HomeMy WebLinkAbout03-08-10 Special Called Regular Meeting of the Fiscal Affairs Committee minutes
MINUTES OF THE SPECIAL CALLED REGULAR MEETING OF THE FISCAL AFFAIRS COMMITTEE
March 8, 2010
1. Call to Order
The meeting was called to order by Chairman Chuck Engelken at 5:03 p.m.
Members of Committee Present: Board Members Chuck Engelken, Louis Rigby, Tommy
Moser and Daryl Leonard
Members of Committee Absent: None
Members of City Council. City Executive Staff and City Employees Present: City Manager
Ron Bottoms, Assistant City Manager John Joerns, Director of Finance Michael Dolby,
Controller Phyllis Rinehart, and City Secretary Martha Gillett
Others present: Kathryn Aguilar, Ted Powell, Phillip Hoot and Paula Lowe of Pattillo, Brown
& Hill, L.L.P.
2. Consider approval of Minutes of the Special Called Regular Meeting of Fiscal Affairs
Committee held February 8, 2010.
Motion was made by Committee Member Rigby to approve the minutes as presented. A
second by Committee Member Moser. The motion carried.
Ayes: Engelken, Rigby, Leonard and Moser
Nays: None
Abstain: None
Absent: None
3. Receive Report on 2009 Comprehensive Financial Report
Finance Director Michael Dolby introduced Paul Lowe of Pattillo, Brown & Hill, and L.L.P who
provided a report on the 2009 Comprehensive Financial Report. Chairman Engelken had
questions regarding water and sewer lines. Staff will research and report back.
4. Administrative Reports
5. Committee Comments
Matters appearing on agenda
A. Recognition of community members, city employee, and upcoming events
B. Inquiry of staff regarding specific factual information or existing policy
Fiscal Affairs Committee - Special Called Regular Meeting - March 8, 2010
2
There were Committee comments from Engelken, Moser, Leonard and Rigby.
6. Adjournment
There being no further business to come before the committee, the meeting was adjourned at
5:25 p.m.
Respectfully submitted,
Martha Gillett, TRMC, CMC
C~~
Approved this day of 2010.
2:~E~irmt
March 16, 2010
Re: Katherine Aguilar inquiry
Chairman Engelken:
Thank you for allowing staff the opportunity to respond to issues raised by Ms. Aguilar.
Most of the documentation that I reviewed dealt more with policy decisions than actual
assertions or concerns. The following are our responses to the fact issues and
inaccuracies that Ms. Aguilar raises:
· The real "smoking gun" fraud assertion has to do with the wire transfer when
Garson paid offhis $150,000 loan to the City. Knox handled this transaction and
he's addressed this issue in detail. Attachment 1
· Another question has to do with a d.gqllffient that Ms. Aguilar received as part of
her open records request that showsajournal entry moving $153,424.56 from the
Sports Complex project to the Main Street (Plaza)pfgject. This money, that was
used to purchase the triangle property on October 29,2008, was inadvertently
charged to the Sports Complex project (GEN 975) instead of the Plaza project
(GEN 976). The recording mistake was identified in January 2009 and a
correction was made - see Michael's explanation. Attachment 2
· Regarding the ClPPI'Clisal of the triangle property: ThetrillJ1gle property and the
Texas Park&a11dWildlife property were appraised at the same time. We hired
The BilicekCompany to perform the appraisal with the understanding that they
are a federally i (ipproved. property appraisal company and that they were
recommendedby.JexasParks and Wildlife. The actual appraisal methodology is
clearly explained in the appraisal document and is pretty straightforward. Ms.
Aguilar filed a complaint with the Texas Appraiser Licensing and Certification
Board in April 2009 on Mr. Bilicek based on similar "facts" that she's stating in
this document. The compl(iillt against Mr. Bilicek was dismissed in July 2009.
Attachment 3
· The La Porte Development COr]Joration purchased the triangle property for
$150,000 (.33 acres). We were able to parlay this .33 acre acquisition into a 1.35
acre park. Attachment 4
· Another question that I understand is being circulated by Ms. Aguilar, concerns
the fact that the La Porte Development COI'poration paid $311.92 in property
taxes on the triangle property: Under the terms of the purchase agreement for this
property, which closed in 2008, the Development COI'poration agreed to pay 2008
taxes for the entire year. The City Attorney's office has since sent a letter to the
Harris County Appraisal District to place the property in tax exempt status.
Attachment 5
· Contrary to what Ms. Aguilar states in her documentation, I did not hire Gretchen
Larson. She was here when I arrived in October 2007.
· Garson purchased the triangle property and Alamo building in August 2007. The
"vision" for 5-pts did not materialize until after I arrived in October 2007. Garson
couldn't have known about the City's vision when he purchased the property
since it didn't exist at that time.
. Regarding the tank removal on the triangle property: originally we thought the
tanks were filled with water and could be left in place, but subsequent evaluations
proved otherwise. The estimate that we received was based on no soil
remediation - however, once the tanks were uncovered it was discovered that they
had been leaking, which required quite a bit of soil remediation. This
substantially increased the cost, but eliminated an environmental hazard.
. The City does have a lien note on Garson's property between the Alamo building
and the Texas Parks and Wildlife building for $28,916 (the cost of removing the
tanks that were discovered on his property that were impacting the Town Plaza
development). In addition, there is a lien for $19,000 on the property behind the
Alamo building for the costs associated with demolishing the old apartment
building.
· Regarding the Alamo lease: the La Porte Development Corporation has yet to
pay any lease amounts since the building is still not ready for occupancy and will
probably exercise their option to sublease the building, substantially reducing, or
eliminating, the lease costs over time.
· Originally we had anticipc;lt~d putting the Sylvan Beach Art League in the Alamo
building. In return, the artlle~glle agreed to paint murals downtown and to
provide some public art instl1lctiol1..In the meantime, the Art League has
diminished in size and no long~r needs:tl:1~. building. Consequently we are
working on several new uses forithe propertY,Jo include subleasing the building.
· There were documents that have Lp(::(::n 'Yitliheldtr()Il1 Ms. Aguilar as part of her
open records request, not by staff,Plltbyithe City Attorney' s office, because some
of the documents had personal infol1llation on them. Clark pulled the documents
and sent them to the Attorney General's office to make sure that there aren't any
releasing them.
Please let me
need any additional information.
Concerns prompting a detailed forensic outside audit to answer the following
questions:
The Wire transfer of $150,000 for Garson Silvers unsecured loan repayment + ~ $3500 in interest
repayment was made in 4/09. The questions associated with this are:
. Who actually made this loan repayment and where is the documentation?
. Did the same sum, i.e. $150,000 plus ~$3500 flow back out of the City accounts to an
outside entity and if so, where and who received this money?
. Did Garson Silvers actually fulfill his contractual obligations concerning use of this
unsecured loan of $150,000 for the purpose of purchasing properties associated with
the Town Square Project.
. Where is the documentation associated with a loan repayment?
The ORR concerning all expenses associated with the Town Plaza project excluded a number of
documents due to private information being included. These documents need to be thoroughly
reviewed. It appears that this documentation includes charges associated with time, materials and
meals for URS employees associated with contracted work for design of the Town Plaza.
Determine current status relative to ownership, liens to secure any city funds used to remediate buried
tanks, demolish buildings, etc. on all private properties associated with the Town Plaza Project, including
the now demolished boarding house on Virginia street need to be determined. This includes the Alamo
Bldg, metal building adjoining and other adjacent properties.
The Lease agreement for the Alamo bldg needs to be reviewed for validity and hopefully cancelled due
to non compliance of the owner (Garson Silvers) with the conditions of the lease.
