2139 RESOLUTION NO. Q 13 cI
A RESOLUTION TO APPROVE THE PURCHASE AND SALE
AGREEMENT BETWEEN THE CITY OF WEST MEMPHIS,
ARKANSAS, AND G. W. AND CARYL SORRELLS,AND
AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE
THE AGREEMENT ON BEHALF OF THE CITY OF WEST MEMPHIS.
WHEREAS, G.W. and Caryl Sorrells, as Sellers, and the City of West Memphis,
Arkansas, as Purchaser,have entered into an agreement for the Purchaser to acquire The East
Twenty(20) feet of Lot 1 and the West Thirty(30) feet of Lot 2 of the M.L. Thompson
Subdivision, 3`d Addition to the City of West Memphis,Arkansas, more commonly known as
504 - 506 East Broadway in West Memphis, Arkansas; and
WHEREAS,the intended use of the property,together with adjacent property to be
acquired, is to construct a new public library; and
WHEREAS,the purchase of the property has been approved by the Board of Trustees of
the West Memphis Public Library; and
WHEREAS,the City Council of the City of West Memphis, Arkansas, finds that the
Purchase and Sale Agreement is in the best interests of the City of West Memphis and the West
Memphis Public Library and that the Mayor and the City Clerk should be authorized to execute
the agreement on behalf of the City of West Memphis;
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WEST MEMPHIS,ARKANSAS,THAT the Purchase and Sale Agreement between
G. W. And Caryl Sorrells, and the City of West Memphis,Arkansas, is hereby approved and the
Mayor and the City Clerk are hereby authorized to execute the agreement on behalf of the City of
West Memphis, and to take any and all other actions as may be necessary or appropriate to
effectuate the agreement.
ADOPTED this (11_day of , 2017.
WILLIAM H,. JOHNSON, MAYOR
ATTEST:
PHILLI , CITY CLERK
RECEIVED
City Clerk' 401"DO
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PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made effective
as of the day of June, 2017 (the "Effective Date"), by and between the CITY OF WEST
MEMPHIS, a body politic and corporate of the State of Arkansas, ("Purchaser") and G.W. and
Caryl Sorrells (`Sellers").
RECITALS
A. Sellers are the owners in fee simple of approximately .22 acre of land located in
the City of West Memphis, Crittenden County, Arkansas (the "Tract") and more fully described
as:
The East Twenty (20) feet of Lot 1 and West Thirty (30) feet of Lot 2 in the M.L.
Thompson Subdivision, P addition to the City of West Memphis, also known as 504-506 E.
Broadway.
B. Sellers desire to sell to Purchaser, and Purchaser desires to purchase from Sellers,
the Property (as hereinafter defined), upon the terms and conditions hereafter provided.
NOW, THEREFORE, the parties, in consideration of the sum of Ten Dollars ($10.00),
receipt of which is hereby acknowledged, as well as the mutual promises and covenants herein
contained, intending to be legally bound,do hereby agree as follows:
ARTICLE 1
AGREEMENT TO PURCHASE AND SELL;PURCHASE PRICE
1.1 Property. Subject to the terms and conditions set forth in this Agreement and the
Schedules and Exhibits attached hereto, Sellers agree to sell to Purchaser, and Purchaser agrees
to purchase from Sellers,the following(collectively,the"Property'):
(a) The Lots, together with all appurtenances, hereditaments, easements, oil,
gas, mineral and similar rights, air or subsurface rights, adverse possession claims, reversionary
rights, all right, title, interest, and benefit, if any, of Sellers in and to adjacent streets, roads,
alleys, and sewers (public or private; open or closed), and all other rights, approvals, privileges,
and entitlements belonging to or running with the Lots(collectively,the "Land");
(b) Any buildings, improvements and fixtures located on the Land
(collectively, the"Improvements"and together with the Land,the"Real Property"); and
(c) All of Sellers rights, title and interest in and to all intangible property
pertaining to and used in connection with the ownership, construction, use and/or operation of
the Real Property, including, without limitation, (i) all guaranties, warranties,permits, approvals,
licenses, plans and specifications, and (ii) any and all water and water rights, wells, well rights
and well permits, water and sewer taps, sanitary or storm sewer capacity or reservations and
rights under utility agreements with any applicable governmental or quasi-governmental entities
or agencies with respect to the providing of utility services to the Real Property, together with
any and all impact fee or utility credits with respect thereto (collectively, the "Intangible
Property").
1.2 Purchase Price. In consideration of the sale of the Property to Purchaser,
Purchaser shall pay to Sellers the sum of FORTY THOUSAND and NO/100 DOLLARS
($40,000.00), (the "Purchase Price"), subject to adjustment and proration in accordance with
this Agreement. The Purchase Price shall be paid by Purchaser as follows:
(a) A deposit of Ten Percent (l0%) of the Purchase Price, i.e., the sum of
FOUR THOUSAND and NO/100 Dollars ($4,000.00) (together with all interest earned thereon,
the "Deposit') to be deposited by Purchaser with Escrow Agent (as hereinafter defined), by wire
transfer of immediately available federal funds within two (2) business days after the expiration
of the Due Diligence Period (as hereinafter defined);
(b) The balance of the Purchase Price at Closing, by wire transfer of
immediately available federal funds to an account designated in writing by Sellers at least five
(5) business days prior to Closing.
