Foreclosure Filing

7/27/2019 Foreclosure Filing

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J U N 1 8 2 0 1 3M a r io n C o u n t y C i r c u it C o u r t

I N T H E C I R C U IT C O U R T O F T H E STATE OF OREGONFOR THE COUNTY OF MARION

CITY OF KEIZER, a municipal corporation, No a flOP l a i n t i f f ,

RAWLINS HOLDING COMPANY, INC., anOregon corporation; RAWLINSINVESTMENT PROPERTIES L.L.C., anO regon limited liability company; theUNKNOWN HEIRS of OTIS D. RAWLINSand LOENE E. RAWLINS, husband and wife,deceased; LORRAINE SCHULTZ;TIMOTHY R. RAWLINS and PETER R.RAWLINS, TRUSTEES OF THERAWLINS FAMILY TRUST;NORTHWEST NATIONAL LLC, an Oregonlimited liability company ; and all other personsor parties unknown claiming any right, title,lien, or interest in the property described in thecomplaint herein

C O M P L A I N T(Foreclosure of Local ImprovementDistrict Lien)NOT SUBJECT TO ARBITRATIONLien Amount: approximately $6,667,000

Defendants.Plaintiff C ity of Keizer alleges as follows:

P A R T I E S1 .

C ity of Keizer (the "C ity") is an existing municipal corporation duly formed under the lawsof the State of Oregon.

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Defendant R awlins H olding C ompany, Inc. ("R awlins H olding") is an O regon corporation.

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K&L GATES LLP2 22 S W C O L U M B I A S T R E E TS U I T E ] 40 0PORT LAND, OR 97 20 16 6 3 2TE L EPHO NE : (503) 228-3200PAX: (503) 248.9085


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3.Defendant R awlins Investment Properties L.L.C . ("R awlins Investment") is an O regonlimited liability company.

4.The heirs of Otis D. Rawlins and Loene E. Rawlins, deceased (the "Rawlins Heirs"), are notknown.

5.Defendants Lorraine Schultz ("Schultz") is an individual residing in the state of O regon.

6.Defendants T imothy R . R awlins and Peter R . R awlins, in their capacity as T rustees (the"R awlins T rustees") of the R awlins Fam ily Trust, are residents of the state of O regon.

7.Defendant N orthwest N ational LLC ("N orthwest") is an O regon limited liability company.

8.All other persons or parties unknown claiming any right, title, lien, or interest in theproperty described in the complaint herein are named as Defendants pursuant to O R C P 21 J.

FACTS9.In 200 5, the C ity formed a local improvem ent district known as the "Keizer Station Area A

Local Improvement District" (the "LID") pursuant to Resolution Nos. 2005-1593 and 2005-1594,duly adopted by the Keizer C ity C ouncil.10.

Located within the LI D are the parcels of real property described on E xhibit A attachedhereto and known as Tax Lot 063W2504200 (the "4200 Property") and Exhibit B'attached heretoand known as Tax Lot 063W2504500 (the "4500 Property"; and together with the 4200 Property,the "Properties"). 11.Defendants Rawlins Holding and Rawlins Investment each own an undivided one-halfinterest in the Properties as tenants-in-comm on.

12.T he C ity assessed the 4200 Property in the amount of $2,299 ,571.82 on January 31, 2008(the "4200 Property Assessment").

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K&L GATES LLP222 SW CO l-UM13IA STRE ETS U I T E 1 4 00PORTLAM, OR 9 7201-6632TEL E PHO NE : (503) 228-3200PAN: (503) 249 - 9 0 85Page . 2- COMPLAINT


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13.The City assessed the 4500 Property in the amount of $3,671,246.24 on January 31, 2008(the "4500 Property Assessment").

14.R awlins H olding and R awlins Investment agreed to pay the 4200 Property Assessment in 42semi-annual installments pursuant to an Installment Payment C ontract dated F ebruary 19, 2008 (the"4200 Installment Contract").

