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HomeMy WebLinkAbout144-11 RESOLUTIONRESOLUTION NO. 144-11 A RESOLUTION TO APPROVE A CONTRACT TO RELEASE HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. AND THE CITY OF FAYETTEVILLE FROM THE REAL ESTATE SALES CONTRACT OF NOVEMBER 15, 2006 AND TO RECONVEY THE PROPERTY TO THE CITY OF FAYETTEVILLE AND TO APPROVE A BUDGET ADJUSTMENT OF $90,000.00 WHEREAS, after receiving approximately eight acres from the City (paid for primarily by a $90,000.00 grant from the City's Community Development Block Grant Program) in 2006, Habitat for Humanity worked with the U of A's Community Design Center in hopes of constructing attractive, sustainable, attainable housing; WHEREAS, by 2009 Habitat for Humanity had concluded that necessary land development and infrastructure costs for this development made it unfeasible for affordable housing; and WHEREAS, Habitat for Humanity has requested that it be released from its 2006 contract; and WHEREAS, the U of A Community Design Center has agreed that the 2006 contract can be released. 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 attached Contract To Release Habitat For Humanity Of Washington County, Inc. And The City Of Fayetteville From The Real Estate Sales Contract Of November 15, 2006 And To Reconvey The Property To The City Of Fayetteville and authorizes Mayor Jordan to execute this Contract. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached Budget Adjustment of $90,000.00. PASSED and APPROVED this 16th day of August, 2011. APPROVED: B ATTEST: `�rililll/ "0, >,`, cykwTRF..Q 4'oo `4, G� .... S �P BO-�AYEiTV1LLE ° By: .tea SONDRA E. SMITH, City C1erk/Tre"RkANS.v.. mb 1/«II10�11A195 Yolanda Fields Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 8/16/2011 City Council Meeting Date Agenda Items Only Community Services Division Action Required: Development Services Department Approval of an agreement for reimbursement of funds to the CDBG fund for the Habitat for Humanity Huntsville property purchase and approval of a Budget Adjustment for $90,000.00. c 00 0, o0 Cost of this request 1.,o,6tcc?�,'®S,6(3 Account Number Project Number Budgeted Item $ Category / Project Budget Ad A� Program Category / Project Name cog Rei Funds Used to Date Program 1 Project Category Name 6- P/1 Pfc 1 Remaining Balance Fund Name Budget Adjustment Attached x ,(14), Department rector City Attorney ciL Previous Ordinance or Resolution # Date Original Contract Date: f. '1-T-lak1 Original Contract Number: Date Finance and Internal Services Director Date Received in Cit97-26-11P02:12 CVD Clerk's Office wi Y1/4_ Staff recommends approval of reimbursement agreement and budget adjustment for $90,000.00 Revised January 15, 2009 av'F'elrille ARKANSAS www.accessfayetteville.org CITY COUNCIL AGENDA MEMO THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE To: Mayor and City Council Thru: Jeremy Pate, Director of Development Services From: Yolanda Fields, CS Dire Date: July 20, 2011 Subject: Huntsville Property — Land Acquistion Funding Reimbursement PROPOSAL: In August of 2007 a Community Development Block Grant (CDBG) in the amount of $90,000.00 was awarded to Habitat for Humanity of Washington County (HFH -WC) to use towards the purchase of 8.8 acres of property owned by the City of Fayetteville. The property located on Huntsville Road was to be used for the development of homes for extremely -low and very low income families. At this time HFH -WC has determined that the project will not move forward, as indicated in the attached resolution. In accordance with this request, HFH - WC will deed the property back to the City of Fayetteville and the funding utilized from CDBG to help purchase the 8.8 acres will be returned to the CDBG program. Proceeds from the land acquisition were posted to the City of Fayetteville — General Fund. Therefore, reimbursement of CDBG funds will be made from this fund in the amount of $90,000.00 RECOMMENDATION: Staff recommends approval of an agreement for reimbursement of funds to CDBG fund for the Huntsville property and approval of a Budget Adjustment for $90,000.00. BUDGET IMPACT: Budget adjustment for $90,000.00. RESOLUTION NO. A RESOLUTION TO APPROVE A CONTRACT TO RELEASE HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. AND THE CITY OF FAYETTEVILLE FROM THE REAL ESTATE SALES CONTRACT OF NOVEMBER 15, 2006 AND TO RECONVEY THE