HomeMy WebLinkAbout18-16 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN
NOVEMBER 12, 2018 18-16 RESOLUTION
(CARRIED LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE OPTION TO PURCHASE PARCEL J IN MARION
ROAD REDEVELOPMENT AREA; GRAND MANAGEMENT,
LLC
BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that
the option to purchase submitted by Grand Management, LLC or its Assigns, for Parcel
J at the corner of Jackson Street and Marion Road within the Marion/Pearl
Redevelopment Area is hereby accepted and the proper officials are hereby authorized
and directed to execute any and all documents necessary for purposes of same.
BE IT FURTHER RESOLVED that the terms of said option to purchase
agreement shall include, but not be limited to:
1) Compliance with the approved Marion Road/Pearl Avenue Redevelopment Area
Phase II Development Guidelines.
2) Formal submittal of a proposal by May 31, 2019 with option for extension until
July 31, 2019
3) Approval of the final development plan by the Redevelopment Authority and
Common Council.
4) Provide lending financing commitment.
5) Obtain project approval under Planned Development Overlay provisions.
6) Submittal of a scaled site plan detailing building elevations.
7) The option fee shall be One Thousand Dollars and NO/100 ($1,000.00) and a
purchase price of One Dollar and NO/100 ($1.00).
Approved by the Wisconsin Real Estate Examining Board Page 1 of 7,WB-24
10-1-12(Optional Use pate)01-1-13(Mandatory Use Date)
WB-24 OPTION TO PURCHASE
1 LICENSEE DRAFTING THIS OPTION ON November 5,2018 [DATE]I5(AGENT OF BUYER)
2 (AGENT OF SELLERILISTING BROKER)(AGENT OF BUYER AND SELLER)ISTRIKE THOSE NOT APPLICABL
3 The Seller(Optionor), Redevelopment Authority of the City of Oshkosh hereby grants to
4 the Buyer(Optionee), Grand Management,LLC(an Iowa limited liability company)or assigns
5 an option to purchase(Option)the Property known as[Street Address] site a-Jackson street&Marion Road
6 in the city
7 of Oshkosh County of Winnebago Wisconsin,on the following terms:
3 IDEADLINE FOR GRANT OF gM=This option is void unless a copy of the Option, or separate but identical copies, is/are signed by all
9 Sellers and delivered to Buyer on or before November 16,2018 (Time is of the Essence),
10
11 rt INITIAL OPTION TERM: A nonrefundable option fee of$ 1000 will be paid by Buyer to Seller within s days
12 of the later of:(i)the granting of this Option,or(i)the deadline for execution of a lease if line 141 of this Option is checked. This Caption may only be
13 exercised if Buyer delivers written notice to Seller n0 later than midnight May 31,2019 unless extended below.
14 w EXTENDED OPTION TERM:The Deadline to exercise this Option shall be extended until midnight July 31,2019 upon
15 payment of$ 100 to Seller on or before .tutu 31,2019 as an option
18 extension fee which shall not be refundable.
17■ EXERCISE: To exercise this Option,Buyer must sign and deliver(i)the notice at lines 355-361,or(ii)any other written notice which states that
1a Buyer exercises this Option. If the Option is exercised,$ 1000 of the option fee and$ 100 of the
19 option extension fee,if any,shall be a credit against the purchase price at dosing.
20 CAUTION: If the option fees are to be paid Into listing broker's trust account or to a third party,specify in additional provisions at lines 256-268
21 or 326.330 or In a separate agreement attached per line 325.
22 ITERMS OF PgE= If this Option is exercised per the terms of this Option, the following shall be the terms of purchase:
23■ PURCHASE PRICE: $1(pursuant to development agreement with City of Oshkosh) Dollars
24 ($
)will be paid in cash or equivalent at dosing unless otherwise provided below.
2s■ INCLUDED IN PURCHASE PRICE:Seller is including in the purchase price the Property,all Fixtures on the Property on the date of this Option
26 not excluded at lines 28-29,and the following additional items:
27
28■ NOT INCLUDED IN PURCHASE PRICE:
29
3o CAUTION:Identify trade fixtures owned by tenant,If applicable,and Fixtures that are on the Property(see Imes 75-82)to be excluded by
31 Seller or which are rented and will continue to be owned by the lessor.
32 NOTE:The terms of this Option,not the listing contract or marketing materials,determine what items are Includedlexcluded.
