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2012-333s:llegallour documentslordinances1121dillard contract of sale ord,dOC oxnrNANCE No. 2012-333 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A CONTRACT OF SALE (HERElN SO CALLED), AS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A", BY AND BETWEEN THE CITY OF DENTON (THE "CITY"), AND GARY DENNIS DILLARD (THE "SELLER"), CONTEMPLATING THE SALE BY SELLER AND PURCHASE BY CITY OF A 3.480 ACRE TRACT OF LAND, MORE OR LESS, BElNG GENERALLY LOCATED 1N THE 2500 BLOCK OF EAST MCKINNEY STREET AND SITUATED IN THE M.E.P. & P.R.R. CO. SURVEY, ABSTRACT NUMBER 1475, CITY OF DENTON, DENTON COUNTY, TEXAS (THE "PROPERTY INTERESTS"); FOR THE PURCHASE PRICE OF THREE HUNDRED NINETY THOUSAND AND NO/100 DOLLARS ($390,000.00); AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE AND DELIVER ANY AND ALL OTHER DOCUMENTS NECESSARY TO ACCOMPLISH CLOSING OF THE TRANSACTION CONTEMPLATED BY THE CONTRACT OF SALE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AUTHORIZING, TO THE EXTENT APPLICABLE, RELOCATION EXPENDITURES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City made an Initial Offer (herein so called) to purchase the Property Interests, pursuant to Ordinance No. 2012-164, passed and approved by the City Council of the City of Denton on August 7, 2012; WHEREAS, the City made a Final Offer (herein so called) to purchase the Property Interests, pursuant to Ordinance No. 2012-288, passed and approved by the City Council of the City of Denton on October 16, 2012; WHEREAS, Seller has made a counteroffer to the Final Offer of City; WHEREAS, City is amenable to the counteroffer, and finds that it is in the best interest to agree to same; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to execute (i) the Contract of Sale, by and between the City of Denton, as buyer and Gary Dennis Dillard, as seller, in the form attached hereto and made a part hereof as Exhibit "A", with a purchase price of $390,000.00, plus certain costs as prescribed in the Contract of Sale; and (ii) any and all other documents necessary for closing the transaction contemplated by the Contract of Sale. SECTION 2. The City Manager is hereby authorized to make expenditures (i) in accordance with the terms set forth in the Contract of Sale; and (ii) to the extent applicable, Ordinance No. 2012-073, dated April 17, 2012, pertaining to relocation related expenses and advisory services. SECTION 3. If any section, article, paragraph, sentence, phrase, clause or word in this ordinance, or application thereof to any persons or circumstances, is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance; the City Council declares that it would have ordained such remaining portion despite such invalidity, and such remaining portion shall remain in full force and effect. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. • . � PASSED AND APPROVED this the � ATTEST: JENNIFER WALTERS, CITY SECRETARY � �; ' l � /.r.�I �f �� i . , APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: � ' /� . 6�'� � ��a�r STATE OF TEXAS COUNTY OF DENTON CONTRACT OF SALE N�TICE YOU, AS QWNER OF T� PROPERTY (AS DEFINED BELOV4�, HAVE THE RIGHT TO: (1) DISCUSS ANY OFFER 4R AGREEMENT �E�AIt�DING THE CITY O�' DENTOl`�'� �iC62�[�I�'ION OF THE PR�PE12'Y'3� WITH OTA�Rfi; �R (2) lK1EEF �gIE OFFER OR AGREEMENT CONFIDENTIAL, UNLESS THE OFFER OR AGREEMENT IS SUBJECT TO �FlAPTER 552, GOVERNMENT CODE. � 3 Thi Contract of Sale (the "Contract"} is made this ���/"( day of Q���y- �{i�� L , 2012, effective as of the date of execution hereof by � a� defined hexein (the "Effective Date"), by and between Gary Dennis Dillard (referred to herein as "Seller") and the City of Denton, Texas, a Home Rule Municipal Corporation of �NIT/q Denton County, Texas (referred to herein as "Buyer"}. � �., RECIT.ALS WHEREAS, Seller owns that certain tract of land being more particularly described on Exhibit "A", att�ched hereto and made a part hereof for all pwrposes, being located 'an Benton Couniy, Texas (tb.e "Land'�; and Vi1HEREAS, Seller desires to sell to Buyer, and Buyer desires to buy from Seller, the Land, together with any and all rights or interests of Seller in and to adjacent streets, alleys and rights of way and together with a11 an.d singular the improvements and fuctures thereon and all other rights and appurtenances to the Land (collecfively, the "Pro�erty"}. ARTICLE I SAi�E OF PROi'ERTY Foz the consideration hereinafter set forth, and upon the terms, conditions and provisions herein contained, and subject to the reservations herein, Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from Seller, the Property. Seller, subject to the limita�ion of sucb. ;reservation made herein, shall reserve, for himself, lus heu•s, devisees, successors and assigns a11 oil, gas and ather minerals in, on and under and that may be produced from the Property. Seller, his heirs, devisees, successors and assigns shall not have the right to use ox access the surfaoe of the Prvperty, in any way, manner or form, in connec�ion with ar related to the reserved oil, gas, and other minerals and/or xe�ated io exploration and/or production oi the oil, gas and other minerals resexved herein, including without limitation, use or access of the surface of the Property for the locaLion of any well or drill sites, well bores, whether vertical or any deviation frozn vertical, water wells, pit areas, seismic activities, tanlcs or tank batteries, pipelines, roads, electxicity or other utility infrastructure, and/or for subjaccnt or lateral support for any surface facilities or well bores, or any other infrastructure or improvement of any kind or ty�e in connection wit1� �r related to the reserved oil, gas and other mine�als, andlor related ta the explaratian or production af same. As used herein, the term "rninerals" shall include oil, gas and all associated hydrocarbons, and shall exclude (i) all substances (except oil, gas and a11 associated hydrocarbons) that any reasonable extraction, mining or other exploration a.udlor production met;lvci, operation, process or procedure would consume, deplete or destroy the surface of the Property; and (ii) all substanees (except oil and gas) which a.re at or near the sur£ace of the Property. The intent of the parties hereto is that the meaning of the term "minerals" as utilized herein, shall be in accordance with that sei forth in. Reed v. Wylie, 597 S,W.2d 743 (Tex. 1980). As used herein, the terxn "surface of the Property" shall uiclude the area from the surface of the earth to a depth of five hundred feet {500') below the surface of the earth atid all areas abave the surface of the earth. ��.1lTl ARTICLE II �� PURCHASE PRICE AND E RNEST 4NEY / �l ��� it /,� i � 2.01 Purchase Prie�. Th Purchase Price o b� pai a eller for the Property is the �NtT/ sum of Three Hundred ' Thausand T d No/1�0 Do ars �9� �d,��,g, oo} (the "Purchase Price"}. � � � � y, r p �j � / /�� / � /G �z- c� 2.02 Earnest Money. Buyer shall deposit the sum of One Thousan an No/100 ,/ r Dollars ($1,000.00), as Earnesi Money (herein so called) with ' , , ��/' �� � r , Denton, Texas, 76205 (the "Title Company"), as escrow ��� � agent, witlun fourteen (14) calendar days of the EfFective Date hereof. All interest earned thereon shall becflme part of the Earnest Money rznd shall be applied or disposed of in the '� �, �(Z C G/-�` same manner as the original Earnest Money deposit, as provided in this Contract. If the �-� ���'� purchase contemplated hereunder is consurmmated in accordance with the terms and the provisions hereof, the Earnest Money, together with all interest earned thereon, shall be 1�� �. applied to the Purchase Priee at Closing. In all otlier events, the Earnest Money, and the �,�% I� interest accrued thereon, shall be disposed of by the Title Company as provided in this Contract. . ��\T � C 2.03 independent Contract Consideratian. Within fourteen (1�) calendar days after the Effective Date, Buyer sha11 deliver to the Title Company, payable to and for the benefit of Seller, a checic in the amount of One Hundred and No/100 Dollars ($100.00) (the "Independent Contract Consideration"), which amount the parties hereby acknowledge and agree has been bargained for and agreed to as consideration for Seller's execution and delivery of the Gontract. The Independent Contract Consideration is in Contract of Sale I� addition to, and independen Contract, is non-refundable, provision of this Contract. 3.01 Title Commitment. t of any other consideration or payment provided in this and shall be retained by Seller notwitl�standing any other ARTICLE III 'i'�T]LE AND SIT1aVEY (a) Wifihin twenty (20) calendar da.ys after the Effective Date, Seller sha11 cause to be furnished to Buyer a current Comtnitment for Title Insurance (the "Title Commituient") for the Property, issued by Title Company. The Title Commitment shall set forth the state of title to the Property, including a}ist of liens, mortgages, security interests, encumbrances, pledges, assignments, claims, charges, leases (sw•face, space, mineral, or otherwise), conditions, rest��ictions, aptions, severed mineral or rayalty interests, conditional sales cflntracts, rights of first refusal, restricfive covenants, exceptions, easements (temporary ar permanent), rights-of-way, encroaclunents, ar any other outstanding claims, rnterests, estates or equities of any nature (each of which are referred to herein as an "Exception"). (b) Along with the Title Commitment, Seller shal] also eause to be delivered to Buyer, at Buyer's sole cost and expense, true and correct copies of all instruments that cxeate or evidence Exceptions (the "Exception Documents"), including thase described in the Title Comtnitment as exceptions to whi�h the con�eyance will be subject and/or which are requi�ed to be released or cured at or prior to Closing. 3A2 Survey. Within tlurty (30) calcndar days after the Effective Date, Seller shall cause to be prepared at Buyer's expense, a current on the ground survey of the Property (the "Survey"). The contents of the Survey shall be prepared by a surveyor selected by Buyer and shall include the matters prescribed by Buyer, which may include but not be lirnited to, a depiction of the locatian of all roads, streets, easements and rights of way, both on and adjoining the Property, water courses, 100 year flood plain, fences and improvements and structures of any kiad. The Sutvey shall describe the size of the Property, in acres, and contain a metas and baunds description thereof. Seller shall furnish or cause to be furnished any affidavits, certificates, assurances, and/or resolutions as requixed by the Title Company in ordex to amend the survey exception as required by Section 3.05 below. The description of the Property as set forth in the Survey, at the Buyer's election, shall be used to describe the Property in the dee to con�ey the Property to Buyer and shall be the descriptian� (�et o t Title P'cy S���N �'���/I f� /� 3.03 Review of T' e Commitment, Survey and E ept on Documents. Buyer shall have a period of } calendar days {the "Title Review Period") commencing with the day Buyer receives the last of the Title Commitment, the Survey, and tbe Exception Dacuments, in which to give written notice to Seller, specifyiug Buyer's objectians to one or more of the items ("Objections"), if any. A11 items set forth in the 5chedule C of Contract of Sale the Title Commiiment, and all other items set forth in the Title CommitmenE which are requ�red to be released or otherwise satisfied at or prior to Closing, sha11 be deemed to be Objections without any actiQn by Buyer. 3.04 Seller's 06ligatiou to Cnre; Buyer's Right to Terminute. The Seller shall, witivn twenty (20) calendar da.ys afler Seller is provided notice of ()bjections, either satisfy the Objectxons at Seller's sole cost and expense or promptly notify Buyer ixt writing of the Objections that Seller cannot ar will not satisfy at Seller's expense. Noiwithstanding the foregoing sentence, Seller shall, in any event, be obligated to cure those Objections or Exceptions that have been voluntarily placed on or against the Property by Seller after the Effective Date, If Seller fails or refuses to satisfy any Objections that Seller is not obligated to cure within the allowed twenty {20) calendar day period, and if Buyer does not agree in writing to an extension of that period, said extension to not exceed an additional thirty (30) calendar days, then Buyer has the option of either: (a) waiving t}ie unsatisfied Objectians by, and anly by, notice in writing to Seller prior to Closing, in which event those Objections shall become Permitted Exceptions (herein so called}, or (i�j terminating this Contraet by notice in writing prior to Closing and receiving back the Earnest Money, in which latter event Seller and Buyer shall have no further obligations, one ta the other, with respect to the subject matter of this Contract. 