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11-15-2004 (City Council) Agenda Packet NOTICE OF MEETING WYLIE CITY COUNCIL AGENDA NOVEMBER 15, 2004 6:00 p.m. Wylie Municipal Complex—Council Chambers/Council Conference Room 2000 State Highway 78 North Wylie, Texas 75098 .................. CALL TO ORI#ER INV'( CATION EDGE Off"AL EGIAl C L. UTI E;SE IO Recess into Closed Session in compliance with Section 551.001, et.seq., Texas Government Code,to wit: Section 551.072. To deliberate the purchase, exchange, lease or value of real property generally located at: • Brown and 1378 RECONVENE:1�NT�>�C11'El�i Take any action as a result of the Executive Session, including but not limited to: Consider and act upon authorizing the City Manager to enter into an Agreement with the Trust for Public Land for the purchase of land generally located at Brown and 1378. ADJOURI I LENT;.; . In addition to any specifically identified Executive Sessions,Council may convene into Executive Session at any point during the open meeting to discuss any item posted on this agenda. The Open Meetings Act provides specific exceptions that require that a meeting be open. Should Council elect to convene into Executive Session, those exceptions will be specifically identified and announced. Any subsequent action,as a result of this Executive Session,will be taken and recorded in open session. I certify that this Notice of Meeting was posted on this 12th day of November,2004 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media contacted. As a courtesy,this agenda is also posted to the City of Wylie Website at www.ci.wylie.tx.us Carole Ehrlich,City Secretary Date Notice Removed The Wylie Municipal Complex is Wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's office at 972/442-8100 or TD 972/442-8170. AGREEMENT OF PURCHASE AND SALE This is an Agreement with an Effective Date as provided below between THE TRUST FOR PUBLIC LAND, a nonprofit California public benefit corporation authorized to do business in Texas as TPL-Texas, Inc. ("Seller") and THE CITY OF WYLIE,TEXAS, a ("Buyer"). RECITALS: A. The addresses and telephone numbers of the parties to this Agreement are as follows. Telephone numbers and email addresses are included for information only. SELLER: BUYER: The Trust for Public Land The City of Wylie 3060 Bank One Center 2000 Highway 78 North 1717 Main Street Wylie, TX 75098 Dallas, TX 75201 Attn: Mark Roath Attn: Paul Lehner Tel: (972) 442-8124 Tel: (214) 741-3600 Fax: (972) 442-4302 Fax: (214) 741-2108 mroath@ci.wylie.tx.us p jl.lehner cr,tpl.org With copies to: With copies to: The Trust for Public Land Mr. Richard M. Abernathy, Esq. 2610 University Avenue, Suite 300 Abernathy, Roeder, Boyd&Joplin St. Paul, MN 55114 1700 Redbud Boulevard, Suite 300 Attn: Mike Zender McKinney, Texas 75069-9003 Tel: (651)999-5319 Tel: (214) 544-4002 Fax: (651) 917-2248 Fax: (214) 544-4040 mike.zender@tpl.org RAbernathva;ABERNATHY-LAW.com 1 B. Frances Bates Wells("Current Owner")is the owner of certain real property located in the City of Wylie,County of Collin,State of Texas legally described on Exhibit A attached hereto and made a part hereof. Said real property, together with any and all improvements, fixtures, minerals,timber,water located thereon and any and all rights appurtenant thereto including but not limited to timber rights,mineral rights,water rights,grazing rights and access rights shall be referred to in this Agreement as the"Property"or the"Subject Property." Notwithstanding the foregoing, Current Owner shall retain certain of the mineral rights, as further described in Section 31 of this Agreement. C. Seller has proposed to acquire the Property from Current Owner. D. Buyer wishes to purchase the Property from Seller and Seller wishes to sell the Property to Buyer upon Seller's acquisition of the Property from Current Owner in accordance with the terms and conditions set forth in this Agreement. NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Purchase and Sale. Seller agrees to sell to Buyer and Buyer agrees to buy from Seller the Subject Property on the terms and conditions set forth herein. 2. Purchase Terms. (a) Price. The purchase price (the "Purchase Price") for the Subject Property shall be Six Million Thirty-Six Thousand Seven Hundred Ten and 00/100 Dollars ($6,036,710.00). (b) Method of Payment. The Purchase Price shall be payable in cash,at Closing (as defined below),subject to any credits,prorations and adjustments provided elsewhere in this Agreement. 3. Buyer's Deposit. Concurrently with the execution of this Agreement,Buyer shall deposit with Escrow Holder (as hereinafter defined) the amount of Five Thousand and 00/100 Dollars ($5,000.00) (the "Deposit"). The Deposit shall be credited toward the Purchase Price at Closing, as defined below. In the event that this Agreement is terminated for any reason other than (i) Seller's failure to deliver the Subject Property as agreed upon herein, or (ii) Buyer elects to terminate this Agreement in accordance with Sections 4,6 or 24,the Deposit shall be paid to Seller, without thereby waiving Seller's remedies provided in Section 13 of this Agreement,which shall be Seller's sole and exclusive remedies hereunder. 