2014-04-30 Dean John Letter of Intent to PurchaseDean R Johnson Land Acquisition LLC
4700 County Road 19
Medina, MN 55357
April 30, 2014
City of Albertville
5959 Main Ave. NE
Albertville, MN. 55301
Attention: Adam Nafstad
Re: Purchase of Ten Lots and the Optioning of Fifteen Lots in Prairie Run
Please consider this a Letter of Intent of Dean R Johnson Land Acquisition, LLC (Buyer)
to purchase the ten finished lots that the City of Albertville (Seller) owns legally described as
Lots 3 -6 & Lots 8 -13, Block 2, Prairie Run, and to enter into an Option Agreement for the 15 lots
that the City is currently acquiring from Wright County, legally described as Lots 1 -15, Block 1,
Prairie Run. Following are the conditions of our proposal:
Purchase Agreement:
• We would like to purchase all 10 Lots.
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• Earnest monies of $5,000 to be submitted at execution of the Purchase Agreement
• The total purchase price of $160,000 is to be paid in one $100,000 payment at closing
which includes the earnest monies, with partial payments after the initial closing as
described in the following paragraph, or a final payment of $60,000 within fifteen months
of the initial closing.
• The first payment of $100,000 will be paid at closing along with the transfer of title of five
lots of Buyer's choice. An additional $30,000 will be paid to Seller upon the successful
closing of a home on any of the said lots to an end homeowner of a home constructed on
the Buyer's lots until the balance of the purchase price is paid. If the end homeowner
chooses a lot Buyer does not have title to, then Buyer can purchase the lot from the Seller
for a $30,000 payment, which will reduce the amount of the purchase price still owing.
Dean R Johnson Land Acquisition Office 763- 479 -4820 Fax 763 - 479 -4821
• The transfer of title on the remaining lots will happen upon paying the balance of the
purchase price of the Purchase Agreement.
• Seller to submit title work to buyer for buyers review.
• Seller to pay all special assessments owing at closing.
• Property taxes shall be prorated as of date of closing.
• We will cooperate and work diligently with your attorneys in drafting the appropriate
pu chase agreement.
• We would expect your cooperation in pursuing the appropriate City approvals.
• This purchase agreement would be subject to an environmental study.
• We would require access to the site to inspect and plan the site.
Option Agreement to purchase Lots 1 -15, Block 1, Prairie Run
• We would like the option to purchase the 15 Lots legally described as Lots 1 -15, Block 1,
Prairie Run once the Seller has possession of these lots
• The total purchase price of the 15 lots will be $240,000, to be paid in one $50,000
installment at closing, with partial payments after the initial closing as described in the
following paragraph, or a final payment of $190,000 within twenty four months of the
Option Agreement's initial closing.
The first payment of $50,000 would be paid at closing along with the transfer of title of
two 'lots of Buyer's choice. An additional $330,000 will be paid to Seiler upon the
successful closing of a home on any of the purchased or optioned lots to an end
homeowner of a home constructed on the Buyer's lots until the balance of the option
purchase price is paid. If the end homeowner chooses a lot that Buyer does not have title
to, then Buyer can purchase the lot from the Seller for a $30,000 payment, which will
reduce the amount of the purchase price still owing.
• Any $30,000 payments will first be applied to the initial purchased lots until paid in full
and then applied to the optioned lots until balance is paid in full.
After the 10 purchased lots have been paid in full, any $30,000 payment on the optioned
lots will require the he Seller to transfer title for a lot of Buyer's choice. The transfer of
title on the remaining optioned lots will happen upon paying the balance of the purchase
price.
Dean R Johnson Land Acquisition Office 763479 -4820
Fax 763 - 479 -4821
• The remaining condition of the purchased lots will apply to the optioned lots.
We expect the Seller to work with the Buyer to remove Lots 1 -15, Block 1 from the
Prairie Run Homeowner's Association, should we exercise the Option.
Please review my proposal and get back to me with any discussion necessary. If this
sounds desirable, I would like to proceed to purchase agreement and submit earnest money.
Sincerely,
Dean Johnson, President
Dean R Johnson Land Acquisition
Office 763 - 479 -4820
City of Albertville
Fax 763 - 479 -4821