HomeMy WebLinkAbout2008-10-21 Applicant Ltr to OPHW.A.T.E. Enterprises, Inc.
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11255 50" T. N. LAKE EL MO, MN 55042 651-439-7973 Fax 651-439-7758
October 21, 2008
Mr. Eric Johnson
Cit of Oak Park Hei
14168 Oak Park Blvd. N. — P.O. Box 2007
Oak Park Hei MN 55082
Re: W.A.T.E. PUD Amendment — 5570 Memorial Avenue North
NAC File 798.02- 07.121 CD File 08-01.01
Dear Mr. Eric Johnson:
I received a letter dated September 8, 2008 from Julie Hultman of Plannin & Code
Enforcement. I spoke with Julie and informed her of the current situation. She recommended that
I send a letter to y ou explainin the current events re this project.
M ori plan was to be construction on Ma 1, 2008, Durin the fall of 2007, 1 put
to a sworn construction statement with all subcontractors and their pricin Durin March
and April of 2008, 1 went back to each subcontractor to check their current prices. I was
informed that the majorit of the subcontractors had price increases. These price increases were
for a variet of reasons that included the increasin cost of oil, g as and steel. M ori bud
numbers that I had in the fall of 2007 would not work with the current prices of the
subcontractors.
I also be examinin other concerns such as our compan work situation slowin down, our
profit mar down to almost zero, our costs sk and the doublin or triplin prices of
g as, oil and steel. Our compan has also been affected b the current bank financin costs, the
rise of rates and the worsenin econom I have also taken into consideration the movin of three
existin tenants. These tenants, who have been rentin for over five y ears, have decided to move
their business home to help them reduce costs and sta in business.
After thinkin about and discussin the above concerns, I have decided to consider downsizin
the warehouse b 100' x 134' in order to overcome the risin costs. M plan is to build a smaller
buildin with the intentions that when the econom stren and our work situation improves
that I will then complete a 100' x 134' addition.
With these chan in mind, I plan on re-pricin the construction costs with new and updated
prices from all subcontractors. M plan is to be construction in the Sprin of 2009. At the
current moment, these plans still hin on the econom our work situation and bank financin
I have enclosed a cop of the buildin with the above warehouse chan Please review the
plan and let me know if it is possible to have an extension for this project or if I need to submit a
revised Planned Unit Development for these chan
Sincerely,
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