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17-R-28 - Agreement with Schertz 1518 LTD to purchase approximately 5.3 acres land for construction of fire station threeA RESOLUTION BY THE CITY COUNCIL OF THE CITY O SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER O ENTER INTO AN AGREEMENT WITH SCHERTZ 1518 LTD TO PURCHASE APPROXIMATELY O • THE CONSTRUCTION OF FIRE STATION THREE. WHEREAS, the citizens of the City of Schertz voted to approve general obligation bonds for the construction of a new fire station in the southern section of Schertz; and WHEREAS, an ISO Based Fire Station Location study was performed by a professional engineer as a part of the City's overall facility master plan; and WHEREAS, the Fire Station Location study identified three preliminary locations in the vicinity of F.M. 1518 and Ray Corbett Drive as appropriate locations for fire station three; and WHEREAS, additional review was conducted on these three preliminary locations based upon potential site layout, utility availability and accessibility, drainage and flooding concerns, emergency travel routes, and options for safely entering into normal traffic flow to rank order the three locations from most feasible to least feasible; and WHEREAS, a parcel of land on the north side of Lower Seguin Road, approximately 340 feet east of Hollering Vine was determined to be the most feasible location for the new fire station; and WHEREAS, negotiations with Schertz 1518 LTD have resulted in a purchase agreement being formed; and now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to enter in an agreement for the purchase of approximately 5.3 acres of land for the location of Fire Station Three with a general value conforming to an appraised value for land by a certified land appraiser conforming to the Uniform Standards of Professional Appraisal Practice and Title XI Regulations and related standards. Section 2. City Council authorizes the City Manager to perform due diligence to confirm that this parcel of land is suitable in condition for the construction of a fire station. Section 3. City Council acknowledges that once all due diligence is complete and it is confirmed that this land is suitable for its intended usage, that the City will then close on the purchase of the land. Section 4. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 5. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 6. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 7. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 8. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 9. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. 1 PASSED AND ADOPTED, this d day of May, 2017. CITY OF Z, TEXAS -- — V Michael R. Carpenter ATTEST: City Secretary, Brenda Dennis (CITY SEAL) 50506221.1 - 2 - REAL ESTATE PURCHASE AGREEMENT THIS REAL ESTATE PURCHASE AGREEMENT (the "Agreement ") is made and entered into as of the Effective Date (being the date of last execution hereof by the parties), by and between: SCHERTZ 1518, LTD., a Texas limited partnership, having an address of 314 E. Commerce, Suite 600, San Antonio, Texas 78205 (the "Seller "), and THE CITY OF SCHERTZ, TEXAS, a Texas municipal corporation, having an address of 1400 Schertz Parkway, Schertz, Texas 78154 (the "Buyer "). FOR GOOD AND VALUABLE CONSIDERATION, including without limitation the covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer hereby agree as follows: 1. SALE AGREEMENT; PROPERTY. Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller, on the terms hereinafter stated, approximately 5.3 acres of land located in the City of Schertz, Bexar County, Texas, the legal description of which will be generated in conjunction with a survey of such parcel, together with all improvements and fixtures located thereon, if any, and all and singularly rights and appurtenances pertaining thereto (collectively, the "Property "). The proposed land is located approximately 340 feet east of Hollering Vine on the north side of Lower Seguin Road. A proposed site plan with actual dimensions of the land is more particularly described on Exhibit A attached hereto. The Property includes surface rights only and does not include the transfer of mineral rights, which shall remain with the Seller. 2. PURCHASE PRICE. Seller agrees to pay to Buyer a purchase price of $2.88 per square foot, with the exact total amount determined following the survey of the subject parcel (the "Purchase Price "). The calculation of the Purchase Price shall not include any portion of the Property that is anticipated to become dedicated right of way. The parties further acknowledge that the Purchase Price payable by Buyer is subject to certain requirements, rules, regulations and statutes of state and local governmental agencies. The Purchase Price shall be payable as follows: 2.1 Earnest Money. Upon Seller's execution of this Agreement and delivery thereof to Buyer (by mail, facsimile or email), Buyer shall deposit $1,000.00 in current U.S. funds (the "Earnest Money ") with the Title Company (defined below) to be applied against the Purchase Price at Closing (as defined below) or otherwise disposed of pursuant to the terms of this Agreement. 