HomeMy WebLinkAbout2022-08-03-R RESOLUTION#
A RESOLUTION AUTHORIZING THE SALE OF THE CURRENT BATESVILLE
POLICE DEPARTMENT TO BAD BOY MOWERS,LLC
WHEREAS, the Batesville Police Department is currently located 51 Industrial Drive,
Batesville,Arkansas;and
WHEREAS,Bad Boy Mowers,LLC continues to expand and wishes to purchase said
property in order to facilitate expansion of their production capacity; and
WHEREAS, the City of Batesville is committed to the continued success and growth of our
local and regional businesses; and
WHEREAS, the City wishes to have a more centrally located Police Department.
NOW,THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE
CITY OF BATESVILLE,ARKANSAS
SECTION 1:That the City of Batesville hereby authorizes the sale of the Batesville Police
Department located at 51 Industrial Drive, Batesville,Arkansas for the purchase price of$15300,000,
more or less to Bad Boy Mower,LLC,per the real estate purchase agreement which is attached
hereto and incorporated herein by reference.
PASSED AND APPROVED this day of August, 2022.
El , Mayor
1 o Batesville
ATTEST:
Denise Johnston Clerk
City of Batesville
CONTRACT FOR THE SALE OF REAL PROPERTY
THIS AGREEMENT made between the City of Batesville (the Seller), Arkansas
and Bad Boy Mowers, LLC (the Buyer), WITNESSETH:
1. Agreement of sale and Purchase: The Seller hereby agrees to sell and the
Buyer agrees to purchase the following described real property in Batesville,
Independence County, Arkansas, for the price, on the terms, and subject to the
conditions hereinafter set forth:
SEE ATTACHED EXHIBIT "A"
2. Purchase Price: The Buyer hereby agrees to pay and the Seller agrees to
accept the sum $1,300,000 to be paid as set out herein below:
a) $1,300,000 will be due from the Buyer at closing.
b) The Buyer will also pay the costs of transfer, closing costs, land surveys, legal
descriptions, and any applicable deed stamps and/or filing fee along with the fees of the
title company at closing.
c) As further consideration of said purchase, Buyer agrees to enter into a lease
agreement with Seller upon the closing of said property per the terms of the attached
lease.
SEE ATTACHED EXHIBIT"B"
d) The following list of items WILL NOT convey with the sale of the real property:
i. All office furniture;
ii. Filing cabinets;
iii. Copy machines;
iv. Three flat screen televisions;
V. Server cabinet and contents;
vi. All computer equipment;
vii. Wall mounted camera charging bases (5);
viii. Telephone equipment;
ix. Four post vehicle lift;
X. Air compressor;
xi. Vehicle vacuum cleaner;
xii. Generac Generator;
xiii. Kitchen table;
xiv. Rolling tool box& tools;
xv. Gun safe; and
xvi. Any personal property not affixed to the real property.
3. Title Documents. If the Buyer shall make the payment herein called for in
paragraphs 2(a) and 2(b) and the Seller shall make, execute and deliver to the Buyer the
Seller's warranty deed conveying the property free and clear of all liens and
encumbrances.
4. Taxes. As an Arkansas Municipality, Seller is does not pay property taxes
under Arkansas Law. Buyer agrees that Buyer will pay taxes for all subsequent to the
closing, if any are due.
5. Insurance and Risk of Loss. The Seller agrees to maintain in full force and
effect a policy or policies of fire and extended coverage insurance covering the
improvements on the above-described property with good and solvent insurance
companies, in amounts at least equal to the full insurance value of the improvements on
the above-described property, through the date of closing.
6. Possession. The Buyer shall be entitled to possession of the property upon the
end of the leasehold attached hereto as Exhibit "B".
7. Time of the Essence. The time of making payments and keeping of the
agreements herein made between the parties is specifically made of the essence of
this agreement.
8. Fixtures and Attached Equipment. Unless specifically excluded herein (see
2(d)) all fixtures and attached equipment, if any, are included in the Purchase Price. Such
fixtures and attached equipment shall include, but not be limited to the following: water
heaters, exhaust fans, heating and air condition systems, plumbing and septic systems
electrical system, carpeting, indoor and outdoor light fixtures, window and door
coverings and related hardware, and any other items bolted, nailed, screwed, buried or
otherwise attached to the Property in a permanent manner.
9. Warranties and Buyer's Right to Inspect: The Seller warrants and represents
however, that there are no known latent defects, that would pose a health or safety risk to
individuals occupying the property that would not be revealed by a reasonable inspection
of the subject property. Any defects or conditions will be communicated by the Buyer to
the Seller within 30 days of the execution of this agreement and the Seller will have a
reasonable time to correct or remedy said defects. If the Buyer and Seller cannot agree on
any repair item, either party may cancel this contract.
