HomeMy WebLinkAboutRes 2014-06-04 John Bradley Purchase and sale Agreement.pdfCITY OF ANNA, TEXAS
RESOLUTION NO. 2014-06-04
A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A PURCHASE AND SALE
AGREEMENT WITH JOHN BRADLEY FOR THE PURCHASE OF LAND OF FM 455.
WHEREAS, the City of Anna, Texas (the "City") has negotiated an agreement for the
purchase of a 0.798 acre tract of land located on FM 455 (the Property), and;
WHEREAS, the City Council of the City of Anna, Texas (the "City Council") finds that the
purchase of the Property will benefit the City and is in the best interests of the citizens of
Anna;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The recitals above are incorporated herein as if set forth in full for all purposes.
Section 2. Approval of Land Purchase and Sale Agreement.
The City Council hereby approves the Purchase and Sale Agreement attached hereto as
Exhibit 1, subject to the final approval by the City Attorney; and authorizes, ratifies and
approves the City Manager's execution of same. The City Manager is hereby authorized to
execute all documents and to take all other actions necessary to finalize, act under, and
enforce the Agreement.
PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this the 24th
day of June, 2014.
ATTEST:
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Natha r
it ison, City Secretary
RES. 2014-06-04 Purchase Agrmt w/John Bradley — land FM 455 PAGE 1 OF 1 06-24-14
PURCHASE AND SALE AGREEMENT
This Purchase and Sale Agreement (this "Agreement") is entered into as of the date set forth
below between John Bradley (referenced herein as "Seller"), and the City of Anna, Texas
(referenced herein as "Purchaser").
In consideration of the mutual covenants set forth in this Agreement, the parties agree as
follows:
Section 1. Sale and Purchase.
On and subject to the terms and conditions set forth in this Agreement, Seller agrees to sell and
convey to Purchaser, and Purchaser agrees to purchase and accept from Seller, for the
Purchase Price (defined below) that certain tract of land described in the attached Exhibit A,
said conveyance to vest in Purchaser good, marketable, and indefeasible title in fee simple to
said tract of land described in Exhibit A, together with all rights, title and appurtenances. Said
tract of land described in Exhibit A, together with all rights and appurtenances, is referred to as
the "Property."
Section 2. Purchase Price.
The purchase price ("Purchase Price") to be paid by Purchaser to Seller for the Property will be
in the amount of $6,000.00. The Purchase Price will be payable at the Closing (defined below)
as follows: $6,000.00 will be paid at Closing in cash or by check as specified in Section 5(b)(2).
Section 3. Title and Survey.
(a) Within 20 days after the Effective Date (defined below), Seller, at Purchaser's expense,
will deliver or cause to be delivered to Purchaser the following:
(1) Commitment for title insurance ("Title Commitment") from Red River Title Company,
805 W. White Street, Suite 300, Anna, Texas 75069, telephone number (972) 924-
8777 ("Title Company"), setting forth the status of the title of the Property and showing
all liens, claims, encumbrances, reservations, restrictions, outstanding mineral
interests, UCC filings, and other matters, if any, relating to the Property; and
(2) A true, complete, and legible copy of all documents referred to in the Title
Commitment, including without limitation UCC filings, plats, deeds, zoning ordinances,
restrictions, and easements.
(b) Within 20 days after the Effective Date, Purchaser, at Purchaser expense, will obtain a
survey ("Survey") consisting of a plat and field notes, prepared by a licensed surveyor
and Purchaser shall deliver the Survey to the Title Company, which Survey will:
(1) reflect the actual dimensions of the Property, the net area of the Property (to the
nearest square foot), the location of any easements, rights-of-way, setback lines,
encroachments, or overlaps and the outside boundary lines of any improvements;
identify by recording reference any easements, setback lines, or other matters referred
to in the Title Commitment;
PURCHASE AND SALE AGREEMENT PAGE 1 OF 9
(2) include the surveyor's registered number and seal, the date of the Survey, and a
certificate satisfactory to Purchaser;
(3) reflect that the Property has access to and from a publicly dedicated street, road, or
highway;
(4) be sufficient to cause the Title Company to delete, except for "shortages in area," the
printed exception for "discrepancies, conflicts or shortages in area or boundary lines, or
encroachments, or any overlapping of improvements" in the Owner's Title Policy to be
delivered to Purchaser pursuant to Section 5(b)(1)(ii);
(5) reflect any area within the Property that has been designated by the Federal Insurance
Administration, the Army Corps of Engineers or any other governmental agency or
body as being subject to special or increased flooding hazards; and
(6) comply with the applicable requirements of the Texas Society of Professional
Surveyors as to the 2005 Minimum Standard Detail Requirements for ALTA/ACSM
Land Title Surveys as adopted by American Land Title Association and National
Society of Professional Surveyors, as amended. For purposes of the Property
description to be included in the general warranty deed to be delivered pursuant to
Section 5(b)(i), the field notes prepared by the surveyor will control any conflicts or
inconsistencies with Exhibit A and such field notes will be incorporated in this
Agreement by this reference on their completion.
