Village of Flat Rock enters into purchase agreement on the Highland Lake Golf Course

A fact sheet on the purchase agreement from the Village of Flat Rock:

HIGHLAND LAKE GOLF COURSE

PURCHASE AGREEMENT – contemplates an installment sale and leaseback

CONTRACT TERMS:

Purchaser: Village of Flat Rock, a political subdivision of the State of North Carolina

Seller: Course Doctors, Inc., a North Carolina corporation

Real property: all property, including land, buildings and other improvements, except for the practice range lights and the pole barn, which are to be removed from the premises, at no expense to the purchaser, no later than the end of the lease term

Purchase price: $1,150,000. Seller has elected an installment sale. Purchase price to be paid:

• (a) $525,000 cash at closing;
• (b) $625,000 balance to be evidenced by a non interest-bearing promissory note secured by a deed of trust on the property, to be paid:
• (i) $475,000 on January 15, 2014
• (ii) $150,000 on January 15, 2015
• (c) Prepayment at Seller’s option/demand upon 60-days’ prior written notice to Village

Earnest money: $50,000 – to Timothy R. Cosgrove, Attorney at Law

Closing attorneys: Prince, Youngblood & Massagee, PLLC

Closing: on or before June 30, 2013

Leaseback:

• Term: Settlement date thru November 15, 2013; (“Golf season” to end September 30; 45 days to vacate)
• Rent: $500 for the term, plus an amount equal to 1/12 of the annual county and village ad valorem taxes for each month or part of a month of the lease term after the month in which the closing occurs; payable at closing
• Maintenance, utilities, insurance, etc.: Tenant responsibility
• Hold harmless: Tenant to hold Landlord harmless against all liabilities, claims, damages, causes of action, etc., arising from action of the purchaser; Village to be named as an additional insured under Tenant’s insurance policies
• Income from golfing operations: Tenant

Possession: to Buyer on or before November 15, 2013

Environmental Phase 1 (Soil tests – pesticides, other contaminants): Purchaser

Title examination: Purchaser

Survey: Purchaser

April 29, 2013