ASSETS & INVENTORY SALE
ASSETS & INVENTORY SALE
Notice of sale to Millbrook Band Membership
Closing Date: 19th July 2019 at 12:00 pm Atlantic Standard Time
Those who submit bids will be invited to attend the opening of bids on
Monday, July 22nd, 2019 at 2:00 pm Atlantic Standard Time
OFFER
The Millbrook Band is offering to sell the assets and inventory of Treaty Gas and Convenience store located at 600 Caldwell Rd. Cole Harbour NS.
ASSETS & INVENTORY FOR SALE
a. The building currently occupied by Treaty Gas & Convenience store, at 600 Caldwell Rd. Building size is approximately 2,420 square feet together with existing building fixtures:
b. Gasoline pumps, canopy, in-ground gasoline tanks and existing signs:
c. Existing store and gasoline inventory. (Tobacco products are not included)
Above assets are sold on an as-is-where-is basis with no guarantees.
LONG TERM LEASE
1. Purchaser will be granted/given a long term land lease of 20 years, (the "initial term") at a fixed agreed upon rental for each Five (5) year period of the initial term, with an option to renew for a further 10 years at a rate for each Five (5) year period as agreed to by the parties at that time.
2. The land set aside to operate the gas station and convenience store is approximately .58 acres.
3. The land size will be of a reasonable size to operate the existing gas station with convenience store confirmed jointly by the parties.
4. This property will have an annual lease rate of $14,500.00, (land in Cole Harbour has a $25,000.00 per acre lease rate).
5. Band Members will be afforded/given a 50% discount on land lease for the first Five (5) years reducing the lease rate to $7,250.00 per annum. After the first Five (5) years of the initial term, the lease will return to 100% of its value, adjusted to reflect market rent as if non-reserve land for each remaining Five (5) years of the initial term.
TOBACCO
The successful band member will receive and retain a tobacco quota from Band Council subject to the following conditions:
1. The successful band member must continue to operate the Cole Harbour gas station and convenience store, selling discounted gasoline and tobacco products to status individuals.
2. Should the Gas Station and convenience store cease selling discounted gasoline and tobacco products to status individuals, or be sold, or leased to a third party, or cease operations, the quota granted under this agreement will be immediately terminated.
3. Cannot currently hold a tobacco quota, if the purchaser does, no additional quota will be given.
4. If an existing Band Employee either full time, part time or on a contract basis you must resign upon acceptance of purchase price by the band. If not an existing band employee, the purchaser must agree in writing not to accept employment with the Millbrook First Nation Band for the duration of the initial term or any additional renewal periods. Should you accept employment the tobacco quota will be terminated.
5.If an existing Band councillor that councillor must resign upon acceptance of purchase price by the Band. If not an existing Band councillor, the purchaser must agree in writing to accept the condition not to run for or become a Band Council member, for the duration of the initial term or any additional renewal term(s); should you be elected to council the tobacco quota will be terminated.
CONDITIONS OF SALE
1. The purchase price offered must be a sum greater than $469,999.99 as adjusted up or down to reflect the existing value of inventory.
2. At closing the purchase price will be paid by bank draft or certified check, (no other form of payment will be accepted), within five (5) business days of acceptance of the offer to purchase.
3. The purchaser acknowledges he/she is responsible for obtaining all necessary operational licenses and confirming the terms of receipt of and payment for the product received from all suppliers of product for business operations.
4. Acknowledges all required insurance will need to be in place prior to the commencement of operations with the Millbrook Band added as an additional insured.
5. Date of takeover to be determined by the parties acting reasonably.
6. The purchaser acknowledges he/she will remove from all signage, the name “Treaty Gas & Convenience Store” at the new owner’s expense prior to commencement of operations at the property.
