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I I I 75. RESOLUTION NO. 2006 - 11 0 R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS APPROVING A PURCHASE AGREEMENT WITH THE NATURE CONSERVANCY FOR THE CITY'S ACQUISITION OF A 250.7 ACRE, MORE OR LESS, TRACT OF PROPERTY IN THE ROGERS RIDGE AREA AND THE SPRING LAKE/SINK CREEK WATERSHED; AND DECLARING AN EFFECTIVE DATE. RECITALS: I. City voters on November 8, 2005 approved a proposition for the issuance of$2 million in general obligation bonds for the purchase of greenspace land in the Rogers Ridge area and the Spring Lake/Sink Creek watershed. 2. The City executed an agreement with Hays County, and The Nature Conservancy on January 19, 2006 under which The Nature Conservancy would purchase a 250.7 acre tract of property from R YS Limited and hold it for sale to the City when the City obtained the funds needed to make the purchase. The City and Hays County each contributed $62,500 under the agreement to be used as the earnest money for the acquisition by The Nature Conservancy. Hays County also agreed to contribute a total of $700,000 towards the purchase of the property by the City. 3. The Nature Conservancy closed on its purchase of the property on May 16, 2006 at a purchase price of$4,689,000, and under the January, 2006 agreement, the City is required to enter into a Purchase Agreement for the property with The Nature Conservancy. 4. The City Council wishes to approve the attached Purchase Agreement between the City and The Nature Conservancy that includes the following points: A. Purchase price of $4,689,000. B. Closing deadline of May 16,2008. C. In addition to the purchase price, the City will pay the following: I, The Nature Conservancy's direct costs in the purchase from RYS Limited, holding the property, and selling the property to the City (including closing costs, interest, and title insurance premiums) 2. $30,000 in payment of The Nature Conservancy's indirect costs associated with the purchase and sale transactions D. The City is obligated to close on the purchase only if the City is able to secure the full amount of funding needed for the purchase; if the City terminates the agreement, the earnest money would be refunded to the City and the County, and the City's refund amount would be reduced by The Nature Conservancy's indirect cost and holding costs to the date of termination. E. The City warrants that after closing the property "shall be preserved and managed as a greenspace to be used as a passive recreational use public park area"