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HomeMy WebLinkAboutJPX SOLUTIONS - CONTRACT - RFP - 7584 REAL ESTATE BUYERS AGENTEXCLUSIVE RIGHT-TO-BUY CONTRACT (BUYER AGENCY) The City of Fort Collins, Colorado, a municipal corporation ("City") appoints JPx Solutions, LLC, a Colorado limited liability company ("Broker") as the City's exclusive agent for the purpose of representing the City to acquire interests in real property for the City's Poudre River Downtown Project (the "Project") under the terms specified herein. This contract shall be effective on the date signed by the City. 1. Scope of Services. The City is seeking to acquire one or more properties appropriate for the Project ("Property" or "Properties"). To assist the City in achieving this goal, Broker shall perform the tasks identified as being Broker's responsibility in the Scope of Services attached hereto as Exhibit "A" and incorporated herein by reference. The City shall be responsible for the tasks identified in Exhibit A as the City's responsibility. 2. Effect of Exclusive Buyer Agency Contract. Broker is the limited agent of the City and will represent only the City in transactions involving Properties for the Program. Any compensation to Broker which is conditioned upon the acquisition by the City of interests in real property will be earned by Broker whenever such interests are acquired by the City directly or indirectly, without any discount or allowance for any efforts made by the City or any other person in connection with the acquisition of such interests by the City except as described in ?(c) below. The City shall hire no other Brokers to acquire Property for the Program during the period of this contract. However, the City reserves the right to allow City staff to seek out and negotiate for Properties for the Program in addition to those Properties identified by Broker as part of Broker's work hereunder. The City reserves the right not to purchase any Properties presented by Broker. 3. Purchase. "Purchase of the Property" or "Purchase" means the voluntary acquisition of any interest in the Property. 4. Property. The Property or Properties to be acquired shall meet the criteria listed on Exhibit Exclusive Right to Buy Contract 7584 Real Estate Agent Page 1of26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 "B" attached hereto and incorporated herein by this reference. 5. Duration of Agency. Broker's authority as the City's exclusive agent shall begin March 3, 2014 and shall continue until February 28, 2016 with the option at the City's sole discretion for up to two (2) additional one (1) year extensions. 6. Broker's Services. a) Broker will exercise reasonable skill and care for the City, and make reasonable efforts to acquire properties identified by the City for the Project from willing sellers. The Broker will negotiate the terms of the sale and if necessary find and evaluate potential replacement properties (of similar zoning/use, i.e. residential , commercial or light industrial), for City review. b) Broker will promote the interests of the City with the utmost good faith, loyalty, and fidelity, including but not limited to: 1) seeking a price and terms which are acceptable to the City, 2) procuring acceptance of any offer to purchase property and assisting in the completion of the transaction; 3) presenting all offers to and from the City in a timely manner, regardless of whether the City is already a party to a contract to purchase Property; 4) disclosing to the City adverse material facts actually known to Broker, counseling the City as to any material benefits or risks of the transaction which are actually known to Broker, 5) advising the City to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker, and 6) accounting in a timely manner for all money and property received. Exclusive Right to Buy Contract 7584 Real Estate Agent Page 2 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 c) Broker shall not disclose to the seller or any other third party, without the informed consent of the City: 1) that the City is willing to pay more than the purchase price for Property; 2) what the City's motivating factor(s) are; 3) that the City will agree to financing terms other than those offered; 4) any material information about the City unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing; 5) any facts or suspicions regarding circumstances which would psychologically impact or stigmatize Property; and 6) any City confidential or privileged information. d) Broker shall disclose to any prospective seller all adverse material facts actually known by Broker, including but not limited to adverse material facts concerning the City's financial ability to perform the terms of the transaction. 7. Compensation to Broker. a) In consideration of the services to be performed by Broker, the City shall pay Broker a fee equal to a percentage of the purchase price of a Property and/or a Replacement Property. This fee is conditioned upon the City's Purchase of the Property or the acquisition by the City of a property not in compliance with the requirements specified in Section 4 but acquired by the City through Broker's work under this contract. This fee is payable upon closing of the transaction(s) , subject to the provisions of Section 9. b) The fee shall apply to Property contracted for during the original term of this contract or any extension(s) and shall also apply to Property contracted for within sixty (60) days after this contract expires or is terminated (Holdover Period) if the Property was shown Exclusive Right to Buy Contract 7584 Real Estate Agent Page 3 of26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 or specifically presented in writing to the City by Broker during the original term or any extension(s) of the term of this contract; provided, however; that the City shall owe no commission to Broker under this subsection if a commission is earned by another licensed real estate broker acting pursuant to an exclusive right-to-buy contract or an exclusive agency Listing contract entered into during the Holdover Period. c) The percentage fee paid shall be as follows: 1) When the Broker completes all negotiations with a seller and the property can be brought under contract by Broker using the City's standard form purchase and sale agreement with no material changes or additional contingencies, Broker's fee will be 5%. For clarification, the following activities will not be considered material changes except in the event the cumulative effort required by City staff to review and incorporate such change or changes exceeds one (1) hour total staff time; a) filling in blanks, b) crossing out or omitting agreed upon section of the contract, c) minor changes in wording or, d) the insertion of straightforward and common practice real estate contract terms that are acceptable to the City. 2) When the Broker negotiates with a seller and brings the terms of a transaction to the City but City staff must complete the document preparation and review because the property cannot be brought under contract without material changes to the City's standard form purchase and sale agreement, additional agreements such as easements or a lease back to seller, action by the City Council, replacement property, additional contingencies or other similar issues, Brokers fee will be 4%. For clarification, a material change to the City's purchase and sale agreement shall be defined as a change or changes to the terms which require City staff to expend more than one (1) hour in total to review, assess, Exclusive Right to Buy Contract 7584 Real Estate Agent Page 4 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 comment on, edit, take to the City Council, and/or take other action to complete such change or changes. d) Whether the City shall purchase a Property and whether the City will complete the document preparation to bring a Property under contract or shall instruct Broker to do so is in the City's sole discretion. e) Buyer is obligated to pay Brokers fee. However, Broker is authorized and instructed to request payment of Broker's fee by listing broker or by seller from the transaction. 