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RESOLUTION 2015-11

RESOLUTION NO. 2015-11
A RESOLUTION AUTHORIZING EXECUTION AND
TRANSMITTAL OF OFFER AND ACCEPTANCE TO
PURCHASE TRIANGLE PROPERTY ON MAIN DRIVE
WHEREAS, the City made an offer (ratified by Resolution 2015-10) to purchase
approximately two (2) acres of land north of Main Drive and East of the Arkansas-Missouri
railroad tracks;
WHEREAS, said offer was rejected by Sager Creek Vegetable Company with a response
of"$125,000.00 firm and as is"; and,
WHEREAS, the City would be benefitted in numerous ways if that parcel of land could
be acquired at a reasonable price.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF JOHNSON, ARKANSAS, that:
SECTION 1: There should be transmitted to the real estate agency handling the offer for
sale of 1.9 acres on the north side of Main Drive for Sager Creek Vegetable Company, by the
Mayor an offer and acceptance seeking to purchase the parcels identified in such offer for sale.
SECTION 2: That such offer and acceptance should be expressly conditioned on Buyer
paying for a Phase 1 environmental assessment which is acceptable to the City Council.
SECTION 3: That a copy of such offer and acceptance is attached hereto with blanks for
the offer price and other terms to be filled in as determined by the Council and as recorded in the
minutes of the special Council Meeting held at 5 :.Ji).M. on July __zl_, 2015.
SECTION 4: That such completed offer and acceptance shall then be transmitted to the
agent for Sager Creek Vegetable Company.
Municipallcoj Triangle Property Acceptance Res 072015
SECTION 5: :Upon acceptance of the Offer and Acceptance by Sager Creek Vegetable
Company, the Mayor is authorized to order the Phase 1 environmental assessment, such shall be
paid for from the l::t-tntr-td fund.
PASSEDANDAPPROVEDthis Z..) dayof &~ , 2015.
CITY OF JOHNSON, ARKANSAS
~~~ayor
ATTEST:
MunicipaVcoj Triangle Property Acceptance Res 072015
REAL ESTATE CONTRACT
(Offer and Acceptance)
July Z3, 2015
1. Buyer: The City of Johnson, Arkansas, a Municipal Corporation, Offers to buy, subject
to the terms set forth herein, the following property.
2. Property Description And Address: See Exhibit "A" hereto. Also known as Parcel No.
785-18067-000 and Parcel No. 785-18069-000 Washington County, AR.
3. Purchase Price: The Buyer will pay $100,000.00 for the property and improvements at
Buyer's closing. The purchase price shall be paid in cash at closing, credit for earnest
money deposit of$1,000.00 shall be given at that time.
4. Earnest Money: Buyer herewith tenders a check for $1,000.00 to be deposited upon
acceptance as earnest money, which shall apply on purchase price or closing costs. If
title requirements are not fulfilled or Buyer elects to cancel agreement pursuant to No. 14
hereinbelow, it shall be promptly refunded to Buyer. If Buyer fails to fulfill its
obligations, the earnest money shall become liquidated damages.
5. Conveyance: Conveyance shall be made to Buyer, or
warranty deed, except it shall be subject to recorded
which do not materially affect the value of the property.
6. Title Insurance: The owner(s) of the above nrr>nP,,...,
furnish, at Seller's cost, a policy of title insurance in
7. Prorations: Taxes and special assessments due on or
by Seller. Taxes and special assessments shall be
8. Closing: The closing date is estimated to be on or
However, any unforeseen delays such as clearing
contract.
10. Fixtures and Attached Equipment: There are no fixtures or attached equipment.
11. This offer is expressly contingent upon:
12.
13.
14.
1) Buyer paying for survey which certifies 1. 9 acres of real estate to be con":'yed;
2) Buyer to pay for appraisal indicating FMV of no less than $ lctJ 1 C(j). f.X;I
3) Buyer to obtain a Phase 1 environmental assessment indicating no contaminants;. ~j7-
4) Financing for term not to exceed five (5) years at an interest rate not to exceed !:f.:15.'o
per cent per annum.
Inspections and Repairs: Except as mentioned above, Buyer certifies that Buyer has
inspected the property and is not relying upon any warranties, representations or
statements of Seller as to age or condition of the property.
Risk of Loss: The risk of loss or damage to a property by fire or other casualty
occurring up to the time of Buyer's receipt of possession is assumed by Seller.
Cancellation: Upon B[r receiving notice that this Offer has been accepted by Seller,
Buyer will within days order the survey, the appraisal and the Phase 1
environmental assessment and formally apply for financing (if necessary). Within Jll
days of receiving the survey, the appraisal report, the environmental assessment or the
results of the financing request Buyer shall notify Seller as each contingency is
eliminated. If Buyer deems the survey unacceptable, the appraisal report unacceptable,
the environmental assessment unacceptable or if Buyer is refused financing Buyer may
elect to cancel this agreement and Seller shall be advised of such decision within ~
hours of such decision.