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2001-080 S \Our Documents\Ordmanc~s\01\I036 Reed Ordinance doc ORdiNANCE NO AN ORDINANCE APPROVING A REAL ESTATE CONTRACT BETWEEN THE CITY OF DENTON AND HABITAT FOR HUMANITY OF DENTON FOR THE SALE OF CERTAIN REAL PROPERTY COMMONLY KNOWN AS 1036 REED STREET, DENTON, TEXAS, FOR USE FOR LOW TO MODERATE INCOME HOUSING, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Denton Police Department acqmred all of that certmn tract, lot or parcel of land being more partacularly described as Lot 3, Block l, of the Wlllowereek Addition, an addition to the City of Denton, Texas, according to the Map or Plat thereof recorded in Volume 7, Page 20, Plat Records, Denton County, Texas, and commonly known as 1036 Reed Street, Denton, Texas (the "Property") pursuant to a forfeiture action under Chapter 59 of the Texas Code of Criminal Procedure (the "Code"), filed in the 211th District Court of Denton County, Texas in Cause No 99-30403-21 l, by the State of Texas by and through the Denton County District Attorney's Office, pursuant to an agreement between the City and the District Attorney's Office, and WHEREAS, pursuant to Subsection 272 001(g) of the Texas Local Government Code the City desires to sell the Property to the Habitat for Humanity of Denton for the development of low to moderate income housing, and WHEREAS, the City Council finds that such sale serves a public purpose and therefore the Property may be sold for less then fair market value, NOW, THEREFOR, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 The City Manager or his designee is hereby authorized to execute a Real Estate Contract between the City of Denton and the Habitat for Humanity of Denton for the sale of the Property m substantially the form of the Real Estate Contract attached to and made a part of thls ordinance for all purposes SECTION 2 The City Manager or has designee is authorized and &reeted, after deducting expenses of acqmsmon and sale, to distribute the proceeds of this sale for law enforcement purposes, in accordance with Subsection (c) of Article 59 of the Texas Code of Criminal Procedure SECTION 3 This ordinance shall become effective immediately upon its passage and approval PASSED AND PPROVED sthe; / dayof a :001 EUL1NE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY, ATTORNEY Page 2 REAL ESTATE CONTRACT STATE OF TEXAS COUNTY OFDENTON THIS CONTRACT OF SALE ,s made by and between CITY OF DENTON, TEXAS, a home rule munm~pahty, of Denton, Denton County, Texas (hereinafter referred to as "Seller") and the HABITAT FOR HUMANITY OF DENTON, a non-profit corporutmn (hereinafter referred to as "Purchaser), upon the terms and conditions set forth hereto ARTICLE I PURCHASE AND SALE Seller hereby sells and agrees to convey, and Purchaser hereby purchases and agrees to pay for all that certmn tract, lot or parcel of land being more particularly described as Lot 3, Block 1, of the Wdlowcreek Add~t, on, an addition to the C~ty of Denton, Texas, according to the Map or Plat thereof recorded ~n Volume 7, Page 20, Plat Records, Denton County, Texas, and commonly known as 1036 Reed Street, Denton, Texas, together w~th all rights and appurtenances pertaining to the smd property, including ~mprovements, and fixtures s~tuated on and attached to the said property (all of such real property, rights, and appurtenances being hereinafter referred to as the "Property"), for the consideration and upon and subject to the terms, prov~smns, and condlt~ons hereinafter set forth ARTICLE II. PURCHASE PRICE 1 Amount of Purchase Price The purchase price for the Property shall be the stun of ELEVEN THOUSAND DOLLARS AND ZERO CENTS ($11,000) (the "Pumhase Price") 2 payment of Purchase Price The full amount &the Pumhase Price shall be payable ~n cash at the closing Page 1 of 11 ARTICLE PURCHASER'S OBLIGATIONS The obhgattons of Purchaser heleunder to consummate the transactions contemplated hereby are subject to the sattsfactton of each of the following condlttons any of which may be watved m whole or ~n part by Purchaser at or prior to the closing 1 Prehmtnm¥ Tttle Report Within twenty (20) days after the date hereof, Seller, at Seller's sole cost and expense, shall have caused the T~tle Company (heretnafter defined) to issue an owner's pohcy