HomeMy WebLinkAboutPR13256: PURCHASE KCS PROPERTYINTER
MEMO
OFFICE
Manager
To: Mayor, City Council & City ~ ~..j~,_~
From: Mark T. Sokolow, City Attorney
5 200
September 27, 20
Subject: P. R. No. 13256 Council Meeting 5
Date: September 16, 2005
Attached is P.R. No. 13256 as it pertains to a purchase
agreement of KCS Property by the City of Port Arthur and the City
of Port Arthur Section 4A Economic Development Corporation. Mr.
Ebeling has indicated that KCS would agree to a sixty (60) day
extension.
MTS:ts
Attachment
cc: VIA FACSIMILE (816) 983-1375 Glenn Ebeling
KANSAS CITY SOUTHERN RAILWAY COMPANY
VIA FACSIMILE (409) 835-2115
Kate McGlynn
GERMER & ~ERTZ
VIA FACSIMILE (409) 962-4445
Ms. Jana Barnes
z .pr13256 .memo
09/~5/05 ~
RESOLUTION NO.
A RESOLUTION AS IT PERTAINS TO A PURCHASE
AGREEMENT OF KCS PROPERTY BY TEE CITY OF
PORT ARTHUR AND TEE CITY OF PORT ARTHUR
SECTION 4A ECONOMIC DEVELOPMENT CORPORATION
WHEREAS, the City of Port Arthur and the City of Port
Arthur Section 4A Economic Development Corporation entered into
a purchase agreement for acreage at the Port Iron Site, which
has been updated as denoted in the initialed and signed
Agreement attached hereto as Exhibit ~A"; and
WHEREAS, additional time is necessary to complete an
environmental analysis; and,
WHEREAS, the existing feasibility period expires on October
1, 2005; and
WHEREAS, the City of Port Arthur and the City of Port
Arthur Section 4A Economic Development Corporation deems it
necessary to file an objection to the purchase agreement unless
KCS grants an extension as to the feasibility period and the
other deadlines.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR, TEXAS~
Section 1. That the facts and opinions in the preamble
are true and correct.
z .pr13256
Section 2. That the City Attorney and the City of Port
Arthur Section 4A Economic Development Corporation Attorney are
herein authorized to file the necessary objections as to the
purchase agreement as to obtain an extension for sixty (60) days
from the Kansas City Southern Railway Company.
Section 3. That if the extension is not granted, then
the City Manager and the City Attorney are herein authorized to
terminate this purchase agreement.
Section 4. That the City Manager is herein authorized
to sign and initial the extension dates in substantially the
same form as attached hereto as Exhibit ~B".
Section 5. That a copy of the caption of this
Resolution shall be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this __ day of
, A.D., 2005, at a Regular Meeting of the City
Council of the City of Port Arthur, Texas, by the following
vote: AYES: Mayor '
Councilmembers ;
;
;
NOES:
OSCAR ORTIZ, MAYOR
z.pr13256
ATTEBT=
EVANGELINE GREEN, CITY SECRETARY
APPROVED AS TO FORM.'
CITY ATTOP. NEY
APPROVED FOR ADMINISTRATION:
STEVE FITZGIBBONS, CITY MANAGER
z .pr13256
EXHIBIT "A"
[upno'vJ;D PROPi RTY COMMERC IAL { ONTRACT
1, eS
2. pROPERTY;
The p~operty sold by this contract Is celled the 'P.roperty." The property is that real prOPerty s~tuaied In ~-
^- .. C6untT, Texas st
-- (addrs~) that Is legally described a.~ fellows: (Identify exhibl~ if described by attachment.)
See Exhibit "A"
B. The Propertyissotdtogethsr .with:
(1) ail buildings, Improvements, and r~ures;
(2) ail rights, privt eges, and appurtenances pertaining to the Propen'y, Including Seller's right, flue, end Interest In any
minerals, u~lltles, adjacent streets, a eys, strips, gores, and rights-of-way;
(3) Sel{e~'s interest n aJ eases, rents, end security deposits for ell or part of the Property;
(4) Selle~,s interest in all Iloensee and pe rmlts related to the Pr°PertY;'
5 Seller's int e rest In all thIrd perN wanant les ~-q uara n~ -e-s' 'ri' 't 'r'a' ~s'f'e' ''r~'ab'j'~;'~[~''l~rl~p~ly °r any Itxt u re s;
~ Se fdlov~ng personal property:.
(De.~c.n'be any exceptions, r~atlons, or re~t/fcffons in paragraph 11 or an addendum.)
sALE~ PRICE: At or b,fora c~ng, Buyer v~ll pay the fdi[o~ng sales price for the ProperS.
A. Cash por~<m payable by Buyerm d<~ng ..............................................
B. Sum d ail ~nandng des~bed in Paragraph 4 .......................................... $-
O. Saies price (sura d A ~nd B) ............
· 4. ~INANCING: BuyerY~l[~nance~heP°r~°~d[hes~esPflCeU~derPam.grsph3Bas[c~[°ws:(ohed4~/~l~p~')
Q A. Th]~ Par~ Rnandn~: A ~rd pady nots(s) ~ the total amount d $_ ,.. T~s contraot
O (1) b not co~ngant up(m Buyer obt-~nlng ~1~ pa~Y flnandng.
~ (2) ts con~nge~l upon BuysrObfl~Nngfl~pa~Yflnandinglna~danoe~thflleaffachedR~ar~ngAddendum'
D B. AssumDtlo~ inaccordancev~lthea~achedRnar~ngAddendum'Buyerwl~aas."metheunpa[dp~''~dp~bal~mced~heflrst
lien promissory nots, v~ch bab~ce m do~ng ~11 be $.
M C. Se~ler Eqnandno: The deINeP/of a pro~liesory nots and deed d tr~ [rom Buyer ~ Seller under ~le ts~s o[ the a~ached
Rnandng Addendum in fl~e amount o[ $ .'
