TO: Mike Wildgen, City Manager
CC: Dave Corliss, Assistant City Manager/Director of Legal Services
FROM: Frank S. Reeb, Administrative Services Director/City Clerk
DATE: April 28, 2004
RE: E& E Specialties Resolution 6545 and Special Warranty Deed Memo
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Over the past few months, staff has been working with Matt Hoy, Stevens & Brand, legal counsel for E& E Specialties Inc., and with Phil Lacey, Gilmore & Bell, the City’s bond counsel to correct an error that occurred in December 2000 when E&E Specialties, Inc. redeemed Series A 1978 Industrial Revenue Bonds. At that time, as part of the Series A bonds redemption, the special warranty deed contained the wrong legal description and transferred the property pledged to secure the Series B, 1978 bonds, which had previously been transferred, rather than the Series A, 1978 bonds. In addition, the special warranty deed conveyed the property to E& E Specialties rather than the trustees of the White Family Trust. The enclosed Resolution, Special Warranty Deed, and Release of Lease are necessary to correct this title defect, which E & E became aware of when it attempted to refinance loans, which this property secures.
These documents do not affect any current and outstanding E & E Specialties IRBs or tax abatements nor do they affect the Series A or Series B 1978 bonds since all of those bonds have been previously paid off. These documents merely authorize the transfer of property back to the proper entity and clear up the title records.
Staff requests the Commission adopt Resolution 6545 approving a special warranty deed and release of lease in connection with payoff of all the bonds and exercise of the company’s option to purchase the property back from the City.
If you have any questions, please let me know.