HomeMy WebLinkAboutMemorandum of Agreement-12/12/2011MEMORANDUM OF AGREEMENT
REGARDING PRORATING OF REAL ESTATE TAXES
THIS AGREEMENT is made and entered into this 15th day of December, 2011, by and between
JOHN E. STURTZ and PAULA STURTZ, married persons (hereinafter "Sturtz"), the CITY OF
WA 1'ERLOO (hereinafter "City"), and L and H Farms, Ltd.
RECITALS:
A. Sturtz entered into an Offer to Buy Real Estate and Acceptance (hereinafter "Contract")
with Hollis Farms, Inc. on August 23, 2011, for the sale and purchase of the East 1,722 feet of the North
Half of the Northwest Quarter of Section 26, Township 88 North, Range 13 West of the 5th P.M., Black
Hawk County, Iowa, except the North 55 feet thereof (50 acres more or less) (hereinafter "Real Estate").
B. Hollis Farms, Inc. assigned its rights in the Contract to City and City accepted assignment
of the Contract by Assignment of Offer to Buy Real Estate and Acceptance dated December 15, 2011.
C. City will convey the Real Estate to L and H Farms, Ltd. as part of an exchange for like -
kind real estate.
D. The purpose of this Agreement is to confirm the parties' agreement regarding the manner
in which property taxes will be prorated pursuant to the terms of the Contract. The parties acknowledge
that the Contract requires that property taxes for the Real Estate be prorated to the closing date for the sale
and purchase of the Real Estate, December 15, 2011. Sturtz acknowledges that prorating the real estate
taxes will require that Sturtz pay 100% of the installment of real estate taxes attributable to the Real
Estate due on or before March 31, 2012, and 11/12 of the installment of real estate taxes attributable to
the Real Estate due September 30, 2012. The parties acknowledge that the Real Estate is not likely to be
taxed as a separate parcel by the time the real estate tax bill for the installments due September 30, 2012
and March 31, 2013 is issued in August of 2012. The tax bill will be sent to Sturtz. Sturtz agrees to pay
the taxes due on March 31, 2012, September 30, 2012, and March 31, 2013. L and H Farms, Ltd. as
successor to City will reimburse Sturtz for its share of the real estate taxes. The parties acknowledge that
the Real Estate will likely be taxed as a separate parcel at the time the property tax bill for the installments
due September 30, 2013 and March 31, 2014 is issued in August of 2013. It is understood and agreed by
the parties that the City's successor, L & H Farms, Ltd. or its successor will be responsible for the taxes
due March 31, 2013 and all subsequent installments of real estate taxes.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first
above written.
PAUL STURTZ
L AND H FARMS, LTD.
By: LANEHAVEN FARMS, INC., Partner
By:
Curtis G. Hollis, President
Mayor
c c_'_ /
By: .-
City Clerk