FAQ - Frequently Asked Questions

 

The following is a list of commonly asked questions by people on our mailing list. If you have additional questions, feel free to call (218) 723-3981, or toll-free 1-888-526-3648.

HOW DO I MAKE AN OFFER TO LEASE: You can make a written offer on one or more of the lots currently available to Minnesota Power ShoreLand Traditions® by fax, e-mail, or mail, provided they arrive by the end of the initial offer period. Minnesota Power ShoreLand Traditions® reserves the right to reject any and all offers to lease.

WHAT HAPPENS WHEN MY OFFER IS ACCEPTED: If your offer has been accepted, you will be required to read the public offering statement, if you have not already done so, sign an Offer to Lease form, and deposit $1000 in earnest money to Minnesota Power. A closing date will be established at which time any final payments are made and the lease is issued.

WHAT FINANCING OF THE LEASE OFFERING AMOUNT IS AVAILABLE: Minnesota Power financing is available at 25% down with the balance financed at 8% for 5 years.

CAN I TRANSFER MY LEASE: At Minnesota Power's discretion, you may transfer your lease. You would likely sell your structures/improvements prior to transfer of the lease. Minnesota Power ShoreLand Traditions® would then transfer the lease to the buyer of the property.

HOW LONG DOES THE LEASE RUN: The leases run to February 1, 2041, and are renewable at the discretion of Minnesota Power.

WHO PAYS THE TAXES ASSESSED AGAINST THE STRUCTURES AND IMPROVEMENTS ON THE LOT: Taxes are assessed by the taxing districts and based on the value of taxable structures. Since Minnesota Power is the fee owner of the lease lot property, the Company pays the taxes. Leaseholders are subsequently billed for this same amount by Minnesota Power ShoreLand Traditions® as reimbursement.

Note: Please remember, lease lot rent is figured separately from taxes and is 2.5% of the assessed market value of the land only. On average, lease rent can range from $900 to $2,000 per year, and will be adjusted during the term of the lease.