PROPERTY TO THE CITY OF FAYETTEVILLE AND TO APPROVE A BUDGET ADJUSTMENT OF $90,000.00 WHEREAS, after receiving approximately eight acres from the City (paid for primarily by a $90,000.00 grant from the City's Community Development Block Grant Program) in 2006, Habitat for Humanity worked with the U of A's Community Design Center in hopes of constructing attractive, sustainable, attainable housing; WHEREAS, by 2009 Habitat for Humanity had concluded that necessary land development and infrastructure costs for this development made it unfeasible for affordable housing; and WHEREAS, Habitat for Humanity has requested that it be released from its 2006 contract; and WHEREAS, the U of A Community Design Center has agreed that the 2006 contract can be released. 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 attached Contract To Release Habitat For Humanity Of Washington County, Inc. And The City Of Fayetteville From The Real Estate Sales Contract Of November 15, 2006 And To Reconvey The Property To The City Of Fayetteville and authorizes Mayor Jordan to execute this Contract. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached Budget Adjustment of $90,000.00. PASSED and APPROVED this 16th day of August, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer CONTRACT TO RELEASE HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. AND THE CITY OF FAYETTEVILLE FROM THE REAL ESTATE SALES CONTRACT OF NOVEMBER 15, 2006 AND TO RECONVEY THE PROPERTY TO THE CITY OF FAYETTEVILLE WHEREAS, on October 25, 2006, Habitat For Humanity of Washington County, Inc. executed the Real Estate Sales Contract offering to purchase approximately eight acres from the City of Fayetteville for $152,000.00 ($90,000.00 of those funds came from the Fayetteville Community Development Block Grant); and WHEREAS, on November 7, 2006, the Fayetteville City Council passed Ordinance No. 4944 agreeing to this Real Estate Sales Contract with Habitat For Humanity; and WHEREAS, on November 15, 2006, Mayor Dan Coody executed the Real Estate Sales Contract on behalf of the City of Fayetteville; and WHEREAS, Habitat For Humanity of Washington County, Inc. determined in 2009 that the land development and infrastructure costs for its proposed 20 lots for affordable housing on the eight acres were so high that its affordable housing could not be built on these lots; and WHEREAS, on July 28, 2009, Habitat For Humanity of Washington County, Inc.'s Board of Directors passed a Resolution requesting that the City of Fayetteville release it from the Real Estate Sales Contract of November 15, 2006; and WHEREAS, on July 18, 2011, Stephen Luoni, Director of the University of Fayetteville Community Design Center, agreed that the 2006 contract could be released; and WHEREAS, the City Council of the City of Fayetteville desires to accommodate Habitat For Humanity of Washington County, Inc.'s request. NOW, THEREFORE IT IS AGREED BY HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC., hereinafter "Habitat for Humanity" and the CITY OF FAYETTEVILLE as follows: 1. Habitat for Humanity shall and does hereby release the City of Fayetteville from all terms and conditions of the Real Estate Sales Contract of November 15, 2006 and agrees to reconvey the subject eight acres of land to the City of Fayetteville. 2. The City of Fayetteville shall and does hereby release Habitat for Humanity from all terms and conditions of the Real Estate Sales Contract of November 15, 2006 and agrees to repay funds actually paid from Habitat for Humanity's own resources for the conveyance of the eight acres to Habitat for Humanity. The City also agrees to repay to the Community Development Block Grant the $90,000.00 which had been awarded to Habitat for Humanity to help purchase this property. There shall be no repayment of any portion of the potential $52,000.00 in credits that might have been authorized by the City Engineer and Planning and Development Management Director. 3. Habitat for Humanity further agrees that the City of Fayetteville should directly repay all funds received from Fayetteville's Community Development Block Grant for this project to Fayetteville's Community Development Block Grant. 