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2008-05-06 Answer to SummonsMichael C. Couri* Andrew J. MacArthur Robert T. Ruppe— *Also licensed in Illinois **Also licensed in California May 6, 2008 COURT, MACAR THUR & RUPPE, P.L.L.P. Attorneys at Law 705 Central Avenue East PO Box 369 St. Michael, IN 55376-0369 (763) 497-1930 (763) 497-2599 (FAX) courimacarthur@earthlink.net Mr. Marvin Fabyanske Fabyanske, Westra, Hart & Thomson, P.A. 800 La Salle Avenue, Suite 1900 Minneapolis, MN 55402 Minnesota Development Agency, LLC Hunters Development, LLC 9766 Fallon Avenue #201 Monticello, MN 55362 Contractors Capital Corporation 1428 5th Avenue Anoka, MN 55303 Kyle R. Hartnett Re: City of Albertville; S.J. Louis Construction, Inc. v. Minnesota Development Agency, LLC, et al. Dear Sirs: Our office represents the City of Albertville in the above -entitled matter. Please find enclosed and hereby served upon you the City of Albertville's Answer to Plaintiff's Complaint in the above -entitled matter. Please inform me when the Complaint is filed in District Court. Thank you. Sincerely, Michael C. Couri C Couri, MacArthur & Ruppe, P.L.L.P. Enclosure Cc: Larry Kruse, City Administrator STATE OF MINNESOTA COUNTY OF WRIGHT S.J. Louis Construction, Inc., Plaintiffs, V. Minnesota Development Agency, LLC, a Minnesota Limited Liability Company; Hunters Development, LLC, a Minnesota Limited Liability Company; Contractors Capital Corporation; a Minnesota corporation; And City of Albertville, a Minnesota Municipal corporation, Defendants. DISTRICT COURT SEVENTH JUDICIAL DISTRICT CASE TYPE: CONTRACT Court File No. ANSWER Defendant City of Albertville ("City") by and through undersigned counsel Couri, MacArthur & Ruppe, P.L.L.P. respectfully submit this Answer in response to Plaintiff's Complaint as follows: THE PARTIES 1. As to the allegations contained in Paragraph 1 the City admits the same. 2. As to the allegations contained in Paragraph 2 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 3. As to the allegations contained in Paragraph 3 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 4. As to the allegations contained in Paragraph 4 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 5. As to the allegations contained in Paragraph 5 the City admits the same, except that the City states that its address is 5959 Main Avenue North East, Albertville, Minnesota. 6. As to the allegations contained in Paragraph 6 the City admits the same. 7. As to the allegations contained in Paragraph 7 the City admits the same. FACTUAL ALLEGATIONS As to the allegations contained in Paragraph 8 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 9. As to the allegations contained in Paragraph 9 the City admits the same. 10. As to the allegations contained in Paragraph 10 the City admits the same. 11. As to the allegations contained in Paragraph 11 the City admits the same. 12. As to the allegations contained in Paragraph 12 the City admits the same, but states that the City's ability to draw on the letter of credit and pay contractors who worked on the Municipal Improvements arises after the Developer fails to provide the City with lien waivers for such work. 13. As to the allegations contained in Paragraph 13 the City admits the same. 14. As to the allegations contained in Paragraph 14 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 2 15. As to the allegations contained in Paragraph 15 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 16. As to the allegations contained in Paragraph 16 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 17. As to the allegations contained in Paragraph 17 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 18. As to the allegations contained in Paragraph 18 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 19. As to the allegations contained in Paragraph 19 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 20. As to the allegations contained in Paragraph 20 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 21. As to the allegations contained in Paragraph 21 the City admits the same. 22. As to the allegations contained in Paragraph 22 the City is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein and therefore denies the same. 3 without knowledge or information sufficient to form a belief as to the truth of that allegation contained therein and therefore denies that allegation. 31. As to the allegations contained in Paragraph 42 the City admits the same. 32. As to the allegations contained in Paragraph 43 the City denies the same. 33. As to the allegations contained in Paragraph 44 the City admits this allegation except as to that portion that states "and order the City to draw against Hunters Development's letter of credit or other security for the payment of Plaintiff's work performed on the Municipal Improvements identified in the Development Agreement" which the City denies. The City joins in Plaintiff's request for a Court order authorizing the City to draw on the Hunters Development letter of credit for the purposes of paying Plaintiff that which it is entitled for installing the Municipal Improvements, provided the Court recognizes and reserves to the City the right to withhold such amounts from the Letter of Credit as deemed necessary by the City to fulfill Defendant's obligations to the City under the terms of the Development Agreement attached as Exhibit A to the original complaint including, but not limited to, the Development Agreement's warranty provisions and payment of City expenses. PRAYER FOR RELIEF WHEREFORE, defendant City of Albertville respectfully requests from this Court the following relief- 1 . The entry of a declaration of rights determining that, A. The City is permitted to draw on the Letter of Credit for the specific purposes as identified in Paragraph 5C of the Development Agreement to fulfill the obligations of Hunters Development to Plaintiff as outlined in the Complaint. matter. B. That this Court recognize and reserve to the City the right to withhold such amounts from the Letter of Credit as deemed necessary by the City to fulfill Defendant's obligations to the City under the terms of the Development Agreement attached as Exhibit A to the original complaint including, but not limited to, the Agreement's warranty provisions and payment of City expenses. 2. That a hearing on Plaintiff's requested relief against the City be scheduled on this 3. For an award of reasonable costs and attorney's fees. 4. For such other relief as the Court deems just and equitable. COURI, MACARTHUR & RUPPE, P.L.L.P. Dated: May 6, 2008 By Nc�. Michael C. Couri (#214887) Attorneys for Plaintiff 705 Central Avenue East P.O. Box 369 St. Michael, MN 55376-0369 (763) 497-1930 ACKNOWLEDGMENT The undersigned hereby acknowledges that costs, disbursements and reasonable attorney and witness fees may be awarded to the opposing party or parties pursuant to M.S. § 549.211. By CU: C t/ Michael C. Couri (#214887) rei