HomeMy WebLinkAbout143-13 RESOLUTIONRESOLUTION NO. 143-13
A RESOLUTION TO SELL ABOUT 14.9 ACRES OF LAND IN THE
INDUSTRIAL PARK TO PACIFIC VET GROUP -USA, INC. FOR $223,500.00
AND OTHER VALUABLE CONSIDERATION AND TO APPROVE A
BUDGET ADJUSTMENT
WHEREAS, Pacific Vet Group -USA, Inc. needs an appropriate site to construct a
research and manufacturing site for a development and commercialization of science -based
probiotic products for the poultry industry; and
WHEREAS, Governor Beebe and the Arkansas Economic Development Commission
has agreed to provide substantial financial assistance if Pacific Vet Group -USA, Inc. builds its
facility in Fayetteville and moves or creates at least 60 jobs with an average annual salary of
$65,000.00; and
WHEREAS, the City of Fayetteville needs to also assist Pacific Vet Group -USA, Inc. by
selling its 14.9 acre parcel at a discount of $5,000.00 per acre from its normal selling price and to
construct public infrastructure improvements totaling about $200,000.00 for this project.
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 Land Sale Agreement (attached as Exhibit A) which conveys about 149 acres to
Pacific Vet Group -USA, Inc. for $223,500.00 plus other consideration pursuant to the terms of
the Land Sale Agreement and authorizes Mayor Jordan to sign the Land Sales Agreement and
the Warranty Deed for this 14.9 acre parcel.
Section 2: The City Council of the City of Fayetteville, Arkansas hereby approves
the attached Budget Adjustment in the amount of $74,500.00.
PASSED and APPROVED this 18th day of June 2013.
APPROVED:
I�
ATTEST:
SONDRA E. SMITH, City Clerk/Treasurer
ooll
�.� . GSA Y
FAYETTEVILLE:ter
City of Fayetteville, Arkansas
Budget Adjustment Form
V 12.0724
Budget Year Division: Citywide
2013 1
Department: Citywide
Request Date I Adjustment Number
5/ 13/2013
BUDGET ADJUSTMENT DESCRIPTION ! JUSTIFICATION
$74,500 in the Transfer to Water & Sewer account to reimburse the Water & Sewer Fund for market value of the
sale of 14.9 acres of Industrial Park Property.
Division Head
Date
S 7 z-?o�]
et .
Bu Dire r
Date
Department Director
Date
tor
Date
Chief of aff - -- Date
a r Pk t ye�-
Account Name
Transfer to Water & Sewer
Use of fund balance
Prepared By: Kevin Springer
Springer, Kevin
Reference:
Budget & Research Use Only
Type: A B C cD E P
General Ledger Date
Posted to General Ledger
Checked / Verified
Initial Date
Initial Date
TOTAL BUDGET ADJUSTMENT 74,500 74,500
Increase / (Decrease)
Account Number
1010.6600.7602.40
1010.0001.4999,99
Expense Revenue
74,500 -
74,500
Project.Sub
Number
57018 . 5400
HABudgeAHudget Adjustments12013_6udgeWevin1BA2013_IPark- Sal e-WS_Transfer.xls 1 of 1
City of Fayetteville Staff Review Form
David Jurgens
Submitted By
City Council Agenda Items
and
Contracts, Leases or Agreements
6/18/2013
City Council Meeting Date
Agenda Items Only
Utilities
Division
Utilities
Department
Action Kequirea:
Approving a contract with Pacific Vet Group -USA, Inc. (PVG) for $223,500.00 for the sale of approximately 14.9 acres
of land owned by the City of Fayetteville water and sewer utility on Morningside Drive in the Industrial Park,
Miscellaneous
Cost of this request Category I Project Budget Program Category! Project Name
Transfers Out
Account Number Funds Used to Dale Program I Project Category Name
General
Project Number Remaining Balance Fund Name
Budgeted Item 0 Budget Adjustment Attached
City Attorney
3 t11-1 A", L3
Date
Date
Finance and Internal Services Director Date
Date
comments:
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number: 6/412013
Received in City
Clerk's Office
EN
Received in E
Mayor's Office
Revised January 15, 2009
CITY COUNCIL AGENDA MEMO
MEETING DATE OF JUNE 18, 2013
THE CITY OF FAYETTEVILLE, ARKANSAS
A axAN
To: Fayetteville City Council
Thru: Mayor Lioneld Jordan
Don Marr, Chief of Staff
From: David Jurgens, Utilities Director
Date: May 31, 2013
Subject: Sale of 14.9 Acres of Land in the Industrial Park to Pacific Vet Group -USA, Inc.
RECOMMENDATION
City Staff recommends approving a contract with Pacific Vet Group -USA (PVG) for $223,500.00 for the sale of
approximately 14.9 acres of land owned by the City of Fayetteville water and sewer utility on Morningside Drive in the
Industrial Park.
BACKGROUND
The City of Fayetteville, the Arkansas Economic Development Commission (AEDC), and the Arkansas Governor have
been approached by PVG to find a site suitable for construction of a research and manufacturing facility into which PVG
plans to expand. PVG is a privately held bioscience company specializing in the development and commercialization of
science -based probiotic products for the poultry industry. Currently headquartered in Fayetteville, PVG's core technology
is Iicensed from the University of Arkansas, where it was developed in the laboratories of Dr. Billy M. Hargis, a leading
poultry researcher. PVG has stated its intent to construct and occupy a new facility at the Monningside Drive site that will
move or create a total of at least 60 jobs with an average annual salary of $65,000 within five years to this location. PVG
has further stated its intent that construction of the facility will begin within 12 months of acceptance of this offer.
DISCUSSION
The attached land sale agreement has been reached through negotiations between the City, the Chamber of Commerce, the
AEDC and PVG. The proposal is to sell the property to PVG at a reduced rate of $15,000 per acre. In order for this
project to be eligible for AEDC funding support, the City must contribute to the economic development in some way. With
the current proposal, the City's contribution is in the form of the discounted price per acre (the established asking price has
been $20,000, which is what the Water/Sewer fund paid the general fund when the land was transferred in April, 2003) as
well as assistance with on -site development including possible work on storm drainage, pavement, street work, utility work,
and sidewalk work, all within the public right of way. The value of this work is estimated at $200,000. Payment for the
cost of the land will be amortized over 20 years with the first 5 years fixed at an interest rate of the Federal Reserve Rate
plus one percent (1 %). At the end of the 5th year, the interest rate will be modified annually based on the Federal Reserve
Rate plus one percent (1%) on each anniversary date.