2.2 Cash Payment. At Closing, Buyer shall pay to Seller the balance of the Purchase Price, subject to adjustment as hereinafter provided, in immediately available current U.S. funds or such other form of consideration as may be mutually acceptable to the parties hereto. 3. TITLE AND SURVEY REVIEW. 3.1 Title Commitment. As soon after the Effective Date as reasonably possible, Seller shall obtain a commitment for the issuance by Chicago Title Company, (the "Title Company "), Contact Paula McGee; phone (210)482 -3748; email paula.mcgee @ctt.com of a TLTA owner's title insurance policy, with extended coverage, insuring title to the Property to be good and marketable fee simple (the "Commitment "), together with legible copies of all recorded documents constituting exceptions under the Commitment (collectively, the "Exception Documents "). . 3.2 Survey. As soon after the effective date as reasonably possible, Seller shall obtain and provide a boundary survey of the Property (the "Survey ") prepared by a registered professional surveyor. 3.3 Title and Survey Obiections; Cure Period. Within twenty (20) days after Buyer's receipt of the Commitment, Exception Documents and Survey, Buyer shall give written notice to Seller of (i) any matters contained therein to which Buyer objects, has comments or wants additional information on; and (ii) any pre - Closing requirements (the "Title Objection Letter"). Any matters identified in the Commitment as conditions to or requirements for the issuance of the Title Policy (as defined in Section 16 below) will automatically constitute objections by Buyer. Seller shall have 20 days after receipt of Buyer's Title Objection Letter to use its best efforts to cure and /or satisfy the same, as the case may be, to the reasonable satisfaction of Buyer. If an objection is not timely cured or requirement timely satisfied, Buyer shall have the option to either (a) waive the same; (b) extend Seller's period for curing objections or satisfying requirements; or (c) terminate this Agreement and receive a refund of the Earnest Money (along with any interest earned thereon), in which event both parties will be relieved of any further liability hereunder (except as otherwise expressly provided herein). 4. BUYER'S RIGHT OF INSPECTION; DUE DILIGENCE. Seller agrees that Buyer, its representatives and agents, will be permitted a period of 60 days, commencing on the Effective Date (the "Inspection Period "), within which to enter upon and inspect the Property and to conduct, at Buyer's expense, any and all feasibility, environmental, or other studies, analyses or examinations of the Property as Buyer deems necessary or desirable, and to satisfy itself with regard to zoning and permitting issues, availability of utilities, and all other matters related to the Property and /or Buyer's development thereof. Buyer shall have the option to extend the Inspection Period for one additional 30 -day periods. If during the Inspection Period (as extended, as the case may be) Buyer, in its sole and absolute discretion, determines that the Property is unsatisfactory in any respect, Buyer shall have the option to terminate this Agreement by written notice to Seller. In such event, the Earnest Money, along with any interest earned thereon, shall immediately be returned to Buyer and both parties will be relieved of all obligations hereunder (except as otherwise expressly provided herein). 5. SELLER'S DELIVERIES BEFORE CLOSING. Within 10 days after the Effective Date, Seller shall make available to Buyer all plans, engineering or environmental reports, surveys and records, in Seller's possession or control, which relate to the ownership, development, operation or condition of the Property or any part thereof. 6. SELLER'S WARRANTIES. Seller represents and warrants the following as of the Effective Date and the Closing: 6.1 Authority of Seller. Seller has full power and authority to execute, deliver and perform under this Agreement and such execution, delivery and performance have been specifically authorized by all requisite organizational action of Seller. Upon execution, this Agreement will be valid and binding upon Seller, and enforceable against Seller in accordance with its terms. 