An offer to buy the Roanoke Rapids Theatre for $1.5 million has been submitted to the city and will be discussed at a special called meeting of the council on Monday.
The proposal was submitted by the attorney representing Weldon Mills Properties, which had previously submitted a proposed lease agreement.
City council debated the lease proposal at its meeting Tuesday and recommended proposed amendments to the document.
City Attorney Geoffrey Davis said no explanation was given on why the proposal turned from one of a lease into an offer to buy. City Manager Kelly Traynham also said she has received no explanation.
Monday’s council meeting is scheduled for 5:30 p.m. at the Lloyd Andrews City Meeting Hall on Jackson Street.
The offer to buy the theater was submitted by Roanoke Rapids attorney Bill White on Wednesday, a day after the council discussed the lease proposal.
“We have been asked to present to you for delivery to the city of Roanoke.Rapids from an investment group (which includes the members of Weldon Mills Properties, LLC and others), the following … proposal to purchase,” White said in the letter to Davis.
Weldon Mills Properties Buyer proposes to buy the theater, including all its equipment, plans and drawings, the proposal says.
If the proposal is accepted, a $5,000 deposit will be applied to the purchase price within 24 hours.
An additional $25,000 will be deposited upon the execution of a contract of sale, which will also be applied to the $1.5 million purchase price.
The proposal says the buyer will have 60 days after execution to conduct its due diligence including title examination, survey, environmental testing, testing of all equipment, and conducting inventory of all equipment and supplies used in the operation of the Roanoke Rapids Theatre. Closing will occur 30 days after the expiration of the due diligence period.
If during the due diligence period the buyer discovers any exceptions to the title, deficiencies or both, the buyer will notify the city, which will have fifteen 15 days to respond. “If (the) seller decides not to cure any exceptions and/or remove any deficiencies, then at the option of (the) buyer, the contract of sale shall be null and void, whereupon all funds deposited with Wellman & White, PLLC, shall be refunded to (the) buyer.”
The proposal notes the city must be able to convey the marketable fee simple title, free and clear of all liens and encumbrances except for easements and rights of way which service the Roanoke Rapids Theatre and any other exceptions to the title which are acceptable to the buyer. “All equipment must be in good working order at the time of closing.”
If the proposal is not accepted by the city prior to the commencement of the online advertising of the premises for sale, the proposal terminates automatically, the document says.