4. Habitat for Humanity further agrees to indemnify the City of Fayetteville, its officials and employees from any claims, causes of actions or liability connected or related to this agreement to release Habitat for Humanity from its November 15, 2006 Real Estate Sales Contract. IN AGREEMENT WITH ALL OF THE PROMISES, TERMS AND CONDITIONS ABOVE, the authorized representatives of HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. and the CITY OF FAYETTEVILLE sign our names below on the date indicated: HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. CITY OF FAYETTEVILLE, ARKANSAS By: _ . LSC By: / Pct_ L. 1,t) ; iecx /bores z c[ e4 -- Printed Name and Title Date ge/3/n ATTEST OR WITNESS: ONELD Date ATTEST: AN, Mayor - /6, -11 By:3 . Sondra E. Smith, City Clerk/Trewropur ,�r�� •° ®� A 0 •fit :FAYETTEVILLE:GroVi to,oustoto e.oke art R ec & I.na ar Printeame and Title CONTRACT TO RELEASE HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. AND THE CITY OF FAYETTEVILLE FROM THE REAL ESTATE SALES CONTRACT OF NOVEMBER 15, 2006 AND TO RECONVEY THE PROPERTY TO THE CITY OF FAYETTEVILLE WHEREAS, on October 25, 2006, Habitat For Humanity of Washington County, Inc. executed the Real Estate Sales Contract offering to purchase approximately eight acres from the City of Fayetteville for $152,000.00 ($90,000.00 of those funds came from the Fayetteville Community Development Block Grant); and WHEREAS, on November 7, 2006, the Fayetteville City Council passed Ordinance No. 4944 agreeing to this Real Estate Sales Contract with Habitat For Humanity; and WHEREAS, on November 15, 2006, Mayor Dan Coody executed the Real Estate Sales Contract on behalf of the City of Fayetteville; and WHEREAS, Habitat For Humanity of Washington County, Inc. determined in 2009 that the land development and infrastructure costs for its proposed 20 lots for affordable housing on the eight acres were so high that its affordable housing could not be built on these lots; and WHEREAS, on July 28, 2009, Habitat For Humanity of Washington County, Inc.'s Board of Directors passed a Resolution requesting that the City of Fayetteville release it from the Real Estate Sales Contract of November 15, 2006; and WHEREAS, on July 18, 2011, Stephen Luoni, Director of the University of Fayetteville Community Design Center, agreed that the 2006 contract could be released; and WHEREAS, the City Council of the City of Fayetteville desires to accommodate Habitat For Humanity of Washington County, Inc.'s request. NOW, THEREFORE IT IS AGREED BY HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC., hereinafter "Habitat for Humanity" and the CITY OF FAYETTEVILLE as follows: 1. Habitat for Humanity shall and does hereby release the City of Fayetteville from all terms and conditions of the Real Estate Sales Contract of November 15, 2006 and agrees to reconvey the subject eight acres of land to the City of Fayetteville. 2. The City of Fayetteville shall and does hereby release Habitat for Humanity from all terms and conditions of the Real Estate Sales Contract of November 15, 2006 and agrees to repay funds actually paid from Habitat for Humanity's own resources for the conveyance of the eight acres to Habitat for Humanity. The City also agrees to repay to the Community Development Block Grant the $90,000.00 which had been awarded to Habitat for Humanity to help purchase this property. There shall be no repayment of any portion of the potential $52,000.00 in credits that might have been authorized by the City Engineer and Planning and Development Management Director. 3. Habitat for Humanity further agrees that the City of Fayetteville should directly repay all funds received from Fayetteville's Community Development Block Grant for this project to Fayetteville's Community Development Block Grant. 4. Habitat for Humanity further agrees to indemnify the City of Fayetteville, its officials and employees from any claims, causes of actions or liability connected or related to this agreement to release Habitat for Humanity from its November 15, 2006 Real Estate Sales Contract. IN AGREEMENT WITH ALL OF THE PROMISES, TERMS AND CONDITIONS ABOVE, the authorized representatives of HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. and the CITY OF FAYETTEVILLE sign our names below on the date indicated: HABITAT FOR HUMANITY CITY OF OF WASHINGTON COUNTY, INC. FAYETTEVILLE, ARKANSAS By: By: LIONELD JORDAN, Mayor Printed Name and Title Date Date ATTEST OR WITNESS: ATTEST: By: By: Sondra E. Smith, City Clerk/Treasurer Printed Name and Title e vi e ARKANSAS www.accessfayetteviiie.org 14 July 2011 Mr. Stephen Luoni, Director