Loading...
HomeMy WebLinkAboutResolution - 120660A - Lease Contract - Lynnmark Investment Co - Sections 17 & 18, Block D5 - 12_06_1960 FO :wg RESOLUTION WHEREAS. the City of Lubbock owns approximately 1152 acres of land out of Sections 17 and 18, Block D-5, Lubbock County, Texas; and, WHEREAS, after investigation by the City Commission it has been determine that said lands are needed only for the water rights and the maintenance of certain water supply facilities; and, WHEREAS, the surface of said land except certain portions thereof which are needed for water supply facilities are nbt needed for any public purpose; and, WHEREAS, the City of Lubbock has been offered the sum of $7,500.00 cash by the Lynnmark Investment Company for a lease for one year with an option to' purchase said lands at the sum of $100.00 per acre excluding all water rights and reservations of easements for the water supply facilities owned by the City of Lubbock and used in connection with its water supply system; and, WHEREAS, after due investigation it is deemed that this is the highest price which may be secured for said land and it is further deemed advisable to lease said land to the Lynnmark Investment Company for the stated sum of $7,500,00 together with an option to purchase said land; NOW THEREFORE: BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: THAT the City of Lubbock enter into a Lease Contract with the Lynnmark Investment Company, a Texas Corporation, to lease that certain approximate 1152 acres of land out of Sections 17 and 18, Block D-5, Lubbock County, Texas, wth an option to purchase said land exclusive of the water rights and easements to be retained by the City of Lubbock in accordance with the terms of that agree- ment attached hereto. Be it further resolved that the Mayor of the City of Lubboc be and he is hereby authorized and instructed to execute said Lease Contract and option to purchase for and on behalf of the City of Lubbock and that the City Secretary be and is hereby instructed to attest the execution of same by affixing the seal of the City of Lubbock thereto. Passed by the Commission this 6th day of December 1960. AVID G, _GASRY, yor ATTEST- Form rawCL� oa� :Z- a ar Cit Aftomey Lvem oe,-City crety-Treasurer- r r PROPOSAL to HONORABLE MAYOR and CITY COMMISSION Lubbock, Texas I, Howard G. Preston, would be glad to lease the 1152 acres of land in sections 17 and 18, Block D5, west of Shallowater under the following terms: . 1. I agree to pay $3,200.00 cash lease for the Calendar year 1961. 2. I agree to farm the place in a workman like manner, and to clean it up as far as reasonably possible. I would try to have it in much better shape to sell next fall than it is now. 3. In the event the State Highway Department purchased right-of-way on the north side, I would release possession of the necessary land, expecting of course, to be reimbursed for reasonable damages to growing crops if any. 4. If the Commission should decide to sell the place later in the year for possession January 1, 1962, I would expect to be notified of same and to have a fair and equal chance with any an o r bidders. v REMARK In regard to my financial affairs, I would be glad for you to contact Mr. Lee York, Mr. Ronald Duncan, or Mr. David Bates at First National Bank, Lubbock. I have done business with them for the past 10 or 12 years. At present I am a director in the Co-op Gin here, a director in our newly organized bank, and was a member of our local School Board for 10 years. I would be glad to meet with the Commission and discuss any question or other matters in regard to this lease. I have been farming on the Plains for the past forty years and believe that I can satisfactorily handle the farm for you. i ht.rG?�'C 1 1 STATE OF TEXAS Vdr LEASE AND SALES OPTION CONTRACT COUNTY OF LUBBOCK - �� This contract is made and entered by and between the CITY OF LUBBOCK, LL a municipal corporation, acting herein pursuant to appropriate resolution of the City Commission of the City of Lubbock, Texas, hereinafter called owner, and rj ?. LYNNMARK INVESTMENT CO. , a Texas corporation, hereinafter called tenant, f WITNESSETH: jOwner leases and lets to tenant, who hereby accepts, for the year 1961, and subject to the terms and conditions hereinafter set out, the following land situated in Lubbock County, Texas, towit: That certain approximate 1152 acres of land out of Sections 17 and 18, Block D;5, Lubbock County, Texas, belonging to the City of Lubbock, Lubbock County, Texas, and being the only land owned by said City of Lubbock in said Sections. 1. The consideration for the lease herein provided, and for the option as hereinafter stated, is the sum of $7500.00 all cash, paid herewith, the receipt of which is hereby acknowledged by owner. 2. The lease and option to buy is subject to the right of ingress and egress of the City of Lubbock to operate, maintain, and/or reconstruct any por- tion or all of its water supply facilities in and upon said land, including but not limited to electric supply lines. 3. The premises are leased and let for agricultural purposes for the year 1961, and whatever 1961 U. S. Agricultural Dept. cotton allotment is assigned to the land shall be available to the tenant, which the City of Lubbock believes to be not less than 201. 2 acres of cotton acreage allotment. 4. At the end of the lease the premises shall be returned to the City in as good condition,as received, and with good farmerlike practices occurring relative to the preservation of said lands for agricultural purposes. -1- 5. The City expressly having reserved the rights hereinabove men- tioned relative to ingress and egress and the operation, maintenance, and recon- struction of its water sujipiy facilities, tenant agrees that during the period of the lease it expressly releases, disclaims, and shall have no claim for damages of any kind by virtue of any such appropriate acts of the City during the period of the lease upon any portions of said land. 6. The option to buy said lands is hereby given and granted upon the terms and conditions hereinafter stated. This option to purchase by tenant, is exercisableby the giving to the owner of notice in writing on or before September 1, 1961 , of the exercise of the option to purchase hereunder. Upon the exercise of such option, this contract shall become binding upon both parties, as a contract of sale, upon the following terms and conditions: (a) Owner agrees to sell and convey and the buyer agrees to buy, upon the terms and conditions herein stated, the lands hereinabove described, but excepting therefrom: The lands under fence in the Southeast corner and in the Northeast corner of the land adjoining the right of way.as designated and descr},�ed on Engineering Department Plat dated August 6, 1953. File No. 3D-75. k 0 ,' , (b) The consideration for the sale is $100.00 per acre, properly calculated from the City's survey now existing or from survey herein- after to be made. Tenant is privileged, at its expense, to cause a survey to be made of the premises, showing the exact acreage covered by the contract herein. In the event of disagreement as to exact acreage, the surveyor of the City and the surveyor as employed by tenant shall resolve such discrepancies into an exact acreage figure. Said consideration is to be paid and payable as follows: 25% of the total consideratim shall be paid in cash at the time of the closing of the trade, with a credit of the $7500.00 lease payment hereinabove described, to apply on such down payment. The deferred balance of the consideration is payable in five equal annual installments, with 6%u interest on unpaid balances payable annually on all unpaid amounts along and with the annual payment owing. The unpaid balance shall be payable on or before maturity and secured by a reserved vendor's lien and deed of trust lien in and upon the entire premises conveyed. -2- (c) The conveyance shall likewise be subject to the following express reservations to be made and expressed in the conveyance: (1) The City shall reserve the right of ingress and egress to operate, maintain, and/or reconstruct any portion or all of its water supply facilities, including but not limited to electric supply lines, along the easements herein provided. There shall be reserved along the existing water supp facilities of the City of Lubbock, a perpetual easement, terminable only upon the sur- render as hereinafter described, of ingress and egress to operate, maintain, and/or 'reconstruct any portion or all of its water supply facilities, including but not lim- and roads ited to electric supply linesf together with the easement for the continuance in facilities. such locations, as now located, of such iinear. Such easement may be placed inside of a public way in the future platting of the lands. (2) All mineral rights owned by the City (not less than 1/4th of the oil, gas, and other mineral estate) shall be conveyed to the tenant hereunder, but such minerals may be developed only on the terms and provisions of Ordinance No. 2939, which shall apply to this land by covenant running with the land. (3) City anticipates the necessity to use and therefore repurchase not more than ten acres of the landdometime in the future. Owner is willing on or before September 1, or within two weeks after the exercise of the option if prior to September 1, 1961, to designate approximately one-half of such ten acres that will be subject to repurchase by the City in the future. Furthermore, the remaining acreage of such ten acres that is subject to repur- chase, will be in tracts of size 40 feet by 40 feet, with one side of the tract lying along any one of the water lines now existing on the land. The City Engineering Department map dated August 6, 1953, File No. 3 D-75, is here referred to and made a part hereof, designating the location on the premises of the water lines of the City of Lubbock, for purposes of specific location of 40 foot by 40 foot tracts as may be repurchased within the ten acre total limit. As a part of the -3- Y 40 i contract, the parties agree that, in the future, the City may buy, and the tenant agrees to sell or cause to be sold, which covenant shall run with the land described, a maximum of ten acres of the land after subtracting the original designated por- tion of the ten acres, the balance of the ten acres will be in tracts of 40 feet by 40 feet, as above designated specifically. The repurchase price shall be $100. 