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Mark Statz <br />From:David Pattberg <david.pattberg@centrahomes.com> <br />Sent:Friday, July 29, 2022 3:15 PM <br />To:Mark Statz <br />Cc:Carla Dunham; Tom Hart <br />Subject: <br />Sorel Quarter <br />Caution:Thisemailoriginatedoutsideourorganization;pleaseusecaution. <br />Mark <br />Asyouknowwehavebeenstrugglingtofinalizethisdeal. <br />Afteracomprehensivereviewofthelanddevelopmentwork,thetownhomebuildingsandreviewingoptionswithour <br />contractors,wedonotseeawaytomakethisasuccessfulneighborhood.Unfortunately,weareexercisingourrightsin <br />thePurchaseAgreementtoterminatetheagreement. <br />Ultimately,wefoundthatoverthelastfewmonthscostshaveincreasedmuchmorethananticipated.Wehavenotonly <br />seenHomeBuildingCostscontinuetorisebuttheLandDevelopmentCostshavebeenmuchhigherthanweexpected. <br />Inaddition,NewHomePriceshavestartedtocomedown.WehavebeenwatchingtheNewTownhomemarketvery <br />closelyandbuildersareloweringpricestocontinuetomakesales. <br />Finally,InterestRateshavebeenincreasingandthusreducingthebuyer'sabilitytopurchasehomes. <br />Thechallengeofhigherbuildinganddevelopmentcosts,alongwithdroppingsalepricescombinedwithrisinginterest <br />rateshavecombinedtomakeSorelQuarternoteconomicallyviable. <br />WeexpectthistobeadifficultmessagetosharewiththeCityCouncil.Wehaveappreciatedtheeffortthatyourselfand <br />otherCityStaffhaveputintomakingthisaneighborhoodthatwouldmeettheCityVisionofanewDowntownandwe <br />wishtheCitythebestofluckinthefutureoftheland. <br />WeunderstandtheRealEstateindustryisasmallworldofprofessionalsandexpectourpathstocrossagain. <br />Sincerely, <br />...Dave <br />David Pattberg <br />763-772-1017 (ofc) <br />www.CentraHomes.com <br />To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. <br />1 <br /> <br />