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HomeMy WebLinkAbout09057 City Clerk’s Office Item # R-7 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 11, 2016 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN THE COLORADO DEPARTMENT OF TRANSPORTATION, AN AGENCY OF THE STATE OF COLORADO AND PUEBLO, A MUNICIPAL CORPORATION AND WL ENTERPRISES, LIMITED, A NEW MEXICO LIMITED PARTNERSHIP RELATING TO THE RELOCATION OF THE REGION 2 HEADQUARTERS OF THE COLORADO DEPARTMENT OF TRANSPORTATION AND AUTHORIZING THE PRESIDENT OF THE COUNCIL TO EXECUTE SAID AGREEMENT SUMMARY: Attached is a proposed Ordinance approving and authorizing the President of City Council to sign a Purchase and Sale Agreement between the Colorado Department of Transportation (“CDOT”), the City of Pueblo and WL Enterprises. PREVIOUS COUNCIL ACTION: None. BACKGROUND: WL Enterprises is the owner of approximately 12.02 acres of vacant land located on Outlook Boulevard in the northern portion of the City of Pueblo. WL Enterprises is willing to convey the 12.02 acres of land to the City. The attached Purchase and Sale Agreement provides that the City of Pueblo would then convey the 12.02 acres of land to CDOT for the construction and development of related buildings which CDOT intends to use to relocate its Region 2 headquarters. The development will include an office building of approximately 42,000 square feet and heavy duty automotive maintenance facilities and warehouse storage of approximately 56,000 square feet. FINANCIAL IMPLICATIONS: The City of Pueblo has agreed to fund certain development costs including the design and construction of an estimated $341,000 in potable water supply lines and $410,000 for sanitary sewer lines as well as other stormwater, roadway and sidewalk improvements to enable development of the property. The City has also agreed to construct an extension of Outlook Boulevard, anticipated to be approximately 750 feet in length and approve the roadway to a 5- lane, 60 foot cross-section. It is anticipated that the City’s total expenditures for this project will be approximately $2 million. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, CDOT may ultimately decide not to re-locate its Region 2 headquarters in the City of Pueblo. RECOMMENDATION: Approve the Ordinance. Attachments: Proposed Ordinance and Purchase and Sale Agreement ORDINANCE NO. 9057 AN ORDINANCE APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN THE COLORADO DEPARTMENT OF TRANSPORTATION, AN AGENCY OF THE STATE OF COLORADO AND PUEBLO, A MUNICIPAL CORPORATION AND WL ENTERPRISES, LIMITED, A NEW MEXICO LIMITED PARTNERSHIP RELATING TO THE RELOCATION OF THE REGION 2 HEADQUARTERS OF THE COLORADO DEPARTMENT OF TRANSPORTATION AND AUTHORIZING THE PRESIDENT OF THE COUNCIL TO EXECUTE SAID AGREEMENT BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Purchase and Sale Agreement (“Agreement”) between the Colorado Department of Transportation, an agency of the State of Colorado (“CDOT”), the City of Pueblo, a Colorado municipal corporation and WL Enterprises, Limited, a New Mexico limited partnership, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver the Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance and the attached Agreement which are necessary and desirable to effectuate the transactions described therein. SECTION 3. This Ordinance shall become effective immediately upon final passage. INTRODUCED: October 11, 2016 BY: Ed Brown PASSED AND APPROVED: October 24, 2016 PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (the "Agreement") is made by and among; the COLORADO DEPARTMENT OF TRANSPORTATION, an agency of the State of Colorado created pursuant to Section 43-1-101, et seq., C.R.S. ("CDOT" or the "Purchaser"), the CITY OF PUEBLO, a Colorado home rule municipal corporation (the "City"), and WL ENTERPRISES, LTD., a New Mexico Limited Partnership, whose address is 4601 Eagleridge Place, Suite 110, Pueblo, CO 81008 (the "Seller''). The State, City and Seller are each referred to herein as a "Party" and collectively as the "Parties:' RECITALS A. Seller is the owner of that certain property located in Pueblo County, Colorado, consisting of approximately 12.02 acres of vacant land located on Outlook Boulevard, Pueblo, Colorado 81008, being a part of a larger parcel (Parcel Number 0501000049 in the records of Pueblo County) provided by the Seiler for CDOT's consideration, more particularly described in the legal description and map attached hereto and incorporated herein as Exhibit A (the `.Property"). B. Seller is willing to convey all of Seller's right, title and interest in the Property to City, in exchange for good and valuable consideration, which is to be further set forth in a separate agreement between the Seller and City, and the receipt of which is mutually acknowledged by the Seller and City. C. CDOT is desirous of acquiring the Property from the Seller for the construction and development of a building and related uses to which CDOT intends to relocate its Region 2 headquarters, including, but not limited to, an approximately 42,000 square foot office building, approximately 56,000 square feet of heavy duty automotive maintenance facilities with interior wareliouse storage, and exterior storage of maintenance and fleet vehicles (collectively, the "Anticipated Use"), and City desires to facilitate such development by CDOT for the reasons set forth in these recitals. D. Pursuant to Sections 31-15-101(l)(c) and (d), C.R.S., City is empowered to enter into contracts, and to acquire, hold, lease and dispose of real property. E. Pursuant to Section 43-1-111, C.R.S., on behalf of CDOT, the chief engineer has the authority to take and hold and to contract to take and hold title to real property, or any interest therein, in the name of the Purchaser, whether such real property or interest is used, or intended to be used, for right-of-way or maintenance purposes or for any other purpose authorized by law. F. The City, in cooperation with CDOT and the Seller, has also agreed to fund certain development costs, including the design and construction of an estimated $34I,000 in potable water supply lines and $410,000 for sanitary sewer lines, as well as other storm water, roadway and sidewalk improvements to enable development of the Property. G. The Parties agree that the overall transaction is to be structured such that the Seller will initially transfer the Property to City at a purchase price of Zero Dollars ($0,00), and subject to the terms and conditions of this Agreement, City will then transfer the Property to CDOT, also at a purchase price of Zero Dollars ($0.00). AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Property C'onveygnee. Subject to the terms and conditions of this Agreement, Seller agrees to convey the Property to City, and City agrees to acquire the Property from Seller. Furthermore, subject to the terms and conditions of this Agreement, City agrees to subsequently convey the Property to Purchaser at Closing, and Purchaser agrees to acquire the Property from the City. All conveyances shall be subject to a reverter of the Property to the Seller in the event the transaction is not fully consummated as contemplated herein for the Purchasers Anticipated Use (as defined below). As used in this Agreement, the term "Property" includes all of the following: a. The real property depicted on Exhibit A together with all of Seller's right, title and interest, if any, in and to the following: (i) any existing infrastructure improvements. buildings and structures; (ii) all reversions, remainders, air rights, reversionary rights, easements, rights-of-way, appurtenances, licenses, tenements, and hereditaments; (iii) all minerals and mineral rights, including oil and gas, hard rock minerals and sand and gravel deposits ("Mineral Rights"), and (iv) all water and water rights, wells and well rights, ditches and ditch rights, reservoir and reservoir rights on, underlying or appurtenant to or associated with such real property, whether non -tributary, tributary, or not non -tributary, whether decreed or undecreed, and whether appropriated, conditional, appropriated, or unappropriated, together with all evidences of any such rights, including, without limitation, any well permits, and any stock in any applicable water or ditch companies (collectively "Water Rights") appertaining to or otherwise benefiting or used in connection with such real property or the improvements; b. All right, title, and interest of Seller in and to all existing warranties, contracts (including service contracts), governmental permits, licenses, certificates, approvals, entitlements and authorizations related to the Property (collectively, "Contracts and Permits"); C. All right, title and interest of Seller in and to all reports, studies and materials that relate to the condition, development or developability of all or any portion of the Real Property which are in the possession or control of Seller, including, but not limited to, subdivision plats, governmental approvals, soils reports, marketing or other studies, surveys, development plans, cost estimates, layouts, grading plans, flood plain analyses, environmental assessments, aerial photographs, topographical maps, oil, gas, mineral or water studies, analyses, evaluations or exploration reports, engineering studies, and other plans and studies of any kind (collectively, the "Reports"); and N d. Any and all other rights, privileges, and appurtenances owned by Seller and in any way related to, or used in connection with the operation and development of the Property to the extent that they are assignable (the "Intangible Property"). 