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HomeMy WebLinkAboutCouncil Resolutions 1553 RESOLUTION NO. ISS. A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AN AGRICULTURAL LEASE AGREEMENT AND AGREEMENT FOR OPTION TO PURCHASE FOR MAP NO. 36 SW 34, TAX LOTS 200 AND 300 Recitals A. The City of Central Point acquired real property consisting of 47 acres commonly referred to as Map No. 36 SW 34, Tax Lots 200 and 300 located behind 5795 Upton Road in 1975 for a future sewer treatment facility (the "Property"). B. In 1982 the City of Central Point decided to transfer its sewers to Rogue Valley Sewer Services as part of a regional program. C. The City has been leasing the Property for farming purposes since the time of acquisition. D. The City Council finds it would be in the best interest of the public to agree to lease the property to the current owners of 5795 Upton Road for the purpose of industrial hemp production. E The current property owners would like to include an option to buy after the initial three year lease has concluded The City of Central Point resolves as follows: Section 1. The agricultural lease and the option agreement for that real property located in Central Point, Jackson County Oregon, commonly referred to as Map No. 36 SW 34, Tax Lots 200 and 300 are attached as Exhibits "A" and "B". Section 2. The City Manager is authorized to execute the agricultural lease and option agreement and any other documents necessary to effectuate this lease and option agreement. Passed by the Council and signed by me in authentication s passage this day of October 2018. Mayor Hank Williams ATTES ' fief—Adir City Recorder O Res. No. (SS ; October 11, 2018 Page 1 AGRICULTURAL LEASE Date July 1, 2018 ("Effective Date") Between: City of Central Point, Oregon ("'Landlord-1 An Oregon municipal corporation 140 South Third Street Central Point, Oregon 97502 And: Forest Stroud. ("Tenant') An individual. 4001 Little Applegate Road Jacksonville. Oregon 97530 RECITALS A. Landlord is the owner of certain real property located in Jackson County. Oregon. and commonly known as I ownship 36 South, Range 2 West. Section 34, Tax Lots 200 and 300 (collectivel). "the Premises"). a more particular description of the Premises being attached hereto as Exhibit "A". The subject propert\ is approximately 47.25 acres in size and consists of undeveloped agricultural land. Approximately 35 acres of the Premises is currently suitable for the intended agricultural usc. B. Landlord and Tenant ha e entered into an Agreement tor Option to Plat!WC r with an effective date of July 1. 2018 in conjunction with this Agreement ("the Option"). C. Landlord desires to lease the Premises to I enant subject to the terms and conditions of this Lease and 'Tenant desires to lease the Premises from Landlord subject to the terms and conditions of this lease. The Lease is for agricultural purposes only. AGREEMENT In consideration of the mutual promises. covenants and undertakings of the parties herein contained, the parties hereby agree as follows: 1. Recitals. the parties acknowledge and agree that the above-stated Recitals are incorporated herein and deemed a material part of this Agreement. 2. Term. the term of this Lease shall commence on July 1, 2018 and shall terminate on June 30, 2021, at 11:59 p.m. Notwithstanding the foregoing. Tenant shall have the right to terminate this Lease upon 120 da)s written notice to 1 andlord. Upon termination of the Lease, Tenant shall cause any existing crops to be removed from the Premises and all irrigation facilities shall remain on the Premises in good working order unless otherwise agreed to by the parties. Tenant is accepting the condition of the Premises "As Is'. 2.1 Extension Option. If the Lease is not in default at the time the option is AGRICULTURAL LLASL Page I of 7 exercised or at the time the renewal terns is to commence. Tenant shall have the option to extend this lease for two (2) successive terms of one (1) y ear each, as follows: (11 Hie extension term shall commence on the day following expiration of the preceding term (2) '1 he extension option may he exercised by written notice to Landlord given not less than 90 days prior to the last day of the expiring term. The gn ing of such notice shall be sufficient to make the Lease binding for the extension term without further act of the parties. (3) The terms and conditions of the Lease for each extension term shall be identical with the original term except that, following the expiration of the two (2) extension terms. I enant shall have no further right to extend this I ease. 3. Rent. Tenant shall pay $1,200.00 an acre annually based upon 35 useable acres for an annual amount of$42.000.00, to be paid in quarterly installments as follows: July 1. 