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fs'3U <br />Way I �r 77/e Cana% <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener, Members of the City Council <br />FROM: Joel R. Hanson, City Administrator <br />DATE: March 22, 2007 <br />RE: Oasis Update <br />MAYOR <br />Bill Blesener <br />COUNCIL <br />Rick Montour <br />Barbara Allan <br />John Keis <br />Michael McGraw <br />ADMINISTRATOR <br />Joel R. Hanson <br />Relative to the realignment of Viking Drive, we have not yet closed with Twin City Stores, Inc. on <br />the Oasis property. While they indicate they are very willing to consummate the transaction, they are <br />having difficulty securing a release from their mortgage lender. Apparently, there are some issues <br />involving multiple properties being secured by this mortgage and how much of the sale proceeds <br />needs to be applied to mortgage pay down versus leaving Twin City Stores, Inc. with some cash to <br />help their other stores from an operations standpoint. Another issue involves some attorney fees the <br />lender has incurred related to past transactions that they are looking to recover from the sale <br />proceeds. <br />I have sent correspondence to Oasis informing them that we need to get this resolved immediately to <br />meet our obligations with the reconstruction of Viking Drive as well as our land swap with <br />McDonald's. If Twin City Stores, Inc. cannot resolve this issue, it will jeopardize the success of our <br />project. <br />Staff will update you at Monday's meeting as to any change in this issue. <br />cc: Scott Stevens, Twin City Stores, Inc. <br />