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HomeMy WebLinkAbout202-19 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 202-19 File Number: 2019-0-545 FAYETTEVILLE FIRE STATION AND POLICE HEADQUARTERS: A RESOLUTION TO APPROVE THE REAL ESTATE AGREEMENT (OFFER AND ACCEPTANCE) BETWEEN THE CITY OF FAYETTEVILLE AND THE DIVISION OF AGRICULTURE OF THE UNIVERSITY OF ARKANSAS TO PURCHASE ABOUT 11.6 ACRES LOCATED NORTH OF DEANE STREET AND EAST OF PORTER ROAD FOR THE CONSTRUCTION OF A NEW FAYETTEVILLE FIRE STATION AND POLICE HEADQUARTERS COMPLEX FOR TWO MILLION FIVE HUNDRED AND NINETY THOUSAND DOLLARS ($2,590,000.00), PLUS ANY ASSOCIATED CLOSING COSTS, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville needs to purchase property for a fire station and the new police headquarters complex and has decided that about 11.6 acres of the Division of Agriculture of the University of Arkansas Farm property would be ideal for the needs of the Police and Fire Departments; and WHEREAS, the Division of Agriculture has graciously agreed to sell a 11.6 parcel to the City of Fayetteville to be divided between the Police Department and Fire Department, subject to the University of Arkansas Board of Trustees' approval for $2,590,000.00. PASSED and APPROVED on 9/3/2019 Attest: Sondra E. Smith, City Clerk Trey*urUr1w,,, V, ,R K J CITY -111- G Page 1 Pr"Wed 646wle f ,0N ; C,````. City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2019-0545 Agenda Date: 9/3/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 16 FAYETTEVILLE FIRE STATION AND POLICE HEADQUARTERS: A RESOLUTION TO APPROVE THE REAL ESTATE AGREEMENT (OFFER AND ACCEPTANCE) BETWEEN THE CITY OF FAYETTEVILLE AND THE DIVISION OF AGRICULTURE OF THE UNIVERSITY OF ARKANSAS TO PURCHASE ABOUT 11.6 ACRES LOCATED NORTH OF DEANE STREET AND EAST OF PORTER ROAD FOR THE CONSTRUCTION OF A NEW FAYETTEVILLE FIRE STATION AND POLICE HEADQUARTERS COMPLEX FOR TWO MILLION FIVE HUNDRED AND NINETY THOUSAND DOLLARS ($2,590,000.00), PLUS ANY ASSOCIATED CLOSING COSTS, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville needs to purchase property for a fire station and the new police headquarters complex and has decided that about 11.6 acres of the Division of Agriculture of the University of Arkansas Farm property would be ideal for the needs of the Police and Fire Departments; and WHEREAS, the Division of Agriculture has gracioulsy agreed to sell a 11.6 parcel to the City of Fayetteville to be divided betwen the Police Department and Fire Department, subject to the University of Arkansas Board of Trustees' approval for $2,590,000.00. City of Fayetteville, Arkansas Page 1 Printed on 9/4/2019 Paul A. Becker Submitted By Added at Agenda Session 8/27/19 City of Fayetteville Staff Review Form 2019-0545 Legistar File ID 9/3/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/26/2019 Submitted Date Chief Financial Officer Finance & Internal Services Department Division / Department Action Recommendation: A Resolution authorizing the approval of the Land Sale Agreement with the University of Arkansas System Division of Agriculture for the purchase of 11.6 acres located between Deane and Porter Roads for construction of a new Fire Station #8 and Police Headquarters for $2,590,000, plus any associated closing costs; and approval of a Budget Adjustment. Budget Impact: 4609.860.7900-5805.00 4609 - Police Projects 2019 Bonds 4610.860.7108-5805.00 4610 - Fire Projects 2019 Bonds Account Number 46090.7900.8050 46100.7108.8050 Project Number Budgeted Item? Yes Fund Police Projects/Police Headquarters Fire Projects/Fire Station #8 Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? Yes Budget Adjustment Purchase Order Number: Change Order Number: Original Contract Number: Comments: Remaining Budget Project Title $ 49,629,778.00 $ 485,746.00 49,144,032.00 $ 2,590,000.00 $ 46,554,032.00 Previous Ordinance or Resolution # Approval Date: V20180321 ,i CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 3, 2019 TO: Mayor and City Council FROM: Paul A. Becker, Chief Financial Officer DATE: August 26, 2019 CITY COUNCIL MEMO SUBJECT: A Resolution authorizing the approval of the Land Sale Agreement with the University of Arkansas System Division of Agriculture for the purchase of 11.6 acres located between Deane and Porter Roads for construction of a new Fire Station and Police Headquarters RECOMMENDATION: A Resolution authorizing the approval of the Land Sale Agreement with the University of Arkansas System Division of Agriculture in the amount of $2,590,000 for the purchase of 11.6 acres located between Deane and Porter for the construction of a new Fire Station and Police Headquarters, plus associated closing costs and taxes. BACKGROUND: Fayetteville voters approved the public safety bond question in the 2019 bond initiative, which included 3 new fire stations and a new police headquarters. Phase 1 funding for the bond includes the purchase of land and construction of 2 fire stations and the police headquarters. The Fayetteville Fire Department has researched various locations for new fire station placements. The Deane and Porter road property is in the area identified to help improve response times and quality response efforts near the Interstate 49 interchange. Additionally, the Police Department determined through a