00 per acre (or pro rata per square foot) plus 6% interest from the time of closing of the trade herein described, to the time when the separate repurchases are p by resolution Q required by the City. When the City/shall have abandoned all party of the land for water production all unexercised options of repurchase and all easements, on all water line and water facilities on locations thereby abandoned shall termi- but a sale Lof.any.iiart.'or.,411,�oftthe Watei sightatby owner shall not constitute an abandonmer nate, I The easements and option to purchase shall not terminate partially but only when water production is wholly abandoned on all of the land. The City may remove its water lines or may, at its option, convert the same into water distri- bution use, for which purposes an easement shall continue in favor of the City. (4) There shall be expressly reserved and retained by the City of Lubbock, all water rights under the land herein described, except that the tenant, its successors and assigns, may use water for domestic purposes of not to exceed five domestic wells for each forty acres, with the maximum capacity of each well being ten gallons per minute and not more than twenty-eight such wells in the entire tract; the City of Lubbock further agrees, however, to sell water for domestic and industrial consumption in and upon any portion of the tract herein described at not more than the ordinance water rates in effect in the City of Lubbock at the time. The deliveries of such water withi �. the the area shall be made by the City of Lubbock from/reservoir or points designated by the City of Lubbock, and shall be limited in the aggregate to 2,000, 000 gallons of water per day. This requirement for deliveries by the City of Lubbock of not to exceed 2,000,000 gallons of water per day will cease, at the option of the City of Lubbock, when and after the area herein sold is incorporated into any muni- cipal city corporation. The provision herein stated shall be incorporated into the deed and shall be covenants running with the land. No unde round water shall be used for irrigation on any part of this land. -4- (d) After the closing of the purchase, and without release privilege in connection with the down payment hereinabove described, the tenant, its successors and assigns, shall have release privileges upon tracts of land of a minimum size of ten acres, by contemporaneous application upon the indebt- edness then owing to the City of Lubbock, of $110.00 per acre, together with 6% interest accrued upon such principal sum of $110.00 per acre to be then applied upon the next maturing installments of the indebtedness to the City. (e) Upon the exercise of the option the owner agrees to de- liver or cause to be delivered to the tenant, a complete abstract of title covering the above described premises, showing marketable title in the City of Lubbock, subject only to the easements, reservations, and mineral interests herein described. The tenant shall have fifteen days after receipt of the abstract within which to examine the same and present objections, if any, in writing. The City agrees to cure valid objections and to deliver the premises by general warranty deed, reserving and excepting, however, the provisions in the warranty deed as hereinabove provided. The deal will be closed by January 10, 1962. �_ P R- (f) Should either party, after the exercise of the option, fail or refuse to carry out the contract for any reason except incurable title defects, either party shall have its action in specific performance or for damages. 7. This contract shall be binding upon the undersigned and upon the successors and assigns of each of the parties herein, and the contract is assign- able and performable by the successors and assigns of the parties. WITNESS OUR HANDS in triplicates originals at Lubbock, Texas, where this contract is performable, this Lj = day of December, 1960. ATTE T: THE CITY OF LUBBOCK By �c Secretar i� e u bock, Texas Mg}*or OWNE - - ATST: �--- LY RK ESTtE T CO, By IT ecretary Pres ent TENANT e_ . THE STATE OF TEXAS COUNTY OF LUBBOCK ; BEFORE ME, the undersigned authority, a Notary Public in and for Lubbock County, Texas, on this day personally appeared Ray C. Livesay, President of Lynnmark Investment Company, a Corporation, known to me to be the person whose name is subscribed to the foregoing instrument and ac- knowledged to me that he executed the same as the act and deed of Lynnmark Investment Company, a Corporation, for the purposes and consideration there- in expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this � day of 1960. (SEAL) _ Notary Public, Lubbock County, Texas THE STATE OF TEXAS COUNTY OF LUBBOCK Y BEFORE ME,, the undersigned authority, a Notary Public in and for Lubbock County, Texas, on this day personally appeared David C. Casey, known to me to be the person whose name is subscribed to the foregoing in- strument and acknowledged to me that he executed the same as the act and deed of the CITY OF LUBBOCK and as MAYOR, for the purposes and consi- deration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this�day of 1960. ISEAL) Notery Public, Lubbock County, Texas r ill.,`