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HomeMy WebLinkAboutResolution - 2022-R0075 - LP&L Real Estate Purchase and Sale Agreement and Warranty Deed with PycoResolution No. 2022-R0075 Item No. 7.19 February 8, 2022 RESOLUTION WHEREAS, Lubbock Power & Light is the municipally owned electric utility of the City of Lubbock ("LP&L"); WHEREAS, LP&L owns and operates the Coop substation ("Substation") located on land currently owned by the City of Lubbock, a municipal corporation of the State of Texas, which is comprised of two tracts of land situated in Block 36, Coronado Addition to the City of Lubbock according to the map, plat, and/or dedication deed recorded in Volume 930, Page 195, deed records of Lubbock County, Texas, and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46 of the deed records of Lubbock County, Texas; WHEREAS, the Substation is in need of expansion and upgrades to support integrating the remaining portion of LP&L's load, which remains in Southwest Power Pool, into the Electric Reliability Council of Texas; WHEREAS, the site for the LP&L-owned Substation expansion is on land currently owned by Pyco Industries, Inc., a non-profit corporation organized under the laws of the State of Texas ("Pyco"), which is approximately 0.6790 acre tract of land, more or less, being a portion of block 36, Coronado Addition to the City of Lubbock, according to the map, plat, and/or dedication deed recorded in Volume 930, Page 195, deed records of Lubbock County, Texas, and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46 of the deed records of Lubbock County, Texas; WHEREAS, under the Agreement, LP&L has agreed to pay for certain title and closing costs related to the acquisition of the property as more fully outlined in the Agreement; WHEREAS, Pyco and LP&L desire to complete the acquisition of the property necessary for the Substation expansion; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock hereby authorizes the Mayor to execute that certain Real Estate Purchase and Sale Agreement by and between Pyco Industries, Inc., a Texas non-profit corporation, and the City of Lubbock, a Texas home -rule municipal corporation as attached hereto and incorporated herein as though fully set forth herein in detail, and any documents related thereto, and approves payment of consideration in the amount provided therein, in addition to any necessary title and closing costs associated with same. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council accepts that certain Warranty Deed from Pyco Industries, Inc. to the City of Lubbock for an approximately 0.6790 acres more or less, being a portion of block 36, Coronado Addition to the City of Lubbock, according to the map, plat, and/or dedication deed recorded in Volume 930, Page 195, deed records of Lubbock County, Texas, and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46 of the deed records of Lubbock County, Texas; more fully described in Exhibit A attached to the Real Estate Purchase and Sale Agreement, as attached hereto and incorporated herein as though fully set forth herein in detail. Passed by the City Council this 8th day of February, 2022. 1,rke-- DANIEL M. POPE, MAYOR ATTEST: Reb cca Garza, Board Secret y APPROVED AS TO CONTENT: Blair McGinnis, Chief Operating Officer APPROVED AS TO FORM: WHERION- Hunter Harrison, LP&L Electric Utilities Attorney Resolution No. EUB 2022-R0004 RESOLUTION WHEREAS, Lubbock Power & Light is the municipally owned electric utility of the City of Lubbock ("LP&L"); WHEREAS, LP&L owns and operates the Coop substation ("Substation") located on land currently owned by the City of Lubbock, a municipal corporation of the State of Texas, which is comprised of two tracts of land situated in Block 36, Coronado Addition to the City of Lubbock according to the map, plat, and/or dedication deed recorded in Volume 930, Page 195, deed records of Lubbock County, Texas, and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46 of the deed records of Lubbock County, Texas; WHEREAS, the Substation is in need of expansion and upgrades to support integrating the remaining portion of LP&L's load, which remains in Southwest Power Pool, into the Electric Reliability Council of Texas; WHEREAS, the site for the LP&L-owned Substation expansion is on land currently owned by Pyco Industries, Inc., a non-profit corporation organized under the laws of the State of Texas ("Pyco"), which is approximately 0.6790 acre tract of land, more or less, being a portion of block 36, Coronado Addition to the City of Lubbock, according to the map, plat, and/or dedication deed recorded in Volume 930, Page 195, deed records of Lubbock County, Texas, and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46 of the deed records of Lubbock County, Texas; WHEREAS, under the Agreement, LP&L has agreed to pay for certain title and closing costs related to the acquisition of the property as more fully outlined in the Agreement; WHEREAS, Pyco and LP&L desire to complete the acquisition of the property necessary for the Substation expansion; NOW THEREFORE, BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT the Electric Utility Board hereby authorizes the Chairman of the Electric Utility Board to execute that certain Real Estate Purchase and Sale Agreement by and between Pyco Industries, Inc., a Texas non-profit corporation, and the City of Lubbock, a Texas home -rule municipal corporation as attached hereto and incorporated herein as though fully set forth herein in detail, and any documents related thereto, and approves payment of consideration in the amount of necessary title and closing costs associated with same, and further recommends approval by the City Council to approve and authorize same. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT the Electric Utility Board accepts that certain Warranty Deed from Pyco Industries, Inc. to the City of Lubbock for an approximately 0.6790 more or less, being a portion of block 36, Coronado Addition to the City of Lubbock, according to the map, plat, and/or dedication deed recorded in Volume 930, Page 195, deed records of Lubbock County, Texas, and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46 of the deed records of Lubbock County, Texas; more fully described in Exhibit A attached to the Real Estate Purchase and Sale Agreement, as attached hereto and incorporated herein as though fully set forth herein in detail. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT this Resolution shall be null and void if the City Council shall not likewise approve and authorize the attached Real Estate Purchase and Sale Agreement within sixty (60) days of the date hereof. Passed by the Electric Utility Board this 18th day of January, 2022. DAN ODOM, CHAIRMAN ATTEST: B See/elky APPROVED AS TO CONTENT: David McCalla, Director of Electric Utilities APPROVED AS TO FORM: Hunter Harrison, LP&L Electric Utilities Attorney Resolution No. 2022-R0075 REAL ESTATE PURCHASE AND SALE AGREEMENT EFFECTIVE DATE: January 18, 2022 SELLER: Pyco Industries, Inc., a Texas non-profit corporation SELLER'S MAILING ADDRESS: 2901 Avenue A, Lubbock, TX 79404 BUYER: City of Lubbock, a Texas home -rule municipal corporation BUYER'S MAILING ADDRESS: Citizens Tower, 1314 Avenue K, Lubbock, Texas 79401 CASH PURCHASE PRICE: Three Thousand Five Hundred Eighty -One and no/100 dollars ($3,581.00) Subject to the terms, covenants, and conditions hereinafter stated, Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller the herein described Property. Seller and Buyer are sometimes referred to herein separately as "Party" or collectively as the "Parties". 1. PROPERTY: As used in this Agreement, the term "Property" means the following: A. That certain tract of land situated in Lubbock County, Texas, described as follows: An approximately 0.679 acre tract of land, more or less, being a portion of block 36, Coronado Addition to the City of Lubbock, according to the map, plat, and/or dedication deed recorded in volume 930, page 195, deed records of Lubbock County, Texas (DRLCT), and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46, DRLCT, said 0.679 acre tract being further described and depicted on Exhibit "A" attached hereto and made a part hereof for all purposes (the "Land") together with (i) all improvements and fixtures situated thereon ("Improvements"), (ii) all rights, privileges and appurtenances pertaining thereto, including but not limited to easements, rights -of -way, licenses, permits, and other similar interests ("appurtenances") existing in connection with the beneficial use and enjoyment of the Property, and (iii) all minerals, oil, gas, and other hydrocarbon substances appurtenant to the Property that are not previously reserved. 2. CONSIDERATION/DONATION: Pyco Industries, Inc. (herein "Pyco") agrees to sell all right, title, and interest, in and to the Property to the City of Lubbock (herein "City"), and City agrees to buy and pay Pyco three thousand five hundred eighty-one and no/100 dollars ($3,581.00) ("Purchase Price") for the Property on the terms and conditions set forth herein. The promises by REAL ESTATE PURCHASE AND SALE AGREEMENT Page 1 Buyer and Seller stated in this agreement ("Agreement") are the consideration for the formation of this Agreement. 3. APPROVAL/GOVERNMENTAL AUTHORITY: By Resolution EUB 2021-0038, Lubbock Power & Light ("LP&L"), the municipally owned utility of the City (Buyer), has been approved to migrate its Unaffected Load (defined therein) from Southwest Power Pool into the Electric Reliability Council of Texas, and to execute all requisite regulatory documentation or filings to cause such migration. LP&L requires the Property to expand its Coop substation ("Substation") be able to support such migration of its Unaffected Load; the Property will be the site of such expansion of the Substation. Buyer is authorized to own real property pursuant to Texas Local Government Code Section 51.076 and City of Lubbock Charter, Article 2, Section 5. Buyer's obligation to close under this Agreement is subject to an affirmative vote in favor of the proposed transaction and all of the terms within this Agreement by the Electric Utility Board of the City of Lubbock and the City Council of Lubbock. 4. TITLE POLICY AND TITLE APPROVAL: A. Title Policy: Seller shall furnish to Buyer, at Seller's expense, an Owner's Policy of Title Insurance (the "Title Policy") issued by Lubbock Abstract & Title Co. in Lubbock, Texas ("Title Company"), as agent for a title insurance company acceptable to Buyer, and dated at or after closing. The Title Policy shall guarantee Buyer's title to be good and marketable as of the date of closing. B. Commitment: Within a reasonable time after the Title Company receives a fully executed copy of this Agreement, Seller shall deliver to Buyer a commitment for a Title Policy (the "Commitment"), stating the condition of the title to the Land, together with legible copies of all documents evidencing any Permitted Exceptions in the Commitment (the "Exception Documents"). "Permitted Exceptions" means: (1) any exception arising out of an act of Buyer or its representatives, agents, employees or independent contractors; (2) zoning and subdivision ordinances and regulations; (3) the specific exceptions in the Commitment that the Title Company has not agreed to insure over or remove from the Commitment before the Closing Date and that Seller is not required to remove as provided above; (4) items shown on the surveys or any updated or new surveys of the Property which have not been removed before the Closing Date; (5) any applicable real estate taxes and assessments not yet due and payable; and (6) rights of tenants under any existing lease on the Property, as occupancy tenants only and without any rights of first refusal, rights of first offer or purchase options. C. Title Approval: Buyer shall have thirty (30) days after receipt of the Commitment and the Exception Documents, while being aware of the Closing Date set out herein, to deliver written notification to Seller of Buyer's objections to any of the matters in the Commitment and the Exception Documents. The Closing Date will be extended, if necessary, to accommodate this review period. If no objections are REAL ESTATE PURCHASE AND SALE AGREEMENT Page 2 received, then Buyer shall be deemed to have accepted all matters shown on the Commitment and the Exception Documents; provided, however, that