City Employees and elected officials should all be following the Code of Ethics adopted by the City of La
Porte. This code of Ethics prohibits these individuals from receiving benefits beyond their salary from
their employment with the City of La Porte. This would suggest that the leasing of a building by the
taxpayers of La Porte to house an Art League selling their art would violate this Code of Ethics. Also,
selling art inside the City Hall building by a city of La Porte employee should not be permitted unless this
venue is open to all vendors. In addition, using a Publishing Company for non- bid City contracts with
ownership related to City Employees should not be permitted.
All employees and elected officials should be trained concerning this Code of Ethics and any violations
should be dealt with according to established practice. Also, all potential conflicts of interests MUST
be reported by all elected and salaried employees.
Any communication or documents or interviews necessary to explain the relationship of former City of
La Porte employee relative to Garson Silvers as to why she appeared to be working for the primary
benefit of Garson Silvers and to the detriment of the taxpayers of La Porte with regard to sums of
money paid for the triangle property and matters associated with the purchase of this property by the
City of La Porte and the use of her time for furtherance of financial benefit to Garson Silvers rather than
the taxpayers of La Porte.
Question Debbie Westbeld, former City employee concerning Town Plaza project and payments made
by the City of La Porte regarding this project.
How was the appraiser of the Triangle property chosen and why pending sales camps were used while
actual sales camps were excluded that resulted in an appraised price over 2x market. However, for
reasons only explained by city officials that 'this is what G. Silvers wanted', the city actually pays over 6
times market price ($150,000).
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.---------
askins
& aSkirlS P.C.
ATTORNEYS and COUNSELORS
Knox W. Askins
Clark T. Askins
March 11, 2010
REC... r."'w~,"I' M'If- r"
. iII""'.~"~1I .'..
!!.om. W ~....J
Mr. Ron Bottoms
City Manager
City of La Porte
City Hall
La Porte, Texas
I.L~R 1 5 2010
CITY M,l1.NAGER'S
OFFICE
Dear Ron:
You have requested my assistance in responding to citizen questions
on transactions between the La Porte Economic Development
Corporation, and La Porte 5 Points Properties, LP, and East A
Developments, LP, of which Garson Silvers is the manager.
On October 29, 2008, Stewart Title Company in Houston closed the
purchase by the La Porte Economic Development Corporation, of all
of Block 199, Town of La Porte, Harris County, Texas, for a
consideration of $150,000.00. In addition, on the same date,
Stewart Title Company closed a $150,000.00 loan from the La Porte
Economic Development Corporation to East A Development, LP.
A copy of the $150,000.00 promissory note, is attached to this
letter as Exhibit "A".
A copy of the Deed of Trust mortgage from East A Development, LP,
to the La Porte Economic Development Corporation, is attached as
Exhibit "B".
East A Development, LP, used the proceeds of the $150,000.00 loan
from La Porte Economic Development Corporation, to purchase from
Wade Cooper, the North 17' of Lot 9, and all of Lots 8, 7 and 6, in
Block 198, Town of La Porte, Harris County, Texas. A copy of the
Stewart Title Company closing statement, and a copy of the General
Warranty Deed With Vendor's Lien from Wade Cooper to East A
Development, LP, acknowledging the $150,000.00 note payable to La
Porte Economic Development Corporation are attached as Exhibit "C".
Attached to this letter as Exhibit "D", is my escrow instruction
letter of March 12, 2009, to Stewart Title Company, which placed
the La Porte Economic Development Corporation's Release of Lien in
escrow, for a refinance closing. Also attached were wiring
instructions to the La Porte General Operating Account, for
remittance of the funds after closing. This loan repaYment was
made by East A Development, LP.
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@swbell.net
Ron Bottoms
March 11, 2010
page 2
Please let me know if I may be of further assistance.
Yours very truly,
~.
Knox W. Ask1.ns
City Attorney
City of La Porte
KWA: sw
Enclosures
PROMISSORY NOTE
This Promissory Note (this "Note") is made by East A Developments, L.P., as
maker, under the terms and conditions as follows:
Article I
DEFINITIONS
For purposes of this Note, the following defined terms shall have the meanings
set forth in this Article I:
1.1 "Borrower" means East A Developments, L.P., a Texas limited partnership.
1.2 "Borrower's Mailing Address" means 1001 Usener, Houston, Harris County,
Texas 77007.
1.3 "Lender" means La Porte Economic Development Corporation, a Texas non-profit
corporation.
1.4 "Place for Payment" means 604 W. Fairmont Parkway, La Porte, Texas 77571.
1.5 "Principal Amount" means One Hundred Fifty Thousand Dollars and No Cents
($150,000.00).
1.6 "Annual Interest Rate" means Five Percent (5.00%) per year.
1. 7 "Maturity Date" means the first day of the month following six (6) months after
the Effective Date.
1.8 "PSA" means that certain Purchase and Sale Agreement by and between Lender
and Borrower. The PSA is hereby incorporated by reference.
1.9 "Effective Date" means Octobe~08
Article II
TERMS OF PAYMENT
2.1 Borrower promises to pay to the order of Lender-the Principal Amount plus
interest, compounding annually, at the Annual Interest Rate, the same being due and
payable in equal monthly installments of Six Hundred Twenty-Five Dollars and
No Cents ($625.00), on the first day of each month, beginning the first day of the
calendar month after the Effective Date, and continuing until the Maturity Date, when
the entire amount of remaining principal and accrued, unpaid interest will be payable
in full.
EXHIBIT
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Page -1-
2.2 Payments will be applied first to accrued interest and the remainder to
reduction of the Principal Amount.
2.3 This Note is payable at the Place for Payment.
2.4 All unpaid amounts are due by the Maturity Date, at which time they will reach
maturity. Mter maturity, Borrower promises to pay any unpaid principal balance plus
interest at the Annual Interest Rate.
2.5 Borrower may prepay this Note in any amount at any time before the Maturity
Date without penalty or premium.
2.6 This Note is secured by a deed of trust of even date herewith from Borrower to
Knox Askins, trustee, (the "Deed of Trust") which covers the following real property
(such real property being the "Collateral Security"):
All of Lots 6, 7, 8, 9, 10, and the West fifty-six and four tenths (56.4) feet
of Lots 11,12 and 13, in Block One Hundred Ninety-Eight (198) of TOWN
OF LA PORTE, an addition in Harris County, Texas, according to the
map or plat thereof recorded in Volume 8, Page 16 of the Map Records of
Harris County, Texas.
2.7 If Lender is obligated to indemnify Borrower under the terms of the PSA or if
Lender defaults on the PSA, Borrower may elect to apply the amounts owed under the
PSA to the outstanding, unpaid principal and accrued, unpaid interest, and such sums
will be reduced by that amount.
Article III
DEFAULT
3.1 An "Event of Default' exists under this Note if:
3.1.1 Borrower fails to timely payor perform any obligation or covenant in this
Note;
3.1.2 any warranty, covenant, or representation in this Note is materially false
when made;
3.1.3 a receiver is appointed for Borrower or the Collateral Security;
3.1.4 any Collateral Security is assigned for the benefit of creditors;
3.1.5 a bankruptcy or insolvency proceeding is commenced by Borrower and
continues for at least sixty (60) days; or
3.1.6 Borrower is dissolved, begins to wind up its affairs, or is authorized to
dissolve or wind up its affairs by its governing body or persons.
3.2 If an Event of Default exists under this Note or the Deed of Trust, Lender may
declare the unpaid principal balance, earned interest, and any other amounts owed on
the Note immediately due.
