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HomeMy WebLinkAboutMemorandum - Colony Plaza/Conveyance of Units by FDIC and Release of City Demolition Lien • FO 111 NORTH R LAW 111 NORTH ORANGE AVENUE, SUITE 1800 ORLANDO, FL 328012386 FOLEY & LARDNER LLP P. O. BOX 2193 ORLANDO, FL 32802 -2193 407.423.7656 407.648.1743 WWW.FOLEY.COM 407.244.3248 MEMORANDUM CLIENT-MATTER NUMBER 0203770790 TO: The Honorable Mayor and City Commissioners of the City of Ocoee FROM: Paul E. Rosenthal, City Attorne CC: Rob Frank, City Manager DATE: March 15, 2011 RE: Colony Plaza / Conveyance of Units by FDIC and Release of City Demolition Lien I was contacted today by Mary Beth Massingill at FDIC regarding 3 Units at Colony Plaza which are owned in fee by FDIC. She called for information regarding the status of the Project. During the course of the conversation, I advised that the City might be interested in acquiring the Units, but that FDIC would need to pay any back taxes. Following the conversation, I received the attached email offering to convey the FDIC units to Ocoee and pay the back taxes in consideration for Ocoee releasing FDIC from any obligation under the Demolition Lien with respect to their ownership of the Units. Ms. Massingill would still need to get this approved by her superiors at FDIC. Each unit owner is jointly and severally liable for the full amount of the Demolition Lien. We have previously research the question of providing partial releases in exchange for the conveyance of a Unit and concluded that such action would not adversely impact the ability of the City to pursue the full amount of the lien against others. Additionally, a legislative solution we are working on would require that Ocoee own at least one Unit. The FDIC proposal would appear to be a good opportunity for the City to acquire (for the first) an ownership interest in the Colony Plaza. Further, we would be open to recommending that the City accept any similar offer to convey Units unencumbered by taxes and fee or any mortgages. ORLA_1707826.1 FOLEY FOLEY & LARDNER LLP It respectfully is recommended that the City Commission accept the proposal of the FDIC, authorize the release of FDIC from any indebtedness associated with the demolition lien without reducing the total amount of the indebtedness thereunder, and authorize the Mayor and City Clerk to execute such documents as may be necessary to accomplish the foregoing, subject to the review and approval of the City Attorney. 2 ORLA_1707826.1 Colony Plaza condominiums Page 1 of 1 Rosenthal, Paul From: Massingill, Mary B. [mmassingill @FDIC.gov] Sent: Tuesday, March 15, 2011 4:26 PM To: Rosenthal, Paul Cc: Moran, Tom; Robert, Victor; Pietri, Cesar A. Subject: Colony Plaza condominiums I have the tax parcels for the three condos formerly owned by Guaranty Bank of Tallahassee, now owed by Federal Deposit Insurance Corporation as receiver for Guaranty. Tax parcels are: 30- 2228 - 1452 -02380 30- 2228 - 1452 -02430 30- 2228 - 1452 -05060 Please confirm our conversation of this afternoon. As I understand, the City of Ocoee will accept a quit claim deed for the tax parcels listed above if we agree to pay all back taxes. In addition, the City of Ocoee will release FDIC from the demolition lien. If correct, I will proceed with presentation of case to higher authorities for approval. Thanks again for your time. With your cooperation we may complete this by 3/21/11. Mary 'Beth/ Mas* nkjab Resolutions and Receivership Specialist FDIC Dallas Field Office ORE and Other Assets (DRR) 97 mmassingill@fdic.gov 3/15/2011