in no event will liens, money encumbrances, or other items shown on Schedule C of the Commitment be deemed to be Permitted Exceptions, and Seller must, at or prior to closing, discharge or obtain releases of all liens and money encumbrances and cure all other items shown on Schedule C of the Commitment, whether or not Buyer objects to such items. The matters that Buyer either approves or is deemed to have approved are considered Permitted Exceptions. If objections are raised by Buyer, Seller shall have ten (10) days from the date such objections are disclosed to cure the same, and the parties will amend the Closing Date set out herein. If the objections are not timely cured, Buyer may, at Buyer's option (1) waive the unsatisfied objections and complete the purchase, subject to Seller's obligations to remove all liens and money encumbrances and cure all other items shown on Schedule C of the Commitment, or (2) terminate this Agreement, and neither Party shall have any further rights or obligations under this Agreement, except as otherwise expressly provided in this Agreement. INSPECTION OF THE PROPERTY: A. Entry Onto The Property: The parties to this Agreement are also negotiating a Temporary License Agreement, intended to grant Buyer access to and use of the Property for a certain time period. Upon the execution of this Agreement, Buyer shall have immediate access to the Property and may enter thereon to inspect it at Buyer's cost, subject to the following: (1) If the Property is materially damaged as a result of Buyer's inspections, Buyer must promptly return the Property to as near its pre -inspection condition as is reasonably practicable; (2) Buyer must deliver to Seller copies of all inspection reports that Buyer prepares or receives from third -party consultants or contractors; and (3) Buyer must abide by any other reasonable entry rules imposed by Seller. B. Indemnity: TO THE FULLEST EXTENT POSSIBLE BY LAW, SELLER AGREES TO PROTECT, INDEMNIFY, DEFEND AND HOLD HARMLESS, BUYER, AND BUYER'S SUCCESSORS AND ASSIGNS, ("INDEMNITEES") FROM AND AGAINST ALL CLAIMS, DEMANDS, CAUSES OF ACTION, SUITS, LOSSES, DAMAGES, (INCLUDING WITHOUT LIMITATION REASONABLE ATTORNEY'S FEES AND COSTS) INCURRED BY OR ASSERTED AGAINST BUYER IN ITS INVESTIGATION OF THE PROPERTY AND ARISING FROM OR IN CONNECTION WITH SELLER'S NEGLIGENCE OR INTENTIONAL MISCONDUCT WITH REGARD TO THE CONDITION OF THE PROPERTY. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, THE OBLIGATIONS OF SELLER UNDER THIS PROVISION WILL SURVIVE TERMINATION OF THIS AGREEMENT AND CLOSING. REAL ESTATE PURCHASE AND SALE AGREEMENT Page 3 6. SELLER'S REPRESENTATIONS TO BUYER: Seller represents to Buyer that the following are true and correct as of the Effective Date and will be true and correct on the Closing Date (the representations and warranties of Seller in this Section will survive closing). A. Authority: Seller is a Texas non-profit corporation duly formed under the laws of the state of Texas and is in good standing with the Texas Secretary of State and Texas Comptroller's office, and the individuals signing on behalf of Seller below have the requisite authority to perform its obligations under this Agreement. This Agreement is binding on Seller. This Agreement is, and all documents required by this Agreement to be executed and delivered to Buyer at closing will be, duly authorized, executed, and delivered by Seller. B. Litigation: Seller is not aware of any litigation pending or threatened against Seller that might affect the Property or Seller's ability to perform its obligations under this Agreement. C. Violation Of Laws: Seller has not received written notice and has no actual knowledge of any violation of any law, ordinance, regulation, or requirements affecting the Property, Seller's use, or Buyer's intended use of the Property. D. Easements and Appurtenances: Seller has not received any written notice and has no actual knowledge that any easement, license, permit, or appurtenances necessary to use the Property in the manner in which it is currently being used has expired or will not be renewed on expiration or that any material condition will be imposed to use or renew the same. E. No Other Obligation To Sell Or Restriction Against Sale: Seller has not obligated itself to sell all or any portion of the Property to any person other than Buyer. Seller's performance of this Agreement will not cause a breach of any other agreement or obligation to which Seller is a party or to which it is bound. F. No Liens: On the Closing Date, the Property will be free and clear of all mechanic's and materialman's liens and other liens, assessments, security interests, and encumbrances of any nature not arising by, through, or under Buyer, and no work or materials will have been furnished to the Property by Seller that might give rise to mechanic's, materialman's, or other liens against the Property other than work or materials to which Buyer has given its consent in writing. G. Environmental: (1) Except as specifically provided herein, Seller hereby represents to Buyer that to Seller's knowledge: (i) no mandatory statutory disclosure document concerning the environmental condition of the Property needs to be provided; (ii) the Property is not in any way contaminated with any hazardous material or substance; (iii) the Property does not appear on any REAL ESTATE PURCHASE AND SALE AGREEMENT Page 4 state or federal CERCLA (Comprehensive Environmental Responsibility, Compensation, and Liability Act) or Superfund lists; (iv) neither Seller nor any of Seller's employees, agents, licensees, invitees, contractors, or other persons directly or indirectly under the control of Seller have placed or permitted the placement of any unauthorized hazardous materials or substances in, on, or over the Property; (v) no other party has placed any unauthorized hazardous materials or substances in, on, or over the Property; (vi) the Property is not subject to any federal, state or local "Superfund" lien, proceedings, claim, liability or action, or the threat or likelihood thereof, for the clean-up, removal or remediation of any hazardous substance from the Property; and (vii) Seller has not received