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Real Estate Agreement ;. AGREEMENT THIS AGREEMENT is made this ~ day of --~~I' 20<3' by and between D.K, Inc., a corporation existing under the laws of the st te of Kansas (hereinafter "Seller") and the City of Salina, a municipal corpora ion existing under the lavis of the state of Kansas (hereinafter "Buyer"). WHEREAS, Seller is the owner of certain real property which is legally described at Exhibit "A". which is attached hereto and incorporated herein by reference; and WHEREAS, Buyer is undertaking a roadway improvement project in the vicinity of Seller's real property.. and Buyer has determined it is necessary to acquire the pOltion of Seller's real property described at Exhibit "A" for such project; and WHEREAS, pursuant to applicable Kansas statutes, Buyer has the power of eminent domain to acquire real property for its lawful public purposes; and WHEREAS, in lieu of Buyer's exercise of its power of eminent domain Seller is willing to sell and Buyer is willing to purchase Seller's real property described at Exhibit A, and by this written Agreement the parties desire and intend to set forth the terms and conditions of their ägreement in writing. NOW, THEREFORE, in consideration ofthe mutual covenants contained herein and other good and valuable consideration, the receipt and suftïciency of which is hereby acknowledged, the parties agree as follows: I. Seller agrees to sell and Buyer agrees to purchase the following described real property: See Exhibit A, which is attached hereto and incorporated by reterence. 2. Purchase Price. The purchase price for such real property is $104,600, payable at closing. ]. &stricJive Ço...Y~llant. As addition; c'JnsideraìÌon. Seller agrees to attach a restrictive. covenant ~as descríbed in l'-xhlbit "B") for the use of the tI act of land tas described in Exhibit A) conveyed from Ruyer to Seller pursuant to this A!!rec:l1ent. 4. Fee Simple Title. Buyer shall obtain a certification of title, and Seller agrees to prav id:: merchantable fee simple title to Buyer as of the date of recording of the deed.. subject only to such liens and encumL'anccs as may be approvec by Buyèr. Buyer shall, Nithìn fourteen days (14) days prior to closing, deliver such commitment to Seller. Seller shall, prior to closing, secure and file any and all lien releases as may be necessary in order to deliver merch:mtable fee S ill1 pic title to Buyer. In the event that Seller is unable to secure such releases. Buyer shall be entitled to extend closing for up to thirty (30) Jays in order to secure and file releases. or Buyer, at its option, may utilize as much of the above-stated purchase price as is necessary \0 satisfy any and all such liens which encumber merchantable fee simple title. Buyer shall be responsible for paying all title insurance premiums. 5. Proration. Seller shall pay all real property and other taxes, general and special, all assessments of any kind or nature, which are due and have accrued at the date of Closing, and Buyer shall assume such taxes or assessments which become due and owing after the date of Closing. 6. Closing Costs. Buyer agrees to pay the costs of recording all deeds and other instruments tendered to it. 7. Real Estate Commissions. The parties represent that neither has engaged the services of a real estate agent or broker in relation to this transaction, and that to the best of their respective knowledge no person or entity has a claim for any commission in connection with this transaction. In the event that any person or entity claims a commission from Seller for services provided to Seller in relation to this transaction, such commissions are the sale responsibility of Seller. Seller agrees to indemnify and hold Buyer harmless from and against any and all liability, costs and expenses, including reasonable attorneys' fees, arising out of or pertaining in any manner to any claim for any such commission claimed from Seller. In the event that any person or entity claims a commission from Buyer for services provided to Buyer in relation to this transaction, such commissions are the sale responsibility of Buyer. Buyer agrees to indemnify and hold Seller harmless from and against any and all liability, costs and expenses, including reasonable attorneys' fees, arising out of or pertaining in any manner to any claim for any such commission claimed from Buyer. 8. Possession Delivered at Closing. Seller shall be entitled to possession of the property prior to closing. Absolute and unqualified possession shall be delivered to Buyer at 5:00 p.m. on the date of closing, unless extended in writing by Buyer. 