Transcript of the Testimony of Mike Woolston (128-14 Investigation)

Date: January 28, 2014 Volume: I Case: In Re: Joplin Critical Investigation

Printed On: January 30, 2014

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

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IN RE:

JOPLIN CRITICAL INVESTIGATION

SWORN STATEMENT OF

MIKE WOOLSTON

Taken on Tuesday, January 28, 2014, from 3:25 p.m. to 3:38 p.m., at the law offices of Juddson H. McPherson, LLC, 626 S. Byers, in the City of Joplin, County of Jasper, State of Missouri, before SHARON K. ROGERS, C.C.R.650, a Certified Court Reporter and a Notary Public within and for the County of Jasper, and State of Missouri.

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

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APPEARANCES

MR. THOMAS E. LORAINE Loraine & Associates, LLC 4075 Osage Beach Pkwy., Suite 300 Osage Beach, MO 65065

tellaw@loraineandassociates.com

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

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S T I P U L A T I O N

IT IS HEREBY STIPULATED AND AGREED that this Sworn Statement may be taken by steno-mask type recording by SHARON K. ROGERS, a Certified Court Reporter, and afterwards reduced into typewriting.

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 4 I N D E X Page/Line DIRECT EXAMINATION BY MR. LORAINE . . . 5-4

E X H I B I T S

Exhibit #55

6-1

JRC Land Purchase Financial Summary

Note:

Exhibits in separate binder

(sic) - typed as spoken (ph.) - phonetic

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. A. Q. MIKE WOOLSTON Having been first duly sworn and examined, testified as follows: DIRECT EXAMINATION BY MR. LORAINE: Q. Mr. Woolston, the last time we talked you had given me a list of properties and I don't remember, maybe 25 or so, and one of them I think you had taken a commission on and the rest of them you told me you had not taken one? Correct. That list of property ultimately was combined with some other properties, I suppose, and became in the inventory of the 353 Corporation? Most of them have been. There are still a

few that I think have not been yet. Okay. I have not received the cooperation

that I was hoping from a couple of sources and so I'm going to go back to you to see if you can help me on this aspect. Because the

Council, not only do I want to know these answers, but the Council has also expressed in prior minutes the need to know this information. I'm going to show you what has

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. been marked #55, Exhibit #55, and I'd like you to brief peruse that, if you can. I'll preface it with I obtained this information from Leslie Haase from the 353 records. Right. Now you'll see I think there are, don't quote me, but I counted these, I think there might be 35 properties or something on here, 34 or something to that effect. And in looking at And

this exhibit, I don't know if you've ever seen this particular exhibit before? Never. Okay. Let's go through it just briefly. The

first category on the left is Lot Size and Acres, then there's a Settlement Date, Valuation Amount, Purchase Price, and Wallace-Bajjali Fee, Other Closing Fees, and then Total Amount paid. Uh-huh. If you go all the way down to the bottom it gives you a subtotal, and frankly the purchase price of this list of properties as of December 31st, 2013 was $8,267,823.00. you see that? Do

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. A. Q. A. Q. Right. Now if you add the Wallace-Bajjali fees, -Correct. -- and if you add the closing costs and probably the title insurance you come up with another $133,000.00 for a total. Uh-huh. Now what I am interested in and what the Council has requested before is we know that then this price when you add the Wallace-Bajjali fees and the other closing fees and you get the $8,818,765.00, that will become the basis for what Wallace-Bajjali buys back -Right. -- from the 353 Corporation, okay? Uh-huh. Now what I'm wanting to know, and I've had people in here telling me that the people that sold this property originally, the little people, the property owners before they were assembled into packages were cheated. That's a strong word, but let's say they got $100.00, and then the next guy that bought it got $200.00, and the

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. Wallace-Bajjali took it for $200.00. Well,

you see, under that scenario I gave you it would not be reflected on this piece of paper. Right. I need to know those numbers. Now the only

way I can get those numbers that I know of is to go to Wallace-Bajjali. to us. Right. They have not. Charlie Kuehn might be able He has They could give it

to give us some of those numbers. not.

I may be failing on my job, but I'm

going to take another shot at it because I want to know those numbers and so does the Council. There it's a fact whatever it is,

it is, and however much they made, they made, but we need to know those numbers. I don't

know of anybody else to ask other than you or City Manager Rohr. I've asked City Manager

Rohr and he does not have those numbers available to him. Correct. I think he probably can get them under his contract with Wallace-Bajjali, but you know,

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. I don't know that. If he can't get them maybe you can get them because you know most of these companies are partners or somebody somehow, you know. If you can get those I'd My

like to have that number by this Friday. report is due next Tuesday.

They want me to

come to your board meeting and present this. I should have these numbers. I've been

trying to get these numbers for three months in different ways from different people. Can't get them. Now the other way I could get them is I could go to each owner, you know, each one of the owners if I could find them, -True. -- and say give me your closing statement, if you will. They don't have to do that. Or I

could go to their broker and subpoena some records. Sure. Or we can ask somebody that has access to this information to give it to us quickly. cannot get it so it's either going to be you or Rohr that's going to get it or we're not going to get it. I don't have a lot of I But that's a ten month job.

