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2007-03-13 LOC Reduction Request @ IVERSON REUVERS ATTORNEYS AT LAW March 13,2007 Stephen E. Yoch FELHABER, LARSON, FENLON & VOGT 444 Cedar Street, Suite 2100 St. Paul, MN 55101-2136 Cindi Matt Johnson, Larson, Peterson & Matt, P.A. 908 Commercial Drive Buffmo,MN 55313 RE: Gold Key Development, Inc. v. City of Albertville v. SEH, Inc. and TIC Homes, Inc. v. City of Albertville v. SEH, Inc. Dear Counsel: On February 26, I met with the Albertville City Council to discuss Ms. Matt's February 20,2007, request for a reduction in the Letters of Credit on the Prairie Run project and Gold Key's and TIC Homes' requests for building permits and certificates of occupancy in the Prairie Run project. The Council directed me to inform you the City will not be reducing the Letters of Credit on the Prairie Run project. This is a further affirmation of Attorney Couri' s recommendation and the City Council's motion made on February 5,2007. See attached Minutes. Additionally, the Council directed me to inform you the City will not be issuing any new building permits on the Prairie Run project because the project is in default. The City will, however, issue certificates of occupancy where a lot has previously been given a building permit and the homes meet the City's building elevation requirements. If you have any questions regarding the City's position, feel free to contact me. Yours truly, IVERSON REUVERS Jason J. Kuboushek IVERSON REUVERS, LLC I 9321 ENSIGN AVENUE SOUTH I BLOOMINGTON, MN 55438 I 952.548.7200 I FAX: 952.548.7210 JASON J. KUBOUSHEK DIRECT 952.548.7206 JKUBOUSHEK@IVERSONLAW.COM JON K. IVERSON PAUL D. REUVERS JEFF M. ZALASKY JASON J. KUBOUSHEK PAMELAJ.F. WHITMORE JASON M. HIVELEY SUSAN M. TINDAL JEFFREY A. EGGE AMBER S. LEE WWW.IVERSONLAW.COM March 13, 2007 Page 2 cc: John Markert Anton van der Merwe Larry Kruse, City Administrator Michael Couri, City Attorney