HomeMy WebLinkAboutResolutions - 2002.10.10 - 26959FINANCE REPORT (M.R. 402238) October 10, 2002
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - ACCEPTANCE AND APPROVAL OF
PURCHASE AGREEMENT FOR THE SALE OF 20.06 ACRES OF RESIDENTIAL PROPERTY
LOCATED IN THE CITY OF PONTIAC, KNOWN AS TAX IDENTIFICATION NO. 14-15-276-001
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
The Finance Committee hereby reports as follows:
Miscellaneous Resolution 402238 was approved by the Board of
Commissioners on September 19, 2002, to enter into a purchase agreement
with A. G. Construction Company of Clinton Township, Michigan, for a
cash sale price of $825,000, for the purchase of 20.06 acres of County-
owned residential land located in the City of Pontiac and identified as
Tax Identification No. 14-15-276-001.
This purchase is a cash sale and an "as is" condition.
The Finance Committee has reviewed and approved this agreement.
Proceeds of the sale will be receipted in the Building Improvement Fund
(Fund 4401) in the Sale of Land and Building Revenue Account #14-
110006-10000-1588.
FINANCE COMMITTEE
6 r
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Obrecht and Friedman
Appel absent.
MISCELLANEOUS RESOLUTION #02238 DATE September 19, 2002
BY: PLANNING AND BUILDING COMMITTEE - CHARLES E. PALMER, CHAIRPERSON
In RE: DEPARTMENT OF FACILITIES MANAGEMENT — ACCEPTANCE AND APPROVAL OF
PURCHASE AGREEMENT FOR THE SALE OF 20.06 ACRES OF RESIDENTIAL PROPERTY
LOCATED IN THE CITY OF PONTIAC, KNOWN AS TAX IDENTIFICATION NO. 14-15-276-001
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CHAIRPERSON, LADIES, AND GENTLEMEN:
WHEREAS, the County of Oakland is the owner of a 20.06 acre parcel of residential property located
in the City of Pontiac known as Tax Identification No. 14-15-276-001 on the City tax rolls; and
WHEREAS, the said property was originally acquired pursuant to Oakland County Board of
Supervisor's, Resolution #1812 of 1940 from the State of Michigan for the use and benefit of the Oakland
County 4-H Clubs; and
WHEREAS, the Oakland County 4-H Clubs have not occupied the property since the early 1970's;
and
WHEREAS, the property had been subsequently occupied by Project Warmth (OLSHA) and Furniture
Resource Center until August 2000; and
WHEREAS, on October 16, 2001, the Department of Facilities Management received authorization
from the Oakland County Board of Commissioners' Planning and Building Committee to advertise for the sale
of the above property in its "as is" condition making no warranties, pursuant to Board of Commissioners'
Procedures for the Sale of County-owned Property; and
WHEREAS, pursuant to the Board of Commissioner's Procedures for the Sale and Purchase of
Property, this property was advertised for sale in the Oakland Press, Craine's Detroit Business and on the
Oakland County Government Internet Website to receive sealed offers; and
WHEREAS, on January 28, 2002, nine offers were received for the sale of the property; and
WHEREAS, it is the recommendation of the Department of Facilities Management to accept the offer
of A. G. Construction Company, A Michigan Corporation, 23309 Quinn Rd., Clinton Township, MICHIGAN
48035, in the amount of $825,000; and
WHEREAS, upon acceptance of the Purchase Agreement from A. G. Construction Company in the
amount of $825,000, the County of Oakland hereby agrees to sell 20.06 acres of residential land located in
the City of Pontiac, Michigan, known as Tax Identification No. 14-15-276-001.
WHEREAS, the Departments of Facilities Management and Corporation Counsel have reviewed
and/or prepared all necessary agreements and documents.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
accepts and approves the attached Purchase Agreement from A. G. Construction Company for a cash sale
price of $825,000 for the sale of 2006. acres of residential land located in the City of Pontiac, being more
specifically described as:
N1NG AND BUILDING COMMITTEE
That part of the east of the northeast % section 15, T.3N., R.10E., City of Pontiac, Oakland County,
Michigan, lying easterly of the easterly right-of-way line of M-24 highway (Perry Street), said right-of-
way line being 78.00 feet easterly of the centerline of M-24 as established by MDOT Project No.