(TAR-1801) 11-6-99 TAR, P.O. Box 22/~, Kas~n, I'X 78768-2248
· de $ 1 000 eamestmoney
. 3 day~ a~eHhe n (e~c~ow agenl)
s ~er f~ ~ ~me~ de~~ ......... ~..~ ~. e~ age~ ~ d~,. ........ ~'
~-,- ~ _ ,_~,~, i~U~ fl~ i~ ~ ~ ~,, ~,,
6. ~LE'POUCY, $URV~, ~D UCC 6~R~:
~ ~tle pol~: ' dj of ~Uo ~su~e (~o ~o ~1~ I~uod by Port ,
~ . . .~ei[e¢s e~en;e,~fu~tsh Buyer~e~P ~ ...... ~ount of ~ ~es p~e, datedat ~ a~er
~s~9, Insudn9 B~er ag~ ~ u~er ~e u~ ~ ~ he ..~ed by B~er ~ wiring; ~ ._
t~e due ex~pU~ pe~itted by this ~t~ v~ ~ ,.,-~ yj ~ ~ ~f , e ~ ~ unle~ this ~tmct pw~oes
(b) ~e ~ pnnie~ excep.~-~,7~
(2) ~e smn~ pdnted except~n ~t~ sr~ ~des: (Ghe~ (~ °r ~) Y')
~ (a) ~l[~tbedeletedfmmthetifle~llw.
~ Q,, ~)o~be delet~ f~ ~e .e ~,~ et ~e e~e~e of ~ B~er O SeUer.
~( + ~ B~er mey ~e~ to ~ res~e ~e~ ~ ~e Pm~ ~ln ~e time required ~der ~mg~ 6D.
~ ~ (3) -. ~ ........ ~e ~u~ (~e~ml~ent)
~D~''' ' ~=n/~ "~.'=ff~veu~-" ~er~tlfumlsh~er~m~es~e~e~p~t°delNer
~ (1) ~-..~ --,-;": ............
~ a (~) B~er~ll~nasu~y°f~eP~e~atBWeCse~ense'
~ O (b) Seller. atSelleCse~ense, wilifumlshBuyerasuwey~theP~pe~tedaffer~eeffec~vedate'
O (c) Seller ~ll delWer a tree ~ ~e~ ~Y of Sellers e~ng suwey of ~e P~e~ dated _
Seller, at Sellefs e~e~e: _.
Q 0) ~heve~ee~s6ngsu~yr~fi~adate~tea~ier~-
Q ~ ~t~ve~ee~sfl~suNeyr~fled.
(2) ~e suweY r~ul~ u~er Psmg~h ~B(1) must be m~e by a Reg~er~ P~fe~l ~ Suwe~r e~p~ble t° ~e
title ~. ~e suwW m~
(~ ~n~ ~ P~ W metes ~ ~ ~ P~ ~ de~tl~
(c) ~t fo~ ~ ~o~ ~ (o~ a~ of ~e P~e~e~ ~ds ~1~, ~em ~ee~ or other wate~e~,
IM~fl~; .... ~'ble e~en~ ~ ~Y ~lm of ~e p~e~ ~ng
~ ~e ~ or ~ffi~ ~ ~u~anes, ~ _, c_.~ ~oe~ Age~ map;
(0 ~n ~e suwe~s ~te ~t ~e suwey b I~ a~
C. ~ e ~11 fuml~ Buyer · Un~o~ ~me~
~. da~ er ~e eff~e d~te, Seller, at S~led~e~;,...~,. ~
Q (1) .,,-,-. --.- eft edsEer~e a~evuw ~.~....e I
(~) se=~ pre~ W ~r~bg s~.a~ ~,~ ~ere ~e P~e~ b ~ted ~ relate to ~ P
p~ ~ ~ P~e~ ~ ~, es debtor, Seller ~ ~1 o~er ~em of ~ pe~ p~e~ In the I~t 5 yearn.
~A~1801) 11-5-~ T~, RO, ~x~ Austin ~ 7876
- ) of ~e ~ume~ e~a~ uuu ~t~, Y,
~e~ · ' ' or e~mbm~ to U~e to the re~ ~ pe~ P~ ~bed In
Seller ~Y, but ~ ~t ~l~ted ~, ~m Bwe~s time~ ~]~i~ ~ 20 daye ~ter Geller re~lves ~ o~. Ume
(2) date ~11 be e~e~ ~ ~c~ to ~re ~e ~Je~s. ~ ~eller f~ls to ~re the ~Je~ bY ~e
requl~ Bwer ~Y replete ~ ~m~ by p~ng ~en ~t~ ~ Seller ~ln 5 ~ after ~e ~me by ~
d~ ~t ~demtion paid for
Seller must ~ure ~o ~J~- ~ BuTer radiates, ~e ea~st m~e~, [e~ ~e I~epe~e
BWe~s ~ht to tek,ate ~ef P~mgf~h 7B(~), ~11 be mfu~ to Buyer.
s f~lure to Ume~ ~ or replete u~er ~ls pamg~h 6D ~ ~ ~er of Buyers ~ght to ~le~ except ~t
(3) Buye~ e O of ~e ~ml~ent.
~ Bwer ~11 ~t w~ve ~ req~remen~ In 8~dul
a B. ,. _ . _ _~ · 8e~er ~ deliver ~yer ~e foll~ng
~med ~t to ~ in Sellers p~e~l~ or reaol~ ev~
(a) a currant rent ~ ~ afl lea~s affe~ng ~e p~e~ ce~f~ by Seller as line ~ ~ne~;
~ es of &l ~u~e~ I~ses pe~lnlng to the p~e~, I~u~ng ~ ~1~, sup~emenis, or ~e~men~
~) ~ e~s;
(¢)a ou~ent invento~ of ~ ~ible pe~ pm~ ~ed by Seller ~t b ~ted ~, s~ed to, a~ used
or ~fom d~ng;
prong ~e eff~ve date;
O) ~les of ~ p ---~. ....... p~e~ for t~ pre~s 2 ~e~ar Yea~,~
a~e~ents may ~e, b~ are ~ IImE~ to:
k~lt]aj ed foe kfa naflc~o~ by Buve~~.?e?l,e~ Page3Oll0
('I'AR-1801) 11-5-99 TN% P.O. Bo,x P.24~, ^ust~n,
nhvrdcal property Inspe~ons ~r example, st~uc(ural peet control, mech~rdc~t, .a~nzctural, elecbfcd, end
(i) ~n:t~ ~)~.,.,, ........
