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Home My WebLink AboutRESOLUTION 1977-53 ~•. a.., CITY OF KENAI RESOLUTION NO. 7?-53 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PRO- VIDING FOR WAIVER OF PENALTY AND FORECLOSURE ACTION RELATIVE TO PROPERTIES SUBJECT TO WATER AND SEWER ASSESSMENTS OWNRD BY CROW!J DEVELOPERS . WHEREAS, Crown Developers have petitioned the Council by letter dated March 30, 1977 and incorporated herein by reference for waiver of penalty and foreclosure action on water and sewer assessment payments due April 1, 1977, on their properties, and WHEREAS . such a waiver of penalty and foreclosure action appears appropriate under the circumstances due to the large number of parcels involved. NOW , THEREFORE , BE IT RESOLVED by the Council of the City of Kenai, Alaska, that Crown Developers are hereby granted a waiver of penalty and fore- closure action until August 30, 197?, for all properties held in their name as of January 1, 1977 . PASSED by the Council of the City of Kenai, Alaska, this 6th day of April, 197?. ATTEST: S C. Peter, City Clerk ~ ~a March 30, 1977 -~ CROW] AEVELOPERS 345 47est 6th, Suite 202 Anchorage, Alaska 99501 City of Kenai Box 580 Kenai, Alaska 99611 Attn: Mr. John Wise, City Manager Dear Mr. Wise: Please consider this a formal request to defer payment on assessments due on our lots located in PRommsen Subdivision and an adjoining 77 acres. Main points for this request are outlined as follows: (1) We formed a partnership with Bob Dow, Sr. dba B.O.B.,Corp. to develop Mommsen Subdivision and ad3oining 77 acres. We thereby assumed his liabilities but a title report at that time failed to show a law suit with a Lis Pendens or the pending water and sewer assessments. (2) The Lis Pendens served to cloud the title and stopped any further development. No sales means no revenue. (3) Mr. Bob Dow, Sr., has now died. (4) The law suit is scheduled to go to court on May 2, 1977., thereby clearing title and allowing us to resume develop- ment. _ (5) Small Business Administration has a loan outstanding and has agreed to give us a moratorium on payment of install- ments thru September 10, 1977 - per attached letter to S.B.A. and their reply. Once we obtain clear title, we propose to sell existing improved lots and bring all creditors current, then improve all unimproved land. We have builders ready to build. The result will be increased housing and increased tax revenues. Construction alone will give some benefit to the Kenai community. We request a deferment of assessments and that the 10% penalty not be applied through August 30, 1977. This deferment would allow court action and thus with a clear title we could either borrow the funds or sell sufficient lots to bring our account current. In the extreme instance the May 2nd court hearing does not remove the cloud !~ -- 1~ - - - ----- - ----- ---- E ~__ I~ -----------T -- __ - ~ ~._- --~- _ _ ~ --~ ,~.., r-. City of Kenai -2- March 30, 1977 on the title, the period from May 2 to August 30. would give us adequate time to liquidate other assets. In any event, if the City can give us some additional time, we will bring our account current. V;e/fr~~y.truly yo/urs CROri~l DEVELOPERS Kenneth R. Padgett KRP/t Enclosures ~~ .~1Cl::::r~r ~ i, ~ '77 Small 'Yuri^r^. ~ Acirit~~;^.rrztion Anchoraf•e L~•;• el l.t_utc•r, :'::.~t~ .'t? Attention : ''.r. rcla:in ". ;)reycr Gentlemen: --~ - ~ --_ -a--..~ Re£erence:SBA Loan X352009-0002 B.O.B. Corporation Pursuant to our conversation of this date I submit the fo'tlowing information for your consideration. In `~ovenber, 1975. Crown Developers (hereinafter referred to as Crown) entered into a limited partnership with B.O.B. Corporation (throu~-h Bob Dow, Sr.) on the basis of a one month old title report zhowins-, i3.0.R., Corporation i~r title. for the purchase of the F:enai property covered by your SBA loan referertcc'cl above. (i+r.. now. Sr. •aas ill at that time and has since become both mentally and physic- ally incapacitated.) Crown was to bc~ the general partner and B.O.B. Corporation t!ie limited partner. Crown was to make the SBA payments. nay ot:~er obligations due. and continue with the development and eventual sale of. the propeer~cy In the suimner of 1976 Crown sold three lot : to ..°tn]? Con3t-ructio+~ •~'to n~itai.nccl a title report which showPCT for the firKt tiMQ a iii nende;~~s. Thp basis of the lis pendene was a cti:~a,~ reesten~ u.:Cw~.~en ~~~urt. .,uiluers and B.O.I3. , Corporation which hat! arisan in =1ie su~u7er cif 1975. In the interest of carrying on the business with as little interruption as nosaible, Craven decided to attempt a settlPmer.t with S'rort ^ui.lders. Short Builders has twice a;;reect to a settlement and then backed out when the offer was met. They have subsequently raised their claim from an oripiaal $20,~~9 to ^6q,000. ThA Matter is in the courts at this time. In t'rr ^:eantir~~ gown has spent nearly $19~,BOG in payments, taxes anti local i'ees in atteu:atia,T t.~, scttl.c this matter. Bepi.nninfc in September. 1976, Crown could no longer keep up with t1tP f. inancial loaf and the SBA payments became delinquent. Stoll Construction filed suit against Crown and others for $30,000 in losses ant: $~~^,,~04 in punitive darnaj;es. Crown requested the court to allow Crown to ;+ost a bond ant'. release 3 lets to Stoll Construction. The court granted the release. Short Builderu appealed to the Supreme Court, whic'n last week dismissed the ai~peal. Our attorney advisee t'tat the case will be. tried in the early spring . 0~ _ _ _ T~ r ~~ Sma11 itusiness Aclr:iinistration -2- January 18, 1977 Due to the slow process in tryin;; to het our case before att over- crowded court calendar. and due to titp immense amount of funds Crown has paid out atteniptinY to cie~rnd what aec~rns to be a frivolous clai~: by ~~raar. co'~o keeps increasing; demrui4s, we ask your coonerati~n in .~s:;i~ti~n ''m•r~ i~~ '~rin~-inp t'iis problem to a~ c~~nc L~i:a io:~ . t+ie ask a deferral of payments until August 30, 1977. at which time the amount due will be approximately X3:1,000. That should give us adequate time to have had the necessary court dates and a reasonable time for t'te .j~±doe to rAnder a final decision. It is our desire to cooperate with you in any manner we can. We appreciate the consideration you have given our problem. Very truly yours, CR061?1 DT:V~LOPT•.RS K. J. Padgett KJP/t f ---------7_ --~ --- ---_ -._ _ _ _ _ _ ~ _ h ! ~~wl sit 1.1.5. SMAt_L BU51f~k`.5 .aJMINISTRATION •.. ~. ,,d~ 1u~ hur.i: ~ 1 . r .I r r.drr ;/\ ~ `f. ~ ~7`" ~O 11111. 1\. 1.~1. 1~.•~.~~. ~ January 24, 1977 Ms. K. J. Padgett Crown Developers 345 W. 6th Ave., Suite "103 Anchorage, Alaska 99501 Re: B.O.B. Corporation DL 352 009 00 02 Dear Ms. Padgett: As rtEquercted in your letter of January 18, 1977, we have deferred the installments on referenced loan due September 10, 1976 through August 10, 1977 to September 10, 1977. ~ On September 10, 1977, 13 installments at 52,750 totaling 535,750 will be due. Regular monthly installments will resume on October 10, 1977 in the amount of $2,750 each. All other terms and conditions of the; loan remain unchanged. ., We trust this deferment will provide the financial relief you need and that you will be able to resume payments as scheduled. Sincerely, Bettye F. Graham ~ Loan Servicing Assistant 41,puUUy~ v r~~ u d z W6 . ~.tr~. I ~' ~_i _~ - ~ ..