(c) Purchaser will have 10 days from the receipt of all of the information referred to in
Sections 3(a) and (b) in which to examine and notify Seller of those items, which
Purchaser will accept title to the Property to (the "Permitted Encumbrances") and those
matters which Purchaser finds objectionable (the "Encumbrances"); if such notice is not
given it will be deemed that all matters reflected by the Title Commitment and Survey are
"Permitted Encumbrances." Seller, will use reasonable efforts to cure or remove all
encumbrances, give Purchaser notice, and deliver within 10 days of the date of
Purchaser's notice an amended Survey and Title Commitment reflecting the cure of such
matters. Seller will not be obligated to initiate litigation or spend any sums to cure or
remove any Encumbrance (other than any lien constituting an Encumbrance) affecting
the Property. Any liens affecting the Property will be considered "Encumbrances," and
Seller will cause the same to be fully released of record at or prior to the Closing.
(d) If Seller fails to timely cause all of the Encumbrances to be removed or cured, and timely
written notice to be given to Purchaser, Purchaser will have the following rights:
(1) Purchaser may unilaterally extend the date for Closing a reasonable time to afford
Seller additional time within which to cure such Encumbrances without prejudice to
Purchaser's rights under Sections 3(d)(2) or (3);
(2) Purchaser may terminate this Agreement by giving Seller written notice and neither
party will have any further rights, duties, or obligations under this Agreement; or
(3) Purchaser may elect to purchase the Property subject to the Encumbrances not so
removed or cured.
PURCHASE AND SALE AGREEMENT PAGE 2 OF 9
(e) Seller agrees not to enter into any agreement or instrument or take any action after the
Effective Date without the prior consent of Purchaser which would constitute or create an
Encumbrance or which would bind Purchaser or the Property after the Closing.
Section 4. Earnest Money.
Purchaser shall not be required to provide any earnest money under this Agreement.
Section 5. Closing.
(a) The closing ("Closing") of the sale of the Property by Seller to Purchaser will occur at
[time of closing] on [date of closing], in the offices of Title Company.
(b) At the Closing, the events set forth in this Section 5(b) will occur, it being understood that
the performance or tender of performance of all matters set forth in this Section 5(b) are
mutually concurrent conditions:
(1) Seller, at Purchaser's expense, will deliver or cause to be delivered to Purchaser:
i) If required by City Ordinances, a Final Plat, fully executed by Seller, and as
approved by Purchaser, depicting the Property and its parent tract subdivided as
separate tracts in accordance with applicable laws and ordinances.
