09-20 and 09-21-10 Special Called Regular Meeting of Fiscal Affairs Committee

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CITY OF LA PORTE, TEXAS Agreed Upon Procedures - Five Points Town Center Project (Continued) September 21, 2010 On March 26, 2009, East A obtained another mortgage on the Alamo property and 109 and III San Jacinto properties in the amount of $157,000. It appears that the funds received were used to repay the EDC's $150,000 loan. However, as noted above, we were unable to determine where the funds the EDC received to payoff the note originated. This mortgage was obtained through Real Property Mortgage and Investment Co., Inc. The Deed of Trust and Security Agreement for this can be seen at Exhibit 41, page 28. Also on March 26,2009, Real Property Mortgage and Investment Co. assigned a 52.229 percent interest in the property to Gagle Investment Company. This is evidenced by the Transfer of Note in Exhibit 41, page 34. On July 1, 2009, the EDC filed a lien of $28,916 on the property between the Triangle and Alamo property for East A's portion of the cost of removal of fuel tanks and soil remediation. Staff explained to us that these tanks were leaking into the Triangle property which had the potential to interfere with the Project. A copy of this lien can be found in Exhibit 41, page 16. This lien is considered second in order of lien priority as verified by the City Attorney. On October 10, 2009, another lien was filed on the property between the Triangle and Alamo properties by Halligan's Foam Coatings of Houston for work done on another property owned by East A located at 153 S. Broadway, La Porte, in the amount of $4,300. This lien can be found in Exhibit 41, page 36. As of the date the title reports were run (March 24, 2010), East A still owned the property at 109 San Jacinto. At a minimum, there were three claims against the property including the mortgage held by Real Property Mortgage Inc., the lien held by La Porte's EDC for the removal of fuel tanks, and the lien held by a vendor for work done to property owned by East A. Research the appraised value of 109, 111. and 117 San Jacinto Street On September 21, 2010, the property at 111 San Jacinto Street is listed with the Harris County Appraisal District as having an improvement market value of $33,629 as of January 1, 2010. The record of owner listed with the Harris County Appraisal District for the improvement property at 111 San Jacinto Street is Wade Cooper. The property at 109 San Jacinto Street is listed with the Harris County Appraisal District as having a land market value of $7,375 and an improvement market value of $17,749 for a total value of $25,124. The property at 117 San Jacinto Street is listed with the Harris County Appraisal District as having a land market value of $8,230 and an improvement market value of $89,506 for a total of $97,736. 23