City Code §34.27 establishes specific requirements regarding public notice of the sale of real property. All Code
requirements have been met with the related City Council resolution passed June 4, 2013.
BUDGET IMPACT
$223,500 in sale revenue will be paid to the Water/Sewer fund. A budget adjustment approved June 4, 2013 approved
transferring $74,500 from the general fund to the Water/Sewer fund to make that fund whole from the land sale.
Attachments: Sale Agreement
Location Map (wide area)
Detail Map
Tentative Site Layout
AEDC Letter to PVG
City Attorney Memo of May 9, 2013
PVG Land Sale Morningside CCMemo Jun 13
RESOLUTION NO.
A RESOLUTION TO SELL ABOUT 14.9 ACRES OF LAND IN THE
INDUSTRIAL PARK TO PACIFIC VET GROUP -USA, INC. FOR $223,500.00
AND OTHER VALUABLE CONSIDERATION AND TO APPROVE A
BUDGET ADJUSTMENT
WHEREAS, Pacific Vet Group -USA, Inc. needs an appropriate site to construct a
research and manufacturing site for a development and commercialization of science -
based probiotic products for the poultry industry; and
WHEREAS, Governor Beebe and the Arkansas Economic Development
Commission has agreed to provide substantial financial assistance if Pacific Vet Group -
USA, Inc. builds its facility in Fayetteville and moves or creates at least 60 jobs with an
average annual salary of $65,000.00; and
WHEREAS, the City of Fayetteville needs to also assist Pacific Vet Group -USA,
Inc. by selling its 14.9 acre parcel at a discount of $5,000.00 per acre from its normal
selling price and to construct public infrastructure improvements totaling about
$200,000.00 for this project.
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 Land Sale Agreement (attached as Exhibit A) which conveys about 14.9 acres to Pacific Vet
Group -USA, Inc. for $223,500.00 plus other consideration pursuant to the terms of the Land Sale
Agreement and authorizes Mayor Jordan to sign the Land Sales Agreement and the Warranty
Deed for this 14.9 acre parcel.
Section 2: The City Council of the City of Fayetteville, Arkansas hereby approves the
attached Budget Adjustment in the amount of $74,500.00.
PASSED and APPROVED this 18th day of June 2013.
APPROVED:
By: By:
ATTEST:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
LAND SALE AGREEMENT
This Land Sale Agreement is made and entered into by and between the City of Fayetteville,
Arkansas, a municipal corporation of the Swtc of Arkansas (hereinafter "City" or
"Fayetteville") and Pacific Vet Group -USA, Inc.
The City of Fayetteville agrees to sett a parcel of about 14.9 acres on Morningside Drive in
the Fayetteville Industrial Park to Pacific Vet Group -USA, Inc. for TWO HUNDRED
TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) and Inc.
Pacific Vet Group -USA, Inc.'s perfornnuice of all of the terms, conditions and promises set
forth later in this Agreement.
Pacific Vet Group -USA, Inc. agrees to pay to the City of Fayetteville TWO HUNDRED
TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) for this 14.9
acre parcel and to perform all of the terms, conditions and promises set forth later in this
Agreement.
ONAH&F.W. "Ik UE10191113►.
1. Sale
Subject to existing easements and rights of way and subject to the terms and conditions,
mutual promises and covenants of this Agreement, the City of Fayetteville agrees to sell a
parcel of about 14.9 acres (hereinafter "Development Site") located at Morningside Drive in
the Fayetteville Industrial Park by warranty deer] to Pacific Vet Group -USA, Inc. for the
amount of TWO HiJNDRED TWENTY THREE THOUSAND FIVE Ht1NDRET) DOLLARS
($223,500.00). This Development Site of about 14.9 acres shall be as shown on the plat
attached at Exhibit A and as more particularly described below:
Lot Numbered Tcn (10), Fayetteville Industrial Park West, Fayetteville, Arkansas,
as per plat on file in the office of the Circuit Clerk and Fx-Officio Recorder of
Washington County, Arkansas, containing 14.90 acres, more or less.
2. Purchase
Subject to the terms and conditions, mutual promises and covenants of this Agreement,
Pacific Vet Group -USA, Inc. agrees to buy the Development Site for TWO HUNDRED
TWENTY THREE THOUSAND FIVE FIUNDRFD DOLLARS ($223,500.00) to be paid to
the City of Fayetteville on or before the Closing Date as follows:
Pacific Vet Group -USA, Inc. shall present its fully cxceuted 20 year Mortgage and Note in the
amount of TWO HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS
($223,500,00) in favor of the City of Fayetteville which will provide for a hventy year
amortization of this principal debt of $223,500.00 and an interest rate that shall be fixed for the
first five years at the current Federal Reserve Primary Credit Rate, plus one percent (1 %). This
interest rate shall be annually adjusted after the first five years to apply the Federal Reserve
1 of 5
Primary Credit Rate existing at each anniversary date, plus one percent (1%). The City agrees
to subordinate its first mortgage on the property to construction and permanent financing of the
improvements. Pacific Vet Group -USA, Inc, shall have the right to fully or partially repay the
balance due without penalty at any time,
3. Fulfill terms ofArkansas Ceonornic Development Commission
Pacific Vet Group -USA, Inc. agrees to fulfill all terms and conditions of the Arkansas
Economic Development Commission with respect to any programs for which it contracts to
participate.
4. Dei,elopmerttE;ivrr•otunentall'r•otection Goals
Pacific Vet Group -USA, Inc. agrees to comply with all zoning and land use requirements
imposed by the City in connection with the development of the property.
5. Closing Date and Place
Closing shall occur within _�_o days following the date this Agreement has been executed by
both parties. The Closing shall occur at 113 West Mountain Street, Fayetteville, Arkansas in a
room supplied by the City of Fayetteville.
6. Date of Possession
Possession of the Development Site shall be delivered to Pacific Vel Group -USA, Inc.
on the Closing date free of any tenancies or other third party possessory rights.
