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~l ~ ~~/07 . . ~ September 14, 2007 Mr. Michael Darrow Interim Community Development Director City of Roseville 2660 Civic Center Drive Roseville, MN 55113 Re :Har Mar Mall Dear Michael- City Staff has recently conveyed to Emmes Realty Services, LLC who represents Gateway Washington, Inc. (owner of Har Mar Mall) a desire to move the driveway into Har Mar Mall from Snelling Avenue to the south to line-up with Skillman Avenue. The purposes of this letter are to register the opposition by Gateway Washington, Inc. to any such change and to explain the reasons for that abjection. In summary, any such change will result in the. possibility of the loss of certain existing anchor tenants of Har Mar (or at the least assertion of claims that such tenants' respective leases have been breached). In addition, unless this issue is quickly resolved, Gateway may lose pending lease transactions involving national anchor tenants due to the uncertainty as to the location of the Snelling driveway. If Emmes loses such transactions, Gateway will suffer significant damages in terms of both lost revenue and the property value of Har Mar. Currently the language in every Anchor Tenant lease (Cub Foods, Marshall's, HomeGoods, Michaels, and Barnes and Noble) prohibits the changing or closing of any entrances, or exits, to or from the Mall without the consent of such tenants. If any such change is made without their consent, some tenants have the right to terminate their lease while others have the right to reduce their rents. Additionally, the Mall's leasing team has letters of intent out to prospective tenants for the front theatre space and the outlot site formerly occupied by Ground Round. Beyond the possibility of losing our existing Anchor Tenants, these potential new tenants are reluctant to sign leases for the vacant theater spaces without la~owing where the entrance from Snelling Avenue will be located. Moving the Snelling Ave. entrance south negatively impacts the sight lines from Snelling Avenue to these spaces, and renders these spaces much less attractive to first class tenants. This change will severely impact or, at a minimum, greatly delay our ability to release the theatre spaces. Moving the Snelling Avenue entrance to the south will also place the road in the only place where we can build an outlot building on the west side of the property. The current outlot site is the only location where we have a legal right to have an outlot building pursuant to existing leases. Certain anchor tenant leases prohibit our building in the area north of the current building including the existing driveway (again, these "no build" areas were insisted upon by the tenants in order to protect visibility of their store signage from adjacent streets). Accordingly, if the driveway were moved to the south, Emmes would be prohibited by these existing leases from moving the current restaurant space to the north, resulting in substantial loss of value of the Mall. We are unclear as to why the City is seeking to remedy any existing traffic problems by changing the driveway location on the east (Har Mar) side of Snelling. From Har Mar's perspective, the existing driveway presents very few operational issues. Any traffic problems which may exist at this intersection are caused primarily by traffic on the west side of Snelling Avenue. It seems