Presentation on theme: "March Board Meeting March 27, 2010. Background 106 & 108 Como Ave Zoned as small business in residential area Put up for sale in 2008 for $100,000 and."— Presentation transcript:
March Board Meeting March 27, 2010
Background 106 & 108 Como Ave Zoned as small business in residential area Put up for sale in 2008 for $100,000 and $150,000 Trying to sell them as single family homes Contract for deed offers Lowered price to $85,000 each in 2009 Lowered price to $45,000 and $50,000 in 2010
Como Property Principles Risky to have Como properties in our name City could determine them as vacant houses. Someone could get injured on property Costs for snow removal and utilities Try and get rid of properties as quickly as possible Options Bull Doze and pave into parking lot Donate the houses Sell the contract for deeds at reduced price
Buyer Information Ying Xiong Occupation: Real Estate Developer Credit: OK Income: ~$40,000/year Misc: Currently has a lot of debt Wants to convert both houses to single family homes He will live in one property and rent the other
Current Offer 108 Como Ave $44,910 $2,000 Down Payment Payments: $315.57/month 7% Interest Closing: April 30, Como Ave $53,910 $2,000 Down Payment Payments: $379.00/month 7% Closing: April 30, 2010
Purchase Agreement Contingency MSUSA Board Approval Sale of contract for deed at no more than 25% reduction We can sell the contract but at a reduction Expect: 25 – 45% reduction
Recommended Motion The MSUSA Board of Directors approves the contract with the contingencies regarding the sale of 106 & 108 Como Ave properties. In addition, the MSUSA Board of Directors authorizes the Executive Director and State Chair authority to negotiate and have final approval on the sale of the contract for deed.