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HomeMy WebLinkAbout199-13 RESOLUTIONRESOLUTION NO. 199-13 A RESOLUTION TO APPROVE THE THIRD AMENDMENT TO LAND SALE AGREEMENT WITH KUM & GO, L.C. TO EXTEND THE CLOSING DATE TO NO LATER THAN FEBRUARY 12, 2014 AND TO AGREE TO EQUALLY SHARE THE COSTS OF A NEW TRAFFIC SIGNAL WHEREAS, the City of Fayetteville agreed to sell and Kum & Go, L.C. agreed to buy a lot of slightly under two acres for $1,155,001.00 pursuant to the First Amendment to Land Sale Agreement approved by the City Council by Resolution No. 26-13 on February 5, 2013; and WHEREAS, Kum & Go, L.C. and the City agreed to cost share 50150 the design and construction costs for the agreed upon new street from the intersection of Happy Hollow and Huntsville to Ray Avenue and agreed that the Closing Date would be in early December at the option of Kum & Go, L.C.; and WHEREAS, the City requested and Kum & Go, L.C. agreed to extend the period allowed for the demolition of the old Tyson factory for about an additional two and a half months to enable the City to sell the building for salvage for a substantial savings for our taxpayers; and WHEREAS, Kum & Go, L.C. has now requested that the City agree to extend the Closing Date to February 12, 2014 (which is less of an extension than Kum & Go, L.C. granted the City for its demotion period); and WHEREAS, Kum & Go, L.C. has requested that the City agree to a further 50150 cost share for any expenses related to the new traffic signal needed for intersection of Happy Hollow and Huntsville which accesses both City and Kum & Go, L.C. property. 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 Third Amendment to the Land Sales Agreement attached to this Resolution and authorizes Mayor Jordan to sign this amended Agreement. In PASSED and APPROVED this 17'h day of September 2013. ATTEST: By: A --, NNA i C yl,. - a SONDRA E. SMITH, City G�s�llll11li1/I G\S Y 0; •SG''. e �-J FAYETTEVILLE>' e . m .y, City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 9/17/2013 City Council Meeting Date Agenda Items Only Kit Williams City Attorney City Attorney Submitted By Division Department ng $0 $ Cost of this request Category / Project Budget Program Category / Project Name Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached "( .J' i3 Previous Ordinance or Resolution # Department Director Date 4 q- 3- ,3 Ci ttorney Date Finance and Internal Services Director *ate lls,tll-1 lJ Chief of Stiff ,�/3 1 Date Original Contract Date: Original Contract Number: -l0--I- 1 j i i i RCVD Received in City] Clerk's Office ±Wi I Received in 9 Mayor's Office A3 Revised January 15, 2009 Departmental Correspondence RKANSAS Kit Williams City Attorney Jason B. Kelley Assistant City Attorney TO: Mayor Jordan City Council CC: Don Marr, Chief of Staff Paul Becker, Finance Director David Jurgens, Utilities Director Jeremy Pate, Development Services Dig FROM: Kit Williams, City Attorney (1 DATE: September 4, 2013 RE: Third Amendment to Land Sale Agreement Needed Kum & Go, would like to extend the Closing Date from what the contract allows. The Closing Date was initially allowed to be 180 days from the date of the contract (February 5, 2013), plus two optional extensions of 60 days each. This would be approximately 10 months total which would mean the Closing Date would have to occur by about December 5, 2013. As you remember, Kum & Go accommodated our request to extend the time for demolition of the Tyson Factory in the Second Amendment to the Land Sale Agreement for about 2 1/2months so we could sell the building for scrap prior to demolishing the foundation. Thus, it would certainly be reasonable to accommodate Kum & Go now to move the required date for the Closing until February 2014. Although relatively minor, this change to the contract must be approved by the City Council. I would suggest that we include in this Third Amendment To Land Sale Agreement a further 50/50 cost share agreement for the replacement of the stop light if approved by the Arkansas Highway and Transportation Department. We should soon receive the Department's response to this request and could then estimate cost. I propose the following sentence be added to paragraph 4: "Kum & Go, L.C. and the City agree to cost share 50/50 (both to pay equal amounts) of the design, purchase, installation and construction expenses to install a new traffic signal at the intersection of Happy Hollow and Huntsville Road because of the construction of the street entering the City's land at this intersection, which street also provides access to Kum & Go's business." I am recommending this 50/50 cost share for any such necessary traffic signal improvement pursuant to § 166.04 Required Infrastructure Improvements -Development in City Limits, specifically § 166.04 (B)(3) and § 155.06 (C)(1) of the Unified Development Code. These code sections (as well as the United States Constitution) limits what the City (or any government) can demand in the form of city infrastructure improvements to "the 'rough proportionality' of the impact of the development upon the city's infrastructure...." The City will maintain ownership of the majority of the parcel served by the traffic signal. The City's land includes a commercial lot comparably sized to Kum & Go's lot whose primary access will also be through this signalized intersection. It is also anticipated the existing residents in the Ray Avenue neighborhood will take advantage of the new signalized intersection especially during the morning rush hour. Therefore, in fairness and for constitutional reasons, the City of Fayetteville ought to shoulder an equal share of the costs for this new traffic signal. 