MEMORANDUM OF UNDERSTANDING TO CONVEY LAND
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1 MEMORANDUM OF UNDERSTANDING TO CONVEY LAND This Memorandum of Understanding to Convey Land ("MOU") is made as of this day of December, 2016, by and between Pueblo West Metropolitan District, a Colorado special district, ( Grantor ) and Pueblo School of Arts and Sciences, a Colorado non-profit and public charter school, ( Grantee ), referred to individually or collectively as Party or Parties. RECITALS WHEREAS, the Grantor is the owner of the real property legally described in Exhibit A and referred to herein as the Property; and WHEREAS, the Grantee wishes to construct a new school facility on the Property; and WHEREAS, the Grantor desires to convey the Property to the Grantee for the sole purpose of constructing a new school facility thereon. NOW THEREFORE, in consideration of the mutual covenants and conditions contained herein, the parties agree as follows: 1. THE CONVEYANCE TERMS. a. The Grantor agrees that it will, at Closing and by way of separate agreement, execute and deliver a general warranty deed conveying marketable title to the Property to Grantee, free and clear of all liens, encumbrances, encroachments and special assessments levied or assessed. b. The Grantee agrees to use the Property for operation of a District 70 public charter school and to commence construction of the new school facility on the Property no later than December 31, c. If Grantee fails to commence and complete construction of the new school facility on the Property by December 31, 2023, ownership of the Property shall automatically revert to Grantor. 2. DEDICATIONS AND EASEMENTS. After the date of this MOU, Grantor agrees to not dedicate, gift, transfer, mortgage or convey any interest in the Property without written consent from the Grantee, which may be withheld for any reason. 3. TESTS. The Grantor shall, upon the execution of this MOU, promptly furnish to the Grantee, any and all documents or reports which each party has in its possession which cover all or any portion of the Property to be conveyed with regard to any previous environmental audit, a professional wetlands delineation, professional floodplain analysis, survey, grading and soil tests (collectively Tests ). Grantee shall have ten (10) days from the date of receipt of the Tests to declare this MOU null and void and if this option is exercised, then the parties shall have no further obligations under this MOU. If the Grantee determines additional
2 information or tests are needed the Parties will cooperate to complete these tests, but the Grantee will, in any case, bear any of the costs associated thereto. 4. TAXES. Real estate taxes, if any, on the Property prior to the date of Closing shall be paid by Grantor. Real estate taxes, if any, on the Property after the date of Closing shall be paid by Grantee. The taxes, if any, for the year of the date of Closing shall be prorated based upon the then most current property valuations and upon the most current tax rate as determined by law. 5. CLOSING. Closing shall occur at a time mutually agreed to by the parties no later than December 31, 2020, or at a mutually agreed upon extended deadline, otherwise this MOU will become null and void and of no effect on either party. 6. RISK OF LOSS. Risk of loss or damage to the Property shall rest with Grantor until the time of delivery of possession. 7. NO REAL ESTATE COMMISSION AND FINDER'S FEE. The parties agree that no party hereto shall be liable for any real estate broker s commission, agent's commission, or finder's fee, in connection with the transaction contemplated by this MOU. Each party warrants to the other party that it shall indemnify and hold harmless for any and all claims of any person for broker's or agent's commissions or finder's fees in connection with this transaction. 8. CONDITION OF PROPERTY. Grantee acknowledges that its representatives or agents have examined the Property prior to entering into this MOU. This MOU is based upon Grantee s inspection of the Property and not upon any representation or warranties or conditions by Grantor s agents. Grantee acknowledges Grantor is conveying the Property on an "as-is" basis, except for the warranties and representations as provided in this MOU and the warranties in the general warranty deed. 9. DEFAULT. Time is agreed to be of the essence. In the event either party fails to comply with any of the material terms hereof, then the other party may declare a default and seek any remedy at law or in equity without notice or demand, including specific performance. 10. ASSIGNMENT. Grantee shall not assign any portion of its rights hereunder without written consent of Grantor. 11. SEVERABILITY. If any non-economic mutual term or provision of this MOU or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable, the remainder of this MOU or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this MOU shall be valid and enforced to the fullest extent permitted by law.
3 12. FURTHER ASSURANCES. The Parties agree to use their best efforts in cooperation to carry out the intent of this MOU. 13. INTERPRETATIONS. Any uncertainty or ambiguity existing herein shall not be interpreted against either party because such party prepared any portion of this MOU, but shall be interpreted according to the application of rules of interpretation of contracts generally. 14. ENTIRE AGREEMENT. This MOU contains the entire MOU of the parties relating to the transaction contemplated hereby, and all prior or contemporaneous MOUs, understandings, representations, warranties and statements, oral or written, are merged herein. This MOU cannot be modified or altered unless reduced to writing and consented to by all the undersigned parties. 15. NOTICE AND DEMANDS. Notice, demand, or other communication mandated by this MOU by either party to the other shall be sufficiently given or delivered if it is sent by registered or certified mail, postage prepaid, return receipt requested, or delivered personally to the Party. 16. EXECUTION IN COUNTERPARTS. This MOU may be executed in two or more counterparts, each of which shall be an original but all of which shall constitute one and the same instrument. 17. GOVERNING LAW. All aspects of this MOU shall be governed by the laws of the State of Colorado. 18. SUCCESSORS AND ASSIGNS. This MOU shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legatees, devisees, personal representatives, successors and assigns. IN WITNESS WHEREOF, the Grantor and the Grantee have caused this MOU to be executed by their respective officers thereunto duly authorized, Pueblo West Metropolitan District, as grantor By Name Title Pueblo School for Arts and Sciences, as grantee
4 By Name Title EXHIBIT A [insert property description]
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7 RESOLUTION A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN PUEBLO SCHOOL FOR ARTS AND SCIENCES AND THE PUEBLO WEST METROPOLITAN DISTRICT PUEBLO WEST METROPOLITAN DISTRICT WHEREAS, the District owns a tract of land ( School Property ) more specifically described in Exhibit A attached hereto; and WHEREAS, the District owned School Property originally contained a use restriction that the land be set aside for the sole benefit of School District 70 at no cost to School District 70; and WHEREAS, Pueblo School for Arts and Sciences ( PSAS ), under the authority of District 70, desires to construct and occupy a school on the School Property; and WHEREAS, the Board of Directors believes it to be in the best of the District to convey the School Property to PSAS for the sole purpose of constructing a new District 70 school facility thereon; and WHEREAS, the District and PSAS have agreed upon a Memorandum of Understanding (MOU), attached hereto, which shall commence on the date the MOU is signed by the parties; and WHEREAS, the Board of Directors of the District believes it is in the best interests of the District to approve and enter into the attached MOU. THEREFORE, BE IT RESOLVED by the Board of Directors of the Pueblo West Metropolitan District that the Memorandum of Understanding (a copy of which is attached to this Resolution with Exhibits), be and hereby is approved; and BE IT FURTHER RESOLVED that the President of the Board of Directors, or her designee, is authorized to execute the Memorandum of Understanding on behalf of the District. * * * * * * * * * * * * I hereby certify that the foregoing is a full, true and correct copy of a resolution duly passed and adopted at a regularly held meeting of the Board of Directors of the Pueblo West Metropolitan District on the day of December, 2016, by the following vote: AYES, and in favor thereof, Directors: NOES, Directors: ABSENT, Directors: Secretary (SEAL)
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