/~ ~:onomlofe~srog~etu~e~; ....... ,- ~qt t~ ~r~p~.~Pm~'~/. -
~) Seller, ~t ~lle~s o~e, ~ turn m~l ~liU~ n~W ~r BWar t° m~° ~p~m='?~e=' °r a~en~' ~lm ~ B~efs ~, ;tu~es, ~ ~e~en~, Bwer muse
abide b ~e e~ ~e= or r~uiremen~ t~ Seler may require;
Oil) Y~ ~ ~ ~the Pr~e~ a~ es~en~ ~t Bwer
~ ~l~e~em ~ e~sffng ~e~ .
'' estore
(v) ~ete~or mu~s ~ bo ~plete~
Sellers
t
Seller ~ ~tlef~ agen~
,~,0' O , ~ te~l~t' ~ ~r ~ r'~ '~~~
Iq~ to Te~ ·
(3) ~ ·
,~..fa ,,~r
~e ~e. B~er h~ te~ered t~
pres~ ~.
· -
~ as ~t B~er ~e ~ ~ n~s; eno roi ~ ~ ~.' ,-.*~ ~- ~=used to be ~pleted. I his paragraph
~b~i~ etudes) related to ~e P~ ~t uwer
7B(4) su~es te~a~.
· i~te under Pamgm~ ~(3) e~lres, Se er may ~ enter into,
~ ~s~: After Bwe~s ng~ to te~ .. < nf the Pr~e~ ~tho~ Buyers p~rw~flen ~p~al.
(5) ~ mas .. . ~' ·
BROK~S=
~ bmkem tomb ~e am:
~o~e · ~e No~
~ang B~er U~ ~ ~ B~er
~er B~er repmse~ BWer.
Using
Q ~pre~ 8eler.
Q ~ ~ ~ ~e~ be~een ~ller ~ Bwer-
Seller ~a
(1) Seller. ~ B~er ~a ~y ~er B~er ~ fee s~fl~ In ~ Agreeme~ 'Be~een B~em fou~ ~w the
~e~ ~g~tures to
Q (2) Atd~ng, Sel[er~l~
~er B~er a ~ ~h fee of:
Meting B~er a to~ fee ob
Q % ~ ~es pdce.
~un~, Te~s. Seller a~zes e~ age~ to pay
~e ~
· e b~e~ f~ 8elleFa p~ st dosing.
i~at~ ~..,~ by Buye~ ~8~l:: ~ Page4of 'O
' m~ ~t ~e~ ~s
~e c~ g ....... 2 ~var~b~ter (~e~g~te)- ~e~erpa~sb~by~do~ng~te,
th~ ~efau~ng pa~ may exe~se
At~g,Se~ler~ldeli~r'mSe{[e~sexpe~'a ~ne~ I~al ~r~de~.~edeedmust~udeave~s
at ~ng: ' ,, .... ~ .... ~.~ In~res~ agalns~ ~e Prope~ ~1~ w~l[ not be
~t~ed ~t ~ ~e ~es p~e unl~ seou~ng I~ BWer ~sumes;
(2) w]~u~ ~Y a~m~ ~ d~faul~_~ .... om~ as levees, ten.ts at suflem~e, or t~p~em ex. pt te~n~
~ ~[l~ue~ ~ on ~e p~e~ ..... ' . p~e~ defined as p~ of
(2) ~e p~ln ~mg~ora~
{4) to ~e e~e~ ~t ~e ~ng Rems
~) m~e~. m~gemenL ~ ~er ~tm~; ~d
(5) a rent ~1 ounent ~ ~ ~Y
(1) ~Y ~e ~es pd~ In ~ fu~ a~p~le to ~e e~r~ age~;
(2) s~teme~, ~fi~tes, ~ o~er ~me~ ~ulr~ by ~s ~tm~ ~ ~w ne~ to
(3) ex~e ~ de~er ~ n~e,
Sar ~T~ Re~ ~te ~ ~ual ~ ~ ~ da~s' closing date
~t b ~t ~u~z~ W a se~te w~.~ l~e agmeme~ b a ~te~t at s~e~ rela~lP be~een ~e pa~eS
(1'^Pc1801 ) 11-5-gg TAR, RO. Box P-2~6r, Austin. i ~. r
(Omlffnue Specie/P/or/sAw,) ....
12. SALES EXPENSES:
e see: Se er wi pay for the following In cash st or I~.o..m..~llnu~llna orel~e, yment penates end moordthg fees;
A. ~." ..... r,^.~ ~h those ens essumed by ~uy .............
(1) releases (x e;~u.y .~,~, -.-er than
(2) release of Seller's loan Ii~llitY, If epplicable;
(3) tax statements or certificates;
· (4) preparation of the deed and any bill d sale;
one.half o~ any esorow fee: . tY~e~Jr~rov~ ssi ~o~st o~e&esr <%~ ~o~ .re ·
,(5) lo
(2) prepare~ fee.e al.any, d .eed of, trust;,
(3) reccxclng fees ~or me oeea aha any asea m uu~, required by Buyer's lender,
(4) premiums foelfood and?~nrd Insurance as m~Y be
one-haft o~ any esorow me; ·
(5) .......... ~ees foe delivmv of the ~e commb'nent and related .d<~c. umen~, and
(6) c ar~ amsw~x · '.
opy r rov~ons of this oontmcx.
