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7-25-1997 0:05AM FROM MSP REAL ESTATE. INC. 612 336 4565 P.4 <br /> 410 <br /> 6. This developmenpproposal is not the highest and best use for this.property the city <br /> should wait for a better proposal. <br /> The Mounds Vievtig Commission, they Economic Development Commission, <br /> SRF Consulting Group,"Towle Real Estate and Mardell Amundson Appraisers have all <br /> reviewed'this property in detail and have all concluded that its highest and best use is for <br /> multi-family development that incorporates the rehabilitation of the existing Red Oak <br /> Apartments. City staff marketed this property for commercial development to 25 <br /> developers and received no interest. It is the reasoned opinion of all of the experts as <br /> wel as city staff,.the City Planning Commission and the City Economic Development <br /> Commission ission that multi family is this property's highest and best use. <br /> 7. Rental Property will deteriorate over time. <br /> This property has already deteriorated substantially. Our.proposal is to.cure all of this <br /> deterioration with quality, low-maintenance materials. Properties deteriorate because of <br /> ip , lack of money to keep them maintained properly. We haveprepared our operating <br /> budgets to meet or exceed Minnesota.Housing Finance Agency standards for operating <br /> this type of property. Our operating budgets have also been reviewed by MHFA, Ramsey <br /> County, TCF bank as well as the real estate investment department of Key Bank (one of <br /> the nati'on's largest banks) - all have found these operating figures to be more than <br /> adequate to maintain'the quality level of this property over time. Furthermore, our <br /> property manager will institute a preventive maintenance program to insure we maintain <br /> our property's top condition. On top of all this, we will be setting.aside $250/unit each <br /> year in a replacement reserve to begin saving for future replacements. MSP Real <br /> Estate, as well as Milo Pinkerton personally, are providing guarantees to insure the long <br /> term success of this property. Our company, as well as our partners, are investing in this <br /> property because we believe it will appreciate in value over time and we are planning <br /> right now to make that appreciation a reality. <br /> Everybody with whom we have spoken (even our detractors) hal agreed that on its merits, <br /> our development proposal is of the highest quality. We hope that the City will make its <br /> decision based on solving an existing problem with an extremely well thought out, high <br /> quality development. <br /> Sincere , <br /> O <br /> IP /ire <br /> 3e ' <br /> aunyb2.1u <br />