HomeMy WebLinkAbout134-07 RESOLUTIONRESOLUTION NO. 134-07
A RESOLUTION APPROVING AN OFFER AND ACCEPTANCE
CONTRACT BETWEEN THE CITY OF FAYETTEVILLE AND
KENNETH E. SCHOBY FOR THE SALE OF LOT 31E IN THE
FAYE1"1'EVILLE INDUSTRIAL PARK FOR $60,000.00;
APPROVING A BUDGET ADJUSTMENT; AND AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE SAID
AGREEMENT.
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 an Offer and Acceptance contract between the City of
Fayetteville and Kenneth E. Schoby for the sale of Lot 31E in the Fayetteville
Industrial Park for $60,000.00. A copy of the contract is attached hereto marked
Exhibit "A" and made a part hereof.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a Budget Adjustment recognizing the revenue.
Section 3. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes the Mayor and City Clerk to execute said agreement with
Kenneth E Schoby.IIlll
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APPROVES ATTEST :FAYETTEVILLEtt
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PASSED and APPROVED this 17th day of July, 2007.
DAN COODY, Mayor
SONDRA E. SMITH, City Clerk/Treasurer
OFFER AND ACCEPTANCE CONTRACT
Kenneth E. Schobv offers to buy, subject to the terms and conditions set forth herein, the following
described property:
SEE ATTACHED EXHIBIT "A"
FOR PROPERTY DESCRIPTION
2. Purchase Price: Subject to the following conditions Kenneth E. Schobv shall pay for the property at
closing, the total and cash payment of $ $60,000.00 .
3. Contingent Eamest Money Deposit: Kenneth E. Schobv herewith tenders a check for $ 1.000.00
to the City of Fayetteville, as earnest money which shall apply on the purchase price. This offer of
purchase is contingent upon approval of the City Council of the City of Fayetteville, Arkansas, and, rf they
do not so approve, the earnest money deposit will be returned to Kenneth E. Schobv by the City of
Fayetteville. If title requirements are not fulfilled or the City of Fayetteville fails to fulfill any obligations
under this contract, the earnest money shall be promptly refunded to Kenneth E. Schobv . If Kenneth
E. Schoby fails to fulfill their obligations under this contract or, after all conditions have been met,
Kenneth E. Schobv fails to close this transaction, the earnest money may, at the option of the City of
Fayetteville, become liquidated damages to the City of Fayetteville.
4. Conveyance will be made to Kenneth E. Schobv by general Warranty Deed, except it shall be subject
to recorded instruments and easements, if any, which do not materially affect the value of the property.
Such conveyance shall include mineral rights owned by the City of Fayetteville.
5. The City of Fayetteville shall furnish a policy of title insurance in the amount of the purchase price from a
title insurance company as selected by the City of Fayetteville. Kenneth E. Schobv and the City of
Fayetteville shall share equally in the cost of the title insurance
The City of Fayetteville agrees to allow Kenneth E. Schobv if Kenneth E. Schobv so desires at Kenneth
E. Schoby 's expense, to survey the property. The City of Fayetteville agrees to cure any title problems
which may result from any differences between the recorded legal descriptions of the property and the
survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the
City of Fayetteville.
7. Taxes and special assessments due on or before closing shall be paid by the City of Fayetteville.
Insurance general taxes, ad valorem taxes, special assessments and rental payments shall be prorated
as of closing.
8. The closing date shall be within ninety 90 days after approval of this offer by the City Council. If such
date of closing falls on a weekend or holiday, it will be held the following working day.
9. Possession of the property shall be delivered to Kenneth E. Schobv on the date of closing.
10. The City of Fayetteville hereby grant(s) permission for Kenneth E. Schobv or their designates to enter
the above described property and improvements for the purpose of inspection and/or surveying.
11. All fixtures improvements and attached equipment are included in the purchase price.
12. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is
assumed by the City of Fayetteville.
