Tuesday, December 29, 2009

Being Stubbon Hurts Everyone

November 25th, 2009
Being Stubborn Hurts Everyone.

My GPS has a sick sense of humor. "Make a U-Turn". "Make another U-Turn".

So when it kept sending me to bike path when I was searching for some lots I
was appraising I was pretty skeptical. But after an hour+ of driving around
and not finding the lots, I parked the car and walked down the bike path. I
met on woman on the path who directed me to the lots. Turns out the bike
path WAS the road to reach the lots but the City closed it 2 years ago.

The closed road was just one of the reasons only 1 lot had sold in the
subdivision I was appraising. Some are beautiful lots-if you can find them.
And once you do - its a low traffic neighborhood.

The developer had petitioned the city to install the roads and utilities.
And the park fees, for whatever reason, were not collected at the recording
of the final plat like most cities require. The development agreement was
backed by a Letter of Credit.

With only 1 lot sale, the developer did not make his tax payments, which
included the assessments to pay for the improvements. Couple years go by and
the City sues the bank to collect on the Letter of Credit. But that Bank
went under and the Letter of Credit is wiped out.

So now the City is taking the position that all assessments and park fees
must be paid on ALL lots before issuing ANY building permits. Its kind of
hard to market lots you can't build on.

About 2/3s of these lots really nice and have value beyond the assessments
and park fees. But the City won't accept partial payment for the
development. The remaining 1/3 are maybe worth what's owned on them and it
makes sense for the bank to just let those go tax forfeit.

If the City would work with the succeeding bank these lots can get sold, the
cities debt can be paid, and houses can be built to generate additional tax
revenue. Otherwise they will likely all go tax forfeit and be sold for less
than the city's debt.

About a year and ½ ago Mr. Dustbunny (the rabbit that does NOT go to school)
was chasing Brewster the Cat. They got in a big fight and Brewster bit Mr.
Dustbunny's long ear. That infection from the cat bite never healed and Mr.
Dustbunny, sadly, is in Bunny Hospice. Mr. Dustbunny and Brewster have
forgiven each other.

Being stubborn hurts everyone.

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