Information

Type: Deliberation

Department: CM - County Manager (including Budget)

Directors' Update: Dec. 27, 2023

Business Meeting: Jan. 2, 2024

Summary:

This resolution approves of two documents required by the title insurance underwriter to allow Lewis County to obtain title insurance for the final homeless shelter at 2025 NE Kresky Ave, Chehalis.  Lewis County must obtain title insurance to protect the Department of Commerce as a condition of the state direct appropriation paying for the shelter building's renovation.  Because this is a renovation project, the title insurance company requires assurances that between the time of the title report and closing, no construction will occur that can encumber the title of the property and thereby cause the insurer to have to pay for defects in title.  The documents being approved promise that no such work has occurred and that we will indemnify the insurance company if any such work has occurred.  Because no such work has occurred and Lewis County is in position to control whether it occurs, we can responsibly make such representations .

Publications:

Cover Letter To:

Additional Copies To:

Resolution

WHEREAS, Lewis County obtained a direct appropriation from the Washington Housing Trust Fund to renovate 2015 and 2025 NE Kresky Ave, Chehalis into an interim and final homeless shelter, respectively; and

WHEREAS, The direct appropriation requires that Lewis County obtain title insurance on the final homeless shelter at 2025 NE Kresky Ave; and

WHEREAS, the title insurance underwriter requires certain assurances that no construction will occur that can produce liens or other title defects between the time of the title report and closing, as set forth in the 2 attachments; and

WHEREAS, Lewis County is in position to know about and control whether such construction will occur before closing, and so can responsibly make such representations.

NOW THEREFORE BE IT RESOLVED the attached "No Broken Priority Declaration" and "Indemnity Agreement I" are approved, and the county manager is authorized to sign them on behalf of Lewis County; and

NOW THEREFORE BE IT FURTHER RESOLVED County staff are directed to continue to work with the title company and make such revisions and corrections as may be needed to these documents to obtain the title insurance in this transaction, and the county manager may sign such revised or corrected documents following legal review by the Prosecuting Attorney's Office.  This pre-authorization applies both to scrivener's changes in these documents and also to substantive changes in the event that minor work, such as environmental reporting or testing, is done on the final shelter before closing and necessitates additional changes or accompanying documents required by the title insurance underwriter.

DONE IN OPEN SESSION this 2nd day of January, 2024.