2. lnvesti ation ofthe Pro ert . a. Initial Deliverics. Seller and City shall, within 10 days after the Effective Date, deliver or cause to be delivered to CDOT the following materials, to the extent any of the following related to the Property are in the possession or under the control of City or Seller (the "Due Diligence Materials"): (i) Title Documents. Copies of any existing title reports or policies for the Property together with any copies of documents referenced therein and any existing surveys of the Property. (ii) Reports. Copies of any reports, studies and documents that relate to the condition of all or any portion of the Property, including construction drawings, soils reports or environmental assessments, oil, gas, mineral or water studies, analyses, evaluations or oil and gas exploration reports. (iii) Notices. Copies of all notices that Seller has received from any governmental authority pertaining to any violation of any law, ordinance or regulation applicable to the Property. (iv) Other Information. If based on Purchaser's review, Purchaser believes that there are other documents in the possession or control of City or Seller which are related to the condition of the Property, Purchaser may deliver a written request to either City or Seller, as applicable, for such documents, and such Party shall, if such documents are available, promptly deliver any such documents to Purchaser. (v) Exclusions fr rn Dop Di i pence Mate is s. The Due Diligence Materials shall expressly exclude (i) any internal memoranda, attorney-client privileged materials or marketing materials, and (ii) any information which is the subject of confidentiality agreement between Sellers and a third party. (vi) tion to Provide Purchaser Access to Due Diligence Materials. If as to any specific Due Diligence Materials, providing copies would be substantially inconvenient for City or Seller, in lieu thereof, Purchaser, its agents, or employees shall be entitled to examine and make copies or prints of such items during all normal business hours, and shall provide facilities for these purposes. (vii) No lie r sentation or Warranty. . Purchaser acknowledges that neither City nor Seller make any representation or warranty with respect to the accuracy, completeness, reliability or source of any of the Due Diligence Materials or other documents or information provided to Purchaser. Purchaser acknowledges that some of the Due Diligence Materials may have been obtained from previous owners or users of the Property or third parties, and neither City nor Seller make any representation or warranty as to the reputation or reliability of the persons or entities preparing the Due Diligence Materials or the current accuracy of the Due Diligence Materials. Purchaser further acknowledges that, notwithstanding the delivery of the Due Diligence Materials, Purchaser will make its own investigation relative to the condition of the Property and will rely on its own investigation in determining the suitability of the Property for its use. b. Title Insurance Commitment. Purchaser shall obtain at its sole cost and expense a current title insurance commitment issued by Stewart Title Guaranty Company, (the "Title Company"), including the best available copies of all recorded exceptions to title referred to therein (collectively, the "Title Commitment") committing to insure such title to the Property in Purchaser by the issuance of a policy of owner's title insurance with owner's extended coverage on ALTA's most current owner's policy form in the amount of [ ] (the "Title Policy"). Purchaser shall pay the cost of the Title Policy and any extended coverage or endorsements requested by Purchaser including any endorsement necessary to cure Objections to title raised by Purchaser, including a Form 100.31 endorsements insuring over any oil and gas leases, and any mineral reservations included in the Permitted Exceptions and Form 103.1 endorsements over any mineral or ditch reservations contained in patents included in the Permitted Exceptions. C. ALTw Surma. Purchaser shall obtain at its sole cost and expense, within 30 days of recording by City of the subdivision plat contemplated in Paragraph 4.a. of this Agreement, a current monumented or pinned improvement survey of the Property, prepared by a surveyor licensed in Colorado and certified to Purchaser, Purchaser's counsel, Seller, Seller's counsel, the Title Company, and such other parties as Purchaser or Seller may reasonably request, in compliance with applicable law and the most recent Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys, including items 1, 2, 3, 4, 8, 9, 10, 11 and 13 of Table A thereto, and depicting the nearest driveway accessing the Property and any adjacent right-of-ways (the "Survey"). The Survey shall be prepared in form satisfactory to the Title Company for the issuance to Purchaser of the Title Policy. The Survey shall locate all improvements on the Property, show all immediately adjacent tracts and streets, show access to public roads or ways, show all encroachments on or from the Property, if any, and show, locate and describe all visible or recorded easements, building lines and utilities. All recorded easements shall be identified by the applicable recording information and all contiguous roadways shall show appropriate dedication information, The Survey shall contain the express certification that, except as specifically noted, there are no encroachments of lot or building lines and no obstructed easements, and that the Property is not located in any areas designated by any governmental authority or agency as being flood -prone or flood -risk areas pursuant to the Flood Disaster Act of 1973, as amended. d. Tale and Survey Ob"ectly ins. Purchaser shall review the Title Commitment and Survey as part of its investigation of the Property. Within fifteen (15) days following receipt of the Title Commitment and the Survey, Purchaser may submit to Seller, with copy provided to City, a notice (the "Objection Notice") specifying any objections to matters shown in the Title Commitment or matters disclosed by the Survey, (the "Objections"). Purchaser shall be deemed rd to have accepted any matter in the Title Commitment or the Survey to which Purchaser does not timely object, except any monetary liens caused by or on behalf of Seller. e. Seller's Right to Cure Objection m. If Seller receives a timely Objection Notice in accordance with the foregoing subsection, Seller shall provide Purchaser, with copy provided to City, notice within fifteen (15) days following receipt of any such Objection Notice, advising Purchaser as to whether Seller will elect to cure or attempt to cure any of Purchaser's Objections (the "Response'). The Parties agree to work together in good faith to cure any Objections; provided, however, Seller shall have no obligation to cure any Objections, but may elect to cure such Objections in its sole and absolute discretion, which cure may include providing the Title Company such assurances as the Title Company reasonably requires to insure Purchaser against any loss arising from such Objections so long as such insurance from the Title Company is acceptable to Purchaser. If Seller elects to cure any of the Objections, but is unable to complete the cure thereof at or before the Closing, Seller shall notify City and Purchaser of the same in writing, and Purchaser shall have the right to (a) defer the Closing Date for a reasonable period to the date requested by Seller to give the Parties an opportunity to cure such uncured Objections; (b) provide the Title Company such assurances as the Title Company reasonably requires to insure Purchaser against any loss arising from such Objections; or (c) terminate this Agreement by giving written notice thereof to the other Parties, in which case this Agreement will be terminated, and neither party shall have any further rights or obligations hereunder, except as otherwise provided herein. f. Purchaser's Right to Terminate for Title and. Survey Objections. If Purchaser provides the Objection Notice in a timely manner and Seiler does not agree to cure all of the Objections (other than any monetary lien or encumbrance on the Property caused by or on behalf of Sellers, which Sellers shall be deemed obligated to cure) or fails to provide the Response in a timely manner, Purchaser may elect to terminate this Agreement by giving notice thereof to Seller within ten (10) days after the Response deadline, in which case this Agreement will be terminated, and neither party shall have any further rights or obligations hereunder, except as otherwise provided herein. If Purchaser does not elect to terminate this Agreement within such ten (10) business day period, Purchaser shall be deemed to have waived all Objections. g. Permitted Exception . For purposes of this Agreement, `'Permitted Exceptions" shall mean (a) all matters shown in the Title Commitment and the Survey which have been accepted or deemed to be accepted by Purchaser; (b) liens for taxes and other governmental charges and assessments which are not yet due and payable and which are not delinquent; (c) liens of carriers, warehousemen, mechanics, materialmen and repairmen caused by, through or under Purchaser; (d) zoning, building, land use, or other regulations, ordinances or laws binding on the Property; and (e) liens incurred caused by, through or under Purchaser in connection with (i) workers' compensation, (ii) unemployment compensation, and (iii) other types of social security, not yet delinquent. h. Inspections and license to Enter. CDOT shall have the right to enter the Property, or to have its consultants or contractors enter the Property, as of the Effective Date, for the purposes of inspecting the physical condition of the Property and performing and tests, surveys, studies and analyses. All inspection fees, engineering fees and other expenses of any kind incurred by CDOT relating to the inspection of the Property will be solely CDOT's expense. CDOT shall be responsible for and promptly repair any damage that occurs to the Property as a result of such inspections. Seller shall cooperate with Purchaser in all reasonable respects in making such inspections. If CDOT is not satisfied with the physical condition of the Property, CDOT may terminate this Agreement by written notice given to Seller and City within sixty (60) days from the Effective Date hereof. (i) Insurance. Prior to any entry on the Property by Purchaser or its contractors, agents or representatives; Purchaser shall cause the activities of Purchaser and its contractors, agents or representatives on and about the Property to be covered by a policy of commercial general liability insurance in the amount of at least Two Million Dollars ($2,000,000) combined single limit naming Seller and