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Ordinance No. 13,108ORDINANCE NO. 13,108 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN EARNEST MONEY CONTRACT WITH TEXAS CAPITAL DEVELOPMENT CORPORATION, INC., FOR THE PURCHASE OF APPROXIMATELY 118 ACRES OFF OF EVERGREEN ROAD, OUT OF TRACTS 4G AND 4H, ABSTRACT 65 OF THE WILLIAM SCOTT SURVEY, HARRIS COUNTY, TEXAS; AUTHORIZING PAYMENT OF A PURCHASE PRICE FOR SUCH PROPERTY IN AN AMOUNT NOT TO EXCEED TWO MILLION FIVE HUNDRED NINETY -SIX THOUSAND AND NO/100 DOLLARS ($2,596,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ********************************************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the City Manager to execute and the City Clerk to attest to an Earnest Money Contract with Texas Capital Development Corporation, Inc., for the purchase of approximately 118 acres off of Evergreen Road, out of Tract 4G and 4H, Abstract 65 of the William Scott Survey, Harris County, Texas. A copy of the contract is attached hereto as Exhibit "A" and is incorporated herein for all intents and purposes. Section 2: That the City Council of the City of Baytown authorizes payment of a purchase price for the property subject to the contract authorized in Section 1 hereof in an amount not to exceed TWO MILLION FIVE HUNDRED NINETY -SIX THOUSAND AND NO/ 100 DOLLARS ($2,596,000.00). Section 3: That the City Manager is hereby granted general authority to approve any change order involving a decrease or an increase in costs of FIFTY THOUSAND AND NO. 100 DOLLARS ($50,000.00) or less, provided that the amount stated in Section 2 hereof may not be increased by more than twenty-five percent (25 %) or decreased by more than twenty-five percent (25 %) without the consent of the owners to such decrease unless otherwise provided for in the contract authorized in Section 1 hereinabove. Section 4: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of Baytown this the 14th day of January, 2016. ATT r o� TICIA BRYSCH, ity Lark o �® APPROVED AS TO FORM: sb'X31 �tv0 ~�c c4,/,,.,D,6. ACID RAMIREZ, SR., Ci A orney R:\Karen\FilesiCity CounciAOrdinances\2 I1 , 141EamestMoneyContractwidiWellsHoldings .doe Council of the City of Pro Tern Exhibit "A" EARNEST MONEY CONTRACT STATE OF TEXAS § COUNTY OF HARRIS § This Earnest Money Contract (this "Agreement ") is made and entered into this _ day of , 2016, by and between the CITY OF BAYTOWN, a municipal corporation located in Hams and Chambers Counties, Texas, hereinafter known as the "Buyer," and TEXAS CAPITAL DEVELOPMENT CORPORATION, INC., a Texas corporation, hereinafter known as the "Seller." I. IN GENERAL Subject to Article II hereof, the Seller agrees to sell and convey to Buyer and Buyer agrees to buy from Seller the property described below. II. CONTINGENCY Seller's and Buyer's obligations herein are expressly contingent upon the City Council's approval of this Agreement, an inspection report satisfactory to the Buyer, and an environmental site assessment satisfactory to the Buyer. M. PROPERTY The property subject to this Agreement is that property depicted in Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes, and all improvements thereon, hereinafter collectively referred to as the "Property." The term "Property" expressly includes (i) the cart barn, (ii) the maintenance barn, (iii) the clubhouse, (iv) the concrete cart path, (v) the exhaust hood and related fire suppression system, and (vi) the walk -in cooler and freezer, but excludes (i) any personal property that is not affixed to the real property, including furniture, kitchen and pro shop inventory, vehicles, golf carts (ii) course markers, and (iii) any mineral rights or interests for which Seller grants a surface waiver acceptable to Buyer on the Closing Date. Should Seller wish to obtain easements for utilities and stormwater conveyance, Seller shall submit a drawing of where Seller desires such easements to be located and obtain the written approval of the City Manager. Similarly, should Seller wish to retain a portion of the property for streets and sidewalks, Seller shall submit a drawing of where Seller desires such streets and sidewalks to be located and obtain the written approval of the Buyer. After approval of the location(s) of any such utilities, streets and sidewalks, Seller shall, at its expense, obtain a metes and bounds survey from a registered professional land surveyor licensed in Texas for the Buyer's use in granting the utility easement and/or deed conveying the Property and the Sales Price shall be reduced at the per acre value of the property reserved. Earnest Money Contract, Page 1 IV. SALES PRICE The sales price of the above - referenced property shall be TWENTY-TWO THOUSAND AND N01100 DOLLARS ($22,000.00) per acre, plus an additional EIGHTY THOUSAND AND NO 1100 DOLLARS ($80,000.00) hereinafter "Sales Price," which sum shall be paid in full at closing on the Property, provided, however, the sales price shall be reduced by (i) ELEVEN THOUSAND AND NO /100 ($11,000.00) per