written notice and has no actual knowledge of any hazardous materials by any governmental authority or third party with respect to the presence of hazardous materials affecting the Property. (2) Except as specifically provided herein, no hazardous materials are or have been placed, held, located, discharged, released, treated, allowed to escape, or disposed of on or under the Property by or under the direction of Seller, and to Seller's actual knowledge no part of any improvement on the Property contains any asbestos or asbestos -containing materials, any polychlorinated byphenyls in the form of electrical transformers, fluorescent light fixtures with ballasts, cooling oils or otherwise, nor any lead -based paint, nor any underground storage tanks. (3) Seller has never used any portion of the Property, and to the best of Seller's knowledge no portion of the Property has been used, for a sanitary landfill or as a dump site or storage site (whether temporary or permanent) for any hazardous materials. H. Right of Access: As of the Effective Date, the Property has a legal right and practicable means of access from a public road. 7. BUYER'S REPRESENTATIONS TO SELLER: Buyer represents to Seller that the following are true and correct as of the Effective Date and will be true and correct on the Closing Date. A. Authority: Buyer is a Texas home -rule municipal corporation operating under the laws of the state of Texas, with authority to perform its obligations under this Agreement, subject to the condition set forth herein that Buyer's obligations under this Agreement is contingent upon an affirmative vote in favor of the proposed transaction and all of the terms within this Agreement by the Electric Utility Board of the City of Lubbock and the City Council of the City of Lubbock. Subject to the conditions set forth herein, this Agreement is binding on Buyer. This Agreement is, and all documents required by this Agreement to be executed and delivered to Seller at closing will be, duly authorized, executed, and delivered by Buyer. REAL ESTATE PURCHASE AND SALE AGREEMENT Page 5 CONDITION OF THE PROPERTY UNTIL CLOSING: A. Maintenance And Operation: Until closing, Seller will (i) maintain the Property in at least as good of a condition and state of repair as it existed as of the Effective Date, except for reasonable wear and tear and casualty damage; (ii) comply with all contracts, laws, and governmental regulations affecting the Property and Seller's operations on and occupancy of the Property; and (iii) not encumber, transfer, or dispose of any of the Property except to sell inventory, replace equipment, and use supplies in the normal course of operating the Property. Until Closing or the termination of this Agreement, Seller will not enter into, amend, or terminate any lease of the Property ("Lease") or other contract that affects the Property other than in the ordinary course of operating the Property and will promptly give notice to Buyer of each new, amended, or terminated Lease or other contract, including a copy of the Lease or other contract, in sufficient time so that Buyer may consider the new information before the end of the Closing or the termination of this Agreement. B. Casualty Damage: If any part of the Property is damaged or destroyed by fire, windstorm, or other casualty prior to the Closing Date, Seller shall promptly notify Buyer and restore the same to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller is unable to do so without default, Buyer may terminate this Agreement if the casualty damage that occurs before closing would materially affect Buyer's intended use of the Property, by giving written notice to Seller. The casualty damage will be deemed to materially affect Buyer's intended use if the estimated amount of damage exceeds thirty percent (30%) of the Purchase Price. If Buyer does not terminate this Agreement, Seller will (a) convey the Property to Buyer in its damaged condition, (b) assign to Buyer all of Seller's rights under any property insurance policies covering the Property, and (c) pay to Buyer the amount of the deductibles and coinsurance provisions under any insurance policies covering the Property, but not in excess of the cost to repair the casualty damage. If Seller has not insured the Property and Buyer does not elect to terminate this Agreement in accordance with this section, the Purchase Price will be reduced by the cost to repair the casualty damage. 9. CLOSING: A. Closing: The closing of this transaction shall be conducted at the Title Company on or before February 28, 2022, (the "Closing Date"), or such other time and place as may be agreed upon by the Parties, unless some valid objection to the title is made by Buyer requiring additional time within which to meet and cure the same, in which event it shall be consummated within a reasonable time after meeting and curing such objections. At closing, the following will occur: 1) Buyer will deliver the Purchase Price and other amounts that Buyer is obligated to pay under this contract to Escrow Agent in funds acceptable to Escrow Agent. ; 2) Seller will deliver to Buyer a general warranty deed and bill of sale conveying good and marketable title to the Land and Improvements; REAL ESTATE PURCHASE AND SALE AGREEMENT Page 6 3) The Parties will execute and deliver customary agreements, certificates, permits, approvals, records of tax exemption applicable to the Property, records of regulatory proceedings or violations applicable to the Property, resolutions, documents affecting the property such as licenses, agreements, and encumbrances that have not been filed in the Lubbock County Clerk's office, and other closing documents and any documents required by Title Company ("Closing Documents"); 4) Title Company will be instructed to record the deed and the other closing documents directed to be recorded, and distribute documents and copies in accordance with the Parties' written instructions; and 5) Seller will deliver possession of the Property to Buyer, free of any liens, leases, or other encumbrances, subject to the Permitted Exceptions existing at closing and any liens and security interests created by Buyer at closing to secure