any other parties reasonably requested by Seller as additional insureds. Purchaser shall deliver to Seller a certificate evidencing the existence of the foregoing insurance coverage prior to any entry on the Property by Purchaser or any its contractors, agents or representatives, and Purchaser shall keep such insurance in effect until one (1) year after the Closing Date or the date of termination of the Agreement if this Agreement is otherwise terminated. (i) Other than the warranty of title and the promises contained in this Agreement, neither City nor Seller have made and hereby disclaim any warranty or representation, express or implied, with respect to the Property or any aspect, portion or component of the Property, including, but not limited to: (a) the condition, nature, quantity, or quality of the Property, including, but not limited to, the quality of soils on or under the Property; (b) the fitness of the Property for any particular use; (c) the presence or suspected presence of hazardous materials on, in, under or about the Property; (d) the financial benefits, income, expenses, profits or losses to be achieved, derived or incurred as a result of the ownership, operation, leasing, renovating, or management of the Property; or (e) compliance with existing or proposed governmental laws or regulations applicable to the Property, or the further development or changing use thereof, including environmental laws and laws or regulations relating to zoning, land use, subdivision or buildings, or the existence of any approvals or authorizations of any kind or nature of or from any governmental authority. (ii) In entering into this Contract, Purchaser has not relied on any representation, statement, or warranty of City or Seller, other than the warranty of title and the promises contained in this Agreement, or anyone acting for or on behalf of City or Seller, and all matters concerning the Property have been or will be independently verified by Purchaser. If Purchaser purchases the Property, Purchaser agrees that it shall have relied entirely on its own investigation, examination and inspection of the Property and all matters pertaining thereto; Purchaser is purchasing the Property "AS IS, WHERE IS" "WITH ALL ITS FAULTS" in its condition on the Closing Date. 3. Purchase Price. The Parties acknowledge each is in receipt of consideration for the contemplated transaction. Notwithstanding the foregoing, Seller agrees to convey the Property to City, and City agrees to subsequently convey the Property to Purchaser, for a purchase price of Zero Dollars ($0.00). M 4. Governmental Approvals. a. Subdivision. The Parties acknowledge that the Property must be created as a conveyable parcel by re -subdivision of the existing subdivision where the Property is located. City shall cause the preparation of a subdivision application for the Property at its expense and seek re -subdivision of the Property. The Parties acknowledge that the ALTA Survey and Commitment cannot be provided until after recording of the subdivision plat contemplated by this Paragraph. As such, City agrees to complete the re -subdivision and have prepared a recordable document evidencing the creation of a conveyable parcel within sixty (60) days of the Effective Date. If City is unable to complete the re -subdivision within sixty (60) days, City shall notify Seller and Purchaser of the same in writing, and Purchaser shall have the right to: (a) extend such deadline for a reasonable period to the date requested by City (such request not to be unreasonably denied by Purchaser); or (b) terminate the Agreement by giving written notice thereof to the other Parties, in which case this Agreement will be terminated, and neither party shall have any further rights or obligations hereunder, except as otherwise provided herein. During the re -subdivision process certain changes may occur, including, but not limited to, the creation of certain easements on the lot or on any other lot to accommodate drainage requirements, landscaping, and installations for utility services for the subdivision, and other changes necessary to comply with the Pueblo Municipal Code which may not be foreseen at this time. Such changes shall be subject to approval by the Purchaser, which approval shall not be unreasonably withheld. Notwithstanding anything in this Agreement to the contrary, in the event City completes the subdivision contemplated in this Paragraph, and the transaction contemplated by this Agreement is not fully consummated, Purchaser shall have no further responsibility with respect to any subsequent re -subdivision of the Property. b. Zoning. The Parties acknowledge that re -zoning of the Property may be required for the Purchaser's Anticipated Use. City agrees to complete such re -zoning at its expense or, if City determines no re -zoning is required, provide Purchaser with written notification and/or applicable permits reflecting such determination no later than sixty (60) days following receipt of the ALTA Survev from Purchaser. If City is unable to complete the foregoing within sixty (60) clays, City shall notify Seller and Purchaser of the same in writing, and Purchaser shall have the right to: (a) extend such deadline for a reasonable period to the date requested by City (such request not to be unreasonably denied by Purchaser); or (b) terminate the Agreement by giving written notice thereof to the other Parties, in which case this Agreement will be terminated, and neither party shall have any further rights or obligations hereunder, except as otherwise provided herein. C. Transportation Commission Approval. The Parties acknowledge that the Purchaser's obligation to acquire the Property is conditioned upon the approval of the Transportation Commission of Colorado. S. Closing. Unless Purchaser has previously terminated this Agreement in accordance with its terms, or unless otherwise agreed upon by the Parties in writing, Purchaser shall notify City and Seller in writing of Purchaser's election to close ("Notice to Close") no later than the earlier to occur of: (a) thirty (30) days following receipt of the government approvals identified in Paragraph 4 of this Agreement, or (b) one hundred twenty (120) days after the Effective Date. Closing shall take place .within thirty (30) days of the date the Notice to Close is received by 7 Seller at a time mutually agreed upon by the Parties. Unless otherwise agreed upon, the Closing shall be held at the offices of the Title Company (as hereinafter defined). The Parties need not be physically present at the Closing provided that executed originals of all required documents in form sufficient to consummate the Closing have been timely delivered to Title Company so that the Closing can occur on the date scheduled therefor. 6. Develo meat Costs. City agrees that it shall fund the following infrastructure improvements, more particularly described in Exhibit B to this Agreement. City further agrees to undertake the design and construction of such improvements as identified below. The final design, capacity and layout of such improvements, as well as the schedule for construction of the planned improvements, shall be mutually agreed upon by the Parties, acting reasonably. City's obligation to construction the improvements contemplated by this Paragraph and depicted in Exhibit B shall survive Closing. Any costs depicted in Exhibit B are estimates only and, notwithstanding any other provision of this Agreement, the City shall fund the actual costs for the infrastructure improvements in full. In the event City and CDOT are unable to agree upon a construction schedule acceptable to CDOT subsequent to Closing, CDOT shall have the right to terminate the transaction and convey the Property to Seller as provided for in Paragraph 8. a. Utility Service Improvements. City will design and construct extensions of potable water and sanitary sewer service to the Property as necessary to enable the Purchaser's Anticipated Use. b. Re wired Paving. Outlook Boulevard is considered a minor arterial in City's roadway network. To enable the Anticipated Use, City will design and construct an extension of Outlook Boulevard, anticipated to be approximately 750 feet in length, and improve the facility to a 5 -lane, 60 -foot cross-section. 6 -foot wide sidewalks will also be installed on the east side of the newly constructed segment of Outlook Boulevard. C. Storm Water Improvements. City will construct storm sewer lines and inlets necessary as part of the improvements to Outlook Boulevard. Purchaser will be required to construct a detention facility and water quality facilities on the Property at Purchaser's expense, which improvements will be permitted to outlet to the public roadway storm water facilities. 7. Purchaser Financing. The Parties acknowledge that Purchaser may elect to finance all or a portion of the planned construction of improvements on the Property. The Parties agree to provide any information reasonably requested by CDOT concerning the transaction to assist CDOT in pursuing such financing. 8. Reverter. The Parties acknowledge that certain rights and obligations under this Agreement shall survive Closing or are not anticipated to occur prior to Closing. In the event either City or CDOT are unable (despite the best efforts of all Parties acting reasonably) to fund their respective post -Closing obligations related to the proposed transaction, either City or CDOT may notify the other Parties in writing of its intent to terminate further prosecution of the transaction. In the event of such circumstance, City and CDOT agree to work together in good faith to return the Property to Seller in the same condition as of the date of Closing; provided, however, that Purchaser shall, be under no obligation to re -subdivide or re -zone the Property for Seller. Neither City nor CDOT shall not have any right to terminate the transaction under this Paragraph following the commencement of either: (a) planned construction by CDOT on the Property, or (b) construction of the public improvements to be funded by City pursuant to Paragraph 6 of this Agreement. 