Cultural Park property owners given repurchase right in final property settlement documents
The Sathcupa Corporation, which owns the Sedona Cultural Park property, received a right of first refusal to repurchase the Sedona Center as a part of the final property settlement reached in August. Under the agreement, the Community College is obligated to notify Sathcupa of its intent to sell the College Property at least 45 days before entering into any binding agreement to sell the Property to any third party. The Sathcupa Corporation then has the right, within 30 days thereafter, to purchase the College Property for the 96% of fair market value as determined by an appraisal reasonably approved by the Community College and Sathcupa.
Section 14 of the final agreement containing the repurchase clause follows below:
14. Right to Repurchase. At the Closing, the parties shall record a ocument terminating Sathcupa’s right to repurchase as set forth in the First Amendment to Covenants, Conditions and Restrictions, recorded on December 17, 2002, Book 3985, Page 262, in the Yavapai County Recorder’s Office and the Corporation Special Warranty Deed, recorded on September 11, 1998, Book 3600, Page 519, in the Yavapai County Recorder’s Office, and terminating Sathcupa’s right of first refusal as set forth in Section 7.3 in the Old CC&Rs. In its place, YC shall grant Sathcupa a right to repurchase the YC Property if YC elects to sell the YC Property. YC shall notify Sathcupa of its intent to sell the YC Property at least 45 days before•entering into any binding agreement to sell the YC Property to any third party, and Sathcupa shall have the right, within 30 days thereafter, to purchase the YC Property for the 96% of fair market value as determined by an appraisal reasonably approved by YC and Sathcupa (“Repurchase Price”). If Sathcupa does not timely or properly exercise its right to repurchase, YC may for one year thereafter sell the YC Property to any third party for the Repurchase Price (or greater), without any further rights of Sathcupa to purchase the YC Property. If YC does not sell the YC Property for the Repurchase Price (or greater) before the expiration of that one-year period, Sathcupa’s right to repurchase shall be reinstated, and (a) a new appraisal and (b) new notice from YC to Sathcupa shall be required before YC may sell the YC Property.