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Res 2084 - FHDC Amendment to Option to Acquire Real Property 1750 Park AveCOUNCIL BILL NO. 3012 RESOLUTION NO. 2084 A RESOLUTION TO EXTEND THE OPTION PERIOD TO ACQUIRE REAL PROPERTY FOR THE FARMWORKER HOUSING DEVELOPMENT CORPORATION (FHDC) AND AUTHORIZING THE CITY ADMINISTRATOR TO SIGN AN AMENDMENT TO THE CURRENT OPTION CONTRACT WITH FHDC. WHEREAS, on October 26, 2015, the City Council received an offer from FHDC to purchase City -owned surplus real property located at 1750 Park Ave. (the "Property"); and WHEREAS, on November 9, 2015, the City Council voted and unanimously passed Council Bill No. 2991, to sell the Property to FHDC and allow the City Administrator to sign an option to acquire real property with FHDC; and WHEREAS, on November 10, 2015, the City and FHDC entered into an Option to Acquire Real Property Agreement ("Option Agreement"), whereby granting FHDC the exclusive option to acquire the Property upon the terms and conditions set forth in the Purchase Agreement; and WHEREAS, since entering into the Option Agreement, FHDC has conducted environmental review of the Property and is now seeking certain funding to develop the property; and WHEREAS, FHDC requires additional time beyond that provided in the Option Agreement to secure the necessary funding to purchase the Property; and WEHREAS, The City Council finds it still in the best interest of the City to maintain the Option Agreement with FHDC and allow FHDC the necessary additional time it needs to secure its funding to purchase the Property; NOW THEREFORE, THE CITY OF WOODBURN HEREBY RESOLVES AS FOLLOWS: Section 1. That the City of Woodburn enter into First Amendment to Option to Acquire Real Property, a copy of which is affixed hereto as Attachment "A" and by this reference incorporated herein, with FHDC for the sale of City owned surplus real property located at 1750 Park Ave. Section 2. That the City Administrator is authorized to sign said amendment on behalf of the City. Page 1 - COUNCIL BELL NO. 3012 RESOLUTION NO. 2084 Section 3. That the City Administrator is authorized to sign a Notice of Disclosure to Seller with Purchase Offer that FHDC is required to submit to the State of Oregon, a copy of which is affixed hereto as Attachment "B." Approved as to form- -P./;3 City' At y Date 2700imm Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Heather Pierson, City Recorder City of Woodburn, Oregon Page 2 - COUNCIL BILL NO. 3012 RESOLUTION NO. 2084 Attachment A First Amendment to Option to Acquire Real Property This First Amendment to Option to Acquire Real Property ("First Amendment") is made and entered into as of this day of , 2016, by and between the City of Woodburn, Oregon, an Oregon municipal corporation (the "City") and the Farmworker Housing Development Corporation, an Oregon nonprofit corporation, or assigns ("FHDC"). Whereas, the City and FHDC previously entered into that certain Option to Acquire Real Property dated November 10, 2015 (the "Option Agreement") whereby the City granted FHDC the exclusive option to acquire the Property upon the terms and conditions set forth in the Purchase Agreement. All terns not otherwise defined herein shall have the meaning assigned to them in the Option Agreement; Whereas, the City and FHDC desire to extend the end of the Option Term to April 30, 2017, and the Financing Contingency Period (as defined in the Purchase Agreement) to August 31, 2017; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The first sentence of Section 2 is hereby deleted in its entirety and replaced with the following: FHDC may exercise its option hereunder by executing and delivering to the City on or before 5:00 p.m., April 30, 2017, the Purchase Agreement. 2. The first sentence of Section 6.a. of the form, Purchase Agreement, which is attached as Exhibit B to the Option Agreement, is hereby deleted in its entirety and replaced with the following: Purchaser shall have until July 31, 2017 (the "Financing Contingency Period") to secure financing commitments satisfactory to Purchaser in its sole and absolute discretion (the "Financing Contingency"). 3. Except as amended by this First Amendment, all other terms and conditions of the Option Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this First Amendment as of the day and date first referenced above. [Signatures on following pages] FUDC First Amendment to Option Agreement Signature Page to First Amendment The City of Woodburn, Oregon an Oregon municipal corporation a Its STATE OF OREGON ) ) ss. COUNTY OF MARION ) Date Attachment A I certify that I know or have satisfactory evidence that is the person who appeared before me and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the of City of Woodburn to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: Notary Public My appointment expires: FHDC First Amendment to Option Agreement (Print Name) 4 Signature Page to First Amendment Farmworker Housing Development Corporation an Oregon nonprofit corporation By Its STATE OF OREGON } } ss. COUNTY OF MARION } Date Attachment A I certify that I know or have satisfactory evidence that is the person who appeared before me and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the of the Farimworker Housing Development Corporation to be the free and voluntary act of such parry for the uses and purposes mentioned in the instrument. DATED: (Print Name) Notary Public My appointment expires: FHDC First Amendment to Option Agreement 5 err: Attachment B Farmworker Housing Development Corporation Corporacion de Desarrollo de Vivienda Campesina www.,fhdc.org Notice of Disclosure to Seller with Purchase Offer Dear City of Woodburn City Council: This is to inform you that Farmworker Housing Develo meat Corporation would like to purchase the property located at 1750 Park Avenue, Woodburn OR 97071 if a satisfactoryagreement can be reached. We are prepared to a $35 g p p pay $350,000 for clear title to the property under the conditions described in, the attached proposed Option to soma Acquire Real Property. Because federal funds from the HOME Program may be used in the project, either for acquisition, rehabilitation, or new construction, we are required to disclose to you the following information: 1. This agency does not have the power of eminent domain.. Your property will not be acquired through condemnation. If negotiations fail to result in an amicable purchase agreement, your property will not be acquired. 2. We are also required to inform you, in writing, of the fair market value of the property. The estimated fair market value will be determined by a fee appraisal or other approved means. You will be informed of the fair market value when it is established. At that time, you may withdraw from the transaction. 3. The HOME program requires that the purchase price be justifiable if not comparable to the fair market value of the property. 4. If in addition to being the seller of the property, you occupy the property, you should be aware that you will not be eligible for relocation assistance under the Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended. This transaction is considered a voluntary arm's length transaction. If you are willing to sell the property based on the above disclosures, please sign this letter and return it to this agency within 10 days. It is also our understanding that no tenants are occupying the property. If this is incorrect, please provide us with the names of the tenant -occupants of the property. If you .have any questions, please contact Maria Elena Guerra at (971) 3385150. Sincerely, Maria Elena Guerra, Executive Director I accept the conditions of this purchase offer disclosure. Date Seller 1274 Fifth Street 1-A, Woodburn, OR 97071 1(503) 981-1618 Phone 1 TTY 1-800-735-29001(503) 981-3652 Fax E QUAL HOUSBVG 6