21-2297ORDINANCE NO. 21-2297
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONTRACT OF SALE WITH MARK HICKS INVESTMENTS, LLC. FOR THE
SALE OF A 0.449 ACRE TRACT LOCATED AT 414 WEST PARKWAY STREET;
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY
TO CONSUMMATE THE SALE, INCLUDING A SPECIAL WARRANTY DEED;
AUTHORIZING THE CITY MANAGER TO CARRY OUT ALL DUTIES OF THE CITY
PURSUANT TO THE CONTRACT OF SALE; AUTHORIZING THE EXPENDITURE OF
FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton (the "City") owns certain real property comprised of a
0.449 acre tract located at 414 West Parkway Street, Denton, Texas (the "Property"), as more
specifically described and depicted in Exhibit "A" to Attachment 1 to the Contract of Sale that is
attached to this Ordinance as ADDENDUM I; and
WHEREAS, the City and the Denton Chamber of Commerce (the "Chamber") entered
into a ground lease for the Property, as amended, expiring August 31, 2048, and providing the
right for the Chamber to construct a building and related improvements on the Property for its
activities (the "Improvements") and to own the Improvements during the term of the Chamber's
lease (the "Chamber Lease"); and
WHEREAS, the Chamber Lease provides that at the end of the term of the Chamber Lease,
the Chamber's ownership of the Improvements will end and the City will acquire full ownership
of the Improvements free and clear of any indebtedness or obligations; and
WHEREAS, the Chamber relocated its activities pursuant to a new lease with the City for
space in the City's Development Services building, and intends to terminate the Chamber Lease
and relinquish its remaining leasehold interest in the Chamber Lease, including its ownership in
the Improvements, prior to the closing of the sale of the Property and Improvements in exchange
for receiving an allocation of the proceeds from the sale of the Property and Improvements; and
WHEREAS, pursuant to Ordinance No. 21-1953, the City and the Chamber entered into
a listing agreement with Axis Realty Group of Denton, Inc., a real estate broker, to list for sale
the Property and Improvements, which listing agreement will expire March 31, 2022 (the "Listing
Agreement"); and
WHEREAS, the Chamber entered into a separate listing agreement with Axis Realty
Group of Denton, Inc. (the "Chamber's Listing Agreement"), to list for sale two adjacent tracts,
including a 0.28 acre parking lot and adjoining 0.21 acre tract locally known as 413 West Congress
Street, Denton, Texas, owned by the Chamber (these two tracts herein called the "Additional
Parking Tract"); and
WHEREAS, the Property, Improvements, and the Additional Parking Tract were
marketed together for a total combined listing price pursuant to the terms of the Listing Agreement
and the Chamber's Listing Agreement; and
WHEREAS, pursuant to Ordinance No. 21-310, the City and the Chamber entered into a
Master Agreement regarding the sale of the Property, Improvements and Additional Parking
Tract, the Chamber's agreement to terminate its remaining leasehold interest in the Property and
relinquish its ownership interest in the Improvements prior to the closing of the sale of the
Property, and the allocation between the City and the Chamber of the total combined purchase
price for the Property, Improvements and Additional Parking Tract (the "Master Agreement");
and
WHEREAS, Mark Hicks Investments, LLC. (the "Buyer") has made an offer to purchase
the Property, Improvements, and the Additional Parking Tract for a total combined purchase price
of $725,000.00; and
WHEREAS, City and Chamber staff have negotiated a contract of sale with Buyer for the
Property and Improvements that is attached to this Ordinance as ADDENDUM I and incorporated
herein for all purposes (the "Contract of Sale"), and recommends that the City Manager be
authorized to execute the Contract of Sale so that the City may proceed to closing the sale of the
Property and Improvements with Buyer; and
WHEREAS, the Contract of Sale requires execution by the City and Buyer of a special
warranty deed attached to the Contract of Sale as Attachment 1 conveying the Property and
Improvements to Buyer and reserving for the benefit of the City a drainage easement on the
Property (the "Special Warranty Deed"); and
WHEREAS, the total combined purchase price for the Property, Improvements and
Additional Parking Tract will be allocated between the City and the Chamber in accordance with
the Master Agreement and Attachment 2 to the Contract of Sale; and
WHEREAS, the City Council finds it is in the public interest to sell the Property and
Improvements pursuant to the Contract of Sale; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this Ordinance are
incorporated herein by reference as true and as if fully set forth in the body of this Ordinance.
SECTION 2. The City Manager, or designee, is hereby authorized to execute the Contract
of Sale and is further authorized to execute all documents necessary to consummate the sale
pursuant to the Contract of Sale, including the Special Warranty Deed.
SECTION 3. The City Manager, or designee, is further authorized to carry out all duties
and responsibilities of the City pursuant to the Contract of Sale, including the expenditure of funds
as provided in the Contract of Sale.
2
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to al?£rove this Ordinance was made by 1:, ,~, 0...,('\ ~ e c.., k_ and
seconded by \/ , C)C..~ 16 '\ , d . The Ordinance was passed and approved by
the following vote [ 6 -_L]:
Aye Nay Abstain Absent
Gerard Hudspeth, Mayor: ./
Vicki Byrd, District 1: ,/
Brian Beck, District 2: ✓
Jesse Davis, District 3: ✓
Alison Maguire, District 4: ✓
Deb Armintor, At Large Place 5: ✓
Paul Meltzer, At Large Place 6: ✓
PASSED AND APPROVED this the~day of QL-t-O b-e_<: , 2021.
ATTEST:
ROSA RIOS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
MACKREINWAND, CITY ATTORNEY
3