Page -2-
3.3 If an Event of Default exists under this Note, before exercising any of Lender's
remedies under this Note or the Deed of Trust, Lender shall first give Borrower written
notice of default at Borrower's Mailing Address and Borrower will have ten (10) days
after such notice is received to cure the default. In the event that this Section 3.3
conflicts with any other provision in this Note, this Section 3.3 will control.
Article IV
MISCELLANEOUS
4.1 Interest on the debt evidenced by this Note will not exceed the maximum rate
or amount of non usurious interest that may be contracted for, taken, reserved, charged,
or received under law. Any interest in excess ofthat maximum amount will be credited
on the Principal Amount or, if the Principal Amount has been paid, refunded. On any
acceleration or required or permitted prepayment, any excess interest will be canceled
automatically as of the acceleration or prepayment or, ifthe excess interest has already
been paid, credited on the Principal Amount or, if the Principal Amount has been paid,
refunded. This provision overrides any conflicting provisions in this Note and all other
instruments concerning the debt.
4.2 Whenever a period of time in this Note is prescribed for action to be taken by
Borrower, Borrower will be liable or responsible for, and there will be excluded from
the computation of any corresponding deadline, any delays due to strikes, riots, acts
of God, shortages of labor or materials, war, government laws, regulations or
restrictions or any other causes of any kind whatsoever which are beyond the
reasonable control of Borrower.
4.3 The section and paragraph headings, titles and captions used in this Note are
for convenience only and do not limit or amplify the provisions hereof.
4.4 Lender and Borrower each acknowledge that he has participated in the drafting
of this Note, that this Note will not be construed against either party because it was
the drafter, and that any rule of construction requiring that any provision of this Note
be construed against a particular party because of that party's status as the drafter of
the provision will be not be applicable to this Note.
4.5 When the context requires, singular nouns and pronouns include the plural.
4.6 This note will be construed under the laws of the State of Texas, without regard
to choice-of-law rules of any jurisdiction. To the maximum extent permitted by law,
venue for all purposes will be the Harris County, Texas.
Page -3-
EXECUTED AND EFFECTIVE AS OF THE EFFECTIVE DATE.
EAST A DEVELOPMENTS, L,P.
By: GSDB Management, L.L.C.,
its General Partner
By:
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Garson Silvers,
Manager
Page -4-
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20080542456
10/31/2008<, RP3" $.36.00
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL
PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE
FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS
AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN
THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR
DRIVER'S LICENSE NUMBER.
DEED OF TRUST
THE STATE OF TEXAS ~
~ Know All Men By These Presents:
COUNTY OF HARRIS ~ tJv!~
THAT, this Deed of Trust ("Deed of Trust") is effective as of...se1Jtember 2
2008 (the "Effective Date"), from EAST A DEVELOPMENTS, L.P., a Texas limited ,A)
partnership (the "Grantor", whether one or more), to KNOX ASKINS, TRUSTEE (the ~,. A' ~
"Trustee"), for the benefit of the La Porte Economic Development Corporation, a Texas ~
non-profit corporation (the "Beneficiary"); and
WHEREAS, Grantor has executed and delivered to Beneficiary that certain Note
(as defined below) in conjunction with the execution of that certain Purchase and Sale
Agreement by and between La Porte 5 Points Properties, L.P., Grantor and
Beneficiary, dated October:fL, 2008 (the "PSA");
WHEREAS, Grantor and Beneficiary desire to secure payment ofthat Note with
the Property described below;
NOW, THEREFORE, in consideration of the sum of $10.00, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Grantor has GRANTED, SOLD and CONVEYED, and by these presents does GRANT,
SELL and CONVEY in trust unto Trustee, and his substitutes or successors, all of the
following described property (the "Property") situated in Harris County, Texas:
All of Lots 6,7,8,9, 10, and the West fifty-six and four tenths (56.4) feet
of Lots 11, 12 and 13, in Block One Hundred Ninety-Eight (198) of TOWN
OF LA PORTE, an addition in Harris County, Texas, according to the
map or plat thereof recorded in Volume 8, Page 16 of the Map Records of
Harris County, Texas.
p
TO HAVE AND TO HOLD the Property in trust unto Trustee, his successors in
this trust and his assigns, forever, and Grantor does hereby bind Grantor, his
respective heirs, legal representatives, successors and assigns, to warrant and defend
the Property to Trustee, his successors and assigns, forever, against the claim or
claims, of all persons whomsoever claiming or to claim the same or any part thereof,
.... through or under Grantor, but not otherwise, subject to the follQ}Ying excepti<2lli':
EXHIBIT CFt: CJ //oJ7S )-
!l Page 1 21-A/RICHARD CROW
i 'B STEWART TITLE COMPANY
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(i) any and all liens, encumbrances, reservations, restrictions, covenants, easements,
rights of way, mineral interests and other matters, if any, of record in the County
Clerk's Office of Harris County, Texas; (ii) all zoning, ordinances, regulations,
restrictions, and other limitations imposed by any municipality with jurisdiction over
the Property; and (iii) all matters which a survey and a physical inspection of the
Property would reveal. If Grantor performs all the covenants and pays the Note
according to its terms, this Deed of Trust shall have no further effect, and Beneficiary
shall promptly release it~
Article I
CONVEYANCE IN TRUST; PROMISSORY NOTE
1.1 Securing Payment In Trust. This conveyance is made IN TRUST to secure
payment of that certain Promissory Note of even date herewith, in the principal
amount of $150,000.00, executed by Grantor, as maker, and payable to the order of
Beneficiary, bearing interest and being payable as therein provided (the "Note"). To
the extent that this Deed of Trust conflicts with the PSA, the PSA will control. The
Agreement is hereby incorporated into this Deed of Trust by reference.
1.2 Payment of Note. The Note shall be payable at the address specified in the Note
until Beneficiary gives written notice to Grantor designating another place of payment.
1.3 Application of Payments. All payments received by Beneficiary, however
designated, shall be applied to the principal or interest of the Note or to expenses
provided for in this Deed of Trust, or any combination of the foregoing, as directed by
Beneficiary in accordance with the provisions of the Note.
Article II
GRANTOR'S OBLIGATIONS
2.1
General Obligations. Grantor shall:
2.1.1 keep the property in good repair and condition;
2.1.2 pay all taxes and assessments on the property when due; and
2.1.3 preserve the lien's priority as it is established in this Deed of Trust;
2.2 Required Insurance Policy. Grantor shall maintain, in a form acceptable to
Beneficiary, an insurance policy that:
2.2.1 covers all improvements for their full insurable value as determined when
the policy is issued and renewed, unless Beneficiary approves a smaller amount
in writing;
2.2.2 contains an 80% coinsurance clause;
2.2.3 provides fire and extended coverage, including windstorm coverage;
2.2.4 protects Beneficiary with a standard mortgage clause; and
2.2.5 provides flood insurance at any time the property is in a flood hazard
area.
Page 2
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2.3 Insurance Policy Covenants. Grantor shall do the following things related to the
above-mentioned insurance policy:
2.3.1 comply at all times with the requirements ofthe 80% coinsurance clause;
2.3.2 deliver the insurance policy to Beneficiary and deliver renewals to
Beneficiary at least ten days before expiration; and
2.3.3 keep any buildings occupied as required by the insurance policy.
2.4 Prior Liens. If this Deed of Trust is not a first lien, Grantor shall pay all prior
lien notes that Grantor is personally liable to pay and abide by all prior lien
instruments.
2.5 Subsequent Liens. Grantor may obtain other liens or security interests securing
the lending of money for the construction, affixation, creation, purchase, or addition of
improvements of any type or nature to the Property (including, but not limited to, so
called construction loans), and such other liens shall be superior to this Deed of Trust.