2 CONCLUSION Attached is a proposed Third Amendment to the Land Sale Agreement which: (1) Extends the Closing date to as late as February 12, 2014; and (2) Agrees to the 50/50 cost share with Kum & Go, L.C. for the new traffic signal. 3 Fayetteville Code of Ordinances based on the rough proportion lity (c) Water, sewer, or street frontage. Any lot and rational nexus of the impactl of that is created shall have adequate the project. street frontage or street access that meets the minimum requirements of the (iii) Dedications. The City Cou cil zoning code, and access to public water accepts all streets and all ys and sewer as required by city and state located in Fayetteville that have code. If a lot split would create or been previously approved and exacerbate a nonconforming situation accepted as dedications by the (such as cutting off a lot from public Fayetteville Planning water, sewer, street frontage, or street Commission/Subdivision access), the lot split may not be filed of Committee. The City Council record until the required easement is confirms the acceptance of all such dedicated and/or the infrastructure is streets and alleys dedicated I by first constructed to City specifications, or developers/owners to the city which a variance or waiver is granted by the have been approved by the Planning Commission. Fayetteville Planning Commission/Subdivision (d) Parkland dedication. Parks fees shall be Committee. assessed for each new residential unit that is constructed on the additional (b) Monuments and lot stakes. The lot(s) in accordance with the parkland surveyor shall cause, preserve, and/or dedication requirements outlined in replace monuments and/or lot stapes Fayetteville Unified Development Code marking the corners of a parcel to be ,set Chapter 166. Said fees shall be paid in accordance with Section 3.2, general prior to issuance of a building permit for procedures, of the Arkansas Minimum construction on the new lot. Standards for Property Boundary Surveys and Plats. (3) Preliminary/Final/Concurrent Plat, Large Scale Development, Large or Small Site (c) Streets. Improvement Plan. (i) On -site. Widening the street (a) Dedication of right-of-way. adjacent to the project frontage and construction of all interior streets to (i) On -site. Sufficient right-of-way meet Master Street Plan standards. dedication, to bring those streets Street grading, base, and paving which the Master Street Plan shows according to existing city standards to abut or intersect the property and and specifications as adopted jb�L new streets proposed interior to the the City Council. property, into conformance with the right-of-way requirements of the (ii) Off -site. Street widening and/or new Master Street Plan for said streets, street construction off -site may be shall be approved by the Planning required to address traffic impacts Commission or Subdivision based on the rough proportion and Committee; provided, the Planning rational nexus of the impacts of �he Commission or Subdivision project. Street grading, base, and Committee may recommend a paving according to existing city lesser dedication in the event of standards and specifications as undue hardship or practical adopted bay City Council. difficulties. Such lesser dedication shall be subject to approval by the (iii) Private street name signs. Where a City Council. structure is addressed on a private street or drive, the developer !or a. Exemption. Small Site property owner(s) shall be requited Improvement Plan applications to install, maintain, repair and are exempt from this replace all private street name requirement. signs. Any private street name sign existing at the time of passage' of (ii) Off -site. Off -site right-of-way this ordinance shall be maintained, dedication may be required as repaired and replaced as required needed to construct off -site street by this section. Signs shall meet the improvements that are required standards of the Manual on Uniform CD166:18 OA4" 1'+1 .40.