University of Arkansas Community Design Center 104 N. East Avenue Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS DEVELOPMENT SERVICES DEPARTMENT Sts West Mountain Fayetteville, AR 72701 Phone (479) 444-3443 RE: Status of the University of Arkansas/USEPA/ANRC/Habitat for Humanity Huntsville Road Affordable Housing Project , aka "Porchscapes" Dear Mr. Luoni, I have been given the task of finding final resolution for the City regarding the Porchscapes project. As you are aware, the City's involvement in this project was to sell the Habitat for Humanity organization a tract of land off of Huntsville Road at a reasonable price to assist in making the project happen. Federal Community Development Block Grant (CDBG) funding was also provided through the City's Community Development program for the Sustainable Development Project on which your team worked. Subsequently, this funding was utilized for the acquisition of property for the project. The land purchase was completed and the Habitat organization holds the deed to this property. It is my understanding that all parties mutually agree that the Porchscapes project is not going to occur as was originally intended, for a variety of reasons. The Board of Directors for Habitat for Humanity passed a Resolution (attached) requesting the City release Habitat from the land purchase contract it entered into with the City of Fayetteville in November of 2006. In addition, after meeting with Mayor Jordan and Chief of Staff Don Marr in 2009, and through a letter to the Mayor in March of 2010, you have indicated that your grant obligations associated with the USEPA's Section 319 Non -point Source Pollution program grant required you to secure a new client and get the project back on schedule by June 1, 2010. Failure to do so would result in a cancellation of the grant by USEPA and ANRC and you indicated that after that date you "would make no further request of the City to enforce conformance with the conditions of the sale." I assume that this did not occur, and the grant has subsequently been cancelled, as we have heard nothing further since that time. Representing the City, it is my belief that at all levels we desired to see this project come to fruition, much as you and -your team did. Given that we are several years down the road, however, we would like to tie up any loose ends as much as possible. From our position, the land acquisition funding needs to be reimbursed to the CDBG program under its federal guidelines. Failure to complete the reimbursement process could lead to a reduction in future CDBG funding to the City and/or other restrictions from the Department of Housing and Urban Development. It is our intent to take the deed -to the property -back and return the acquisition funds to the CDBG program to be used for other eligible projects. The City requests that you sign -the attached letter acknowledging the UACDC wants the contract ended; as you have indicated, and waiving any third party beneficiary claims on the contract. After receiving this confirmation, we will schedule a closing for Habitat to deed the land back to us and return the funds to CDBG. Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS If you have any questions, please don't hesitate to contact me. A reply by Monday, August 01 would be greatly appreciated. Best Regards, Iu�c.l�r, • Jeremy C. Pate, APA, ASLA Development Services Director City of Fayetteville, Arkansas Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 Date '2-I)- 1,0il Mayor Lioneld Jordan City Administration Building 113 W. Mountain Street Fayetteville, AR 72701 RE: Habitat contract Dear Mayor Jordan: In conformance with my letter of March 23, 2010, this letter acknowledges that the University of Arkansas now agrees that the University no longer requests or desires the City of Fayetteville to attempt to enforce its Real Estate Sales Contract with Habitat for Humanity of Washington County, Inc. entered into about November 15, 2006. Furthermore, the University acknowledges that it is not a third pari beneficiary of such contract and waives any such third party beneficiary rights under the contract. Sincerely, STEPHEN LUONI, Director University of Arkansas Community Design Center UNIVERSITY OF ARKANSAS COMMUNITY DESIGN CENTER 104 North East Avenue Fayetteville, AR 72701 phone 479-575-5772 fax 479-575-7045 http:IJuacdc.uark.edu outreach center of