1.3 Deposit. The parties hereto direct Crittenden Title & Escrow, LLC ("Escrow
Agent") to place the Deposit in an account in a federally insured bank or savings and loan
association, which account will, at Purchaser's election, be an interest bearing account. Escrow
Agent is not responsible for levies imposed by taxing authorities based upon the taxpayer
identification number used to establish any interest bearing account. The Deposit shall be
applied to the Purchase Price at Closing or otherwise released in accordance with this
Agreement. The following provisions, together with other provisions of this Agreement which
specifically concern the Deposit, shall govern disposition of the Deposit by Escrow Agent:
(a) If either Sellers or Purchaser believes that it is entitled to the Deposit, it
shall make written demand therefore upon Escrow Agent. Escrow Agent shall promptly give the
other party written notice of such demand, including a copy of such demand. The non-
demanding party shall have the right to object to the delivery of the Deposit to the demanding
party by giving Escrow Agent written notice of such objection at any time within five (5)
business days after receipt of such notice from Escrow Agent, but not thereafter. Any such
objection notice shall set forth the basis for objection to the delivery of the Deposit to the
demanding party. Upon receipt of such objection notice, Escrow Agent shall promptly give
notice of such objection, including a copy thereof, to the party making the demand for the
Deposit. If Escrow Agent does not receive any objection notice from the non-demanding party
within said period of five (5) business days, Escrow Agent shall promptly (i) deliver the Deposit
to Purchaser, if Purchaser made the demand, or(ii) deliver the Deposit to Sellers, if Sellers made
the demand.
(b) If Escrow Agent shall have received a notice of objection from Sellers or
Purchaser in accordance with subsection (a) above, Escrow Agent shall continue to hold the
Deposit until (i) Escrow Agent receives a notice signed by both Sellers and Purchaser directing
the disposition of the Deposit, in which case Escrow Agent shall deliver the Deposit in
accordance with such direction, or (ii) litigation arises between Sellers and Purchaser, in which
event Escrow Agent may tender the Deposit with the court in which such litigation is pending.
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In the event of a dispute among any one or more of Purchaser, Sellers, and Escrow Agent as to
the proper disposition by Escrow Agent of all or any portion of the Deposit, Purchaser and
Sellers authorize Escrow Agent to commence an action in the form of interpleader by depositing
the Deposit into a court of competent jurisdiction which shall determine the respective rights of
Purchaser and Sellers. Purchaser and Sellers agree to pay and share equally all costs, damages,
judgments and expenses, including reasonable attorneys' fees, suffered or incurred by Escrow
Agent in connection with or arising out of this Agreement, including a suit in interpleader
brought by Escrow Agent upon the advice of counsel to Escrow Agent; In the event of an action
between Purchaser and Sellers, the prevailing party shall be entitled to reimbursement of any
such sums from the non-prevailing party. Purchaser and Sellers hereby indemnify and hold
harmless Escrow Agent from and against any and all liability which it may incur in connection
with any and all actions taken by it in good faith pursuant to this Agreement except for Escrow
Agent's own willful default or gross negligence.
(c) Escrow Agent shall act as an accommodation party to Purchaser and
Sellers. Escrow Agent may act upon any instrument or other writing believed by it in good faith
to be genuine and to be signed and presented by the proper person; and Escrow Agent shall not
be liable in connection with the performance of any duties imposed upon Escrow Agent by the
provisions of this Agreement, except for Escrow Agent's own willful default or gross
negligence. Escrow Agent, acting as escrow agent, shall have no duties or responsibilities except
those set forth in this Agreement and under the laws of the State of Arkansas. Escrow Agent
shall not be bound by any modification of this Agreement unless the same is in writing and
signed by both Purchaser and Sellers; if the modification affects the duties of Escrow Agent
hereunder,the Escrow Agent shall have given written consent to such modification.
ARTICLE 2
DUE DILIGENCE
2.1 Right of Inspection.
(a) During the period beginning on the Effective Date and ending at 5:00
p.m., CST, on the date which is sixty (60) days after the Effective Date (the "Due Diligence
Period"), Purchaser shall have the right, at Purchaser's expense, to inspect and investigate the
Property, including, without limitation, title, environmental condition, physical condition and
suitability of the Property for Purchaser's development, and to examine any files in the
possession and/or control of Sellers relating to the Property, including, without limitation, title
insurance policies, surveys, environmental studies, permits and approvals. Sellers shall
cooperate, and cause its agents and representatives to cooperate, with Purchaser to facilitate
Purchaser's inspections and investigations, including providing Purchaser with access to the
Property. Purchaser shall repair any damage to the Property directly caused by its physical
inspections and/or tests; provided, however, Purchaser shall have no obligation or liability to
remediate any environmental condition existing on or at the Property.
(b) Sellers represent and warrant to Purchaser that Sellers have delivered to
Purchaser for Purchaser's inspection, on or before the Effective Date, true and complete copies
of any land surveys, title insurance policies, and any environmental, structural or other written
inspection reports or assessments of the Property in Sellers' possession or control. Following the
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date hereof, Sellers shall deliver to Purchaser any additional land surveys, title insurance
policies, and any environmental, structural or other written inspection reports or assessments of
the Property that come into Sellers' control or possession within five(5) business days of receipt
thereof or any other documents, reports or assessments reasonably requested by Purchaser within
five(5) business days of request.
2.2 Right of Termination.
(a) Sellers agree that Purchaser shall have the right to terminate this
Agreement, based upon any unsatisfactory results of Purchaser's inspections pursuant to Section
2_1, by giving notice thereof to Sellers prior to the expiration of the Due Diligence Period. If
Purchaser gives such notice of termination prior to the expiration of the Due Diligence Period,
this Agreement shall terminate, and thereafter neither party hereto shall have any further rights,
obligations or liabilities hereunder except those expressly stated to survive termination of this
Agreement. If Purchaser fails to terminate this Agreement pursuant to this Section 2.2 prior to
the expiration of the Due Diligence Period, Purchaser shall no longer have any right to terminate
this Agreement under this Section 2.2.
