2007-09-11 Settlement DemandSEP-11-2007 04:05PM FROM-JOHNSON LARSON PETERSON & MATT PA +7630824465 T-511 P.002/003 F-378
JOHNSON, LARSON\ PETERSON & MATT, P.A.
ATTORNEYS AT LAW
908 COMMERCIAL DRIVE
BUFFALO,MINNESOTA 55313
'rseernoee: (763) 68^---0550 --- FAX: (763) 682-4465 -- root PULL: (866) 682-3550
WEB: ww1v.ilnmhnv.cnm
JAN C. LARSONt OF COUNSEL
JOHN T. PETERSONJ• THOMAS W. RICRARDS*
CINDI S. MATT* THOMAS W. SPENCE
MICHAEL G. HALVORSON W_AVERLY OFFIGE
B7 Appointment Only
j' Fen1 Property Lmv Specntllsl
Cerl{{red by Minnesota Slate ear Anocintioil
QUOJl fted Neutral
September I I, 2007
Mr. Jason J. Kubouslrck
Iverson Reuvers
9321 Ensign Avenue South
Bloomington, MN 55438
WALTER S. JOIINSON
7912.21102
FOR SETTLEMENT PURPOSES ONLY, NOT ADMISSIBLE
PURSUANT TO RULE 408
VL4 FACSIMILEAND U.S. MAIL
RE: Prairie Run Litigation
Court File Nos. 86-CV-06-2998/86-CV-06-4997
Dear Mr. Kubousbek:
This letter is in response to your recent request that Gold Key prepare a demand for the
City. At the present time, Gold Key's damages amount to $3,018.385.04, as indicated on the
attached damages calculation sheet. This miniber will increase as this litigation drags on, if you
have specific questions about the damages calculations, please let me know. Otherwise, please
let me know whether the City has a settlement offer for Gold Key. Thank you.
Sincerely, r
�vL
Cindi S. Matt
CSM/hs
enclosure
cc: Gold Key Development, Inc. (via fax and U.S. Mail)
Steve Yoch, Esq. (via fax and U.S. Mail)
SEP-11-2007 04:05PM FROM-JOHNSON LARSON PETERSON & MATT PA +7636624465
Damage Calculations -
FOR SETTLEMENT PURPOSES ONLY, NOT ADMISSIBLE UNDER RULE 408
Current Costs as of 9/1107
Property Taxes
$25,738.81
Assessments
Assessment Interest
$43,849.62
Penalty Interest
$31,214.12
Penalty
$49,866,45
Lost Price Increases (5% per Yr)
$80,213,50
Association Fees
$8,835.00
Association Bills
$2,463.65
Additional Gold key Bills (Mowing)
$4,200.00
Additional Dev Loan Interest
$80,313.44
Additional Letter of Credit Fees
$43,851.37
Attorney Fees
John Brennan
$7,812.01
Cindi Matt
$136,171.25
Biersdorf & Associates
$2,450.00
Expert Witness Costs
$48,134.85
Misc. Legal Expenses
Mediator
$988.25
Coping
$257.25
Court Reporter
$6,836.32
Misc. Legal Expense
$3,305.68
Total $576,490,57
Future Lossed Profits
Loss of Value on Unsold Lots
Large Lot Single Family $10,800.00
Small Lot Single Family $171,700.00
Loss of Hotel Ownership and Profits $1,229,165.00
Loss of Use of Profits on Unsold Lots ( 5 sales / yr) $232,845,83
Total $1,644,510.83
Builder Losses
Legacy Homes $201,250.08
T/C Construction $596,133.56
Total $797,383.64
Grand Total $3,018,385.04
T-511 PA03/003 F-378