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HomeMy WebLinkAbout136-09 RESOLUTIONRESOLUTION NO. 136-09 A RESOLUTION TO APPROVE A LOT SPLIT FROM LOT 7 OF THE JOHN SMITH ADDITION AND TO APROVE THE CONSTRUCTION THEREON OF A 500,000 GALLON WATER TOWER TO SERVE THE MT. SEQUOYAH PRESSURE PLANE WHEREAS, the City Council has the authority to approve a lot split and the construction of a vital municipal facility such as a water tower pursuant to § 164.21 of the Unified Development Code after a public hearing on the requested lot split and development/construction approval; and WHEREAS, the City Council has conducted a public hearing and determined that a lot split should be granted for Lot 7 of the John Smith Addition in order to split off a .66 acre parcel to be used for a 500,000 gallon water tower that is a vital municipal facility; and WHEREAS, the City Council has determined that this 500,000 gallon water tower should be approved for construction upon this .66 acre parcel. 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 lot split described on Exhibit A from Lot 7 of the John Smith Addition and approves the construction of a 500,000 gallon water tower to serve the Mt. Sequoyah Pressure Plane on this site as well as all necessary service facilities such as retaining walls, driveway, fencing, etc. PASSED and APPROVED this 16th day of June, 2009. APPROVED: ATTEST: By: By:sh6maiz- SONDRA E. SMITH, City ClerW9easurer ‘'1/411q,j.R.c:f:C/111' o»••:&,p\ • •• i a• :FAYETTEVILLE /e • r Z° � • � v �/��/` • • •��`44arO As ‘ 2 c A add i 104 -61cP,, RESOLUTION NO. A RESOLUTION TO APPROVE A LOT SPLIT FROM LOT 7 OF THE JOHN SMITH ADDITION AND TO APROVE THE CONSTRUCTION THEREON OF A 500,000 GALLON WATER TOWER TO SERVE THE MT. SEQUOYAH PRESSURE PLANE WHEREAS, the City Council has the authority to approve a lot split and the construction of a vital municipal facility such as a water tower pursuant to § 164.21 of the Unified Development Code after a public hearing on the requested lot split and development/construction approval; and WHEREAS, the City Council has conducted a public hearing and determined that a lot split should be granted for Lot 7 of the John Smith Addition in order to split off a .66 acre parcel to be used for a 500,000 gallon water tower that is a vital municipal facility; and WHEREAS, the City Council has determined that this 500,000 gallon water tower should be approved for construction upon this .66 acre parcel. 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 lot split described on Exhibit A from Lot 7 of the John Smith Addition and approves the construction of a 500,000 gallon water tower to serve the Mt. Sequoyah Pressure Plane on this site as well as all necessary service facilities such as retaining walls, driveway, fencing, etc. PASSED and APPROVED this 16th day of June, 2009. APPROVED: ATTEST: By: .By: LIONELD JORDAN, Mayor . SONDRA E. SMITH, City Clerk/Treasurer PERMANENT ACCESS AND UTILITY EASEMENT A PART OF THE NW 114 OF THE SW 1/4 OF SECTION 12, T -16-N, R -30-W AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF LOT 23 IN HYLAND PARK SUBDIVISION - PHASE 2 TO THE CITY OF FAYETTEVILLE AS RECORDED ON PLAT RECORD 6-625, THENCE ALONG THE NORTH LINE OF SAID SUBDIVISION NORTH 89°39' WEST - 529.99 FEET; THENCE LEAVING SAID NORTH LINE NORTH 0'°09' EAST - 54.01 FEET TO A POINT ON THE SOUTH LINE OF LOT 7 OF JOHN SMITH ADDITION TO THE CITY OF FAYETTEVILLE AS RECORD ON PLAT RECORD 3-401; THENCE ALONG SAID SOUTH LINE SOUTH 89°39' EAST - 180.00 FEET TO THE SOUTHEAST CORNER OF SAID LOT 7, SAID. POINT ALSO BEING THE SOUTHWEST CORNER OF LOT 40 OF SHERWOOD FOREST ESTATES TO THE CITY OF FAYETTEVILLE AS RECORDED ON PLAT RECORD 3-452; THENCE ALONG THE SOUTH LINE OF SAID LOT 40 SOUTH 89°39' EAST - 350..00 FEET TO A POINT ON THE WEST RIGHT OF WAY LINE OF CANTERBURY ROAD; THENCE ALONG SAID WEST RIGHT OF WAY LINE SOUTH 0°09'24" WEST - 54.01 FEET TO THE POINT OF BEGINNING, CONTAINING 0.66 ACRES, MORE OR LESS: ALSO: A 30 FOOT PERMANENT CONSTRUCTION AND UTILITY EASEMENT ALONG THE WEST SIDE OF THE ABOVE DESCRIBED PERMANENT ACCESS AND UTILITY EASEMENT. INDEMNITY AGREEMENT THIS AGREEMENT is made on the 26th day of June, 2009 by and between GARY COMBS, hereinafter referred to as "Combs" and CITY OF FAYETTEVILLE, hereinafter referred to as "Fayetteville". WHEREAS, Combs through one of his