Frequently Asked Questions
Island Beach Resort Home Sites

Please read the following FAQ if you have further questions.    We have referred to The Island Beach Home Sites simply as The Resort – where every day is resort living.

How is The Resort  different from traditional lake lots? 

This is the really exciting part!  The Resort features beautiful home sites with spectacular lake views – with a wonderful sandy swimming beach and a protected spot for your boat.  It’s close to town yet there’s a unique sense of remoteness.  What’s different about The Resort is that it is a Common Interest Community.  As a home owner at The Resort, your lot and the Association-owned land will be mowed and maintained per specifications, the water system and septic system will be monitored and maintained – similar to a townhome community.  This all translates to more time for you to have fun – fish, swim or just hang out.  It’s the best of two worlds.  You own your home and lot but many of the daily outside chores are taken care of for you.

How much are the lots being sold for and what is included in the price?

Each lake lot is being sold for just $199,900.00 and all of the infrastructure per plans is included in the price!  For a typical lake lot, one would have to punch in a driveway, drill a well, construct a septic system, complete the landscaping, create a beach area – and much more.  At The Resort, this is all done.  A full street with 3” of asphalt called Sandy Pointe Drive will be completed in the purchase price.  Also, the water system will be completed.  Three wells have recently been drilled by Kent Well Drilling.  They will be connected to the utility building / pump house and distributed to each lot line.  The septic system – which is in essence a mini municipal system (see plans) will be constructed and included in the price.  Additional infrastructure included is the Rain Garden designed and to be built by SAS Landscape Architects, the community landscaping, the street lighting, the electrical system and the phone line “stubbing” at each lot line, site work for the garage/storage areas, and other aspects of the infrastructure.  So, a lot is being offered at this initial price.

Where is The Resort site located?

The address is 6640 Fredenberg Lake Road, Duluth, Minnesota 55803. 

From the Miller Hill Mall in Duluth, The Resort site is northwest – just 16.5 miles door-to-door.  From the Sunset Lounge and Restaurant at the intersection of the Martin Road and the Rice Lake Road (Hwy 4), the townhome site is just 11 miles away.

Directions from the Sunset Lounge (Martin Road and Rice Lake Road). Go north on the Rice Lake Road and turn left (going west) on the Emerson Road.  Turn right on the Fredenberg Lake Road (going north) and follow until you reach Island Lake.  The Resort siteis located on the right side of the road. 

Island Lake is predominantly lease land –Is The Resort site leased land?

No.  This is one of the rarest parcels on all of Island Lake.  The eight + acre site is 100% owned land with its own private boat launch, sandy swimming beach, marina area and 140’ peninsula.  Prior to this development, the site had been a campground and resort since the 1940’s.

What is for sale?

There are nine lake lots for sale – all a part of an Association-maintained community.

Lots 7, 8 and 9 are not available for purchase during this initial offering.  A duplex home – twin home – may be built on each of these three lots.

Each lot owners in the Planned Unit Development known as The Island Beach Resort is a deeded property.  You will own the land.   

What do the lots consist of?

As you can see on the site plan, there are lots – each slightly less than 1/3rd of an acre.  As a purchaser, you will own the land beneath your home (i.e. inner dotted line) as well as the entire lot that you purchase.  You will receive a deed to your lot. Your lot is for your exclusive use subject to certain restrictions which are cited in the Association documents.   Examples of Association-approved uses:  To have an invisible dog fence along the lot line of the entire lot.  Example of a restriction:  One cannot plant trees on the lake side of one’s home.  The principal purpose of these restrictions is to maintain the views for the other home owners and to maintain the proper sense of uniformity. 

What landscaping can I do?

Flower gardens and low growing shrubs may be planted on the lake side of your home just as you would do in any private land lake setting.  But there is also a beneficial requirement for some landscaping on your part.  You will notice that each building envelope ends 15’ from the lot line.  That means that all homes will be 30’ or more from one another.  When you see the size of the envelope width, it is easy to see that many homes will be 40’ or more from one another.  One of the landscape stipulations in the Association Documents is that each homeowner will plant conifer-type trees such as balsams, blue spruce, etc. between their homes and the neighbors.  That way there will be substantial privacy one the sides of each home and a sense of the homes “belonging together” with this common landscaping plan.

On the site plan, what does the smaller inner dotted box within each lot indicate?

Within each lot, there is an inner dotted square or box.  The dotted box represents the outer boundaries of the townhome building envelope.

Can I build something smaller than the inner dotted box?

Yes. In fact, you will need to build something substantially smaller than the full size of the inner dotted box.  Because the pervious / impervious ratio must be maintained per County requirements, the maximum size built on one’s lot including the attached garage and covered screen room if applicable can have a foot print no larger than 3,500 square feet .  Except for Lots 7 and 8 which has a narrower building line on the lake side, all homes must be build along the curved building line as shown on the site plan  for symmetry and views.

Who owns the rest of the land in the development?

All of the land outside of the individual lots belong to the Association.  Owners have an interest in the Association.  So, as an owner of one lot, you will in essence, own 1/9th of the Association land.  In the event that lots 7, 8 and 9 which are approved for twin homes builds a twin home, then there will be 14 owners and each homeowner would own 1/14the of the common grounds – i.e. Association land.

Who are the developers?

Mike and Ron Edmunds, Co-owners and Brokers at Edmunds Company LLP.  For personal profiles and company history, feel free to log onto www.EdmundsLLP.com

What can I build on my lot

You can build pretty much what you would build on any traditional lot with some exceptions.  You can build a one story with a basement or without a basement.  You can build a two-story, or one level with a loft, etc. etc. 

What styles can’t I build?

Because The Resort development is a planned development, it is advantageous to lot owners that the various home styles “work together” to give a good look for the community as a whole.  Therefore, certain home styles such as a dome home, earth bermed home, Dutch Colonial, A-Frame, ultra modern flat-roof design, etc. are not allowed.

What are some other building requirements?

Here are some of the requirements.

Siding:   James Hardie brand siding (lap or shake)

Colors:  Earth tone colors (must be approved by Architectural Review Committee)

Stone:  Boulder Creek cultured stone, or similar (Fast Stak, groutless or similar)
(must be approved by the Architectural Review Committee)

Doors and Windows:  No designated brand doors or windows.  Earth tone colors similar to Anderson Windows terratone color (color approval by Architectural Review Committee)

Shingles:  GAF – Timberline – minimum 30 year shingle – earth tone colors

Decking:  Trex deck boards and railing system in earth tone colors (approval regarding
Colors and any deviation in decking materials must be granted by the Architectural Review Committee)

Patios and driveways:  Eco stone in earth tone colors

What is the approved driveway material?

The approved driveway material is a brick-type product called Eco Stone.  In Duluth, you can see this driveway located at 17th Avenue East and London Road – the St. Germaine Building.  It is a very sharp-looking  driveway material that is approved as pervious.  A proper balance of the pervious / impervious surface ratio must be maintained.  It is ecologically the right thing to do.

How soon do I have to build on my lot?

You do not need to commence building until 2024 and complete your home by 2025.

Before I build, can I use my lot to park a trailer or for any other use?

No - especially with such a long time horizon to have to build.  The lot owner who does build shortly needs to have assurance that the lot on either side of him/her is attractive in appearance.  Therefore, there can be nothing parked on or any improvements made to your lot until the lot is improved with a home.  The lot must remain “green” with absolutely no improvements, campers, tents, picnic tables, picnic area, grills, parking of cars/trucks, boat trailers and the like until an approved townhome or single-family home is constructed on the lot.  Before and after your home is constructed, Association Documents govern the use of the lot. 

Once I start building, how long do I have to complete my home?

You have one year to fully complete the exterior of your home including the driveway, the tree planting on the side (s) of your home, etc..  You have as long as you want to complete the inside provided that all is done by 2025.

Can I use the dock and storage building before I build an approved townhome on my lot?

Yes.  You will have full use your storage building if you choose to build one at the time the two buildings are constructed, dock space, boat landing, swimming beach, and community areas prior to building your townhome on your lot.  You will have full access to all community property.  It is just your lot that you cannot use in any manner until you build your home.

How many total homes can be built at The Resort?

St. Louis County approved building up to fourteen homes.  There could be less than 14 homes constructed on the site, but no more.  Lots 7, 8 and 9 can have a single-family home or a twin home.

What does CIC mean?

Common Interest Community.

Is it necessary that I purchase the 24’ x 40’ storage building?

No, you do not have to purchase a 24’ x 40’ storage building.   However, it is highly recommended that you choose a storage unit for resale purposes and added overall utility, but it is not mandatory that you purchase a storage unit.  The storage building is projected to be built in two buildings with offset units as per the site plan.  The storage building will be wood-framed with a dormer, and it will have a potential future “loft” area if the owner chooses the upgraded truss system.  The architecture is designed to be compatible with the development.  The shingles for instance, are the same 30-year shingles as specified for the Home Sites.  A concrete floor and electricity is specified.   If the upgraded truss system is chosen for the loft, each owner may also upgrade to add stairs, insulation, sheet rock, taping and the like.

Can I have a 12’ door in my storage building for my motor home?

Yes, there will be an additional charge to accommodate the additional ceiling height and roof-line changes.  The exact amount will be determined at a later date.  At least two tall-ceiling, 12’-door storage units can be created – in the middle sections of each of the two banks of storage buildings.

Will there be any dock space for guests?

Yes.  There will be a minimum of 4 to and up to 7 designated guest dock spaces for the Association , which will be available on a first come – first served basis.

What is a CIC Association?

The CIC Association is an organization of all of  The Resort home owners. When you purchase a lot at The Resort, you will be a member of the Homeowners Association.   After the developer turns over control of the Association, you will have direct input and you will be able to assist in the control of the affairs of The Resort – if you so desire.  The Association will have a Board of Directors, elected by the members of the Association (i.e. you).  There will be a President, a Vice President, a Secretary and a Treasurer.  As a  homeowner, you can be as “involved” as you wish.  The option is yours.  If you wish to be less involved, you will know with confidence that your Association is professionally managed by an experienced management company, Edmunds Company LLP.

What does the Association do?

The Association essentially governs The Resort.  You as an owner, unlike a renter, maintain a certain control of your investment.  You are an Association of owners.  You can make long-range plans for additional outside amenities, just as you would if you owned your single family residential home.   

Where do I learn more about The Resort Association?

When a purchase agreement is signed, you will receive the Association Documents.  This is a large multi-page document package consisting of the Declaration, the Bylaws, the Association Rules and Regulations, and the Disclosure Statement.  These documents describe the details of The Resort Association.  A substantial part of these documents is Minnesota statutory law.  The balance consists of information specific to The Resort Home Sites.  Buyers who buy into a Common Interest Community, by Minnesota State Law, have a 10-day rescission period.  That means that you will be able to take these documents home, read them carefully and consult with an attorney, and if you wish, you can declare your purchase agreement null and void during that 10-day period

What are the “rules” of the Association?

The Association Documents cover the rules and regulations of The Resort.  The purpose of the documents is to maintain a sense of community peace and harmony. Well-stated Association Rules and Regs contribute to the long-term success of the development, maintain order, and assists in appreciation of real estate value.  The complete list is in the Association Documents which you will receive when you enter into a purchase agreement.  Amongst other areas, here are some sample restrictions:    One cannot park a motor home in your driveway or in front of your home.  There will be designated parking areas for trailers.  These are just a couple of examples. They are all common sense ideas that the developers are confident you will appreciate.

What does a 10-day rescission period mean?

Once you receive the Documents, you will have 10 days to carefully read and/or bring to your attorney to provide advice to you.   Minnesota law allows you to rescind (void) any townhome purchase agreement you have signed, provided you do so within that 10-day period.  That is a protection to you.  An example of this protection is that you could sign a purchase agreement and reserve your lots, and then void the purchase agreement within 10 days after receiving the Association Documents.

Is there an age restriction at The Resorts?

No.  The Resort is open to all age groups.

Can I have pets?

With certain responsibilities and reasonable restrictions, pets may be allowed at The Resort. The Association Documents and the Pet Policy discusses that subject.  In addition, for further information, speak with Mike or Ron Edmunds.

If I wanted to rent my home for a period of time to another party, can I do so?

Yes, however, there is a minimum three month lease required.   The idea for The  Resort is that this is intended to be a stable rather than a transient community.  That is the reason for the three-month minimum rental period.

How were the Association Documents drafted?

Much of the Association Documents are actually Minnesota statutory requirements and have been drafted accordingly.  In the areas where there is discretion, the documents were drafted principally with this in mind:  What would we want, as developers, if we were townhome owners at The Resort?  Well-conceived and well-written Association documents are designed to enhance the long-term value of the development and enhance the harmony of Planned Unit Development living.  Ms. Jennifer Carey, Partner at the law firm Hanft Fride Law Firm has drafted the purchase agreement, and all of the Association Documents.    Log onto this web site for further information: http://www.hanftlaw.com/attorneys/wmburns.html

What are the monthly Association fees?

Right now, while you live in your own single-family home, you have certain expenses that you pay monthly.  Currently, you may write a check to a lawn service for your grass.  In the winter time, for instance, you may have someone who plows your driveway and may even shovel your sidewalks.  Certainly, you write a check each month for garbage service.    These are all expenses that you currently are handling for your residential home.  Similarly, at The Resort, there also are expenses called the Monthly Association Fee or Monthly Maintenance Fee. 

The monthly Association fees per lot are projected to be $169.00 a month based on current costs which includes bringing the docks in and out each year, waste water (septic) monitoring, water treatment / maintenance, all lawn care, general maintenance, snow removal, common area utilities, garbage service,  reserves for future maintenance, professional management, commons area utilities, and more.  Each year, the Board of Directors of the Association will create a budget and present the budget to the members of the Association (i.e. owners) for the upcoming year.

Where does the Monthly Association Maintenance Fee go?

Monthly Association Maintenance Fees will be deposited into your Association account.  As an owner, it is essentially yours.  This money is carefully accounted for, and each month you will receive a written financial statement of condition.  If you can receive email attachments, these statements will be emailed to you monthly.  In the event that there is extra money in the Association account that is not needed, then the monthly Association Maintenance Fee may be adjusted accordingly by the Board.  As a member of the Association, you will have an input as to how this Association money is spent.

How is the monthly Association Maintenance Fee determined?

The monthly fees at The Resort are estimated to be the real costs to operate The Resort, exclusive from your townhome.  The monthly Association fees are determined by the Board.  It is anticipated that garbage service will be discounted around 30-35% from what a home owner in a single family house would pay.  Similarly, snow removal and lawn care generally are substantially less than what an individual would pay because it is a one-stop operation for the contractor and he can discount his price.  Consequently, you will be receiving all of the benefits of townhome living, with professional management, and your costs will likely be lower than if you were paying for each of these services individually.

When will the infrastructure be completed?

The goal is for the infrastructure to be completed in 2009.   The wells have been drilled at this point by the Bob Kent Well Drilling company.  And also to date, a substantial amount of site work has been completed.  Assessment monies received from purchasers at the time of closing for infrastructure work will be held in a Trust Account at Consolidated Abstract and Title..  The Purchase Agreement defines the terms for infrastructure completion, terms of the Assessment, and closing date.  Lot lines and street lines have been surveyed and painted for clear identification of infrastructure and lots that are available for sale.  Potential buyers are encouraged to go to the site to look over this magnificent piece of lake property.