2018 $10,500.00 (Payment Received) October I, 2_018 $10.500.00 (Payment Received) January 1, 2019 $10,500.00 April 1, 2_019 $10.500.00 July 1. 2019 $10.500.00 October 1, 2_019 $10.500.00 January 1, 2020 $10,500.00 April I. 2020 $10,500.00 July I, 2020 $10,500.00 October 1, 2020 $10,500.00 January 1, 2021 $10,500.00 April 1, 2_02_1 $10,500 00 Rent shall he due and payable in accordance with the above-stated rent schedule. Rent payments shall be timely made to the City of Central Point Finance Department located at 140 South Third Street, Central Point. Oregon 97502. 4. Permitted Use. The Premises shall be used for agricultural purposes, including, but not limited to the growing and processing of hemp or other crops located on the Premises. enant's use of the Premises shall conform to all applicable laws and regulations of any public authority affecting the Premises. Notwithstanding the foregoing. the growing and/or processing of recreational and/or medical marijuana shall he prohibited on the Premises. Tenant. at Tenant's own expense. shall promptly correct any failure of compliance created through fenant's fault or by reason of Tenant's use of the Premises. 'I enant shall not cause or permit any hazardous substance to he spilled, leaked, disposed of. or otherwise released on or under the Premises or the subject property. 5. Tenant's Use and Obligations. Tenant shall keep the Premises in good condition and Tenant shall not store trash or allow any unsightly condition to occur consistent with the intended use of the Premises Tenant shall make no permanent improvements or AGRICULTURAL I.EASI Page 2 of 7 alterations on the Premises of any kind without first obtaining Landlord's written consent, which consent shall not he unreasonably delayed or withheld. In the event such permanent improvements are made, such permanent improvements made shall become the property of Landlord unless otherwise agreed to in writing by the parties. 6. Taxes; Utilities. tenant shall pay as due all taxes on its personal property located on the Premises. Landlord shall be solely responsible for all real property taxes and assessments. Tenant shall be solely responsible for all dues, charges and assessments for irrigation water provided to the Premises Imposed by the Rogue River Valley Irrigation District or other irrigation water provider ("the RRVID Charges"). Tenant shall reimburse Landlord for all RRVID Charges relating to the Premises during the term of this Lease Tenant shall reimburse Landlord for such RRVID Charges within ten (10) business days of reeds ing written notice from Landlord of the amount of the RRVID Charges and that Landlord has paid the same. RRVID Charges shall be prorated consistent with the term of this Lease. In the event utility ser\ices are pros ided to the Premises, 1 enant. at Tenant's sok expense, shall he pay w hen due all such utility charges 7. Eminent Domain. In the event the Premises or any significant portion thereof is condemned. the rent owing shall be adjusted based on the following formula: number of remaining usable acres subsequent to the condemnation multiplied by $1,200 00. Tenant shall he entitled to condemnation proceeds specifically allocated towards the value of existing planted crops at the time of the condemnation 8. Liability and Indemnity. 8.1 Liens tenant shall pay as due all claims for work done on and for services rendered or material furnished to the Premises and shall keep the Premises free from any liens. If Tenant fails to pay any such claims or to discharge any lien, Landlord may do so and collect the cost as additional rent. Any amount so added shall bear interest at the rate of 12 percent per annum from the date expended by Landlord and shall be payable on demand. Such action by Landlord shall not constitute a waiver of any right or remedy which Landlord may have on account of Tenant's default. Notwithstanding the lbregoing, Tenant may withhold payment of am claim in connection with a good-faith dispute over the obligation to pay. as long as Landlord's property interests are not jeopardized. If a lien is filed as a result of nonpayment. Tenant shall, within 10 business days after knowledge of the tiling. secure the discharge of the lien or deposit with landlord cash or sufficient corporate surety bond or other surety satisfactory to Landlord in an amount sufficient to discharge the lien plus any costs, attorney fees, and other charges that could accrue as a result of a foreclosure or sale under the hen. 8.2 Indemnification. Tenant shall indemnify and defend Landlord from am claim, loss, or liability, including Landlord's costs and fees incurred in defending against such claims, arising out of any condition of the Premises or related to any active ity on the Premises by I enant, Including Tenant's guests. invitees. agents, and unsolicited visitors 8.3 Liability Insurance. 