HomeMy WebLinkAbout1998 Resolution No. 101.,:
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RESOLUTION NO./J.L
SERIES OP 1!11!18
A RESOLl.l'l'JOS SUPPORTING THE SALE OF PROPERTY TO WALMART FROM THE
ENGLEWOOD ENVIRONMENTAL FOUNDATI ON FOR THE CINDERELLA CITY
REDEVELOPMEHT.
WHEREAS d,e Englewood Environmental Foundation was formed to relieve the burdens
which would ocbenriN be &1s umed by the City of Englewood , Colorado in connection with
the enviro-1 remediation. land use planning and preparation for redevelopm ent of the
Cinderella City .shopping center; and
WHEREAS,. <he Englewood Environmental FounJation was formed to provide support for
the redevelopftlll!Ilt and enhaocemrnt of the City's co mmercia l environment and 1s a Re parate
and dieti.nCl o,rporation; and
WHEE ' !he City Co uncil of t he City of Englewood, Co lorado s uv ported the Mester
Plan propmed en August 10, 1998 by the Englewood Environmental Foundation ; and
WHEREAS, the City Council recognized that by s upporting the Ma ster Plan it was
recommending di.a t the Englewood Environmental Foundation ,.'Ontinue negotiati ons with
WalMart far i:>clU5ion on the site;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD. COLORADO , THAT:
~-The City Council of the City of Engle wood, Colorado he re by supports the sale
of property t0 Vf alMart at the Cinderella City site und er th e general te rms and conditions of
the Agre.me,::: a ttached hereto as "Exhibit A".
~. This reso lution s uppo rt in no way waive s or delegates the City's regulatory
pow ers. du:aa and re spon sibilities with respect to zoning and gove rnme nta l issues.
ADOPTED A .. 'ID APPROVE D this 2nd of Nove mb er , 1998.
t3' ~d&
..oucrishia .~City Cler k
I. Loucnsc:, A. Ellis. City Clerk fo r;llJ • City of Englewood , Colorado
above is a trt2 copy of Resoluti on No/Q/_, Series of 1998.
Lo ucri shia A. Ellis
AGREEMENT FOR PURCHASE AND SALE or RL.U. PROPEltTY
• • THIS AGREEMENT FOR PURCHASE AND SAL£ OF REAL PROPERTY
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("Aiireemeut") is llllde the _ day of October, 1991 by DI ~ the Englewood
EnvironmcntaJ Foundalion, lnc., a Colorado 1101-for-pn,61 corpomion ("Sdla-") aad Wal-Mm Ra!
Es1atc Business Trust, a Delaware Busines, TIUSI 1'WaJ-Man'').
RECITALS
A. The Cicy ofEuglewood, Colorado ("City'. ,...roceeding widl the mkvelopmeut of
the property known as the Cindercl!A Cicy Shopping Center (tbe ~cc ~-elopment Project").
B. In connection with the CC Redcvelopmcm Project, the G!y a.ad ScL .r are negotiating
a Redevelopment Agrc,:mc:nl with Miller Weinganen Realty, LLC t '.1-1 · W'} The Redevelopment
Agm:Mcnt will provide that Seller will complete the demolition of the t:Xisting improve:.nents, and
M-W, as Mister Developer, will complete the site woric ~ to~ c011SUUttion of tbe
new improvemei:is, and will .:onstruct the public and common ar=. illcluding roads, utilities to the
various property lines. other in.frasuucrure improvements aa1 ~ off-site improvements.
C. Plai.s for the CC ~development Project include;,. Wal-Man. Wal -Man desires to
purchase a site in the CC Redevelopment Project for PllIJXISCS of de-.~ a Wal-Mart Store in
order to become the principal gcner.il mercb.andiser in the CC ~-dopmem Project. lllli the Seller
agrees to sell such site to Wal-Man on the terms and cond:tions bcmnafta provided.
0. . The p:inies desire to set fonh the,r agr,,em,:m for the po;n;h;....c and sale Wal-Mm
of a parcel of property in the CC Rede \ elopmen t Project and its dr.·eicpam11 3S a Wal -M:irt Store .
IN CONSIDERI\TION of !he foregoing and the muruai ~ hemn, the receipt
and sufficiency of which is hereby acknowledged . the parties ~o agree as follows :
I. Sale ;wd Pwchase . The Seller agm:s to se ll a::d W:il-Mart agr= to purcbasc.
on the tmns and conditirns hereinafter m forth. :he two \2 ) r~= of real property in the arc3
approximately as depic:ed in red on f.'lhi.liiL:\. together with easemttlS lldjoining and pa.rallel to the
south and north rights of w•y of Girard A ,·enue, each approximalriy 50 f~t wide as depicted in
gi=i on f.lliillil.A, loc:ited in the CC Rtd°'elopment Project on West Floyd Avenue berween South
Galapago Street and South E1ati Sc-eet, Ar:lpahoe Councy, Colorado {thc ~Proper!)'"). The Propeny
shall be a site sufficient to accommodate a Wal-Mart store of approximat.ely 129 ,000 square feet .