3.US Title Policy. At Clasing, Scller, at Buyer's sole cost and expense, shall cause a standard Texas Owner's Policy of Title Insuran.ce ("Title Policy") to be furnished ta Buyer. The Title Policy shall be issued by the Title Cornpanp, in t1�e amount of the Purchase Price and inswring that Buyer has indefeasible fee simple title to the Property, subject only to the Pertnitted Exceptians. The Title Policy may contai.n only the Permitted Exceptians and shall contain n� other exceptions to title, with the standard printed ar common exceptions amended or deleted as follows: (a} survey exception must be amended if required by Buyer to read "shortages in area" anly (a.lthough Schedule C of the Title Commitment may condition amendment on the presentation of an acceptable stirvey and payment, to be boi�ne solely by Buyex, of any required additional. premium); (b) no exception will be permitted for "visible and apparent easements" or woxds ta that effect (although reference may be made to any specific easement or use shown on the SLU vey, if a Permitted Exception); (c) no exception will be permitted for "rights of parties in possession"; (d) no liens will be shown on Schedule B. Notwithstanding the enumeration of the following exceptions, amendments and/or Contract of Sale deletions, Buyer may object to any Exception it deems material, in its solc discretion. ARTICLE IV �l/ ��` l_. � �� �EASIBILITY REVIEW PERIOD % r ° � � / � �� /6 l� 4.D1 Revie�v Per�iod. Any term or provision of t�is ntract notwithstand.ing, the obligaiions oi Buyer specified in this Contract a�re whall conditioned on Buyer's having determix�ed, in Buyer's sole and absolute discretion, du ing the period eommencing with �N�Tl,<j� the Effective Date of this Contract and ending se�e (�calendax days thereafter (the "Absolute Review Period"), based on such tests, exanainations, studies, investigations and inspections of the Froperty the Buyer deems necessary or desirable, includi.ng but not li.mited to studies or inspections to determine the e�istence of any environmental hazards or conditions, perform.ed at Buyer's sole cost, that Buyer finds the Property suitable for Buyer's purposes, Buyer is granted the right to conduct engin.eering studies of ihe Property, and to conduct a physical inspectian af the Property, including inspections that invade the surface and subsurfaee of the Property. If Buyer determines, in its sole judgment, that the Property is not suitable, for any reason, for Buyer's intended use or purpose, the Buyer may terini.nate this Contract by written notice to the Seller, as soon as reasonably practicable, but in any event prior to the expiration of the Absolute Review Perivd, in which case the Earnest Money will be returned to Buyer, and neither Buyer nor Seller shall have an.y fiirther duties or obligations hereunder. In the event Buyer elects to ternvnate this Contract pursuant to the terms af this Article IV, Section 4.01, Buyer will provide to Seller copies of (i} any and all non-confidential and non- privileged reports and studies obtained by Buyer duri_ng the Absolute Review Per�od; and {ii) the Survey. . ARTICLE V REPRESENTATIONS, WARRANTIES. COVENANTS AND AGREEMENTS S.Ul Representations and Warranties of Seller. To induce Buyer io enter into this Contract and consummate the sale and purchase of the Property in accordance with the terms and provisions herewith, Seller represents and warrants to Buyer as of the Eifective Date and as of the Closing Date, except where specific reference is made to another date, that: (a) The deseriptive information concerning the Property set forth in this Contract is complete, accurate, true and correct. {b) There are no adverse vr other parties in possession of the Properk� or any part thereof, and no party has been granted any license, lease or other right reiated to the use or possession of the Property, or az�y part thereof, except those described in the Leases, as defined in Article V, Section 5.02(a). {c) The Seller has good and indefeasible fee simple title to the Praperty, subject anly to the Permitted Exceptions. Contract of Sale {d) The Seller has the full right, power, and authority to sell and convey the Property as provided in this Contract and to carry out Seller's obligations hereunder. (e) The Seller has not received notice of, and has no other knowledge or information of, any pending or threatened judic�al or ac�ministrative action, or any action pending or threatened by adjacen# landowners or other persons against ar affecting the Pxoperty. (� The Seller has disclosed to Buyer in writing of any and all facts and circumstances relating #o the physical condition af the Property that may materially and adversely affect the Property and operation or intended operation thereof, or any porti4n thereof, of which 5eller has knowledge. (g) The Seller has paid a1L real estate and personal property taxes, assessments, excises, and levies that are pres�ntly due, if any, which are against ar are related to the Property, or will be due as of the Closing, and the Property will be subject to no such liens. �Nirrq� (h) Se11er has not contracted or entered into any agreement with any real estate , broker, agent, fmder, or any other party in connection with this transaction or taken any action which would result in any real estate broker comrnissions or finder's fee or other fees payable to any other party with respect to the � transactions contemplated by this Contract O���y,� ����,� �j� �.G S n� � � �Jfo Is � � P.�c,�i��r� � J��� ��'�`�►�ss��� � ��.t�����-�— (i) o the best of Seller's lcnowledge, t ere h s o o urre e d�sposal or releas of any Hazardous 5ubstance to, on or from the Propexty. ���� /� As used in this Contraet, "Hazardous 5ubstance" means and includes a11 hazardous and toxic substances, waste or materials, chemicals, and any pollutant ar contanunant, including without limitation, PCB's, asbestos, asbestos- confaining material, petroleum products and raw materials, that are included under or regulated by any Environmental Law or that woul.d or may pose a health, safety or environmental huard. As used in this Contract, "Environmental Law" means and ancludes a11 federal, state, and local statutes, ordinances, regulatians and rules presently in force or hereai�er enacted relating to environmental quality, con#aminatian, and clean-up of Hazardous Substances, including without limita.tion, the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601, et seq.), as amended by the Superfiind Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act (�42 U.S.C. 6901, et seq.), as amended, Toxic Substance Control Act, 15 U.S.C. 2601, et seq,, and state superlien and environmental clean-up statutes and all rules and regulations presently or hereafter promulgated under or related to said statutes, as arnended, Contract of Sale A �� - - � � ■n - � i i " � , � r . e � - � - !