33 [OPTIONAL"PRZ3tJT5ftfRSi TERMS OF THIS OPTION THAT ARE PRECEDED BY AN OPEN BOX(❑)ARE PART OF THIS OPTION ONLY IF
34 THE BOX IS MARKED SUCH A5 WiTH AN%"THEY ARE NOT PART OF THIS OPTION IF MARKED"NIA"OR ARE LEFT BLANK,
35 UELIVERY OF DOCUMENTS ANUVRITTEN.NOTM Unless otherwise stated in this Option,delivery:of documents and written notices to a
36 party shall be effective only when accomplished by one of the methods specified at lines 37-54.
37 (1) Personal Delivery:giving the document or written notice personally to the Party,or the Party's recipient for delivery if named at line 38 or 39.
38 Seller's recipient for delivery(optional):
39 Bu er's recipient for delivery(optional):
40E29(2) Fax:fax transmission of the document or written notice to the following telephone number:
41 Seller.( ) Buyer:{ )
42 r(3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery
43 service,addressed either to the Party,or to the Party's recipient for delivery if named at line 38 or 39,for delivery to the Party's delivery address at
44 line 47 or 48,
45=(4) U.S. Mail:depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party,or to the Party's
46 recipient for delivery if named at line 38 or 39, for delivery to the Partys delivery address at line 47 or 48,
47 Delivery address for Seller:
48 Delivery address for Buyer:
49 (5) E-Mail:electronically transmitting the document or written notice to the Party's a-mail address,if given below at line 53 or 54,if this is a
so consumer transaction where the property being purchased or the sale proceeds are used primarily for personal,family or household purposes,
51 each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and
52 electronic signatures in the transaction,as required by federal law.
53 E-Mail address for Seller(optional): adavis@ct.oshkosh.wi.us
54 E-Mail address for Buyer(optional): joy@lancasterinvts.com
55 ffiMEISOFTHEE§SENC `Time is of the Essence"as to: (1)payment of option fees; 2)payment of extension fees; (3)Setter's grant of this
55 Option;(4)Buyer's exercise of this Option;(5)occupancy;(6)date of closing; 7RlKE AS APPLICABL and all other dates and Deadlines in this
57 Option except: if"Time is of the Essence"applies
sa to a date or Deadline,failure to perform by the exact date or Deadline is a breach of contract.if"Time is of the Essence"does not apply to a date
59 or Deadline,then performance within a reasonable time of the date or Deadline is allowed before a breach occurs.
60 PERSO Lt.VERYIA T AL R P Personal delivery to,or Actual Receipt by,any named Buyer or Seller constitutes personal delivery
61 to,or Actual Receipt by,all Buyers or Sellers.
62 DEFIN T ON Page 2 of 7,We-24
63■ ACTUAL RECEIPT: "Actual Receipt" means that a Party, not the Party's recipient for delivery, if any, has the document or written notice
64 physically in the Party's possession,regardless of the method of delivery.
ss w DEADLINES:"Deadlines"expressed as a number of"days"from an event,such as acceptance,are calculated by excluding the day the event
ss occurred and by counting subsequent calendar days.The deadline expires at midnight on the last day.Deadlines expressed as a specific number
e7 of"business days"exclude Saturdays, Sundays,any legal public holiday under Wisconsin or Federal law, and any other day designated by the
68 President such that the postal service does not receive registered mail or make regular deliveries on that day. Deadlines expressed as a specific
ss number of"hours"from the occurrence of an event,such as receipt of a notice,are calculated from the exact time of the event,and by counting 24
7o hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing,expire at
71 midnight of that day.
72 w DEFECT; "Defect"means a condition that would have a significant adverse effect on the value of the Property; that would significantly impair
78 the health or safety of future occupants of the Property;or that if not repaired,removed or replaced would significantly shorten or adversely affect
74 the expected normal life of the premises or adversely affect the use of the Property.
75■ FIXTURE:A"Fixture" is an item of property which is physically attached to or so closely associated with land or improvements so as to be
76 treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises,
77 items specifically adapted to the premises and items customarily treated as fixtures, including,but not limited to,all,garden bulbs;plants;shrubs
78 and trees;screen and storm doors and windows;electric lighting fixtures;window shades;curtain and traverse rods;blinds and shutters;central
79 heating and cooling units and attached equipment;water heaters and treatment systems;sump pumps;attached or fitted floor coverings;awnings;
so attached antennas; garage door openers and remote controls; Installed security systems; central vacuum systems and accessories; in-ground
ai sprinkler systems and component parts; built-in appliances;ceiling fans;fences;storage buildings on permanent foundations and docks/piers on
82 permanent foundations.A"Fixture"does not include trade fixtures owned by tenants of the Property.
ss CAUTION: Exclude any Fixtures to be retained by Seller or which are not owned by Seller,such as rented fixtures(e.g,,water softener
84 or other water conditioning systems,home entertainment and satellite dish components,L.P.tanks,',etc.)on lines 28-29.
85 w PROPERTY:Unless otherwise stated,"Property"means the real estate described at lines 5-7,
es IPROPERTY DIMENSIONSAD SURVEYSI Buyer acknowledges that any land,building or room dimensions,or total acreage or building square
87 footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless
ss verified by survey or other means.
as CAUTION. Buyer should verify total square footage formula, total square footage/acreage figures, and land, building or room
90 dimensions,if material,
si IBUYER'S WAL - HROUGH2 ROUGHWithin 3 days of the earlier of:(1)the Deadline for Buyer's exercise of this Option; or(ii)the Buyer's exercise of
92 this Option;and again within 3 days prior to closing, at a reasonable time pre-approved by Seller or Sellers agent, Buyer shall have the right to
93 walk through the Property to determine that there has been no significant change in the condition of the Property, except for ordinary wear and
94 tear and changes approved by Buyer,and that any Defects Seller has agreed to cure have been repaired In the manner agreed to by the Parties.
85 PROP R AGE BETWEEN OF OPTION A G Seiler shall maintain the Property until the earlier of closing or
96 occupancy of Buyer in materially the same condition as of the date Buyer exercises this Option, except for ordinary wear and tear. If, prior to
07 closing, the Property is damaged in an amount of not more than five percent(5%)of the purchase price„Seiler shall be obligated to repair the
88 Property and restore it to the same condition that it was on the day this Option was exercised,No later than closing,Seiler shall provide Buyer with
ss lien waivers for all Ilenable repairs and restoration. If the damage shall exceed such sum, Seiler shall promptly notify Buyer in writing of the
ioo damage and this Option may be canceled at the option of Buyer.Should Buyer elect to carryout this Option despite such damage,Buyer shall be
ioi entitled to the insurance proceeds,if any,relating to the damage to the Property,plus a credit towards the purchase price equal to the amount of
i02 Seller's deductible on such policy,if any.However,if this sale is financed by a land contract or a mortgage to Seller,any insurance proceeds shall
los be held in trust for the sole purpose of restoring the Property.
104 i Buyer and Seller authorize the agents of Buyer and Seller to:(1)distribute copies of the Option to Buyer's
io5 lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate
los Settlement Procedures Act(RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide
107 active listing, pending sale, closed sale and financing concession information and data,and related information regarding seller contributions,
im incentives or assistance,and third party gifts,to appraisers researching comparable sales,market conditions and listings,upon inquiry.
loo INOTICE ABOUT SEX OFFENDER REG TR You may obtain information about the sex offender registry and persons registered with the
iia registry by contacting the Wisconsin Department of Corrections on the Internet at htto:/(www;widocoffenders.oro or by telephone at(608) 240-
iii 5830,
Property Address: Site J- Jackson Street&Marion Road Page 3 of 7,WB-24
112 CLOS This transaction is to be closed within 14 davs after the exercise of this Option) (-no-later
113 th _ --Lj1STRIKE AND COMPLETE AS APPLICABL at-th"face-sefeetefty-Seller;tmiesss o herwise
114 itirrT Parties agree to a remote closing.
115 ICLOSING PRORATION The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes,
116 rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments,fuel and
117
118 CAUTION:Provide basis for utility charges,fuel or other prorations if date of closing value will not be used.
119 Any income,taxes or expenses shall accrue to Seller,and be prorated at closing,through the day prior to closing.
12o Real estate taxes shall be prorated at closing based on[CHECK BOX FOR APPLICABLE PRORATION FORMULA]:
121 �]The net general real estate taxes for the preceding year, or the current year if available(Net general real estate taxes are defined as
122enera1 property taxes after state tax credits and lottery credits are deducted) (NOTE:THIS CHOICE APPLIES 1F NO BOX IS CHECKED)
123 Current assessment times current mill rate(current means as of the date of closing)
124 Sale price,multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year,or current year if
125 known,multiplied by current mill rate(current means as of the date of closing)
126
127 CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially
128 different than the amount used for proration especially in transactions Involving new construction,,extensive rehabilitation,remodeling
129 or area-wide re-assessment.Buyer is encouraged to contact the local assessor regarding possible tax changes.
130 [�Buyer and Seller agree to re-prorate the real estate taxes,through the day prior to closing based,upon the taxes on the actual tax bill for
131 the year of closing,with Buyer and Seiler each owing his or her pro-rata share.Buyer shall,within 5 days of receipt,forward a copy of the bill
132 to the forwarding address Seller agrees to provide at closing.The Parties shall re-prorate within 30 days of Buyer's receipt of the actual tax
133 bill.Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete,not the responsibility of the real
134 estate brokers in this transaction.
135 LEASED PROP ERT if Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights under the lease(s) and
136 transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) TRIKE ON lease(s), if any, are
137
138 Insert additional terms,if any,at lines 256-268 or 326-330 or attach as an addendum per line 325.
139 LEASE-OPTION PROVISION [CHECK BOX ON LINE 140 OR 141,IF APPLICABLE]:
140 Concurrent with the granting of the Option,Seller and Buyer have entered into a written lease for the Property.
141 0 This Option is contingent upon Seiler and Buyer,within days from the granting of this Option,entering into a written lease
142 for the Property with minimum terms which shall include: term from to and
143 an initial rent of$ per month or this Option shall be null and void.
144 [CHECK ANY OF THE FOLLOWING THAT APPLY,IF LINE 140 OR 141 WAS CHECKED ABOVE]:
148 U In the event that this Option is timely exercised,$ of each monthly rent payment of$
146 shall be applied to the purchase price while the balance shall be deemed solely rent that is retained by Seiler.
147 NOTE: Lenders may not recognize a credit for rent paid under a lease.
148 Buyer may not exercise this Option unless Buyer is current with all rent.
149 0 Any material breach of the lease by Buyer shall also constitute a default under this Option.
160 IPROPERTY COR61TION REPRESE—N—TATATO 81
Seller represents to Buyer that,as of the date Seller grants this Option,Seller has no notice or
151 knowledge of any Defects (lines 72-74) other than those identified in Seller's disclosure report dated
152 and,if applicable,Real.Estate Condition Report dated and,if applicable,Vacant Land Disclosure Report
153 dated which was/were received by Buyer prior to Buyer signing this Option and which is/are made a part of this Option
154 by reference 1COMPLETE DATES OR STRIKE AS APPLICABLE1 and none provided
155
156 INSERT CONDITIONS NOT ALREADY INCLUDED IN THE DISCLOSURE OR CONDITION REPORTS
157 CAUTION:if the Property includes 1-4 dwelling units,a Real Estate Condition Report containing the disclosures provided In Wis.Stat.§
158 709.03 may be required. If the Property does not Include any buildings, a Vacant land DlsclosureReport containing the disclosures
159 provided in Wis.Stat.§709.033 may be required. Excluded from these requirements are sales of properly with 1.4 dwelling units that
16o has never been inhabited,sales exempt from the real estate transfer fee,and sales by certain court-appointed fiduciaries(for example,
161 personal representatives who have never occupied the Property).The buyer may have certain rescission rights per Wis.Stat.§709.05 if
162 Seiler does not furnish such report(s)within 10 days after Seller grants this Option or if a'report disclosing Defects is furnished before
163 expiration of those 10 days,but after the Option is submitted to Beller.Buyer should review the report form or consult with an attorney
164 for additional information regarding rescission rights.
165 Seller agrees to notify Buyer in writing of any Defect which Seller becomes aware of after Seller's granting of,but prior to Buyer's exercise of this
166 Option, which is materially inconsistent with the above representations. For purposes of this provision (lines 150-156), Defect does not include
167 structural,mechanical or other conditions of which the Buyer has actual knowledge or written notice or which Buyer discovers prior to the exercise
168 of this Option.
169 Seller represents that the property is zoned RMU-PD-RFo
4
Page 4 of 7,WB-24
170 CC Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Option at lines 256-
171 268 or 326-330 or in an addendum attached per line 325.At time of Buyer's occupancy,Property shall be in broom swept condition and free of all
172 debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent.
173 Occupancy shall be given subject to tenant's rights,if any.
174 CAUTION:Consider an agreement which addresses responsibility for clearing the Property of personal property and debris,if applicable.
175 IRENTAL A RI AT Unless otherwise agreed, Buyer shall be responsible for compliance with(Rental Weatherization Standards(Wis.
176 Admin.Code Ch.SPS 367),if applicable.
177 QEF Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this Option.A
178 material failure to perform any obligation under this Option Is a default which may subject the defaulting party to liability for damages or other legal
179 remedies.
180 if Buyer defaults,Seller may:
181 (f)-sue-for specific-perbr mance-if Buyerhas-exercised-this-flption,of
182 (2)terminate the Option and may sue for actual damages.
183 If Seller defaults,Buyer may:
lea (1)sue for specific performance;or
185 (2)terminate the Option and may sue for actual damages,
las In addition,the Parties may seek any other remedies available in law or equity.
187 The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the
188 courts. If either Party defaults, the Parties may renegotiate the Option or seek nonjudicial dispute resolution instead of the remedies outlined
las above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration
iso agreement.
191 NOTE: IF ACCEPTED, THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT, BOTH PARTIES SHOULD READ THIS
192 DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OPTION BUT ARE
193 PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OPTION OR HOW TITLE
194 SHOULD BE TAKEN AT CLOSING.AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED.
195 ENTIRE CONTRAC�1 This Option, including any amendments to it, captains the entire agreement of the Buyer and Seller regarding the
196 transaction. All prior negotiations and discussions have been merged into this Option. This agreement'binds and inures to the benefit of the
197 Parties to this Option and their successors in interest.
198 IBUYER D Prior to the granting or exercising of this Option, Buyer may wish to perform 'certain authorized inspections,
199 investigations and testing of the Property.Buyer shall provide for any specific inspections,investigations or tests Buyer intends to perform as part
zoo of Buyers due diligence items on lines 256-268,314321,or 326-330 or attach as an addendum per line 325,In addition,Buyer may need to obtain
201 and review documents relevant to financing approval,appraisals,or perform general due diligence activities for the transaction, including but not
202 limited to: business records, condominium documents, maps or other information, municipal and zoning.ordinances, recorded building and use
203 restrictions,covenants and easements of record,as they may prohibit or restrict certain uses and improvements for the Property,Buyer may also
2o4 need to obtain or verify certain permits, zoning variances, other governmental or private approvals, environmental audits and subsoil tests,
los required road improvements, utility hook-up and installation costs; or other development related costs and fees; in order to fully determine the
206 feasibility of any proposed or planned development of the Property. Seiler agrees to cooperate with Buyer as necessary to complete any due
207 diligence items or any authorized investigations, testing and inspections as provided for in this Option,without cost to Seller, unless otherwise
208 agreed by the Parties in writing.
i;
Property Address; Site J-Jackson Street&Marion Road Page 5 of 7,WB-24
los IRECORDING OF!PTION Buyer(may)(may-riot)STRIKE ON record this Option at Buyer's expense.