13etbre going into possession of the Premises, Tenant shall procure and thereafter during the term of this Lease shall continue to carry the following insurance at Tenant's cost: commercial general liability policy (occurrence version) in a AGRICULTURAL. LI'ASI Page 3 of 7 responsible company with coNeiage for bodily injury and property damage liability and medical payment with a general aggregate limit of not less than $1,000,000 and a per occurrence limit of not less than $1,000.000. Such insurance shall corer all risks arising directly or indirectly out of Tenant's activities on or any condition of the Premises whether or not related to an occurrence caused or contributed to by Landlord's negligence. Such insurance shall protect 1 enant against the claims of Landlord on account of the obligations assumed by Tenant under Section R.2 and shall name Landlord as all additional insured. Certificates evidencing such insurance and bearing endorsements requiring a minimum of 10 days' written notice to Landlord prior to any' change or cancellation shall he furnished to Landlord prior to 'tenant's occupancy of the Premises. 9. Default. The following shall be events of default: 9.1 Default in Rent Failure of Tenant to pay monthly rent when due or other charges imposed on Tenant pursuant to the terms of this Lease. 9.2 Default in Other Covenants Failure of Tenant to comply with any term or condition or fulfill any obligation of the Lease (other than the payment of rent or other charges) within 20 days after written notice by Landlord specifying the nature of the default with reasonable particularity. If the default is of such a nature that it cannot be completely remedied within the 20-day period, this pros ision shall be complied with if lenant begins correction of the default within the 20-day period and thereafter, proceeds with reasonable diligence and in good faith to affect the reined) as soon as practicable. 10. Remedies on Default. 10.1 Termination. In the eNent of a default. the Lease may he terminated at the option of Landlord by written notice to tenant. Whether or not the Lease is terminated by the election of Landlord or otherwise, landlord shall he entitled to reco\er damages from Tenant for the default, and Landlord may reenter, take possession of the Premises, and remove any persons or property by legal action or by self-help with the use of reasonable force and without liability for damages and without having accepted a surrender. 10.2 Damages. In the went of termination or retaking of possession following default, Landlord shall be entitled to recover immediately. without waiting until the due date of any future rent or until the date fixed for expiration of the Lease term, the following amounts as damages. 111 The loss of rental from the date of default until a new tenant is, or with the exercise of reasonable efforts could hale been, secured and paying out (2) The reasonable costs of reentry and reletting including without limitation the cost of any cleanup, refurbishing. removal of Tenant's property. or any other expense occasioned by Tenant's default including but not limned to any repair costs, attorney fees, court costs, broker commissions. and advertising costs 10.3 Remedies Cumulative the foregoing remedies shall he in addition to and shall AGRICULTURAL LEASE Page 4 of 7 not exclude any other remedy available to Landlord under applicable law. 11. Miscellaneous 11.1 Assignment and Sublease. No part of the Premises may be assigned or subleased without the prior written consent of Landlord. which may be withheld for any reason Notwithstanding the foregoing. Tenant ma} enter into a sublease agreement with Botanical Research Systems, LLC, an Oregon limited liability company in which Tenant is the sole member, provided said subtenant fully complies with all terms and conditions of this Lease and the ownership/membership of Botanical Research Sy stems. LLC, remains unchanged 11.2 Attorney Fees and Costs. If suit or action is instituted in connection with any controversy arising out of this Lease, the pre5ailing party shall he entitled to recover in addition to costs such sum as the court may adjudge reasonable as attorney fees at teal, on petition for ret iew, and on appeal. 