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Home My WebLink AboutPO 5514: ICON BUILDERSinteroffice MEMORANDUM To: Mayor, City Council & City Manage~_~ From: Mark T. Sokolow, City Attorney~ ~--~ ~-- Subject: ?. O. No. 5514 Council Meeting March 29, 2005 Date: March 24, 2005 Attached is P. O. No. 5514, an Ordinance as it pertains to ICON Builders, LLC. MTS/bp Attachment cc: Ken Whitlow VIA FACSIMILE (409) 838-8888 Ike Akabari VIA FACSIMILE (409) 721-6603 Lester Sanford VIA FACSIMILE (409) 727-8871 z.po5514 .memo P. O. No. 5514 03/24/05 bp ORDINANCE NO. AN ORDINANCE AS IT PERTAINS TO ICON BUILDERS, LLC WHEREAS, the City Council approved Resolution 05-091, authorizing the release of liens as it pertains to the ICON Builders, LLC development; and WHEREAS, the City Manager was authorized to sign release of liens to purchasers of lots that plan to build homes on the condition that the purchaser complies with Section 4.23 of the deed restrictions which requires the purchaser to commence construction within three (3) year of the date of purchase and to complete the construction within two (2) years of the purchase; and WHEP~AS, the City has received a letter from the Title Company as denoted in Exhibit "A", as it pertains to the release signed as denoted in Exhibit "B"; and WHEREAS, the City desires to promote the development of the subdivision. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Manager is authorized to execute new release of liens without the contingency language as z.po5514 to Lots 9, 22, 27, 28, 29, 40, 42, 43, 44, 45, 47, 50, 53, and 55 of Greenway Pointe Estates, Port Arthur, Texas and for six additional lots for a total of twenty, in substantially the same form as denoted in Exhibit "C". Section 3. That no additional releases of liens will be executed until at least eight homes are built. Section 4. That if ICON defaults in building, or have built by a third party prospective home buyers, fifty-six (56) single family residences in Greenway Pointe Subdivison by December 31, 2013, he will repay the City a pro-rata portion {number of homes not completed/56) of $160,000 on January 1, 2014, with accrued interest of 2% per annum from the date that he received said funds. Section 5. That if the home purchasers do not complete the homes by December 31, 2013, ICON Builders, LLC, will still be required to either purchase back the lot and complete the construction or pay a prorata portion of $160,000 with interest. Section 6. That a duly authorized representative of ICON Builders, LLC will sign this ordinance agreeing to the terms hereof. Section 7. That a copy of the caption of this Ordinance shall be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this __ day of , A.D., 2005, at a Regular Meeting of the City z .po5514 Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor ' Councilmembers ; ; ; NOES: OSCAR ORTIZ, MAYOR ATTEST: EVANGELINE GREEN, CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER AGREED TO: ICON BUILDERS, LLC z.po5514 EXHIBIT "A" ~,~,~,. z". zl~,.,c, ,,., z,~A,~', 3~ TITLE NO z7tl z 'PORT ARTHUR ABSTRACT AjVD TITLE COMPANY ESTABLISHED 1596 PIIONE: 409-727-8871 2.030 TURTLE CREEK DRII~ FAX: 409-727~3954 PORTARTI. tUR, TEX,4S 77642 March 24, 2005 ~. Mark T. Sokolow City Attorney for the CiD' of Port Arthnr P,O. Box I089 Port Arthm', Texas 77641-1089 VIA FACSIMILE: (409) 983-8124 Re: Cit..- of Port g. rthxuc Deed of Trust from Icon Builders, LLC et al Dear Mca-k: Ken Whitlow and Vicki Robison have asked me to get back to you, on their behalf., about several matters relating to the above-referenced Deed of Trust, and the recent Release of Lien applying to several of the lots included in it. First, I believe the Deed of Trust in que5tiot~ is recorded under County' Clerk's File No. 2004042443 of the Real Property Records of Jefferson Count>,, Texas. I have included a copy of the recorded Deed of Trust for you, in case you do not have one readily available. Second, Lot No. 9 also needs to be released at this time. I believe it was listed (between Lot Nos. 29 and 22) on Vicki's payoffrequest she faxed to the City on March 15, 2005. Finally, the 'contiugent' language included in your draft of the Release is problematic. It appears to give the City the right to later reassert their lien against a Lot or Lots which had already otherwise been 'released' from the Deed of Trust lien. I doubt that is what the City intended; doing so would compromise the priority.- of other interests created after the Release was given. In order to confirm our thoughts about it, we ran the 'contingent' language by several other parties (attorneys, lenders and tide officers). They categorically expressed the same concerns which we have. We are not comfortable issuing a title policy without an exception relating to the City's lien and~/or the 'contingent' language in the Release. Based on our research, I do not think any other title company will do so either. We can appreciate the City's concerns, and stand ready to do what we cai to acco:rmaodate you. IfI can be any help, or you need some input about the language you wish to MAr,. 2~. 2:):.:~ '~;:25A",/ SE TX :i-_E ~0. 2701 include in the Release, please give me a call. Very i~'uly yours, PORT~ I'HUR ABSTRACT & TITLE CO. Lester Sar ttomey JLS encl. EXHIBIT "B" RELEASE OF LIEN STATE OF TEXAS COUNTY OF JEFFERSON WHEREAS, the City of Port Arthur, a Municipal Corporation duly organized under the laws of the State of Texas, is the owner and holder of a lien or liens upon and against the property described below; said lien or liens being more particularly described as a deed of trust, File No. 2003006920 as authorized by Ordinance No. 02-54, Ordinance No. 04-16, and Ordinance No 05- 11. Pursuant to Resolution NO. 05-091, the City hereby releases the above- described liens heretofore existing against the following lot or lots: to- wit: Lot N~h~lbers 43, 47, 40, 53, 50, 44, 45, 27, 28, 29, 22, 42, and 55 of GREENWAY POINTE ESTATES, a Subdivision of Port Arthur, Jefferson County, Texas, as the same appears upon the map or plat thereof, on file and of record, in Vol. 17, page 341, Map Records of Jefferson County, Texas. This release is contingent on ICON Builders or his assignee complying with Section 4.23 of the deed restrictions which requires the owner of the lot to commence construction of a single family residence to City Code within three years and to complete the construction within two years, thereafter. IN WITNESS WHERETOFORE, the City of Port A~thur has caused by these presents to be executed by the City Manager, Stephen Fitzgibbons, duly authorized, and attested by its City Secretary, Evangeline Green, this Iq day of ~7~ b~ , A.D., 2005. THE CITY OF PORT ARTHUR S~e~hen FitzgiBbons, City Manager Evangeline Green, City Secretary APPROVED AS TO FORMs Mark T. Sokolow, City Attorney z.pr 13063_armnd~d ACI~NOWLED~MENT THE STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME, the undersigned Notary Public, on this day personally appeared Stephen Fitz~ibbons, City Manager of the City of Port Arthur, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deeds of the City of Port Arthur, for the purposes and considerations therein expressed, and in the capacities therein stated. ~~,~0~.My HAND AND ,EAL OF OFFICE, this ~day of A~REED TO: ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME, the undersigned Notary Public, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and considerations therein expressed, and in the capacities therein stated. YEN UNDER MY HAND AND SEAL OF OFFICE, this l ~ ~day of ~~"~i11~2,//' TONYA SUMMERLINI The State of Texas z.pH~i~~ Notary Public State of Texas, I%.~/ Commission Expires I I'~oF~,' APRIL 22, 2007 j AFTER RECORDING RETUI~N TO: CITY OF PORT ARTHUR Legal Department P. O. Box 1089 Port Arthur, Texas 77641-1089 z.pr13063_attended EXHIBIT "C" STATE OF TEXAS COUNTY OF JE~-mRSON WHEREAS, the City of Port Arthur, a Municipal Corporation duly organized under the laws of the State of Texas, is the owner and holder of a lien or liens upon and against the property described below; said lien or liens being more particularly described as a deed of trust, File No. 2003006920 as authorized by Ordinance No. 02-54, Ordinance No. 04-16, and Ordinance No 05-11. Pursuant to Ordinance No. , the City hereby releases the above-described liens heretofore existing against the following lot or lots: to-wit: Lot Numbers Lots 9, 22, 27, 28, 29, 40, 42, 43, 44, 45, 47, 50, 53, and 55 of GREENWAY POINTE ESTATES, a Subdivision of Port Arthur, Jefferson County, Texas, as the same appears upon the map or plat thereof, on file and of record, in Vol. 17, page 341, Map Records of Jefferson County, Texas. IN WITNESS WHERETOFOI~E, the City of Port Arthur has caused by these presents to be executed by the City Manager, Stephen Fitzgibbons, duly authorized, and attested by its City Secretary, Evangeline Green, this day of , A.D., 2005. THE CITY OF PORT ARTHUR BY: Stephen Fitzgibbons, City Manager ATTEST: Evangeline Green, City Secretary APPROVED AS TO FORM: Mark T. Sokolow, City Attorney z. po5514, exhibit, c ACKNOWLEDG~4ENT THE STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME, the undersigned Notary Public, on this day personally appeared Stephen Fitzgibbons, City Manaqer of the City of Port Arthur, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deeds of the City of Port Arthur, for the purposes and considerations therein expressed, and in the capacities therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 2005. NOTARY PUBLIC IN AND FOR THE STATE OF TEXAS AGREED TO: ICON BUILDERS, LLC BY: z.po5514, exhibit .c