The Joplin Globe, Joplin, MO

Local News

July 1, 2009

Lamar declares intent to pursue building







By Debby Woodin

dwoodin@joplinglobe.com

LAMAR, Mo. — The city of Lamar intends to go forward with its condemnation action to try to get possession of the O’Sullivan Industries building.

The city was required by Circuit Judge James Bickel to declare by Wednesday whether it intended to proceed.

“Yes, it’s the city’s intention to move forward,” said Mary Jo Shaney, a Kansas City attorney representing the city. She said the city informed the judge by letter that it wants to proceed.

Shaney said she expects that the next step will be for the judge to set a hearing date on the city’s petition to take the property. The city wants to develop the property, she said.

“There’s a very extensive plan the city approved a number of years ago under which the O’Sullivan building would be redeveloped,” she said by telephone.

The city’s intent in using its powers of eminent domain is to get another business located in the plant.

There was a possibility of selling the building to Structured Equity Advisors, an investment company in California, that in turn would have leased part of the building to a company that proposed hiring about 475 people to build garage doors.

That deal was put on hold after a disagreement developed between O’Sullivan and the investment company.

Wachovia Bank holds the deed to the O’Sullivan plant and is a party in the condemnation action the city filed.

Wachovia had filed a motion asking the judge to dismiss the city’s action, contending that the pending condemnation “casts a cloud” on the title to the property and scares off potential buyers.

A February hearing had been scheduled, but it was delayed at the city’s request.

The bank’s contention that the city’s action is dragging out potential marketing of the building resulted in the judge’s action to seek Lamar’s declaration of intent.





Background



O’Sullivan Industries manufactured ready-to-assemble furniture before it closed its plant in 2007 after several years of financial difficulties. The company employed about 700 workers shortly before it closed.

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