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HomeMy WebLinkAboutResolution - 4346 - Option Contract & Memo Of Option - Medlock Farm - 640 Acres - 12_16_1993Resolution No. 4346 December 16, 1993 Item #14 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Option Contract and Memorandum of Option for the Medlock Farm, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 16 th day of December , 1993 . Randy Neugebauer, Mayor Pro Tem ATTEST: tty WJohng6W, City Secretary APPROVED AS TO CONTENT: Ed Bucy, Right-of-WayrAgent APPROVED AS TO FORM: arold Willard- Assistant City Attorney HW:da/ccdocs/C-MEDLCK.res rev. November 30, 1993 Resolution No. 4346 December 16, 1993 Item #14 THE STATE OF TEXAS § AN OPTION CONTRACT COUNTY OF LUBBOCK § This Agreement is made and entered into and executed as of this 16th day of December , 19 93, by and between the CITY OF LUBBOCK, TEXAS, hereinafter referred to as "BUYER," and W. E. MEDLOCK, JR. and his wife, KAYE PARKS MEDLOCK, of Lubbock, Texas, hereinafter referred to as "SELLERS." Wedlock Farm). WITNESSETH: WHEREAS, SELLERS own certain real property situated in Lubbock County, Texas, and hereinafter described; and WHEREAS, BUYER desires to obtain from SELLERS an option to purchase such real property; NOW THEREFORE: For and in consideration of the payment of the sum of ONE HUNDRED NINETY-TWO THOUSAND AND NO/100 DOLLARS ($192,000.00) by BUYER to SELLERS, the receipt whereof is hereby acknowledged, the parties agree as follows: GRANT OF OPTION SELLERS irrevocably grant to BUYER an exclusive four-year option to purchase, at BUYER'S option, the real property owned by SELLERS and described as follows: All of Section 1, Block CK, Abstract No. 617, GC & SF Ry. Co. Survey, Lubbock County, Texas, containing approximately 640 acres more or less. TERM AND EXTENDED TERM OF OPTION This option shall continue in effect until noon on the 1,460th day following the date of execution of this Agreement and may be exercised in accordance herewith at any time on or before its expiration. FAILURE TO EXERCISE OPTION If, prior to noon on the 1,460th day following the date of execution of this Agreement, BUYER does not exercise this option, the SELLERS shall retain the option money ---a total of ONE HUNDRED NINETY-TWO THOUSAND AND NO/100 DOLLARS ($192,000.00) --- as the consideration for this option being in effect until noon on the 1460th day following the date of execution of this Agreement. IV. EXERCISE OF OPTION This option may be exercised at any time during the aforesaid periods by written notice to SELLERS delivered in person or by certified mail, return receipt requested. V. PURCHASE PRICE In the event BUYER elects to exercise this option and purchase the property herein described, the purchase price shall be ONE THOUSAND THREE HUNDRED AND NO/100 DOLLARS ($1,300.00) per acre payable as follows: (a) The sum or sums paid for this option either in cash, or with property, or both, shall be paid to SELLERS and shall be credited against the purchase price; and AN OPTION CONTRACT--W. E. MEDLOCK - Page 2 (b) The balance of the purchase price shall be paid at closing, in cash, or with property, or both. (c) At the option of SELLERS, BUYER will participate in an E 1031 Exchange (provided that BUYER shall not be required to incur any costs in excess of those BUYER would incur if BUYER paid all cash for the property herein described). VI. CLOSING DATE Unless otherwise agreed, the purchase of the property herein described shall be closed by SELLERS and BUYER within ninety (90) days after receipt of written notice of the exercise of this option. M DEED AND TITLE INSURANCE A. If the BUYER exercises this option, the SELLERS shall convey title to the real property to the BUYER or the BUYER's nominee or assignee by good and sufficient General Warranty Deed warranting such title to be free and clear of all liens, charges and encumbrances, clouds and defects whatsoever, except for mineral reservations (if any) made in favor of SELLERS' predecessors in title, and easements of record in Lubbock County, Texas. B. BUYER shall obtain, at its own election and expense, an Owner's Policy of Title Insurance issued by Service Title Company of Lubbock, Texas, and tax certificates showing no