_ � _ �- e—°-`-� - � �•r�� -�., - �� 1 � .��� :: - - - ° - �'��'� � �. .� �� _ :-r � �.� - � ��• ia �` e � b � g. l � /�6 f �- (k) The Seiler is not a"foreign person" as def ed in Section 1445 af the Internal Revenue Code of 1986, as amended. (1) Seller represents and warrants to Buyer that he is a single person. 5.02 Covenants and Agreements of Seller. Seller covenants and agrees with Buyer as follows: " (a) Ur�less stated otherwise, within ten (lU) calendar days after the Effective Date, Sellez, at Seller's sole cost and expense, shall deliver to Buyer, with respect fo the Property, true, cflrrect, and cam�lete copies of the following: (i) All lease agreements and/or oceupancy agreements and/or licenses of any kind or nature (if ora1, Seller shall provide to Buyer in wri�ing all material terms thereo fl relating to the possessivn of the Property, or any part thereof, including any and all modificatians, supplements, and aanendments thereto (the "Leases"). (ii) All environmental audits, soil tests and engineering and feasibility reports, including any and all madificatio�is, supplements and amendxnants thereto, with respect to the Property that Seller possesses or has the right to receive. (b) From the Effective I�ate until the date of Closing or eaxlier terminaiion of this Contract, Seller shall: (i) Not enter into any written or oral contract, lease, easement or right of way agreement, conveyance or any other agreement of any kind with respcct to, or affecting, the Property that will not be fully performed on or before t}ie Closing or would be binding on Buyer or the Property after the date of Closing. (ii) �111� (iv) Advise the Buyer promptly of any litigation, arbitration, or administrative hearing concerning or affecting the Property. Not take, or omit to take, any action that would result in a violation of the representations, warranties, covenants, and agreem,ents of Seller. Not sell, assign, Iease or con�ey any right, title or interest whatsoever in or to the Property, or create, grant or permit to be attaehed or pexfected, any Contract of Sale �NI Tlq� lien, encumbrance, or charge thereon. (c) Seller shall indemnify and hold Buyer harmless, to the extent permitted by law, from all loss, liability, aud expense, including, without limitation, reasonable attorneys' fees, arising or incurred as a result of any liens or claims resulting from labor or materiaLs furnished to the Property under ar�y written or oral contracts arising or entered into prior to Closing. 5.03 Sui�vival Reyond Closing. Notwithstanding anything to the contrary contained in this Contract, the representations, warranties, covenants and agreeinents oi Seller contained in this Contract shall survive the Closing, and shall not, in any circurnstance, be merged with the Special Warranty Deed, as described in Article VII, Section 7.02(a}. ARTICLE VI CONDITIDNS PRECEDENT TO PERFORMANCE 6.01 Performance of Seller's Obligations. Buyer is not obligated to perform under this Con�ract unless, within the designated time periods, all of the following shall have occurred: (a) Seller has per�ormed, furnished, or caused to be furnished to Buyer all items required to be so performed or furnished under other sections of this Contract; and (b) Seller cures or Buyer waives in writing, within the time periods specified in Article III, all of Suyer's objections made in accorda.nce with Ariicle III. b.02 Breach of Seller's Representations, Warranties, Covenants and Agreements. Buyer is not obligated to perform under this Contract tulless all representations, warranties, covenants and agxeements of Seller contained in this Contract are true and correct or have been performed, as applicable, as of the Closing Date, except where specific reference is made to another date. 6.03 Adverse Change. Buyer is not obligated to perform under this Contract, if on the date of Closing, any portion of the Properly has been condemned by an entity other than Suyer, or is the subject of condemnation, eminent domain, or other material proceeding initiated by an entity other than 8uyer, or the Properiy, or any pai.t thereof, has been materially or adversely impaired in any manner. 6.44 Review Period. Buyer is not obligated to perform under this Contract if Buyer delivers notice to Seller pursuant to Article IV, Section 4.01 that Buyer has determined that the Property is unsuitable to or for Buyer's purposes. 6A5 Buyer's Right to Waive Conatitions Precedent. Notwithstanding anything contained in this Contract to the contrary, Buyer may, at Buyer's optioii, elect to wa.ive any of the conditions pxecedent to the performance of Buyer's obligations under this Contract by giving to the Sellex, at any time prior to Closing, a writtcn waiver specifying the waived cond'ztion precedent. Contract of Sale 6.06 Buycr's Termination if Conditions Precedent Not 5atisfied ur Waived. If any of the conditions precedent to the performance of Buyer's obligations under this Contract have not been satisfied by Seller or waived by the Buyer, the Buyer may, by giving written notice to Seller, terminate this Contract. On Buyer's termination, the Earnest Money sha11 be imrnediately returned to Buyer by the Title Company. The Seller sha11, on written request from Buyer, promptly issue the insf.ructions necessary to instruct the Title Company to return to Buyer the Earnest Maney and, thereafter, except as otherwise provided in this Cantract, Buyer and Seller shall have no further obligations under this Contract, one to the other. ARTIC'LE VII CL05ING ��11Tlql 7.01 Date and Plaee of Closing, The Closing (herein so called) shall talce place in the � offices of tlae Title Company and slaall be accomplished through an escrow to be established with the Title Company, as escrowee. The Closing Date (herein sometimes called), shall be � � � unless otherwise mutually agreed upon by Buyer and Seller. �� p� ���(% �� ���rr'�'�'�" ��l �-��r2J 7.