2017-04-12 CC Packet - Laserfiche WebLink

Home Browse Search

Ruffridge-Johnson Equipment Co Inc 3024 4th Street SE • Minneapolis MN 55414 TEL 612 378 9558 FAX 612 378 9385 April 3, 2017 HAND DELIVERED Mr. Mike Ericson City Administrator Centerville City Hall 1880 Main Street Centerville, MN 55038-9794 RE: Lot 2, Block 1, Clearwater Business Park, Anoka County, Minnesota Dear Mike, Joe Ryan, CEO of Oppidan, has requested a 10 month extension of the Due Diligence Periods in the two Purchase Agreements for the properties that Oppidan is under contract to purchase from my wife, Sophie, and me. Joe explained that Oppidan needs the additional time to reduce its project costs and to confirm financing on the project. According to Joe, construction bids came in much higher than expected. Consequently, Oppidan has had to reduce the size of its project to get costs to an acceptable amount. I have agreed to give Oppidan a 10 month extension starting April 1, 2017 and ending January 31, 2018. 1 have also set April 2, 2018 as the closing date if Oppidan ultimately proceeds to close on the two properties. However, Oppidan still has the right to terminate the Purchase Agreements before January 31, 2018. The extension I have granted Oppidan is contingent on obtaining an extension of the Feasibility and Inspection Period in the Purchase Agreement that Sophie and I have with the City of Centerville for the same 10 month period starting April 1, 2017 and ending January 31, 2018. A closing on our purchase of the Property would be contingent on our first closing on the sale to Oppidan. If the closing with Oppidan occurs, then the closing with Centerville would occur on or about April 4, 2018. For the reasons I have explained, I request that the City of Centerville grant Sophie and me a 10 month extension of the Feasibility and Inspection Period. Please advise me of your response to my requested extension no later than April 6, 2017. If we are not granted the requested extension, we will have no choice but to terminate our Purchase Agreement with the City. We appreciate Centerville's anticipated patience and understanding in responding to our request. We are also disappointed that Oppidan needs an extension. However, considering the scope of its planned project and the associated cost, we understand their needs. Likewise, we intend to invest a substantial amount in the site purchase and construction of a new facility in Centerville and we need to be able to confidently proceed with our plans. Construction & Mining Equipment Since 1936 25