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MINE =EMU& • /11•••=.• .=••••=••••• June 13, 2002 THE EVEREST GROUP, LTD. Aaron Backman Economic Development Coordinator CITY OF MOUNDS VIEW 2401 Highway 10 Mounds View,MN 55112-1499 RE: Taxable Tax Increment Revenue Note of 1994 (C.G.Hill Project) Dear Aaron: I am writing as a follow-up to our recent meetings and conversations concerning the C.G. Hill development project and its "pay-as-you-go"TIF Revenue Note payments. We appreciate the assistance you and Shelly Eldridge from Ehlers &Associates have provided in helping to correct the payments calculated under this Revenue Note. Unfortunately, it is clear that even after these appropriate payment corrections,the$196,000 principal amount of the Revenue Note will not be paid within the original term of the Note,which • is scheduled to terminate with the August, 2003 payment. As we have discussed,this shortfall in payments under the Note is a direct result of the state legislature's recent"compression"of the real estate tax class rates. Accordingly, we are writing to request that the Revenue Note be amended to simply extend its term until February 1, 2014,the date of termination of the underlying TIF District.We make this request in the hope and expectation that the principal amount of the Revenue Note can be paid in full, consistent with the intent of the parties when the Note and corresponding TIP Development Agreement were entered into in 1994. Of course, under the terms of the Note, once the principal amount is paid in full,payments to the Note holder cease. We ask that you submit this request to the Mounds View Economic Development Authority for consideration at the next available EDA meeting.We are available to meet with staff and/or the EDA as appropriate to discuss this request. Thank you in advance for your assistance. Sincerely, THE EVEREST GROUP,LTD. on behalf of Red Cent Management,LLC 4-76•4 Timothy J. Nelson TJN/Ic 100 VH Ie Center Drive Suite )i) Nnrlh 0,11<,,, MN 3,3120 3 (; 1)- 111M.