Purchase Option
Current leaseholders in St. Louis County on Alden, Little Alden and Spring lakes will have the opportunity to purchase their lease lots from Minnesota Power.
Notice regarding US Bank letter some MP leaseholders received the week of Jan. 28, 2019
It has come to our attention that some leaseholders recently received a letter from US Bank stating that they were anticipating major changes to the ownership structure of Minnesota Power lease lots in 2019. Minnesota Power has not yet determined if any changes to ownership structure will occur and has not conveyed new information to US Bank or any other lending institution about any potential changes to ownership on Island, Fish, Whiteface, or Rice Lake Reservoirs. When and if any new information about those leased lots becomes available, we will be in contact with our valued leaseholders first.
What is the purchase option?
Leaseholders on Alden, Little Alden and Spring lakes in St. Louis County, Minnesota, will have the opportunity to purchase their lease lots from Minnesota Power in 2018.
Who can take advantage of this purchase option?
The purchase option is available only to current leaseholders on Alden, Little Alden and Spring lakes. Current leaseholders on Minnesota Power’s hydropower reservoirs, including Island, Fish, Whiteface, Rice and Boulder Lake reservoirs, are not included in the 2018 lease lot purchase offering.
Why is Minnesota Power making this opportunity available to leaseholders?
The lease properties on Alden, Little Alden and Spring lakes are not directly associated with a hydropower project and do not fall within our federally regulated (Federal Energy Regulatory Commission, or FERC) project boundary. Therefore, Minnesota Power has decided to discontinue the lease program at Alden, Little Alden and Spring lakes, and we are offering current leaseholders the exclusive rights to purchase the leased lot.
Why are the other reservoirs not included?
Most active hydropower reservoirs contain regulated lands that must be retained to meet requirements of the company’s Federal Energy Regulatory Commission (FERC) license for generation of renewable hydropower energy.
What is the timeline for the purchase option process?
Survey and platting are expected to begin in June 2018. Appointments for one-on-one conversations with leaseholders are expected to get underway in late June. Our goal is to complete real estate transactions beginning this fall. Please note this timeline is subject to change.
Who should I contact if I have questions about the purchase option of my leased lot?
For Alden, Little Alden and Spring lakes: Matt Hagelin at 218-355-3319 or mhagelin@mnpower.com
All other inquiries: Jim Atkinson at 218-355-3561 or jbatkinson@mnpower.com
All other inquiries: Jim Atkinson at 218-355-3561 or jbatkinson@mnpower.com
What if leaseholders choose not to purchase their lease lot?
Leaseholders on Alden, Little Alden and Spring lakes can continue to lease their lot under current lease terms until the lease expires.
Will there be a similar option offered in 2019?
Minnesota Power has not determined whether a similar option will be presented to these leaseholders in 2019 or any other time.