HomeMy WebLinkAboutCouncil Resolutions 1597 RESOLUTION NO. \s�1`1
A RESOLUTION APPROVING FIRST AMENDMENT TO AGREEMENT FOR
OPTION TO PURCHASE REAL PROPERTY KNOWN AS JACKSON COUNTY
ASSESSOR'S MAP NO. 36 2W 34 TAX LOTS 200 and 300 AND AUTHORIZING
CITY MANAGER TO EFFECTUATE SAME
RECITALS:
A. City acquired real property consisting of 47 acres commonly referred to as Map
No. 36 2W 34,Tax Lots 200 and 300 located behind 5795 Upton Road (the
"Property") in 1975 for a future sewer treatment facility.
B. In 1982 the City transferred its sewers to Rogue Valley Sewer Services as part of
a regional program.
C. The City has leased the Property for farming purposes since its acquisition.
D. In 2017, per Resolution No. 1519, the City determined there was no public
purpose in retaining ownership of the Property and declared the Property
surplus and directed the City to sell the Property
E. In 2018, the City approved an Agricultural Lease with an effective date of July 1,
2018, and an Agreement for Option to Purchase dated July 1, 2018 for the
Property with Forest Stroud ("Stroud") (the "Option Agreement") per Resolution
No. 1553. The Option Agreement provides that Stroud may exercise an option to
purchase the Property on or after June 1, 2021 with a purchase price of
$416,000.00.
F. Stroud has proposed an amendment to the Option Agreement to purchase the
property at an earlier date, in consideration for an increase of the purchase price
to$495,000.00. The sale would close on or before September 28, 2019.
G. City staff has analyzed the loss of lease revenue with an increase in the purchase
price and recommends that it is in the City's best interest to approve an
amendment to the Option Agreement and sell the property on or before
September 28, 2019 in accordance with the goals established by the 2007 City of
Central Point strategic plan.
Res. No. Sal ; August 22, 2019 Page 1
The City of Central Point resolves:
Section 1.The attached First Amendment to Agreement for Option to Purchase
providing for the sale of approximately 47 acres commonly referred to as Map No. 36
2W 34,Tax Lots 200 and 300 located behind 5795 Upton Road on or before September
28, 2019 is approved.
Section 2.The City Manager is hereby authorized, on behalf of the City and without
further action by the City Council, to execute the Amended Option Agreement and to
perform all necessary acts, sign all necessary documents, and complete any other
necessary matters in order to close on the sale of the Property.
Passed by the Council and signed by me in authentication of its passage this
(-Qa day of August, 2019.
c,/C4-VZ
Mayor Hank Williams
ATTES ./
AP-
City Recorder
Res. No. / S4"1 ; August 22, 2019 Page 2
FIRST AMENDMENT TO
AGREEMENT FOR OPTION TO PURCHASE
THIS AMENDMENT is made this _ day of August 2019, being deemed by the
undersigned as a part of that certain Agreement for Option to Purchase dated July 1, 2018, by
and between City of Central Point, Oregon as "Owner", and Forest Stroud, as "Optionee"
("the Option Agreement").
RECITALS
A. The parties desire to amend the Option Agreement as set forth herein.
B. Optionee is currently in compliance with all obligations imposed on Optionee
pursuant to that certain Agricultural Lease between the parties dated July 1, 2018 ("the Lease").
AGREEMENT
NOW THEREFORE, in consideration of the mutual promises and covenants contained
herein and the Option Agreement,the parties hereto 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 Amendment.
2. Option Agreement Amendment. The parties agree that the Option Agreement
shall be amended as follows:
2.1 Special Option Exercise Right. Optionee has the right to exercise the Option as
of the date of this Amendment for a Purchase Price of$495,000.00. The parties acknowledge
and agree that Optionee's execution of this Amendment shall constitute the Exercise Notice
pursuant to the Option Agreement for the amended Purchase Price of$495,000.00.
2.2 Closing Date. Closing shall occur on or before September 28, 2019, at the
offices of the Escrow Agent.
2.3 Rent Credit. At Closing, Optionee shall receive a rent credit in the amount of
Three Thousand Five Hundred and No/100 Dollars ($3,500.00), which shall be applied
towards the amended Purchase Price of$495,000.00. Upon Closing, the Lease shall terminate
without notice and shall have no further force or effect.
3. Miscellaneous Provisions.
3.1 Counterparts. This Amendment may be executed by the parties in separate
counterparts, each of which when executed and delivered shall be an original, but all of which
together shall constitute one and the same instrument. For the purposes of this Amendment, a
facsimile or electronic copy of a signature shall be deemed effective as an original signature.
FIRST AMENDMENT
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3.2 Interpretation. Each party intends that this Amendment in all respects shall be
deemed and construed to be equally and mutually prepared by all parties and it is hereby
expressly agreed that any uncertainty or ambiguity shall not be construed for or against any
party.
3.3 Conflicting Provisions. In the event the terms and conditions set forth in this
Amendment modify or conflict with the terms and conditions of the Option Agreement, the
terms and conditions of this Amendment shall control and govern the rights and obligations of
the undersigned parties. All other terms and conditions of the Option Agreement shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the
date(s) set forth below.
OWNER:
CITY OF CENTRAL POINT:
Date: . 2019
By: Christopher Clayton
Its: City Manager
OPTIONEE:
Date: . 2019
Forest Stroud
FIRST AMENDMENT
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