Newton, Harvey County consider split of KLP property sale
The sale of 230 acres currently owned by Tindall Corporation in the Kansas Logistics Park is expected to take a step forward this week following meetings of the Newton City Commission and the Harvey County Commission.
The city commission is expected to consider a purchase and sale agreement with GAF Materials LLC Sept. 14, provided the county commission approves a memorandum of understanding earlier in the day.
The city commission will meet a 7 p.m. Sept. 14 in Newton City Hall, 201 E. Sixth. The county commission will meet at 9 a.m. at the Harvey County Courthouse, 800 N. Main.
This Kansas Logistics Park Memorandum of Agreement relates to a 2010 Interlocal Agreement between the County and the City of Newton. The interlocal agreement applies to the Kansas Logistics Park , and specifically, the partnership between the County and the City to jointly undertake the development of the KLP.
The agreement states the requirements and obligations of the each entity to develop the KLP, and also includes certain obligations related to project administration and the ownership and maintenance of KLP properties and improvements. Through the memorandum, the city and county agree any net proceeds involving the City’s sale of the Tindall property shall be divided — 66 percent to the city and 34 percent to the county. The memorandum is specific only to the sale of the Tindall property, and is valid for one-year.
The city entered into an option agreement with Tindall in June, which gives the city the right to purchase the Tindall property at a price of $5,184.98/per acre for a total sale price of $1,188,813.00. In addition, the City has approved a Letter of Intent with GAF Materials LLC to purchase the property or $8,000 and acre for a total sale price of approximately $1,840,000.00.
The city will consider and purchase and sale agreement on Sept. 14. That agreement creates, in essence, two transactions at once — the city purchasing the Tindall property while simultaneously selling the property to GAF materials.
If the purchase and sale agreement is approved, GAF will provide the City with a $100,000.00 escrow deposit. The agreement allows GAF 120 days to conduct inspections and surveys of the property and to evaluate the title to the property.
At any point during the due diligence period, GAF may terminate the agreement and cancel the transaction without penalty and be entitled to a refund of their escrow deposit.
Upon the conclusion of the due diligence period, the city is contractually obligated to exercise its option to purchase the property from Tindall to facilitate a simultaneous or subsequent sale to GAF.
The purchase agreement states that the city purchase is contingent upon the sale of the property to GAF.
Tindall Corp., a concrete manufacturing company from South Carolina and seven locations, was the first company to purchase property in the logistics park when the park was created. In 2010 Tindall announced the intention of manufacturing the "Atlas CTB," a base for wind turbine installations. A market for the product never materialized, despite the company giving tours of the base to industry leaders at a convention in Atlanta, Georgia, in 2012.
GAF Materials, a manufacturing company based in Parsippany, New Jersey, is considering the purchase of the property. GAF has historically been focused on manufacturing of roofing materials for residential and commercial properties.