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1.6 Mark Casey Purchase Agreement with Dominium —HRA Owned Parcels Page 2 May 8, 2012 3. Earnest money in the amount of $25,000 ($12,500 now and $12,500 July 1 after inspection) will be deposited with Commercial Partners Title, LLC (Escrow Agent). This money is non- refundable upon expiration of the Financing Contingency Period, which is December 31, 2012. Dominium needs to have a financing commitment in place by this date. 4. I -IRA is selling property "As Is" and Dominium has Lentil July 1, 2012 to finalize inspection of the property and file any written objections. Dominium will be assuming payment of the outstanding special assessments that were levied for the construction of 39°1 Avenue (approximately $97,500 balance remains). 6. Dominium is required to have all governmental approvals for the development of the project by December 31, 2012 and is solely responsible for all costs related to obtaining the approvals. 7. The City, MRA and Dominium are to enter into a Development Agreement for the project by May 30, 2012. 8. Acknowledges that Dominium is seeking an additional $295,000 in funds from Ramsey County on or before the expiration of the Financing Contingency Period (December 31, 2012) and that the City will assist them as needed in obtaining the funding. Dominium can back out of the purchase agreement if they do not receive this grant. 9. Closing is to take place by no later than March 1, 2013 and the HRA and Dominium will be paying customary Seller and Buyer expenses. There will be terms in the Development Agreement between the HRA, City and Dominium that will address the possibility of an increase in the purchase price for the land. Dominium will increase the payment for land to $10,000/unit if they receive other grant resources or if construction costs are less than anticipated. This means that if either cost savings or grants equaled or exceeded $304,000, the City and Mr. Pratt would be reimbursed this amount on a prorated basis accordingly (up to $160,755 for the HRA and up to $143,245 for Len Pratt). If the amount was less than $304,000, then the City and Len Pratt would be reimbursed at the lower level accordingly (i.e. savings of $200,000 would be prorated back to the City and Len Pratt in the amount of $105,760 to the HRA and $94,240 to Pratt). If the HRA is agreeable to these terms, the final purchase agreement will be brought to the HRA at their May 8, 2012 meeting. In addition, the HRA will hold a public hearing on the sale of the parcels at the meeting in accordance with MN Statutes 469.029, Subd (2). Proceeds from the sale of the HRA parcels will go to pay back the interfund loan to the Water Filtration Fund. Please contact me at 651-697-8506 with any questions.