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03-29-10 Special Called Regular Meeting of the Fiscal Affairs Committee
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03-29-10 Special Called Regular Meeting of the Fiscal Affairs Committee
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City Meetings
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Fiscal Affairs Committee
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Minutes
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3/29/2010
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<br />@ <br /> <br />Charles Engelken, Jr. <br />April 12, 2010 <br />page 2 <br /> <br />Additionally, Chuck Engelken has forwarded to me, a copy of an <br />email from Kathryn Aguilar, on April 10, 2010, which contained a <br />number of questions. I will attempt to address the legal questions <br />in the email. <br /> <br />First, let me correct the statement that the $150,000.00 loan from <br />the City of La Porte Development Corporation to Bast A <br />Developments, LP, was unsecured. This loan was secured by a deed <br />of trust mortgage. This deed of trust mortgage was released by the <br />Release of Lien, referred to in the email. <br /> <br />(j) <br /> <br />As shown by the title report, this loan re-payment was made by Real <br />Property Mortgage and Investment Co./ Inc. <br /> <br />(J) <br /> <br />The Release of Lien was executed on March 12/ 2009, two weeks <br />before the closing, so that the Release of Lien could be placed in <br />escrow with stewart Title company/for the closing. The wire <br />transfer was made after the mortgage company funded the loan <br />through stewart Title Company. <br /> <br />The request for an explanation of Exhibit "C", the $150/000.00 loan <br />from the City of La Porte Development Corporation, referred to <br />above, was a purchase money loan for the purchase by East A <br />Developments, LP, from Wade Cooper. <br /> <br /> <br />In clarification of the statement that Wade Cooper was not the <br />actual seller to East A Developments, LP (Garson Silvers), please <br />see page 1 of the title report, which shows the special warranty <br />deed from East A Developments, LP, to La Porte Economic Development <br />Corporation, on October 29/ 2008. This deed had to be corrected by <br />correction deed from Wade Cooper to East A Developments, LP, on <br />March 25, 2009, at the time of the mortgage refinancing, as shown <br />on the title report. <br /> <br />The assertion that purchase of the property by East A Developments, <br />LP, on July 30, 2007, was not secured, is incorrect. Wade Cooper <br />retained a vendor's lien mortgage for $59,990.00/ as part of that <br />transaction. <br /> <br />I will defer to city staff for reply to the remaining questions by <br />Ms. Aguilar concerning City policy. <br /> <br />Please let me know if you have any further questions. <br /> <br />Yours very truly, <br /> <br />~ins <br /> <br />City Attorney <br />City of La Porte <br />
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