�2 Items to be Delivered at the Closing. ' // /� /� (a) Seller. At the Closing, Seller shall deliver or cause to be delivered to Buyer or / the Title Company, at the expense of the party designated herein, the followmg item�s: (i) The Title Policy, in the form specified in Article III, Sectian 3.05; (ii) The Special Warranty Deed, substantially in the form as atta.ched hereto as Exhi�it "B", subject only to the Permitted Exceptions, if any, duly executed by Seller and acknowledged; (ui) Other items reasonably requested by #he Title Compan.y as administrative requirements for consummating the Closing. (b) Bu er. At the Closing, Buyer shall deliver to Seller or the Tiile Compa.ny, the foliowing items: (i) The sum required by Article II, Section 2.d1, less the Earnest Money and interest earned thereon, in the form of a check or cashier's check or other immediately available funds; (u) Other items reasonably requested by the Title Company as administrative requirements for consummatin.g the Closing. 7.03 Adjustments at Closing. Notwithstanding anything to the contrary contained in Contract of Sale this Contract and without limiting the general application of the provisions of Section 5.03, above, the provisions of this Article VII, SecNon 7.43 shall survive the Closing. The follovving item shall be adjusted or prorated between Seller and Buyer with respect to the Property: (a} Ad valorem taxes relating ta the Property for the calendar year in which the Closing shall accur shall be prorated between Seller and Buyer as of the Closing Date. If the actual amount of t�es for the calendar yeax in which the Closing shall occur is not laiown as of the Closing Date, the proration at Closing shall be based on the amount of taxes due and payable with respect to the Property for the preceding calendar year. As soon as the amount of taxes levied against the Property foT the calendar year in which Closing shall occur is known, Seller and Buyer shall readjust in cash the amount of taxes to be paid by each party witli. the result that Seller sl�all pay for those t�es attributable to the period of time prior to the Closing Date (i,ncluding, but not limited to, subsequent assessrnents for prior years due ta change of land usage or ownership occurring prior to the Closing Date) and Buyer shall pay for those t�es attributable to the period of time commenciz�g with the Closing Date. 7.04 Possession at Closing. Possession of the Property shaJ.l be delivcred to Buyer at Closing, 7.05 Costs of Closing. Each party is responsible for paying the legal fees of its counsel, in neg�tiating, preparing, and elosing the transaction contemplated by tbas Contract. Seller is responsible for paying fees, costs and expenses identiiied herein as being the respansibility of Seller. Buyer is responsible for paying fees, costs and expenses identified herein as being the responsibility of Buyer. If the responsibility for such costs or expenses associated with closing the transactson conicmplated by this Contract are not identified herein, such costs or expenses shall be allocated between the parties in the customary manner for closings of real property similax to the Property in Denton County, Texas. ARTICLE VIII DEFAULTS AND REMEDIES 8.01 Seller's Defaults and Suyer's Remedies. (a) Seller's Defanits. Seller is in default under this Contract on the occurrence of any ane or rnore of the £ollowing events: (i) Any of Seller's warranties or representations contained in tkus Contract are unixue on the Closing Date; or (ii) Seller fails to meet, comply with or perform ar�y covenant, agreement, condition precedent or abligation an Seller's part rec�lured within the time limits and in fihe manner required in tiv.s Contract; or Contract of Sale (ui) Seller fails to deliver Section 7.02(a) of thi Buyer or fermination hereof prior to Closing. at Closing, ihe iiems specified in Article VII, s Contract far any reason other than a default by of this Contract by Buyer pursuant to the terms (b) Buyer's Remedies. If Seller is in default under this Contract, Buyer as Buyer's sole and exclusive rennedies for the default, may, at Buyer's sole option, do an� of the followiug: (i) Terminate tlus Contract by w�ritten notice delivered to Seller in which event the Buyer shall be entitled to a return of the Etunest Money, and Seller shall, pxomptly on written request from Buyer, execute and deliver any documents necessary to cau�e the Title Company to return to Buyer the Earnest Money; (ii) Enfarce specific perforniance of tlus Contract against Seller, requiruig Seller to convey the Property to Buyer subject to no liens, encumbrances, exceptions, and conditions other than thase shown on the Title Coxnmitment, whereupon Buyer shall waive iitle objections, if any, and accept such title without reduction in Purchase Price on account of title defects and shall be entitled to assert any rights for damages based on 5eller's representations, warranties and obligations that are not waived by Buyer by its acceptance of 5eller's title; and (iii) Seek other recourse or relief as may be available to Buyer at or by law, equity, eonCract or otherwise. 8.02 Buyer's Default and Seller's Remedies. (a) Buyer's Default. Buyer is in default under this Contract if Buyer fails to deliver at Clasing, the items specified in Artiele VII, Section 7.02(b) �f this Contract for any reason other than a default by Seller under this Contract or texmination of this Contract by Buyer pursuant to the terms hereof prior to Clasing. (b) Seller's Aemedy. If Buyer is in default under this Contract, Seller, as Seller's sale and exclusive remedies for the default, may, at Seller's sole option, do either ane of the following: (i) Terminate this Cont�act by written notice delivered to Buyer in. wluch event the Seller shall be entitled to a return of the Earnest Money, and Buyer shall, protuptly oil w�•itten request from Seller, execute and deliver any documents neeessary to cause the Title Company to return to Seller the Earnest Money; or (ii} Enforce specific perfarmance of this Contract against Buyer. Contract oFSale ART�CLE IX MISCELLANEOUS 9.01 Notice. All notxces, demands, requests, and other communications required hereunder shall be in