HomeMy WebLinkAbout1994-09-27; City Council; 12879; PALOMAR AIRPORT ROAD ASSESSMENT DISTRICT NO. 86-1 DELINQUENT ASSESSMENTSi AB # 12,8?q
MTG. 09/27/94
DEPT. FIN
TITLE: DEPT. HD. 1
CITY MGR. -
CITY ATTY~ PALOMAR AIRPORT ROAD ASSESSMENT DISTRICT
NO. 86-1 DELINQUENT ASSESSMENTS
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I 0 TY OF CARLSBAD @ - AG DA BILL dW
RECOMMENDED ACTION:
Adopt Resolution No. 94-233 authorizing the firm of Brown, Diven & Hentschke to
initiate a lawsuit to foreclose on property with delinquent assessments within the Palomar
Airport Road Assessment District and directing the County Tax Collector to remove the
delinquent amounts from the tax rolls.
ITEM EXPLANATION:
In 1988, the City of Carlsbad issued $5.1 million in bonds for the construction of certain
public improvements to Palomar Airport Road. As part of the district formation and
issuance of debt, Council covenanted with bondholders to initiate judicial foreclosure in
the event of a delinquency and to commence the procedure within 150 days of the
delinquency. The Palomar Airport Road Assessment District property owners are
responsible for payment on the debt. Debt service funds and administrative fees are
collected by the County Tax Collector through annual assessments placed on property
tax bills.
For the 1993-94 property tax year, one property owner, Morgan/Palomar Industrial, is
delinquent in the amount of $53,595, plus penalties and interest. The City has been in
contact with the property owner through mail and by phone regarding the delinquency,
and the property owner has been advised that the City is required to file a lawsuit to
foreclose the special assessment lien against the property. We have not received
payment to date, and therefore, staff is requesting authorization to retain the firm of
Brown, Diven & Hentschke, who will file suit to foreclose the liens on the property. As
part of the foreclosure suit, the assessment will be taken off the County tax rolls.
FISCAL IMPACT:
Morgan/Palomar Industrial is responsible for approximately 10% of the debt service. No
other property assessments are delinquent. At present, adequate Palomar Airport Road
Assessment District reserves exist for payment of debt service, and all debt service
payments to bondholders are current.
The delinquent property owner is responsible for all fees associated with the foreclosure
after the suit has been filed. If delinquent assessments are paid prior to initiation of the
lawsuit, costs will be funded by the Palomar Airport Road Assessment District
administrative fees.
EXHIBITS:
1. Resolution No. 9 ‘I -3 73 ordering judicial foreclosure and removal from the tax rolls
of delinquent assessments.
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RESOLUTION NO. 94-273
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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CAUFORNIA, ORDERING JUDICIAL FORECLOSURE
MENT BOND ACT OF 1915, AND ORDERING THAT THE TAX
COLLECTOR BE CREDITED WITH THOSE ASSESSMENTS
OF DELINQUENT ASSESSMENTS PURSUANT TO THE IMPROVE-
WHEREAS, the City of Carlsbad (“CityY) has conducted special
assessment proceedings from time to time, resulting in the issuance and sale of
improvement bonds pursuant to the provisions of the Improvement Bond Act of
191 5 (California Streets and Highways Code Sections 8500 and following;
hereafter referred to as the “1915 Act“); and
WHEREAS, pursuant to the 1915 Act, the City has duly and regularly .-.
issued and recorded the unpaid assessments, which assessments and each
installment thereof and interest and penatties thereon constitute liens against the
lots and parcels of land against which they are made, until the same are paid; and
WHEREAS, certain assessments and installments have not been paid
when due, and certain installments of those assessments may not be paid in the
future; and
WHEREAS, under the provisions of Section 8830 of the Streets and
Highway Code of the State of California, this City Council is authorized, not later
than four (4) years after the due date of the last installment of principal, to order
the same to be collected by an action brought in the superior court to foreclose
the lien of those assessments; and
WHEREAS, in the event of assessment delinquency, the City covenanted
with bondholders to foreclose within 150 days of the delinquency; and
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WHEREAS, under the provisions of Section 8833 of the 1915 Act, when
such foreclosure action is ordered, the county tax collector is to be credited upon
the assessment roll then in his hands with the amount charged against him on
account of the assessments to be sued on and to be relieved of further duty in
regard thereto.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. The City hereby orders that the delinquent assessments listed on
Exhibit "A' attached hereto and incorporated herein, and all future installments of
those assessments which are not paid when due, be collected by action brought
in the Superior Court of San Diego County to foreclose the liens thereof. .--
2. The firm of Brown, Diven & Hentschke is hereby retained as special
legal counsel and is authorized and directed to institute such actions in the name
of the City to foreclose the liens of all such delinquent assessments.
3. The City's Finance Director, in cooperation and in conjunction with
special counsel, is authorized to remove delinquent assessments from the San
Diego County tax records.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council on the 27th day of SEPTEMBER , 1994, by the following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila
NOES: None
ABSENT: None
ATTEST:
(SEAL)
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EXHIBIT "A"
PALOMAR AIRPORT ROAD ASSESSMENT DISTRICT NO. 86-1
DELINQUENT PARCEL
PROPERTY OWNER: MORGAN/PALOMAR INDUSTRIAL
DELINQUENCY DATE: DECEMBER 10,1993
APN#: 21 2-040-25-00
AMOUNT*: $60,563
--_ * Amount is approximate; new penalties may have accrued since the last report from
the County Tax Collector. -