8.1 Agr Option Sell City Prop CITY OF SALINA
REQUEST FOR COI4N I S S I ON ACT I ON DATE T I ME "
6/26/1989 q:00 P.M.
AGENDA SECTION: Administration ORIGINATING DEPARTNENT: APPROVED FOR
ND. 8 Department of Finance AGENDA:
NO. 1 BY: _,.~, BY: ~
Robert K. Biles ~q-~
Consider an option for the sale of city property at Broadway and University
Place.
Back~lround
In early 1988, the City Commission determined the land at Broadway and
University Place to be excess property and authorized the acceptance of bids for
the property. Two bids were received, each one was substantially below the
appraised value of $3:3,500. The City Commission rejected the bids and directed
City staff to inform local real estate companies of the availability of the property.
A data sheet describing the 'property was prepared and sent to local realtors in
mid-1988 and a sign was erected on the property advertising its availability.
Cu trent offer
The City was presented with an option ·for the property this last week. For
$100, Mr. Steven R. Struebing desires to acquire an option to purchase this
property within 90 days for an additional $33,400.
As shown on the attached site plan, it is Mr. Streubing's intent to use this
property to develop a strip mall.
Recommendation
Staff recommends granting the option to purchase the property to Mr. Struebing.
COI~ISSION ACTION
MOTION BY SECOND BY
OPTION AGREEMENT
THIS OPTION AGREEMENT, macle and entered into this 26th day of
June, 1989, by and between THE CITY OF SALINA, KANSAS, a Kansas
municipal corporation, as "Owner", and STEVEN R. STRUEBING, of Junction
City, Kansas, as "Struebing".
WITNESSETH:
That for and in consideration of the mutual covenants and
agreements herein contained, the parties do hereby mutually agree as follows:
1. GRANT OF OPTION. Owner, in consideration of the sum of
One Hundred Dollars ($100) to be paid to it upon execution of this agreement
by both parties, hereby grants to Streubing the exclusive right, at the option
of Struebing, for and during the period of ninety (90) days from the date
hereof, to purchase the following described real estate located in the City of
Salina, Saline County, Kansas, to-wit:
A tract of land located in Park Number 3 of Leavenworth
Addition to the City of Salina, Saline County, Kansas,
more particularly described as follows:
Beginning at a point on the east right-of-way line of
Broadway Boulevard, said point being 63.98 feet north of
the southwest corner of Lot 10 in Block 12 of Leavenworth
Addition; Thence north along the east right-of-way line
of Broadway Boulevard, a distance of 201.02 feet; Thence
east, parallel with the south right-of-way line of
University Place, a distance of 80.00 feet to a point on the
west line of a 20 foot drive; Thence south along the west
line of a 20 foot drive; Thence south along the west line
of said drive a distance of 149.02 feet; Thence
southwesterly along the north line of said 20 foot drive, a
distance of 95.91 feet back to the point of beginning.
Together with all of Owner's rights of reverter and other
interest in and to that part of the twenty foot (20') wide
platted drive located adjacent to the east and southerly
boundary lines of the above-described tract
(hereinafter the "Real Estate") for a price ot= Thirty-three Thousand Five
Hundred Dollars ($33,500.00). Such price shall be paid at the time of closing
in the event Struebing so exercises the option herein granted him. If
Strueb~ng should so exercise the option herein granted, the sum of One
Hundred Dollars ($100.00) paid by him to Owner for the grant of this option
shall be credited towards his obligation to pay the above-stated purchase
price, but. if Struebing should fail to exercise this Option, Owner shall be
entitled to retain said sum paid to it for the grant of this Option.
2. EXERCISE OF OPTION. in the event Struebing shall elect to
exercise the option herein granted and purchase the above-described property
from Owner, he shall so notify Owner in writing by certified mail addressed to
Owner at the following address:
Jacqueline, Shiever, City Clerk
P. O. Box 736
Salina w KS 67402-0736
on or before the expiration of the above-stated option period. Such notice
shall be deemed to have been served upon Owner at the time of deposit of the
same with the United States Postal Service for mailing to Owner. As soon as
reasonably possible after receipt of such notice from Struebing that Struebing
is so exercising his option herein granted, Owner shall deliver to Struebing a
commitment for a standard ownerls title insurance policy in the amount of
Thirty-three Thousand Five Hundred Dollars ($33,500.00) to insure Struebing's
title to said Real Estate in fee simple, free and clear of all liens, claims and
encumbrances. Struebing shall have a reasonable' time after receipt of the
commitment for an owner's title insurance policy to examine the same and make
requirements with respect thereto, and Owner shall have a reasonable time to
comply with any such requirements so made.
3. OWNER'S REPRESENTATIONS AND COVENANTS. Owner hereby
represents, warrants and covenants to and with Struebing as follows:
(a) that the Real Estate is currently zoned under the zoning
ordinances of the City of Salina, Kansas so as to allow its development and use
as a retail strip shopping center;
(b) Owner is the lawful owner of the Real Estate and is in all
respects free to enter into this Agreement and sell and convey the Real Estate
to Struebing, and the governing body of Owner has duly authorized the
execution and delivery of this Option Agreement (and the Mayor's Deed to
Struebing, in the event that Struebing should exercise this option);
(c) that the Real Estate is not currently subject to any special
assessments or charges and Owner is unaware of any proposed benefit or
improvement district in which the Real Estate is to be included which may
result in any special assessment or charges against the Real Estate in the
future.
4. DEED. Upon receipt of notice that Struebing has elected to
exercise the option herein granted, Owner shall execute and deliver to Wally
Storey & Associates, Salina, Kansas, as escrow agent hereunder, a duly
executed Mayor's Deed conveying the Real Estate to Struebing, free and clear
of all liens, claims and encumbrances, and subject only to those easements,
reservations and restrictions now of record and which do not materially affect
the value of the Real Estate or its useability as a retail strip shopping center.
5. CLOSING. If Struebing should e-t~ct to exercise the option
herein granted, at such time as he has approved the commitment for an
owner's title insurance policy, he shall deliver to the escrow agent the sum of
Thirty-three Thousand Four Hundred Dollars ($33,400.00) in cash or certified
funds in payment of the balance of the purchase price. The escrow agent
shall thereafter record the deed and simultaneously therewith disburse the
purchase price to Owner after deducting any costs or expenses which Owner,
under the terms of this agreement, is to bear.
6. COSTS AND EXPENSES. Owner agrees to pay any commissions
or fees owing to Walley Storey & Associates, the real estate broker who has
procured Struebing as a purchaser. Owner shall be responsible for paying
the costs of providing Struebing an owner's title insurance policy, and the
costs of complying with any reasonable title requirements made by Struebing.
Struebing shall be responsible for paying the costs of recording his deed.
7. BINDING EFFECT. This option agreement shall extend to and
bind the representative parties° hereto, their heirs, executors, administrators,
successors, trustees and assigns.
IN WITNESS WHEREOF, the parties hereto have set their hands the
day and year first above written.
THE CITY OF SALINA, KANSAS
A Kansas municipal Corporation
Joseph A. Warner, Mayor
"Owner"
[SEAL]
ATTEST:
Jacqueline Shiever, City Clerk
Steven R. Struebing
"Struebing"
'" US 81 BY PASS
. e ..... FAMILY DOLLRK~ :RENT~A;CENT}~' -La~sq-SPa[e.
: ~ 6900 ~qlt 2500 sqft 3900 sqft.
· ~ "
PRELIMINARY SITE_PL'AM iCALE .17~ 20'.
'SITE PLAN PREPARED WITHOUT A SITE SURVEY
s, PPLEBY AND MARSH