9. Notices. The delivery of any documentation or notices as provided hereunder shall be made with respect to Seller to O.K., Inc. c/o Mr. Daniel Diederich, 2035 East Iron, Suite 104, Salina, Kansas. 67401, and with respect to Buyer to Tim Orrick, Foth & Orrick, LLP., 11900 College Boulevan,l, Suite 210, Overland Park, Kansas, 66213. or at such other places as the parties shall hereinafter designate in writing. 10. Closing. The sale and purchase provided herein shall be consummated at a Closing to be held at Land Title Services. Inc., 136 N. ill Street, Salina, Kansas, 67401, on January 13, 2005, or at another date and time designated by the parties. The date and event of the sale and purchase are. respectively, herein referred to as the "Closing Date" and the "Closing". On the Closing Date, Sellers shall deliver to Buyer a Warranty Deed conveying to Buyer the property J '. herein sold free and clear of all liens, taxes, charges and encumbrances whatsoever, excepting those recorded restrictions and easements approved by Buyer. At the Closing, all monies and papers shall be delivered and all other things called for by this Agreement shall be done, including the proration of taxes, assessments, and other items called for in this contract. 1]. Authority to Execute Agreement. Each of the persons executing this Agreement on behalf of the respective parties represents and warrants that they have the authority to bind the party on behalf of whom they sign this Agreement, and that all acts requisite to the authorization to enter into this Agreement have been taken and completed. 12. Choice of Law. The law of the State of Kansas shall govern the rights of the parties with respect to this agreement. 13. Entire Agreement. This contract contains the entire agreement between the parties regarding the subject matter of this agreement. All prior oral or written statements relating to the subject matter of this Agreement are merged into this written Agreement, and no promise or agreement not herein expressed has been made by the parties. None of the provisions contained in the Agreement may be changed except by an instrument in writing signed by all of the parties hereto. 14. Agreement Binding. This agreement, and the obligations of the parties, are joint and several obligations of the respective parties, and shall be binding upon the heirs, executors, successors or assigns of the respective parties. -, -) , IN WITNESS WHEREOF, the said parties have hereto set their hands the day and year first above written. 1Îj;;Jjl<~,~ O.K., Inc. By: Don P. Diederich, President Tax 10# ~ fJ - 0 9.J.. 87~~ ACKNOWLEDGMENT ST A TE OF KANSAS ) )SS. ) COUNTY OF SALINE li.#- 'Î BE IT REMEMBERED that on this ~day of '. 20Q.S'before me, the undersigned, a notary public in and for the county and state aforesaid, came on P. Die erich who is personally known to me to be the President of O.K.. Inc. and the same person who executed the within ins rument of writing and such pcrson duly acknowledged the execution of the same for the purposes and consideration therein expressed. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year last above written. My appointment expo " BUYER: b~ By: ACKNOWLEDGMENT STATE OF KANSAS ) )SS. ) COUNTY OF ~ALlNE BE IT REMEMBERED that on this t:L+ìJay of 'S'G..r--,¡ .I.~' 200.í"before me, the undersigned, a notary public in and for the county and state aforesaid, came Monte D. Shadwick. the Mayor of Salina, Kansas. who is personally knO\~n to me to be the same person who exeeukd the within ¡~slrument of writing and such person c:u'y acknowledged the execution of the same on behalf of the City of Salina It)r the purposes and consideration therein expressed. IN WITNESS WHEREOF, I have hereunto set my hand and aftï'œd my ortïeial sea! the day and year last above written. Il'..o 0 ~ ~ A- .--=Lr~ Notary Puh IC -~~o-O'-_o- My appointment expires:l.p ,e:¡ IO~ ft. KEllY A. FABRIZI US EI,Ia Notary Public - State of Kansas M A pI. Ex ires June 9, 2008 4 Exhibit A LEGAL DESCRIPTION OF REAL PROPERTY TO BE CONVEYED Project Tract No. 18: FEE SIMPLE TITLE: A fee simple interest in a tract of land in Lee Industrial Park, according to the plat thereof recorded in the office of the Register of Deeds of Saline County, Kansas, on April I, 1964, in Book A-3 of Plats at Page 36, lying South and West of the City of Salina Flood Control right of way, situated in the South Half (S/2) of the Southeast Quarter (SE/4) of Section Six (6), Township Fourteen (14) South, Range Two (2) West of the 6th P.M, in Saline