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04/09/13
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04/09/13
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7/18/2025 11:24:53 AM
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4/18/2013 9:30:26 AM
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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 />trying to determine the meaning of the cited language in Article II, Article III.E.2, 3 and 4 and <br />from Article IV.B.1 and 2 of the Purchase of Services Agreement it would be helpful to know <br />what Landform thought that language meant, as evidenced by Landform's subsequent actions <br />The Huberty Memorandum also points out the language in Section X of each of <br />the Purchase of Services Agreements which states: <br />In providing all services pursuant to this Agreement, the <br />Contractor's share shall abide by all statutes, ordinances, rules and <br />regulations pertaining to or regulating the provision of such <br />services, including those now in effect and hereinafter adopted. <br />Any violation of said statutes, ordinances, rules or regulations shall <br />constitute a material breach of this Agreement and shall entitle the <br />HRA to terminate this Agreement immediately upon delivery of <br />written notice of termination to the Contractor. SPECIFICALLY, <br />neither Landform, its team members, employees nor consultants or <br />real estate brokers or salespersons as defined in Chapter 82 of <br />Minnesota Statutes, therefore, Landform will not be entitled to any <br />compensation for work which requires a Iicense under said Chapter <br />82. <br />In my opinion, there is an inherent, irreconcilable conflict between the language of <br />Article X of the Purchase Services Agreements which state that the Contractor will abide by all <br />statutes and the provisions of the Contractor's Proposals which appear to clearly contemplate <br />Landform's delivery of certain services for which a Minnesota real estate broker's license is <br />required. <br />The Huberty Memorandum provides a detailed description of the compensation <br />mechanisms contemplated in the Purchase of Services Agreements and differs from the <br />Unattributed Memorandum in that the Huberty Memorandum recognizes that Landform provided <br />numerous services to the HRA pursuant to the Purchase of Services Agreement for which no <br />brokerage license is required under Minnesota state law and that Landform should be entitled to <br />enforce the Purchase of Services Agreement and receive compensation for all of those other <br />services. <br />The Huberty Memorandum goes on, however, to assume that all of the so called <br />"Incentive Compensation," as defined in the Purchase of Services Agreements, is compensation <br />for services for which a brokerage license is required and, therefore, that the HRA should not pay <br />any of the Incentive Compensation to Landform. While this conclusion is intuitively attractive <br />because of similarities between the structure of the "Incentive Compensation" under the <br />Purchase of Services Agreement and the terms under which licensed real estate brokers typically <br />receive compensation under listing agreements in Minnesota, it is not clear to me that this <br />assumption would withstand a more detailed analysis. It appears to me that a fairer conclusion is <br />that the "Incentive Compensation" was intended to provide Landform with an "upside" for all of <br />4 <br />5240409v3 <br />
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