6.2 No Violations /Conflicts. The execution by Seller of this Agreement and the consummation by Seller of the transactions contemplated hereby do not and will not (a) conflict with or result in a breach of any of the terms or provisions of, or constitute a default or a condition which, with notice or lapse of time, or both, would ripen into a default under (i) any bond, debenture, note or other evidence of indebtedness, or (ii) any contract, indenture, mortgage, loan agreement, lease, joint venture or other agreement or instrument to which Seiler is a party or by which Seller or any of its properties are bound; or (b) result in any violation of any governmental requirement, ordinance, regulation, law or statute. 6.3 Eminent Domain. To Seller's knowledge, there are no pending or threatened governmental proceedings in eminent domain, for rezoning, for building moratorium or otherwise, which would affect the Property or any part thereof, nor any facts in existence which may give rise to any such action or proceeding. 6.4 Litigation. There are no legal actions, suits or other legal or administrative proceedings or investigations pending or threatened against Seller or the Property, and Seller is not aware of any facts that might result in any such action, suit, investigation or other proceeding. 6.5 Taxes and Assessments. No claim or liability is pending or has been assessed, asserted or threatened, or will be assessed or asserted against Seller in connection with any ad valorem taxes against the Property (and personal property taxes owed by Seller related thereto, if any) or any special assessments encumbering the Property, which are or may become a lien or charge against the Property or any part thereof. Seller has not received any notice of any special assessment or increases in the assessed valuation of taxes or other impositions of any nature which are pending or being contemplated with respect to the Property, or any part thereof. 6.6 No Agreements or Commitments. Except as disclosed in writing to Buyer prior to the Effective Date, Seller has not entered into (i) any agreement, lease, option, right of first refusal, commitment or arrangement granting to any person or entity, other than Buyer, the present or future right to purchase, occupy, lease or otherwise acquire an interest in the Property or any part thereof, (ii) any agreement, commitment or arrangement regarding the development of the Property or any part thereof and from the Effective Date through Closing, Seller will not enter into any such agreement or arrangement or any service agreement affecting the Property or any part thereof, without Buyer's prior written approval. 6.7 Governmental Action /Requirement. Seller has not received notice of any violation of any ordinance, regulation, law or statute from any governmental agency pertaining to the Property, or any part thereof, and to Seller's knowledge, no governmental or quasi - governmental authority has imposed any requirement that a developer of the Property pay, whether directly or indirectly, any special fees or contributions, or incur any expenses or obligations, in connection with any development of the Property, or any part thereof. 6.8 Environmental. To the best of Seller's knowledge and belief after due inquiry: (a) no Hazardous Materials (as defined herein) are now located on, under or at the Property, and neither Seller nor any other person has ever caused or permitted any Hazardous Materials to be placed, held, located or disposed of on, under or at the Property or any part thereof, (b) no part of the Property contains any asbestos or asbestos containing materials, any polychlorinated biphenyls ( "PCBs "), or any underground storage tanks ( "USTs "), or has ever been used as a dump site or storage site (whether permanent or temporary) for any Hazardous Materials; (c) no property adjoining the Property is being used, or has been used at any previous time for the disposal, storage, treatment, processing or other handling of Hazardous Materials nor is any other property adjoining the Property affected by Hazardous Materials contamination; and (d) no investigation, administrative order, consent order and agreement, litigation or settlement with respect to Hazardous Materials or Hazardous Materials contamination is proposed, threatened, anticipated or in existence with respect to the Property or any adjoining property. As used herein, "Hazardous Materials" means those elements or compounds, including, but not limited to asbestos, petroleum products and PCBs, which are now or at any time hereafter contained in the list of hazardous substances adopted by the Environmental Protection Agency ( "EPA ") or the list of toxic pollutants designated by Congress or the EPA or which are defined as hazardous, toxic, pollutant, flammable, infectious or radioactive by any of the Environmental Laws. "Environmental Laws" means any federal, state or local laws, ordinances, statutes, codes, rules, regulations, orders, or decrees now or hereinafter promulgated relating to (a) pollution, (b) protection of human health, natural resources or the environment, (c) the treatment, storage or disposal of Hazardous Materials, or (d) the emission, discharge, release, or threatened release of Hazardous Materials into the environment. 