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HomeMy WebLinkAboutResolution - 2020-R0074 - URA Sale Of Land - 2132 Cornell Street - 02/25/2020 Resolution No. 2020-R0074 Item No. 7.18 February 25, 2020 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council does hereby approve the price and conditions of sale for the Contract of Sale of Land by the Urban Renewal Agency of the City of Lubbock to Pete & Inez Castro for that certain parcel of land locates, at 2132 Cornell Street, and legally described as Lot Fifteen (15), Block Four (4), Jones Robert Addition to the City of Lubbock, Lubbock County, Texas. Said Contract of Sale of Land is attached hereto and incorporated in this resolution as if filly set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on Fehruni:i 75, 70?n DANIEL M. POPE, MAYOR ATTEST: Rebe ca Garza, City Sec i tary !� APPROVED AS TO CONTENT: -KNIIIA- Karen Murfee, Community Development Director APPROVED AS TO FORM: Kel i Leisure, Assistant City _Attorney ecdocs/RES.Adoption—Urban Renewal Agency—Contract f'or Sale of Land—Castro 02.05.20 Resolution No. 2020-R0074 CONTRACT FOR SALE OF LAND AGREEMENT, made on or as of the 11th day of October, 2019, by and between the URBAN RENEWAL AGENCY OF THE CITY OF LUBBOCK, a public body corporate (which,together with any successor public body or officer hereafter designated by or pursuant to law, is hereinafter called "Seller"), having its office at 1708 Crickets Ave. in the City of Lubbock (hereinafter called "City"), State of Texas, and Pete & Inez Castro (hereinafter called "Purchaser's") residing at 2130 Cornell Street,Lubbock Texas, WITNESSETH: WHEREAS,in furtherance of the objectives of the Texas Urban Renewal Law, Local Government Code Title 12, Subtitle A, Chapter 374, the Seller is carrying out an Urban Renewal Project and has offered to sell and the Purchaser's is willing to purchase certain real property located in the Project area as described in Section I, and to redevelop or rehabilitate the Property for an in accordance with the uses specified in the Urban Renewal Plan. NOW, THEREFORE, in consideration of the premises and the mutual obligation of the parties hereto, each of them does hereby covenant and agree as follows: 1. DESCRIPTION OF PROPERTY a. All that certain parcel or parcels of land located in the City of Lubbock, County of Lubbock, State of Texas, more particularly described as follows: 2132 Cornell Street, Lubbock,Texas legally described as Lot Fifteen (15),Block Four (4),Jones Robert Addition to the City of Lubbock,Lubbock County, Texas II. SALE/ PURCHASE PRICE a. Subject to all the terms, covenants, and conditions of this Agreement, the Seller will sell the Property to the Purchaser's for One Hundred and/00 dollars ($100.00), hereinafter called "Purchase Price", to be paid in cash, by certified check, or by such check as shall be satisfactory to the Seller. III. CONVEYANCE OF PROPERTY a. Form of Deed: The Seller shall convey to the Purchaser's Title to the property by general Warranty Deed. The conveyance and title shall, in addition to all other conditions. b. Time and Place for Delivery of Deed: The Seller shall deliver the Deed and possession of the Property to the Purchaser on , or on such date as the parties mutually agree, at the office of Community Development 1708 Crickets Ave., Lubbock TX 79401 c. Recordation of Deed: The Seller shall promptly file the Deed for recordation in the Lubbock County Deed Records, Lubbock County Clerk Office. d. Title: The Seller will furnish an owner's title policy or a mortgagee title policy binder on an interim construction loan to the Property and will convey good and merchantable title free and clear of any encumbrances except those named herein. Only a warranty deed and tax certificates(s) shall be furnished by the Seller to the Purchase in the conveyance of an uneconomic remnant lot or to a non-profit organization biding ten percent (10%) of the minimum set price. The Seller will not pay any closing costs. IV. GOOD FAITH DEPOSIT The Purchaser's has, prior to the execution of this agreement, delivered to the Seller a good faith deposit satisfactory to the Seller in the amount of$10.00, hereinafter called the "Deposit", The Deposit shall be handled as follows: a. In the case of a single one-family dwelling redevelopment or other development of like magnitude, the Deposit will be applied as a part of the purchase Price, if at the time of conveyance, the Purchaser's has entered into a satisfactory contract for the construction of the improvements, as defined and set forth in Section 5. b. In the case of all other developments of greater magnitude, the Deposit will be applied as part of the Purchase Price or will be returned to the Purchaser's if the Purchaser's has submitted to the Seller the following: i. Copy, certified by the Purchaser's to be true and correct, of the commitment or commitments obtained by the Purchaser's for the mortgage loans or loan to assist in the financing of the construction of the improvements. ii. Evidence satisfactory to the Seller that the interim mortgage loan to assist in financing the construction of the improvements has been initially closed; and a V. SITE PREPARATION AND CERTAIN OTHER ACTION BY SELLER a. The vacating of present streets, alleys, other public rights-of-way, and plats, and the dedication of new streets, alleys, and other public rights-of-way, in the Project Area, and the re-zoning of such Area, in accordance with the Urban Renewal Plan costs will be borne by the Purchaser's. Purchaser's agrees that upon request to join with the Seller in any petitions and proceedings required for such vacations, dedications and re-zoning. b. It shall be the sole responsibility of the Purchaser's to bear the costs for application(s) to change the zoning to accommodate the proposed development,sewer taps,water meters,curb cuts,repairs, or other related costs. The Seller or the City of Lubbock will not be responsible for any of these costs under any circumstances. VI. CONSTRUCTION OR OF IMPROVEMENTS, PLAN OR WORK WRITE-UP, AND EVIDENCE OF FINANCING a. The Purchaser's will redevelop the Property by adding on to adjoining property. The Purchaser'splans and specifications or rehabilitation work write-ups for the redevelopment or rehabilitation of the Property shall be in conformity with the Urban Renewal Plan,this Agreement, and all applicable State and local Laws and regulations. As promptly as possible after the date of this Agreement, the Purchaser's shall submit to the Seller for the Seller's approval a plan for the construction of the improvements or a rehabilitation work write-up. If rejected, the Purchaser's shall submit a new or corrected construction plan or rehabilitation work write-up,which conforms to the Seller's requirements by the date stated in the written notice of rejection. Pete & Inez Castro —2132 Cornell Street 2 b. The Purchaser's shall submit to the Seller, evidence as to equity capital and any commitment necessary for mortgage financing after approval of the construction plans or work write-up by the Seller. The submission of evidence of necessary equity capital and mortgage financing commitment by the Purchaser's are conditions precedent to the Seller's obligation to convey the Property to the Purchaser's. VII. RESTRICTION ON USE a. The Purchaser's agrees for itself, its successors and assigns, shall comply with the terms of the deed's covenants: i. Devote the Property only to and in accordance with the uses specified in the Urban Renewal Plan; and ii. Not discriminate upon the basis of race, color, creed, disability, familial status or national origin in the sale, lease, or rental or in the use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof. VIII. COVENANTS: BINDING UPON SUCCESSORS IN INTEREST; PERIOD OF DURATION a. The Deed shall provide that the covenants provided in Sections 7, 9, 11 and 12 shall be covenants running with the land binding to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Seller, its successors and assigns, the City, and any successor in interest to the Property, and the United States (in the case of the covenant provided in Section 9 (b) against the Purchaser's, its successors and assigns, and every successor in interest to the Property, and any party in possession or occupancy of the Property. It is further intended and agreed that the covenant provided in Section 9 (a) shall remain in effect from the date of the Deed until the period of time referred to in the Urban Renewal Plan, or until such date is thereafter extended by proper amendment of the Urban Renewal Plan. The covenant provided in subsection (b) of Section 9 shall remain in effect without limitation as to time. The term "uses specified in the Urban Renewal Plan" and "land use" referring to provisions of the Urban Renewal Plan, or similar language, in this Agreement shall include the land and all building, housing, and other requirements or restrictions of the Urban Renewal Plan pertaining to such land. IX. PROHIBITION AGAINST TRASFER OF PROPERTY a. The Purchaser's has not made or created, and (except as permitted by Section 12) will not, prior to the completion of the improvements, make or suffer to be made any sale, assignment, conveyance, lease, or transfer the Property without the prior written approval of the Seller. b. A transfer of stock in the Purchaser's of ten percent or more, or any other significant change or distribution in the ownership of such stock or with respect to the parties in control of the Purchaser's, whether by increased capitalization, merger with another corporation, corporate or other amendments, shall be deemed an assignment or conveyance of the Property. The Purchaser's and the parties signing this Agreement on behalf of the Purchaser's represent that they have the authority of all of its existing stockholders to agree to this provision on their behalf and to bind them thereto. "Stock in the Purchaser's" means and includes any proprietary interest, susceptible of division or distribution among more than one person, constituting total or partial ownership in or of the Purchaser's. "Stockholder" means any holder of such proprietary interest. Pete & Inez Castro —2132 Cornell Street 3 c. The Purchaser's agrees that during the period between execution of this Agreement and the completion of the improvements,(a) the Purchaser's will promptly notify the Seller of any changes in the ownership of