11.3 Notices. Notices under this Lease shall he in writing and shall be effective when actually delivered by hand delivery, electronic correspondence or United States mail directed to the other party at the address set forth below. or to such other address as the party may indicate by written notice to the other: Landlord: City of Central Point Attn: Public Works Director 140 South Third Street Central Point. Oregon 97502 matt.samitoIc a centi almmntoreeon eo\ I enact: Forest Stroud 4001 I ittle Applegate Road Jacksonville. Oregon 97530 forest a'nnxmtaingreenhouse net Either the Landlord or the Tenant may change their respectne address or addressee by giting notice of such change to the other party in the manner prof ided herein. 11.4 Modification. No modification of this Lease shall he valid unless in writing and signed by the parties hereto. 11.5 Governing Law; Interpretation. This Lease shall be governed by the laws of Oregon. Exclusit.c v cnuc and jurisdiction for any dispute concerning this Lease shall be in Jackson County, Oregon. 11.6 Time Is of the Essence. I ime is of the essence of this Lease 11.7 Counterparts. This Lease may he executed by the parties in separate counterparts. For the purposes of this Lease. a facsimile or electronic copy of a signature shall have the same three and effect as an original signature AGRICULTURAL LEASL Page 5 of 7 11.8 Non-Discrimination. Tenant shall not (and Tenant shall not permit any person claiming through or under I enant to) discriminate against or segregate any person or group of persons on account of race, color, creed, sex. religion, marital status, ancestry, or national origin, whether in the use, occupancy, subleasing, transferring, or enjoyment of the Premises. or otherwise IN WITNESS WHEREOF. the parties ha'e executed this Lease to be effective as of the date first set forth above. LANDLORD: By: Its: IENAN1: Forest Stroud AGRIUIII.lI[RAI LEASE Page b of 7 EXHIBIT A TRACT A: Commencing at the northeast corner of Donation Land Claim No. 56 in Township 36 South , of Range 2 West of the Willamette Meridian in Jackson County, Oregon; thence West along the north line of said Claim, 3761. 15 feet to the true point of beginning; thence South and parallel to the east line of said Claim, 1305.08 feet; thence West and parallel to the north line of said Claim 1418.53 feet, more or less, to intersect the west line of said Claim; thence North, along the west line of said Claim, 1305.08 feet to the northwest corner thereof; thence East along the north line of said Claim, 1418.53 feet to the true point of beginning. • TRACT B: Beginning at a point on the east line of Donation Land Claim No. 56 in Township 36 South, Range 2 West of the Willamette Meri- dian in Jackson County, Oregon, said point being 1305.08 feet South of the northeast corner of said Claim; thence continuing South along the east line of said Claim, a distance of 40 .0 feet; thence West parallel with the north line of said Claim, a dis- tance of 5179.68 feet to the west line of said Claim No. 56 ; thence North along said west line, a distance of 40.0 feet; thence East parallel with the north line of said Claim, a distance of 5179.68 feet to the point of beginning. AGRICULTURAL LLASE Page 7 of 7 AGREEMENT FOR OPTION TO PURCHASE Date: July: L 2018 flectw e Date") Between: City of Central Point, Oregon ("Owner") An Oregon municipal corporation 140 South Third Street Central Point, Oregon 97502 And: Forest Stroud. ("Optionce") An indiy idual, 4001 Little Applegate Road Jacksonville. Oregon 97530 RECITALS A. Owner is the owner of certain real property located in Jackson County. Oregon. and commonly known as Township 36 South, Range 2 West, Section 34. Tax Lots 200 and 300 (collectively, "the subject property"), a more particular description of the subject property being attached hereto as Exhibit "A". The subject property is approximately 47.25 acres in size and is undeveloped except for irrigation facilities and minor roadway improvements B. Owner and Optionee have entered into an Agricultural Lease with an effective date of July 1. 