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HomeMy WebLinkAboutL&H Farms, Ltd.-12/21/20154 MEMORANDUM OF AGREEMENT REGARDING PRORATING OF REAL ESTATE TAXES This Agreement is entered into as of December 23, 2015, by and between L & H Farms, Ltd. ("L&H") and the City of Waterloo, Iowa ("City"). RECITALS A. L&H and City are parties to a certain Exchange Agreement by which L&H will convey to City, as part of an exchange of like -kind real estate, certain real property described as: The South 203.8 feet of the North 749.35 feet of the North Half of the Southwest Quarter (N 1/2 SW ''A) in Section No, 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian, Black Hawk County, Iowa, EXCEPT that part thereof conveyed to the City of Waterloo in a deed filed March 14, 2012 as Doc. No. 2012-16922 in the Office of the Black Hawk County Recorder (the "Real Estate"). B. The purpose of this Agreement is to confirm the parties' agreement regarding the manner in which real estate taxes will be prorated. The parties acknowledge that the Exchange Agreement requires that taxes for the Real Estate are to be prorated to the closing date for the sale and purchase of the Real Estate, i.e., December 31, 2015. 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 that L&H will pay the full tax bills for the Real Estate that are due on or before September 30, 2015 and March 31, 2016. Concurrently with said payment, L&H will also deliver a check in the amount of $193.10, payable to the Black Hawk County Treasurer, to the office of City's legal counsel, namely, Clark Butler Walsh & Hamann, 315 E. 5t'' Street, Waterloo, Iowa, 50703, Attn: Chris Wendland. City's legal counsel will be responsible for remittance of said check to the treasurer's office as a prepayment of L&H's prorated share of the September 2016 tax installment. The parties acknowledge that the sum of $193.10 is a good -faith estimate based on currently available information. The parties also acknowledge that, when tax bills are issued in August 2016, the Real Estate will not be taxed as a separate parcel from the larger parcels of which it is a portion, but that the treasurer's office has indicated that taxes otherwise attributable to the Real Estate will not be included in said tax bills for the larger parcels. The August 2016 tax bills for the larger parcels will be the full and sole responsibility of L&H. The parties agree to cooperate reasonably and in good faith, and to take such further steps as inay be reasonably necessary or advisable, to carry out the purpose and intent of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives as of the date first set forth above. L & H FARMS, LTD. CITY OF WATERLOO, IOWA By:(1 / ` t i'✓ B �t� Z Curtis G. Hollis, President Ernest G. Clark, Mayor Attest: Suzy Se ares, City Clerk