13. The City of Fayetteville shall disclose to Kenneth E. Schobv any and all environmental hazards of
which the City of Fayetteville has actual knowledge. Upon acceptance of all conditions and terms of this
Offer and Acceptance Kenneth E. Schobv and the City of Fayetteville shall share equally the costs of
any and all testing for the existence of environmental hazards. Should the existence of environmental
hazards be known or determined, the City of Fayetteville shall cure such, at their expense; or, in the
alternative, at Kenneth E. SchobVs discretion, Kenneth E. Schobv may cure such environmental hazard,
and the City of Fayetteville shall indemnify Kenneth E. Schobv for all costs associated with said cure
OFFER AND ACCEPTANCE CONTRACT
Page 2 of 4
14. This agreement shall be governed by the laws of the State of Arkansas.
15. This agreement, when executed by both Kenneth E. Schobv and the City of Fayetteville shall contain
the entire understanding and agreement of the parties with respect to the matters referred to herein and
shall supersede all price or contemporaneous agreements, representations and understanding with
respect to such matters, and no oral representations or statements shall be considered a part hereof.
16. This contract expires if not accepted by the City of Fayetteville on or before the 7th day of
August , 2007.
17. The City of Fayetteville shall submit this fully executed Offer and Acceptance Contract to the City Council
for their approval within thirty ( 30 ) days of acceptance by the City of Fayetteville.
18. It is expressly understood by the parties that the price established by the City Council is a reduced price
to benefit the creation of jobs in the Fayetteville Industrial Park and that should and that the sale of the
property is not intended to be for speculation. Should Kenneth E. Schoby wish to sell the property before
improvements are made, the City of Fayetteville shall have the right to purchase the property at the
same price for which it was sold to Kenneth E. Schoby.
19. NOTICE: THE Kenneth E. Schobv AND THE CITY OF FAYETTEVILLE ASSERTS HEREBY
ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE
APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF
FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE
WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT
NOT LIMITED TO, THE RETURN TO THE Kenneth E. Schobv OF THE
$ 1000.00 EARNEST MONEY DEPOSIT.
AGENT OR WITNESS:
City of Fayetteville, Arkansas
A municipal corporation
Dan Goody, Mayor
144
Sondr Smith, City Clerk
-C; •EJJTY OF • (4'#,
•P:
;FAYETTEVILLE:
Date: 64 5707
Date:
Date:
Date: Q2// 7R/
Date: v 7//7/ 7
OFFER AND ACCEPTANCE CONTRACT
Page 3 of 4
EXHIBIT "A"
PROPERTY DESCRIPTION
That property described as Lot 31 E of the Fayetteville Industrial Park located in 23-16-30 Washington County,
AR at end of S. Leeper Drive containing 4.8 acres ±
SIGNED FOR IDENTIFICATION:
Dan oody, Mayor
Sona mith, City Clerk
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OFFER AND ACCEPTANCE CONTRACT
Page 4 of 4
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
Keneth E. Schobv to me well known as the person(s) who executed the foregoing document, and who
stated and acknowledged that he/she/they is/are Offerer of Fayetteville Arkansas and
is/are duly authorized to execute the foregoing instrument for and in the name and behalf of said
Himself and further stated and acknowledged that
he/she/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 15th day of June 2007.
MY COMMISSION EXPIRES:
l4ky , ZoI (c
Public
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 Goody 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 thisOT_ day of / . 2007.
MY COMMISSION EXPIRES'
....FEALDifee���� Notary Public
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City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Year
2007
Department: General Fund Revenue
Division:
Program:
Date Requested
6/20/2007
Adjustment Number
Project or Bern Added/Increased:
To recognize $60,000 in additional revenue in the
Gain/Loss - Sale of Assets account.
Project or Item Deleted/Reduced:
None. The additional revenue will be placed into
Designated Fund Balance to be used in the future for
Economic Development purposes.
Justification of this Increase:
The additional revenue will be received as a result of the
sale of Industrial Park land to Kenneth Schoby.
Justification of this Decrease:
Account Name
Increase Expense Budget (Decrease Revenue Budget)
Account Number Amount
Project Number
Use of designated fund bal
Account Name
1010 0001 4999 98
60,000
Decrease Expense Budget (Increase Revenue Budget)
Account Number Amount
Project Number
Gain/loss-sale of assets
1010 0001 4881 02
60,000
Approval Signatures
Requested
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Department Director
Finance Directo
Mayor
&)�ate 1
Date
Date
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Date
f
Date
Budget Office Use Only
1
Type: A B C CD
E
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
Initial
Date
Initial
Initial
Date
Date
Ray M. Boudreaux
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
7/02007
City Council Meeting Date
115
139
Aviation & Economic Dvelopment General Government
Division
Action Required:
Department
Action Required: Approve an Offer and Acceptance Contract with Kenneth E Schoby. Mailing Address: 2135 E.
