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DocuSign Envelope ID: 9465913E-30E2-48B0-B18B-2E9679B2929B 0 P E R T I E S Zachary Carlton Planning Mananger City of Elk River 13065 Grano Parkway, Elk River, MN 55330 Good morning Zachery: Thank you again for sending the background information and meeting minutes regarding park dedication fees and in particular, how they relate to the prospective Saxon Redevelopment project. We have since had the opportunity to review the study completed by Hosington Koegler Group and the various minutes from the meetings that have since taken place on the topic of Park Dedication. This is in addition to the internal research that we completed over the last couple of months as to the cost of construction, market demand, and ultimately the overall economic feasibility of the project. Although we are accustomed to the complexities involved with projects of this magnitude we have to admit that this project represents a first for us in terms of the background and effort that has taken place prior to us joining the process. From the outset we would like to thank everyone involved and for everyone to know that we sincerely appreciate their efforts to this point. As for the economic feasibility research much of our time has been spent evaluating the financial analysis completed by Patrick Briggs involving the total cost of construction of the redevelopment, market demand, and the corresponding proformas that he has created. We commend Mr. Briggs for the detail and comprehensive approach with which he evaluated the economic viability of the redevelopment and we agree with his conclusions. That is, In order for the Saxon Redevelopment project to be economically viable consideration needs to be given to the overall cost of the park dedication fees given the size and density of the proposed project. In short, the financial numbers have to work in order for the project to be sustainable and, as the developer, for us to meet our financial obligations to the City of Elk River as well as others. The alternative is that the project ends up being put on hold, as has been the case in the past, with the subject property. That being said, we fully understand how important a vibrant park system is to a City such as Elk River and our obligation, as well as our desire, to contribute to the cost associated with maintaining the current parks and providing for new parks as the city continues to grow. We look forward to continuing the discussion at the meeting next Tuesday as to how we can work together to find a mutually agreeable solution to the long needed redevelopment of the Saxon Site. tfmlllyl, b1'( J '►t`/1�r�?�B'�lj�lz Stonewood Developement