06-23-2004 Council Agenda - Laserfiche WebLink

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D)OMINILM Development & Acquisition, LLC March 8, 2004 Mr. Joel R. Hanson Administrator City of Little Canada 515 Little Canada Road Little Canada, MN 55117 -1600 Re: Provinces Apartments Little Canada, MN Dear Mr. Hanson: On January 6, 2003, we provided written notice to the City of Little Canada that with the termination of the "4(d) class rate program" effective December 31, 2003, there would be insufficient funds in the escrow account to complete the installation of a sprinkler system. A copy of this letter is enclosed. With the tezniination of "4(d)" effective December 31, 2003 the escrow situation has not changed. Based on the escrow deposit calculation, there was no additional contribution to the escrow required in 2003. Therefore, the escrow has a current balance of $133,578. The bid obtained last year to sprinkle the building was 3258,000 and likely to be higher a year later A significant gap of at least $124,422 remains. In discussions with the City there was some question whether the "4(d)" program actually terminated. We asked the Ramsey County Assessors office to resolve this question. The letter enclosed from Mr. Kent Smith from the County affirms the teiniination of the "4(d)" program. Given that die "4(d)" program was ten ainated by the Legislature and per the terms stipulated in the agreement with the City, we respectfully request that the monies in the escrow be returned to the parties that made the deposits plus interest thereon. This results in return of 543,210 to the City (538,850 plus interest of $4,360) and 390,368 to the Provinces ($85,768 plus interest of $4,600). - 5 - 2355 Polaris Lane North Suite 100 Minneapolis. N 55447 Phone 763/354 -5500 Fax 763/354 -5650