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HomeMy WebLinkAboutAgreement to Sell and Purchase, City of Bozeman and Bozeman Parking Commission and City Center Commerce LLCAGREEMENT TO SELL AND PURCHASE THIS AGREEMENT, made and entered into this ~T day of November, 2007 is as follows: WITNESSETH: WHEREAS, CITY OF BOZEMAN, MONTANA and the BOZEMAN PARKING COMMISSION, hereinafter for convenience collectively referred to as "Seller", are the owners of record of the following described Real Property: Lots 13 through 24, inclusive of Block F of the Original Plat of the City ofBozernan, Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. (Plat A-1); and WHEREAS, the City of Bozeman is developing a parking garage facility and commercial Retail Units on the Real Property with the intention of creating a condominium form of unit ownership for the Real Property; and WHEREAS, CITY CENTER COMMERCE LLC, a Montana limited liability company hereinafter for convenience referred to as "Buyer", is desirous of purchasing from Seller the following Retail Units pursuant to this Agreement: Retail Units R-], R-2, R-3, R-4A, R-5, R-6 and R-7, including the right to use the common and limited common elements associated with each unit, to be located at 1 /2 block site with Parcel C, COS C-1-F (Lots 13-24, Block F Original Plat of Bozeman) in the City of Bozeman, Montana as described in RFP enlarged retail plans provided in RFP deadline date of July 13, 2007 and as preliminarily described on Exhibit A (the "Real Property"). At such time as a Preliminary Title Commitment of the Real Property is completed pursuant to Section S, the legal description set forth on the title commitment shall be attached to this Agreement as Exhibit A-1 in lieu of Exhibit A; and WHEREAS, Seller is desirous of selling to and conveying to Buyer the above described Retail Units when they are created and defined as noted above. NOW, THEREFORE, for and in cansideration of the terms, covenants and conditions and the earnest money paid by the Buyer to Seller, the parties hereto do hereby agree as follows: 1 That the total purchase price for the Retail Units, including the right to use the common and limited common elements associated with each unit, plus 28 parking spaces (as further set forth in paragraph 18 herein, shall be ONE MILLION TWO HUNDRED NINETY THOUSAND EIGHT HUNDRED FORTY-TWO DOLLARS ($1,290,842.00) /price per square foot of $132.05, (the "Purchase Price") which Purchase Price shall be paid as follows: -1- a. R-1 1,375 sgft = $ 181,577 b. R-2 1,312 sgft = $ 173,257 c. R-3 1,341 sgft = $ 177,087 d. R-4A 523 sgft = $ 69,071 e. R-5 1,559 sgft = $205,874 f R-6 1,600 sgft = $ 211,287 g. R-7 2,065 sgft = $272,691 Total 9,775 sgft Total =$1,290,842 A. $40,500.00 earnest money which was due five (5) business days after the acceptance of the Letter of Intent dated August 22, 2007 by and between Buyer and Seller (the "Letter of Intent") and which has been delivered to American Land Title on behalf of the Seller. B. The balance of the Purchase Price in the amount of $1,250,342.00 shall be paid on or before the end of the Closing Period. C. The above purchase price includes a development fee to be split 50/50 between the seller and buyer. The amount of the development fee will be calculated by multiplying the agreed purchase price by five percent (5%). This amount will be split between both parties equally. One half of the development fee will be subtracted from the purchase price at closing and made payable to Prudential Montana, with address of 2001 Stadium Drive Suite A, Bozeman, MT 59715. The remaining half of the development fee will be the responsibility of the buyer with funds outside of this Agreement. Upon Seller's portion of the development fee being paid in full at closing, Seller shall have na further obligation of payment to Prudential Montana and Buyer shall indemnify and hold Seller harmless from any and all claims, losses, damages, costs, costs of action, costs of appeal, attorney's fees or other liabilities, of any kind or nature, arising out of Buyer's obligation to pay one-half of the development fee. 2 An appraisal of the Real Property has been conducted by Seller at Seller's expense for the sale purpose of satisfying the requirements required by Bozeman Municipal Code 2.05.050 and 2.05.06.0. The Purchase Price met the requirements of the Bozeman Municipal Cade for the purchase of Bozeman city property pursuant to Bozeman Municipal Code 2.05.050 and 2.05.060. 3 "1"hc closing costs are to be divided equally between Buyer and Seller for the first closing contemplated hereunder. if Buyer elects to close Retail Units on different dates, Buyer shall be responsible for all of the closing costs for all closings subsequent to the first closing. 4 Within ten (10) business days after the execution of this Agreement, Buyer shall procure (at Seller's expense) a commitment far a standard owner's policy of title insurance from American Land Title Company of Bozeman, Montana in the amount of the Purchase Price showing that Seller's title is free and clear of liens, encumbrances, and title defects, excepting the standard American Land Title Association printed exceptions contained in the commitment. Should Buyer's _~.. examination of the title commitment disclose title irregularities which render the Real Property unmarketable in Buyer's sole discretion, then Seller shall proceed with reasonable diligence at Seller's expense to correct the Buyer's concerns if such irregularities are specified in a written notice delivered to Seller on or before fifteen (15) days after the title commitment has been made available to Buyer. If, within fifteen (l 5) days of receipt of such notice, Seller has been unable, after good faith effort, to cure or remove any such title irregularities specified in the written notice, then this Agreement maybe rescinded at the option of either party hereto, by written notice to the other party, in which event the earnest money and accrued interest thereon shall be refunded to Buyer. Seller shall cause at closing, at Seller's expense, an owner's policy of title insurance to be issued to Buyer in accordance with the terms of this paragraph and with the agreed upon Declaration of Condominium and Condominium Bylaws shown as an encumbrance. 