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HomeMy WebLinkAboutPO 7260: AUTHORIZING THE SALE OF TWO CITY-OWNED VACANT RESIDENTIAL TRACTS OF LAND P.O. No. 7260 07/12/24 ht ORDINANCE NO. AN ORDINANCE AUTHORIZING THE SALE OF TWO CITY-OWNED VACANT RESIDENTIAL TRACTS OF LAND LOCATED AT 932 WELFORD AVENUE AND 1445 WEST 8TH STREET, AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A SPECIAL WARRANTY DEED FOR THE CONVEYANCE. WHEREAS, on May 21, 2024,the City Council authorized a Motion to sale two (2) city- owned vacant residential tracts of land located at 932 Welford Avenue and 1445 W. 8th Street,by a licensed real estate broker,as set forth in Chapter 272 of the Texas Local Government Code(TLGC); and WHEREAS, pursuant to Section 253.014(b)(d) of the TLGC, the City contracted with a licensed real estate broker to list and market the subject properties for a minimum period of thirty (30)days with a multiple-listing service at fair market value; and WHEREAS,a ready,willing,and able buyer has been produced by the broker,and it is now deemed in the best interest of the City Council to approve the final sale and authorized conveyance to the prospective buyer,The Premcor Refining Group,Inc.,at the appraised value of$3,500.00 each for the total amount of$7,000.00, as specified in Exhibit'A'." NOW THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council finds that the requirements under§253.014 of the Texas Local Government Code have been properly met and that a ready, willing and able buyer was produced by the licensed real estate broker utilizing the multiple listing service. Section 3. That the City Manager is hereby authorized to sell the vacant tracts of land at 932 Welford Avenue and 1445 W. 8th Street to The Premcor Refining Group,Inc.for the fair market value amount of$7,000.00, less the closing and brokerage fees. Section 4. That the final conveyance will be contingent upon closing and execution of a Special Warranty Deed, in substantially the same form attached hereto as Exhibit"B". READ,ADOPTED AND APPROVED on this day of , A.D., 2024, at a Council Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: Councilmembers: NOES: . Thurman Bill Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: PtlitA (3 c 4„, J.1 - . Black, m City Attorney APPROVED I ; • DMI ISTRATION: /INY At\ Ronald B 1' I" City M. .ter EXHIBIT "A" (Contract) EARNEST MONEY CONTRACT 1. PARTIES: City of Port Arthur ("Seller') agree to sell and convey to THE PREMCOR REFINING GROUP INC., a Delaware corporation ("Buyer"),and Buyer agrees to buy from Seller the Property described below. 2. PROPERTY:See attached Exhibit A(the"Property")together with all fixtures and improvements located thereon,and all rights,privileges and appurtenances related thereto. 3. CONTRACT SALES PRICE:$7,000.00("Sales Price").This is an ALL CASH sale;no financing is involved. 4. EARNEST MONEY: Buyer will deposit$500.00(the"Earnest Money")with Texas Regional Title, LLC,7675 Folsom Dr., Bldg 100, Beaumont, TX 77706,phone no.409-861-7333,fax no.409-861-7373("Title Company"),upon execution of this Contract by both parties. 5. INSPECTIONS: Until the Closing Date,Buyer shall have the right, at its sole cost and expense,to enter onto the Property to examine it and to conduct such studies, examinations and tests as Buyer shall deem necessary; provided that Buyer agrees that it will, at its sole cost and expense,promptly repair any damage to the Property caused by it or any of its agents or contractors as a result thereof. Prior to performing any tests at the Property, Buyer will provide Seller with reasonable advance notice. Buyer may terminate this Contract for any reason by sending written notice of termination to Seller by 14 days after the Effective Date. If Buyer sends timely written notice to Seller terminating this Contract pursuant to this Section, this Contract shall be terminated immediately as of the date of that termination notice, the Earnest Money shall be promptly returned to Buyer (except for$100 to be retained by Seller as independent consideration for the Buyer's rights described in this paragraph), and neither party shall have any further obligations to the other hereunder, except to the extent any provision of this Contract provides that it is to survive termination of this Contract. 6. CLOSING:The closing of the sale will occur on(the"Closing Date")August 28,2024,or within 7 days after Title Objections have been cured, whichever date is later. If either party fails to close this sale by the Closing Date, the non-defaulting party shall be entitled to exercise the remedies contained in Section 11 immediately and without notice. 7. POSSESSION: The possession of the Property shall be delivered to Buyer at closing, with no trash or other debris and in broom-clean condition. 