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HomeMy WebLinkAbout95-17 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 95-17 File Number: 2017-0170 FAYETTEVILLE COMMERCE PARK, PETER O. KOHLER, LLC: A RESOLUTION TO SELL ABOUT 14.9 ACRES OF LAND IN THE COMMERCE DISTRICT TO PETER O. KOHLER, LLC FOR $223,500.00 WHEREAS, Peter O. Kohler, LLC has offered to purchase approximately 14.9 acres in the Commerce District and plans to build a 10,000 square foot building to be used by OurPharma, LLC for generic drug compounding and manufacturing; and WHEREAS, the proposed project would lead to the hiring of workers with average wages above the state and national averages, contribute to diversifying and increasing skill sets of our workforce pool, create a positive economic impact to the City, including estimated capital investments of $3,000,000.00 and meets the Fayetteville First target sectors of Specialized Technologies and strategic focuses on workforce, entrepreneurship, and innovation, and the project is supported by the Fayetteville Chamber of Commerce. WHEREAS, the City is selling this 14.9-acre parcel at a discount of about $5,000.00 per acre from its normal selling price but the contract with Peter O. Kohler, LLC includes a clawback provision that could allow the City to be paid back a portion of the discounted price in the event the property is sold within ten years. 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 to this Resolution and made a part hereof) for the sale of about 14.9 acres to Peter O. Kohler, LLC for $223,500.00 and authorizes Mayor Jordan to sign the Land Sale Agreement, Warranty Deed and any other documents necessary to convey this 14.9 acre parcel. Page 1 Printed on 4119117 Resolution: 95-17 File Number.' 2017-0170 PASSED and APPROVED on 4/18/2017 ,'01111111111111rr • �Y =�; FAYETTEVILLE ; Attest: co•� . •cr . • .,rr JN1'Cd • Sondra E. Smith, City Clerk Treasurer Page 2 Printed on 4119117 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2017-0170 Agenda Date: 4/18/2017 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 2 FAYETTEVILLE COMMERCE PARK, PETER O. KOHLER, LLC: A RESOLUTION TO SELL ABOUT 14.9 ACRES OF LAND IN THE COMMERCE DISTRICT TO PETER O. KOHLER, LLC FOR $223,500.00 WHEREAS, Peter O. Kohler, LLC has offered to purchase approximately 14.9 acres in the Commerce District and plans to build a 10,000 square foot building to be used by OurPharma, LLC for generic drug compounding and manufacturing; and WHEREAS, the proposed project would lead to the hiring of workers with average wages above the state and national averages, contribute to diversifying and increasing skill sets of our workforce pool, create a positive economic impact to the City, including estimated capital investments of $3,000,000.00 and meets the Fayetteville First target sectors of Specialized Technologies and strategic focuses on workforce, entrepreneurship, and innovation, and the project is supported by the Fayetteville Chamber of Commerce. WHEREAS, the City is selling this 14.9 acre parcel at a discount of about $5,000.00 per acre from its normal selling price but the contract with Peter O. Kohler, LLC includes a clawback provision that could allow the City to be paid back a portion of the discounted price in the event the property is sold within ten years. 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 to this Resolution and made a part hereof) for the sale of about 14.9 acres to Peter O. Kohler, LLC for $223,500.00 and authorizes Mayor Jordan to sign the Land Sale Agreement, Warranty Deed and any other documents necessary to convey this 14.9 acre parcel. City of Fayetteville, Arkansas Page 1 Printed on 411912017 Jeremy Pate Submitted By City of Fayetteville Staff Review Form 27-7 Legistar File I 4/18/2017 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 3/17/2017 City Planning / Development Services Department Submitted Date Division / Department Action Recommendation: Approval of a resolution to sell approximately 14.9 acres of land (parcel 765-16574-000) in the Fayetteville Commerce Park on S. City Lake Road to Peter O. Kohler, LLC for $223,500 and other valuable consideration Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? NA Current Budget $ Funds Obligated $ - Current Balance Does item have a cost? No Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget V20140710 Previous Ordinance or Resolution # 143-13 Original Contract Number: Comments: Approval Date: CITY OF VT ay ie ARKANSA5 MEETING OF APRIL 18, 2017 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Jeremy Pate, Development Services Director DATE: March 17, 2017 SUBJECT: Sale of 14.9 acres of land in the Commerce District to Peter O. Kohler, LLC RECOMMENDATION: City Staff recommends approval of a contract with Peter O. Kohler, LLC for the sale of approximately 14.9 acres of land owned by the City of Fayetteville on S. City Lake Road in the Fayetteville Commerce Park, for a purchase price of $223,500. BACKGROUND: The subject parcel, 765-16574-000, contains 14.9 acres and is located on S. City Lake Road, south of the US Postal Service facility and city trail. The City was recently approached by Dr. Kohler to purchase this property. Dr. Kohler is the CEO of OurPharma, LLC, and intends to develop a generic drug manufacturing facility in Northwest Arkansas. The company's objective is to produce medical products at a reduced price, and conduct research in collaboration with the Department of Biomedical Engineering at the University of Arkansas. The development plan is to construct an initial building of approximately 10,000 square feet with plans to double the space over the next 5 years. An architectural firm and contractor has been retained to begin design of the facility, -which will be owned by Peter O. Kohler, LLC and leased back to OurPharma, LLC to operate the company. Once the facility is operational, the company will staff 10-12 employees with expansion plans to grow to more than 100 employees over a five-year period. The average pay is estimated to be in excess of $50,000 per year. In addition, certain medical and administration staff is estimated to make in excess of $100,000 per year. An estimated $3 million in capital investment is expected for design, construction, land and equipment. DISCUSSION: The attached land sale agreement has been reached through negotiations between the City and Dr. Kohler, representing the entity purchasing the property. The proposal is to sell the property for approximately $15,000 per acre, at a total price of $223,500. This price represents a reduced rate from the currently advertised $20,000 per acre of land in the Commerce District, but reflects the purchase price that the City Council approved for the same parcel in 2013 to Pacific Vet Group when that company was looking to locate on the property. The Mayor's office is excited to welcome a clean, high tech manufacturing facility to Fayetteville, meeting the goals of our Fayetteville First economic development plan, particularly in the Specialized Technologies Mailing Address: 113 W. Mountain Street www.fayetteviile-ar.gov Fayetteville, AR 72701 sector offering competitive wages. The staff believes a development of this type on the property will increase property value, contribute to our tax base and overall have a positive economic impact for Fayetteville as the Commerce District continues to develop over time. City Code §34.27 establishes requirements regarding public notice and procedure for the sale of real property owned by the City of Fayetteville. City Staff has performed all necessary public notification procedures in compliance with this city ordinance (documentation attached). Additionally, the City Council must establish that this land is no longer needed for municipal purposes. As a purpose of the Commerce District is to encourage economic development that generates revenue for the City by providing new and expanded services, and finding that there is no identified use for the subject property for municipal purposes, this land is no longer needed for municipal purposes. BUDGET/STAFF IMPACT: $223,500 in sale revenue will be paid to the fund that maintains ownership of the land. Attachments: • Land Sale Agreement • Chamber of Commerce (as Economic Development contractor) Letter • Proof of Public Notice (sign, letter, and newspaper notice) • Location Map(s) 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 Peter O. Kohler, LLC. The City of Fayetteville agrees to sell a parcel of about 14.9 acres in the Fayetteville Commerce District to Peter 0. Kohler, LLC for TWO HUNDRED TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00) and Peter 0. Kohler, LLC's performance of all of the terms, conditions and promises set forth later in this Agreement. Peter 0. Kohler, LLC 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 COND1T10N5 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 the "Development Site") located in the Fayetteville Commerce District by warranty deed to Peter 0. Kohler, LLC for the amount of TWO HUNDRED TWENTY-THREE THOUSAND FIVE HUNDRED DOLLARS ($223,500.00). This Development Site, which contains 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, Peter 0. Kohler, LLC 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: A. Earnest money deposit: An earnest money deposit in the amount of THREE THOUSAND FIVE -HUNDRED DOLLARS ($3,500.00) shall be paid by Peter 0. Kohler, LLC to the City of Fayetteville at the time this Agreement, signed by Peter 0. Kohler, LLC, is submitted to the City for approval. If the purchase and sale is consummated, this earnest money deposit shall be applied to the purchase price at closing. If the City exercises its option to terminate the Agreement pursuant to paragraph 8, this earnest money deposit shall be refunded in full. if the transaction is not consummated for any other reason, the earnest money deposit shall be refunded less the City's costs of obtaining the owner's title Page 1 of 5 policy and title commitment. B. Balance: The remaining balance of the purchase price in the amount of TWO HUNDRED TWENTY THOUSAND ($220,000.00) shall be paid to the City of Fayetteville on or before the Closing Date. 3. Closing Date and Place Closing shall occur within 60 days following the date this Agreement has been executed by both parties unless extended by mutual agreement of the parties in writing. The Closing shall occur at 113 West Mountain Street, Fayetteville, Arkansas in a room supplied by the City of Fayetteville. 4. Date of Possession Possession of the Development Site shall -be delivered to Peter 0. Kohler, LLC on the Closing date free of any tenancies or other third party possessory rights. Title Insurance The City of Fayetteville shall order a title commitment on the Development Site, as soon as practicable following the full execution of this Agreement, through a title insurance company selected by the City and -acceptable to Peter 0. Kohler, LLC. 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 Peter 0. Kohler, LLC's 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, Peter 0. Kohler, LLC 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 Peter 0. Kohler, LLC. 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. Peter 0. Kohler, LLC 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 Peter 0. Kohler, LLC 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. Risk of Loss Risk of loss as to the Development Site shall remain with the City of Fayetteville until the Closing date. Page 2 of 5 8. Peter O. Kohler, LLC's Due Diligence Peter O. Kohler, LLC has received and reviewed the geotechnical feasibility study of the Development Site that was completed in 2014 and acknowledges that certain portions of the Development Site may not be suitable for the type of development proposed by Peter O. Kohler, LLC. Peter O. Kohler, LLC may enter upon the Development Site to conduct any additional surveying, testing or inspection it deems necessary to ensure the Development Site will be appropriate for the construction and use for its facility. If Peter O. Kohler, LLC discovers any problems that would adversely impact its development and use of the Development Site for its facility, Peter O. Kohler, LLC shall notify the City which is granted sixty (60) days to remediate any problem. The City may also terminate this Agreement without penalty rather than remediating any problem or issue discovered by Peter O. Kohler, LLC. Likewise, if the City does not remediate the problem, Peter O. Kohler, LLC may terminate this Agreement without penalty, being entitled to a return of its earnest money, or proceed under this Agreement to accept the property without resolution of the problem. - 9. Large Scale Development Approval Peter O. Kohler, LLC 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 Peter O. Kohler, LLC's intended use of the Development- Site for its facility. The City shall reasonably cooperate with Peter O. Kohler,-LLC in Peter O. Kohler, LLC`s request for development approval of its facility. Peter O. Kohler, LLC must present its development proposal through the normal City process and follow the Unified Development Code requirements. Peter O. Kohler, LLC may defer Closing hereunder during such time as its Development plat and approvals are pending review by the City, and if such are not approved, Peter O. Kohler, LLC may terminate this Agreement without penalty, being entitled to a return of its earnest money, or proceed under this Agreement to accept the property without development plans approved by the City. 10. Compensation to City of Fayetteville if Development Site is Sold Within 10 Years If any portion of the land conveyed by this contract is sold by Peter O. Kohler, LLC within the first five years of the date of closing, an indeperident appraisal of the land's value shall be performed to segregate the actual sales price between that allocable to the raw land as acquired by Peter O. Kohler, LLC, and that allocable to the improvements subsequently added by Peter O. Kohler. Peter O. Kohler, LLC shall pay 75% of the increase in appraised value of the raw land (with prorated sales cost deducted) to the City of Fayetteville. Peter O. Kohler, LLC shall pay the City of Fayetteville 40% of the increase in appraised value of the land (with prorated sales costs deducted) for any sales after 5 years until 10 years from the closing date. 11. , Notices Notices required by this Agreement shall be in writing and shall be delivered to:. Peter O. Kohler, LLC ATTN: Peter O. Kohler, MD, CEO Page 3 of 5 3657 E. Leawood Way Fayetteville, AR 72703 City of Fayetteville ATTN: Mayor's Office 113 W. Mountain Street Fayetteville, AR 72701 72701-6083 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, warratities, 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. Page 4 of 5 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 Peter O. Kohler, LLC at closing. Date: PETER O. KOHLER, LLC By: PETER O. KOHLER, MD Chief Executive Officer WITNESS: B 9'4� y' - Date: I�1 CITY OF FAYCT4�KVILLE, , Mayor ATTEST: By: la'., S. Sondra E. Smith, City Clerk Page 5 of 5 "+ Streams Lot 10 Lot 90 Contours 2' Parcel Boundary w E Industrial Park West Contours 10' Flood Cartographic 100Year s ROW 1 inch = 300 feet Cnrnm �sl PnIL G.GIS211`, P,, 120I J!"d IIIi Pa A 11. 10 So toiit-tk 10 Inl-WJ PJ,k Vlcvl-ma02 mxa To: Fayetteville City Council From: Peter 0. Kohler, MD, CEO OurPharma LLC Re: Land Parcel 765-16574-000, 14.9 acres on Morningside Drive 3/6/17 We are developing a generic drug compounding and manufacturing company which we hope to be located in the Fayetteville Commerce District. We believe there is a need for generic medications that are affordable to underprivileged groups such as the Marshallese, who carry a heavy burden of chronic diseases, particularly diabetes. OurPharma LLC anticipates being profitable in order to grow, but also will attempt to enter the market in order to both provide needed medications, but also to lower the cost where possible. We will have research in collaboration with the Department of Biomedical Engineering at the U. of A. Our plan is to build an initial building of approximately 10,000 sq.ft. with space to expand with at least a doubling of space over the next 5 years. We plan to use an -experienced contractorto build a modular self-contained area for drug compounding. This activity requires absolutely clean filtered air, and both temperature and humidity control in orderto pass FDA inspections. We are currently working with an architectural firm and a contractor with offices in Fayetteville and/or Springdale.- The building and property will be owned by Peter 0. Kohler LLC, an affiliated entity, and leased back to Ourpharma LLC for the generic drug operation. We will need docks for truck access and adequate parking for employees. We anticipate beginning with 10-12 employees initially with an expansion to more than 100 over five years as our plan unfolds. The average pay of these workers should be in excess of $50,000.00 per year. Peter 0. Kohler LLC will offer $223,500.00 for the above parcel with a deposit of $3500.00 earnest money. We believe that this is the type of manufacturing activity that will be good for Fayetteville and Northwest Arkansas. We are eager to proceed as expeditiously as possible. This offer is contingent on making sure the property is suitable for building an FDA -approved facility. We need to make sure that there are no unexpected toxic materials or other factors that would make the site unsuitable for the building. We would make this subject to an appraisal at our expense for a minimum of the amount of this offer. In the unlikely event that the property does not meet the requirements, the earnest money should be returned. Fayetteville Chamber of Commerce To: Mayor Lioneld Jordan City of Fayetteville CC: Don Marr, Chief of Staff Jeremy Pate, Director of Developmej rvice r/ From: Steve Clark, CEO & President Date: March 16, 2017 Subject: Recommendation to approve the sale of city -owned land, Parcel # 765-16574-000 to OurPharma, LLC OurPharma, LLC is a new business set up in Fayetteville and is led by Dr. Pete Kohler and his team. OurPharma, LLC is interested to start a generic drug manufacturing facility in Northwest Arkansas. Its objective is to produce medical products at a reduced price compared to those currently in the market. OurPharma, LLC has looked at several sites in different cities. The Fayetteville Chamber showed the business some city -owned sites and set up appointments for them with Arkansas Economic Development Commission to talk about state incentives. With the support of the Fayetteville Chamber and Jeremy Pate, Director of Development Services with the city, OurPharma, LLC has now offered to buy the 14.9 acres of land in the Fayetteville Commerce District, Parcel # 765-16574-000-on City Lake Road. Attached is the letter of offer from OurPharma, LLC. OurPharma, LLC has already engaged an architect firm as well as a construction firm to start construction as soon as the purchase of the land is finalized and the design plan approved by the city's development services division. OurPharma has early financing in place and is ready to start building the facility. It will start with a minimum of 10,000 SF building equipped with office, manufacturing, amenities, and warehousing space. It plans to grow its campus by adding more space as it expands. 21 W. Mountain, Ste. 300, PO Box 4216, Fayetteville, AR 72702 Tel: (479) 521-1710; Fax: (479) 521-1791; www.fayettevillear.com Ouftarma/Page 2 The company currently has a staff of four (4) personnel and it expects this number to grow to 10- 12 staff when the facility is operational. Annual payroll is estimated to start at about $1 million a year and it is expected to grow rapidly. Initially, they plan to hire 3-4 pharmacists whose salaries average $120,000 - $140,000 a year according to market and a Chief Operations Officer whose market salaries run about $200,000 a year. The operations workers will be hired at more than $30,000 a year. Additionally, an estimated capital investments of $3 million will be spent on design and construction, land, and equipment. We strongly recommend that the City leadership supports this project by approving the sale of the land and fast tracking the permitting process for-OurPharma, LLC. This project: 1) Meets the City's and State's goal of creating new jobs for Fayetteville and so the state of Arkansas 2) Exceeds the City's and State's goal of having new/expansion projects with new average annual wages above the state's ($38,540) and national's ($48,000). The average annual wages resulting from this project exceeds $60,000. 3) Contributes to diversifying and increasing skill sets of our workforce pool 4) Create a positive economic impact to Fayetteville 5) Meets the Fayetteville First's target sectorsSpecialized Technologies and strategic focuses on workforce, entrepreneurship, and innovation. CERTIFICATE OF SIGN POSTING 1, Andrew Harrison, attest that the above sign was posted on March 21, 2017 adjacent to Pump Station Rd... City File No./Name: ADM 17-5767 ]1e Zay m5I March 17, 2017 Name Street Address City, State Zip code Re: Public Notice — Sale of municipally owned real property Dear Property Owner: THE CITY OF FAYETTEVILLE, ARKANSAS CITY PLANNING DIVISION 125 West Mauntain Fayetteville, AR 72701 Phone (479) 444-3443 Please be aware that the Fayetteville City Council will consider a Resolution and Contract to sell to Peter O. Kohler, LLC about 14.9 acres (parcel 765-16570-000) it owns on S. City Lake Road for $223,500. The property currently contains no structures and is leased for agricultural purposes. It is zoned R-A, Residential Agricultural, 1-1, Light Industrial/Heavy Commercial and 1-2, General Industrial. Should the sale be approved, planned improvements include the development of a generic drug manufacturing facility. This possible sale will be considered by the City Council -during its 5:30 p.m. meeting held on April 18, 2017 in Room 219 of City Hall, located 113-W. Mountain Street. If you wish to learn more about this proposed sale, please contact Don Marr, Chief of Staff for the City of Fayetteville at 479-575-8330. You may also attend the April 18, 2017 City Council meeting and ask questions or make comments when this resolution is presented for City Council consideration. Sincerely, Jeremy C. Pate Development Services Director City of Fayetteville, Arkansas Telece,mr€7iFNicatiorts Device for [fie Beef "T[3U (479) 521-1316 113 West Mountain -Fayetteville, ayetteville, AR 72701 CERTIFICATE OF MAILING 1 hereby certify that a true and correct copy of the attached written notice was placed in the U.S. mail, first-class, postage prepaid this 20th day of March, 2017, and addressed as follows. - Name., UNITED STATES POSTAL SERVICE 225 N HUMPHREYS BLVD MEMPHIS, TN 38166 - Name: THOMAS LUTHER JR 1418 S SCHOOL ST FAYETTEVILLE, AR 72701 Name; Don & Gary Osburn 2495 S CITY LAKE RD FAYETTEVILLE, AR 72701- Name: SANDRA J REYNOLDS REVOCABLE TRUST PO BOX 1625 FAYETTEVILLE, AR 72702 Name: MCKEE ELIZABETH CHADBOURN 2351 S CITY LAKE RD FAYETTEVILLE, AR 72701 Name; C QUAD DEVELOPMENT LLC P 0 BOX 3153 FAYETTEVILLE, AR 72702 Name: WLH LLC P 0 BOX 808 FAYETTEVILLE, AR 72702 Andrew Harrison City File No. /Name: 17-5767 ADM (City Owned Property Sale) NORTHWEST AmASAS Democrat axette pp. PRF ... i'_ 1dli..' ..:12.1:7Q2 r:r-$4 7..'t.p:G`14-G?r-':'aE' `r;i;': _,,: AFFIDAVIT OF PUBLICATION I Karen Caler, do solemnly swear that I am the Legal Clerk of the Northwest Arkansas Democrat -Gazette, printed and published in Washington County and Benton County, Arkansas, and of bona fide circulation, that from my own personal knowledge and reference to the files of said publication, the advertisement of: CITY OF FAYETTEVILLE City Council Meeting Was inserted in the Regular Edition on: March 24, 2017 Publication Charges: $ 54.60 Kar - n Caler Subscribed and sworn to before me This �o day of PaA-, 2017. W Notary Public My Commission Expires: AbDk'44 I!13faiur' i't;;iil ;r..tl?, i;(` 1.:9711& F; *NOTE** Please 20, 2u;24 Please do not pay frbm Affidavit. Invoice will be sent. NOTICE OF PUBLIC HEARING A meeting of the City of Fayetteville City Council will be held on April 18, 2017 at 5:30 p.m, in room 219, Fayetteville Adminislmtion Building at 113 W Mountain Street, Fayetteville, Arkansas, 72701. For further information or to request an interpreter, please call 575-8330. The following item is required to be published in the local newspaper pursuant to the Code of Ordinances of the City of Fayellevil le and will be heard at the April 18, 2017 Fayctcvillu City Council meeting, ADM 17-5767: SALE OF MUNICIPALLY OWNED REAL PROPERTY, 642): Submitted by CITY STAFF for property located SOUTH OF 2300 CITY LAKE RD. The Fayetteville City Council is considering the sale ofabout 149 acres it owns SOUTH OF 2300 CITY LAKE RD. to Peter 0. Koller, LLC for $223,500.00, The proposed use of the property is for a generic drug manufacturing facility This possible sale will be considered by the City Council during its April 18, 2017 meeting at 113 W. Mountain Streel, Room 219. 74071654 March 24, 2017 Screams Lot 10 Lot 10 Contours2' Parcel Boundary vv+E Industrial Park West Contours 10' Flood Cartographic 100Year S ROW 1 inch = 300 feet [) t IBall Pd1h G.IGI SI1P,-,W2013lhd1, I P,,K LA 10 Sa I, ILM 10 - Indvf[ mI Pert Wes(--pZ,m d ADM 17-5767 CITY OWNED PROPERTY SALE A& Current Land Use NORTH =, r ; USPS Distribution Center Subject Property " r t `* t fi a c. QADM 17-5767 FEND Flood Hazard Data •�^r«-• Streams Streel MINORARTERIAL i 100-yearFlggtiplin • . Shared Use Paved Trail Feet Fklodway ®IIII Trail (Proposed) 0 County Parcels 0 75 150 300 450 600 L Planning Area 1 inch = 200 feet 1,11 Fayetteville City Limits ADM 17-5767 Close Up View } U as F-a Legend CITY OWNED PROPERTY SALE 4 ' Planning Area ' Fayetteville City Limits Shared Use Paved Trail Trail (Proposed) Building Footprint Feet 0 75 150 300 450 600 1 inch = 200 feet A& NORTH Residential-Agricu l lu rat RSF-4 1-1 Heavy Commercial and Light. Industrial 1-2 General Industrial n ADM 17-5767 One Mile View CITY OWNED PROPERTY SALE 0 0.125 0.25 0 5 Miles NORTH I I f r Zoning EXTRACTION . - RESIDENTIAL SING LE -FAMILY ME., Legend _. 9 CO='I.A.L"_ Planning Area FO RM,BA.F. DISTRICTS L�on�,mm�n cae Fayetteville City Limits 4 RESIDENTIAL MULTI -FAMILY M RT,P R seenlal T�.aana Thl-iamiN �U. n 1al ...... Shared Use Paved Trail Comm „se P5 a Ne Trail (Proposed) --- RMFm vsnnwenzoHuraarmrtta PlanningArea "'- - NOUSTRIAL `" P1ia n so-iaiaeseemi Building Footprint Fayetteville Cily Limits INSTITUTIONAL U LiB�I InOuslral z - _ �e ,allno l' l Parcel No. 765-16574-000 RECEIVED QQ4, 95-17 v WARRANTY DEED BE IT KNOWN BY THESE PRESENTS: SEP 2 7 2017 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE THAT the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTOR, for and in consideration of the sum of Two Hundred Twenty -Three Thousand Five Hundred Dollars ($223,500.00), the receipt of which is hereby acknowledged, does hereby grant, bargain,. sell and convey, unto Peter 1�0. Kohler, LLC, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in thel County of Washington, State of Arkansas, to -wit: II IIIII I��I UI Ilul �II IIIII I�� �II I II91 IIIII IIIII IIIII III IIIII IIII UO Doc ID: 017656360002 Type: REL Kind: WARRANTY DEED Recorded: 09/26/2017 at 10:49:62 AM Fee Amt: $20.00 Pape 1 of 2 Washington County, AR Kyle Sylvester Circuit Clerk File201 /—0002VT22 Lot Ten (10), Final Plat of Fayetteville Industrial Park West, Fayetteville, Arkansas, as per plat recorded in plat record book 10 at page 17 on file in the office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas, containing 14.90 acres, more or less. Subject to easements and rights -of -way of record. TO HAVE AND TO HOLD the said lands and appurtenances hereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantor hereby covenants that it is lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantor will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this the day of 2017 ATTEST: "1001RF Sondra Smith, .-T1@49 =a� .`-)3 Z!Z EVIL ' INGT 11111111 STATE OF ARKANSAS COUNTY OF WASHINGTON SS. CITY OF FAYETTEVILLE. ARKANSAS ACKNOWLEDGMENT 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 Lioneld Jordan 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 -Treasurer, respectively, 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 City of Fayetteville, Arkansas, and further stated and acknowledged that they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this day of ) l�'�-2017. MY COMMISSION E KPIRNNFIELD S BRONSON JR NOTARY PUBLIC Notary Public COUNTY-ARKANSAS COMMISSION # 12387836 EXPIRES: APRIL 10, 2922 4,.MAkil STATE OF ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION MISCELLANEOUS TAX SECTION P.O. BOX 896, LITTLE ROCK, AR 72203-0896 Grantee: Mailing Address: Grantor: Mailing Address: Property Purchase Price: Tax Amount: County: Date Issued: Affidavit ID: Affidavit of Compliance PETER O. KOHLER, LLC 3657 E. LEAWOOD WAY FAYETTEVILLE AR 727030000 CITY OF FAYETTEVILLE 113 W. MOUNTAIN ST. FAYETTEVILLE AR 727010,000 $223, 500.00 $0.00 WASHINGTON 09/25/2017 316231680 File Number. 22855-17 The grantee/grantor claims the following exemption to the Real Estate Transfer Tax: A transfer to or from the United States, the State of Arkansas, or any of the instrumentalities, agencies, or political subdivisions of the United States or the State of Arkansas. I certify under penalty of false swearing that documentary stamps or a documentary symbol in the legally correct amount has been placed on this instrument Grantee or Agent Name Grantee or Agent Name (signature): Address: City/State/Zip: t4C,-�57-q Date: q�a Angela Wood Collector 280 N. College - Suite 202 Fayetteville, AR 72701 (479) 444-1526 2016 Tax Receipt 60049 Washington County, Arkansas PAID RECEIPT CITY OF FAYETTEVILLE ARKANSAS 113 W MOUNTAIN ST FAYETTEVILLE AR 72701-6083 Page 1 ORIGINAL 09/28/201710:46 am Posted 09/26/2017 10:40 am TAX ID 24333 Check or Credit Card payment not honored on presentation to our Bank will render this receipt NULL and VOID. Payment Received 09/2612017 Received by MLC In Office CK Paid by: bronson abstract company Parcel Number Year Owner and Legal Description Valuation Millage Amt Due Amt Paid 765-16574-000 2016 CITY OF FAYETTEVILLE Block 010 FAYETTEVILLE IND.PARK WEST 27-16-30 14.9 Acres TRACT 10 14.90 A. 011 Real Estate 985 67.45 $56.59 Payment Received $56.59 Total Payment Applied $56.59 Distrilbutinn of Tay Dollars County Library $0.00 County Road (Split) $0.22 Fayetteville School $44.97 Fayetteville City General $2.27 Fayetteville City Police Pen $0.39 Fayetteville City Fire Pension $0.39 Fayetteville City Road $0.87 Fayetteville City Library $3.64 Total Tax $56.59 Check $56.59 Cash $0.00 Total $56.59 Ck #/Auth 25090 Total Parcels Paid 1 Account Balancer $ 71;003:06 Q OMII No. 2502-0265 RFC[N E0 su21W7 gTy CLERKS OFFICE MAL A. SETTLEMENT STATEMENT (HUD-1) C. NOTE: This fbmt is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent am shown. Items marked :(p^c.)° were paid outside the closing; they am shown hero for Intbnnational purposes and ere not included in the totals. D. NAME & ADDRESS Peter O. Kohler, LLC OF BORROWER: 3657 E. Leawood Way Fayett9ville, AR 72703 E. NAME & ADDRESS City of Fayetteville OF SELLER: 113 West Mountain St., Fayetteville, AR 72701 F. NAME & ADDRESS Cash OF LENDER: G. PROPERTY LOCATION: Industrial Park West, Fayetteville, AR 72701 H. SETTLEMENT AGENT: Bronson Abstract Company, Inc. PLACE OF SETTLEMENT: 3810 Front Sttset Suite 5, Fayetteville, AR n703 (479) 442-2700 i.. SETTLEMENT DATE: 925nO17 DISBURSEMENT DATE: 912k2017 J. Summn of Borrower's Trnnaaetion K. Summary of Seller's Transaetion 100. Gross Amount Due From Borrower: 400. Gross Amount Due To Seller: 101. Contract sates price 223 500.0 401. Contract sales price 223 500.00 102. Personal property 402. Personal 103. Settlement charges to borrower Qinc 1400) 525:00 403. 104. 404. 105. 405. Adjustments For Items Paid By Seller In Advance: Adjustments For Items Paid By Seller In Advance: 106. Cit hown taxes to 406. City/town fracas to 107. County texas to 407. County texas m 108. Assessments to 408. Assessments to 109. 409. 110, 410. Ill. 411. 112. 41L 113. 413. 114. 414. 115. 415. 116. 416. 120. Gross Amount Due From Borrower: 224,025.00 420. Gross Amount Due To Seller. 