9. Seller's Affirmative Co enan Seller hereby covenants and agrees as follows: a. Seller's Co Aeration. Seller agrees to cooperate with Purchaser with respect to the Property, including, without limitation, participating in and supporting Purchaser in any and all proceedings related to any zoning, subdivision and planning for the Property, cooperating with Purchaser in obtaining permits, agreements, approvals and authorizations deemed necessary by Purchaser for its intended use and development of the Property, attending public hearings or other meetings for or with governmental agencies or neighborhood groups, and, if required by the applicable governmental entity, consenting to and/or executing any such permits, agreements, approvals and authorizations. b. New Encumbrances A gain ~t the Proper Commencing on the Effective Date and for so long as this Agreement remains in existence, Seller shall not cause or permit any mortgage, deed of trust, lien, encumbrance, covenant, condition, restriction, assessment, easement, right-of-way, obligation, encroachment or liability whatsoever, to be placed of record or otherwise affect the Property or the title insurance required to be given to Purchaser pursuant to this Agreement, except as same may be requested or required by Purchaser as part of the re -subdivision and re -zoning processes contemplated in Paragraphs 4.a. and 4.b. of this Agreement. C. Existing Encumbrances A minst the Property. If the Property or any portion thereof is currently subject to a deed of trust, then, for so long as this Agreement remains in existence, Seller agrees to promptly pay the indebtedness secured by such deed of trust and to promptly perform all of the other obligations of Seller related to such indebtedness. Seller agrees to indemnify and hold City and Purchaser harmless from any liability, loss, costs, damage or expense incurred as a result of a default by Seller in payment or performance of its obligations under such indebtedness. Seller shall deliver to City and Purchaser, immediately upon receipt thereof any notices of defaults received from the holder of such indebtedness. Prior to Closing, Seller shall use its best efforts to cause the holder or holders of such indebtedness to execute and deliver to City a Recognition Agreement in a form acceptable to City in its sole discretion. d. Natural Amenities. Seller acknowledges that the natural amenities of the Property constitute a material inducement to Purchaser to enter into this Agreement and, therefore, Seller agrees to maintain the Property and the amenities and soil in their current condition. In furtherance thereof, Seller agrees to not permit or cause any development activity of any kind on the Property (except as may be specifically required under this Agreement or permitted pursuant to the Permitted Exceptions) prior to Closing, including, but not limited to, cutting, clearing, excavating, filling, dumping, or disposing of any materials. e. Leases. Seller covenants for the benefit of and agrees with Purchaser that, pending Closing, Seller shall (i) deliver the Property free and clear of all options, leases and tenancies, and (ii) not enter into any new leases for all or any part of the Property unless approved by Purchaser. f_ Operation of the Property. Until the earlier of the Closing or the termination of this Agreement, Seller undertakes and agrees as follows: (i) To pay (or caused to be paid), prior to delinquency, all real property and personal property taxes which become due and payable with respect to the Property. (ii) Not to do anything, nor permit anything to be done, which would impair or modify the status of title as shown on the Title Commitment or the Survey. (iii) To operate and maintain the Property in the same manner as heretofore operated and maintained and operate and maintain the Property in a professional manner, reasonable wear and tear excepted and damage by fire or other casualty excepted. (iv) Not to permit any transfer of any of Seller's interest in the Property, or permit any encumbrance of same by any obligations. (v) To terminate any contracts, agreements or commitments, oral or written, that affect all or any part of the Property that Purchaser requests Seller to terminate. Seller shall deliver copies of all notices of termination given by Seller hereunder to Purchaser g. Advise Purchaser. Until the earlier of the Closing or the termination of this Agreement, Seller and City agree to notify the Purchaser promptly upon learning or receiving notice, whichever first occurs, of: (i) Any event, transaction, occurrence or agreement entered into by Seller prior to Closing, which would or might materially affect the Property, or any part thereof after Closing. (ii) Any fact or event which would make any of the representations or warranties of Seller or City contained in this Agreement untrue or misleading in any material respect. (iii) Any violation of any law, ordinance, regulation or law which would or might materially affect the Property or any portion thereof. (iv) Any pending or threatened litigation which affects the Property or any part thereof or which would affect the transaction contemplated hereby. (v) Any damage or destruction (excluding normal wear and tear) to the Property or any part thereof (vi) Any pending or threatened proceedings in bankruptcy or insolvency which would affect the Property or any person or entity owning any interest therein. MI 16. Re resentations and Warranties of Seller. Seller hereby represents and warrants to the Purchaser that: a. Title. Seller has good, indefeasible and marketable title to the Property, and City is the sole contract purchaser of the Property. b. No Liens. As of the Closing: (i) there will be no mechanics' or materialmen's liens of record against the Property, and (ii) there are no unsatisfied charges, debts, liabilities, claims or obligations arising from the construction, ownership, maintenance or operation of or otherwise relating to the Property, which could give rise to any mechanic's or materialmen's or constitutional, statutory or common law lien against the Property, or any part thereof, except as may be caused by City or Purchaser. C. Deed Restrictions. To the best of Seller's knowledge, there are no deed restrictions affecting the Property prohibiting the Purchaser's Anticipated Use. The Seller makes no representations as to the current zoning of the Property. d. Qrganization and -Existence: Authority. Seller is a Limited Partnership, duly organized, existing and in good standing under the laws of the State of New Mexico, and is authorized to do business in Colorado. The persons signing below on behalf of Seller represent that they are duly authorized to execute this Agreement and to bind Seller. Seller has the full right, capacity, and authority to enter into this Agreement and no third party approval or consent is required to enter into this Agreement or to consummate the transaction contemplated hereby. This Agreement and all documents required hereby to be executed by Seiler are and shall be valid, legally binding obligations of and enforceable against Seller in accordance with their terms. All requisite corporate or other entity action has been taken by Seller in connection with entering into this Agreement, the instruments referenced herein, and the consummation of the transaction contemplated hereby. C. Bankruptcy. Seller has not filed for bankruptcy relief within the last year under the laws of the United States Bankruptcy Code nor has any petition for bankruptcy or receivership been filed against the Seller within the last year. There exist no pending or threatened bankruptcy, insolvency, or similar proceedings affecting the Property. f. Condemnation. There is no pending or threatened condemnation or similar proceeding affecting the Property or any portion thereof, nor, to Seller's knowledge, is any such proceeding contemplated. g. Special "1axinu District. To the best of Seller's knowledge, the Property is not located within the boundaries of a special taxing district, except as may be reflected in the Commitment, nor has any application been made or submitted for the creation of (or annexation of the Property into) a special taxing district or other quasi -governmental entity. Furthermore, Seller has not received any notice, either oral or written, and has no knowledge that any governmental or quasi -governmental entity intends to impose any special or other assessment against the Property or any part thereof. h. Compliance with Laws and 'tither Obligations. To the best of Seller's knowledge, except as otherwise provided in this Agreement, there are no contemplated (i) changes in any laws, ordinances, or regulations applicable to the Property, (ii) actions, suits or other legal or administrative proceedings currently affecting the Property, (iii) judicial or administrative action concerning the Property, or (iv) action by adjacent landowners concerning the Property. Seller has complied. and will continue to comply until Closing, in all material respects with all applicable laws, ordinances, regulations, statutes, rules, restrictions, covenants and conditions (including any of same contained in any development or other governmental agreements, permits, entitlements or licenses) pertaining to or otherwise affecting the Property. For certainty, Seller shall not be required to incur any cost or expense as a result of its compliance with any conditions required as a result of the re -subdivision and re -zoning processes contemplated in Paragraphs 4.a. and 4.b. of this Agreement, which costs and expenses shall be borne by City. Performance of this Agreement will not result in any breach of, or constitute any default under any agreement or other document to which Seller is a party or by which Seller or the Property might be bound, nor will such performance result in the imposition of any lien or encumbrance on the Property under such agreements or other documents. i. Hazardous Materials. Seller has not performed (and has no knowledge of the performance by anyone else of) any dumping, excavation or burial of any Hazardous Materials on or in the immediate vicinity of the Property. To Seller's best knowledge, information and belief, there are no Hazardous Materials, as hereinafter defined, on, under, from or affecting the Property that