Board of Directors

AGENDA SPECIAL-CALLED MEETING SILOAM SPRINGS BOARD OF DIRECTORS JULY 9, 2025 BOARD MEETING / 5:00 PM Call to Order Roll Call I. Resolution 26-25 / Purchase of Old Post Office / Phat Tire II. Adjournment  STAFF REPORT TO: Board of Directors FROM: Christina Petriches, Interim City Administrator DATE: June 18, 2025 RE: Resolution 26-25 / Purchase of Old Post Office / Phat Tire Recommendation: Approve the purchase of the Old Post Office currently Phat Tire from CBTR Outdoors for $849,000 if the appraisal is at least 90% of the asking price. Purpose: The City has the option to purchase property before the it can be offered to anyone else. The selling price for that property as listed is $849,000. The property is being appraised with the value to be provided to staff by 07/09/2025. If the City would like to exercise the repurchase option, it must give written notice of its intent to do so within 30 days (July 11th), and such notice is binding and irrevocable. Fiscal Impact: The funds for this purchase will come from general fund reserves. Staff will bring forward a budget amendment at year end to accommodate the purchase. Attachments: Resolution No. 26-25 Purchasing Contract  CONTRACT TO PURCHASE REAL ESTATE This Contract to Purchase Real Estate (“Contract”) is entered into between CBTR Outdoors, LLC (“Seller”) and City of Siloam Springs and/or assigns, (“Buyer”). SECTION 1: AGREEMENT TO PURCHASE Seller agrees to sell the land in Benton County, Arkansas, described below to Buyer: Lots #7 and #8, Block 23, in the City of Siloam Springs, Benton County, Arkansas, excepting there from 8 feet of even width off the west side end of side lots, formally deeded to the City of Siloam Springs, Arkansas, for sidewalk purposes, as per the plat on record in the office of the Recorder of said County. The West Fifteen (15) feet of Lots 1 and 2, Block 23, Siloam Springs Property. AND A tract of land lying and being in the City of Siloam Springs, Benton County, Arkansas particularly described as follows: Beginning at a concrete monument set in the southeast corner of the present Post Office site in Siloam Springs, Arkansas, said monument also being in the south line of Lot 2, Block 23 of the Original Town of Siloam Springs, Arkansas, and in the north line of an alley 20 feet wide; running thence North 00 degrees 42 minutes East along the east boundary of said lands of the United States a distance of 58 feet to a point, being a brass pin set in a concrete monument; thence South 89 degrees 18 minutes East a distance of 72 feet to a point, being a brass pin set in a concrete monument set in the west line of South Maxwell Street; thence South 00 degrees 42 minutes East along the west line of South Maxwell Street a distance of 58 feet to a point, being a brass pin set in a concrete monument in the north line or of the 20-foot alley; thence North 89 degrees 18 minutes West along the north line of said alley a distance of 72 feet to the point or place of beginning, containing 4,176 square feet, more or less; being the South 58 feet of the East 72 feet of Lot 2, Block 23 of the Original Town of Siloam Springs, Arkansas, as shown on a plan prepared by Fred W. Olney, Professional Service Contractor, dated March 12, 1962, a copy of which is attached hereto and by reference made a part hereof. AND A tract of land lying and being in the City of Siloam Springs, Benton County, Arkansas, particularly described as follows: Beginning at a point in the Southerly side of East Central Street (formerly Ninth Street), said point being the Northeast Corner of the present Post Office site in Siloam Springs; running thence in an eastwardly direction along the Southerly side of East Central Street (formerly 1 Ninth Street) a distance of 28 feet to a point; thence in a Southwardly direction a distance of 120 feet to a point in the Northerly side of a 20-foot public alley; thence in a Westwardly direction along the Northerly side of said alley a distance of 28 feet to a point, being the Southeast Corner of the present Post Office site; thence in a Northwardly direction along the Easterly boundary of the Post Office side a distance of 120 feet to the point or place of beginning; being the West 28 feet of Lots 1 and 2, Block 23, Original Town of Siloam Springs, Benton County, Arkansas. ACREAGE: Approximately .045 acres. SECTION 2: PURCHASE PRICE AND EARNEST MONEY Buyer agrees to pay to Seller the sum of $849,000.00 (Purchase Price) and Buyer agrees to pay the sum of $0.00 (“Earnest Money”), which shall be nonrefundable but shall be applicable to the purchase price in the event of purchase. Seller acknowledges receipt of the Earnest Money which was received at the time Seller executed this Contract. The Purchase Price shall be paid by certified funds or a wire transfer. SECTION 3: CONDITIONS TO PURCHASE Buyer’s obligation to purchase the Property is subject to Buyer receiving good and marketable title. SECTION 4: INSPECTION PERIOD Buyer shall have a ten (10) day inspection period. The inspection period shall commence upon the date Seller signs this Contract. SECTION 5: CLOSING DATE The closing date shall be within thirty (30) days from the end of the inspection period. The closing shall occur at [INSERT TITLE COMPANY NAME], Siloam Springs, Arkansas. SECTION 6: CLOSING COSTS Seller shall pay for the Title Commitment and Title Insurance Policy, one-half of the Real Estate Transfer Tax, one-half of the Closing Agent’s fee, the deed preparation, and Seller’s attorney fees. Buyer shall pay for the Survey, if any, one-half of the Real Estate Transfer Tax, one-half of the Closing Agent’s fee, all recording fees, and Buyer’s attorney fees, and other fees incurred by Buyer. 