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2006-04-27 Ltr for 2006 County Ditch No. 9 Flood Study "Also licensed in Illinois COURl, MACARTHUR & RUPPE, P.L.L.P. Attorneys at Law 705 Central Avenue East PO Box 369 St. Michael, MN 55376-0369 (763) 497-1930 (763) 497-2599 (FAX) courimacarthur@earthlink.net David R. Wendorf Kristen H. Carr Jt)1. ~~O~ 4p~ !). . l"'P-z,. ~ 11 4lI'/) '''vIi Michael C Couri- Andrew J. MacArthur Robert T. Ruppe-- ""Also licensed in California April 27, 2006 Mr. Kyle Hegna Wilkerson & Hegna, P .L.L.P. One Corporate Center III, Suite 300 7300 Metro Boulevard Edina, MN 55439-2302 Re: City of Albertville v. Edina Development Corporation. Dear Mr. Hegna: Please find enclosed a copy of the 2006 County Ditch No.9 Flood Study performed by the City's engineering. firm, Bolton & Menk, Inc.. and presented to the City Council on April 17,2006. The study has concluded that the storm water system in the Albert Villas subdivisions does not meet City ordinances and does not function properly. As I understand the study's conclusions, the problems result from three different errors: 1) approximately 500 acres of land that drain into the developments were not factored into the storm water calculations; 2) the storm water storage volume of the large wetland in the development was overestimated by approximately 29 acre feet of water; and 3) the original design assumed that water would discharge from the ponds to County Ditch No. 9 at a faster rate than the water in fact discharges. Taken together, the effect of these three errors is that the development will experience flooding during a 100-year, 24 hour storm event, which in turn does not meet the City's storm water ordinance requirements. This constitutes a default under the Development Agreements. A formal notice of that default will be sent to the Developer shortly. Although a feasibility study has not been conducted yet, the City engineer has roughly estimated the cost to remedy these drainage related defaults at $1.5 to $3 million dollars,exclusive of land acquisition costs. Given the magnitude of the errors and the expense to remedy the problem, the City will be filing a motion in Wright County District Court in the near future to amend the complaint to allege the above default and to add any additional parties to the litigation that may bear some of the responsibility for the errors. Mr. Kyle Hegna April 27, 2006 Page 2 of2 That motion has tentatively been scheduled for 9 a.m. on May 30th. Formal motion papers will follow next week. Please call me at your earliest convenience to discuss how this issue may affect the tentative settlement negotiated last year. Thank you. ;:;JJ C ~ Michael C. Couri Couri, MacArthur & Ruppe, P .L.L.P. Enclosure Cc. Larry Kruse