How is The Resort insured?

First of all, each home owner insures his/her own home just as would be done in any other situation.

But there is also an overall insurance policy that covers the garage units, the utility building and grounds.  This is called the master policy.   This policy, amongst other areas of coverage, includes a liability policy, Directors insurance, and the like.  Many insurance companies will bid for writing this insurance.  The responsibility for finding the best policy rests with the Association and the management company, Edmunds Company LLP, working together at this process.   The master insurance policy will be pro-rated based on the number of lots an owner owns and whether or not the owner owns a storage unit.   

What insurance policy covers the dock, the storage unit and its contents?

The master Association insurance policy will cover your storage unit..  Your dock, your boat, and the contents of your storage unit – and liability if someone should become injured in your storage unit – will need to be covered by your personal homeowners  policy,  subject to your insurance agent’s recommendations. 

Do I receive a real estate tax statement?

Yes, similar to your current home.  Your taxes will be based on your storage building, the value of your townhome and the value of the Association land divided by 9 lots.  Note that if owners of lots 7, 8 and 9 build  a twinhome on each lot, then the total bill will be divided by 14. Each townhome owner will receive a tax statement yearly from the County Auditor and will pay his/her real estate taxes directly just as you currently do.

Who is going to manage The Resort?

Mike and Ron Edmunds at Edmunds Company LLP will be the off-site Managers of The  Resort.  The Edmunds Company has had experience managing multi-family complexes since 1969, including The Woodland Garden Apartments and The Mount Royal Pines.   Edmunds Company LLP also currently manages a condominium development known as Matterhorn Ridge and a townhome development known as The Ledges on Lake Superior. The Island Beach Resort Home Sites will be owned by you, so as an owner, you will have certain controls subject to the Association Documents and the direction of the Board.  The Management Company (i.e. Edmunds LLP) will work for the Association.  The individual townhome owners will be represented by a Board of Directors, which will consist of three elected people who are owners.  Edmunds Company LLP will be directed by the Board of Directors.  Mike Edmunds and Ron Edmunds, as individuals, are a part of the ownership and development team.  You can learn more about the Edmunds Company and its principals on the web site www.EdmundsLLP.com.

Is there “value” in the purchase of a lot(s) at The Resort?

While we cannot predict the future, we believe that there is a significant “upside” for the initial buyers of lots at The Resort.   This pristine site had been Island Lake’s largest campground for over sixty years and before that a farmstead. It is close to the City, to the Mall, to dining and to other attractions.  Yet, Island Lake feels as remote as the Boundary Waters in many areas of the big lake – which is dotted with islands.   The Resort site is located on the main body of the water with excellent views of Christmas Island.  The site has its own commercial-type  boat launch, sandy swimming beach with a gentle slope, “marina” area protected by a 140’ long and 40’ wide peninsula, and a pond.  The site, with over eight acres, is spacious enough to allow each townhome to have a 24’ x 40’ wood framed storage building with concrete floor.  Island Lake has become one of the most popular lakes within the immediate Duluth area due to the size of the lake, many islands, excellent fishing and recreation opportunities and all within easy access to downtown Duluth. 

Island Lake is predominantly leased land – owned land is rare.  The Resort site is 100% owned land. Over time, we believe that an investment in this Island Lake property will prove to be an excellent real estate investment for you and your family.

Notes

These have been a series of questions and answers regarding The Resort townhome development, designed so that you will have a better understanding of this development.

This FAQ is part and parcel with the Site Plan and with the Pricing packet.  Terms and conditions may change without notice.

The Purchase Agreement and the Association Documents to govern in any instances where there is a potential conflict between this and other promotional materials.

These Questions and Answers are not intended as legal advice.  Consult your lawyer for legal advice.

Answers to these questions need to be taken in context to the collective answers to all of the questions.