5 The closing date for this transaction shall be on or before forty-five (45) business days following Substantial Completion (deftned below) of the Retail Units on the Real Property, unless hereinafter extended by mutual agreement of the parties and evidenced in writing; provided, however, Buyer shall be entitled to close on the Retail Units either (i) all on the same closing date, as determined by Buyer, or (ii) close on the individual Retail Units on different closing dates, as determined by Buyer, throughout the forty-five (45) business days following Substantial Completion of the Retail Units on the Real Property (the "Closing Period"). In the event Buyer elects to close an more than one closing date, Seller shall only be responsible for payment ofone-half of the closing fees incurred as part of the first closing. Buyer shall be responsible for the full amount of all subsequent closing fees following the first closing. Also, in the event Buyer elects to close on mare than one closing date, Buyers shall be deemed to have waived all contingencies contained in this Agreement upon the completion of the first closing and shall have an affirmative obligation to close on all of the remaining units within the time period set forth in this Agreement. Also in the event Buyer elects to close on more than one closing date, Buyer shall. procure and pay all necessary premiums to put in place a policy of liability and hazard insurance in policy amounts to cover the appropriate insurable interests and as required under the Condominium documents. Said insurance policy shall cover all interests of the parties' as they exist after each successive closing and shall name Seller as an additional named insured on units closed on by Buyer. "Substantial Completion" of the Retail Units on the Real Property will be deemed to have occurred when the Retail Units are completed pursuant to Exhibit "B" and Exhibit "C" of this buy sell agreement as certified in writing by the project Construction Manager/Architect. Substantial Completion shall occur no later than the 15t~' day of October, 2008, subject to any change orders as set forth in #19 herein. A. On or before the closing date for each closing of the individual Retail Units, Seller shall execute and/or deliver (ar cause to be delivered, in the case of the documents and instruments to be executed by another party or other parties), the following: 1. An original Warranty Deed which shall (i) be in recordable form, (ii) convey good, marketable and insurable fee simple title to the Retail Units (or the separate Retail Units, if applicable) to Buyer, subject only to matters of public record disclosed in the Preliminary Title Commitment, and (iii) be properly -3- executed and acknowledged by Seller; the Deed shall be in form and substance satisfactory to Buyer and the title company; 2. Original executed closing statements; 3. Original executed Affidavit, complying with the requirements of Section 1445 of the Internal Revenue Code, affirming that Seller is not a "foreign person" as deftned therein; and 4. Original executed Certificate confirming the truth and accuracy as of the Closing Date of the Seller's representations and warranties set forth in this Agreement. B. On or before the closing date or each closing date for the individual Retail Units, Buyer shall execute and/or delivered to Seller the following: The balance of the Purchase Price (as applicable for each retail unit) along with necessary Buyer's closing costs; 2. Original executed counterpart closing statement; 3. Original executed Certificate confirming the truth and accuracy as of the Closing Date of the Buyer's representations and warranties set forth in this Agreement; and 4. Proof of a current, in force, policy of liability and hazard insurance on the retail unit or units being closed with policy amounts to cover the appropriate insurable interests of the parties and as required by the Condominium documents . Said insurance policy shall cover all interests of the parties' as they exist after each successive closing and shall name Seller as an additional named insured on units closed on by Buyer. 6 Taxes and assessments shall be prorated between Buyer and Seller as of the date of closing or the date of closing for each retail unit, if applicable. 7 Buyer and Seller agree that the risk of lass of the Real Property and each unit thereof shall remain on Seller unti15:00 p.m. on the date of each closing for each unit. 8. After Seller's acceptance of the offer contained herein and Seller's execution of this Agreement and upon deposit of earnest money with American Land Title Co., Buyer shall be allowed to enter upon the Retail Units which is the subject afthis Agreement to conduct reasonable tests and studies. Buyer shall take all steps necessary so that the testing and studies do not interfere with the construction activity on the Real Property, to not cause any delays or increases of construction costs and are coordinated in advance with both the Seller and the project Construction Manager. Buyer shall not allow any lien or encumbrance to be placed upon the property and in the -4- event Buyer should not elect to purchase the subject property, Buyer shall restore the property to its original condition and deliver unto the Seller all of the studies and reports prepared, conducted or commissioned by or on behalf of the Buyer. Buyer shall indemnify and hold Seller harmless from any and all claims, losses, damages, costs, costs of action, costs of appeal, attorney's fees or other liabilities, of any kind or nature, arising out of Buyer's inspection and testing of the Real Property. The Release Date for the inspection contingency on the Real Property shall be April 1, 2008. 