stock, and (b) the Purchaser's shall furnish the Seller with a complete statement, subscribed and sworn to by the president or other executive officer, setting forth all of the names of stockholders of the Purchaser's and the extent of their respective holdings. X. LIMITATION UPON ENCUMBRANCE OF PROPERTY a. Prior to the completion of the improvements, neither the Purchaser's nor any successor in interest to the Property shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Property, except for the purposes of obtaining funds only to the extent necessary for making the improvements. Until completion, the Purchaser's shall notify the Seller in advance of any financing, secured by mortgage or other similar lien instrument it proposes to enter into, and of any encumbrance or lien that has been created or attached to the Property. XI. MORTGAGEES NOT OBLIGATED TO CONSTRUCT a. The holder of any mortgage authorized by this Agreement (including any holder who obtains title to the Property as a result of foreclosure proceedings or any other party who thereafter obtains title to the Property from or through such holder) shall not be obligated to construct or complete the improvements.Nothing in this Agreement shall permit such holder to devote the Property to,other than those uses or improvements permitted in the Urban Renewal Plan and this Agreement. XII. ENFORCED DELAY IN PERFORMANCE a. Neither the Seller nor the Purchaser's, nor any successor in interest, shall be considered in breach of, or default in, its obligations with respect to the preparation of the Property for redevelopment, or the commencement and completion of the improvements, in the event of enforced delay in the performance due to unforeseeable causes beyond its control. The time for the performance shall be extended, if the party seeking the extension requests it in writing to the other party within ten (10) days after the beginning of the enforced delay. XIII. REMEDIES a. In General. In the event of any default or breach of the Agreement, or any of its terms or conditions, by either party, or any successor, such party (or successor) shall, upon written notice from the other, proceed immediately to cure or remedy such default or breach, within sixty (60) days after receipt of such notice. In case the default or breach is not cured or remedied within a sixty (60) days, the aggrieved party may institute such proceedings as may be necessary to cure and remedy such default or breach, to compel specific performance by the party in default or breach of its obligations. b. Prior to Conveyance. If,prior to the conveyance, the Purchaser's assigns or attempts to assign this Agreement or fails to pay the Purchase Price and take title to the Property under tender of conveyance by the Seller, then this Agreement and any rights of the Purchaser's in this Agreement may be terminated by the Seller and the Deposit retained by the Seller as liquidated damages. In the event that the Seller does not tender conveyance or possession of the Property as provided in this Agreement or the Purchaser's furnishes evidence satisfactorily to the Seller by time of closing if applicable and that it has been unable after diligent effort to obtain mortgage financing for the Pete & Inez Castro—2132 Cornell Street 4 construction or rehabilitation of the improvements, then this Agreement shall at the option of the Seller be terminated and the Deposit returned to the Purchaser's. c. Revesting Title in Agency upon Happening of Event Subsequent to Conveyance to Redeveloper. In the event subsequent to conveyance of the Property to the Purchaser's, and prior to completion of construction or rehabilitation of the improvements, the Seller shall have the right to re-enter and take possession of the Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Purchaser's if any of the following occurs: i. The Purchaser's (or successor in interest) shall default or violate its obligations or shall abandon or suspend the construction or rehabilitation of the improvements, and any such default, violation, abandonment, or suspension is not remedied within six (6) months after written demand by the seller; or ii. The Purchaser's (or successor in interest) shall fail to pay real estate taxes or assessments on the Property when due, or shall place any encumbrance or lien unauthorized by this Agreement, or shall suffer any levy or attachment to be made, or any materialmen's or mechanics' lien, the Purchaser's shall make provision satisfactory to the Seller for such payment,removal,or discharge,within ninety(90)days after written demand by the Seller; or iii. There is any transfer of the Property, and such violation shall not be cured within sixty(60) days after written demand by the Seller to the Purchaser's. The Deed shall contain, a condition that in the event of any default, failure, violation, by the Purchaser's (specified in subdivisions (a), (b)and(c)of this Section 15),to remedy such default, failure,violation,the Seller may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed by the Deed to the Purchaser's, and that such title and all rights and interests of the Purchaser's, and any assigns or successors, shall revert to the Seller: Provided, that