April 18, 2013 Brian Cutting Director of Real Estate Walmart Stores, Inc.

2001 SE 10th Street Bentonville, AR 72716-5550 Mike Cooper Director, Planning & Building Services City of Sioux Falls 224 West Ninth St. Sioux Falls, SD 57117-7402 Darrin Smith Director of Community Development City of Sioux Falls 224 West Ninth St. Sioux Falls, SD 57117-7402

Re: Walmart Development at 85th & Minnesota, Sioux Falls I am pleased to share with you some material updates that we hope will appease some of the concerns that we have heard from neighboring homeowners. Walmart has heard many concerns, and has responded, in part, with the following proposals: Concern: Access & increased traffic Response: Working in partnership with the City of Sioux Falls and other governing agencies, we propose to move the proposed South Audie access road to the east. This will move the lighted intersection off of existing Audie, and farther away from Ms. Schwans property, and will make it more difficult for unwanted traffic to enter the neighborhood. See preliminary site plan attached. This traffic pattern has been studied by the traffic study, and we have called it out as our primary alternative. Concern: RV parking in the Walmart parking lot Response: Due to overwhelming concerns by the neighbors regarding safety and the perceived potential for increased crime, Walmart has agreed to not allow overnight guests at this Walmart. The parking lot will be signed accordingly and the store manager will enforce the standard. Concern: The architecture of the Walmart store will not match the character of the neighborhood Response: Walmarts prototypical building already includes a number of features to help break up the structure into smaller portions, helping to reduce the visual impact of a big box store. We use different textures, materials, elevations, etc The current prototype was recently updated to reflect a more modern look on the entry vestibules. We have added the following embellishments to add additional character to the proposed facility: Addition of brick to both vestibule entrances and cart storage areas Addition of brick below the Walmart brand wall. Addition of cornice to front elevation and front 1/2 of side elevations Addition of brick pilasters to front elevation, right side below Pharmacy drive-thru sign and right side of Home & Pharmacy entrance. Addition of brick columns to Garden Center fencing. Relocated wall mounted flag pole to ground mounted.

These changes (additions) to the faade, specifically the incorporation of the brick elements will certainly add tremendous character to the facility once constructed. Together with landscaping, we anticipate that this will be a great looking facility. See attached for updated elevations. Concern: Signage will not match the character of the neighborhood Response: While the zoning code permits Walmart to construct a 30 pylon sign at Audie & 85th, Walmart agrees to construct a shorter monument sign at 85th & South Audie. Shifting the access drive east (as previously discussed), the monument sign will be situated on the SE corner of the new proposed intersection; further distancing it from the residences. Renderings are included in the attached architectural package. In cooperation with the developer, Walmart proposes to construct a multi-tenant sign on Minnesota Ave (renderings also attached in the architectural package). Concern: Hours of operation Response: This will be a 24 hour Walmart, consistent with our other locations in the city. Concern: Light pollution may degrade the surrounding neighborhood Response: Walmart will install their prototypical lighting package, which consists of LED lighting throughout the parking lot. LED lighting reduces, if not eliminates light spill-over. Benefits of LED lighting includes: Sustainability significant reduction in energy usage Lights are much more focused we can aim the lights where needed, with a clean dark line where the lighting stops, reducing (and practically eliminating) light pollution LED lights are quiet no buzzing that often happens with traditional parking lot lighting. Concern: Noise from Walmart trucks Response: Walmart has a strict No-Idle policy in place. This policy is observed at all stores and distribution centers in an effort to cut back on static noise, conserve fuel, and reduce emissions. Concern: Construction traffic & safety Response: Walmart is seeking a temporary construction easement at the far southeast corner of the project, which will help to relieve the neighborhood of construction traffic and nuisances. This letter highlights some of the major changes that we have agreed to make to the development. We wish to stress that the drawings and exhibits attached are still in the preliminary phases, and that they are subject to change. Our intent, obviously, is to avoid any substantial changes from these exhibits, but we recognize that changes will be made as we get closer to the finish line. We look forward to your comments and comments from the neighborhood. Thank you

Brian Cutting

Attachments (3): 1. Preliminary site plan 2. Preliminary architectural renderings, including structure and signs 3. LED lighting documentation