Loading...
HomeMy WebLinkAboutCFD Workship Grays Crossing Update Old WORKSHOP ITEM #7Including Current DelinquenciesUpdate on Gray’s Crossing CFD Including Current DelinquenciesUpdate on Gray’s Crossing CFD June 6, 2018 Gray’s Crossing Update Various community spaces•40,700 square feet of commercial space •21 residential lofts •115 townhomes •89 single family freestanding cottages •92 unit income restricted apartment complex•408 single family lots •Gray’s Crossing was originally entitled for:•BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update Apportionment Special Taxes are levied pursuant to a Rate and Method of •derived from the Special TaxesThe CFD bonds are secured by, and payable from, the revenues •backbone public infrastructure through two bond issuesCFD financed •administerhad largest share of utilities financed and agreed to The District •in 2004 (“CFD”) Community Facilities District formed the Gray’s Crossing The District •BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update The reserve fund is currently funded at the required level•September 2017•September 2016 •September 2015 •September 2014 •Draws on the reserve fund have been required on•to pay debt service on the bonds The revenues available from the Special Taxes has been insufficient •continued to rise11 the amount of delinquencies increased and -Beginning in FY 10•11 the delinquencies were relatively minor-Prior to FY 10•BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update foreclosuresubject to more than 5% of the amount billed is past due, all past due parcels are If •orparcel or property owner is past due more than $7,500, A •proceed with foreclosure if:mustBoard •applyBond covenant defines when the foreclosure proceedings •BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update$20,675 (Payment Pending)Charles Anderson, et al.43-750-19& $42,796$28,017Grays Station LLC II07-010-05 & 43-010-43$49,167Grays Station LLC02-770-19Judgement AmountOwner of Record as:December 31, 2017 or threatened litigation at The most recent audit letter lists pending •The annual financial statement audit letter is provided by SYCR•foreclosuresStradli ng Yocca Carlson & Rauth, P.C. (“SYCR”) initiate CFD •CountyCurrent owner of record information is collected annually from Nevada •delinquenciesWilldan Financial Services handles the initial collection for •BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update 07 (“Parcel F”)-010-APN 43•05 (“Parcel D”)-010-APN 43•02 (the “Cottages Parcel”)-770-APN 19•family undeveloped parcels-three large multiThe majority of the current and past delinquencies are caused by •BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update“Parcel D”“Parcel F”“The Cottages”BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update taxesbids sufficient to remedy the past due there were no was obtained Although a judgment in favor of the CFD •judicial foreclosure proceedingsto Properties have already been subject •and penalties continue to compound Delinquencies •undevelopedthree parcels remain in default and The •BACKGROUND / HISTORY Gray’s Crossing Update Gray’s Crossing Update Another interested in Lot D, and the Cottages site•One interested in all three parcels•monthsDistrict staff has been contacted by several developers in recent •The District worked on the proposal for over a year•earlier this yearTriumph Development LLC backed out of a development proposal •of the three undeveloped parcelsDistrict staff continues to seek opportunities to facilitate development •NEW INFORMATION Gray’s Crossing Update NEW INFORMATION demand for paymentThe Town responded May 24, 2018 denying ownership and rejecting the •The CFD issued a demand letter to the Town for payment•Delinquent special tax, penalties and interest total $2.6M•The Town has held an executed, unrecorded deed for 9 years•The Town of Truckee exercises control over the Cottages parcel•Recent Developments •Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Recordation does not transfer ownership•The Town kept the executed grant deed and has not recorded it•roundabout not timely completed-Gray’s Station LLC defaulted •offsite roundabout by October 15, 2010 Town acquired Grant Deed as additional security for completion of •First Amendment to Subdivision Improvement Agreement•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION transfer the property without a signed written amendmentTown complied with Surety’s request not to record the deed and •the SuretyRequired deed to be recorded and then transfer of the property to •February 2011 and Surety in Town Executed by •AgreementThe Takeover •Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION determine if legal proceedings are warrantedAssess Town action based on payment demand due June 11 and •Next Steps•Gray’s Crossing UpdateGray’s Crossing Update FISCAL IMPACT There is no fiscal impact associated with this workshop item.•Gray’s Crossing UpdateGray’s Crossing Update RECOMMENDATION Provide input and direction to staff.•Gray’s Crossing UpdateGray’s Crossing Update