8. Forms of Agreement. Any agreements, contracts or other legal documents used in acquiring property for the City under this contract must be in a form acceptable to and approved by the City. The City's standard agreement for purchase and sale of real property is attached hereto as Exhibit "C". 9. Failure to Close. If a seller defaults under the terms of an agreement for purchase and sale of Property, or if the City terminates an agreement for purchase and sale for cause, Broker shall not be entitled to a fee. If the City defaults under the terms of an agreement for purchase and sale of Property, Broker's fee will be due and payable immediately. Broker shall not be obligated to advance funds for the City. 10. Disclosure of Broker's Role. At the earliest reasonable opportunity, Broker shall inform any prospective sellers or their brokers with whom Broker negotiates pursuant to this contract that Broker is acting on behalf of the City. 11 . Disclosure of City's Identity. Broker does have the City's permission to disclose the City's identity to third parties without prior written consent of the City. 12. Assignment by Citv. No assignment of the City's rights or obligations under this contract and no assignment of rights or obligations in property obtained for the City under this contract shall operate to defeat any of Broker's rights. Exclusive Right to Buy Contract 7584 Real Estate Agent Page 5 of26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 13. Nondiscrimination. The parties agree not to discriminate unlawfully against any prospective seller because of the race, creed, color, sex, marital status, national origin, familial status, physical or mental handicap, religion or ancestry of such person. 14. Alternative Dispute Resolution: Mediation. If a dispute arises relating to this contract and is not resolved, the parties shall first proceed in good faith to submit the matter to mediation. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. In the event the entire dispute is not resolved within thirty (30) calendar days from the date written notice requesting mediation is sent by one party to the other, the mediation, unless otherwise agreed, shall terminate. This section shall not alter any date in this contract, unless otherwise agreed. 15. Attorney Fees. In case of arbitration or litigation arising out of this contract, the parties agree that the non-prevailing party shall be responsible for the prevailing party's reasonable costs and legal fees, including attorney fees. 16. Early Termination by City/Notice. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Broker. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: Professional City Coov To: JPx Solutions City of Fort Collins City of Fort Collins Attn: Troy Peterson Attn: Tawnya Ernst Attn: Purchasing Dept. 226 Remington Street, Unit #3 PO Box 580 PO Box 580 Fort Collins, CO 80524 Fort Collins, CO 80522 Fort Collins, CO 80522 17. Prohibition on Employing Illegal Aliens. In compliance with C.R.S. § 8-17.5-101 , Broker represents and agrees that: Exclusive Right to Buy Contract 7584 Real Estate Agent Page 6 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 (a) As of the date of this contract, Broker does not knowingly employ or contract with an illegal alien who will perform work under this contract; and Broker will participate in the electronic employment verification program created in Public Law 104-208, as amended, and expanded in Public Law 108-156, as amended, and jointly administered by the United States Department of Homeland Security and the Social Security Administration, or its successor program (the "E-verify Program") in order to confirm the employment eligibility of all employees who are newly hired for employment to perform work under this contract. (b) Broker shall not knowingly employ or contract with an illegal alien to perform work under this contract or enter into a contract with a subcontractor that fails to certify to Broker that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this contract. (c) Broker has confirmed the employment eligibility of all employees who are newly hired for employment to perform work under this contract through either the E-verify Program or the employment verification program established by the State of Colorado, pursuant to Section 8-17.5-102(5)(c), C.R.S. (the "Department Program"). (d) Broker is prohibited from using the E-verify Program or the Department Program procedures to undertake pre-employment screening of job applicants while this contract is being performed. (e) If Broker obtains actual knowledge that a subcontractor performing work under this contract knowingly employs or contracts with an illegal alien, Broker shall: (i) Notify such subcontractor and the City within three days that Broker has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and Exclusive Right to Buy Contract 7584 Real Estate Agent Page 7 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 (ii) Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Broker shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. (f) Broker shall comply with any reasonable request by the Colorado Department of Labor and Employment (the "Department") made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. (g) If Broker violates any provision of this contract pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this contract. If this contract is so terminated, Broker shall be liable for actual and consequential damages to the City arising out of contractor's violation of Subsection 8-17.5-102, C.R.S. (h) The City will notify the Office of the Secretary of State if Broker violates this provision of this contract and the City terminates the contract for such breach. 18. Modification of this Contract. No subsequent modification of any of the terms of this contract shall be valid, binding on the parties, or enforceable unless in writing and signed by the parties. 19. Entire Agreement. This contract including Exhibits A, B, C and D constitutes the entire agreement between the parties and any prior agreements, whether oral or written , have been merged and integrated into this contract. Exclusive Right to Buy Contract 7584 Real Estate Agent Page 8 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney ST A TE OF COLORADO ) ) SS. COUNTY OF LARIMER ) CITY OF FORT COLLINS, COLORADO a municipal corporation By: ___________ _ Gerry Paul Director of Purchasing and Risk Management Date: ___________ _ JPX SOLUTIONS, LLC a Colorado limited liability company By Z::7 ~ - .,--~t:> '{ f ~=(~ (Z. ~ e> t-4 PRINT NAME Member/Manager Date: __ ?_/i_t :__r ,_/_ t_4-___ _ cknowle ~ec;! pefore me this l ':2-- day of v'\l'a..A._~ , 2014, by ~......__.-..-a---~---'~=---Vl.---=. -__ as (\'\?LM,.a ZSh for JPx Solutions, LLC. Witness my hand and official !?eal. My Commission Expires: l l- 1 { . It OONNAMANCI NOTARY PUBLIC STATE OF COLORADO TIIYIDM~ MY COMMISSION NOTARY 10 EXPIRES 19894016570 11/1712017 Notary Exclusive Right to Buy Contract 7584 Real Estate Agent Page 9 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 3/17/2014 EXHIBIT A SCOPE OF WORK The Broker shall be responsible for assisting the City in placing under contract to purchase appropriate properties ("Property" or "Properties") for the City's Poudre River Downtown Project ("Project"). The City's goal is to have such Properties under contract within 365 days of the execution of this contract. A The steps to be completed, the party responsible for each step, and the required time frame, if any, for completion of each step, are as follows: 1) Broker shall determine whether the owners of the Properties are willing to sell and if so under what parameters, i.e. standard sale or via a land exchange. 2) If the landowner desires to exchange their property for a comparable replacement property ("Replacement Property"), Broker shall research and identify properties of like zoning and use for the exchange. 3) Broker shall present to the City for review all information Broker has obtained about the Properties and Replacement Properties. Broker shall discuss any replacement property with the City and receive the City's approval prior to presenting it to the owners as a property for exchange. 4) Within five business days of the Broker's presentation, the City shall decide whether to proceed to acquire any of the Properties and/or Replacement Properties presented by Broker, and notify Broker of its decision. B. Should the City decide to proceed towards acquisition of one or more Properties, the Broker shall begin negotiations with the seller(s) on terms and conditions of a purchase, working from the City's standard form Purchase and Sale Agreement (attached to this contract as Exhibit C). C. If the City wants an appraisal , survey, environmental review, title commitment, or other due diligence on a Property or Replacement Property, the City shall order and pay for such services, and shall share the results of such services with Broker. D. Broker shall keep the City advised of the status of negotiations. Once Broker has negotiated what Broker believes to be the best possible terms and conditions for purchase of a Property or Replacement Property by the City, Broker shall present the proposed transaction to the City. E. The City shall review the proposed terms and conditions and shall decide whether it is in the best interests of the City to enter into the proposed transaction. The City shall notify Broker of its decision within five business days of Broker's presentation of the proposed transaction. F. Should the City decide to proceed with the proposed transaction, the City shall either: 1) Direct Broker to conclude negotiations and complete the necessary paperwork to bring the Property under contract: or , 2) Complete the negotiations and document preparation itself and bring the property Exclusive Right to Buy Contract 7584 Real Estate Agent Page 10 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 under contract. Option 1 is the City's preferred approach in order to save staff time, however, it shall only be appropriate if the proposed transaction is straightforward and will not involve material changes to the City's standard Purchase and Sale Agreement. Should the proposed transaction involve additional contingencies, material changes to the City's standard Purchase and Sale Agreement, leases or easements back to the seller, City Council action or other similar issues, the City may choose option 2 as members City staff are in the best position to process those issues on the City's behalf, including drafting of documents, requesting action by City Council, and legal review. G. After a Property is under contract, the City shall update and review the title commitment and order any necessary environmental assessments or other assessments prior to closing . H. The Broker shall assist the City in resolving any issues that arise prior to closing. Exclusive Right to Buy Contract 7584 Real Estate Agent Page 11 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 1 . 622 N College 2. 101 E Vine Drive 3. 103 E Vine Drive 4. 105 E Vine Drive 5. 203 E Vine Drive 6. 207 E Vine Drive 7. 209 E Vine Drive Exclusive Right to Buy Contract 7584 Real Estate Agent EXHIBIT B PROPERTIES Page 12 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 13 of 26 EXHIBIT C AGREEMENT OF PURCHASE AND SALE OF REAL PROPERTY [City Purchase of _______________] THIS AGREEMENT is made and entered into this [_____] day of [______], 200[_] (the “Effective Date”), by and between [__________________] (“Seller”), and THE CITY OF FORT COLLINS, COLORADO, a municipal corporation, (“Purchaser”). For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Purchaser agree to be legally bound whereby Seller agrees to convey to Purchaser, and Purchaser agrees to acquire from Seller, the Property as defined below on the terms and conditions set forth in this Agreement. 1. Description of Property. The real property which is the subject matter of this Agreement is that certain parcel of real property located in Larimer County, Colorado, which is legally described on Exhibit A, consisting of [____] pages, attached hereto and incorporated herein by reference (the “Property”). The Property includes all improvements located thereon and all of Seller’s rights, title and interest in and to all appurtenances thereto, including but not limited to the following: A. Appurtenances Generally. The Property shall include any fences, buildings, landscaping, and other improvements now located thereon, including all fixtures of a permanent nature. In addition, the Property shall include all of the Seller’s right, title and interest in and to easements, rights-of-way, future interests and rights to the same belonging and inuring to the benefit of the Property, and in and to all strips and gores of land lying between the Property and adjoining property or streets, roads or highways, open or proposed. B. Water Rights. All water, water rights, corporate stock relating to the use of water, springs, spring rights, wells, well rights, ditches, ditch rights, reservoir rights, tributary, non-tributary, and not non-tributary water, appurtenant to, customarily used with or upon, or relating to the use of water on the Property, and any other water or water rights, located on or appurtenant to the Property, whether or not the same have been adjudicated[*OPTIONAL: , excluding the following specified water rights, to be reserved to Seller and Seller’s successors and assigns: ________]. [*ALSO OPTIONAL: The water rights to be conveyed hereunder include, but are not limited to, those water rights listed in Exhibit B, attached hereto and incorporated herein by this reference (the “Water Interests”).] C. Taps. All water taps, gas taps, and sewer taps belonging or in any way appertaining to the Property. D. Mineral Rights. Any and all interests in all minerals, ores, and metals of any kind and character, and all coal, asphaltum, oil, gas, or other like substances including sand and gravel, and all geothermal resources in, on, or under the Property and all other mineral rights as are owned by Seller at the time of this Agreement. [*OPTIONAL: All mineral leases, to DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 14 of 26 the extent they burden the Property or mineral rights appurtenant to the Property, must be assigned at closing.*] 2. Method of Conveyance. Seller will convey the Property to Purchaser at the time of closing by general [*OPTION: special*] warranty deed in the form attached as Exhibit B[*OPTION: this is C if there is a water rights exhibit*]. The personal property portion of the Property, if any, shall be transferred to Purchaser by Seller at the time of closing by bill of sale or other appropriate transfer document, free and clear of all liens and encumbrances. [*OPTION: Seller shall assign to Purchaser at closing the Water Interests, including but not limited to any irrigation company shares, using the transfer or assignment documents required or provided by the mutual irrigation company or other appropriate entity, or using such other documents of assignment as are reasonably acceptable to Purchaser. All assessments and other amounts currently due in connection with any such shares or rights shall be paid in full by Seller prior to such transfer, along with all costs of such transfer or assignment.*] 3. Purchase Price. The total purchase price of the Property will be ___________ Dollars ($_________) [plus the additional consideration described below (add as C. below, if applicable)], and will be payable by Purchaser to Seller as follows: [*CHOOSE one pair of A. and B. below and delete the other*] ******************************* A. No earnest money deposit is required in connection with this transaction, the mutuality of the promises of the parties hereto being deemed adequate consideration. B. The entire amount of the purchase price, in the amount of [__ spell out in words (and then number in parentheses)], subject to closing costs and customary prorations, will be payable by Purchaser to Seller in immediately available funds at the time of closing, as hereinafter set forth. **************************** A. The sum of [__ spell out in words (and then number in parentheses)] , representing an earnest money deposit, will be paid by Purchaser upon the Effective Date by check or immediately available funds to the Title Company as part payment to Seller. B. The balance of the purchase price in the amount of [__ spell out in words (and then number in parentheses)] subject to closing costs and customary prorations is payable by Purchaser in immediately available funds to the Title Company at the time of closing. ********************************** [C. *OPTIONAL – use with lease back to Seller: As part of Purchaser’s consideration to Seller hereunder, Purchaser has agreed to lease to Seller [the Property OR a portion of the Property], as described in and using that form of Lease Agreement attached hereto as Exhibit C and incorporated herein by this reference (the “Lease Agreement”)[, subject to the Contingency set forth in paragraph [*fill in correct number for contingency paragraph*]. [Provided that said Contingency has been met,] Purchaser and Seller will execute the Lease Agreement at closing. *] 4. Title Insurance/Evidence of Title. DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 15 of 26 A. Within [___] calendar days following the Effective Date, Seller will provide to Purchaser [(*OR*) Purchaser has already obtained] a Title Insurance Commitment, together with copies of all documents of record related to exceptions identified in the Title Commitment (together referred to as the “Title Commitment”) from [_________] (“Title Company”). The Title Commitment must show title to the Property in Seller, subject only to those exceptions shown on Schedule B-2 to the Title Commitment that are acceptable to Purchaser. Seller [Purchaser] is responsible for the cost of the Title Commitment and Title Insurance. B. If the Title Commitment discloses title defects unsatisfactory to Purchaser and subject to which Purchaser need not take title, Purchaser may give Seller written notice of such defects by the date ten (10) calendar days after the Effective Date or the date ten (10) calendar days after Purchaser’s receipt of the Title Commitment, whichever is later, and no later than ten (10) calendar days after notice of any title change. Seller must attempt in good faith to cure such defects prior to the date of closing, at its expense, without in any other manner affecting the terms of this Agreement. C. If any instrument or deposit is necessary in order to correct a defect in or objection to title, the following apply: (1) Any instrument will be in a form and contain terms and conditions Title Company may reasonably require so as to be sufficiently satisfied and omit such defects or objection. (2) Any deposit will be made with Title Company. (3) Seller agrees to execute, acknowledge and deliver any required instrument and to make any required deposit. D. If Title Company refuses to omit any title defect or objection prior to closing, then Purchaser, at its election, has the right to: (1) accept such title as Seller is able to convey, without any reduction of the purchase price; or (2) rescind this Agreement and, upon such rescission pursuant to this paragraph, Purchaser will be entitled to the return of the amount of money theretofore paid to Seller or its agent. Upon such payment, this Agreement will be null and void and of no further effect, and all parties to this Agreement will be released from all obligations hereunder. E. If Seller is unable to convey title as provided in this paragraph 4 to Purchaser due to an act or omission of Seller, Seller is in default and continues to be liable under this Agreement. F. Notwithstanding the foregoing, DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 16 of 26 (1) any title condition consisting of monetary liens, deeds of trust or other financial encumbrances against the Property must be removed by Seller at or prior to closing, and Seller’s failure to cause the removal of the same will constitute a default by Seller under this Agreement; and (2) in the event Seller fails to cause the removal of a financial encumbrance against the Property prior to closing, Purchaser has the right to pay amounts required to do so at closing, and to receive a credit for such payment against the Purchase Price. [*Subparagraph G optional. Use if specific water rights conveyed.*] G. Within [___] calendar days following the Effective Date, Seller will also provide to Purchaser a correct copy of each decree, permit, stock certificate or other documentation of the Water Interests (the “Water Documents”). If the Water Documents disclose defects in or do not evidence Seller’s right, title and interest in the Water Interests to Purchaser’s satisfaction, Purchaser may give Seller written notice of such defects by the date ten (10) calendar days after the Effective Date or the date ten (10) calendar days after Purchaser’s receipt of the Water Documents, whichever is later. Seller must attempt in good faith to cure such defects prior to the date of closing, at its expense, without in any other manner affecting the terms of this Agreement. If Seller is unable to cure such defects, and such defects are due to an act or omission of Seller, Seller is in default, and continues to be liable under this Agreement. If such defects are not due to an act or omission of Seller, then Purchaser, at its election, has the right to: (1) accept such right, title and interest in the Water Interests as Seller is able to convey, without any reduction of the purchase price; or (2) rescind this Agreement and, upon such rescission pursuant to this paragraph, Purchaser will be entitled to the return of the amount of money theretofore paid to Seller or its agent. Upon such payment, this Agreement will be null and void and of no further effect, and all parties to this Agreement will be released from all obligations hereunder. ********[FOR PARAGRAPH 5, SELECT ONE 5. FROM BELOW]******* 5. Survey/Legal Description. A. Within thirty (30) [(*OR* ______ (__) ] calendar days after the Effective Date, [Seller or Purchaser], at its own expense, will provide to the other party an updated, signed, and sealed ALTA/ACSM boundary survey (“Survey”). [*OR* [Seller or Purchaser] will provide to the other party an updated, signed, and sealed ALTA/ACSM boundary survey (“Survey”). Purchaser and Seller shall share equally the cost of the Survey, with Seller’s 50% share of said cost due at closing, payable by a credit to Purchaser and debit from Seller’s proceeds from the sale.*]The Survey must include staked property corners and a plat describing courses and distances between the corners, and total acreage of the Property. DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 17 of 26 B. If Purchaser is not satisfied with the matters disclosed by the Survey, Purchaser may give written notice of the specific survey-related defects to Seller within fourteen (14) calendar days following the date of receipt of the Survey. Seller may, by written notice within fourteen (14) calendar days of receipt of the defect notice, elect to cure the survey defects or not to cure them. C. Unless Seller elects to cure the survey defects, Purchaser may, by written notice at or before the closing: (1) expressly waive the survey defects and proceed to closing; (2) terminate this Agreement; or (3) in its sole discretion, elect to cure the survey defects and apply a portion of the Purchase Price as is necessary to cause the removal of the survey defects, and the proceeds from this transaction to be otherwise distributed to Seller upon closing is reduced by that applied amount. D. If Seller elects to cure the survey defects, Seller may postpone the closing for a reasonable period of time not to exceed sixty (60) calendar days. Seller shall promptly provide written notice to Purchaser of any such required postponement of closing at the time of Seller’s election to cure pursuant to paragraph 5.B. If, after making that election, the Seller is unable to cure within the time allowed, Purchaser will be entitled to proceed in accordance with the options stated in subparagraphs C(1) through C(3) above. E. Seller and Purchaser agree to update the legal description of the Property or any portion thereof to be conveyed hereunder as required to correct errors in the legal description identified by the Survey. [*OR: Alternative 5.*] 5. Survey/Legal Description. The parties each acknowledge that a legal description of the Property is attached to and incorporated by reference into this Agreement, and each acknowledges having received a copy of any such description. The parties agree that it is their intent that the referenced legal description describes the Property except as otherwise expressly provided, and agree to work in good faith and cooperatively to correct technical errors that any such legal description is determined to contain. ******************************** 6. Special Taxing Districts. Special taxing districts may be subject to general obligation indebtedness that is paid by revenues produced from annual tax levies on the taxable property within such districts. Property owners in such districts may be placed at risk for increased mill levies and excessive tax burdens to support the servicing of such debt where circumstances arise resulting in the inability of such a district to discharge such indebtedness without such an increase in mill levies. Purchaser should investigate the debt financing requirements of the authorized general obligation indebtedness of such districts, existing mill levies of such district servicing such indebtedness, and the potential for an increase in such mill levies. DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 18 of 26 7. Maintenance of the Property/Title. Seller must keep, or cause to be kept, the Property in its condition as of the Effective Date until the closing of this transaction, subject to normal wear-and-tear and seasonal changes, and agrees not to commit or permit waste thereon. Seller must not cause or permit new liens, easements or other encumbrances on the title to the Property, except as expressly agreed by Purchaser in writing. 8. Representations of Seller. Seller represents and warrants as of the Effective Date and as of the closing, as follows: A. There is no litigation proceeding, including but not limited to any eminent domain proceeding, pending (or to Seller’s knowledge threatened) against or relating to any part of the Property, nor does Seller know of or have reasonable grounds to know of any basis for any such action [*except for_____________*]. B. Seller has not received notice of, and to the best of Seller’s knowledge, there are no violations of any laws, orders, regulations or requirements of any governmental authority affecting the Property or any part thereof. C. Seller has the unconditional right and power to execute and deliver this Agreement and to consummate the transaction(s) contemplated by this Agreement. D. Seller has not received notice of default or breach by Seller of any of the covenants, conditions, restrictions, rights-of-way or easements affecting the Property or any portion thereof; no default or breach now exists or will exist on the date of closing; and no event or condition has occurred and is continuing that, with or without notice and/or the passage of time, will constitute such a default or breach. E. Seller represents that it has provided to Purchaser all environmental reports and any other documentation in Seller’s possession related to the Property. 9. Seller’s Environmental Representations. Seller represents and warrants as of the Effective Date and as of the closing, that, to the best of Seller’s knowledge: A. the Property has never been used as a landfill, waste dump or mine; B. there has been no installation in, or production, release, disposal or storage on the Property of any hazardous material, hazardous waste or other toxic or regulated substances by Seller, Seller’s agents, employees, or assigns, any tenant or previous owner or previous tenant; C. there has not been any other activity that is known to or reasonably could have resulted in an environmental condition requiring investigation or remediation on the Property; D. there is no anticipated, threatened or pending proceeding or inquiry by any governmental authority or agency with respect thereto; DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 19 of 26 E. no property in the vicinity of the Property has ever been used as a landfill or waste dump; F. there has been no installation in, or production, release, disposal or storage in the vicinity of the Property of any hazardous material, hazardous waste or other toxic or regulated substances by any owner, tenant or previous owner or previous tenant or any other activity which could have resulted in an environmental condition requiring investigation or remediation on the Property; and G. there is no anticipated, threatened, or pending proceeding or inquiry by any governmental authority or agency with respect to property in the vicinity of the Property that may relate to the condition of or need to take investigative or remedial action on the Property. 10. Inspection. Purchaser or any designee of Purchaser has the right to make inspections of the physical condition of the Property and the improvements located thereon at Purchaser's expense. These inspections may include, but are not limited to, environmental assessments and inspections regarding compliance with any building or fire code, environmental protection, pollution or land use or zoning laws, rules or regulations, including, but not limited to any laws relating to the disposal or existence of any hazardous substance or other regulated substance in or on the Property. If Purchaser does not provide to Seller written notice of any unsatisfactory condition, as determined at Purchaser's sole discretion, signed by an authorized representative of Purchaser, on or before [________], 200[_], Purchaser waives any objection to the physical condition of the Property and the improvements located thereon as of that date. If Purchaser provides written notice of any unsatisfactory condition, signed by an authorized representative of Purchaser, to Seller on or before [_____________], 200[_], and Seller does not cure such conditions prior to closing, this Agreement may be terminated at the option of Purchaser. Upon such termination, all payments and things of value received hereunder by Seller must be returned to Purchaser. Purchaser is responsible and will pay for any damage that occurs to the Property and the improvements located thereon as a result of these inspections. 11. Closing. The parties agree to close this transaction on [________], 200[_], at [(time) ] at [___________________], [_(city)_], Colorado, or at such other reasonable time, date or location as the parties may mutually agree. 12. Possession. Seller will deliver possession of the Property to Purchaser at closing[*, subject to the Lease Agreement by and between Purchaser as Lessor and Seller as Lessee, as described in paragraph 3.C*]. 13. Proration. Real property taxes and assessments and similar expenses, in accordance with local practice, will be prorated as of the date of closing. 14. Remedies on Default. If any note or check received as earnest money hereunder or any other payment due hereunder is not paid, honored or tendered when due, or if any other obligation hereunder is not performed as herein provided, the remedies are: A. If Purchaser is in default, then the earnest money deposit, if any, is forfeited by Purchaser and may be retained by Seller, and both parties will be released from all obligations under this Agreement. It is agreed DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 20 of 26 that the earnest money deposit is liquidated damages and is Seller’s sole and only remedy for Purchaser’s failure to perform the obligations of this Agreement. Seller may recover direct damages as may be proper and Seller expressly waives the remedies of specific performance and additional damages. B. If Seller is in default, Purchaser may elect to treat this Agreement as terminated, in which case all payments and things of value received hereunder will be returned to Purchaser, and Purchaser may recover such damages as may be proper, or Purchaser may elect to treat this Agreement as being in full force and effect, and Purchaser will have the right to an action for specific performance or damages, or both. 15. Notices. Any notice or other communication given by either party to the other relating to this Agreement must be hand delivered; sent by a commercial carrier; or sent by mail, addressed to the party at its respective address as set forth below. The notice or other communication will be effective on the date it is delivered or on the third business day after being sent, whichever comes first. If to Seller: [___________] ___________ [_________], CO [zip] With a copy to: __________ _________ [__________], CO [zip] If to Purchaser: Real Estate Services Manager City of Fort Collins Mailing Address: P.O. Box 580 Fort Collins, CO 80522-0580 Hand Delivery: 117 North Mason St. Fort Collins, CO 80524 With a copy to: City Attorney’s Office City of Fort Collins Mailing Address: P.O. Box 580 Fort Collins, CO 80522-0580 Hand Delivery: 300 LaPorte Avenue Fort Collins, CO 80521 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 21 of 26 16. Assignment. This Agreement must not be assigned by either of the parties hereto without the prior written consent of the other party[, except in accordance with paragraph 27 (*Use only if Para. 27 on 1031 exchange is retained*)]. 17. Risk of Loss. Seller shall bear all risk of loss with respect to the Property up to the date title is transferred in accordance with this Agreement. In the event of damage to any portion of the Property by fire or other casualty prior to the closing which damage either affects 5% of the usable facilities on the Property or reduces the value of the Property by 5%, then this Agreement may be terminated at the option of Purchaser. This option shall be exercised, if at all, by Purchaser’s written notice thereof to Seller within thirty (30) calendar days after receipt of written notice of such fire or other casualty. Upon the exercise of such option to terminate, this Agreement shall become null and void, and neither party shall have any further liability or obligations hereunder, except as otherwise provided in this Agreement. Closing may be delayed for up to thirty (30) calendar days for Purchaser to decide whether to exercise this option. If Purchaser does not elect to terminate, Seller shall assign and transfer to Purchaser at the closing all of Seller’s right, title and interest in and to all insurance proceeds or other compensation paid or payable to Seller on account of such fire or casualty together with the amount of the deductible relating thereto. 18. Lead-Based Paint. Unless exempt, if the improvements, if any, on the Property include one or more residential dwellings for which a building permit was issued prior to January 1, 1978, this Agreement shall be void unless a completed Lead-Based Paint Disclosure (Sales) form is signed by Seller and the required real estate professionals, if any, which shall have occured prior to the parties signing this Agreement. [*OR*: This paragraph intentionally omitted.] 19. Recommendation of Legal and Tax Counsel. By signing this document, Seller acknowledges that Seller has been advised that this Agreement has important legal consequences and has received the recommendation to consider the examination of title and consultation with legal and tax or other counsel before signing this Agreement. 20. Entire Agreement, Modification. This Agreement constitutes the entire contract between the parties relating to the conveyance of the Property, and any prior agreements pertaining thereto, whether oral or written, have been merged and integrated into this Agreement. No subsequent modification of any of the terms of this Agreement will be valid, binding upon the parties, or enforceable unless made in writing and signed by the parties. 21. Headings. Paragraph headings are used for convenience of reference and in no way define, limit or prescribe the scope or intent of any provision under this Agreement. 22. Construction. Words of the masculine gender include the feminine and neuter gender and when the sentence so indicates, words of the neuter gender refer to any gender. Words in the singular include the plural and vice versa. Definitions of defined terms are intended to apply throughout this Agreement. This Agreement is to be construed according to its fair meaning, and as if prepared by all parties, and is deemed to be and contain the entire understanding and agreement between the parties. 23. Time is of the Essence. It is agreed that time is of the essence of this Agreement and each and every provision. 24. Binding Effect / Joint and Several Liability. This Agreement is binding upon and inures to the benefit of the parties their respective heirs, administrators, successors and DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 22 of 26 assigns. If Seller consists of more than one individual or entity, each such individual or entity is jointly and severally liable for any and all obligations of Seller hereunder. 25. Litigation Expenses. In the event any party defaults in any of its covenants or obligations and a party not in default commences and prevails in any legal or equitable action against the defaulting party, the defaulting party expressly agrees to pay all reasonable expenses of the litigation, including a reasonable sum for attorneys' fees or similar costs of legal representation. 26. Brokers. [*EITHER;Seller and Purchaser each represent and warrant to the other that such party has not employed, retained or consulted any broker, agent or other real estate professional with respect to the Property. OR:The Seller has retained a real estate broker and shall be and hereby is solely responsible for paying any and all commission due as a result of this sale transaction to said broker, [fill in name]. Purchaser hereby warrants that it has neither employed nor retained or consulted any broker, agent, or other finder with respect to the Property, nor is any such broker, agent, or other finder the procuring cause for Purchaser entering into this Agreement.*] Seller and, to the extent permitted by law, Purchaser, each indemnify and hold the other harmless from and against all claims, demands, causes of action, debts, liabilities, judgments and damages, including, without limitation, any related litigation expenses, that may be asserted or recovered against the other on account of any breach of this representation and warranty. 27. 1031 Exchange. At the request of Seller, Purchaser agrees to make reasonable efforts to cooperate with Seller in the achievement of a tax-deferred real estate exchange pursuant to Section 1031 of the Internal Revenue Code and the Treasury Regulations implementing that Section. In particular, Purchaser may be asked, and Purchaser hereby agrees, to cooperate in and consent to the assignment of Seller’s rights in this Agreement for the purpose of such an exchange. Purchaser shall not be required to incur any additional liability or expense in connection with Seller’s tax-deferred exchange transaction. [*OR*: This paragraph intentionally omitted.] 28. Authority. Each person executing this Agreement represents and warrants that he or she is duly authorized to execute this Agreement in his or her individual or representative capacity as indicated. 29. Counterpart and Facsimile Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. Signatures may be delivered by facsimile copy. Facsimile signatures are binding on the parties as if they were originals 30. Recording. Purchaser may record this Agreement in the real property records of the Larimer County Clerk and Recorder. 31. Governing Law/Venue. The parties intend and agree that this Agreement is to be construed and enforced according to the laws of Colorado, and that venue in any proceeding related to the subject matter of this Agreement will be in Larimer County, Colorado. [*OPTIONAL – do not use where no condemnation is appropriate*]: 32. Condemnation Rights. Seller expressly acknowledges that it is aware that under Colorado law, Purchaser is empowered with the right of eminent domain and that, in the event Purchaser fails to acquire the Property from Seller under this Agreement, Purchaser may have DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 23 of 26 the authority to acquire the Property by exercising its power of eminent domain. Seller further acknowledges that in the event Purchaser seeks to acquire the Property using its eminent domain authority, Seller would have the right, absent this Agreement, to require Purchaser to acquire the Property by complying with the laws of the State of Colorado regarding eminent domain. In particular, Seller acknowledges that Seller would have the right to receive from Purchaser a Notice of Intent pursuant to Section 38-1-121, C.R.S., advising Seller of Purchaser’s intent to acquire the Property by an eminent domain action and of Seller’s right to obtain an appraisal of the Property, the reasonable costs of which Purchaser must pay, if the Property has an estimated value of Five Thousand Dollars ($5,000.00) or more. Seller understands and agrees that by entering into this Agreement, Seller waives these rights. [*OPTIONAL – use as appropriate where City will sign first*]: 3[X]. Notice of