28561A, control section 63091 construction sheets No. 18-22. Said parcel more particularly
described as:
Beginning at the east Y4 corner of said section 15 thence south 87°59'53" west, 932.36 feet
along the east west 1/4 line of said section 15 to the east line of the easterly right-of-way line
of M-24 highway, thence along the said right-of-way line on a non-tangent curve to the left
a distance of 1361.56 feet, having a radius of 2213.41 feet, passing through a central angle
of 35°1442", with a chord bearing north 24°50'04" east 1340.20 feet; thence continuing
along said right-of-way line north 07°12'43" east, 548.82 feet; thence continuing along said
right-of-way line on a tangent curve to the right a distance of 626.38 feet, having a radius of
1646.33 feet, passing through a central angle of 21°47'58", with a chord bearing north
18°06'42" east, 622.61 feet to a point on the east line of said section 15; thence along said
line south 02°37'39" east 2322.37 feet to the Point of Beginning. Containing 20.06 acres of
land, more or less, and being subject to existing easements and restrictions of record, if any.
BE IT FURTHER RESOLVED that the County of Oakland Board of Commissioners hereby directs
its Chairperson or its designee to execute the necessary documents for the sale of this property located in
the City of Pontiac and identified as Tax Identification No. 14-15-276-001.
BE IT FURTHER RESOLVED that it is mutually understood this is a cash sale and "as is" condition.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing
resolution.
Planning & Building Committee Vote:
Motion carried on unanimous roll call vote with Amos, Webster and Gregory absent
PURCHASE AGREEMENT
This Purchase Agreement ("Agreement") is made on A,c1,s+ , 2002 between A.G.
Construction Company, a Michigan Corporation, 23309 Quinn Road, Clinton Township, Michigan 48035
("Purchaser") and the County of Oakland, a Michigan Constitutional Corporation, 1200 North Telegraph Road,
Pontiac, Michigan 48341 ("Seller"), as follows:
§1. Offer to Purchase. Purchaser offers and agrees to purchase from Seller approximately 20.06
acres plus or minus of land which is located in the City of Pontiac, Oakland County, Michigan,
which is specifically described in Exhibit A attached and incorporated by this reference (the
"Land"), together with all improvements thereon, all division rights, all tenements,
hereditaments, appurtenances, easements and all other real property rights therein, except
mineral rights retained by the State of Michigan, or other transferors.
Acceptance. This Offer will'be deemed accepted by Purchaser and Seller, upon both Parties
executing and delivering a fully executed copy of this Agreement to the other Party. The
Oakland County Board of Commissioners shall have 35 days from the date of Purchaser's
acceptance of this Agreement, to accept this Agreement on behalf of the County of Oakland. If
the Oakland County Board of Commissioners does not accept this Agreement then this
Agreement shall be null and void and the earnest money deposit shall be returned to Purchaser.
Upon acceptance by both Purchaser and Seller, the Agreement shall be binding and may only be
terminated in the manner provided herein.
Purchase Price. The purchase price of the Land shall be Eight Hundred Twenty-Five Thousand
and 00/100 ($825,000.00) Dollars. The Purchaser shall pay the purchase price in full at closing.
Deposit. Purchaser acknowledges the sum of Eighty-Two Thousand Five Hundred and 00/100
($82,500.00) Dollars as an earnest money deposit. The deposit shall be refundable if the Offer to
Purchase is not accepted by Seller in accordance with Paragraph 2. If Seller accepts the Offer to
Purchase, then Seller shall place the deposit in an interest bearing account. The deposit, plus any
interest earned, shall be applied to the purchase price at closing.
§5. Environmental Disclosures. Purchaser acknowledges receipt of a Phase I Environmental Site
Assessment dated November 16, 2000, done by NTH Consultants, Ltd. of Farmington Hills,
Michigan, and a Phase 2 Environmental Site Assessment dated December 15, 2000, done by
NTH Consultants, Ltd. of Farmington Hills, Michigan, both of which show areas of
environmental ,concern on the property. Purchaser further acknowledges that it accepts NTH
Consultants,Ltd. as experts in the area of Environmental Assessments and accepts these
Assessments as authoritative and complete. Purchaser further waives its rights(s) to object to the
environmental condition or to cancel its acceptance of this Agreement for environmental reasons.
§6. Title Insurance. Within 30 days after entering into the Purchase Agreement, Seller shall provide
to Purchaser a commitment for a standard ALTA fee owner's policy of title insurance, issued by
a reputable title insurance company and at closing, Seller will pay the premium for issuance of
such a policy. The policy shall be without standard exceptions. The commitment shall include
legible copies of all recorded documents that are referred to in the commitment.
Title Objections. Purchaser shall have 30 days after receipt of such commitment to object that
the title is not marketable. Upon written notice by the Purchaser, Seller shall have 30 days from
the date Seller is notified, of the particular title defect(s), to either (1) remedy the title defects, or
(2) obtain a commitment for the title insurance, insuring Purchaser's title against such title
§4.
defects. If Seller fails to remedy the defects, or obtain such commitment for title insurance
within said period. Purchaser may waive said title defects and close subject to it or demand and
receive a refund of the deposit. The title policy shall be marked up current to the time of closing.