6.9 Wetlands. No part of the Property is wetlands property. The foregoing representations and warranties will survive the Closing, will not be merged into the documents executed at or in conjunction with the Closing, and will not be affected by an investigation, verification or approval by a party hereto or any person acting on behalf of a party hereto. 7. OTHER CONDITIONS. The parties agree that, in addition to all of the other terms and conditions set forth in this Agreement, that: (i) the design of any improvements to be constructed on the Property shall be approved by The Crossvine Reviewer (composed of Chris Price, Bradley Bechtol, Brad Pittenger, and Felicia Foster) (including conceptual site plan, schematic building size and location, preliminary utilities, and exterior materials.) (ii) that Buyer shall be responsible for the costs and expenses associated with the design and construction of (a) any and all drainage improvements, including, but not limited to detention or retention facilities, (b) utility infrastructure, (c) traffic improvements, including, but not limited to traffic signals, turn lanes, acceleration or deceleration lanes, curb cuts or entrances and that such facilities shall be sized to accommodate any anticipated improvements by Seller adjacent or proximate to the Property and (iii) Buyer and Seller shall agree upon the terms of cross access easements, construction of perimeter roads adjacent to the Property and similar matters prior to the expiration of the Inspection Period. Seller understands and acknowledges that the intended use of the site is for public safety vehicles and that unrestricted exclusive vehicle access for emergency vehicles will be mandatory element of the site plan design. (d) Buyer shall be responsible for platting the parcel and dedicating the required Right of Way, however, the portion of the parcel dedicated for Right of Way will not be used to calculate the purchase price of the parcel. The location will be utilized to build Fire Station # 3, a one or two story structure of approximately 15,000 square feet with typical fire station amenities. Additionally, the Buyer may utilize the land for other City facilities as determined by the Buyer. The Crossvine Reviewer will have the same approval capacity on any other facilities constructed on the location as they do with the Fire Station structure. Site work will include any required street extension design as well as all utilities and the appropriate number of parking spaces required by the final design. R. TIME AND PLACE OF CLOSING. The consummation of the transaction contemplated by this Agreement (the "Closing") shall take place within sixty (60) days of the end of the Inspection Period (as extended, as the case may be), with the exact time and date for Closing to be designated by Buyer upon not less than 2 business days prior notice (which may be provided in writing or by telephone), subject to the reasonable approval of Seller. The Closing will take place at the offices of the Title Company (whether in person or as a "paper closing ", as each party elects) or at such other place as may be agreed to by Buyer and Seller. 9. SELLER'S DELIVERIES AT CLOSING. At Closing, Seller shall deliver (or cause to be delivered) to Buyer the following: 9.1 Deed. A duly- executed and acknowledged General Warranty Deed conveying to Buyer marketable fee simple title to all of the Property (the "Deed ") free of all liens and encumbrances and defects in title. The Deed will be in form prepared by Buyer, subject to the reasonable approval of Seller. 9.2 Lien and Possession Affidavit(s). An Affidavit or Affidavits executed by Seller, to the effect that (i) the Property is free from claims for mechanics', materialmen's and laborers' liens and (ii) there are no parties in possession of the Property or any part thereof, with such Affidavit(s) to be in form acceptable to the Title Company and sufficient to permit deletion of the pertinent standard exceptions. 9.3 Possession. Possession of the Property will be delivered at Closing. 9.4 Closing Statement. The closing statement, prepared by the Title Company, reflecting the financial terms of the transaction contemplated by this Agreement (the "Closing Statement "), executed by Seller. 9.5 Further Instruments. Any and all further instruments which Buyer or the Title Company shall request of Seller in order to meet requirements of the Commitment or to otherwise effect the conveyance of the Property as contemplated in this Agreement. 