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April 13, 2009 Item No. 7H <br />Page 3 <br />Purchase Agreement for Wetland Credits <br />The next step in the process is for both the buyer of the credits (Mounds View) and the <br />seller to sign a Purchase Agreement for the transaction. The Purchase Agreement has <br />been prepared, and has been reviewed and agreed to by both the City Attorney and the <br />designated representative for the seller. A copy of the proposed Purchase Agreement <br />is included with this Staff Report. <br />The Purchase Agreement actually involves two sellers of the credits: Restoration <br />Development LLC, and U.S. Home Corporation (dba Lennar). In addition to the <br />payments made to each seller, an administrative fee is also charged by BWSR for the <br />management of the bank and the execution of the transaction. The total of the three <br />payments to be made by Mounds View under the Purchase Agreement is $3,896.87. A <br />breakdown of the payments is shown in the following table: <br />County Road 10 Trailway Project: Segments 1-5 <br />Purchase of Credits for Wetland Impacts <br />Item Amount <br />Restoration Development, LLC $ 2,439.36 <br />U.S. Home Corporation $ 1,219.68 <br />Subtotal $ 3,659.04 <br />BWSR – Administrative Fee (6.5%) $ 237.83 <br />Total Payments $ 3,896.87 <br />As noted in Paragraph 5 of the Purchase Agreement, the transaction is to be completed <br />by April 30, 2009. <br />Once the Purchase Agreement has been approved and executed, the City will prepare <br />and submit a completed Withdrawal Form for the purchase of credits from each seller, <br />along with the payment to each. The seller will certify the receipt of payment and sign <br />the Withdrawal Form. The transaction will then be approved by BWSR, and the City <br />account will be debited for the wetland credits. The City will receive signed copies of <br />the approved Withdrawal Forms from BWSR, which will serve as both their receipt for <br />the transaction, and also proof of the required mitigation for the project impacts. <br />The Withdrawal Form for each credit purchase has been prepared, and will be provided <br />for signature by City officials upon approval of the Purchase Agreement.