recent facilities study approved by the City Council that a minimum of 10 acres was required for police specific facilities. During the course of this study, the City and Police Department reviewed a number of land parcel sites throughout the city, and the 11.6 acre parcel between Deane and Porter was identified as having the most potential to accommodate the current and future land needs of the FPD. The net total property for this location is 11.6 acres. The Fayetteville Fire Department will be utilizing 1.6 acres of this property; the Fayetteville Police Department will use the remaining 10 acres. DISCUSSION: The City and the University of Arkansas System Division of Agriculture negotiated to purchase the land according to the attached land sale agreement. The City Attorney and Mayor have recommended it is best to present the Land Sale Agreement to the City Council for approval before the Agreement is submitted to the U of A Board of Trustees on September 12th, 2019. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: The budget for this project will be approved on the September 3rd, 2019 City Council meeting prior to this item. The attached Budget Adjustment will be moving $2,719,000 ($2,590,000 for the actual land purchase + $129,000 to cover any closing costs) from the Police Bond Project and Fire Bond Project unallocated budget programs. Any residual budget will revert back to the unallocated budget once all costs have concluded. Attachments: Budget Adjustment, Real Estate Agreement (Offer and Acceptance) Real Estate A r•eement Offer and A.cce tarnce The Board of Trustees of the University of Arkansas, acting on behalf of the Division of Agriculture ("Seller"), makes the following offer to sell the property described herein to the City of Fayetteville, Arkansas ("City"): 1. The University officer signing this offer is authorized to extend an offer to sell. However, only the Board of Trustees of the University of Arkansas holds the authority to convey real property. Accordingly, the Seller's obligation to sell the Property (as defined below) is conditioned upon approval of a resolution by the Board of Trustees of the University of Arkansas, confirming the Board's consent to conveyance of the Property and the terms of this agreement. 2. Subject to and on the terms and conditions set forth herein, Seller offers to sell, and the City offers to purchase approximately 11.6 acres (the "Property") located at the northeast corner of North Porter Road and West Deane Street along with seeelia M� bgasgw Offie f 23 r the, eompletes bSPN 3. Prior to closing the City shall obtain a land survey of the Property, at City's sole expense, in order to establish a more precise description of the Property's boundaries and access easement. 4. The City intends to divide the Property into lots for a new fire station and police headquarters complex. All surveying work, and any necessary approvals, and all associated costs for any lot splits, lot line adjustments or other subdivisions shall be the responsibility of the City. The Seller will cooperate with the City, at no cost to Seller, in completion of the required surveying. 5. At closing the City will pay to Seller the cash sum of Two Million Five Hundred and Ninety Thousand Dollars ($2,590,000.00) for the Property. The Seller and the City will each pay one half of the closing agent's fee. The City will pay the recording fee for the general warranty deed and the cost of any revenue stamps. The City will prepare the general warranty deed and any other closing documents required by City at closing, Seller hereby authorizes the closing agent to have prepared any release deeds, affidavits or other documents required to be executed by Seller at closing. 6. Conveyance shall be made to the City, by general warranty deed, subject to restrictions and easements which, in the City's judgment, do not materially affect the merchantability of the Property or the City's intended use of the Property. Pursuant to Ark. Code Ann. § 22-6-1 13, Seller shall retain a one-half (1/2) ownership interest in and to all the oil, gas, and other minerals in or under the Property. Seller shall also execute at closing an affidavit stating in substance that the Property is not subject to adverse possession claims and that no work or materials have been performed on the Property within one hundred and thirty (130) days of closing for which a lien might be asserted. Possession of the Property shall be delivered to the City at closing, free of any tenancies or other third party possessory rights. 7. Seller shall furnish the City, at Seller's cost, an owner's title insurance policy in the amount of the purchase price, reflecting merchantable title and issued on terms and conditions satisfactory to the City. If objections are made to Seller's title, Seller shall have a reasonable time, not to exceed thirty (30) days from the date of City's written notification of such objections, to cure such defects to the City's satisfaction. If such defects are not cured within thirty (30) days, the City may terminate this agreement or may, at its election, take title subject to any such defects. 