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HomeMy WebLinkAbout12080RESOLUTION NO. 12080 A RESOLUTION APPROVING THE SALE AND PURCHASE OF PROPERTY FROM ERIK HENDRICKSON, APPROVING THE NOTICE TO EXERCISE PURCHASE OPTION RELATING TO THE LAKE MINNEQUA PHASE 2 PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID NOTICE TO EXERCISE PURCHASE OPTION AND ALL OTHER DOCUMENTS ASSOCIATED THEREWITH BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City Council hereby authorizes the purchase of the property described as Lots 24 + 25 BLK 4 Sunnyside in accordance with the terms set forth in that certain Option Agreement dated January 14, 2011, copies of which are attached hereto, having been approved as to form by the City Attorney. SECTION 2. The Notice to Exercise Purchase Option dated February 14, 2011 for the property described as Lots 24 + 25 BLK 4 Sunnyside, a copy of which is attached hereto is hereby approved. SECTION 3. The President of the City Council is hereby authorized to execute and deliver the aforesaid Notice to Exercise Purchase Option together with all other documents associated therewith in the name of and on behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 4. Funds in the amount of $5,000 for the property included in the aforesaid Notice to Exercise Purchase Option are available from Project Account No. CP1020. INTRODUCED: February 14, 2011 BY: Leroy Garcia Background Paper for Proposed RESOLUTION DATE: FEBRUARY 14, 2011 AGENDA ITEM # M-3 DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT JERRY M. PACHECO, DIRECTOR TITLE A RESOLUTION APPROVING THE SALE AND PURCHASE OF PROPERTY FROM ERIK HENDRICKSON, APPROVING THE NOTICE TO EXERCISE PURCHASE OPTION RELATING TO THE LAKE MINNEQUA PHASE 2 PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID NOTICE TO EXERCISE PURCHASE OPTION AND ALL OTHER DOCUMENTS ASSOCIATED THEREWITH ISSUE Should City Council approve the Resolution authorizing the execution of the Option to Purchase property relating to the Lake Minnequa Phase 2 project? RECOMMENDATION Approval of the Resolution. BACKGROUND This Resolution authorizes the purchase of property in accordance with an Option Agreement (“Option”), and authorizes execution and delivery of the Notice to Exercise Purchase Option for as Lots 24 + 25 BLK 4 Sunnyside. property owned by Erik Hendrickson described See attached map. The property is located in the southwest corner of the Lake Minnequa park project at the corner of Reno Avenue and Gretna Street. The property will be utilized for the open turf area that will be developed at the park. The City entered into an Option for the property on January 14, 2011. The purchase price set in the Option is $5,000 with $500 to be paid in earnest money and the balance of $4,500 to be paid at closing. FINANCIAL IMPACT A purchase price of $5,000 plus associated closing costs would be paid for the property. The Account CP1020. funds to purchase the property would be provided from Project Hendrickson Property Map r. ,., ' : ' " 7 ' . 1 '.." S C ,,Lt f -,.-„,.,,,,..„,,,-,..,4„.„„,„? . „, ., , . ,„,,, , . , ,,,,, , 2„.,, , a Lake M = , n 1 Park & Open Space IOWA p p t'. �`" "1 , 1 ' tilt , t , G � -, I.L I N OJS tli a ELK '1 MARYLAND k 0. w a STREATOR >- , '.. - ...'' J L. ,P RENO _ .. ... . 1. -. Legend Lake Minnequa Park ! _ x - @ _ ® Hendrickson Property �� R , i OPTION AGREEMENT Date December 30, 2010 SELLER. Erik Hendrickson PO Box 231 Denali Park, AK 99755 -0231 PURCHASER. City of Pueblo, a Municipal Corporation 1 City Hall Place Pueblo, CO 81003 Seller hereby gives and grants to Purchaser an exclusive option to purchase the following described real property in the County of Pueblo, Colorado, to wit: LOTS 24 + 25 BLK 4 SUNNYSIDE , together with all appurtenances thereto and improvements thereon (the "Property"). If Purchaser elects to exercise its option to purchase the Property, Purchaser must notify Seller of its election to do so on or before March 1, 2011 ( "Notification Date ") which notice must be in wnting and given as provided in Paragraph 13 of this Agreement. In such event, the total purchase price for the Property shall be $5,000 00, which shall be paid as follows. $500 00 in the form of a check, as an earnest money deposit and part payment of purchase pnce ( "Earnest Money ") Said Earnest Money will be deposited in escrow with a mutually agreed upon financial institution within 5 days of Purchaser's notice of election to purchase and shall be paid to Seller at the time of closing. $4,500 00, to be paid by Purchaser at closing in good funds, which includes cash, electronic transfer funds, certified check, savings and loan teller's check, and cashier's check ( "Good Funds ") If the Option is not exercised on or before the Notification Date, the option money paid hereunder will not be refunded to the Purchaser, but shall be retained by the Seller, and all obligations of both the Purchaser and the Seller arising under this Agreement shall terminate. In the event the option is exercised, the Property will be transferred and the closing will take place upon the following terms and conditions. 