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<br />12
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<br />LPI submitted deeds on this lot as follows:
<br />-Indenture between Southern Pacific Company and LPI, recorded
<br />September 14, 1956
<br />-Deed from LPI to Edward J. King, Jr. Trust, dated March 19, 2002
<br />-Deed from Edward J. King, Jr. Trust to EJK Investments, LLC,
<br />dated December 18, 2002
<br />-Warranty Deed from William S. Anderson, Trustee to Ander
<br />Properties, LLC, recorded July 10, 2003
<br />-Bargain & Sale Deed from EJK Investments, LLC, to LPI, dated
<br />April 13, 2005
<br />-Bargain & Sale Deed from William S. Anderson, Trustee to Ander
<br />Properties, LLC, recorded September 26, 2005
<br />-Warranty Deed from ElK Investments, LLC to LPI, recorded
<br />February 15, 2006
<br />-Quitclaim Deed from Edward J. King Ir., Trustee to LPI, recorded
<br />February 15, 2006
<br />
<br />Lots 1, 2, 3, 5 and 12 were first acquired by LPI between 1956 and 1972. LPI owned
<br />these properties continuously until, on March 19,2002, LPI transferred all of these properties to
<br />the Edward I. King, Ir., Trust. Lot 11 was transferred to and held by Frontier Real Estate
<br />Holdings, Inc., for nine days in May of 2001, before being transferred back to LPI. LPI did not
<br />provide a deed showing when it first acquired lot 11, but it apparently had title to that land before
<br />May of 20,01. Lots 1,2,3,5 and 11 (i.e., all of these lots except lot 12), were then transferred by
<br />Edward 1. King, Jr. Trust to EJK Investments, LLC, on December 18, 2002. The lot 12 deeds to
<br />and from William S. Anderson, Trustee, and Ander Properties, LLC, appear to be -associated
<br />. with a lease and option on the property dated October 2, 2002. That lease and option document,
<br />however, was not provided by LPI. LPI ultimately reacquired complete title to lot 12 ori
<br />February 16, 2006.
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<br />None. of these lots were acquired before Eugene's current Land Use Code, Chapter 9 of
<br />the Eugene Code, became effective on August 1,2001, and therefore a valid Measure 37 claim
<br />cannot be made on these lots. Apparently recognizing this problem, on January 14, 2005,
<br />Edward 1. King, Jr. Trust (King) and Frontier Resources, LLC (Frontier), executed 'a document
<br />entitled "Memorialization of Loan Agreement." That document states that King and Frontier
<br />verbally agreed that the March 19, 2002 conveyances of lots 1 through 3, and 10 through 12
<br />from LPI to King were intended only for the purposes of securing a portion of a loan made by
<br />King to Frontier (the same person, Greg Demers, owns a contrOlling interest in both Frontier and
<br />LPI). Approximately three months later, on April 13, 2005, King transferred these properties to
<br />LPI. Several months after that, LPI filed this Measure.37 claim. Given that King and Demers
<br />have been working together since about 1997 to develop this property, the fact that it took them
<br />over three years to "memorialize" their "verbal agreement," and the fact that the
<br />"Memorialization of Loan Agreement" and transfer of these properties back to LPI all took place
<br />within a several month period, immediately before LPI filed its Measure 37 claim, LPI's
<br />assertion that the transfer to King was merely to secure a (portion) of a debt, rather than being a
<br />bona fide transfer, appears implausible - particularly in light of the minimal evidence that LPI
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