AGENDA URBAN RENEWAL AUTHORITY DECEMBER 11, 2014 AGENDA

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1 The City of Muskogee encourages participation from all its citizens in public meetings. If participation is not possible due to a disability, notify the City Clerk, in writing, at least forty-eight hours prior to the scheduled meeting and necessary accommodations will be made (ADA 28 CFR/36). AGENDA URBAN RENEWAL AUTHORITY DECEMBER 11, 2014 AGENDA SPECIAL CALL SESSION - 10:00 a.m. 2nd FLOOR CONFERENCE ROOM MUNICIPAL BUILDING, 229 W. OKMULGEE, MUSKOGEE, OKLAHOMA ROLL CALL REGULAR AGENDA 1. Discuss and take necessary action on a request from RECO Medical for a single site development of an urgent care clinic within Phase 2 of the Urban Renewal Area. (Roy D. Tucker) 2. Discuss and take action on a proposed Option to Purchase Real Property between the Urban Renewal Authority, Reef, LLC, the John H. and Diane C. Reynolds Grandchildrens Trust, and John Haynes Reynolds, III for property within the remaining Phases of the Urban Renewal Authority. (Roy D. Tucker) ADJOURN

2 Urban Renewal Authority 1. Meeting Date: 12/11/2014 Submitted For: Roy Tucker, City Attorney Initiator: Roy Tucker, City Attorney Department: City Attorney Staff Information Source: City Attorney AGENDA ITEM TITLE: Information Discuss and take necessary action on a request from RECO Medical for a single site development of an urgent care clinic within Phase 2 of the Urban Renewal Area. (Roy D. Tucker) BACKGROUND: The URA received a request from Alan Souter of RECO Medical / RECO Enterprises to locate an Urgent Care Clinic that was initially planned for North of the Urban Renewal Area to the West of Freddy's Custard into the Urban Renewal Area. During conversations with Mr. Souter, the proprietors of the Urgent Care clinic desire to be in an area of intense retail use. As a result, they feel that proposed location will be a stronger fit. RECOMMENDED ACTION: Consider request and direct staff as approrpiate. Letter from RECO Medical Attachments

3 4645 South 83rd East Avenue Tulsa, Oklahoma Phone Fax City of Muskogee C/O Roy Tucker, City Attorney P.O. Box 1927 Muskogee OK December 8, 2014 Re: Urgent Care Clinic / Medical Office Building in the Muskogee Urban Renewal Area Dear Mr. Tucker, Please consider this letter the basis for a future purchase/development agreement for a proposed urgent care clinic and medical office / clinic within your Urban Renewal Area. We would like to purchase one-half acre (0.5 acre) m/l fronting West Shawnee Street / Highway 62 and East of North 5 th Street. I believe it is Lot 3 in Factory Addition. We can close on the land purchase as soon as it becomes available. This is the same urgent care clinic we are currently permitting on the north side of Shawnee Street, at 550 West Shawnee (2 lots west of the Freddie s Custard). We believe other physicians would prefer that location, and the urgent care doctors would prefer a more retailoriented location. One of their current locations is in Tulsa Hills Shopping Center, adjacent to McDonald s and Lowe s. Attached please find final architectural drawings for their building. This exact building would be constructed on the proposed URA land. Please advise at your earliest convenience. Sincerely, Alan Souter, JD CC: MedNOW Encl: (1)

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5 Urban Renewal Authority 2. Meeting Date: 12/11/2014 Submitted For: Roy Tucker, City Attorney Initiator: Roy Tucker, City Attorney Department: City Attorney Staff Information Source: City Attorney AGENDA ITEM TITLE: Information Discuss and take action on a proposed Option to Purchase Real Property between the Urban Renewal Authority, Reef, LLC, the John H. and Diane C. Reynolds Grandchildrens Trust, and John Haynes Reynolds, III for property within the remaining Phases of the Urban Renewal Authority. (Roy D. Tucker) BACKGROUND: At the last URA meeting, Staff was directed to prepare and submit an option contract for the purcahse of real property from the Reynolds Group for the acquisition of property in the remaining phases of the URA beyond those which were under previous contract. The attached agreement is in draft form and is subject to minor modification before final presentation at the meeting. RECOMMENDED ACTION: Take action to approve the agreement, or provided appropriate direction to staff. Proposed Draft Agreement Attachments