10. BUYER'S DELIVERIES AT CLOSING. At Closing, Buyer shall deliver to Seller (i) the remainder of the Purchase Price, subject to proration and adjustment, as provided herein; (ii) the Closing Statement, executed by Buyer; and (iii) any and all further instruments which Seller or the Title Company shall request of Buyer in order to meet requirements of the Commitment or to otherwise effect the conveyance of the Property as contemplated in this Agreement. 11. CLOSING COSTS. The Closing costs of this transaction will be allocated as follows: BUYER COST OR EXPENSE SELLER Seller's attorney's fees, if any X X Buyer's attorney's fees, if any Commitment /Title Policy premium (basic coverage) X X Title Policy premium (extended coverage) Survey, as revised X Documentary stamps, transfer taxes or fees, if any X Recording fees to clear/ un- encumber title X X Recording fees for deed Title Company closing or escrow charges Broker fees /Commissions X 12. BROKERAGE. Any broker fees or commissions owed to persons employed by Buyer in connection herewith shall be paid by Buyer. Seller represents that it has not dealt with any real estate broker, salesperson or finder, in connection with the transactions contemplated by this Agreement and agrees to indemnify, defend and hold Buyer harmless from and against any and all liabilities and claims for broker fees, commissions or similar charges by anyone purporting to have acted on Seller's behalf, in regard to this Agreement. 13. DEFAULT AND REMEDIES. 13.1 Buyer's Default - Seller's Remedy. If Buyer defaults in its performance hereunder (except as excused by Seller's default) and fails to cure such default within 10 days after receipt of written demand therefore from Seller, then Seller shall have the exclusive option to either (i) waive the default; or (ii) terminate this Agreement by written notice to Buyer and upon such termination Seller shall be entitled to receive the Earnest Money (along with any interest earned thereon) as liquidated damages and not as a penalty, it being specifically agreed that the actual damages to Seller as a result of Buyer's default would be difficult or impossible to ascertain. Upon such termination and receipt of the Earnest Money, the parties will be discharged from any further obligations and liabilities hereunder (except as otherwise expressly provided herein). 13.2 Seller's Default - Buyer's Remedy. If Seller defaults in its performance hereunder (except as excused by Buyer's default) and fails to cure such default within 10 days after receipt of written demand therefore from Buyer, or in the event any of Seller's representations or warranties are found to be false in any material respect, Buyer shall have the option to (i) seek specific performance; (ii) waive such default; or (iii) terminate this Agreement by written notice to Seller and upon such termination the Earnest Money (along with any interest earned thereon) shall be returned to Buyer and Buyer may, if it so elects, pursue against Seller any and all available remedies, including but not limited to damages. 14. MUTUAL INDEMNITY. 14.1 By Buyer. Buyer agrees to hold Seller harmless from any claim, action, demand, judgment, cost and expense (including without limitation, reasonable attorneys' fees) related to the Property (except that which by this Agreement is to remain the obligation of Seller), to the extent arising or accruing subsequent to the date of Closing, whether in tort or contract, and whether the same be filed in court or not. 14.2 By Seller. Seller agrees to defend, indemnify and to hold Buyer harmless from any claim, action, demand, judgment, cost and expense (including without limitation, reasonable attorneys' fees) related to the Property, to the extent arising or relating to an event occurring prior to the date of Closing, no matter when the same is instituted (i.e. prior to or after the date of Closing), whether in tort or contract, and whether the same be filed in court or not. The indemnification obligations of this Section 14 are in addition to any other indemnity obligations under this Agreement and shall survive the Closing or earlier termination of this Agreement for a period of four (4) years. 15. CASUALTY LOSS; EMINENT DOMAIN. All risk of loss by fire or other casualty in relation to the Property will be on Seller up to and including the date of Closing. If eminent domain proceedings are commenced with respect to any part of the Property prior to the date of Closing, or if Buyer is advised by any authority having eminent domain powers that a condemnation of any part of the Property is contemplated, then Buyer, at its option, may (i) terminate this Agreement, in which event the Earnest Money (along with any interest earned thereon) shall be returned to Buyer and the parties will be relieved of all obligations hereunder (except as otherwise expressly provided herein); or (ii) continue this Agreement in force, in which event any condemnation proceeds received by Seller shall be immediately paid over to Buyer (or escrowed with the Title Company for the account of Buyer, if prior to Closing), which obligation of Seller will survive the Closing. 