Bank of New York Mellon v. City of Richmond, California et al
Filing
20
NOTICE by Bank of New York Mellon re 18 Order on Stipulation for Filing Second Amended Complaint (Attachments: # 1 Exhibit A, # 2 Exhibit B Part 1 of 3, # 3 Exhibit B Part 2 of 3, # 4 Exhibit B Part 3 of 3)(Pollock, Bronwyn) (Filed on 8/26/2013)
EXHIBIT B, Part2 of 3
Case3:13-cv-03664-JCS Documentl"T-5 Filed)Blz2l13 Pagel of 39
Exhibit E
84
Case3:13-cv-O3664-JCS DocumentlT-S Filedjgl22l13 Page2 of 39
CIÏY MANAGER'S OFFICE
July 31, 2013
GeneralCounsel
US Bank
One FederalStreet, Th¡rd tloor
Boston, MA 02110
Dear Sir or Madami.
This letter is beìng forwarded to you as the Trustee of the mortgage loans in the pr¡vate securitlzation
trust(s) listed ¡n Attachment A. The City of Rlchmond ("City"), has been invêstlgating the acquisition of
mortgage loans from the trust(s) as part of a public program to modify underwater mortgage loans to
reduce principal and avold foreclosures. The City is experiencing an hlstoric home mortgage cr¡sls that
harming the community ¡n many ways, includingl unprecedented rates of default and foreclosure; the
loss of jobs, homeowner equlty, family wealth and shelter; reduct¡ons ln income, consumer demand,
¡nvestment, property values, and tax revenues; and an increase ln vandalism, abandoned homes and
other decay that harm the economy and the quality of life for residents.
is
By way ofthis letter, the City hereby offers to acqu¡re all rights to the mortgage loans lìsted in
Attachment A (the "Loans"). lf you do not believe that you are the correct party to consider th¡s offer,
please notify me immediately of the party that you believe ls the correct party to consider this offer.
The City had the Loans appraised on June 30, 2013 to determine their fair market value, lvlortgage
lndustry Advisory Corporat¡on conducted the appraisal.
Based on the appraisal, the City hereby offers to purchase the Loans (free and clear of any
encumbra nces to title or other interests that the Cìty, ln ¡ts d lscret¡on, deems unacceptable) for the fa ir
market value determined by the appraisal, which ls set out ¡n Attachment B (the "Purchase Price"). The
Purchase Price is the full amount belleved by the Clty to be just compensation for the Loans and is not
less tha n the appra¡sal of the falr market value of the Loans.
The basis for this offer ls set forth in Attachment B, which summarizes the basis for the appraisal and is
made a part of this offer by reference. Thè Purchase Price amount is for all owners of any interest in the
Loans, and division ofthis amount among parties that have an interest in the Loans will be your
respon sibilily,
Thls offer is subject to the approval of the C¡ty's C¡ty Council, ¡ncluding final conditions that the Cìty
Council requires as part of its program,
lf you certify thât you a re the owner of the Loa ns with the a uthor¡ty to convey them to the City, a nd
wish to obtain your own independent appraisal ofthe Loans, lhe City may be willing to provide
reasonable relmbursement. Please contâct me ¡f you are interested in d¡scussing th¡s ¡ssue.
if the offer price ls acceptable to you, please so indicate to the undersigned, in writing. This matter will
then be presented to the C¡ty Council, which has final ratification authority. Upon City Councìl approval,
the City will prepare and forward toyou a proposed agreement to acquire the Loans.
lf for a ny reason you a re not satisfied with th is offe r of just com pe nsation, a nd have relevant
information you would like the City to consider, please contact the undersigned. ln add¡tion, you
450 Civic Center Plaza, Richmond, CA 94804-1630
Telephone: (510) 620-6512 Fax: (510) 620-6542 wwv.ci.richtnond.ca,us
85
Case3:13-cv-03664-JCS Documentl-7-5 Filed08l22lt3 Page3 of 39
shouìd be aware that, in the event thal negotiations fail to result in agreement, and the City decides to
p roceed with the acqu is¡tion of the Loans th rough em inent domain, t he owner will have the right to
have the amount of iust compensation to be paid by the c¡ly for the Loan s fixed by a court of law.