4. Condition of the Subject Property. (a) Buyer agrees that from the Effective Date through, to and including September 30, 2004 (the"Inspection Period"), Buyer will: 2 (i) make an independent investigation of the physical condition of the Subject Property including but not limited to,the condition of the soil,the presence of hazardous materials or contaminants, other physical characteristics, and compliance with any statutes, ordinances or regulations; (ii) study all aspects or circumstances of the Subject Property which Buyer deems material or relevant; and (iii) make all inspections and verifications which Buyer deems necessary for the completion of Buyer's due diligence review for the transactions covered by this Agreement. Buyer shall be solely responsible for conducting any inspections or tests required by law at its sole cost and expense. When available, Seller will provide Buyer with a Phase I Environmental Site Assessment prepared by Seller's consultant(the"EA Report"). Should Buyer determine in its sole discretion based on its investigation of the Subject Property and its review of the EA Report that the condition of the Subject Property is unacceptable to Buyer,prior to the expiration of the Inspection Period, Buyer shall so notify Seller in writing of its objections ("Objections"). In the event that Seller is unable to cause Buyer's Objections to be remedied,Buyer may elect to: (a)terminate this Agreement in which case Buyer shall have no obligation to purchase the Subject Property, and the parties' obligations hereunder shall terminate or (b) proceed to Closing, and accept title to the Property subject to such Objection(s) which are not remedied. Buyer's failure to make timely Objections will constitute a waiver of its rights to raise any Objections hereunder and Buyer will accept title to the Subject Property subject to such conditions. Buyer may not disclose any information,including environmental assessment reports,Buyer obtains through the investigations and inspections performed in accordance with this Section unless required to disclose such information pursuant to a court order or as otherwise required by law. Before entering upon the Subject Property to conduct the investigations provided for herein,Buyer shall notify Seller and Seller shall have obtained Current Owner's permission for Buyer to enter upon the Subject Property to conduct said investigations. Buyer hereby waives any liability, loss, cost, claim, action and/or suit against Current Owner and Seller which Buyer may suffer or incur as a result of Buyer's or its agents'presence on the Subject Property for the purpose of making the investigations provided for herein. If Buyer does any excavation, Buyer agrees to restore the Subject Property to its natural condition if Buyer's acquisition of the Subject Property is not consummated as contemplated by this Agreement. (b) Buyer agrees that Seller has made no representations or warranties with respect to the Subject Property except as set forth in this Agreement. (c) Buyer will not undertake any activity which will jeopardize Seller's efforts to 3 acquire the Subject Property. (d) Buyer agrees to accept the Subject Property"as is,"in its present condition and/or as otherwise required pursuant to the terms of this Agreement, subject to all reasonable use,wear and tear,and deterioration of any kind in,of,or to the Subject Property. 5. Closing. Final settlement of the obligations of the parties hereto shall occur on or before January 31,2005(the"Closing"). In addition,the Closing shall be delayed for any period of time that Seller is attempting to cause the cure of any objections raised by Buyer pursuant to Sections 4 or 6. This transaction shall be closed in escrow with Chicago Title Insurance Company, 5401 N. Central Expressway,Suite 280,Dallas,Texas 75205,Attn:Craig Penfold,(Tel:214/521-2424,Fax: 214/528-3425) ("Escrow Holder") in accordance with the general provisions of the usual form of deed and money escrow agreement then in use by Escrow Holder, with such additional special provisions inserted in said escrow agreement as may be required to conform with the terms and conditions of this Agreement. The cost of the escrow and closing fee shall be divided equally between Seller and Buyer. 6. Title. Seller shall by special warranty deed convey to Buyer its interest in the Subject Property; provided, however, Seller at its option may convey the Subject Property to Buyer by special warranty deed directly from Current Owner to Buyer, subject only to the following: (i) any federal, state or local laws, ordinances,regulations and/or orders whatsoever; (ii) liens for real estate taxes not yet due and payable and other taxes and assessments of any kind or nature assessed(not yet due and payable)with respect to the Subject Property; (iii) such other title objections and exceptions as may be waived or deemed waived by Buyer; (iv) the standard printed exceptions on the form of title insurance issued pursuant to Section 7; (v) the Agricultural Lease described in Section 30 hereof; and (vi) the mineral reservation in favor of Current Owner referenced