entities, Lovers Lane, LLC is selling a .66 acre tract of land to Fayetteville for the purpose of constructing a water tower thereon ; and WHEREAS, certain ad valorem taxes in the amount of $12,889.42 are due to Washington County for Parcel # 765-07157-000 for the year 2008, which are not yet delinquent, but are due; WHEREAS, Combs agrees to pay said taxes prior to their due date of October 10, 2009; and WHEREAS, in the interest of permitting the sale of the property and to provide for the full amount of the proceeds of the closing to be transferred to Metropolitan National Bank; NOW, THEREFORE, for good and valuable consideration and the promises set forth herein, it is agreed as follows: 1. Combs agrees to indemnify and hold Fayetteville harmless for the cost of the ad valorem property taxes, plus any interest or penalties which may serve to cloud the title to the above described property. 2. Combs hereby gives his consent to the Washington County Assessor and Collector to provide notice to Fayetteville of any delinquency in regard to the above described parcel. 3. Combs agrees to personally notify Fayetteville of any delinquency notice received on the above described parcel upon receipt thereof. 4. Combs agrees to provide a copy of the paid receipt for year 2008 to Fayetteville upon receipt thereof. 5. Entire Agreement: This Agreement and Exhibits hereto represent the entire understanding and agreement among the parties with respect to the subject matter hereof and can be amended, supplemented, or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement signed by the party against whom enforcement of such amendment, supplement, modification or waiver is sought. 6. Severability: If at any time subsequent to the date hereof, any provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but shall not affect the illegality or enforceability of any other provision of this Agreement and the remainder of the Agreement shall remain in full force and effect. 7. Governing Law: This agreement shall be construed and interpreted in accordance with the laws of the State of Arkansas. 8. Binding Effect: This agreement shall be binding on and inure to the benefit of the parties and their respective heirs, personal representatives, and assigns. This agreement may not be assigned without the written consent of the other party and said consent shall not be unreasonably withheld. . THIS the 26th day of June, 2009. LOVERS LANE, L AGER 1 STATE OF ARKANSAS COUNTY OF WASHINGTON } } } ACKNOWLEDGEMENT Now on this 26th, day of June 2009, came before me, a notary public, Gary Combs, in his individual capacity and as the Manager of Lovers Lane, LLC, an Arkansas limited liability corporation, and he stated that he had executed the above instrument for the purposes and consideration set forth herein. 3- (0- ,2‘)/) My commission expires Official Seal DAVID B. FISHER Notary Public-Arkanass WASHINGTON COUNTY My Commission Expires 3-10.2013 ACCEPTED IN LIEU OF THE IMMEDIATE PAYMENT OF 2008 AD VALOREM TAXES ON THE ABOVE DESCRIBED PARCEL. CITY OF FAYETTEVILLE ATTESTED: JORDAN coh ' hi ,,'*,� -;9 +,�`.3••••�11Y O,�'.• p-• ,, s : FAYETIEVILLE: ii ..: 9N. � �: - 9RkAV:&) ,' GTON .+`' 1 Wu1t V SONDRA E. SMITH, CITY CLERK Hybrid Park Water Tower WARRANTY DEED (Corporation) BE IT KNOWN BY THESE PRESENTS: THAT Lovers Lane, LLC, an Arkansas Limited Liability Company hereinafter called GRANTOR, for and in consideration of the sum of Seventy -Five Thousand Dollars ($75,000.00) in hand paid, plus other good and valuable consideration, including a donation to the City from Lovers Lane, LLC, the receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal 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: Part of Lot 7, John Smyth Addition to the City of Fayetteville, described as beginning at the Southeast corner of said Lot 7 North 89°39' West 180 feet; thence leaving said South line North 0°09 East 160 feet; thence South 89°39' East 180 feet to a point on the East line of said Lot 7; thence along said East line South 0009' West 160 feet to the Point of Beginning, containing 0.66 acres, more or Tess. 111111111111111111111111111111111 u' Doc ID 012941020002 Type REL Kind WARRANTY DEED Recorded: 06/29/2009 at 11:08:33 Art Fee Amt: $20.00 Paae 1 of 2 Washinaton County. AR Bette Stamps Circuit Clerk F11e2009-00020455 Also a 30 -foot