8. SALES EXPENSES TO BE PAID IN CASH AT OR PRIOR TO CLOSING. A. Seller's Expenses: Principal, interest, prepayment penalties on any existing loans or other debts or obligations of Seller, paid at closing, plus cost of releasing such loans, debts or other obligations and recording releases; past due ad valorem taxes, penalties and interest; Seller's own attorney's fees,Seller's Broker's commissions incurred,and other expenses incurred by Seller. B. Buyer's Expenses:Except for the expenses to be paid by Seller,all other closing costs shall be paid by Buyer,including,without limitation, recording fees, copies of restrictions and easements, any Owner's Title Policy and any Broker's commissions incurred and agreed to by Buyer in writing. 9. PRORATIONS AND TAXES: Current ad valorem taxes and any rents shall be prorated through the Closing Date, so that Seller will be obligated for that portion of the current year's taxes for the period of time prior to the Closing Date. 10. TITLE APPROVAL: The title to Seller's interest in the Property shall be fee simple, good and indefeasible subject only to: (a) recorded restrictive covenants affecting the Property and approved by Buyer; (b) taxes for the current and subsequent years and subsequent assessments for prior years due to a change in land usage or ownership; (c) existing building and zoning ordinances; (d) rights of parties in possession under written lease agreements approved in writing by Buyer and which are assigned to Buyer with Buyer's written consent at the closing,otherwise there shall be no parties in possession of the Property at the Closing;and(e) utility easements to the platted subdivision of which the Property is a part. If the title commitment obtained by Buyer shows that Seller's interest is subject to exceptions other than those described above,inclusive,then Buyer shall have 15 business days after receiving copies of the relevant documents to make written objections to Seller(the"Title Objections"). Seller shall have 10 days after Buyer notifies Seller of any Title Objections to cure those Title Objections,and the Closing Date shall be extended if necessary, as provided in Section 6 above. If the Title Objections are not satisfied by the extended Closing Date,then this Contract shall terminate and the Earnest Money shall be refunded to Buyer,unless Buyer elects to waive the unsatisfied Title Objections and complete the purchase of the Property. 11. DEFAULT: If Buyer fails to comply herewith,Seller may,as Seller's sole and only remedy,terminate this Contract and retain the Earnest Money as liquidated damages. If Seller is unable to deliver title to the Property in the condition required by this Contract on or before the Closing Date, then Buyer may either: (a)extend the time for performance up to 15 days and the Closing Date shall be extended pursuant to other provisions of this Contract,or(b)terminate this Contract and receive the Earnest Money;if Seller otherwise fails to comply with the terms of this Contract, Buyer may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or(b)terminate this Contract and receive the Earnest Money. Page 1 of 3 CUSTOM 12. ATTORNEYS'FEES: If either party to this Contract is the prevailing party in any legal proceeding brought under or with relation to this Contract or transaction,the prevailing party shall be additionally entitled to recover court costs and reasonable attorneys'fees from the non-prevailing party. 13. REPRESENTATIONS: Seller represents that as of the Closing Date there will be no unrecorded liens, assessments or Uniform Commercial Code security interests against the Property that will not be satisfied out of the Sales Price, and if this representation is untrue on the Closing Date, this Contract may be terminated by Buyer and the Earnest Money shall be refunded to Buyer. All representations contained in this Contract shall survive closing. 14. Intentionally deleted, 15. SUCCESSORS AND ASSIGNS:This Contract shall be binding on and shall inure in the benefit of the parties hereto and their respective heirs, executors, administrators, personal representatives, successors and assigns, it being agreed that Buyer shall have the right to transfer and assign this Contract to a third party. 16. AGREEMENT OF PARTIES: This Contract contains the entire agreement of the parties and cannot be changed except by their written agreement. 17. NOTICES:All notices to or between the parties shall be in writing and effective when delivered at the addresses shown below. 18. CONSULT YOUR ATTORNEY:This is intended to be a legally binding contract READ IT CAREFULLY. Federal law may impose certain duties upon Brokers or signatories to this Contract when any of the signatories is a foreign party, or when any of the signatories receives certain amounts of U.S.currency in connection with a real estate closing. If you do not understand the effect of any part of this Contract, consult your attorney BEFORE signing. 