Prairie Knoll Addition Information and Facts
Lot description and Prices
Prairie Knoll Addition includes 4 single-family lots for sale. All lots are zoned R-2 of the City’s zoning ordinance. Lot prices are established by the City/Port Authority and reflect the direct actual costs of development. These costs are not subsidized by the City nor is there any profit built into these prices.
The purpose of this subdivision is to provide for the immediate construction of new homes. State law prohibits cities from selling property to buyers for “land speculation” purposes. With the exception of the “spec home construction” option described below, all buyers must be the immediate home owner. Lot purchasers will have 12 months to secure a building permit for the new home. They will have another 12 months to complete home construction and secure a Certificate of Occupancy for the home.
Any licensed realtor, who brings a completed purchase agreement that results in a closing will earn a 7% commission on the sale of the lot. Buyers may also purchase lots directly from the City. The lot price includes this commission rate regardless of who signs the purchase agreement. Lots are available on a first-come, first served basis as determined by the receipt of a purchase agreement.
Each purchase agreement must be accompanied with a non-refundable check made payable to the Redwood Falls Port Authority in the amount of $1,000.00 as earnest money.
Contingencies accepted will be for securing financing and the sale of the buyer’s current home. Buyers will have 30 days to satisfy such contingencies from the date of the purchase agreement during which time the lot will remain on the market. Subsequent offers on the same lot will give the original purchase agreement a first – right-of refusal with 24 hours to satisfy the contingencies.
All closings will be arranged through the City Attorney.
Certain restrictive covenants for all lots will apply and are described in the Prairie Knoll Addition Restrictive Covenants.
Individual parties may purchase a lot with the purpose of constructing a new home as a “spec home” for the subsequent turn-key or “completed package” sale to another party. The lot purchaser will only be allowed to purchase one lot at a time under the “spec home” option and will not be permitted to purchase another lot until the previous “spec home” is sold. Under this option, the lot purchaser will be permitted to purchase the lot at a reduced price from that described on the Prairie Knoll Addition Price List, but the balance of the price must be paid by the ultimate buyer of the home at closing. Contact the City to determine the amount needed for lot purchase and amount needed at closing.
At the lot purchase closing or contract signing for “spec home” construction, the buyer must fill out and sign the Minnesota Pollution Control Agency “Permit Modification Form” transferring the lot(s) to the new owner for the responsibility of storm water control during and after construction. The owner may also transfer the site with the same form to the contractor of their choosing at a later date. The lot owner at the time of application for a building permit from the City must also supply a “storm water pollution prevention plan (SWPPP)” for approval.
In the possibility buyers may not be able to complete their construction obligations after lot closing but prior to the commencement of construction due to unforeseen financial or personal circumstances, the City/Port Authority, at it’s sole option, may offer to re-purchase the lot for the original price net any legal and administrative costs, for subsequent re-sale to another party. In this case, the time restrictions relative to building permit and construction completion begin anew for the buyer. The “buy-back” option is reserved only for “hardship” cases as determined in the sole discretion of the City/Port Authority. The City/Port Authority may waive this “buy-back” allowing the lot owner to sell to a subsequent private party on the same terms and conditions and for the same price provided the new purchaser can satisfy the same requirements.
Changes to Terms and Conditions
The City Council and Port Authority reserve the right to change any of the above terms and conditions for any lot without a pending purchase agreement at any time.