acre or portion thereof of easement conveyed to the Seller and (ii) TWENTY - TWO THOUSAND AND NO 1100 DOLLARS ($22,000.00) per acre or portion thereof for any property reserved by Seller for roadway and sidewalk purposes. V. EARNEST MONEY Buyer shall deposit ONE THOUSAND AND NO /100 DOLLARS ($1,000.00) as earnest money with Chicago Title Company, located at 407 W. Baker Road, Suite T, Baytown, TX 77521 ( "Title Company') upon execution of this Agreement by both parties. VI. TITLE POLICY AND SURVEY Seller shall obtain at Buyer's sole cost and expense an Owner Policy of Title Insurance (the "Title Policy'l issued by the Title Company in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions, among others: (1) restrictive covenants common to the platted subdivision in which the Property is located; (2) the standard printed exception for standby fees, taxes and assessments; (3) utility easements created by the dedication deed or plat of the subdivision in which the Property is located; (4) reservations or exceptions otherwise permitted by this Agreement or as may be approved by Buyer in writing; (5) the standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions or overlapping improvements; (6) the standard printed exception as to marital rights; and (7) the standard printed exception as to waters, tidelands, beaches, streams, and related matters. Within twenty (20) days after the Effective Date, Seller shall famish to Buyer a commitment for Title Insurance (the "Commitment") and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions. Seller authorizes the Title Company to mail or hand - deliver the Commitment and related documents to Buyer at Buyer's address shown below. If the Commitment is not delivered to Buyer within the specified time, the time for delivery shall be automatically extended up to fifteen (15) days. Buyer shall have ten (10) days after the receipt of the Commitment to object in writing to matters disclosed in the Commitment. Buyer may object to items (1) through (7) listed above if Buyer determines that any such item prohibits the proposed use of the Property as hereinafter described; however, Buyer may not object to existing building and zoning ordinances. Earnest Money Contract. Page 2 Buyer shall obtain a survey meeting its own criteria at Buyer's expense (the "Survey "). Within thirty (30) days after the Effective Date, Buyer may object in writing to any matter which constitutes a defect or encumbrance to title shown on the Survey. The Survey shall be made by a Registered Professional Land Surveyor acceptable to the Title Company and the Buyer. The Survey shall (a) identify the Property by metes and bounds or platted lot description; (b) show that the Survey was made and staked on the ground with the comers permanently marked; (c) set forth the dimensions and total area of the Property; (d) show the location of all improvements, highways, streets, roads, railroads, rivers, creeks or other waterways, fences, easements and rights -of -way on the Property with all easements and rights -of- way referenced to their recording information; (e) show any discrepancies or conflicts in boundaries, any visible encroachments, and any portion of the Property lying within the one hundred (100) year flood plain as shown on the current Federal Emergency Management Agency map; and (f) contain the surveyor's certificate that the survey as shown by the plat is true and correct. Utility easements created by the dedication deed and plat of the subdivision in which the Property is located shall not be a basis for objection. Buyer's failure to object under this article within the time allowed shall constitute a waiver of Buyer's right to object except that the requirements in Schedule C of the Commitment shall not be deemed to have been waived. If objections are timely made by Buyer, Seller shall have the opportunity, but not the obligation, to cure the objection within twenty (20) days after the date Seller receives them. If objections are not cured by the expiration of the twenty day cure period, then Buyer shall either waive such exceptions and close on the Property or terminate this Contract within five (5) days following the expiration of the cure period and receive back its Earnest Money. VII. CLOSING The closing of the sale shall be on or before the 29'x' day of January, 2016, or within seven (7) days after objections to title, inspection report, environmental assessment and/or survey have been cured, such date hereinafter referred to as "Closing Date." If either party fails to close this sale by the Closing Date herein specified, the non - defaulting party shall be entitled to exercise any remedies contained in Article XII hereof. At closing, Seller shall furnish tax statements or certificates showing no delinquent taxes are due and owing on the Property, and Seller shall tender a General Warranty Deed conveying good and indefeasible title showing no additional exceptions, other than those not objected to by Buyer or waived by