2 SECTION 7: TITLE Seller shall obtain a Title Commitment. Seller shall pay for the Title Commitment and the Title Insurance Policy in the face amount of the Purchase Price. Buyer may obtain a Survey at Buyer’s cost. Once Buyer has obtained the Title Commitment and Survey, if any, Buyer shall have ten (10) days to notify Seller of any defects associated with Title to Sellers’s Property. Seller shall have up to thirty (30) days to cure or remedy any such defect in Title. If Seller fails or refuses to cure any Title defect, Buyer may either terminate this Contract or waive the Title defect or defects and purchase the Property. SECTION 8: POSSESSION Seller shall deliver possession of the Property as of closing. SECTION 9: TAXES AND ASSESSMENTS Real estate taxes and assessments shall be prorated to the date of closing. Seller shall be responsible for paying all real estate taxes and assessments which are due on or have accrued prior to closing. SECTION 10: RIGHT TO ASSIGN Buyer shall have the right to assign this Contract without Seller’s consent. SECTION 11: NOTICES Any notice or consent required to be given hereunder shall be deemed to have been duly given when reduced to writing, delivered by United States Certified Mail, Return Receipt Requested, postage prepaid or by personal delivery as evidenced by a receipt of delivery and addressed as follows: SELLER: CBTR Outdoors, LLC BUYER: City of Siloam Springs 125 W. Central Ave. PO Box 80 Bentonville, AR 78712 Siloam Springs, AR 72761 Either party may change its address as set forth above, so long as that party notifies the other party of the change of address within five (5) days from the date the address has been changed. -3- SECTION 12: BINDING EFFECT This Contract is binding upon and shall inure to the benefit of the parties executing this Contract and their respective successors, assigns, executors, and personal representatives. SECTION 13: AMENDMENT This Contract cannot be amended except by written instrument executed by both parties. SECTION 14: DEFAULT In the event Seller defaults in the performance of its obligations under this Contract or refuses to transfer the Property, Buyer shall have all remedies available to it under Arkansas law including the right of specific performance. In the event Buyer fails to perform its obligations under this Contract and refuses to close, then Seller’s remedies are retention of the Earnest Money and all other remedies available under Arkansas law. SECTION 15: EFFECTIVE DATE The effective date of this Contract is the date upon which Seller signs the Contract. Seller shall have five (5) business days from the date the Contract is signed by Buyer to sign the Contract, otherwise, the Contract terminates. SECTION 16: RISK OF LOSS Until closing, the risk of loss for damage to the Property remains with Seller. This Contract has been read by both parties and signed on the date set forth below. SELLER: BUYER: CBTR Outdoors, LLC City of Siloam Springs, Arkansas By: ____________________________________ By: ____________________________________ Name: Tim Robinson Name: Judy Nation Title: President Title: Mayor Date: __________________________________ Date: __________________________________ -4-  Representation of property being purchased NORTH BLOCK23 I I I I I I I LOT I I LOT 1 I I I I ------------------------+-------�--------------' I I I l I I I I LOT7 I I LOT2 I I I - 15.00 � HinOS  r··, j I' ll I � ·,__ 1 _.- j_ I -' J [__,._I ;.. ;��- i\: !' I•  RESOLUTION NO. 26-25 A RESOLUTION BY THE BOARD OF DIRECTORS OF THE CITY OF SILOAM SPRINGS, ARKANSAS, TO ENTER INTO A CONTRACT TO PURCHASE PROPERTY LOCATED AT 101 SOUTH BROADWAY, SILOAM SPRINGS, ARKANSAS, FROM CBTR OUTDOORS, LLC Whereas, the City of Siloam Springs desires to exercise the first right to purchase as set forth in the Commercial Purchase and Sale Agreement between the City and CBTR Outdoors, LLC, and to purchase property located at 101 South Broadway, Siloam Springs, Arkansas, owned by CBTR Outdoors, LLC; and Whereas, the cost for the purchase of said property located at 101 South Broadway is $849,000.00, plus normal closing costs; and NOW, THEREFORE BE IT RESOLVED by the Siloam Springs Board of Directors that: Section 1: The City of Siloam Springs, Arkansas, shall contract with CBTR Outdoors, LLC, for the purchase of the property located at 101 South Broadway, Siloam Springs, Arkansas, for the purchase price of $849,000.00, plus normal closing costs. Section 2: A copy of the Real Estate Contract is attached hereto. Section 3: The Mayor, Judy Nation, and City Clerk, Jene’ Fain, are hereby authorized by the Board of Directors for the City of Siloam Springs, Arkansas, to execute all documents necessary to effectuate this agreement. Done and Resolved this ____ day of July 2025. ATTEST: APPROVED: ____________________ ____________________ Jene’ Fain, City Clerk Judy Nation, Mayor