5.0. EDSR 12-11-2000 c
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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
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13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD & Phone (763) 441-7420 • Fax (763) 441-7425
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Amendment to Contract for Deed
This Amendment to Contract for Deed is made as of the day of ,
2000 by and between LeRoy F. Brown and Ruth H. Brown, husband and wife ("Seller") and The
Economic Development Authority in and for the City of Elk River, a body corporate and politic
("Purchaser").
RECITALS
WHEREAS, the parties entered into that certain Contract for Deed (the"Contract") dated
June 29, 1999, filed June 30, 1999 in the office of the County Recorder for Sherburne County,
Minnesota as Document No. 393104 respecting real property located in Sherburne County,
Minnesota, legally described on Exhibit A attached hereto and made a part hereof;
WHEREAS, the parties wish to amend the terms of the Contract as set forth in this
Amendment.
NOW, THEREFORE, it is agreed by and between the parties as follows:
1. The payment due under the Contract on January 15, 2001 shall be in the amount of
$53,294.25.
2. Commencing on July 15, 2001, and continuing on the 15th day of each January and
July thereafter to, and including, July 15, 2003, semi-annual payments shall be due in the amount
of the $54,747.22 each. Said payments to be applied first to accrued interest and the balance
toward the reduction of the principal balance. A final payment of unpaid principal and accrued
and unpaid interest shall be due and payable on January 15, 2004. The interest rate under the
Contract shall remain at seven percent per annum on the unpaid principal balance from time to
• time outstanding.
3. The parties acknowledge that, as of the date of this Amendment, the unpaid
principal balance due under the Contract is $329,391.42 and that the next payment is due on
January 15, 2001.
4. Except as set forth in this Amendment, all of the terms, covenants and conditions
set forth in the Contract shall remain in full force and effect.
(The balance of this page has been intentionally left blank)
(Separate signature pages are attached)
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• (Signature page to be attached to
Amendment to Contract for Deed
dated , 2000
by and between LeRoy F. Brown and Ruth H. Brown, Sellers,
and
The Economic Development Authority in and for the
City of Elk River, Purchaser)
Sellers:
LeRoy F. Brown
Ruth H. Brown
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
f
2000 by LeRoy F. Brown and Ruth H. Brown, husband and wife.
Notary Public
S
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411
(Signature page to be attached to
Amendment to Contract for Deed
dated , 2000
by and between LeRoy F. Brown and Ruth H. Brown, Sellers,
and
The Economic Development Authority in and for the
City of Elk River, Purchaser)
Purchaser:
The Economic Development Authority
in and for the City of Elk River
By
Its
And
Its
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE)
The foregoing instrument was acknowledged before me this day of
, 2000 by and , the
and of The Economic Development Authority in
and for the City of Elk River, a body corporate and politic.
Notary Public
This Instrument Drafted By:
Gray, Plant, Mooty, Mooty& Bennett
3400 City Center
33 South Sixth Street
Minneapolis, MN 55402
(jmh)
GP752285
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