2018 in conjunction with this Agreement ("the I ease"). Owner desires to grant Optionee an option to purchase the subject property in consideration of Optionee entering into the Lease. C. Optionee desires an option to purchase an undivided 100% interest in the subject property and Owner desires to grant Optionee an option to purchase an undis ided 100% interest in the subject property. AGREEMENT In consideration of the mutual promises, covenants and undertakings of the parties herein contained, the parties hereby agree as follows: 1. Recitals. The parties acknowledge and agree that the abos e-stated Recitals arc incorporated herein and deemed a material part of this Agreement. 2. Option to Purchase 2.1 Grant of Option. Owner. for and in consideration of Optionee entering into the Lease. grants to Optionee the sole and excluswe option to purchase the subject property in the AGREENIEN F FOR OP I ION I U PIJRCI IASL Page I of 8 manner and for the price stated in this Agreement ("the Option"). In the dent the Lease is terminated by the parties. this Agreement shall automatically terminate without notice and he of no further force or effect. 2.2 Term. 'the Tem of the Option shall commence upon July I, 2018 and shall terminate on June 1, 2021. The Term of the Option ma} he referred to in this Agreement as the "Term". 2.3 Exercise of Option. Phis Option shall he exercised, if at all, by written notice (the "Exercise Notice") gi'en by Optionce to Owner on or alter January 1. 2021. but on or before June 1, 2021, which notice shall state that Optionee has elected to exercise this Option. This Option ma} be exercised only with respect to all of the subject property. Upon exercise of this Option, Optionee shall he obligated to purchase the subject property from Owner, and Owner shall be obligated to sell the undivided 100"6 interest in the subject property to Optionee, for the price and in the manner herein set forth. 'this Option may only be exercised if Optionee is currently in compliance with all obligations imposed on Optionee pursuant to the lease. 2.4 Failure to Exercise Option. In the event Optionee fails for any reason to exercise this Option in the manner set forth herein, Optionee shall have no further claim against or interest in the subject property. In the event of the failure to exercise the Option, Optionee shall provide Owner with any instrument that Owner may reasonably deem necessary for the purpose of removing from the public record any cloud on title to the subject property which is attnbutable to the grant or existence of this Option, if any. 2.5 Purchase Price. In the exent the Option is exercised in compliance with the requirements of Section 2 3 and within the period set forth in Section 2 3 of this Agreement. the purchase price for the 100°% interest in the subject property shall he Four Hundred Sixteen Thousand and No/100 Dollars (5416,000.00) ("the Purchase Price") 3. Purchase and Sale. Upon exercise of this Option in compliance with the requirements of Section 2 3 and within the period set forth in Section 2.3 of this Agreement. Optionee shall he obligated to purchase the subject property from Owner. and Owner shall be obligated to sell the undivided 100% interest in the subject property to Optionee, subject to the terms and conditions set forth herein. 3.1 Payment of Purchase Price. The purchase price for the subject property shall be payable as follows: 3.1.1 Options shall he given no credit for rent payments paid to Owner pursuant to the Lease. 3.1.2 The Purchase Price shall he paid in cash at Closing 3.2 Title. On the Closing Date Owner shall execute and cause to be recorded in the Official Records of Jackson County, Oregon. a special warrant} deed conveying the subject AGREF MENT FOR OPTION TO PURCH 4SE Page 2 of 8 property to Optionee. I itle to the subject property shall be conveyed to Optionee free and clear of all encumbrances. except for the encumbrances set thrth in Paragraphs through of the Title Report ("the Accepted Encumbrance(s)-). a cop) of which is attached hereto and marked Exhibit "B" Notwithstanding the foregoing, any encumbrance on title resulting from Optionee's activities shall be deemed an Accepted Encumbrance and shall be accepted by Optionee at Closing. As soon as practicable after Closing, and in an) event no later than 30 days after the Closing Date. Owner shall cause the Escrow Agent to issue its standard form Owners Title Insurance Policy, without extended coverage. in the amount of the Purchase Price. insuring fee simple title to the subject property vested in Optionee, subject only to the standard title policy exceptions and the exceptions set forth m Exhibit"B". 3.3 Closing. 