Newton approves KLP land purchase and sale agreement
The city of Newton move one step closer to facilitating the sale of more than 200 acres of ground in the Kansas Logistics Park on the east side of Newton.
The 230 acres currently owned by Tindall Corporation has drawn the interest of GAF Materials.
"A lot of work has gone in by staff to package a sale of this land that has been in our industrial park that has been undeveloped for so many years," said Mayor Richard Stinnett. "I think everyone is eager to close that chapter and see some progress on it ... to see a new manufacturer come in, along with investment in our community and also the opportunity for additional jobs in our community."
The city commission approved purchase and sale agreement with GAF Materials LLC Sept. 14,
"This is a mechanism to transfer the property from Tindall to the city to GAF," said Chris Towle, city attorney for the city of Newton. "That is what this accomplishes. [The agreement] does not talk about future use or those things, it just talks about the transactions."
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. Their intentions for the land are not known.
"This is how these things are packaged up in the commercial world. Companies go and seek out their land and the details come later," Stinnett said. "That is what we do not know right now. ... Once GAF decides how they are going to use that land and what they are going to do on it the city will know and the public will know."
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 approved a purchase and sale agreement on Sept. 14. If the purchase and sale agreement is approved by GAF, 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.
The commission also approved a memorandum of understanding with Harvey County, mirroring action taken by the county commission earlier in the day.
Through the memorandum, the city and county agree any net proceeds involving the sale of the Tindall property will 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.