HomeMy WebLinkAboutResolution 10134 - 2025/07/14RESOLUTION NO. 10134
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION APPROVING OPTION AGREEMENT AND
AUTHORIZING THE PURCHASE OF REAL PROPERTY
WHEREAS, Jeffrey Malmgren and Kerri Ramsey Malmgren, husband and wife
(collectively, the "Owner"), are the fee owners of four parcels of real property, which are located
at 0 Woodlawn Drive, Mounds View, Minnesota 55112 and legally described as set forth in
Exhibit A (the "Property'); and
WHEREAS, the Owner intends to enter into that certain Option Agreement, dated July
14, 2025 (the "Agreement"), with the City of Mounds View ("City') whereby the Owner agrees to
grant the City an option to purchase the Property; and
WHEREAS, the City desires to enter into an option to purchase the Property; and
WHEREAS, the City has followed any and all applicable statutory provisions and finds
that the option to purchase the Property and the agreement will fulfill the objectives, goals and
mission of the City.
NOW THEREFORE, BE IT RESOLVED by the City of Mounds View as follows:
1. The recitals set forth in the preamble to this Resolution are incorporated into this
Resolution as if fully set forth herein.
2. The City hereby approves the Agreement in substantially the form presented to the
City on this date and on file with the City Administrator, including the option to
purchase and the acquisition of the Property by the City, subject to modifications that
do not alter the substance of the transaction and that are approved by the City's
attorney.
3. The Mayor and City Administrator of the City are hereby authorized and directed to
execute the Agreement for and on behalf of the City. The Mayor and City Administrator,
staff and consultants of the City are hereby further authorized to perform the City's
obligations under the Agreement, and to draft, execute, and deliver any and all
documents deemed necessary or convenient to carry out the intentions of this
Resolution, including the acquisition of the real property contemplated herein.
Adopted on the 141h day of July, 2025.
Lindstrom, Mayor
Attest:
Nyle ikmu , City Administrator
(SEAL)
DOCSOPEIe MU210`,329\1036915.v2-7/9/25
EXHIBIT A
LEGAL DESCRIPTION
Property ID: 053023230021 Description: LAPORT MEADOWS LOT 2 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
Property ID: 053023230022 Description: LAPORT MEADOWS LOT 3 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
Property ID: 053023230023 Description: LAPORT MEADOWS LOT 4 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
Property ID: 053023230024 Description: LAPORT MEADOWS LOT 5 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
A-1
DOCSOPEN\MU210\329\ 103 6915. v2-7/9/25
OPTION AGREEMENT
THIS OPTION AGREEMENT is entered into this ) `y day of -S H J Y , 2025, by
Jeffrey Malmgren and Kerri Ramsey Malmgren, husband and wife, (the "Seller') in favor of the
City of Mounds View, a municipal corporation under the laws of Minnesota (the "Buyer").
WHERAS, Seller is the owner of property located in the City of Mounds View, Ramsey
County, Minnesota, located at 0 Woodlawn Dr (Parcel ID Numbers: 053023230021,
053023230022, 053023230023, 053023230024), Mounds View, MN, being legally described on
Exhibit A attached hereto (the "Property") and subject to a survey description; and
WHEREAS, Buyer wishes to obtain an option to purchase the Property for a use
consistent with the long term plans for development of the community; and
WHEREAS, the Seller is willing to grant to Buyer an option to purchase the Property
under certain terms and conditions.
NOW, THEREFORE, in consideration of the Buyer's payment to Seller of $500.00 as the
option money ("Option Money"), Seller and Buyer have agreed to set forth their agreement
regarding the Property pursuant to this Option Agreement, as follows:
Section 1. Option to Purchase.
1.1. O_ption. Seller hereby grants to the Buyer the exclusive right to purchase the
Property on the terms and conditions hereinafter set forth (the "Option"). Buyer shall provide
notice to Seller that Buyer is exercising Buyer's exclusive option to purchase the Property and
the purchase of the Property shall proceed to closing pursuant to the terms and conditions of this
Option Agreement.
1.2. Term of Option. The period during which the Option may be exercised by Buyer
(the "Option Period") shall be 365 days from the date of this Option Agreement.