15.R awlins H olding and R awlins Investment agreed to pay the 4500 Property Assessment in 42semi-annual installments pursuant to an Installment Payment Contract dated February 19, 2008 (the"4500 Installment Contract" and together with the 4200 Installment Contract, the "InstallmentC ontracts").

16.T he R ecorder of the C ity of Keizer (the "C ity R ecorder") has prepared a list of all realproperty in the LID appearing on the tax rolls that are delinquent and have no t been paid.According to the list prepared by the C ity R ecorder, R awlins H olding and R awlins Investment havefailed to pay the installments due under the I nstallment C ontracts since August 21, 20 10, and thushave refused to pay the installments under the Installment C ontracts as contemplated by O R S223.265.

17.The total amount owed to the City with respect to the 4200 Property Assessment, includinginterest and penalties, is $2,566,453.49 as of May 31, 2013, which am ount includes principal in theamount of $2,179,095.39 (the "4200 Property Assessment Principal"), accrued unpaid interest in

the amount of $32 7,149.61, late paymen t penalties in the amou nt of $59 ,272.72, real estate taxespaid by the City on the 4200 Property in the amount of $890.51 (the "4200 Property Tax Principal")together with interest accrued thereon in the amount of $45.26, plus additional interest accruing onthe 4200 Property Assessment Principal and the 4200 Property Tax Principal at the rate of5.76135% per annum from and after May 31, 2013 and costs of collecting the 4200 PropertyAssessment, including attorney fees (collectively, the "4200. Property Assessment Am ount").18.

The total amount owed to the City with'respect to the 4500 Property Assessment, includinginterest and penalties, is $4,100,435.46 as of M ay 31, 2013, w hich amoun t includes principal in theamount o f $3,478,906 .64 (the "4500 P roperty Assessment Principal"), accrued unpaid interest inthe amount of $522291.48, late payment penalties in the amount of $94,637.68, real estate taxespaid by the City on the 4500 Property in the amount of $4,377.28 (the "4500 Property TaxPrincipal") together with interest accrued thereon in the amoun t of $222.48, plus additional interestaccruing on the 4500 Property Assessment Principal and the 4500 Property T ax Principal at the rateof 5.76135% per annum from and after May 31, 2013 and costs of collecting the 4500 PropertyAssessment, including attorney fees (collectively, the "4500 Property Assessment A mount").

19.Defendants the R awlins H eirs have a record interest in the Properties by virtue of aMortgage dated December 23, 1994 and recorded on December 30, 199 4 with the Marion C ounty

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K & L GA T E S L L P222 SW COLUMBIA STREETSUITE 1400PO RTL A TN D, O R 9 7201- 6632TELEPHONE: (503) 228-3200FAX (503) 248-9085P age 3- C O MP L A IN T


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R ecorder at R eel 1213, Page 454.20.

Defendants the Rawlins Trustees have a record interest in the Properties by virtue of a TrustDeed dated August 19, 1998 and recorded on January 20, 199 9 w ith the Marion C ounty R ecorder atR eel 1560, Page 40.

21.Defendant Sch ultz has a record interest in the Properties by virtue of an inden ture ofMortgage dated March 15, 199 6 and recorded on March 18, 199 6 with the Marion C ounty R ecorderat R eel 1297, Page 449.

22.Defendant N orthwest may have an interest in the Properties by virtue of a Ground Leasedated O ctober 1, 2005, among N orthwest, R awlins H olding and R awlins Investment.

23.As provided by O R S 223.230(3), the lien of the C ity for unpaid assessments is paramountand prior to any interest of the Defendants in the Properties.

FIRST CLAIM FOR RELIEF(Foreclosure of the 4200 Property)

24.T he C ity realleges and incorporates by reference the allegations of paragraphs 1 - 23 above.

25.The City is entitled to a judgment declaring the City's interest in the 4200 Property to besuperior to that of the Defendants and foreclosing the C ity's interest in the 42 00 Property.26.

The City is entitled to a judgment in the amount of the 4200 Property Assessment Amount,together with penalties equal to 0.5% o f the 4200 Property Assessment Am ount as provided in the4200 I nstallment C ontract interest on the 4200 Property Assessment Principal and the 4200Property Tax Principal at the rate of 5,76135% per annum from May 31, 2013 to the date ofjudgment, and any accruing interest from the date of judgment at the legal rate of nine percent (9% )per annum as provided by ORS 82.010, plus the City's attorneys' fees as provided in ORS 223.615and the 4200 Installment Contract.SECOND CLAIM FOR RELIEF

(Foreclosure of the 4500 Property)27.

T he C ity realleges and incorporates by reference the allegations of paragraphs 1 - 23 above.

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K&L GATES LLP2 2 2 3 W C O L U M B I A ST R E E TS U I T E 1 4 00PORTL AND , OR 9 7201-6632TE L EPHO NE : (503) 220.3200FAX (503) 248-9065P age 4- C O MP L A IN T


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28.The City is entitled to a judgment declaring the City's interest in the 4500 Property to besuperior to that of the Defendants and foreclosing the C ity's interest in the 450 0 Property.

29.The City is entitled to a judgment in the amount of the 4500 Property Assessment Amount,together with penalties equal to 0.5% o f the 4500 Property Assessment Am ount a s provided in the4500 Installment Contract interest on the 4500 Property Assessment Principal and the 4500Property T ax Principal at the rate of 5.76135% per annum from May 31, 2013 to the date ofjudgment, and any accruing interest from the date of judgment at the legal rate of nine percent (9% )per annum as provided by ORS 82.010, plus the City's attorneys' fees as provided in ORS 223.615and the 4500 Installment C ontract.

PRAYER FOR RELIEFW H E R E F O R E , Plaint if f C i ty of K eizer prays for relief against the D efendants as follows:1.ith respect to its First Claim for ReliefA . For ajudgment that the 4200 Property Assessment Amount, together withinterest, penalties and attorneys' fees, is a first lien on the 4200 Property;B . F or judgment of foreclosure and decree against the Defendants, ordering thateach of them, an d all persons claiming through or u nder them, either as purchasers, encumbrances,or otherwise be foreclosed of all interest or claim in the 420 0 Property except to the extent of thestatutory right of redemption any of them m ay have in the 420 0 Property;C . F or a judgment and decree that the 4200 Property be sold at a foreclosure

sale by the.Marion C ounty Sheriff following advertisement and no tice as required by law;D. T hat the C ity shall be permitted to appear and credit bid all or a portion of theamount of its judgment at the execution sale of the 4200 Property;E . Requiring that the Marion County Sheriff issue a sheriffs certificate of saleor equivalent covering the 4200 Property subject only to the right of redemption in the Property asprovided by O R S 223.593;F . T hat the purchaser at the execution sale be entitled to such remedies as areavailable at law to secure such purchaser's position as owner of the 4200 Property, including a writof assistance, if the D efendants or any other parties or persons refuse to imm ediately surrenderpossession to such purchaser; andG . Such other and further relief as the C ourt shall deem equitable.

2.ith respect to its Second C laim for R elief:A. o r a judgment that the 4500 Property Assessment Ar ount, together withinterest, penalties and attorneys' fees, is a first lien on the 4500 Property;B. F or judgment of foreclosure and decree against the Defendants, ordering thateach of them, an d all persons claiming through or u nder them, either as purchasers, encumbrances,or otherwise be foreclosed of all interest or claim in the 45 00 Property except to the extent of thestatutory right of redemption any of them m ay have in the 450 0 Property;01011121314151617181920212223242526 K&L GATES LLB'222 SW COLUMBIA STREET

SUITE 1400PORTLAND, OR 97201-6632TELEPHONE: (503) 228-3200

PAX (503)248-9085P age 5- C O MP L A IN T


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C . F or a judgment and decree that the 4500 Property be sold at a foreclosuresale by the Marion County Sheriff following advertisement and notice as required by law;D . T hat the C ity shall be permitted to appear and credit bid all or a portion of theamount of its judgment at the execution sale of the 4500 P roperty;E . Requiring that the Marion County Sheriff issue a sheriff's certificate of saleor equivalent covering the 4500 Property subject only to the right of redemption in the Property asprovided by O R S 223.593;F . T hat the purchaser at the execution sale be entitled to such remedies as areavailable at law to secure such purchaser's position as owner of the 4500 Property, including a writof assistance, if the D efendants or any other parties or persons refuse to imm ediately surrenderpossession to such purchaser; andG . Such other and further relief as the C ourt shall deem equitable.

kD A T E D thisay of June, 2013.

K & L G A T E S LL PI I

R. Gibson -M sters; OS15156Email: ,gib.ma.sters~7,klg_ ates.comPhilip S. Van Der W eele, O SB #863650Email: phil.vanderweeleO klaates.comAttorneys for PlaintiffTrial Attorney: Philip Van Der Weele

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K&L GATES LLP2 22 S W C O L U M B I A ST R E E TSUITE 1400PORTLAN1 2, OR 97 201 -663 2TELCPHONE: (503) 228-32009AX: (503 ) 248 -908 5P age 6- C O MP L A IN T


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Order No. FT130041781-FTMWV23

L E G A L DE S C R I PT I O NBeginning at the Southwest corner of that tract of land conveyed by Deed recorded in Volume 73, Page 128, of MarionCounty Deed Records and being 994.69 feet South 8935' East along the Section line from the South one quarter cornerof Section 25, Township 6 South, Range 3 West, Willamette Meridian, Marion County, Oregon; thence North 89 35'West along said Section line, 328.99 feet to the East line of that property described in that Deed to the United States ofAmerica and recorded in Volume 445, Page 668, of Marion County Deed Records; thence North 00 2141" West alongsaid East line 846.81 feet to a point; thence North 8950'15" East a distance of 328.99 feet to a point being North fromthe point of beginning; thence South 0021'41" East 850.14 feet, more or less, to the point of beginning.

FDOR0249.rdwCombination Form GuaranteeOregon Title Insurance Rating Organization (OTIRO)O T I R O N o . G -0 1


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Order No. FT130041780-FTMWV23

L E G A L DE S C R I PT I O NCommencing at the Southwest corner of that tract of land conveyed by Deed recorded in Volume 73, Page 128, ofMarion County Deed Records and being 994.69 feet South 8935' East along the Section line from the South one quartercorner of Section 25, Township 6 South, Range 3 West, Willamette Meridian, Marion County, Oregon; thence North 8935' West along said Section line, 328.99 feet to the East line of that property described in that Deed to the United Statesof America and recorded in Volume 445, Page 668, of Marion County Deed Records; thence North 00 2141" Westalong said East line 846.81 feet to the True Point of Beginning of the parcel herein described; thence South 8950'15"West along the North line of said last mentioned property and that property described in that Deed to the United States ofAmerica and recorded in Volume 357, Page 526, of Marion County Deed Records, 1150.00 feet to the East right-of-wayline of the Oregon Electric Railroad; thence North 0012'22" West along said East right-of-way line 210.82 feet; thenceSouth 8941'54" East 323.60 feet; thence North 7837'18" East 274.91 feet; thence North 7717'41" East 163.19 feet;thence North 8013'23" East 445.82 feet; thence North 7803'09" East 271.67 feet; thence North 80 52'31" East 19.82feet; thence South 00 2141" East 430.21 feet to a point being North 895015" East from the True Point of Beginning;thence South 8950'15" West a distance of 328.99 feet, more or less, to the True Point of Beginning.

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Combination Form GuaranteeOregon Title Insurance Rating Organization (OTIRO)FDOR0249.rdwT I R O N o . G -0 1

Documents

Foreclosure Filing