HomeMy WebLinkAbout2007 01_Waiving Rights_ONEOK BuildingOWASSO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION No. 2007-01
A RESOLUTION OF THE OWASSO ECONOMIC DEVELOPMENT
AUTHORITY ("OEDA") 1) WAIVING AND DISCLAIMING ALL POST-
CONVEYANCE RIGHTS UNDER SECTION 22.7 OF THE COMMERCIAL
LEASE AGREEMENT BETWEEN THE OEDA AND ONEOK, INC.
FOLLOWING EXECUTION BY ONEOK, INC. OF A DEED TO HUNT
PROPERTIES OR AN AFFILIATE THEREOF ON OR BEFORE SEPTEMBER
30, 2007, FOR THE SUBJECT PROPERTY, AND, 2) AUTHORIZING THE
OEDA MANAGER TO EXECUTE ALL NECESSARY DOCUMENTATION TO
TERMINATE THE COMMERCIAL LEASE AGREEMENT, WAIVE POST-
CONVEYANCE RIGHTS UNDER SECTION 22.7 OF THAT AGREEMENT AS
PROVIDED IN THIS RESOLUTION, FACILITATE RELOCATION OF THE
OKLAHOMA NATURAL GAS ("ONG") FACILITY TO THE CHEROKEE
INDUSTRIAL PARK AND FACILITATE DEVELOPMENT BY HUNT
PROPERTIES OF THE SUBJECT PROPERTY AS A RETAIL SITE.
WHEREAS: A Commercial Lease Agreement was executed by the OEDA and
ONEOK, INC. on October 29, 1996 setting forth terms and conditions for the rental and
potential purchase by ONEOK, INC. of a building to be constructed on the subject
property for use as an ONG maintenance facility;
WHEREAS: The OEDA secured a construction loan as Landlord of the subject
property to construct the facility and the Commercial Lease Agreement provided that
ONEOK, INC. would repay as rent the principal amount of this loan and all interest over
a fifteen (15) year period to the OEDA;
WHEREAS: The Commercial Lease Agreement granted to ONEOK, INC. an
exclusive right and option to purchase the premises and also stated that the OEDA would
deliver to ONEOK, INC. a Special Warranty Deed for the premises in the event ONEOK,
INC. elected to exercise this option; the lease further provided in Section 22.7 that if
ONEOK, INC. purchased the premises from the OEDA under the lease option and
subsequently conveyed the property to another party, other than an affiliate, within one
(1) year following delivery of the Special Warranty Deed, ONEOK, INC. would be
obligated to pay over to the OEDA fifty percent (50%) of the amount received by
ONEOK, INC. which exceeded the original principal amount of the loan;
WHEREAS: To facilitate both the purchase of the subject property by HUNT
PROPERTIES and the related relocation of the ONG facility to the Cherokee Industrial
Park, the OEDA hereby desires to release and disclaim, upon execution and delivery of a
deed on or before September 30, 2007, by ONEOK, INC. conveying the subject property
to HUNT PROPERTIES or an affiliate thereof, all post-conveyance rights created under
Section 22.7 of the Commercial Lease Agreement, and to forgo payment by ONEOK,
INC. of any monies received which exceed the amount of the original loan, and to
additionally confer upon the OEDA Manager authority to execute all documents
necessary to terminate the Commercial Lease Agreement and waive post-conveyance
right created under Section 22.7 of that Agreement, and to facilitate relocation of ONG to
the Cherokee Industrial Park and development by Hunt Properties of the subject property
as a retail site.
NOW, THEREFORE, BE IT RESOLVED BY THE OWASSO ECONOMIC
DEVELOPMENT AUTHORITY, THAT: The OEDA hereby releases, and
disclaims post-conveyance rights under Section 22.7 of the Commercial Lease
Agreement entered into on October 29, 1996 by the OWASSO ECONOMIC
DEVELOPMENT AUTHORITY AND ONEOK, INC. upon execution of a deed on or
before September 30, 2007, from ONEOK, INC. to HUNT PROPERTIES or an affiliate
thereof conveying the subject property, and thereby releases ONEOK, INC. from
payment at the time of that conveyance of an amount equaling fifty percent (50%) of the
purchase price received by ONEOK, INC. which is in excess of the amount of the
principal loan obtained by the OEDA, and, the OEDA hereby authorizes the OEDA
Manager to execute all necessary documents on behalf of the OEDA to terminate the
Commercial Lease Agreement and waive post-conveyance rights created by Section 22.7,
and to facilitate both the relocation of the ONG facility to the Cherokee Industrial Park
and the purchase and development of the subject property by HUNT PROPERTIES. The
OEDA's release and disclaimer of all post-conveyance rights created under Section 22.7
of the Commercial Lease Agreement is expressly contingent upon and limited to
ONEOK, INC.'S conveyance of the subject property to HUNT PROPERTIES, or an
affiliate thereof.
APPROVED AND ADOPTED this 10th day of May, 2007, by the Owasso Economic
Development Authority.
Dominic Sokolosky, Cha' an
Attest:
Gary Aki , Secretary
Approved As To Form:
. /-
lie Trout Lombardi
Attorney for the Owasso Economic
Development Authority