12-58 - R TOWN OF PROSPER, TEXAS RESOLUTION NO. 1,2_5g
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, AMENDING RESOLUTION NO. 12-53 FOR THE
SOLE PURPOSE OF ESTABLISHING THE POSSIBLE SOURCE(S) OF
FUNDING THAT THE TOWN OF PROSPER MAY UTILIZE TO
PURCHASE THE REAL PROPERTY MADE THE SUBJECT OF THE
REAL ESTATE PURCHASE CONTRACT, BY AND BETWEEN THE
TOWN OF PROSPER, TEXAS AND SEXTON FARMS, LTD., A TEXAS
LIMITED PARTNERSHIP; PROVIDING FOR REPEALING, SAVINGS
AND SEVERABILITY CLAUSES; AND PROVIDING AN EFFECTIVE
DATE.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1: Amendment to Resolution No. 12-53. The Town Council ("Town
Council") of the Town of Prosper, Texas ("Town") hereby amends Resolution No. 12-53
for the sole purpose of establishing the possible source(s) of funding that the Town may
utilize for the purchase ("Purchase") of the real property ("Property") made the subject of
Resolution No. 12-53. The following is the Town's intended source of funding for the
Purchase of the Property:
A. Down Payment at Closing. The Town intends to use funds received from
a grant for parkland, or a portion thereof, as well as cash; and
B. Two (2) Installment Payments. With regard to funding the two (2)
installment payments, evidencing the full payment of the Purchase of the
Property, the Town may use one or more of the following sources:
(i) General Obligation Bonds, Series 2012, issued and sold, or to be
issued and sold, pursuant to a Town election ("Election") held on
May 14, 2011, approving five (5) propositions, totaling
$25,040,000.00. Proposition 4 ("Proposition 4") of the Election
provided "Purpose of designing, constructing, improving and
equipping parks, trails and recreational facilities and a park
administration facility, and the acquisition of land and interests in
land for such purposes [emphasis added]", as evidenced by
Ordinance No. 12-14, attached hereto as Exhibit "A" and
incorporated herein for all purposes ("Ordinance"). Pursuant to the
Ordinance, of the $6,200,000.00 approved for Proposition 4,
$320,000.00 has been issued, leaving a balance of unissued
designated funds in the amount of$5,880,000.00; and/or
Resolution Amending Resolution No. 12-53(Sexton Farms Real Estate Purchase-Funding) Page 1 of 34
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(ii) Undesignated funds from the Parkland Dedication fees collected
pursuant to Town Ordinance No. 12-22, as amended.
SECTION Savings/Repealing Clause. Resolution No. 12-53 shall remain in
full force and effect, except as amended by this or any other Resolution. All provisions
of any resolution in conflict with this Resolution are hereby repealed; but such repeal
shall not abate any pending matters of the repealed resolution. Any remaining portions
of conflicting resolutions shall remain in full force an effect.
SECTION 3: Severability. Should any section, subsection, sentence, clause or
phrase of this Resolution be declared unconstitutional or invalid by a court of competent
jurisdiction, it is expressly provided that any and all remaining portions of this Resolution
shall remain in full force and effect. The Town hereby declares that it would have
passed this Resolution, and each section, subsection, clause or phrase thereof
irrespective of the fact that any one or more sections, subsections, sentences, clauses,
and phrases be declared unconstitutional or invalid.
SECTION 4: Effective Date This Resolution shall take effect immediately from
and after its passage,
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS on this )ii444eay of August, 2012.
L -, IJ
R,Y SW H, Mayor
ATTEST TO:
X'
idt:
Amy Piukan , T.wn Secretary
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613677
08/15/2012 9 : 23AM (GMT-07 : 00)
P ' `� ADMINISTRATION
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Prosper is a place where everyone matters.
To: Mayor and Town Council
From: Amy Piukana, Town Secretary
CC: Lyle Dresher, Town Manager
Re: Town Council Meeting—August 14, 2012
Date: August 9, 2012
Agenda Item:
Consider and act upon Resolution No. 12-58, amending Resolution No. 12-53 for the sole
purpose of establishing the possible source(s) of funding that the Town of Prosper may utilize
to purchase the real property made the subject of the real estate purchase contract between
the Town of Prosper and Sexton Farms, Ltd. ("Real Estate Contract").
Description of Agenda Item:
As you know, the Real Estate Contract provides that the Town: (i) may purchase an Owner's Title
Policy; and (ii) must provide the Seller with a commitment for a Loan Policy. Lawyers Title, the
title company closing the transaction, has requested evidence of the Town's ability to fund the
purchase according to the payment terms set forth in the Real Estate Contract; therefore, the
Town Attorney recommended the Council consider and act upon the attached Resolution.
As a reminder, the Real Estate Contract provides for a purchase price of $3,905,000.00 and
requires: (i) that $800,000.00 of the purchase price be paid as a down payment at closing; and (ii)
with the balance of the purchase price being paid in two (2) equal installments, the first of which
being due and payable on the two-year anniversary of the closing date (which is anticipated to
occur in mid-October 2012) and the second of which being due and payable on the four-year
anniversary of the closing date.
Attached Document:
Resolution No. 12-58
Town Staff Recommendation:
Town staff recommends that the Town Council approve Resolution No. 12-58, amending
Resolution No. 12-53, for the sole purpose of establishing the possible source(s) of
funding that the Town may utilize for the purchase of the real property made the subject
of Resolution No. 12-53.
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