Upon approval by the City of the final site plan for the CC R~opmcnt Proj~t, Seller shall
furnish Wal-Mm a legal description of the Propert~·. which legal dcscriptiou shall be initialed and
attached hereto as~-The Property shall 111clu.!:: all of Seller's right. title and lllterest. if any,
in and to all entitlemenlS, easements . rights of way , ;crmits. :q:prov:tls, rights and pri vilege,
appurtenant to the Propertv
2. Pun:h;Lse inc,. Toe pun:hasc price for the Property shall be Tom: Million
Four Thousand Dollars (53,400 ,000), payable in ash a1 closiJJg . r~ Pu.--chase Price is based upcn
a parcel ,f sufficient size to accommodate the requirements for~ Wal-;\llan Store and not on a per
lt.l.000\Cl,.llHT\d'WCU.WOIW~~ v, 110':,mJ
aquue foo t basis ; -ordinaly, the pun:lwe price will not be adjusted when tbc fillal size of the
Property is dclamined . 11ie Pun:hue Price shall be payable as follows :
L EiMPPl MSMY Pe;om. Upo11 r=lllioo of this Apement by Wal-
Mat and Scllcr, Wal-Mart shall deposit SI 00,000.00 (thc "Deposit") iDto esaow with Chicaao lide
Company (the "Escrow Agetlt''). CollCllrl'Clldy with the execution of this Apeement, Wal-Man,
Seller uxl Escrow A&ent shall eara imo an escrow ap<emcnt ioslructing the Escrow Aaent to invm
the Deposit in .. im=st bearing ICCOUDI and IO hold and disburse the Deposit, inclusive of the
iaterest camed lbem>n, in accordance with the trnns of this A&lfflllent; refmnce herein to the
f'q,osit shall mean 3IICI include all intmst earned lh=n. The Deposit shall be aedited against the
Furcbase Price at Cl~ing.
b. Closjng Payment The balance of the Purtlwe Price, as adjusted for
all mdits, debits, and proratioos provided herrin (the "Closing Paymentj, shall be paid by Wal-
Matt to S eUer at the Closing iD cash or by certified check, ca.shier's check, wir~ tr:insfer, c-r other
immedia!ely available lima acccpw,le 10 Seller.
3. l/sc of Property. Wal-Mart shall develop the Pr;,perty as a Wal-Matt store
of approx;mately 129,000 square feet (the "StGre") with mutually accep1.1blc parking to
actommodate tbe needs of tbe store , together with landscaping and other 31.:~:.iities in accordance
'"1th the architectural and design criteria and sire plan oflhe CC Redevelopment Project The Store
sball not iDcludc a groccrv . The Seller and Wal-Mart aclaiowlcd&e that during the process of zoning
111-i planning the CC Redevelopment Project and the Store, the preliminary si~ plan as now shown
on~ will challge . A final site plan shall be appro ved by the parties, initialed. and anached
bemn as a replacemem Eilhibil.B on or prior to Closing .
4. Jitle and Survev .
a. Pgmjrtcd Exceptions. Title to the Propeity shall be free and clear of
all l'Cl,s anrl encumbnmces. subject only to such matters as Wal-Mart accepts or is deemed to have
aro:pted pumw,t to Paragraph 4.d, and subject to the casement descri bed in subpangn,ph b. below
ml !he Purchase Option descriocd in Paragraph 18 (co llectivel y the "Pcnnitted Exceptions''). Sell e:-
shall , at Seller's expense, pay for at Closing, and promptly after Closing cause the Title Co~y
to issue to Wal-Matt, a st3ndard form cf AL TA 011,ner'~ title insurance policy insuring tide to the
Property in Wal-Mart in the amount of the Purch.,se Price, subject only to the Penni~ Exceptions
b. ~-roe Property con"cyed shall indude fifty (SO) foo t
e:iscments running parallel lo the north and sou!h right-of-way of Girard Avenue . Wal-Mart shall
have the right to use the casement areas in cowectio n with the u.<c aod opemtion of lhe Property
conve yed in fee . pro vided all improvements , repairs and mainten.ince shall be at the sole cost of
Wal-Mart Wal-Man's rights to the easement shall terminate in the event , and only in the event , (i)
Wal -Mart vacates the Wal-Man store and it remains unoccupied for six (6) months. and (ii) Wal-
Mart has f.lilcd to make plans satisfactory to the City for redevelopment or re -use of the Property .
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c. Tok C, IPCC Widun t-r (20) drp following tbc date bolh
Wal-Man and Seller have app-owd ad illilialcd tbc final siR plan, Seller sllall fumish to Wal-Mart
a current li1le commillllCnl covcnna Ck Plopaty (tbc ''Commi-") iUUld by Chica,o Tille
UlllllllD;e CDIIIJl'-IIY ("Ti.lk Company")~ to insure title to tbe Propcny ill Wal-Min ill !be
amount of the Pllrchuc ~e subject IO ibe 1a1uitcments and exccpdom set forlh lbfflill, Seller
shall cause the Title Comp.ay to ~ ID-Wal-Mart legil,le copies of all iecorded Ulllnlllllnts
ref med to in the C ommitmcnt (th,, "Tilfe Documens").