210 Buyer(may)(may-not)`STRIKE ON ("may"if neither is stricken)record a separate instrument evidencing this Option at Buyer's expense. If this
211 Option or a separate instrument evidencing this Option is to be recorded, insert legal description at lines 256-268 or 326-330 or attach as an
212 addendum per line 325. If recording,the parties agree to provide authenticated or acknowledged signatures as may be required.
213 CAUTION: Failure to record may give persons with subsequent interests in the Property priority over this Option.
214 rITLE EVIDENCE
215 ■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (or condominium
216 deed if Property is a condominium unit,trustee's deed If Seller is a trust,personal representative's deed if Seller is an estate or other
217 conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements
218 entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use restrictions and
219 covenants,present uses of the Property in violation of the foregoing disclosed in Seller's Real Estate Condition Report and in this Option,general
220 taxes levied in the year of closing and
221
222 which constitutes merchantable title for purposes of
223 this transaction. Seller shall complete and execute the documents necessary to record the conveyance at Seller's cost and pay the Wisconsin
224 Real Estate Transfer Fee. The Parties agree that Seller shall not rezone the Property or create any additional liens or encumbrances on title after
225 Seller grants this Option without Buyer's written consent except for liens and encumbrances that will be removed at closing.
226 WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain
227 improvements or uses and therefore should be reviewed,particularly if Buyer contemplates making improvements to Property or a use
228 other than the current use.
229 ■ TITLE EVIDENCE:Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the purchase price on a
230 current ALTA form issued by an insurer licensed to write title insurance in Wisconsin.Seller shall pay all casts of providing title evidence to Buyer;
231 Buyer shall pay all costs of providing title evidence required by Buyer's lender.
232■ GAP ENDORSEMENT:Seller shall provide a"gap"endorsement or equivalent gap coverage at(Seller's)(Buyer's) STRIKE ON ("Seller's"
233 if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the effective date of the title insurance
234 commitment and before the deed is recorded,subject to the title insurance policy exclusions and exceptions,provided the title company will issue
235 the endorsement.if a gap endorsement or equivalent gap coverage is not available, Buyer may give written notice that title is not acceptable for
236 closing(see lines 242-248),
237■ PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance
238 commitment is delivered to Buyer's attorney or Buyer not more than days after Seller grants this Option(415"if left blank),showing
239 title to the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 215-223,subject only to
240 liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions,as;appropriate.
241 CAUTION: Buyer should consider obtaining an update of the title commitment prior to exercising this Option.
242■ TiTLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title within
243 days ("15" if left blank) after delivery of the title commitment to Buyer or Buyer's attorney. In such event, Seller shall have a
244 reasonable time,but not exceeding days("5"if left blank),from Buyer's delivery of the notice stating title objections,to deliver notice
245 to Buyer stating Seller's election to remove the objections by the time set for closing.In the event that Seller is unable to remove said objections,
246 Buyer may deliver to Seller written notice waiving the objections,and the time for closing shall be extended accordingly. If Buyer does not waive
247 the objections, Buyer shall deliver written notice of termination and this Option shall be null and void. Providing title evidence acceptable for
248 closing does not extinguish Seller's obligations to give merchantable title to Buyer.
249■ SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date this
250 Option is exercised shall be paid by Seller no later than closing.All other special assessments shall be paid,by Buyer.
251 CAUTION: Consider a special agreement if area assessments, property owners association assessments, special charges for current
252 services under Wis.Stat.§66.0627 or other expenses are contemplated. "Other expenses"are one-time charges or ongoing use fees
253 for public Improvements(other than those resulting in special assessments)relating to curb,gutter,street,sidewalk,municipal water,
254 sanitary and storm water and storm sewer(including all sewer mains and hook-up/connection and interceptor charges), parks,street
255 lighting and street trees,and Impact fees for other public facilities,as defined in Wis,Stat.§66.0617(1)(t);
256 RIDIDITIONAL PROVISIONS
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269 CONDOMINIUM UNIT
270 CAUTION: If this Option Involves a condominium unit, Buyer should obtain and review the condominium disclosure documents before
271 entering into this Option. See lines(198-208)
272 if the Property is a residential condominium unit,Seller must comply with the following:
273■ CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide Buyer,at Seller's cost,within 10 days of Buyer exercising this Option,
274 but no later than 15 days prior to closing,current and accurate copies of the condominium disclosure materials required by Wis, Stat. §703.33,
275 The condominium disclosure materials include a copy of the following and any amendments to any of these[except as may be limited for small
276 condominiums with no more than 12 units per Wis. Stat.§703.365(1)(b)and (8)]: (a)proposed or existing declaration, bylaws and any rules or
277 regulations, and an index of the contents; (b)proposed or existing articles of incorporation of the association, if it is or is to be incorporated; (c)
278 proposed or existing management contract, employment contract or other contract affecting the use,maintenance or access of all or part of the
279 condominium; (d) projected annual operating budget for the condominium including reasonable details concerning the estimated monthly
280 payments by the purchaser for assessments and other monthly charges; (e) leases to which unit owners or the association will be a party; (f)
281 general description of any contemplated expansion of condominium including each stage of expansion and the maximum number of units that can
282 be added to the condominium; (g) unit floor plan showing location of common elements and other facilities available to unit owners; (h) the
283 executive summary.