writing, delivered, unless expressly provided otherwise in this Cantract, by telephonic facsimile, by hand del.ivery or by United States Mail, and shall be deemed to be delivered and received, upon the earlier to occur of (a) the date provided if provided by telephoiuc facsimile �r hand delivery, and (b) the date of the deposit of, in a regularly maintained receptacle for the United States Mail, registered or certified, return receipt requested, postage prepaid, addressed as follows: SELLER: Il�(�D�����' /� �?2�i �1/'O Telecopy Copies to: For Seller: Telecopy: BUYER: City of Denton Paul Williamson Real Estate and Capital Support 9dl-A Texas Street Denton, Texas 76209 Telccopy: (944} 349-8951 For Buyer: Richard Casner, Deputy City Attoz'�ey City Attorney's Offtce 21 S B. McKinney Denton, Texas 76201 Telecopy: (940) 3 82-7923 9.02 Gaverning Law and Venue. This Contract is being executed and delivered and is intended to be performed in the State of Texas, the laws of Texas governing the validity, construction, enforcement and interpretation o£ this Contract. THI5 CONTRACT IS PERFORMABLE lN, AND THE EXCLUSIVE VENLTE FOR ANY ACTION BROUGHT WITH RESPECT HERETO, SHALL LIE IN DENTON COL]NTY, TEXAS. 9.03 Entirefy and Amendments, This Contract embodies the entire agreement between the parties and supersedes all prior agreements and understandings, if any, related to the Property, and may be amended or supplemented only in writing executed by the party against whom enforcement is sought. 9.04 Parties Bound. This Contract is binding upon and inures to the benefit of Selterc and Buyer, and theix respective successoxs and assigns, If rec�uested by Buyer, Seller agrees to execute, acknowledge and record a memorandum of this Contract in the Real Contract of Sale Property Records of Denton County, Texas, imparting notice of this Contract to the public. 9.�5 Risk of Loss. If any damage or destruction to the Property shall occur pxior to Closing, or if any condemnation or any eminent domain proceedings are threatened or initiated by an entity or party other than Buyer that might result in the taking of any portian of the Property, Bttyer may, at Buyer's option, do any of the following: (a) Termina.te this Contract nnd withdraw from this transaction withaut cost, obligation or liability, in which case the Earnest Money shall be immediately returned to Buyer; or (b) Consummate tlus Contract, in which case Buyer, with respect to the Property, sha.11 be entitled ta receive any (i} in the case of damage or destruction, all insurance proceeds; and (u) in fihe case of eminent domain, proceeds paid for the Property related to the eminent domain proceedings. Buyer shall have a period of up to ten (10) calendar days after receipt of written notification from Seller on the final settlement of a11 condemnation proceedings or insurance claims related to damage or destruction of any improvement located on the Property, in which to make Buyer's election. In the event Buyer elects to close prior to such final settlement, then the Closing sha11 take place as provided in Article VII, above, and there shall be assigned by 5eller to Buyer at Closing all interests of Seller in and to any and all insurance proceeds or condemnation awards which may be payable to Seller on account of such event. In the event Buyer elects to close upon tlus Contract after final settlenaent, as deseribed above, Closing shall be held five (S) business days after such final settlement. 9.06 Further Assuranees. In addition to the acts and deeds recited in this Contract and contemplated to be performed, executed and/or delivered by Seller and Buyer, Seller and Buyer agree to perform, execute and/or deliver, or cause to be perf�rmed, executed and/or delivered at the Closing or after the Closing, any further deeds, acts, and assurances as are reasonably necessary to consummate the transactions contemplated hereby. Notwithstanding anythin.g to t1�e conirary contained in this Contraet and withaut limiting the general application af the provisions of Section 5.03, above, the provisions af this Article IX, Section 9.06 shall survive Closing. 9.07 Time is of the Essence. It is expressly agreed between Buyer aud Seller that time is of the essence with respect to tb.is Contract. 9.08 Exhibits. The Exhibits which axe referenced in, and atta.ched to this Contract, are incorporated in and naade a part of, this Contract for all purposes. 9.09 Delegation of Authority. Authority to take any actions that are to be, or may be, taken by Buyer under tl�is Contract, including without limitation, adjustment of the Closing Date, are hereby delegated by Buyer, pursuant to action by the City Couucil of Coniract of Sale Denton, Texas, to Phil Williams, General Manager/Electric Administration of Buyer, or his designee. 9.1Q Contract Egecution. This Contract of Sa1e may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart. 9.11 Business Days. If ihe Closing Date or the day of performance required or permiited under this Contract falls on a Saturday, Sunday or Denton County holiday, then the Closing Date or the date �f such performance, as the case may be, shall be the next following regular business day. 9.12 Kelocation. Relocation advisory services and relocation financial assistance, if applicable pursuant ta Ordinance No. 2012-�73 {the "Relocation Ordinauce"), shall be administered as provided by the Relocation Ordinance, aside and apart from the transaction contemplated by this Cantract. �F�.,LER: � �`�,�� � Gary Dennis Dillard Executed by Seller on the � day of � � �" � %%� � � � , 2012. BUYER: By: GEORGE � CA BELL, CITY MA AGER 1� Gc � Ga t-t tZ_ . � � � Executed by Buyer on the �(p�h , ay of � , 2012. Executed by Buyer on the � day of 9 , 2012 A1"I`EST: JENNIFER WALTERS, CITY SECRETARY , ' 1TIq� BY: �.. Contract af Sale ��11 T/ql � ��11TIq� APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY �� .� ��z.. � BY: Contract of Sale RECEIPT OF AGREEMENT BY TITLE COMP'ANY By its execution below, Title Company acknowledges receipt of an executed copy of this Contract. Title Company agrees to comply with, and be bound by, the terms and provisions of this Contract to perform its duties pursuant to the pravisians of this Contract and comply with Section 6445(e) of the Internal Revenue Cade of 1986, as amended from time to time, �.nd as furkher set forth in any regulations or forms promulgated thereunder. ��11T/q� TITLE COMPANY: ��jj m•..i n - Trn_ ��" ���J��/� �O�I �' 3Z� ( .