. d. ~-Vril!lzin tv'IT'.,:y (20) days following the date both Wal-Man
and Seller have approved ;:id inilialed lbe fiml. ·: !· plan, Seller, at Seller's expcme, shall fumish
to Wal-Mart five (5) copies of a S\1.-...ey C"Sur--cy'; ~f the Property prepared by a surveyor registered
in die State of Colorado which shall he~ in accordan« with the srandi.: .ls set furth in Eldiihil
c.
e. Tj•Jc; Qdip:s. \\-idun fifteo. (15) days after Wal-Mart 's n:ceiptoftbe
Commi1111cnt, the Tide Documcnis mi Sarvey, Wal-M:irt shall iive Selier notice of all tide defects
shown in the Commitment and/or Sun-e;· which are not consented to by Wal-Mart as Pennined
Exceptions . Ally and all exceptions~ all or m y portion of the Propmy disclosed by the
Commitment (as exceptions, requireman, oc otherwise) and the Survey which are 1101 lhe si.bject
of 3 notice from Wal-Mart to Seller ii'= ,.ithin the applicable period of time, shall be deemed
accq>IOi by Wal-Mart as Pmniaed Excc;,tiom. In the event Wal-Mart aotifies Seller of any tide
defects shown by the Commitmenl .md!or Survey which are not comented to and have not been
consented to by Wal-Mart as Permi11cd Exttptions. Seller shall uu its besl efforts to cure such
objection if the c.>st 10 do so does not cm:cd aw: aggregate sum ofSl00,000 , or if the cost exceeds,
or Seller believes the cost may CllC-1, such airount, then within 5 days of receipt of Wal • Mart's •itle
objection notice Seller shall advise Wal-Matt -..hat if an)11wlg, it inlr!lds to do with respec t to each
such objection. Prior to or at the Closing. Seller shall discharge any and all mooewy liens and
monetary encumbrances on the Propc:ty , acept fo r the Permincd Exceptions . Such liens and
encumbrances, if any, may be satisfied from the FfOCeeds of the sale of the Prope,1)'. lfany defects
objected to by Wal-Mart have oot been am,j 10 Vial-Millt's reasoNble satJsfaction within twenty
(20) days follo"i ng Wal-Mart 's notice of uijtttioru. Wal-Mart me y. by wrim:n notice to Seller
within five (S) days following such 20~y pe:iod. either (i) tmninal!: this Agreement, or (ii) waive
such defects and accept th~ same as P=ir:td Exceptions . If Seller bas failed to Curt' any dciect
properly subject to Wal -~'s notice, as an alternat ive 10 either of the remedies <!escribud in the
preceding sentence . Wal-= upon DOticc to Scllrr within the five (5) day period, mJJ.y cure sw.h
defect on or prior to th e Closing and deduct the cost thereof (not to exceed SI 00,000) from the
Purchase Price. In the event Wal -M:irt does .iot notify Seller within the five (5) day period of its
decision to terminate or w.iive, or Wal-:'-tart 's dection to cure such defect and deduct the cost thereof
from the Purchase Price, Wal-Mart shall be d..--:mcd to have waived il~ objection to such defects and
10 have accepred such dcfec15 as P=ittcd Exceptions . In the event of a tcnni .,ation of this
Agreement by Wal -Mart pwsuant ro th,s secoon. the Deposit shall be returned to Wal-MPrt and t-oth
parties shall thereupon be relieved of lil furthtt obligations hereunder .
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5. Qe;JPDFPJ• WilblA t= (10) day1 followia& die dae bo1b partia _. Ibis
Apcmeut, Seller sblil l'lln!ish to Wal-Mart copies of all solb lffl 1q10111, 11M10IIIIIClllll rrpons.
fiml 11111 pelimiay plats, Sll:V"YJi dcvclo{lllleirt apcmco!3, dninap IIUdies, lapvii Ir · : ... ·•
I-al odlll' documcllu relati.ag to the physic31 aspects or development of die ~ ill i1s
potHaion or control (tbe "l;locuments"). The Seller makes ao ~ w ~
wbalsoever reprdina the af:\:ur..cy or rdiability of 1111y such information provided by Ille !die, ia
conll'aciors or collJUitants, or any orber third party reaarding the Doaanems or Ifs ml or
environmenlal conditions e:.istinlJ II the Property .
6. ~ Wal -Mart wll have forty.five 145) days following dsdlllle both
parties execute this A&reemcnt (the "Inspection Period"), to inspect 1111d MIIIIC tbe l'tapr:rt}-to
dcrcrmille the suitability of the Property for Wal-Mart's intended use. Wal -Man may.~--re3SDn
111<1 in its sole discretion. termimle this Agreement by v.titten notice tn Seller sivaJ on Cll'!lri,rc tbe
last day of the Inspection Period. In the evea1 of such termination. the Oq,osit shall be rcturaed
to Wal-Mart and boch parties sb311 thereupon be relieved of all further obligation hemmdc:. If Wal-
Mart does not timely cam:el this Apmem prior to the end of the Inspection, then this ~
shall coatinuc in full force and effect. and the transaction shall proceed to Closing on Ille mcm.s set
forth herein, im:luding without !imitation the conditions to Wal-Man's obligation to close llaeimfta
set fordL Wal-Mart shall conduct such tests of the soil and cnvironmen131 condition of die ProJ,aty
IS Wal-Mart deems necessary .
7. Ai:c;s;r ~cs• Lje;ns . Wal-Mart, its agents. employ«s, •-s. ur
subcontractors, at no charge to Wal-Man, shall have the right of access to the ~' u, =i,
impect. and evaluate the Property as Wal-Man deems appropriate, :it all times alter du: c!ae boffl,f •
111d until the earlier of the ClosinlJ or the tennination of this Agreement, provided the -does not
unreasoaably interfere with the work then being done by Seller at the CC Redevelopm::111 ProJect.
W ~-Mart sball promptly restore any alterations made to the Property by Wal-Mart, or " Wal-Man's
instance or re~ and Wal-Mall shall pay for all work pcrfonned on the Propcny ·11'f -..·a1.:,,1an,
or 3l Wal-Mart's illsW;~c or request, as such payments come due. Any aDd all liens on :cy portion
of the Propmy resulti.ag from the actions or requests or otherwise at the instance of Wai-Man sball
be removed by Wal-Mart at its expense within 15 da ys after notice thereof is given to 'ilhi-Mart.
Wal-Mart shall, al Wal-Mart 's expense , defend, indemnify, and hold bamiless Seller !n:,m and
against my and all obligation!, claims, loss , and daniagc, including cQS!S and at101:11oys ' fees,
resulting from or related :o '·• ,-Mart 's acce ss 10 the Property .
8. f.tQm.m.R_~ The Seller shall complete. or cause M-W re complete
the overlot grading of the Property and bringing utilities to the Property . The Seller sbalhlso cause
M-W to complete the occessary infrastructure , off-site and on-site improvements and common areas
a1 are reasonably necessary for Wal -Mart 10 open and operate its store . Wal -Mr. shall be
responsible for paving and lighting the Propeny. completion of landscape anc\ other ~lopment
requirement> consistent with the architectural and desi gn criteria and site plan o-i the CC
Redevelopment Proj ect. In the event Seller or M-W fail to complete the on-site acr:i o:f-sue
improvements as required by the Site Plan for the= shown and by the time designared m ~
12. Wal-Man , following ten (10) days· noti ce 10 Seller ruid Seller's failure within sud: period to
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~ such • ar if such work tlllllOI buomplcied 10ithin such ten { I 0) day period, Seller's
failun, to~ IIICb work wld/in the ten /10) day period md to dlligcndy punue such work
"' conplcrim Wai-Man lba1I have !be right to compkte such work m:I ID be RilrilNned its
lal0lllblc COil $adi rcimburxmcar sball fust be mad~ !om the ~W Ill bemnaftcr described,
up to die -t.-iDiDI in the collSlnlCtion budget for sacb work, and any txccs1 ablil be paid
11> Wal-Malt by Ille Seller. Wal-M.rt shall piovide Seller within tbiny (30) days following mutual
aeculioa of dlil ~ with plans and sptciflcatio111 for the work ffilUiml IO be done by Seller
lllldcr lhc tmm afdiis Apcment. which plans 111d spocifica!ions shall be subject to Seller's
reaoaable llpllnMl. Scl1cr shall complete. or cause M-W to complete , 5111:h work substamially in
KCOnlaace widl tbr ,iipplOVCd plans and specifications . Seller shall indemnify, 111d sball cause M-W
to indemaify, ml llold Wal-Mart hannless from md against any mechanics lien claims, including
reasonable lllOIDCy5° fees, arisina from any work done by Seller or M-W, as the case may be, with
raped to the Propaty. Fwids may be escrowed at Closina to provide security for completion of
Seller', site wori O>bliptions pursuant 10 a writlffl post -closing escrow agreement.
9. ~ ~•. Followmg deli=,· of the nte and completion of the work required
10 be pcrformod t,,~ or on behalf o( Sellrr lS piovidcd above, the parties agree that the Property will
be conveyed ID 'Jt"~-M.trt in its then "as-is" and '"'Where-is" condition. Wal-Matt is Rlying upon
its own~o(:be Property to e-'3.luate the condition of the Property for Wal-Mart's intended
use . Wal-Man br::wy acknowledges that the oppommity to inspect the Property provided herein
is sufficimt for Wai-Man 10 obwn whatever information regarding the Property that Wal-Mart may
deem necessary m Wal-.".fan to determine the condition of the Property and its suitability for Wal-
Mart 's Ullclldcd i&Se . Wal -Matt acknowledges that it is sophisticated in the purchase and
developmmt of r'al property, and tbar. by proceeding to Closing, shall be deemed to have
acknowledged 1bal it has been given full opportunity to inspect the Property, including the
opportunity 10 pui:,rm soil testing and environmental testin g at the Property , and is rel ying solely
on its own un'CSlipiOlt 10 detennine the suitability and acceptability of the so il and environmental
condition oflhc ?ropcrty for its intended use by Wal -Man. The Seller makn no representations,
wananties Clf ~-either express or imp lied . regarding the condition of tbe Propeny or the
suitability of tbr ?ropcrty for its intended use . including "'itbout limitation any rq,resc•· _li ons
Rlating to the =i:onmcnial conditions, air. water,..-, ~ rights, minerals, utilities, pTCSefll or future
:wning, soil. suhllC>ll, draiuage, or access to public roads .
W . Wal-Mart Contribution and Rebate . In the event the City reasonably
dctmnines lhaudditional funds in excess of the amounts budgeted at the ti me of Closing aR needed
for completion of .:lie CC Rede\'elopment Proj ect. and upon wrineo request of the Ci ty at an y time
subsequent to !Ix Cl osl!l g, Wal-Mart shall enter into an agreem ent with the City to contribute an
amount, not to exceed S2 ,S00.OOO . to be appl ied toward the total cost of public and general
impro"cmcnts . Wal-Mart sh.111 make such contribution within ten ( 10) days following wrinen
reques\ by the C:zy. The City shall rebate such amount, togelher with interest, from sal es taX
generated &nm the CC Redevelopment Projec: in excess ofa base amount ofSl,000,000, on terms
and conditions CD be negotiated. The intmst rate shall be at the lowest cOSI at which Wal-Mart
NrTOws funds at -jJe time Wal-Mart makes the contribution. The City current:y contemplates that
such repaymcu ... ill be made no later than five (5) yeors from t'ie date Wal-Mart opens for business .
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In die oveat Wal-Man fail, to 111ft upon die tams of tbc ,.:iwbw:wmmt qn,ement wl1hia sixty ·•
(60) clays A>Uowina the dare both patica exeaac Ibis A&r=-, eidla-Seller er Wal-Malt ..U
ba~ !bl: oplion 111 ~ lbia A..-upoa 10 c1ays pagrwmma lllllil:c. 1n 111e eYCDt or -ii
~ Ille Deposic shal1 be mlll1ICd promptly 10 Wal-Mari.
11. {;AM. All of Ille popa1ty ownm. i.acludq Sdler and die City, sball enta
imo the CAM Agmmenl providiDa for tbc illUIICIIIKc of !be <:CIIIWOn IMS of the property
illcluded in tbc CC Rcdevelopmc111 ~ Seller sball adminislcr tbc CAM Agrmnent. l.nclud.ing
all mainfenlllce penonncd thtfflmdcr. H~~v. ii is co~ dial Seller will coi!lnCI out th~
maimenance work ID a private managemcnl cocr't'IIIY . Wal-Mzn sball agree to participale in the
CAM Agreement and 10 contribute to the costs A:::::ired as in accgr-Q'lilce with a fonnula!e 10 be
included in !be CAM Agrecme111. The CAM A~ shall i=-..e eascmam, COVCIIIIIIIS and
restrictions to tbc mulllal satisfactiOD of the parties . The CAM A,reement shall provide, among
other things, that Wal-Mart shall be petmined sign3ge. including signqe on Hampden, which
complies with the ovcrall ,ipige plan for the CC Redeveloim-t P:uject and the MUllicipal Code.
The parties shall ag.-cc upon the tmns of the CAM Agre:< within 60 days following the date
bodi parties exlCIIIC this Aai=enl In die CVtlli lb,: parties IO agree OD the tcrmS of the CA.',!
ApemeDt wilhin 111th 60 day period. either party shall have a option to tcrminale this Ape.Dent
upon 10 days prior wiitlen notice. In the event of such tennimlion. the Deposit shall be returned
promptly to Wal-Man.
12 . Coprjpgm;jgs. The obligation of the parties to proceed with the pun:h.aK and •
sale are expressly contingent upon the following :
a. Approval by the City on or befm December IS, I 998 of the site plan,
design ;md financial plan for the CC Redevelopment Project, ! o f whiwi will be submined by the
M-W to the City for apl)rOVal .
b. Wal-Mart's r=nablc approval fthe fi.nal site plan for the Store as
approved by the City within ten (I 0) days foUo-..ing such appro,-al ~· the City . In preparing its site
plan. Wal-Mart shall include such architectural enbancemen!S tom: Store as m: occessary to satisfy
the architectural, design and developmeot criteria of the City .
c. Wal-Man aod M-W obtaining all zoaicg and appro'3ls necessary for
the CC Redevelopment Project.
If any of tht foregoing contingencies are not satisfied by the dates specified, or extended by wrinen
amendment to this Apttm,mt, then either the Seller or Wal-Mart sb:ill have the right to cancel this
Agreement upon t':11 (10) days' written notice to the other party. whc:cupon the parties shall make
a good faith effon to satisfy the contingency within such Ii= and, if it is not so satisfied. this
Agreement sball be tcnninalcd, the Deposit sball be returned to Wal-MAit, and the panics shall have
no further rights or obligations arising from this Agreemen t
N.'DOCf\C1.JOfT,ll\.m«;UW~•NJIA,C""\SAUAC)r(f ..,., (IV,,.../ -6-
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13. Sptc;jal Cootioem:x f.ach party's obliplian to comple1e rile lrmAC1ion
COlllallplau:d by this Agreanmt is continaent upon Seller and M-W, or such Olbcr party a the City
.1111y daipate a die Muter Developer, reacbing a salisfacloiy apcmcnt regardiDg the CC
Rcdevdopmcnt (the ~ Ap-lcent''). If tban: ii DO fiaa1, sipl Rcdcvclopmcut
~ with M-W or with IIIDlbcr redt~'opcr on or befin NoYanblr lO, 1?98, theu tbc Stllcr
-0111 DOtify Wal-Man, and Wal-Martsllall h,we !lie ri&ht to cam:cl lbiaAg=mem upon tell (IC)
days' wriuea notice and the Deposit shall be mumed promplly to Wal-Mart
14 . Chlliua-The closing oftbe saleoftbe PIOpeny mm Seller to Wal-Mart (the
"CJosiai") sba1I take p.\aceoa ix-=>ber 29, 1998 .i 10 :00 a.m. in the offices of the Title Company
or on such other dale, at such other time or location as the parties may mutually &llff. At the
Closing:
a. Wal-Mart shall pay lo Seller the Closq Payment in cash or by
certified check. cashier · s check. wire transfer, or other ilwnediately available funds acc:ptable to
Sell er.
b. General real prope:1)1 ra.~cs 31111 assmmeuts for the year III which ~
Closing occurs shall be apportioned between the parties based upon lhc most recent levy and
assesm,ait, and such adjustlllCnt sball be a final settlement In lhu cvmt tbe most recCIII tu fi&ures
are only available with mpect to a larger parcel than that which is bciDs acquiml II Closing, such
fipa lball be prora1ed based upon the nwnber of acres contained in the Property in proportion to
lhc ll".IIDber of= constituting the larger tract .
c. Seller shall convey fee simple title to !he Property, qether with the
eascmcms described in paragraph 4.b, to Wal -Mart by special wamnty dml, free an clear of any
111d all taxes, assessments, liens , encwnbrances and other matters which would affect ti tle, subject
only to the Permitted faccptions (the "Deed").
d. Seller shall, al its c.-q,ense. cause the Title Company to deliver to Wal-
Mart an unconditional written commitmcn lo issue to Wal -Mart its ALT A owner · s policy (the
"OwDer 's Policy") insuring title to the Property in Wal -Mart in the amount of the Purchase Price
subject onl y to !he Pennittcd Exceptions .
e. Seller. Wal-Mart and all other applicable parties, shall execute the
CA.I¼ Agreement.
f. The parties shall each do or cause to be done such other matters and
things as shall be =nably necessary to clo se the transaction contemplated herein . Each party
shall pay one -half of any charges impo sed by the Ti tle Company to prepare the closing docwnents
and prov ide similar closing services ; Seller shall pay the premium charged by the Title Company
fortbe Owner 's Policy, and Wal-Mart shall pay all retarding, documenw:,. and similar fees incum:tl
in coD11ection with the Closing .
W..,.o00iClllHT\U'L,'G.,IWO\W~ YJ /li)'!t1'11 .7.
Followiac lbe Oosina, Seller sball l:Olllplele, or came M-W 10 complelll, I.be
~fflllliml IO bediiae mlder,..... IJID llllrthaa ~ 21, 1999, II which time Wal-Man
Jball have possession af 11e Prapmy.
1,. ftntlrw Oml'ipjgn Wal-Marl 111d Seller each~ warrant and
represent to the other 9111 it i.. • .all willl Ill)' moj(cr ia co!UICC1i011 wilh the ll'amlcti011
coatemplllcd herein, except ilr _________ C'Brokcrj. Upon 1be
eOIISllllllllllioo of tbr Ille of* ,-,,criy u "111!emplated lllmn, Seller, shall pay to Broker a
commi.aion Jn accordaace widi a ,eparaic ~..-men! between Broker and Seller. Seller sball
iademaify 111d bold bmalas Wal-Mat !it>m aw:1 acainsl i1l'f and all claims for commissions, fees.
or oiber compemalion payable w:, &aka or any otbcr real eswe broker. qent, salCSIIWI, finder, or
Olbc:r person as a result of lllf Ille of lbc Property and oo acco11111 of any implied or express
commitment or undcnaking made by s~ller. Wal-Man shall indemnify and hold harmless Seller
from and against r.ny and all claims iar commissions. fees, or other compensation payable to any teal
estate broker, agmt, salemlal;, find&:, or other person (except as to the foregoing described
commission payable to Broker) • a aault of the sale of the Propcny and on acc ount of any implied
or expres5 commitmenl or WKlertaicing made by W:u-Man .
16. Aqgmrs cm-lo the C\'enl that a law suit is brought to enforce or int~!
all or any portion of this Aer=-, tbc _;,revailillg party in such suit shall be entitled to recover, in
addition to any otbcr ielief a-iable ID Sllcil party, n:asonable costs and e:q,enses , includillg. without
limitation, reasonable aaomeys · ii=es. incurred in comiectioo with su,;h suit.
17 . &media In the event of any breach or failure to perfonn by Wal-Man,
Seller shall, as Seller's ooly ramdy, be e,;titled to tenninate this Agreement and retain the Deposit
as liquidated damages. In the e-=i of any breach or default by Seller, Wal-Mart shall be entitled •
to 1crminate this Ag:recmm ax! obcain a return of the Deposi~ or Wal-Mart may treal this
,¼n=ient as being in full force .ad effect with the right to ao :ction for specific performauce .
18 . Pµn;hag Option. The Deecl to be given by Seller to Wal-M1111 shall be subject
to option to ~ b~ ': City (''Purchase Option")upon the occurrence of the events
described ill this paragraph. In die ~=t (a) Wal-Man vacates the Wal-Mart Store and it remains
unoccupied for six (6) ID0DUI$. and (bJ Wal-Man has failed to make pl:ms satisfactory IO tbe City
for redevdopment c,r re -use of toe Propcty, the Seller will ha"e the option to purchase the Property
at its fair market value. lo additioa. in~ event Wal-Mart desires at any time to sell the Propcny,
the Seller shall have the risht fm six (6) months to purchase the Property at its fair mm.et value .
Fair market value, as used her-en. shall be detmnined b> aar=ent of the parties , or if the parties
an: unable to agiee, tbCll by appmaL If the appraisa(s), in arriving at fair market value, Jetmnine
the Property bas a hip iair c::arket value without the impro"ements then siruated ou. the Property,
the appraiser can take such de!.i!:cniDatioo into account (including the cost of demol itio n associated
therewith) in arriving al fair =iiet value . The S<ller shall have the right l J assign to the City its
rigbts ill the options herein described.
19. Force "kiSUB -I' .. !her party's perfo!lll.lllce :inder this Agreement is delayed
~yond the final date requirec bccunder because of deiays from causes beyond the reasouable
control of such party , such as. but 001 lirn1ttd to, actS of God. strikes, worlc stoppages, unavailability
lt:IOOCN:Uoma.l'~ .. ""-"-'""~• .. S {1~'91'1 -8-•
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er .W.y in recehing labor or lll&lcrials, wealhcr CODdilioas, ar fire ar Olm ca--,., 1fa the date
by wbldi sucli party dial! be 1:!!Qllired to pmonu shall be Cldlmded for a period of lilllD eqwl to die
leqtb of Aid dllay 011de.lay~ bat ill qo evait will die dalle Co. pt:fo.-e be wild for more
than thirty (30) day,.
20 . ~-All :ioticcs jl!Ovidcd ftc berein shall be iD wriliDI md shall be
~ giwa to a party when a copy thereof, addlesacd IL• ,uch party as provided 11miD. is actually
dalivezed, by pctWllll dclivecy, by =ial courier ar by successfill facsimile ~on, 11
the address of such party as provided below. All notices wll be addiased as '6,ws:
To the Seller :
Eugltwood Environmental Foundation, Inc.
3400 South Elati
Englewood , CO 80110
Attention : Rick Kahm
Facsimile : 303-789 -112S
Telephone : 303-762-230S
with a copy to:
H. Michael Miller, Esq.
Bmnbaum, Weinshienk '1· caso11. P.C .
370 17th Street, Sui1e 2600
Denver, CO 80202
Facsimile: 303-629-7610
Telephone : 30j-825-0800
To Wal-Mart :
Wal-Mart Real Estate Business Tru:.,
Sam M. Walton Devt\opment Complex
2001 SE 10th Street
Bentonville, AR 7271:i -6489
Attention : Steven P. :..ane
Facsimile : ____ _
Telephone : ____ _
with a copy to :
Attention : ____ _
Facsimile : ____ _
Tdephone : ____ _
W.\DOalCue.,,tT\UI.IHCU'WOIWA~GMT V1 (IWZ,,.,.1 .9.
2 1. Ggyqpjng Law . The validity and eft"ect of this ~ sball ~
clctammed iin mccordance wilh the laws of the Swe of Colorado .
22. Pptjal Inya)idlty . tn the event dm arr/ COllditiOll er covenm,1 herein cont:liml
is btld ID be iavalill or void by 111y cowt of competent jurisdiction, the samr shall be dacmed
leYenbla iiaa: die remainder of this Agreement and shall in no way aft"~ aoy other covCIIIIII or
00Dditioa blC'ein cocuained. If such condition, COVf:111111 or o!btr provisions shall be dccmcd invalid
due ID its ,cop: or brcadlh, such provision shall be deemed valid to the extent of the scope or breadth
pemuned ~ law.
23 . Iimt-If any event or performance hercwxler is scheduled or required to occur
on a Satu.-day . Sunday, or legal state or federal holiday in Denver, Colorado, such date sl:31l be
Zlll0mallaily extended to the next day that is not a Sarurday . S day or legal state or fedetal holiday
in Dc:nvu. C olor.ido . Time is of the essence with respect tJ cac:h provision requiring performance
within a Su:led period of time .
24 . Coun1CWN15· E;sccu1ion. This Agrttment ma y be executed in coun~
md, -..ilma>untaparts ol dlis Agreement have ~n executed md delivered ~y both of the parties
bi:mo. t!m Agrmnent sn..:! ~ fully binding and effective, just aJ if both of the parties heretD had
e:xo:uim mil deliv=d a single counlerp:irt hmof Without limitiag the mamier in which execution
of this-~ may otherwise be effected hereunder, e~~on by either party may be effected
by facsimf.e ~sion of a signature page hereof executed by such party. If either party effects
eucutioo ill sue!: !Jlallller, such ~-shall also promptly deliver to the other party !he counterpart
physi signed by such party , but the failure of iuch party to do so shall not invalidate the
execuri o,:, hen:of effec ted by facsimile transmission.