7. Title Insurance
The City of Fayetteville shall order a title commitment on the Development Site, as soon a
practicable following the frill execution of this Agreement, through a title insurance
company selected by the City and acceptable to Pacific Vet Group -USA, Inc. Ifthe report
on title, binder or commitment discloses any defects in title (other than liens or
encumbrances of definite or ascertainable amount which may be paid at closing), the City
shall have thirty (30) days from the date of Pacific Vet Group -USA, Inc. notice of such
defects to make a good faith effort to curt; such defects and to furnish a report showing
the defects cured or removed. if such defects are not cured within thirty (30) days,
Pacific Vet Group -USA, Inc. may terminate this agreement or may, at its election, take
title subject to any such defects. The cost of the title commitment and the cost of the
owner's title policy shall be borne by the City of Fayetteville. The cost of any lender's title
policy and extended owner's title insurance coverage shall be borne by Pacific Vet Group -
USA, Inc.
S. Deed and Other Documents
On the Closing date, the City of Fayetteville shall convey marketable and insurable title to
the premises by general warranty deed, free and clear of all liens, restrictions, and
encumbrances except as provided in this Agreement, subject only to current real estate
2 of 5
taxes, if any (to be apportioned between the parties) and existing easements, Pacific Vet
Group -USA, Inc. and the City of Fayetteville shall equally share the cost a reasonable
closing fee imposed by the closing agent employed by parties provided however that
Pacific Vet Group -USA, Inc. shall be responsible for any revenue stamps resulting from
this transaction and all recordings fees for the deed and other documents that need to be
filed.
9. Risk of Loss
Risk of loss as to the Development Site shall remain with the City of Fayetteville until the
Closing date.
10. Pa fe Vet Group- U.SR, litc.:vDae Drlrgence
Pacific Vet Group -USA, Inc. may enter upon the Development Site to conduct any
surveying, testing or inspection it deems necessary to ensure the Development Site will
be appropriate forthe construction and use for its facility. If Pacific Vet Group -USA, Inc.
discovers any problems that would adversely impact its development and use of the
Development Site for its facility, Pacific Vet Group -USA, Inc. shall notify the City which
is granted sixty (60) days to rernediate any problem. The City may also terminate this
Agreement without penalty rather then remediating any problem or issue discovered by
Pacific Vet Group -USA, Inc.
11. Large Scale Development Approval
Pacific Vet Group -USA, Inc, shall, at its sole cost and expense, prepare a Large Scale
Development plat of the Development Site and obtain any and all approvals necessary for
Pacific Vet Group -USA, Inc.'s intended use of the Development Site for its facility. The
City shall reasonably cooperate with Pacific Vet Group -USA, Inc. in Pacitic Vet Group -
USA, Inc. request for development approval of its facility, Pacific Vet Grorsp-USA, Inc.
must present its development proposal through the normal City }process and follow the
Unified Development Code requirements.
12. Notices
Notices required by this Agreement shall be in writing and shall be delivered to:
Pacific Vet Group -USA, Inc.
ATTN: Bill Davies, CEO
Pacific Vet Group
2134 Creek View Drive
Fayetteville, AR 72704
to:
City of Fayetteville
ATTN: Mayor's Office
113 W. Mountain Street
Fayetteville, AR 72701 72701-6083
or by FAX: (479) 966-4448
or by FAX (479) 575-8257.
3 of 5
13. Authority
Each of the undersigned individuals represent and warrant that they are authorized to enter
into this Agreement on behalf of their respective entities and that execution hereof will
bind the entities to this Agreement.
14. Counterparts
This Agreement may be executed in two or more counterparts, each of which shall be
deemed im original, but all of which taken together shall constitute one and the same
agreement.
1s, Facsimile
For purposes of executing this Agreement, a facsimile signature shall be as effective an as
actual signature.
16. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws and public
policies of the State of Arkansas.
17. Survival
The representations, warranties, and agreements of the parties contained herein shall survive
the closing date.
18. No Waivers
The waiver by either party hereto of any condition or the breach of any term, covenant or
conditions herein contained shall not be, deemed to be a waiver of any other condition or of
any subsequent breach of the same or of any other term, covenant or condition herein
contained.
19. Time of Essence
Time is of the essence in this Agreement.
20. Invalidity,
If for any reason any term or provision of this Agreement shall be declared void and
unenforceable by any court of law or equity, it shall only affect such particular term or
provision of this Agreement and the balance of this Agreement shall remain in full force
and effect and shall be binding upon the parties hereto.
4 of5
21. Cornplete Agreement
All understandings and agreements heretofore existing between the parties are merged into
Ws Agreement that alone fully and completely expresses their agreement. This Agreement
may be changed only in writing signed by both of the parties hereto and shall apply to and
bind the successors and assigns of each of the parties hereto and sliall not merge with the
deed delivered to Pacific Vet Group -USA, Inc at closing.
Date:_�/L 1
PACIFIC VET GROUP -USA, INC.
ARKANSAS
I'
By:
BILL DAVIE
CEO
Witness:
By:,,
Fed. I.D. No.: 2 6 — 2S2- f No
FAX No.. (479) 966-4448
Address: Pacific Vet Group -USA, Inc.
2134 Creels View Drive
Fayetteville, AR 72704
5 of 5
Date: �/)- -71/tj.
CITY OF FAYETTE'VILLE,
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I ENE D JOIt_
Mayor
ALLest:
By:
Sondra E. Smith, City Clerk
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February 11, 2013
Bill Davies
CEO
Pacific Vet Group
2134 Creek View Drive
Fayetteville, AR 72704
Dear Mr, Davies:
Recognizing Pacific Vet Group's contribution to our state and community, the Arkansas
Economic Development Commission (AFDC) and the City of Fayetteville are pleased to submit
the attached incentives proposal for your consideration.
Together, the state and city are committed to mitigating many of your site -related costs with a
package valued over $1 M. The AEDC will commit up to $570,000 in the farm of an upfront
cash grant to cover erosion control, earthwork, a detention basin with outfall structure, and
asphalt pavement at the site. The City, through in -kind services, will assist with constructing
culverts and storm drainage, entry drives, curb and gutters, and sidewalks around the site (an
estimated value of $200,000). They have also committed to a reducing the cost of the land by
$5,000 an acre (a $75,000 savings for 15 acres).
In addition the state can offer our Advantage Arkansas income tax credit (valued at $163,000)
and our Tax Back sales and use tax refund (value will depend on total investment in taxable
building materials, but could be as much as $1,2M for a $15M project).
We are excited about your company's success in Arkansas and hope to see your footprint grow
in Fayetteville. Please feel free to contact me directly at (501) 682-1260 or via email at
SC1ark@Arkansasedc.com if there is any additional information you need.
Sincerely,
i
Sarah Clark
Project Manager
Arkansas Economic Development Commission 900 W. Capital, Suite 400 Little Rock, Arkansas 72201 501.682.1121 Arkansasedc.com
ARKANSAS
A natural for business
CONFIDENTIAL
ARKANSAS ECONOMIC DEVELOPMENT COMMISSION (AEDC)
INCENTIVES PROPOSAL
for
Pacific Vet Group
February 21, 2022
All incentives offered are contingent upon Pacific Vet Group locating is new facility in
Fayetteville (Washington County), Arkansas. Incentives are based on the following project
assumptions. Any change in the project criteria will require a recalculation of the
incentives.
• 47 new full-time employees in Fayetteville
o Year 1: 18
o Year 2: 13
o Year 3: 4
o Year 4: 10
o Year 5: 2
• Average annual wage of $66,000 ($32/hour)
• Investment (estimate) of $5M in Phase 1; $12-15M in Phase II
Advantage Arkansas Program
The Advantage Arkansas Program is a job tax credit program for qualifying new and
expanding companies. In Washington County, the credits earned will be equal to 1% of the
net, new payroll for a period of five years with a minimum annual payroll of $125,000. In
addition, the average hourly wage of the new payroll generated must average $10.46 per
hour or greater. The company may apply the credit to their state income tax liability, not to
exceed 50% of the total income tax liability for a reporting period.
Employees must be taxpayers of Arkansas to qualify for the credit. The income tax credit
begins in the year in which the new employees are hired. Any unused portion of the credit
may be applied against the income tax for the succeeding nine years.
Based on payroll information provided by the company the income tax credits are
calculated as follows:
Annual Payroll of New Employees x Appropriate Percentage = Annual Financial Incentive
Year
Jobs
Annual Payroll Increase
Estimated Tax Credit
Year 1
18
$ 1,198,080*
$ 11,981
Year 2
31
$ 2,063,360
$ 20,634
Year 3
35
$ 2,329,600
$ 23,296
Year 4
45
$ 2,995,200
$ 29,952
Year 5
47
$ 3,128,320
$ 31,283
Total Estimated Benefits
*18 new jobs * $32/hour x 2,080 hours
Tax Back Program
$ 117,146
The Tax Back Program grants a refund of state and local sales and use taxes paid on the
purchases of the material used in the construction of a building or buildings or any addition,
modernization or improvement to a new or expanding eligible business. A sales and use tax
refund is also allowed for the purchases of taxable machinery or equipment associated with
the building or project.
Eligibility Requirements:
• Minimum investment of one -hundred thousand dollars ($100,000).
The business must sign an Advantage Arkansas agreement within twenty-four (24)
months of signing the Tax Back agreement.
2
A refund shall not be authorized for:
• Routine operating expenditures;
• The purchase of replacements of items previously purchased as part of a project
unless the items previously purchased will not enable the project to function as
originally intended;
• Licensed motor vehicles; or
• Expenditures for routine repair and maintenance that do not result in new
construction or expansion.
To qualify for the Tax Back Program, the company must submit a completed application
accompanied by a local endorsement resolution from the city, county or both which
authorizes the refund of its local taxes to the eligible company. The refund will not include
the sales tax dedicated to the Educational Adequacy Fund and the Conservation Tax Fund.
These two exceptions reduce the state refund by one percent (1%). Currently state sales tax
rate is six percent (6%) therefore the refund of state taxes will be based upon five percent
(5%) of the eligible taxable purchases. Currently the sales tax rate in Fayetteville, Arkansas
(including Washington County) is 3.25% of the eligible taxable purchases and the refund of
local taxes will be based on that rate.
If the company were to invest $15M in elegible, taxable items, , the sales and use tax refund
is estimated as follows:
Eligible Expenditures x Total Sales Tax (State & Local) - Refund Amount
$15,000,000 x 8.25% (5% + 3.25%) _ $1,237,500
Infrastructure
Based on the information provided by Pacific Vet Group, the Arkansas Economic
Development Commission is willing to commit $570,000 in Governor's Quick Action Closing
Funds to be used towards erosion control, earthwork, a detention basin with outfall
structure, and asphalt pavement at the company's potential new site in Fayetteville, AR.
To receive reimbursement for eligible expenditures, the company will be required to submit
invoices to the Arkansas Economic Development Commission. This funding is contingent
upon the creation of at least 47 full-time jobs within 5 years of the signing the grant
agreement. AEDC will require Pacific Vet Group to sign a grant agreement and a grant
reimbursement agreement that will have claw -backs in the event the terms of the
agreement are not met.
3
fFayetteville
Chamber of Commerce
February 7, 2013
Sarah Clark
Project Manager, Business Development
Arkansas Economic Development Commission
900 West Capitol, Suite 400
Little Rock, AR 72201
501-682-1260 (office)
501-580-0274 (cell)
Dear Sarah:
The philosophy of the City of Fayetteville and its citizenry has been one of building a quality of
place for our community. As such, Mayor Jordan, the City Council, and the Fayetteville
Chamber place the highest priority in investing in the infrastructure within the city. They look at
infrastructure such as excellent roads, schools, and amenities. We believe that by investing in
infrastructure, Fayetteville will become a desired location for businesses to prosper and for
residents to call home, The City of Fayetteville has invested in its infrastructure in the past,
current, and in the future.
1) Citizens of Fayetteville approved a tax increase in 2011 to raise funds to expand and
renovate its Fayetteville High School. This is a $94 million project divided in 2 phases.
Phase 1 is already completed and Phase 2 will be completed by 2014. Phase 1 included
an 850-seat performing arts center; a 2,200-seat sports arena with two practice gyms and
locker rooms; and classrooms for drama, band, orchestra, and choir. Also included is a
student cafeteria that seats 600 students.
2) Citizens of Fayetteville, together with the rest of the state, approved a half cent sales tax
in November, 2012 (for the next 10 years), to raise funds for infrastructure. Specifically,
northwest Arkansas where Fayetteville is located, will see Interstate 540 expand from 4-
to 6-lanes from Fayetteville to Bella Vista. This year, five out of 17, I-540 projects will
get underway; two in Benton County and three in Washington County. All 17 projects
will start in the next 5 years and all are scheduled to be finished in the next 10 years. In
addition to these highway projects, the City of Fayetteville will enjoy $12 million of turn
back monies from this tax to improve city streets and roads over the next 10 years.