�,���� `/ L�''% Denton, Texas �� /l�z l0 Telephone: /�r�� , �[�3 � 35° � v Telecopy: ( "f : Printed Name: Title: Contract receipt date: , 2012 Contract of Sale EXHIBIT "A" to Contract of Sale Legal Description af Praperty BEING all that certain lat, tract or parcel of land situated in the M.E.P. & P.R.R. Survey, Abstract Number 1475, City of Denton, Denton Cotuzty, Texas, and being a part of a tract of land described by deed to Gary Dennis Dillard and wi�fe, Jaymi Chris Dillard, recorded in Volurn�e 1188, Page 730 of the Deed Records, Denton County, Texas (D.R.D.C.T.) and being more particularly described as fallows: BEGINIYING at a 1/2 inch uon rod found for a southeast corner of said Dillard tract and the northeast corner of a tract of land described by deed to Staff Realty, recorded under County Clerk's File Nutnber 94-6845, Official Public Records, Denton Caunty, Texas (O.P.R.D.C.T.}, same point being in the west line of a tz-act of land described. by decd to Joan Cohagen, Trustee of the Joan Cohagen Living Trust, recorded under Instr�iment Number 2005-69429, O.P.R.D.C.T,; . THENCE South 89 degrees 27 minutes 42 seconds VVest, with the north line of said Staff Realty tract for a distance of 218.49 feet to a 1/2 inch iron rad with yellow cap sta.mped "Arthur Surveying Company" (ASC) set for the southwest corner of said Dillard tract and the most southerly southeast corner of a tract of land described by deed ta Gerard Roland Vela and Emma Lamar Vela, recorded in Volume 3225, Page 252, D.R.D.C.T.; THENCE Nortb 00 degrees 11 minutes 09 seconds West, with the east line of said Vela tract, a distance of 456.97 feet to a 1/2 inch iron rod with yellow cap stamped "ASC" set for most easterly northeast corner of said Vela tract and the southeast corner of a tract of land described by deed to Brian Carter and Brenda Carter, recorded under Instrument Number201D-121541, O.P.R.D.C.T.; THENCE North 00 degrees 22 iuinutes 52 seconds West, with the east line af said Carter tract, a distance of 301.55 feet to a 1/2 inch iron rod with yellow cap stamped "ASC" set for the northwest corner of said Dillard tract and the northeast cflrner of said Carter tract, same point being in the south right-of-way line of McK.inney Street; THENCE South 72 degrees 31 minutes 21 seconds East, with ihe south right-of-way line of McKiruiey Street, a distance of 169.25 feet to a 1/2 inch iron rod found for the most northerly northeast corner of said Dillard tract and the narthwest corner of a tract of land described by deed to BoUby R. Mitchell and Corine Mitchell, recorded in Volume 419, Page 22, D.R.D.C.T.; Contract of Sale TIIENCE Soutl� 00 degrees 47 minutes 38 seconds West, with the west line of said Mitcheil tract, a distance of 177.14 feet to a 1/2 inch iron rad with yel�aw cap stamped "ASC" set for an inner ell corner of said Dillard tract and tU.e southwesi corner of a tract of land described by deed to Bobby R. Mitchell and Corine Mitchell, recorded in Volume 473, Page 673, D.R.D.C.T.; T�iENCE North 89 degrees 50 minuies 45 secands East, with the souih line of said Mitchell tract (Val. 473, Pg. 673), a distance o� 74.79 feet to a 1/2 inch iron rod with yellow cap stamped "ASC" set for the most eastexly northeast corner of said Dillard tract and the southeast corner of said Mitchell tract (Vol. 473, Pg. 673), same point being in the west line of said Cohagen tract; THENCE South O1 degrees 16 minutes 43 seconds West, with the west line of said Cohagen trac�, a distance of 528.84 feet to the POINT QF B�GI1�1NiNG and containing 3.48� acres of land, more or less. Contract of Sale � �1�'�l��►T�� ��� ���� �� NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SPECIAL WARRANTY DEED STATE OF TEXAS § COUNTY OF DENTON § KNOW ALL MEN BY THESE PRESENTS That Gary Dennis Dillard, a single person ( herein called "Grantor"), for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00), and other good and valuable consideration to Grantor in hand paid by the City of Denton, Texas, a Texas Home Rule Municipal Corporation (herein called "Grantee"), 215 E. McKinney, Denton, Texas 76201, the receipt and sufficiency of which are hereby acknowledged and confessed, subject to the reservations set forth below, has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and CONVEY, unto Grantee all the real property in Denton County, Texas being particularly described on Exhibit "A", attached hereto and made a part hereof for all purposes, and being located in Denton County, Texas, together with any and all rights or interests of Grantor in and to adjacent streets, alleys and rigilts af way and together with all and singular the improvements and fixtures thereon and all other rights and appurtenances thereto (collectively, the "Property"). Grantor, subject to the limitation of such reservation rnade herein, reserves, for himself, his heirs, devisees, successors and assigns all oil, gas and other minerals in, on and under and that may be produced from the Property. Grantor, his heirs, devisees, successors and assigns shall not have the right to use or access the surface of the Property, in any way, manner or form, in connection with or related to the reserved oil, gas, and other minerals and/or related to exploration and/or production of the oil, gas and other minerals reserved herein, including without limitation, use or access of the surface of the Property for the location of any well or drill sites, well bores, whether vertical or any deviation from vertical, water wells, pit areas, seismic activities, tanlcs or tank batteries, pipelines, roads, electricity or other utility infrastructure, and/or for subjacent or lateral support for any surface facilities or well bores, or any other infrastructure or improvement of any kind or type in connection with or related to the reserved oil, gas and other minerals, and/or related to the exploration or production of same. As used herein, the term "minerals" shall include oil, gas and all associated hydrocarbons, and sha11 exclude (i) all substances that any reasonable extraction, mining or other exploration and/or production method, operation, process or procedure would consume, deplete or destroy the surface of the Property; and (ii) all substances which are at or near the surface of the Property. The intent of the parties hereto is that the meaning of the term "minerals" as utilized herein, shall be in accordance with that set forth in Reed v. Wylie, 597 S.W.2d 743 (Tex. 1980). As used herein, the term "surface of the Property" shall include the area from the surface of the earth to a depth of five hundred feet (500') below the surface of the earth and a11 areas above the surface of the earth. Exceptions to conveyance and warranty: 1. Easement to the City of Denton; Recorded April 22, 1986 in Volume 1867, Page 708, of the Real Property Records, Denton County, Texas. 