2005.07.18 EDA Packet - Laserfiche WebLink

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3. Deposit: Ryland will place the sum of Twenty-five Thousand Dollars ($25,000) in the form of an irrevocable letter of credit in escrow with, (the "Escrow Agent") at the time of execution of the contract. Ryland's liability for non-performance shall be limited to the amount of the deposit. The deposit will be held pursuant to escrow instructions and other provisions incorporated in the contract and shall be applied to the Purchase Price at the time of the [first] closing. 4. Feasibility Period: Seller shall deliver to Ryland, within five (5) days after the complete execution and delivery of the contract, all documents or materials in Seller's possession or control regarding the Property including, without limitation, planning and zoning documents, contracts, surveys, title reports, soil tests, environmental assessments,building plans, analyses and engineering studies and data, except for documents containing confidential or proprietary information relation to the Seller. Ryland shall have a period of 120 days after the complete execution and delivery of the contract (the"Feasibility Period")to examine title to the Property and conduct such marketing, economic, feasibility, and physical inspections as Ryland deems necessary or prudent to determine the suitability of the Property for Ryland's use. Such matters which Ryland may examine or review may include,by way of example and without limitation, physical conditions (including soil tests, environmental assessments, and wetlands review); the access to public roadways to and from the Property; the availability of permits; the suitability of existing zoning; recorded easements, covenants, conditions and restrictions;the availability of electric, natural gas water, cable television, storm sewer, and sanitary sewer services; and reports and analyses related to economic feasibility. 5. Conditions Precedent: Ryland's obligation to settle on the purchase of the Property shall be contingent on: final approval of a preliminary plat of a subdivision of the Property, any necessary zoning changes from the appropriate governmental authorities to allow for the development of the Property into a minimum of 206 residential lots, and the acquisition of suitable easements or governmental consents related to utility services. The property shall have a clean PhaseI and Phase II Environmental or shall be mitigated if necessary as recommended by the Environmental Reports. There shall be no existing or pending assessments against the property and no "off-site" costs. All existing structures shall be removed from the site, basements and excavations filled; the site graded smooth and left in a readily developable state by the Seller. With your affirmative response, we will instruct Ryland's attorney to prepare a contract in accordance with the terms outlined herein. By executing this letter of intent, the parties agree to make good faith efforts to agree on a contract of purchase and sale. Nevertheless, neither party shall be under any binding obligation until such time as a mutually agreeable contract is fully executed by the appropriate officers/partners in each of our organizations. In addition to other required procedures, Ryland must obtain necessary internal approvals prior to delivering any nonrefundable earnest money.