financing for the Purchase Price. B. Transaction Costs: At Closing, the Parties will pay the costs associated with this transaction as follows: (1) Seller will pay for the basic charge for the Title Policy; the costs to prepare the deed and bill of sale; the costs to obtain, deliver, and record releases of any liens required to be released in connection with the sale; the costs to record documents to cure title objections agreed or required to be cured by Seller and to resolve matters shown in Schedule C of the Commitment; Title Company's inspection fee to delete from the Title Policy the customary exception for rights of parties in possession; the additional premium for the survey/area and boundary deletion in the Title Policy; the costs of any UCC search, and certificates or reports of ad valorem taxes; the costs to deliver copies of the instruments; any other costs expressly required to be paid by Seller in this Agreement; and Seller's attorney's fees and expenses. (2) Buyer will pay the costs to obtain, deliver, and record all documents other than those to be obtained or recorded at Seller's expense; the costs to obtain financing of the Purchase Price, including the incremental premium costs of the loan title policies and endorsements and deletions required by Buyer's lender; any other costs expressly required to be paid by Buyer in this Agreement; and Buyer's attorney's fees and expenses. C. Ad Valorem Taxes: The Parties recognize and acknowledge that Buyer is a tax- exempt entity. Buyer agrees to submit all requisite documents and application(s) with the Lubbock Central Appraisal District to confirm that following Closing, the Property will be owned by a tax-exempt entity, and no further tax will be due. Seller agrees: (i) that ad valorem taxes due for the Property for the calendar year of closing will be calculated as of the Closing Date, and Seller shall pay those taxes in full at Closing to the Lubbock Central Appraisal District; (ii) if the assessment for the calendar year of closing is not known at the Closing Date, the calculation will be based on tax rates for the previous tax year applied to the most current assessed value; (iii) Seller will promptly notify Buyer of all notices of proposed or final tax valuations and assessments that Seller receives after the Effective Date and after REAL ESTATE PURCHASE AND SALE AGREEMENT Page 7 closing; and (iv) Any and all prior or past due taxes (including any penalties, interest, and attorney's fees) that are still due as of closing will be paid by Seller at closing. D. Issuance of Title Policy: Seller will cause Title Company to issue the Title Policy to Buyer as soon as practicable after closing. 10. DEFAULT AND REMEDIES: A. Seller's Default; Buyer's Remedies before Closing: If Seller fails to perform any of its obligations under this Agreement or if any of Seller's representations are not true and correct as of the Effective Date or on the Closing Date ("Seller's Default"), Buyer may (i) terminate this Agreement by giving notice to Seller on or before the Closing Date, or (ii) enforce specific performance of this Agreement. If Seller's Default occurs after Buyer has incurred costs to investigate and inspect the Property and Buyer terminates this Agreement in accordance with the previous sentence, Seller will also pay to Buyer as liquidated damages the total of Buyer's actual out- of-pocket expenses incurred after the Effective Date to investigate and inspect the Property ("Buyer's Expenses"), the same to be paid to Buyer within ten (10) days after Seller's receipt of an invoice from Buyer stating the amount of Buyer's Expenses and accompanied by reasonable evidence of same. A. Seller's Default; Buyer's Remedies after Closing: If Seller's representations are not true and correct at closing for reasons reasonably within Seller's control or knowledge and Buyer does not become aware of the untruth or incorrectness until after closing, Buyer will have all the rights and remedies available at law or in equity, including but not limited to rescission of this Agreement. If Seller fails to perform any of its obligations under this Agreement that survive closing, Buyer will have all rights and remedies available at law or in equity. B. Buyer's Default; Seller's Remedies before Closing: If Buyer fails to perform any of its obligations under this Agreement ("Buyer's Default"), Seller may, as its sole and exclusive remedy, terminate this Agreement by giving notice to Buyer on or before the Closing Date, thereby releasing Buyer from any further obligations under this Agreement. The foregoing constitutes Seller's sole and exclusive remedies for a default by Buyer before Closing. C. Buyer's Default; Seller's Remedies after Closing: After closing, if Buyer fails to perform any of its obligations under this Agreement that survive closing, Seller will have all rights and remedies available at law or in equity unless otherwise provided by the Closing Documents. E. Attorney's Fees: If either party retains an attorney to enforce this Agreement, each party will be responsible for its own attorney's fees and court and other costs. 11. MISCELLANEOUS PROVISIONS: REAL ESTATE PURCHASE AND SALE AGREEMENT Page 8 A. Notices: Any notice required by or permitted under this Agreement must be in writing. Any notice required by this Agreement will be deemed to be delivered (whether actually received or not) when deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended recipient at the address shown in this Agreement. Notice may also be given by personal delivery, facsimile transmission, electronic mail transmission, or other commercially reasonable means and will be effective when actually received, provided that (a) any notice received on a Saturday, Sunday, or national holiday will be deemed to have been received on the next day that is not a Saturday, Sunday, or national holiday and (b) any notice received after 5:00 P.M. local time at the place of delivery on a day that is not a Saturday, Sunday, or national holiday will be deemed to have been received on the next day that is not a Saturday, Sunday, or national holiday. Any address for notice may be changed by not less than ten (10) days' prior written