Buyer pursuant to Article VI hereof. VIII. POSSESSION The possession of the Property, as defined in Article I, shall be delivered to Buyer at closing. Seller and its affiliates and agents shall have the right (but not the obligation) during the first sixty (60) days after the Closing Date, to: (i) remove (and access the Property to remove) the personal property, which is not included in the definition of "Property" and (ii) conduct a public auction on the Property for the purpose of liquidating the personal property not conveyed to Buyer, provided, Seller and its affiliates and agents (a) sign a release and indemnification agreement acceptable to the City Earnest Money Contract. Page 3 (b) provide certificates of insurance with coverage and limits as may be required by the Buyer's Risk Manager and including, but not limited to, a waiver of subrogation and adding the City, its officers, agents and employees as additional insureds. Personal property, allowed to be removed pursuant to this paragraph but not timely removed, shall be considered abandoned and Seller together with Hazelwood Enterprises, Inc., shall have no further rights to the same and shall become the exclusive property of the Buyer, who may keep or dispose of the same as it deems appropriate. UL SALES EXPENSES The following expenses shall be paid at or prior to closing: A. Buyer shall be responsible for the expenses associated with the environmental assessments; preparation of deed; escrow fee; and other expenses stipulated to be paid by Buyer under other provisions of this Agreement. B. Seller shall be responsible for the expenses associated with the following: releases of existing liens, including prepayment penalties and recording fees; release of Seller's loan liability; taxes assessed prior to January 1, 2016; tax statements or certificates; and other expenses stipulated to be paid by Seller under other provisions of this Agreement. X. PRORATIONS Current taxes, any rents, maintenance fees, and assessments shall be prorated through the Closing Date. If the amount of the ad valorem taxes for the year in which the sale is closed is not available on the Closing Date, proration of the taxes shall be made on the basis of the taxes assessed in the previous year. XI. CHARGES DUE TO SELLER'S CHANGE IN USE If Seller's change in use of the Property prior to the closing or denial of a special use valuation on the Property claimed by Seller results in the assessment of additional taxes for periods prior to closing, the additional taxes shall be the obligation of the Seller. Obligations imposed by this article shall survive closing. XH. DEFAULT If Buyer fails to comply with this Agreement, Buyer shall be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this Agreement and receive the Earnest Money as liquidated damages, thereby releasing both parties from this Agreement. If Seller fails to comply with this Agreement, Seller shall be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this Agreement, receive the Earnest Money, and seek such other relief as may be provided by law, thereby releasing both parties to this Agreement. Earnest Money Contract. Page 4 XIII. ESCROW The Earnest Money is deposited with Escrow Agent with the understanding that Escrow Agent is not (a) a party to this Agreement and does not have any liability for the performance or non - performance of any party to this Agreement, (b) liable for interest on the Earnest Money, or (c) liable for any loss of Earnest Money caused by the failure of a financial institution in which the Earnest Money has been deposited unless the financial institution is acting as Escrow Agent. If either party makes demand for the payment of the Earnest Money, Escrow Agent has the right to require from all parties a written release of liability of Escrow Agent for disbursement of the Earnest Money. Any refund or disbursement of Earnest Money under this Agreement shall be reduced by the amount of unpaid expenses incurred on behalf of the party receiving the Earnest Money, and Escrow Agent shall pay the same to the creditors thereto. At closing the Earnest Money shall be refunded to Buyer. Demands and notices required by this paragraph shall be in writing and delivered by hand delivery or by certified mail, return receipt requested. XIV. REPRESENTATIONS Seller represents that as of the Closing Date there will be no liens, assessments, or Uniform Commercial Code or other security interests against any of the Property which will not be satisfied out of the Sales Price, other than ad valorem taxes. If any representation in this Agreement is untrue on the Closing Date, this Agreement may be terminated by Buyer and the Earnest Money shall be refunded to Buyer. All representations contained in this Agreement shall survive the closing. XV. SALE OF INTEREST The Seller may not sell or assign all or part interest in the Property to another party or parties without the express prior written approval of the Acting City Manager of such sale or assignment, nor