would subject Purchaser to any liability under either Federal or State laws. Without limiting the generality of the foregoing, to Seller's best knowledge information and belief (1) the Property is not now and has never been used to generate, manufacture, refine, transport, treat, store, handle, dispose of, transfer, produce, process or in any manner deal with Hazardous Materials; (2) no present or prior owner of the Property or present or prior tenant, subtenant or occupant has received any notice or advice from any governmental agency or from any other such present or prior owner, tenant, subtenant or occupant of the Property concerning any Hazardous Materials on, under, from or affecting the Property. The term "Hazardous Materials" as used herein includes, without limitation, radon or other radioactive materials, gasoline, petroleum products, explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, polychlorinated biphenyls or related or similar materials, asbestos or any material containing asbestos, or any other substance or material as may be defined as a hazardous or toxic substance by any Federal, state or local environmental law, ordinance, rule, or regulation including, without limitation, the Comprehensive Environmental Response, Compensation. and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act, as amended (42 U.S.C. Section 1801, et seq.) the Resource Conservation and Recovery Act, as amended (42 U.S.C. Section 1251, et seq.), the Clean Air Act, as amended (42 U.S.C. Section 7401, et seg.) and in the regulations adopted and publications promulgated pursuant thereto. j. Leases and Contracts. There are no leases, oral or written, affecting the Property or any part thereof, nor are there any other rights in or to the Property granted to any other individual or entity other than those listed in the Permitted Exceptions. Seller covenants to deliver possession of the Property to City at Closing free of all tenancies, occupancies and other rights, titles or interests. Seller has not entered into any other contractual obligations with respect to the Property, including but not limited to, oral or written service, maintenance, landscaping, security, W management or other similar contracts which pertain to the operation or maintenance of the Property. k. Foreign Person. Seller is not a "foreign person" as that term is used in Section 1445(b)(2) of the Internal Revenue Code of 1986, as amended and the related regulation. Seller agrees to execute a certificate indicating that Seller is not a foreign person on the Closing Date. 1. Mineral Interests. Seller and/or its predecessor(s) in interest, have, or prior to Closing will have, taken any actions necessary to fully comply with the requirements of the Colorado Revised Statutes concerning notifications regarding severed mineral rights with respect to the Property. Each of the warranties and representations contained in this paragraph and elsewhere in this Agreement shall be deemed made as of the Effective Date by Seller. All such representations and warranties shall be continuing and true and correct on and as of Closing with the same force and effect as if made at that time, subject to the provisions regarding updates to such representations and warranties set forth below, and all of such representations and warranties shall survive Closing. Seller may from time to time update its representations and warranties to take into account any changes in the content of such representations and warranties between the date of this Agreement and the Closing date. If any such change creates a condition that materially and adversely affects the Property or Purchaser's Anticipated Use thereof, the Purchaser shall be entitled to exercise the remedies set forth in Paragraph 16 hereof. 11. I epresentati,ons and Warranties ofCity. City hereby represents and warrants to the Purchaser that: a. Authority. City is a Colorado home rule municipal corporation. The persons signing below on behalf of City represent that they are duly authorized to execute this Agreement and to bind City. This Agreement and all documents required hereby to be executed by City are and shall be valid, legally binding obligations of and enforceable against City in accordance with their terms. All requisite corporate or other entity action has been taken by City in connection with entering into this Agreement, the instruments referenced herein, and the consummation of the transaction contemplated hereby. b. Corn Banc. with haws and Other Obl" xations. To the best of City's knowledge, except as otherwise provided in this Agreement, there are no contemplated (i) changes in any laws, ordinances, or regulations applicable to the Property, (ii) actions, suits or other legal or administrative proceedings currently affecting the Property, (iii) judicial or administrative action concerning the Property, or (iv) action by adjacent landowners concerning the Property. Perfonuance of this Agreement will not result in any breach of, or constitute any default under any agreement or other document to which City is a party or by which City or the Property might be bound, nor will such performance result in the imposition of any lien or encumbrance on the Property under such agreements or other documents. IC Each of the warranties and representations contained in this paragraph and elsewhere in this Agreement shall be deemed made as of the Effective Date by City. All such representations and warranties shall be continuing and true and correct on and as of Closing with the same force and effect as if made at that time, subject to the provisions regarding updates to such representations and warranties set forth below, and all of such representations and warranties shall survive Closing. City may from time to time update its representations and warranties to take into account any changes in the content of such representations and warranties between the date of this Agreement and the Closing date. if any such change creates a condition that materially and adversely affects the Property or Purchaser's Anticipated Use thereof, the Purchaser shall be entitled to exercise the remedies set forth in Paragraph 16 hereof. 12. Dbli ration to Close. a. Conditions. Purchaser shall not be obligated to close hereunder unless each of the following conditions shall exist on the Closing Date (as may be extended pursuant to this Agreement): (i) Title l�ol.icv. The Title Company shall be prepared to issue (or prepared to unconditionally commit to issue) the Title Policy described in this Agreement. (ii) Accuracy of Representations. The representations and warranties made by City and Seller in this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though such representations and warranties had been made on and as of the Closing Date, and each will so certify. (iii) Performance. City and Seller shall each have performed all covenants and obligations and complied with all conditions required by this Agreement to be performed or complied with on or before the Closing Date. (iv) Conveyable Parcels.. Each and every act and requirement necessary for the unrestricted conveyance of the Property from Seller to Purchaser shall have been performed and completed and, where applicable, accepted by the appropriate entity. b. Failure of Conditions. if any condition specified in this Paragraph is not satisfied on or before Closing, Purchaser may, at its option, waive such condition (either at the time originally established for Closing, or at any time thereafter as extended pursuant to this Agreement), or terminate this Agreement by written notice thereof to the other Parties. 13. Clos[ng Procedures, Closing shall occur in accordance with the procedures set forth below. a. Coraweya At Closing, Seller shall convey good, marketable, and insurable fee simple title to the Property to City by special warranty deed (the "Seller Deed"), free and clear of all liens and encumbrances and subject only to the Permitted Exceptions. At Closing, City will subsequently transfer the Property to the Purchaser, also by special warranty deed (the z "Cited''), free and clear of all liens and encumbrances and subject only to the Permitted Exceptions. b. Costs of Sale. (i) Title Insurance. The title insurance policy required hereunder shall be issued by the Title Company promptly after the Closing Date. The premium for such title insurance policy shall be paid by Purchaser at Closing, including the cost for any title endorsements elected to cure a title Objection. (ii) Documentary,Pee. Recording Costs. The Parties shall execute and deliver to the Title Company real property transfer declarations. The cost of the documentary transfer fee and the costs of recording the Deed shall be borne by Purchaser. (iii) Deal Estate Taxes. Real estate taxes and assessments for the Property for the year of Closing shall be prorated at and as of Closing. If such taxes or assessments are not known for such year, the most recent available year shall be used to calculate the prorated portions and Purchaser and Seller shall re -prorate once such taxes or assessments become known. Seller shall be and remain responsible for payment of all real estate taxes and assessments, special or otherwise, regardless of when they are payable, that have accrued or been assessed during or prior to the period of Seller's ownership of the Property, including any transfer taxes. (iv) Clasin r Costs. Any other costs of closing not expressly addressed hereunder shall be paid for by Purchaser and not Seller. C. Seller'' Closinp Documents, On the Closing Date, Seller shall deliver the following items: (i) The Seller Deed duly executed in form for recordation (ii) An assignment in form and substance reasonably acceptable to Purchaser, assigning to Purchaser all of Seller's right, title and interest in and to the Reports, the Contracts and Permits, and the Intangible Property, if applicable. (iii) The originals of any Reports, and Contracts and Permits, if applicable. (iv) An affidavit running to the benefit of Purchaser and the Title Company in form and substance acceptable to the Title Company and sufficient for the Title Company to issue a creditors rights endorsement and to eliminate the so-called "standard printed exceptions" from the title insurance policy required to be delivered to Purchaser hereunder. (v) The affidavit or other evidence required under the "foreign person" provisions of Section 1445 of the Internal Revenue Code of 1986, as amended, and the corresponding withholding requirements of Section 39-22-604.5, C.R.S.. N (vi) Such further documents as may reasonably be required to consummate the transaction contemplated hereby and to enable the Title Company to insure title to the Property in accordance with the terms of this Agreement. d. City'§ QgLsing Documents. On the Closing Date, City shall deliver the following items: The City Deed duly executed in form for recordation. (ii) Such further documents as may reasonably be required to consummate the transaction contemplated hereby and to enable the Title Company to insure title to the Property in accordance with the terms of this Agreement. 