(7) othor expenses that Buyer will pay under othe p
13, PRORATIONS, ROLLBACKTAXE$, ESTOPPEL CERTIFICATE$~ RENT, AND DEPOSITS:
A. ~,roratlo~s:
(1) Interest on any essumed Io~n. taxes, rents, and any expense reimbursements from tenants will be prorated ,'brough the
closln date ' · ........ ~e doses le not available on Ih~ closing d'=ts, taxes wi.Il be
. ~h~ g~,~ou~t of ad valorem taxes ~or me year tn wr,<~ .,- ~. ....... for the ,,ear In wi-dch the sale doses v~
' (2)~r~;t~.on the bas~e of .t,~x. es ~a.?sess ~e~,!rl.~eaPa.?usVstiot ~ Yoemam~t~awh~,~f;e tax ~;tements for the y.r in v~hlch me r.~ -
',bo amount prorated st do~ng. ~e pame~ ,.~ ~'..r..-'
oses become avallat~e. Th~e Pmag..mph_ 18A(2) cu..wtve?._ _c~_ n~g~.,.,,,,, lie'~ Sel~er vdll Imnsfer all reserve deposits he. Id by
cl the~,r rtyeuejec~vm~,,,,o--~ ". Bu er will reimourse
i3) fib erassumeealoanoHstsJdng ope _ char toBuyeralCloslngand Y
the t~'~r~ler for the payment of taxes, tnsu~ prern~.u .ms: m?d other ge~
such emounts to Seller by an al~ropdsts aolustmera et o~oe~ng.
Ir~aled Io~ UenUflcaU~n by Buy 8~1~1 pege 6 of 10
(I'AP~1801) 11-5-99 TAR, P.O. Box 224~,Austln,'lX¥~§~'r-~'~ ~
-... · fore ck)e,~g of if a denial ~ ~, ~pedal valuat]o~ ca the Pc{~ W
. ~ 8e~ ~ ~eo, ~ ~ a~
(2) ~ est~pel ~t~s mu~ ~: e~ b ~e ~o~ or te~ ~ ~ ~e ~e ~o e~o~etco~(e b ~gn~;
t~defau~e~r~ I Y ~ r~tal a ents~t~vebeen
~ ~am~nt~e~l~ren~bep~d~mugh~ee~°f~lea~a~ Y P
p~d In a~;
(c) ~e ~ount of ~y s~u~
(~ ~e ~ount ~ ~ o~e~ te~t Is efl~tl~ a~nst rent;
(e) ~e e~ mtl~ ~te of ~e
(0 a de~pff~ of ~ ren~ ~G~s a~
(g) ~ · - ...... ~ the t~ing ad~n~ ~ymen~
er to B~er aa s~u~ ~e~s~m m~
- . · ~fts' Al ~flg, Seller ~11 te~ .......... ,~ ~ ~her a~e pa~en~ p~d by
O. ~ aEer d~ng: prep~d e~ ........... ml~ by ~e mdplent to the pa~
p~mt~ ~t~n 5 days after ~e mnt l ·
14. C~U~ LOSS ~D CONDONATION:
~ ~ ~y pad of ~e P~e~ b d~g~ or des~ed by tim or o~er ~ua~ after ~e effe~e d~e, Se~er m~t
~e~ to I~ pm~s ~ as ~ ~ ~ ~ble a~ not later ~ ~e ~lng date
u~ to ~ ~, B~r ms~'
(1) replete ~s ~ ~ ~e ~st m~Y, le~ ~e I~epe~t ~dem~ paid for B~eFs ~ght to replete
h ~ 3, ~11 be relu~ to
(2) e~e~ ~e ~.~ ~ ~,,~ _ '5= _..~ e~ ~pt ~ ~e.~ of a~ I~ p~eds Seller Is en~fled to
(3) a~pt fie p~ In ~ ~ag~a ~ ....
~e.
a~ of ~e Prope~, B~er
...... ~ ~m~fl~ ~ee~s ere ~me~d.~,~,. after B r
(1) te~l~te ~s ~tm~ by p~ng ---~j,.,~ ~e~e~ ~sldemfl~ P~ lot oux .... =...o
p~o~h 7B(3, ~1 be refunded to B~e~ or ........ ~ ~ [ at Bu e~s elects, belong to:
..... ) ~ ~e~n~ ~ ar~ ~- ...... I, Y
p~r~defe~ ~ ~ .... ~.._~ ..,~ ~e smount: or
(2) ~ $eller~ ~e ~s p~ ~11 D8 r~u~ ~i
~) B~er~ fie ~les p~ ~ ~t be ~uced.
15. DEFAUL~=
(1) e~o~ ~"~nu')~7:j.._ ~ .~.~ ~ev ~ II~1~[~ ~*, -'-- -
{2) replete ~s ~ ~ ~vu ~,~
B. ~,~~ut ~ul~ seller b u~le ~n ~e ~me ~ed ~ de~er~e e~pet ceffifl~tee°r ~ ~m~en~ BWer ~
(1) te~l~te ~s ~ ~ ~e ~e ea~ ~, le~ ~e I~epe~ ~de~l~ ~d for BWe~s ~ght to
am
(2) e~e~ ~e ~me f~ pedo~ up to ~= ~ayu ~ -,~ -~ -
O. ~"P 'P
(2) te~l~te ~s ~t~ ~Ne ~d~.ad~aaes therebyrel~lng~e pa~esf~ ~ls
16. A~ORN~'S FEES= E Bwer, Seller, s~ b~er, or ~y ~ agent b a prev~i[ng ~ In ~ te~ p~edl~ b~ght u~er
or ~th re~ to ~[s ~tm~ or ~b ~, su~ pa~ is enticed to r~er f~ ~ ~pre~lllng pa~es ali ~s of su~
~ {~ ~ ~ BWO~~ ~~ Page 7 of 10
T~, RO. ~x~S~ ~ ~ -
~1801) 11-~99
·" '" Im rovedC, omrac~Ca~cemlng
Comme~al P . --
t7.