commitment (the "Commztment") accompamed by cop~es of all recorded documents relattng to easements, rights-of-way, etc, affecting the Property Purchaser shall gtve Seller written notice on or before the expiration often (10) days after Purchaser recetves the Commitment that the contht~on of tttle as set forth ~n the Commttment is or ts not satisfactory In the event Purchaser states the condtt,on of tttle ts not satmfactory, Seller shall, at Seller's option, promptly undertake to ehmtnate or modify all unacceptable matters to the reasonable satlsfactton of Pumhaser Purchaser understands that Seller Is under no obhgatton to cure any t~tle defects complatned of by Pumhaser stated in Purchaser's written notme to Seller as provtded ~n th~s paragraph In the event Seller is unable to do so w~thtn ten (10) days after receipt of written not~ce, Purchaser, at tts optton may elect to termtnate thts Agreement 0n which event this Agreement shall be null and vmd), grant Seller addtttonal time to cure, or proceed to closing 2 Seller's Comphance Seller shall have performed, observed, and comphed w~th all of the covenants, agreements, and conthtlons reqmred by this Agreement to be performed, observed, and comphed w~th by Seller prior to or as of the clostng ARTICLE IV. REPRESENTATIONS, WARRANTIES AND CONDITIONS TO SALE AND CONVEYANCE The parties hereto understand and agree to the followtng 1 The Seller acqmred the Property pursuant to a forfeiture actton under Chapter 59 of the Texas Code of Criminal Procedure (the "Code"), filed in the 211th D~stnct Court of Denton County, Texas In Cause No 99-30403-211, by the State of Page 2 of 11 ~ \Our Doeuments\Contracts\01\1036 Reed Sale doc Texas by and through the Denton County D~stnct Attorney's Office Because of the manner m whmh the Seller acqmmd the Property, Seller makes no warrant~es of t~tle to the property 2 Seller represents and warrants that the proceeds of th~s sale, after deducting expenses, will be thstnbuted for law enforcement purposes, ~n accordance w~th Sub-Artmle 59 06(c) of the Code 3 Purchaser ~s purchasing the Property, and the Property shall be conveyed and transferred to Purchaser, "AS IS, WHERE IS, AND WITH ALL FAULTS" and specifically and expressly w~thout any warrant~es, representations, or guarantees, e~ther expressed or ~mphed, of any kind, nature, or type whatsoever from or on behalf of the Seller Purchaser acknowledges that it has not rehed, and ~s not relying, on any mfonnat~on, document, sales brochures, or other hterature, maps or sketches, projection, pro forma, statement, representation, guarantee, or warranty (whether express or ~mphed, or oral or written, or material or ~mmatenal) that may have been g~ven or made by or on behalf of Seller 4 Pumhaser shall not be entitled to, and should not rely on, Seller or ~ts agents as to (a) the quahty, nature, adequacy, or physmal condition of the Property, (b) the quahty, nature, adequacy, or physical condition of softs or the existence of ground water at the Property, (c) the existence, quality, nature, adequacy, or physmal cond~tnon of any utilities serving the Property, (d) the development potentml of the Property, ~ts habitability, merchantability or fitness, smtabfl~ty, or adequacy of the Property for any particular purpose, (e) the zoning or other legal status of the Property, (0 the Property's comphanee w~th any apphcable codes, laws, regulations, statutes, orthnances, covenants, conditions, or restrictions of any governmental or quas~-governmental entity, or of any other person or entity, (g) the concht~on of t~tle to the Property, or the nature, status and extent of any nght-of-way, lease, right of redemption, possession, hen, encumbrance, hcense, reservation, covenant, condition, restriction, or any other matter affecting t~tle to the Property 5 SELLER HAS NOT, DOES NOT, AND WILL NOT, WITH RESPECT TO THE PROPERTY, MAKE ANY WARRANTIES OR REPRESENTATIONS, EXPRESSED OR IMPLIED OR ARISING BY OPERATION OF LAW INCLUDING, BUT IN NO WAY LIMITED TO, ANY WARRANTY OF CONDITION, MERCHANTABILITY, HABITABILITY, OR FITNESS FOR A PARTICULAR USE OR WITH RESPECT TO THE VALUE PROFITABILITY, OR MARKETABILITY OF THE PROPERTY 6 SELLER HAS NOT, DOES NOT, AND WILL NOT, MAKE ANY REPRESENTATION OR WARRANTY WITH REGARD TO COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION, OR LAND USE LAWS, RULES, REGULATIONS, ORDERS, OR REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THOSE PERTAINING TO THE HANDLING, GENERATING, Page 3 of 11 S \Our Documents\Contraets\01\1036 Reed Sale doe TREATING, STORING, OR DISPOSING OF ANY HAZARDOUS WASTE OR SUBSTANCE 7 Purchaser has had and w~ll have, pursuant to this Contract, an adequate oppomm~ty to make such legal, factual, and other ~nqumes and investigations as ~t deems necessary, desirable, or appropnate with respect to the Property Such lnqumes and ~nvest~gat~ons of Purchaser shall be deemed to ~nclude, but shall not be hmlted to, the condition of the Property, the existence of any wood-destroying orgamsms on the Property, such state of facts as an accurate survey and ~nspect~on would show, the present and future zomng ordinances, resolutions, and regulations of the mty, county, and state where the Property ~s located, the ava]lainhty of uttht~es, and the value and marketability of the Property 8 The conveyance of the Property shall contmn a restrictive covenant touching and runmng with the land winch restricts the use of the Property for a period of twenty five years for use as single family residential for low to moderate ~ncome persons Low to moderate income m defined as 80% or below the median income for the Dallas Statistical Extrapolation Area as determined by the U S Department of Housing and Urban Development The prowslons of this Article shall survive closing ARTICLE V CLOSING The closing shall be held at the office of Stewart T~tle Company (the "T~tle Company"), 2442 L~lhan Miller, state 100, Denton, Texas 76205 on or before , 2001 (winch date ~s here~n referred to as the "closing date") The closing date may be extended by mutual agreement of the parties ARTICLE VI CLOSING REQUIREMENTS 1 Seller's Reqmrements At the closing Seller shall A Deliver to Purchaser a duly executed and acknowledged Deed Without Warranty conveying all of Seller's right, t~tle and ~nterest in and to the Property and contamxng the restrictive covenant provided for in Section IV(8) above, in substantially the same form as the deed attached hereto as Exhlint "A" and made a part hereof by reference Page 4 of 11 S \Our Docum~nts\Contracts\01\1036 Reed Sale doc B Dehver to Purchaser possession of the Property 2 Purchaser's Requirements Purchaser shall pay the Purchase Pnce ~n immediately avmlable funds 3 Taxes Taxes for the year of closing shall be prorated as of the closing date 4 Other Clos~ngCosts All other costs and expenses of closing m eonsarnmatmg the sale and purchase of the Property not specafically allocated hereto shall be pa~d ~n the same manner that ~s customary for res~dentml transactions ~n Denton County Texas ARTICLE VII REAL ESTATE COMMISSION Each party represents to the other that they have not employed the services of any real estate brokers or agents ~n this matter Therefore, there are no real estate cornnussaons occasioned by the consummaUon of th~s contract ARTICLE VIII BREACH BY SELLER In the event Seller shall fml to fully and t~mely perform any of xts obhgatxons hereunder or shall fml to consummate the sale of the Property except Purchaser's default, Purchaser as ~ts sole and exclusive remedy may e~ther enforce specific performance of th~s Agreement or terminate tbas Agreement by written not,ce dehvered to Seller ARTICLE IX BREACH BY PURCHASER In the event Purchaser should fail to consummate the purchase of the Property, the conditions to Purchaser's obhgatmns set forth ~n PURCHASER'S OBLIGATIONS having been satasfied and Purchaser being m default, Seller as ~ts sole and exclusive remedy may enforce specific performance of th~s Agreement, or terminate th~s Agreement by written not,ce dehvered to Purchaser ARTICLE X MISCELLANEOUS PROVISIONS 1 Aas~gnment of Agreement Th~s Agreement may not be assigned by Purchaser w~thout the express written consent of Seller Page 5 of 11 S \Our Documents\Contracts\01\1036 Reed Sale doc 2 Survival of Covenants Any of the representations, warranties, covenants, and agreements of the parties, as well as any rights and benefits of the parties, pertaining to a period of time following the closing of the transactions contemplated hereby shall survive the closing and shall not be merged therein 3 Notace