in Section 31 hereof. The foregoing shall be referred to collectively as "Permitted Exceptions". Within ten (10) days following the Effective Date, Seller will deliver to Buyer a copy of the commitment for title insurance issued by Escrow Holder committing the company to issue an Owner's Policy insuring title to the Subject Property in Seller. Buyer may at its sole cost and expense obtain a title commitment from Escrow Holder committing the company to issue an Owner's Policy insuring title to the Subject Property in Buyer. On or before September 30, 2004, Buyer shall advise Seller in writing of any exceptions other than the Permitted Exceptions which Buyer will require to be removed on or before 4 Closing (such exceptions which are not Permitted Exceptions being hereafter referred to as "Impermissible Exceptions"). In the event Seller is unable to cause the removal of any such Impermissible Exceptions by Closing, Buyer may elect to: (a)terminate this Agreement in which case Buyer shall have no obligation to purchase the Subject Property, and the parties' obligations hereunder shall terminate, or (b) proceed with the purchase of the Subject Property and accept a policy of title insurance with the Impermissible Exceptions. If Buyer fails to notify Seller of any objection to exceptions in the time period provided herein,Buyer shall be deemed to have accepted all matters set forth in the title commitment and the same shall be deemed Permitted Exceptions. 7. Title Insurance. Buyer may, at its option, and its sole cost and expense procure a standard owner's policy of title insurance from the Escrow Holder insuring that title to the Subject Property is vested in Buyer upon Closing,subject only to the exceptions which are acceptable or are deemed acceptable pursuant to Section 6. 8. Seller's Promise not to Further Encumber. Seller shall not, without the prior written consent of Buyer,make any leases,contracts,options or agreements whatsoever affecting the Subject Property which would in any manner impede Seller's ability to perform hereunder and deliver title as agreed herein. 9. Seller's Representations. Seller makes the following representations: (a) At Closing, Seller will have the power to sell,transfer and convey all right,title and interest in and to the Subject Property in accordance with the terms and conditions of this Agreement. (b) Seller represents and warrants that it is not a"foreign corporation"as defined in Section 1445 of the Internal Revenue Code. Seller's United States Taxpayer Identification Number is 23-7222333. 10. Prorations, Closing Expenses and Fees. Real property taxes on the Subject Property shall be prorated as of the date of Closing based upon the latest available tax bill. If the Closing shall occur before the tax rate is fixed for the then current year,subsequent to Closing,when the tax rate is fixed for the year in which the Closing occurs, Seller and Buyer agree to adjust the proration of taxes and, if necessary, to refund or pay (as the case may be) such sums as shall be necessary to effect such adjustment. Special assessments, levied, pending or constituting a lien against the Subject Property, if any, shall be assumed by Buyer. Buyer shall be responsible for paying any additional taxes,penalties and interest,including but not limited to compensatory or roll back taxes,on the Subject Property arising from the termination of a preferential tax classification of the Subject Property payable as a result of the conveyance to Buyer. The escrow and closing fee(s) charged by Escrow Holder shall be shared equally by Seller and Buyer. Buyer shall pay the premium for any title insurance policy or endorsements required by Buyer. Other fees and charges not otherwise allocated in this Agreement,shall be allocated in accordance with the customary practice of Collin County, Texas. 5 11. Notices. All notices pertaining to this Agreement shall be in writing delivered to the parties hereto personally by hand,telecopier,courier service or Express Mail,or by first class mail, postage prepaid, at the addresses set forth in Recital A. All notices shall be deemed given when deposited in the mail,first class postage prepaid,addressed to the party to be notified;or if delivered by hand, telecopier, courier service or Express Mail, shall be deemed given when delivered. The parties may, by notice as provided above, designate a different address to which notice shall be given. 12. INTENTIONALLY OMITTED. 13. Remedies Upon Default. In the event Buyer defaults in the performance of any of Buyer's obligations under this Agreement,Seller shall,as its sole and exclusive remedies hereunder, have the right to (a)terminate this Agreement and retain the Deposit, or(b) specific performance against Buyer. In the event Seller defaults in the performance of any of Seller's obligations under this Agreement, Buyer shall, as its sole and exclusive remedies hereunder, have the right to (a) terminate this Agreement and receive a refund of the Deposit, or(b) specific performance against Seller. In no event shall Seller or Buyer be liable to the other for any damages suffered as a result of the breach of or default in any covenant or obligation under this Agreement. 