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Mike Woolston (1-28-14 Investigation) In Re:

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Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. Q. A. A. A. Q. reasons why people wouldn't give that information except they don't want anybody to know how much money they made on the deal. I

don't know that that matters to anybody other than to the City and I don't think it matters, it's a fact complete. It's already

done and it's contract law so somebody made some money. The board wants to know who made

it and so do I, and I think it's part of my job. That's what we need. Do you understand

what I need? I think so. Do you think you could try to get that? I

mean I don't know if you can get it or not, but I mean would you try? I don't think I'm going to be very helpful because I wouldn't be privy to any of the Wallace-Bajjali numbers because I wasn't involved in any of that so the only ones that I might know would be the list that I gave you that would have -Any of those duplicates. Right. There would be some. Like I said I never worked for

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Joplin Critical Investigation

Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. Q. Q. A. Wallace-Bajjali so I wasn't involved in any of those transactions so I'm not privy to any of those numbers. Of course you work for them now? No, I do not work for Wallace-Bajjali. I

have never been involved in a transaction where Wallace-Bajjali was a buyer or a seller. Okay. Let's put it this way. Charlie works

with them? Correct. And maybe you can get this information and maybe you can't. What I'm asking you to do

is to try to get it by this Friday if you can and email it to me. will help. Right. There's nothing to say about this other than the fact that Wallace-Bajjali made $417,900.00 in fees. Right. I don't like that because somebody else did all the work, but it's a fact of life, you know, and I'd just kind of like to know the original people. Because I've got some Whatever you can get

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. A. Q. Q. A. Q. A. Q. people in here testifying that they made 200 and 300 percent. Now those people are people

that, you know, they're off the street, come in off the complaint line. Right. And they might be full of bologna. I'm sorry? I said they may be full of bologna, you know. A. That's what I was about to say, how would

they be privy to that? Well, and some of them have talked with other owners so I don't know, but it is a legitimate question for the City. To that

extent I would like you to see what you can do with it. I'll give you a copy of this We'll make you a

thing to take with you. copy of this.

That essentially is the last

portion of my report that I think I need. Okay. Is there anything that you need to ask me or you would like to? I'm trying to get this

report done by Tuesday. And I guess part of what I didn't understand is I guess you're going to present your report to us initially in closed session?

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Joplin Critical Investigation

Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. Q. A. I hope so. Then we'll go out to open session and you'll present it again? Well, that's what I'm told. to the Council what I do. I think it's up I'm working for

the Council and I think my report is work product for the Council. That's why I was a little surprised. Why

would you present it in closed session and then open session? It's not my desire to do that. That was the impression that I was given. Well, I don't know who gave you that, but I've gotten the same impression. And I'm

going to say that to me it depends on what the Council, not one member of the Council, but it depends on what the entire Council tells me to do because I'm working for them. And, you know, I'll tell you something, there's a lot of sensitive stuff in this report that I wouldn't want all the depositions turned over. the purpose. I mean that's not

The purpose is --

Will that all become public ultimately anyway?

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Joplin Critical Investigation

Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. A. Q. A. Q. Q. Not really. No, whatever portion that the

Council wants to keep -Falls under attorney/client? It does. Sure. And my job is I do what you guys tell me to do, okay? Right, right. That's all I have for you today, so I'll get you a copy of this thing to go and whatever is helpful. And I thought the same thing, I You understand?

thought, well, the ones of these that might have been on your list you might be able to help with. And there will be quite a few of But some of

them, you know, some of these.

these, now that thing isn't coded, but these are coded and these are the projects. You

can make a notation on this one if you'd like, but it's here but it is clearer. Right. But you'll see this is the old people Coca-Cola and various projects there. Right. So I don't know if that helps you any or not. A. Most of them I can tell by the address where

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Mike Woolston (1-28-14 Investigation) In Re:

Joplin Critical Investigation

Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 (SWORN STATEMENT CONCLUDED) A. A. Q. Q. they're at like the Coca-Cola. I can't. I still don't have that kind of Okay?

insight and feeling for the property. Sure.

Let me get you a copy of this and we'll call it good. I thank you very much for coming in

on this short notice. Okay.

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REPORTER'S CERTIFICATE

STATE OF MISSOURI ss. COUNTY OF JASPER I, SHARON K. ROGERS, Certified Court Reporter in the State of Missouri, do certify that pursuant to the foregoing Stipulation the witness came before me on the 28th day of January, 2014, was duly sworn by me, and was examined. That examination was then taken by me by

steno-mask recording and afterwards transcribed; said Sworn Statement is subscribed by the witness as hereinbefore set out on the day in that behalf aforesaid and is herewith returned. I further certify that I am not counsel, attorney, or relative of either party, or clerk, or stenographer of either party or of the attorney of either party, or otherwise interested in the event of this suit.

________________________ SHARON K. ROGERS, CCR-650

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