CM-2017-1303 - 1/17/2017Alan McGraw
Mayor, City of Round Rock
221 E. Main St.
Round Rock, Texas
RE: Letter of Intent for the exchange of real estate interest between the City of Round Rock
and The Round Rock Chamber of Commerce, Inc.
Dear Mayor McGraw:
The Round Rock Chamber of Commerce, Inc. ("Chamber") is pleased to inform you of its intent
to enter into one or more agreements ("Exchange Agreement") with the City of Round Rock
("City") for the exchange of real estate interests as set forth below.
The Chamber has a long term lease on property owned by the City located at 212 E. Main St.,
("Main St. Tract"). The appraised value of the Chamber's leasehold interest in the Main St. Tract
is $750,000.
The City owns a relatively large tract of land bounded by Bagdad St., Brown St. and Lake Creek.
The Chamber would like to purchase a portion of said tract from the City for a future office
building to house the Chamber's offices. The portion contains at least 15,000 square feet and is
described as set forth in Exhibit A, ("Brown St. Tract"). The appraised value of the Brown St. Tract
is $128,000.
The Chamber proposes that the terms of the Exchange Agreement be as follows:
The Chamber will release to the City its leasehold interest in the Main St. Tract at closing.
2. The City will pay $300,000 to the Chamber. At the City's option, the payment may be
made over a period of up to five years.
3. The City will convey ownership of the Brown St. Tract to the Chamber.
4. The Chamber will be responsible for paying the cost of extending water and wastewater
utilities to the Brown St. Tract.
5. If the City deems it necessary to oversize the utility lines, it will bear the incremental cost
of doing so.
6. The City will permit the Chamber to have use of nearby public parking lots and will not
impose a parking requirement for construction of the building on the Brown St. Tract.
7. The City will bear the cost of a property survey, platting of the tract, and title insurance.
Round Rock Chamber
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8. The City will waive platting fees, zoning fees, building permit fees, and impact fees
associated with the construction of the proposed office building.
9. Each party will be responsible for its own legal fees.
10. The Chamber will be permitted to remain in the Main St. Tract for a period of 18 months
following the close of the exchange transaction, or when the Chamber's building is
completed, whichever first occurs. The City will grant one 6 month extension if the
Chamber is making substantial progress to complete the building. The Chamber will be
allowed to vacate the Main St. Tract at any point during this time period on 30 days'
notice.
11. Within six months of vacating its current offices on the Main St. Tract, the Chamber will
make arrangements for the relocation of the Palm House Museum from the Main St.
Tract. The Chamber will not be required to make any repairs to the remainder of the
building on the Main St. Tract.
12. The Chamber will have twelve months from the effective date of the Exchange
Agreement to raise the funds necessary to complete the construction project. If
Chamber is unable to do so, it shall have the option of terminating the Exchange
Agreement.
13. The Exchange Agreement and deed shall contain a restrictive covenant limiting the use
of the Brown St. Tract to office use or other uses suitable to the downtown area.
14. The Chamber will grant the City a 60 -day Right of First Refusal to match any offer that the
Chamber receives from a third party to purchase the Brown St. Tract.
If the foregoing terms are acceptable to the City, please return a signed copy of this letter to
me at your convenience. This proposal is intended to establish an agreement of terms but does
not serve as a binding agreement for either party.
Sincerely,
Round Rock Chamber of Commerce, Inc.
A Texas non-profit corporation
By:
Mike Odom, President
Accepter by the City of Round Rock
By: �L