1 1 The purchase price shall include all improvements upon the Property, together with all mineral rights and water rights appurtenant to the Property which are owned by Seller 2. Seller will furnish to Purchaser, at Purchaser's expense, a current commitment for owner's ALTA title insurance policy in an amount equal to the purchase price on or before ten (10) days after Purchaser notifies Seller of its intent to purchase the Property Copies of all documents referred to in the title commitment shall be provided to Purchaser, at Seller's cost, along with the commitment. Purchaser shall have the nght to inspect the title commitment and such documents and may provide written notice to Seller of any objections Purchaser may have to title or of any other unsatisfactory title condition shown by the title documents prior to ten (10) days before date of closing. If any such objection or unsatisfactory title condition is not corrected prior to five (5) days before date of closing, then Purchaser shall have the nght to terminate this contract and demand and receive the return of all monies paid hereunder 3 Seller will furnish, at Purchaser's expense, an ALTA title insurance policy to Purchaser at closing or as soon thereafter as possible. Such title policy shall have owner's extended coverage (title insurance with standard exceptions deleted and including gap coverage) at Seller's expense. 4 The date of closing shall be the date forty-five (45) calendar days after Purchaser gives notice to Seller of its intent to purchase the Property, or such later date as the parties may agree in writing. The location, date and time of closing shall be mutually agreed upon by Seller and Purchaser The title company's fees for performing the closing shall be divided equally between Purchaser and Seller 5 Seller shall convey fee simple title to the Property by a good and sufficient general warranty deed, free and clear of all taxes and encumbrances, except as provided for in Paragraph 7 below If title is not acceptable to Purchaser, or if the Property should be damaged pnor to closing, Purchaser may elect to demand and receive the return of all monies paid hereunder In the event Purchaser demands and receives the return of all monies paid hereunder pursuant to this paragraph number 5, all obligations of both Purchaser and Seller as set forth in this Agreement shall terminate. 6 Any real estate commission due upon the sale of the Property to Purchaser shall be paid by Seller Purchaser represents to Seller that it is not a party to a contract which requires the payment of any real estate commission upon sale of the Property to Purchaser 7 The Seller represents and warrants to Buyer as follows (a) Seller has full power capacity and authority to execute and deliver this Agreement and all other documents required to be executed and delivered by Seller under this Agreement and to perform its obligations hereunder 2 (b) This Agreement has been, duly authorized, executed and delivered by Seller and constitutes the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms. (c) Seller is not a party to any judicial, administrative, arbitration or other similar proceedings relating in any manner to the Property or to Seller's interest therein or that may detrimentally affect Seller's ability to perform its obligations under this Agreement or the ability of persons who acquire portions of the Property to develop, own or operate the Property Seller has not received notice of (and to Seller's knowledge there is no basis for) any pending or threatened claims, actions, suits or other proceedings of the nature described in the immediately preceding sentence, nor are any such claims, actions, suits or other proceedings contemplated by Seller (d) To Seller's knowledge, there are no violations of laws, rules, regulations, ordinances, codes, covenants, conditions, restrictions, instructions or agreements applicable to the Property Seller has not received notice from any governmental or other agency or any other person with respect