the school of architecture March 23, 2010 The Honorable Lioneld Jordan Mayor of Fayetteville, Arkansas City Administration Building 113 West Mountain Street Fayetteville, AR 72701 mavorPci.favetteville.ar.us Re: Status of the University of Arkansas/USEPA/ ANRC/Habitat for Humanity Huntsville Road Affordable Housing Project Dear Mayor Jordan: Thank you for your consideration of the matter regarding the status of the Huntsville Road affordable housing project, hereafter known as Porchscapes. This three-year project is a collaboration among the University of Arkansas, McClelland Engineering Consultants, Inc., the U.S. Environmental Protection Agency (USEPA), the Arkansas Natural Resources Commission (ANRC), and Habitat for Humanity of Washington County (Habitat), and funded under USEPA's Section 319 Non -point Source Pollution program. The City of Fayetteville also made critical contributions towards project development, especially through sale of the property to Habitat under very favorable conditions. As you may recall, the conditions of that sale stipulated in Ordinance 4944 and ratified November 7, 2006 bind Habitat to carry out the terms of the grant made by ANRC to the University of Arkansas. Basically, ANRC wants a demonstration Low Impact Development with housing constructed on the site. While Habitat has since withdrawn their commitments to the project under its new Executive Director, Wendi Jones, for several stated reasons, our grant obligations require us to secure a new client by June 11% 2010. Failure to secure a new client and move the project back on schedule towards construction will result in the withdrawal of further funding and cancellation of the grant by ANRC and USEPA. We are currently holding informal discussions with a prospective client, and request that the City continue to enforce conformance with the conditions of the sale as well as those of the Community Development Block Grant awarded by the City to Habitat in support of the property purchase. Should we find a new client willing to sponsor construction of the project we fully expect reversal of the agreements between the City and Habitat, since Habitat has indicated to us their intended cooperation in facilitating construction of the project by another housing provider. If we are unsuccessful in securing a new client resulting in cancellation of the grant after June 14`, we make no further request of the City to enforce conformance with the conditions of sale. However, the City should understand organizations' capacities in allocating future resources, given its own interest in seeing more construction of affordable housing. While the project team UNIVERSITY OF ARKANSAS COMMUNITY DESIGN CENTER has billed ANRC $252,000 for modeling, engineering, planning, and education services, more than $1.3 million in professional services have been delivered over the last three years. The unexpected retirement of former Executive Director, Patsy Brewer, who commissioned Porchscapes, threw the project off schedule in terms of time and organizational capacity to Continue with the project. Habitat has given several public reasons for their withdrawal, including fundraising issues, revised infrastructure costs due to poor soil conditions and floodplain map revisions (understood and approved by Brewer), and philosophy about affordability (they don't want to account for the cost of infrastructure). Please note that the project had been redesigned to meet the technical challenges posed by impervious soils and floodplain map revision conditions. Patsy and I were confident that her funding sources would have met the $6 million goal needed for the entire 43 -unit project. Habitat's new administration has certainly been very casual about its investment in the project despite the incredible amount of resources expended by the rest of the project team, the City, and others (i.e., the University's Women's Giving Circle, Kellogg Foundation, USGBC). We all miss Patsy's ambition and capacity to solve for multiple issues. Nonetheless, we have greatly appreciated the City's leadership at all levels in the project, and look forward to another once-in-a-lifetime opportunity to build a demonstration project in Fayetteville. Thanks again for your consideration, and let's hope something miraculous happens by June. Sincerely, Stephen Luoni, Director Steven L. Anderson Chair in Architecture and Urban