16. CONDITIONS PRECEDENT TO OBLIGATION OF BUYER TO CLOSE. In addition to any other conditions precedent herein, the obligation of Buyer to close under this Agreement is subject to the following: 16.1 Title. Prior to Closing, Buyer shall have received and approved of the marked -up Commitment or pro forma title policy, indicating the Title Company's agreement to issue, in due course, a TLTA owner's policy of title insurance (the "Title Policy "). 16.2 Representations and Warranties. All representations and warranties of Seller shall be true and correct on the date of Closing with the same force and effect as if then made. If any condition precedent is not timely satisfied, Buyer shall have the right, at its option, to terminate this Agreement by written notice to Seller, in which event, the Earnest Money (along with any interest earned thereon) shall be immediately returned to Buyer and both parties shall be relieved of all obligations hereunder (except as otherwise expressly provided herein). 17. PRORATION OF TAXES; ROLLBACK TAXES; ESCROW AGREEMENT. 17.1 In General. All general and ad valorem taxes accruing in or assessed with respect to the Property during the calendar year of the Closing shall be prorated on the basis of such calendar year between Buyer and Seller as of the date of Closing, with Seller to have the last day. If Closing shall occur before the tax rate is fixed for the then current year, the apportionment of taxes shall be upon the basis of the tax rate of the preceding year applied to the latest assessed valuation; provided that, upon determination of the tax rate and assessment for the calendar year of the Closing, the parties shall promptly make any monetary adjustment necessary to account for any variance in such taxes. 17.2 Rollback Taxes; Larger Tax Parcel; Escrow Agreement. Any and all rollback taxes or other taxes assessed against the Property covering periods prior to Closing (herein, "Additional Taxes "), irrespective of the triggering event, timing of assessment, or whether notice thereof is received prior to or after Closing, shall be the sole obligation of Buyer, it being expressly agreed that, in no event, shall Seller have any responsibility or liability for Additional Taxes, Buyer shall timely pay the same and Buyer shall indemnify, defend and hold Seller harmless from any claims, damages or expenses (including but not limited to attorney's fees) related thereto. If it is determined prior to Closing that (a) the Property is or will be subject to Additional Taxes and /or (b) the Property is part of a larger tax parcel (the "Primary Tax Parcel "), the parties shall enter into an escrow agreement on or before Closing, which shall provide for (as applicable) (i) the escrow of sufficient funds by Seller to pay any Additional Taxes, and (ii) the escrow of sufficient funds by the parties to pay all taxes assessed (or to be assessed) against the Primary Tax Parcel, in accordance with an agreed upon formula for reasonably allocating the same between the Property and the remaining portion of the Primary Tax Parcel (the "Allocation Formula "). 17.3 Insufficient or Surplus Escrow Funds. If there are inadequate funds in escrow to satisfy any Additional Taxes, Buyer shall pay therein such additional funds as are necessary, within 5 days from the date Seller receives notification of an inadequacy. If there are inadequate funds in escrow to satisfy taxes attributable to the Primary Tax Parcel, the parties shall pay therein such additional funds as are necessary, in accordance with the Allocation Formula, within 5 days from the date the parties receive notification of an inadequacy. In the event there is a surplus of funds after Additional Taxes and taxes attributable to the Primary Tax Parcel have been paid in full, such surplus is to be refunded (a) to Seller, as to any surplus escrowed to cover Additional Taxes and /or (b) to Seller and Buyer, in accordance with the Allocation Formula, as to any taxes attributable to the Primary Tax Parcel. 