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May 20, 2019 <br />City of Elk River <br />13065 Orono Parkway <br />Elk River, MN 55330 <br />Attn: City Councilmembers <br />RE: Elk Ridge Lodge <br />Letter of Support <br />Dear Councilmembers, <br />I am providing this statement in regards to the preliminary action requested by CommonBond related to Elk Ridge <br />Lodge at the Elk Ridge Shopping Center. CommonBond has a purchase agreement with us for this site and is <br />proposing to develop an approximately 60 -unit, new construction multifamily apartment building. <br />We are eager to work with CommonBond on this project. I understand that the City may have concerns about <br />rezoning this site from commercial to residential, but in our opinion, the site's highest and best use is fulfilled by <br />CommonBond's proposal. We say this with great confidence, as our firm has developed properties across all <br />commercial product types in our nearly 20 years of existence. Simply put, we would not be looking to sell this <br />property if we saw a demand for a commercially -oriented use — as we would develop it ourselves. <br />We have marketed the site for 15 years for a variety of different commercial uses including junior box retail and <br />medical office, but failed to receive any feasible interest or purchase offers. We believe the market is clearly <br />indicating that a commercial use for the site is not likely any time in the near or distant future. We also believe <br />that even after the planned reconstruction of Highway 169 intersections, this will continue to be the case. This is <br />because as the site is tucked so far back from the highway, it does not have sufficient visibility to garner <br />commercial/retail interest. The remaining developable land in the shopping center, totaling approximately 3.49 <br />acres, is a far better candidate for commercial development as it is much closer to and more visible from the <br />highway and we will continue to pursue those types of users earnestly. <br />We also consider CommonBond's proposed use to be highly additive to our existing property as it will add a highly <br />visible, multi -story structure with a design consistent to the already developed parcels, providing the area greater <br />visibility and a stronger sense of place. It will help provide the live -work -play element that is so critical to <br />successful mixed-use developments. The proposed Commonbond development will also be complimentary and <br />add residents and potential customers to the site, which will make the current businesses that much more viable <br />and sustainable. Finally, we believe the development will also be accomplished in manner that improves <br />circulation within the existing drive network of the site. <br />Thank you for the opportunity to provide our feedback for your consideration. Please feel free to contact me with <br />any questions at ben@hempelcompanies.com or 612-355-2608. <br />Sincerely, <br />Ben Krsnak <br />Hempel Companies <br />