Brownwood News – A recent email from the Brownwood Municipal Development District offers information regarding the sale of the Old Main Fire Station in Brownwood.

 

The email reads as follows:

A lot of information is being circulated on various social media sites concerning the sale of the Old Main Fire Station in Brownwood.
 
While the Old Main Fire Station is in a sealed bid process, no bid award has been made.  Three bids were submitted and opened on January 3, 2018, but those bids are currently under evaluation to determine their compliance with the bid specifications and to determine which represents the best return on investment for the citizens of Brownwood as stated in the Notice of Bid as follows:

            “BMDD will award the bid based on its determination that the sale will provide the best benefit for the taxpayers of the City, including bid price, intended use of the Property, demonstrated successful history of development of national retail chain projects,  potential sales tax and ad valorem tax production, and potential salaries and wages paid to employees in the business located on the Property. The BMDD retains the right to reject any and all bids for any reason.  The BMDD also reserves the right to waive any irregularities in the bid.” 

The BMDD Board may consider awarding the bid at its regular meeting conducted on January 16, 2018 at 1:30 p.m. as stated in the Notice of Bid. 

NOTICE OF BID

Brownwood Municipal Development District (BMDD) Property located at 807 Main Street, 808 Booker and 810 Booker, Brownwood, Texas  76801

The Brownwood Municipal Development District (BMDD) will accept sealed bids until 5:00 p.m, December 29, 2017 for the purchase of a .5401 acre tract of land described below.  Bids must be delivered to the BMDD, 501 Center Avenue, 2nd Floor, Brownwood, Texas  76801, Attn:  Guy Andrews, Executive Director-Economic Development, with bid number “01-17” on the outside of the envelope.  After the sealed bids are received, BMDD staff will conduct a bid opening at Brownwood City Hall, City Council Chambers at 11:30 a.m. on January 3, 2018, at which time it will open the bids, reading aloud each bid.  The BMDD Board may consider awarding the bid at its regular meeting conducted on January 16, 2018 at 1:30 p.m.

Description/Location of Real Property (the “Property”):  

All that certain lot, tracts or parcel of land lying and being situated in Brown County, Texas, and being 50 feet by 150 feet and being all of Lot No. 1, Block B, of Bernay, Smith & Weakley Addition to the City of Brownwood, Brown County, Texas, as said lot is shown in the Plat of said Addition and being the same land described in a Warranty Deed dated September 30, 2015, recorded in Instrument No. 6312, Volume 177, Page 325, of the Official Public Records of Brown County, Texas and more commonly known as 807 Main Street, Brownwood, Texas.

Outlot, Block 270, Lot 50 x 116, and being the same land described in a Warranty Deed dated September 30, 2015, recorded in Instrument No. 6312, Volume 177, Page 325, of the Official Public Records of Brown County, Texas and more commonly known as 808 Booker Street, Brownwood, Texas.

Outlot, Block 270, Lot 45 x 100, and being the same land described in a Warranty Deed dated September 30, 2015, recorded in Instrument No. 6312, Volume 177, Page 325, of the Official Public Records of Brown County, Texas, and more commonly known as 810 Booker Street, Brownwood, Texas.

The Property is improved with a 7,063 square foot building that was occupied by the Brownwood Fire Department.

Conditions of Sale of Real Property:

C Bids received may be in letter format, but must address the points listed below.  Bids must be sealed in an envelope, clearly marked – “Bid – 01-17,” and are due at the BMDD Offices at City Hall on or before 5:00 p.m., December 29, 2017.  No late bids will be accepted.

C Bidder must clearly state the intended use of the Property and shall complete a project data sheet to be provided by the BMDD, which shall include details of the proposed project to be built on the Property, including, the business to be located on the Property, the size of the proposed business, the estimated construction costs, the estimated sales tax produced by the business, the estimated ad valorem taxes produced by the Property, the estimated number of employees to be employed in the business on the Property, including estimated annual payroll and/or average wages to be paid to employees, and estimated utilities paid by the business on the Property.

C Bidder must demonstrate a history of successful development with national retail chains, restaurants and/or shops.  Bidder must provide a list of national retail chain projects, including locations, contact information and other pertinent information, that it has developed.

C The successful bidder shall agree to demolish the existing building on the Property at its sole cost and expense.  During the inspection period described below, bidder may seek a financial incentive from the BMDD to help pay for the demolition costs, such incentive to be within the sole and absolute discretion of the BMDD Board of Directors.  If the financial incentive is not agreed to by the BMDD, the bidder may cancel the real estate contract below, but it will forfeit any earnest money paid under the contract.