Huntsville Rd, Fayetteville, AR 72701, 479-443-2322
REVENUE
60,000.00
Cost of this request
1010.0001.4881.02
Account Number
NA
Project Number
Budget
Contrib
Program Category / Project Name
181.00 General Fund Revenue
Funds Used to Date Program / Project Category Name
(181.00) General
Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
Department Director
Date
wkiL.Th
City Attorne Date
cG; . t -._.-o--- 7 -2-07
Finance and Internal Service Director Date
/I
Mayor
Z/2
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
a
Received in Mayor's
400
•
Comments: Earnest Deposit a3ta€Y(ed $1000.00 check #6910, account of Sheet Metal Plus.
City Council Meeting of: July 3, 2007
Agenda Item Number:
CITY COUNCIL AGENDA MEMO/STAFF CONTRACT REVIEW MEMO
TO: Mayor and members of the City Council
THRU: Staff/Contract Review Committee
FROM: Ray M. Boudreaux, Director, Aviation and Economi4 Development
DATE: June 15, 2007
SUBJECT: Sale of Lot 31E in the Fayetteville Industriall Park to Kenneth E.
Schoby for $60,000.00
RECOMMENDATION: Approve the sale of Lot 31E to Kenneth E. Schoby for $60,000.00.
BACKGROUND: Kenneth Schoby has been considering this lot for six months. The City
has shown this lot several times but has never received any real interest since the lot is very
steep and the northern part is very low next to Town Branch. The site has only three acres
of buildable land and that three acres will take a lot of special building methods.
DISCUSSION: Kenneth E. Schoby is the owner/operator of Sheet Metal Plus, Inc., a
sheet metal business located at 2135 Huntsville Rd. in Fayetteville. He has outgrown the
current location. He plans to construct several shop buildings in which to locate his
business and similar businesses. He currently employs five people and with the new
building hopes to double the number of employees. We have agreed to discount the price of
the property in order to get the property on the tax rolls and recognizing the fact that the
north 1 8 acres are unusable and his plans to leave the low area as green space
BUDGET IMPACT: The proceeds will be placed in the economic development fund.
Attachments: Offer and Acceptance Contract
Industrial Park Map
Staff Review Form
Aviation and Economic Development Department
Fayetteville Municipal Airport, Drake Field
4500 South School Avenue, Suite F
Fayetteville, Arkansas 72701
Ray M. Boudreaux, Director
RESOLUTION NO.
A RESOLUTION APPROVING AN OFFER AND ACCEPTANCE
CONTRACT BETWEEN THE CITY OF FAYETTEVILLE AND
KENNETH E SCHOBY FOR THE SALE OF LOT 31E IN THE
FAYE1"1EVILLE INDUSTRIAL PARK FOR $60,000 00;
APPROVING A BUDGET ADJUSTMENT; AND AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE SAID
AGREEMENT.
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 an Offer and Acceptance contract between the City of
Fayetteville and Kenneth E Schoby for the sale of Lot 31E in the Fayetteville
Industrial Park for $60,000.00. A copy of the contract is attached hereto marked
Exhibit "A" and made a part hereof.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a Budget Adjustment recognizing the revenue.
Section 3. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes the Mayor and City Clerk to execute said agreement with
Kenneth E. Schoby.
1
PASSED and APPROVED this day of July, 2007.
APPROVED: ATTEST:
By: By:
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
..••.•...
e•lir
7.23.07 Clarice Pearman - Res. 134-07
From: Clarice Pearman
To: Boudreaux, Ray
Date: 7.23.07 2:10 PM
Subject: Res. 134-07
Attachments: 134-07 Schoby O&A Contract.pdf
CC: Audit; Fell, Barbara
Ray:
Attached is a copy of the above resolution passed by City Council, July 17, 2007 authorizing the Schoby Offer & Acceptance
Contract 1 will forward to Budget & Research the original budget adjustment. Please let me know if there is anything else
needed. Have a good day.
Thanks.
Clarice
Clarice Buffalohead-Pearman, C.A.M.C., C.M.C.
City Clerk/Treasurer Division
113 West Mountain
Fayetteville, AR 72701
479-575-8309
cpearman( ci.fayetteville.ar.us
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