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WA9601-AG 951128 AGENDA REQUEST FORM CITY COtr~CIL MEETING: November 28, 1995 ITEM # ITEM CAPTION: Discussion and consideration of authorizing the City Manager to sign and present a Letter of Intent to purchase approximately 46 acres of land for a future park site and elevated storage tank site. SUBMITtED BY: Kenneth M. Griffin, P.E. TITLE: Assistant City Manager/City Engineer INITIALS ~ STAFF COMMENTS: Attached to this agenda item is a copy of a Letter of Intent to purchase 46 acres of land. The Letter of Intent covers the outright purchase of 3 acres for an elevated storage tank and a long term feasibility period for the remaining 43 acres to terminate on July 1st, 1996. The City is seeking to purchase the 3 acres for approximately $45,000 an acre and providing $5,000 in earnest money for the remaining acreage. STAFF RECOMMENDATION Approval X Denial EXPLANATION: Staff is anxious to proceed with this offer and will be available to answer any questions at the Council meeting. BUDGET AMT. $ ANT. EST. $ + / - BUD: $ FINANCIAL COMMENTS: FINANCIAL REVIEW: CITY MANAGER REVIEW: Agenda Request Form - Revised 1/94 Document Name eng.01 P.O. Box 478 Coppell, Texas 75019 The City With A Beautiful Future 214-462-0022 P.O. Box 478 Coppell, Texas 75019 November 28, 1995 Ecom Real Estate Management, Inc. 3141 Hood Street, Suite 200 Dallas, Texas 75219 RE: "Wagon Wheel" Property / approximately 45 - 46 acres located near the southwest corner of State and Thweatt Road Dear Sir: This letter serves to outline the terms and conditions whereby the City of Coppell (the "Purchaser") will enter into a contract on the referenced property from Ecom Real Estate Management, Inc. (the "Seller") subject to a written contract to sell to be prepared by Purchaser in a form and substance agreeable to both parties. The City of Coppell is interested in this property for two reasons. One, the City is interested in purchasing the bulk of the land as a future park site on the west side of Coppell. The land would be purchased and then developed at a later date. Two, of equal concern to the City is the ability to purchase a portion of the property as a future elevated water storage tank site as per our Water Master Plan. The securing of land for that site is a more immediate concern to the City of Coppell as the Master Plan shows a need for the tank in the next two to three years. It is the City's intent to purchase the three acres of land necessary for the elevated storage tank site outright and take a long term option on the balance of the land. The following represents the general terms and guidelines of the City desire to purchase this land. 1. OUTRIGHT PURCHASE: The City desires to purchase outright three acres of land within the general confines of the proposed 46 acres of land at a location to be agreed upon by both Seller and Purchaser. It is understood that if the location of the three acres is not adjacent to Thweatt Road then the Seller will allow the Purchaser to also acquire a minimum 25 foot wide access easement from Thweatt Road to the location of the three acres of land. The Purchaser offers to acquire this land at the purchase price of $45,000.00 per acre. Within five business days after execution of the contract, money will be deposited with a mutually agreed upon title company and the City will take title to the three acres of land acquired in the purchase. 2. FEASIBILITY PERIOD: Purchaser shall have until August 16th, 1996 to conduct and obtain information from which to conclude whether or not it is feasible to acquire the balance of the 46 acres of land. In the event Purchaser determines that it is not feasibility to acquire the land, Purchaser shall have the right to cancel the contract and withdraw from future consideration of the purchase of the property. If the contract is cancelled within the first 45 days, the Purchaser's earnest money shall be refunded to Purchaser. If the contract is called after 45 days, the Purchaser's earnest money shall be forfeited to the Seller. 3. EARNEST MONEY: Within five business days after the execution of the contract, Purchaser shall deliver earnest money in the amount of $5,000.00 to a mutually agreed upon title company. A fully executed original of the contract to sell shall be delivered with the earnest money to the mutually agreed upon title company. 4. PURCHASE PRICE: Purchaser agrees to purchase the balance of the 46 acres of land at the agreed upon purchase price of $45,000.00 per acre or a total price of $1,935,000.00. A. Down payment: $200,000.00 will be paid in cash at closing. The earnest money deposited shall apply to the cash portion of the purchase price. B. Balance: The balance of the purchase price shall be represented by the Purchaser executing and delivering appropriate instruments satisfactory to the Seller in such amount, dated as of the date of closing and payable to the order of the Seller. The form of instrument used for payment of the balance of the purchased price will be determined by Purchaser during the feasibility period and shall also contain a maturity date for the instrument to be utilized and shall be subject to Seller approval. 5. CLOSING: Shall take place on the balance of the property on or before August 16th, 1996. The City is very interested in not only the initial purchase but the balance of the land. The time table on the purchase of the balance of the land is based upon the fact that the City will be going to the voters for a half cent sales tax in early, 1996. The proceeds from the half cent sales tax will allow the City to purchase this land as a future park site. In the event that the half cent sales tax fails, the City will still have this period of time to look at alternative means of securing funding to purchase the land. Again, the City is very interested in the acquisition of the land and respectfully requests that you seriously consider this offer. If you are in agreement with the above mentioned terms please sign at the place provided. This letter shall not be construed to impose any obligations on either the Seller or the Buyer. Thank you for your consideration of this matter. 