NOTICE OF AUCTION - Former CenturyLink Office Building at New Century Air Center
600 New Century Parkway, New Century, Kansas 66031
Open House: April 3, 2020 at 1:30-2:30 pm
Auction: April 10, 2020 at 1:00 pm
Minimum Bid: $12,000,000
On Friday, April 10, 2020, at 1:00 O’clock p.m., pursuant to Resolution 016-20, the Board of County Commissioners of Johnson County, Kansas shall hold a public auction to receive bids for a building located at 600 New Century Parkway in New Century, Kansas as surplus and authorized its disposal. The building is known as the “CenturyLink Building” and is approximately 436,242 square feet currently used as commercial offices. The auction will begin promptly at 1:00 p.m. This is a “live” auction but the Board may, in its discretion, allow bids to be submitted in writing, by telephone, or by electronic or other convenient means.
An open house shall be held on Friday April 3 from 1:30 to 2:30 p.m. At this time, the open house will be conducted with appropriate social distancing rules in place. Arrangements for the tour on that date are being developed and will be posted on the County’s web page. The building will not be open on the day of the auction as previously planned. You may tour the building, at your own risk, during that time. An information brochure has been prepared describing, in general, the building but such procedure is for information only and does not constitute any representation or warranty. Additional information is available on the County’s web site at https:/www.jocogov.org/buyme.
The general terms of the sale are as follows:
Auction and Minimum Bid. A minimum bid for the for the CenturyLink Building has been set at $12,000,000 (Twelve Million Dollars).
As a result of the COVID-19 emergency declaration, policy, and procedures recently implemented by state and local authorities, there will be no “live” on-site auction but the auction shall be conducted through sealed bid and through electronic means. Sealed bids should be submitted no later than April 9, 2020, and such bids shall not be opened until the auction begins. A sealed bid should be directed to Aaron Otto at the address below and contain the bid amount (not less than the minimum bid) as well as the bidder’s name, address, telephone, email, and other contact information to accurately identify the bidder. Mail service may be slower than usual and bidders are encouraged to allow sufficient time for mail service. Please check the Board’s “buyme” web site regularly for changes that may occur prior to the auction date.
The Board is also contemplating a telephone call-in option to allow bidders to call and submit their offer(s) through that method. The call-in information is as follows:
Dial In: 913-715-4099
Meeting Code: 56007
Attendee Access Code: 16007
The auction will still be held at 1:00 p.m. on April 10, 2020, as previously contemplated but through these alternative means.
The successful bidder at auction shall be required to provide the County with a refundable deposit on the date of the auction in the amount of $10,000 (Ten Thousand Dollars). The deposit shall be refunded, without interest, if the County does not approve the sales transaction within 30 days of the auction sale date. The Board of County Commissioners must approve any sale of the property even if a minimum bid is received and may reject any bid for any reason. It is anticipated the Board will either approve or reject the sale of the building at a regular scheduled meeting on or before May 10, 2020. If the Board rejects the high bid the bidder’s deposit shall be refunded without delay. Upon Board approval, the closing of the sales transaction shall occur on July 1, 2020, or as soon as thereafter as is practical without unnecessary delay.
Ground Lease. The building is being sold separately from the land upon which it is located. The land is owned by the Board of County Commissioners and the Johnson County Airport Commission shall enter into a long-term ground lease, as landlord, with the purchaser of the building, as tenant. The terms and conditions of that ground lease are negotiable but shall be generally consistent with the standard ground lease used by the Johnson County Airport Commission in similar situations. A copy of the standard ground lease can be viewed by contacting Aaron Otto, Executive Director, Johnson County Airport Commission at email@example.com. The ground lease shall contain a provision granting the ground lessee, as owner of the building, a right of first refusal if the land is ever offered for sale.
Every interested person and potential bidder is encouraged to discuss with the Executive Director of the Airport Commission, Aaron Otto, any contemplated request for changes or modifications to the standard ground lease before bidding to determine whether those proposed modifications are likely to be acceptable to the Airport Commission.
The use of the CenturyLink Building shall be subject to all applicable zoning, building, and other applicable codes, rules, and regulations. Any potential bidder shall be responsible for determining whether its intended use is a lawful and permissible use.
The ground lease rental is anticipated to be approximately $.11 per square foot for the land upon which the building is located. The total area of land to be leased is expected to be approximately 35.5 acres or 1,546,380 square feet subject to negotiation. Accordingly, the annual ground lease rental is anticipated to be approximately $170,102. The ground lease rent will be payable to the Johnson County Airport Commission and used as revenue for on-going airport operations.
The CenturyLink Building shall be owned, operated, and maintained by the successful bidder/purchaser subject to the terms of the underlying ground lease. The underlying ground lease shall establish terms of conditions for the ground leasehold. The ground lease initial term shall not be less than 50 years unless a shorter term is agreed to by the successful bidder. The successful bidder is likely to be able to negotiate a longer term as well as the opportunity for extensions or renewals as necessary or desirable and should discuss such opportunity with the Airport Commission Director prior to any bidding.
Inspection and “As-is” Condition of Sale. The CenturyLink Building is sold, pursuant to County policy, in its “as is” condition without any representation or warranty. No County employee or other person is authorized to make any statement or claims regarding the condition of the structure or any part of the structure. Every interested potential bidder is encouraged to inspect the property and one or more dates will be established for such an inspection.
Closing of the Sales Transaction. The Board of County Commissioners has the absolute right and discretion to reject and all bids even a bid that meets or exceeds the minimum bid. Once approved, the Airport Commission staff shall coordinate the closing of the sale with the successful bidder and the sales transaction shall be closed on or after July 1, 2020. The parties may mutually agree to delay the closing. It is contemplated that in order to close the sales transaction a lender or title insurer may request the parties execute a contract representing the underlying terms and conditions of the sale. The parties acknowledge such a contract will be merely a formality and accommodation and is not a condition of closing and the terms of the sale shall not materially deviate from the terms and conditions set forth in this Notice.
Title Insurance. The Board shall provide the successful bidder a title insurance policy in the amount of the purchase price at closing insuring merchantable fee title in the building subject only to those exceptions contained in the preliminary title commitment issued by First American and available upon request.
Deposit. The successful bidder’s deposit shall be refunded in the event the Board is unable or unwilling to consummate the sales transaction within the timeframe set forth in this Notice. The deposit is to ensure the successful bidder’s performance. If, for any reason, including any failure to obtain financing, the successful bidder is unable to close the sales transaction as required by this Notice then the Board may retain the deposit as liquidated damages.
Additional Information. Interested parties should visit https:/www.jocogov.org/buyme for additional general information regarding the property. Questions regarding the building and contemplated ground lease may be directed to: