From: Alice Cannon

Sent: Mon Nov 25 13:59:54 2019

To: Dan Huff; Gerald Fisher

Subject: FW: Following up from Wednesday's meeting re: 535 W. Main

Importance: Normal

fyi

From: Spencer Parsons <spencer@gov-law.com>

Sent: Monday, November 25, 2019 12:47 PM

To: Alice Cannon <acannon@cityofmolalla.com>

Cc: Kristen Ketchel-Bain <kristen@gov-law.com>

Subject: FW: Following up from Wednesday's meeting re: 535 W. Main

Also FYI.

Spencer Q. Parsons

Beery Elsner & Hammond, LLP

1750 SW Harbor Way, Suite 380

Portland, OR 97201

t (503) 226 7191 | d (503) 802 0014

www.gov-law.com

P Please consider the environment before printing this email.

Caution! This communication may contain a privileged attorney-client communication or attorney work product. Please do not distribute, forward or retransmit without prior approval. If you have received this e-mail by mistake, please notify me by reply e-mail and delete all copies.

From: Wendie Kellington [mailto:wk@klgpc.com]

Sent: Monday, November 25, 2019 12:20 PM

To: Spencer Parsons

Cc: Bill Avison

Subject: FW: Following up from Wednesday's meeting re: 535 W. Main

Hi Spencer,

Below is the email Avison and Scandia received from the city on Friday Nov 22 (note that the emphases are in original). There is no fabrication or manufacturing; rather at times belt is cut and fasteners are put on the cut bits (by hand) so that the belt can be put back together when delivered. Like carpet sales. Per our discussion, neither Scandia nor Avison are in a position to stop the trucks moving the contracted for inventory to the site or to fire employees who are working in the permitted use - that is without the matter devolving into litigation, which no one wants. Accordingly, inventory and operations will continue unless we receive some formal city enforcement order demanding otherwise. Rather, I presume that we can work cooperatively along the lines in my letter forwarded to you a moment ago. I really don’t see that any city process is warranted, but please let me know if you feel otherwise. All parties on our end seek to be cooperative. Thank you. Best, Wendie

From: Alice Cannon <acannon@cityofmolalla.com>

Subject: Following up from Wednesday's meeting re: 535 W. Main

Date: November 22, 2019 at 10:25:15 AM PST

To: "mrogers@iclamaerica1.com" <mrogers@iclamaerica1.com>, "bill@avison.com" <bill@avison.com>

Cc: Dan Huff <dhuff@cityofmolalla.com>, Gerald Fisher <gfisher@cityofmolalla.com>

Michael and Bill:

It was nice meeting you at Wednesday’s meeting. I am following up now to outline some next steps. We are pleased you are interested in locating your business in Molalla. As we discussed yesterday, this site contains several areas of nonconformity, many of which were never legally established by the City of Molalla. For this reason, I send this email with a sense of urgency, especially given that the City continues to see employees moving inventory into side of the warehouse your business proposes to occupy. Prior to continuing further movement of inventory or any operations on the site:

1. 1. The City needs to make a final determination as to whether your proposed use is permitted in the M-2 (Heavy Industrial) zone. As I discussed yesterday, your proposed operations do not appear to immediately match the uses outlined in our code. My understanding of your business is that it contains two parts. One is the warehousing and distribution of inventory. The second part of your business involves some fabrication or manufacturing to customize the conveyor belt materials and inventory to meet the needs of your clients. It is the second part of the business where I am uncertain as to where the use fits into our development code, I will need to better understand your proposed operations to make a determination as to how the use fits into Molalla’s development code and the M-2 zone.

2. 2. Permits will be needed from the City and Clackamas County in order to legally establish your business. Your company will need to go through a pre-application process with our staff. This is a more formal process than what we initially discussed yesterday. City staff can learn more about your proposal and outline the steps your company will need to take to legally establish your business to operate within the City of Molalla.

We look forward to hearing from you soon. In the meantime, please cease business operations on the site until your company can get through these steps. I am happy to talk by phone or in person again, if you have further questions.

Sincerely,

Alice Cannon