Article III
BENEFICIARY'S RIGHTS
3.1 Successor Trustees. Beneficiary may appoint in writing a substitute or successor
trustee, succeeding to all rights and responsibilities of Trustee, provided that
Beneficiary does so in writing, provides a copy of the same to Grantor promptly upon
doing so, and records the same in the Real Property Records of Harris County, Texas.
3.2 Application ofInsurance Proceeds. Beneficiary may apply any proceeds received
under the insurance policy either to reduce the Note or to repair or replace damaged
or destroyed improvements covered by the policy.
3.3 Beneficiary Performance of Obligations. If Grantor fails to perform any of
Grantor's obligations, Beneficiary may perform those obligations and be reimbursed
by Grantor on demand for any sums so paid, including attorney's fees, plus interest on
those sums from the dates of payment at the rate stated in the Note for matured,
unpaid amounts. The sum to be reimbursed shall be secured by this Deed of Trust.
3.4 Grantor Default. If Grantor defaults on the Note or fails to perform any of
Grantor's obligations and the default continues after Beneficiary gives Grantor notice
of the default and the time within which it must be cured, as may be required by law
or by written agreement, then Beneficiary may:
3.4.1 declare the unpaid principal balance and earned interest on the Note
immediately due;
3.4.2 request Trustee to foreclose this lien, in which case Beneficiary or
Beneficiary's agent shall give notice of the foreclosure sale as provided by the
Texas Property Code as then amended; and
Page 3
RECORDER'S MEMORANDUM:
. d r II this instrument was
At the time .0\ recor t: f~r 'the best photographic
found to be maboequase of illegibility, CllrbOfl or
reproductIOn ecau . ete All oIllckoutb
photo copy. dlscolored paper, . t at the urllot
additions and changes were p~sen
the Instrument was filed and rece e~.
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3.4.3 purchase the property at any foreclosure sale by offering the highest bid
and then have the bid credited on the Note.
Article IV
TRUSTEE'S DUTIES
4.1 Foreclosure Duties. If requested by Beneficiary to foreclose this lien, Trustee
shall:
4.1.1 either personally or by agent give notice of the foreclosure sale as
required by the Texas Property Code as then amended; and
4.1.2 sell and convey all or part of the property to the highest bidder for cash
with a general warranty binding Grantor, subject to prior liens and to other
exceptions to conveyance and warranty.
4.2 Foreclosure Sale Proceeds. From the proceeds of such sale, Trustee shall pay,
in this order:
4.2.1 first, expenses of foreclosure;
4.2.2 second, to Beneficiary, the full amount of principal, interest, attorney's
fees, and other charges due and unpaid;
4.2.3 third, any amounts required by law to be paid before payment to Grantor;
and
4.2.4 fourth, to Grantor, any balance.
Article V
GENERAL PROVISIONS
5.1 Surrender of Possession. If any of the property is sold under this Deed of Trust,
Grantor shall immediately surrender possession to the purchaser. If Grantor fails to
do so, Grantor shall become a tenant at sufferance of the purchaser, subject to an
action for forcible detainer.
5.2 Recitals. Recitals in any Trustee's deed conveying the property will be presumed
to be true.
5.3 Election of Remedies. Proceeding under this Deed of Trust, filing suit for
foreclosure, or pursuing any other remedy will not constitute an election of remedies.
5.4 Superior Lien. Subject to the terms of this Deed of Trust, this lien shall remain
superior to liens later created even if the time of payment of all or part of the Note is
extended or part of the property is released.
5.5 Application of Payments. If any portion of the Note cannot be lawfully secured
by this Deed of Trust, payments shall be applied first to discharge that portion.
Page 4
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5.6 Condemnation. Grantor assigns to Beneficiary all sums payable to or received
by Grantor from condemnation of all or part of the property, from private sale in lieu
of condemnation, and from damages caused by public works or construction on or near
the property. After deducting any expenses incurred, including attorney's fees,
Beneficiary may release any remaining sums to Grantor or apply such sums to reduce
the Note. Beneficiary shall not be liable for failure to collect or to exercise diligence in
collecting any such sums.
5.7 Usury. Interest on the debt secured by this Deed of Trust shall not exceed the
maximum amount of non usurious interest that may be contracted for, taken, reserved,
charged, or received under law; any interest in excess of that maximum amount shall
be credited on the principal of the debt or, if that has been paid, refunded. On any
acceleration or required or permitted prepayment, any such excess shall be canceled
automatically as of the acceleration or prepayment or, if already paid, credited on the
principal of the debt or, if the principal of the debt has been paid, refunded. This
provision overrides other provisions in this and all other instruments concerning the
debt.
5.8 Context. When the context requires, singular nouns and pronouns include the
plural. All pronouns include the male, female and neuter genders.
5.9 Assignment. This Deed of Trust shall bind, inure to the benefit of, and be
exercised by successors in interest of all parties. Grantor may expressly assign its
interest in the Property subject to the liens and obligations under the Note and this
Deed of Trust, and the assignee shall assume the same, at which time, Beneficiary
releases Grantor from any of the obligations under this Deed of Trust and the Note,
and Grantor shall have no further obligations under the Note and this Deed of Trust.
5.10 Partial Release. Any part of the Property may be released by Beneficiary
without affecting the lien hereof against the remainder of the Property.
5.11 Headings. The headings contained in this Deed of Trust are included for
convenience of reference only and are in no way intended to describe, interpret, define
or limit the scope intent or substance of this Deed of Trust or any provision hereof.
5.12 Governing Law. This Deed of Trust shall be governed by and construed and
enforced in accordance with the laws ofthe State of Texas without giving effect to any
conflicts-of-law rule or procedure which would refer the matter to another jurisdiction.
5.13 Notice. All notices, requests, demands and other communications required or
permitted to be given hereunder shall be deemed to have been duly given if in writing
and delivered personally or mailed first class, postage prepaid, registered or certified
United States mail, to such address as provided below.
Page 5
~
\~~
~
~~
r
~
~;I
'I
~
I~'
=
~
~
IN WITNESS WHEREOF, the undersigned executes this Agreement as.ofthe date of
the acknowledgment set forth below, but to be effective as of the Effective Date.
GRANTOR:
EAST A DEVELOPMENTS, L.P.
~
By: GSDB Management, L.L.C.,
its General Partner
By: //
Garson Silvers
Manager
THE STATE OF TEXAS S
S
COUNTY OF HARRIS S ~
This instrument was acknowledged before me on the1i day of October, 2008, by
East A Developments, L.P., by GSDB Management, L.L.C., its General Partner, by
Garson
~... "II.'It.
I"~'::/i:l::'i N PAMELA JOANN LEStER
~.~i J otary Public. State of T6)(SS
\".}/.;~~$:' My Commission e"pir'lI
~ "", July 08,20/2
ADDRESS OF GRANTOR:
1001 Usener
Houston, Harris County, Texas 77007
MAILING ADDRESS OF TRUSTEE:
Askins & Askins, P.C.
702 W. Fairmont Parkway
La Porte, Texas 77571
OF BENEFICIARY:
604 W. irmont Parkway
La Porte, Harris County Texas 77571 V'
AFTERRECORDIN~~
~7j'---1
OCT 3 1 2008
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AllY PRO'IlSllN HEREIN'HHCH RES1'RlCiS iHE S~LE. RPilIL OR USE OF iHE DESCRIBED REll
PROPERTY BECAUSE Of COLOR OR RICE IS INVALID AND UNENfCRCEloLE UNDER FEDERAL LAW.
