By Greg Grisolano
ggrisolano@joplinglobe.com
LAMAR, Mo. — Citing a failure to proceed with a condemnation hearing for the former O’Sullivan Industries plant, the property’s mortgage holder has filed a motion to dismiss the city of Lamar’s lawsuit seeking to acquire the land and building.
The attorney for Wachovia Bank stated that the pending action “casts a cloud upon the title” to the property and may cause interested buyers to back off.
“The subject property has stood blighted for more than 18 months; more than a year has passed since the city authorized the acquisition of the subject property; and this action has been pending for more than five months with no substantive action whatsoever,” the motion stated.
The motion requests that the suit be dismissed with prejudice, meaning it could not be filed again, and that the city pay Wachovia’s attorney fees, costs and other unspecified damages.
David M. Fedder, a St. Louis attorney representing Wachovia, did not immediately return a phone call seeking comment Wednesday.
The city filed a motion in December of last year to obtain the property via eminent domain, according to court records. City Administrator Lynn Calton said those efforts were initiated to advance a sales agreement between the city and a developer, 1900 Gulf Street Partners LLC, of Dallas, Texas.
As for the court hearing, “We’ll have to wait and see if they’re successful in (getting the suit dismissed),” Calton said. “Unless the judge dismisses with prejudice, we can refile.”
A hearing on the matter had been scheduled in February, but Calton said the city requested a continuance.
“We just wanted to work out some issues with a potential developer,” he said. “Those issues are still pending.”
Calton deferred to Mayor Keith Divine to discuss those matters. Divine did not return messages left at his home and on his cell phone Wednesday.
Calton said the city previously offered $1.1 million to purchase the O’Sullivan property outright, based on an appraisal of the land. Calton said Wachovia’s own appraisers estimate the value at $4.5 million.
“It’s quite a spread (in value),” he said.
O’Sullivan Industries closed its plant in 2007, leaving its more than 700 workers in Lamar unemployed. The workers made ready-to-assemble furniture, and the company was one of the region’s largest employers.
There was promising movement in late 2007, when Polymer-Wood Technologies, based in Dallas, Texas, proposed using about half of the 1.2 million-square-foot plant to build garage doors. The company said it would hire as many as 475 people.
O’Sullivan had planned to sell its building to Structured Equity Advisors, an investment company in Newport Beach, Calif., for $4 million. The investment company then would lease part of the building to Polymer-Wood for its operation.
That deal was put in limbo after O’Sullivan terminated its agreement with Structured Equity Advisors.
O’Sullivan alleges in a separate lawsuit that Structured Equity Advisors delayed closing on the real-estate deal. The company seeks $1.5 million in “earnest” money from Structured Equity Advisors.
Depositions are being taken in the federal case between O’Sullivan and Structured Equity Advisors, with trial set for July 6.
Besides O’Sullivan and Wachovia Bank, parties named as defendants in Lamar’s lawsuit include Wilmington Trust Co., the creditor in the mortgage transaction, and Barton County Collector Frances Cato. The petition explains that Cato was named because taxes are owed on the property. The petition also seeks appointment of three commissioners to assess whether any damage would be caused by condemning the property.
Wachovia hearing
A hearing has been set for 1 p.m. Monday, June 8, in Judge James Bickel’s division of Barton County Circuit Court regarding the motion by Wachovia.
Local News
Wachovia seeks dismissal of suit involving former O’Sullivan plant
- Local News
-
-
City wants to buy weather radios for those without
Phil Jones had been working on a construction project outside his house all day on May 22 and was unaware that a tornado watch had been issued. Once he was inside, though, his weather radio went off, and he learned that a warning had been issued.
-
Cold air headed this way
The Arctic front that passed over Missouri this morning will bring dangerously cold temperatures to the region tonight and Saturday.
-
Miami, Okla., man dies along I-44
A 27-year-old Miami, Okla., who appeared to be walking along I-44 in an attempt to get help after wrecking his car, is dead after being hit by a pickup truck.
-
Mo. presidential primary sets low mark in turnout
Just 8 percent of Missouri’s registered voters cast ballots in this week’s presidential primary.
-
Okla. court upholds man’s life sentence in deaths
An Oklahoma appeals court has upheld the life in prison sentences of a man convicted of two counts of first-degree murder for the shotgun slayings of two men at a Sperry residence.
-
Architects present preliminary JHS plans at community meeting
Reaction appeared mostly supportive Thursday night among the roughly 50 people who attended a community meeting at which architects presented their preliminary site plans for the future combined Joplin High School and Franklin Technology Center.
-
Confessed shooter testifies against co-defendants in Pittsburg murder case
Rickey Smith testified Thursday that as he came in the back door of Ryan Bailey’s home in Pittsburg with a 9 mm pistol in his hand, Bailey looked up from the couch in his living room.
-
School district’s proposed street-closing plan questioned
Plans to close some streets near the proposed Joplin High School drew questions, including a challenge from a former Joplin mayor, during a public hearing this week.
-
Mike Pound: Spirit of competition evident during double-overtime game
When I played basketball in high school, I played in several very close games.
Now, some people who may have known me in high school are probably laughing right now and saying, “What Mike meant to say is that when he was in high school, he came very close to playing in some games.” -
Neosho council approves new golf cart contract
The purchase of golf carts was back on the agenda this week for the Neosho City Council. City Attorney Steve Hays said there were errors in the financing terms that were part of a bid approved last month for the purchase of 55 gas-powered carts from E-Z-Go for $144,195, so the purchase of a new fleet was rebid.
- More Local News Headlines
-
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Expert: Removing LA School's Staff 'Appropriate'
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