notice delivered as provided herein. B. Captions. The captions for the articles and sections in this Agreement are inserted in this Agreement strictly for the Parties' convenience in identifying the provisions to this Agreement and shall not be given any effect in construing this Agreement. C. Entire Agreement: This Agreement, its exhibits, and any Closing Documents delivered at closing constitute the entire agreement of the Parties concerning the sale of the Property by Seller to Buyer. There are no representations, warranties, agreements, or promises pertaining to the sale of the Property by Seller to Buyer that are not in those documents. D. Amendment: This Agreement may be amended only by an instrument in writing signed by the Parties, and duly authorized by governing bodies, as applicable. E. Assignment: Buyer may assign this Agreement and Buyer's rights under it, and any such Assignment must be in writing and a copy of any such Assignment shall be provided to Seller. F. Survival: The provisions of this Agreement that expressly survive termination or closing and other obligations of this Agreement that cannot be performed before termination of this Agreement or before closing survive termination of this Agreement or closing, and the legal doctrine of merger does not apply to these matters. If there is any conflict between the Closing Documents and this Agreement, the Closing Documents control. The representations made by the parties as of Closing survive Closing. G. Choice of Law; Venue: THIS AGREEMENT IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO CHOICE -OF -LAW RULES OF ANY JURISDICTION. VENUE IS IN LUBBOCK COUNTY, TEXAS. H. Waiver of Default: Default is not waived if the non -defaulting party fails to declare a default immediately or delays taking any action with respect to the default. REAL ESTATE PURCHASE AND SALE AGREEMENT Page 9 I. No Third -Party Beneficiaries: There are no third -party beneficiaries of this Agreement. J. Severability: If any provision of this Agreement is ever held to be invalid or ineffective by any court of competent jurisdiction with respect to any person or circumstance, the remainder of this Agreement and the application of such provision to persons and/or circumstances other than those with respect to which it is held invalid or ineffective shall not be affected thereby. K. Ambiguities Not to Be Construed against Party Who Drafted Agreement: The rule of construction that ambiguities in a document are construed against the party who drafted it does not apply in interpreting this Agreement. L. No Special Relationship: The Parties' relationship is an ordinary commercial relationship, and the parties do not intend to create the relationship of principal and agent, partners, joint venturers, or any other special relationship. M. Counterparts: If this Agreement is executed in multiple counterparts, all counterparts taken together constitute this Agreement. Copies of signatures to this Agreement are effective as original signatures. N. Confidentiality: All information learned in the course of this transaction shall be kept confidential. Notwithstanding any provision to the contrary, confidentiality requirements shall not apply to: (i) duly elected or appointed officials, (ii) this Agreement and amounts paid herein, (ii) the extent disclosure is required by law or court order or to enable third parties to advise or assist Buyer to investigate and inspect the Property or to close this transaction. Remedies for violations of this provision are limited to injunctions and no damages or rescission may be sought or recovered as a result of any such violations. Notwithstanding anything herein, the Parties understand Buyer is subject to the Texas Public Information Act, Texas Government Code § 552.001, et seq., and will comply with this Act. O. Disclosure of Interested Parties. To the extent Section 2252.908 of the Texas Government Code applies to this Agreement, Seller shall submit a disclosure of Interested Parties ("Disclosure Form") to LP&L (to the attention of LP&L's Purchasing Department) at the time Seller submits the signed Agreement to LP&L. The Disclosure Form may be found here: https://www.ethics.state.tx.us/filinginfo/1295/ or other webpage as designated by the Texas Ethics Commission from time to time. If Seller has not submitted a Disclosure Form pursuant to this section, Seller represents and warrants that Section 2252.908 of the Texas Government Code does not apply to this Agreement. P. Texas Public Information Act: The requirements of Subchapter J, Chapter 552, Government Code may apply to this Agreement and Seller agrees that the REAL ESTATE PURCHASE AND SALE AGREEMENT Page 10 Agreement can be terminated if Seller knowingly or intentionally fails to comply with a requirement of that subchapter. To the extent Subchapter J, Chapter 552, Government Code applies to this agreement, Seller agrees to: (1) preserve all contracting information related to the Agreement as provided by the records retention requirements applicable to the governmental body for the duration of the Agreement; (2) promptly provide to the governmental body any contracting information related to the Agreement that is in the custody or possession of the entity on request of the governmental body; and (3) on completion of the Agreement, either: (A) provide at no cost to the governmental body all contracting information related to the Agreement that is in the custody or possession of the entity; or (B) preserve the contracting information related to the Agreement as provided by the records retention requirements applicable to the governmental body. Q. Binding Effect: This Agreement binds, benefits, and may be enforced by the Parties and their respective heirs, successors, and permitted assigns. R. Non -Boycott of Israel. To the extent it applies, Seller hereby warrants that it is in compliance with Chapter 2271, Subtitle F, Title 10 of the Texas Government Code by verifying that: (1) it does not boycott Israel and (2) it will not boycott Israel during the term of this Agreement. S. Ownership Representation and Warranty. To the extent Chapter 2274, Texas Government Code applies to this Agreement, Seller represents and