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i <br /> fit 0 <br /> June 7, 1994 <br /> Mr. Larry Hamer <br /> City Engineer <br /> St. Anthony Village <br /> 3301 Silver Lake Road <br /> St. Anthony, MN 55418 <br /> Dear Larry; <br /> As you are aware, we have suspended potato chip production at the Happy's <br /> production facility in St. Anthony for the last two and one-half months. This production <br /> • has been moved to other plants while we evaluate other options for the St. Anthony <br /> facility. I should note that we are continuing to operate our relatively small popcorn and <br /> specialty re-bagging equipment at Happy's. Our office, warehousing and sales <br /> operations are also continuing to operate. <br /> It is our intention to either re-open the potato chip operation or to convert the plant into <br /> a corn snack production facility. Because the potato chip industry is in a very <br /> competitive consolidation phase I would anticipate that re-opening the potato chip <br /> operation would be the less likely of the two alternatives. If we convert the plant into a <br /> corn snack production facility it will require a substantial capital investment in new <br /> equipment. The only way to justify such 'an investment is to run the operation around <br /> the clock, or three shifts. The first two shifts would produce and package product. The <br /> third shift would clean all the production equipment nightly and possibly, during peak <br /> demand periods, be used for additional production. I would anticipate that our office <br /> and sales staff would operate as they do currently. Our warehouse staff would be <br /> increased by one shift to accommodate the extra production shift. <br /> I would not expect the conversion of this plant to have any significant affect in terms of <br /> noise or other outside activity above and beyond what we have experienced with our <br /> potato chip operation in the past. <br /> 1 <br /> 1 HAPPY'S POTATO CHIP CO. <br /> 3900 CHANDLER DRIVE, MINNEAPOLIS, MINNESOTA 55421-4494 <br /> 1 <br /> TELEPHONE: 612-781-3121 FAX: 612-781-3125 <br />