ii) General Warranty Deed in form and substance reasonably satisfactory to
Purchaser, fully executed and acknowledged by Seller, conveying to Purchaser
the Property;
iii) Texas Form Owner Policy of Title Insurance ("Title Policy") issued by Title
Company in the amount of $ 6,000, naming Purchaser as the insured, subject
only to those matters to which the General Warranty Deed will be subject, and
the standard printed exceptions contained in the Title Policy; provided, however,
that the standard exception pertaining to discrepancies, conflicts, or shortages in
area will be deleted except for "shortages in area," such policy will have "None of
Record" endorsed regarding restrictions (except for restrictions that are Permitted
Encumbrances), there will be no exception for rights of parties in possession and
the standard exception for taxes will be limited to the year in which the Closing
occurs and subsequent assessments for prior years due to changes in land
usage or ownership;
iv) Certificate executed by Seller confirming that all warranties and representations
set forth in Section 11 of this Agreement are true and correct as of the date of
Closing;
v) Certificate that (A) confirms the Seller's United States taxpayer number and (B)
states that Seller is not a "foreign person" within the meaning of 26 U.S.C. §
1445 of the Internal Revenue Code of the United States of America of 1954, as
amended (the "Code"), and otherwise in complies with the regulations
promulgated under that Code section; and
PURCHASE AND SALE AGREEMENT PAGE 3 OF 9
vi) Physical possession of the Property free and clear of all tenancies of every kind
and parties in possession with all parts of the Property in substantially the same
condition as on the Effective Date.
(2) Purchaser, at its sole cost and expense, will deliver or cause to be delivered to Seller a
cashier's or certified check, or a check of the Title Company, payable to the order of
Seller in the amount equal to the Purchase Price.
(3) Ad valorem and similar taxes and assessments relating to the Property will be the
responsibility of Seller through the end of year 2013 and the responsibility of Buyer on
and after January 1, 2014. Seller will be responsible for and will indemnify Purchaser
against any and all costs and expenses (including, without limitation, attorney fees)
incurred by Purchaser as a result of taxes assessed against the Property for periods of
time before January 1, 2014. The provisions of this Section 5(b)(3) will survive the
Closing.
(4) Purchaser and Seller will, if requested, furnish satisfactory evidence of their authority to
execute the Closing documents and consummate the sale and purchase contemplated
in this Agreement, and will execute such other documents and take such other action
as may be reasonably necessary or appropriate to effect such consummation.
Section 6. Remedies.
(a) If Purchaser refuses to consummate the purchase of the Property pursuant to this
Agreement for any reason other than termination pursuant to a right granted Purchaser
to do so, then Seller, at its sole and exclusive remedy, may enforce specific performance
of the obligations of Purchaser.
(b) If Purchaser terminates this Agreement pursuant to a right granted Purchaser under this
Agreement, then neither party will have any further rights, duties, or obligations
hereunder.
(c) If Seller fails to perform any of its agreements or obligations under this Agreement, or
should any of Seller's representations and warranties made be not true and accurate,
Purchaser may:
(1) terminate this Agreement by notifying Seller;
(2) enforce specific performance of the obligations of Seller; and/or
(3) seek any other rights, recourses, or remedies available to Purchaser, all remedies
being cumulative.
Section 7. Notices.
Any notice provided or permitted to be given under this Agreement must be in writing and may
be served by depositing same in the United States mail, addressed to the party to be notified,
postage prepaid and registered or certified with return receipt requested or by facsimile. Notice
given in accordance with this section will be effective on receipt at the address of the
addressee. For purposes of notice, the addresses of the parties will be as follows:
PURCHASE AND SALE AGREEMENT PAGE 4 OF 9
If to Seller, to: John Bradley
P.O. Box 8
Anna, TX 75409-0008
If to Purchaser, to: City Manager, City of Anna
111 N. Powell Parkway
Anna, Texas 75409
Collin County, Texas
972-924-2620 Facsimile
Section 8. No Commissions.
Neither Seller nor Purchaser have engaged the services of a real estate broker or other person
that has or would have the right to any commission in any amount as relates to the
consummation of this Agreement, as relates to the Closing, or as relates to the Property. Seller
agrees to defend, indemnify, and hold harmless Purchaser, and Purchaser agrees to defend,
indemnify, and hold harmless Seller, from and against any claim by third parties for brokerage,
commission, finder's, or other fees relative to this Agreement or the sale of the Property, and
any court costs, attorney fees, or other costs or expenses arising from such claim, and alleged
to be due by authorization of the indemnifying party.
Section 9. Condition to Purchaser's Obligations.