Any notice required or permated to be delivered hereunder shall be deemed received when sent by United States mall, postage prepmd, certified mml, return receipt requested, by hand delivery, or by facsimile addressed to Seller or Purchaser, as the case may be, at the address or facsimile number set forth beneath the signature of the party 4 Texas Law to Apply This Agreement shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Denton County, Texas $ Parties Bound Tlus Agreement shall be b~ndtng upon and inure to the benefit of the pames and their respective legal representatives, successors and assigns where permitted by this Agreement 6 Legal Construction In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable m any respect, smd invalidity, illegality, or unenforceabfllty shall not affect any other provision hereof, and this Agreement shall be construed as if the mvahd, illegal, or unenforceable provision had never been contatned herein 7 Pnor Agreements Superseded This Agreement constitutes the sole and only agreement of the parties and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter 8 Time of Essence Time is of the essence in this Agreement 9 Gender. Words of any gender used tn this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise 10 Compliance In accordance with the requirements of the Texas Real Estate License Act, Purchaser is hereby advised that it should be furnished with or obtmn a policy of title insurance or Purchaser should have the abstract covenng the Property examined by an attorney of Purchaser's own selection Page 6 of 11 S \Our Doeuments\Contracts\01\I036 Reed Sale doe DATED this _.~.~. day of x-7~ _~.ZZ/d/J~X~-, 200/ SELLER T:X/ THE CI:~ OF DENTON sv l lf¢ ae W/J z City Manager [ 215 E McKhnnc~ Denton, Texas 7620 Facsmfle ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY PURCHASER HABITAT FOR HUMANITY OF TEXAS 0411 Grozev U Executive D~rector P O Box 425 Denton, Texas 76202 Facstmfle 940-484-5006 Page 7 of 11 \Our Documents\Contracts\0I\1036 Reed Sale doc ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF DENTON § Th~s instrument was acknowledged before me on ~~ g/~ ,2001 by M~chael W Jez, City Manager of the City of De~on, Texas, c~ behalf of said city M y~omm~ss;n Expires ~Te~s ~ / [/~, ~ ANN FORSWHE ~ J / ay Commlal~ E~me ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF DENTON § Th~s msmunent was acknowledged before me on ~'~ a~'~t ~ 2 ,2001 by Jill Grozev, Executive Director of Habitat for Humanity of Denton, on behalf of sa~d entity of Te~ Notary Pubhc, m and for the State My Commission Expires , J ~ NOTARY PUBLIC ~ ~ ~ ~ ~ STATE OF TEXAS ~ Page 8 of 11 S \Our Documen~s\Conteacts\01\1036 Reed Sale doc DEED WITHOUT WARRANTY Date: September 4, 2001 Grantor: City of Denton, Texas 215 E. McKinney Denton, Texas 76201 Grantee: Habitat For Humanity Of Denton P.O. Box 425 Denton, Texas 76202 Consideration: ELEVEN THOUSAND DOLLARS AND ZERO CENTS ($11,000.00) Property: nll that certain tract, lot or parcel of land being more particularly described as Lot 3, Block 1, of the Willowcreek Addition, an addition to the City of Denton, Texas, according to the Map or Plat thereof recorded in Volume 7, Page 2Q Plat Records, Denton County, Texas, and commonly known as 1036 Reed Street, Denton, Texas; together with all rights and appurtenances pertaining to the said property, including improvements, and fixtures situated on and attached to the said property (the "Property"). Reservations From and Exceptions [o Conveyance, and restrictive covenants: 1. All easements, rights of way, and other matters of record. 2. Grantee is purchasing the Property, and the Property is conveyed and transferred to Grantee, "AS IS, WHERE IS, AND WITH ALL FAULTS" and specifically and expressly without any warranties, representations, or guarantees, either expressed or implied, of any kind, nature, or type whatsoever from or on behalf of the Grantor. Grantee acknowledges that it has not relied, and is not relying, on any information, document, sales brochures, or other literature, maps or sketches, projection, pro forma, statement, representation, guarantee, or warranty (whether express or implied, or oral or written, or material or immaterial) that may have been given or made by or on behalf of Grantor. Page 1 S:\Our Documents\Contrac[s\Ol\1036 Reed Deed.doc 3. Grantee shall not be entitled to, and should not rely on, Grantor or its agents as to (a) the quality, nature, adequacy, or physical condition of the Property; (b) the quality, nature, adequacy, or physical condition of soils or the existence of ground water at the Property; (c) the existence, quality, nature, adequacy, or physical condition of any utilities serving the Property; (d) the development potential of the Property, its habitability, merchantability or fitness, suitability, or adequacy of the Property for any particular purpose; (e) the zoning or other legal status of the Property; (f) the Property's compliance with any applicable codes, laws, regulations, statutes, ordinances, covenants, conditions, or restrictions of any governmental or quasi-governmental entity, or of any other person or entity; (g) the condition of title to the Property, or the nature, status and extent of any right-of--way, lease, right of redemption, possession, lien, encumbrance, license, reservation, covenant, condition, restriction, or any other matter affecting title to the Property. 4. GRANTOR HAS NOT, DOES NOT, AND WILL NOT, WITH RESPECT TO THE PROPERTY, MAKE ANY WARRANTIES OR REPRESENTATIONS, EXPRESSED OR IMPLIED OR ARISING BY OPERATION OF LAW INCLUDING, BUT IN NO WAY LIMITED TO, ANY WARRANTY OF CONDITION, MERCHANTABILITY, HABITABILITY, OR FITNESS FOR A PARTICULAR USE OR WITH RESPECT TO THE VALUE PROFITABILITY, OR MARKETABILITY OF THE PROPERTY. 6. GRANTOR HAS NOT, DOES NOT, AND WILL NOT, MAKE ANY REPRESENTATION OR WARRANTY WITH REGARD TO COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION, OR LAND USE LAWS, RULES, REGULATIONS, ORDERS, OR REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THOSE PERTAINING TO THE HANDLING, GENERATING, TREATING, STORING, OR DISPOSING OF ANY HAZARDOUS WASTE OR SUBSTANCE. 7. Grantor acquired the Property pursuant to a forfeiture action under Chapter 59 of the Texas Code of Criminal Procedure (the "Code"), filed in the 211th District Court of Denton County, Texas in Cause No. 99-30403- 211, by the State of Texas by and through the Denton County District Attorney's Office. Because of the manner in which the Grantor acquired the Property, Grantor makes no warranties of title to the Property. 8. This conveyance is subject to a RESTRICTIVE COVENANT touching and running with the Property which restricts the use of the Property For a period of twenty five years for use as single family residential for low to moderate income persons. Low to moderate income is defined as 80% or below the median income for the Dallas Statistical Extrapolation Area as Page 2 S:\Our Documents\Contracts\01\1036 Reed Deed.doc determined by the U.S. Department of Housing and Urban Development. Should this restrictive covenant be violated, the Property shall automatically revert to Grantor without the necessity of taking any action whatsoever. Prior to such reversion the Grantee shall be given written notice of such violation and given a 60 day time period to cure prior to such reversion. Grantor, for the consideration and subject to the reservations from and exceptions to conveyance, and restrictive covenants, conveys to Gran[ee the Property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and to hold it to Grantee, Grantee's heirs, successors or assigns forever, without express or implied warranty; and all warranties that might arise by common law and the warranties in § 5.023 of the Texas Property Code (or its successor) are excluded. When the context requires, singular nouns and pronouns include the plural. THE CITY~OJF DENTON BY: / ~~ Michael A. Conduff" " ~ '' City Manager 215 E. McKinney Denton, Texas 76201 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY Page 3 S:\Dur Documents\Contracts\0l\1036 Reed Deed.doc (Acknowledgment) STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me by Michael A. COnduff, C(i~Managei of the Cit of enton, Texas on behalf of said Ny on the _~ day of (i/ , 2001. ,\ ~~ Notary blic, State o Texas "" °°~` ANN FORSYTHE , . z%-~-~~` t. Notary's name (printed): li ~; ~ : I °' Notary Public, State of Texas ,,SS ~/ ~, ;, ~" My Commission Expires Notary's commission expires: ~ "v / ' Q y ,~~E~. MAY 9, 2002 Page 4 S:\Our Documents\Cantracts\Ol\1036 Reed Deed.doc