(b) Purchaser shall have the unilateral right to shorten the Due Diligence
Period by giving notice to Sellers at any time prior to the expiration of the Due Diligence Period.
If Purchaser gives such notice, the last day of the Due Diligence Period for purposes of this
Agreement shall be the date set forth in such notice.
ARTICLE 3
TITLE AND SURVEY
3.1 Title Commitment, Survey. During the Due Diligence Period, Purchaser shall
obtain from a title insurance company selected by Seller (the "Title Company"), at Sellers'
expense, a title insurance commitment (the "Title Commitment") covering the Land. During
Due Diligence Period, Purchaser may obtain, at Purchaser's expense, a survey of the Real
Property (the "Survey').
3.2 Title Objections; Cure of Title Objections.
(a) Purchaser shall have until the expiration of the Due Diligence Period to
notify Sellers of such objections as Purchaser may have to anything contained in the Title
Commitment or the Survey("Objections"). Any item contained in the Title Commitment or any
matter shown on the Survey to which Purchaser does not so object prior to expiration of the Due
Diligence Period shall be deemed a Permitted Exception (as hereinafter defined). In the event
Purchaser shall notify Sellers of any Objections prior to expiration of the Due Diligence Period,
Sellers shall have the right, but not the obligation, to elect to attempt to cure such Objections.
Within five (5) business days after receipt of Purchaser's notice of Objections, Seller shall notify
Purchaser whether Sellers elect to attempt to cure such Objections. If Sellers fail to give
Purchaser such notice of election, then Sellers shall be deemed to have elected not to attempt to
cure the Objections. If Sellers elect to cure, Sellers shall have until the date of Closing to
remove, satisfy or cure the same. If Sellers elect not to cure any Objections specified in
Purchaser's notice, Purchaser shall have the following options: (i)to accept a conveyance of the
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Property subject to the Permitted Exceptions, specifically including Objections which Sellers
elected not to cure, and without reduction of the Purchase Price; or (ii) to terminate this
Agreement by sending notice thereof to Sellers within five (5) business days after Sellers'
election notice has been given (or deemed given), whereupon this Agreement shall terminate,the
Deposit (if then on deposit with Escrow Agent) shall be returned to Purchaser, and thereafter
neither party shall have any further rights, obligations or liabilities hereunder except those
expressly stated to survive termination of this Agreement. If Purchaser does not so timely notify
Sellers within such five (5) business day period, then Purchaser shall be deemed to have elected
to accept the conveyance under clause (i) of the preceding sentence. If Sellers notify Purchaser
that Sellers intend to cure any Objection, and thereafter Sellers fail to effect a cure, such failure
shall constitute a default by Sellers under this Agreement, and Purchaser shall be entitled to
exercise its remedies under Section 7.2.
(b) Whether or not Purchaser shall have furnished Sellers any notice of
Objections pursuant to subsection (a), Purchaser may, within five (5) business days of receipt of
notice thereof, notify Sellers of any Objections to matters raised by the Title Company or the
surveyor which were not disclosed in the original Title Commitment or Survey. With respect to
any such Objections, Sellers shall have the same option to cure and Purchaser shall have the
same option to accept title subject to such Objections or to terminate this Agreement as set forth
in subsection (a); provided, however, if the existence of such title or survey matters otherwise
constitutes a default by Sellers under this Agreement, Purchaser shall be entitled to exercise its
remedies under Section 7.2.
(c) Notwithstanding anything to the contrary in this Agreement, Sellers shall
be obligated to cure liens against the Property evidencing mortgages, security deeds,judgments,
mechanics and materialmen's liens, tax liens and other monetary encumbrances which can be
removed by payment of liquidated amounts, and any liens or encumbrances created by Sellers on
or after the Effective Date ("Required Cure Items"), regardless of amount and regardless of
whether Purchaser objects to such Required Cure Items.
(d) "Permitted Exceptions" means (i) the lien of all real estate taxes (if any)
not yet due and payable as of the date of Closing, subject to adjustment as provided in this
Agreement; (ii) all matters, whether or not of record, that arise out of the actions of Purchaser or
its agents or contractors; and (iii) items appearing in the Title Commitment (or any update
thereto) or shown on the Survey (or any update thereto) and, in either case, not objected to by
Purchaser or waived or deemed waived by Purchaser in accordance with Sections 3.2(a) or Lb)
hereof.
3.3 Conveyance of Title. At the Closing, Sellers shall convey to Purchaser
marketable and insurable fee simple title to the Property, subject only to the Permitted
Exceptions.
3.4 Costs. The costs of the Title Commitment, the cost of recording releases of any
Required Cure Items, and any other instruments that are not Permitted Exceptions shall be bome
by Sellers. The costs of surveys and any premiums for title insurance obtained for Purchaser or
any lender of Purchaser shall be borne by Purchaser.
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ARTICLE 4
CONDITIONS TO CLOSING
4.1 Conditions for Purchaser. Purchaser shall not be obligated to close this
transaction until all of the following requirements and conditions for the Closing have been
satisfied or, in the sole judgment of Purchaser, expressly waived in writing by Purchaser:
(a) As of the date of this Agreement and the date of Closing, all
representations and warranties of Sellers contained herein shall be true and correct in all material
respects.
(b) The performance by Sellers, in all material respects, of each and every
undertaking, covenant and agreement to be performed by Sellers hereunder.
(c) Title to the Property shall be in the condition required by this Agreement,
and the Title Company shall have irrevocably committed and agreed to issue to Purchaser an
owner's title insurance policy, insuring Purchaser's fee simple interest in the Property free and
clear of liens, claims and encumbrances other than the Permitted Exceptions, and otherwise in
form, substance and amount acceptable to Purchaser.
