. TAL PAID BY I FOR BORROWER 2,012000.00 520. TOTAL REDUCTION AMOUNT DUE SELLER 1,752000.00 SH AT SETTLEMENT FROM OR TO BORROWER 800. CASH AT SETTLEMENT TO OR FROMSEVER 301. (9m Amon due ham bampwa flat 120) 1 m5AT2.71 601. Gma amotm due to sa0a(IW_420) 1,752,000.00 302. Less aneuss paid byfiot bnftonr tie 220) 2.012.000.00 602. Less reduL'5711 bnwrtl dust sedat 520 1.752000.00 303. CASH TO BORROWER 246067.29 603. CASH TO SELLER �S5/Jae o RESPA. HS 4305.2 • REV. MUD1(3/86) 10/20/2004 08:13 FAX • J002/004 File Number 10141,4US. DEPARTMENT OF HOUOND URBAN DEVELOPMENT 5ETTIEME TEMENT 1. SETTLEMENT CHARGES: r Vea PAID FROM BORROWER'S FUNDS AT SETTLEMENT PAID FROM SELLER'8 FUNDS AT SETTLEMENT 700. TOTAL SALES/BROKER'S COM4ISSION bead on rice 5 ® DMalm of comndaabn (JIM 700) m follows: 701.5 to 702.5 b ... 703. Commission geld at Settlement 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. 801. Loan OdglnationFee 802. Loan Discount Mr 803. Ap�nr Fee to The Real Eabb Corsdrmts 225.00 804. Cmdlt Report to Fbd Fed" Bank of Ark4mas. FA 2$.W 805. LaMefe Inspection Fee to BOB. MIDD. Ins. AppOeetion Fee to 807. b BOB. SOS. 810. 811. 812, Loan ftpIcaon FM Fkst Federal Bank of Msnsss. FA Tax Ser_vipe Fee Lpeb Co Uon Flood Certfeadon Fee _ Flood Zones La. of Loan Fkmd Floodzones 175.00 170.00 10.00 2.00 _ 813. 814, 815. 80O. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901. Internal from to ®5 Ma y 902. Mmtp ige lnawance Premlwn to 903. Hamd Insu,w,ce Pnunlum &ripe. Yes. b Jalvuan Moorman A Resell 6,501.60 004. 905. 1000. RESERVES DEPOSITED WITH LENDER FOR 1001. HazardInsurance no. ©5 / Mo. 1002 Insurance mo. Bj5 / mo. 1003. atypropMye, 0.©$ (Inc. 1004. County ptp.ctybzes no. 0f / no. 1005. AAaoal Asaeesmanm mo. /ma. lone. 1007. mo. 0$ / ma. 1008• 1100. fteaenva k1r HirardiFbM Inn. Taxes, Moflage Ins A Amy91 gssassmante TTTLECHARGES 1101. Spdpnmt w dosing Me b Pm L4M TWO 250.00 250.00 1102. A6rtadwtlN iWrd, to Pro VndTSM 75.00 75.00 1103. TMe smmina8on to 1104. Title insurance MMer b 1105. Davmmt peapara5on In Fbpks & Aym 75. 1108., Nobryfees b 1107. AWrmws fees (mmx$as above Ian No; ) 1108. Title ksutence to Pro Land Title 2,852.70 (mdudea eSave Bps N0: 1103. Lnlde4NvtRpe 2002,000.00-1801.60 1110. Owne/s 1 1.000.00-1.060.90 / 1111. Owe 's Covng.Cty eu. Pro Land Tide 5551000.00 495.90 1112. 1113. 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. Raiat,yIec$ DeedS 33.00 S 3200 : Releases S 65.00 1202M:ML Deed f MortGages 1207p5 Deed $ ; Mortgage 5 1204.. 12W 1300SETTLEMENT CHARGES1301b AbnR.MAAsooa 2A1&0o 1302n b Ad+anee Pd C2.03751 _ 13031304 HM Cblm Pro Land TM. 60000.00 1305. 1306. 1307. 1305. 1400. TOTAL SETTLEMENT CHARGES (mop m frm 103 arid 502. Section J and K) 13.932.71 50,400.00 eFrr � SaMk I ,So6oQ 31.-' RESPA, HB 4305.2 • REV. HUDI(3/86) 10/20/2004 08:14 FAX a 003/004 File No: 1013M HUD -1 CERTIFICATION I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement. SELLER'S AND/OR PURCHASERS STATEMENT: Seller's and Purchaser's signature hereon acknowledges his/theirapproval of tax proration and sign£iesthe runderstandingthatprorations were based on taxes for the proceeding year, or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not. Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom. Any escrow fees paid by any party involved in this transaction shall only be for check writing and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for any interest or other charges on the earnest money and shall be under no duty to invest or reinvest fads held by it at any time. Sellers and Purchasers hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Companybas ormay have other backing relationships and further consent to the retention by Title Company and/or its affiliates of any and all benefits (including advantageous interest rates on loan) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. The parties have read the above sentences, recognize that the recitations herein are material, agree to same and recognize Title Company is relying on the same. The FIdght Building, LLC BORROWERS SELLER To the best of my knowledge the HUD -I Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as pan of the settlement of this transaction. Professional Land Title Company BY Date: September 17, 2004 Settlement Agent WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010. MA 10/20/2004 08:14 FAX • • e004/004 File No: 1014M HUD -1 CERTIFICATION I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all rcccipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement. SELLER'S AND/OR PURCHASER'S STATEMENT: Sellers and Purchaser's signature hereon acknowledges his/their approval oftax proration and signifies their understanding that proration were based on taxes for the proceeding year, or estimates for the current year, and in the event of any change for the current year, all accessary adjustments must be made between Seller and Purchaser, likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not. Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom Any escrow fees paid by any party involved in this transaction shall only be for check writing and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for any interest or other charges on the earnest money and shall be under no duty to invest or reinvest funds held by it at any time. Sellers and Pwchasers hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Company has or may have other banking relationships and further consent to the retention by Title Company and/or its affiliates of any and all benefits (including advantageous interest rates on loans) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. The parties have read the above sentences, recognize that the recitations herein are material, agree to same and recognize Title Company is relying on the same. The F right Building, LLC �s+sL- . 7EY ayettevlllt Public L braryoard of Trustees BORROWERS SELLER To the best of my knowledge the HUD -1 Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction. Pro onal Land Title Company BY Date: October 13, 2004 Settlement Agent WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010.