6. Professional Service Fee: At the closing, Seller shall pay a real estate sale commission in cash equal to 6% of the first $500,000 of the purchase price and 3% of the balance of the purchase price. The commission shall be divided equally between Ecom Realty and Majors Realty Company. erely, im Witt City Manager Agreed this day of , 1995. Ecom Real Estate Management, Inc. By: Coppell, Texas 75019  21 4-462-0022 Coppell, Texas 75019 January 18, 1996 Ecom Real Estate Management, Inc. 3141 Hood Street, Suite 200 Dallas, Texas 75219 RE: "Wagon Wheel" Property / approximately 48.7 acres located near the southwest corner of State and Thweatt Road Dear Sir: This letter serves to outline the terms and conditions whereby the City of Coppell (the "Purchaser") will enter into a contract on the referenced property with Ecom Real Estate Management, Inc. (the "Seller") subject to a written contract to sell to be prepared by Seller in a form and substance agreeable to both parties. The City of Coppell is interested in this property for two reasons. One, the City is interested in purchasing the bulk of the land as a future park site on the west side of Coppell. The land would be purchased and then developed at a later date. Two, of equal concern to the City is the ability to purchase a portion of the property as a future elevated water storage tank site as per our Water Master Plan. The securing of land for that site is a more immediate concern to the City of Coppell as the Master Plan shows a need for the tank in the next two to three years. It is the City's intent to purchase the three acres of land necessary for the elevated storage tank site outright and enter into an option contract on the balance of the land as shown on Exhibit "A" attached. The following represents the general terms and guidelines of the City desire to purchase this land. 1. OUTRIGHT PURCHASE: The City desires to purchase outright three acres of land within the general confines of the proposed 48.7 acres of land at a location to be agreed upon by both Seller and Purchaser. It is understood that if the location of the three acres is not adjacent to Thweatt Road then the Seller will allow the Purchaser to also acquire a minimum 25 foot wide access easement from Thweatt Road to the location of the three acres of land. The Purchaser offers to acquire this land at the purchase price of $45,000.00 per acre. Within five business days after execution of the contract, money will be deposited with a mutually agreed upon title company and the City will take title to the three acres of land acquired in the purchase. 2. FEASIBILITY PERIOD: Purchaser shall have forty-five (45) days from the effective date of the contract to conduct and obtain information from which to conclude whether or not it is feasible to acquire the balance of the 48.7 acres of land. In the event Purchaser determines that it is not feasible to acquire the land, Purchaser shall have the right to cancel the contract and withdraw from future consideration of the purchase of the property. If the contract is cancelled within the 45 day feasibility period, the Purchaser's earnest money shall be refunded to Purchaser. Additionally, Purchaser shall have the right to terminate this contract and receive a refund of the earnest money deposit if the half cent sales tax election tax election is not passed by the voters in May of 1996. 3. EARNEST MONEY: Within five business days after the execution of the contract, Purchaser shall deliver earnest money in the amount of $40,000.00 to a mutually agreed upon title company. A fully executed original of the contract to sell shall be delivered with the earnest money to the mutually agreed upon title company. 4. PURCHASE PRICE: Purchaser agrees to purchase the balance of the 48.7 acres of land at the agreed upon purchase price of $45,000.00 per acre or a total price of $2,191,500.00. A. Down payment: $400,000.00 will be paid in cash at closing. The earnest money deposited shall apply to the cash portion of the purchase price. B. Balance: The balance of the purchase price shall be paid no later than January 1, 1997. 5. CLOSING: Shall take place on the balance of the property on or before October 15th, 1996. The City is very interested in not only the initial purchase but the balance of the land. The time table on the purchase of the balance of the land is based upon the fact that the City will be going to the voters for a half cent sales tax in early, 1996. The proceeds from the half cent sales tax will allow the City to purchase this land as a future park site. In the event that the half cent sales tax fails, the City will still have this period of time to look at alternative means of securing funding to purchase the land. Again, the City is very interested in the acquisition of the land and respectfully requests that you seriously consider this offer. If you are in agreement with the above mentioned terms please sign at the place provided. This letter shall not be construed to impose any obligations on either the Seller or the Buyer. Thank you for your consideration of this matter. 6. Professional Service Fee: At the closing, Seller shall pay a real estate sale commission in cash equal to 6% of the first $500,000 of the purchase price and 3 % of the balance of the purchase price. The commission shall be divided equally between Ecom Realty and Majors Realty Company. Sin: ly . ' itt City Manager Agreed this day of , 1996. Ecom Real Estate Management, Inc. By: