(Nov. 24, 2009, updated from initial report) -- LBReport.com has learned that LCW Partners, LLC and LCW Oil, LLC (Tom Dean related entities, collectively LCW here) have informed the City of Long Beach by letter that they propose to close escrow on SE LB open space/presumed wetlands to be exchanged the City owned Public Service yard by December 31. [images below not included in letter]
Image part of Aug. 2009 city staff report
The letter, dated Nov. 23 from attorney Ken Ehrlich (a partner in the Century City lawfirm of Jeffer, Mangels, Butler and Marmano), addressed to City Attorney Bob Shannon, says his clients have "acted responsibly and in good faith at all times" in the transaction.
Attorney Ehrlich's letter says the City has fulfilled requirements under federal law to remain immune from liability to date and "should not have any difficulty maintaining such status into the future." It adds that LCW has also undertaken additional measures "to insure that the City will not be at risk" including "complete indemnification, assumption of responsibility for conducting the necessary assessment and remedial work under EPA supervision, and assembling the parties actually responsible for the problem" for cost sharing.
EPA photo
The letter says LCW "has moved quickly, and will continue to move as fast as allowed by EPA, to assess and remediate any and all PCB contamination at the property...and suggested four measures that "will more than provide the City with the protection it seeks in order to close this transaction on or before December 31, 2009"...to wit:
1. Complete indemnification by LCW for environmental conditions which existed as a result of historic oil operations at the Property, including the alleged PCBs;
2. LCW will obtain a bond of $250,000 to protect against any default by LCW in connection with its environmental indemnity obligations;
3. Prior to the close of escrow, LCW will undertake measures to ensure that a cost allocation and participation agreement for the assessment, remediation, and monitoring costs associated with the Property is in place [with entities deemed by EPA to be responsible for the PCBs]
4. LCW shall represent that it believes the City constitutes a BFPP [Bonafide Prospective Purchaser under federal law, a status in which the City would be immune from liability under a federal law (CERCLA) if it takes certain "reasonable steps" (previously referenced in text of Mr. Ehrlich's letter).
The letter concludes: "In light of the mutually beneficial terms of the sale for the City, LCW proposes to close escrow on the transaction on or before December 31, 2009. LCW looks forward to finalizing this transaction with the City of Long Beach."
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