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HomeMy WebLinkAbout04-16-12 Meeting of the La Porte Development Corporation Board of DirectorsRICHARD WARREN, PRESIDENT VACANT JOHN ZEMANEK, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBER MIKE CLAUSEN, BOARD MEMBER RANDY WOODARD, BOARD MEMBER NANCY OJEDA, BOARD MEMBER CITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDA Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on April 16, 2012, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:00 p.m. to consider the following items of business: 1. Call to order 2. Executive Session — The La Porte Development Corporation reserves the right to meet in executive session on any agenda item should the need arise and if authorized by the Texas Open Meetings Act, Title 5, Chapter 551, of the Texas Government Code, including, but not limited to, the following: Texas Government Code, Section 551.087(1) and (2) — Deliberation regarding economic development negotiations: Discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect or the offer of a financial or other incentive to a business prospect that the governmental body seeks to have locate, stay or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations. 3. Reconvene into regular session and consider action, if any, on items discussed in executive session. 4. Discussion or other action to consider response to a request for economic development incentives for a proposed development in the Battleground Industrial District. 5. Adjourn In compliance with the Americans with Disabilities Act, the City of La Porte City will provide for reasonable accommodations for persons attending public meetings. To better serve attendees, requests should be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. CERTIFICATION I certify that a copy of the April 16, 2012, agenda of items to be considered by the Board of the La Porte Development Corporation was posted on the City Hall bulletin Board on April 12, 2012. Patrice Fogarty, Citifsecfftary Page 1 of 1 April 16, 2012, La Porte Development Corporation Agenda askins & askins P.c. ATTORNEYS and COUNSELORS Knox W. Askins Clark T. Askins April 3, 2012 Board of Directors City of La Porte Development Corporation City Hall La Porte, Texas Dear Board Members: At its February 13, 2012, meeting, the City of La Porte Development Corporation Board authorized our office to initiate legal proceedings against East A Developments, LP, and/or Garson Silvers, individually, for the collection of all amounts due to the City of La Porte Development Corporation. On February 21, 2012, our office sent notices to Garson Silvers, individually and as Registered Agent for East A Developments, LP; and to Benjamin Miller, attorney for Garson Silvers and East A Developments, LP, advising of a foreclosure sale on April 3, 2012, of the property described as all of Lots 6, 7, and 8, and the north 18' of Lot 9, in Block 198, Town of La Porte, Harris County, Texas, which property secures a second lien mortgage from East A Developments, LP, to the City of La Porte Development Corporation, to secure a promissory note with a balance of $35,153.76. While the foreclosure sale was pending, I had a telephone conference with Benjamin Miller, attorney for East A Developments, LP, who confirmed that his client would not contest the foreclosure sale. He gave me the name and telephone number of Ronald Piperi, President of the first lienholder, Real Property Mortgage & Investment Co., Inc. I contacted Mr. Piperi, who advised me that Real Property Mortgage & Investment Co., Inc., holds first liens on all of the property owned by East A Developments, LP, including the Alamo Building. He confirmed that Garson Silvers had abandoned the project, and the intention of the first lienholder to foreclose its liens, and take over the development of the property. I have attached to this letter, a letter which I received from Mr. Piperi, as to the intentions of Real Property Mortgage & Investment Co., Inc. He confirmed that the first lienholder had posted for foreclosure of its liens, on April 3, 2012. As I explained to the Board at its January meeting, the foreclosure of the first lien, cancels the second lien. Real Property Mortgage 702 W. Fairmont Parkway, P.O. Box 1218, La Porte, TX 77572-1218 281.471.1887 phone • 281.471.2047 fax • knoxaskins@comcast.net • ctaskins@swbeA.net Development Corporation April 3, 2012 page 2 & Investment Co., Inc., recognizes that it must pay all of the delinquent taxes on the property, and secure the dismissal of the pending delinquent tax suit, or it will lose the property. The property is now owned by Real Property Mortgage & Investment Co., Inc. Mr. Piperi indicated that his firm plans to take steps to complete the construction of the property, so that it may be offered for sale. Please let me know if you have any questions. Yours very truly, �I Knox W. Askins City Attorney City of La Porte KWA:sw Enclosure Real Property Mortgage & Investment Company, Inc. 1502 Augusta Suite 100 Houston, Texas 77057 Telephone: 713.882.7171 March 20, 2012 Mr. Knox Askins Askins & Askins P.C. La Porte, Texas RE: Our Conversation Yesterday Dear Mr. Askins: Facsimile: 713.470.2107 Via Email: knoxaskins(a,comcast.net In reference to our conversation Monday, I would like to restate our desire to work with the City of La Porte to recapture the original vision of Five Points. As you know we are the first lien holders on the properties that adjoin the park by virtue of our loan to East A Development, LLC (aka Garson Silvers), and that these loans have been in default for an extended period of time, the property is in disrepair and the real property taxes are overdue. It is our intent to foreclose upon our liens and take possession of the underlying assets — but in our opinion this is where our relationship with the City of La Porte begins, not ends, as we move forward to secure these properties by paying the past due RE taxes and making these assets ready to sale. It is our intent to market these properties as a single unit and to garner an end sales price that would allow us to recapture our investment, the expenses and a portion of our past dues which we envision would still allow us to allocate some of the sales proceeds to acquire the promissory note held by the City for monies advanced to East A Development secured by a junior lien position by these same [or some of these same) properties. We are currently working with an agent for the sales listing in preparation of the upcoming foreclosure date in April, and based upon our preliminary conversation and research that we have performed we feel that our goal is achievable. Please feel free to share this letter with the City of La Porte or any other interested party, and I will keep you advised as to our progress, since it is my intent to develop our relationship and be a good corporate citizen of the La Porte community. Thank you. Sincerely, Ronald Drew Piperi President This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) FY 2011-12 FY 2010-11 Unaudited Beginning Fund Balance 9/30 Plus Year to Date Revenues: 1/2 Cent Sales Tax Interest Income Total Revenues Equals Total Resources Less Year to Date Expenditures: Payroll Supplies Services & Charges (Memberships, Training, Advertising, Legal, Utilities) Debt Service Transfer " Capital Projects Transfers Total Expenditures Estimated Year to Date Fund Balance 2,125,224 1,639,258 609,096 520,080 1,340 1,889 610,436 521,969 2,735,660 2,161,227 25,718 35,557 1,906 787 50,304 54,412 330,169 311,346 485,000 177,500 893,096 579,603 $ 1,842,563 $ 1,581,624 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. * *Capital Project Transfers are for the Lomax Rodeo Arena Improvements, Dog Park, Playground Renovations, Golf Course Bathrooms and the remaining 50% of the bulkhead funding.