From: Naomi's Organic Farm Supply 2500 SE Tacoma St.

Portland, OR 97202 To: Les Schwab Tires Center Real Estate Director, Dave Husk PO Box 5350 Bend, OR 97708 June 14th, 2011

Dear Mr. Husk, Thank you for your thoughtful reply letter to the thousands of our mutual customers. When you responded to our initial lease-to-purchase proposal in the fall of 2009, you stated Les Schwab could start with a short term lease, as you were not sure what the city would require for development when you were able to purchase the adjacent acre you wanted to build on, and that you planned to build on that one acre site on McLoughlin / 99E, not the site we would be on. The prospects for things working long term if we were willing to be flexible, sounded very good. When we met with Neil A. Cole and George Saddler on May 6th, 2011, they were under the impression that the remaining .5 to .97 acres would now be used for something related to tires, most likely a tire warehouse. Shortly after, customers started bringing in the new letter you wrote, which says that we're a great tenant youve been pleased to have and we are the kind of company you'd be proud to have on the remaining property, but after you develop. This has gotten everyone very excited! One of the Portland city planners was just in this week buying plants and said that all of the plans youve currently submitted, fit on that adjacent acre and there are no plans for developing the land were on. Our attorney recently asked to set up a meeting to talk about this further, but your attorney, Joel Parker, was under the impression that a meeting was not needed. We think it would be really beneficial for everyone if you could come to the site to walk around and talk about ideas with us, perhaps in coordination with meeting with SMILE, the Sellwood Moreland Improvement League. We are also willing to come to Bend if that works better for you. There are many options, of how it could work for us to remain here through construction. Here are a few ideas:

Access & Parking In the future, if it is not possible for us to use the shared gate at SE 25th St. and share parking due to your remediation and construction, we could have customers park off of SE 24th on the street in the neighborhood and walk in through that gate. Deliveries - Semis delivering product to us can stop in the street by that gate, facing east, clear of the intersection at SE 24th St., for us to quickly off load product. Our forklift is capable of driving on the old road bed in the dry season

and there is the possibility of graveling it for longer term use. It is also possible to incorporate parking on that end longer term per BDS. Entrance Initially, we can make signs to direct customers to walk to our shop at the east end. Orienting the shop fully to the western end long term could be really nice, but not something we would need to do short term. Safety We are willing to create our own fencing or collaborate with yours, so that your remediation and construction site is clearly defined and not accessible to our customers. Shop Building - If we can stay in the current building permanently or for any length of time during your remediation and permitting processes on the adjacent lot, that would be very helpful. If you do need to pursue additional parking, a lot line can be jogged around this building to preserve it and we can move gardens west. If you need the building to be removed - it may be possible to move it to the west to accommodate you. We can also move out of it entirely and work with the City of Portland to use neat portable structures to re-create our shop and warehouse in the remaining space on the west end of the property. We are also interested in dismantling the building ourselves, if needed, for future use in a way that could be mutually beneficial. We are actively pursuing other sites outside of Sellwood, including vacant lots with no structure, and while it will take creativity, we think we can re-create our essentials provided there are utilities and it would be ideal to do that here. Long term, we would like to create and provide: - Year round classroom and workshop space with an outdoor kitchen for school and non-profit use - Demonstration gardens with a small-scale demonstration orchard to provide ideas and techniques for smaller yards with the Home Orchard Society, as a tie in to their primary demonstration orchard in Clackamas County. - Greenhouses to propagate organic plants + compost, bokashi and vermicompost of local restaurants and cafes - Spaces and connections for non-profit garden and farm use, including the inside of our warehouse / barn for Grange type community events, craft fairs, farmers produce drop site and more. - A neat transition of native plants from the citys retention pond to our site, swales and rain gardens with signage ideas for homeowners, in conjunction with the Johnson Creek Watershed Council and the three Water Conservation Districts, East & West Multnomah County and Clackamas County. - Covered bicycle rack with earthen materials and plant hedgerows with fruit and flowers, bushes and trees - Install and grow green roofs on every structure we can, along with insulating and passive & active solar We would still like to work with you to purchase the portion of this property that is not part of your tire store development. That way we can fully invest in the land and the community. Thank you and we look forward to meeting with you soon. Warmly, Naomi & Neil Montacre