delinquent taxes. (Taxes payable for the year in which closing occurs shall be prorated between SELLERS and BUYER to the date of closing in the event BUYER exercises this option to purchase the property.) Said Owner's Policy and Title Insurance shall be obtained prior to when the sale is closed. Said closing date may be extended if attorneys for the title company discover objections to the title, in which case the sale shall be closed when such AN OPTION CONTRACT--W. E. MEDLOCK - Page 3 objections are removed, provided the objections are removed within a reasonable time, which in no event shall extend beyond thirty (30) days from the original closing date. Vill. POSSESSION SELLERS shall deliver possession of the property herein described to BUYER as of the date of closing, or on completion of harvest, if harvest occurs after closing, subject to the provisions contained in paragraph XI of this Agreement. VA MINERALS The conveyance herein contemplated shall include the oil, gas and other minerals owned by SELLERS and which are in, on, under or produced from such land. ►0 IMPROVEMENTS SELLERS shall have the right to remove any and all personal property, including but not limited to, pumps, water pipe, equipment and the like from the property herein described, which removal shall occur on or before closing. Anything normally characterized as part of the real estate, such as dwellings, barns, houses and structures shall not be removed by SELLERS, but shall be and remain with the land and become the property of BUYER at closing. AN OPTION CONTRACT--W. E. MEDLOCK - Page 4 XI. CROPS The property which BUYER has the option to purchase under this Agreement is under the United States Department of Agriculture A.S.C.S. Conservation Reserve Program (CRP) and will remain in the program until October 1, 1998. All remaining CRP government payments will be the property of SELLERS until BUYER exercises the option herein granted, at which time they will become property of BUYER. XII. SURVEY In the event, and only in the event, it becomes necessary that a survey be made of the property which BUYER has the option to purchase under this Agreement, BUYER shall pay all surveying costs and expenses incurred. SELLERS shall have no responsibility for the payment thereof. Such survey shall be performed by a surveyor licensed by the State of Texas, and shall contain written certification of the number of acres to be conveyed. If a survey is made, the total purchase price shall be determined by multiplying the number of acres certified by the purchase price per acre. XIII. ENVIRONMENTAL AND OTHER STUDIES In the event BUYER deems its necessary, it may, at its sole option and expense, order any environmental, ground water (geotechnical), historical, cultural or archaelogical assessment studies of the property. Such studies might include the drilling of water monitor wells, soil core sampling, picture taking, record researching and surface examination. AN OPTION CONTRACT--W. E. MEDLOCK - Page 5 XIV. DEFAULT In the event SELLERS should fail or refuse to carry out and consummate this Agreement for any reason, then BUYER may enforce this Agreement by an action for specific performance or, at BUYER'S option, SELLERS shall refund to BUYER any sums hereunder paid by BUYER to SELLERS. It is agreed that if the title to the property herein described is unmarketable and cannot be rendered marketable by the exercise of due diligence within the period of time set out herein, and BUYER does not waive the obstacles to marketability, then this transaction shall be terminated and the funds deposited with SELLERS shall be returned to BUYER, together with interest at the rate in effect for U.S. Treasury bills on the date of termination. XV. BENEFIT This Agreement shall be binding upon and inure to the benefit of the BUYER and the SELLERS and their respective heirs, successors and assigns. KHM NOTICES Any notice which may be or is required to be given pursuant to the provisions of this Agreement shall be sent as herein stated to the address of the party shown beneath that party's signature to this Agreement. AN OPTION CONTRACT--W. E. MEDLOCK - Page 6 ATM A MULTIPLE COPIES This Agreement may be signed in one or more identical counterpart