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HomeMy WebLinkAboutRES 18-160RESOLUTION NO. 18-160 WHEREAS, the potential purchase of the building and property located at 555 Main Street was discussed in Executive Session properly called and held Tuesday, May 8, 2018; and, WHEREAS, the Administration made an offer of $1,000,000.00 for the building and property, contingent upon approval by the City Council; and, WHEREAS, the Seller (JPMCC 2007-CIBC19 Main Street LLC) has agreed to the City's offer; and, WHEREAS, the City plans to acquire this site for future development of the 3:7 acres, which is adjacent to the Neches River and the City's Civic Center property; and, WHEREAS, City Council is of the opinion that it is in the best interest of the citizens of the City of Beaumont for the City to enter into Letter of Intent for the purchase of the building and property located at 555 Main Street; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Manager be and he is hereby authorized to execute a Letter of Intent between the City of Beaumont and JPMCC 2007-CIBC19 Main Street LLC in the amount of $1,000,000.00 for the purchase of the building and property located at 555 Mail Street, substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of July, 2018. (_/i 1110 :- .- Arnold and Associates One Acadiana Court, Beaumont, TX 77706 409-833-5055 www.cbcaaa.com "LETTER OF INTENT" 7-12-18 This "Letter of Intent" to buy and sell real property is between Buyer and Seller as identified below and is effective on the date of the last of the signatures of Buyer and Seller. Seller: JPMCC 2007-CIBC19 Main Street LLC c/o Friedman Realty 34975 West Twelve Mile Rd. Farmington Hills, MI 48331 Buyer: The City of Beaumont P.O. Box 3827 Beaumont, TX 77704 Property: 555 Main Street (Legal description to be provided upon completion of a survey) Condition of Property: AS IS/ WHERE IS Title Company: Texas Regional Title / Molly Mallet Title Commitment: Title commitment will be delivered to Buyer within 21 days after execution of an Earnest Money Contract. Buyer will have ten (15) days to review Title Commitment and register any objections. EXHIBIT "A" Earnest Money: $10,000.00 to be deposited with Texas Regional Title Company within three business days upon execution of the Earnest Money Contract. Survey: Buyer may provide a new survey at Buyer's cost and expense. Seller to provide any existing survey (if available) within 15 days of Earnest Money Contract. Seller is to have the corners of the property marked. Documentation: Seller will make available to Buyer, copies of any and all environmental reports, appraisals, or other documents disclosing the condition of the property within fifteen (15) days after execution of the Earnest Money Contract. Feasibility Period: Buyer to have a 180 day feasibility period to review property and perform any inspections deemed necessary. Sale Price: $1,000,000.00 Closing: Closing shall occur within 60 days after receipt of satisfactory Title Commitment and Survey and end of feasibility period. Commission: A commission of 3% of the sales price will be paid by Seller to Coldwell Banker Commercial Arnold and Associates. Time for Acceptance Of Offer: Requested by July 27, 2018. THIS IS A NON-BINDING LETTER OF AGREEMENT SUBMITTED TO OUTLINE THE MATERIAL BUSINESS TERMS FOR THE PROPOSED PURCHASE OF THIS PROPERTY. NEITHER PARTY SHALL BE BOUND TO THE TRANSACTION UNTIL A FINAL EARNEST MONEY CONTRACT, ACCEPTABLE TO ALL PARTIES HAS BEEN EXECUTED TOGETHER WITH EARNEST MONEY DEPOSITED. UPON ACCEPTANCE OF THIS AGREEMENT, AS EVIDENCED BY SIGNATURES BELOW, AN EARNEST MONEY CONTRACT WILL BE DRAFTED FOR EXECUTION BY BOTH PARTIES. The above terms and conditions are acceptable as evidenced by the signatures below: AGREED TO AND ACCEPTED: BUYERS: CITY OF BEAUMONT By: Signature Printed Name Date SELLER: JPMCC 2007-CIBC19 MAIN STREET, LLC By: Signature Printed Name Date