6 OPTION TO PURCHASE REAL PROPERTY REEF, LLC, THE JOHN H AND DIANE C REYNOLDS GRANDCHILDRENS TRUST, AND JOHN HAYNES REYNOLDS, III, hereby referred to as Seller, (whether one or more) for and in consideration of the sum of $75,000 as defined further herein, hereby acknowledge as received, hereby gives and grants an option to the CITY OF MUSKOGEE / MUSKOGEE URBAN RENEWAL AUTHORITY ( URA ), or its assigns, hereinafter collectively referred to as Purchaser. The option with right of first refusal to purchase the real property of Seller situated in the county of Muskogee, State of Oklahoma, and more particularly described as follows, to-wit: SEE EXHIBIT A.1 -- Attached URA Area Map WHEREAS, the parties hereto acknowledge that the City of Muskogee, Oklahoma, receives inquiries and contacts from entities desiring to acquire land for various development purposes within the designated Urban Renewal Area all in accordance with the City of Muskogee Urban Renewal Plan adopted on May 27, WHEREAS, the Muskogee City staff, on behalf of the Muskogee Urban Renewal Authority, desires to provide information regarding available lands and pricing in order to attract compatible development, and thus the parties find that the purpose of this option is to further that goal and to have developable land ready for redevelopment. NOW THEREFORE, upon due consideration and the mutual promises of the parties, this option is given by the Seller to the Purchaser upon the following terms conditions: SECTION ONE Price and Terms of payment A. Upon exercise of the option to purchase, the purchase price shall be: $8.00 per gross square foot owned including but not limited to alley ways and street right of way in tier A; $6.00 per gross square foot owned including but not limited to alley ways and street right of way in tier B; and $3.50 per gross square foot owned including but not limited to alley ways and street right of way in tier C. Less prepaid earnest money set forth in Paragraph B below. For purposes of this paragraph, tier A shall mean any property owned by the Seller between the South line of Shawnee Frontage Road to the North line of Frisco / Martin Street; Tier B shall mean any property owned by the Seller between the North line of Frisco / Martin Street to the North line of Katy/Miller Street; Tier C shall mean any property owned by the Seller between the North line of Katy/Miller Street to the North line of Talladega Street. Purchase price estimated at $2,552,550. Final sales price to be adjusted based on gross square feet owned, subject to paragraph B below. B. For purposes of of this Agreement, gross square feet owned shall mean any and all property to which the seller is the owner at the time exercise of the option to purchase,

7 and which seller would otherwise be entitled to by virtue of any permanently vacated streets, alleys or other public ways occurring in the future. However, the parties agree that no funds shall be due to the seller on any permanently vacated streets, alleys or other public ways until, and if, said streets, alleys or public ways are judicially vacated, at which time, and not later than 30 days after entry of judgment on the vacation, the Purchaser shall remit to the Seller funds which equal the amount of square footage vacated which adjoins property acquired by this Agreement and which would have reverted to Seller. It is the intent of the Purchaser that the area known as the Urban Renewal Area shall be fully developed, and blight removed, within five years of this agreement. C. To exercise the option, Purchaser or its assignee shall deposit the sum of $10, as an earnest money. D. It is the intent for this option to convey all ownership by Seller. However seller will entertain a partial purchase which would be addresses at the time of offer and may or may not contain the same terms as this agreement. SECTION TWO Period of Option and Extension and Right of First Refusal A. This option may be exercised by giving notice to Seller at: 1805 N York Street, Suite B, Muskogee, OK 74403, at any time during the primary period up until Three Hundred Sixty-Five days (365) days from the date of this instrument at Five o clock p.m. The option may be extended by mutual agreement of the parties, but Seller reserves the right to re-establish a new sales price upon an extension being granted. B. It is not the Purchaser s intent to not allow Seller to sell the property to a third party during the term of this option. However, in the event the Seller obtains a bona fide contract from a third party to purchase any property owned by the Seller within the area designated within Exhibit A.1, Seller will (1) assure that any contract with third party has a provision therein advising the third party of Purchaser s right of first refusal (2) the Seller will give written notice to Purchaser that a third party has made an offer on the property, and provide Purchaser with a fully executed copy of said contract. Purchaser shall then have fifteen (15) days thereafter in which to exercise its option by agreeing to purchase the subject property on the same terms as the third party contract offer. In the event Purchaser exercises its option and right of first refusal, it shall notify Seller in writing and shall tender the appropriate earnest money deposit. In the event Purchaser does not exercise its option and right of first refusal, the Seller shall be free to sell to the third party and this option and right of first refusal shall no longer apply.

