Information

Type: Deliberation

Department: PHSS - Public Health & Social Services

Directors' Update: Nov. 6, 2024

Business Meeting: Nov. 12, 2024

Summary:

This resolution approves of two documents needed for closing in the Lewis County Homeless Shelter transaction.  In that transaction, the County must obtain title insurance to protect the Department of Commerce as a condition of reimbursement.  The two documents are required by the title insurance underwriter because this is a renovation project.  The title insurance company requires assurances that between the time of the title report (in March 2024) and closing, no construction occurred 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 list all such work that has occurred, represents that we paid for the work in full, and indemnifies the insurance company if we did not do so or if any other such work occurred and was not paid in full.  Because no unreimbursed work has occurred, 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 purchase and renovate 2015 NE Kresky Ave into a permanent homeless shelter; and

WHEREAS, The direct appropriation requires that Lewis County obtain title insurance; and

WHEREAS, the title insurance underwriter requires certain assurances that no construction has occurred 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, no such unreimbursed work occured, and 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 and consultants 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 other work is permitted to be done and paid for before closing, necessitating additional changes or accompanying documents required by the title insurance underwriter.

DONE IN OPEN SESSION this 12th day of November, 2024.