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LAW OFFICES KAPLAN, STRAN G IS AND KAPLAN, P. A. 5500 NORWEST CENTER • 90 SOUTI•: SEVENTH STREET MINNEAPOLIS, MINNESOTA 55402 SHELDON KAPLAN 612 /375-1138 SAMUEL L. KAPLAN RALPH STRANGIS TELECOPY 612/375-1143 HARI.EY F. KAPLAN OF COUNSEL ANDRIS A. BALTINS JOHN H. MATHESON DAVID KARAN BRUCE J. PARKER CATHERINE A. BARTLETT ROBERT T. YORK March 27, 1990 MARGERY K. OTTO NANCY S. BENDER-KELNER KARLIN S. SYMONS VIA MESSENGER Mr. Craig Waldron City of Roseville 2660 Civic Center Drive Roseville, MN 55113 Re: Lexington Shoppes Limited Partnership Dear Craig: This letter will confirm our conversation regarding the environmental clean-up at the 75-foot by 75-foot parcel of property at the northwest corner of Lexington Avenue on Woodhill Drwe in Roseville, Minnesota. I have discussed the requirements that you described to me with Tom Hurley, and he understands that the Certificate of Completion for this project will not be issued by the City until the soil venting system has been installed at the site and the contaminated soil now located on the site has been removed or "burned off", and he understands that all such work must be completed by July, 1990. He also understands that the City is requiring that the Development Agreement be amended to provide that the City of Roseville will pay the costs associated with the soil venting system and the removal or "burn off" of the soil and the City will reimburse itself for such payments by offsetting the tax increment payments to be paid under the Development Agreement. As you know, an amendment to the Development Agreement has been prepared and is now being reviewed by Mary Ippel at Briggs & Morgan on behalf of the City of Roseville. We would hope that the amendment will be considered and approved by the City Council at its meeting on April 9, 1990. We should also confirm that the procedure for installation of the soil venting system and removal or "burn off" of the contaminated soil is that either the developer of the apartments or the developer of the retail portion of the project (or an agent designated by one of those parties} will arrange to have the work performed -nd will submit invoices to the City for payment. The City will make the payment and then offset the amount of the payment against the tax increment payments to be made to George Reiling. If this understanding is not consistent with your understanding, please let me know immediately.