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2007-08-07 Default LetterAugust 7, 2007 Gold Key Development, Inc. Attention: Dean R. Johnson 4700 County Road 19 Medina, MN 55357 Re: City of Albertville; Prairie Run; Gold Key Development. Dear Mr. Johnson: On June 8, 2007, the Minnesota Pollution Control Agency (“MPCA”) issued the attached Notice of Violation related to City of Albertville Permit Coverage for 2004 Prairie Run C00012695. The permit referenced in the Notice of Violation is the National Pollutant Discharge Elimination System/State Disposal System (NPDES/SDS) Construction Storm Water Permit issued to the City of Albertville by the MPCA for the Prairie Run plat developed by Gold Key Development, Inc. The violations cited by the MPCA include a finding that the permanent storm water management system basin contains only 4.2 acre feet of storage where 8.9 acre feet are required by the NPDES/SDS permit. The violation notice sets out the specific reasons for the violations. Paragraph 13.F. of the City Of Albertville Planned Unit Development Agreement Prairie Run between the City of Albertville and Gold Key Development, Inc., dated July 16, 2004 (“Developer’s Agreement”) states: Developer represents to the City that Said Plat complies with all City, county, state and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. Developer agrees to obtain all required federal, state and local permits. If the City determines that Said Plat does not comply, the City may, at its option, refuse to allow construction or development work in the plat until Developer so complies. Upon the City's demand, the Developer shall cease work until there is compliance. In addition to the violations of the Developer’s Agreement previously noted in City of Albertville letters to you dated November 29, 2005 and December 1, 2006, the MPCA’s notice of Violation constitutes an additional violation of paragraph 13.F of the Developer’s Agreement in that the plat does not comply with State storm water management regulations. Accordingly, the City is hereby declaring Gold Key Development, Inc. in default of paragraph 13.F. of the Developer’s Agreement based on the MPCA violations noted above. Letter to Gold Key August 7, 2007 Re: City of Albertville; Prairie Run; Gold Key Development Page 2 The City requests that the Developer submit a plan to remedy the violations noted in the MPCA’s June 8, 2007 Notice of Violation. The City is also again requesting that the Developer submit a plan to remedy the previously identified violations of the Developer’s Agreement. As with the prior defaults, the City will continue to withhold building permits in this plat until all defaults have been remedied. Please forward any proposed solutions to the City Engineer for his review. Sincerely, Larry Kruse City Administrator