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02/12/13
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02/12/13
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7/18/2025 11:23:48 AM
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2/13/2013 1:16:02 PM
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Meetings
Meeting Document Type
Agenda
Document Title
Housing & Redevelopment Authority
Document Date
02/12/2013
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In addition, SuperAmerica acquired two different parcels of property, and Landform is <br />reported to receive $53,725 fees connected to the sale of one parcel and $57,913 in fees <br />connected to the sale for the other. Landform is to be paid 20% of the fee with the <br />signed purchase agreement, 60% at closing, and 20% at occupancy. The newspaper <br />article identifies the total project cost of the SuperAmerica service stations. It does not, <br />however, identify the price paid by SuperAmerica for the parcels of land. Accordingly, <br />the transactional fee is not calculated on a percentage basis. <br />Landform has also sought commissions of $25,000 on work to purchase a liquor store <br />that is not located in the COR District and a $4,000 for work on a realignment of property <br />for Sophia Ramsey, LLC. It appears that these fees were not approved by the HRA. <br />Landform has also sought commissions relative to the sale of parcels to Flaherty & <br />Collins for the development of the Residence Luxury Apartment complex. Flaherty & <br />Collins paid the HRA $250,000 for 3.03 acres of COR property. I did not find the <br />amount of the commission being paid to Landform, and accordingly I did not calculate <br />the percentage of the commission. <br />Landform's contract with the City makes it clear that the commission it earns is for the <br />sale of commercial real estate. Indeed, while I have not seen the contract, newspaper <br />reports indicate that it follows the custom and use of the real estate industry as to when a <br />commission is earned, in this case being earned on any closing which occurs less than 15 <br />months after the Landform contract is terminated if Landform performed certain <br />benchmark services, such as having significant discussion with the purchaser and <br />physically showing the premises to the purchaser. The contract also provides for a <br />termination fee of $60,000 if the contract is terminated before March of 2013. <br />Landform is not identified as a real estate licensee in the directory of the Minnesota <br />Department of Commerce. Neither Mr. Lazan nor the associates identified above are <br />listed as real estate licenses in the directory. <br />LAW AND DISCUSSION <br />The City of Ramsey's contract with Landform, in which it is required to pay Landform <br />commission for managed services, is unenforceable because Darren Lazan, the individual <br />acting on behalf ofLandforin, does not hold a required license to manage the sale of land <br />in the development area. <br />In Minnesota, a license is required for anyone who "for another and for commission, fee, <br />or other valuable consideration .. , lists, sells, exchanges, buys or rents, manages, or <br />offers or attempts to negotiate a sale, option, exchange, purchase or rental of an interest <br />or estate in real estate[.]" Minn. Stat. § 82.55, subd. 19(a) (2012). This licensure <br />6 Id. <br />Sakry, "Ramsey Council Gives Approvals for 250 Unit Luxury Apartment Complex" December 2, 2010. <br />3 <br />
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