County, Kansas, and more particularly described as follows: Beginning at the Southeast corner of said Southeast Quarter; Thence Northerly along the East line of said Southeast Quarter, on an assumed bearing ofN 00°15'01" W, a distance of897.59 feet; Thence S 89°44'59" W, along the South line of said Flood Control right of way line, a distance of 233.28 feet; Thence N 24°24'23" W, along said right of way line, a distance of 305.81 feet to a point on the existing southerly Union Pacific Railroad right of way line; Thence S 68°20 '28" W, along said right of way line, a distance of 872.12 feet: Thence Southeasterly along a 658.16-foot radius non-tangent curve to the right, an arc length of 827.82 feet and having a chord which bears S 34°37'32" E, a distance of774.32 feet; Thence S 01°24'26" W, a distance of98.51 feet; Thence S 07°46 '0 I" W, a distance of 123 AI feet to a point on South line of said Southeast Quarter; Thence N 89°38' 14" E, along said South line, a distance of 753.25 feet to the POINT OF BEGINNING. Said tract contains 19.87 acres, more or less, including existing road right of way. AND FEE SIMPLE TITLE: A fee simple interest in a tract of land in Lee Industrial Park. according to the plat thereof recorded in the office of the Register of Deeds of Saline County, Kansas, on April I, 1964, in Book A-3 of Plats at Page 36, lying South and West of the City of Salina Flood Control right of way. situated in the South Half (S/2) of the Southeast Quarter (SE/4) of Section Six (6), Township Fourteen (14) South. Range Two (2) West of the 61h P.M. in Saline County, Kansas. and more particularly described as follows: Commencing at the Southeast corner of said Southeast Quarter; Thence Northerly along the East line of said Southeast Quarter, on an assumed bearing of N 00°15'01" W, a distance of897.59 feet; Thence S 89°44'59" W, along the South line of said Flood Control right of way line, a distance of 233.28 feet; Thence N 24°24 '23" W, along said right of way line. a distance of 305. 8] feet to a point on the existing southerly Union Pacific Railroad right of way line: 5 " , Thence S 68°20'28" W, along said right of way line, a distance of 1027.93 feet; Thence N 00°13'46" W, along said right of way line, a distance of90.61 feet to the Point of Beginning; Thence N 00°[3'46" W, along said right of way line, a distance of27.56 feet; Thence S 68°20'28" W, along said right of \vay line, a distance of 64.07 feet; Thence Southeasterly along a 658.16-foot rad:us non-tangent curve to the right, an arc length of 59.81 feet and having a chord which bears S 86°15'06" E, a distance of59.79 feet to the POINT OF BEGINNING; Said tract contains 0.02 acres, (794 square feet), more or less. AND TEMPORARY EASEMENT: A tract of land in Lee Industrial Park, according to the plat thereof recorded in the office of the Register of Deeds of Saline County, Kansas, on April I, 1964, in Book A-3 of Plats at Page 36, lying South and West of the City of Salina Flood Control right of way, situated in the South Half (S/2) of the Southeast Quarter (SE/4) of Section Six (6), Township Fourteen (14) South, Range Two (2) West of the 6th P.M. in Saline County, Kansas, and more particularly described as follows: Commencing at the Southeast corner of said Southeast Quarter; Thence Westerly along the South line, on an assumed bearing of S 89°38' 14" W, a distance of 753.25 feet to the Point of Beginning; Thence N 07°46'01" E, a distance of43.93 feet; Thence S 67°33' 46" W, a distance of 1 15.71 feet to a point on the South line of said Southeast Quarter; Thence N 89°38'14" E, along said South line, a distance of 101.02 feet to the POINT OF BEGINNING. Said tract contains 0.05 acres. (2197 square feet), more or less. AND TEMPORARY EASEMENT: A tract of land in Lee Industrial Park, according to the plat thereof recorded in the office of the Register of Deeds of Saline County, Kansas. on April 1, 1964, in Book A-] of Plats at Page 36, lying South and West of the City of Salina Flood Control right of way, situated in the South Half (S/2) of the Southeast Qua11er (SE/4) of Section Six (6). Township Fourteen (14) South, Range Two (2) West of the 6th P.M. in Saline County, Kansas. and more particularly described as follows: Commencing at the Southeast corner of said Southeast Quarter; Thence No11herly along the East line of said Southeast Quarter, on an assumed bearing ofN 00°15'0 I ,. W, a distance of 897.59 feet; Thence S 89°44'59" W, along the South line of said Flood Control right of way line. a distance of 233.28 feet: Thence N 24°24'23" W. along said right of way line, a