permanent construction and utility easement along the North, and West sides of the above described property, described as follows: Beginning at the Southwest comer of the above described property North 89°39'00" West 30.00 feet, thence North 00°09'00" East 190.00 feet, thence South 89039'00" East 210.00 feet, thence South 00°09'00" West 30.00 feet, thence North 89°39'00" West 180.00 feet, thence South 00°09'00 West 160.00 feet to the Point of Beginning. Use and Restrictions: The parcel and easement conveyed are for the purpose of constructing, operating and maintaining a city water tower with all necessary accessory structures and facilities including, but not limited to, the driveway, retaining walls, drainage control measures, water piping, electrical and communication lines, the warning light on top of the tower and communication devices for governmental use. The easement is also for any utilities that may need to be routed around the water tower site. No cellular antennas shall be allowed or placed upon any structure within this parcel or the easement and no cellular tower may be built upon any land or easement conveyed by this deed. This restriction and prohibition of a cellular tower and cellular antennas is binding on any successors of Grantee and shall run with the land. 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 Grantors hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this day of June, 2009. Lovers Lane, LLC, an Arkansas Limited Liability Company ATTEST: By: [SEAL) STATE OF ARKANSAS COUNTY OF WASHINGTON ACKNOWLEDGMENT .ss BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Gary Combs and /V/4 ' - , to me well known as the persons who executed the foregoing He_ 5 document, and who stated and acknowledged that -they the Z�.. A. ,%____ and A2-45„7" respectively, of Lovers Lane, LLC, an Arkansas Limited Liability Company, and are duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said 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 day of , 2009. MY COMMISSION EXPIRES: 3.3-.QD/6 J "1 RGETT NOTARY PUBLIC -STATE OF ARKANSAS BENTON COUNTY My Commission Expires 03-03-2016 Commission # 12347121 blic r1' LANi3 PARK WATER TOWER PERMANENT ACCESS AND UTILITY EASEMENT BE IT KNOWN BY THESE PRESENTS: THAT Hyland Park, Inc., hereinafter called GRANTOR, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby GRANT, SELL and CONVEY unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, a permanent easement for ingress, egress and access, construction, maintenance, repair and/or replacement, enlargement and operations of roadway, drainage, and general utilities including water and/or sanitary seweripe line or lines, manholes, natural gas, electrical power, telephone, fiber optic cable(s) and television communication line or lines, and appurtenances thereto, on over, across, and under purposes in, on, over, and across the following described land situated in the County of Washington, State of Arkansas, to -wit: 1111111111111111111111111111111111111111111111t 11 IIllIOI 11 Doc ID: 012955690002 Type REL Kind: EASEMENT Recorded: 07/07/2009 at 09:11:12 AM Fee Amt: $20.00 Paae 1 of 2 Washinaton County. AR Bette Stamps Circuit Clerk Fiie2009-00021604 PROPERTY DESCRIPTION: (Warranty Deed 862-919) The SW% of Section 12 and a Part of the E% of the SEY4 of Section 11, all in Township 16 North, Range 30 West, Washington County, Arkansas; more particularly described as follows: Beginning at the NE corner of said Section 12; thence S 88.degrees 38 minutes W 713.2 feet; thence S 88 degrees 30 minutes W 561.7 feet; thence S 88 degrees 31 minutes W 1347.6 feet; thence S 01 degrees 42 minutes E 1082.5 feet; thence S 88 degrees 13 minutes W 921.4 feet to the easterly right-of-way of Arkansas State Highway 265; thence S 24 degrees 26 minutes W 207.5 feet along said right of way; thence S 24 degrees 06 minutes W 100.0 feet along said right of way; thence S 22 degrees 01 minute W 100.0 feet along said right of way; thence S 19 degrees 02 minutes W 100.0 feet along said right of way; thence S 13 degrees 17 minutes W 99.9 feet along said right of way; thence S 10 degrees 43 minutes W 100.0 feet along said right of way; thence S 06 degrees 57 minutes W 100.1 feet along said right of way; thence S 01 degree 05 minutes W 167.4 feet along said right of way; thence S68 degrees 34 minutes E 434.1 feet; thence