284 ■ BUYER RESCISSION RIGHTS: As provided in Wis. Stat. § 703.33(4)(a), Buyer may, within 5 business days of receipt of all the required
285 disclosure documents,rescind this Option by written notice delivered to Seller, If the disclosure materials are delivered to Buyer and Buyer does
286 not receive all of the disclosure documents, Buyer may,within 5 business days of Buyer's receipt of the disclosure materials, either rescind the
287 Option or request any missing documents. Seller has 5 business days following receipt of Buyer's request for missing documents to deliver the
288 requested documents.Buyer may rescind the sale within 5 business days of the earlier of Buyer's receipt of requested missing documents or the
las deadline for Seller's delivery of the documents[Wis.Stat,§703.33(4)(b)]. The Parties agree that the 5 business days begin upon the earlier
290 of:(1)Buyer's Actual Receipt of the disclosure materials or requested missing documents or(2)upon the deadline for Seller's delivery
291 of the documents.
292 NOTE: BUYER SHOULD READ ALL DOCUMENTS CAREFULLY. BROILERS MAY PROVIDE A GENERAL EXPLANATION OF THE
293 PROVISIONS OF THE DOCUMENTS BUT ARE PROHIBITED BY LAW FROM GIVING LEGAL ADVICE OR OPINIONS.
294 n ADDITIONAL CONDOMINIUM ISSUES:in addition to the disclosure materials required by Wis,Stat,§703.33,Buyer may wish to consider reviewing
295 other condominium materials as may be available, such as copies of: the condominium association's financial statements for the last two years, the
296 minutes of the last 3 Unit owners'meetings,the minutes of condominium board meetings during the 12 months prior to acceptance, information about
297 contemplated or pending condominium special assessments,the association's certificate of insurance, a statement from the association indicating the
298 balance of reserve accounts controlled by the association,a statement from the association of the amount of any unpaid assessments on the unit(per Wis.
299 Stat.§703.165),any common element inspection reports(e.g.roof,swimming pool,elevator and parking garage inspections,etc,),any pending litigation
300 involving the association and the declaration,bylaws,budget andlor most recent financial statement of any master association or additional association the
301 unit may be part of.Not all of these materials may exist or be available from the condominium association.
3o2■ OPTION FEES NOT A DEPOSIT: The Parties agree that if this Option is for a residential condominium unit,the option fee and any option extension
303 fee are not deposits subject to return under Wis.Stat.§703,33(4)(c).