18. NOTICE. All notices or other communication hereunder must be in writing (except where expressly permitted otherwise) and given by personal delivery or sent by (i) registered or certified mail return receipt requested, postage prepaid, (ii) nationally recognized overnight courier service, or (iii) facsimile transmission, addressed as follows (unless written notice of change thereof is provided): TO SELLER: Schertz 1518, Ltd. 314 E. Commerce, Suite 600 San Antonio, Texas 78205 Attn: Chris Price Telephone: (210)241 -3773 Email: chris@pricecompanies.net With a copy to: Bradford L. Pittenger Round One Capital 9525 N. Capital of Texas Hwy., #123 Austin, Texas 78759 Tel: (512)659 -1988 Email: brad @roundonecaPital.com TO BUYER: City of Schertz 1400 City of Schertz Parkway Schertz, Texas 78154 Attn: Dudley Wait Telephone: (210)619 -1025 Facsimile: (210)619 -1029 E -mail: dwait @schertz.com With a copy to: City of Schertz 1400 City of Schertz Parkway Schertz, Texas 78154 Attn: John Kessell Telephone: (210)619 -1020 Facsimile: (210)619 -1029 E -mail: jkessell @schertz.com Notice shall be deemed received on the earlier of (i) actual receipt; (ii) 3 business days after deposit in the U.S. Mail; (iii) the first business day after deposit with an overnight courier; or (iv) if by facsimile transmittal, upon receipt of proof of transmission. Any notice or communication not received because of a change of address or facsimile number, without notice to the other party thereof, or refusal to accept delivery, will be deemed received, notwithstanding the same, as set forth above. 19. CONFIDENTIALITY; NON - DISCLOSURE. Buyer and Seller hereby agree that all aspects of the transaction contemplated by this Agreement shall be kept strictly confidential and acknowledge that disclosure of the fact that the parties have entered into this Agreement or of any of the terms hereof could cause irreparable harm to Buyer. Except as may be required by law or as may be necessary to evaluate the Property in connection with the purchase contemplated by this Agreement, Buyer and Seller shall not divulge any information to other persons or entities, including, without limitation, appraisers, real estate brokers, competitors of the parties, or any other prospective purchasers; provided, however, that the foregoing shall not preclude Buyer from disclosing information to its employees, agents and professional advisors, or Seller from disclosing information to individuals upon prior written consent of Buyer, so long as such individuals acknowledge the confidential nature of the information disclosed to them and agree to be bound by the terms and conditions of this Section 19. Furthermore, Buyer and Seller, hereby agree that neither will release, or cause or permit to be released, any press notices, publicity (oral or written), or advertising promotion relating to, or otherwise announce or disclose or cause or permit to be announced or disclosed, in any manner whatsoever, the terms, conditions or substance of this Agreement or the transactions contemplated hereby, without first obtaining the written consent of the other party hereto. 20. MISCELLANEOUS. Time is of the essence in this Agreement. This Agreement embodies the entire understanding with respect to the subject matter hereof, may not be modified except by a written instrument signed by the parties and shall be binding upon and inure to the parties, their respective successors and assigns. The terms hereof shall not be construed in favor of or against either party, but shall be construed as if Buyer and Seller jointly prepared this Agreement. If any provisions of this Agreement is held to be void or unenforceable, such provision will be deemed modified so as to conform as nearly as possible to the void or unenforceable provision while still remaining valid and enforceable, and the remaining terms of this Agreement shall not be affected. This Agreement may be executed by facsimile, electronic or original signature of the parties and in any number of counterparts, each of which (assuming no modification or alteration) will constitute an original and all of which, when taken together, will constitute one and the same instrument. It is the intent of the parties that, to the extent lawful, the laws of the State in which the Property is located govern the validity and interpretation of this Agreement. Except as otherwise provided in this Agreement, the rights of Seller can be assigned, in whole or in part, only upon the prior written consent of Buyer. Buyer may assign this Agreement, in whole or in part, provided that the assignee assumes all obligations of Buyer under this Agreement. If either party commences legal action against the other to enforce its rights hereunder, the prevailing party in such action shall be entitled to recover from the other, in addition to any other relief granted, its reasonable attorney's fees, costs and expenses incidental thereto. If the terms of this Agreement provide for performance of any act or the expiration of any time period on a Saturday, Sunday or federal holiday, the due date or expiration date shall take place on the next date that is not a Saturday, Sunday or federal holiday. IN WITNESS WHEREOF, this Agreement is executed effective as of the Effective Date. SELLER: SCHERTZ 1518, LTD., a Texas limited partnership, By: MTR- Schertz 1518 Management Co., LLC, a Texas limited Liability Company, its general partner Christopher K. Price, President Date of Execution: 12017 BUYER: CITY OF SCHERTZ, TEXAS By:_ Name: Title: Date of Execution: 2017 �_ .r . ..-