Please be advised that, in such event, the terms of this offer and the contenls of this letter may be
excluded from consideration as an offer of settlement, under California Evidence Code sections 1152,
1L54, or other applicable provisions of law.
lncluded with this letter is a pamphlet describing the eminent domain process in California, This
pamphlet is provided for informationâlpurposes only and should not be construed as legal advice.
some parts of the pamphlet are addressed to the acquisìtion of real property and may not be applicable
to the present s¡tuat¡on.
I hope that this offer meets with your approval and that it can serve âs the basis for a quick and mutually
beneficial transaction. I look forward to hearing from you after you have had the opportunity to review
it. Aga in, if you are not the correct party with wh ich to negotiâte for th e acquis¡tion of the Loans,
please let me know immediately. In any event, please provide a response no later than August 13, 2013.
Thank you for your cooperation,
The mortgage loans listed in Attachment A are a subset of the mortga8e loans the City is interested
iri acquiring. The full list of mortgage loans the city is interested in acquiring at the present time is
provided ¡n Attachment C. The City is making offers to acquire groups of loans based on the
Trustee/Servicer information available to the City. lf you are the party wilh aulhority to consider an
offer to purchase any ofthe other mortgage ìoans listed in Attâchment c and have not received a letter
from the city offering to purchase the loans, please let me know immediately.
Sincerely,
City of Richmond
;îH*{K
City
dsay
Manager
Atta ch m ents and Enclosure
86
Case3:13-cv-03664-JCS DocumentlT-5 FiledOgl2zl13 Page4 of 39
Eur¡m¡¡r Dou¡lt'l - Infot'rnati
I.
trntloducfion
Ernineut domaill is the power of the govetllment to pltrchase private ploperty fol a
'þublic use" so lolg as the property ownel is paid "just compensation." Whsnever
possible, the City of Richmord tlies to avoid use of lhe eminent domain power,
exercising it only wher it is ttecessaty fot a publìc project. The decision to acquile
private property for a public ploject is marle by the City of Richmond only aftet' a
thorough review of the project, which often ilcludes public hearings.
This pamphlet provides general information abottt the eminettt domain ptocess and tho
rìghts of tÌre pràperiy ownel in that plocess.l
.
What is a "public use"?
A "public use" is a use that coufels public benehts, like the plovisiort of public
sorvices ol the pt'omotion of public health, safety, a¡d lvelfale, Ptrblic ltses i¡clude
a
wide variety of pt ojects such as s[reei improvemellts, constfl.lctio]1 of water pipelines
or storage facilities, conshuction of civic buildings, tedevelopment of bJighted areas,
and levee improvements to increase flood protectiott. Somc public uses are for
private entities, such as nnivelsitìes., lrospitals and public tttilities, which serve the
public,
¿
What is ".iust colnpcnsation"
?
Just compensatioll ìs the fair nralket value of lhe property beirrg acqnired by the
government. The state law definition of fail market value is "the highest price on the
date of valuation that would bc agreed to by a seller', being willirg to sell but turder no
particular ot'nrgent uecessity foì: so doirrg, nol obiiged to soll, ald a blryer, being
ready, willing, and abLe to btly ìrùt rìnder no particular ttcccssity for so doing, each
dealing rvith the othe:: with frùl krtowledge of all lhe uscs and pmposes for lvhich tbe
plopelty is reasonably adaptable alld available."