to any such violations concerning the Property (e) Other than this Agreement, there are no contracts or other obligations outstanding for the sale, lease or transfer of all or any part of the Property (f) None of the Property is included in the U S Department of Agriculture Conservation Reserve Program. (g) There is no default, nor has any event occurred which, with the passage of time, the giving of notice or both, would constitute a default under any agreement, contract, mortgage, deed of trust or other instrument which relates to Seller or the Property or which affects the Property in any manner (h) To Seller's knowledge (i) the Property is and at all time has been in compliance with all applicable state and federal environmental laws, regulations, ordinances, rules and orders (collectively, "Environmental Laws "), (ii) there are no pending or threatened judicial or administrative proceedings of any kind with respect to the Property alleging the violation or potential violation of any Environmental Law nor are there any pending or threatened investigations of any matters relating to any Environmental Laws with respect to the Property; (iii) there has been no release or threatened release of any hazardous, toxic or otherwise regulated substance, waste, contaminant or material (collectively "Hazardous Materials "), as such terms are defined in any applicable Environmental Law, on, in or at the Property, or any part thereof; (iv) no portion of the Property or any adjacent property has been used as a waste disposal site, a storage site for solid wastes or the location of above ground or underground fuel or storage tanks, and (v) no Hazardous Materials are currently present on or have at any time been stored or used on the Property 3 1 Seller shall indemnify and hold Buyer harmless and defend Buyer from any loss, liability or expense, including reasonable attorneys' fees, incurred by Buyer, or any claim made against Buyer, by reason of Seller's breach of any of the foregoing representations or warranties, all of which shall survive Closing. 8 Dunng the term of this Agreement, the Purchaser, its agents, employees, contractors, and engineers, shall have the nght from time to time to enter upon the Property at their nsk for the purpose of inspecting the same and conducting surveys, engineering studies, borings, soil tests, investigations, feasibility studies and the like. Within a reasonable time after such entries Purchaser shall, to the extent practicable, restore the Property to its pnor condition. 9 Seller represents that Seller has no knowledge of any hazardous matenals or environmental contamination on the Property Purchase is subject to an environmental assessment satisfactory to Purchaser of hazardous substances being completed by Purchaser or its agent at Purchaser's expense pnor to closing, and a finding that there are no hazardous substances on the Property If notice is not provided to Seller by Purchaser on or before three days prior to closing then this provision shall be deemed to have been met. 10 (a) In the event of a default hereunder by Purchaser, all obligations of both Purchaser and Seller arising under this Agreement shall terminate and Seller shall be entitled to keep the option money without accounting to Purchaser therefor, and if the option to purchase has been exercised by Purchaser and the Earnest Money has been deposited in escrow, the title company holding such escrow shall deliver such earnest money to Seller and Seller shall be entitled to keep and retain such Earnest Money without accounting to Purchaser therefor, as Seller's sole remedy, except as provided in (c) below (b) In the event Seller defaults under the terms and conditions hereof, Purchaser may demand and receive the return of the option money and earnest money paid hereunder, or Purchaser may elect to treat this Agreement as being in full force and effect and Purchaser shall have the right to an action for specific performance of this Agreement or damages, or both specific performance and damages. (c) In the event a civil action is filed regarding the terms of this Agreement, the prevailing party shall be entitled to recover all costs and expenses, including reasonable attorney's fees. 11 This Agreement shall not be effective unless accepted in writing by Seller, as evidenced by Seller's signature below, and Purchaser receives notice of such acceptance on or before January 30, 2011 12. Any notice required or permitted to be given or delivered under this Agreement shall be in wasting and shall be given by either personal delivery, by the United States mail, postage prepaid, or by national overnight couner service 4 (a) If to Purchaser, addressed to Scott W Hobson Assistant City Manager for Community Investment 211 East "D" Street Pueblo, CO 81003 With a copy to City Attorney 503 N Main Street, Suite 203 Pueblo, CO 81003 (b) If to Seller, addressed to Erik Hendrickson PO Box 231 Denali Park, AK 99755 -0231 Notice shall be deemed to have been given on the date of personal service, or if mailed or given by overnight couner service, on the day after the date of mailing or delivery to the overnight couner service. 