distance of305.81 teet to a point all the existing southerly Union Pacific Railroad right of way line; 6 , Thence S 68°20'28" W, along said right of way line, a distance of 1027.93 feet; Thence N 00°13'46" W, along said right of way line, a distance of60.40 feet to the Point of Beginning; Thence N 00°13'46" W along said right of way line, a distance of30.21 feet; Thence Northwesterly along a 658.16-foot radius non-tangent curve to the left, an arc length of 59.81 feet and having a chord which bears N 86°15 '06" W, a distance of 59.79 feet to a point on said southerly railroad right of way line; Thence S 68°20'28" W, along said right of way line, a distance of 24.72 feet to a point on the West line of said Lee Industrial Park; Thence S 00°13'46' E, along said West line, a distance of20.82 feet; Thence S 87°06'37" E, a distance of 82.77 feet to a point to the POINT OF BEGINNING; Said tract contains 0.06 acres, (2453 square feet), more or less. 7 Exhibit B RESTRICTIVE COVENANT FOR USE IN WARRANTY DEED: DK, Inc. and the City acknowledge (1) that the City is acquiring the Real Estate in conjunction with the North Ohio Street Railroad Grade Separation Project for the primary purpose of providing for the construction and railroad use of new spur tracks connecting the Union Pacific mainline to the Scoular Elevator spur and sidings (the "Railroad Use") and (2) that upon conveyance of title to the Real Estate, DK, Inc. shall remain in ownership of a tract legally described on the attached and incorporated Exhibit C (the "Remaining Tract"). The City covenants that its use of the Real Estate for purposes other than the Railroad Use shall not include: (1) (2) The storage, treatment, or disposal of sewage!; The storage, treatment, or disposal ofwastewater2, including the application of sewage sludge3 (also referred to as "biosolids"); The storage, treatment, or disposal of solid waste4, other than as a: (3) (a) (b) (c) (d) household hazardous waste facility5; yard-waste6 storage, processing and composting facilit/; tree and limb storage, processing, and chipping facility; or cut or chipped wood and compost distribution facility; all of which, to the extent operated by or on behalf of the City, shall be operated without open burning8 and in compliance with all applicable law; or (4) Any use which interferes with the use, enjoyment, access to, or quiet peaceable possession of the Remaining Tract. This covenant shall be binding upon and run with the Real Estate until released or modified in writing by DK, Inc., or its successors or assigns in ownership of the Remaining Tract. IK.S.A 65-164(b). 2Salina Code Sec. 41-110(69). 340 CFR 503.9(w). 4K.S.A.65-3402(a). 5K.S.A.65-3402(z). 6K.A.R.28-29-3(gg). 7K.S.A.65-3402(y). 8K.A.R.28-29-3(v). 8 , . '. . , Exhibit C O.K., Inc.- REMAINING PROPERTY A tract ofland in Lee Industrial Park, according to the plat thereof recorded in the office of the Register of Deeds of Saline County, Kansas, on April I, 1964, in Book A-3 of Plats at Page 36, lying South and West of the City of Salina Flood Control right of way, situated in the South Half (S/2) of the Southeast Quarter (SE/4) of Section Six (6), Township Fourteen (14) South, Range Two (2) West of the 6th P.M. in Saline County, Kansas, and more particularly described as follows Beginning at a point on the south line, 753.25 feet west of the Southeast corner of said Southeast Quarter, said south line having an assumed bearing ofS 89°38'14" W; Thence N 07°46'0 I" E, a distance of 123.41 feet; Thence N 0 I °24 '26" E, a distance of 98.51 feet; Thence Northwesterly along a 658.16-foot radius curve to the left, an arc distance of 827 .82 feet and having a chord which bears N 34°37'32" W, a distance of 774.32 feet to a point on the existing southerly Union Pacific Railroad right of way line; Thence S 68°20'28" W, along said right of way line, a distance of 155.81 feet; Thence N 00°13'46" W, along said right of way line, a distance of90.61 feet; Thence Northwesterly along a 658.16-foot radius curve to the left, an arc distance of 59.81 feet and having a chord which bears N 86° 15' 06" W, a distance of 59.79 feet to a point on said railroad right of way line; Thence S 68°20'28" W, along said right of way line, a distance of24.72 feet to a point on the west line of said Lee I ndustrial Park; Thence S 00° 13' 46" E, along said west line extended, a distance of 889.92 feet to a point on the South line of said Southeast Quarter; Thence N 89°38' 14" E, along said south line, a distance of 645.13 feet to the POINT OF BEGINNING. Said tract contains 11.39 acres, more or less. 9