3) Within the Fayetteville Commerce District where the site is located, the City of
Fayetteville has made improvements to it since last year. It added 29 public street lights
to improve night lighting there. This year, the City will be building and connecting
sidewalks in the district and putting up additional way -finding signs to help
truckers/visitors find their way to the district. It is also improving the turn points on
123 West Mountain' P 0 Box 4216 ' Fayettevnde AR 72762 4216' TEL 479. 571 1710 ' FAX 479. 1791 ' www.fayetievillear.com
Page 2/PVG
Armstrong and Momingside with 151" Street. Road improvements are currently
underway on Hwy 265 and Cato Springs Road to help with accessing to interstate
highways. Fifteenth Street and Momingside/City Lake Road are in the work plans for
improvement as well. This improvement will cost the City more than $100,000.
1) Apart from schools and roads, the City of Fayetteville is known for its trails, parks, arts,
entertainment, and cultural offerings, thus making it a desired location for families and
workers to live and play. The City is able to recruit and retain local and outside talents.
The City builds about 3 miles of trail each year. Beginning this year, it will increase
spending on building sidewalks within the city, starting in subdivisions located close by
to schools.
2) The University of Arkansas is a great asset to companies like PVG for its research and
development capabilities and the workforce it produces. The U of A has seen an increase
of student enrollment of 1,500 students a year for the past three years. This trend is
expected to continue for the next few more years. This growth showed a desire from
students to seek training at this facility over others in the nation. The university, since
2001, has invested more than $1 billion in capital expenditures. Currently, it has $300
million worth of projects happening on campus with many more in different stages of
planning.
3) As a result of all these work, the Fayetteville MSA has enjoyed a net positive population
growth and an unemployment rate below that of the nation. The Cost of Living Index for
2012 just came out —Fayetteville MSA is ranked #6 as the least expensive MSA amongst
all the MSAs under study (307). Fayetteville MSA is the only MSA from Arkansas that
made that list and there was no MSA from Missouri that showed up in the top 10
ranking. This is a publication by the Council of Community and Economic Research.
We consider Pacific Vet Group (PVG) a home gown company because of its UA origins and we
are excited and proud of its growth and plans for the future. We are confident that Pacific Vet
Group will agree that its expansion should be back in Fayetteville where PVG will have access to
intrinsic resources that it may not be able to find elsewhere. Fayetteville wishes to be PVG's
partner to help it grow, As such, the City will work with PVG to expedite their expansion
process and put its project on fast track. The Fayetteville Chamber, being the economic
developer for the city, will be the contact for this project.
In addition, the City is pleased to offer a price reduction of $5,000 off the asking price of
$20,000 per acre for the 14.9 acres of land owned by the City in the Fayetteville Commerce
District. This represents a $74,500 direct benefit to PVG. Since this is a green site, the City will
assist with on -site development in terms of public right of way and to facilitate access in the
areas of culverts & storm drainage, concrete pavements such as entry drives, asphalt pavement,
curbs & gutters, and sidewalk. City assistance will be limited to public areas only as regulations
do not permit city to work on private property,
Page 31PVG
This offer is construed based on PVG's expansion plan presented to us. PVG's plan calls for
moving existing and new jobs to a total of at least 60 jobs with an average annual salary of
S65,000 within 5 years and that construction shall begin within 12 month upon acceptance of this
offer. Furthermore, PVC will move into the new location once construction is completed.
We look forward to working with you and PVO on this exciting project.
Yours truly,
I �
S eve C ark
President & CEO
I ii, le Departmental Correspondence
RKANSAS
Kit Williams
City Atlorney
Jasun B. Kelley
TO: Mayor Jordan AssivaHl City AtIorney
Don Marr, Chief of Staff
Paul Becker, Finance Director
David Jurgens, Utilities Director
FROM: Kit Williams, City Attorney
DATE: May 9, 2013
RE: Sale of Water and Sewer land in Industrial Park to new industry
I believe that the City of Fayetteville can sell the necessary acreage to the
proposed new industry for $15,000.00 per acre as the City's required (by the
Arkansas Economic Development Commission) support for this economic
development project. Although this is $5,000.00 less than the normal asking price
for our other available Industrial Park property, the long term economic benefits to
our City, Citizens and existing businesses from this project with its quality, high
paying jobs justifies this proposed reduced price offering. I do recommend that',the
Water and Sewer Fund that currently owns this land be compensated for this offer
to sell at what might be below the value of the land (in a trade for other city land)
it acquired about a decade ago.
We need to begin immediately the Public Notification process required by
Section 34.27 of the Fayetteville Code (copy attached) for the sale of City
property. We simply need to mail notices to adjoining landowners, post signs on
the property and publish a notice in the paper at least 15 days before the City
Council meeting in which a Resolution for the sale is considered by the City
Council. This is the same process used in the sale of the 2 acres of the old Tyson
factory site. Jeremy Pate did that notification and therefore would be very "up to
speed" on what is needed.
LAND SALE AGREEMENT
This Land Sale Agreement is made and entered into by and between the City of Fayetteville,
Arkansas, a municipal corporation of the State of Arkansas (hereinafter "City" or
"Fayetteville") and Pacific Vet Group -USA, Inc.
The City of Fayetteville agrees to sell a parcel of about 14.9 acres on Morningside Drive in
the Fayetteville Industrial Park to Pacific Vet Group -USA, Inc. for TWO HUNDRED
TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) and Inc.
Pacific Vet Group -USA, Inc.'s performance of all of the terms, conditions and promises set
forth later in this Agreement.
Pacific Vet Group -USA, Inc. agrees to pay to the City of Fayetteville TWO HUNDRED
TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) for this 14.9
acre parcel and to perform all of the terms, conditions and promises set forth later in this
Agreement.
a m e \ [Hill mew
Sale
Subject to existing easements and rights of way and subject to the terms and conditions,
mutual promises and covenants of this Agreement, the City of Fayetteville agrees to sell a
parcel of about 14.9 acres (hereinafter "Development Site") located at Morningside Drive in
the Fayetteville Industrial Park by warranty deed to Pacific Vet Group -USA, Inc. for the
amount of TWO HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS
($223,500.00). This Development Site of about 14.9 acres shall be as shown on the plat
attached at Exhibit A and as more particularly described below:
Lot Numbered Ten (10), Fayetteville Industrial Park West, Fayetteville, Arkansas,
as per plat on file in the office of the Circuit Clerk and Ex-Officio Recorder of
Washington County, Arkansas, containing 14.90 acres, more or less.
