2004-03-09 Payment RequestsWINTHROP WEINSTINE
ATTORNEYS AND COUNSELORS AT LAW
March 9, 2004
Mr. Larry Kruse
City Administrator
City of Albertville
5975 Main Avenue N.E.
P.O. Box 9
Albertville, MN 55301
Dear Mr. Kruse:
Beth Gerstein Timm
(612) 604-6569
btimm@winthrop.com
Our firm represents Albertville 2002, LLC, the entity that owns Lot 1, Block 1 Albertville
Crossings Second Addition; Lot 2, Block 1, Albertville Crossings Second Addition and Lots 1, 2
and 3, Albertville Crossings (the "Property"). Our client received two (2) letters from your
office relating to the Property, each dated February 23, 2004, requesting payments in the amount
of $299,455.22 and $14,221.00, respectively, for work that is claimed to be due and payable to
the City. Please provide us with the written documentation that evidences the City's right to
charge, and Albertville 2002's obligation to pay, the amounts that the City claims are due as set
forth in the Letters.
Please be advised that Albertville 2002, LLC completed a permanent conduit financing with
Wells Fargo Bank, National Association on November 12, 2003. As part of this transaction we
asked the City to provide an estoppel letter identifying all outstanding obligations that remain
due and owing under the terms of all outstanding agreements with the City. I enclosed for your
reference a copy of that letter ("Estoppel Letter") which confirms that the outstanding
obligations remaining due from Albertville 2002, LLC to the City as of November 12, 2003
included the following:
1. cleaning out of the City's storm water detention pond the East side of Lachman Avenue
(please also find attached a letter from SEH acting as the City Engineer confirming that
the costs for this item is $3,000.00);
2. its obligation to pay one-half of the cost of installation of the traffic light at the
intersection of Wright County Road 19 and 57th Street estimating the cost at $66,000.00
(please also find enclosed a copy of the escrow agreement concerning the escrow for this
traffic signal that is dated April 30, 2002 evidencing that the City and KTJ Limited
Partnership entered into an agreement and escrowed funds for the traffic signal, which
was assigned to Albertville 2002, LLC on September 16, 2002 when it purchased the
property with the remaining amount in escrow $67,500.00). We understand that the
Suite3500 1 225 South Sixth Street I Mimeapolis,MN55402-4629 I'MAiN:(612)604-6400 I FAx:(612)604-6800 I www.winthrop.com I A Profession aIAss ociation
Mr. Larry Kruse
March 9, 2004
Page 2
traffic signal has been completed and our client is waiting for the City to confirm and
acknowledge this so that the funds can be released to the City to pay for this obligation
remaining due.
3. The City identified that there was a special assessment for $31,000 for sewer access
charges over a five year period as set forth in the Estoppel Letter.
Nothing in the Estoppel Letter stated that there were other obligations owing to the City for
costs for engineering, legal or professional fees. It is our position that the City identified
those amounts remaining due as of November 12, 2003 and if amounts were otherwise owed
as now claimed they should have been addressed in the Estoppel Letter. Our client is
unaware of any basis for those amounts that are now being claimed due to the City. Unless
the City has a written agreement or other documents between the City and our client that
evidences our client's obligations to pay the amounts stated in the Letters, the City is
estopped from claiming other amounts owed to them except as stated in its Estoppel Letter of
November 12, 2003.
Accordingly, our client will not be paying these bills until we are in receipt of written
documentation confirming the agreement between the City and Albertville 2002, LLC of its
obligation to pay for such costs relating to the Property.
We look forward to hearing from you and resolving this matter at your earliest convenience.
Very truly yours,
WINTHROP WEJNSTINE, P.A.
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Beth Gerstein Timm
BGT/ojm
Enclosures
Cc: Gary Janisch
Jerry Hertel
2100543v1
File No. 10860-1
Albertville 5975 Main Avenue N.E. • P.O. Box 9 • Albertville, MN 55301 • (763) 497-3384 • fax: (7n) 497-3210
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March 10, 2004
Mike Couri, City Attorney
Couri & MacArthur
P.O. Box 369 m
St. Michael, MN 55376
Dear Mr. Couri,
Please find enclosed a copy of a letter and information from Winthrop
Weinstine regarding Coborn's and Albertville Crossings for your file.
Sincerely,
r
y Larry Kruse
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