3.3.1 Time and Place. Closing of the sale and purchase of the subject property (the "Closing") shall occur on .lulu 1, 2021 (the "Closing Date"). [he escrow for the Closing shall be established at the office of First American '1 itle Company of Oregon located at 1225 Crater Lake Avenue, Suite 101, Nledford, Oregon ("Escrow Agent) 3.3.2 Closing Obligations. On the Closing Date. Owner and Optionce shall deposit the following documents and funds in escrow, and the Escrow Agent shall close escrow in accordance with the instructions of Owner and Optionee: 3.3.2.1 Owner shall deposit the following (1) The conveyance documents described in Section 5 2. duly executed and acknowledged: (2) Such other documents and funds. including (without limitation) escrow instructions, as are required of Owner to close the sale in accordance with this Agreement. 3.3.2.2 Optionee shall deposit the following: (I) Such documents and funds. including (without limitation) escrow instructions, as are required of Optionee to close the sale and purchase of the subject piopen) in accordance with this Agreement. 3.3.3 Costs of Closing. 3.3.3.1 Seller's Costs and Expenses. At Closing. Owner shall pa) (i) one-half(1/2) of the Escrow Agent's fee: (ii) the premium for an Owner's standard title insurance policy in the amount of the Purchase Price: (iii) all recording and miscellaneous charges customarily attributable to a seller in similar transactions: and (iv) attorney fees incurred by seller with respect to negotiating this Agreement. if any 3.3.3.2 Purchaser's Costs and Expenses. At Closing, Optionee shall pay (i) one-half (1/2) of the Escrow Agent's Fee: (ii) an) premium for additional title insurance endorsements AGREEMENT FOR OPTION TO PURCHASE Page 3 of 8 desired by Optionce over and above those pros ided by a standard title insurance policy Iiii) all recording and miscellaneous charges customarily attributable to purchasers in similar transactions, and (is ) all attorneys' fees incurred by Optionee with respect to negotiating this Agreement, if am. 3.3.4 Prorations. Owner and Optionee understand that certain items will need to he prorated among the parties at Closing including, hut not limited to real property taxes. Real estate taxes payable for the current year shall he prorated on the Closing Date between the Owner and the Optionee. 4. Ownership. During the Term, or any extension thereof. Owner shall not sell. contract to sell or otherwise transfer the subject property, any part of thereof. or any interest therein. nor giant an option to any third party to acquire all or any portion of the subject property unless such transfer or grant is expressly subject to the rights of Optionee. 5. Casualty and Condemnation. 5.1 Casualty or Condemnation. In the eNent of threatened or actual condemnation of a material portion of the subject property prior to the Closing Date, at Optionee's option. Optionee may elect to proceed with the purchase of the subject property or may terminate this Agreement by s ritten notice to Seller provided within ten (10) days after Purchaser's receipt of written notice of the occurrence of such threatened or actual condemnation. In the event Optionce elects to terminate this Agreement. neither party shall have an\ lurther rights, liabilities or obligations hereunder. 5.2 Election to Close. If Optionee elects to proceed with the purchase of the subject property despite a condemnation action. then upon Closing, all condemnation proceeds shall he paid towards payment of the Purchase Price. The Purchase Price shall not be reduced, Optionee shall hale no claim against Owner relating to such condemnation other than any claim relating to the delivery of any condemnation proceeds and Optionee shall acquire the subject property at Closing in its then condition 5.3 Risk of Loss. Lxcept as otherwise provided herein, the risk of loss prior to Closing rests with Owner. 6. Brokerage Fees. No real estate brokerage fee or commission is owing in conjunction with this transaction. 7. Miscellaneous Provisions. 7.1 Assignment. The parties' rights and obligations under this Agreement shall not be assigned to any third party except that the parties acknowledge that Optionee shall have the right to assign Optionee's interest in this Agreement to a limited liability company in which Optionee is a majority member. 