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Legislation #: 130774 Introduction Date: 10/3/2013
Type: Ordinance Effective Date: none
Sponsor: None
Title: Releasing the Receiver and his attorneys, employees and representatives from any and all claims arising out of the receivership in City of Kansas City, Missouri v. Housing and Economic Development Financial Corporation (Case No. 05-00368-CV-W-GAF) and authorizing the City Attorney to execute such a release.

Legislation History
DateMinutesDescription
10/3/2013 Filed by the Clerk's office
10/3/2013 Referred to Neighborhoods, Housing & Healthy Communities
10/9/2013 Do Pass
10/10/2013 Assigned to Third Read Calendar
10/17/2013 Passed

View Attachments
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130774.pdf Authenticated 206K Authenticated
130774 Release.pdf Other 174K Release

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ORDINANCE NO. 130774

 

Releasing the Receiver and his attorneys, employees and representatives from any and all claims arising out of the receivership in City of Kansas City, Missouri v. Housing and Economic Development Financial Corporation (Case No. 05-00368-CV-W-GAF) and authorizing the City Attorney to execute such a release.

 

WHEREAS, the Housing and Economic Development Financial Corporation (“HEDFC”) and its predecessors served for many years as the City’s primary “subrecipient” of federal funds received from the U.S. Department of Housing and Urban Development (“HUD”) and administered a number of programs and activities utilizing those federal funds and funds derived therefrom resulting in HEDFC holding title to several hundred parcels of real property and holding title to and servicing several hundred single-family, multi-family, and commercial loans; and

 

WHEREAS, in 2004 and early 2005, the City became increasingly concerned about the manner in which HEDFC was administering these federal funds and the federally funded housing programs and the community and economic development programs; and

 

WHEREAS, on March 31, 2005, HUD issued a Limited Denial of Participation against HEDFC barring HEDFC from participating in HUD programs in Missouri for a period of twelve months; and

 

WHEREAS, on April 21, 2005, the City filed its Verified Complaint in the U.S. District Court of the Western District of Missouri initiating the lawsuit styled City of Kansas City, Missouri v. Housing and Economic Development Financial Corporation (Case No. 05-00368-CV-W-GAF) seeking to regain title and control of the assets derived from HUD funds; and

 

WHEREAS, on May 3, 2005, the City filed a motion seeking the appointment of a receiver “to take control of such assets and properties previously entrusted to” HEDFC; and

 

WHEREAS, on May 16, 2005, the U.S. District Court sustained the City’s motion and appointed David E. Bahner to serve as the Receiver of HEDFC and to take possession and control of all of HEDFC’s assets; and

 

WHEREAS, David E. Bahner has served continuously as the Receiver of HEDFC since his appointment; and

 

WHEREAS, on September 22, 2011, at the U.S. District Court’s direction, the Receiver filed his “Receiver’s Request for Approval of Receiver’s Plan for Distribution of Assets and Termination of Receivership” which included a request that as a part of the U.S. District Court’s order discharging the Receiver, the Court order the City to release the Receiver of all claims arising from his service as Receiver; and

 

WHEREAS, on October 17, 2011, the U.S. District Court entered its Order approving the Receiver’s Plan for Distribution of Assets and Termination of Receivership and ordering it to be “binding on all parties”; and

 

WHEREAS, in its January 6, 2011 “Order and Directions for Termination of Receivership” and at the March 8, 2013 Status Conference, the Court stated its intent to terminate the receivership on or before October 31, 2013; and

 

WHEREAS, on September 25, 2013, the U.S. District Court held a hearing to consider the Receiver’s Final Report and any objections to it and on September 26, 2013 entered its “Order Approving Receiver’s Final Report”; and

 

WHEREAS, the City is not aware of any claims, demands or causes of actions of the City that currently exist, or may arise, against David E. Bahner in his role and capacity as the duly appointed Receiver of HEDFC in the above-styled lawsuit of City of Kansas City, Missouri v. Housing and Economic Development Financial Corporation (Case No. 05-00368-CV-W-GAF) , the employees and representatives of the receivership in their role and capacity as such, or the attorneys who have represented the Receiver and the receivership, in their role and capacity as such; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City hereby releases David E. Bahner of any and all claims, demands or causes of action of the City against David E. Bahner which may have arisen or which may arise out of his actions or omission attributable to his role and capacity as the duly appointed Receiver of the Housing and Economic Development Financial Corporation in the above-styled lawsuit of City of Kansas City, Missouri v. Housing and Economic Development Financial Corporation (Case No. 05-00368-CV-W-GAF) ,as well as the employees and representatives of the receivership in their role and capacity as such and the attorneys who have represented the Receiver and the receivership, in their role and capacity as such.

Section 2. That the City Attorney is hereby authorized to execute on behalf of the City a release, in substantial form as that attached hereto, releasing any and all claims, demands or causes of action of the City against David E. Bahner arising out of his actions, role and capacity as the duly appointed Receiver of the Housing and Economic Development Financial Corporation in the above-styled lawsuit of City of Kansas City, Missouri v. Housing and Economic Development Financial Corporation (Case No. 05-00368-CV-W-GAF), as well as the employees and representatives of the receivership in their roles and capacities as such and the attorneys who have represented the Receiver and the receivership, in their roles and capacities as such.

_____________________________________________

 

Approved as to form and legality:

 

__________________________________

Galen P. Beaufort

Senior Associate City Attorney