shall Seller assign any monies due or to become due to it hereunder without the previous consent of the Acting City Manager. It is expressly understood and agreed that this provision shall only apply to the Property as defined in Article III. XVI. NOTICES All notices required to be given hereunder shall be given in writing in person or by overnight, certified or registered mail, return receipt requested at the respective addresses of the parties set forth herein or at such other address as may be designated in writing by either party. Notice given by mail shall be deemed given three (3) days after the date of mailing thereof to the following addresses: SELLER Texas Capital Development Corporation, Inc. Attn: President 5950 Berkshire Ln, Suite 375, Dallas, TX 75225 Earnest Money Contract, Page 5 BUYER City of Baytown Attn: Acting City Manager P.O. Box 424 Baytown, TX 77522 XVII. FEDERAL TAX REQUIREMENTS If Seller is a "foreign person" as defined by applicable law or if Seller fails to deliver an affidavit that Seller is not a "foreign person," then Buyer shall withhold from the sales proceeds an amount sufficient to comply with the applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require the filing of written reports if cash in excess of specified amounts is received in the transaction. XVIII. USE The intended use of the Property by Buyer is for municipal purposes. If Buyer ascertains that applicable easements, restrictions or governmental laws, rules or regulations prevent such intended uses, and Buyer notifies Seller within thirty (30) days after the effective date of this Agreement (but in all events at least seven (7) days prior to closing) of Buyer's inability to use the property as herein proposed, the Agreement shall terminate and the Earnest Money shall be refunded to Buyer. Buyer's failure to give the notice within the required time shall constitute Buyer's acceptance of the Property. XIX. NON - WAIVER Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce by an appropriate remedy, strict compliance with any other obligation hereunder to exercise any right or remedy occurring as a result of any future default or failure of performance. XX. GOVERNING LAW This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City of Baytown, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. XXI. SEVERABILITY All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. Earnest Money Contract. Page 6 XXIL NO RIGHT TO ARBITRATION Notwithstanding anything to the contrary contained in this Agreement, the Buyer and the Seller hereby agree that no claim or dispute between the Buyer and the Seller arising out of or relating to this Agreement shall be decided by any arbitration proceeding, including, without limitation, any proceeding under the Federal Arbitration Act (9 U.S.C. Sections 1 -14), or any applicable state arbitration statute, including, but not limited to, the Texas General Arbitration Act, provided that in the event that the Buyer is subjected to an arbitration proceeding notwithstanding this provision, the Seller consents to be joined in the arbitration proceeding if the Seller's presence is required or requested by the Buyer for complete relief to be recorded in the arbitration proceeding. XXIH. COMPLETE AGREEMENT This Agreement contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement between the parties. XXIV. AUTHORITY The persons executing this Agreement on behalf of the parties hereby represent that such persons have full authority to execute this Agreement and to bind the party he /she represents. XXV. EXPIRATION This Contract shall expire if not signed by the Seller on or before the 15°i day of January, 2016. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple copies, each of which shall be deemed to be an original, but all of which shall constitute but one and the same Agreement on the day of , 2016, the date of execution by the Seller. BUYER: CITY OF BAYTOWN, TEXAS RICHARD L. DAVIS, City Manager ATTEST: LETICIA BRYSCH, City Clerk Earnest Money Contract. Page 7 APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney APPROVED AS TO FUNDING: CARL CURRIE, Acting Director of finance SELLER: TEXAS CAPITAL EVELOPMENT CORPORATIO NC., a Texas Corporation *nature) (Printed Natnc) (Title) STATE OF TEXAS § COUNTY OF Q S § Before me, �MWI T M61 -� I , the undersigned notary public, on this day personally appeared �- 107- , the of Texas Capital Dcvelopment Corporation, Inc., the owner of the above - described Property, 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, in the capacity, and for the consideration therein expressed. SUBSCRIBED AND SWORN before me this Mday of T �nuar_7 , 2016. ,►". art RAAUEL P. MARTINEZ Of Notary Public, state or Texas Nota u is and or the State of T as My Commission Expires `�� �`• December 16, 2018 R:\Karen\Piltw\Contmet.,•,Tcxas Capital Development Eartest Money Agreemenu Baytown Contrtct0i 14201611evised1cinc Earnest Monev Contract, Page 8 Cyr', C i� f EXHIBIT `A' f f � L J � 'IP J - ` W ,, a