N 67 degrees 26 minutes E 299.9 feet; thence S 74 degrees 14 minutes E 223.3 feet; thence N 88 degrees 41 E 310.7 feet; thence S 01 degree 42 minutes E 490.0 feet; thence N 89 degrees 04 minutes E 2613.7 feet; thence N 02.degrees 30 minutes W 1391.47 feet; thence N 00 degrees 25minutes W 1275.9 feet to the point of beginning, containing 185.7 acres, more or less. PERMANENT ACCESS AND UTILITY EASEMENT DESCRIPTION: A part of the NW% of the SWY4 of Section 12, Township 16 North, Range 30 West and being more particularly described as follows: Beginning at the NE corner of Lot 23 in Hyland Park Subdivision - Phase 2 to the City of Fayetteville as recorded on Plat Record 6-625, thence along the North line of said Subdivision North 89°39' West 529.99 feet; thence leaving said North line North 0°09' East 54.01 feet to a point on the South line of Lot 7 of John Smyth Addition to the City of Fayetteville as recorded on Plat Record 3-401; thence along said South line South 89°39' East 180.00 feet to the Southeast corner of said Lot 7, said point also being the Southwest corner of Lot 40 of Sherwood Forest Estates to the City of Fayetteville as Recorded on Plat Record 3-452; thence along the South line of said Lot 40 South 89°39' East 350.00 feet to a point on the West right of way line of Canterbury Road; thence along said West right of way line South 0°09'24" West 54.01 feet to the point of beginning, containing 0.66 acres, more or less. Also a 30 foot permanent construction easement along the West side of the above described permanent access and utility easement. Grantees shall take such steps to ensure that neighboring properties are properly buffered. Grantees shall take the necessary steps so that existing trees and shrubs are preserved to the maximum extent possible. Together with the rights, easements, and privileges in or to said lands which may be required for the full enjoyment of the rights herein granted. TO HAVE AND TO HOLD unto said Grantees, their heirs, successors and assigns, for the uses and purposes hereinabove set forth. The Grantor agrees not to erect any permanent buildings or structures in said access easement area. The consideration first above recited as being paid to Grantors by Grantee is in full satisfaction of every right hereby granted. All covenants and agreements herein contained shall extend to and be binding upon the respective heirs, legal representatives, successors and assigns of the parties hereto. It is hereby understood and agreed that the party securing this document in behalf of the Grantee is without authority to 'make any covenant or agreement not herein expressed. WITNESS the execution hereof on this the day of 'Ulv b • , 2009. 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 James E. Lindsey and Nita V. Lindsey, to me well known as the President and Secretary of Hyland Park, Inc. and are the person(s) who executed the foregoing document, and who 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 26 fit" day of ,u n e MY COMMISSION EXPIRES: 12 11 1 2013 , 2009. OFFICIAL SEAL LACEY C.YARBROUG1 NOTARY PUBLIC- ARKANSAS WASHINGTON COUNTY M1 COMM. EXPIRES 12 I r 21:ia I, Bette Stamps, Circuit Clerk and Ex -officio ii°corder for Washington County, Arkansas, do hereby certify that this instrument was filed for record in my office as Indicated hereon and the same is now duly recorded with the acknowledgement and certificate thereon in Record Book and Page as indicated thereon. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seat of said Court on the date indi- cated hereon. Bette Stamps Circuit Clerk and Ex -officio Recorder by • This release prepared by: Metropolitan National Bank P.O. Box 8010 Little Rock, AR 72203 #115107003 Date: June 26, 2009 11111111111111111111111111111111111111 11111111 IIflhIIO IIll a Doc ID: 012941030003 Type. REL Kind PARTIAL RELEASE Recorded: 06/29/2009 at 11:10:54 ACI Fee Amt: $85.00 Paae 1 of 3 Washtnaton County. AR Bette Stamps Circuit Clerk F1102009-00020456 PARTIAL SATISFACTION OF MORTGAGE ASSIGNMENT OF RENTS THAT CERTAIN MORTGAGE owned by the undersigned, a Corporation under the laws of Arkansas, originally executed by Bob L. Gaddy, in the original principal amount of $2,500,000.00, recorded October 30, 2003 at document No. 2003-56909 of the records of the Washington County Circuit Clerk and Recorder. This Mortgage