2. Purchase
Subject to the terms and conditions, mutual promises and covenants of this Agreement,
Pacific Vet Group -USA, Inc. agrees to buy the Development Site for TWO HUNDRED
TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) to be paid to
the City of Fayetteville on or before the Closing Date as follows:
Pacific Vet Group -USA, Inc. shall present its fully executed 20 year Mortgage and Note in the
amount of TWO HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS
($223,500.00) in favor of the City of Fayetteville which will provide for a twenty year
amortization of this principal debt of $223,500.00 and an inleresl rate that shall be fixed for the
first five years at the current Federal Reserve Primary Credit Rate, plus one percent (1%). This
interest rate shall be annually adjusted after the first five years to apply the Federal Reserve
1 of 5
Primary Credit Rate existing at each anniversary date, plus one percent (1%). The City agrees
to subordinate its first mortgage on the property to construction and permanent financing of the
improvements. Pacific Vet Group -USA, Inc. shall have the right to fully or partially repay the
balance due without penalty at any time.
3. Fulfill terms of Arkansas Economic Development Commission
Pacific Vet Group -USA, Inc. agrees to fulfill all terms and conditions of the Arkansas
Economic Development Commission with respect to any programs for which it contracts to
participate.
4. Development Environmental Protection Goals
Pacific Vet Group -USA, Inc. agrees to comply with all zoning and land use requirements
imposed by the City in connection with the development of the property.
5. Closing Date and Place
Closing shall occur within days following the date this Agreement has been executed by
both parties. The Closing shall occur at 113 West Mountain Street, Fayetteville, Arkansas in a
room supplied by the City of Fayetteville.
6. Date of Possession
Possession of the Development Site shall be delivered to Pacific Vet Group -USA, Inc.
on the Closing date free of any tenancies or other third party possessory rights.
7. Title Insurance
The City of Fayetteville shall order a title commitment on the Development Site, as soon a
practicable following the full execution of this Agreement, through a title insurance
company selected by the City and acceptable to Pacific Vet Group -USA, Inc. If the report
on title, binder or commitment discloses any defects in title (other than liens or
encumbrances of a definite or ascertainable amount which maybe paid at closing), the City
shall have thirty (30) days from the date of Pacific Vet Group -USA, Inc. notice of such
defects to make a good faith effort to cure such defects and to furnish a report showing
the defects cured or removed. If such defects are not cured within thirty (30) days,
Pacific Vet Group -USA, [nc. may terminate this agreement or may, at its election, take
titld subject to any such defects. The cost of the title commitment and the cost of the
owner's title policy shall be borne by the City of Fayetteville. The cost of any lender's title
policy and extended owner's title insurance coverage shall be borne by Pacific Vet Group -
USA, Inc.
S. Deed and Other Documents
On the Closing date, the City of Fayetteville shall convey marketable and insurable title to
the premises by general warranty deed, free and clear of all liens, restrictions, and
encumbrances except as provided in this Agreement, subject only to current real estate
2 of 5
taxes, if any (to be apportioned between the parties) and existing easements. Pacific Vet
Group -USA, Inc. and the City of Fayetteville shall equally share the cost a reasonable
closing fee imposed by the closing agent employed by parties provided however that
Pacific Vet Group -USA, Inc. shall be responsible for any revenue stamps resulting from
this transaction and all recordings fees for the deed and other documents that need to be
filed.
9. Risk of Loss
Risk of loss as to the Development Site shall remain with the City of Fayetteville until the
Closing date.
10. Pacific Yet Group -USA, lite.'sDue Diligence
Pacific Vet Group -USA, Inc. may enter upon the Development Site to conduct any
surveying, testing or inspection it deems necessary to ensure the Development Site will
be appropriate forthe construction and use for its facility. If Pacific Vet Group -USA, Inc.
discovers any problems that would adversely impact its development and use of the
Development Site for its facility, Pacific Vet Group -USA, Inc. shall notify the City which
is granted sixty (60) days to remediate any problem. The City may also terminate this
Agreement without penalty rather then remediating any problem or issue discovered by
Pacific Vet Group -USA, Inc.
It. Large Scale Development Approval
Pacific Vet Group -USA, Inc. shalt, at its sole cost and expense, prepare a Large Scale
Development plat of the Development Site and obtain any and all approvals necessary for
Pacific Vet Group -USA, Inc.'s intended use of the Development Site for its facility. The
City shall reasonably cooperate with Pacific Vet Group -USA, Inc. in Pacific Vet Group -
USA, Inc. request for development approval of its facility. Pacific Vet Group -USA, Inc.
must present its development proposal through the normal City process and follow the
Unified Development Code requirements.
12. Notices
Notices required by this Agreement shall be in writing and shall be delivered to:
Pacific Vet Group -USA, Inc.
ATI'N: Bill Davies, CEO
Pacific Vet Group
2134 Creek View Drive
Fayetteville, AR 72704 or by FAX: (479) 966-4448
to:
City of Fayetteville
ATTN: Mayor's Office
113 W. Mountain Street
Fayetteville, AR 72701 72701-6083 or by FAX (479) 575-8257.
3 of 5
13. Authority
Each of the undersigned individuals represent and warrant that they are authorized to enter
into this Agreement on behalf of their respective entities and that execution hereof will
bind the entities to this Agreement.
14. Counterparts
This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which taken together shall constitute one and the same
agreement.
15. Facsimile
For purposes of executing this Agreement, a facsimile signature shall be as effective an as
actual signature.
16. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws and public
policies of the State of Arkansas.
17. Survival
The representations, warranties, and agreements of the parties contained herein shall survive
the closing date.
18. No Waivers
The waiver by either party hereto of any condition or the breach of any term, covenant or
conditions herein contained shall not be- deemed to be a waiver of any other condition or of
any subsequent breach of the same or of any other term, covenant or condition herein
contained,
19. Time of Essence
Time is of the essence in this Agreement.
20. Invalidity
If for any reason any term or provision of this Agreement shall be declared void and
unenforceable by any court of law or equity, it shall only affect such particular term or
provision of this Agreement and the balance of this Agreement shall remain in full force
and effect and shall be binding upon the parties hereto.
