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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Hi again Mark,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I’m starting by attacking section 6 of the IAP lease,
which deals with construction. Surprisingly, most of the existing
language (sec. 6.4 especially) should work for us, even though IAP didn’t
have new construction in mind when it wrote the lease. I’m guessing
(ONLY guessing…) that we’ll want to think about three additional
provisions:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<ol style='margin-top:0in' start=1 type=1>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>A provision that states what
kind of building the homeowner is permitted to build. We could requre
that the homeowner submit a building plan to get approved to lease the
land. Building to that specific plan could then be a condition of
the lease. We could make that as general or specific as we wanted.<br>
<br>
<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>A provision that states when
the homeowner is required to start building, and when s/he would have to
finish building. For example, we could require construction to begin
within two years of signing the lease, and for the structure to be
finished according to the plans (occupancy permit?) within five
years. That’s more time that most people would take, but it
would allow flexibility while letting YRHC to enforce its goal of getting
a year-round home built on the land.<br>
<br>
<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> A provision that assigns
a transfer value to the structure while it’s under
construction. If somebody can’t finish it, the lease needs to
state a transfer value just as it would for a finished building.
YRHC, or better yet another eligible buyer, can then step in and take over
construction.<o:p></o:p></span></font></li>
</ol>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>We’ll also have to work out a final transfer formula
just like IAP’s lease does. I’ll write to you about them
separately.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Let me know what your thoughts are about all this when you
get a chance. Remember that these are just my guesses and I really don’t
know what I’m doing!<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Sorry this is so long. I’ll write you more as I
get it down.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Alden<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Here is my outline of section 6, for your reference:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><u><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Section 6: Buildings and Improvements: Ownership
and Transfer</span></font></u><br>
6.1 Homeowner owns building and improvements.<br>
6.2 Transfer price calculated according to Appendix A.<br>
6.3 Sales process: <br>
A.) IAP may find an approved buyer; <br>
B.) IAP may buy if it can't find a buyer; <br>
C.) After 12 months, homeowner may sell to any buyer for
transfer price; <br>
D.) If IAP consents, buyer may list for more than tranfer
price, but balance goes to IAP.<br>
6.4 Construction and repair: <br>
A.) Homeowner pays all costs;<br>
B.) Lawful and workmanlike;<br>
C.) Consistent with lease;<br>
D.) No changes to exterior without IAP's consent;<br>
E.) IAP gets to approve all plans and building
permits.<br>
6.5 Homeowner may make improvements but IAP may value them at non-luxury
equivalent.<br>
6.6 Homeowner documents costs with receipts and invoices; IAP may
inspect; Homowner's own labor valued at rate of someone with comparable skills.<font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><br>
<br>
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>________________________________________________</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Alden Robinson</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Island Institute Fellow</span></font><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
face=Arial><span style='font-size:10.0pt;font-family:Arial'>Town of Long
Island</span></font></st1:City><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>, <st1:State w:st="on">Maine</st1:State></span></font></st1:place><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>(207) 837-0636</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>arobinson@islandinstitute.org</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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