- 0"+11 /" evt / r►, p* `'1- 6 � Coc� loprt 1 Ns Fayetteville Code of Ordinances City Council by an owner of record of the property in question or an alderman on behalf of (B) Appeals to the Board of Adjustment. The a resident of the city: following interpretations and decisions may, be appealed by an owner of record of the property in (1) Zoning and Development Administrator. question or an alderman on behalf of a resident of the city to the Board of Adjustment: (a) Design Overlay District requirements. The decision of the Zoning and (1) Zoning and Development Administrator - Development Administrator not to Zoning. An interpretation or decision of ',the exempt property from the Design Zoning and Development Administrator Overlay District requirements as allowed regarding zoning matters may appeal. in §161.28(G). (2) Building Safety Division Director - Airport (b) Development Matters. An interpretation Zone. Any person aggrieved, or any or decision of the Zoning and taxpayer affected by any decision of the Development Administrator regarding Building Safety Division Director, made; in development matters, including the administration of Airport Zone, Chapter subdivisions, large scale developments, 165, may appeal. parking and loading, and outdoor lighting may appeal. (C) Appeals to the Planning Commission. (2) City Engineer. (1) Required dedications and improvements. !, (a) Stormwater, Drainage, and Erosion (a) An owner or developer who is aggrieved Control requirements. The decision of by the requirements of the Unified the City Engineer to issue a violation Development Code for land, right-of-vyay notice related to these requirements. or easement dedications, construction of on -site or off -site improvements, ,or (b) Development Matters. An interpretation payments in lieu of any dedication' or or decision of the City Engineer im OLI]76u n pY�o „a+h regarding development matters, proportionality" of the impacts of including grading, drainage, water and velopment upon the cily's L::c sanitary sewer systems, and storm tur drainage systems may appeal. quirement to the Planning Commission as a part of the submission (c) Floodplain regulations. The decision of of the preliminary plat, large scale the Floodplain Administrator, provided development, subdivision, building that the City Council shall hear and permit, lot split, development permit,) or decide an appeal only when it is alleged otherwise within 10 days of notification there is an error in any requirement, of such development requirements. the decision, or determination made by the appeal must be presented to the floodplain administrator in the Planning Division in writing and state the enforcement or administration of grounds, or reasons for the appeal. Chapter 168. (b) The Planning Commission shall (d) Streamside Protection Zones. An determine after public hearing whether interpretation or decision of the City the required dedications and Engineer concerning the regulated uses, improvements meet the "rough structures and activities, streamside proportionality" of the impact of the boundary location or land use development on city infrastructure and exemptions. services. If the requirements are in excess of the "rough proportionality," the (3) Urban Forester — Landscape and Tree Planning Commission is empowered !to Preservation and Protection requirements. modify or reduce such requirements;to Decisions of the Urban Forester related to achieve "rough proportionality." landscape and tree preservation and protection requirements. (2) Administrative Approvals. (4) Impact Fee Administrator. Any person (a) A resident of the city or an aggrieved by any decision of the Impact Fee owner/developer who is aggrieved by' a Administrator made in the enforcement or decision of the Zoning and Development administration of Chapter 159 Fees. Administrator regarding development CD155:4 RESOLUTION NO. A RESOLUTION TO APPROVE THE THIRD AMENDMENT TO LAND SALE AGREEMENT WITH KUM & GO, L.C. TO EXTEND THE CLOSING DATE TO NO LATER THAN FEBRUARY 12, 2014 AND TO AGREE TO EQUALLY SHARE THE COSTS OF A NEW TRAFFIC SIGNAL WHEREAS, the City of Fayetteville agreed to sell and Kum & Go, L.C. agreed to buy a lot of slightly under two acres for $1,155,001.00 pursuant to the First Amendment to Land Sale Agreement approved by the City Council by Resolution No. 26-13 on February 5, 2013; and WHEREAS, Kum & Go, L.C. and the City agreed to cost share 50150 the design and construction costs for the agreed upon new street from the intersection of Happy Hollow and Huntsville to Ray Avenue and agreed that the Closing Date would be in early December at the option of Kum & Go, L.C.; and WHEREAS, the City requested and Kum & Go, L.C. agreed to extend the period allowed for the demolition of the old Tyson factory for about an additional two and a half months to enable the City to sell the building for salvage for a substantial savings for our taxpayers; and WHEREAS, Kum & Go, L.C. has now requested that the City agree to extend the Closing Date to February 12, 2014 (which is less of an extension than Kum & Go, L.C. granted the City for its demotion period); and WHEREAS, Kum & Go, L.C. has requested that the City agree to a further 50150 cost share for any expenses related to the new traffic signal needed for intersection of Happy Hollow and Huntsville which accesses both City and Kum & Go, L.C. property. 