A. At (:k:~g, the earnest m~ey must be ~1~ I1~ to ~ ~ ~ pa~ ~en ~ O~eCs d~ng ~, ~ ~ e~e~
~ll be rdund~ t0 B~er.
C. ~ ~e p~ ~ea ~ffen de~ f~
o~er ~ a ~ of ~e ~m~. ~ ~ age~ ~s ~ r~Ne ~en ~n ~ ~e dem~ f~ ~e o~r ~ wl~ln
30 de a~er ~e ~te e~ eg~t ~nt ~ dam ...... u~ ~ beef ~ ~e p~ r~ei~ng ~e e~est m~ey
pa~ ~ d~, r~u~d by ~e ~o~ of un~ e~
a~ e~mW agent may ~y ~e ~me to
D. E~ age~ will d~u~ ~e i~epe~ ~demd~ p~d ~r Bwe~s Hght to replete u~er Pamg~h 7B(3) before
d~bu~ng any 6a~st m~ey to Bwer a~ ~ll pay ~e Indepe~ent ~dem~ to Seller.
E.~ ~ egent ~pti~ wi~ ~ie Pamgm~ 17, ea~ p~ hereby releas~ e~ agent f~m all ~ relat~ to ~e
disbu~ of ~e earnest m~ey.
F.Nofi~s u~er thb Paragraph 17 must be se~ by ~fied mai[, tatum receipt r~u~ted. Not,es to e~ agent am etf~ve
up~ r~ipt by e~ s~nt.
18. MATERIAL FA~S:
~ To ~e bas1 ~ Serials ~ed~ a~ belief: (~e~ (1) or(2) ~Y*)
O (1) Seller Is ~t aware of any meted~ def~ to ~e ~e~ except ~ s~ted In ~e a~ P~e~ ~itlon Statement.
I (2) Seller~taware~y~ffief~i~ng,~pt~de~o~e~ln~s~m~
(a) ~ mated~ p~ ~f~ to Ihe Pmpe~ .
~) ~ pe~ng or thmat~ Ildga~,~em~d~' °r e~ment aff~ ~e Pmpe~'
(o) s~ e~en~ ~a or ~s ~t sfl~ ~e P~e~..f ~ ~vn~us ~te~ or to~o ~te, a dump
(~ ~r ~e P~ is or ~s been used for t~ ~omge ~ u~ ....
' ~1[~ ~ ~&~ o,
(~ ~e~r wedS, ~ defln~ by f~e~ or ~te mw or reg"'~"~ ~ *
(g) ~e~rthre~e~ ~ ~ge~~r
· -. =. ~eference~ ~n ~ou~=,~ ~ .
O.
(2) ~ ~ure ~ 8~ler ~ ~PM ~ ~'" ~'~
~) ~ ~mu~S u~era~l~e ~t e~e ~ te~ to te~l~te ~e I~e ~ seek ~ °ff~ °r ~ages'
(4) ~ ~P~ ~ ~e I~ p~l~e W a te~
(5) a~ sums p~d ~ a te~ u~er ~ I~? --'--- or o~er ma~em ~t aff~t ~ lease; and
~ ~ ~uses, free m~ re~t~, b~em~ ~m~, .~=.=~ n~m es ~ f~ ~n(s) a~umed
(6) ~ ~ ::j ...... ~. ~. ~=~< ~ ~ve been ~gn~ or ~ .................
or ~en su~t to u~er ~s
19. NO~C~= 'NJ ~fl~s be~n ~ pa~es u~er ~s ~t must be ~ ~fl~ ~ are eff~e ~en ~elNer~, mailed by
ce~fled rani return receipt ~uested, ~ ~nt by f~lle ~smi~[~ to:
427 ~esC 12~ SC=eeC
Seller at .,__ Missouri 6410~ '
Bu-erat 444 4~ Street K~sas
P~rt ~ur, T~as Ilb~U ~X al~= ~5 [-- 21--933~
ATTN: Cl=y A=torne~
andSeiler J~
In~aJed for Id~tbatioft by Buyer ' ..... 46 Page 8 of 10
(T^R.1801) 11-5-99 TAR, P.O. Box 2246, Austin, ,;~/u mo-,c~
' ~:~ne ~la~ ~ proved C, ommct C<XK>e ~ng
' * ..........
~' ~t~ya~. ~e~n~ ~ne~u~-~e m~a~r -' '
a~ or i~ ~ ~11 ~ua[~ ~re ~e ~ ota mm~#y ~ ·
~. AGRE~ OFTHE P~ES:
A. ~[s~
B. ~ls ~ Is to be ~tru~ In a~a~e ~ t~ I~ws of ~e S~te of Text.
G. ~is~~ ~ t~ entre a~memen~ ~e pa~es ~d may ~t be ~ed e~ept by wd~ten a~re~enL
D. ff ~ ~nt~ct ~ executed ~ a number ~ ~e~l~ ~unte~, ~ ~unte~a~ is ~ o~gl~ ~ all ~unte~,
~le~vely, ~n~tu~ one agmemenL
A~en~ ~ are ~A M th~ ~m~ are: ~ ~ ~t ~.)
(1) P~De~pU~
(2) ~nlum
(5) A~e~um for 5elleCs
(6) N~toPu~erofR~P~e~lnaWaterD~;
~ A~e~umfor~t~AreaPm~
(8) A~e~um for P~e~ ~ted
(~)
pedo~ u~er a p~d~ ot ~ ~m~ f~ ~ a ~tu.---,
~e e~ of ~e ~ day ~l~ Is ~ a ~t u~y, Su~Y, or le~ ~ll~y.
24. EF~E DAT~ ~e eff~e
a~nt ~lp~ ~ls ~ ~er a, ~ea ~e~e thb ~t~
~. ~D~ON~ NONCES:
~ Bwer ~uld ~ve ~ eb~ ~e~ng ~e P~e~ e~in~ by ~ a~mey of Bwe~s sel~, or B~er ~ be
fuml~ ~ or ~ln a ~e p~W.