(d) Purchaser's receipt of all written agreements, commitments, arrangements
and other evidence satisfactory to Purchaser in Purchaser's sole discretion to the effect that, at
the boundary of any Lot contiguous to a public street, (i) public sewer treatment and capacity is
immediately available on a permanent basis for the effluent from the Property as intended to be
developed, (ii) sufficient public water is immediately available to service the improvements
intended to be developed on the Property, and (iii) electric, gas and other utilities are available at
the Property.
(e) Purchaser has determined, in Purchaser's sole discretion, that streams and
existing drainage features at the Property can be relocated from their respective current locations.
(f) Purchaser has determined, in Purchaser's sole discretion, that Purchaser's
intended use of, and operation at, the Property will not violate any covenant or restriction
encumbering the Property.
(g) No lawsuit, appeal or other action shall have been filed by any party,
directly or indirectly, involving the Property, including without limitation, any lawsuit, appeal or
other action for the purpose of challenging, contesting or seeking to prohibit, restrain, enjoin or
delay any Approvals for Purchaser's development or use of the Property.
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(h) There shall exist no moratorium or other action or directive by any
governmental authority which would prohibit, restrain, enjoin or delay Purchaser from
constructing and using improvements on the Property in accordance with Purchaser's plans.
(i) The purchase and sale is subject to the approval of the City of West
Memphis Library Board in accordance with Ark. Code Ann. Section 13-2-503(c)(1)(A).
0) The purchase and sale is conditioned upon the closing of the purchase and
sale for adjacent property owned by Vernon D. Turk d/b/a Turk Properties and Lois E. Carter.
If any of the conditions precedent set forth in this Section 4.1 are not satisfied, deemed satisfied
or waived by Purchaser at or prior to Closing, then Purchaser may elect to terminate this
Agreement, in which event the Deposit (if then on deposit with Escrow Agent) shall be returned
to Purchaser and the parties shall have no further liability or obligation hereunder except those
stated to survive termination of this Agreement; provided, however, that if the failure of the
condition constitutes a default by Seller under this Agreement, Section 7.2 shall apply.
Conditions for Sellers. Sellers shall not be obligated to close this transaction until
all of the following requirements and conditions for the Closing have been satisfied or, in
Sellers' sole judgment,expressly waived in writing by Sellers:
(k) Representations and Warranties. As of the date of this Agreement and the
date of Closing, all representations and warranties of Purchaser contained herein
shall be true and correct in all material respects.
(1) Performance by Purchaser. The performance by Purchaser, in all material
respects, of each and every undertaking, covenant and agreement to be performed
by Purchaser hereunder.
If any of the conditions precedent set forth in this Section 4.2 are not satisfied, deemed satisfied
or waived by Sellers at or prior to Closing, then Sellers may elect to terminate this Agreement in
which event the Deposit (if then on deposit with Escrow Agent) will be held by Escrow Agent as
set forth in Section 1.3; provided, however, that if the failure of the condition constitutes a
default by Purchaser under this Agreement, Section 7.1 shall apply.
ARTICLE 5
CLOSING
5.1 Closin The consummation of the transactions contemplated hereby (the
"Closin ") shall be held through escrow deposits with the Title Company on the date which is
ten (10) business days after expiration of the Due Diligence Period, or such earlier date as may
be selected by Purchaser upon not less than three (3) business days' prior notice from Purchaser
to Sellers; provided that Purchaser may elect to extend the date of Closing for up to thirty (30)
days in the aggregate by delivering notice to Sellers at any time prior to the then-scheduled date
for Closing. At Closing, Sellers and Purchaser shall perform the obligations set forth in,
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respectively, Section 5.2 and Section 5.3, the performance of which obligations shall be
concurrent conditions.
5.2 Sellers' Deliveries in Escrow. At the Closing, Sellers shall deliver, or cause to be
delivered, to Purchaser the following documents:
(a) A general warranty deed in the form attached hereto as Exhibit A (the
"Deed"), executed by Sellers;
(b) An affidavit duly executed by Sellers stating that Sellers are not a"foreign
person" as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the
1986 Tax Reform Act;
(c) A closing statement in form and substance consistent with this Agreement
(the"Closing Statement"), executed by Sellers;
(d) Such affidavits and other indemnities or undertakings executed by Sellers
sufficient for the Title Company to eliminate from the owner's title policy and any lender's title
policy the "gap"exception and the standard printed exceptions;
(e) Evidence of existence, organization, and authority of Sellers and the
authority of the person executing documents on behalf of Sellers, reasonably satisfactory to
Purchaser and the Title Company; and
(f) Such additional documents as Purchaser or the Title Company may
reasonably require for the proper consummation of the transactions contemplated by this
Agreement.
5.3 Purchaser's Deliveries in Escrow. At the Closing, Purchaser shall deliver, or
cause to be delivered, to Sellers the following:
(a) The Purchase Price;
(b) The Closing Statement, executed by Purchaser;
(c) Such additional documents as Sellers or the Title Company may
reasonably require for the proper consummation of the transactions contemplated by this
Agreement.
5.4 Prorations; Taxes.
(a) The sale contemplated herein is exempt from transfer tax pursuant to Ark.
Code Ann. Sec. 26-60-102(1).
(b) Real estate taxes, water and sewer rentals, and gas, electricity, and other
public utility company charges, if any, shall be apportioned on a per diem basis, with relation to
the fiscal year or billing period, as applicable, of the levying authority. If accurate prorations and
other adjustments cannot be made at Closing because current bills or statements are not
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obtainable (as, for example, utility and real property tax bills), the parties shall prorate on the
best available information (which, in the case of real property taxes, shall mean the most recent
real property tax bill), subject to adjustment on receipt of the final bill or statement. Both Sellers
and Purchaser shall use good faith efforts to resolve such post-Closing prorations and other
adjustments as expeditiously as possible.