Purchaser will have a period of 20 days from the Effective Date in which to go on the Property
and make inspections, environmental studies, surveys, test borings, and soil analysis, and in
which to conduct a feasibility study of the drainage, utilities availability, environmental conditions
and other matters to determine if the Property is suitable for Purchaser's proposed use or
development. If within such 20 -day time period Purchaser does not notify Seller in writing if
Purchaser has found the Property unsuitable for Purchaser's use or development, then
Purchaser will be deemed to have waived the provisions of this Section 9 and Purchaser may
not thereafter terminate this Agreement for that reason. At any time prior to the end of such 20
day time period, however, Purchaser may notify Seller that Purchaser, in its sole discretion, has
determined that the Property is not suitable for its proposed development, in which event this
Agreement will terminate as provided for in Section 6(b). Purchaser's inspection of the Property
will not, in any event, extinguish, reduce, or otherwise affect the warranties and representations
made by Seller.
Section 10. Condemnation.
If prior to the Closing all or any part of the Property should be taken by eminent domain or
condemnation or should any notice be given that any entity with the power of eminent domain
desires to take all or any portion of the Property, Seller will immediately notify Purchaser in
writing. Purchaser will have five days from receipt of such notice in which to elect to either
terminate this Agreement or proceed to Closing. If within such five-day time period Purchaser
elects to terminate this Agreement, then the same will be terminated as provided for in Section
66b). If Purchaser does not notify Seller that it wishes to terminate this Agreement within such
time period, then Closing will occur as otherwise provided, but Seller will assign to Purchaser at
Closing all of Seller's rights to any condemnation awards or other proceeds payable in respect
of the taking in question.
PURCHASE AND SALE AGREEMENT PAGE 6 OF 9
Section 11. Seller's Representations and Warranties.
Seller warrants and represents to Purchaser that:
(a) Seller now has and will have at Closing good, marketable, and indefeasible title, in fee
simple, to the Property, and no party, except as set forth in this Agreement, has any
rights in, or rights to acquire the Property;
(b) There are no (and on the date of Closing, there will not be any) actions, suits, or
proceedings pending, or, to the knowledge of Seller, threatened against Seller or the
Property which could materially adversely affect the Property;
(c) Seller has full right, power, and authority to execute, deliver, and perform this Agreement
without the necessity of obtaining any consents or approvals of, or the taking of any
other action with regard to any third parties (or if any such consents, approvals, or other
action are required, the same will be accomplished at or prior to the Closing), and this
Agreement, when executed and delivered by Seller and Purchaser, will constitute the
valid and binding agreement of Seller, enforceable against Seller in accordance with its
terms;
(d) Seller has no actual knowledge of any law, regulation, fact, or condition relative to the
Property which would materially adversely affect Purchaser's proposed use for
development for public park purposes;
(e) To the best of Seller's knowledge, the use of the Property for the development for public
park purposes will not violate any existing zoning ordinances or other public or private
land use restriction;
(17 To the best of Seller's knowledge, the Property has never been the site of any activity
which would violate any past or present laws of any federal, state, or local governmental
body or agency, including (without limitation) all environmental laws, and no hazardous
materials have ever been buried on or in the Property;
(g) The Property is not located within the boundaries of any municipal utility district, public
utility district, or other similar body politic;
(h) The Property has free uninterrupted access to and from a publicly dedicated street or
road;
(i) There is sufficient utility service available to the boundaries of the Property (including
without limitation, gas, electricity, water, sewer, and telephone service) for the
development on the Property for public park purposes;
Section 12. Other Obligations of Purchaser.
Prior to opening to the public any hike and bike trail constructed on the Property, Purchaser will
construct a minimum six (6) foot high fence along the eastern boundary of the Property.
Maintenance of the fence will be the obligation of the Purchaser.
PURCHASE AND SALE AGREEMENT PAGE 6 OF 9
Section 13. Survival.
All warranties, representations, and covenants made by Seller in this Agreement and in any
document, instrument, or certificate executed and delivered pursuant to this Agreement will
survive, and not be merged or extinguished by, the Closing or any investigation made by or on
behalf of either party.
Section 14. Foreign Person.
