[Year-Round Housing Committee] FW: Lease outline and buyback ideas for tonight's meeting

[Alden Robinson]

Hello YRHC,

We had a problem with our server.  Here is an email Mark sent earlier.

Alden


-----Original Message-----
From: Mlongreene2 at aol.com [mailto:Mlongreene2 at aol.com]
Sent: Thu 4/19/2007 6:13 AM
To: housingcommittee at townoflongisland.us
Subject: Lease outline and buyback ideas for tonight's meeting
 
Hi All,  Attached is a modified lease from Islesboro that we can use  as a 
working document tonight.  We will go thru it and see what fits and  doesn't as 
a proposed document.   
Also is attached a construction/buyback proposal that Alden is working  on.  
Also - just a draft.  I have also opened it below in case  you could not open 
it as it is not a word document MG
 
 
 
Hi again  Mark, 
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: 
    1.  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.

    2.  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.

    3.  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. 
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. 
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! 
Sorry this is so long.  I'll  write you more as I get it down. 
Alden 
Here is my outline of section 6, for  your reference: 
Section 6:  Buildings and Improvements: Ownership  and Transfer
6.1  Homeowner owns building and  improvements.
6.2  Transfer price calculated according to Appendix  A.
6.3  Sales process:  
A.) IAP may find an  approved buyer; 
B.) IAP may buy if it can't find a buyer;  
C.) After 12 months, homeowner may sell to any buyer for  transfer price; 
D.) If IAP consents, buyer may list for  more than tranfer price, but balance 
goes to IAP.
6.4  Construction and  repair:  
A.)  Homeowner pays all  costs;
B.)  Lawful and  workmanlike;
C.)  Consistent with  lease;
D.)  No changes to exterior without IAP's  consent;
E.)  IAP gets to approve all plans and  building permits.
6.5  Homeowner may make improvements but IAP may value  them at non-luxury 
equivalent.
6.6  Homeowner documents costs with  receipts and invoices; IAP may inspect; 
Homowner's own labor valued at rate of  someone with comparable skills.

________________________________________________ 
Alden  Robinson 
Island Institute  Fellow 
Town of Long  Island, Maine 
(207)  837-0636 
arobinson at islandinstitute.org 





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