14. No Broker's Commission. Each party represents to the other that it has not used a real estate broker in connection with this Agreement or the transaction contemplated by this Agreement. In the event any person asserts a claim for a broker's commission or finder's fee against one of the parties to this Agreement,the party on account of whose conduct the claim is asserted will hold the other party harmless from said claim. 15. Time of the Essence. Time is of the essence of this Agreement. 16. Binding on Successors. This Agreement shall be binding not only upon the parties hereto,but also upon their heirs,personal representatives, assigns,and other successors in interest. 17. Additional Documents. Seller and Buyer agree to execute such additional documents, including escrow instructions, as may be reasonable and necessary to carry out the provisions of this Agreement. 18. Assignment. Neither Buyer nor Seller may assign its interests under this Agreement without the written consent of the other party. 19. Entire Agreement; Modification; Waiver. This Agreement constitutes the entire agreement between Buyer and Seller pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations, and understandings. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all the parties. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a 6 waiver of any other provision,whether or not similar,nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 20. Counterparts. This Agreement maybe executed in counterparts,each of which shall be deemed an original and which together shall constitute one and the same agreement. 21. Severability. Each provision of this Agreement is severable from any and all other provisions of this Agreement. Should any provision(s) of this Agreement be for any reason unenforceable,the balance shall nonetheless be of full force and effect. 22. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. 23. Acceptance of Deed. The acceptance by Buyer of the deed shall be deemed to be full performance by Seller of,and shall discharge Seller from,all obligations hereunder and Seller shall have no further liability hereunder. 24. Risk of Loss. All risk of loss shall be with Seller until Closing. In the event the Subject Property is destroyed or damaged prior to Closing,Buyer shall have the right at its option to terminate this Agreement by written notice to Seller,in which case this Agreement shall terminate, and the parties shall have no further obligation to each other hereunder. 25. Condemnation. In the event of a taking of all or any part of the Subject Property under the power of eminent domain prior to the Closing, Buyer shall proceed to Closing with an assignment by Seller of all Seller's right, title and interest in and to any and all such awards and proceeds. 26. Possession. Seller shall deliver possession of the Subject Property concurrently with Closing in accordance with Section 4(d), Section 6 and Section 30. 27. Buyer's Representation. Buyer represents that it has full power and authority to enter into this Agreement and the person signing this Agreement for Buyer has full power and authority to sign for Buyer and to bind it to this Agreement. 28. Miscellaneous. In the event that any of the deadlines set forth herein end on a Saturday,Sunday or legal holiday,such deadline shall automatically be extended to the next business day which is not a Saturday, Sunday or legal holiday. The term "business days" as may be used herein shall mean all days which are not on a Saturday, Sunday or legal holiday. 29. Seller's Contingency. Buyer acknowledges that Seller does not presently own the Subject Property and that Seller's duties hereunder and Buyer's rights hereunder are both expressly contingent upon the acquisition by Seller of the Subject Property. In the event Seller does not acquire the Subject Property from Current Owner this Agreement shall terminate,Seller shall instruct 7 Escrow Holder to return the Deposit to Buyer, and thereafter neither party shall have any further obligations hereunder. 30. Agricultural Lease. Buyer acknowledges and Seller represents that the Property is subject to a lease for agricultural purposes with Ben Scholz dated July 14, 1989,which is attached hereto as Exhibit B (the "Agricultural Lease"), which Agricultural Lease can be terminated in accordance with its terms effective on July 1,2005. At Closing,Seller shall assign and Buyer shall assume Seller's right,title and interest as landlord under the Agricultural Lease,and the parties will prorate any rents which are due as of the date of Closing. Seller agrees that Seller shall not modify or amend the Agricultural Lease without Buyer's written approval. After Closing,Buyer is free to modify,amend,revoke or terminate the Agricultural Lease in accordance with its terms,in Buyer's sole discretion. 