(c) All apportionments under this Agreement, if any, shall be computed on a
daily basis utilizing a 365-day year. For the purpose of apportionments, Closing shall be deemed
to have occurred at 11:59 p.m. on the day preceding Closing so that Purchaser shall be deemed to
own the Property on the day of Closing.
(d) All other costs and expenses in connection with the transactions
contemplated by this Agreement not mentioned above or elsewhere in this Agreement shall be
borne by Sellers and Purchaser in the manner in which such costs and expenses are customarily
allocated between the parties in commercial real estate sales/purchases in Crittenden County,
Arkansas.
(e) The obligations of the parties under this Section 5.4 shall survive the
Closing or any earlier termination of this Agreement.
ARTICLE 6
REPRESENTATIONS,WARRANTIES AND COVENANTS
6.1 Sellers' Representations and Warranties. Sellers represent and warrant to
Purchaser, both as of the Effective Date and as of the date of Closing, as follows:
(a) Sellers are married persons. This Agreement and all agreements,
instruments and documents herein provided to be executed by Sellers have been or, as
applicable, will be duly executed and delivered by Sellers and constitutes or will constitute valid
and binding obligations enforceable against Sellers in accordance with their terms. Neither the
execution and delivery of this Agreement and all documents contemplated hereunder to be
executed by Sellers, nor the performance of the obligations of Sellers hereunder or thereunder
will conflict with, or result in a breach of, the terms, conditions or provisions of, or constitute a
default under, any agreement to which Sellers are a party or by which Sellers or the Property is
otherwise bound.
(b) Sellers are the sole legal owner of good and marketable fee simple interest
in and to the Tract.
(c) There is no action or proceeding pending or, to Sellers' knowledge,
threatened against: (i) Sellers which would affect Sellers' ability to execute, deliver or perform
this Agreement and consummate the transactions contemplated hereby; or(ii)the Property.
(d) There are no unpaid bills or claims that may give rise to a lien against the
Property.
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(e) Sellers have received no notice, and Sellers have no knowledge, that the
Property violates any applicable laws, ordinances, rules, regulations or requirements of any
governmental authority or instrumentality having jurisdiction over the Premises.
(f) Except as contemplated by this Agreement, there are no proceedings
pending or, to Sellers' knowledge, threatened, to challenge, change or redefine the present
zoning classification of all or any portion of the Property. Except as contemplated by this
Agreement, Sellers have not entered into any agreement with or application to any governmental
authority with respect to any zoning modification, variance, exception, subdivision, platting or
other similar matter affecting the Property.
(g) Sellers have no knowledge of any pending improvements, liens, special
assessments, impositions or increases in assessed valuations to be made against the Property by
any governmental authority. Sellers have not filed, and has not retained anyone to file, notices of
protests against, or to commence action to review, real property tax assessments against the
Property, which protests or actions are still unresolved.
(h) No petition in bankruptcy(voluntary or,to Sellers' knowledge, otherwise),
assignment for the benefit of creditors or petition seeking reorganization or arrangement or other
action under federal or state bankruptcy or insolvency laws is pending against or contemplated
by Sellers.
(i) Sellers have no knowledge of any condemnation, eminent domain or
similar proceedings pending or,threatened to be initiated with regard to the Property.
(j) There are no leases or other agreements in effect with respect to any
portion of the Property, whether written or oral, that permit possession or occupancy of any
portion of the Property by any person, firm, corporation, trust or other entity, nor are there any
adverse or other parties in possession of or occupying all or any portion of the Property. Except
for Purchaser's rights under this Agreement, no person, firm, corporation, trust or other entity
has any right or option to acquire the Property or any part thereof.
(k) Except as may be approved by Purchaser in its sole discretion in
connection with any Approvals, there are no commitments or agreements which would require
Purchaser to pay any money or perform any obligation or which would otherwise affect the
ownership or development of the Property by Purchaser.
(1) Sellers have no knowledge of any adverse or nonexclusive claim of right,
action, object, or impediment which would prevent the property from having now and/or in the
future uninterrupted, direct and free vehicular access, ingress and egress rights to and from a
dedicated public roadway.
(m) Sellers have no knowledge of any adverse fact relating to the physical
condition of the Property for commercial construction purposes that is not readily observable or
has not been specifically disclosed in writing to Purchaser, including by way of example but not
limitation landfills, sink holes, fault lines, other geological conditions,or adverse soil conditions.
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(n) Sellers have no knowledge of any archaeological, anthropological, or
historical finds,objects or any endangered or threatened species in, on, or about the Property. To
Sellers' knowledge, no portion of the Property constitutes a "critical habitat" as such term is
defined in the Endangered Species Act of 1973, as amended.
6.2 Purchaser's Representations and Warranties. Purchaser represents and warrants
to Sellers, both as of the Effective Date and as of the date of Closing, as follows:
(a) Organization and Authority. Purchaser (i) is a body politic and corporate
of the State of Arkansas and has the right and all necessary power and authority to enter into and
deliver this Agreement, consummate the transactions contemplated herein and fulfill all of its
obligations hereunder and under all documents contemplated hereunder to be executed by
Purchaser. This Agreement and all documents contemplated hereunder to be executed by
Purchaser, have been duly authorized by all governmental corporate or other required action on
the part of Purchaser and are the valid and legally binding obligation of Purchaser, enforceable in
accordance with their respective terms. Neither the execution and delivery of this Agreement
and all documents contemplated hereunder to be executed by Purchaser, nor the performance of
the obligations of Purchaser hereunder or thereunder will: (i) violate any of the provisions of its
founding and governing documents (such as charters, codes, constitutions, laws, articles of
incorporation or bylaws); or (ii) conflict with, or result in a breach of, the terms, conditions or
provisions of, or constitute a default under, any agreement to which Purchaser is a party or by
which Purchaser is otherwise bound.
