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Home My WebLink About55-05 RESOLUTION• RESOLUTION NO. 55 - 05 A RESOLUTION TO APPROVE A CONTRACT WITH JOHN NOCK AND RICHARD ALEXANDER FOR THEIR PURCHASE OF PROPERTY TO BE OBTAINED BY TIF FUNDING FOR $300,000.00 AND FOR OTHER MATTERS WHEREAS, the City of Fayetteville has created the Highway 71 East Square Redevelopment District No. 1 and adopted a Project Plan that requires the City to purchase four parcels of land, demolish the vacant and blighted structures thereon, and sell the raw land to the developers, John Nock and Richard Alexander to be used to develop a $20 million dollar hotel, condominium, parking deck and convention facility; and WHEREAS, the procedures mandated by Fayetteville Code §34.27 Sale of municipally owned property were waived by Ordinance No. 4651, passed on December 7, 2004 because such procedures would cause such delays as to render this adopted Project Plan unfeasible; and WHEREAS the developers, John Nock and Richard Alexander, have offered to purchase the raw land after demolition for $300,000.00 (which is more than its appraised value); and WHEREAS, the contract with John Nock and Richard Alexander attached as Exhibit A should be approved. 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 approves the contract attached as Exhibit A to sell to John Nock and Richard Alexander the four parcels purchased with TIF proceeds for $300,000.00 and specifying other matters. PASSED and APPROVED this 15th day of March, 2005. Ffliztit/P, ...,:.\`4c.).-.Exf y ot.s..&;% .-.4-.. • • cl‘S 6 .-.7:-: • /3 •-•• . .•. if. ; FAYETTEVILLE : 1 :..s.. Z. ATTEST: dee:ft/G.7-0N C;t19%"‘ By: gY1,44-14/1:5---- SONDRA SMITH, City Clerk % t'• By: APPROVED: CONTRACT On this 15th day of March, 2005, the City of Fayetteville and Developers, Richard Alexander and John Nock agree as follows: WHEREAS, the City of Fayetteville desires to remove the blighted area of the Mountain Inn and surrounding vacant structures (the County Courts Building, the Red Bird Cafe and the old Niblock Law Office); and WHEREAS, the City of Fayetteville will be greatly benefited if, after the removal of this blight, a valuable new structure will be constructed on this cleared site bringing jobs, Sales taxes, and Hotel, Motel and Restaurant taxes, and stimulating increased economical activity and vitality and increased property valuation throughout downtown Fayetteville, and WHEREAS, Developers Richard Alexander and John Nock have proposed to purchase the cleared blighted area for $300,000.00 and build about a 22.5 Million Dollar Hotel, Condominium, Parking Deck, and Convention facility on this site. NOW, above premises considered, the City of Fayetteville and the Developers, Richard Alexander and John Nock agree as follows: 1. The City of Fayetteville agrees to issue tax increment financing bonds pursuant to its ordinances establishing the Highway 71 East Square Redevelopment District Number 1 of Fayetteville as amended to include most of the Downtown Master Plan area, the Amended Project Plan for this enlarged District, the Bond Ordinance, Bond Purchase Ordinance (if necessary), Amendment 78, and SubChapter 3 of Chapter 168 of Title 14, Community Redevelopment Generally. These TIF bonds shall be issued to obtain net usable proceeds of $3.5 million to the City of Fayetteville to effectuate the Amended Project Plan as approved by ordinance by the City Council on March 15, 2005. • • 2. The City of Fayetteville agrees to use the net available $3.5 million proceeds from the TIF bonds to purchase: (a) the blighted Mountain Inn property for (b) the County Courts Building for (c) the vacant Niblock Law Office for (d) the vacant Red Bird Cafe for Total for land acquisition $1.2 million; $413,000.00; $500,000.00; $500,000.00. $2,613,000.00 If bond proceeds in net usable amount of $3.5 million are available by April 19, 2005, the closing for all four properties shall be April 20, 2005. 3. The City of Fayetteville agrees to use the remainder of the $3.5 million not expended for land acquisition for demolition and site preparation to include: (a) demolition (including asbestos removal) of the newer part of the Mountain Inn, the Courts Building, the Niblock Law Office and the Red Bird Cafe; (b) resolution of access issues and utility relocation; (c) water and sewer upgrades (on site). If the demolition and site preparation costs exceed $887,000.00 (the remaining bond proceeds after land acquisition costs), the City's responsibilities end after its full expenditure of $3.5 million on this project. If demolition and site preparation can be accomplished for less than $887,000.00, any remaining money shall be used to pay TIF bond indebtedness. 4. Developers Richard Alexander and John Nock agree to purchase the four parcels purchased and demolished by the City of Fayetteville for a total of $300,000.00 The Developers agree to purchase these parcels at whatever condition they are in after the City of Fayetteville has expended $887,000.00 for Demolition and Site Preparation even if all such work cannot be accomplished for an $887,000.00 expenditure. If all of the estimated $887,000.00 costs for demolition and site preparation is not needed to accomplish the demolition, resolution of access 2 and utility issues, on site water and sewer upgrade if needed, and asbestos and other necessary environmental remediation, Developers Richard Alexander and John Nock agree that any remaining money shall be used for repayment of TIF indebtedness. 5. Developers Richard Alexander and John Nock agree to construct or cause the construction of the Planned Development Project approximately as described on page 7 of the Amended Project Plan: (a) approximately 144 room, full service hotel; (b) approximately 18 condominiums; (c) approximately 12,000 square foot conference/meeting space; (d) approximately 300 space multistory parking garage; (e) restaurants, small shops, day spa; (0 rooftop botanical garden. 6. If economic conditions change or require an alternative development, Developers Richard Alexander and John Nock can satisfy this requirement by constructing or causing the construction of an approximately Equivalent Project subject to approval by the City Council, whose approval shall not be unreasonably withheld. 7. Developers Richard Alexander and John Nock agree that architectural or engineering contracts for the construction of this Planned Development Project or the Equivalent Project shall be entered into in 2005. 8. Developers Richard Alexander and John Nock agree that the construction contract for this Planned Development Project or the Equivalent Project shall be entered into no later than June 1, 2006. 9. Developers Richard Alexander and John Nock agree that the Planned Development Project or the Equivalent Project shall be finished and open for business and/or occupation no later than September 1, 2007. 10. Force-majeure. All requirements for completion dates are subject to force- majeure and may also be extended by the Fayetteville City Council for good cause as requested and shown by the Developers. 3 11. Non -assignable. This Contract may not be assigned to another party without the previous written consent by the City of Fayetteville after an authorizing City Council Resolution. 12. Jurisdiction and venue. Arkansas law shall control the interpretation of this Contract and jurisdiction and venue shall be the Washington County Circuit Court, Fayetteville, Arkansas. 13. Waiver. The waiver of one of the terms or completion dates in this contract shall only apply to that term or completion date and such waiver may be limited or conditional. 14. Freedom of Information Act. City contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, Developers Richard Alexander and John Nock will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19- 101 et. seq.) Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. 15. Liquidated Damages. The City of Fayetteville is incumng substantial TIF debt in order to accomplish its Project Plan so that the Planned Development Project can be constructed promptly enough to ensure the federal tax credits obtained by the Developers can be utilized. Without this need to obtain immediate clear title and ownership of all four parcels, the City of Fayetteville would likely seek to condemn such blighted structures at a potentially lower cost. Therefore, if Developers Richard Alexander and John Nock fail to meet any of the requirements of the project dates for engineering, architect or construction contracts, the City of Fayetteville may opt to receive the conveyance of the four parcels of property back from the Developers for the payment by the City of Fayetteville to the Developers of $10,000.00. 4 If the construction of the Planned Development Project or the Equivalent Project is not completed and open for business or occupation by September 1, 2007, the City of Fayetteville shall receive $25,042.00 per month ($834.73 per day) until the Planned Development Project or Equivalent Project is completed and open for business or occupation (but not to exceed twelve months for a total of $300,504.00 in liquidated damages). This amount represents the estimated loss of monthly sales tax and HMR tax to the City of Fayetteville that the Planned Development Project should generate according to the Developers' estimates provided to the Fayetteville City Council in February, 2005. In agreement to all terms, conditions and promises made above, the City of Fayetteville by Mayor Dan Coody and the Developers Richard Alexander and John Nock have signed below. CITY By: DAN COODY Mayor F FAYETTEVILLE DEVEL ERS Attest: By: RI NDER Sondra Smith, City Clerk JO NOCK Shcjot ................................. : •aa3 • ct'S • . :FAYETTEVILLE: ictness ce•,-7?-4KA?.NSY: • ,n Cieet/iy • • • GO .... 's1111 ........ 5 CI ATTORNEY AGENDA REQ ST FOR: COUNCIL MEETING OF MARCH 15,2005 3 /151P -"e 5-5 --4-) Neti/Ni van for Pophy Pardwa FROM: KIT WILLIAMS, CITY ATTORNEY ORDINANCE OR RESOLUTION TITLE AND SUBJECT: An Resolution To Approve A Contract With John Nock And Richard Alexander For Their Purchase Of Property To Be Obtained By Tif Funding For $300,000.00 And For Other Matters APPROVED FOR AGENDA: City Attorney Date 3. 1-- es5 1.1:5 D liadin, Date to. RESOLUTION NO. A RESOLUTION TO APPROVE A CONTRACT WITH JOHN NOCK AND RICHARD ALEXANDER FOR THEIR PURCHASE OF PROPERTY TO BE OBTAINED BY TIF FUNDING FOR $300,000.00 AND FOR OTHER MATTERS WHEREAS, the City of Fayetteville has created the Highway 71 East Square Redevelopment District No. 1 and adopted a Project Plan that requires the City to purchase four parcels of land, demolish the vacant and blighted structures thereon, and sell the raw land to the developers, John Nock and Richard Alexander to be used to develop a $20 million dollar hotel, condominium, parking deck and convention facility; and WHEREAS, the procedures mandated by Fayetteville Code §34.27 Sale of municipally owned property were waived by Ordinance No. 4651, passed on December 7, 2004 because such procedures would cause such delays as to render this adopted Project Plan unfeasible; and WHEREAS the developers, John Nock and Richard Alexander, have offered to purchase the raw land after demolition for $300,000.00 (which is more than its appraised value); and WHEREAS, the contract with John Nock and Richard Alexander attached as Exhibit A should be approved. 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 approves the contract attached as Exhibit A to sell to John Nock and Richard Alexander the four parcels purchased with TIF proceeds for $300,000.00 and specifying other matters. PASSED and APPROVED this 15th day of March, 2005. APPROVFOgl By: DAN COODY, Mayor ATTEST: By: SONDRA SMITH, City Clerk Clarice Pearman - Res. 55-05 • From: Clarice Pearman To: Williams, Kit Subject: Res. 55-05 Attached is copy of the resolution passed by City Council, March 15, 2005 regarding Nock/Alexander contract. Also attached is a copy of the signed contract. Thanks. Clarice Page 1 Clarice Pearman - Fwd: Res 55-05 • From: Clarice Pearman To: Deaton, Vicki Subject: Fwd: Res. 55-05 >» Clarice Pearman 03/18/05 04:30PM >» Attached is copy of the resolution passed by City Council, March 15,2005 regarding Nock/Alexander contract. Also attached is a copy of the signed contract. Thanks. Clarice Page 1 ;