8 SECTION THREE Title All actions to do with title are to the burden of Buyer. Including but not limited to taxes due, abstracting, and any other curative actions needed to transfer ownership. SECTION FOUR Prorating of Assessments and Closing All expenses shall be paid by buyer. Closing shall occur no later than 60 days after exercise of option. SECTION FIVE Credit for Earnest Money Deposit and Option Consideration All funds paid by Purchaser to Seller in consideration for this Option shall be used to secure said option, and to secure Seller s agreement to provide Purchaser with a curative instrument for real property located in Reeves Addition No. 2, Block 8, Lots 27-32, with such instrument given contemporaneous with the payment of the full consideration. Additionally, the parties agree that the consideration described shall be for no other purpose, such as earnest money or purchase price credit on any option provided for herein. SECTION SIX Due Diligence and Environment Assessment A. Upon execution of this agreement and while this agreement is in force and effect, Purchaser s agents shall have the right to enter the premises for the purpose of determining the suitability of the property for the intended use and for conducting and environmental assessment upon reasonable notice to the Seller. In the event it is determined that the property is not suitable for the intended use or that it is determined that hazardous materials as defined by the Environmental Protection Agency of the United States of America have been deposited upon the premises which is the subject matter of this option, the Purchaser, at its option, may terminate this option agreement and recover from Seller all sums paid to Seller as its earnest money deposit. B. There is no duty on Seller to remedy any environmental issues or to be responsible for the cost of the same, unless by written mutual agreement between Seller and Purchaser.

9 SECTION SEVEN Possession and Risk of Loss Seller shall continue in possession of the property until closing of the purchase, and shall maintain the same in its present condition, reasonable wear from ordinary use excepted. Possession shall be transferred to Purchaser immediately upon closing of the purchase. SECTION EIGHT Zoning Any action to rezone, alley closure, street closure, or any other action needed for closing relative to any parcel of property owned by the Seller shall be at the expense of the Purchaser. SECTION NINE Notices Any notice hereunder shall be given in writing to the party for whom it is intended in person or by registered mail at the following address, or such future address as may be designated in writing: Seller: John Haynes Reynolds III 1805 N York Street Suite B Muskogee, OK Purchaser: Howard W. Brown, Jr. Executive Director, URA 229 W. Okmulgee Muskogee, Oklahoma SECTION TEN Assignment and Succession This option and the contract resulting from the exercise thereof shall bind and inure to the benefit of the heirs, administrators, executors, successors, and assigns of the respective parties.

10 SECTION ELEVEN Eminent Domain It is recognized by both parties that Purchaser is the City of Muskogee and/or Muskogee Urban Renewal Authority ( UAR) and both parties agree that Purchaser by executing this document forfeits its ability to initiate eminent domain or any other action forcing Seller to sell at a price they do not mutually agree upon. SECTION TWELVE Conflict In the event of conflict this document controls. It is the intent of both parties that this document supersedes any law or legislation currently in existence or which may exist in the future. APPROVED THIS DAY OF, 2014 BY SELLER: THE JOHN H AND DIANE C REYNOLDS GRANDCHILDRENS TRUST BY: John Haynes Reynolds III Its: Trustee REEF, LLC BY: John Haynes Reynolds III Its: Sole Member John Haynes Reynolds III

11 APPROVED THIS DAY OF, 2014 BY Purchaser: City of Muskogee Urban Renewal Authority By: Darrell Russell Its: Chairman Attest: By: Robert Goolsby Its: Secretary Approved as to form and legality this day of, By: Roy D. Tucker Its: Attorney APPROVED THIS DAY OF, 2014 BY City of Muskogee: By: Bob Coburn Its: Mayor Approved as to form and legality this day of, By: Roy D. Tucker Its: Attorney