5.0. EDSR 12-11-2000 - Laserfiche WebLink

Home Browse Search

c •,(,? Item #5. City of MEMORANDUM Elk ,. River TO: Economic Development Authority FROM: Lori Johnson, Finance Director DATE: December 11, 2000 SUBJECT: Amendment to Leroy and Ruth Brown Contract for Deed On June 29, 1999, the EDA executed a contract for deed with Leroy and Ruth Brown for the purchase of property to be developed as a business park by the EDA. Last April during the audit review, an error was discovered in the payment amount stated in the signed contract for deed. Peter Beck and I have been working since that time to get this matter resolved. It is important to have the amendment approved and signed before the end of the year. • The issue is the result of an incorrect amount that was inadvertently inserted in the Contract For Deed during the final contract negotiations among the attorneys and Evergreen Land Services. The original contract requires semi- annual payments of$55,912.24; the amendment reduces the January 1, 2001, payment to $53,294.25 and future semi-annual payments to $54,727.22 (excluding the final payment which may be less based on the amortization schedule). Although we have not received a signed Amendment to Contract For Deed from the Browns, their attorney has indicated that they are in agreement with the amendment I will be present on Monday to answer questions regarding the amendment. However, if you have detailed questions regarding the amortization schedule or the original contract for deed, please contact me prior to the meeting. Action Requested The EDA is asked to approve the Amendment to Contract For Deed by and between Leroy and Ruth Brown and the Economic Development Authority for the City of Elk River as attached. s:\eda\meetings\lbrown.doc • 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD & Phone (763) 441-7420 • Fax (763) 441-7425