§8. Warranties and Representations. Except for the following representations and warranties, the
Purchaser takes the property in its as is condition without representation or warranty of any kind
by Seller.
8.1 Seller is the fee simple owner of the property and has the power and authority to enter
into this Agreement, and this Agreement is not in violation of any other agreement,
covenant, order or decree or any governmental authority to which Seller or the property is
bound.
8.2 The legal description set forth in this Agreement is an accurate description of the Land
and does not include any adjacent or contiguous land owned by the Seller.
8.3 Purchaser acknowledges that it has inspected and is familiar with the condition of the
property, and has reviewed the two Environmental Site Assessments referenced in
Paragraph 5; and, that Seller has not made any warranties or representations as to the
condition of the property, including, but not limited to, soil conditions, zoning, building
construction, use and occupancy restrictions, or availability of utilities; and, that Seller
has disclosed to Purchaser that there are areas of Environmental concern which may
require remediation or cleanup and that Purchaser agrees to assume the cost of any such
cleanup required; and, that Purchaser does indemnify the Seller against any and all costs
associated with or occurring from remediation or cleanup for environmental reasons or
from any other environmental related issues, claims, or costs.
§9. Cloaing. The Closing shall take place within ninety (90) days after acceptance of this Agreement
by the Oakland County Board of Commissioners (the "Closing Date"). The closing shall occur
at the office of the Title Company issuing the Title Policy, or any mutually convenient location.
At closing, the following shall occur;
9.1 Seller shall execute, and deliver to Purchaser a warranty deed for the Land conveying to
Purchaser marketable fee simple title. Seller shall deliver possession of the Land to
Purchaser at Closing.
9.2 Purchaser shall pay the purchase price, as adjusted, to Seller by wire transfer. The
purchase price shall be wired to Oakland County at: National City Bank, C. Hugh
Dohany, Transfer Account, Account Number 8130416251, ABA 072 000 915, Checking
Account.
9.3 Seller shall pay any real estate taxes or special assessments that have been assessed
against the Land and are due on the Closing Date. The current real estate taxes shall be
prorated to the Closing Date in accordance with the due date basis of the taxing entity in
which the Land is located.
9.4 The deposit, plus any interest accrued, as described in Paragraph 4, shall be credited
against the purchase price.
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9.5 Seller shall execute a real estate valuation affidavit reciting the consideration paid for the
Land and shall pay the cost of state and county transfer taxes. Purchaser shall pay the
recording fee for the warranty deed.
§10. Right of Entry. During the period between Purchaser's acceptance and Seller's acceptance or
rejection of this Agreement, Purchaser shall have the right, at its own peril and risk and with no
liability to be incurred by Seller, to enter upon the Land for purposes of surveying, making such
soil boring or other tests or engineering studies, collecting architectural data and generally doing
such other work as Purchaser deems necessary or desirable in furtherance of Purchaser's reason
for buying the land, after having provided reasonable notice to Seller of such entry. If this
Agreement is not accepted by the Oakland County Board of Commissioners, or if Purchaser does
not purchase the Land, Purchaser will restore the Land to substantially the same condition as
exists on the date hereof. Purchaser shall indemnify and hold Seller harmless from any and all
claims, costs, loss, liability, demands or expenses resulting from such entry on the Land by
Purchaser, or its agents, employees or assigns, at no expense to Seller. In the event Purchaser
does not close on the purchase of the Land, then Purchaser shall provide to Seller copies of all
surveys, studies, plans, and other documents which it obtained in its activities related to
development of the Land.
§I I. Termination.
11.1 In the event of Seller's default under this Purchase Agreement, the Purchaser in addition
to other remedies provided law, shall be entitled to a refund of the Deposit and any
accrued interest or, in its discretion, may elect to enforce performance of this Purchase
Agreement by judicial decree without regard to the adequacy or availability of any other
legal remedy.
11.2 In the event of Purchaser's default, Seller shall be entitled to the deposit and any accrued
interest which, except for the Purchaser's default under Paragraph 10, shall be Seller's
sole and exclusive remedy with respect to the performance of the Purchase Agreement.
11.3 If the Oakland County Board of Commissioners does not accept this Agreement it shall
besull and void and terminate.
§12. Notices. Any notice required or permitted to be given to either Party by the other pursuant to
- this Purchase Agreement shall be deemed to be sufficient if in writing and sent by -certified or
registered mail, postage pre)aid to the address shown on Page 1 of this Agreement or at such
other address as either Party shall designate by written notice to the other. Such notice shall be
deemed given two (2) days after it is posted.
