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FILE No. 786 10/19 '00 13:16 ID:TOLD DEVELOPMENT 612 278 7574 PAGE 1 • eTOLD DEVELOPMENT COMPANY October 19, 2000 Mr. Michael Morison City Manager Saint Anthony Village 3301 Silver Lake Road St. Anthony, MN 55418-1699 Re: Proposed Walgreens Development Northwest Comer of 37`h Avenue & Silver Lake Road Tax Increment Financing Assistance Dear Mr. Mornson: The intent of this letter is to briefly describe our proposed Walgreens development at the northwest corner of Silver Lake Road and 37`h Avenue, and explain why we are hoping we can rely on some level of tax increment assistance from thc.C:ity of St: Anthony. • In short, our project would involve the demolition of the existing Amoco gas station and car wash buildings, along with the combination of the approximately 265 easterly feet of the adjacent property owned by Ken Solie of Village Properties. We would then construct a 14,490 square foot building that would be leased by Walgreen Company for a minimum period of twenty-five years. (A more detailed description of the project is enclosed) We have binding purchase agreements signed with hoth BP-Amoco and Mr. Solis, and have Walgreens' commitment to the project. Provided we can obtain the required governmental approvals, and develop the store at a cost that is in line with our expectations, there is nothing that would keep this project from becoming a reality. Although we expected certain challenges wAh redeveloping the property, our due diligence process has made ns aware of several site conditions that are forcing the cost of redevelopment to be far more than we had anticipated. Specifically, the costs associated with demolition and environmental clean-up orthe Amoco, along with filling the site and taking the necessary measures to contend with the environmenW and geotectn.nical aspects of the vacant parcel have accelerated our redevelopment costs we]l beyond our expectations. As I understand it, the vacant parcel owned by Village Properties may have been used by the City as a dump site in the 1950's. In any case, the soils on the property are not • MInNF-APOUS-MILWAUKEE 6365 Old Shady Oak Road,Suite 120•Eden Prairie,MN 55344 •(952)278.9000 Fax(952)278.7574