2. Matters as disclosed by the examination of survey prepared by Douglas L. Arthur, RPLS No. 4357, dated 12/18/2012, as follows: 1. Encroachment or protrusion of fence along the property line(s). Grantor hereby assigns, without recourse or representation, to Grantee, any and all claims or causes of action that Grantor may have for or related to any errors, omissions, defects in or injury to the Property. Special Warranty Deed TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee and Grantee's successors and assigns forever; and Grantor does hereby bind Grantor and Grantor's successors and assigns to WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee and Grantee's successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof when the claim is by, through, or under Grantor but not otherwise. EXECUTED the �_ day of �, , 2012 _ � / �� U � ���� ry Dennis Dillard ACKNOWLEDGMENT THE STATE OF § COUNTY OF � This instrument was acknowledged before me on ��, 2012 by Gary Dennis Dillard. � �� _ ��m,,�����...-. \ " Y `� vxx� � �� Y� �—� M���' � Notary Public, State of Texas �,;e°r-�9,�. f��ta��y i���f���fc My commission expires: � �� .� � � �v, � ,.,� �r,�� � a� ����s a`�oF�"'� ��+�umm. E.xp, Docemher 13, 7_073 "''�q°'�':y,� �r Upon Filing Return To: The City of Denton-Engineering Attn: Paul Williamson 901-A Texas Street Denton, TX 76209 Send T� Billing Statements To: The City of Denton Attn: Finance Department 215 East McKinney Street Denton, Texas 76201 Special Warranty Deed EXHIBIT "A" to Special Warranty Deed Legal Description Of Property BEING all that certain lot, tract or parcel of land situated in the M.E.P. & P.R.R. Survey, Abstract Number 1475, City of Denton, Denton County, Texas, and being a part of a tract of land described by deed to Gary Dennis Dillard and wife, Jaymi Chris Dillard, recorded in Volume 1188, Page 730 of the Deed Records, Denton County, Texas (D.R.D.C.T.) and being more particularly described as follows: BEGINNING at a 1/2 inch iron rod found for a southeast corner of said Dillard tract and the northeast corner of a tract of land described by deed to Staff Realty, recorded under County Clerk's File Number 94-6845, Official Public Records, Denton County, Texas (O.P.R.D.C.T.), same point being in the west line of a tract of land described by deed to Joan Cohagen, Trustee of the Joan Cohagen Living Trust, recorded under Instrument Number 2005-69429, O.P.R.D.C.T.; THENCE South 89 degrees 27 minutes 42 seconds West, with the north line of said Staff Realty tract for a distance of 218.49 feet to a 1/2 inch iron rod with yellow cap stamped "Arthur Surveying Company" (ASC) set for the southwest corner of said Dillard tract and the most southerly southeast corner of a tract of land described by deed to Gerard Roland Vela and Emma Lamar Vela, recorded in Volume 3225, Page 252, D.R.D.C.T.; THENCE North 00 degrees 11 minutes 09 seconds West, with the east line of said Vela tract, a distance of 456.97 feet to a 1/2 inch iron rod with yellow cap stamped "ASC" set for most easterly northeast corner of said Vela tract and the southeast corner of a tract of land aescribed by deed to Briay� Carter and �irenda Carter, recorded under Instrument Number 2010-121541, O.P.R.D.C.T.; THENCE North 00 degrees 22 minutes 52 seconds West, with the east line of said Carter tract, a distance of 301.55 feet to a 1/2 inch iron rod with yellow cap stamped "ASC" set for the northwest corner of said Dillard tract and the northeast corner of said Carter tract, same point being in the south right-of-way line of McKinney Street; THENCE South 72 degrees 31 minutes 21 seconds East, with the south right-of-way line of McKinney Street, a distance of 169.25 feet to a 1/2 inch iron rod found for the most northerly northeast corner of said Dillard tract and the northwest corner of a tract of land described by deed to Bobby R. Mitchell and Corine Mitchell, recorded in Volume 419, Page 22, D.R.D.C.T.; Special Warranty Deed THENCE South 00 degrees 47 minutes 38 seconds West, with the west line of said Mitchell tract, a distance of 177.14 feet to a 1/2 inch iron rod with yellow cap stamped "ASC" set for an inner ell corner of said Dillard tract and the southwest corner of a tract of land described by deed to Bobby R. Mitchell and Corine Mitchell, recorded in Volume 473, Page 673, D.R.D.C.T.; THENCE North 89 degrees 50 minutes 45 seconds East, with the south line of said Mitchell tract (Vol. 473, Pg. 673), a distance of 74.79 feet to a 1/2 inch iron rod with yellow cap stamped "ASC" set for the most easterly northeast corner of said Dillard tract and the southeast corner of said Mitchell tract (Vol. 473, Pg. 673), same point being in the west line of said Cohagen tract; THENCE South O1 degrees 16 minutes 43 seconds West, with the west line of said Cohagen tract, a distance of 528.84 feet to the POINT OF BEGINNING and containing 3.480 acres of land, more or less. Special Warranty Deed Doc-226 � � � � � � �C. -- . _. _. .- (/ (J� � I�i..l' ' lX, . � � **** Electronicafly Filed Document **** ��1� '333 Denton County Cynthia Mitchell County Clerk Document Number: 2013-22fi Recorded As : ERX-WARRAIVTY DEED Rec�rded On: Recorded At: Number of Pages: Recording Fee: Parties: Receipt Number: Processed By: January 02, 2013 11:13:08 am 6 $36.00 Direct- DILLARD GARY DENNIS Ind irect- 986882 Patsy Sallee **wwwww�***�. TH1S PAGE IS PART OF TME INSTRUMENT *�'�***'`****�` Any provlslon herain whiclt restr(cts the Sale, Rental or use of the described FtEAL PROPERTY because of color or race is invalid and unenforceable under federa4 law. THE STA7E (]F TEXA.4) , u+QLT�T)w COUNTY OF DENTOM] ��'i+ i kcre6y eertify fh•tfhis i.utruaertwu F74kD intlae Flle Nu.har.aqumce on fhe da�el�i�e � prin�ed he.o ,.nd w� duly RECORDED in the Of[:ci.l Reaor� ol Deoton Cwuty, Te:u. � Covnly Glerk �� �� .Y$�Q1 �� Aentee Conaly, 7e:as ����'