(b) Pending Actions. There is no action or proceeding pending or, to
Purchaser's knowledge, threatened against Purchaser which would affect Purchaser's ability to
execute, deliver or perform this Agreement and consummate the transactions contemplated
hereby.
(c) OFAC. Sellers are not persons with whom Purchaser is restricted from
doing business under the regulations of the Office of Foreign Asset Control ("OFAC") of the
Department of the Treasury of the United States of America (including those persons named on
OFAC's specially Designated Nationals and Blocked Persons List) or under any statute,
executive order (including the September 24, 2001 Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism)
or other governmental actions and is not and shall not knowingly engage in any dealings or
transactions or act, directly or indirectly, for or on behalf of any such persons or otherwise be
associated with any such persons.
6.3 Covenants. Between the Effective Date and Closing, Sellers shall:
(a) Operate and maintain the Property in its present condition and in
compliance with all applicable zoning ordinances and any other acts, ordinances or regulations
affecting the use and improvement thereof;
(b) Not permit any person, firm, corporation, trust or other entity to use or
occupy the Property for farming, gardening or other agricultural purposes;
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(c) Keep the Property insured up to and including the date of Closing against
fire and other hazards covered by extended coverage endorsement and comprehensive public
liability insurance against claims for bodily injury, death and property damage occurring in, on
or about the Property with such insurance at the same coverage levels and amounts as in effect
on the Effective Date;
(d) Not make, or permit or cause to be made, any alterations, improvements or
additions to the Property without Purchaser's prior written consent, which may be withheld in
Purchaser's sole discretion;
(e) Not mortgage or further encumber the Property or execute any deeds,
easements, covenants, conditions, restrictions or other matters affecting title to the Property;
(f) Not market, or permit or cause to be marketed, the Property for sale or
lease, nor negotiate, solicit or accept or permit or cause the negotiation, solicitation or acceptance
of any offers for the sale or lease of the Property, whether or not binding;
(g) Not use,manufacture, store, generate, handle, or dispose of any Hazardous
Substances, or use or permit the Tract to be used for such purposes, or emit, release or discharge
any such Hazardous Substances into the air, soil, surface water or groundwater comprising the
Tract;
(h) Not enter into any lease or other agreement or contract affecting the
Property or any part thereof,
(i) Not take any action or omit to take any action, which action or omission
would reasonably be expected to result in any of the representations and warranties of Sellers
failing in any material respect to be true and correct as of the date of Closing; and
0) Promptly deliver to Purchaser copies of all notices received by Sellers
affecting the Property, including without limitation, any pending zoning changes or amendments,
notices of violations affecting the Property and notices of pending or threatened condemnation of
the Property or any roads adjacent thereto.
6.4 Approvals.
(a) The term "Approvals"shall mean any and all permits,approvals, licenses,
consents, agreements and the like necessary or desirable for Purchaser's intended development,
construction, use and operation of the Property, and shall include, without limitation: (i) site plan
approvals; (ii)sanitary sewer, drainage and other utility permits (including without limitation,
sewer connection and extension permits); (iii) zoning permits, special or conditional use
permits, variances and/or rezoning approvals (including, without limitation, any necessary
variances permitting outdoor storage); (iv)environmental and wetland certifications, approvals,
licenses, permits and the like, whether local, state or federal (including, without limitation,
wetland mitigation approvals, relocation approvals, and water management district approvals, if
applicable); (v)access permits, including, without limitation, any required curb cut permits or
median break permits; (vi)sign permits, approvals and/or variances for Purchaser's exterior
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building, directional, and pylon signs; and (vii) any and all approvals required under any
restrictive covenants or other encumbrances applicable to the Property.
(b) Commencing on the Effective Date, Purchaser shall have the right to apply
for and pursue Approvals. All conditions and restrictions imposed by applicable authorities as
prerequisites or conditions precedent or subsequent to the Approvals (including, without
limitation, the payment of impact fees or construction of on-site or off-site improvements) shall
be subject to Purchaser's approval and acceptance and Purchaser shall not be required to accept
any Approvals unless it agrees, in its sole discretion, to accept such conditions and restrictions.
Purchaser shall have final approval over all site plans, water management plans, conditions, and
studies submitted to governmental entities in connection with the Approvals.
(c) Sellers agree to cooperate with Purchaser's efforts to obtain the Approvals.
Sellers agree that it will, at Purchaser's request, sign all applications for Approvals and shall not
oppose any of Purchaser's efforts to obtain the Approvals.
ARTICLE 7
DEFAULT REMEDIES
7.1 Purchaser Default. If: (i) Purchaser is in default of any of its obligations
hereunder; (ii) any of Purchaser's representations or warranties are untrue in any material
respect; or (iii)the Closing otherwise fails to occur by reason of Purchaser's failure or refusal to
perform its obligations hereunder in a prompt and timely manner, then Sellers may elect as
Seller's sole and exclusive remedy, either to: (a)terminate this Agreement by notice to Purchaser
and proceed to recover the deposit as set forth in Section 1.3. (if then on deposit with Escrow
Agent) or (b)waive the default and proceed to Closing. If this Agreement is so terminated,
thereafter, neither party shall have any further rights or obligations under this Agreement, except
those expressly stated to survive termination.
