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GRAY, PLANT, MOOTY, MOOTY & BENNETT, P.A. ATTORNEYS ATLAW <br />3400 CITY CENTER <br />33 SOUTH SIXTH STREET <br />MINNEAPOLIS, MN 55402-3796 <br /> <br />612 343-2800 <br />FAX: 612 333-0066 <br />www.gpmlaw.com <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Michele McPherson <br /> <br />FROM: Charles Wilson <br /> <br />D.R. Horton Exchange Agreement <br /> <br />DATE: April 10, 2002 <br /> <br /> This memorandum is in response to the Council's request for an opinion <br />regarding the Exchange Agreement. I have reviewed a copy of the Exchange Agreement <br />and believe that it would be appropriate for the Council to execute the agreement if it <br />meets with their approval. <br /> <br /> The Exchange Agreement is structured like a real estate purchase agreement in <br />which the City of Elk River is acquiring land and paying for it with other land rather than <br />money. All of the standard protections for the purchaser are included in the Exchange <br />Agreement. <br /> <br />This Exchange Agreement contains three principal conveyances (Articles 1-3): <br /> <br />1. The exchange (swap) of certain identified land between the City of Elk <br /> River and D.R. Horton, Inc.-Minnesota. <br /> <br />The conveyance of a 50-foot wide strip of land extending from Olson <br />Street to Outlot K from D.R. Horton to The City of Elk River in partial <br />fulfillment of D.R. Horton's park dedication fees. <br /> <br />3. The vacation of that portion of 179th Avenue Northwest that is included in <br /> the land the City of Elk River is exchanging under the agreement. <br /> <br />No money is to change hands under this agreement (Article 4). <br /> <br /> Each party is obligated to try to clear the title of any items to which the other side <br />objects. This obligation is limited to the expenditure of $10,000 for defects not caused by <br />the selling party. Each party must cure defects caused by itself, regardless of expense. If <br />the title is not cleared, the objecting party may either waive the objection and close or <br />terminate the Agreement. <br /> <br />-1- <br /> <br /> <br />