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61 <br /> St. Anthony <br /> Village Properties, LLP <br /> 2500-39`h Avenue N E,. Suite 230 <br /> MiAneapolis, M-N .5542.1 <br /> January 4, 2000 <br /> Railroad Lease / Parking Issue at 2801 37th Ave . NE <br /> From: Ken Solie <br /> On this date, I discussed the current land leasing <br /> philosophy of CP Rail with David Drach of CP (612-347- <br /> 8254 ) . He stated as follows : <br /> 1 . All new leases and lease renewals are being done on a <br /> month to month basis with 30 days notice . This is CP <br /> Rail policy and there are no exceptions . <br /> • 2 . It is CP Rails position that -they want. .to sell any .land <br /> that is not essential to railroad operations . Their <br /> asking price i-s the market value of neighboring land <br /> without regard to the land-locked nature of the <br /> parcels . They feel that while the land has' no value to <br /> the public, it has "market value" to the owners of <br /> contiguous property. Drach said "They will hold the <br /> property for 80 years before they will sell it at less <br /> than market value <br /> 3 . Drach sees no reason that CP Rail would not- renew our <br /> lease in the future . He stated that the only reasons <br /> for lease termination are for cause (non payment of <br /> rent) or if the railroad. had a need for the land for, <br /> business purposes . He did. not see any pending rai.lroad- <br /> need for this land in the future . I asked him to <br /> document this in a letter, He refused. <br /> 4 . He stated that he thought there.-was a 100 feet wide <br /> strip• through this area that could be available for <br /> lease but it seems clear that their preference would be <br /> to sell . <br /> • <br /> From this discussion, it seems that the worst case scenario <br /> would be that CP Rail refuses to renew our lease at its <br /> expiration for the purpose of forcing us to purchase the <br />