14. Purchaser's Default: Remedies. a. Default by Purchaser. Notwithstanding anything to the contrary contained in this Agreement, Purchaser shall not be in breach or default hereunder unless such breach or default is of a material obligation of Purchaser under this Agreement and, within twenty (20) days after Purchaser's receipt of notice from either City or Seller detailing the nature of such breach or default, Purchaser fails to cure same. A copy of such written notice shall also be provided to the other non -defaulting Party. b. Remedies of City. "elle . Upon the occurrence of a breach or default by Purchaser not cured within the applicable cure period, the sole and exclusive remedy of City or Seller shall be to terminate this Agreement and obtain a reversion of title to the Property to Seller in the event that title has been transferred by Seller to City. It is acknowledged that Purchaser shall have no liability of any kind or nature hereunder. City and Seller expressly waive any other remedy at law or in equity against Purchaser, including, without limitation, specific performance and damages. 15. City's Default: Remedies. a. Default by City. Notwithstanding anything to the contrary contained in this Agreement, City shall not be in breach or default hereunder unless such breach or default is of a material obligation of City under this Agreement and, within twenty (20) days after City's receipt of notice from either the Seller or Purchaser detailing the nature of such breach or default, City fails to cure same. A copy of such written notice shall also be provided to the other non -defaulting Party. b. Reredies of Purchaser, Seller. Upon the occurrence of a breach or default by City not cured within any applicable cure period, Purchaser's remedy shall be limited to specific performance, but not damages, and in addition, Purchaser may: (i) terminate this Agreement; (ii) remedy or cure the breach or default itself at its own expense; (iii) extend the scheduled Closing Date for a reasonable period of time without payment to City or Seller of any additional fees or costs of any nature or kind whatsoever, until such time as City has remedied or cured the applicable breach or default and Purchaser elects to acquire the Property; or (iv) waive 16 any breach or default by City and schedule a Closing Date as specified in this Agreement. The sole and exclusive remedy of the Seller for any breach or default hereunder by City shall be to terminate this Agreement and obtain a reversion of title to the Property to Seller in the event that title has been transferred by Seller to City; provided, however, that Seller shall not be entitled to terminate this Agreement if Purchaser has exercised its rights under (ii), (iii) or (iv) of this subparagraph and notified the Seller of the same within City's permissible cure period. 16. Seller's Default: Remedies. a. Default by Seller. Seller shall be in default hereunder if. (i) any representation or warranty made by Seller herein is or becomes false and creates a condition that materially and adversely affects the Property or Purchaser's Anticipated Use thereof unless the occurrence of the condition was not within the reasonable control of Seller; or (ii) any update of the Commitment delivered to Purchaser pursuant to the provisions of this Agreement contains any title exceptions caused by Seller which are not Permitted Exceptions and Purchaser has not approved or otherwise consented to all of such additional title exceptions as provided in this Agreement; or (iii) any covenant or obligation made or undertaken by Seller hereunder is not performed in the time specified for such performance or Seller otherwise breaches any provision of this Agreement. Seller shall have twenty (20) days after receipt of written notice from either City or Purchaser of any such default within which to cure same; provided, however, that such cure period shall not apply to any refusal by Seller to convey the Property to City at the time required herein and otherwise in accordance with the terms and provisions hereof. A copy of such written notice shall also be provided to the other non -defaulting Party. If any cure period allowed above extends beyond the scheduled Closing Date, the Closing shall automatically be extended to that date which is the first day after expiration of such cure period. b. Remedies of City. Purchaser. Upon the occurrence of a breach or default by Seller not cured within any applicable cure period, Purchaser's remedy shall be limited to specific performance, but not damages, and in addition, Purchaser may: (i) terminate this Agreement; (ii) remedy or cure the breach or default itself at its own expense; (iii) extend the scheduled Closing Date for a reasonable period of time without payment to City or Seller of any additional fees or costs of any nature or kind whatsoever, until such time as Seller has remedied or cured the applicable breach or default and Purchaser elects to acquire the Property; or (iv) waive any breach or default by Seller and schedule a Closing Date as specified in this Agreement. The sole and exclusive remedy of City for any breach or default hereunder by the Seller shall be to terminate this Agreement; provided, however, that Seller shall not be entitled to terminate this Agreement if Purchaser has exercised its rights under (ii), (iii) or (iv) of this subparagraph and notified City of the same within Seller's permissible cure period. 17. Notices. All notices, demands, requests or other communications to be sent by one Party to any other hereunder or required by law shall be in writing and shall be deemed to have been validly given or served by hand delivery or personal delivery of the same to the intended addressee, or by depositing the same in the United States mail, postage prepaid, registered or certified mail, addressed to the intended addressee at its address set forth below or at such other address as may be designated by such Party as herein provided. All notices, demands and requests shall for the purposes of this Agreement, be deemed received upon such personal delivery, or two 1E (2) business days after being deposited in the United States mail as required above. By giving to the other Party(ies) hereto at least fifteen (15) days prior written notice in accordance with the provisions hereof, the Parties hereto shall have the right from time to time to change their respective addresses and each shall have the right to specify as its address any other address within the United States of America. The initial addresses for the parties hereto shall be: If to Seller: WL Enterprises, LTD P.O. Box 11677 Pueblo, Colorado 81001 With Copy to: Wm. David Lytle Altman, Keilbach, Lytle, Parlapiano & Ware, P.C. 229 Colorado Ave. Pueblo, CO 81004 If to City: City Manager City of Pueblo 1 City Hall Place, 2"d Floor Pueblo, Colorado 81003 With Copy to: City Attorney City of Pueblo I City Hall Place, P Floor Pueblo, Colorado 81003 If to CDOT: Colorado Department of Transportation Attn: David Fox 15285 South Golden Road, Bldg. 47 Golden, Colorado 80401 With Copy to: Colorado Attorney General's Office Attn: Kathryn E. Young, Esq. 1300 Broadway, 1001 Floor Denver, Colorado 80203 If to Title Company: Stewart Title Guaranty Company Attn: [ 1 1307 Fortino Blvd., Unit C Pueblo, Colorado 81008 18. Broker's Commissions. Each Party hereby warrants and represents to the other Parties that no real estate broker other than CBRB, Inc., represented by Brad T. Bird and operating as the Purchaser's Broker was involved in the transaction contemplated by this Agreement. The Broker's Commission will be paid by the Purchaser, subject to a separate written agreement between Purchaser and Purchaser's Broker. Seller shall indemnify City and State against any IV claim of any broker claiming by, through or under Seller or by anyone else not a party to this Agreement. The foregoing warranties and representations shall survive the Closing. 19. Title Cgmnany as Escrow A gent. a. The Parties acknowledge that Title Company is acting solely as a stakeholder at their request and for their convenience, that Title Company shall not be deemed to be the agent of any of the Parties hereto, and that Title Company shall not be liable to any of the Parties for any action or omission on its part taken or made in good faith and not in disregard of this Agreement, but shall be liable for its negligent acts and for any loss, cost or expense incurred by Seller, City, or Purchaser resulting from Title Company's mistake of law respecting Title Company's scope or the nature of its duties. b. Upon delivery of an executed copy of this Agreement to Title Company, this Agreement, any additional instructions hereafter delivered to Title Company jointly by Seller, City, and Purchaser, and together with any supplemental instructions delivered to Title Company by either Seller, City or Purchaser to the extent that such supplemental instructions do not conflict with or amend any provision contained in this Agreement to the detriment of any other Party, shall constitute the sole instructions to Title Company regarding the transaction contemplated hereby. C. Title Company hereby accepts the designation of "reporting person" (the "Re ortin , Person") within the meaning of Section 6045 (e)(2)(A) of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder (the "Reporting, Re uiremenis") and agrees to perform all duties that are required to be performed by the Reporting Person under the Reporting Requirements. In furtherance of its obligations as the Reporting Person, Title Company hereby requests that Seller furnish to Title Company Seller's correct taxpayer identification number. Seller acknowledges that any failure by Seller to provide Title Company with Seller's correct taxpayer identification number may subject Seller to civil or criminal penalties imposed by law. Title Company agrees to indemnify and hold Seller, City, and Purchaser, and their respective agents harmless from and against any claims, costs, liabilities, penalties, or expenses resulting from Title Company's failure to perform its duties as the Reporting Person under the Reporting Requirements. This paragraph shall survive any termination of this Agreement and the Closing. 20. Confidential it . The Parties each agree that they will hold in strict confidence all documents and information concerning the other Parties and the proposed transaction contemplated by this Agreement. No Party shall issue any press releases or otherwise make any public statements with respect to this Agreement without the prior written consent of each other Party. If the proposed transaction contemplated hereby should not be consummated, such confidence will be maintained, and all documents and information in written form will be returned to the Party originally furnishing the same. However, the foregoing provisions shall not be construed to prohibit the Parties from disclosing to appropriate governmental authorities or to its consultants such terms of the proposed transaction as are necessary to obtain governmental approvals, to complete CDQT's proposed financing, or as may be necessary to comply with law. 21. Cam. The captions in this Agreement are inserted for convenience of reference only and in no way define, describe or limit the scope or intent of this Contract or any of the provisions hereof. 22. Entire A reemgnt. Except as specifically set forth in this Agreement, this Agreement, including the exhibits attached hereto, contains the entire agreement between the Parties concerning the transaction contemplated hereby and all other representations, negotiations and agreements, written and oral, including any letters of intent which pre -date the Effective Date, with respect to such transaction, are superseded by this Agreement and are of no force and effect. 23. Binding ture� Amendmentg. This Agreement and the rights and obligations hereunder shall be binding upon and inure to the benefit of the Parties hereto, their heirs, successors, administrators and assigns, subject to the provisions and limitations on assignment set forth herein. This Agreement may only be amended, revised, waived, discharged, released or terminated o by a written instrument executed by the Party against which enforcement of the amendment, revision, waiver, discharge, release or termination is asserted. 24. Assignment,. No Party shall be entitled to assign this Agreement, or any of its rights or obligations hereunder, to any person or entity without the prior written approval of the other Parties. 25. Survival. Notwithstanding any presumption to the contrary, and regardless of whether this Agreement specifically provides for survival, to the extent required for their proper effect, all obligations, covenants, conditions, representations, warranties and agreements of the Parties contained in this Agreement shall survive Closing and any other termination of this Agreement. 26. Construction ofAgreement: V lidit Each ofthe Parties hereto acknowledges that it and/or its counsel have participated substantially in the drafting of this Agreement and agree that, accordingly, in the interpretation and construction of this Agreement, no ambiguity, real or apparent, in any provision hereof shall be construed against a Party hereto by reason of the role of such Party or its counsel in the drafting of such provision. Whenever the context so requires, the singular number shall include the plural and the plural the singular, and the use of any gender shall include all genders. A determination that any provision of this Agreement is illegal, unenforceable or invalid shall not affect the enforceability or validity of any other provision of this Agreement, and any determination that the application of any provision of this Agreement to any person or circumstance is unenforceable or invalid shall not affect the enforceability or validity of such provision as it may apply to any other persons or circumstances. 27. Cou�rt5. This Agreement may be executed in any number of counterparts and shall be deemed to be effective upon delivery of all of such counterparts. Each counterpart of this Agreement shall be deemed an original and all such counterparts shall be taken to be one and the same instrument, for the same effect as if all parties hereto had signed the same signature page. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon and may be attached to another 1H counterpart of this Agreement identical in form hereto but having attached to it one or more additional signature pages. 28. Time. Time is of the essence of this Agreement. The term "days" when used herein shall mean calendar days. If any time period ends on a Saturday, Sunday or officially recognized state holiday, the applicable period of time shall be deemed to end on the next succeeding business day. 29. Attorney's bees. Should any Party hereto institute an action or proceeding to enforce any provision of this Agreement or for damages by reason of an alleged breach of any provision hereof, each Party shall be responsible for its own costs and expenses (including attorneys' fees) incurred in connection with such action or proceeding and the enforcement of any judgment or settlement obtained in such action or proceeding. 30. Waiver of Breach. The failure of any Party hereto to enforce any provision of this Agreement shall not be construed to be a waiver of the obligations contained in such provision or any other provision, nor shall any such failure in any way to affect the validity of all or any part of this Agreement or the right of such Party thereafter to enforce each and every provision hereof. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 31. Third_1'artics. Seller, City and Purchaser are the only parties to this Agreement and are the only Parties entitled to enforce this Agreement. Nothing contained in this Agreement nor any provision hereof is intended to give or shall be construed to give or confer, directly or indirectly, or otherwise, upon any third party, any right, remedy or benefit hereunder. 32. Required State Provisions. a. Controller's Approval -,"ection 24-30-202(l), C.R.S. This Agreement shall not be valid until it has been approved by the Colorado State Controller or designee. b. Fund Availability -,Section 24--30-202(5.5), C.R.S. Financial obligations of the State payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available. C. Tran§pgrt@Ltion Commission Approval. CDOT's obligation to acquire the Property is conditioned upon the Transportation Commission's approval of the financing that will be used to construct the improvements on the Property for the Anticipated Use. d. Governmental Immunity. No term or condition of this Agreement shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, of the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S. or the Federal Tort Claims Act, 28 U.S.C. Sections 1346(b) and 2671 et seq., as applicable now or hereafter amended. This paragraph shall survive any termination of this Agreement and the Closing. M, C. Compliance With Law. Seller and City shall strictly comply with all applicable federal and State laws, rules, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices. f. Choice of Law. Colorado law, and rules and regulations issued pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this Agreement. Any provision included or incorporated herein by reference which conflicts with said laws, rules and regulations shall be null and void. Any provision incorporated herein by reference which purports to negate this or any other provision in this paragraph in whole or in part shall not be valid or enforceable or available in any action at law, whether by way of complaint, defense, or otherwise. Any provision rendered null and void by the operation of this provision shall not invalidate the remainder of this Agreement, to the extent capable of execution. This paragraph shall survive any termination of this Agreement and the Closing. g. Em to ce Financial Interest,.Conflict of Interest, Sections 24-1-201 and 24-0-502. C.R.S., The signatories aver that to their knowledge, no employee of the State has any personal or beneficial interest whatsoever in the service or property described in this Agreement. Seller or City have no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance of Seller's or City's services, and neither Seller nor City shall employ any person having such known interests. This paragraph shall survive any termination of this Agreement and the Closing. h. Vendor Offset, Sections24-30-202 l and 24-30!202.4,_C.R.S. Subject to Section 24-30-202.4(3.5), C.R.'S., the State Controller may withhold payment under the State's vendor offset intercept system for debts owed to State agencies for: (a) unpaid child support debts or child support arrearages; (b) unpaid balances of tax, accrued interest, or other charges specified in Section 39-21-101, el seq., C.R.S.; (c) unpaid loans due to the Student Loan Division of the Department of Higher Education; (d) amounts required to be paid to the Unemployment Compensation Fund; and (e) other unpaid debts owing to the State as a result of final agency determination or judicial action. (Remainder of Page Left Intentionally Blank. Signature Pages Follomj 9 IN WI'T'NESS WHEREOF, the Parties hereto have executed this Agreement effective as of the Effective Date. SELLER: WL ENTERPRISES, LTD., a New Mexico Limited Partnership By: Nan Titl( Date: [Signature Wage 1 of 4 to Purchase and Sale Agreement.] M, CITY: CITY OF PUEBLO, A Colorado m " " atio By: Ste"deli President of the City Council Date: 0J. X H I-"' w ATTEST: �"e 0,40 Ar w By:'Joina Dutcher City Clerk 2.0t 6 APPROVED AS TO FORM: By: Daniel C. Kogovsek City Attorney Date: 1 0 • A 0 - [Signature [S gnature Page 2 of 4 to Pitt -chase and Sale Agreement.] 