31. Mineral Rights. At the Closing between Seller and Current Owner,Current Owner and Current Owner's successors in interest will reserve and retain eighty percent(80%)of the rights to the oil,gas and other minerals associated with the Property,with Seller and Seller's successors in interest receiving twenty percent (20%) of such rights. The deed or other conveyance documents relating to the reservation from Current Owner shall also provide that Seller,and Seller's successors in interest shall receive the executive rights with respect to the exploration for and mining of such oil, gas and other minerals, which shall allow Seller and Seller's successors in interest to control whether and to what extent such exploration and mining occurs,and the manner and timing of such exploration and mining. At the Closing contemplated by this Agreement,Seller shall assign to Buyer and Buyer shall assume from Seller all such mineral and executive rights conveyed to Seller by Current Owner. IN WITNESS of the foregoing provisions the parties have executed and delivered this Agreement as of the date set forth below. The effective date (the "Effective Date") of this Agreement shall be the last date of execution by either of the parties to this Agreement. SELLER: BUYER: THE TRUST FOR PUBLIC LAND, a THE CITY OF WYLIE, a nonprofit California public benefit corporation authorized to do business in Texas as TPL-Texas, Inc. By) By: Name: M C. 2c..oler Name: Title: Rea,,,-a_v.i,.,s.eic...,d Ayr. fe � Title: Date: Sc.,' .n�e_e- Z4 zodl Date: 8 .�=Xr./i5/i ,q PROPERTY DESCRIPTION TRACT ONE 68. 711 ACRES BEING a tract of land situated in 'the J. W. Curtis Survey, Abstract No. '196, in Collin County, Texas, and being part of the called 102 acre tract of land described as- First Tract in deed to Clarinda . Mathews, recorded in Volume 270, Page 205 of the land records of Collin County, Texas, and being more particularly described as follows: BEGINNING at a 3/4" iron pipe found in the . west right-of-way line of Farm Market Road No. 1378 (variable width right-of-way) , being the southeast corner of a called 9. 994 acre tract 'of land described in deed to Deborah-J. Mulcahy, recorded in Collin County Clerk 's File .No . 93- 0073282 of, the Land Records of Collin 'County, Texas: THENCE with the west right-of-way line of said Farm Market Road No . 1378, as follows: South 01 °20 ' 16" East, a distance of 316. 59 feet to a 5/8" iron rod set with a. red plastic cap stamped "PBS&J" (hereinafter called 5/8" iron rod set) for corner: South 00 '26 '00" East, a distance of 889. 47 feet to a 5/8" iron rod set for corner: South 89 °34 '00" West, a distance of 10. 00 feet to a 5/8" iron rod set for corner: South 00 °26 '00" East, a distance of 426. 62 feet to a 5/8" iron rod set for .corner at the beginning of a tangent curve to the right, having a central angle of 47 '12 '00". a radius of 269. 53 feet and chord bearing and distance of South 23 '10 ' 00" West, 215.81 feet: Southwesterly with said curve, an arc distance of 222. 04 feet to a 5/8" iron rood set for corner; South 46 '46 '00 " West. a distance of 864. 60 feet to a 5/8" iron • rod set for corner; South 43 '14 '00" East, a distance of 9. 48 feet to a 5/8" iron rod set for corner; South 46 '06 '00" West, a distance of '364. 64 feet to a 5/8" iron rod set for corner at the intersection of the west right-of-way line of said Farm Market Road No. 1378 and the north right-of-way line of the Dallas Area Rapid Transit railroad (100 foot right- . of-way);: THENCE with the north right-of-way line of said Dallas Area Rapid Transit railroad, South 86 '42 '06" West, a distance of 310. 15 feet to a 5/8" iron 'rod set for corner in the east line of a called 148 acre ' tract of land described as First Tract in deed to J. L. Brand. Jr. , and Dorothy Si Green, recorded in Volume 4247, Page 2250 of the Land Records of Collin County, Texas; THENCE with the east line of said 148 acre tract, North 00 '00 '00" East. a distance of 2719. 79 feet to a 5/8" iron rod set in the south line of said 9. 994 acre tract; THENCE with the south line of said 9. 994 acre tract South 89 '08 '43" East, a distance of 1273. 51 ,feet to the POINT OF BEGINNING and containing68. 711 ACRES of land. • • PROPERTY DESCRIPTION TRACT TWO >65.733 ACRES BEING a tract of land situated in the J.W. Curtis Survey, Abstract No. 196 and the M. Milliron Survey, Abstract No. 563, in Collin County. Texas, and being part of the called 102 acre tract of land described as First Tract and the called 210.5 acre tract described as Second Tract - in deed to Clarinda Mathews. recorded in Volume 270. Page 205 of the land records of Collin County, Texas, and being more particularly • described as follows: BEGINNING at a 5/8" iron rod set with a red plastic cap stamped "P8S6J" (hereinafter called 5/8" iron rod set) in the south right-of-way line of Farm Market Road No. 3412 also known as Brown Street (80 foot right- of-way), being the northwest corner of a called 2.00 acre tract of land described in deed to John H. Ereckson and wife Glynda G. Ereckson, recorded in Collin County Clerk's File No. 92-0016862 of the Land Records of Collin County, Texas, from which a 1/2" iron rod found at the northeast corner of said 2.00 acre tract bears South 88 '02'00" East, a distance of 87. 14 feet: • THENCE with the west line of said 2.00 acre tract, South 02'07'22" West. a distance of. 762.36 feet to a fence post at the southwest corner of said 2.00 acre tract, being the northwest corner of a called 57.81 acre tract of land described in deed to J.R. Eaves, recorded in Volume 555. Page 339 of the Land Records of Collin County, Texas; THENCE with the west line of said 57.81 acre tract and with the west line of a called 1.931 acre tract of land referenced in Deed recorded in Volume 836, Page 200 of the Land Records of Collin County, Texas. South -02'55'59" West. at a distance of 429.64 feet passing a fence corner post at the northwest corner of a called 51.347 acre tract of land described in deed to Ralph Pinkus, recorded in Volume 836, Page . 200 of the Land Records of Collin County, Texas, and continuing along the west line of said 51.347.acre tract, a total distance of 901.66 feet to a 1/2" iron rod found at the southwest corner of said 51.347 acre tract, being the northwest corner of a called 38. 10 acre tract of land described in deed to Wylie Realty Investments, L.L.C., recorded in Volume 5042, Page 2944 of the Land Records of Collin County, Texas; THENCE with the west line of said 38. 10 acre tract, South 04'00'10" West. a distance of 1313.38 feet to a 5/8" iron rod set for corner in the north right-of-way line of the Dallas Area Rapid Transit railroad (100 foot right-of-way), being the southwest corner of said 38. 10 acre tract, from which a 1/2" iron rod found bears South 04 '00'10" West. a distance of 3.77 feet; THENCE with the north right-of-way line of said Dallas Area Rapid Transit railroad, as follows: North 80 '30'21" West. a distance of 2309. 17 feet to a 5/8" iron rod set for corner at the beginning of a tangent curve to the left, having a central angle of 12'47'33", a radius of 3352.42 feet and chord bearing and distance of North 86'54'07" West. 746.94 feet; Northwesterly with said curve, an arc distance of 748.56 feet to a 5/8" iron rod set for corner; South .86 '42'06" West. a distance of 231.93 feet to a 5/8" iron rod set for corner at the intersection of the north right-of-way line of said Dallas Area Rapid Transit railroad and the east right-of-way line of Farm Market Road No. 1378 (variable width right-of-way): • THENCE with the east right-of-way line of said Farm Market Road No. 1378, as follows: North 46 '06'00" East. a distance of 270.27 feet to a 5/8" iron rod set for corner; South 43 '14'00" East, a distance of 10.51 feet to a 5/8" iron rod set for corner; North 46'46'00" East, a distance of 651.34 feet to a 5/8" iron rod set for corner; North 43 '14'00" West, a distance of 10.00 feet to a 5/8" iron rod set for corner; North 46 '46'00" East. a distance of 213.26 feet to a 5/8" iron rod set for corner at the beginning of a tangent curve to the left, having a central angle of 47 '12'00". a radius of 359.53 feet and chord bearing and distance of North 23'10'00" East. 287.88 feet: • Northeasterly with said curve, an arc distance of 296. 18 feet to 5/8" iron rod set for corner; North 00 '26'00" West, a distance of 1314.70 feet to a 5/8" iron rod set for corner at the beginning of a non-tangent curve to the right, having a central angle of 92'58'22", a radius of 278.29 feet and chord bearing and distance of North 45'46'00" East. 403.64 feet; Northeasterly with said curve, an arc distance of 451.58 feet to a 5/8' iron rod set for corner in the south right-of-way line of said Farm Market Road No. 3412; THENCE with the south right-of-way line of said Farm Market Road No. 3412. South 88 '02'00" East. a distance of 2204.68 feet to the POINT OF BEGINNING and containing 165.738 ACRES of land. /0#7eFir `,"09 - ilue' (e. 3) PROPERTY DESCRIPTION TRACT THREE 19.201 ACRES • BEING a . tract of land situated in the M. MilIiron Survey, Abstract No . 563 in Collin County, Texas, and being part of the called 210. 5 acre tract described as Second Tract in deed to Clarinda Mathews, recorded in Volume 270, Page 205 of the land records of Collin County. Texas, and being more particularly described as follows: BEGINNING at a fence corner in the north right-of-way line of Farm Market Road No. 544 (120 foot right-of-way) , in deed to the State of Texas, recorded in Volume 1344, Page 449 of. the Land Records of Collin County, Texas, being the southwest corner of a called 7. 585 acre tract of land described in deed to J-8 Blakey Investments, recorded in Collin County Clerk 's File No. 98-0005235 of the Land Records of Collin County, Texas, being in a curve to the right, having a central angle of 5 °13 '22", a radius of 5669. 58 feet and chord bearing and distance of North 73 '06 '49" West, 516. 64 feet; THENCE with the north right-of-way line of said Farm Market Road No. 544, as follows: Northwesterly with said curve, an arc distance of 516. 82 feet to a 5/8" iron rod set with a red plastic cap stamped "PBS&J" (hereinafter called 5/8" iron rod set) for corner; • North 70 '30 ' 01 " West, a distance of 1150. 02 feet to a 5/8" iron rod set at the southeast corner of a called 6. 902 acre tract of land described in deed to R. Richard Parker, recorded in Collin County Clerk 's File No. 93-0094954 of the Land Records of Collin County, Texas; THENCE with the east line of said 6. 902 acre tract, North 16 °24 '48" West, a distance of 384. 23 feet to a 5/8" iron rod set in the southeast line of a tract of land described in deed to Texas Power and Light, recorded in Volume 575, Page 224 of the Land Records of Collin County, • Texas; THENCE with the southeast line of said Texas Power and Light tract, North 50 '12 '02" East, a distance of 14. 07 feet to a 5/8" iron rod set for corner in the south right-of-way line of the Dallas Area Rapid Transit railroad (100 foot right-of-way) ; , THENCE with the south right-of-way line of said Dallas Area Rapid Transit railroad, South 80 '30 '21 " East, a distance of 1745. 09 feet to a 60D nail found at the northwest corner of said 7. 585 acre tract; THENCE with the west line of said 7. 585 acre tract, South 03 '14 '52" West, a distance of 628. 02 feet to the POINT OF BEGINNING and containing 19. 201 ACRES of land. Bearing system based upon the. right-of-way lines of Farm Market Road No. 1378 (variable width right-of-way) . CROP-SHARE-CASH EARS LEASE This lease 3s entered in to this 14th day of �'uly, . 1983 k,tLbetween' Clor•insde Mathews (by Katherine power, p. S. A. :s , landlord, of 401 Ridge Crest Drive, Richardson, TX 75080 and Ben L. Scholz, tenant, 407 Br i erwoc:d, Wylie, TX 098. A. PROPERTY RIGHTS-- The landlord hereby leases to tenant, to occupy and use for agricultural and related purposes, the following-described property, herein-after referred to as the "farm" located in Collies County, State of Texas, and commonly known as the Mathews-Wylie . farm, and consisting of 286 acres, more or less, together with all buildings and improvements thereon and all rights there to except as specified below: 1. Reservation of land and buildings- The landlord reserves the right to use the following land and buildings for the following purposes: to lease to above named tenant_ E. Right of entry--The landlord reserves the right of himself/herself, his agents, his employees, or his assigns to enter the farm at any reasonable time for purposes (a) of consultation with the tenant ; (b) of making repairs, improvements, and inspections; (c-) of developing mirser•aI resources; and (d) after notice of terminations of the lease is givers, of plowing, seeding, fertilizing and such customary seasonal work, nc:rse of which is to interfere with the tenant in carrying out regular farm operations. 3. Transfer .of farm--If landlord should sell or otherwise transfer title to the farm, he will do so subject to the provisions of this lease. 4. Heirs and successor's-- The terms of this lease shall be binding upon the heirs, executors, administrators, and successors of both landlord and tenant in like mariner as upon the original parties. However, in event the lease is for more than one year, the heirs or successors of the tenant shall have the option to give written notice of terminations effective at the end of the lease year in which death occurs. 5, Right to lease--The. landlord warrants that he has the right to lease the farm, and will defend the tenant* s possession against any and all persons whomsoever. S. LAND USE AND LIVESTOCK PRODUCTION 1. Land use--The agreed-upon use of the land is for the following purpose: A. Crop production of grains. B. Grass productions for haying or grazing. EXHIBIT a • �p�yrs 2. Livestock pr'c•duction--The tenant on his own may engage in the productions of livestock at his expense. C. IMPROVING, CONSERVING, AND MAINTAINING THE FARM-- I. General maintenance--The tenant wiII maintains the farm during his tenancy irs as good condition as at the beginning,rsor'ma l wear arid. depreciations and damages from causes beyond the tenant' s control excepted. 2. Waste--The tenant will not commit waste on or damage to the farm and will use due care to prevent others from so doing. The tenant will promptly notify landlord of any • evidence of unauthorized dumping or disposal of potentially toxic acid/or hazardous materials on the property. 3. Fire protections--The tenant will not, without written consent of the landlord, house automobiles, motortr'ucks, or tractors in barns, or otherwise violate restrictions irs the landlord' s . insurance policy which restrictions the landlord shall make known to the tenant. 4. Replace Losses--The- landlord will replace or repair as promptly as possible the dwelling or any other building that may be destroyed or damaged by fire, flood, or other cause beyond the control of the tenant or make rental adjustments in lieu of replacements. 5 Maintenance of improvements-- The tenant will keep the buildings, fences, and other improvements. on the farm in as good repair and condition as they are when he takes possession and irs as good repair and condition as they may be put during the terms of the lease, ordinary wear and tear, loss by fire, or unavoidable depreciation or destruction excepting. 6. Add improvements--The tenant will not, without written consent of the landlord, (a) erect or permit to be erected on the farm any rsonremcrvable structure or building, or (b) incur any expense to the landlord for such purpose, or (c) add electrical wiring, plumbing, or heating to any buildings, and, if consent is givers, he will make such additions meet standards and requirements of power and insurance companies. 7. Conservation practices-- The tenant will control • soil erosion as completely as is practicable. 5. Conservation structures--The tenant will keep in good condition as at the beginning of this agreement, all terraces, open ditches, and inlets and outlets of tile drains, preserve all established water-courses or ditches including grass waterways when seed and fertilizer are furnished by the landlord, and refrains from any operations or practice that will injure them. S. Compensation for improvements-- The two parties will carry out new conservation practices and measures and make other improvements, and share contributions and costs necessary for completion of such practices and improvements as set forth below. The tenant will be reimbursed by the landlord when the practice, measure, or improvement is completed. 1 O. Removable improvements—Minor improvements of a temporary or removable nature which do not mar the condition or appearance of the farm may be made by the tenant at his own expense. The tenant may at any time this lease is irs effect, or within a reasonable time. thereafter, remove such improvements, provided he .leaves in good condition that part of the farm from which they are removed. 11. Compensation for damages--When the tenant leaves the farm he will 'pay the landlord reasonable compensation for any damage to the farm for which the tenant is responsible, except ordinary wear and depreciations and damages beyond the tenant' s. control. • D. SHARING COSTS AND RETURNS--All costs and ret urns shall be divided between landlord and tenant as provided below, unless otherwise specifically stated elsewhere irs this lease: 1. Rental rates--The tenant agrees to pay as rent the shares or quantities of crops and cash as indicated by the following: A. gross receipts received from sales of grain crops will be shared 1/3 Landlord and E/3 tenant. B. 65 acres of grassland will be cash leased. C. balance of acres in this farm are available for tenant use at no change with this agreement. E. Expenses--Expenses, including investments in • personal property, shall be supplied by tenant, except as indicated in section C and except as follows: A. for grains crops, fertilizers, pesticides, and their . application costs : combine harvesting and hauling grain costs will be shared 1/3 landlord and 2/3 tenant. B. for grassland--all expenses incurred are those of the tenant. E. TERM OF LEASE 1. Term—The term of this lease shall be threet3) years from July 1, 1989, to July 1, 139E, and this lease shall continue in effect from year to year thereafter until written notice of termination is given -by either party to the other at least 3 month (s) before expirations of this lease or any. renewal. E. Continuous occupancy--The tenant agrees that he/she or his agent will possess and occupy the farm continuously during the term of the lease. 3. Surrender of possessions--The tenant agrees to surrender possession and occupancy of the premises peaceably at the termination of the lease. 4. Review of lease--A rsquest for general review of the lease may be made at least ___ __days prior to the final date for giving notice to terminate this lease. Amendments and alterations to this lease shall be made in writing. E. MISCELLANEOUS PROVISIONS 1. No partnership created--This lease shall not be deemed to give rise to a partnership relation, and neither _ party shall have authority to obligate the other without written consent, except as specifically provided in this lease. 2. Government programs- The farm wi 11 be operated in compliance with Government programs as follows: • The tenant .will be given power of attorney for all government programs pertaining to operation of the farm. 3. Debts and accidents--Each party agrees that the other party shall in no way be responsible for the debts of, or liabilities for accidents or damages caused by, the other party. 4. Willful neglect--Willful l neglect, failure, or refusal by either party to carry out any substantial provision of this lease shall give the other party the benefits of any proceedings provided by law. 5. Farm records--The tenant agrees to keep financial and production records of all income and expenses of mutual interest, which records shall be acessible to the landlrdat all times. Accounts between the two parties shall besettled on or about 15 days following actual date incurred. G. flr•bitratiors of differences-- Any differences between the parties as to their several rights_ and obligations under this lease that are not settled by mutual agreement after thorough discussion, shall be submitted for arbitration to a committee of three disinterested persons, one selected by each party hereto and the third by the two thus selected, and the committee' s decision shall be accepted by both parties. ��; 7. Additional Agreements: . i&I'-/�' $', fl separate lease for 65 acre parcel of grass land wi I l,�_ �' be at $ . 5QVacre/year• due the first day of March each year. IN WITNESS WHEREOF, the parties have signed this_ lease; on the 011 date first above written. eb: .1. L [ 7' - 'g4- eL. ),,._=; 4.; La•rsdlord) Clfrinda Mathews '-' 1.(9 /CS U-41 frIX/' .tr-( ,__..t. / ' ,4'0/ 471--- h ./1 effant) en L. `' s ,1 s /