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Home My WebLink AboutPO 5996: 3510 LAKE ARTHUR DRIVEinteroffice MEMORANDUM To: Mayor, City Council, and City Manager ~~ From: Valecia R. Tizeno, First Assistant City Attorney Date: April 2, 2009 Subject: P. O. No. 5996; Council Meeting April 7, 2009 Attached is P. O. No. 5996 rescinding Ordinance No. 09-11 and awarding a bid for the sale of 3510 Lake Arthur Drive. VRT:gt Attachment z.po5996_memo P. O. No. 5996 04/02/09 gt N0. AN ORDINANCE RESCINDING ORDINANCE N0. 09-11 AND AWARDING A BID FOR THE SALE OF 3510 LAItE ARTHIIR DRIVE WHEREAS, pursuant to Ordinance No. 09-11, the City of Port Arthur awarded a bid to Shrona Alpough for the sale of property located at 3510 Lake Arthur Blvd; and, WHEREAS, the bid packet specifically provided a notice indicating that that a storm sewer drain pipe was located under the home and that the house was being sold in an "as is, where is" condition and access to all documentation relating to the condition property; and, WHEREAS, the bidder signed the required notice prior to submitting the bid (attached hereto as Exhibit "A"); and, WHEREAS, Ms. Alpough also submitted a letter of approval from Envoy Mortgage dated January 27, 2009, indicating that it would provide financing for the home and the bid was awarded to her on February l0, 2009 (a copy of said letter is attached hereto as Exhibt "B"); and, WHEREAS, after the bid was awarded, a representative from Envoy Mortgage verbally contacted the First Assistant City Attorney and the realtor indicating that they would no longer be able to provide any financing for the home; and, z.po5996 WHEREAS, the bid packet required that the entire sale price must be received by the City in a cashier's check or certified check within 60 days of the bidder receiving notice from the City that the bid has been awarded; and, WHEREAS, on March 13, 2009, Ms. Alpough sent a letter to the City indicating that she wishes to revoke her bid of $86,500 (Exhibit "C"); and, WHEREAS, the bid tabulation indicates that there are four additional persons or entities that submitted bids for the property (a copy of the bid tabulation is attached hereto as Exhibit "D"); and, WHEREAS, the next highest bid was submitted by Carrie Davis, in the amount of $78,000; and, WHEREAS, Ms. Davis was originally approved for financing by Envoy Mortgage; however, as a result of Envoy's revocation, she has provided a letter from her financial institution indicating that she has the ability to pay cash for the property. NOW THEREFORE, BE IT ORDAINED BY THE CITY COIINCIL OF THE CITY OF PORT ARTHIIR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That Ordinance No. 09-11 is hereby rescinded. Section 3. That the City Council awards the bid for the sale of the property to the next highest and responsible bidder, Carrie Davis in the amount of $78,000. z.po5996 Section 4. That the City Council authorizes the City Attorney to proceed with the closing process and authorizes the City Manager to execute a Special Warranty Deed and other instruments necessary for the sale of the property in a form to be approved by the City Attorney. Section 5. That the Special Warranty Deed shall be delivered once the $78,000 is paid in full via the closing process. Section 6. That a copy of the caption of this Ordinance be spread upon the Minutes of the City Council. Section 7. That this being an Ordinance amending an Ordinance which does not carry a penalty, and does not require publication, it shall take effect immediately from and after its passage. READ, ADOPTED AND APPROVED on this day of A.D., 2009, at a Council Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: City Council NOES: MAYOR z.po5996 ATTEST: CITY SECRETARY APPROVED AS TO FORM: ~~~ ~~~ CITY ATTORNEY ~pN SEM+/aL~ OF) APPROVED FOR ADMINISTRATION: CITY MANAGER z.po5996 EXHIBIT '~A" NOTICE THE CITY OF PORT r~RTHUR IS PROVIDING NOTICE TO ALL BIDDEF.S THAT THE PROPERTY- LOCATED AT 351D LAKE ARTHUR BLVD.; 1VAS PREVIOUSLY THE SUBJECT OF A L.4W'SUIT F1LED ON SEPTE~lEER 21, ?000, IN CAUSE N0. B-1h3;833, b1OH,~MtitAD, ET AL V. NICHOLS CCTV OF PORT ARTi1IJR, ET :\L, IN THE 6DT" DISTRICT COURT Or JEFFERSON COONTY, TEtAS. THE PLAINTIFFS ALLEGED THAT THE HO`'IE ti~`AS PLACED DIRECTLY ABOVE .A STORM SEWER DRAIN PIPE. THE PLAINTIFFS ALLEGED PROPERTY DA11:~CE AND PERSONAL TNJURiES. r1S A RESULT OF Tf{E LOCATION OF THE PIPE. THIS CASE ~~',\S SETT LED PL'RSU,4NT TO AN AGREED .JUDGI~tE~'T, W`IIICH tiVAS SIGNED ON FEBRUARY 3, ZU06. AS A RESULT; THE CCTY OF PORT ARTPIUR ~b'AS DEEDED THE PROPERTY. THERE IS NO OT:ILR LITIGATION PENDING OR THREATENED AGAINST SELLER THAT MIGHT AFFECT SELLER'S ABILITY TO SELL THE PROPERTY. THE CITY OF PORT ARTHUR IS SPECIFICALLY PROVIDING ALL POTENTIAL BUVF,RS OF THE RESIDENCE AT 3510 LAKE ARTHUR BLVD. WITH NOTICE THAT A STORN~I SEWER DRAIN PIPE IS LOCATED DIRECTLY' UNDER THE HOUSE. THE PROPERTY WILL BE CONVEYED TO THE BUYER IN AN "AS iS, ~~-HERE IS" CONDITION; WITH ALL FAULTS. ALL ~YARR.4NTIES, E?kCEPT THE 1\'ARRANTY OF TITLL; ARE DISCLAi~IED BY THE CITY OF PORT ARTHUR. ~~ ~ ~~ ~ SIGN.A RE , DATE ~\ Page 9 of 9 EXHIBIT ~~B" January 27, 2009 To whom it may cmrcern: Regarding Loan Approval: Sltrona Alpough & Lela Hannon This pre-approval letter is issued to cet~tify that the above referenced. individuals have been pre-approved for tmancing by Envoy Mortgage. Our approval is based on the information supplied and. is subject to verification. This approval is contingent upon receipt by Envoy Mortgage of an acceptable real estate contract, appraisal, title commitment, and survey, and will remain in effect as long as the conditions upon which the approval was granted, such as employment, income, credit history, etc. do not change for the negative. Should you have any questions please contact me directly. Sincerely, r ~~~ /~ ' ___ _ _ __ /. _S ~' /~`L i ~` ~ ..~` _____ i 1 rent Lawson Mortgage Banker Envoy Aortgage 73 Si78G03 :.~ _, 5770GC~ ~i-,e~i~n lygc ccr SiG04i'ectfie,mei Road,Su z32ll ~ llu~_ton fX 77Ua . __ _..:. ..:. .. ~lllYlf~ll EXHIBIT "C" March 11, 2009 M ~_2 1 ~ 2U09 Val Tizeno Asst. City Attorney City of Port Arthur, TX P.O. Box 1089 Port Arthur, TX 77641 RE: 3510 Lake Arthur Ms. Tizeno: ~ r~ -°~3 §`p 7q,'i, ~°~ x'=14$ I, Shrona Alpough, was approved for a loan but due to the circumstances of a storm drainage pipe running underneath the property, the lender was not willing to approve the loan. Therefore, I am revoking my bid of $86,500. Should you have any questions, you may contact me at 409.548.1928. S~ncerely, ~~~~c~~c~.~ I Shrona Alpough EXHIBIT ~D~' CITY OF PORT ARTHUR, TEXAS BID SHEET DESCI2IPTIONi SALE OF 3510 LAKE ARTHUR DRIVE llA'I'E: JANUARY 28, 200') NAME OF BIDDER NAME, OP' BIDDER NAME OF BIDDER NAME OF BIDDER NAME OF BIDDER SHRONA ALPOUGH CABBIE DAV1S CALVIN WALKER LOUIS M. SALDANA IDEAT. REINVESTNIF.NTS ITEM BI'D PRICE BID PRICE B[ll PRICE BID PRICE BID PRICE 3510 LAKE ARTHUR DRIVE $ 86,500 $ 78,000 $ 70,000 $ 63,498.98 $ 61,500 LETTER OF APPROVAL YF_,S YES YES YES YES LOCATION PORT ARTHUR, TX PORT ARTHUR, TX BEAUMONT, TX NEDERL,AND, TX BEAUMONT, TX DATE: l ~~?~yI PURCHASING MANAGER: SIlAV/NA TUBBS