4 of
21. Complete Agreement
All understandings and agreements heretofore existing between the parties are merged into
this Agreement that alone fully and completely expresses their agreement. This Agreement
may be changed only in writing signed by both of the parties hereto and shall apply to and
bind the successors and assigns of each of the parties hereto and shall not merge with the
deed delivered to Pacific Vet Group -USA, Inc at closing.
Date:
PACIFIC VET GROUP -USA, INC.
ARKANSAS
By:
BILL DAVIES
CEO
Witness:
By: _
Fed. I.D. No.:
FAX No.: (479) 966-4448
Address: Pacific Vet Group -USA, Inc.
2134 Creek View Drive
Fayetteville, AR 72704
5 of-5
Date:
CITY OF
By:
LIONELD JORDAN
Mayor
Attest:
FAYETTEVILLE,
By:
Sondra E Smith, City Clerk
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This Land Sale Agreement is made and entered into by and between the City of
Fayetteville, Arkansas, a municipal corporation of the State of Arkansas (hereinafter
"City" or "Fayetteville") and Pacific Vet Group -USA, Inc.
The City of Fayetteville agrees to sell a parcel of about 14.9 acres on Morningside
Drive in the Fayetteville Industrial Park to Pacific Vet Group -USA, Inc. for TWO
HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00)
and Inc. Pacific Vet Group -USA, Inc.'s performance of all of the terms, conditions and
promises set forth later in this Agreement.
Pacific Vet Group -USA, Inc. agrees to pay to the City of Fayetteville TWO
HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) for
this 14.9 acre parcel and to perform all of the terms, conditions and promises set forth
later in this Agreement.
TERMS AND CONDITIONS
Sale
Subject to existing easements and rights of way and subject to the terms and conditions,
mutual promises and covenants of this Agreement, the City of Fayetteville agrees to sell a
parcel of about 14.9 acres (hereinafter "Development Site") located at Morningside Drive in
the Fayetteville Industrial Park by warranty deed to Pacific Vet Group -USA, Inc. for the
amount of TWO HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS
($223,500.00). This Development Site of about 14.9 acres shall be as shown on the plat
attached at Exhibit A and as more particularly described below:
Lot Numbered Ten (10), Fayetteville Industrial Park West, Fayetteville,
Arkansas, as per plat on file in the office of the Circuit Clerk and Ex-Officio
Recorder of Washington County, Arkansas, containing 14.90 acres, more or
less.
2. Purchase
Subject to the terms and conditions, mutual promises and covenants of this Agreement,
Pacific Vet Group -USA, Inc. agrees to buy the Development Site for TWO HUNDRED
TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) to be paid to the
City of Fayetteville on or before the Closing Date as follows:
Pacific Vet Group -USA, Inc. shall present its fully executed 20 year Mortgage and Note in
the amount of TWO HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED
DOLLARS ($223,500.00) in favor of the City of Fayetteville which will include a
guarantee to fulfill all terms and conditions of the Arkansas Economic Development
Commission and provide for a twenty year amortization of this principal debt of
$223,500.00 and an interest rate that shall be fixed for the first five years at the current
Federal Reserve Primary Credit Rate, plus one percent (1%). This interest rate shall be
annually adjusted after the first five years to apply the Federal Reserve Primary Credit Rate
existing at each anniversary date, plus one percent (1%). Pacific Vet Group -USA, Inc.
shall have the right to fully or partially repay the balance due without penalty at any time.
3. Fulfill terms ofArkansas Economic Development Commission.
Pacific Vet Group -USA, Inc. agrees to fulfill all terms and conditions of the Arkansas
Economic Development Commission grant or loan. Failure to fulfill all these terms and
conditions will be both a breach of this Agreement and the underlying Mortgage which shall give
the City of Fayetteville the right to foreclosure upon sixty (60) days notice to Pacific Vet Group,
Inc. and the failure of Pacific Vet Group -USA, Inc. to cure its defects.
4. Closing Date and Place
Closing shall occur within days following the date this Agreement has been executed
by both parties. The Closing shall occur at 113 West Mountain Street, Fayetteville, Arkansas in a
room supplied by the City of Fayetteville.
5. Date of Possession
Possession of the Development Site shall be delivered to Pacific Vet Group -USA,
Inc. on the Closing date free of any tenancies or other third party possessory rights.
6. Title Insurance
The City of Fayetteville shall order a title commitment on the Development Site, as
soon a practicable following the full execution of this Agreement, through a title insurance
company selected by the City and acceptable to Pacific Vet Group -USA, Inc. If the report on
title, binder or commitment discloses any defects in title (other than liens or encumbrances of
a definite or ascertainable amount which may be paid at closing), the City shall have thirty
(30) days from the date of Pacific Vet Group -USA, Inc. notice of such defects to make a good
faith effort to cure such defects and to furnish a report showing the defects cured or
removed. If such defects are not cured within thirty (30) days, Pacific Vet Group -USA,
Inc. may terminate this agreement or may, at its election, take title subject to any such
defects. The cost of the title commitment and the cost of the owner's title policy shall be
borne by the City of Fayetteville. The cost of any lender's title policy and extended owner's
title insurance coverage shall be borne by Pacific Vet Group -USA, Inc.
7. Deed and Other Documents
On the Closing date, the City of Fayetteville shall convey marketable and insurable
title to the premises by general warranty deed, free and clear of all liens, restrictions, and
encumbrances except as provided in this Agreement, subject only to current real estate
taxes, if any (to be apportioned between the parties) and existing easements. Pacific Vet
Group -USA, Inc. and the City of Fayetteville shall equally share the cost a reasonable
closing fee imposed by the closing agent employed by parties provided however that Pacific
Vet Group -USA, Inc. shall be responsible for any revenue stamps resulting from this
transaction and all recordings fees for the deed and other documents that need to be filed.
8. Risk of Loss
Risk of loss as to the Development Site shall remain with the City of Fayetteville until
the Closing date.
9. Pac if c vet Group -USA, Inc.'s Due Diligence
Pacific Vet Group -USA, Inc. may enter upon the Development Site to conduct any
surveying, testing or inspection it deems necessary to ensure the Development Site will
be appropriate for the construction and use for its facility. If Pacific Vet Group -USA, Inc.
discovers any problems that would adversely impact its development and use of the
Development Site for its facility, Pacific Vet Group -USA, Inc. shall notify the City which is
granted sixty (60) days to remediate any problem. The City may also terminate this
Agreement without penalty rather then remediating any problem or issue discovered by
Pacific Vet Group -USA, Inc.
