Wednesday, February 04, 2015
City manager to Wallace-Bajjali: You screwed us
Dear Messrs. Wallace & Bajjali:
As you are are aware, Article VIII, Events of Default and Remedies, Section 8.3 (a) (i) and (iv) of the Master Predevelopment Agreement dated July 2, 2012, and pursuant to Article XIII, Section 11.1 (a) and (d) of the Land Assemblage, Disposition, and Management Services Agreement, permits the City and JRC to terminate the respective agreements for insolvency and for the gross negligence, fraud, or willful misconduct in the performance or observance of the obligations to duties provided for under the terms of the agreements.
The City has learned and obtained verified facts to lead it to the conclusion that Wallace Bajjali Development Partners, L.P. has become insolvent. These facts include, but are not limited to, Wallace Bajjali's default under the terms of its promissory note held by New Prime, Inc., in the amount of $5 million, Wallace Bajjali's default under the Settlement Agreement in the BizRadio litigation and its failure to pay the sum of one million, five hundred thousand dollars ($1,500,000), Wallace Bajjali and its related entity Newco, LLC, and its anticipatory breach of the real estate contracts that are set to close on February, 6, 2015, in an amount of $2,142,988.42; Wallace Bajjali's continuing insolvency and inability to meet any ongoing contractual and payroll obligations as outlined in the verified petition in Jasper County Case No. 15AO-CC00035, styled Christine Bryant vs. Wallace Bajjali Development Partners, L. P.; Wallace Bajjali's anticipatory breach of the remaining real estate contracts with the Joplin Redevelopment Corporation, and the departure of both Wallace Bajjali principals and all of its employees.
Additionally, based on the foregoing and other investigation by the City of Joplin and the Joplin Redevelopment Corporation, Wallace Bajjali has committed acts of gross negligence, fraud and willful misconduct in the performance and observance of its obligation under the terms of the Master Predevelopment Agreement and the Land Assemblage, Disposition, and Management Services Agreement, and this amounts to an Event of Default under both agreements.
Under the terms of both agreements, this written notice of the Events of Default effectively terminates both agreements as of the date first written above.
Very truly yours,
Samuel L. Anselm