10. AS IS Sale: Buyer hereby certifies that Buyer has personally inspected the real
estate as fully as Buyer desires and is not relying and shall not hereafter rely upon any
warranties, representations or statements of Seller or Seller's representatives as to age,
size, quality, value or condition of improvements, if any, whether or not defects may be
reasonable discoverable by Buyer. Buyer agrees to purchase the real estate in its present,
"AS-IS" condition.
11. Buyer's Responsibilities:
a) Buyer will pay the payments to the Seller as contemplated in paragraph 2.
b) Buyer shall enter into the lease attached hereto as Exhibit "B" upon closing.
12. Brokerage: Each party warrants and represents to the other that no brokerage
commission is due to any person, firm, or entity with respect to this Purchase Agreement
except as set forth above and each party agrees to indemnify and hold the other party
harmless with respect to any judgment, damages, legal fees, court costs, and any and all
liabilities of any nature whatsoever arising from a beach of said representation.
13. Survival of Contract: The terms and conditions of this Contract and the
obligations hereto shall apply, inure to the benefit of and be binding upon the heirs,
personal representatives, successors and assigns of the parties.
14. Sellers Responsibilities:
a) The seller will convey the real property described in exhibit "A" by Warranty
Deed at closing.
15. Incorporation by Reference:
a) That Lease Agreement, a copy of which is attached hereto as exhibit "B" is
incorporated by reference.
16. Assignability: Neither buyer nor seller shall have the right to assign the
Contract without the other party's prior written consent.
17. Notices: Unless otherwise specifically provided herein, all
notices to be given hereunder shall be in writing and sent to the parties at their respective
addresses set forth below, either by hand delivery, Federal Express (or other such
overnight carrier) prepaid, or by certified mail, return receipt requested, postage prepaid
notice.
If to Seller: City of Batesville
500 East Main Street
Batesville, AR 72501
If to Buyer: Bad Boys Mowers, LLC
102 Industrial Drive
Batesville, AR 72501
18. Other Remedies in Event of Default: Should there be a default on the part
of Buyer of any of the conditions of this agreement the Seller will have the benefit of all
remedies that exist under Arkansas law in addition to retaking the property.
19. Closing: The closing will be through a mutually agreeable title/closing
company within sixty days of the execution of this agreement.
20: Execution: This contract shall become binding only when executed by the
buyer and by the seller, and shall be in force and effect from that date of such execution.
That seller's execution hereof is subject to the approval of the Batesville City Council,
and shall not be deemed to be executed until the date of approval by said council.
Executed in duplicated originals this�day of of 2022.
SELLER:
City of Batesville
By: / -4,&. /, ,
Rick Elumbaugh, Mayor
BUYER:
Bad Boy Mower LLC
By:
Agent for Bad Boy wers, LLC
THIS INSTRUMENT PERPARED BY:
Timothy Meitzen
City Attorney
500 East Main Street Ste.303
Batesville,AR 72501
(870)307-0050
EXHIBIT -I to
A tract of land being a part of the South Half of the Southeast Quarter of Section 4,Township 13 North,
Range 06 West,in the City of Batesville,Independence Count},Arkansas, more particularly described as
follows-Commencing at the Southwest corner of said South Half-, thence N 01"34'49" E,681.18 feet;
thence N 89°43'27"E,918.43 feet to the Southeast corner of the Bad Boy Mower Tract,and the point of
beginning;thence N oo" 13'56"E along the East line of said Bad Boy Mower Tract,400.35 feet to the
South right of way line of Industrial Drive; thence along said right of way line the following;S 87" 19'54"
E.127.38 feet;along a curve to the left,said curve having a radius of 930.00 feet, an arc length of 298.84
feet and a long chord bearing and distance 0f 297.55 feet; N 74* 1 26" E 137.44 feet; along a curve to the
right,said curve having a radius of 200.00 feet, a tangent of 131.80 feet,a long;chord bearing and
distance of S 720 21'19" E,220.11 feet;S 380 58' 14" E, 23.99 feet to the nominal South crud'West right of
way tine of U.S.Highway No.167(North St. Louis Street); thence along;said South and Nest right of way
line the following;S 51*01'46"W,i20.'78 feet; S 45' 27'03"'4 ,363.17 feet; S 390 o8',56"W, 61.38 feet to
the North line of the Bad Boy Mowers Tract; thence, leaving said South and West right of way line,S 89'
43'27"W,along the North line of said Bad Boy Mower Tract,390.14 feet to the point of beginning.This
Tract contains 5.77 acres,more or less,and is subject to any and all easements.
