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2010-01-11 CPDC Developer Default January 11, 2010 VIA CERTIFIED MAIL Contractor Property Developer's Company Attn: Homer Tompkins, President 3030 Centre Point Drive Suite 800 Roseville, MN 55113 M&I Marshall & Ilsley Bank Attn: Corporate Real Estate 770 N. Water Street, N.W.9 Milwaukee, WI 53202 Re: City of Albertville; Town Lakes 6tb Addition. To Whom It May Concern: Our office represents the City of Albertville, Minnesota. On September 7, 2005, Contractor Property Developers Company ("CPDC") entered into a Planned Unit Development Agreement for Town Lakes 6d' Addition with the City of Albertville ("Developer's Agreement"). CDCP is currently in default on the Developer's Agreement for the failure fully install all Municipal Improvements as required by paragraph 3 of the Developer's Agreement and failure to fully install the On- and Off-site Improvements as required by paragraph 4 of the Developer's Agreement. A detailed itemization of the work remaining to be completed is set out in the attached Engineer's Estimate. In addition, CPDC is in default for failing to reimburse the City for costs it has incurred in excess of$1,237.50 related to the implementation of the Developer's Agreement and failure to defend the City in that certain Wright County District Court action titled Hennen Construction Co. v. CPDC, Alliance Bank, and the City of Albertville. Furthermore, paragraph 9 of that Developer's Agreement requires CPDC to pay all costs incurred by the City arising from the approval of the development, the installation of the improvements and the enforcement of the Developer's Agreement. To date, the City has incurred $1,237.50 in costs which are required to be reimbursed under paragraph 9 of the Developer's Agreement but which have not yet been paid and which have been outstanding more than 30 days. CPDC is in default of paragraph 9 for non-payment of these costs. CPDC&M&I Bank January 11,2010 Page 2 Please cure the above defaults immediately. If you fail to cure the above defaults in accordance with paragraph 17 of the Developer's Agreement, the City will exercise any or all of its rights available to it under the Developer's Agreement, including drawing on the Letter of Credit. Please feel free to contact me if you have any questions regarding this matter. Thank you. Sincerely, Bridget Miller Clerk, City of Albertville cc: Beth Jacobs Glenn Bergman