Acceptance. After the Purchaser has signed this Agreement, below, the Agreement shall expire unless properly signed by Seller and provided to the Purchaser on or before [DATE]. [*OPTIONAL – where agreement is contingent upon lease back to Seller:*] ****************************** OPTION A (lease 2 yrs or under): 3[X] Contingency. This Agreement is hereby made expressly contingent upon the City Council of the City of Fort Collins (herein after "the Council") approving the Lease Agreement in substantially the same form as that attached hereto as Exhibit [X] by its adoption of a related Resolution, in its discretion, on or before [fill in date]. If Council does not pass such Resolution on or before [same date] then this Agreement shall be automatically terminated and all parties shall be released from all obligations hereunder and any monies theretofore paid to Seller by Purchaser shall be refunded in full to Purchaser. OPTION B: (longer than 2 years): 3[X]. Contingency. This Agreement is hereby made expressly contingent upon the City Council of the City of Fort Collins (herein after "the Council") approving the Lease Agreement in substantially the same form as that attached hereto as Exhibit [X] by its final adoption of a related ordinance, in its discretion, on or before [fill in date]. If Council does not pass such an ordinance on second reading on or before [same date] then this Agreement shall be automatically terminated and all parties shall be released from all obligations hereunder and any monies theretofore paid to Seller by Purchaser shall be refunded in full to Purchaser. If, however, Council does pass such an ordinance on or before [same date], but within ten (10) days of the passage of the ordinance a notice of protest against the ordinance has been filed with the City Clerk of the City of Fort Collins Pursuant to Section 2(b) of Article X of the Charter of the City of Fort Collins, then this Agreement shall remain in full force and effect until either the Council repeals the ordinance or the electors vote to repeal the ordinance in accordance with Section 2(c) of Article X of the Charter of the City of Fort Collins. In the event the ordinance is repealed by Council or by the electors, then this Agreement shall be automatically terminated and all parties shall be released from all obligations hereunder and any monies theretofore paid to Seller by Purchaser shall be refunded in full to Purchaser. If the Council does not repeal the ordinance and if the electors approve the ordinance, then the closing of this transaction shall be held in accordance with paragraph 11 herein, no less than ten (10) days after the date of the electors' approval of the ordinance. ******************************** DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 24 of 26 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date and year first above written. SELLER: ________________________, a ______________________ Date: By: ___________________ STATE OF COLORADO ) ) ss COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this day of , ______, by _______________________, [as _________________ for ____________________]. Witness my hand and official seal. My Commission expires: __________________ Notary Public PURCHASER: THE CITY OF FORT COLLINS, COLORADO Date: By: Darin A. Atteberry, City Manager ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney STATE OF COLORADO ) ) ss COUNTY OF LARIMER ) DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 Exclusive Right to Buy Contract 7584 Real Estate Agent Page 25 of 26 The foregoing instrument was acknowledged before me this day of ________ , ________, by Darin A. Atteberry as City Manager and ____________________as City Clerk of the City of Fort Collins. Witness my hand and official seal. My Commission expires: Notary Public DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7 EXHIBIT D CONFIDENTIALITY IN CONNECTION WITH SERVICES provided to the City of Fort Collins (the "City") pursuant to this Agreement (the "Agreement"), the Service Provider hereby acknowledges that it has been informed that the City has established policies and procedures with regard to the handling of confidential information and other sensitive materials. In consideration of access to certain information, data and material (hereinafter individually and collectively, regardless of nature, referred to as "information") that are the property of and/or relate to the City or its employees, customers or suppliers, which access is related to the performance of services that the Service Provider has agreed to perform, the Service Provider hereby acknowledges and agrees as follows: That information that has or will come into its possession or knowledge in connection with the performance of services for the City may be confidential and/or proprietary. The Service Provider agrees to treat as confidential (a) all information that is owned by the City, or that relates to the business of the City, or that is used by the City in carrying on business, and (b) all information that is proprietary to a third party (including but not limited to customers and suppliers of the City). The Service Provider shall not disclose any such information to any person not having a legitimate need-to-know for purposes authorized by the City. Further, the Service Provider shall not use such information to obtain any economic or other benefit for itself, or any third party, except as specifically authorized by the City. The foregoing to the contrary notwithstanding, the Service Provider understands that it shall have no obligation under this Agreement with respect to information and material that (a) becomes generally known to the public by publication or some means other than a breach of duty of this Agreement, or (b) is required by law, regulation or court order to be disclosed, provided that the request for such disclosure is proper and the disclosure does not exceed that which is required. In the event of any disclosure under (b) above, the Service Provider shall furnish a copy of this Agreement to anyone to whom it is required to make such disclosure and shall promptly advise the City in writing of each such disclosure. In the event that the Service Provider ceases to perform services for the City, or the City so requests for any reason, the Service Provider shall promptly return to the City any and all information described hereinabove, including all copies, notes and/or summaries (handwritten or mechanically produced) thereof, in its possession or control or as to which it otherwise has access. The Service Provider understands and agrees that the City's remedies at law for a breach of the Service Provider's obligations under this Confidentiality Agreement may be inadequate and that the City shall, in the event of any such breach, be entitled to seek equitable relief (including without limitation preliminary and permanent injunctive relief and specific performance) in addition to all other remedies provided hereunder or available at law. Exclusive Right to Buy Contract 7584 Real Estate Agent Page 26 of 26 DocuSign Envelope ID: BA654FE4-5421-4184-B4F6-A4137DC696D7