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.
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Wachovia seeks dismissal of suit involving former O’Sullivan plant
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