HomeMy WebLinkAboutCFD Workshop Grays Crossing Update 6-6-18
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 foreclosureare subject to more than 5% of the amount billed is past due, all past due parcels 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•Stradling
Yocca Carlson & Rauth, P.C. (“SYCR”) initiate CFD foreclosures•CountyCurrent owner of record information is collected annually from Nevada •Willdan Financial Services handles the initial
collection for delinquencies•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 never recorded the deed and rejecting the demand for paymentThe Town responded May 24, 2018 denying ownership because it •A demand letter for payment to the Town was
sent May 11, 2018•Delinquent special tax, penalties and interest total $2.6M•The Town exercises control over the Cottage parcel•The Town has held an executed, unrecorded deed for 9
years•Developer failed to perform and title transferred to Town•15, 2010of roundabout at SR 89/Prosser Dam Rd/Alder Drive by October The Town received an executed deed as security for
completion •Town of Truckee owns the Cottage parcel-All facts point to •Recent Developments •Gray’s Crossing UpdateGray’s Crossing Update
NEW INFORMATION Not all improvements completed by dates required•Onsite trails•Roundabout at SR 89/Prosser Dam Rd/Alder Drive •Roundabout at SR 89/Donner Pass Road•Onsite Improvements•SIA
required completion, by certain dates, of the following•Phase 3 Subdivision Improvement AgreementApril 2007 Town and Gary’s Station LLC enter in Gray’s Crossing, •Background•Gray’s
Crossing UpdateGray’s Crossing Update
NEW INFORMATION require deed to be recordedIf roundabout not constructed on time, Town had right to •Roundabout in the in the 2010 construction season …”… fail to construct the SubdividerOctober
15, 2010, only if be held by Fidelity National … to be recorded on or after “Create a Grant Deed for … Cottage Site, in Town’s name, to Grant Deed to Cottage Site•$50k per lot sold
of remaining 81 lots to be placed in escrow•Kept $2.5 M performance bond in place•Provided security for Town•Rd/Alder Drive to 10/15/2010Extended date for completion of roundabout at
SR 89/Prosser Dam •July 2009-First Amendment to Subdivision Improvement Agreement •Gray’s Crossing UpdateGray’s Crossing Update
NEW INFORMATION Cottage Site transferred to Town immediately upon default•No law requires the Town to record the deed•Recording gives notice of ownership•Town accepted it in the First
Amendment-required acceptance -Recording of deed not required to transfer ownership •CFD’s Position•recorded the deed; We had right, but not obligationWe don’t own property because
we never –Town’s position •Deed was being held by Town, not Fidelity National•roundabout not timely completed–Grays Station defaulted •July 2009-First Amendment to Subdivision Improvement
Agreement •Gray’s Crossing UpdateGray’s Crossing Update
NEW INFORMATION to TDPUDApril 2018 Town offered to record deed and then transfer property •Town offered to amend Takeover Agreement to reflect disclaimerJanuary 2014 if surety wanted
to disclaim interest in property, •without a signed written amendment-transfer the property Town complied with surety’s “request” not to record the deed / •to transfer the property
to the suretyRequired deed to be recorded within 7 days and then for Town •2011 February -and Gray’s Station’s surety Town Executed by ••Town exercises control over the Cottage parcel•Gray’s
Crossing UpdateGray’s Crossing Update
NEW INFORMATION against the public entity that acquired the property …”negotiated transaction … the special tax … shall be enforceable “If property … is acquired by a public entity through
a -Town may be responsible for payment under Govt. C. 53317.3 •Fiduciary duty to bondholders to foreclose•Assess whether legal proceedings are warranted•Anticipate response from Town•development
of propertyfrom ad valorem tax rolls and work toward sale and Requesting payment, stop wasting asset by removing property •Detailing basis for belief that Town owns the Cottage parcel•On
June 5, 2018, CFD responded to Town•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