8. Prior to closing, the City may inspect the Property for environmental hazards and may obtain at its cost a Phase 1 environmental report performed by a licensed engineer or firm selected by the City, If the inspection or report discloses environmental hazards requiring remediation, the City will have the right to terminate this agreement on written notice to Seller unless Seller elects to pay the cost of remediation or to reduce the purchase price by the cost of remediation. 9. No general taxes are currently owed on the Property, as Seller is immune from ad valorem taxation. Any general taxes and special assessments incurred on the Property as of the closing date and thereafter shall be the responsibility of the City. 10. The City represents to Seller that the City has full power and authority to execute this real estate agreement subject to ratification or rejection by the Fayetteville City Council. Seller represents that it has full power and authority to convey the Property and that there are no options, rights of first refusal or contracts, written or oral, for the sale of the Property or which otherwise would affect Seller's obligations hereunder. Seller further represents that the individual signing on its behalf is authorized to sign this agreement. 11. The closing date shall be at a time and place established by the City and is estimated to occur within sixty (60) days following the date the Board of Trustees of the University of Arkansas approves a resolution confirming this agreement. The parties may extend the closing date beyond such time if necessary to complete title requirements, inspections, review or approvals. Possession shall be delivered to the City upon closing. 12. All structures, improvements, fixtures and attached equipment, if any, are included in the purchase price. 13. The City will inspect the Property prior to closing and are not relying upon any warranties, representations or statements of Seller, if any, as to the age or condition of the improvements, other than those specified in this agreement. 14. Each party covenants that no broker has been involved in this real estate agreement and that no commission is or will be owed on the sale of the Property. 15. This real estate agreement contains the entire agreement of the parties and may not be changed, modified or amended except by a written instrument signed by both parties. 16. There are no agreements or representations, written or oral, with respect to the subject matter of this agreement which are not contained herein. 17. Seller shall provide to the City any disclosure required by Governor's Executive Order 98-04. 18. Notices required by this agreement shall be in writing, and shall be delivered via mail, personal delivery, or email, to the following: If to the City of Fayetteville: If to the Seller: City of Fayetteville University of Arkansas Division of Agriculture Attn: Mayor's Office Attn: Dr. J.F. Meullenet 113 W. Mountain Street RTAS 215 Fayetteville, AR 72701 1371 Altheimer Drive Fayetteville, AR 72704 With a copy to: Office of General Counsel University of Arkansas System 2404 North University Little Rock, AR 72207 19. For purposes of executing this agreement, a scanned or facsimile signature shall be as effective an as actual signature. 20. All understandings and agreements heretofore existing between or among 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 all of the parties hereto and shall apply to and bind the successors and assigns of all of the parties hereto. 21 This agreement may be executed in two or more counterparts, each of which shall be deemed an original. The Board of Trustees of the University of Arkansas, acting on behalf of the University of Arkansas Division of Agriculture By: Dr. WMark J. Cog ran, Vice President, Division of Agriculture Date: J' g° -j Attest: By: Sondra Smith, City Clerk Date: �' O 3 ,20/9.����.i,CLER L .�� •' C,T' • ��'' y so 1�7,(� O •� ''�� �.•.� SAS •. �. O.U. i a l l l d S l O l ��u NI.iNfN)11 'M f l l _ NOISIA10 ON1833NION3 cN a I SVSNVAHV'. N SVSNVNNV J0 J,IISNMNn 3��Ih31Aouuio s� as aya$g� s�88� ss;g` s9�'ay� 0_55 ri�$sss oofi�o. �R ��3557 a 0 m '3nv r.nenrw < � a I lira '�w wvRs oNlr sac=_ o � e maa - ON � ✓n _ � io N Z. 3 � t0 '00 N O Y p� .IOZ6Y 3 dY SLtA N 04 all lll:r F! N-13 M-17 NY K N M -It— F �2 T � � N City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number Non -Departmental (800) 2019 /Org2 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Land acquisition of $2,590,000 ($357,200 Fire Station #8 / $2,232,800 Police) + Contingency $129,000 ($17,800 Fire Station #8 / $111,200 Police). RESOLUTION/ORDINANCE COUNCIL DATE LEGISTAR FILE ID# 9/3/2019 2019-0545 KevLw Spri+ujer 8/26/2019 6:25 PM Budget Director TYPE: JOURNAL #: GLDATE: CHKD/POSTED: Date D - (City Council) TOTAL Account Number - - Increase / (Decrease) Expense Revenue Proiect.Sub# Project Sub.Detl AT x.20190816 Account Name 4610.860.7108-5805.00 357,200 - 46100 7108.8050 EX Land Acquisition 4610.860.7108-5911.99 4610.860.7999-5899.00 17,800 - (375,000) - 46100 46100 7108.8050 7999 EX EX Contingency - Capital Project Unallocated - Budget 4609.860.7900-5805.00 4609.860.7900-5911.99 2,232,800 - 111,200 - 46090 46090 7900.8050 7900.8050 EX EX Land Acquisition Contingency - Capital Project 4609.860.7999-5899.00 (2,344,000) - 46090 7999 EX Unallocated - Budget H:\Budget Adjustments\2019_Budget\City Council\09-03-2019\2019-0545 BA Bonds Police Building Fire Station 8 Land Acclusitior0d"