copies, any of which when signed by both parties hereto shall constitute a fully binding contract with respect to such parties. IN WITNESS WHEREOF, the parties have hereto signed this Agreement as of the date first stated herein. W. E. MEDLOCK, JR. ADDRESS: P.O. Box 5117 Lubbock, Texas 79417 CITY OF LUBBOCK: BY: R4�—� DAVID R. L STON, M YOR Randy Neugebauer, Mayor Pro Tem ADDRESS: P.O. Box 2000 1625 13th Street Lubbock, Texas 79457 ATTEST: &q'— )-'� Betty M. Johns" City Secretary APPROVED AS TO CONTENT: Ed Bucy, Right-of-Waf Agent SELLE . KAYE PARKS MEDLOCK f 11111ri-" APPROVED AS TO FORM: arold Willard, Assistant ity Attorney AN OPTION CONTRACT--W. E. MEDLOCK - Page 7 THE STATE OF TEXAS § COUNTY OF LUBBOCK § fin �oZ Psa Ie,, � BEFORE ME, the undersigned authority, a Notary Public for said State, on this day personally appeared DAVID R. LANGSTON, MAYOR, 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 and in the capacity therein stated as the act and deed of the CITY OF LUBBOCK. EN UNDER MY HAND AND SEAL OF OFFICE this 61—h day of I)ece�u.bee- , 19g3. --------- - I IFAflMZ M. WON= • Avflow $$" THE STATE OF TEXAS § COUNTY OF LUBBOCK § otary Public in and f the State of Texas BEFORE ME, the undersigned authority, a Notary Public for said County, Texas, on this day personally appeared W. E. MEDLOCK, JR. and KAYE PARKS MEDLOCK, known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAAWD AND SEAL OF OFFICE this ��� day of atLA- , 19 `d. ROBE" A- BRAMOT Naary Yubl� ;p�q of i My Commissron Eq S 22 96 4. w�AYRy.-�'yf.-tlepp H W:da/1-D 10/A-MEDLCK.doc rev. November 30, 1993 Notary Public in and for the State of Texas AN OPTION CONTRACT--W. E. MEDLOCK - Page 8 (144.40 E Aucy R-C-W MEMORANDUM OF OPTION STATE OF TEXAS COUNTY OF LUBBOCK Resolution No. 4346 December 16, 1993 Item #14 This Memorandum of Option is executed concurrently with an Option Contract, and both this Memorandum and the Option Contract constitute an agreement between W. E. MEDLOCK, JR. and his wife, KAYE PARKS MEDLOCK, jointly referred to herein as Optionors, and the City of Lubbock, Texas, a home rule municipality, referred to herein as Optionee, concerning the following real property situated in Lubbock County, Texas: All of Section 1, Block CK, Abstract No. 617, GC & SF Ry. Co. Survey, Lubbock County, Texas, together with all mineral interests in, on and under said property owned by Optionors as of the date of this Memorandum. For valuable consideration described in the Option Contract, Optionors hereby grant to Optionee the exclusive right and option to buy the above described property at a price and on the terms and conditions expressed in the Option Contract. This option shall expire on the 1460th day following the date of execution of this Memorandum, and, unless exercised or extended prior to the above date of expiration, Optionee shall have no further interest in the property. Executed this 16th day of December 1993, in Lubbock County, Texas. OPTIONEE: CITY OF LUBBOCK, TEXAS Randy Neugebauer, ATTEST: APPROVED AS TO CONTENT: Ed Bucy, Right-of-W y Agent APPROVED AS TO FORM: H rold Willard, Assistan it Attorney WL 4429?AtE329 THE STATE OF TEXAS S COUNTY OF LUBBOCK § ek, Te,� BEFORE ME, the undersigned authAty, a Notary Public for said State, on this day personally appeared , 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 and in the capacity therein stated as the act and deed of the CITY OF LUBBOCK. IVEN UNDER MY HAND AND SEAL OF OFFICE this �lu�a day of , 1993. gg CAWi tart' Public in and fo he State of Texas THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public for said State, on this day personally appeared W. E. MEDLOCK, JR. and KAYE PARKS MEDLOCK, known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE thisl day of Ocuz VL , 1993. ROBERT A. BRANDT + • Ndm Pudic. -;Wb M Tot wr ., or Comm"" o s,n-" �; E1. :� 32 SEAL Notary Public in d for the State of Texas STATE OF TEXAS COI;-i`'f OF L+2;39.i K hereby ce t�N t VH Ld en? w2s FILED on the date and at t t + s rr .r.rean by me and was duly RECORDED +`tievo-.mo .. g.ge«fthrrOfficialRealProperty Records of Lu!wck County, Texas as stamped hereon by me. DEC 27 1993 COUNTY CLERK LUBBOCK COUNTY, TEXAS MEMORANDUM OF OPTION--W. E. MEDLOCK, JR. -- Page 2