223,500.00 200. Amounts wer, 500, ReductionAmount Due To Seller: 201. Deposit or earnest money 3,500.0 501. Excess deposit (see instructions) 202. Principal amount of new I s 502. Settlement charges to seller pine 1400) 1.189.00 203. Existing loans) taken subject to 503. Existing loan(s) taken subject to 204. SO4. Payoff Ist LA. 205. SOS. Payoff2ad Mig. Lu. 206. 506. Property Tax 56.59 207. $07. Deposit To Seller 3.500.00 208. 508. 209. S09. Adjustments For Items Unpaid By Seller: 210. City/town taxes to Adjustments For Items Unpaid By Seller: 510. Cityhown taxes to 211. County taxes 01/01/17 to Mill? 41.39 511. County Uxca 01/01/17 to 09/25/17 41.39 212. Assessments to 512. Assessments to 213. 513. 214. SIC 215. $15. 216. 516. 217. S17. 218. 518. 219. 519. 220. Total Paid By/For Borrower: ,.39 3541 520. Total Reductions In Amount Due Seller: 4,785.98 F3-00-C-mh At Settlement From/To Borrower; s ement Fronirro Seller; 301. Gross amount due from borrower (line 120) 224 025.00 601. Gross amount due to seller (line 420) 223.500,00 302. Less amount paid by/for borrower pine 220) 3,541.3 602. Less reductions in amount due seller (line 520) 4,785.98 303. Cash (®FROM) 0I70) Borrower: 220,483.61 603. Cash (Fx r0) (OFROM) Seller: 218,714.02 Previous Edition Is Obsolete SB4-3538-000-1 Form No. 1581 HUD-1 (3-86) 3/86 Pagel of 3 RESPA, H134305.2 CCTTr CadCNT ruAtti Tccrnuc 22855.17 700. Total SalesfBrokces Commission: Based On Price S %= Paid From Borrower's Funds At Settlement Paid From Seller's Funds At Settlement Division nfCammimlon (line 7001 As 1 w ! 702,S to 703. io 704. Silk firms Payable In Connection With Latin, 80-1-Appralml fee to: Cash ApRraisal Fee 904, Credit report to: Cwh It Report Fee i n fee Insurance gglication fee to 808- Uan Fee To: Cash Loan Fcc Foo To: Cash Underwriting Fee 810, 817. 913. 814, 816, 817. 818. 819, 920. 82 p da 0 days) 902, ModUge Insurance premium for M to insurance 904. Flood ce premitim insurance905, .00 M month 1007- R e n 0 months 0 onth 0.00 pa month an 1 th fog S 0.00 pgr month 1006, Flood insurarice 0 months S 0.00 pat month 1008, ant Settlement1009. 1101- st t Company. Inc. Tific-Sculementt Fee 375.0075 00 1102, Abstract or title search to n AbOroct Company. Inc. Title-Titic Title examination to Title1103, 1104, 1105, Document RM"on to 1106, Notay, fees to 1107. Attorneys fees to (includes above item Numbers. ) 1108. Title insurance to Bronson Abstract Company, Inc, Title-Lender/Mortgagee Premium (includes above item Numbers: ) 688.00 1109, e s covers e S 0.00 Premium: $0.00 covemat S 223,500.00 Premium: 688.00 1112, 1113, 1114. em, Deed S 25.00 S 0.00 Aclomes 0.00 25.001 Deed S 0.00 :Mon a e 0.00 0 Mortitage S 0.00 1204, 1205. 1302, Pest inssmlion to 03 1304, 1305, 1307, Q. Tnlrtl $rtllernent ee of - aipd - firij 502,Section 9) Forth No. 1582 Page 2 of SB-4.3538-000.1 SELLER'S AND/OR BORROW STATEMENT Escrow: 22855-17 I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. / further certily, that I have received a ropy of the HUD -I Settlement Statement. Borrowers/Purchasers Sellers Peter O. Kohler, L•L�C�. .City uttcyi l.. By:: The HUD-t Settlement Statement which I have prepared is true and accurate account of this transaction. I have caused or will cause the funds to be disbursed in accordance with tthis'mant.. _ Settlement Agent: '`�" • ` Date: Lela R. Davis, Bronson Abstract Com in, - WARNING: It is a crime to knowingly make false statements to the United States an this or any other similar form. Penalties upon conviction can include a tine or imprisonment. For details see: Title 18 U.S. Cale Section 1001 and Section 1010. Page 3 of 3 Parcel No, 765-16574-000 WARRANTY DEED BE IT KNOWN BY THESE PRESENTS: THAT the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTOR, for and in consideration of the sum of Two Hundred Twenty -Three Thousand Five Hundred Dollars ($223,500.00), the receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey unto Peter 0. Kohler, LLC, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: Lot Ten (10), Final Plat of Fayetteville Industrial Park West, Fayetteville, Arkansas, as per plat recorded in plat record book 10 at page 17 on file in the office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas, containing 14.90 acres, more or less. Subject to easements and rights -of -way of record. TO HAVE AND TO HOLD the said lands and appurtenances hereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantor hereby covenants that it is lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantor will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this the day of F)T'�"� , 2017, CITY OF FAYETTEVILLE, ARKANSAS A Municipal Corporation ATTEST: `����� nirl�h 1' R�- � ..• Son. ra Smitfl,, $ . s .