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HomeMy WebLinkAboutItem 01 North Glenwood Real PropertyAGENDA ITEM SUMMARY Meeting Date: 6/29/2020 Meeting Type: Regular Meeting Department: City Manager’s Office Staff Contact: Nancy Newton/Mary Bridget Smith S P R I N G F I E L D ECONOMIC Staff Phone No: 541 726 3700 DEVELOPMENT AGENCY Estimated Time: 30 Minutes ITEM TITLE: NORTH GLENWOOD REAL PROPERTY REQUEST ACTION REQUESTED: Provide guidance regarding SCDC request to use the SEDA North Glenwood Property for the indoor track facility. ISSUE STATEMENT: SCDC is the nonprofit heading up the indoor track project and it has requested that SEDA use its North Glenwood property for the project. Securing a site is crucial to SCDC starting its fundraising efforts. Before considering SCDC’s request, SEDA was preparing to issue a Request for Qualifications for private entity to develop the North Glenwood Property. ATTACHMENTS: Attachment 1: Draft Resolution Attachment 2: Draft Real Property Option Template Attachment 3: Willamalane Resolution 19-20-06 Attachment 4: North Glenwood Property Map DISCUSSION/ FINANCIAL IMPACT: SCDC The Coronavirus Pandemic has delayed SCDC’s efforts but they are still working toward accomplishing their goal of constructing an indoor track and sports facility in Glenwood. They meet weekly and have been focusing on three areas: building predesign, branding strategy, and fundraising. The 90-day predesign work in partnership with Chambers Construction and PIVOT Architecture to configure the facility and determine a cost just resumed. Branding work is being done in collaboration with the AHM with the purpose of defining, branding and communication strategy for the project. The fundraising aspects at this point predominantly include conducting a fundraising feasibility study, private fundraising, and obtaining grants. Finally, the overall timeline of the project has shifted because the World Athletics Championships was rescheduled to July 2022 and the Olympic Team Trials to June 2021. Willamalane Willamalane received a similar request from SCDC to be the facility owner/operator. In conjunction with that request, it undertook an internal SWOT analysis, interviewed operators of similar facilities and commissioned a revised feasibility study and pro forma. That work concluded that the facility would be operationally feasible and profitable five years from opening. Willamalane passed a resolution affirming that it was supportive of operating the facility but its participation was predicated on certain actions like a public survey, fundraising completed by 2025, agreements with key partners and funding assistance for the first five years of operation. SEDA SEDA evaluated that request on March 9, 2020 and directed staff to participate in the predesign period, investigate financial impacts and reach out to adjacent property owners, and determine if there is an agreement we can reach with SCDC that still protects SEDA’s interest while allowing the project to move forward. Some ways SEDA can establish that it is committing its property to the project include passing a resolution affirming its commitment, negotiating an MOU with SCDC or executing a real property option with SCDC that commits the property to SCDC while they are still in their due diligence phase. A draft resolution and option agreement is attached for discussion purposes. {00016404:1} PAGE 1 OF 2 2664808.1 040107 RSIND SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY (SEDA) RESOLUTION NO. ___________ A RESOLUTION PLEDGING THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY’S SUPPORT TO SITING AN INDOOR TRACK FACILITY ON ITS NORTH GLENWOOD PROPERTY WHEREAS, SEDA accepted the Glenwood Urban Renewal Plan on November 15, 2004 by Resolution 2004-02; WHEREAS, One of the primary intentions of the Glenwood Urban Renewal Plan (the “Plan”) is to stimulate new investment by public, private, non-profit, or community-based organizations on vacant or underdeveloped property in Glenwood to achieve the objectives of the Plan; WHEREAS, the Springfield Community Development Corporation (SCDC) is leading the efforts to have an indoor track and event facility in Glenwood; WHEREAS, SEDA owns property in Glenwood where SCDC would like to site the indoor track and event facility; WHEREAS, SCDC has made a formal request to site the indoor track and event facility on SEDA’s property; WHEREAS, SCDC has engaged local architect and construction firms to assist with the planning and design of the facility (“due diligence period”) and has invited SEDA staff to participate in that process; WHEREAS, Siting the indoor track and event facility on SEDA’s property will require the cooperation of adjacent property owners; WHEREAS, SCDC anticipates that the due diligence period will be complete October 31, 2020; WHEREAS, SCDC has also made a formal request for Willamalane to own and operate the indoor track and event facility; WHEREAS, on March 11, 2020, the Willamalane Park and Recreation District Board of Directors passed Resolution No. 19-20-06 pledging their support of operating the indoor track and event facility contingent on certain conditions including; a public survey, the site being located in its district boundaries, SCDC meeting its fundraising goals by August of 2025, that any changes in the project yield similar or better results for Willamalane, key partnerships are solidified, costs remain consistent, key funding sources for operation in the early stages of the project are secured and construction is substantially complete in August of 2025; WHEREAS, SEDA would like publicly affirm its support of the indoor track and event facility and