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04/09/13
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04/09/13
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Meetings
Meeting Document Type
Agenda
Document Title
Housing & Redevelopment Authority
Document Date
04/09/2013
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BRIGGS AND MORGAN <br />Agreements] anyway." The author of the Unattributed Memorandum first argues that the City <br />should not voluntarily pay Landform the 2% "Incentive Compensation" provided for in the <br />Purchase of Services Agreements because to do so would violate public policy. The author of <br />the Unattributed Memorandum does not cite any legal authority for the proposition that the HRA <br />is prohibited from paying Landform because to do so would violate public policy, and we were <br />unable to find any Minnesota case law directly addressing this issue. We did find one case that <br />is slightly analogous that appears to stand for the proposition that if the HRA received a benefit <br />from any "broker services" Landform may have provided, that a taxpayer suit to bar the HRA <br />from paying Landform would not be successful. The facts of the reported case are, however, so <br />different from the issues before the HRA that I do believe a Court would find the case <br />dispositive. <br />If the author of the Unattributed Memorandum then cites the City of Ramsey's Charter as <br />further support for the proposition that the HRA should not voluntarily pay Landform. The <br />reliance on the City Charter is suspect because of the separate legal identity of the HRA. <br />Furthermore, the language cited from the City Charter presumably is intended to deal with the <br />use of "net" proceeds from the sale of property and, in my view, is somewhat off point. <br />2. Huberty Memorandum. <br />It appears that Mr. Huberty had access to a copy of the Purchase of Services Agreement <br />executed in 2010 but not a copy of the 2011 Purchase of Services Agreement. The Huberty <br />Memorandum cites various provisions of the "Contractor's Proposal," as defined in and attached <br />to the 2010 Purchase of Services Agreement as evidence that the Purchase of Services <br />Agreement contemplated Landform's providing brokerage services to the HRA. At least with <br />respect to the Sections cited by Mr. Huberty, the "Contractor's Proposal" attached to the 2010 <br />Purchase of Services Agreement is identical to the Contractor's Proposal attached to the 2011 <br />Purchase of Services Agreement, so the assertions made my Mr. Huberty in his memorandum <br />regarding the March 22, 2010 Contractor's Proposal are equally attributable to the Contractor's <br />Proposal attached to the 2011 Purchase of Services Agreement. <br />Section II of the Huberty Memorandum cites seven specific sections of the Contractor's <br />Proposal as evidencing the parties intent that Landform provide services which, under Minnesota <br />Statutes, Section 82.55 subd. 19(a) would require a Minnesota real estate broker's license. I <br />agree with Mr. Huberty's analysis with respect to four of the seven cited Sections. I believe the <br />language Mr. Huberty quotes from Article II, Article III.E.2, 3 and 4 and from Article IV.B.1 <br />and 2 of the Purchase of Services Agreement describes services for which a brokerage license <br />would be required under Minnesota Statutes Chapter 82.55 subd. 19(a). <br />What is missing from the Huberty Memorandum (and from the Unattributed <br />Memorandum) is a discussion of the Landform actually performed on behalf of the HRA. In <br />Redevelopment Authority in and for the City of Ramsey are separate legal entities and that it is the HRA and not the <br />City that has contracted with Landform pursuant to the Purchase of Services Agreements. <br />3 <br />5240409v3 <br />
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