warrants that it is not, and during the term of this Agreement will not be (1) owned by or the majority of stock or other ownership interest of Seller, will not be held or controlled by (i) individuals who are citizens of China, Iran, North Korea, Russia, or a designated country, as defined in Section 2274.0101, Texas Government Code; or (ii) a company or entity, including a governmental entity, that is owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea, Russia, or a designated country as defined in Section 2274.0101, Texas Government Code; or (2) headquartered in China, Iran, North Korea, Russia, or a designated country as defined in Section 2274.0101, Texas Government Code. Seller warrants and represents that LP&L's Agreement with Seller therefore does not and will not violate Texas Government Code Section 2274.0101, et seq. T. Non -Discrimination against Firearm Entities/Trade Associations. Seller hereby warrants that it is in compliance with Chapter 2274, Subtitle F, Title 10 of the Texas Government Code by verifying that: (1) it does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association, and (2) it will not discriminate during the term of the Agreement against a firearm entity or firearm trade association. REAL ESTATE PURCHASE AND SALE AGREEMENT Page 11 U. Non -Boycott of Energy Companies. Seller hereby warrants that it is in compliance with Chapter 2274, Subtitle F, Title 10 of the Texas Government Code by verifying that: (1) it does not boycott energy companies, and (2) it will not boycott energy companies during the term of this Agreement. 12. TIME FOR PERFORMANCE: Time is of the essence of this Agreement and strict compliance with the times for performance is required. IN WITNESS WHEREOF, Buyer and Seller have caused this Agreement to be signed and executed effective as of the Effective Date. ATTEST: IQ, 4� 4 Beck I Garza, City Secreta APPROVED AS TO CONTENT: kLkw��Z_ David McCalla, Director of Electric Utilities APPROVED AS TO FORM: Jen Smit &L General Counsel BUYER: City of Lubbock, a Texas home -rule municipal c oration Daniel M. Pope, Mayor City of Lubbock, acting by and through the Electric Utility Board Dan Odom, Chairman REAL ESTATE PURCHASE AND SALE AGREEMENT Page 12 ATTEST: Gwen afford, Board ASecretar APPROVED AS TO CONTENT: 21 David McCalla, Director of Electric Utilities APPROVED AS TO FORM: or-4. Jen Smit &L General Counsel SELLER: PYCO INDUSTRIES, INC Robert Lacy, Jr., President and Chief Executive Officer STATE OF TEXAS COUNTY OF LUBBOCK This instrument was acknowledged before me on , 2022, by Daniel M. Pope, Mayor of the City of Lubbock, a Texas home rule municipal corporation, on behalf of said Texas home rule municipal corporation. Notary Public, State of Texas My commission expires: REAL ESTATE PURCHASE AND SALE AGREEMENT Page 13 ATTEST: Gwen Stafford, Board Secretary APPROVED AS TO CONTENT: David McCalla, Director of Electric Utilities APPROVED AS TO FORM: Jenny Smith, LP&L General Counsel SELLER: PYCO INMI ITRIES. INC Robert Lacy, Jr., Pre�ideiht and Chief Executive Officer STATE OF TEXAS § COUNTY OF LUBBOCK § This instrument was acknowledged before me on , 2022, by Daniel M. Pope, Mayor of the City of Lubbock, a Texas home rule municipal corporation, on behalf of said Texas home rule municipal corporation. Notary Public, State of Texas My commission expires: REAL ESTATE PURCHASE AND SALE AGREEMENT Page 13 STATE OF TEXAS § COUNTY OF LUBBOCK § This instrument was acknowledged before me on 1,?, 2022, by Dan Odom, Chairman of the Electric Utility Board of City of Lubbock, avrexas home rule municipal corporation, on behalf of said Texas home rule municipal corporation. ,,%��VPBEATRICE MARIE DUENEZ 91 z°: L� Notary Public, State of Texas Comm. Expires 07-24-2023 ''i,,O„���� Notary ID 132100698 STATE OF TEXAS COUNTY OF �biakese __0 �! Notary Public, gtaieof Texas My commission expires: jj_q—.2013 This instrument was acknowledged before me on , 2022, by Robert Lacy, Jr. acting in his capacity as President and CEO of Pyco Industries, Inc., a Texas non- profit corporation, on behalf of said Texas non-profit corporation. Notary Public, State of Texas My commission expires: _____ REAL ESTATE PURCHASE AND SALE AGREEMENT Page 14 STATE OF TEXAS COUNTY OF LUBBOCK This instrument was acknowledged before me on , 2022, by Dan Odom, Chairman of the Electric Utility Board of City of Lubbock, a Texas home rule municipal corporation, on behalf of said Texas home rule municipal corporation. Notary Public, State of Texas My commission expires: _ STATE OF TEXAS COUNTY OF This instrument was acknowledged before me on 114 , 2022, by Robert Lacy, Jr. acting in his capacity as President and CEO of yco Indu ries, Inc., a Texas non- profit corporation, on behalf of said Texas non-profit corporation. 1GLISA BUXTON NPubk SW of Tom otary I W NH MyWwftME*NW*M to - Notary Public, State of Texas My commission expires: Z-ZA/ REAL ESTATE PURCHASE AND SALE AGREEMENT Page 14 EXHIBIT "A" REAL ESTATE PURCHASE AND SALE AGREEMENT Page 15 Relurnto; City of Lubbock;1314 Aveenue K; 5thFloor;Lubbock, Texas 79401.;Attn;B1air McGinnis GF#2021-1475F 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 R�Wd111-2 ni t� General Warrantv Deed cID ounty DateDate: i� y 2022 C Ce00-1150 CJ Grantor: Pyco Industries, Inc., a Texas non-profit corporation Grantor's Mailing 2901 Avenue A, Lubbock, TX 79404 Address: Grantee: City of Lubbock, a Texas home -rule municipal corporation Grantee's Mailing Address: 1314 Ave. K, 5th Floor, Lubbock, Texas 79401 Consideration: TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged by Grantor A. PROPERTY: An approximately 0.679 acre tract of land, more or less, being a portion of block 36, Coronado Addition to the City of Lubbock, according to the map, plat, and/or dedication deed recorded in volume 930, page 195, deed records of Lubbock County, Texas (DRLCT), and a portion of Block 71, Wheelock's Second Addition to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Volume 26, Page 46, DRLCT, said 0.679 acre tract being further described and depicted on Exhibit "A" attached hereto and made a part hereof for all purposes (the "Land"); together with (i) all improvements and fixtures situated thereon ("Improvements"), (ii) all rights, privileges, and appurtenances pertaining thereto, including but not limited to easements, rights -of - way, licenses, permits, and other similar interests ("Appurtenances") existing in connection with the beneficial use and enjoyment of the Property, and (iii) all mineral, oil, gas, and other hydrocarbon substances appurtenant to the Property that are not previously reserved (the "Property"). B. RESERVATIONS FROM AND EXCEPTIONS TO CONVEYANCE All presently recorded instruments affecting the Property, other than liens and conveyances; all visible and recorded easements, rights -of -way, and prescriptive rights; the rules and regulations of any taxing authority having jurisdiction; all mineral rights outstanding in third parties; any valid and subsisting oil, gas, and mineral leases; and any other applicable liens, encumbrances, regulations or orders of municipal and/or other governmental authorities, if any, or other matters of record, to the extent, but only to the extent, they are validly existing and affect the Property. This conveyance is made by Grantor and accepted by Grantee subject to the terms, conditions, and provisions hereof and further subject to the Real Estate Purchase and Sale Agreement entered into between Grantor and Grantee, and subject to all applicable easements, conditions, restrictions, covenants, liens, encumbrances, regulations or orders of municipal and/or other governmental authorities, if any, or other matters of record. Grantor, for the consideration and subject to the Reservations from and Exceptions to Conveyance and Warranty herein stated, grants, sells, and conveys to Grantee the Property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and hold it to Grantee and Grantee's successors and assigns forever. Grantor hereby binds Grantor and Grantor's heirs, legal representatives, and successors to warrant and forever defend all and singular the title to the Property to Grantee and Grantee's heirs, legal representatives, successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the Reservations from and Exceptions to Conveyance and Warranty. When the context requires, singular nouns and pronouns include the plural. [signature page follows] GRANTOR PYCO INDUSTRIES, INC. Xame: a oet c-y ��- Title: 0A,,,,j_P4 1', C,r a STATE OF TEXAS COUNTY OF LUBBOCK This instrument was acknowledged before me on 11LnMQQg 1 2022 by Robert Lacy, Jr., President and CEO of Pyco Industries, Inc. a Texas Mn-profit cuporation, on behalf of said non-profit corporation. LISA BUXTON Notary IDi 83=H Ml►� 6�eeQ��r�4 After recording, return to: Lubbock Power & Light Attn: Blair McGinnis 1314 Ave. K, 5th Floor Lubbock, Texas 79401 i�'otaryy Public, State of Texas My commission expires: ,Z- 2, A� EXHIBIT "A" surveyed on the ground. Boundary Survey of a 0.6790 Acre Portion of August 13. 2021 Block 36 Revised January 2, 2022 to correct recording information for Wheelock's 2nd Addition plot. Coronado Addition \ and a portion of \ Block 71, Wheelock's 2nd Addition \ Robert A. Clristopher to the City of Lubbock Registered Professional Loth Surveyor No. 5167 Lubbock Count Licensed State Land Surveyor y, Texas State of Texas 4,6 OF TE e�oa/ e��tSp \ 110/EIITA CHNSTOME/ QAFE/8,o,GRAPHIC SCALE Pl FEET I•100' �0�12 � � ~DglrtNtot� � am aw bcw�: 7 -� 8� Aao� ON-- gos6°OgEOT c� DRY / pOiia;�A�r _ Clli • ap pi • �,p,�, 3. v�j yg' N. 05.13,cr2 W. r� 0.6790 9 578 Sq a,. Ft. 5.18' P.O.B. 69 �>F� 70 OF �4z, y B,.pDN LLI� WHEEL OCKS AD ADM.. 6.61 ��10� ' crJ aF adK i a wl avr % 1 AVCOOMINISMttt. nqT f P AC U a 47 rGD n J�v ® - FOUND 1/2" I.R. w/CAP (IRA) /2 O - FOUND I" I.R. • - SET 12" I.R. w/CAP (IRA) BEARINGS RELATIVE TO GRID NORTH. TEAS COORDINATE SYSTEM OF 1983, NORTH -CENTRAL ZONE. DISTANCES ARE SURFACE, U.S. SURVEY FEET. 20210850-IG/TRAC METES AND BOUNDS DESCRIPTION of a 0.6790 are tract being a parlion of Block 36. Coronado Addition to the City of Lubbock, according to the map, plot, ond/or dedication deed thereof recorded in Vokme 930, Page 195, Deed Records of Lubbock County, Texas (DRLCT), and a portion of Block 71. Wheelock's Second Addilion to the City of Lubbock, according to the map, plat, and/or dedication deed thereof recorded in Vol rrle 26. Page 46. DRLCT, said 0.6790 acre tract being further described as follows: BEGINNING of a 12" iron rod with cap marked "HUGO REED Assoc' found In the South line of and Black 36. Cormodo Addition, at the Southeast caner of that 0.93 we tract described in Vol me 1417. Page 475. DRLCT, fa m the Southwest carrier of this tract which bears N. 69"4eW E. a distance of 375.00 feel frorn the original Southwest tamer of sand Black 36; THENCE N. 20"13'37" E.. along the East line of said 0.93 we tract is distance of 200.05 feet to a 12" Iran rod found in the South right-of-way line of Coronado Drive, at the Northeast coma of said 0.93 we tract and the Northwest caner of this hat; THENCE S. 69"46'30" E.. along the South line of mid Coronado Drive a distance of 174.04 feet to a 12" ran rod with cap stamped "HUGO REED Assoc" set for the Northeast caner of this tract; THENCE S. 20"13'37' W. a distance of 134.35 feet to a 12"'son rod with cop naked "HUGO REED ASSOC' set la the most Emferly Southeast comer of this tract; THENCE S. 87e5743" W.. at 173.29 feel, pass the South line of said Black 36. continuing far a total distance of 186.61 feet to a 1/2" eon rod with cap marked'iA1G0 REED ASSOC' set la the most Southerly Southwest caner of this troct; THENCE N. 05.13'20" E. a distance of 5.18 feet to the Point of Beginning. No obshoct of file a rise cornnetn ent woo poaided to IN, surseyor. Recall 1-11 done by Mb avaeya wua node onh for Me prWae of Oefermiuq. bardvy of INa Papery And of la odkans4 porceb. Record doarnents other than lee shown an this --ey rroy eaht and er ber Ihb property. COPYRIGHT 2022 HUGO REED d ASSOCIATES, INC. HUGO REED AND ASSOCIATES, INC. LAND SURVEYORS 1601 AVENUE N CIVIL ENGINEERS LUBBOCK, TEXAS 79,101 irzaa uca,seosuwervgira soanea0 PHONE: 806/76a.36e2 rxwn reaanMaea a"avrFAe+e muv FAK:809/763-3891 - FILED AND RECORDED OFFICIAL PUBLIC RECORDS OF p OFL� Kelly Pinion, County Clerk Lubbock County, TEXAS 02/28/2022 02:00 PM Recording Fee: $38.00 2022009684