2007-09-11 Settlement Demand
~.
Page 1 of2
Bridget Miller
From: Kuboushek, Jason [jkuboushek@iversonlaw.com]
Sent: Wednesday, September 12, 20076:45 AM
To: Rossow, Mark
Cc: Mike Couri; Larry Kruse; Bridget Miller; Reuvers, Paul; Gaviglio, Brian
Subject: RE: City of Albertville; #11056480/11057039
Attachments: 9 11 07 Settlement Demand.pdf
Mark,
We do not see any sizeable increase in exposure for the city by having the trial continued. The damages are
essentially capped because the developer and builders can now obtain building permits and certificates of
occupancy. The interest on the damages accrued so far would increase, but we do not anticipate a large
increase between December and March or April.
Speaking of damages, since my e-mail yesterday I have received Gold Key's settlement demand. The current
demand is $3,018,385.04. We believe this demand is excessive because it includes attorneys fees, loss profits
on Dean Johnson's hotel project and the builder's losses. We have forwarded the breakdown to Mr. Cobb to
have him analyze it.
Finally, I would assume the pre-trial scheduled for October 1 would be re-scheduled when we move the trial date.
It does not make any sense to have a pre-trial in October 2007 when the trial won't be until March or April of
2008.
JJK '
From: Rossow, Mark [mailto:MRossow@lmc.org]
Sent: Wednesday, September 12, 20076:09 AM
To: Kuboushek, Jason
Cc: Mike Couri; Larry Kruse; Bridget Miller; Reuvers, Paul; Gaviglio, Brian
Subject: RE: City of Albertville; #11056480/11057039
Jason: Is there any additional exposure to the city if the trial date is continued? Would the plaintiff's damage
claims continue to accrue? If not, I do not see a problem with continuing the trial date.
How does Judge Mottl's Order affect the settlement conference scheduled for October 1? Is it still on?
Mark
From: Kuboushek, Jason [mailto:jkuboushek@iversonlaw.com]
Sent: Tuesday, September 11, 2007 12:29 PM
To: Rossow, Mark
Cc: Mike Couri; Larry Kruse; Bridget Miller; Reuvers, Paul
Subject: City of Albertville; #11056480/11057039
Mark,
Enclosed please find Judge Mottl's Order regarding our Motion to Amend and the Motions to Intervene. The
Court denied our Motion to Amend because it found "that such a claim is virtually identical to the City's claims
against Gold Key that were already dismissed by Judge Halsey in his Order for Partial Summary Judgment." The
Court, however, did allow Legacy to intervene and only allowed 45 days to conduct discovery.
9/12/2007
Page 2 of2
The Order also indicated the trial is set for December 17. I, however, received an e-mail from Attorney Matt which
indicated she was going to schedule a summary judgment motion to dismiss the builder's claims against Gold Key
for November 27 at 9 a.m. Because of this late hearing date, Attorney Matt has requested the parties stipulate to
moving the trial until after we have gotten a decision on her summary judgment motion. >From the City's
standpoint, I think it makes sense to postpone the trial until after we get a decision so we will know whether or not
we need to prepare for just Gold Key or Gold Key and the builders. Any thoughts?
Jason J. Kuboushek
IVERSON REUVERS
9321 Ensign Avenue South
Bloomington, MN 55438
Direct Dial: 952-548-7206
F acsi mi Ie: 952-946-721 0
ikuboushek@iversonlaw.com
'!t'i'!w. iversonlaw. com
This communication (including attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C.
2510-2521. This communication is confidential and may be legally privileged. If you are not the intended
recipient, you are hereby notified that any retention, dissemination, distribution or copying of this information is
prohibited. If you have received this communication in error, please notify me by telephone immediately and
destroy the information. Thank you.
9/12/2007
SEP-ll-Z007 04:05PM FROM-JOHNSON LARSON PETERSON & MATT PA
+7636824465
T-511 POOZ/003 F-378
JOHNSON, LARSON, PETERSON & MATT, P.A.
A TrORNEYS A T LAW
9118 COMMERCIAL DRIVE
BUFF,\ 1.0, MINNESOTA 55313
'ftLEl'110NE: (763) 68:!-4550 -- FIIX: (763) 682-4465 -- "OLL r-lU:!:: (866) 6112-4550
\VED: w",-w.i1nmlnw.(f""
JAN C. LARSON't
.JOHN T. PETERSONt
CINDI S. MA TT*
MICHAEL G. HALVORSON
OF COUNSEL
THOMAS W. RICHARDS'"
THOMAS W. SPENCE
WAVl~RLY OFFICF.
By Ap!}oil1tmcnt Only
1" Re,d ProperlY Law Sp(!(!!t,llsl
Certified by Milllll::SO(U S(ata Bar An'odlllion
· Qualified Neumrt
WALTER S. JOHNSON
!<)11.2(J(J2
September 11,2007
Mr. Jason j, Kuboushck
lv~rson Reuvers
9321 Ensign Avenue South
Bloomington, MN 55438
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. Kuboushek:
This letter is in response to your recent request that Gold Key prepare a demand for the
City. At 1he present time, Gold Key's damages amount to $3,018,385.04, as indicated on the
attached damages calculation sheet. This number will increase as this litigation drags on. lfyou
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,
Cv~S
Cindi S. Matt
CSMihs
enclosure
cc: Gold Key Development, Inc. (via fax and U.S. Mail)
Steve Yoch, Esq. (via fax and u.s. Mail)
. "
SEP-l1-2007 04:05PM FRO~JOHNSON LARSON PETERSON & MATT PA
+7636824465
T-511 P. 003/003 F~378
Damage Calculations -
FOR SETTLEMENi PURPOSES ONLY, NOT ADMISSIBLE UNDER RULE 408
Current Costs as of 9/1f07
Property Taxes
Assessments
Assessment Interest
Penalty Interest
Penalty
Lost Price Increases (5% per Yr)
Association Fees
Association Bills
Additional Gold key Bills (Mowing)
Ad.ditional Dev Loan Interest
Additional Letter of Credit Fees
Attorney Fees
John Brennan
Cindi Matt
Biersdorf & Associates
Expert Witness Costs
Misc. Legal Expenses
Mediator
Coping
Court Reporter
Misc. Legal Expense
Total
Future Lossed profits
Loss of Value on Unsold Lots
Large Lot Single Family
Small Lot Single Family
Loss of Hotel Ownership and Profits
Loss of Use of Profits on Unsold Lots ( 5 sales I yr)
Total
Builder Losses
Legacy HomeS
TIC Construction
Total
$25,738.81
$43,849.62
$31,214.12
$49,856.45
$80,213.50
$8,835.00
$2,463.65
$4,200_00
$80,313.44
$43,851.37
$7,812.01
$136,171.25
$2,450.00
$48,134.85
$988.25
$257.25
$6,835,32
$3,305.68
$576,490.57
$10,800_00
$171,700.00
$1,229,165.00
$232,845.83
$1,644,510.83
$201,250.08
$596,133.56
$797,383.64
Grand Total $3,018,385.04