1.3. Purchase Price. Buyer agrees to pay the Seller Two Hundred Thousand and
No/100 Dollars ($200,000.00) for the Property including the Option Money. If the exercise of
the Option is not made by the Buyer pursuant to this Option Agreement, Seller shall return the
Option Money to the Buyer.
1.4. Exercise of Option. This Option and any extension thereof shall be deemed
exercised if Buyer gives written notice of Buyer's intention to extend or exercise the Option to
Seller in accordance with this Option Agreement.
1.5. Closing. If the Buyer exercises the Option, and unless extended by agreement of
the parties, the closing ("Closing") on the purchase of the Property shall occur on a business day
not later than sixty (60) days after receipt of written notice of Buyer's intention to exercise the
Option. Unless otherwise mutually agreed by Seller and the Buyer, the execution and delivery of
all deeds, documents and the payment of any purchase price shall be made in cash at the offices
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of the Buyer. The Buyer shall take possession of the Property on the day of execution and
delivery of the deed therefor.
1.6. Assignment of Option. Buyer shall have the right, at its sole discretion, to assign
this option to a third party for no additional consideration.
1.7. Preliminary Development. After execution of this Option Agreement, Buyer shall
have the right to enter upon the Property for the purpose of taking soil tests and borings, making
surveys and maps and performing investigative work, including environmental testing and
assessment, as Buyer may deem necessary; provided, however, Buyer shall indemnify and hold
Seller harmless from any mechanic's liens or claims arising out of such preliminary development
work by Buyer. Buyer may assign this right to a third party or parties at its sole discretion.
1.8. Development of Property. Seller shall, both before and after the date of closing,
but without expense to Seller, cooperate and join with Buyer in any and all actions, petitions and
documents which are usual and necessary to accomplish the development of the Property
consistent with Buyer's purposes and to plat the same for such purposes, all at the sole expense
of the Buyer.
1.9. Examination of Title. Within 20 days after the date on which the Buyer exercises
the Option, Seller shall deliver to the Buyer existing abstracts for the Property. Buyer shall
obtain any desired title work from a title company acceptable to the Buyer. The Buyer shall have
thirty (30) days from the date of its receipt of the such updated abstract or title work to review
the state of title to the Property and to provide Seller with a list of written objections to such title.
Upon receipt of the Buyer's list of written objections, Seller shall proceed in good faith and with
all due diligence to attempt to cure the objections made by the Buyer. In the event that the Seller
has failed to cure objections within twenty (20) days after its receipt of the Buyer's list of such
objections, the Buyer may (i) by the giving of written notice to Seller terminate this Option
Agreement and this Option Agreement shall be null and void and neither party shall have any
liability hereunder, or (ii) waive such objection and proceed pursuant to this Agreement. The
Buyer shall have the right, but not the obligation, to purchase title insurance at the Buyer's sole
cost. Seller will take no actions nor permit any liens to encumber title to the Property between
the date on which the Buyer exercises the Option and the date on which the Property is delivered
to the Buyer.
Notwithstanding any other provision of this Option Agreement, Seller shall at all times be
responsible to pay special assessments, if any, while the Seller is in possession of the Property.
Section 2. Documents. The following documents shall be in approved form, be
executed by the Seller either before or at Closing and be delivered by Seller at Closing:
2.1. Warranty Deed. Warranty Deed for good, marketable, insurable, and indefeasible
title, duly executed in recordable form from Seller to the Buyer conveying the Property, subject only
to the following Permitted Exceptions:
1) building and zoning laws, ordinances, state and federal regulations;
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2) public utility and road easements of record which do not materially interfere with the
use or development of the Property;
3) lien of current taxes not yet due and payable;
4) reservation of any mineral rights or minerals to the State of Minnesota;
5) any lien, claim or encumbrance incurred or suffered by Buyer.
Said Warranty Deed also shall be accompanied by a well disclosure.
2.2. Documents to be Delivered at Closing by Seller. In addition to the Warranty
Deed required at paragraph 2.1. above, Seller shall deliver to the Buyer:
A. Standard form Affidavit of Seller.
B. Updated abstract of title, if available.
C. A "bring -down" certificate, certifying that all of the warranties made by Seller in
this Option Agreement remain true as of the date of closing.
