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9W1,4 ceemeak <br />515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 484 -2177 / FAX: (651) 484 -4538 <br />October 9, 1998 <br />Mr. Kim Wise <br />Cinemark USA, Inc. <br />7502 Greenville Avenue <br />Suite 800 <br />Dallas, TX 76231 <br />Re: Development Concerns <br />Dear Mr. Wise: <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />In talking with Tom Bray of Briggs & Morgan, I have come to learn that the lease proposal you <br />had put forth to us apparently does not work from Cinemark's standpoint. Mr. Bray informed <br />me that we will now be reconsidering the "Pay -As- You -Go" concept the City initially proposed <br />last spring. While I am interested in the basis for Cinemark's change of position, my major <br />concern is the status of this project. <br />As we have discussed many times, I am very concerned about the apparent lack of progress <br />being made with this deal. Many deadlines have come and gone with minimal activity <br />occurring. A development agreement does not appear anywhere near ready for execution. You <br />have also not undertaken any work relative to surveying, environmental analysis, or soils work. <br />Equally as important you have not identified the developer who is to be responsible for the <br />components outside of the theater development. <br />While I have no doubt that you are very skilled at your job, the constant delays on this project are <br />wearing on the patience of affected business owners and our elected officials. While your <br />occasional letters or periodic visits have mollified those concerns in the past, the time for action <br />is now! <br />Therefore, I would like an update from you as to the status of the items I mentioned above <br />(surveying, etc.). I am also requesting that either the developer or Cinemark provide us with a <br />good -faith deposit of $25,000 as an indication of the commitment on your part to carry this <br />project forward and to reimburse the City for any future out -of- pocket costs in continuing to <br />work on this deal. The City has been more than patient in working with you on this endeavor. <br />Page 9 <br />