Less and except the following.which was part of the foretlOing legal descriptloll :tticl %%as
previously purchased from the seller by the htiyer:
A 2.o4 ACRE,MORE OR LESS,TRACT OF LAND BEING PART OF THE,Sr/2 OF THE SF.1/4 OF SE( FION
4,TOWNSHIP 13 NORTH,RANGE 6 WEST, INDEPENDENCE COUNI"S',ARKANSAS, MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SW CORNER OF SAID SEI/4;THENCE N 01*0347" E A DISTANCE OF 681.18
FEET TO A CALCULATED POINT;THENCE.N 89°12'25" E A DIS"TA2tiCE OF 918.43 FEET TO A FOUND
1/2"REBAR,REPRESENTING THE POINT OF BEGINNING;THENCE ZN o0°17'o6"W A DISTANCE:OF
400.35 FEET TO A FOUND 1/2"REBAR ON THE SOUTH RIGHT OF WAY OF INDt s,rRIAI.DRIVE:;
THENCE,ALONG SAID SOLrl'H RIGHT OF WAY,S 87°50'56" E A DISrANC;E OF 127.38 FEE:,TO A
CALCULATED POINT;THENCE,ALONG SAID SOUTH RIGHT OF WAY,WIT14 A CURVE TURNING TO
THE LEFT,HAVING AN ARC LENGTH OF 102.48 FEET, HAVING A RADIUS OF 9;I0.00 FEET, 1UkX NC,A
CHORD BEARING OF N 88*5939"E,AND A CHORD LENGTH OF 102.43 FEET TO A SL-1'1/2"REBAR;
THENCE,LEAVING SAID SOUTH RIGHT OF WAY AND ALONG A ROW OF ORA`GI?POLFS.S ot134t4.,c,
W A DISTANCE OF 161.55 FEET TO A PLASTIC ORANGE POLE SF,T IN ASPHAIJ-,THENC'F.,ALONG A
ROW OF ORANGE POLES AND THE EXTENSION THEREOF,S 00007'29" E A DISTANCE Or 232.78 F}:F:1'
TO ASET 1/2"REBAR;THENCE S 89012'25"W A DISTANCE OF 223.79 FEET BACK TO THE POINT OF
BEGINNING OF SAID 2.04 ACRE,MORE OR LESS.TRACT.
Said property is commonly known 51 Industrial Drive. Batesville, At-k:crlsa%.
EXHIBIT `B"
LEASE AGREEMENT
WHEREAS,the Bad Boy Mower, LLC Company,hereinafter referred to as ("Lessor")has
agreed to lease to the City of Batesville hereinafter referred to as ("Lessee"), the lands hereinafter
described upon the terms and conditions set forth herein; and
WHEREAS, LESSOR and LESSEE desire to commit the terms of their agreement to
writing and for that purpose join in the execution of this instrument.
NOW, THEREFORE, in consideration of the premises, and in consideration of the
following conditions and agreements,the LESSOR hereby leases, demises and lets to the LESSEE
the lands hereinafter described upon the terms and conditions set forth herein:
1. The lands hereby leased by LESSOR to LESSEE, and hereinafter referred to as the
demised premises, are situated in Batesville, Independence County, Arkansas, and more
particularly described as the office building, shops, and contiguous parking lot located at 51
Industrial Drive Batesville,Arkansas commonly known as the Batesville Police Department. Said
leasehold being more particularly described in Exhibit "A" which is attached to the Real Estate
Purchase agreement executed contemporaneously with this lease agreement.
2. The initial term of this lease shall be a period of (1) One year commencing on
, 2022.
3. The rental for the term of this lease shall be the sum of(10)ten dollars for the entire
one-year lease.
4. That it is the intent of the Lessee to leave said leasehold as soon as Lessee is able
to move into another property suitable to house the Batesville Police Department. Lessee shall
give Lessor sixty days notice of its intent to leave the Lease. Should Lessee be unable to secure
another appropriate property within one year, said lease shall become a month-to-month tenancy,
with monthly payments of five-thousand dollars ($5,000) per month being due to the first day of
the initial term and the same day of each succeeding month. City shall have a duty to use due
diligence in acquiring adequate facilities to house the Batesville Police Department. Failure of
the Lessee to use all due diligence in said acquisition shall constitute default. Lessor will not end
said monthly tenancy so long as Lessee is using due diligence to secure another location for the
Batesville Police department. Absent another agreement by the parties this lease will terminate
twenty-four months after the day the lease term begins.
5. The taxes, if any, on the demised premises shall, during the initial term and any
renewal term of the lease, be paid by LESSOR.
6. LESSOR shall provide, carry, and keep in fore, throughout the term of this Lease
Agreement, or any renewals thereof, fire, windstorm, and other casualty insurance upon the
structures on the demised premises as well as for any landlord-owned furnishings with an
insurance company authorized to so business within the State of Arkansas, the amount of such
insurance to be not less than the fair market value of the insurable improvements upon the demised
premises.
