HomeMy WebLinkAboutEstate of Ray Frank Cagley-10/13/2014CITY OF WATERLOO, IOWA
COMMUNITY PLANNING AND DEVELOPMENT
715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4366 Fax (319) 291-4262
Council Communication
City Council Meeting: October 13, 2014
Prepared: October 8, 2014
Dept. Head Signature: Noel Anderson, Community Planning & Development Director
# of Attachments: 1
SUBJECT: Resolution approving the Real Estate Purchase Agreement between
the City of Waterloo and Estate of Ray Frank Cagley for the acquisition of the
southerly 14 acres of 3730 Wagner Road in the amount of $100,000, with up to
$10,000 in city environmental and closing costs, and authorizing the Mayor and
City Clerk to sign and fully execute any necessary documents
Submitted by: Noel Anderson, Community Planning & Development Director
Recommended City Council Action: Authorization of the acquisition of site as
described in the amount of $100,000 plus up to $10,000 in City environmental
and closing costs.
Summary Statement: The City of Waterloo has worked to continue to provide for
industrial lots around the Waterloo Regional Airport. The acquisition of this land
will allow for the development of approximately 6 lots along Wagner Road, just
north of many recently developed lots. The City has seen 6 new buildings and
over $1.14 million in new permit value go up in this area in the last 10 years.
The site is served with water and road infrastructure, and the City will need to
extend sewer service up to the sites — along the drainage way in the back where
the other buildings are served. The development of these lots will help to bring
an estimated $$2 million in new taxable value through development, and over 30
new jobs. The City of Waterloo Future Land Use Map, a part of the
Comprehensive Plan, designates this area for industrial development.
Expenditure Required: $100,000 plus up to $10,000 in City environmental and
losing costs
Source of Funds: Airport TIF funds
Policy Issue: Economic Development
Alternative: Not acquire
CITY WEBSITE: www.cityofwaterlooiowa.com
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
Background Information: The City continues to work to acquire sites for
industrial and commercial development. This helps raise the tax base in the City
of Waterloo, bring new jobs, new businesses, new private investment, new permit
fees, new local option sales tax, new sewer fees, new water fees, new population
— which leads to higher amounts of federal funds in many categories, leads to
new commercial, retail, and service investment due to new customers.
Legal Description: 3730 Wagner Road — southerly 14 acres
THE SOUTHERLY 14 ACRES OF PARCEL DESCRIBED AS FOLLOWING:
BEGINNING AT A POINT ON THE WEST LINE OF THE NORTHWEST 1/4 SECTION 3 TOWNSHIP
89 RANGE 13 WHICH IS 1177.69 FEET SOUTH OF THE NORTHWEST CORNER OF SAID
SECTION 3 THENCE NORTH 89 DEGREES 16 MINUTES EAST 230 FEET THENCE SOUTH
102.94 FEET THENCE EAST 159 FEET THENCE SOUTH 58 FEET THENCE EAST 354.78 FEET
THENCE SOUTH 1103.01 FEET TO THE SOUTH LINE OF THE NORTHWEST 1/4 OF SAID
SECTION 3 THENCE SOUTH 88 DEGREES 59 MINUTES WEST ALONG SAID SOUTH LINE 743.9
FEET TO THE SOUTHWEST CORNER OF THE NORTHWEST 1/4 OF SAID SECTION 3 THENCE
NORTH ALONG THE WEST LINE OF SAID NORTHWEST 1/4 1274.21 FEET TO THE POINT OF
BEGINNING EXCEPT ALL HIGHWAYS TITLE #000714269378 VIN #FDMCXMU05650 TITLE
#000714829505 VIN #6021L464 TITLE #000714818596 VIN #60128686,
ALL IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA.
(Plat of survey to be provided if required for transfer)
REAL ESTATE PURCHASE AGREEMENT
TO: g rc t:a crc-A!1 fronK CailfAb ("Seller")
FROM: City of Waterloo, Iowa ("Buyer")
Buyer hereby offers to buy, and the Seller by its acceptance agrees to sell, the real property situated
in Waterloo, Black Hawk County, Iowa, consisting of a portion of assessor parcel no(s). 8913-03-151-005,
roughly 14 acres in area, ; together with any easements and appurtenant servient estates, but subject to
any reasonable easements of record for public utilities or roads, any zoning restrictions customary
restrictive covenants and mineral reservations of record, if any, herein referred to as the "Property," upon
the following terms and conditions:
1. EARNEST MONEY AND PURCHASE PRICE. The Purchase Price shall be $100,000.00. The
entire Purchase Price shall be due and payable in full at closing. If this Agreement is not accepted by
Seller or if it is rescinded by Buyer for failure of title or any other reason provided for in this Agreement,
then the earnest money held in trust shall be returned to Buyer.
2. POSSESSION AND CLOSING. Possession of the Property shall be delivered to Buyer at
closing. Closing shall occur at City Hall, 715 Mulberry Street, Waterloo, within sixty (60) days after
approval of this Agreement by the Waterloo City Council, subject to satisfaction of any conditions stated
in this Agreement.
3. REAL ESTATE TAXES. Seller shall pay taxes prorated to the closing date in accordance with
the provisions of Iowa Code § 427.2, and any unpaid real estate taxes payable in prior years, either
paying Buyer, or giving Buyer a credit, for all of such taxes. Buyer shall pay all subsequent real estate
taxes.
4. SPECIAL ASSESSMENTS. Seller shall pay at time of closing all installments of special
assessments which are a lien on the Property as of closing or which can be verified to be owing as of the
closing date but are not yet certified as a lien. Buyer shall pay all other special assessments or
installments.
5. RISK OF LOSS AND INSURANCE. Seller agrees to maintain existing insurance to the date of
closing and shall bear the risk of loss or damage to the Property to the date of closing. In the event of
substantial damage or destruction prior to closing, the Buyer shall have the option to complete the closing
and receive insurance proceeds regardless of the extent of damages or to declare this Agreement null
and void.
6. FIXTURES. Included with the Property shall be all fixtures that integrally belong to, are
specifically adapted to or are a part of the real estate, whether attached or detached. The following items
shall not be included:
7. CONDITION OF PROPERTY. The Property as of the date of this Agreement, including buildings,
grounds, and all improvements, will be preserved by the Seller in its present condition until closing,
ordinary wear and tear excepted. Seller sells the Property "AS IS" and makes no warranties, expressed
or implied, as to the condition of the Property.
Within 45 days after the acceptance of this Agreement, Buyer may, at its sole expense, have the
property inspected by a person or persons of its choice to determine if there are any environmental or
other deficiencies. Seller shall cooperate in providing reasonable access to Buyer's inspectors. Within
this same period, the Buyer may notify the Seller in writing of any deficiency. The Seller shall immediately
notify the Buyer in writing of what steps, if any, the Seller will take to correct any deficiencies before
closing. The Buyer shall then immediately in writing notify the Seller that (1) such steps are acceptable,
in which case this Agreement, as so modified, shall be binding upon all parties; or (2) that such steps are
not acceptable, in which case this Agreement shall be null and void, and any earnest money shall be
returned to Buyer.
8. ABSTRACT AND TITLE. Buyer, at its expense, shall obtain from an abstract of title to the
Property continued through a date that is within thirty (30) days of the closing, and shall deliver it to
Buyer's attorney for examination. It shall show marketable title in Seller in conformity with this
Agreement, Iowa law, and title standards of the Iowa State Bar Association. The Seller shall make every
reasonable effort to promptly perfect the title. If closing is delayed due to Seller's inability to provide
marketable title, this Agreement shall continue in force and effect until either party rescinds the
Agreement after giving ten days' written notice to the other party. The abstract shall become the property
of Buyer when the Purchase Price is paid in full. Seller shall pay the costs of any additional abstracting
and title work due to any act or omission of Seller, including transfers by or the death of Seller or its
assignees.
9. SURVEY. Buyer may, at Buyer's expense, have the Property surveyed and certified by a
registered land surveyor prior to closing if a survey is required by law. If the survey shows an
encroachment on the Property or if any improvements located on the Property encroach on lands of
others, the encroachments shall be treated as a title defect.
10. ENVIRONMENTAL MATTERS.
A. Seller warrants to the best of its knowledge and belief that there are no abandoned wells,
solid waste disposal sites, hazardous wastes or substances, or underground storage tanks located on
the Property, the Property does not contain levels of radon gas, asbestos, or urea -formaldehyde foam
insulation which require remediation under current governmental standards, and Seller has done
nothing to contaminate the Property with hazardous wastes or substances. Seller warrants that the
property is not subject to any local, state, or federal judicial or administrative action, investigation or
order, as the case may be, regarding wells, solid waste disposal sites, hazardous wastes or
substances, or underground storage tanks. Any exceptions to the warranties set forth above are fully
described on a separate addendum attached hereto.
B. Seller hereby represents that, to the best of its knowledge and belief, there is no active or
abandoned septic tank or septic system on the property, except as described here:
C. Buyer may, at Buyer's expense, have the Property inspected further for the existence of any
hazardous materials, substances, or wastes. Seller shall cooperate in providing reasonable access
to Buyer's inspectors and engineers. If hazardous materials, substances, or wastes are discovered
on the Property, Buyer's obligation hereunder shall be contingent upon the removal of such materials,
substances, conditions or wastes or other resolution of the matter reasonably satisfactory to Buyer.
However, in the event Seller is required to expend any sum in excess of $1,000 to remove any
hazardous materials, substances, conditions or wastes, Seller shall have the option to cancel this
transaction and refund to Buyer all earnest money paid and declare this Agreement null and void.
The expense of any action necessary to remove or otherwise make safe any hazardous material,
substances, conditions or waste shall be paid by Seller, subject to Seller's right to cancel this
transaction as provided above.
11. DEED. Upon payment of the Purchase Price, Seller shall convey the Property to Buyer by
warranty deed, free and clear of all liens, restrictions, and encumbrances except as provided in this
Agreement. General warranties of the title shall extend to the time of delivery of the deed excepting liens
and encumbrances suffered or permitted by Buyer.
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12. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If Seller, immediately preceding
acceptance of the offer, holds title to the Property in joint tenancy with full rights of survivorship, and the
joint tenancy is not later destroyed by operation of law or by acts of the Seller, then the proceeds of this
sale, and any continuing or recaptured rights of Seller in the Property, shall belong to Seller as joint
tenants with full rights of survivorship and not as tenants in common; and Buyer in the event of death of
any Seller, agree to pay any balance of the price due Seller under this contract to the surviving Seller and
to accept a deed from the surviving Seller consistent with Paragraph 15.
13. JOINDER BY SELLER'S SPOUSE. Seller's spouse, if not a title holder immediately preceding
acceptance, executes this Agreement only for the purpose of relinquishing all rights of dower, homestead,
and distributive share or in compliance with Section 561.13 of the Code of Iowa and agrees to execute
the deed or real estate contract for this purpose.
14. STATEMENT AS TO LIENS. If Buyer intends to assume or take subject to a lien on the Property,
Seller shall furnish Buyer with a written statement prior to closing from the holder of such lien, showing
the correct balance due.
15. USE OF PURCHASE PRICE. At time of settlement, funds of the Purchase Price may be used to
pay taxes and other liens and to acquire outstanding interests, if any, of others.
16. 1031 EXCHANGE. N/A.
17. APPROVAL OF COURT. N/A.
18. REMEDIES OF THE PARTIES.
A. If Buyer fail to timely perform this Agreement, Seller may forfeit it as provided in the Iowa Code
(Chapter 656), and all payments made shall be forfeited; or, at Seller's option, upon thirty days'
written notice of intention to accelerate the payment of the entire balance because of Buyer's default
(during which thirty days the default is not corrected), Seller may declare the entire balance
immediately due and payable. Thereafter this Agreement may be foreclosed in equity and the Court
may appoint a receiver.
B. If Seller fails to timely perform this Agreement, Buyer has the right to have all payments made
returned to it, or Buyer may require specific performance by Seller.
C. Buyer and Seller are also entitled to utilize any and all other remedies or actions at law or in
equity available to them, and the prevailing parties shall also be entitled to obtain judgment for costs
and attorney fees.
19. NOTICE. Any notice under this Agreement shall be in writing and be deemed served when it is
delivered by personal delivery or mailed by certified mail, addressed to the parties at the addresses given
below.
Seller: rstccre a' 7 fro"Y ley
3730 Wagner Road
Waterloo, Iowa 50703
Buyer: City of Waterloo
715 Mulberry Street
Waterloo, IA 50703
Attn: Community Planning & Development Director
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20. GENERAL PROVISIONS. In the performance of each part of this Agreement, time shall be of the
essence. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a
waiver of any existing or subsequent default. This Agreement shall apply to and bind the successors in
interest of the parties. This Agreement shall survive the closing. This Agreement contains the entire
agreement of the parties and shall not be amended except by a written instrument duly signed by Seller
and Buyer. Paragraph headings are for convenience of reference and shall not limit or affect the meaning
of this Agreement. Words and phrases herein shall be construed as in the singular or plural number, and
as masculine, feminine or neuter gender according to the context.
21. NO REAL ESTATE AGENT OR BROKER. Neither party has used the service of a real estate
agent or broker in connection with this transaction.
22. ADDITIONAL PROVISIONS AND CONTINGENCIES.
A. The parties acknowledge that Buyer is acquiring the Property for economic development
purposes. Buyer's rights and duties under this Agreement are assignable to any person or entity
that will further the community development objectives contemplated by Buyer.
B. Notwithstanding any signatures below by representatives of Buyer, this Agreement is expressly
subject to approval by the city council of Buyer.
C. Closing is contingent upon completion of environmental review and Buyer's receipt of clearance
from state/federal agencies as to same. This contingency is material to Buyer's funding for the
Property purchase.
D. Closing is contingent on Seller terminating all tenancies and removing all occupants and
possessions from the Property before Closing. Seller shall indemnify Buyer and hold it harmless
with respect to any and all claims of Seller or any third party for loss, damage or destruction of
any personal property or fixtures left on the Property after Closing. This provision shall survive
the Closing.
E. Seller shall receive full farming lease, if any, for this current crop season.
23. ENTIRE AGREEMENT. This Agreement represents the entire agreement between the parties,
superseding all prior or contemporaneous understandings, negotiations, discussions, or agreements
between the parties with respect to the subject matter hereof.
24. ACCEPTANCE. When accepted, this Agreement shall become a binding contract. If not
accepted by Seller on or before , 2014, this Agreement shall be null and void.
Dated /07/t l'�
BUYER
City of Wa)iloo, Iowa
B
y�
Mayor
Attest:
Accepted by Seller
SELLER
£5Th1 e o E K f-pcs. V- C a 9 (e.f
By: (20-a-, A '
e -i°` 14 �Dtor� �1� e e.4 Tog
By:
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EIN: 7-043 ?23