9 Buyer shall be entitled to complete possession of the retail unit ar units on the date of closing of each retail unit ar units. 10 During the thirty (30) business days following Substantial Completion of the Retail Units located on the Real Property, Buyer will be entitled to enter the Retail Units, to complete due diligence on the Retail Units (the "Due Diligence Period"). Buyer may enter upon the Retail Units during the Due Diligence Period io conduct such testing and studies and investigations as Buyer deems reasonably prudent and appropriate. In the event Buyer fails, refuses ar neglects to close and consummate this transaction within the time frame set forth above, Buyer agrees to restore the property to its original condition and deliver unto the Seller all of the studies and reports prepared, conducted or commissioned by or on behalf of the Buyer. Buyer shall take all steps necessary so that the testing and studies do not interfere with the construction activity on the Real Property, to not cause any delays or increases of construction costs and are coordinated in advance with both the Seller and the project Construction Manager Buyer further agrees not to allow any lien, unpaid bill, other charge or assessment to be levied or registered against the Real Property as a result of any studies, investigations or assessments conducted or requested by the Buyer, Buyer shall indemnify and hold Seller harmless from any and all claims, losses, damages, costs, casts of action, costs of appeal, attorney's fees or other liabilities, of any kind or nature, arising out of Buyer's inspection and testing of the Retail Units. The Release Date for the inspection contingency on the Retail Units shall be thirty (30) business days from the date of Substantial Completion. 11 Conveyance of the Retail Units, including the right to use the common and limited common elements adjacent to each unit, described above shall be by warranty deed and shall include all air rights and interests owned by Seller, if any. Buyer agrees that if in the future the Buyer or Buyer's successors in interest elect to add additional levels or stories to the Retail Units to be located on the Real Property, Buyer or Buyer's successors in interest shall be required to pay all costs necessary to upgrade the parking garage attached to the Retail Units so that the parking garage is in compliance with all building codes, including, without limitation, any costs necessary to upgrade structural, sprinkler or ventilation systems. Nothing contained in this paragraph is intended to be nor shall it be construed to be any kind of approval, consent or authorization to add additional levels or stories or otherwise expand the Retail Units. In the event Buyer or Buyer's successors in interest desire to add additional levels or stories, they shall be required to comply with all land use laws and regulations and obtain all necessary governmental reviews and approvals prior to proceeding. Seller and Buyer hereby agree that notice ofthe requirements contained in this paragraph regarding future expansion shall be placed in the public record in the Condominium Declaration in a section of the Declaration that shall not be subject to amendment. -5- 12 Either party may involve this transaction in a 1031 tax deferred exchange without cost or liability to the other party who agrees to cooperate in such exchange by executing such assignments and other documents reasonably required to complete such exchange. 13 That Section 1445 of the lnternal Revenue Code provides that a Buyer of an interest in real property in the United States must withhold tax if the Seller is a foreign person. In this connection Seller represents, acknowledges and certifies Seller is not a nonresident alien far the purposes of U.S. income taxation. 14 Within seven (7) business days after the execution of this Agreement, Buyer shall provide Seller with an executed financing commitment letter in substantially the same form as attached hereto as Exhibit D. 1 S This transaction is subject to and contingent upon the review and unqualified approval by Buyer and Buyer's attorney of each and every one and all of the following conditions, failing which this transaction shall be at an end, terzx~inate and of no further force and effect, and all earnest money, together with accrued interest, shall be immediately returned to Buyer. The contingencies set forth below shall be deemed satisfied and removed at the specified Release Date or otherwise on the last day of the Due Diligence Period, unless Buyer objects to any one or more of the contingencies in writing and delivers the same to Seller on ar before the appropriate date: (a) Buyer is able to secure financing, acceptable to the Buyer, by the end of the Due Diligence Period; (b) Buyer's accountant advises Buyer to proceed with this transaction because there are no accounting or tax issues adversely affecting this transaction or the Retail Units. Release date Apri11, 2008; (c) Buyer's environmental consultants advise Buyer to proceed with this transaction because there are no environmental issues adversely affecting the Retail Units. Release date April 1, 2008; (d) Buyer's review and approval of an updated title commitment on the Retail Units; (e) Buyer's inspection and Due Diligence of the Retail Units. Release date 30 days after Substantial Completion; (f) Appraisal of the Retail Units for at least the Purchase Price. Release date August 1 S, 2008; (g) Buyer's review and approval of covenants,. Release date April 1, 2008; (h) Buyer's attorney advises Buyer to proceed with this transaction because there are not legal issues adversely affecting this transaction, the Retail Units or Retail Unit R-4A, if applicable; and -6- (i) Buyer's review and approval that the Retail Units are built substantially as set forth in Exhibits B and C except mutually agreed changes or those changes deemed necessary by Seller pursuant to Paragraph 19 below. Buyer shall, in writing, by certified mail, return receipt requested, postmarked no later than the last day of the appropriate contingency period send to Seller at Seller's address for notice, buyer's approval or disapproval or waiver of the contingencies above listed. If Buyer disapproves or does not waive any of the contingencies above listed, Buyer shall send notice to Seller of Buyer's disapproval of the contingencies herein, and the reasons why, within the time frame set forth for the same. Seller shall have fifteen (15) calendar days from the date of notice in which to cure or correct the same. If, the Buyer does not, in writing, sent by certified mail, return receipt requested, postmarked no later than the five (5) days after the expiration of the opportunity to cure, send to Seller at Seller's address for natice, that the contingency is approved, satisfied or waived, then either Seller or Buyer may terminate this Agreement. This transaction shall be at an end, terminate and of no further force and effect, and all earnest money, together with. accrued interest, shall be immediately returned to Buyer. 16 This Agreement shall be contingent upon Buyer's anal Seller's review and approval of the Condo Association Agreements, to be drafted and approved within sixty (60) business days of the acceptance and full execution by all parties of this Agreement to Sell and Purchase. If Buyer or Seller da not waive or release this contingency within sixty (60) business days of the this buy sell agreement in writing sent by certified mail, return receipt requested, to the address for natice of the other party, then this transaction shall be at an end, terminated and of no further force or effect, and all earnest money, together with accrued interest, shall be immediately returned to Buyer. The Condo Declaration and Bylaws shall include, without limitation, approval of maintenance responsibilities, use of plaza area, insurance matters, allowable and expected uses for retail, restaurant, and office space, and the limitations and responsibilities for the parking garage, transit stops and common areas and limited common areas. 17 This Agreement shall be contingent upon the City of Bozeman's Parking Commission's determination of and delivery of a Parking Commission letter approving cash in lieu for thirty (30) additional parking spaces for the Retail Units for future use. The cash in lieu fee shall be the current fee at the time the additional space or spaces are put into use. Buyer understands that if future uses require more than thirty (30) additional parking spaces, Buyer or Buyer's successors in interest shall be required to make new application for any needed additional parking spaces over and above the additional thirty (30) spaces provided for in this paragraph. If Seller fails to satisfy the above contingency, Buyer may terminate this Agreement. This transaction shall be at an end, terminate and of no further force and all earnest money, together with accrued interest, shall be immediately returned to Buyer. Release date for this contingency shall be April 1, 2008. 18 Buyer and Seller agree that twenty-eight (28) parking spaces shall be allocated for, but not specifically assigned to, the Retail Units. The cash for such parking spaces is included in and is part of the Purchase Price for the Retail Units at a rate of FIVE THOUSAND DOLLARS ($5,000.00) per parking space. The parking spaces associated with the Retail Units shall be held by -7- the retail condominium association for the Retail Units and shall not be sold or otherwise transferred by the retail condominium association. 19 Buyer and Seller agree that (i) any change orders to AIA document A121CMC - 2003 and AGC Document 565 dated June 19, 2007 by and between the City of Bozeman and Martel Construction, Inc.(hxhibit C) or to Exhibit B that directly effect the appeazance, quality, or squaze foot size of one or more of the Retail Units, common. areas and/or limited common azeas, or that causes a material adverse affect to the same, said change order shall not be permitted unless deemed necessary by Seller for the reason that unforeseen circumstances exist and a change order is reasonable under the circumstances. The intent of the seller is to construct the Retail Units insubstantial accordance with construction documents as listed on Exhibit B and C or as modified by change order in accordance with this Paragraph; (ii) Seller and Buyer may, by their mutual written agreement, enter into change orders with the General Contractor that modifies the Retail Units. The parties hereby acknowledge that the Seller will not consider any proposed changes which would extend the time for completion of the project. Any mutually agreed upon changes to the Retail Units that increase the cost of the construction project shall be the financial obligation of Buyer. Buyer shall pay Seller the amount of the increased costs, to the extent they are known, at the time the change order is executed by Seller. Once the additional costs are paid, the change order shall be submitted to the General Contractor. In the event the agreed to change or changes cost more than is initially estimated, Buyer shall immediately pay to Seller any additional amounts, within five (5) business days ofwhen Buyer is notified in writing of the additional amounts. (iii) Any change orders to AIA document A121 CMC - 2003 and AGC Document 565 dated June 19, 2007 by and between the City of Bozeman and Martel Construction, lnc.(Exhibii C) or to Exhibit B that directly effect the appeazance, quality of anything other than the Retail Units and its common and limited common elements are not subject to approval by Buyer. 20. All notices required by this Agreement shall be sent to the individuals listed in this paragraph at the address specified. Either party may change the individual listed or address for notice by sending written native of such change to the other party: To Seller: City of Bozeman Attention James Goehrung P.O. Box 1230 Bozeman, MT 59771 With copy sent to: Thomas Anacker -8- 945 Technology Blvd., Ste. 102 Bozeman, MT 59718 To Buyer: City Censer Commerce, LLC Attn: Brian Caldwell 600 N. Wallace, Loft #3 Bozeman, MT 59715 With copy sent to: Sabol Law Office Attn: Hally N. March 2251J. Mendenhall Bozeman, MT 59715 21 7"his offer may be accepted at any time prior to 5:00 p.nr-. Mountain Time on the 21st day of December, 2007, by communicating such acceptance by delivery of a signed copy of this Agreement, or by facsimile. 22 The parties agree that facsimile signatures of this Agreement shall be deemed binding. 23 Seller has made no investigation as the presence of Radon, a naturally occurring gas, Buyer is advised to make an independent investigation of Radon and its presence in, on, or about the subject property. 24 Mold & Mildew Disclosure Statement: Buyers of property in the State of Montana should be aware that some homes and outbuildings may contain mold or mildew. There are currently no Federal Guidelines to address the health problems associated with mold or mildew. Therefore, if mold or mildew is a concern, it is highly recommended that the Buyers have the home(s) and/or outbuilding(s) tested, prior to taking possession of the property. 25 Except as otherwise expressly provided in this Agreement, Buyer does not and shall not assume any liability far any claims arising out of the occurrence of any event or the existence of any condition, of which Seller has actual knowledge, prior to the end of the Closing Period with respect to the Retail Units and Seller shall be responsible for any and all such claims, liabilities, liens, obligatians, costs and expenses directly ar indirectly arising out of or in connection with (i) any such claims resulting from property damage or injuries to persons, including death, caused by any occurrence at the Retail Units or in connection with the Real Property's use, construction, maintenance, operation or improvement prior to the end of the Closing Period; and (ii) any such claims resulting from any work, labor or materials furnished to the retail units by any party other than the Buyer prior to the Closing Date, whether or not a lien is filed against the Retail Units as a result of the furnishing of such work, labor or materials. _g_ Buyer shall be liable for any and all claims, losses, costs and other charges or expenses arising out of the ownership, possession, operation, use, completion of construction, remodeling, maintenance and occupancy of the Retail Units arising after 5:00 p.m. on the date of closing for each retail unit. Prior to 5:00 p.m. on the date of closing on each retail unit, such risk on the retail unit shall remain on the Seller. 26 Buyer hereby acknowledges that it has examined the real property which is the subject of this Agreement, that Buyer enters into this Agreement in full reliance upon its independent investigation and judgment, that prior verbal representations by the Seller or Seller's agents or representatives do not modify or affect this Agreement and that by signing this Agreement Buyer acknowledges that it has read and understands the entire Agreement. 27 This Agreement, together with the attached Exhibits, and any addenda or amendments signed by the parties hereto, shall constitute the entire agreement between Buyer and Seller, and supersedes any other written or oral agreements between Seller and Buyer. This Agreement can be modified only in writing, signed by Seller and Buyer. 28 Buyer and Seller agree that, in the event of any controversy regarding the earnest money and things of value held by the Closing Agent, unless mutual written instructions aze received by the Closing Agent, said Closing Agent shall not be required to take any action, but may await any proceedings or at the Closing Agent=s option and sole discretion, may interplead all parties and deposit any monies or things of value in a Court of competent jurisdiction and may utilize as much of the earnest money deposit as may be necessary to advance the cost and fees required for filing such action. 29 At any time, the parties may agree to submit any dispute azising out of this transaction to mediation or arbitration. Parties, by agreement, shall specify mediation or binding arbitration. The cost of mediation/arbitration shall be paid equally by the parties. 30. Seller's Re resentations and Warranties Seller represents and warrants to Buyer, which representations and warranties shall be true as of the closing date, as follows: A. The Seller has fee simple title to the Retail Units and full authority to convey complete fee simple title to the Buyer, and, to Seller's knowledge, there are no encroachments upon the Retail Units. B. To the knowledge of Seller, there are no easements, rights-of--way, or claims thereof over or across the Retail Units which aze not or will not be recorded in the office of the Clerk and Recorder in Gallatin County before closing except the agreed upon Declazation of Condominium and Condominium Bylaws to be shown as an encumbrance. C. Seller knows ofno boundary line, fence, building, zoning, use or easement disputes or violations concerning the Retail Units and there are no written or oral agreements for use of the -10- Retail Units with third parties. No portion of the Retail Units are possessed by any third party, nor does any third party have any right to use the Retail Units or any claim to use the Retail Units by prescription, adverse possession, or otherwise, except as disclosed on the public record in the Clerk and Recorder's office. D. To the best of Seller's knowledge, the Retail Units have not been used as a landfill or dump and has not been used for the production, storage, release, or disposal of petroleum, asbestos or hazardous wastes or substances, as defined under federal, state, and local laws, regulations and ordinances affecting the Retail Units (referred to collectively herein as "hazardous substances"). To the best of Seller's knowledge, no hazardous substances have been dumped, deposited, spilled, leaked, discharged, placed or disposed of on, or escaped from, the Retail Units. Seller has provided Buyer with a copy of a Phase 1 Environmental Site Assessment Report of the Real Property. There are no underground storage tanks in or on the Retail Units. E. Seller has not received notice of any violation of any applicable regulation, law or order relating in any material respect to the Retail Units nor does Seller have any knowledge of any notice from any governmental authority of any (a) pollution, health, safety, fire, environmental or building code violations with respect io the Real Property; (b) a possible condemnation of any part of the Retail Units; or (c) any other notice which would impact or pertain to the Retail Units. F. To the knowledge of Seller, there are no claims, actions, proceedings or govenunental investigations pending or threatened against the Retail Units or involving Seller or Seller's agents or employees in connection with the Retail Units or against or involving any ofthe Retail Units; nor to the knowledge of Seller is there any reasonable basis for any claim, litigation, proceedings or other governmental investigation. G. To the best of Seller's knowledge all utility services, including water, sanitary sewer, storm sewer, gas, electric, telephone and cable television facilities, are available to service the Retail Units with connections at the boundary lines of the Real Property which adjoins public streets or passes through or are located on adjoining private land pursuant to easements running in favor ofthe Retail Units. 1-i. To the best of Seller's knowledge, all information pertaining to the Retail Units delivered by Seller to Buyer, including by way of illustration and not limitation, all contracts and other documents, is and shall be, complete, true and accurate, in all material respects. I. At or before the end of the Closing Period, Seller shall have paid or shall have caused to pay all outstanding amounts due under all outstanding contracts affecting the retail unit or units through. the end of the Closing Period. J. Ai or before the end of the Closing Period, Seller shall have paid or shall have caused to pay in full all outstanding monetary liens affecting the retail unit or units. 31 Buyer,s Representations and„Warranties ~11- Buyer hereby represents and warrants to Seller: A. Both as of the date hereof and as of the closing date, that Buyer has full power and authority to enter into this Agreement and to carry out the transactions contemplated by this Agreement. B. In the event Buyer closes on less than all of the Retail Units at the first closing, Buyer represents and warrants that by consummating said first closing, it waives and releases all contingencies contained in this agreement with respect to the remaining Retail Units and represents that it has sufficient funds to cover the acquisition price for all remaining Retail Units and all associated closing costs. C. As of the Date of Closing, Buyer shall have obtained a policy of liability and hazard insurance covering the retail unit or units being purchased in conformance with the terms of the Agreement to Sell and Purchase between the parties. Said policy is in full force and effect. 32 Bu er's Remedies It is agreed and understood by and between the parties hereto that if the Seller accepts the offer contained in this Agreement but refuses or neglects to consummate the transaction within the time period provided in this Agreement, the Buyer may demand immediate repayment of all monies that Buyer has paid as earnest money, and upon the return of such money the rights and duties of Buyer and Seller under this Agreement shall be terminated; or demand that Seller specifically perform Seller's obligations under this Agreement; or demand monetary damages from Seller for Seller's failure to perform the terms of this Agreement. 33 Seller's Remedies It is agreed and understood by and between the parties hexeto that if the Seller accepts the offer contained in this Agreement and Buyer refuses or neglects to consummate the transaction within the time period provided in this Agreement, the Seller may declare the earnest money paid by Buyer be forfeited; or demand that Buyer specifically perform Buyer's duties and obligations under this Agreement; or demand that Buyer pay monetary damages for Buyer's failure to perform the terms of this Agreement. 34 Miscellaneous. IT 1S AGREED AND UNDERSTOOD by and between the parties hereto that all representations and warranties of the parties herein and covenants to be kept and performed by the parties hereto shall survive the closing and consummation of this transaction. IT IS AGREED AND UNDERSTOOD by and between the parties hereto that this Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, personal representatives and assigns. -12- WITNESS our hands and seals the day and year first above written. SELLER: CITY OF BOZEMAN, MONTANA BUYER: CITY CENTER COMMERCE, LLC r BY: Ci- / By: Chris Kukulski Brian Caldwell Its: City Manager Its: Managing Member SELLER: BOZEMAN PARKING COMMISSION .~ BY: Chris Pope Its: Chairperson -13- COB IMF CITY OF BOZEMAN INTERMODAL FACILITY UNIT RETAIL RETAIL UNITS; R-1 , R-2 , R-3 , R-4A, R-5, R-6, & R-7 I ~- .. 8 ~ .. ,,......... - , ..~.......-__ -, - COMMON I ~ I ELEMENT I ~ L - I - ( IIETAIt SUITE ~ RETAp. $UiTE ~ RETAIL $Ir:Tt ty {jJi ~ _. R-~ i , fl.a LIMITED ~ ~ , .COMMON t ~' ELEMENT ~ -^^ I IV.~TAIL sulT'E9 PLAU r~N PUBLIC ~ RIGHT-OF-WAY - i - ... ,~, " ~ ,' i pETAR. SUfTE pETA1L BUTTE ~' pETAIw SUiTF p"S ~ _p~e LR T I -. _. ~~ of .:.-fl tv ut! y ;~ ~ i I is IN i ~ ...-...._ _._......- .~_ _...-~- I IiE:TAIL 5UIT~r PLAN ~~ ~' -}-„ "" ~~ " - " ~ NOTE: Plwlanebne xa appraxlmals. Dhwneiona x~ to mlddla of wrlle or to oulekle of stud roll at stud and masonry wells. pETAt1 BUTTE a RJAj ~ RJEt v ~ 422 5~ I I 1~TAIL SUITC PLAN Garn n 4t City.Gantur„ i..,..,,,~j.~ T A - - ~ Pay I.FNON AGREEMENT TO SELL AND PURCHASE '"`~"" PAGE 1 OF 5 - --- 4MlAaCEO eEiAK -LArrp KAr coB I M F <~~~ z~ ~~> <~. . CITY OF BOZEMAN INTERMODAL FACILITY UNIT RETAIL - -- ---~ -.. ', -. o ,~ al„ ~ c COMMON ~ '~.....-.-.~ ! - ~r ELEMENT -, ,.. _ _ - b . ~ ~m.~ ., i _ _ _ _. ~ _ _ r °, LIMITED •,', .. .'.... ..' COMMON ~•-_-~...:~.~• .~ ~... ELEMENT ~ i o r~; ' ;e ~i PUBLIC ~.:........ ---- ~ ~i ' ---- -- - RIGHT OF-WAY ': M 4 ~ M r---_....._. ~I-~~ ~ ,;., ~ ~ ~~ ~~ -., a~~„ a ;. .. o +r k :S d ~ f~ . +wPrc. w~ ~ •J ~~ $ a n + .. I i, r - -, ~ .. ' tE r -. + ~ ... ^~. '4 --......~.-c.- . V s I ~ ~ -... .. i~ I ~ . ° j '~ i = ` i w ~, n , n OVCRA~~ BA5CMLNT LCVr,~ '..p012 i'..AN , o ~~ --~.. EXHIBIT A "" 6otamen lntarmadal PaClllfy PRK AGREEMENT TO SELL AND PURCHASE PAGE 2 QF 5 pVEFALL BASEMENT LEVEL PLAN A1.0 COB IMF ~,' ~° ,,a~ .~..~ CITY OF BOZEMAN , - - . INTERMODAL FACILITY UNIT r ~ ~" ~ i RETAIL _ ~ .~;_ ~. ~~.,.. RETAIL UNITE; R-1 , R-2 , R-3 , k ~~~~ ~ ' R-4A. R~S, R-6, & R-7 ~,_ r - ' ~' ~`,~ f . ~ ~ . COMMON ~ ' y": c --..-~ ~' ~ 1 ~ ELEMENT `±';; - ._-... ~.---" ~ ~.. "' `~V I ~ m ~ m ~ ~ ~ ,~ LIMITED I ~' -- ...,~., COMMON i ~ i ~~ ,. ~ I ~ ~~~~ ELEMENT - ~..._ -.~..., ......~..-i I~_ n, ~ ~ v i ~: ~ ,~ i PUBLIC ~ ~~'-0 ~ ~ a RIGHT-OF-WAY ~ ~ ~ i ~ ~! ~~ ~ l I; =e € ~, ,, I• j a ~ I .i, I ~ ~•. I ~{~!.~..._. ~~ / ~ ~ ~~~ -vt~ -~ E° ~ ~ I _._.. ~~~ ' - a ~ ~ ~ V ~ r:~ n j 1 p ~~ ~ ,~ Rpr I r., ~ a 4 1 i aro~ G ...,.. ..~. .. J ~ ~ ~ `.. ~ ' ~ ~i~~ r , rw L. y~~ +W ... ~ s I r.~ j _ ~ •. ~~ -- .r ~ p r- ~.. L~ ~-. . , ~. r ' _,- , c ~ - ~ ~ !,~. R ~ ~ .~ )))) ~ cA j • ~ IW ~ ' F ~ ~ 1.~ta~ ~ _ *` A y ~ .._ ~ ~` ~ y -...i ~ ~ ia, ,. , :~ W w ~ n! ~ ,, ~ 1 • `~. -- .~ /'1 ~ ~Q b ~. 1 ~~' ~ ~ S { ~ .. ~ ~. I ............._.... r ~ Vii/ "'. ~~ ' ~ ~ a .. / ..1. :~ ~ ~ ~ ~ F t ., „ ~, s ~ il ~ M ~z r ^Y ~ -,-~ 1, T A',~ ` ~ . m . , ~ :, .. ` _ . ~m _r ~,~.. _ ~~ 1 @: ~- y ~, 1 ~ ~ „tlr~ ~~p~~y C~ ~ . ' ' m ~~. -t n'`+ I •'h ~ ' ~~ ti ~i ~ 7 y..... /a ..l - '. .. ,. AR .m w.,~if a > _-~~r ~ e. /~1 /~ f+ OVERALL GROLND ..EVc_ ~LOGR PLAN EXHIBIT A " Boxeman Inlormad6l Fac~~~~y PRK AGREEMENT TO SELL AND PURCHASE PAGE3OF5 ~'........ ~~ OY(kAGG GW011N0 LCYEL PLAN A 1.1 ~ COB IMF CITY OF BOZEMAN INTERMODAL FACILITY UNIT RETAI L RETAIL UNITS; R-1 , R-2 , R-3 , r.-, COMMON +L~°i~ ELEMENT `'~ LIMITEp ,. -_...._.._. COMMON ELEMENT ti PUBLIC ~~......"--...------;_ -__.._ RIGHT OF-WAY ; f '~ - a i W ~ ~~ ~ ~ ~ a ;i. ~i ~~" e~~ i~ -- - » ,w c .. ' . A ~ ~ ti ~~ ~ ,t.: .M 1. r~-.y~~-:re - ~ .( s !5 I t ~ rya t. !, ,~,, t ... ~!~ .' ,~. ~ j7 ~ ' i... r . \ ,;~ „. ~~ ~ _ R L ,. ~ ~ ~ ~ ' ,~ I -... ~ ... .1 ' ~.',',. t~ y ~ ~ i . fµ ..._._. _.. ~ ,' y a¢.~,~ 't. FY. ~ ~ ' I ~ .... .. w ~. 6 ~ t.i7~ s, OVERAL_ 5EGONp / TH RD ~EVEi. (T"~IGAL) PLdOR F'~Ati ' q scKC. r,~.e~ . ~ -0 Bozeman Intlrmodal 'Facility PRIC EXHIBIT A - AGREEMENT TO SELL AND PURCHASE PAGE 4 O F 5 -~-N+~--- OVERA~1. SECOND LHYL`L plAtr ~1 t 2 ,.. ~~rr ~ / ya F COB IMF CITY OF BOZEMAN INTERMODAL FACILITY UNIT RETAIL COMMON ELEMENT LIMITED '":`COMMON ELEMENT PUBLIC RIGN7 OF-WAY 'y6 r~ 3~ a8 if' s ~mm. L o ... ...................................._~_ _.. ~.' ...: r, - . A ~ ` ~ i ~~ .~•..-.1. • ~.-_-_.. t • _ ~-. /L .~ . _ •Y ~~ [. n ~~ r~ ~. .a.: w ., ~ , a ~.~._ _ ~ --- <<,. _. ~'- ~~~ x . ~ ~~~~ W ... a~ o '~' _ +r,r .~ ~.. .. .re":~ ~' „ 1 ~;:.~ ,Y +~ _. . ~r're ~`~' ~~ t~ ~vV A OVL!~AI.L -H ~7 / ~GJ~Th (RO:JP: LEVEL f T / f --- Y?•GA_ ; ':.OCR P ~AN .. ~, ~ B ~ ccr~y ••a . ; a EXHIBIT A - eoxemmn Ipty~mod9l Faollity I PRKT AGREEMENT TO SELL AND PURCHASE PAGE 5 OF 5 ~~ ~ `~ ___._.,~...4_ d Vf.RA44 THIRp IxOOFI LYG P~,pN ., A1~3 EXHIBIT B -AGREEMENT TQ SELL AND PURCHASE I'arki~. ~~.ra ~ ~ ~ A Parking Structure & Retail Building 131ack, Mendenhall & Tracy KI)7Qt„i~n,M077fana DRAWING INDEX CIVIL DRAWINGS CS CIVIL COVER SHEET SP CIVIL SITE PLAN GP CML GRADING PLAN UP UTILITY PLAN ST STORM RECEPTDR TREATMENT PLAN LS SITE LANDSCAPE PLAN ARCHITECTURAL DRAWINGS A1.0 OVERALL BASEMENT LEVEL FLOOR PLAN Al ~ OVERALL ~D LEVF~,L F~LD~P AN A1,3 OVERALL THIRD LEVEL FLOOR PLAN A7.4 SR~TAII SUITE FLOOR PLANS A1.5 NR TOWER FLOOR PLANS A1.6 STNR TOWER FLOOR PLA!'IS A7.7 ELEV, ALT. N0.1 FLOOR PLANS A3.1 BUILDING SECTIONS A3.2 BUILDING SECTIONS A3,3 BUILDING SECTIONS A3.4 BUILDING SECTIONS A3.5 STAR S-1 SECTIONS A3.6 STAIR S-2 SECTIONS A3.7 STAIR 5-3 SECTIONS D-1 TREE PLANTING AND STORM WATER TREATMENT Q2 WATER SERVICE/ FIRELINE SERVICE D-3 SITE DETNLS TCP-1 TRAFFIC CONTROL PLAN TCP-2 TRAFFIC CONTROL PLAN A2.1 PHASE 7 -OVERALL BUILDING ELEVATIONS A2,2 PHASE 2 » OVERALL BUILDING ELEVATIONS A2.3 STAIR TOWER BUILDING ELEVATR7N5 A2.4 RETNL SUITE BUILDING ELEVATIONS STRUCTURAL 51,1 GENERAL NOTES & ABBREVIATIONS 51.2 GENERAL NOTES CONTINUED 51.3 GENERAL NOTES CONTINUED 52,1 FOUNDATION PLAN 52.2 GROUND LEVEL FRAMING PLAN 52.3 SECOND LEVEL FRAMING PLAN 52.4 THIRD LEVEL FRAMING Ma1N 52.5 ENLARGED STNR FRAMING PLANS 52.6 ENLARGED STAIR FRAMING PLANS 52.7 ENLARGED STNR ROOF FRAMING PLAN 53.1 FRAME ELEVATIONS LINE51, 2 do 3 53.2 FRAME ELEVATIONS LINES 4, 5 8 6 53.3 FRAME ELEVATIONS LINES 7, 8 & 9 53.4 FRAME ELEVATIONS LINES 10 11 812 53.5 M15C, FRAME, BEAM SHEAR 1M1fALL ELEV 54.1 TYPICAL CDhICRETE DETNLS 54.2 COLUMN ELEVATIONS 8 DETNLS 54.3 COLUMN ELEVATIONS & DETNLS 54.4 COLUMN ELEVATIONS 6 DETALS 55.1 TYPICAL P-T DETNL5 8 SECTIONS 55.2 CONCRETE DETNLS 55,3 CONCRETE DETAILS 55.4 CONCRETE OETNLS 56.1 TYPICAL STEEL DETAILS 56.2 FRAMING DETNLS 56.3 STNR FRAMING DETNLS A4.1 WALL SECTIONS & RODE DETAILS A4.2 WALL SECTIONS A4,3 WALL SECTIONS A4,4 WALL SECTIONS & INTERIOR ELEVATIONS A5.1 STNR TOWER WINDOW & DOOR ELEVATIONS A5.2 RETAIL WINDOW & DOOR ELEVATIONS A6.1 STAIR TOWER WINDOW & DOOR DETAILS A6.2 RETAIL WINDOW & DDOR DETAILS A6.3 STAIR 8 RAILING DETAILS A6.4 MISCELLANEOUS DETAILS A6.S MISCELLANEOUS DETAILS MECHANICAL MP:O BASEMENT MECHANICAL PLAN MP,1 GROUND FLOOR MECHANICAL.. PLAN MP,2 SECOND FLOOR MECHANICAL PLAN MP.3 THIRD FLOCIR MECHANICAL PLAN MP.4 SEC!C~ND FLOOR PLAN MECHANICAL ADD. AL1. #1 MP.5 THIRD FLOOR PLMN MECHANICAL ADD. ACT. #1 MP.6 FOURTH FLOOR PLAM MECI-IANIGL ADD. AL.T sM 6 MM.1 URGE SCALE MECH. RETAIL - gFFiCE PLANS MM.2 LARGE SCALE MECH. STAIR /ELEV. PLANS MM.3 N.ARGE SCALE MECH. STAIR / ELEV. PLANS MM.4 MECHANICAL DETAILS MM.S MECHANICAL DETAILS & SCHEDULES MFP.1 BASEMENT FIRE PROTECTION PLAN MFP,2 BASEMENT FIRE STANDPIPE PLAN ELECTRICAL E.1 OVERALL BASEMENT ELECFRICAL PLAN E.2 OVERALL GROUND LEVEL ELECTRICAL PLAN E.3 OVERALL 2nd 8 3rd LEVEL ELECTRICAL PLAN E.4 OVERALL 3rd & 4th LEVEL ELECTRICAL PLAN E.5 RETAIL & OFFICE ELECTRICAL FLOOR PLANS E.6 STAIR BSMT & GRND LEVEL LIGHTING PLANS E.7 STAIR BSMT & GRND LEVEL POWER PLAINS E.L1 STAIR 2nd & 3rd LEVEL LIGHTING PLANS E.9 STAIR Intl & 3rd LEVEL POWER PLANS E.10 MAIN SWITCH BRD & SCHEDULES E•11 PANELRISER DIAGRAM E.12 PANEL SCHEDULES & LEGEND Bozeman lntermodal Facility 1.~'~. 1'. ... r.r..it (.~!:`f~Fi ii i'~. ,~. Tr%]•:y G-i (:) r, ,r, i.7 f'; t,:~:lt'~.!t3n i7 PRiK ii ii I l~ ~.1 ~,.1 L A r :v ~ III• I~ ~ illll w Y.r.. ), r 1i,1K Muin ~hvx!' &YX[rclpn, M I' S •~'~ a q rITL_E SHEET "'~' ~. o EXHIBIT C -AGREEMENT TO SELL AND PURCHASE "~~"~ ~~ Document A~ 2~ ~GMc - 2003 and AGC Document 565 Standard Form of Agreement Between Owner and Construction Manager where the Consfructian Manager is Also the Constructor ,ac~e~M~Nr n~dc a"; ~~f• t;te 14th day of Jung in the year a1~ "I'w'o 7'ho!tsand 5cvcrt ilrr crnrrlc, lrrdic~ltr~ rlrn•, rrrorrtll urr! yvrrarl ADDIT1pNS AND DIwL~.TIONS: The author of this document has e~TWEEN [he 05r rter' added infarmitiar, neened far its r ~r:zrne crr!r! a~7'drrr,r.s) cgntplErUan. 't'he aulhdr Wray also ha~'a revised !he, fhxt of the Drtginal City c!t f3azcinan AIA standard form. An Aatiitrons and P C? C3ux 1?30 De;e!rgn5 ~Tepon that Hates adden l3na.:rnan, MT 59 i I K inignnatign as we•.I as rev'„ions zq the standard form ?,,hxt is avariah'e :ur:l tttc C,•vn.t[r'uc'.tiutt ~1ana~rer tram the corner and snould ne rV..;»t r rctrd rtdtlre.S.cJ reviewed. A Vertical fee in the ieft i71nrC~;n Ot :rtis doCllrl'tt'n[ IndIC.91e£• ' hlarfc:l C.'nrttitructictn, [n~. ~rhere the author rta., socklad I:'.tt i Suutlt (.'ltnrc,h A5'c:11tc negessary Infgrmrttian anr~ :vhere f3ttzcrnatt" 1•'I'T' 597 f ; the zauthor !u1s added to nr ;ia;a!a,:i 'ru:n ;n(: cariginetl AIA'~azt i•k1C I'ri7l trC.L 18: "this dr,~,um(tnt ha irr?C:Crtnrl; irrgai .... rrp, ,..., ...,,... .,...,. C.,. ~ .......... ....... a:n ertzctrney is ?ncquraged ;•rt"t respect liU[uCtt:at [IICi;CrrlC>ilal f'[1C111ty' I:3 I}S C.C:n1~IGtian ar' TiQdltiL'atlan. Iilrrck, ~'Il'n(~tCtl1rtll i:[ld •I [:lCy' linrc:rrtttn, A1'i~ 59'i I S rho i~97 C;dlt!grt at AIA Dar.unte:nt A20t, General Canniligns of the Contract far Construcnan, is re!arred tq hea•ain. Tnis Agreeament requires ' modi+idatidn if other general I hc .'~rchitcct is: canC~hans tare utilized. r .tirCllli f' !I rt(1 C! rlr:ll'E' S'.r E'nu~;kt GG: L.l•rrl.an :lrchttccts, 1'.C. ..' 7 k? tit A1:cn, S[c. f) finr.ettt.t!t, M"I" 59i I5 .I"hc. Owncr crud C[tnsiructiun '~'Isnafrr akrce ,tr; sct forth bclnw: AIA t)ocumnnt A121 rTMGMp -- 2009 and AGG document 585. Copyf+ght YrJ t~91 artd 2003 by ~rhr: Anterican I^~,lilule pl Arrhilra:.: ~n~i (hva P.;;:,~tC.:At^;~ ^.rrral .:prtractnrs atArneridrl. All rights reserved. 5'dA~:rifr~lL,:'t1d(; po::unnn[ i:=7rq:e: ~ 1;g :r.s, c:r5t yen?:1 t.nsr ~ ', S,r „a:.~e-.,~ .. .-. .. „ , f w:.-~c•~>d ..;lruda"•han a- uis~i;itr.Nirm c! "5i_~ u~•~.vf~t^..^nt, ar &ny K;artioh cal rE, rr ,.-:y : . , at rri ,;:-vc.•re cowl r.n:~ ~. v~r;a , ~ .... - a , .•.v •ut.=d • u ~ _ rraxinrurn :. I:,r.t ra•ra~Sic u;~orir.,.r the !z3sr. 7riis docurrc~rn was produc!;d l)y A.A n'rwa•a ur 1~ 19'~D nr n~, ... - C`rdi:r ~.7 tiii::12b~422 1 wry.r;!~ nxt:,rr:; nn ~."•9`L~DD?, arty 5 n;fl 'nr re Sale User No!os: , :3r±S~n ' • y EXHIBIT D- AGREEMENT TO SELL AND PURCHASE DRAFT FORMAT ONLY, FOR REVIEW PURPOSES October 12, 2007 City Center Commerce, LLC 600 North Wallace, Loft 3 Bozeman, MT 59715 RE: Purchase of Commercial condo units located in the City of Bozeman. parking garage Uear Managing Members: Thank you for the opportunity far Yellowstone Bank to finance the purchase of the above referenced commercial condo units to be constructed in the new City of Bozeman parking garage located on Mendenhall. This commitment is subject to receipt and satisfactory review of all normal Commercial Loan documentation, free and. clear title to the property, a professional. appraisal verifying an acceptable loan to value and that no adverse changes have occurred in your financial stature as o.f time of closing. This commitment will be subject to all of the terms and conditions to be forwarded to you in our commitment letter as you have requested. This commitment letter satisfies your requirements as set forth in your buy sell agreement. If you have any questions or comments concerning our commitment for the purchase of the commercial condos, please feel free to contact at 406-5$7-9900. Yellowstone Bank is excited to be part of this business venture as well as our continued financial relationship with your firm. Sincerely, Kurt Buchl KJB:ss DRAFT FORMAT ONLY, FOR REVIEW PURPOSES