II
'fhe Dminent Domain Pl'ocess and the Plo¡lerty Owner'rs Rights
The eminent domain ptocess begins with a public use project. When selectilg a
project locatiou, the goal is to roÌtdor tho greâtest public good ancl the least prìvate
I
This DBrnphlet Ìeflecfs tlte curlent lalv as of Jatruat'y 1,2008. Horvever, tlte infbl'¡nâti0n in
tlìis pônrphlct is not, llot' should itbecolìstÌtìcd as,legal advice' Ad(litionîllY' soùle
s,¡¡1¡9,1p!,!r[ lhjù)¡ùqtr¡qlgsitrlticrrl.¡lp orrìv lo t lrc
be âpplicrìl;le i¡l other sitn:ìtions. You slroukl col)srrlt \viflì qù¿ìlified legal counseI t egardittg
youl specilïc situatiou latltet tlran lcìying on this ¡rarnphlet as Iegal advicc, I'he stâterllelìls
in this parnpìrlet nte I gellel'aÌ sulntnâry of tlìo elnillelìt tlolnaìn ploccss altd ale not bintlitg
ol the Cify of Richl¡rond,
81
Case3:l-3-cv-03664'JCS DocumentLT-5 Filed08l22l13 Page5 of 39
iljttry or incouveniencô, lf it ìs detel mined that all or a poltion of youl ploperty may
be necessiuy for a pr.tblic use ploject, the City of Richrnond wiil begin the applaisal
plocess to determille the property's
market vahrc.
fa
.
How is tlte fair nrarket value of my propelty deter'¡nined?
The City of Richmond will letain al appraiser to applaise your ploperty, In the case
of real plopcrty, the applaiser will ilvite you to accompâny him ol hel during al
inspection of yonl ploperty. You may give the apptaiser any information abou t
implovemeuts and any special feat[les lhat you believe may affect the value of your
propelty. It is in yonl best interest to plovide the appraisel with all the useful
information yon can in order to ensure that nothing ofvalue will be ovellooked. If
you me nnab.le to meet with the apprzriser, you may wish to have a person who is
familiar with yonl property meel with the applaiscr instead,
After the inspection, the applaiser will complete an app|aisal that wili include the
appraìscr''s determination of youl plopolty's fâil mårket valùe and the infolmatiol
upon which the fair malket value is bascd. The applaiser will provìdc the City of
Richrnond with tho appraisal. The City of Richmond will ther make a wrílten offel to
pruchase the property. The offel will also ìnclude a snmrnary of the appraisaÌ, The
offer will t2e for no less than tho amouDt of the appraisal.
o
What factols does the applaiser consider in detelmining fail mallçet value?
Each palcel ofreaì propeily is diffelent and, thelef'olo, no silgle formula can be used
to applaiso all propelties. Amolg the factols ân âppl'aisel typically considels in
estimâling fail malket vâlue are:
o The locatior of the propertyl
o The age ard cordition of impÌovements oìr the property;
o How the property has beer r.tsed;
o Whethel thele are any lease ageements relating to the plopertyl
o Whether therc a.r'e aly envilonmeltal issnes, such as contarnilated soiì;
o Applicable cLrnent ¿rnd potel'ìtial ftrtule zouing and.land use reqr.riremerts;
o How the ploperly compares with similal plopolries in the zuea that havc
been sold t eceltly;
o Howmuchitvr'o ld cost lo reploduce the buildings aud othel stnìchu'ôs,
less any depreciatiol;
o
ald
I-Jow much reutal incorne the
plopelty produces, or coltld ploduce ìfput to
its lìighest and best
lhe plopclty to be app.r:aised is )rot leal propelly, the applaiser- wor,tld cousìder'
fhctols commonly consideled
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Exhibit F
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Case3:13-cv-03664-JCS
DocumentlT-6 triledo9l22l13
CIryMANAGER'S OFFICE
July 31, 2013
GÉneral Counsel