B. fe~li~es~ se~s, ~ter 4g, Te~ wMer ~e, ~ulres ................ ~ --
to the ~ rote, b~ I~ebtedn~, or ~ fees of the ~st~ before fl~ exe~ of ~[s ~tm~
C. ~ ~ ~e~ a~ or ~ a ~m~ ~u~W ~ ~ fl~ Influe~ su~e~ ~ of ~ ~te, ~.1~, Te~
Natural Re~m~ ~e, r~uims
D. ~ ~e P~e~ Is ~ted se~ ~ ~e Gu~ ~tm~tM WaterY, ~1.0~, Te~ Natu~ R~umes ~e, r~ulr~ a
E. ff ~e P~e~ b ~ted o~de ~e IIm~ of a mun~l~, ~e P~W may n~ or ~ter be I~ed In ~ e~-terHt~sl
jud~ (~J) d a munb~l~ ~ may ~ ~ lair be s~J~ ~ ~e~ ~ ~ mun~. E~ mu~pMl~
am ~lde I~u~es~J'T°dete~eP~e~ted~namunl~P~l~s~J'BWer
InRlaled for Identlflcal~on by Buyer md Seller , PagegoflO
(I'APel,01) 11-5-99 TAR, P.O. Box P. E48, AUStin. T'X 7~8-E248
· .~merda] ImproVed OontmctG<moemlng
.... .. . ........ , .,u,. are ,,.,~ of ihe property and t'x)se u .~ w. ere built bef°re 1978' federal law requlm$
. nmen~s or o~er re.~ae,'"'" "'"- ~"' e eut of Ihle =orr~ac[.
~e. oec~OnS to aeten~ne compuan~. ~u,: v,_=-~:_.,~.. Is the resoonslt)lllty of Buyer and not the brokem.
~-~-~ se r~ces. Sele~on of e~e rL% ~speetors, aha "~'
the offer ~11 lapae and beoOme null and void. ~ e-resentstlon or recommendation
broker~ arid agents make 11o r
..... ,...,.,,hind[ acontract. READ IT CAREFULLY- The ....... .mm-,! or sactlori. CONSULT your attorney
ss to the legal stzm¢len~:r~ .~ ....... -
BEFORE signing.
Sel[eCs
Attorney _
,.- ,,-' - Seller
'"~u~r C~.'cy o~.el A.~thu~r Sect'ion
4A Economic Development Corporation
_ AGRE£~ROKHRS
.. (Other Broker)
Ustl Broker agrees to pay "' "'e sales ,,rice when the Usting Broker's lee Is ;elved. Escrow
a fee o~ $~ .......... ,~.~. a...u,. ~r,',m Listina Brd4er'$ fee at closing.
~ prior offers and agreements for c=mpensatl~'~ between ~roKer=
Ucense No.
License No. ~sting Broker
~her Broker
By: _
BY:._ _
~er Broker's Address Usting Broker's AddresS
~ FaX
· -.---------' Fax Phofte
PhoneESCR"'~ECEIPT
Esorow agent ac~-~owledges receipt of: ,. (effective date);
U A.' the contmct on thls daY _onlhisday -'
Q B. e=mestmoneylntheemourtof$ ,Intheformol_ --
Address: _
~orow Agent
FaX
By:. ~. ~ Phone
Page 10o~10
(TAR-1801) 11-5-9g TAR, P.O. Box 2246, Austin, 'IX 78768-2246
F_,~..r.r B ..r T
PORT IRON PURCHASE A~REEI~ENT
The city of Port Arthur, the city of Port Arthur section 4A
Economic Development Corporation, and The Kansas city Southern
Railway Comgany agree that the City of Port Arthur, the city of
..... ~--~ SJction 4A Economic Development Co.~o~on or their
Port ~u~
· ' .9~, ~'/;-_.-~
assi ee,purchase ort ron
.... ~k;..~_~r~ o~n ~north side of West
site comprised o~ approx~mau~
~.~'~ -~ .... = ..... . 7th s~reet for a
~ S~ree~ ~ ~ acre. ~ ~ou~
~o~a~ ~rc~a.e ~r~ce o~
The city of Port Arthur, the City of Port Arthur Section 4A
Economic Development Corporation, and The Kansas city Southern
Railway Company are interested in Port Iron remaining a viable
business. The city of Port Arthur and/or the City of Port Arthur
Section 4A Economic Development Corporation will make a good
faith effort to work with Port Iron to insure its relocation in a
manner causing minimum disruption-
z.port iron purchase agmt_exhiblt a&b
EXHIBIT ~B"
PORT IRON PURCHASE A~EEI~ENT
The city of Port Arthur and/or the City of Port ArthUr Section 4A
Economic Development (EDC) shall engage ~ enviro~ental
consultant to conduct a Phase I Enviro~ental site Assessment
(-Phase I") of the Port Iron s~te to evaluate the 9resence o~
Reco~ize~ Enviro~ental Conditions ('RECs") as defined by AS~
1527_00.~ Kansas city Southern Railway shall.provide, where
' le he city of Port ~thur'S and EDC'S envxroT~
ava~lab ~ t . ~ ...... ent or past p~ces
consultant with info,at,on regar~n9 uu~ Hydrocarbon
involving use of hazardous substances or Petrole~
products, including authorization for consult~t inte~iews of
preset or foyer ~ployees, contractors~ ~d agents of Kansas
city Southern Railway. K~sas City Southe~ Railway shall, to
the best of its.~owledge, provide info~ation regarding
enviro~ental liens and any ~o~ or suspected releases of
hazardous s~st~ces or Petrole~ Hy~ocarbon productS, at the
port Iron site. Kansas City Southe~ Railway makes no ~arantee
or warranty that the info~ation it provides i~ either complete
or accurate, although Kansas city Southern Railway warr~tS that
it ~ows of no facts that would render such provided information
materially incomplete or inaccurate.
