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MAY 2 0 1999 <br /> r'1 <br /> AMEBIC ® <br /> MOTEL <br /> AMERICINN OF ELK RIVER <br /> Highways 10, 169, and 101 <br /> Elk River, MN 55330 <br /> Phone: (612) 441-8554 <br /> May 19, 1999 <br /> Hand Delivered <br /> City of Elk Rd-,er <br /> 13065 Orono Parkway <br /> Elk River MN 55330 <br /> Dear Sirs: <br /> We are writing this letter in reference to the planning meeting held May 18, 1999 and to express <br /> our concern the current Mississppi Scenic and Wild River boundaries and its impact on our <br /> business.We had asked the City of Elk River for a building permit to expand our facility as <br /> indicated on our original approved building plans. The City of Elk River responded by stating <br /> there was a moratorium on permits at our location due to the state Scenic and Wild Rivers Act. <br /> Since then, we have been in contact with the on a regular basis, but to no avail. <br /> Our motel facility replaced a blighted structure on the corner of Highways 10 and 101 and was <br /> partially funded through use of tax increment money offered by the city where our annual taxes <br /> are approximately $60,000.00 annually. Our reasoning for requesting expansion and <br /> beautification was to ward off other competition in the area which would greatly affect our <br /> profitability. In November, 1998, a competitor began construction of another property three <br /> miles from our door which will significantly impact our profitability. <br /> Those adjacent lots are un-salable yet taxed at commercial reates of$3,052.00 annually and have <br /> have paid these since 1992. These two lots are in a platted area approved by the City of Elk River <br /> and are located in alleged Scenic and Wild Rivers Act. We had hoped to place a suitable <br /> restaurant on this site providing profit on the property as well as a 10-15% increase in motel <br /> occupancy. <br /> This year we requested a permit to build a "portico" (a covered entrance) to enhance our <br /> entryway and beautify our property. Again, we were told by the City this was not possible due to <br /> restrictions on the property placed by DNR. Our concern is that without expansion or <br /> beautification of any of our properties, we are unable to compete or possibly survive in our <br /> market. <br /> • We are further confused by the fact that our original plans indicating future expansion were <br /> submitted to the Department of Natural Resources prior to construction for building and signage <br /> location as they addressed the river. Why wasn't something said at this time? <br /> Toll Free Reservations: 1-800-634-3444 <br />