19. EXPIRATION PRIOR TO COMPLETE EXECUTION. If this Contract is not signed by both Seller and Buyer on or before July 15, 2024(the "Expiration Date"),then it shall be void and of no force or effect. 20. EFFECTIVE DATE: The"Effective Date"of this Contract is the date on which the Title Company signs this Contract acknowledging receipt of both a fully executed copy of this Contract and the Earnest Money(as evidenced by the date in Title Company's signature below). SELLER: BUYER: CITY OF PORT ARTHUR THE PREMCOR REFINING GROUP INC., a Delaware corporation By: By: Name: Name: Title: Title: Seller Address for Notices: Buyer Address for Notices: 444 4th Street One Valero Way Port Arthur,TX 77641 San Antonio,TX 78249 Attn: Real Estate Dept. Telephone No.:409-983-8126 Telephone No.:210-345-2720 CONTRACT AND EARNEST MONEY RECEIPT Receipt of a fully executed copy of the Contract and$ Earnest Money is acknowledged on [Date] Texas Regional Title,LLC By: Page 2 of 3 CUSTOM EXHIBIT "B" (Deed) NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM THE INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SPECIAL WARRANTY DEED Date: day of , 2024 Grantor: City of Port Arthur, a municipal corporation Mailing Address (including county): 444 4th Street Port Arthur, Texas 77641-1089 (Jefferson County) Grantee: The Premcor Refining Group, Inc., a Delaware corporation Grantee's Mailing Address (including county): One Valero Way San Antonio, Texas 78249 (Bexar County) Consideration: $10.00 and other good and valuable consideration. Property (including any improvements): See attached Exhibit "A" Reservations from and Exceptions to Conveyance and Warranty: Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty, grants, sells, and conveys to Grantee the Property, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee's heirs, successors, and assigns forever. Grantor binds Grantor and Grantor's heirs and successors to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs,successors,and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof when the claim is by,through, or under Grantor but not otherwise, except as to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty. Easements, rights-of-way, and prescriptive rights, whether of record or not; all presently recorded restrictions, reservations, covenants, conditions, oil and gas leases, mineral severances, and other instruments, other than liens and conveyances, that affect the property; rights of adjoining owners in any walls and fences situated on a common boundary; any discrepancies, conflicts, or shortages in area or boundary lines; any encroachments or overlapping of improvements; property taxes for prior years, the payment for which Grantee assumes; and subsequent assessments for that and prior years due to change in land usage, ownership, or both, the payment of which Grantee assumes; and navigational servitude asserted by any governmental authority. As a material part of the Consideration for this deed, Grantor and Grantee agree that Grantee is taking the Property "AS IS"with any and all latent and patent defects and that there is no warranty by Grantor that the Property has a particular financial value or is fit for a particular purpose. Grantee acknowledges and stipulates that Grantee is not relying on any representation, statement, or other assertion with respect to the Property condition but is relying on Grantee's examination of the Property. Grantee takes the Property with the express understanding and stipulation that there are no express or implied warranties except for limited warranties of title set forth in this deed. Grantor, for the consideration and subject to the reservations from and exceptions to conveyance and warranty,grants, sells, and conveys to Grantee the property, together with all and singular the rights and appurtenances thereto in any wise belonging,to have and hold it to Grantee, Grantee's heirs, executors, administrators, successors, or assigns forever. Grantor binds Grantor and Grantor's heirs, executors, administrators, and successors to warrant and forever defend all and singular the property to Grantee and Grantee's heirs,executors,administrators,successors,and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the reservations from and exceptions to conveyance and warranty, when the claim is by,through, or under Grantor but not otherwise. GRANTOR: CITY OF PORT ARTHUR Ronald Burton, CPM City Manager STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on day of 2024 by Ronald Burton, CPM, City Manager of the City of Port Arthur, Texas. Notary Public, State of Texas 2 EXHIBIT A NUMBER PARCEL ID PHYSICAL ADDRESS LEGAL ADDRESS GEO ID 1 82342 1445 W 8TH W 70'OF LT 13& 051700-000-010800- PORT ARTHUR,TX 77640 LT 14 BLK 7 PEKIN 00000 2 82286 932 WELLFORD AVE LT 22 BLK 3 PEKIN 051700-000-005100- PORT ARTHUR,TX 77640 00000 Page 3 of 3 CUSTOM