The findings of the Phase I will be provided in a Phase I Report
distributed to the City of Port ~thur, EDC ~d Kansas City
Southe~ Railway. If ~Cs are id~tified in the Phase I, a Phase
II Enviro~ental Si-re ~sessment (Phase II) may be conducted by
the E~ ~d the City of port ~thur's envlro~tal consultant.
In the event the City of 'port ~thur and the E~ 'elect to conduct
a Phase II, K~sas City ~outhern.Railway shall, upon timely
review ~d approval of the E~ ~d the City's intended work plan
(which approval shall not be ~reason$1y wit~eld) provide
access for perso~el ~d s~pling e~ipment for the pu~ose of
evaluating identified RECs ~d to collect soil and/or groundwater
s~ples for ~alytical testing. A ~aft work pl~ for ~Y on-
site related activity shall be s~mitted to K~sas city Southern.
Railway for its review, co~t, ~d approval at least 15
business days in advice of proposed site activity, scheduling
of soil and/or gro~dwater s~pling shall be coordinated with
Kansas City Southern Railway and the current tenant in advance-
Work shall be desired in a ma~er that will not interfere with
facility operations. All on-site work shall be conducted in a
ma~er that is fully compli~t with prevailing Kansas city
z.port iron purchase ag~t_exhibit a&b
Southern Railway and OSHA Health and Safety requirements and
recommendations.
SubsecIuent to sampling activities and receipt of resultS, a Phase
II Report will be prepared and provided in a timelymanner to the
City of Port Arthur, the EDC and.Kansas city Southern Railway.
If requested in writing, Kansas city Southern Railway shall be
provided with an opportunity to collect a split of all samples
taken pursuant to this Agreement. The Phase II Report will
. ' ' 'on and will present a
document results from the lnvestlgatl
comparison to Texas Risk Reduction Program (TRRP) Remedy Standard
A commercial/industrial, protective concentration levels (PCLs)
.as such levels are established by Title 30, TAC Chapter 350. It
is recognized by all parties that the Tier 1 PCL tables are not
intended for use as references for release reporting. In other
words, the Tier 1 PCLs are not threshold COC concentration levels
to be used to determine whether a release has to be reported to
the TCEQ. If concentrations on the property exceed Remedy
Standard A PCLs as documented in the Phase II Report, the city of
...... at their sole discretion, ca~. terminate~
Port Arthur an~ ~ne ~u~, .... ~h no 'obligation to ,W~
. contract to purchase the proper~y w~u . . ~.. ~
the ....... ~lwa" other than the confidentiality ~
Kansas City ~ou~nern ~ ~
requirements stated below, it is understood that in accord witb~
TCEQ TRRP rules Remedy Standard A PCLs may be upwardly adjusted
if the groundwater beneath the site is a Class 3 groundwater.
The Phase I and II environmental'site assessments shall be ~
completed,~day~ of thc cffecti-~e-datc cf this' ~-r--- ~-~ ~
A~nt, unless otherwise agreed upon by ~he city of Port 0~o
Arthur, the EDC and Kansas City Southern Railway, . ~l,J005
· Port Arthur and the city of Port Arthur Section ~A !
The City of . - ' -~= ..... ~ t to disclose to third
Economic Development ~orporau~u~ ~ no
parties, except as requir~dby law, any information related to
~ts Phase I or Phase II inquiry, including but not limited to,
any assessments, reports, surveys, samples, analyses, or
summaries, or portions thereof. In the event this Agreement is
canceled or terminated for any reason, the city of Port Arthur
and the EDC shall deliver all documents, information and samples
relating to the environmental assessment to Kansas city Southern
Railway and shall keep the results thereof confidential, and not
disclose all or any portion of same to any person, except as
required by law. To the greatest extent permitted by law,. the
City of Port Arthur and the EDC shall give Kansas city Southern
Railway advance notice prior to making any disclosures that it
believes are required by law, and shall provide Kansas City
Southern Railway's Associate General Counsel, Thomas J. Healey,
z.port iro~ purchase ag~_exhibi~ a&b
(Tel: (816) 983-1392, Fax: (816).983-1227) with a copy of any
document or request seeking such disclosure, along with the EDC
a~d the City of Port Arthur's draft disclosure, at its earliest
convenience. This confidentiality requirement shall survive
termination of this Agreement.
Kansas City Southern Railway shall use reasonable efforts to
secure the cooperation of its tenants on the Port Iron site with
the requirements of this Agreement, but Kansas city Southern
'Railway makes no guarantee or warrantY that it will secure s~id
' n is
· n
cooperatlO · If timely and adequate access and cooperatlo
not secured, the City of Port Arthur and the EDC may, at its sole
discretion, terminate the contract to purchase the property with
no obligation to Kansas City Southern Railway other than the
confidentiality requirements stated above.
The city of Port Arthur and ~he EDC will provide a copy of the
Draft Phase I and II reports for KCS review and comments prior to
finalization of the reports. KCS will have 15 days to review and
comment on the report before the City and the EDC further
finalization of the report.
KCS approves the HBC/Terracon scope of work of the Phase I and
Phase II described in the memo dated May 10, 2004 and attached
hereto.
The city and the EDC reserve the right to terminate the Agreement
prior to closing if ownership of the property will subject the
City and the EDC to liability under the comprehensive
Environmental Response, Compensation and Liability Act of 1980
(42 U.S.C. Section 9601 et.seq.) Chapter 361 Health and Safety
code, Sabchapter I, Chapter 26 Water code or would otherwise
violate Section 280.002 Local Government Code.
That as to complete the purchase and to protect the City and the
EDC from environmental liability Kansas City Southern Railway
will join with the City and the EDC in an application under the
voluntary Cleanup Program if requested by the City and by the
EDC. If Kansas city Southern Railway does not want to join in
the application, which is at their sole discretion, then the City
of Port Arthur and the City of Port Arthur Section 4A Economic
Development Corporation can terminate the Agreement for any
reason.