§13. Brokers. Seller and Purchaser each represent that they have not dealt with any broker with
respect to this Agreement and, as a covenant surviving settlement, agree to indemnify and hold
the other harmless from any fees or commissions claimed by any other parties with whom it has
so dealt.
§14. Governing Law. This Agreement is made and entered into in the State of Michigan and shall in
all respects be interpreted, enforced, and governed under the laws of the State of Michigan.
§15. Time of Essence. Time is of the essence for this Agreement.
§16. Amendments or Modifications. Any modifications, rescissions, waivers, releases, or
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PURCHASER:
A.G. Construction
A Michiia); corporgio
o Giillo, P ident
amendments of this Agreement must be in writing and agreed to by both Parties.
§17. Binding Effect.
17.1 This Agreement shall bind the Parties, their successors, and their assigns.
17.2 Prior to closing, Purchaser may assign its rights under this contract, to an entity to be
formed, which shall become the Purchaser at the closing.
§18. Condemnation.
18.1 In the event that notice of any action, suit or proceeding shall be given prior to the closing
date for the purchase of condemning.' any part of the property, Purchaser may terminate
this Agreement within fifteen (15) days after receiving notice of such condemnation
proceeding. Purchaser must notify the Seller in writing of its decision to terminate the
Agreement.
18,2 Upon receipt of this notice of termination, the deposit, including the interest accrued,
shall be refunded to Purchaser, and the proceeds resulting from the condemnation shall be
paid to Seller.
18.3 In the event Purchaser shall not elect to terminate this Agreement, the proceeds of the
condemnation shall be assigned and belong to Purchaser.
§19. Signaee. As long as this Agreement remains in effect, Purchaser and/or any affiliated company
or agent of Purchaser, shall have the exclusive right to erect and maintain signa.ge on the
property advertising the property for sale, lease and/or development, provided that any such
signage shall comply with all applicable sign ordinances, and shall be removed at Purchasers
expense if this sale does not go through. '
• §20. Entire Aereement. This Agreement contains the entire Agreement between the Parties. This
Agreement supersedes all other agreements, either oral or in writing, between the Parties. The
singular number shall include the plural and the plural shall include the singular.
To evidence their intention to be bound by the terms and conditions of this Agreement, the Parties have
signed this Agreement on the date appearing below each of their respective names.
ACCEPTED BY SFT LER:
County of Oakland
A Michigan corporation
By: By:
Thomas A. Law, Chairperson
Oakland County Board of
. Commissioners
Dated: Vag /o l Dated:
PURCHASER HEREBY ACICNOWLEDGES DELIVERY OF THE ACCEPTED PURCHASE
AGREEMENT.
A.G. Construction Company,
A Michigan corporation
By:
Angelo G-rillo, President
Date: , 2002
The Land
Parcel No. 14-15-276-001
That part of the East % of the Northeast 1/4 of Section 15, T3N, R10E, City of Pontiac,.
Oakland County, Michigan, lying Easterly of the Easterly right of way line of M-24
highway (Perry Street), said right of way line being 78.00-ft. Easterly of the centerline of
M-24 as established by MDOT Project No. 28561A, control section 63091, construction
sheets No. 18-22. Said parcel more particularly described as: Beginning at the East 1/4
corner of said section 15 thence S87°59'53" W, 932.36-ft. along the East-West 1/4 line of
said section 15 to the East line of the Easterly right of way line of M-24 highway; thence
along the said right of way line on a non-tangent curve to the left a distance of 1361.56-
ft., having a radius of 2213.41-ft., passing through a central angle of 35°14'42", with a
chord bearing N24°50'04" E 1340.20-ft.; thence continuing along said right of way line
N 07°1243" E, 548.82-ft.; thence continuing along said right of way line on a tangent
curve to the right a distance of 626,38-ft, having a radius of 1646.33-ft. to a point on the
East line of said section 15; thence along said line S 02°37'39E, 2322.37-ft, to the point
of Beginning. Containing 20.06 acres of land, more or less and being subject to existing
easements and restrictions of record, if any.
NATEMPFILE\1numner\2Q0212002-0001 thru 2002-0C99\2002-0091 Final Sale of 4-H Property\4-HA.doc
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Resolution #02238 September 19, 2002
Moved by Palmer supported by Melton the resolution be adopted.
AYES: Melton, Middleton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Amos,
Appel, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Garfield, Gregory, Law,
McPherson. (22)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on September
19, 2002, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the „pal of tb4 County of Oakland at Pontiac,
Michigan this 19th day of September, 2002.
/11)
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G. William Caddell, County Clerk