13 This Agreement and Purchaser's obligation hereunder are subject to and contingent upon. (a) the condition of the Property and title thereto being satisfactory to Purchaser in its sole discretion, and (b) funds in the full amount of the Purchase price having been appropriated and available for the purchase. If any such contingency is not met before date of closing, this contract, at the option of Purchaser, shall terminate and the Earnest Money shall be returned to Purchaser 14 Seller represents and warrants to Purchaser that (a) the Property has never been used as a landfill or solid waste disposal site, (b) no hazardous substance or other toxic material or contamination is present in, on, or under the Property, (c) there are no underground storage tanks on the Property and all previously removed underground storage tanks have been removed in accordance with applicable law, (d) there is no condition with respect to the Property, or any part thereof, which violates any law, rule, regulation, code, order, decree or ruling of any city, county, state or federal government, agency or court, (e) Seller has not received notice, written or otherwise, from any governmental or quasi - governmental agency requiring the correction of any condition with respect to the Property, or any part thereof, and (0 Seller has not received notice of, or has no other knowledge or information of, any litigation or condemnation action with respect to the Property, or any part thereof. 5 15 Seller agrees to indemnify and hold Buyer harmless from any and all brokers' and sales agents' fees and commissions, and for all costs and expenses, including reasonable attorney fees, incurred in connection with any claim for any such fees or commission, except as to brokers or agents with whom Buyer has contracted directly 16 No subsequent modification of any of the terms of this Contract shall be valid, binding upon the parties, or enforceable unless made in writing and signed by the parties. 17 This Contract constitutes the entire agreement between the parties relating to the subject matter hereof, and any prior agreements pertaining thereto, whether oral or written, have been merged and integrated into this Contract. PURCHASER City of Pueblo, a Municipal Corporation By Scott W Hobson Assistant City Manager for Community Investment Date /.273 SELLERS Erik Hendnckson By 4/es /1 Erik Hendrickson Date 1 ! 14/ 2 °11 6 STATE OF Colorado ) County of Pueblo ) The foregoing instrument was acknowledged before me this 3054` day of , 20 /Q , by Scott W Hobson as Assistant City Manager for Community Investment of Pueblo, a Municipal Corporation, Pueblo, Colorado My commission expires d /3 , 7t /.3 Witness my hand and official seal. 0 Notary Public STATE OF 4(A-9 e ) County of )41,frti ) The foregoing instrument was acknowledged before me this / day of -co y , 20 ) ( , by Erik Hendrickson. My commission expires N G 77 , za 2- Witness my hand and official seal. _ , 0, Notary Public 1 NOTARY PUBLIC %iJ At 3 20 P c3 * -\ �� i viii � ���```� NOTICE TO EXERCISE PURCHASE OPTION February 14, 2011 Erik Hendrickson P O Box 231 Denali Park, AK 99755 -0231 VIA FedEx Dear Mr Hendrickson. Notice is hereby given that the City of Pueblo, a Municipal Corporation ( "Buyer "), under that certain Option Agreement dated the 14 day of January, 2011, does hereby exercise its purchase option under said Option Agreement to purchase the property located within the County of Pueblo, State of Colorado, more particularly described as Lots 24 + 25 BLK 4 Sunnyside Buyer is prepared to deposit the earnest money of five hundred dollars ($500 00) in escrow with a financial institution agreeable to you, or with your approval, with a title company, in accordance with the terms of the Option Agreement. Please advise us Mr Scott Hobson, 211 E "D" Street, Pueblo, Colorado 719 -553 -2244 promptly of your choice of institution or title company City o ' ueblo, l ►► M'' unici sal Corporation By , i1 President of Ci Council I i