C The following restrictions on the use of the Property will be placed in the deed and shall run with the land:  the Property shall be limited in use to a national chain retail business, including, without limitation, a national chain restaurant or shop.  Prohibited uses include:  a single- family residence, multi-family residence, group home or any other type of residential and/or living facility, public storage buildings, junk yard, salvage yard and/or wrecking yard, automobile parking lot or garage, tattoo and/or body piercing business, private club, any government, health, safety or welfare use, and funeral homes.  Notwithstanding the foregoing, off-premise Billboards or advertising signs are prohibited on the Property.

C Successful bidder must agree that a national chain retail business, including, without limitation, a national chain restaurant or shop, will be under construction within six (6) months after the purchase of the Property and construction complete no later than eighteen (18) months after the purchase of the Property, or the BMDD may, at its sole and absolute discretion, reenter the Property and assume ownership of the Property and purchaser will be refunded the original purchase amount less any costs, expenses and fees incurred by the BMDD arising out of (i) the original sale and (ii) the BMDD’s reentry and assumption of ownership of the Property, including, without limitation, any costs to provide free and clear title to the Property to the BMDD.  In the event of a reentry by the BMDD, the successful bidder agrees to execute any and all documentation to effectuate the transfer back of the Property to the BMDD.  The BMDD must exercise its right of reentry no later than one (1) year following the failure by the bidder to complete construction of the intended development within eighteen (18) months after the purchase of the Property. The right to reenter and assume ownership language will be included in the deed.

C If any of the restrictive covenants or terms of this sale are violated, the BMDD may, at its sole and absolute discretion, either (a) reenter the Property and assume ownership of the Property and purchaser will be refunded the original purchase amount less any costs, expenses and fees incurred by the BMDD arising out of (i) the original sale and (ii) the BMDD’s reentry and assumption of ownership of the Property, including, without limitation, any costs to provide free and clear title to the Property to the BMDD or (b) take any and all action it may legally take to prevent and/or cure the breach of the restrictive covenants, including, without limitation, seeking injunctive relief and bidder agrees to pay the BMDD’s costs, including attorney’s fees, incurred by the BMDD in seeking to cure and/or prevent the breach of the restrictive covenants.  In the event of a reentry by the BMDD, the successful bidder agrees to execute any and all documentation to effectuate the transfer back of the Property to the BMDD.  The BMDD must exercise its right of reentry no later than one (1) year following the BMDD’s discovery of a breach of the restrictive covenant.  This language will be included in the deed.

C The successful bidder must sign a real estate purchase contract with the BMDD, no later than thirty (30) days after the award of the bid. The contract shall provide, at a minimum, the following terms: BMDD agrees to furnish a special warranty deed at closing.  BMDD shall provide the bidder with standard owner’s title insurance policies, including the standard exceptions to title, in the full amount of the purchase price by a reputable title company selected by the successful bidder, at the BMDD’s reasonable cost. Any survey of the Property shall be paid for by the bidder.  Closing shall take place through a closing agent mutually agreed to by the BMDD and bidder, located in the City of Brownwood.  At closing, the successful bidder agrees to pay for one-half of escrow fees, its attorney’s fees, and other usual and customary closing costs attributable to a buyer.  Except as provided herein, BMDD shall pay one-half of escrow fees, its attorney’s fees, and other usual and customary closing costs attributable to a seller.  Bidder shall place the sum of $5,000.00 in escrow, which will become non-refundable, except that it shall be applied to the purchase price if the Property closes.  Bidder’s obligations under the contract shall be contingent upon Bidder’s review and analysis of matters related to the legal and economic viability of the purchase and a satisfactory inspection of the Property.  The inspection period shall expire ninety (90) days after the effective date of the contract, but may be extended by the bidder for up to a total of 90 additional days (3 – 30 day extension periods) by payment of additional earnest money to escrow agent on or before the then current inspection date, the sum of $2,500.00 as additional earnest money for each such extension.  Closing on the sale shall take place no later than thirty (30) days after the inspection period, as may be extended, expires, except that bidder may extend the closing date by thirty (30) days by payment of an additional $5,000.00 in earnest money.  All escrow money shall be non-refundable and shall be distributed to the BMDD, but shall credit against the purchase price at closing, if the Property closes.   At closing, the bidder shall pay the purchase price and other closing costs by cash or cashier’s check.

C BMDD will award the bid based on its determination that the sale will provide the best benefit for the taxpayers of the City, including bid price, intended use of the Property, demonstrated successful history of development of national retail chain projects,  potential sales tax and ad valorem tax production, and potential salaries and wages paid to employees in the business located on the Property. The BMDD retains the right to reject any and all bids for any reason.  The BMDD also reserves the right to waive any irregularities in the bid.

C BMDD shall pay up to a three percent (3%) broker’s fee if the successful Bidder uses a licensed broker to bid on the Property and the sale of the Property under this bid is closed.

C The BMDD Board of Directors has established a minimum bid of $290,000.