SCDC’s request to site the property on its property upon certain conditions; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF SEDA, AN URBAN RENEAL AGENCY IN THE STATE OF OREGON, AS FOLLOWS: Section 1: SCDC makes best efforts to cooperate, facilitate and assist in discussion with stakeholders such as the City of Springfield and Willamalane about forming key Attachment 1, Page 1 of 2 {00016404:1} PAGE 2 OF 2 2664808.1 040107 RSIND partnerships for the development of the indoor track and event facility. Section 2: SEDA can participate in the due diligence period. Section 3: Adjacent Property Owners agree to cooperate with SCDC and SEDA on siting the indoor track and event facility on SEDA’s property. Section 4: SEDA agrees to not pursue other development opportunities on its North Glenwood property for the length of this Resolution and due diligence period. Section 5: Placeholder for inserting any of Willamalane Resolution Conditions. Section 6: Placeholder for other conditions. Section 7: This Resolution will last as long as the due diligence period. ADOPTED by the Board of Directors of SEDA, an Urban Renewal Agency of the City of Springfield this ___ day of _________, ____, by a vote of _____ for and ____ against. _______________________ Marilee Woodrow, Chair ATTEST: _______________________________ City Recorder Attachment 1, Page 2 of 2 {00016406:1} OPTION AGREEMENT Page -1- OPTION AGREEMENT AND AGREEMENT OF PURCHASE AND SALE DATE: , 2020 ("Effective Date") FROM: Springfield Economic Development Corporation (SEDA) ("Owner") TO: Springfield Community Development Corporation (SCDC) ("Optionee") RECITALS A. Owner is an urban renewal agency organized under the Oregon urban renewal statutes and the Owner’s property is located in the Glenwood Urban Renewal District. B. Optionee is a nonprofit leading the efforts to construct an indoor track and event facility in Glenwood. C. The purpose of the parties entering into this agreement is to bring enrichment, community benefit and economic development to Glenwood. D. Owner owns fee simple title to the real property described in Exhibit A attached hereto, together with all improvements situated on it. The real property and improvements, together with all other rights, hereditaments, and tenements appurtenant to the real property and improvements, are collectively referred to herein as the "Property." E. Optionee desires to acquire an option to purchase the Property on the terms and conditions herein stated for the purpose of locating their planned indoor track and event facility. Owner has agreed to grant Optionee an exclusive option to purchase the Property and the parties desire to evidence their agreement regarding the option. The parties agree to incorporate the recitals into this agreement and as follows: AGREEMENT Section 1. Grant of Option Owner, for and in consideration of the sum of $X paid to Owner by Optionee in cash, receipt of which is acknowledged by Owner, grants to Optionee the sole and exclusive option to purchase the Property in the manner and for the price stated in this Agreement. Section 2. Option Terms Attachment 2, Page 1 of 16 {00016406:1} OPTION AGREEMENT Page -2- 2.1 Term. The initial term of the Option (the "Initial Term") shall commence on the Effective Date and shall continue for a period of X months. Optionee shall have the right to extend the term of the Option for an additional period of X months. This extension period (the "Extension Term") will commence on the date the Initial Term expires. The Initial Term and the Extension Term may be referred to collectively in this Agreement as the "Term." Optionee's written notice to Owner and payment of the Option Money Payment for the extension term under Section 3 prior to the expiration of the Initial Term shall be deemed to constitute an election to extend the Option for the Extension Term. If the last day of the Initial Term or the Extension Term falls on a Saturday, a Sunday, or a holiday recognized by the federal government or the state of Oregon, all of Optionee's rights during either such time period shall extend through the next business day. 2.2 Exercise of Option. This option shall be exercised, if at all, by written notice (the "Exercise Notice") given by Optionee to Owner at any time during the Initial Term or the Extended Term, which notice shall state that Optionee has elected to exercise this option. This option may be exercised only with respect to the entirety of the Property, and nothing contained herein shall be construed as permitting Optionee to purchase less than all of the Property pursuant to this option. Upon exercise of this option, Optionee shall be obligated to purchase the Property from Owner, and Owner shall be obligated to sell the Property to Optionee, for the price and in the manner herein set forth. 2.3 Failure to Exercise Option. If Optionee fails for any reason to exercise this option in the manner set forth herein, Optionee shall have no further claim against or interest in the Property or any of the Option Money Payments, unless Optionee is entitled to a refund of the Option Money Payments under another provision of this Agreement. In the event of the failure to exercise the Option, Optionee shall provide Owner with any instruments that Owner reasonably may deem necessary for the purpose of removing from the public record any cloud on title to the Property which is attributable to the grant or existence of this Option. Section 3. Option Money In payment for Owner's grant of this Option, Optionee has paid or will pay Owner the following sums (the "Option Money Payments"): (1) Contemporaneously with the execution of this Agreement, Optionee has paid Owner the cash sum of $X mentioned in Section 1; and (2) Contemporaneously with Optionee's election to extend the option term under Section 2, Optionee will pay Owner the cash sum of $X. The Option Money Payments shall belong to Owner. Section 4. Purchase Price 4.1 Purchase Price. The purchase price for the Property (the "Purchase Price") shall be as follows: 4.1.1 The purchase price will reflect the intention of the parties and Attachment 2, Page 2 of 16 {00016406:1} OPTION AGREEMENT Page -3-  Based on Appraisal  Set pre-negotiated price  Parties agree to negotiate terms of Purchase 4.1.2 4.2 Payment of Purchase Price. The purchase price for the Property shall be payable as follows: 4.2.1 The entire balance of the purchase price less any credit for any option payment paid pursuant to Section 3 shall be paid in cash at closing. Section 5. Remedies 5.1 Optionee. In the event Owner breaches any term or provision of this Agreement, then Optionee, as its exclusive remedy and in lieu of any other relief, may either (1) terminate this Agreement and obtain the return of all Option Money Payments previously paid to Owner, or (2) tender performance of the obligations of Optionee and specifically enforce all obligations of Owner. Except as noted in Section 5.3 and any specific remedies reserved elsewhere in this Agreement, Optionee waives the right to pursue any remedy in law or equity against Owner other than the remedies specified above, including any action for damages, in the event of a default by Owner. 5.2 Owner. In the event Optionee breaches any term or provision of this Agreement, and regardless of whether the breach occurs before or after Optionee notifies Owner of the exercise of the Option, then Owner, as its exclusive remedy and in lieu of any other relief, shall be entitled to terminate this Agreement by giving Optionee written notice of termination and to retain all Option Money Payments paid by Optionee. Owner acknowledges (1) the adequacy of this exclusive remedy and (2) that this limitation of remedies is an essential part of this Agreement from the perspective of Optionee. Except as noted in Section 5.3 and any specific remedies reserved elsewhere in this Agreement, Owner expressly waives the right to pursue any other right or remedy in law or equity other than the remedy specified above, including the right of specific performance and the right to sue for damages, in the event of a default by Optionee. Optionee and Owner have established the foregoing remedy in favor of Owner because of the difficulty and inconvenience of ascertaining the actual damages Owner may suffer as a result of a breach of this Agreement by Optionee. 5.3 Other Remedies. The limitations on remedies set forth in this section shall not preclude either party from seeking or obtaining injunctive relief or from seeking recovery against the other under any contractual indemnity set forth herein or for causing physical damage or injury to persons or property. Section 6. Conditions Precedent to Closing In addition to any other conditions contained in this Agreement, set forth below are certain conditions precedent for the benefit of Optionee (the "Conditions"). The Conditions are intended solely for the benefit of Optionee and Optionee shall have the Attachment 2, Page 3 of 16 {00016406:1} OPTION AGREEMENT Page -4- right to waive, by written notice, any of the Conditions, at its sole discretion; giving the Exercise Notice shall not constitute such a waiver. In the event any Condition is not satisfied or waived on or before the deadline for satisfaction specified herein, then Optionee shall have the right to terminate this Agreement, at its sole election, by giving Owner notice of termination before the deadline expires, and to exercise any remedy available to Optionee in the event that the subject Condition was not satisfied by reason of a breach of this Agreement by Owner. If Optionee does not give Owner notice of termination before the applicable deadline, then Optionee shall be deemed to have waived the termination privilege with respect to the Condition in question. The Conditions specifically delineated in this section are the following: 6.1 Title Insurance. On the Closing Date, the Title Company (defined below) shall be ready, willing, and able to issue, and shall issue to Optionee upon recordation of the Owner's deed mentioned below, the title insurance policy required by Section 8.5. 6.2 Performance. On or before the Closing Date, Owner shall have performed all of the covenants, conditions, agreements, and promises to be performed by it under this Agreement. 6.3 Environmental Conditions. 6.3.1 Owner is currently participating in the Eugene-Springfield area Brownfield Coalition Grant Program and obtaining a Level 1 Environmental Assessment. Owner agrees to share the results of said Level 1 Environmental Assessment with Optionee and make best efforts to cooperate with the requirements of the grant program so that the Level 1 Environmental Assessment can be accomplished in a timely manner. 6.3.2 On or before the closing date, Optionee may at Optionee’s expense conduct an environmental review and audit (the "Environmental Audit") of the Property, indicating to the satisfaction of Optionee that the Property does not contain, either on its surface or in its subsurface or underlying water table, any Hazardous Substances (defined in Section 13.1.1). The Environmental Audit may include a historical review of the use of the Property, review of all regulatory agency permits and compliance and enforcement files and records, soil tests, the acquisition of core samples and water table samples by drilling conducted on the Property, and such other tests and studies as Optionee may deem appropriate. All tests and studies shall be conducted by agents selected by Optionee and performed as Optionee shall direct, subject to the approval of Owner, which shall not be unreasonably withheld, and the provisions of Section 11. Optionee shall pay the cost of all tests and studies undertaken. 