D. Certificate that Seller is not a foreign person or entity.
E. Bill of Sale conveying title of the personal property, if any, to Buyer.
F. Well disclosure certificate, if required, or, if there is no well on the Property, the
Warranty Deed given pursuant to subparagraph (4) above must include the
following statement:
"The Seller certifies that the Seller does not know of any wells on the
described real property."
G. Individual sewage treatment system disclosure statements prepared on forms
provided for that purpose as required by applicable statutes.
H. Methamphetamine Disclosure form required by applicable statutes.
I. A comprehensive endorsement to the title insurance policy will be included and
paid for by Seller.
J. Executed termination agreements terminating all leases affecting the Property.
K. Such other documents as may be reasonably required by Buyer's title examiner or
title insurance company.
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2.3. Closing Costs and Related Items.
A. Buyer will pay: (a) the closing fees charged by the title insurance or other closing
agent, if any, utilized to close the transaction contemplated by this Agreement; (b)
the premium for title insurance policy, if any, obtained by the Buyer, with the
exception of a comprehensive endorsement which shall be paid by the Seller; and
(c) recording fees required to enable the Buyer to record its deed from Seller
under this Option Agreement.
B. Seller will pay: (a) fees for the title commitment; (b) any transfer taxes required
to record the deed from Seller under this Option Agreement; (c) all liens,
encumbrances or mortgages, if any, and (d) any other recording fees that may be
required to give Buyer good marketable title to the Property.
Section 3. Taxes. In the event the Buyer exercises its Option, real estate taxes due
and payable in the year of closing upon the sale of the Property, if any, shall be paid by Seller
and the Buyer, pro-rata as of the date of closing on the Property. Seller shall pay all delinquent
taxes and penalties and interest thereon on or before closing, if any. Seller shall pay at Closing
all special assessments or similar governmental impositions levied or deferred against the
Property. The Buyer shall be responsible for all special assessments or similar governmental
impositions levied against the Property from the day after the date of closing on the Property. If
this conveyance constitutes a split in a legal description or tax parcel, Buyer's pro-rata share of
taxes due in the year of closing shall be based on the date of closing and on the percentage of the
tax parcel acquired by Buyer.
Section 4. Representations and Warranties by Seller. Seller represents and
warrants to the Buyer that:
4.1. Seller has full power and authority to enter into and perform this Option
Agreement in accordance with its terms.
4.2. Seller has good, insurable and marketable title in fee simple to all of the Property.
4.3. Seller will not be entitled to any relocation benefits or assistance as a result of
exercise of this option by the Buyer.
4.4. Upon transfer of the Property to the Buyer, no third party by virtue of any
purchase agreement, letter of intent or similar instrument executed by Seller, unless such
instrument is assigned to the Buyer and the Buyer's request, will have any claim or right to or
against the Property, or against the Buyer as a result of any such instruments.
4.5. Seller has no notice or knowledge of. (i) any violation of any law, ordinance, rule,
code or regulation requiring or calling attention to the need for any improvement, construction,
alteration or installation on or in connection with the Property; (ii) any uncured notice of any
unsatisfactory condition concerning the Property from any insurance company, Board of Fire
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Underwriters or mortgagee; or (iii) any planned, pending or contemplated condemnation, eminent
domain, or similar action or proceeding with respect to the Property or any part thereof.
4.6. There have been no bankruptcy or dissolution proceedings involving Seller during
the time Seller has had any interest in the Land; there are no unsatisfied judgments or state or
federal tax liens of record against Seller; there are no unrecorded mortgages, contracts for deed,
purchase agreements, options, leases, easements, or other agreements or interests relating to any of
the Property; and there are no persons in possession of any portion of the Property other than
Seller.
4.7. Seller is not in default in the performance of any obligations under any easement
agreement, covenant, condition, restriction, or other instrument relating to the Property.
4.8. Seller warrants that buildings, if any, are entirely within the boundary lines of the
Property. Seller warrants that there is a right of access to the real Property from a public right-
of-way. Seller warrants that there has been no labor or material furnished to the Property for
which payment has not been made. Seller warrants that there are no present violations of any
restrictions relating to the use or improvement of the Property.
