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(e) City's Acquisition of Personal Property: The City will attempt to acquire the personal <br />property existing upon Lots A, B, C, & D in a manner and timeline determined at the City's <br />sole discretion; subject to the terms of this Contract. If, after making a good faith effort to <br />obtain the personal property, City is unable to perform, City may terminate this Contract, or <br />may extend the deadline for performance to permit notice of partial park closure pursuant to <br />Minnesota Statutes, § 327C.095. Terrace Heights agrees, that as City acquires said <br />personal property, no rent or other payment shall due from City to Terrace Heights for the <br />loss of income associated with the discontinued occupancy of Lots A, B, C, and D. It is <br />further understood, that should City rent the personal property prior to removal or demolition <br />on Lots A, B, C, & D, then City shall be responsible for lot rent associated with the <br />respective mobile home unit. <br />6. Possession and Demolition: The parties shall deliver sole and actual possession of <br />their respective Parcels to the other party, free and clear of all tenancies and parties in <br />possession on the closing date with the understanding that the City will be responsible for the <br />acquisition and removal or demolition of personal property existing upon Lots A, B, C, and D at <br />2442 Rice Street. The City further covenants to demolish and remove from Parcel 1 all signs, <br />encroachments, and existing improvements, including foundations and underground tanks, if <br />any, within 180 days after acquisition. <br />7. Closing and Taxes: This transaction shall be closed on or before 180 days after City's <br />acquisition of real estate located at 2442 Rice Street and 93 County Road B2 West in Little <br />Canada with the specific date to be determined by mutual agreement of both parties to this <br />agreement. All current real estate taxes are to be prorated as of the date of closing, and if the <br />amount of such taxes is not then ascertainable, the prorating shall be done on the basis of the <br />amount of the most recent ascertainable taxes. All transfer and conveyance taxes or <br />documentary stamps and special real estate taxes and assessments shall be divided equally <br />between the parties. The party receiving title to the Parcel shall pay for the cost of recording the <br />documents called for in this Contract. The cost of the escrow, if any, shall be divided equally <br />between the parties. <br />8. Time of the Essence: Time is of the essence of this Contract, but any defaulting party <br />shall have 10 days after receipt of written notice of a default to cure before the other party may <br />terminate or exercise other remedies under this Contract. <br />9. Notices: All notices, waivers and demands shall be in writing and shall be sent by <br />United States Certified Mail or overnight carrier with written delivery confirmation to City at City <br />of Little Canada, 515 Little Canada Road East, Little Canada, Minnesota 55117, Attention: City <br />Administrator or to Terrace Heights at 2442 Rice Street, Little Canada, Minnesota 55113, <br />Attention: Randy Graczyk. <br />10. Conflicts of Interest: City and any party executing this Contract on behalf of City <br />(collectively called "City") represents that, to the best of City's knowledge, no person or entity <br />connected directly or indirectly with City is an agent, employee, servant, supplier, licensee or <br />officer of Terrace Heights or any subsidiary or affiliate of Terrace Heights. <br />11. Covenants: All of the covenants, warranties, representations and agreements in this <br />Contract shall survive closing and shall run with the land and extend to and be binding upon the <br />heirs, executors, administrators, successors and assigns of the respective parties. Each party <br />S1H0\Depl\Legal\USLEGAL\CeNral Division\Mitlwest\022-007i (Little Canada)\COniract (revised 02.t A.07).doc <br />-3- <br />