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 Third Amendment to the Land Sales Agreement attached to this Resolution and authorizes Mayor Jordan to sign this amended Agreement. PASSED and APPROVED this 17t' day of September 2013. APPROVED: By: LIONELD JORDAN, Mayor ATTEST: By: SONDRA E. SMITH, City Clerk/Treasurer THIRD AMENDMENT TO LAND SALE AGREEMENT THIS THIRD AMENDMENT TO LAND SALE AGREEME. ITT (hereinafter, the "Amendment") is made and entered into effective the / � y—h day of September, 2013, by and between the CITY OF FAYETTEVILLE, AR, a municipal corporation ("City" or "Fayetteville"), and KUM & GO, L.C., an Iowa limited liability company ("Kum & Go"), WITNESSETH: WHEREAS, Kum & Go and City have entered into that certain Purchase Agreement (the "Agreement") whereby City has agreed to sell and Kum & Go has agreed to buy certain real estate situated in Fayetteville, Arkansas; and WHEREAS, Kum & Go and City have entered into the First Amendment to Land Sale Agreement on February 5, 2013; and WHEREAS, Kum & Go and City have entered into the Second Amendment to Land Sale Agreement on March 19, 2013; and WHEREAS, Kum & Go and City desire to amend this Agreement for a third time as set forth herein. NOW THEREFORE, in consideration of the mutual promises and covenants herein contained, and for other good and valuable consideration, it is agreed as follows: 1. Extension of Time for Closing. Kum & Go, L.C. and the City of Fayetteville agree that upon Kum & Go, L.C.'s second request to extend the Closing Date pursuant to Paragraph 7 of the Land Sale Agreement, Kum & Go, L.C. shall have the right to extend the Closing Date to not later than February 12, 2014. 2. Traffic Signal Costs to be Shared. Kum & Go, L.C. and the City agree to cost share 50150 (both to pay equal amounts) of the design, purchase, installation and construction expenses to install a replacement traffic signal at the intersection of Happy Hollow and Huntsville Road and the new street entering the City's land at this intersection, which street also provides access to Kum & Go's business. 1 3. Ratification. Except as modified by this Third Amendment, all terms within, the Agreement and its First and Second Amendments are ratified and confirmed by the parties. 4. Counterparts, Facsimile. This Amendment 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. For purposes of executing this Agreement, a facsimile signature shall be as effective as an actual signature. IN VrITNESS VrriEREOF, the parties hereto have caused this Third Amendment to be executed all on or as the day and year first above written. KUM & GO, L.C. CITY OF FAYETTVILLE, AR By: , Jj G " ` u U By NIKI DePHILLIPS, SVP Store Development M. iV.L"y vi ATTEST: SONDRA E. SMITH City Clerk/Treasurer �o�,a�",",►�,�, FAYET FVILLE�� 2 THIRD AMENDMENT TO LAND SALE AGREEMENT THIS THIRD AMENDMENT TO LAND SALE AGREEMENT (hereinafter, the "Amendment") is made and entered into effective the day of September, 2013, by and between the CITY OF FAYETTEVILLE, AR, a municipal corporation ("City" or "Fayetteville"), and KUM & GO, L.C., an Iowa limited liability company ("Kum & Go"), WITNESSETH: WHEREAS, Kum & Go and City have entered into that certain Purchase Agreement (the "Agreement") whereby City has agreed to sell and Kum & Go has agreed to buy certain real estate situated in Fayetteville, Arkansas; and WHEREAS, Kum & Go and City have entered into the First Amendment to Land Sale Agreement on February 5, 2013; and WHEREAS, Kum & Go and City have entered into the Second Amendment to Land Sale Agreement on March 19, 2013; and WHEREAS, Kum & Go and City desire to amend this Agreement for a third time as set forth herein. NOW THEREFORE, in consideration of the mutual promises and covenants herein contained, and for other good and valuable consideration, it is agreed as follows: 1. Extension of Time for Closing. Kum & Go, L.C. and the City of Fayetteville agree that upon Kum & Go, L.C.'s second request to extend the Closing Date pursuant to Paragraph 7 of the Land Sale Agreement, Kum & Go, L.C. shall have the right to extend the Closing Date to not later than February 12, 2014. 2. Traffic Signal Costs to be Shared. Kum & Go, L.C. and the City agree to cost share 50150 (both to pay equal amounts) of the design, purchase, installation and construction expenses to install a replacement traffic signal at the intersection of Happy Hollow and Huntsville Road because of the construction of the street entering the City's land at this intersection, which street also provides access to Kum & Go's business. 1 3. Ratification. Except as modified by this Third Amendment, all terms within, the Agreement and its First and Second Amendments are ratified and confirmed by the parties. 4. Counterparts, Facsimile. This Amendment 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. For purposes of executing this Agreement, a facsimile signature shall be as effective as an actual signature. IN WITNESS WHEREOF, the parties hereto have caused, this Third Amendment to be executed all on or as the day and year first above written. KUM & GO, L.C. CITY OF FAYETTVILLE, AR NIKI DePHILLIPS, SVP Store Development By LIONEL ORDAN Mayor ATTEST: By: SONDRA E. SMITH City Clerk/Treasurer 2