Fmrn: 'lqeely, Stave" <smeely~terracon. com>
To: 'Doffs Jean Gill (E-mall) ,<dg!l.I .~portarthur. net>
Senl: Monday, May t0, 2004 9.29 AM
Attach: Pumhase ^greament ESA Scope Language Rev 0.doc
Subject: RE: KCS Phone Conferenoe Report
HI Dorisl
the urchase agreement that describes the scope o..fwork
rise to your request for la.ngu.a, ge to Inc_l..u_d.e. in P w. Feel flee to oonta~t me with
lonrrethSe~haSe I and II ESAs, atlacne~ is draft lan_quage for your revle .
~tevo
port ~ron P_urohase,Aqreem,~t LsnRua_~e
Phase I Environmental Rite Assessment Scope
Hl~C/rerracon will conduct Ihs Phase I Environmental Site Assessment (EeA) using ASTM
1627-00 as guidance. The feces of the assesam~t will be the colia~on and rsportlng of
c In evaluatln recognlzec~ envlmnmentsl conclit~on, s {RC~s) re. lat~.d, to .eoTme.rc? r.eal
informatl n .- g .......... ,~.a.-~'ed to consist prlmanly oi- me renewing
estate transactions. The Phase
components:
· An on-site reconnaissance of Ihs site, Incluc~in9 cursory review of adjacent properties;
· IntervieWs with owners/occupants and local government officials to obtain information
Indicating recognized environmental conditions in connectian with the site;
· A review of variaus public records to help Identify recogn~ed envlmnmentsl =onditJons in
conneCtion with the subJeot site and nearby properties;
· A preliminary asbestos survey for potential pathways of unconb'olied releases from
abandoned structures consistent with EPA Raglan 6 criteda under arownfields Pilots;
A preliminary survey of wetlands and river-reiatsd habitat Issues for potential pathways of
uncontrolled release consistent wilh EPA Region 8 cn'terla under Brownfietds Pilots:
· An Assessment of Assets survey fei' materials stored, abandoned or derelict on the property
relative to environmental liabilities In property transfer negotiations;
Preparation of a final report that c~etsils the assessment findings and Inoludee suppe~ng
documentation,
Phase II Environmental 8its Assessment Soopo
The =cope of Ihs Phase II ESA will be based on the recognized environmental conditions (RECs)
identified in the Phase I ES,a. '1'ha various media anticipated to be sampled Include soil,
an an waste commingled with the near surface soils. Constituents of concern
groundwater, d Y ..... , ....· o~.~. o~,=,se I ESA. These conslituents are
analyzed for will also be oasecl on me nnung~
antiolpated to include the RORA 8 metals (lead, barium, cadmium, chromium, copper, mercury.
sliver, zinc), Total Petroleum Hydrocarbons (-I'PH), Volatile Organlo Compounds, Semivolab'le
Organic Oompounds, end PCBs. Additionally, structures that will remain that have susl~ect
asbestos centalnlng mate~ats will be sampled.
echnl uss will be matched tn the media being samp ed and site condi§oes. It
Sample colle~o~ t . q ........ ,,-..-,~ ~--,,,~ borlnns using dL~ect push technology, and
Is ante pated t,qat SOil samples wi, uu
groundwater samples will be collected by Installing 2-1n-diameter moni[oring wells. The number
and location of Ihs bodngs and wells will be based on tho findings from the Phase I ESA. The sea
bodnge will be advanced to a depth of approximately f"n/e feet beyond the first Occurrence of
groundwater, or approximately 20 feel: below the ground surface, whlohever Is shaliawer.
The Phase I and II ESA wo~ scopes described herein shall neither be considered all-lnclusive.
nor preclude additions to the scope of environmental site assessment the City may perform
should the findings sO warrant.
FINANCING ADDEND~
This contract is subject to the availability Of municipal or
Economic Development Corporation funds.
EXHIBIT "B"
The City o[ Port Arthur, the City o[ Port Arthur Section 4A
Economic Development Corporation, and the Kansas City Southern
Railway Company entered into an Improved Property Commercial
Contract for 41.46 acres in the amount of $455,100. The parties
agree to the sixty (60) day extension as denoted in the letter
of Germer & Gertz, attached hereto as Exhibit "A-l".
SIGNED AND AGREED TO on this the day of ,
2005.
CITY OF PORT ARTHUR
BY:
SIGNED AND AGREED TO on this the __ day of ,
2005.
CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
BY=
SIGNED AND AGREED TO on this the __ day of ,
2005.
KANSAS CITY SOUTHERN RAILWAY COMPANY
BY:
z.pr13256
EXHIBIT "A- 1"
Oe~ngr (]eFt;: 9/].5/2005 5: 22 PAGE 2/2 RightF&x
September 14, 2005
Mr. M~rk
Porl: Ardma:. Texas 7'7~41-1089
Re: Delay of KCS ~e~ ~ ~ision
Dear Mark:
A~ ~z ~ptem~r 14, 2~5, re~ ~, t~ C~ of Porn ~ ~fion 4A
lPz:onomk: Developmem C:o~orafion vot~ to c~e ~ ~ ~to~ 2~5 ~ to g~m~r
2(1)5, ~ file Improved IYo~y Co~l Con~; for e~ple, ~ 1' to ~m~r
1'" ~nd L,~:tob.~ I5~' to ~cem~r 15~. ~s de~y w~ app~v~ m p~de ~ ~r proper
~ mfi?m:men1:;d, a, ss~smex~ ~ ptann~g.
Sincerely,
G~ GF~TZ, L.L.P.
K~hleen A. McOlynn C)
l-,,..& 1 ir
13o ~ d 317 Dtrectors
l!h~:,es, EDC Office
P.O. BC)X 491,5 . BEAUMObB', TX 77704 · PHONE: 409.654.6700 * FAX: 40~,~5.2115