THE STATE OF TEXAS
COUNTY OF HARRIS
I hereby certiy ~at ~is I1slnJmenl was FllED i1 Fie Numoor SEquence on ~e illle and al ~e lime
stamped hel!OIl b1 me; and was duly RECORDED. In ~e Ofticlal Pubic R"",dso! Real Propelt) of Harris
(Any, Texas 111
e
-
.,.
~d~
COUNTY CLERK
Page 6 HARRIS COUNTY, TEXAS
l - ____A~Y~E OF LOAN ~._qMILJ:i-"-.:J502-026?
1. [lfHA 2. [ lfMHA 3. [ ] CONV. UN 1 NS.
4. [JVA 5. [ JCONV. INS.
r -6-:-F IlE-NUMBER:--------- ---li:--LOAN NUMBE-R:- --- --- ---
________ _______________________k~.rG. IN~~1~~::2NO.: -- ------ _------ --------- -------
.NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent arc shown. Items marked
("p.a.c. ") were paid outside the c1o.sing: they are shown here for information purposes and are not included in the totals.
~.
U.S.DEPA~lMENl 0< HOUSING AND URBAN DEVELOPMENT
'. NAME OF BORROWER:
EAST A. DEVELOPMENT, L.P.
ADDRESS:
NAME OF SELLER:
1001 USENER, HOUSTON, TEXAS 77009 _
WADE COOPER
ADDRESS:
NAME OF LENDER:
2501 PINEBROOK LANE, SEABROOK, TEXAS 77586
LA PORTE ECONOMIC DEVELOPMENT CORPORATION
____~._._______SELl.ER TIN-'-.__________ ___ _
____ ADDRESS: .____________________._.__._________
'-PROPERTY LOCATION: NORTH 17FT OF LT 9, ALL OF LOTS 8,7,& 6, BLOCK 198
CITY OF LAPORTE
109 & 11 SAN JACINTO AVE TX
STEWART TITLE COMPANY
9434 OLD KATY ROAD, SUITE 230
HOUSTON, TEXAS 77055
STEWART TITLE
9434 OLD KATY ROAD, SUITE 230
HOUSTON, TEXAS 77055
J. SUMMARY OF BORROWER'S TRANSACTION
100. GROSS AMOUNT DUE FROM BORROWER:
l. SETTLEMENT AGENT:
ADDRESS:
'LACE OF SETTLEMENT:
ADDRESS:
10 I. Contract sales price
102. Persona I property ._
103. Settlement charges to borrower(line 1400)
104.
105.
295,000.00
2,060.55
A.djusnnents for itClllS paid by seller in advance:
106. City/town taxes
107. County taxes
108. Assessments
109. Maintenance
110. School/Taxes
III.
112.
to
to
to
to
---~------
120. GROSS AMOUNT DUE FROM BORROWER:
297,060.55
200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER:
201. Deposit or earnest money
202. Principal 8Illount of new loao(s)
203. Existing loan(s) taken subject to
204. Commitment Fee
100.00
150,000.00
205.
206. Option Fee
207. PAID TO SELLER
208. MTP,08108647
209.
Adjustments for items unpaid by seller:
210. City/town taxes to
211. County taxes 01/01/08 to
212. Assessments to
213. School/Taxes to
3,500.00
82,218.68
-POCB 150,000.00
10/29/08
1,811.03
214.
215.
216.
217.
218.
219.
220. TOTAL PAID BY/FOR BORROWER:
237,629.71
300. CASH AT SETTLEMENT FROM/TO BORROWER:
301. Gross amount due from borrower(line 120)
302. Less amounts paid by/for borrower(line 220)
._ 297,060.55
237,629.71
--
303. CASH IX FROM] [ TO] BORROWER:
59,430.84
EXHIBIT
I
c
CLOSER: PAM LESTER
PHONE NUMBER: (713) 688-4300
SETTLEMENT AGENT TIN: 74-0923770
PHONE NUMBER: (713) 688-4300 jl.SETTLEMENT DATE
Closing date: 10/29/08
Proration date: 10/29/08
K. SUMMARY OF SELLER'S TRANSACTION
400. GROSS AMOUNT DUE TO SELLER:
401. Contract sales price
402. Personal DroDerty
403.
404.
405.
295,000.00
-------
Adjustnlcnts for items paid for seller in advance:
---
406. City/town taxes
407. County taxes
408. Assessments
409. Maintenance
410. School/Taxes
411.
412.
to
to
to
to
to
420. GROSS AMOUNT DUE TO SELLER:
295,000.00
500. REDUCTIONS IN AMOUNT DUE TO SELLER:
501. Excess deposit(see instructions)
502. Settlement charges to seller(linc 1400)
503. Existing loan(s) taken subject to
504. Payoff of first mortgage loan
505. Payoff of second mortgage loan
506. Option Fee
~PAID TO SELLER
508.
509.
_ __~~,381.46
--- ----.--------
95,687.59
108,401.24
3,500.00
82,218.68
Adjustments for itCJTIS unpaid by seller:
510. Cityltown taxes to
511. County taxes 01/01/08 to
512. Assessments to
513. School/Taxes to
5 14. Maintenance to
515.
516.
517.
518.
519.
_.~----------
10/29/08 1,811.03
.-----
--
520. TOTAL REDUCTION IN AMOUNT:
295,000.00
600. CASH AT SETTLEMENT TO/FROM SELLER:
601. Gross amount due to seller(line 420) _ __ 295,000.00__
602. Less total reductions in anlount due sc~lerOi~~?Q)___ ~_ 295 L900 .00 ~
603. CASH [ TO] [ FROM] SELLER;
0.00
_..__.._..,_...,-_.,.---'.,-----"-"~~._~~.........~~-_.~-~~~-~ --
700. TOTAL SALESiBROKER'S COMMISION Bascd on $
Division of Commission (line 700) as f'oI~~~-=--_
@
%=
PAID FROM
BORROWER'S
FUNDS
AT SETTLEMENT
PAID FROM
SELLER'S
FUNDS
AT SETTLEMENT
'ile 07106752
L. SETTLEMENT CHARGES
----------..----
701. $____.__._.._________.__.._. .____.l9______.__..
702. $ to
703. Conunissionpaid at scttlcment
..--1--.......--....---.
704.
800. ITEMS PAYABLE IN CONNECTJON WITH LOAN.
801. Loan l?rigination fcc ._____._ _. % .______. -- ..--..---. .-----.-..-.
802. Loan Discount .____. ...____._~__.._.______._.____ --...--..--'
803. Appraisal fee .___.__._~~.... .____
804. Credit Report ._____~__..
805. Lender's inspection fee to
806. Mortgagc Insurancc application fee to
807. Assumption Fee to
808. Commitment Fee ___. to
809. FNMA Processing Fee ..____~.
810. Pict1.lfcS to
-----.-.-.---
.---....
..-
-.
~_...__._.~---_.~._--_._._----_.._--
812. to
900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE.
901. Interest from to @$
902. Mortgage insurance prenliUIn for ._.~ mo. to
903. Hazard insurance premium for .__"_ yrs. to
904. Flood Insurancc yrs. to
905.
1000. RESERVES DEPOSITED WITH LENDER
/day
.-- -----_._-~-
.-.------.-----
1001. Hazard Insurance
1002. Mortgage insurance
1003. City property taxcs
1004. County property taxes
1005. Annual assessments (Maint.)
1006. School Property Taxes
1007. Water Dist. Prop. Tax
1008. Flood Insurance
1009. Aggregate Accounting Adjustment
1100. TITLE CHARGES:
mo.@$
mo.@$
mo.@$
mo.@$
mo.@$
mo.@$
mo.@$
mo.@$
per IUD.
per ITIO.
per mo.
per lTJG.
per mo.
per mo.
per ITlO.
per mo.
"-
._--
1101. Settlement or closing fee
1102. Abstract or title search
1103. Title examination
1104. Title insurance binder
1105. Document preparation
1106. Notary fee
1107. Attorney's fee to
(includes above itelTIS No.' )
1108. Title insurance 50% to Richard A.
(includes above items No.: )
1109. Lender's coverage 150,000.00
1110. Owner's coverage 295,000.00
MTP,08108647
TAXCERT,0810864
GTYFEE,08108647
to STEWART TITLE
to STEWART TI TLE
to STEWART TITLE ..--'
to
lo RICHARD A. CROW, P.C.
to
to BENJAMIN MILLER
1,160.00
64.95
5.00
RELEASE OF LIEN
____~.__. 100.00
crowr;
to
STEWART TITLE
432.60
175.00
.-
1,884.00
---.
$
$
150.00
2.166.60 Sur Del
RICHARD A. CROW. P. C.
300.00
300.00
--
1111. Escrow fee ___._.._.to
1112. Restriclions to
1113. Messenger Fee/Document Delivery to RICHARD A. CROW, P. C.
1114. 10
1200. GOVERNMENT RECORDING AND TRANSFER CHARGES
120 I. Recording fees: Deed $ 25.00 Mrtg $ 48. DO
1202. City/county tax/stamps: Deed $ Mrtg $
1203. State tax/stamps: Dced $ Mrtg $
1204. Tax certificates to STEWART TI TLE
25.00
35.00
ReI. $
50.00
73.00
50.00
---
64.95
1205.
1206.
\300. ADDITIONAL SETTLEMENT CHARGES
130 I. Survey .... to
1302. Pest inspcction ._____._.~__
1303. to
1304. 2006 DELlNQUENTAXES ...._____.. to HARRIS COUNTY TAX ASSESSOR COLLECTOR
1305. 2007 DELI NQUENT TAXES lo LA PORTE CITY AND I SD
1400. TOTAL SETTLEMENT CHARGES (cntered on lines 103. Section] and 502, Section K)
lo
to
.---
2,060.55
204.35
568.16
3.381.46
~ERTIl::;ICATI0N: I have carefully reviewed the HUD-l Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statclTIent of aU
:.ceipts and disburse01ents n1ade on my account Of by me in this transaction. I further certify that I have received a copy of HUD-l Settlement Statement.
3orrowcrs
'he HUD.I Settlement Stateme
:.cordance with this statement.
have caused or will cause the funds
---.-'-
,ettlement Agent
Date
SEE PAGE 3 FOR SIGNATURES, IF APPLICABLE
>/ARNING: It is a crime to knowingly lllak\..' false SlatcllH.::nts to the United States on this or any other similtiT 1'onn. Penalties upon cOllvictiun call incluue a fine allJ
nprisonmenl. For dctails SlOe: Tille 18: U.S. Codc Section 1001 and Section 1010.
"
Page 3 to be affixed to
HUD-l Settlement Statement
File No.: 07108752
CERTIFICA TION
Seller's and Purchaser's signature hereon acknowledges his/their approval of tax prorations and
signifies their understanding that prorations were based on taxes for the preceding year or
estimates for the current year, and in the event of any change for the current year, all necessary
adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes
will be reimbursed to Title Company by the Seller.
The parties have read and understood the above sentences, and recognize that the above
recitations herein are material and important. The parties agree to these statements, and
recognize Title Company is relying on these recitations in closing this transaction.
Title Company has deposited the earnest money that it has received in a demand deposit account
that is federally insured to the maximum extent permitted by law. Demand deposit accounts are
non-interest bearing pursuant to federal law, but offer immediately available funds for withdrawal
after a check has cleared.
Title Company may receive other benefits from the financial institution where the funds are
deposited. Based upon the deposit of escrow funds in demand deposit accounts and other
relationships with the financial institution, Title Company is eligible to participate in a program
offered by the financial institution whereby the title Company may (i) receive favorable loan terms
and earn income from the investment of loan proceeds and (Ii) receive other benefits offered by
the financial institution.
I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and
belief, it is a true and accurate statement of all receipts and disbursements made on my account
or by me in this transaction.
I certify and acknowledge that I have received a copy of the HUD-1 Settlement Statement and
have read and understood the disclosure state above.
Seller(s)
Pu rch aser (s) /Borrowe r (s)
To the best of my knowledge, the HUD-1 Settlement Statement which I have prepared is a true
and accurate account of the funds which were received and have been or will be disbursed by the
undec . a, pac< of' ,e" men' of 'h;' uan'~~4Y ~c! 6
aw /
WARNING:
It is a crime to knowingly make false statements to the United States on
form. Penalties upon conviction can include a fine and imprisonment.
U.S. Code Section 1001 and Section 1010.
this or any other similar
For details see: Title 18
I ~-------_._.-_._--.~_.__.--_.~---.-.,.-_._~---------.--._~-~----------.-,..-.----~-.--.............-------- --.- .'----,-~---,--~~-.---
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU
MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM
ANY INSTRUMENT THAT TRANSFERS AND INTEREST IN REAL PROPERTY BEFORE
IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY
NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
~tntrallIDIarranttl itt.b
tuit~ ]ttn~nr'1i 1Jlitu
COUNTY OF HARRIS
s
s
s
Know All Men By These Presents:
THE STATE OF TEXAS
That WADE COOPER, an individual, ("Grantors", whether one or more), for and
in consideration of the sum of Ten Dollars ($10.00) and other good and valuable
consideration to Grantors this day paid by EAST A DEVELOPMENTS, L.P., a Texas
limited partnership ("Grantees", whether one or more), of Harris County, Texas, the
receipt and sufficiency of which is hereby acknowledged, and the further consideration
of the execution and delivery by Grantees of the following:
That certain promissory note ("Note') of even date herewith in the
original principal sum of $150,000.00 payable to the order of La Porte
Economic Development Corporation ("Lender''), bearing interest and
being payable as therein provided, which Note is secured by a vendor's
lien herein reserved, and is additionally secured by a Deed of Trust of
even date herewith executed by Grantees to Knox Askins, Trustee,
reference to which is here made for all purposes; and in consideration of
the payment of the sum above mentioned, Grantor hereby transfers, sets
over, assigns and conveys unto Lender, and his heirs, administrators and
assigns, the vendor's lien and superior title herein conveyed, in the same
manner and to the same extent as if the Note had been executed in
Grantor's favor and assigned by Grantor to Lender without recourse;
have GRANTED, BARGAINED, SOLD and CONVEYED and by these presents do GRANT,
BARGAIN, SELL and CONVEY unto Grantees all ofthe real and personal property situated
in Harris County, Texas, described more particularly in Exhibit "A", attached hereto
and incorporated by reference (the "Subject Property").
GF#: (/ 7/vg-~
21-A/RICHARD CROW ~
STEWART TITLE COMPANY
Page -1-
TO HAVE AND TO HOLD the Subject Property, together with all and singular
the rights and appurtenances thereto in anywise belonging unto Grantees, their heirs,
administrators, successors and assigns, forever; and Grantors do hereby bind
themselves, and their heirs, administrators, successors and assigns, to WARRANT AND
FOREVER DEFEND, all and singular, the Subject Property unto Grantees, and their heirs,
administrators, successors and assigns, against every person whomsoever lawfully
claiming or to claim the same or any part thereof.
But the express vendor's lien and superior title are retained in favor of Lender
and his heirs, administrators and assigns, upon the Subject Property until the Note
and all other sums to accrue or to become payable thereunder shall have been paid in
full in accordance with the face, tenor, effect and reading of the Note, whereupon this
Deed shall become absolute. ~
EXECUTED this thJ!i day of October, 2008.
-lid ~~
"Grantors"
THE STATE OF TEXAS S
COUNTY OF HARRIS S .. ~
This instrument was aCkn:Wledged before me on thi~ ~ay of "ctober, 2008,
by Wade Cooper. ~\'~V~/".
A~p'''' PAMELA JOANN LESTER
L\~i Notary Public. State of Texas
. ~/"\"~ My Commission Expires
",LI. ."" July 08, 2012
ADDRESS OF GRANTEES:
1001 Usener
Houston, Texas 77006
H:\Ben \Client Files\East A Developments LP\380 Agreement with the City of La Porte\xGWD.wpd\102108194828
Page -2-
Exhibit "A" to General Warranty Deed
All of Lots 6, 7, 8, and the North 17 feet of Lot 9, in Block One Hundred Ninety-Eight
(198) of TOWN OF LA PORTE, an addition in Harris County, Texas, according to the
map or plat thereof recorded in Volume 8, Page 16 of the Map Records of Harris
County, Texas, together with all improvements thereto.
Page -3-
askins
& askins P.C.
ATIORNEYS and COUNSELORS
Knox W. Asldns
Clark T. Asldns
March I ~2009
Ms. Pam Lester
Escrow Officer
stewart Title Company
9434 Old Katy Road, suite 230
Houston, TX 77055
plester@stewart.com
Re: East A Development LP, $150,000.00 Promissory Note
to La Porte Economic Development Corporation,
109 and 111 San Jacinto street
Dear Ms. Lester:
The balance due on the $150,000.00 Promissory Note from East A
Development, LP, to the La Porte Economic Development Corporation,
is $150,000.00 principal, and per diem interest of $20.54, from
October 29, 2008, to the date of payment.
Attached to this letter is wiring instructions for the title
company to send the payoff funds to the City of La Porte.
I have prepared a form of release of lien which the La Porte
Economic Development Corporation will execute and forward to you,
to be held in escrow against this payment, for your closing.
Please call me if you have any questions.
Yours very
~Skins
City Attorney
City of La Porte
(1Y\~ t9-v\ ~ ~/
Development Corporation ~
KWA: sw
Enclosures
cc: Mr. Ron Bottoms
Manager
La Porte Economic
bottomsr@laportetx.qov
EXHIBIT
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@swbell.net
I
D
.A'"~~""""""'____~____"".__"".~'_"_'_._'_~______
City of La Porte
Wiring Instructions
Amegy Bank
Bank Name: Amegy Bank
Routing Number: ABA 113 011 25 8
Account Number: # 312088
Account Name: La Porte General Operating Account
RELEASE OF LIEN
THAT the undersigned, the legal and equitable owner and holder
of that one certain promissory note hereinafter described, for and
in consideration of the full and final payment of all indebtedness
secured by the hereinafter lien or liens, the receipt of which is
hereby acknowledged, has released and discharged, and by these
presents releases and discharges, the hereinafter described
property from all liens held by the undersigned securing said
indebtedness, to-wit:
Date of Note:
October 29, 2008
Amount of Note:
$150,000.00
Executed by:
East A Developments, LP
Payable to:
La Porte Economic Development Corporation
Recording References:
Deed of Trust: 20080542456
Property Description:
All of Lots 6, 7, 8, 9, 10, and the West fifty-six and
four tenths (56.4) feet of Lots 11, 12 and 13, in Block
One Hundred Ninety-Eight (198) of TOWN OF LA PORTE, an
addition in Harris County, Texas, according to the map or
plat thereof recorded in Volume 8, page 16 of the Map
Records of Harris County, Texas.
Date:
mllr^~ 1&, 2009.
By:
STATE OF TEXAS ~
~
COUNTY OF HARRIS ~
This instrument was acknowledged before me on the I~ day of
rn~t~ ,2009, by Ron Bottoms, Manager of La Porte Economic
Development Corporation, a Texas non profit corporation, on behalf
of said entity.
MEW LMGLOS
M, Comminlon bplNS
JanuMy 10.2013
AFTER RECORDING RETURN TO:
PREPARED IN THE LAW OFFICE OF:
ASKINS & ASKINS, P.C.
P.O. Box 1218
La Porte, TX 77572-1218
Page 1 of 1
From: Dolby, Michael
Sent: Wednesday, March 10,20105:38 PM
To: Bottoms, Ron
Subject: Miscoding of expenditures at 5 points
Ron,
Bottoms, Ron
On October 28, 2008, the city wired $153,424.56 dollars to Stewart Title for capital acquisitions for the
five points project; however, the charge was mistakenly miscoded to the sports complex project, which
is GEN 975. During the first quarter CIP report (January 2009), the mistake was detected and correctly
coded to GEN 976 Main street Revitalization.
3111/2010
tf L ~() CITY OF LA PORTE
"
;J. JOURNAL ENTRY FORM
I- ~
U m
.,..,x..... AJ/TF# 35LJI
Date 1/30/2009
Accounting Year 2009 Accounting Period 4
Explanation To move land purchase to correct Project number
(purchase land at 5 points)
Control Total $ Doc# LiS \
finance use only finance use only
Ledaer Number Project # Debit/Out. Credit/In DescriDtion ...,n [;1
015-9892-976.86-53 GEN976 153,424:56 Move land purchase
015-9892-976.86-53 GEN976 150,000.00 to correct proiect number
015-9892-975.86-53 GEN975 153,424.56 (purchase land at
015-9892-975.86-53 GEN975 150,000.00 5 points) ',.- '..1">
,.;.. A
Total 303,424.56 303,424.56 6-
Made By Le Ann Miculka Approved By
,1IPSt-r,
L<r='
mmmm____q: ~.. ....... ..,_
Complaint #Om lll2
COMPLAINT
The Board is not an arbiter for the appraised value of a property, the appraisers job IS to provide an QPllJiofJ of
value. The law does not stipulate that the appraised value mlJst be acceptable to the client. Also, the Board may
not investigate complaints until after the resolution of any legal action involving the appraiser and/or the appraisal
The Board will evaluate a complaint to determine if the appraiser violated tt1e licensing act, Board Rules, or the
Uniform Standards or Professional Appraisal Practrce (USPAPi
Part i:
Part 2:
Part 3:
Part 4:
Part 6:
Part 6:
Part 7:
Part 8:
Part 9:
tp'(et\ ~ \ ~
&~\~(~$.-f
Is this matter now in litigation?
Yos
!~,No
Was there an engagement letter or written agreement?
Yes
(1 No
What was your date of discovery? [the date that
YOll first received the appraisal in question.]
Date of the appraisal:
Address of the property:
Purpose of the appraisal:
Complainant Information
Your name.
(Work)
Address
/~; ()
Phone
(Hom€)
,,.;
Respondent Information
I WISH TO FILE A COMPLAINT AGAINST THE FOLLOVVlNG PEHSON
Name
C;"
Address
Phone.
TAlCB License or Certification Number
Reason(s) for the complaint
Describe your reasons for the complaInt on typed or neatly printed By" Xl1 inell paper and attach to
this form Use as manY' additional sheets as necessary. Give specific reasons, other than value,
why you are fHing a complaint and give complete details. Attach copies of any appraisals,
documents, letters, contracts, review appraisals, or other materials relating to the complaint Send
by postal mail, not FAX Please include either THREE (3) complete copies (sets) or ONE (1)
complete copy and a CD of the complaint, Including this fonn, the appraisal, and all
sUPJ>Orting documentation, for TALCB Enforcement Division, Please reduce all coples.Jo
Jetter size paper,
Signature
,
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The reasons for rny cornplaint concerning the attached appraisal by Stephen .L
Bilicek on 3/11/08 are as follows:
Thr(~e of the 6 cornparable properties used to E'stablish the value of this lot were
pending sales (2 of which occurred on 3/11/08 according to the appraiser).
Further, these pending sales were provided to the appraiser by the same
individual, Garson Silvers, the owner and seller of tht:: appraisal subject fltriangIE:/l
land to the City of La Porte..
It is rny belief that these "pending" land sales, which never were cornpleted were
done solely to provide false data to improperly inflate the appraised value of the
subject "triangle" property.
Though two of these pending sales were not used in the direct calculation of the
appraised land value, thE' actual land sales were adjusted by large factors of 133%
with out good explanation. This was done despite the notation that the land was
in a triangular shape, rendering it less useful for building and despite the fact that
the previous use of tht':: land had been a gas station, with, as might be expected.
buried, leaking fuel tanks requiring remediation,
Obviously, there was ilnproper collusion between the seller and the appraiser,
and this could not have been accepted without the collusion of the buyer" the City
of La Porte Economic Development Corp.
Ultimately, the appra ! gave a value for this property of $5 50(}
The appraiser says that the triangle had contained buried fuel tanks.. which were
reportedly removed previously, according to the seller.
This statement was not true, as it was known at the time by the St?lIer that the
tanks were there and the City of La Porte bought this land has is"
Further f the City of La Porte paid three tirnes this very questionablf: appraised
va!ue--wa selling price of $150,000 paid by the taxpayers of La Porte.
In addition, the City of La Porte has paid an estimated S80,OOC ft)f the renlOva! of
th<:'"> fuel tanks from this property.
Obviously, this entire appraisal contains nurnerous ethical and prOf(ISsional
lapses..
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COM'"
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Westbeld, Debbie
.,<>">_........"_u.,'~.........,.._......._u~v,>#,_.,~,.__<,,>,,,.....,......--'_..... ''''_~___,....',.,_~w...''',.,.,.........._.__._.<''__.'''~........,..__.~..,...._...~~......,~"-"-">(">'''',.,,...__.,_..
From: Powell, Kathy
Sent: Wednesday, March 04, 2009 3:43 PM
To: Westbeld, Debbie
Cc: Dolby, Michael; 'Clark T. Askins'
Subject: RE: tax bill rec'd on triangle property
Request a check to be cut for the amount and made payable to La Porte Tax office and we will apply it to the
taxes and clear the account. You might want to check the county taxes to make sure there is not something due
for them as well.
Kp
....._______"'.,"",...<___,.,_,~_...._,_...~~-.,_,.....,...."'K'...___.,....,.,.....-,~.~.._.""~""'-_.,....,.".,.,.,..,........'
From: Westbeld, Debbie
Sent: Wednesday, March 04, 2009 3:36 PM
To: 'Clark T. Askins'; Powell, Kathy
Subject: tax bill rec'd on triangle property
The City of La Porte sent me a "Delinquent Tax Notice" for the triangle property owned by the
Eco Dev Corp. We owe the City $317.64. What do I do with this???
tJe4dk ?Ue4tIdd
City of La Porte
604 W. Fairmont Parkway
La Porte, TX 77511
office: (281) 410~5013
cell: (281) 628-5114
LA PORTE TAX OFFICE
PO BOX 1849
LA PORTE TX 775721849
Phone: (281) 471-5020
2/25/09
HCAD Number
024-004-099-0001
3806
LA PORTE ECONOMIC DEVELOPMENT
CORP
604 W FAIRMONT PKWY
LA PORTE, TX 77571-6215
Legal Description
151 S BROADWAY ST
LTS 1 THRU 9 BLK 199
LA PORTE
** DELINQUENT
TAX
STATEMENT **
TAX YEAR BASE TAX PENALTY/INT OTHER +/-
-------- -------- ----------- ---------
-------- -------- ----------- ---------
08 CLP 99.84 6.99 .00
08 ILP 186.32 13.04 .00
TOTAL 08 286.16 20.03 .00
Total Due 286.16 20.03 .00
TOTAL D
-------
-------
106.
199.
306.
306.
Total amount due if paid during the month of February
March
April
306.
G'l~
317.
This is a statement of your delinquent REAL PROPERTY
as of 02/25/09.
ON JULY 1ST ALL UNPAID TAXES ARE TURNED OVER TO DELINQUENT TAX ATTORNE
FOR COLLECTION AND ARE ALSO SUBJECT TO AN ADDITIONAL COLLECTION
PENALTY CURRENTLY IN THE AMOUNT OF 20~, WITH THE EXCEPTION OF THE
CITY OF MORGAN'S POINT, WHICH HAS AN ADDITIONAL PENALTY IN THE
AMOUNT OF 15%. IF THIS PROPERTY IS AFFECTED BY BANKRUPTCY THE
TAX YEARS SUBJECT TO THE BANKRUPTCY IS INFORMATIONAL ONLY.
City of La Porte
Accounts Payable
Check Requisition
Vendor #: 4,~/..Lt1 n I Due Date: March 4. 2009
Vendor Name:
City of La Porte Tax Office
P.O. Box 1849
La Porte, Texas 77572-1849
You are reouired to attach receiots with all check reauisitions.
Description:
City taxes paid on 151 S. Broadway, Lots 1-9, Blk 199, La Porte
Account # Project # Invoice # Commodity Date Amount $$
Code
01$89~76~O12 GEN Cf1 In 0240040990001 02/25/09 311.92
.-
f)ll);q 812 ->:17f..,. 5 () lcr'
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....~.... .- ~.:':::~.,!:;,."l --
- "--" Total Amount Due: $ 311.92
Remarks:
Please make check payable to La Porte Tax Office and give ~bbie Westbeld in City Managers Office
Prepared By: Debbie Westbeld A~V< \"J D;'Jf/IJ'
Date: March 4, 2009 /:
Revised 8/15/97 '-/ ,
City of La Porte
604 W Fairmont Parkway
La Porte, TX 77571
.] ;ll<'1l.n 1103 :l;;fol:..:U.."I'.Y...] Do.] :J::l11l :'-:\01:( c'1 :r.llj <II) ~:ll < II ::l1.ll< Ill: l::l ,', llo'l"''':lo:f ':I:~il'.I::1:.1 " ~::l:~::l::l:"'lIl~.;I"l:II}::lI fo"~
GENERAL OPERATING ACCOUNT No. 243083
-
VENDOR NUM
431290
PAY THE SUM THREE HUNDRED ELEV
OF
Amegy Bank
La Porte, TX
35-1125/1130
VOID 90 DAYS AFTER DATE
Amount
$311.92
TO
THE
ORDER
OF
CITY OF LA PORTE
604 W FAIRMONT PARKWAY
LA PORTE TX 17572-1115
II
**~~*****************
~
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II' 21. :lOa :lll' I: ~ ~ 10 ~ ~ 2 581: 1I'0000:i ~ 208811'
DATE INVOICE
02/25/2009 0240040990001
DESCRIPTION
PROPERTY TAXES
AMOUNT
*****311.92
CHECK NUMBER
243083
I
II
DATE
03/13/2009
City of La Porte
604 W Fairmont Parkway
La Porte, TX 77571
281-471-5020
VENDOR NUMBER
431290
Amount
$311. 92
. .',
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PAGE 1