Seller shall always be subject to, (a) the lien of any mortgage authorized by this Agreement, and (b) any right or interest provided in the Agreement for the protection of the holder of such mortgage. In addition, the Seller shall also have the right to retain the Deposit as liquidated damages. d. Other Rights and Remedies of Agency; No Waiver by Delay. The Seller shall have the right to institute such proceedings for effectuating the purpose of this Section 15, including the right to execute and record or files among the public land records in the office in which the Deed is recorded a written declaration of the termination of all the right, title, and interest of the Purchaser's, and (subject to such mortgage liens and leasehold interests as provided in this Section 15 hereof), its successors in interest and assigns, in the property, and the revesting of title in the Seller: Provided that any delay by the Seller in instituting or prosecuting any such proceedings shall not operate as a waiver of such rights or to limit its rights in any way. XIV. RESALE OF REACQUIRED PROPERTY: DISPOSITION OF PROCEEDS Upon the revesting in the Seller of title to the Property as provided in subdivision D of Section 15, the Seller shall use its best efforts to resell the Property(subject to such mortgage liens and leasehold interests as in Section 15) as soon as the Seller shall find to a qualified and responsible party or parties (as determined by the Seller) who will assume the obligation of making or completing the construction or rehabilitation of the improvements satisfactory to the Seller. Upon such resale of the Property, the proceeds shall be applied: Pete & Inez Castro—2132 Cornell Street 5 a. First,to reimburse the Seller, on its own behalf or on behalf of the City, for all costs and expenses incurred by the Seller, including, but not limited to, salaries of personnel in connection with the recapture, management, and resale of the Property (but less any income derived by the Seller from the Property); all taxes, assessments, and water and sewer charges thereof at the time of revesting of title in the Seller or to prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Purchaser's, its successors or transferees; any expenditures made or obligations incurred; and any other amounts owing the Seller by the Purchaser's and its successor or transferee; and b. Second, to reimburse the Purchaser's, its successor or transferee,up to the amount equal to (1)the sum of the purchase price paid by it for the Property (or allocable to the part thereof) and the cash actually invested by it in performing any construction or rehabilitation of the improvements on the Property, less (2) any gains or income withdrawn or made on the Property. c. Any balance remaining after such reimbursements shall be retained by the Seller as its property. XV. CONFLICT OF INTEREST: SELLER'S REPRESENTATIVES NOT INDIVIDUALLY LIABLE No member, official, or employee of the seller shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his personal interests, directly or indirectly. No member, official, or employee of the Seller shall be personally liable to the Purchaser's or any successor in interest, in the event of any default or breach by the Seller or for any amount which may become due to the Purchaser's or successor or on any obligation under the terms of this Agreement. XVI. PROVISIONS NOT MERGED WITH DEED No provision of this Agreement shall be merged by any subsequent deed transferring, and any such deed shall not affect the provisions and covenants of this Agreement. XVII. SPECIAL PROVISIONS a. This Agreement is subject to the approval of the City Council, City of Lubbock, Texas, in accordance to Sec. 374.017 (g) of the local Government Code. If such approval is not obtained,then this contract for sale shall be null and void and have no further force between the parties hereto. b. This Agreement is subject to the "Time Limits On Contractual Agreements to Purchase Policy on Land Disposition for Urban Renewal Agency Parcels" approved and adopted by the Urban Renewal Board of Commissioners on September 18,2007. c. This Agreement is subject to any required approval and or revisions zone changes or variance, if any, by the Planning and Zoning commission (P & Z), City Council and or the Zoning Board of Adjustment (ZBA) prior to conveyance. If such approval or revisions are not approved or obtained, then the Purchaser's may request the cancellation of this agreement. XVIII. COUNTERPARTS This Agreement is executed in one counterpart, each of which shall constitute one and the same instruments. Pete & Inez Castro—2132 Cornell Street 6 IN WITNESS WHEREOF, the Seller has caused this Agreement to be duly executed in its name and behalf by its Chairman and/or Vice-Chairman and its seal to be hereunto duly affixed and attested by its Secretary and or Acting Secretary, and the Purchaser's has signed and sealed the same on or as of the day and year first above written. URBAN RENEWAL AGENCY OF THE CITY OF LUBBOCK, TEXAS BY: `-- -7 F - tewart T wnsen,Chair ATTEST: ustie Delashaw,Acting Secretary Pete Castro, Purchaser's IneZItastro, Purchaser's Karen Murfee, Trustee Pete & Inez Castro —2132 Cornell Street 7