7.2 Attorneys' Fees. In any proceeding brought to enlbrce this Agreement or to AGREEMENT FOR OPriON TO PURCHASE Page 4 of 8 determine the rights of the parties untie' this Agreement. the prevailing party shall be entitled to collect. in addition to any judgment awarded by a court, its reasonable attorney fees incurred, and all costs and expenses incurred in connection with such a lawsuit. including attorney fees. expenses of litigation, and costs of appeal For purposes of this Agreement, the prevailing party shall be that party in whose favor final judgment is rendered or who substantially pre5ails. it both parties are awarded judgment. The term "proceeding" shall mean and include arbitration. adminrstrath e, bankruptcy, and judicial proceedings including appeals. 7.3 Notices. Notices under this Agreement shall he in writing and shall be effective when actually delivered by hand delivery, electronic correspondence facsimile or United States mail directed to the other party at the address set forth below. or to such other address as the party may indicate h\ written notice to the other: Owner: City of Central Point Attn: Public Works Director 140 South "Third Street Central Point. Oregon 97502 matt sanutni e.a ccnlralpointorcgon.go' Optionee: Forest Stroud 4001 Little Applegate Road Jacksonville. Oregon 97530 forest a rnountamgreenhousenet 7.4 Entire Understanding. This Agreement, and the documents incorporated herein, consists of the entire Agreement between the parties with relation to the conveyance of the subject property. 7.5 Time of Essence. lime is of the essence of this Agreement. 7.6 Applicable law. This Agreement shall he governed by and construed in accordance with the laws of the State of Oregon. 7.7 Counterparts. This Agreement may be executed by the parties in separate counterparts For the purposes of this Agreement, a facsimile or electronic copy of a signature shall have the same force and effect as an original signature 7.8 Statutory Disclaimer. 111E PROPERTY DESCRIBED IN I HIS INSTRUMENT MAY NO I' BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING S"IRUCICRES TILE PROPERTY IS SUBJECT 10 LAND USE LAWS ANI) REGUI ATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SII TNG OF A RESIDENCE AND THAT LIMIT LAWSUIT S AGAINST FARMING OR FOREST PRACTICES, AS DEFINED AGREFMEN I FOR ONION TO PURCHASE Page 5 of IN ORS 30.930. IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INS I RUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT 'HIE PERSON'S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 '10 195 336 AND SECTIONS 5 I Cl II, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855. OREGON LAWS 2002 AND SECTIONS 2 10 7. CHAPTER 8, OREGON LAWS 2010. BEFORE SIGNING OR ACCEP ING PHIS INSTRUMENT. 1H PERSON ACQUIRING FEE Till F I0 I HF PROPERTY SHOULD CI IECK WITH THE APPROPRIATE CII Y OR COUNTY PLANNING DEPAR'ITIENT 10 VERIFY IIIAI' 1111. UNIT OF LAND BEING TRANSFERRED IS A LAWFUI IN ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF EHE LOT OR PARCEL, 10 VERIFY 11 IE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES ANI) 10 INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS. IF ANY, UNDER ORS 195.300, 195 301 AND 195305 TO 195.336 AND SEC PIONS 5 TO 11. CHAP 1 FR 424, OREGON LAWS 2007. SFC'I IONS 2 '10 9 AND 17, CHAPTER 855, OREGON LAWS 2009. AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. IN WITNESS WHEREOF. the parties have executed this Agreement for Option to Purchase on the date first written abo\e, which is its effective date. By: Its: "OWNER" "OPTIONEE" AGREEMENT FUR UP I ION 10 PURCHASE Page 6 of 8 EXHIBIT -A" TRACT A: Commencing at the northeast corner of Donation Land Claim No. 56 in Township 36 South, of Range 2 West of the Willamette Meridian in Jackson County, Oregon; thence West along the north line of said Claim, 3761.15 feet to the true point of beginning; thence South and parallel to the east line of said Claim, 1305.08 feet; thence West and parallel to the north line of said Claim 1418.53 feet, more or less , to intersect the west line of said Claim; thence North, along the west line of said Claim, 1305.08 feet to the northwest corner thereof; thence East along the north line of said Claim, 1418.53 feet to the true point of beginning. TRACT B: Beginning at a point on the east line of Donation Land Claim No. 56 in Township 36 South, Range 2 West of the Willamette Meri- dian in Jackson County, Oregon, said point being 1305.08 feet South of the northeast corner of said Claim; thence continuing South along the east line of said Claim, a distance of 40.0 feet; thence West parallel with the north line of said Claim, a dis- tance of 5179. 68 feet to the west line of said Claim No. 56; thence North along said west line, a distance of 40.0 feet; thence East parallel with the north line of said Claim, a distance of 5179.68 feet to the point of beginning. AGREFMFN 1 1 OR OPl ION TO PURCHASF Page7 of8