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NOV-04-97 09 :25 AM PELSTRING01 5509221 P. 02 <br /> •vn._enoaim <br /> 110 <br /> PELSTRING CAPITAL CORPORATION <br /> 4205 Lancaster Lanc North*Suite 1100*Minneapolis, MN 55441 <br /> November 3, 1997 <br /> Mr. Paul Steinman <br /> Economic Development Authority <br /> City of Elk River <br /> 720 Dodge Avenue <br /> Elk River, MN 55330 <br /> Re: Associated Builders of the Twin Cities <br /> • Dear Mr. Steinman <br /> Our firm has been retained to assist with the potential development of the 108 acre <br /> parcel at the intersection of Highway 10 and Highway 169. On behalf of Associated <br /> Builders of the Twin Cities, Inc., we would like to request consideration by the Elk <br /> River Economic Development Authority to consider establishment of the <br /> development site as a Redevelopment Tax Increment Financing District. <br /> BACKGROUND <br /> Associated Builders gained control of the 68 acre parcel of property with the <br /> intention of developing a major commercial center. The site is particularly difficult <br /> to develop as the City will need to extend utilities to the site, there are significant <br /> wetlands which must be reconfigured and mitigated, there are numerous <br /> utility/pipeline easements which inhibit the development, and there is a sizable <br /> mobile home park which will require additional acquisition costs. <br /> After our initial assessment, we are having great difficulty in establishing the <br /> financial viability of the project, given the extraordinary costs associated for the <br /> • project's infrastructure and site development. In our recent discussions, it has also <br /> become clear that the City would encourage the development of additional industrial <br /> and/or office showroom space in the City of I`ik River. For this reason, we are <br /> (h12)550-798O*8(X)-642.6258alr(612)55(1-9221 Fax*pclstringfePcanhlink.nct <br />