was modified to increase the amount to $3,060,000.00 in an instrument filed April 18, 2006, at Document No. 2006-15414 of said records. This Mortgage was assumed by Lovers Lane, LLC, and modified to increase the amount to $3,200,000.00 in instruments fled June 26, 2007 at document Nos. 2007-24418 and 2007-24419 of said records. And, THAT CERTAIN ASSIGNMENT OF RENTS owned by the undersigned, a Corporation under the laws of Arkansas, dated June 21, 2007 executed by Lovers Lane, LLC as Mortgagor, to Metropolitan National Bank as Mortgagee, and filed for record June 26, 2007 as Instrument Number 2007-00024420 in the Office of the Recorder (Registrar) of Washington County, Arkansas, all being in favor of Metropolitan National Bank, in consideration of indebtedness secured by the Mortgage and Mortgage Modifications having been paid in part, acknowledges partial satisfaction of the Mortgage and Modifications and releases from the stated Mortgages and Modifications of said Mortgages that part of the Property described, is paid in part and satisfied. SEE ATTACHED EXHIBIT "A" Metropolitan Natio By Mark Marks, By Chip Bla'chard, Vice President om. Loan • ffi ' r (page 2 of 3) ACKNOWLEDGEMENT State of Arkansas County of Pulaski On this 26" day of June 2009 before me, a notary public, the undersigned officer, personally appeared Mark Marks and Chip B1anchard3 who acknowledged themselves to be the Officers of Metropolitan National Bagk, a Corporation, and that they, as such Officers, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by themselves as Officers_ In witness thereof 1 hereunto set my hand and official seal. THIS INSTRUMENT PREPARED gik,';y,t+u"riij"", t'Cliata4 METROPOLITAN NATIONA ���` '4°0.944\ ,`it. E -Ira p ry N Public _ NOTARY r,�y puBL.IC ' a File Number: 200900020456 Page 2 of 3 Book Paae . rile Number 2009-00020456 (Page 3 of '3) EXHIBIT "A" Part of Lot 7 in John Smyth Addition to the City of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Southeast corner of said Lot 7, thence along the South line of said Lot 7 North 89°39'00" West 180.00 feta; thence leaving said South line North 00°09'00" East 160.00 feet; thence South 89°39100" East 180.00 fees to n point on the East line of said Lot 7; them along said East line South 00°09'00" West 160.00 feet to the Point of Beginning, containing 0.66 ares, more or less. Also a 30 Coot permanent construction and utility easement along the North and West sides of the above described property, dcscr:ibeti as follows: Ae)nniing at the Southwest corner of the above described property North 89°39'00" West 30.00 feet, thence North 00°04'00" East 190.00 feet, thence South 89°39'00" Eut 210.00 feet, thence South 00°09'00" West 30.00 feet, thcx1ce North 89°39'00" West 180.00 Feet, thence South 00°09'00" West 160.00 feet to the Point of Beginning. File Number: 200900020456 Page 3 of 3 Book . Paae . File Number 2009-00020456 11 ilii RICHARD L. MILLER Policy Issuing Agent for: OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY 2013 N. Green Acres Rd., Suite 13 P.O. Box 3354 Fayetteville, AR 72702 Hill Telephone (479) 521-6288 Fax (479) 521-3863 June ZC , 2009 ARKANSAS TITLE INSURANCE COMPANY NOTICE OF AVAILABILITY OF CLOSING PROTECTION COVERAGE Lovers Lane, LLC, to the City of Fayetteville, AR Transaction Regarding transaction of the real property located at: zi Yatz- Please be advised that, pursuant to Arkansas Code Annotated § 23-103-405 and Rule 87 of the Arkansas Insurance Department, provided that you are an insured under a title insurance policy issued by an Arkansas Title Insurance Company with respect to the transaction contemplated herein, you are entitled to closing protection coverage for the contemplated transaction at a cost of $25.00. Closing Protection Coverage allows, subject to the conditions and exclusions contained in the closing protection letter, for indemnification against the following: 1. Failure of the closing/title agent named below to comply with your written closing instructions to the extent that they relate to (a) the status of the title to that interest in land or the validity, enforceability and priority of the lien of the mortgage on that interest in land, including the obtaining of documents and the disbursement of funds necessary to establish the status of title or lien, or (b) the obtaining of any other