304 QRSPECTIONS AND TESTIN Buyer may only conduct inspections or tests if specific authorizations are Included in this Option.An"inspection"
3o5 is defined as an observation of the Property which does not include an appraisal or testing of the Property,other than testing for leaking carbon
308 monoxide, or testing for leaking LP gas or natural gas used as a fuel source,which are hereby authorized.A"test'is defined as the taking of
307 samples of materials such as soils,water,air or building materials from the Property and the laboratory or other analysis of these materials,Seller
3os agrees to allow Buyer's inspectors, testers, appraisers and qualified third parties reasonable access to the Property upon advance notice, if
3os necessary to perform the activities authorized in this Option. Buyer and licensees may be present at all inspections and testing. Except as
aro otheNse provided, Seller's authorization for inspections does not authorize Buyer to conduct testing of the Property. Buyer agrees to promptly
311 restore the Property to its original condition after Buyer's Inspections and testing are completed unless otherwise agreed to with Seller; Buyer
312 agrees to promptly provide copies of all inspection and testing reports to Seller.Seller acknowledges that certain inspections or tests may detect
313 environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources,
Property Address: site J-Jackson Street&Marion Road Page 7 of 7,WB-24
314 UTHORiZATION FOR APPRAISAL,INSPECTIONS AND TESTS1 Buyer is authorized to have the Property appraised by a Wisconsin licensed or certified
315 appraiser and to conduct the following inspections and tests(see lines 304313)prior to Buyer's exercise of this Option.Any inspection(s)and test(s)shall
316 be performed by a qualified independent inspector or expert,or an independent qualified third party.Inspections and testing shall be conducted pursuant to
317 government or industry protocols and standards,as applicable.
318 List inspections(e.g.,home,roof,foundation,septic)here:
319
32o List tests(e.g,,radon,lead-based paint,well water)here:
321
322 Describe additional inspections and tests,if any,at lines 256-263 or 326-330 or attach as an addendum per line 325.
323 NOTE.Any testing authorizations should specify the areas of the Property to be tested,the purpose of the test,(e.g.,to determine if
324 environmental contamination is present),any limitations on Buyer's testing and any other material terms.
325=ADDENDA:The attached is/are made part of this Option.
325 [ADDITIONAL PROVISION
327 During the term of this option and any extension terms Buyer will be given and will have the right to full access to the Property to allow Its contractors,surveyors,
d other agents t SMVI.W., rental witt,asse.3ments,and testing of die Mopexty deemed nocassal y by Buyer
328 In Its sole discretion rhe Buyer and its agents and contractors shall have the right to perform such Inspections and to take such coal borings of the Property as
329 Buyer deems necessary,In Its sole and absolute discretion,to assess the feasibility of the Property for Buyer's intended use.The Buyer and Its agents and
contract take such sell borings and ground wMe.samples au it due...sneeassmy In Buyer"s sole and absolute dhimetion to
330 delermine whether the Property suffers from any environmental contamination
331 IF GRANTED,THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THiS OPTION AND ALL
332 ATTACHMENTS CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OPTION BUT ARE
333 PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THiS OPTION OR HOW TITLE
334 SHOULD BE TAKEN AT CLOSING IF THE OPTION iS EXERCISED. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE iS NEEDED.
335 This Option was drafted by[Licensee and Firm]
336 on
337 Buyer Entity Name(if any): Grana Management,LLC
338
339 Buyer`s/Authorized Signature A Print NamelTitle Here► Brent Dahlstrom,Manager Date A
340 (X)
341 Buyer's/Authorized Signature A Print Name/Title Here! Date A
342 SELLER GRANTS THIS OPTION. THE WARRANTIES, REPRESENTATIONS AND COVENANTSMADE IN THIS OPTION SURVIVE
343 CLOSING AND THE CONVEYANCE OF THE PROPERTY, SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND
344 CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OPTION,
345 Seller Entity Name(if any):
346 (X)
347 Seiler'slAuthorized Signature A Print Name/Title Here Or Date A
348 (X)
349 Seller's/Authorized Signature A Print Name/Title Here 1► Date A
35o This Option was presented to Seller by[Licensee and Firm)
351 on at a,m.1p,m.
352 This Option is rejected This Option is countered
353 Seller Initials A Date A Seller Initials A Date A
354 NOTE:Parties wishing to counter this Option should draft a new Option(WB-24)or draft a Counter-Offer(WI3 4d)to reference this Option,
355 INOTICE OF EXERCISE OF 00*4 By signing below and delivering this notice (see lines 35-54) to Seller, Buyer hereby exercises this Option to
356 Purchase.
357 Buyer Entity Name(if any):
358 (X)
359 BuyeeslAuthorized Signature A Print NamelTitle Here! Date A
360 (X)
361 Buyer'slAuthorized Signature A Print NamefTitle Here► Date A
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