TITLE
Title
APPROVE THE PURCHASE AND SALE AGREEMENT BETWEEN STARLITE DEVELOPMENT CORPORATION AND GUILFORD COUNTY FOR PARCELS OF LAND LOCATED AT 925 AND 931 THIRD STREET IN GREENSBORO NORTH CAROLINA TOTALING 5.33 ACRES
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SPONSOR
Sponsor
Marty K. Lawing
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BACKGROUND
Background
Guilford County has negotiated the purchase of two parcels of land located at 925 and 931 Third Street in Greensboro that total approximately 5.33 acres with the current owner, Starlite Development Corporation. The property is adjacent to the county health and human services facility and a City of Greensboro police substation. The county plans to develop a behavioral health facility based crisis center on the property. The terms of the proposed purchase contract are as follows:
- The total purchase price of the property shall be $1,359,150.00 or $255,000.00 per acre.
- The County shall deposit Earnest Money in the amount of $25,000 with Escrow Agent Nexsen Pruet, PLLC within three (3) business days after the date of this agreement
- The closing shall be held on a date agreed upon by the parties , but in no event later than sixty (60) days following the Termination Deadline which is the period of time that the county shall have the right to terminate this agreement on or before that date that is ninety (90) days after the date of this agreement. ( Closing must occur within 150 days from the date of this agreement)
- Within five (5) days of this agreement, the Seller shall deliver to the Purchaser copies of any policies of title insurance issued in favor of the Seller or any predecessors in title for the property, any land surveys, any Phase I or Phase II environmental reports or any other communications from any governmental agency with jurisdiction over environmental matters affecting the property and any reports of soil analysis.
-The Purchase shall rely exclusively on its own independent investigation of every aspect of the property and not on any materials supplied by the Seller.
- The Inspection Period shall be 90 days from the date of this agreement
- During the Inspection Period, the Purchaser may enter onto the property to conduct visual inspections. Prior to conducting any physical testing or boring and sampling on the property, the Purchaser shall submit a work plan to the Seller for approval. The Purchaser may also conduct Phase I and Phase II environmental assessment studies of the property and provide a copy to the Seller.
-All costs and expense of any inspection work undertaken by the Purchaser will be at the sole cost of the Purchaser.
- At least twenty-four (24) hours prior to entry onto the property for inspection purposes, the Purchaser's contractors must provide evidence of insurance coverage adequate to insure the Seller and Purchaser against any and all liability arising out of Purchasers agents entry upon and inspection of the property.
- Purchaser shall have the absolute right to terminate this agreement within 90 days of the agreement. In the event that Purchaser terminates this agreement, for any reason, Purchaser shall use its best efforts not to make any public statements regarding the termination of the agreement.
- Upon termination of the agreement, as long as the Purchaser is not in default, the Escrow Agent shall refund all of the Earnest Money to the Purchaser less One Hundred Dollars ($100.00) which shall be delivered to the Seller as a termination payment.
-The Purchaser at its sole expense shall contract for a title examination and Seller has 30 days after written notice of any exceptions, objections or defects to cure. If the Seller is unable to correct the defects to the satisfaction of the Purchaser then the Purchaser may terminate the agreement and receive a return of the Earnest Money.
-Title must be delivered at closing by special warranty deed.
- In the event of a default by the Purchaser under this agreement, the Seller shall be entitled to receive and retain the Earnest Money, and Seller shall have no further recourse.
-Seller shall pay for the preparation of the documents required to be delivered to Purchaser at closing and for excise tax required by law.
-Purchaser shall pay for the recording of the deed
-Each party is responsible for its own attorney's fees.
-Property taxes on the property shall be paid from the closing proceeds with each party paying their pro-rated share calculated on a calendar year basis.
The due diligence or inspection period will begin upon execution of the agreement by both parties.
The property is located within the Maple Professional Park and is subject to a Declaration of Easements, Covenants, Conditions, and Restrictions document that outlines development conditions and restrictions for the property which is organized as an integrated multiple use development (IMUD). Every owner of a lot in the development is a member of the Maple Professional Park Association, Inc. Every owner is required to pay a monthly assessment and special assessments for capital improvements, replacements, maintenance and repairs to common elements and access easements.
The total purchase price of the two parcels is $1,359,150.00. It is anticipated that a portion of the acreage will be sold to Sandhill's Center subsequent to the acquisition.
The capital project ordinance for the Mental Health Facility Replacement is currently $1,400,000 as previously approved for design services provided by TFF Architects, pre-construction services provided by Samet Corporation (construction manager at risk), and related fees. The capital project ordinance for the Mental Health Facility will need to be increased by $1,500,000 to a total of $2,900,000 to provide the requested funding to purchase the property as described above with additional funds coming from General Obligation Bonds (2/3rds Bonds) or other future borrowed financing proceeds.
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BUDGET IMPACT
Budget Impact
Capital Project Ordinance Amendment
Mental Health Facility Replacement
$1,500,000 Increase in General Obligation Bonds (2/3rds Bonds) or other future borrowed financing proceeds
$1,500,000 Increase in Appropriation to Mental Health Facility Replacement
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REQUESTED ACTION
Requested Action
Approve the Purchase and Sale Agreement, in substantial form, between Starlite Development Corporation and Guilford County for the purchase of parcels located at 925 and 931 Third Street in Greensboro, North Carolina totaling 5.33 acres for a purchase price of $1,359,150.00; and amend the Mental Health Facility Replacement capital project ordinance to increase project funding by $1,500,000 from General Obligation Bonds (2/3rds Bonds) or other future borrowed financing proceeds bringing the ordinance total to $2,900,000.
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