NOTICE OF INTERMEDIATE AND REGULAR TIMBER AUCTION SALE

Itasca County Forest Lands are FSC Certified by SmartWood SW-FM/COC-1709 

Pursuant to November 10, 2009 official action of the Itasca County Board of Commissioners and under the provisions of Minnesota Statute 282.04, as amended, timber on tax-forfeited land within Itasca County will be offered for sale WITHOUT the sale of land at an Intermediate and Regular Auction at 10:00 a.m. on Friday, December 11, 2009 at the Cohasset Community Center, Cohasset.   Timber will be sold to the highest bidder at not less than the appraised value listed on the Timber Report.  Bidding shall be by ORAL BID ONLY.  Bid up shall be by two (or even numbered) percent increments, the percent bid up to be added to the appraised price.  Itasca County reserves the right to accept or reject any or all bids.  SIGNING A ONE TIME AFFIDAVIT OF COMPLIANCE IS REQUIRED PRIOR TO BEING ABLE TO BID ON COUNTY TIMBER AUCTIONS.  All bidders who have not previously registered (i.e. signed Affidavit of Compliance) must register prior to 4:30 p.m. on Thursday, December 10, 2009.

Interested bidders are responsible to know and comply with all permit regulations and eligibility limits.  Bidders must be 18 years and older and in good standing with Itasca County.  No bidder can act in any capacity on behalf of a non-qualifying operation for the purpose of procuring rights to timber from Itasca County.  No bid will be accepted from any bidder having a delinquent or uncollectible timber permit account or a pending timber trespass with a county, state or federal agency.  Violation of eligibility limits will result in loss of down payment and/or loss of privilege to purchase stumpage from Itasca County.

All sizes of operations are eligible to purchase timber through Intermediate Auction sale.  Each purchaser may have no more than four permits purchased through Intermediate Auction sale in possession at any time.  During Intermediate Auction sales an operation may purchase only one (1) permit in the first round of bidding.  An operation may purchase more than one permit in the second round of bidding but may not exceed the possession limit of 4 intermediate permits.  Intermediate Auction permits will have a duration of two (2) years, unless stated otherwise, with no regular extensions.  Intermediate Auction permits are non-transferable, except in case of hardship.  Remaining unsold Intermediate Auction tracts may be re-offered through Regular Auction subject to their Intermediate Auction permit terms, but will not be counted towards the Intermediate Auction sale permit limit of four. 

The Regular Auction will immediately follow the Intermediate Auction.  There is no limit on how many permits may be purchased through Regular Auction.  Regular Auction permits will have a duration of three (3) years, unless stated otherwise.  Regular Auction permits may be granted one regular extension, not to exceed one year, upon payment of 10% of the uncut "bid up value" balance.  The minimum extension fee shall be $50.  Regular extensions will be granted at the discretion of the District Forester.  Regular Auction permits may be transferred upon written approval from the Land Commissioner.  Each tract not sold at the auction will be available over the counter at the appraised value subject to its "auction permit terms" until withdrawn from sale.

Immediately after the sale, the successful bidder for each tract must pay a minimum non-refundable down payment of 15% of the APPRAISED value for that tract.  Two thirds of this payment (10% of the appraised value) will be held as a performance bond, and the remaining amount (5% of the appraised value) as a stumpage advance.  The Performance Bond will be kept on deposit by the County and will be refunded upon satisfactory completion of the permit requirements, as judged by the District Forester.  A permit to cut and remove the timber from the land will be issued to the purchaser in whose name the bid is made.  The price of each species subject to bid will be increased by the bid up percent of the successful bid for that tract.  The purchaser must pay for all stumpage prior to cutting.  All cut products shall be scaled by Itasca County before being removed from the permit area unless specified otherwise. 

In the case of tracts that are partitioned into pre-determined cutting blocks, the total down payment is to be 15% of the APPRAISED value of the ENTIRE permit.  A performance bond of 10% of the APPRAISED value of the ENTIRE permit will be deducted from the down payment.  The remaining 5% will be applied to the first cutting block that is opened.  The stumpage value in each block must be paid in full before any cutting may begin in that block.  With the permission of the District Forester, the purchaser may enter unpaid blocks and cut necessary timber incidental to developing logging roads as may be needed to log other blocks, provided that no timber may be removed from an unpaid block until separately scaled and paid for. 

Within five (5) business days prior to beginning sale operations, the Purchaser has the option to furnish security for the remaining stumpage value.  Under this option, the Purchaser may pay for stumpage after the wood is felled or scaled, rather than paying prior to harvest.   Security can be furnished in one of the following forms: Corporate surety bond, cash, certified check, cashier’s check, money order, assignable bonds or notes of the United States, an assignment of a bank savings account or investment certificate, or an irrevocable bank letter of credit.  No harvesting is permitted until proper security has been furnished or payment in full is received for the remaining stumpage balance. Should the Purchaser default on the permit under the security option prior to when logging begins, the Purchaser shall, at a minimum, lose the 15% down payment as a penalty for not completing the permit requirements.  Additionally, the Purchaser may be liable for costs and losses incurred by Itasca County on that permit in excess of the 15% down payment.  Costs and losses to Itasca County may include but are not limited to decreases in stumpage upon re-sale of the timber, additional permit layout and sale costs required for re-sale, and loss of timber due to blowdown or disease after the permit has forfeited to Itasca County until the permit is harvested.

It is the responsibility of the bidder to arrange access to the permit area, examine each tract, and know the timber permit requirements as stated in the Timber Report and in the Itasca County Forest Management Guidelines & Specifications.  Copies of these requirements are available at the Itasca County Land Department upon request.  Submission of bid reflects that Bidder has inspected the tract and its permit requirements.  Copies of permit requirements for each tract offered for sale, and further information relative to the bidding specifications, are available at the Land Commissioner's Office,1177 LaPrairie Ave, Grand Rapids, Minnesota (Telephone number:  218-327-2855; TDD numbers:  218-326-0316 or 218-327-2941).

Itasca County does not discriminate on the basis of race, color, national origin, sex, religion, age or disability in employment and the provision of services.  Prospective bidders who require special accommodations to participate in this sale should inform the Land Department as soon as possible and more than three working days before the sale.  Permits can only be awarded to bidders who comply with the Americans with Disabilities Act.

GARRETT OUS                                                                               

Itasca County Land Commissioner