�.p rP�-: TE ACKNOWLEDGMI"NT STATE OF ARKANSAS ss. COUNTY OF WASHINGTON ) BE.IT.REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally,appeared Lioneld Jordan 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 -Treasurer, respectively, 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 - ,City of Fayetteville, Arkansas, and further stated and acknowledged that they had so signed, executed and delivered said instrument for the consideration, uses'and purposes therein mentioned and set forth. WITNESS my hand and seal on .this -r`1 day of ))61 `lb —2017_ MY COMMISSION E KPIRMFIELD S BRONSON JR AA jaM��� NOTARY PUBLIC Notary Public WAAHINaTnN COUNTY-ARKANSAS COMMISSION #E 12387836 EXPIRES: APRIL 10 2022 CLOSING CERTIFICATION FILE No: 22855-17 Address: Industrial Park West, Fayetteville, AR 72701 We the undersigned hereby state that we are the party(ies) with respect the property referenced above and theretofore make the following certifications where applicable: PROPERTY ADDRESS PRORATIONS Bronson Abstract Company, Inc. (hereinafter referred to as "Closing Agent") has prorated the current years real estate taxes (if a purchase) from January first of the current year through the date of the closing and have given the purchasers) credit for same on the settlement statement. The purchaser will therefore be responsible for payment of those taxes when they become due and payable the next payment cycle. If an escrow is being established for payment of taxes and/or insurance then the Closing Agent has made the necessary entries on the settlement statement as instructed by the Lender. The reserves and monthly payments for the escrow have been established by using the current amounts provided by the County Assessor for the current year without consideration of any existing credits. It is the responsibility of the undersigned Borrower(s)/Purchaser(s) to contact the County Assessor's office for the purpose of applying for any credits for which they may be entitled. It will also be the responsibility of the undersigned to provide the Lender with any information which would be necessary for the purpose of changes to any of the escrow payment amounts. The Closing Agent hereby disclosed that the valuations as provided by the County Assessor's office at the time of closing may be changed at any time for the closing date forward and said Closing Agent shall not be held responsible or liable to the undersigned for any discrepancies and/or adjustments which may occur subsequent to the date of the closing. TITLE INSURANCE AFFIDAVIT The undersigned, where applicable, hereby affirm that they have received a copy of the title insurance commitment and are aware of any matters contained therein. SURVEY -WAIVER The undersigned affirm and acknowledge that they did not receive, unless previously agreed and/or required, a survey of the property, and further will have no coverage or protection on the title policy with respect to matters that would have been disclosed by an accurate survey of the property. It is the responsibility of the undersigned to request such coverage, including but not limited to survey matters, directly from the title insurance issuing agent prior to the closing and be responsible for additional coverage. In the even the survey coverage is requested and/or required, it is further the responsibility of the undersigned to provide the title insurance issuing agent a survey which would meet the criteria and requirements as determined by the title insurance company guidelines. ERRORS AND OMISSIONS The undersigned party(ies) affirm and acknowledge that they will cooperate and agree to re -executed any documents, initial any changes, or pay any additional amounts and/or fees which my result from clerical errors or other matters, including but not limited to misspellings, incorrect names, addresses, legal descriptions, costs, terms, conditions, computations, taxes collected or due and expenses which were all done in good faith by the Closing Agent and further agree to respond to any such request made by Closing Agent, Lender, or other parties involved, in a manner which is timely and consistent with such request. We further agree to indemnify and hold Closing Agent, Lender and Realtors harmless from loss or damage or liability resulting from matters herein. Dated this 25th day of September,2017. PURCHASE a SELLER PEI R O. KOHLER, LLC CI Y OF .; 71391LLE, ARKANSAS SELLER/PURCHASER'S AFFIDAVIT STATE OF ARICANSAS, COUNTY OF: WASHINGTON The undersigned, referred to as Seller/Purchaser (whether one or more) being first duly sworn on oath that the Seller/Purchaser is the owner of the following described lands, situated in Washington County, Arkansas, to -wit: Lot 10, Final Plat of Fayetteville Industrial Park -West, Fayetteville, Arkansas, as per plat recorded in plat record book 10 at page 17 on file in the office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas. Subject to easements and right-of-ways of record. Seller/Purchaser further states the following facts are true: 1. There is no adverse occupant of the property described above. 2. Seller/PUrdt—mand those, under whom Seller/Purchaser claims title, have been in peaceful possession of said lands for more than 7 years past. 3. There are no unrecorded options to purchase, Sales Contracts or Lease Agreements outstanding, which affects the property described above. 4. There have been no improvements made on the property described above during the past.130 days for which a Mechanic's and Materialmens' Lien may be filed. 5. The property described above is not traversed by any roadways or easements, except those shown on record. 6. That no money whatsoever is owed on subject property to any person, firm or corporation other than the following: NONE. Witness ie liars `,,.n� - _ 1 of the undersigned this.° ' day of September, 2017. Pity!of Fay tevil Peter.0.. Kohler,, LLC Subscribed and sworn to before me, a Notary Public, on this 2 .day of September, 20 WINFIELD'S BRONSON JR NOTARY PUBLIC Notary Public My' Ai9.iWUNTY - ARKANSAS COMMISSION # 12387836 Please return this to Bronson Abstract Company, Inc., 3810 Front Street, Suite #5, Fayetteville, AR 72703 File Number: 22855-17