7. LESSEE proposes to use the premises as the headquarters for the Batesville Police
Department. LESSOR agrees to allow LESSEE to install phone/cable/utility lines, or other
necessary non-permanent, removable improvements, provided they may be removed without
damage to the structure or the contiguous lot at the conclusion of the lease period.
8. LESSOR shall not be responsible for any LESSEE's property upon the demised
premises,nor shall LESSOR carry insurance for of LESSEE's property. Should LESSEE desire to
insure any of its property upon the demised premises, it may, at its option appropriate insurance
coverage at its expense.
9. LESSOR agrees to perform all major repairs to the structures in order to keep the
buildings and contiguous lot in a safe and functional condition, including, but not limited to
repairing roofing, windows, structural damages, heating, cooling, electrical, and plumbing
systems. LESSEE shall report any major problems or damages to LESSOR immediately.
10. LESSEE shall be responsible for payments of all utilities for the demised premises.
11. LESSEE shall be responsible for all routine and minor maintenance.
12. LESSOR agrees that LESSEE shall have full and exclusive possession of the
demised premise during the term of this lease, and LESSOR further warrants that LESSEE shall
have quite possession of the demised premises and LESSOR shall defend LESSEE against any
adverse claim to the tight of possession of the demised premises during the term of this lease.
Lessor understands that while it has a right to reasonable access to the property for repairs and
inspection, it cannot due so without the oversight of the Batesville Police Department due to
security and evidence concerns.
13. In the event the demised premises are sold by LESSOR during the term of this lease
agreement, any such transactions shall be subject to LESSEE's leasehold interest, and the new
owner must agree to honor this lease for its duration.
14. Upon the termination of this Lease Agreement,the LESSEE agrees to immediately
surrender possessions of the demised premise to the LESSOR, and LESSOR shall not be guilty of
trespass nor in any way liable to LESSEE for retaking possession of the demised premises in such
event.
15. In the event of any material breach of this Lease Agreement, either party shall have
the option of giving the other THIRTY (30) days' written notice to cure such breach, and if said
breach is not cured within THIRTY(30) days from receipt of such written notice, the party giving
notice shall have the option of immediately terminating this Lease Agreement. The failure to
exercise this option as regards any particular breach shall in no event be constructed as a waiver
of the option to terminate the Lease Agreement with respect to any future breach.
16. In the event of the taking by a competent authority for any public use or purposes
of the premises or a substantial part thereof(including public access and parking) so that in the
opinion of the LESSEE the remaining portion is unusable for the purpose of LESSEE, then the
term hereby granted shall cease on the day prior to vesting title in such authority. Rent shall be
paid to and adjusted as to that day and this Lease Agreement shall terminate on that day.
17. This Agreement shall be binding upon the parties hereto, their successors, heirs,
administrators,executors,and assigns.No subletting shall be permitted without the express written
consent of LESSOR, which shall not be unreasonably withheld.
18. LESSOR agrees that it will notify LESSEE if, within the term of the lease, the
LESSOR intends to sell the premise and shall have a period of THIRTY(30) days within to agree
to purchase the property upon the same terms and conditions of any bona fide offer received by
LESSOR for the purchase of the property. LESSOR shall give such notice,in writing. The election
to purchase pursuant to this right of first refusal shall be, in order to be effective, in writing,
addressed to LESSOR,at the address provided herein for all other notice,by certified mail,postage
prepaid and postmarked not later than midnight on the THIRTIETH (301") day after notice has
been received by LESSEE at the provided herein for all other notices.
19. All notices require or permitted to be given hereunder shall be given in writing and
shall be sent by Untied States mail,postage prepaid, addressed as follows(or to such other address
to which any party hereto shall have given the written notice):
If to LESSEE: City of Batesville
500 East Main Street
Batesville, AR 72501
If to LESSOR: Bad Boys Mowers, LLC
102 Industrial Drive
Batesville, AR 72501
Notice to any LESSOR or any LESSEE shall be deemed notice to all LESSORS or LESSEES.
20. It is agreed by the parties hereto that the forgoing terms of this Lease Agreement
express and embody the entire agreement of the parties hereto concerning the demised premises
and the lease thereof. This Lease Agreement is binding upon personal representatives, heirs,
successors, and assigns of all parties.
Executed in duplicated originals this day of of2022.
LESSEE:
City of Batesville
By:
Rick Alum a4uZ&�;�
LESSOR:
Bad Boy Moweqrs, LL
By:
Agent or Bad Boy wers, LLC
THIS INSTRUMENT PERPARED BY:
Timothy Meitzen
City Attorney
500 East Main Street Ste.303
Batesville,AR 72501
(870)307-0050