~5 . Entire Agreement. This Agreement contains the entire understanding md
agrttm=t between the parties with respect 10 the subject matter hereof and supersedes all prior
commilIOCllts , wdem;m:lings, warranties , and negotiations, all of which are by the execution hereof
rendc-ec aull and •rid No amendment or modification ofthis Agreement shall be: made or deemed
ID have =-n m:;dc unless in writing , execut~ by the party or panics to be bound thereby.
26. Special T3xjng Djstric,s . Spuial wjgg djstrjc11 m4y be subjgt to gcorol
obljptiog IQddztcdam that b pajd hy meguq produced from agngaJ tn ln:in op the
tu,bk pmpmy wjthjg Hsh djstrjm. Property ownen in ad, diltrirt• mar ht pJ•ml at risk
'1c iPCTAH!I miP irnn 19d ucmiY• tu ban!cns to support tbe aai<iA¥ ofsucb dtbt whca
c:jm,ppqpm uiH multing !n the in.abilj(y of mh • di,trict to djscham ~ucb jpdebtcdum
wjt.ho;t such 211 incrmc in mm leyios. Pun;h11cr, should juvestipte the debt financing
m.11irgpcuq of agv cumutly authorized geaco) ~bligatiog 1QC:eb1ti111m of mil di.,tri,;ts,
~ mill !c:ies of •vrh di,,Jcist mvidug such indebtedness, and the pgtcatiaJ for au
lll"'tJ!&•-s iA such miU lc'!iu.
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'J:1 . l:iiaml-TIit Seller ar !he Ciiy inreods lD IFPl7 1111' vcious pantS to be UIOd
ID offxt ponioas of lbc cost for the CC ~ Plaject. Wal-Man sball atrec to cooperalC
with tbc Seller ,wl the City in providing necosay imcnmliCD (llldl a llllicipued DUlllbcr of new
employees) •.o assist the Seller or die City in processiaa ill applicalioa for suds pmis.
28 . MisceJLaneoua .
a. Mgdjfication. The terms ofdlis ~ may not be amcnded,
modified, waived or terminalcd o,ally, but only by an inslrumml in 'Miting signed by each oftbe
parties .
b. Halia&s-The badiae, ID~ ,ectiom be,eofha,-e been inscncd fut
convenience of reference only , and shall in DO way modify or rainct any provisions bcJeof or be
used t.o construe any such provisions .
e. Sug;wjog and A,ISjgmncm of'Ag;mnenL No pc!)' may usip any
interest under this Agremient without the prior written approval of all other pa,ucs. which approval
shall be 31 the discretion of each party . Wal-Man may assip, tllis CoalnCt. without prior approval,
10 any subsidiary or affilialc of Wal-Mart; provided, ~. such assiggee shall assum,: all
oblig:atioos bommdet, and provided, f\inher, Wal-Mart shall ""'be released from any obligation or
liability bemmder. This ~I shall 1111ft t.o the bcncfit of 111d bind tb1! parties berct.o, and their
respc,:tivc suceessors and permitted assigns .
IN WITIIIESS WHEREOF , the parties have c:ucull:d this Agreement as of the day
and year fim ilhove written.
Da~:
Date :
IC~W~Y1111)'?-'flJ -JI-
ENGLE WOOD ENvlRONMENTAL
FOUNDATION, INC .
By: ___________ _
WAL -MART REAL ESTATE BUSINESS
TRUST, a Delav.we Bu.sine>s Trust
Robert M. Bedard,
Assio= Vice: President
• • TO TAL P AGE:. 016 ••---
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COUNCIL COMMUNICATION
Date Agenda Item Subject Resolution supporting
the sale of property to Wal•IAart
from the Englewood
November 2, 1998 11 C ii Environmental Foundation
Initiated By Staff Source
Bob Simpson , Director
Engl~wood Environmental Foundation Englewood Environmental Foundation
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
City Council ha, made Cinderella City red eve lopment the City 's lop priority for the past eight years .
Du rin g the past 18 months , the Council has supported the trans it oriented develo pm en t concept. The
project conce pt and developer responsibilities have bee n the topic of many Coun cil meetings.
RECOMMENDED ACTION
Staff recommends that Counc il approve the resolution to approve the agreement authorizing the
Engle wood Environmental Foundation (EEF) to sell the identified property to Wal-Mart .
BACKGROUND , ANALYSIS , AND ALTERNATIVES IDENTIFIED
T he agreem ent includes five main elements :
1. property
2 . purchase price and deposit
3 . use of property and conditions in accordance with site plan and design cri teria
4. Wal-Mart improvements
5 . develo pmen t liming
FINANCIAL IMPACT
This agreement establishes the sale price at 53.4· million payable ,n cash at closi ng, Decem ber 29 ,
1998.
LIST OF ATTACHMENTS
Pr oposed Res olution