91 PURCHASER: STATE OF COLORADO John W. Hickenlooper, Governor COLORADO DEPARTMENT OF TRANSPORTATION Shailen, I Bhatt, Executive Director 01 By: Joshua Laipp; 4Chief Engine r Date: STATE OF COLORADO John W. Hickenlooper, Governor DEPARTMENT OF PERSONNEL & ADMINISTRATION Office of the State Architect, Real Estate Programs By: Brandon Ates Manager of Real Estate Programs Date: APPROVED: Cynthia H. Coffinan, Attorney General M Date: Assistant Attorney General [Signature Page 3 of 4 to Purchase and Sale Agreement.] M PURCHASER: STATE OF COLORADO John W. Hickenlooper, Governor COLORADO DEPARTMENT OF TRANSPORTATION Shailen P. Bhatt, Executive Director By: Joshua Laipply, P.E. Chief Engineer Date: STATE OF COLORADO John W. Hickenlooper, Governor DEPARTMENT OF PERSONNEL & ADMINISTRATION Office of the State Architect, Real Estate Programs Brandon Ates Manager of Real Estate Programs Date: APPROVED: Cynthia H. Coffman, Attorney General By:.ti Assistant Attorney General Date:, [Signature Page 3 of 4 to Purchase and Sale Agreement.] IN Section 24-30-202, C.R.S. requires the State Controller to approve all State Agreements. This Agreement is not valid until signed and dated below by the State Controller or his delegee. STATE CONTROLLER Robert Jaros, CPA, MBA, JD Date: -,M ...... �2 7��Jw-..-�� [Signature Page 4 of 4 to Purchase and Sale Agreement.] W EXHIBIT A (Legal Description and Map of the Property) [TBD] rx�sr,rrm�r_ r�^"" Allw'Y�YYN�t � +=sw/M�+Nwl�wr wllFwt+w�wt K Irwt+t' w /rwy tl � a w� rwrr�wr r wrl KF MMe •new .xs �r. M',1 w�rr pwt�nw ti�.'�M Jtlld l nt, Y'Ti M M tM�w d4iwat M yMperwK M' nr�. moMrnVrv//W •.p.L�.K ww •wktit+'P'M! • ��• I•�Y ��tlwM.w��M M+ w ww�w.....F'�'W.�F�r�r�•Wt/�Ywl tY • www wn�tiW�Iww� YI II����M+d • Mr•.�..MMW�lrwwnll'awmMWmu++�lw WM'M•' �nr ��+YI�AMw� Km11Y b"'/wIX�. nww.r � MYMt KAr �� Nw+wry rM* Rw1�dY`.w' rl—T "a\yi Po"� L { 1 E { w goo, X11 04 a L6G6N0•� O frd+ww rrw.uw � Ir..r.W � H � �� � �.r�r w tir we w _o•='-- Mw. � 1P BASYS *«ILA ^A, . n.r.Kr i • IR r Ir �. wear aw. wR �. w. .w—.......� pp ,�y��1 St BDI114 BION IMI EtM AGREE14ENT EXHIUF "d"' SUBDIVISION NAME: WL ENTERPRISES ]N 1400704 DEVELOPER: WL ENIERPRISES, CDOT, CITY OF PUEBLO ENGINEER: NORTHSTAR ENGINEERING AND SURVEYING, INC. 6" Asphalt over 7" Base Course 14400 SY 0 $75.00 /SY = $3601000 Qirb and Gutter 3550 LF th $12.00 /LF - $42,600 ADA Ramp 1280 SF 0 $4.00 /SF = $5,120 Square Pan Radius 750 SF 0 $5.00 /SF = $3,750 Tactile bands 8 EA 0 $350.00 /EA = $2,800 Sklewalk 10000 SF 0 $3.00 /SF = $30,000 WATER 12" PVC Water Maln 2050 LF p $47.500 - $97,375 Service 2 EA 0 $900.00 /FA = $1A0 Flee Hydrant Assy (16ddkV) I EA 0 $3,250.00 /EA = $3,250 Blow Off Assembly 2 EA Q $1,000,00 /FA - $3,600 FFPW. EWER: 36" RCP 560 LF 0 $71.00 /LF = $39,760 30" RCP B LF '0 $66.00 /LF - $528 24" RCP 54 LF 0 $44.00 /LF - $2,376 I5" RCP I50 LF a $38.00 /LF = $5,700 48" RCP WOO LF 0 $145.00 /LF = $14'S,000 54 " RIP 115 LF 0 $176.00 /LF $20,240 Type I -B Manhole 3 EA 0 $3,000.00 /EA = $9,000 Type I -C Manhole 1 EA 0 $3,000.00 /EA = $3AOO Type III Manhole 6 EA 0 $25,000.00 /EA = $1501000 Type S Inlet L-6 2 EA 0 $3,180.00 /EA = $6,360 Type S inlet L=lY 2 EA 0 $4,500.00 /EA = $91000 M9E1 LIGHTS 8 EA 0 $1,450.00 /EA = $111601 MONUMENTS City Right-cf-Way Monuments 2 EA @ $655.00 /EA - $1,310 T-Intersectlon (60' R -0-W) 1 EA 0 $325.00 /EA = $325 Project and Road Closure Signage 1 LS $1,500.00 /LS $1,500 Barricades 2 EA 0 $1,280.00 /EA = $2,560 Bm9mmmmm Epoxy (lane Lines-aolkdnrs) 3800 L.F. 0 $1.35 /LF. = $5,130 Inlay Tape (Lane UnerArterials) 1900 LF. 0 $7.00 /LA= $13,300 Preform Thermoplastic (Orossmilks, stop bars) 156 SF 0 $3.00 /S.F.= $468 Arrows 7 EA 0 $85.00 /EA = $595 Uwasming 15000 SF 0 $3.50 /SF = $52,500 Landscape design (10% of landscape cost) 0.1 $52,500.00 /LS, = $S,250 9 SUBDIVSION IMPROVEMENT'S AGREEMENT EXHIBIT "B" SUSDIVMON NAME: WL ENTERPRISES IN 1400704 D WL ENTERPRISES, CDOT, CITY OF PUEBLO ENGINEER: NORTHSTAR ENGINEERING AND SURVEYING, INC, M 6" Asphalt over 7" Base Course 3800 SY 0 $25.00 /SY = $95,000 Curb and Gutter 1558 LF @ $12.00 /LF = $1806 ADARamp 25D SF /SF $1,000 Square Pan Radius 1054 SF 0 $SMS.OD /SF $5,270 Tactile bands 4 EA 0 $350.00 /EA = $1,400 Side valk 5100 SF 0 $3.00 /SF = $15,300 STREET, Vq 4 EA @ $1,450.00 /EA = $51800 E&MENT MAMNGS Epoxy ([ane Llnes-aolkd:ors) 1340 L.F. Q2 $1.35 /LF. m $1,809 Inlay Tape (Lane Unes-Arterials) 730 LF. 0 $7.00 /L.F. = $5,110 Preform Thermoplastic (Crosswalks, stop bars) 300 SF 0 $3.00 /S.F. R $900 Arrows 7 EA @ $85.00 /EA = $595 WATER 8" PVC Water Main 650 LF @ $4750 AF - x,875 Service i EA 0 $900.00 /EA _ $M Fire Hydrant Ass'y (1 Eidstttg) 1 EA 0 $3,250.00 /FAR $3,250 Blow Off Assembly 1 EA 0 $1,800.00 /EA = #1,800 Excavation for Open Channel 9500 CY @ $2.20 /CY ++ $20,900 Checkdams (20 ft spc) 45 EA 0 $200.00 /FA = $9,000 l3pedalty CaWftsln 1 LS @ $20,000.00 ILS = $20,000 36" RCP Culvert 300 LF @ $71.00 /LF - $21,300 Flowable Fill Material 90 CY @ $75.00 /CY R $6,000 Traffic Control 1 LS @ $10,000.00 LS R $10,000 Asphalt ncrede over 7" Base Corse 350 SY 0 $16.00 SY = $5,600 lates 1 IS 0 $1,500.00 LS = $1,500 Saw Cut 1 LS @ $500.00 LS = $500 Roadway Excavation 120 CY @ $4.00 /CY = $480 AC Removal 350 SY @ $2.00 /SY = $700 12" Waterline Relocation 100 LF @ $47.50 /LF = $4,750 Slit Fence 4000 L.F. @ $3.00 IV = $12,000 Inlet Protection 16 EA 0 $220.00 /EA = $3,520 Vehicle Traddng Control 2 EA 0 $800.00 /EA = $11600 $305,'555 rm SUBDIVISION IMPROVEMENTS AGREEMENT EXHIBIT "B" SUBDIVISION NAME: WL ENTERPRISES JN 1400704 DEVELOPER: WL ENTERPRISES, CDOT, CITY OF PUEBLO ENGINEER: NORTH57AR ENGINEERING AND SURVEYING, INC. Construction Bond (10%) $134,135 Post Design Construction Engineering and Surveying $25,000 Mobilization and De-mobllization (10%) or less $67,0'68 Contingency (159/0) 1291,203 lTA „PROJEC T BUDGET: # $2 7" 758 * A contingency cost of 15% was added do to the depth of storm drain exceeding 12ft. Some pants are as deep as 20 feet below grade. In Recent projects Blue Share may be encountered in the general vicinty. This Is an estimate onfy. Actual construction costs may vary. PREPARED BY: Shawn M. Clarke NORTHSTAR ENGINEERING AND SURVEYING, INC. FIRM - The undersigned hereby certifies that (1) the Required Public Improvements shown hereon and on the Plans and Specifications therefore constitute all of the public Improvements required to be Installed and construed for the Subdivision Chapter 4, Titre XII of the Pueblo Municipal Code and the standards and lfations approved by City Council, pi) the quantities of construction elements shown hereon accurately depicts the quantities necessary to construct the Required Public Improvements and (10) the unit prices shown hereon are the most current unit prices provided by the City of Pueblo. (PE SEALI REVIEWED BY, Professonel„_._. .., ,o.. ---Date Engineer Date 4 Reception 2055874 12/08/2016 10:20:16 AM SPEC/A1. WARRANTY DEED KNOW :AL,1. MEN BY T1-LCSL PRESENTS. that the CITY OF PL'LI3LO. a Colorado municipal corporation ("Grantor"). with its principal office at I Cit Hall Place. Pueblo.CO 81003. tor Tett Dollars and other food and valuable consideration. the receipt and sufficiency of which are hereby acknowledged. hereby grants, bargains, sells. conveys and confirms to the DEPARTMENT OF TRANSPOR TA I ION. SL A FE OF COLt)RAI)(:I("(irantee`_)an a2encv of the State titC'olorado created pursuant to Section -13-1..101. ei s !,/ , C.R.S.. whose feral address iM T.-201 F. Arkansas Avenue. Denver, Colorado :130222, the following real property situate in the County of Pueblo and State of Colorado.to-Wit: Lot I,(.:1)01 Headquarters Subdivision,County of Pueblo. State ot'Coloradc. with all its appurtenances. and warrants the title against all persons claiming to hold title by. through or under the Grantor, subject to easements. restrictions, covenants, conditions and reservation of record and ,..eneral taxes for this year and subsequent taxes and assessments. Sized and delivered this 7 4. dsy ol' eFeK >et' 2016. l ,,z. ca (TI Y OF I'LIERLO I) C-- — ._ 1 , J,,,.a , .,. . Stephen G. Na. roclti .„ --. , • I F resident of the(`its Counci I ,;3, immirj lie/ ,00 4. STATE (.)F COLORADO ) 1 ss. C'OliNI V OF I'IJ171IL0 1 the totegoing instrument Was acknowledged before the this -i'H day of i,\ r I..;.) - I_. . 2016 by Stephen(, Naswro k Witness n'1* hand and official seal. . N,ly commission expires: t': 4 4 I2-I 1.', '(' _ 1:e t.(r ve: I., (-;l_ t ,s c - Nwary Public BRENDA ARMIJO ., ;`,-y ”`% NOTARY PUBLIC i STATE OF COLORADO NOTARY ID 20124001702 MY CDMW6pON EXPIRES 0211412020 Reception 2055873 12/08/2016 10:20:16 AM SPECIAL WARRANTY DEED (\l/ {` KNOW ALL MEN BY THESE PRESENTS, That WL ENTERPRISES, LTD., a New Mexico Limited Partnership, with its principal office at 811 Los Prados De Guadalupe Drive, NW, Albuquerque, NM 87107, Grantor, for the consideration of Ten Dollars and Other Good and Valuable Consideration, in hand paid, hereby sells and conveys to CITY OF PUEBLO, a Municipal Corporation, whose legal address is 1 City Hall Place, Pueblo, CO 81003 of the County of Pueblo, State of Colorado, Grantee, The following real property situate in the County of Pueblo and State of Colorado, to-wit: Lot 1, CDOT Headquarters Subdivision, County of Pueblo, State of Colorado. with all its appurtenances, and warrants the title against all persons claiming to hold title by, through or under the Grantor, subject to easements, restrictions, covenants, conditions and reservations of record and general taxes for this year and subsequent taxes and assessments. . Signed and delivered this l day of l-k['t'i+( {+r.r' , 2016. WL ENTERPRISES, LTD. • By t t ij')i Dee Rogers,lrown Project Manager STATE OF COLORADO as, COUNTY OF PUEBLO The foregoing instrument was acknowledged before me this f Wday of 2016 by Dee Rogers Brown as Project Manager of WL Enterprises, Ltd. Witness my hand and official seal. I /It (/i M onaanec m / eNotar i Public Notary Public State of Colorado 1C20094001248 '1 ._`. ..r M1r1y Commission Expires January 27,2017