6.4 On or before the closing date, Optionee may obtain at Optionee’s expense a Type A (Urban) ALTA survey of the Property (the "Survey") from a surveyor designated by Optionee, indicating to Optionee's satisfaction that (1) there are no discrepancies in the boundaries of the Property; (2) there are no material encroachments on, or Attachment 2, Page 4 of 16 {00016406:1} OPTION AGREEMENT Page -5- protrusions from, the Property; (3) the Property has acceptable access to a dedicated public right-of-way; (4) the Property does not lie within any area designated as wetlands by any governmental agency or any area determined by the United States Department of Housing and Urban Development to be flood-prone or subject to a flood hazard. Optionee shall advance the charges due for preparing the Survey. Section X. Owner Conditions Are there conditions SEDA would like to insert that would allow them to terminate the Option? Section 7. Title. Within 15 days following the Effective Date, Optionee may at Optionee's expense, obtain a preliminary title report (the "Title Report") covering the Property. The Title Report shall be issued by the Title Company (defined in Section 8.1). The Title Report shall be accompanied by legible copies of all plats and exceptions to title referenced in the Title Report (the "Exceptions"). Within 45 days of receiving the Title Report and the Exceptions documents, Optionee shall give written notice (the "Initial Notice") to Owner of the Exceptions that Optionee shall require Owner to remove of record at or before Closing (the "Unacceptable Exceptions"). If Optionee fails to give Owner the Initial Notice, then Optionee shall be deemed to have approved the Title Report. Owner shall have 10 days following receipt of the Initial Notice to give written notice to Optionee (the "Reply Notice") of those Unacceptable Exceptions that Owner concludes, in good faith, that Owner cannot or will not remove at or before Closing. Owner shall not have any obligation to institute litigation or spend any sum of money to cure or remove any Exceptions; provided, however, that Owner shall be obligated to remove, at or before Closing, any Exception created or suffered to be created by Owner that is security for payment of a sum of money (including mortgages, deeds of trust, tax liens, contractor's liens, and judgment liens) and any Exception created, or suffered to be created, by Owner after the Effective Date. Owner agrees to remove all Unacceptable Exceptions not referenced in a duly given Reply Notice. If one or more of the Unacceptable Exceptions cannot be removed at or before Closing and Owner so states in a duly given Reply Notice, then Optionee may exercise any of the following rights by giving written notice to Owner within 15 days of receiving the Reply Notice: (1) Optionee may terminate this Agreement, and neither party shall have any further liability; (2) Optionee may accept title to the Property subject to any such Unacceptable Exceptions; or (3) Optionee may attempt to cure the Unacceptable Exceptions or any of them without cost or liability to Owner (but Owner shall be obligated to cooperate with such cure efforts and to join in the execution of any curative instruments that will operate to remove such Unacceptable Exceptions). The foregoing rights of Optionee shall not be deemed waived by giving the Exercise Notice. Exceptions that are shown on the Title Report and to which Optionee does not object or to which Optionee agrees, in writing, to waive objection, are referred herein to as the "Permitted Exceptions." Attachment 2, Page 5 of 16 {00016406:1} OPTION AGREEMENT Page -6- Owner shall not cause, permit, or suffer any matter to be recorded with respect to the Property during the Term, except (1) the Memorandum referenced in Section 14, and (2) any other matter that Optionee approves, in writing and at its sole discretion, before recordation. Section 8. Closing 8.1 Time and Place. Closing of the sale and purchase of the Property (the "Closing") shall occur on a date (the "Closing Date") selected by Optionee, but in all events the Closing shall occur within 90 days after the date that the Exercise Notice is given. The escrow for the Closing shall be established at the office of Evergreen Land Title Company, of Springfield, Oregon. 8.2 Closing Obligations. On the Closing Date, Owner and Optionee shall deposit the following documents and funds in escrow, and the Title Company shall close escrow in accordance with the instructions of Owner and Optionee. 8.2.1 Owner shall deposit the following: (1) The conveyance documents described in Section 9, duly executed and acknowledged; (2) A duly executed affidavit certifying that Owner is not a foreign person, trust, partnership, or corporation in compliance with the requirements of IRC §1445; (3) Original counterparts or legible photocopies of all documents, feasibility studies, surveys, engineering reports, building plans for any structure or improvement on property, and other items of a similar nature in the possession of Owner that relate to the Property; (4) Such documents as Optionee or the Title Company may require to evidence the authority of Owner to consummate this transaction; and (5) Such other documents and funds, including (without limitation) escrow instructions, as are required of Owner to close the sale in accordance with this Agreement. 8.2.2 Optionee shall deposit the following: (1) The cash payment specified in Section 4, minus any credits available to Optionee under the terms of this Agreement; (2) Such documents as Owner or the Title Company may require to evidence the authority of Optionee to consummate the transaction contemplated; and (3) Such other documents and funds, including (without limitation) escrow instructions, as are required of Optionee to close the sale and purchase of the Property in accordance with this Agreement. 8.3 Costs. Optionee shall pay escrow fee of the Title Company with respect to the Closing. Optionee shall pay the premium for the title insurance policy, and for all conveyance or excise taxes payable by reason of the purchase and sale of the Property. Optionee shall pay the fee (exclusive of any conveyance or excise tax) for recording the conveyance documents referred to herein. Attachment 2, Page 6 of 16 {00016406:1} OPTION AGREEMENT Page -7- 8.4 Prorations. All items of expense incurred by Owner with respect to the Property shall be paid by Owner at Closing, without proration. All real property taxes and assessments payable with respect to the tax year in which Closing occurs shall be prorated between Owner and Optionee as of the Closing Date. 8.5 Title Insurance Policies. As soon as practicable after Closing, and in any event no later than 7 days after the Closing Date, Owner shall cause the Title Company to issue its standard form Owners's ALTA Title Insurance Policy, with extended coverage, in the amount of the Purchase Price, insuring fee simple title to the Property vested in Optionee, subject only to the Permitted Exceptions. Section 9. Conveyance Except as specified in Section 28, at the Closing, Owner shall execute, acknowledge, and deliver to Optionee a Statutory Warranty Deed conveying the Property to Optionee, subject only to the Permitted Exceptions, and disclosing that the existing roadway access to the property may be less than required for legal access. Section 10. Possession Optionee shall be entitled to exclusive possession of the Property on and after the Closing Date. Section 11. Access to Property After date of Optionee’s exercise notice Owner grants to Optionee and its agents the right to enter on the Property at any reasonable times before the Closing Date for the purpose of conducting tests or studies that Optionee may deem necessary or appropriate in connection with its acquisition of the Property. Optionee shall bear the cost of all test and studies undertaken. Owner shall cooperate with Optionee in making such tests and studies. Section 12. Covenants of Owner Owner acknowledges that the covenants of Owner contained in this Agreement, including the covenants contained in this Section 12 (the "Covenants"), are material inducements to Optionee to enter into this Agreement. The Covenants specifically delineated in this Section are the following: 12.1 Information. Owner agrees to deliver to Optionee, within 20 days after the Effective Date, photocopies of all documents related to the use or ownership of the Property that Owner possesses, including (without limitation) all studies, reports, aerial photographs, leases and rental agreements, and other documents of a like nature. 12.2 Maintenance. Before the Closing Date, Owner shall maintain the Property in the same condition as it now exists, ordinary wear and tear excepted, and shall not cause or permit any waste. Attachment 2, Page 7 of 16 {00016406:1} OPTION AGREEMENT Page -8- 12.3 Ownership. During the Term, Owner shall not sell, contract to sell, assign, lease, or otherwise transfer the Property or any part of it, nor grant an option to any third party to acquire all or any portion of it. Section 13. Warranties and Representations of Owner 13.1 Warranties. Owner acknowledges that the warranties and representa- tions of Owner contained in this Agreement, including the warranties and representations contained in this Section 13 (the "Warranties"), are material inducements to Optionee to enter into this Option Agreement. All Warranties, and Optionee's right to assert a breach of them, shall survive execution of this Agreement, the Closing, and the execution and delivery of the Closing documents. If, before Closing, Optionee discovers or is advised that any of the Warranties was untrue when made, then Optionee shall have the option to either (1) terminate this Agreement and obtain the return of all Option Money Payments paid, without waiving any cause of action that Optionee may be entitled to assert against Owner by reason of the breach of the Warranty, or (2) continue this Agreement, without waiving any cause of action that Optionee may be entitled to assert against Owner by reason of the breach of the Warranty. If, after Closing, Optionee discovers or is advised that any of the Warranties was untrue when made, then Optionee may pursue any remedy available to Optionee at law or in equity by reason of the breach of such Warranty. Owner warrants and represents to Optionee that the following matters are true and correct: 13.1.1 Hazardous Substances. For purposes of this subsection, the phrase "Hazardous Substances" has the same meaning as is designated in ORS 465.200(15). Owner warrants, represents, and covenants as follows: (1) To the knowledge of Owner, there are no Hazardous Substances in, upon, or buried on or beneath the Property and no Hazardous Substances have been emitted or released from the Property in violation of any environmental laws of the federal or state government; (2) Owner has not brought onto, stored on, buried, used on, emitted or released from, or allowed to be brought onto, stored on, buried, used on, or emitted or released from, the Property any Hazardous Substances in violation of any environmental laws of the federal or state government; and (3) To the knowledge of Owner, no underground storage tanks are located on the Property, including (without limitation) any storage tanks that contain, or previously contained, any Hazardous Substances, and Owner agrees not to cause or permit any such tanks to be installed in the Property before Closing. 13.1.2 Status of Owner. Owner warrants that Owner is not a foreign person, foreign partnership, foreign corporation, or foreign trust, as those terms are defined in IRC §1445. 13.1.3 Breach of Agreements. Neither the execution of this Agreement, nor the execution, delivery, or recordation of any document or agreement referenced herein, nor the exercise of the Option and closing of the transaction Attachment 2, Page 8 of 16 {00016406:1} OPTION AGREEMENT Page -9- contemplated herein, constitutes or will constitute a default under any other agreement or contract that relates to the Property or to which Owner is a party. 13.1.4 Authority. No consents, documents, or approvals that have not been obtained are necessary to the effectiveness of the grant of the Option by Owner. 13.1.5 Contracts and Leases. Except as hereinafter specified, Owner warrants and represents to Optionee that there are no lease agreements, maintenance contracts, service agreements, or other contracts of any nature that pertain to, cover, or affect the Property or any part of it. The property is subject to a month to month tenancy at will. As used herein, the phrase "to the knowledge of Owner" or any variation of that phrase shall refer to matters within the actual knowledge of Owner and shall not include constructive or imputed notice or knowledge; and the use of that phrase shall not imply that Owner has undertaken any special inquiry or investigation with respect to the representation modified by such phrase, unless circumstances within the actual knowledge of Owner would warrant a reasonable person to undertake further inquiry when presented with similar circumstances. 13.2 Changed Conditions. If Owner discovers that one or more of the Warranties or one of the conditions referred to in the Warranties has changed after this Agreement is executed, Owner shall immediately inform Optionee, in writing, of such discovery. If the changed condition or Warranty cannot be cured within 10 days of the date Owner discovers the change, then Optionee may terminate this Agreement (and its exercise of the Option, if any) by giving written notice of termination to Owner within 15 days after receiving the notice from Owner, and all Option Money Payments previously paid by Optionee shall be returned to Optionee. If the changed condition or Warranty can be corrected within 10 days after discovery by Owner, Optionee shall not have the right to terminate this Option Agreement pursuant to this section and Owner shall correct the changed condition or Warranty within 10 days of the discovery. If Optionee does not terminate this Agreement and the changed condition or Warranty can be corrected and is not corrected by the Closing Date, then Optionee shall have the right to withhold 150% of the estimated costs of correcting the changed condition or Warranty until such time as the changed condition is corrected, and Owner shall correct such changed condition, at Owner's sole expense and in an expeditious manner, failing which Optionee may use the withheld sums to make the correction. A change caused by Owner is deemed to be a breach of this Agreement by Owner if the change materially and adversely affects the Property or Optionee's rights. Section 14. Recording On the Effective Date, Owner shall execute, acknowledge, and deliver to Optionee a Memorandum in the form attached as Exhibit B. In the event Optionee fails to exercise the Option before the Term expires, Optionee shall execute, acknowledge, and deliver to Owner a statutory quitclaim deed releasing any interest in the Property. Attachment 2, Page 9 of 16 {00016406:1} OPTION AGREEMENT Page -10- Section 15. Waiver Failure by Owner or Optionee to enforce any right under this Agreement shall not be deemed to be a waiver of that right or of any other right. Section 16. Successors and Assigns Subject to the limitations on Owner's right to convey the Property set forth elsewhere herein, the terms, covenants, and conditions herein contained shall be binding on and inure to the benefit of the heirs, successors, and assigns of Owner and Optionee. Optionee may assign its interest in this Option Agreement and the Property to any person or entity, without the consent of Owner. In the event that an assignee assumes the obligations of Optionee hereunder, then Optionee shall have no further liability with respect to this Agreement. Section 17. Notices All notices required or permitted to be given shall be in writing and shall be deemed given and received upon personal service or deposit in the United States Mail, certified or registered mail, postage prepaid, return receipt requested, addressed as follows: To Owner: ______________________ ______________________ To Optionee: The foregoing addresses may be changed by written notice, given in the same manner. Notice given in any manner other than the manner set forth above shall be effective when received by the party for whom it is intended. Section 18. Attorney Fees If litigation is instituted with respect to this Agreement, the prevailing party shall be entitled to recover from the losing party, in addition to all other sums and allowable costs, its reasonable attorney fees, both in preparation for and at trial and any appeal or review, such amount to be set by the court before which the matter is heard. Section 19. Real Estate Commission Each party agrees to pay any commission or finder's fees that may be due on account of this transaction to any broker or finder employed by it and to indemnify the other party against any claims for commissions or fees asserted by any broker claiming by, through, or under the indemnifying party. Section 20. Risk of Loss Owner shall bear the risk of all loss or damage to the Property from all causes, through the Closing Date. If, before the Closing Date, and regardless of whether the Exercise Notice has yet been given or is subsequently given, all or part of the Property is Attachment 2, Page 10 of 16 {00016406:1} OPTION AGREEMENT Page -11- damaged by fire or by any other cause of any nature or if all or any portion of the Property is taken by condemnation, or if any such condemnation is threatened, Owner shall give Optionee written notice of such event. Optionee may terminate this Agreement by giving written notice to Owner within 15 days following receipt by Optionee of written notice from Owner of such casualty or condemnation and Owner will return to Optionee the Option Money Payments previously paid. If Optionee does not elect to terminate this Agreement, then this Agreement shall continue in force and, if Optionee exercises the Option and the Property is conveyed to Optionee, then all interest of Owner in and to any insurance proceeds or condemnation awards that may be payable to Owner on account of such casualty or condemnation shall be assigned to Optionee at Closing. Section 21. Integration, Modification, or Amendments This Agreement contains the entire agreement of the parties with respect to the Property and supersedes all prior written and oral negotiations and agreements with respect to the Property. Any modifications, changes, additions, or deletions to this Agreement must be approved by Owner and Optionee, in writing. Section 22. Representation Owner and Optionee have each been represented by separate legal counsel of choice or have been afforded the opportunity to represent by separate legal counsel of choice with respect to this transaction. Except as otherwise provided in Section 18, each party shall be responsible for all attorney fees incurred by it with respect to this Agreement. Section 23. Counterparts; Pronouns This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same Agreement and shall be effective when one or more counterparts have been signed and delivered by Owner and Optionee. With respect to any pronouns used, each gender used shall include the other gender and the singular and the plural, as the context may require. Section 24. Governing Law; Interpretation This Agreement shall be governed by the laws of Oregon. In the event a court of competent jurisdiction holds any portion of this Agreement to be void or unenforceable as written, Owner and Optionee intend that (1) that portion of this Agreement be enforced to the extent permitted by law, and (2) the balance of this Agreement remain in full force and effect. Section 25. Time Is of the Essence Time is of the essence of this Agreement. Section 26. Authority to Execute Each person executing this Agreement on behalf of Owner and Optionee, respectively, warrants his or her authority to do so. Attachment 2, Page 11 of 16 {00016406:1} OPTION AGREEMENT Page -12- Section 28. Statutory Disclaimer THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. Executed on the day and year first above written. OWNER: OPTIONEE: ______________________________ ______________________________ By: By: ___________________________ Title: _________________________ Title: _________________________ STATE OF OREGON ) ) County of Lane ) Personally appeared before me this ______ day of _______________, 2020, the above named, and acknowledged the foregoing instrument to be his/her voluntary act and deed. ___________________________________ Notary Public for Oregon My Commission Expires: _______________ STATE OF OREGON ) ) Attachment 2, Page 12 of 16 {00016406:1} OPTION AGREEMENT Page -13- County of Lane ) Personally appeared before me this ______ day of _______________, 2020, the above named Pamela Renfro, and acknowledged the foregoing instrument to be his/her voluntary act and deed. ___________________________________ Notary Public for Oregon My Commission Expires: _______________ Attachments: Exhibit A--Legal Description Exhibit B--Form of Memorandum Attachment 2, Page 13 of 16 {00016406:1} EXHIBIT A LEGAL DESCRIPTION Attachment 2, Page 14 of 16 {00016406:1} AFTER RECORDING RETURN TO: City of Springfield City Attorney’s Office 225 Fifth Street, Ste 510 Springfield, OR 97477 UNTIL REQUESTED OTHERWISE, SEND ALL TAX STATEMENTS TO: No Change. MEMORANDUM OF OPTION BE IT REMEMBERED, that on the day of __________________, 2020, hereinafter known as Owner(s), and, hereinafter known as Optionee, made and entered into a certain Option Agreement wherein and whereby the Optionee for consideration paid t Owner obtained an option to purchase the following described real property in Lane County, Oregon described as Map Identification and Tax Lot No. as follows: SEE EXHIBIT A The terms and conditions of said Option Agreement are fully set forth in said Agreement and reference thereto is hereby made. The CONSIDERATION for the Option Agreement was $and other valuable consideration. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON=S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. SELLER: BUYER: __________________________________ __________________________________ By: _______________________________ By: _______________________________ Its: _______________________________ Its: _______________________________ STATE OF OREGON ) ) ss. County of Lane ) Personally appeared this day of __________________, 2020, the above named ______________ as _________________ of ______________________________, and acknowledged the foregoing instrument to be his/her voluntary act and deed. Notary Public for Oregon My commission expires:_______________ STATE OF OREGON ) ) ss. County of Lane ) Attachment 2, Page 15 of 16 {00016406:1} Personally appeared this day of __________________, 2020, the above named _____________________________ as _________________ of ______________________________, and acknowledged the foregoing instrument to be his/her voluntary act and deed. Notary Public for Oregon My commission expires: Attachment 2, Page 16 of 16 RESOLUTIONNO.t22OD7ARESOLUTIONPLEDGING WILLAMALANE’SSUPPORTOFANINDOORTRACKANDEVENTSFACILITYCONTINGENTONCERTAINCONDITIONSWHEREAS,atitsFebruarymeeting, theWillamalaneParkandRecreationDistrict(“Willamalane”)BoardofDirectors(the“Board”)receivedaformalrequestfromtheSpringfieldCommunity DevelopmentCorporation,anonprofit corporation(“SCDC”),attachedheretoasExhibit1;WHEREAS,theSCDCrequestedtheBoardexpressacommitmenttobecomingtheownerandoperatorofanindoor trackandeventfacility(the“Facility”)sitedintheGlenwoodarea;WHEREAS,theSCDCisleadingthechargeregardingdevelopmentoftheFacility;WHEREAS,theconditionssetforthinthisresolutionarebasedontheProFormapresentedbySportsFacilitiesAdvisory(“SFA”)onFebruary8,2020;WHEREAS,initsrequest,the SCDCrecognizedthat“thereisrisk inherentincommittingtoownershipbeforeallconstructionfundingis inplace”and,givensuchrisk,asked thatWillamalane “expressacommitmenttoownershippendingconstructionfundingthresholdswithinagiven timeframe,orthat[WillamalaneJcommittoassisting[the]SCDCwith fundraisingandassumeownershipuponcompletionoftheproject.”NOW,THEREORE,BEITRESOLVEDthattheWillamalaneParkandRecreationDistrict BoardofDirectorsherebyresolvesasfollows:Atthistime,theBoarddeclinestomakeacommitmenttowards ownershipoftheindoortrackandeventfacility.TheBoard makesacommitmenttooperatetheFacility,contingent uponthefollowingconditionsbeingresolvedtotheBoard’ssatisfaction:1.TheSpringfield communityissurveyedby animpartial thirdpartyregardingtheFacility,proposedtobesitedin theGlenwoodarea.Thecommunity expressesitssupportfortheprojectandWillamalane’s involvementasoperatorofsuchFacilityasmeasuredusingpre-determinedmetricsbythethirdparty,Willamalane,andSCDC. TheBoardrequests thatSCDCortheCityfacilitatesuchasurvey,incoordinationwith WillamalanestaffAttachment 3, Page 1 of 2 2.Theresultsofthesurveyreferencedabovemeetthesuccess metricsasidentifiedbythethirdparty,Willamalane,andSCDCandtheseresultsarepresentedtotheBoardonorbeforeDecember31,2020.3.AsiteisselectedfortheFacility thatfallswithinWillamalane’scurrentdistrictboundaries.4.TheSCDCmeetsallfundraisinggoalsforthedevelopmentandconstructionoftheFacilitywithoutdirectfinancialsupportfromWillamalaneonorbeforeAugust1st,2025.5.Should plansfortheFacilitysignificantlychangefromthecurrentconfigurationthroughthedesignphasesoftheproject,SCDCwillauthorizeandfundupdatingthemost recentProForma.ThisupdatedProFormamustyieldresultsthataresimilarormorefavorablefortheoperatoroftheFacility,6.Keypartnerships,bothpublic andprivate,supportingtheFacilityhavebeensolidifiedthroughformalizedagreements.7.Afterdesignisfinalized,costestimatesforconstructionandoperationoftheFacilitycontinuetobesubstantiallythesameascurrentlypresentedbySCDC.8.SCDCagreestoassistWillamalaneidentify fundingsourcesforsubsidizingoperationoftheFacility:a.AtleastoneyearinadvanceoftheFacilityopeningandoperating;andb.Duringthefirstfive(5)yearsoftheFacility’soperation.9.Facilityconstructionison-timewithSubstantialCompletionoftheFacilitycompletedbyAugust2025.ADOPTEDthis11thdayofMarch,2020.ATTEST:ihae1Wargo,SecretaryWILLAMALANEPARKANDRECREATIONDISTRICTames,President,BoardofDirectorsAttachment 3, Page 2 of 2 — 55 t.Vl %* i!PROPERTY OWNERSHIP ?;.t'~-c1-2.GREEN VALLEY ENDEAVORS LLC 3-4.ROTH &ROTH DBA 5.ROTH PAUL M 1-2 6.ROTH &ROTH DBA 7.STEVEN &DIANA SHEFCHECK LIVING TRUST 8-9.KRAMER STEPHEN P 10.COOPER BENJAMIN FARRIS 11-12.TRACK TOWN HOLDINGS LLC 13-14.GOLDEN EMERALD LLC 15.COUNTY OWNED LANDS DEPT 16-22.RAMSEY PROPERTIES LTD PTRSHP 23-24.SKILLERN INVESTMENTS LIMITED PARTNERSHIP 25-30.CITY OF SPRINGFIELD JgmmL_1 V.mX~Sfe-ISLAND 1 af6 i F T f— £2 s £ Pi- * %o f o u.|ltrItr .* ff oaflFoa xi*•->UJ£O n o w O 91l»w Mm-f'+JkAtf&i o :7 •'10 3 8 11 13 W ^ilfc^ltK14 : -PACSA " L ££&-^15 t7 a ri y /PARK d fi p|';Tl.II f Mil fSfcfe Q. ,13 PMR £cc o o A.o o jv %!I CO LU r/1 I»1 lil CO UJid, H LU I Li•cc I->V u_TOO BLUE V&//,~>^JE3 i?v*-»»a»I r -f « iJHi O w *p.#<s If:ii-rv > or > tm fSt* x Sraif »' o J> 'VAtaA//\X %SEDA/-:°2 °«O V K "IDlio I"R? 13S 1 2 HACSA^SF* n t;o /7i\X/XMM £ o i .II!v 23 =1-I ct i»S]DEVELOPMENT o 24 hacsa x =ssAGENCY] ! !HACSA ^ 29 30 Igjs uJ9.M&I il m ||Plpi 'F 25T-'26*~ F fPf j oa I 3•3f-r O U_ CO o -><%!«i'#M i s*pt\ §*019 / i-,s/ 'onriatio0 -: :*;nisSAj-.'LJll?I _r ; rfL: 'Zl<^'I Wl - >•27 \ 28 I/-r"W/%-w-A'-.it»K '1 Klt ojfjTIK','f^B a fp"I VSBal-r --te: &ii!•-"i.i. >, % rarav/ yW-te 7-ji Jli in i"-F-t *.0$F?r A1 7T7; : Vs. ,5"'•-v . r I 11 "rr- BBTaxlots FEMA Flood Zones |C>PCI Floodway •//2\Floodplain (1%) illllFT |M*;rl>! -&L".—^i_=- SPRINGFIELDS3*0 100 200 400 Feetxwm*- ISImLLS!"j <g»There are no warranties that accompany this product.Users assume all responsibility for any toss or damage arising from OREGON any error,omission,or positional inaccuracy of this product. X*4 'Tr—. -&sm -•.1 ">"f (SgKfr.^!«O'T;-m--'P ^> iA:Y Sig.'IKj: __ Attachment 4, Page 1 of 1