If the police department takes the guns you will never get them back by law they have to go to a bonded Warehouse they are not going to willingly give them back to you without a huge fee.
This is not true. The cops MAY turn them over to a bonded warehouse, but they're not required to. I was involved in a similar case where the cops held on to the guns for over a year before making any sort of fuss about it, then were perfectly happy to work with an FFL to transfer them to me.
Because they don't belong to the OP. They belong to the fellow who no longer has an LTC.
Are you sure? Are you absolutely sure that the guy didn't give or sell them to the OP nine years ago? The state's records of FA-10s are notoriously inaccurate or missing, and the statute of limitations has long expired for "failure to report the transaction"