Thank you.  

On the SDEC: 
this is no longer an '02 play.  To keep it as an '03 play three things need 
to happen:
(1) we need to move our application for an Unusual Use Permit from the 
jurisdiction of the Community Zoning Appeals Board ("CZAB") to the Board of 
County Commissioners.  The CZAB is a parochial board that is stacked with 
NIMBY's.  We have been doing our assessment of the communities and after 
weeks of investigation we have concluded that if we go before the CZAB, we 
feel we will be facing sudden death.  However, if we go before the County 
Commissioners, we will have a very good chance of success.  The vehicle we 
propose to use to change the jurisdiction is something called an Application 
of Vested Rights. As I understand it, (I'm getting info on this today), this 
is a statement that says that a property owner is being prevented from any 
use of his property.  This application needs to be submitted to the county 
before June 6th, the date of our CZAB hearing. 
(2) we will need to negotiate an arrangement with Dade County Department of 
Environmental Resources Management ("DERM") who is responsible for ensuring 
that the land fill be closed.  They have been pushing the owner of the 
property to initiate the closure work.  The land owner, Certrosa Holdings,  
is a single asset company and the sole owner lives in Venezuela.   If we were 
not in the picture, I believe Certrosa Holdings would most likely default on 
the obligation to close the landfill leaving the county to clean it up (at $3 
to 4 million). To keep this as an '03 play we will need to get DERM to agree 
to post pone the closure proceedings for at least a year and we will need 
provide some assurances that if we do exercise the option and get in the 
chain of title that we would assume the obligation to close the landfill. We 
may need to initiate this conversation in the next 2 to 3 weeks.
(3) we will need to extend the Option Agreement which expires on September.  
The strike price for this property is approximately $1.3 million and we paid 
$200,000 for a 9 month option last October (when the rules were soft costs 
could not exceed 5% of the total project cost of $175 million).  Based on the 
success of (1) and (2) above, we may need to initiate this discussion in the 
next 2 to 3 weeks as well.

On the Medley - Dunn discussions:
As you know, when Ann Elizabeth and I left the the Dunns, last month, they 
had two deal breakers: (a) they wanted a committment on our part that we 
would pay a certain amount of taxes to the town and not go for a tax 
abatement.  (we said the taxes and any arrangement we make with the town 
would not involve the Dunns) (b) they wanted us to assume all past and 
present environmental liabilities.  We said no to both conditions and halted 
discussions.  I have heard from the real estate agent representing the Dunns 
that they are considering giving on both these items.  If we structured an 
arrangement where we did a phase 2 environmental assessment during a 60 to 90 
day "due diligence" period (rather than in an option period or under a 90 day 
lease), gave both parties the chance to opt out of the deal based on the 
results of the phase 2; and, we change the agreement back to the way it was 
in the last Andrew &  Kurth draft which was silent on the issue of historical 
environmental liability and liability from environmental problems that arise 
in the future but are not the result of our operations.  Would this 
arrangement give us adequate protection and give us the right to sue if 
necessary to have the Dunns or any other responsible party help pay for any 
clean up?  If this is something we can work with, we need to have a 
conversation with the Dunn's attorney.  What do you think?

 

 -----Original Message-----
From:  Mann, Kay  
Sent: Wednesday, May 23, 2001 11:03 AM
To: Krause, Greg
Subject: RE: AEW's backup

Greg,

You can call me on whatever you have, including Midway, SDEC and Medley 
Dunn.  If I have a problem getting to something, I'll find help.

Kay




From: Greg Krause/ENRON@enronXgate on 05/23/2001 10:50 AM
To: Kay Mann/Corp/Enron@Enron
cc:  

Subject: RE: AEW's backup


Kay,

Ann Elizabeth did not provide a designated hitter for the South Dade Energy 
Center (Dade Development Company LLC is Optionee, Certosa Holdings is 
Optionor) nor did she provide one for tne Medley Dunn project.  I have been 
told that the Dunns are considering backing off their ultimatums that they 
gave Ann Elizabeth and I regarding taxes to the town and assumption of 
enviromental liability.  Who do I talk to about the Dunn contract while Ann 
Elizabeth is out?  
 -----Original Message-----
From:  White, Ann Elizabeth  
Sent: Tuesday, May 22, 2001 10:33 PM
To: gkrause@enron.com; Krimsky, Steven; Ben Jacoby/HOU/ECT@ENRON; Carnahan, 
Kathleen
Cc: Milligan, Taffy
Subject: AEW's backup

Kay Mann is the designated hitter for the Pompano and Deerfied projects while 
I'm on vacation.  I've given her a down load of the status of Greg and 
Steve's projects.  Chris Boehler at A&K will be the designated hitter for 
Midway.  I'm not going to check my voice mail while I'm gone but, if 
necessary, here are the contact numbers while I'm gone.

Walter and Marlena Schilling  011-49-8218-89351 schilling.jun@freenet.de

Monika and Bernhard Steinacher 011-49-8232-8932 m.steinacher@schwabmuenchen.de

If you call, Walter and Bernhard and Bernhard's daughter, Susanne, speak very 
good English.  Monika's isn't bad.  Marlena may get flustered and hang up on 
you.

Best of luck at Deerfield and hope to see Pompano on track when I get back in 
the office on June 11th.  Kay is planning on going to Florida on June 12 for 
the moratorium hearing and the rezoning hearing.