Laserfiche WebLink
<br />TERM SHEET <br />NEW BRlGHTON: NW QUADRANT: DAHLKE ACQUISITION <br /> <br />The City of New Brighton ("Buyer") is willing to purchase the Property described on the attached <br />Exhibit A (the "Property") from Elton Dahlke and Joann Dahlke (collectively, "Seller") under the <br />following terms and conditions: <br /> <br />Disclaimer: <br /> <br />Purchase Price: <br /> <br />Terms: <br /> <br />Closing Date: <br /> <br />Lease to Seller: <br /> <br />Billboard Lease: <br /> <br />This Term Sheet does not constitute an offer by the Buyer to buy or by the <br />Seller to sell the Property. All rights and obligations with respect to the <br />Property shall only be as provided for in a Purchase Agreement, which <br />Agreement is subject to the approval by the Seller and by the Buyer's City <br />Council. <br /> <br />$2,500,000.00 <br /> <br />$100,000.00 earnest money <br />$2,400,000.00 at closing <br /> <br />The later of (i) April 1 , 2003 or (ii) within 30 days from the date of any <br />closure letter or no action letter from the Minnesota Pollution Control <br />Agency ("MPCA") for required environmental remediation, if any. <br /> <br />Buyer agrees to lease the Property to Seller after closing, for a period of up to <br />three (3) years. For the fIrst twelve months after closing, no rent shall be <br />charged to Seller. Following this period, Seller agrees to pay Buyer a <br />monthly rent often thousand five hundred dollars ($10,500.00). <br /> <br />The Purchase Agreement will have the lease attached as an exhibit and the <br />lease will provide that the Seller may discontinue the lease with sixty (60) <br />days' notice to Buyer; and after ten (10) months, Buyer may discontinue the <br />lease with sixty (60) days notice to Seller. Seller will agree in the lease to <br />remain responsible for property maintenance, insurance, taxes and other <br />normal operations expenses throughout its tenancy. Seller will in the lease <br />agree to avoid causing the placement of any liens or encumbrances, <br />assignments or subleases on the Property during its period of tenancy. Seller <br />agrees to relinquish possession to Buyer immediately upon termination of the <br />lease. <br /> <br />Buyer and Seller acknowledge that there exists a valid lease from Elton <br />Dahlke to Eller Media Company (the "Billboard Lease") for the purpose of <br />erecting and maintaining advertising sign structures on the Property. Buyer <br />intends to allow the continuation of the Billboard Lease for an indefinite <br />period oftime after closing, with Seller receiving lease payments. <br /> <br />Buyer and Seller agree during Buyer's due diligence to attempt to modify the <br />Billboard Lease to pennit termination of that agreement at a later date (which <br />date is to be detennined by Buyer). If the Billboard Lease is modified to <br />permit termination at a later date, Buyer agrees that said termination will <br />