Welh Fargo
/ WilmlnEton Trust
Rodney Square North
1100 North Market Street
W¡lm¡ngton, Delaware 19890
DearS¡r/Madam:
in the prlvate secudthatlon
Thls letter ¡s belnEfurwarded to you as the sefv¡cer of the moftgÊge loan¡
t rrt(S) nræ¿ ¡n etÞchment A. The Cfty of Richmond l"Crty"L has been lnvestigat¡ng the acqu'rsitlon of
loans to
morgsæ l*n,t om the tîs.t(s) a5 pa¡t of a publíc progmm to modÍfy underwati:r morB¡8e
mortEAge crisls th4t ls
reduä ã¿nclpal and avold,forcclosures, The Crty ts experlencing an historlc home
foreclosure; the
ha¡mlni the iommunity in many ways, lncludlng: unpr€cedented retes of default and
in lncom', consumeldemand,
lo* ofjá¡r, ttom.owner equity, famlly wealth and shettec rcductigns
yandalþm, abandoned homes and
lnvestmem, property valuæ, and rax rcvenuesi and an increase in
other deEaythãt hatm the ecuomy and the quality of ltft fur residents'
loãns llsted ¡n
way of this letter, the city herEby offuÌs to acquir€ all ríghts to the mortgâge
pãrtV to conslderthls
Aitachment A (the 'l¡ans'l. lfyou do not believe thatyou are the conect
you believe is the correct party to considerthis
please notify me lmmediat¿ly of the parry thet
By
offe¡
offer.
€
Mortgãge H
The Gty h¡¡d the toans appnised
Industry Advisory corporatlon conducted the appn'rsal.
(free and clear of any
5
Eased on the appr¿lsal, the Gty hereby ofters to pufthase the trians
city, ¡r¡ ils discretion, deems unacÊeptable) turthe fa¡r 'S
.iiu.Urpn.".ìà titfe or otheiintercsts that the
(the i'Purchase Prire")' The
market vålue determlned hythe appnisal whlch ls set out in Attachment B
Ë
purchase Pr¡ce ls tl¡e full amount belleved bythe Crtyto be just compensation üor the loans and is not
È
less than the appraïsal ofthe fair market vàlue ofthe Loans.
'{:}
'
apprálsal ãnd ls
bas'lsfurthe
The bas¡s for thls offer is set forth in Attechment B, whlch summarizesthe
Ë
åny lntercst in the
on June 30, zoÏt to determlne
their faii market rralue.
of
made a part ofthls offer by reference. The Purchase Prlce smount is fof all ownefs
in the Loans wlll be your
toans, and dlu¡sion ofthls amount among paÉies that bave an interest
responsibility.
This offer is
subjectto thç approval
atf
the C¡ty's CÌty council, ínclu ding flnal conditions that the City
ib progft¡m.
yóu are the owner of tJ¡e Loans with the authorfty to convqy them to the Ctty, and
ttyou eert¡ithat
prov¡de
wúh to obtain your own independent appraisal ofthe Loans, the City mey be willingto
this issue'
reasonable relmbufsemenL Please Gdntact me ff you are interested in discussing
Council requlres as part of
to you, please so indicate to the undersigned, in writing' This matter will
Cr4' Council approval,
then be presented to the City CÖuncil, which has final retificatlon authority. Upon
the CiW will.prepare and forward to you a proposed ãgreementto ãcquire the Loans'
lf the offer price Ís acceptabte
450 Civic Cente r Plaza, Richmond, CA 9480+1 630
Telephone: (510) 620-6512 Fax: (510) 620-6542 www.ci'richmond'ca'us
124
Case3:13-cv-03664-JCS DocumentLT-6 Filedjgl22l1"3 Page3 of 34
decides to
should be aware that, in the event that negotiadons failto resultin agr€ement, and the City
domain, tle ownerw¡ll heve the fi€ht to
proceeú with the acqulsitlon of the Loäns thmugh eminent
a court of lawirave the amount ofjust compensation to be pald bythe City for the toans fted by
this letter mãy be
Please be adv¡sed that, fn sudr event, the terms ofthis offer and th6 cÛntenb of
Celifumiã Evidence Code sectlons 1152,
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