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HomeMy WebLinkAboutBeckerChapman Post No. 138 of the American Legion-8/24/2015AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT This Amendment to Real Estate Purchase Agreement (the "Amendment") is entered into as of g'/(2---4/ , 2015, by and among the City of Waterloo, Iowa ("Buyer") and Becker - Chapman Post No. 138 of the American Legion ("Seller"). RECITALS A. Buyer and Seller are parties to a certain Real Estate Purchase Agreement dated as of April 6, 2015 (the "Agreement"), concerning the acquisition of 619 Franklin Street. B. Seller has closed and conveyed said property to Buyer and is requesting payment of up to $100,000 in an incentive payment provided by Subsection F of Section 22 of the Agreement, but does not meet all provisions to qualify for the incentive payment as provided for in the Agreement. Seller has purchased a replacement building and has begun renovation of the building to provide suitable meeting space for itself with assembly area and commercial -grade kitchen, but has not substantially completed the renovation or provided adequate written evidence of project costs. To keep the renovation project moving forward, the parties desire to amend the Agreement on the terms set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises exchanged herein and for other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The Agreement is amended to strike Subsection F. of Section 22 therefrom in its entirety and to substitute the following new Subsection F. of Section 22 in lieu thereof, as follows: F. Buyer shall make an incentive payment of $50,000 to Seller. Within twelve (12) months after the date of Buyer's approval of this Amendment Seller shall obtain all necessary building permits and substantially complete renovation of 728 Commercial Street to provide suitable meeting space for itself with assembly area and equipped with a commercial -grade kitchen, including all work for the two phases identified by Seller, including main bar/bathroom remodel, and kitchen remodel, then Buyer will make an additional incentive payment of up to $50,000. Seller shall hire a licensed contractor to act as the general contractor for all aspects of the kitchen remodel. The total incentive payments (up to $100,000) shall be limited to an amount that does not exceed Seller's reasonable project cost as evidenced by written invoices with proof of payment to professional contractors or detailed receipts for construction material or kitchen equipment purchased. 2. The Agreement is amended to add Subsection H. of Section 22 as follows: H. Seller hereby grants to Buyer a right of first refusal to purchase the property at 728 Commercial Street (legally described as the Southeasterly 51.5 feet of Lot 1 of Block 9 of the Original Plat of Waterloo West, City of Waterloo, Black Hawk County, Iowa), exercisable for period of fifteen (15) years after the date of Buyer's approval of this Amendment. Said right shall be exercised, if at all, within sixty (60) days following written notice from Seller of a pending sale from a bona fide third party purchaser. This right of first refusal shall survive closing of the transaction that is the subject of the Agreement. 3. Except as amended herein, the Agreement shall continue unmodified in full force and effect. Capitalized terms used in this Amendment but not defined herein shall have the meaning attributed to them in the Agreement. This Amendment is binding on the parties and the respective successors, assigns, transferees and legal representatives of each. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute a single instrument. IN WITNESS WHEREOF, the parties have executed this Amendment to Real Estate Purchase Agreement by their duly authorized representatives as of the date first written above. BECKER CHAPMAN POST 138 OF THE CITY OF WATERLOO, IOWA AMERICAN LEGION By: By: Dale Hixson, Adj 2 By: Ernest G. Clark, Mayor Attest: