HomeMy WebLinkAbout11 Old Greenwood and Gray's Crossing Delinquencies Update Agenda Item # I I
TRUCKEE DONNER
P -)I'c Ut'l*ty D'str*
u L I I I 1 1 C t
WORKSHOP
To: Board of Directors
From: Robert Mescher
Date: August 01, 2012
Subject: Old Greenwood and Gray's Crossing Community Facilities
Districts - Delinquencies Update
1. WHY THIS MATTER IS BEFORE THE BOARD
This workshop item is intended to update the Board of Directors on the status of the
delinquent assessments in Old Greenwood and Gray's Crossing Community Facilities
Districts.
2. HISTORY
In 2003, the Board formed a Community Facilities District (CFD) for the Old
Greenwood development. In 2004, the Board formed a CFD for the Gray's Crossing
development and authorized the sale of additional bonds in 2005. Both CFDs were
formed for the purpose of selling bonds to pay for portions of the infrastructure in both
the Old Greenwood and Gray's Crossing developments.
Each year, the property owners of each CFD have been assessed to pay the principal
and interest on the bonds.
The Board retained Sherman & Feller to collect delinquent assessments from 2009/10
and earlier, and retained Burke, Williams, & Sorensen LLP (BWS) to collect
delinquent assessments from the 2010/11 tax roll.
3. NEW INFORMATION
Sherman & Feller was very successful in their collection efforts. Of the 114
assessments from 2010, only four delinquent assessments remain unpaid from
2009/10 and earlier. The Nevada County Sheriff auctioned four parcels this year,
however, no qualified bids were received. The District may auction the parcels again
at a later date.
Last year, the District assigned thirteen additional delinquent assessments to BWS,
and six assessments were collected. The remaining seven parcels with delinquent
assessments will continue through the foreclosure process until collected.
This year, there are approximately 110 new delinquencies. Eighty-one of those
parcels are owned by a subsidiary of East West Partners and twenty-two parcels are
owned by a Texas-based developer named UDC. Willdan Financial Services, our CFD
administrators, mailed collection notices when the first and second installment
payments were delinquent.
Next month, Willdan will be mailing one last notice.
In September, staff will request the Board to authorize an attorney to collect the
remaining delinquencies, which may include the foreclosure process.
4. FISCAL IMPACT
There is n0 direct fiscal impact to the TDPUD with this workshop item. All charges
incurred related to the judicial foreclosure process are the responsibility of the property
owners.
5. RECOMMENDATION
Review this report and provide comment.
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager