|
|
Enron Mail |
Thank you.
On the SDEC: this is no longer an '02 play. To keep it as an '03 play three things need to happen: (1) we need to move our application for an Unusual Use Permit from the jurisdiction of the Community Zoning Appeals Board ("CZAB") to the Board of County Commissioners. The CZAB is a parochial board that is stacked with NIMBY's. We have been doing our assessment of the communities and after weeks of investigation we have concluded that if we go before the CZAB, we feel we will be facing sudden death. However, if we go before the County Commissioners, we will have a very good chance of success. The vehicle we propose to use to change the jurisdiction is something called an Application of Vested Rights. As I understand it, (I'm getting info on this today), this is a statement that says that a property owner is being prevented from any use of his property. This application needs to be submitted to the county before June 6th, the date of our CZAB hearing. (2) we will need to negotiate an arrangement with Dade County Department of Environmental Resources Management ("DERM") who is responsible for ensuring that the land fill be closed. They have been pushing the owner of the property to initiate the closure work. The land owner, Certrosa Holdings, is a single asset company and the sole owner lives in Venezuela. If we were not in the picture, I believe Certrosa Holdings would most likely default on the obligation to close the landfill leaving the county to clean it up (at $3 to 4 million). To keep this as an '03 play we will need to get DERM to agree to post pone the closure proceedings for at least a year and we will need provide some assurances that if we do exercise the option and get in the chain of title that we would assume the obligation to close the landfill. We may need to initiate this conversation in the next 2 to 3 weeks. (3) we will need to extend the Option Agreement which expires on September. The strike price for this property is approximately $1.3 million and we paid $200,000 for a 9 month option last October (when the rules were soft costs could not exceed 5% of the total project cost of $175 million). Based on the success of (1) and (2) above, we may need to initiate this discussion in the next 2 to 3 weeks as well. On the Medley - Dunn discussions: As you know, when Ann Elizabeth and I left the the Dunns, last month, they had two deal breakers: (a) they wanted a committment on our part that we would pay a certain amount of taxes to the town and not go for a tax abatement. (we said the taxes and any arrangement we make with the town would not involve the Dunns) (b) they wanted us to assume all past and present environmental liabilities. We said no to both conditions and halted discussions. I have heard from the real estate agent representing the Dunns that they are considering giving on both these items. If we structured an arrangement where we did a phase 2 environmental assessment during a 60 to 90 day "due diligence" period (rather than in an option period or under a 90 day lease), gave both parties the chance to opt out of the deal based on the results of the phase 2; and, we change the agreement back to the way it was in the last Andrew & Kurth draft which was silent on the issue of historical environmental liability and liability from environmental problems that arise in the future but are not the result of our operations. Would this arrangement give us adequate protection and give us the right to sue if necessary to have the Dunns or any other responsible party help pay for any clean up? If this is something we can work with, we need to have a conversation with the Dunn's attorney. What do you think? -----Original Message----- From: Mann, Kay Sent: Wednesday, May 23, 2001 11:03 AM To: Krause, Greg Subject: RE: AEW's backup Greg, You can call me on whatever you have, including Midway, SDEC and Medley Dunn. If I have a problem getting to something, I'll find help. Kay From: Greg Krause/ENRON@enronXgate on 05/23/2001 10:50 AM To: Kay Mann/Corp/Enron@Enron cc: Subject: RE: AEW's backup Kay, Ann Elizabeth did not provide a designated hitter for the South Dade Energy Center (Dade Development Company LLC is Optionee, Certosa Holdings is Optionor) nor did she provide one for tne Medley Dunn project. I have been told that the Dunns are considering backing off their ultimatums that they gave Ann Elizabeth and I regarding taxes to the town and assumption of enviromental liability. Who do I talk to about the Dunn contract while Ann Elizabeth is out? -----Original Message----- From: White, Ann Elizabeth Sent: Tuesday, May 22, 2001 10:33 PM To: gkrause@enron.com; Krimsky, Steven; Ben Jacoby/HOU/ECT@ENRON; Carnahan, Kathleen Cc: Milligan, Taffy Subject: AEW's backup Kay Mann is the designated hitter for the Pompano and Deerfied projects while I'm on vacation. I've given her a down load of the status of Greg and Steve's projects. Chris Boehler at A&K will be the designated hitter for Midway. I'm not going to check my voice mail while I'm gone but, if necessary, here are the contact numbers while I'm gone. Walter and Marlena Schilling 011-49-8218-89351 schilling.jun@freenet.de Monika and Bernhard Steinacher 011-49-8232-8932 m.steinacher@schwabmuenchen.de If you call, Walter and Bernhard and Bernhard's daughter, Susanne, speak very good English. Monika's isn't bad. Marlena may get flustered and hang up on you. Best of luck at Deerfield and hope to see Pompano on track when I get back in the office on June 11th. Kay is planning on going to Florida on June 12 for the moratorium hearing and the rezoning hearing.
|