HomeMy WebLinkAbout4.2b 100th and Jamaica LOI 12.17.21
December 17, 2021
Jennifer Levitt
City of Cottage Grove
12800 Ravine Pkwy S,
Cottage Grove, MN 55016
RE: LETTER OF INTENT
Dear Jennifer,
Thank you for taking the time to connect with us last week. We look forward to a continued
relationship and the prospect of developing in the City of Cottage Grove. Please review the
below terms and if acceptable, a Purchase Agreement will be drafted accordingly.
Terms
Buyer: Ryan Companies US, Inc.
Sellers: City of Cottage Grove
Property: The property shall consist of approximately 13 acres to the East
of Jamaica Avenue S & north of 100th St S. For tax purposes the
property is identified as a portion of PID 2102721340006,
(“Property”).
Purchase Price:
$1,840,410 or $3.25 per developable square foot
Earnest Money:
$50,000
The Earnest Money is applicable to the Purchase Price and fully
refundable to Buyer through the Due Diligence period or in the
event of Seller default. If Buyer completes Due Diligence, elects
to go forward and fails to close this transaction, the earnest
money is non-refundable.
Due Diligence: Buyer will have six (6) months from date of a fully executed
Purchase Agreement to complete its due diligence and satisfy the
following additional contingencies:
Environmental review
Alta Survey review
Title review
All Governmental Approvals to Buyer’s satisfaction
Stormwater review
Geotechnical review
Executing a lease with tenant
Seller agrees to cooperate fully with buyer in obtaining any
necessary governmental approvals for the property, including,
without limitation, re-platting the property to subdivide the lot
Buyer will purchase. Seller acknowledges that such plat is
required to be filed upon closing the transaction. Additionally,
Seller shall allow Buyer access to the property to complete all
necessary inspections and due diligence.
If Buyer has not satisfied any of the above contingencies at the
end of the Due Diligence period (as it may be extended), Buyer
may terminate the purchase agreement and receive a refund of its
initial earnest money deposit.
Buyer will perform all due diligence at Buyer’s sole expense. In
the event the sale does not close, Buyer will share copies of all
due diligence materials with Seller.
Extension Option Buyer shall have two (2) options to extend the Due Diligence
Period for sixty (30) days, each. Upon exercise of the first
Extension Option, $35,000 of the original earnest money will
become nonrefundable. Upon exercise of the second extension
option, the remainder of original earnest money will be granted to
Seller. The original earnest money shall be applicable to the
purchase price.
Closing:
Within Thirty (45) days following expiration of Due Diligence
period or sooner as elected by Buyer.
Real Estate Taxes and
Assessments:
Seller represents there are no previously levied assessments.
Upon closing, Real Estate Taxes and Assessments will be
prorated to the date of closing.
The terms and conditions outlined in this proposal are not intended to be considered legally
binding upon either party, and are for discussion purposes only. This proposal contains an
outline of basic terms only, and both parties acknowledge and agree that additional provisions
must be negotiated to each party’s satisfaction in a final agreement.
Please do not hesitate to contact us with any questions. Thank you for your consideration and
we look forward to next steps.
Sincerely,
Dan Mueller Peter Fitzgerald
VP of Real Estate Development VP of Real Estate Development
Exhibit A