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'' . .� • LAW OFFICE9 � JAME8 3. HOLMES Mr. Burke M. Raymond Village Manager 2701 North Lexir�gton Avenue Roseville, Minnesota 55113 Re; R4CA Townhouse Projec:t 3085 Old Hi�hway #8 My File No. 4530 Dea: Burke : July 11, 1973 � � �-�.�-.-,.ti� � � ��`'— � ao�• ios caxrcn eo souTH EICMTfI atx� MINNEAPOLIS, MINNESOTA b8402 (612) ]�t.7yJ7 I am in receipt of your letter of July 10, 1973 where you indicate that the Council held the conversion of the ROCA glat to an RLS over until their meeting of July 23rd pending further information regarding Provider�t's reasons for refusing to execute the plat. Tt is somewhat difficult for me to explain P�ovident's position, since I believe it to be without merit a�id completely unreasanable. How- _ ever, the question raised by Provident was wh�ther, by consenting to the plafi, they were jeopardizing their security interesi: in the property. We stated that (1) platting only increased their flexibility since in the event of foreclosure they could either sell the project as a whole or by individual units , and (2) that the value of the project, according to appraisals sup- plied to Provident, showed the project to be of substantially greater value if sold `by individual unit. Provident took the position that they wanted a guarante� that ii could be sold either �,vay, that our guarantee wa.s inade- quate, and that the City of Roseville w�uld have to commit, in advance, to "unplat" the property in the event of foreclosure . See john Tuszl's letter attached hereto. Since it was impossible for us to argue with such an unreasonable position, we ofiered to prepay the mortgage, as it is not very large in pro- portion to the value of the project. Provident refused to permit this, adhering to the terms of the mortgage which disallow prepayment for approx- imately another year and one-half .