HomeMy WebLinkAbout08/09/1999 City Council 007210
ATTACHMENT "A"
MEMORANDUM
TO: John Hill
FROM: Bob Buchanan
RE: Proposed Contract of Sale/JNC Properties/City of The Colony, Texas
DATE: July 20, 1999
Attached is the Real Estate Sales Contract proposed by JNC Properties, LLC. Below are
my comments:
2.1 Purchase Price. The purchase price of $2,000,000.00 is payable in cash at closing.
As presently written, the proposed closing date is 35 days after execution of the Contract. If the
City will issue debt to fund the purchase price, the inspection period in Section 6.1 and the
closing date in 7.1 must be modified to accommodate the same.
3.1 Earnest Money DePOsit. The earnest money deposit of $50,000.00 seems high,
particularly in light of the short inspection period and proposed closing date. We should counter
this with $25,000.00. This section also designates Texas Title Company as the title company for
purposes of issuing the commitment. It is recommended that we request that Ms. Pat Noska,
LandAmerica, 600 North Pearl Street, Suite 700, Dallas, Texas 75201, (214) 720-7600 be used.
4.1 Title Commitment. The first sentence should be deleted. Since a new title
commitment must be issued showing The Colony as the proposed insured with an effective date
after the effective date of the Contract, there is no need to use or attach as an exhibit the title
commitment previously obtained by the Seller.
5.1 Description of Survey. Since a new survey will be required that is specifically
prepared for the benefit of The Colony, there is purpose in referencing or attaching the
September 9, 1997 survey prepared by William C. Boden to the Contract. Also, the balance of
Section 5.1 seems to address only the "Updated Survey". It is recommended that the first
sentence of Section 5.1 be deleted, and all references to the "Updated Survey" be revised to the
"Survey". There is no objection to Mr. Boden preparing the survey based upon his prior work.
The Seller should be obligated to deliver the current survey within 15 days after the execution of
the Contract.
6.1 Inspection Period. The time limit in subsection (a) of 20 days is too short. If The
Colony will be issuing debt to fund the purchase price, this time period need to be sufficient to
determine that the debt can be properly issued.
6.2 Environmental Sllrvey. In the event The Colony learns of the presence of hazardous
substances on the Property, subsection (b) obligates The Colony to either terminate the Contract
or propose a plan by which The Colony will remediate the hazardous condition at its expense.
This makes no sense. Presumably the purchase price of $2,000,000.00 is based upon the
Property being free of hazardous substances. The Colony should not be required to remediate an
00722 )
MINUTES OF THE SPECIAL SESSION
HELD ON
AUGUST 9, 1999
The SPECIAL SESSION of the CITY COUNCIL of the City of The Colony, Texas, was called to order at
6:00 P.M. on the 9th day of AUGUST, 1999, at CITY HALL with the following roll call:
William A. Manning, Mayor Present
John A. Gordon, Councilmember Absent (Personal)
Lewis Jue, Councilmember Absent (Personal)
David Stanwick, Councilmember Absent (Personal)
Al Garcia, Councilmember Present
John Dillard, Councilmember Present
Jeff Meyers, Councilmember Present
and with four present a quorum was established and the following items were addressed:
ITEM DESCRIPTION SOURCE STATUS
1.1 EXECUTIVE SESSION AS AUTHORIZED BY SECTION Council
551.074 OF THE GOVERNMENT CODE RELATING TO
PERSONNEL, TO-WIT:
A. Interview applicants for advisory boards
The following applicants were interviewed:
(Planning and Zoning Commission)
Brian Broom DeVille Hubbard
Joe Agnew Bill Jamme
Ike Obi Alan Ladd
Dewayne Snider Wilson Martin
Calvin Todd
(Special Events Board)
Nancy Wetzel Madge Cooper
Wilma Avey Liz Ripperger
Meg Harrison Beth Rogers
Council
1.2 CONSIDERATION OF ANY APPROPRIATE ACTION TO
BE TAKEN AS A RESULT OF THE EXECUTIVE
SESSION
No action taken.
00722,;
With no further business to address, Mayor Manning adjourned the meeting at 9:30 p.m.
APPROVED:
'William W. Mann'g, Mayor
ATTEST:
i-ty S~cr~tary
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