2004-09-15 Ltr Re; Notice of Default,
. ~ .
""Also licensed in California
COURI, MACARTHUR &
RUPPE, P.L.L.P.
Attorneys at Law
705 Central A venue East
PO Box 369
St. Michael, MN 55376-0369
(763) 497-1930
(763) 497-2599 (FAX)
couriandmacarthur@pobox.com
Michael C. Couri.
Andrew J. MacArthur
Robert T. Ruppe..
David R. Wendoif
"Also licensed in fllinois
June 15, 2004
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Edina Land Corporation
700 Industry Avenue
Anoka, MN 55303
Attention: Rick Lewondowski
Edina Development
700 Bunker Lake Blvd.
Anoka, MN 55303
Attention: Mike Thomas
Re: City of Albertville; Notice of Default of Developers Agreements:
Albert Villas dated August 11, 2000
Albert Villas Second Addition dated October 9, 2000
Albert Villas Third Addition dated April 6, 2001
Albert Villas Fourth Addition dated April 1, 2002
Albert Villas Sixth Addition dated May 30, 2003
Dear Mr. Lewondowski and Mr. Thomas:
It has recently come to the attention of the City of Albertville that Edina
Development is not in compliance with Paragraph 8 of the Developer's Agreements for
the projects listed above in that Edina Development has failed to pay $378,935.77 to the
City for the reasonable administrative, legal, planning, engineering and other professional
costs incurred by the City as a result of the various Albert Villas projects. Paragraph 8 of
each of the Developer's Agreements provides that the developer, Edina Development, is
to pay all of the City's costs and expenses related to the subject projects. The relevant
paragraph states as follows:
Developer to Pay City's Costs and Expenses. It is
understood and agreed that the Developer will reimburse the
City for all reasonable administrative, legal, planning,
Edina Development
June 15, 2004
Page 2
engineering and other professional costs incurred in the
creation, administration, enforcement or execution of this
Agreement and the approval of Said Plat, as well as all
reasonable engineering expenses incurred by the City in
designing, approving, installing, and inspecting said
Improvements described above. Developer agrees to pay all
such costs within 30 days of billing by the City. If Developer
fails to pay said amounts, then the City may specially assess
such costs against the lots within Said Plat. Developer
knowingly and voluntarily waives all rights to appeal said
special assessments under Minnesota Statutes Paragraph
429.081. Developer has the right to request time sheets or work
records to verify said billing prior to payment.
The City has previously requested that you pay $378,935.77 in expenses incurred by the
City and which are reimbursable under the Developers' Agreements. The City has
previously provided Edina Development with a worksheet and detailed invoices outlining
the $378,935.77 in total City costs for the various Albert Villas projects, which remain
due and payable to the City.
Pursuant to Paragraph 24 of the various Developers' Agreements, this letter shall
serve as formal notice to you that the City considers you in default under the above-
described Developer's Agreements and now requests that Edina Development pay the
amount requested within the 30 days allowed to cure a default pursuant to the various
Developer's Agreements.
Please be advised that pursuant to Paragraph 14 of the subject Developer's
Agreements, a breach of any of the terms of the Developer's Agreement by the
Developer may be grounds for denial of building permits and/or revocation of the
Conditional Use Permits.
If you do not pay the amount owed to the City within 30 days, the City will
enforce the subject Developer's Agreements, most likely drawing on any available letter
of credit and through any necessary court action. Please be advised that under the terms
of the subject Developer's Agreements, your company will be responsible for any
expenses the City incurs in enforcing the provisions of the various Developer's
Agreements. As you are aware, these costs may include attorney's fees and court costs, if
necessary. Please notify this office when you have paid the $378,935.77 to the City.
Your cooperation in this matter is greatly appreciated. If you have any questions,
please do not hesitate to contact this office.
t
Edina Development
June 15, 2004
Page 3
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Michael C. Couri
Couri, MacArthur & Ruppe, P.L.L.P.
Cc: Lany Kruse
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