document, specifically required by you, but only to the extent the failure to obtain the other document affects the status of the title to that interest in the land or the validity, enforceability and priority of the lien of the mortgage on that interest in land, and not to the extent that your instructions require a determination of the validity, enforceability, or the effectiveness of the other document, or 2. Fraud, dishonesty or negligence of the closing/title agent named below in handling your funds or documents in connection with the closing to the extent that fraud, dishonesty or negligence relates to the status of the title to that interest in land or to the validity, enforceability, and priority of the lien of the mortgage on that interest in land. A copy of the closing protection letter may be obtained upon request from the closing/title agent providing this notice. Miller Law Offices Being notified of the availability and cost of Closing Protection Coverage: 1/We do request such coverage. I/We do not request such coverage. 14, Signed this ZG day of June, 2009 Lovers Lane, LLC By Gary , anager Being notified of the availability and cost of Closing Protection Coverage: I/We do request such coverage. .>< I/We do not request such coverage. Signed this o� 6 day of June, 2009 City of Fayet eville, AR B Li.neld Jori. 7 ayor ALTA Commitment Form COMMITMENT FOR TITLE INSURANCE Issued by First American Title Insurance Company First American Title Insurance Company, a California corporation ("Company"), for a valuable consideration, commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the Proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest in the land described or referred to in Schedule A, upon payment of the premiums and charges and compliance with the Requirements; all subject to the provisions of Schedules A and B and to the Conditions of this Commitment. This Commitment shall be effective only when the identity of the Proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A by the Company. All liability and obligation under this Commitment shall cease and terminate six (6) months after the Effective Date or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue the policy or policies is not the fault of the Company. The Company will provide a sample of the policy form upon request. This Commitment shall not be valid or binding until countersigned by a validating officer or authorized signatory. IN WITNESS WHEREOF, First American Title Insurance Company has caused its corporate name and seal to be affixed by its duly authorized officers on the date shown in Schedule A. First Am BY: Attest: IC /l Title Insi.rance Company dif .`� , rif3' PRESI SECRE COUNTERSIGNED BY: 41003000006 (2/07) s 325.09 o. ea -)4 33sy ,/P 7z7,,z a...::: I I oc dRPOy en rn • .- SLPUEMBER 24. 1968 Z Page 1 of 2 11 II OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY COMMITMENT FOR TITLE INSURANCE SCHEDULE A 1. Commitment Date: June 17, 2009, at 7:00 A.M. III LI* * (ik� r 4 4. - Commitment *+ Commitment No. R0750 2. Policy (or Policies) to be issued: Policy Amount: (a) ALTA Owner's Policy X $200,000.00 Proposed Insured: City of Fayetteville, AR. (b) ALTA Loan Policy Proposed Insured: 3. The estate or interest in the land described or referred to in this Commitment and covered herein is a fee simple estate. 4. Title to the fee simple estate or interest in said land is at the effective date hereof vested in: Lovers Lane, LLC, an Arkansas limited liability company. 5. The land referred to in this commitment is described in Schedule C. Please read the exceptions and the terms shown or referred to herein carefully. The exceptions are meant to provide you with notice of matters that are not covered under the terms of the title insurance policy and should be carefully considered. This report is a written representation as to the condition of title for purposes of providing title insurance and lists all liens, defects, and encumbrances affecting title to the land that are filed of record. No title insurance agent or any other person other than a licensed Arkansas attorney may provide legal advice concerning the status of title to the property described in the title commitment. Page 1 of 4 SCHEDULE B — SECTION I REQUIREMENTS The following are the requirements to be complied with: (a) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured. (b) Pay us the premiums, fees and charges for the policy. (c) Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered, and recorded: 1. Obtain and record a Warranty Deed, without intervening rights, from Lovers Lane, LLC, to the City of Fayetteville, AR, with the legal description being the same as described in Schedule C. 2. Obtain and record a release of the Mortgage in favor of Metropolitan National Bank, originally executed by Bob L. Gaddy, in the original principal amount of $2,500,000.00, recorded October 30, 2003, at Document No. 2003-56909 of the records of the Washington County Circuit Clerk and Recorder. This Mortgage was modified to increase the amount to $3,060,000.00 in an instrument filed April 18, 2006, at Document No. 2006-15414 of said records. This Mortgage was assumed by Lovers Lane, LLC, and modified to increase the amount to $3,200,000.00 in instruments filed June 26, 2007, at Document Nos. 2007-24418 and 2007-24419 of said records. 3. Obtain and record a release of the Assignment of Rents and Leases in favor of Metropolitan National Bank, recorded June 26, 2007, at Document No. 2007-24420 of the records of the Washington County Circuit Clerk and Recorder. 4. The 2008 real estate taxes on Parcel #765-07157-000 must be paid in the amount of $12,889.42. 5. Provide an instrument demonstrating good standing of Lovers Lane, LLC, to do business in Arkansas and an instrument executed by its members, setting forth the authority of those to act on its behalf in order to complete the proposed transaction and execute all closing documents and documents to be insured. 6. Obtain a Seller's Affidavit and a Closing Certification at closing. (d) You must tell us in writing the name of anyone not referred to in this commitment who will get an interest in the land or who will make a loan on the land. We may make additional requirements or exceptions relating to the interest or the loan. Page 2 of 4 SCHEDULE B — SECTION lI EXCEPTIONS Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. 1. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the Proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. 2. Any discrepancies or conflicts in boundary lines, any shortages in area, or any encroachment or overlapping of improvements. 3. Any facts, rights, interests or claims which are not shown by the public record but which could be ascertained by an accurate survey of the land or by making inquiry of persons in possession thereof. 4. Easements, liens or encumbrances or claims thereof, which are not shown by the public record. S. Any lien or right to lien for services, labor or material imposed by law and not shown by the public record. 6. All assessments and taxes due in 2009, and thereafter. 7. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public record. Proceedings by a public agency which may result in taxes or assessments, or notice of such proceedings, whether or not shown by the records of such agency or the public record. 8. Loss arising from security interest evidenced by financing statements filed of record as of the effective date hereof, under the Arkansas Uniform Commercial Code and Judgment liens and other liens of record in any United States District Court or Bankruptcy Court in the State of Arkansas, as of the effective date herein. 9. All right, title and interest in and to all of the oil, gas and other minerals, and other components of the mineral estate, together with all rights, easements and privileges relating thereto. The purpose of this exception is to limit policy coverage to the surface estate only and to exclude policy coverage for all right, title and interest of any persons, and/or the public, and/or entities, and/or governments, in and to all of the oil, gas, minerals and other elements which do not constitute a part of the surface estate. It is the further purpose of this exception to exclude coverage for all rights, privileges, whether recorded or unrecorded, relating to the mineral estate including, but not limited to, items such as: mineral leases, transfers of mineral interests, mineral conveyances or reservations, royalty conveyances or reservations, pooling agreements, unit designations, royalty interests, royalties, bonuses, mineral estate rentals, delay rentals and ingress/egress for mineral production or Page 3 of 4