Seller hereby agrees that each of the foregoing representations and warranties shall
survive closing hereunder and that the breach of any thereof shall constitute a default, whether
said breach occurs prior to or after Closing, entitling the Buyer to exercise any remedy provided
to the Buyer in this Option Agreement in the event of a default by Seller.
Section 5. Default. If Seller defaults in its obligation to close and deliver the deed in
accordance with the provisions of this Option Agreement, the Buyer may, by notice upon Seller,
(i) terminate this Option Agreement, in which event Seller shall reimburse the Buyer for all costs
and expenses incurred by the Buyer in connection with this transaction up to and including the
date of default, or (ii) avail itself of any other remedy for said default which it may have at law,
in equity or by statute, including, but not limited to, an action for damages; or iii) seek specific
performance, and the reimbursement of costs and expenses. If the Buyer shall have exercised the
option granted hereunder and if the Buyer shall default in the performance of any of its
obligations hereunder, then Seller may avail itself of any remedy for said default which it may
have at law, in equity or by statute, including, but not limited to, an action for damages and/or
specific performance.
Section 6. Contingencies.
6.1. Buyer's obligation to buy is contingent upon the following:
(A): Buyer's determination of marketable title pursuant to Section 1.9. of this
Option Agreement; and
(B): Buyer's determination, in its sole discretion, that the results of the
environmental investigation under Section 8 of this Option Agreement are
satisfactory to Buyer.
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(C): Buyer's approval of an appraisal of the Property, at Buyer's expense.
(D): Seller to supply Buyer with a copy of all written leases, if any, and a list of
any outstanding verbal agreements regarding leasehold agreements and
evidence that such leases or agreements have been terminated.
(E): Approval of this Option Agreement by the Buyer's governing body.
Buyer shall have until sixty (60) days from execution of this Option Agreement to
remove the remaining contingencies set forth above. The contingencies are solely
for the benefit of Buyer and may be waived by Buyer. If the contingencies are
duly satisfied or waived, then the Buyer and Seller shall proceed to close the
transaction as contemplated herein. If, however, one or more contingencies is not
satisfied, or is not satisfied on time, and is not waived, this Option Agreement
shall thereupon be void, at the option of Buyer. If this Option Agreement is
voided by Buyer, Buyer and Seller shall execute and deliver to each other the
termination of this Option Agreement. As a contingent agreement, the
termination of this Option Agreement is not required pursuant to Minnesota
Statutes, Section 559.21, et seq.
6.2. Seller's obligation to sell is contingent upon the following:
(A): None.
Section 7. Operation of Property Prior to Closing. Until the Closing Date, Seller
shall have the full responsibility for the continued maintenance of the Property. Prior to the
Closing Date:
A. Seller shall not cause any new liens, leases, contracts or encumbrances to be
created by Seller against the Property;
B. Seller shall continue to comply with all of its duties and obligations as set forth in
any leases or contracts in effect at the Property;
C. Seller shall (i) maintain the Property in good repair, (ii) not make, terminate or
materially change, amend, modify materially any agreements relating to the Property
or other rights, obligations or agreements relating to use, ownership or operation of
the Property where such changes, amendments or modifications would increase the
Seller's obligations liability or expenses thereunder, not enter into any commitments
for the rental or use of the Premises or any portion thereof, and (iii) not make any
substantial alterations or changes to the Property other than ordinary and necessary
maintenance repairs without Buyer prior written approval, which shall not be
unreasonably withheld or delayed. Subject to the foregoing, Seller shall have the
right to continue to carry on the business currently conducted from the Property and
to operate the Property in the ordinary course of business.
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Section 8. Environmental Inspection and Representations.
8.1. Buyer and its agents shall have the right to enter upon the Property after the date
of this Option Agreement for the purpose of inspecting the Property and conducting such
environmental examination and tests as Buyer deems necessary. Buyer agrees to indemnify the
Seller against any liens, claims, losses, or damage occasioned by Buyer's exercise of its right to
enter and work upon the Property. Buyer agrees to provide Seller with a copy of any report
prepared as a result of such examination and tests.