7.2 Sellers Default. If: (i) Sellers are in default of any of its obligations hereunder;
(ii)any of Sellers' representations or warranties are untrue in any material respect; or (iii)the
Closing otherwise fails to occur by reason of Sellers' failure or refusal to perform its obligations
hereunder in a prompt and timely manner, then Purchaser shall have the right to elect, in its sole
discretion, either to: (a)terminate this Agreement, in which event the Deposit (if then on deposit
with Escrow Agent) shall be returned to Purchaser and thereafter neither party shall have any
further rights or obligations under this Agreement, except those expressly stated to survive
termination, (b) waive the default and proceed to Closing; (c) seek specific performance of this
Agreement by Sellers; provided that any action by Purchaser for specific performance must be
filed, if at all, within ninety (90) days after Sellers' default; and/or (d) exercise any and all other
rights and remedies available at law or in equity.
ARTICLE 8
CONDEMNATION AND CASUALTY
8.1 Condemnation. Sellers shall immediately notify Purchaser of any pending or
threatened condemnation relating to the Property of which Sellers receive notice or obtains
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knowledge. Purchaser may, at its option, by notice to Sellers given within fifteen (15) business
days after Purchaser is notified of such actual or possible proceedings (but before the Closing)
terminate this Agreement, whereupon the Deposit (if then on deposit with Escrow Agent) shall
be returned to Purchaser and all further rights and obligations of the parties under this Agreement
shall terminate, except those stated to survive termination of this Agreement. If Purchaser does
not elect to terminate this Agreement as aforesaid, then Purchaser shall be deemed to have
elected to proceed with Closing, in which event, the transaction shall proceed as contemplated
herein, provided, however, that (a) Sellers shall not take any action with respect to such
condemnation, including settlement or compromise of any claims, without Purchaser's prior
consent, which may be withheld in Purchaser's sole discretion, and (b) Sellers shall, at Closing,
(i) assign and remit to Purchaser, and Purchaser shall be entitled to receive and keep, the
proceeds of any award or other proceeds of such taking which may have been collected by
Sellers, or (ii) if no award or other proceeds shall have been collected, deliver to Purchaser an
assignment of Sellers' right to any such award or other proceeds which may be payable to Sellers
as a result of such taking.
8.2 Casualty. Risk of loss to the Property from fire or other casualty shall be borne
by Sellers until Closing. Sellers shall immediately notify Purchaser of any fire or other casualty
affecting the Property. Purchaser may, at its option, by written notice to Sellers given within
fifteen (15) business days after Purchaser is notified of such fire or other casualty (but before the
Closing) terminate this Agreement, whereupon the Deposit (if then on deposit with Escrow
Agent) shall be returned to Purchaser and all further rights and obligations of the parties under
this Agreement shall terminate, except those stated to survive termination of this Agreement. If
Purchaser does not elect to terminate this Agreement as aforesaid, then Purchaser shall be
deemed to have elected to proceed with Closing, in which event, the transaction shall proceed as
contemplated herein, provided, however, that (a) Sellers shall not take any action with respect to
such fire or other casualty, including settlement or compromise of any insurance claims, without
Purchaser's prior consent, which may be withheld in Purchaser's sole discretion, and (b) Sellers
shall, at Closing, assign and remit to Purchaser, and Purchaser shall have the right to make a
claim for and to retain, all insurance proceeds with respect to such fire or other casualty, and
Sellers shall credit Purchaser any deductible due in connection with such claim at Closing.
ARTICLE 9
MISCELLANEOUS
9.1 Commissions. Purchaser and Sellers each represent and warrant to the other party
that it has not dealt with any broker, agent, finder or other intermediary in connection with this
Agreement. Purchaser (on the one hand) and Sellers (on the other hand) each agrees to
indemnify, defend and hold the other harmless of, from and against any damages, costs, claims,
losses or liabilities whatsoever(including reasonable attorneys' fees) arising from any breach by
the foregoing respective representation and warranty by Purchaser or Sellers. This Section 9.1
shall survive the Closing or any earlier termination of this Agreement.
9.2 Parties Bound; Assi ng_ment. Purchaser shall have the right to assign this
Agreement provided that Purchaser shall give notice to Sellers of such assignment at least ten
(10) business days prior to the Closing. Sellers shall not have the right to assign this Agreement
without the prior written consent of Purchaser, and any such assignment or attempted assignment
14
without such consent shall be void and shall constitute a default by Sellers under this Agreement.
Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors and assigns.
9.3 Construction, Invalidity; Waiver. Headings at the beginning of each Section in
the Agreement are solely for the convenience of the parties and are not a part of this Agreement.
Whenever required by the context of this Agreement and the exhibits attached hereto, the
singular shall include the plural and the masculine shall include the feminine and vice versa. The
parties acknowledge that each party and each party's counsel have reviewed and revised this
Agreement and that the normal rule of construction (i.e., that any ambiguities are to be resolved
against the drafting party will not be employed in the interpretation of this Agreement or any
exhibits or amendments hereto. If any portion of this Agreement is held invalid or inoperative,
then so far as is reasonable and possible the remainder of this Agreement shall be deemed valid
and operative, and effect shall be given to the intent manifested by the portion held invalid or
inoperative. The failure by either party to enforce against the other any term or provision of this
Agreement shall not be deemed a waiver of such party's right to enforce against the other party
the same or any other such term or provision.
9.4 Provisions Survive. The provisions of this Agreement and the documents to be
delivered in connection herewith shall survive the Closing and shall not be merged into the
instruments of Closing.
9.5 Governing Law. This Agreement and said other instruments shall, in all respects,
be governed, construed, applied and enforced in accordance with the state in which the Property
is located, without regard for principles of conflicts of law.
