HomeMy WebLinkAbout1993 05 25 Taxes Due Atty correspondenceGARY B. FRESEt
CHARLES IAN NASH*
VINCENT G. TORI'Y..TR-
RICHARD E. TORPY
GREGORY S. HANSEN
J. PATRICK ANDERSON
LAURA L. ANDERSON
CHARLES A. SCHILLINGF,R
WILLIAM A. GRIMM
OF COUNSEL
FRESE. NASH & TORPy, P -4 -
ATTORNEYS AT LAW
May 25,
George R. Kulczycki
Director of Community Operations
General Development Corporation
5240 Babcock Street, N.E., 1202
Palm Bay, FL 32905-6099
930 S. HARBOR CITY BLVD.
SUITE 506
MELBOURNE. FLORIDA 32901
(407) 984-3300
PAX(407)951-3741
t BOARD CERTIFIED IN
TAXATION
CERTIFIED IN
ERTATE PI.ANNINO AND PRODATE
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Re: General Development Corporation�. 01rn
Our File No. 90-5496 -` 11, 0t '
Dear George:
This letter is to follow-up our telephone conference of May 14,
1993. We have received the adjusted figures from the Indian River
County Tax Collector representing the total tax owed for those
parcels which were transferred to the City of Sebastian on March
27, 1992.
According to the Tax Collector, a total of $11,613.79 is owed for
taxes due for the first three months of 1992. Accordingly,
pursuant to the terms of our Settlement Agreement, we are making a
request that General Development Corporation forward to the City of
Sebastian 50% of the outstanding taxes due. Specifically, we are
requesting a check in the amount of $5,806.89 for your share of the
taxes.
Due to the fact that these taxes are already delinquent, we would
request that you respond immediately by forwarding a check to the
City of Sebastian.
Please make formal arrangements with regard to payment of these
funds with the City's Finance Director, Marilyn Swichkow.
In a related matter, as we discussed, there are several other
parcels which are still in the process of being transferred to the
City of Sebastian. Obviously, there will be taxes due on these
properties for the entirety of 1992, as well as a portion of 1993.
Pursuant to our discussion, General Development Corporation should
be responsible for paying all of these taxes due to the fact that
the delayed transfer has not been caused by the City of Sebastian.
George R. Kulczycki
Director of Community Operations
General Development Corporation
Page -2-
If you are in agreement with this position, please let me know so
that the closing documents can be prepared reflecting that your
corporation will be paying all outstanding taxes as of the date of
closing.
I look forward to hearing from you with regard to this matter. If
you have any questions, please let me know.
Sincerely,
FRESE, NASH & TORPY, P.A.
Richard E. Torpy
RET/lb
Enclosures
cc: .Robert-Sf--McClary, City of Sebastian
Bruce Cooper, City of Sebastian
MAY 12 '93 03 35PI.1 • 3
March 27, 1992
General Development Corporation
as Debtor -in -Possession under
U.S. Bankruptcy Court Case No. 90-12231-RKc-AJC
2601 South Bayehore Drive
Islami, FL 33133
Re: Settlement Agreement (the "Agreement") between
General Development Corporation, as Debtor--in-
Possession Under- U.S. Bankruptcy Court Case No.
90 -12231 -BFC -AJC ("GDC") and the City of
Sebastian !"city" 1
Gentlement
You and ae believe that no documentary stamp taxes or
surtaxes ("Taxes") are payable upon the deed of conveyance for
the referenced transaction (the "Deed") because the property
conveyance under the Agreement is a transfer pursuant to GDC,s
plan of reorganisation.
Under the terms of the Agreement, it is the obligation of
GDc and the City to each pay one-half of the Taxes. This letter
is being delivered at the closing under the Agreement to
reconfirm this obligation and to acknowledge the agreement
between ourselves and you that if at any time it is determined
that Taxes are due upon the deed, each party shall immediately
pay one-half of same upon such determination, together with one-
half of all interest and penalties imposed in connection
therewith.
Please acknowledge your agreement with the foregoing by
signing below.
Very truly yours,
CITY OF SEBASTIAN
ACKNOWLEDGED AND AGREED`71
OBERBECK, Vice mayor
:
GENERAL DEVELOPMENT CORPORATION,
as Debtor-in-Posgession under U.S.
Bankruptcy Court Came No. 90--12231-B.RC-AJC
92
GORDON J. PFERSICH,
Executive vice President