8.2. Seller hereby warrants to Buyer that during the time the Seller has owned the
Property there have been no acts or occurrences upon the Property that have caused or could
cause contamination or hazardous substances in the subsoil or ground water of the Property or
other adjacent properties. This warranty shall survive the closing of this transaction.
8.3. In the event Buyer's testing discloses contamination or hazardous conditions in
the subsoil or groundwater of the Property, Buyer shall be privileged to rescind this transaction
and cancel this Option Agreement upon written notice to Seller.
8.4. Removal of Hazardous Material. Seller, prior to vacating the Property, shall
remove all substances which, under state or federal law, must be disposed of at an approved
disposal facility. This includes, but is not limited to, used oil, paints, solvents, fertilizers,
poisons, and the like.
8.5. Seller agrees to indemnify and hold harmless Buyer from any and all claims,
causes of action, damages, losses, or costs (including reasonable attorneys' fees) relating to
contamination or hazardous substances in the subsoil or groundwater of the Property or other
adjacent properties which arise from or are caused by acts or occurrences upon the Property prior
to Buyer taking possession of the same. This indemnity shall survive the closing of this
transaction.
Section 9. Possession.
9.1. Possession. Seller shall transfer possession of the Property to the Buyer no later
than date of closing.
9.2. Removal of Property. Seller agrees to remove from the Property all debris and
items of Seller's personal property not included in this sale no later than date of closing. Items
not removed by that date will be disposed of by the Buyer, and the cost of disposal will be
Seller's expense.
9.3. Utilities. Seller agrees to pay all charges for sewer, water, electric, gas, and cable
television or any other applicable utilities until date of closing, if any.
9.4. No encumbrances. Seller agrees not to place any liens or encumbrances on the
Property after the date of this Option Agreement.
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Section 10. Miscellaneous.
10.1. Notice. Any notice must be in writing, and will be deemed delivered if delivered
personally or when deposited in the United States Mail, postage pre -paid at the following
addresses (or such other address as may be designated in writing):
a) If to Seller: Jeffrey Malmgren and Kerri Ramsey Malmgren
C17 q �a.+•r view Q ve.. _5-
5-r • I , Yh vt 5511 (o
b) If to Buyer: City of Mounds View
Attn: Nyle Zikmund
2401 Mounds View Boulevard
Mounds View, MN 55112
with a copy to: Scott J. Riggs
Kennedy & Graven, Chartered
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
10.2. Right of Entry. The Buyer shall be entitled to enter upon the Property for
inspection, soil tests, and examination; provided that the Buyer will restore any disturbance to
the Property and will hold Seller harmless from and against all damages and liability caused by
the Buyer's actions.
10.3. Memorandum of Option. At the request of either party, the parties hereto shall
execute a Memorandum of Option in recordable form memorializing this Option Agreement.
10.4. Runs with the Land. The terms, covenants, indemnities and conditions of this
Agreement shall be binding upon and inure to the benefit of the successors and assigns of the
respective parties hereto. Time is of the essence of this Option Agreement.
10.5. Assignment. The Buyer shall have the right to assign its rights under this Option
Agreement.
10.6. No Waiver. Nothing herein shall be construed as, or deemed to be a waiver of,
the right of the Buyer at any time to exercise its powers of eminent domain with respect to the
Property.
10.7. Entire Agreement. This Option Agreement represents the entire agreement and
understanding between the parties concerning the subject matter hereof and supersedes all prior
agreements, whether written or oral.
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10.8. Modification and Waiver. No purported amendment, modification or waiver of any
provision hereof shall be binding unless set forth in a written document signed by both parties (in
the case of amendments or modifications) or by the party to be charged thereby (in the case of
waivers). Any waiver shall be limited to the circumstance or event specifically referenced in the
written waiver document and shall not be deemed a waiver of any other term hereof or of the same
circumstance or event upon any recurrence thereof.
10.9. Broker. Buyer represents that it has not engaged any real estate broker in
connection with the sale of the Property. Seller has not engaged the services of a broker, or if
Seller has engaged the services of a broker, Seller will be solely responsible for the costs of such
broker and shall defend, indemnify and hold Buyer harmless from any claims of such broker.
10.10. No Merger of Representations, Warranties. The representations and warranties
contained in this Agreement shall not be merged into any instruments or conveyance delivered at
closing, but instead shall survive closing, and the parties shall be bound accordingly.
10.11. Relocation Benefits. The Buyer has notified the Seller that (a) the Buyer only
seeks to acquire the Property by voluntarily conveyance; (b) the Buyer initiated negotiations; and
(c) if negotiations fail, the Buyer will not acquire or undertake acquisition of the Property by
eminent domain.
10.12. Specific Performance. This Option Agreement may be specifically enforced by
the parties, provided that any action for specific enforcement is brought within six months after
the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for
breach of this Option Agreement; the parties reserve all other remedies available at law or in
equity.
10.13. Indemnification. The Seller hereby agrees to protect, defend and hold the Buyer
and its officers, elected and appointed officials, employees, administrators, commissioners,
agents, and representatives harmless from and indemnified against any and all loss, cost, fines,
charges, damage and expenses, including, without limitation, reasonable attorneys' fees,
consultants' and expert witness fees, and travel associated therewith, due to claims or demands
of any kind whatsoever (including those based on strict liability) arising out of (i) the marketing,
sale or leasing of all or any part of the Property, including, without limitation, any claims for any
lien imposed by law for services, labor or materials furnished to or for the benefit of the
Property, or (ii) any claim by the State of Minnesota or the Minnesota Pollution Control Agency
or any other person pertaining to the violation of any permits, orders, decrees or demands made
by said persons or with regard to the presence of any pollutant, contaminant or hazardous waste
on the Property; and (iii) or by reason of the execution of this Agreement or the performance of
this Option Agreement. The Seller, and the Seller's successors or assigns, agrees to protect,
defend and save the Buyer, and its officers, agents, and employees, harmless from all such
claims, demands, damages, and causes of action and the costs, disbursements, and expenses of
defending the same, including but not limited to, attorneys fees, consulting engineering services,
and other technical, administrative or professional assistance. This indemnity shall be continuing
and shall survive the delivery of the Warranty Deed for the Property, and shall survive
termination or cancellation of this Option Agreement. Nothing in this Option Agreement shall
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DOC S O P EN\M U210\3 29\ 103 605 6. v2-7/9/25
be construed as a waiver or modification of immunity or limitation on liability to which the
Buyer is entitled pursuant to Minnesota Statutes, Chapter 466, or otherwise.
10.14. Release of Claims. The Seller and the Seller's attorneys, agents, employees,
former employees, insurers, heirs, administrators, representatives, successors and assigns, hereby
releases and forever discharges the Buyer, and its attorneys, agents, representatives, employees,
former employees, insurers, heirs, executors and assigns of and from any and all past, present or
future claims, demands, obligations, actions or causes of action, at law or in equity, whether
arising by statute, common law or otherwise, and for all claims for damages, of whatever kind or
nature, and for all claims for attorneys' fees, and costs and expenses, including but not limited to
all claims of any kind arising out of the negotiation, Buyer consideration, execution and
performance of this Option Agreement between the parties. Nothing contained in this paragraph
10.14. is intended to prevent the exercise of any rights available pursuant to this Option
Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Option Agreement to be
duly executed in their names and on their behalf on or as of the date and year first above written.
By:
Its:
By:
Its:
Seller
Jeffrey Malmgren
Kerri Ramsey Malmgren
Buyer
City of Mounds View
d
Zac r
T, If, �_
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EXHIBIT A
LEGAL DESCRIPTION
Property ID: 053023230021 Description: LAPORT MEADOWS LOT 2 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
Property ID: 053023230022 Description: LAPORT MEADOWS LOT 3 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
Property ID: 053023230023 Description: LAPORT MEADOWS LOT 4 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
Property ID: 053023230024 Description: LAPORT MEADOWS LOT 5 BLK 3 Property
Address: 0 WOODLAWN DR MOUNDS VIEW
A-1
DOCS OP EN\M U210\329\ 1036056. v2-7/9/25