In the event that:
(a) Seller is a "foreign person" (as defined in 26 U.S.C. § 1445(f)(3) of the Code and its
regulations);
(b) Seller fails or refuses to deliver the non -foreign certificate required in Section 5(b)(1)(iv);
or
(c) Purchaser receives notice from any Seller -transferee's agent or Purchaser -transferee's
agent (each as defined in 26 U.S.C. § 1445(d) of the Code and its regulations) that, or
Purchaser has actual knowledge that, such certificate is false, and the transaction is not
otherwise exempted from the withholding requirements of Section 1445 of the Code and
its regulations, then Purchaser will be entitled to deduct and withhold from the Purchase
Price a tax equal to the highest amount required or permitted by Section 1445 of the
Code. In the event of any such withholding, Seller's obligations under this Agreement will
not be excused or otherwise affected, Purchaser will remit such amount to and file the
required form with the Internal Revenue Service, and Seller in the event of any claimed
over -withholding will be limited solely to an action against the Internal Revenue Service
for refund under the Code, and waives any right of action against Purchaser on account
of such withholding.
Section 15. Assigns.
This Agreement will inure to the benefit of and be binding on the parties and their respective
successors and assigns. Seller agrees that if Purchaser assigns its rights under this Agreement
to a party who fully assumes Purchaser's obligations and liabilities, Purchaser will be fully
released from all of its obligations and liabilities under this Agreement.
Section 16. Purchaser's Costs as Liens.
All sums paid by Purchaser on account of this Agreement, and the reasonable expenses of the
examination of the title to the Property and to the survey made in connection with it are made
liens on the Property. However, such liens will not continue after a default by Purchaser under
this Agreement. If Seller fails to convey title in accordance with the terms of this Agreement, the
sole liability of Seller will be to refund to Purchaser the amount paid on account of the Purchase
Price, including the Earnest Money, and to pay the net cost of examining the title, which cost will
not to exceed the charges fixed by the Title Company, and the net cost of any survey made in
connection with examining title incurred by Purchaser. On the making of such refund and
payment, this Agreement will be considered cancelled, and all the respective rights and
obligations under it will cease and become null and void.
PURCHASE AND SALE AGREEMENT PAGE 7 OF 9
Section 17. Exhibits.
All exhibits are fully incorporated in this Agreement by this reference for all purposes.
Section 18. Entire Agreement.
This Agreement sets forth all agreements between Seller and Purchaser relative to the
Property, and all prior negotiations or agreements are merged in this Agreement. No
modification of this Agreement or subsequent agreement relative to the subject matter of this
Agreement will be binding unless reduced to a writing signed by the party to be bound.
Section 19. Applicable Law.
This Agreement will in all respects be governed by, and construed in accordance with, the
substantive federal laws of the United States and the laws of the State of Texas.
Section 20. Headings.
The section and subsection headings appearing in this Agreement are for convenience of
reference only and are not intended, to any extent and for any purpose, to limit or define the text
of any section or subsection.
Section 21. Amendment and Waiver.
This Agreement may be amended or changed only by written document duly executed by Seller
and Purchaser, and any alleged amendment or change, which is not so documented will not be
effective as to either party. Provisions of this Agreement may be waived by the party, which is
entitled to the benefit by evidencing such waiver in writing, executed by such party.
Section 22. Expiration of Offer; Effective Date.
The offer represented by this Agreement will expire if not accepted by Seller, as hereafter
provided, on or before 5:00 p.m. on September 30, 2014. Seller will accept this Agreement by
executing a counterpart and delivering the same to Purchaser prior to the date and time stated
in this section. For all purposes, the "Effective Date" of this Agreement will be the date upon
which this Agreement has been executed by Seller, as indicated below, and delivered to the
Purchaser.
SIGNATURES ON FOLLOWING PAGE(S):
PURCHASE AND SALE AGREEMENT PAGE 8 OF 9
SELLER (John Bradley)
Date executed by Seller:
John Bradley
State of Texas
County of Collin
Before me, on this day personally appeared John Brdley, known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.
Given under my hand and seal of office this day of
PURCHASER (City of Anna, Texas)
By: Philip Sanders, City Manager
State of Texas
County of Collin
2014.
Notary — State of Texas
Date executed by Purchaser:
Before me, on this day personally appeared Philip Sanders, known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed same for the purposes
and consideration therein expressed.
Given under my hand and seal of office this day of
2014.
Notary — State of Texas
PURCHASE AND SALE AGREEMENT PAGE 9 OF 9
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