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<TITLE>FW: Lease outline and buyback ideas for tonight's meeting</TITLE>
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<P><FONT SIZE=2>Hello YRHC,<BR>
<BR>
We had a problem with our server. Here is an email Mark sent earlier.<BR>
<BR>
Alden<BR>
<BR>
<BR>
-----Original Message-----<BR>
From: Mlongreene2@aol.com [<A HREF="mailto:Mlongreene2@aol.com">mailto:Mlongreene2@aol.com</A>]<BR>
Sent: Thu 4/19/2007 6:13 AM<BR>
To: housingcommittee@townoflongisland.us<BR>
Subject: Lease outline and buyback ideas for tonight's meeting<BR>
<BR>
Hi All, Attached is a modified lease from Islesboro that we can use as a<BR>
working document tonight. We will go thru it and see what fits and doesn't as<BR>
a proposed document. <BR>
Also is attached a construction/buyback proposal that Alden is working on. <BR>
Also - just a draft. I have also opened it below in case you could not open<BR>
it as it is not a word document MG<BR>
<BR>
<BR>
<BR>
Hi again Mark,<BR>
I'm starting by attacking section 6 of the IAP lease, which deals with<BR>
construction. Surprisingly, most of the existing language (sec. 6.4 especially)<BR>
should work for us, even though IAP didn't have new construction in mind when<BR>
it wrote the lease. I'm guessing (ONLY guessing.) that we'll want to think<BR>
about three additional provisions:<BR>
1. A provision that states what kind of building the homeowner is<BR>
permitted to build. We could requre that the homeowner submit a building plan to<BR>
get approved to lease the land. Building to that specific plan could then be<BR>
a condition of the lease. We could make that as general or specific as we <BR>
wanted.<BR>
<BR>
2. A provision that states when the homeowner is required to start<BR>
building, and when s/he would have to finish building. For example, we could<BR>
require construction to begin within two years of signing the lease, and for the<BR>
structure to be finished according to the plans (occupancy permit?) within<BR>
five years. That's more time that most people would take, but it would allow<BR>
flexibility while letting YRHC to enforce its goal of getting a year-round<BR>
home built on the land.<BR>
<BR>
3. A provision that assigns a transfer value to the structure while it'<BR>
s under construction. If somebody can't finish it, the lease needs to state<BR>
a transfer value just as it would for a finished building. YRHC, or better <BR>
yet another eligible buyer, can then step in and take over construction.<BR>
We'll also have to work out a final transfer formula just like IAP's lease<BR>
does. I'll write to you about them separately.<BR>
Let me know what your thoughts are about all this when you get a chance. <BR>
Remember that these are just my guesses and I really don't know what I'm<BR>
doing!<BR>
Sorry this is so long. I'll write you more as I get it down.<BR>
Alden<BR>
Here is my outline of section 6, for your reference:<BR>
Section 6: Buildings and Improvements: Ownership and Transfer<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<BR>
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<BR>
equivalent.<BR>
6.6 Homeowner documents costs with receipts and invoices; IAP may inspect;<BR>
Homowner's own labor valued at rate of someone with comparable skills.<BR>
<BR>
________________________________________________<BR>
Alden Robinson<BR>
Island Institute Fellow<BR>
Town of Long Island, Maine<BR>
(207) 837-0636<BR>
arobinson@islandinstitute.org<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
************************************** See what's free at <A HREF="http://www.aol.com">http://www.aol.com</A>.<BR>
<BR>
</FONT>
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