10. Large Scale Development Approval
Pacific Vet Group -USA, Inc. shall, at its sole cost and expense, prepare a Large
Scale Development plat of the Development Site and obtain any and all approvals necessary
for Pacific Vet Group -USA, Inc.'s intended use of the Development Site for its facility. The
City shall reasonably cooperate with Pacific Vet Group -USA, Inc. in Pacific Vet Group -
USA, Inc. request for development approval of its facility. Pacific Vet Group -USA, Inc. must
present its development proposal through the normal City process and follow the Unified
Development Code requirements.
11. Notices
Notices required by this Agreement shall be in writing and shall be delivered to:
Pacific Vet Group -USA, Inc.
ATTN: Bill Davies, CEO
Pacific Vet Group
2134 Creek View Drive
Fayetteville, AR 72704 or by FAX: (479) 966-4448
to:
3
City of Fayetteville
ATTN: Mayor's Office
113 W. Mountain Street
Fayetteville, AR 72701 72701-6083 or by FAX (479) 575-8257.
12. Authority
Each of the undersigned individuals represent and warrant that they are authorized to
enter into this Agreement on behalf of their respective entities and that execution hereof will
bind the entities to this Agreement.
13. Counterparts
This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which taken together shall constitute one and the same
agreement.
14. Facsimile
For purposes of executing this Agreement, a facsimile signature shall be as effective
an as actual signature.
15. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws and
public policies of the State of Arkansas.
16. Survival
The representations, warranties, and agreements of the parties contained herein shall
survive the closing date.
17. No Waivers
The waiver by either party hereto of any condition or the breach of any term, covenant
or conditions herein contained shall not be- deemed to be a waiver of any other condition or
of any subsequent breach of the same or of any other term, covenant or condition herein
contained.
18. Time of Essence
Time is of the essence in this Agreement.
4
19. .Invalidity
If for any reason any term or provision of this Agreement shall be declared void and
unenforceable by any court of law or equity, it shall only affect such particular term or
provision of this Agreement and the balance of this Agreement shall remain in full force and
effect and shall be binding upon the parties hereto.
20. Complete Agreement
All understandings and agreements heretofore existing between the parties are merged
into this Agreement that alone fully and completely expresses their agreement. This
Agreement may be changed only in writing signed by both of the parties hereto and shall
apply to and bind the successors and assigns of each of the parties hereto and shall not merge
with the deed delivered to Pacific Vet Group -USA, Inc at closing.
Date:
PACIFIC VET GROUP -USA, INC.
By:
BILL DAVIES
Title: CEO
Witness:
By:
Fed. I.D. No.:
FAX No.. (479) 966-4448
Address: Pacific Vet Group -USA, Inc.
2134 Creek View Drive
Fayetteville, AR 72704
Date:
CITY OF FAYETTEVILLE, ARKANSAS
M.
LIONELD JORDAN
Mayor
ATTEST:
By: .
Sondra E. Smith, City Clerk
5
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City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
NIA- Mayor's Approval
City Council Meeting Date
Agenda Items Only
Paet�� �0 C�o
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David Jurgens Utilities Utilities
Submitted By Division Department
Action Required:
Approving a contract amendment with Pacific Vet Group -USA (PVG) increasing the time within which the Closing
shall occur from 60 days to 90 days following the date the Land Sale Agreement had been executed by both parties,
or no later than September 25, 2013.
$ _ Miscellaneous
Cost of this request Category / Project Budget Program Category / Project Name
Transfers Out
Account Number Funds Used to Date Program / Project Category Name
General
Project Number Remaining Balance Fund Name
Budgeted Item I M I
Budget Adjustment Attached
Dat
Date
Finance and Internal Services Director — _— Date
Previous Ordinance or Resolution # ( 143-13
Original Contract Date: 6/18/2013
Original Contract Number:
Received in City t
Clerk's Office (�tJ4-_
Date
Received in EN ERE
�al f Mayor's Office 2 r
�
Date
Comments:
Revised January 15, 2009
r \
Zaye glace
To:
Thru:
From:
Date:
Subject:
Fayetteville City Council
Mayor Lioneld Jordan
CONTRACT REVIEW MEMO
MAYOR'S APPROVAL
THE CITY OF FAYETTEVILLE. ARKANSAS
Don Marr, Chief of Staff
David Jurgens, Utilities Director
August 16, 2013
Amendment to Sale Contract with Pacific Vet Group -USA (PVG) Extending Closing Date
RECOMMENDATION
City Staff recommends approving a contract amendment with Pacific Vet Group -USA (PVG) increasing the
time within which the Closing shall occur from 60 days to 90 days following the date the Land Sale Agreement
had been executed by both parties, or no later than September 25, 2013.
BACKGROUND
The City of Fayetteville and PVG executed a sale contract approved by the City Council on June 18.2013, to
sell approximately 14.9 acres of land owned by the City of Fayetteville water and sewer utility on Morningside
Drive in the Industrial Park. Work related to the sale is underway, but PVG has requested a thirty day extension
to the time frame to close on the property.
DISCUSSION
Work required to execute the sale is underway by both parties, but PVG has requested a thirty day extension to
the time frame to close on the property. This amendment increases the time within which the Closing shall
occur from 60 days to 90 days following the date the Land Sale Agreement had been executed by both parties,
or no later than September 25, 2013. All other terms and conditions contained in the Land Sale Agreement shall
remain in full force and effect.
BUDGET IMPACT
No impact.
PVG Land Sale Amend Morningside CCMemo Aug13
ADDENDUM TO LAND SALE AGREEMENT
THIS ADDENDUM TO LAND SALE AGREEMENT is made and entered into by and between the
City of Fayetteville, Arkansas, a municipal corporation of one State of Arkansas (hereinafter "City") or
("Fayetteville") and Pacific Vet Group -USA, Inc.
Section 5 of the Land Sale Agreement is hereby amended by increasing the time within which the
Closing shall occur from 60 days to 90 days following the date the Land Sale Agreement had been
executed by both parties, or no later than September 25, 2013.
All other terms and conditions contained in the Land Sale Agreement shall remain in full force and
effect.
Date: A
PACIFIC VET GROUP -USA, INC.
By: Wj1,e M plrlCS-
WILLIAM DAVIES
CEO
Date: 9/0� � I a
CITY O AYET LE, ARKANSAS
r �.
B
LD JO
Mayor
Attest:
By:&AUtA.,
Sondra E. Smith, Ci lerk
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