9.6 No Third Party Beneficiary. This Agreement is not intended to give or confer any
benefits, rights, privileges, claims, actions or remedies to any person or entity as a third party
beneficiary, decree,or otherwise.
9.7 Entirety and Amendments. This Agreement (including the Exhibits attached
hereto) embodies the entire agreement between the parties and supersedes all prior agreements
and understandings relating to the Property. This Agreement may be amended or supplemented
only by an instrument in writing executed by the party against whom enforcement is sought.
9.8 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, and all of such counterparts shall constitute one
Agreement. To facilitate execution of this Agreement, the parties may execute and exchange by
facsimile or email counterparts of the signature pages.
9.9 Further Assurances. In addition to the acts and deeds recited herein and
contemplated to be performed, executed and/or delivered by Sellers to Purchaser at the Closing,
Sellers agree to perform, execute and/or deliver or cause to be delivered, executed and/or
delivered, but without any obligation to incur any additional liability or expense, after the
Closing any and all further acts, deeds and assurances as may be reasonably necessary to
consummate the transactions contemplated hereby and/or to further perfect and deliver to
Purchaser the conveyance of the Property and all rights related thereto.
15
9.10 Time. Time is of the essence in the performance of each and every term,
condition and covenant contained in this Agreement. Unless otherwise specified, in computing
any period of time described herein, the day of the act or event after which the designated period
of time begins to run is not to be included and the last day of the period so computed is to be
included, unless such last day is not a business day, in which event the period shall run until the
end of the next business day. For purposes of this Agreement, a "business day" shall be a day
which is not a Saturday, Sunday or legal holiday in the State of Arkansas.
9.11 U. S. Currency Required. All sums referred to herein shall be in currency of the
United States of America.
9.12 Notices. All notices from either party required or permitted hereunder shall be in
writing and shall be served on the parties at the following address:
If to Sellers: G.W. and Caryl Sorrells
P.O. Box 624
West Memphis,AR 72303
Facsimile:
If to Purchaser: City of West Memphis
P.O. Box 1728
West Memphis,AR 72303
Attn: Mayor
Facsimile: (870) 732-7504
with copy to:
West Memphis City Attorney
P. O. Box 1728
West Memphis,AR 72303
Facsimile: (870)732-7514
Any such notices shall be sent by (i) United States registered or certified mail, with
postage prepaid and domestic Return, Receipt requested (which shall be deemed given two (2)
business days after deposit); (ii) nationally recognized overnight courier for next business day
delivery (which shall be deemed given on the date of deposit with the courier); (iii) hand
delivered (which shall be deemed given when delivered); or (iv) facsimile transmission with a
hard copy sent on the same day by a nationally recognized overnight courier for next business
day delivery (which shall be deemed given on the date of the facsimile transmission). The above
addresses may be changed by notice to the other party; provided, however, that no notice of a
change of address shall be effective until actual receipt of such notice.
(WAIVER OF TRIAL BY JURY. PURCHASER AND SELLERS EACH HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON,ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY DOCUMENT
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EXECUTED OR CONTEMPLATED TO BE EXECUTED IN CONJUNCTION WITH
THIS AGREEMENT.
[SIGNATURE PAGE FOLLOWS]
17
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have
executed this Agreement under seal on the day and year first above written.
PURCHASER:
CITY OF WEST MEMPHIS,ARKANSAS,
ATTEST: a body politic and corporate of the State of
Arkansas
Name: fz',</i.r,,. -d ✓��d�sc,�/
Title:�a�_
SELLERS:
ATTEST:
;G.W. SO LLS
CARYL RRELLS
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EXHIBIT A
FORM OF DEED
This Instrument Prepared By:
WARRANTY DEED
KNOW ALL BY THESE PRESENTS:
THAT G.W. Sorrells and Caryl Sorrells, husband and wife, ("Grantors"), for and in
consideration of the payment of Ten Dollars ($10,00)and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, does hereby grant, bargain, sell
and convey unto The City of West Memphis,a body politic and corporate of the State of
Arkansas (`Grantee"), and unto its successors and assigns forever, the real property located in
the City of West Memphis, Crittenden County,Arkansas more particularly described in Exhibit
A attached hereto,together with any and all improvements thereon, together with all rights,
tenements,hereditaments, easements,appendages, privileges and appurtenances pertaining
thereto, (collectively, the"Premises").
TO HAVE AND TO HOLD the same unto the said Grantee and unto Grantee's
successors and assigns forever;provided, however, the Premises are conveyed by Grantor subject
to those matters set forth in the attached Exhibit B (the"Permitted Encumbrances").
Grantor hereby covenants with Grantee that it will forever warrant and defend the title to
the Premises against all lawful claims whatsoever, subject to the Permitted Encumbrances.
IN WITNESS WHEREOF,this instrument is executed by Grantor as of June,
?017.
G.W. S RRELLS, Grantor
a�U4 1, 4
CARYL SCARELLS, Grantor
19
ACKNOWLEDGMENT
STATE OF ARKANSAS )
) ss:
COUNTY OF CRITTENDEN )
On this day, before me,the undersigned, a Notary Public,duly commissioned, qualified
and acting, within and for said County and State, appeared in person G.W. SORRELLS AND
CARYL SORRELLS, and who executed and delivered said foregoing instrument for the
consideration, uses and purposes therein mentioned and set forth.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal this -2ee day
of June, 2017.
My commissionr�YOOTAIJ
L�
Y Notary Public
(SEAL) �.PUB OC'
2
. C
I certify under penalty of perjury that documentary stamps or a
documentary symbol in the amount required by law have been
placed on this instrument. Exempt or no consideration paid if none
shown.
GRANTEE or AGENT:
Address:
All property tax statements should be sent to
Grantee at the following address:
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