Laserfiche WebLink
Analysis <br />Following is a summary of the Purchase Agreement and Contract for Deed with the seller, <br />Houlton Investment Company: <br />* Purchase Price: $720,000. Down payment of $216,000. <br />* Contract for Deed Terms: 5-year contract for deed at 6% interest, semi-annual <br />payments. Prepayment allowed without penalty. <br />* Closing date: December 22, 2006. <br />* Leases: HRA to assume the existing lease with O'Reilly Automotive at 720 Main <br />Street and the lease established with First National Financial Services at 716 <br />Main Street. <br />* Condemnation and relocation axe specifically not being authorized. <br />* Provides for amendment of purchase agreement, if necessary, following receipt of <br />completed survey and title review. <br />* Rather than prorating rents and real estate taxes to the date of closing, the agreement <br />provides fox the sake of simplicity to make the proration date for rent and real estate taxes <br />1/1/07. <br />The proposed sources of funds for this acquisition include a portion of the HRA's existing <br />fund balance and future tax levies. <br />Recommendation <br />Staff recommends the HRA adopt the attached Resolution Authorizing the Execution of a <br />Purchase Agreement with Houlton Investment Company for the Purchase of 716 and 720 <br />Main Street, Elk River, MN and the Purchase of the Property Pursuant to the Terms of Said <br />Purchase Agreement. <br />S:\Downtown Revitalization\Memos\2006\Houlton BuildingsU 2 4 06 HRA Houlton building purchase.doc <br />