Studies RESOLUTION A RESOLUTION TO RELEASE HABITAT FOR HUMANITY OF WASHINGTON COUNTY, AR., INC. FROM THE TERMS OF THE REAL ESTATE CONTRACT WITH THE CITY OF FAYETTEVILLE TO PURCHASE PROPERTY FOR AFFORDABLE HOUSING AS PART OF A DEMONSTRATION PROJECT Whereas, Habitat For Humanity of Washington County, Arkansas, inc. entered into a Real Estate contract, dated October 26, 2006, with the City of Fayetteville for land owned by the City, and Whereas, the land was to be purchased for development of at least 20 lots for affordable housing, in conjunction with the University of Arkansas Community Design Center, and Whereas, the initial cost estimates for the project were considered to be reasonable and affordable, and are now considered beyond Habitat's resources. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF HABITAT FOR HUMANITY OF WASHINGTON COUNTY, ARKANSAS, INC.: Section 1. That the Board of Directors of Habitat for Humanity of Washington County, Arkansas, Inc. requests the City of Fayetteville to release Habitat from the sales contract, dated October 26, 2006, in whatever manner deemed legal and proper. Section 2. That the Board of Directors of Habitat for Humanity of Washington County, Arkansas, Inc. further resolves to work with the City of Fayetteville to assure the return of the community Development Block Grant funds used to partially fund the purchase. PASSED and APPROVED this 28`" day of July, 2009. APPROVED: By: ATTEST: avis, Secretary v�yr Tommy LevGis, President ORDINANCE NO. 4944 TATs ORDINANCE WAIVING THE REQUIREMENTS OF §34.27, CODE OF FAYETTEVILLE AND APPROVING A REAL ESTATE SALES CONTRACT WITH HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. IN THE AMOUNT OF $152,000 FOR THE PURCHASE OF EIGHT ACRES SOUTH OF HUNTSVILLE ROAD AND SEVEN HILLS TRANSITIONAL HOUSING; AND DESIGNATING A PORTION OF THE REMAINING ACREAGE SOUTH AND EAST OF THIS PARCEL AS PASSIVE GREENSPACE OR PARKLAND BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby waives the requirements of § 34.27, Code of Fayetteville, and approves a Real Estate Sales Contract with Habitat For Humanity Of Washington County, Inc. in the amount of $152,000.00 for the purchase of eight acres south of Huntsville Road and Seven Hills Transitional Housing. A copy of the contract is attached hereto marked Exhibit "A" and made a part hereof. The Engineering and Planning Divisions may authorize credits to Habitat against the purchase price for the fair value of storm water management features in excess of normal code requirements and educational demonstration projects to spur innovation and increased efficiency for other developers in the storm water management area. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby designates a portion of the remaining acreage south and east of this parcel as passive greenspace or parkland to be developed after consultation among Habitat for Humanity of Washington County, Inc., the City Parks Department and the Parks and Recreation Board. A portion of the consideration to purchase the eight acres may include design and development of this parkland by Habitat and its development partner. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor and City Clerk to execute said contract with Habitat for Humanity of Washington County, Inc. \,lu rii`e,r' ~ • 4.131; . FAYETTEVILLE: ' '9Ric g. By: Q1&1Lkt-o-/''4•GT. Novo% SONDRA SMITH, City Clerk PASSED and APPROVED this 7th day of November, 2006. APPROV_D: ATTEST: REAL ESTATE SALES CONTRACT 1. The City of Fayetteville, Arkansas offers to sell and Habitat For Humanity Of Washington County, Inc. (hereinafter Habitat For Humanity) offers to buy, subject to terms and conditions set forth in this contract, approximately eight (8) acres more particularly described in Exhibit "1" attached hereto and made a part hereof. SEE ATTACHED EXHIBIT "1" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, Habitat For Humanity shall pay for the property One Hundred Fifty -Two Thousand Dollars ($152,000.00). One Hundred Thousand Dollars ($100,000.00) shall be due at closing. The remaining Fifty -Two Thousand Dollars ($52,000.00) shall be subject to credits authorized by the City Engineer and the Planning and Development Management Director and shall be due prior to the issuance of the first building permit for any lot developed upon this property. 3. Conveyance will be made Habitat For Humanity by General Warranty Deed, except it shall be subject to recorded inns rnents and easements, if any, which do not materially affect the value of the property. 4. No title insurance shall be required of the City of Fayetteville for this sale and conveyance. Habitat For Humanity may request and pay for title insurance at its option. 5. The City of Fayetteville agrees to allow Habitat For Humanity, at Habitat For Humanity's expense, to survey the property. 6. Taxes and special assessments due on or before closing shall be paid by the City of Fayetteville, General taxes, ad valorem taxes and special assessments shall be prorated as of closing. 7. The closing date shall be within one hundred eighty (180) days after approval of this Real Estate Contract by the City Council, which can be extended by agreement of the Mayor for an additional sixty (60) days. If such date of closing falls on a weekend or holiday, it will be held the following working day. 8. Possession of the property shall be delivered to Habitat For Humanity on the date of closing. 9. The City of Fayetteville hereby grants permission for Habitat For Humanity or its designees to enter the above described property and improvements for the purpose of inspection and/or surveying. 10. 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. 11. The City of Fayetteville shall disclose to Habitat For Humanity any and all environmental hazards of which the City of Fayetteville has actual knowledge. 12. Habitat For Humanity Of Washington County, Inc. agrees to develop this parcel into at least twenty (20) lots to be used for its affordable housing projects in conjunction with the University of Arkansas Community Design Center. Habitat For Humanity further agrees to assist the U of A in applying for and complying with grants to make this project more affordable for the future homeowners. Habitat For Humanity shall employ advanced ecological storm water management development techniques and require its homeowners to properly maintain all such facilities pursuant to non -amendable restrictive covenants. 13, Habitat For Humanity Of Washington County, Inc. agrees to develop this eight acre parcel as a Planned Zoning District so that the Planning Commission and City Council can review and approve the design of the subdivision and the proposed innovative designs of the houses. 14. The City of Fayetteville and Habitat For Humanity agree that the benefits to the City of Fayetteville of the advanced stormwater management techniques employed on this site (both for control of stormwater and drainage and as demonstration projects for the benefit and education of other developers) should form a portion of the compensation for this purchase and designate the City Engineer and the Planning and Development Management Director to ascertain and determine the fair market value of these services which shall reduce the amount owed on the purchase price of this eight acre parcel. 15. This agreement shall be governed by the laws of the State of Arkansas. 16. This agreement, when executed by both Habitat For Humanity and the City of Fayetteville shall contain the entire understanding and agreement ofthe 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. CITY OF FAYETTEVILLE A Municipal Corporation Attest: „A;mu Sondra mith, City Clerk Date: /I /i/c.1 HABITAT FOR HUMANITY OF WASHINGTON COUNTY, INC. By: (:??t PATSY BREWER Executive Director Date: /4 — 5-0 Agent or/CtA ' A ,P4' Date: 2 /0 -Oa ACKNOWLEDGMENT STATE OF ARKANSAS 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 Patsy Brewer to me well known as the person who executed the foregoing document, and who stated and acknowledged that she is the Executive Director of Habitat For Humanity Of Washington County, Inc. and is duly authorized in her respective capacity to execute the foregoing instrument for and in the name and behalf of the corporation, and further stated and acknowledged that she 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 oIS'clay of October, 2006. >>���tttt tt?rll�i pA....Rgyo, �`�Q•, $lot FIs p▪ .,i v� le* la • A G . _. My Commission Expires: %•••F ua�+ •�Q-▪ , Oblit 11I�!lltltti� Notary Public ACKNOWLEDGMENT STATE OF ARKANSAS 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 Coody 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. -4h WITNESS my hand and seal on this 15 day ;f October, 2006. 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