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June 6, 2008 VAIL LAW OFFICE 4842 Stewart Avenue White Bear Lake, MN 55110 (651) 276 -6772 - RECEIVED v n n 100 Mr. Willie Gibbs, SSTS Program Manager City of Orono P.O. Box 66 Crystal Bay, MN 55323-0066 Re: 265 Old Crystal Bay Road No. Orono, MN; Lynn Schwie v. Armco Unlimited, Inc.,et al, (Henn Co. Court File No. 27 -CV -08-8604); 6/3/08 letter from City of Orono re Schwie's failure to report Septic System Maintenance since January 1, 2004 & Delinquent water/sewer/Septic fees payable to the City of Orono Dear Mr. Gibbs, This letter will confirm our telephone conversation today regarding the above matters. As I explained, I am the attorney for Armco Unlimited, Inc. ("Armco") as the holder of a Sheriff's Certificate of Sale to the property at 265 Old Crystal Bay Road North in Orono. Lynn Schwie has occupied the property for several years under an unrecorded contract for deed with Eric Mitchell who purchased the property under a warranty deed dated May 30, 2002 and recorded with the Hennepin County Recorder shortly thereafter. Lynn Schwie has filed a complaint for a quiet title action to determine the validity of her claim of ownership of the property. You can review the pleading on file with the Court at the Hennepin County Government Center under file no. 27 -CV -08-8604 if you need more information. As I also explained, Lynn Schwie has failed to pay property taxes for the years 2005, 2006, 2007 and the approximately $4000 due on 5/15/08 which probably includes the City of Orono's assessment for unpaid water/sewer/septic fees. Enclosed is a copy of my 6/6/08 letter to Ms. Schwie's lawyer forwarding your notices. You may contact Ms. Schwie's lawyer by phone at (612) 767-1846 for more information regarding the status of the septic system on the property and payment of unpaid fees. Sincerely, Garrett Murphy ai