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HomeMy WebLinkAboutEmergency RepairsL] City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 FAX 407-589-5570 July 17, 1990 Richard E. Torpy, Jr., Esq. Frese, Fallace, Nash & Torpy, P.A 930 South Harbor City Blvd. Suite 500 Melbourne, FL 32901 Re: General Development Corporation - Chapter 11 Bankruptcy Dear Rick: This is in response to your letter of July 11, 1990. The letter from you to GDC's bankruptcy lawyer is appropriate and within the direction of City Council so that we may protect the public safety by effecting emergency repairs to streets and drainage systems located within Units 16 and 17 Sebastian Highlands. At this time, I ask you not to proceed with any discussion or negotiations with GDC lawyers for their proposed lot exchange program. Certain GDC Officials have been in touch with us in an effort to negotiate an acceptable agreement for GDC to relieve themselves of the maintenance liabilities in Units 16 and 17 Sebastian Highlands. It would be my hope that GDC and the City could come to an agreement in principle and look to you to draft the necessary contract. At this point, I do not know if we will be amending, repealing or not changing the existing 1979 contract between GDC and the City of Sebastian. As you suggest in your letter, a summary of the examiner's report would be appropriate. Thank you for your response to these areas of concern. sincer y Robert S. McClary City Manager RSM/ jmt 1 0 r FRESR+ , FALLACE, NASH & TORPY, P.A. ATTORNEYS AT LAW GARY B. FRESE t .TAMES H. FALLACE CHARLES IAN NASH VINCENT G. TORPY. JR. ELISE A. SINGER RICHARD E. TORPY GREGORY S. HANSEN J. PATRICK ANDERSON WILLIAM A. GRIMM OF COUNSEL July 11, 1990 William J. Perlstein, Esq. Wilmer, Cutler & Pickering Attorneys for Debtors 2445 "M" Street, N.W. Washington, D.C. 20037 Mark D. Bloom, Esq. Greenberg, Traurig, Hoffman, et al. Co -Counsel for Debtors 1221 Brickell Avenue Miami, FL 33131 930 S. HARBOR CITY BLVD. SUITE 606 MELBOURNE. FLORIDA 32901 (407) 984-3300 PAX (407) 951-3741 t BOARD CERTIFIED IN TAXATION RE: In re General Development Corporation U.S. Bankruptcy Court Case No. 90-12231-BKC-AJC and All Related Cases Dear Messrs. Perlstein and Bloom: BOARD CERTIFIED IN ESTATE PLANNINO AND PROBATE This is to inform you that I represent the City of Sebastian with respect to the above -referenced Chapter 11 bankruptcy proceeding. I am writing this letter regarding various streets and drainage facilities located within units 16 and 17 of the City of Sebastian, which currently are the responsibility of General Development Corporation for repair and maintenance. Although there have been numerous discussions and negotiations between the City of Sebastian and representatives of General Development Corporation regarding the City's acceptance of the drainage and streets in these units, to date, no agreement for acceptance has been reached. The filing of the Chapter 11 case by General Development Corporation has, obviously, significantly delayed negotiations with respect to the acceptance of the streets and drainage in units 16 and 17 of the City of Sebastian. Further, the City of Sebastian has received no assurances from General Development Corporation that they intend, or are able, to effect emergency repairs which may, from time to time, become necessary to the drainage and streets located within these units. Accordingly, unless adequate assurances can be provided that these repairs shall be made in a July 11, 1990 Page -2- timely fashion, the City of Sebastian intends on making said emergency repairs, as they become necessary, and passing on the expense of these repairs to General Development Corporation. The City of Sebastian is extremely concerned about the safety of citizens and those persons who may from time to time traverse the streets of this community. The City feels it is imperative to have a system established, whereby emergency repairs can be conducted and the a void prolonged existence of road and other conditions which place the residents of the City of Sebastian in a dangerous situation. Accordingly, at this time, the City of Sebastian will immediately begin effecting repairs of conditions which it deems to be dangerous to the community. The City will forward bills for said repairs to General Development Corporation. Accordingly, please advise as to how this process should be conducted in order to effectuate timely reimbursement to the City of Sebastian, and comply with the general rules and orders of the Chapter 11 case. I appreciate your cooperation and assistance in this matter, and look forward to hearing from you. Sincerely, FRESE, FALLACE, NASH & 9& , -P.A. i Richard E. Torpy RET/lbg cc: Robert S. McClary, City Manager City of Sebastian . i , 0 FRESPIFALLACE, NASH & TORPY, P.A. ' ATTORNEYS AT LAW GARY B. FRESEt 930S. HARBOR CITY BLVD. JAMES H. FALLACE SUITE 5015 CHARLES IAN NASH • MELBOURNE. FLORIDA 32901 VINCENT G. TORPY. JR. (407) 984-3300 ELISE A. SINGER RICHARD E. TORPY GREGORY S. HANSEN J. PATRICK ANDERSON WILLIAM A. GRIMM OF COUNSEL Robert S. McClary, City of Sebastian P.O. Box 780127 July 11, 1990 City Manager Sebastian, FL 32978 RE: General Development - Chapter 11 Bankruptcy Dear Robb: FAX (407) 951-3741 t BOARD CERTIFIED IN TAXATION BOARD CERTIFIED IN ESTATE PT.ANNINO AND PROBATE This letter is in response to your inquiry regarding the Chapter 11 case filed by General Development Corporation. Enclosed you will find a copy of the letter which has been forwarded to the bankruptcy attorneys for General Development Corporation regarding the City of Sebastian's intent to perform emergency repairs to streets and drainage located in units 16 and 17 of the City. Additionally, I have enclosed a portion of the examiner's second interim report regarding the potential for a lot exchange program as a method for General Development to satisfy their obligations to lot owners of GDC property. In response to the examiner's report, I have also prepared a second letter to be forwarded to GDC's bankruptcy counsel regarding our desire to enter into negotiations regarding a lot exchange program with the City of Sebastian. I have enclosed a draft of this letter for your review. As you will see, it is very general, simply stating that we would like to engage in negotiations regarding this concept as a method for satisfying GDC's obligation to the City of Sebastian. Upon your review of this letter, if it meets with your approval, I will forward same to the bankruptcy counsel and we can begin negotiations on this concept. I have also received the examiner's first interim report with respect to management issues, cash management procedures, debtor in possession financing, contract and mortgage receivables, lot exchange programs, and coordination with special masters. My review of the first interim report only reveals that General AV • Robert S. McClary, City Manager City of Sebastian Page -2- Development Corporation has not thoroughly realigned their programs for the purposes of accomplishing a successful reorganization. Many of the questions and issues addressed by the examiner were only discussed in vague terms, and most often did not have final conclusions. I have just recently received the examiner's second interim report and will forward a copy of my review to your office within the next ten (10) days. As I mentioned previously, however, I have attached a copy of the lot exchange program, which was addressed in the second interim report. The examiner's reports encompasses approximately 300 pages of text and exhibits. I would be happy to make a copy and forward this entire document to your office, if you wish. Otherwise, I will simply provide you with a summary after I have reviewed all the information. If you have any questions, please let me know. Sincerely, FRESE FALLACE, NASH & TORPY, P.A. Richard E. Torpy RET/lbg Enclosures