HomeMy WebLinkAbout1993-03-16; City Council; 12104; College Blvd AD No. 85-02 Delinquent AssessmentsCl’? OF CARLSBAD - AGENA BILL &
4B # I& 10 Y TITLE:
MTG. 3,‘~ MO.? COLLEGE BOLJLEWRD ASSESSMENT DISrRtCr
IEPT. F1N NO. 85-2 DELINQUENT ASSESSMENT.S
3ECOMMENDED ACTION:
DEPT. HD.
CITY ATTY
CITY MGR:
Adopt Resolution No. authorizing the firm of Brown, Diven & Hentschke to 9 3 -4 q
initiate a lawsuit to foreclose on property with delinquent assessments within the College
Boulevard Assessment District and directing the County Tax Collector to remove the
delinquent amounts from the tax rolls.
ITEM EXPLANATION:
In 1986, the City of Carlsbad issued $9.5 million in bonds for the construction of College
Boulevard. 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 College Boulevard
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.
On l/17/92 Council adopted Resolution 92-3 authorizing the firm of Brown, Diven &
Hentschke to initiate a lawsuit to foreclose on property with delinquent assessments
within the College Boulevard Assessment District. At that time one property owner,
Carlsbad Airport Centre, was delinquent in payment of assessments. Foreclosure
proceedings began and continue on the Carlsbad Airport Centre property through Robert
Hessell of the firm Brown, Diven & Hentschke. Bankruptcy proceedings stalled this
process, but foreclosure action is now proceeding.
Another property owner, MI1 Partnership, is now delinquent for the property tax year
1991-92 in excess of $5,700, including penalties and interest. 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 IMPACE
MI1 Partnership is responsible for approximately .5% of the debt service. At present,
adequate College Boulevard Assessment District reserves exist for payment of debt
service, and all debt service payments 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 College Boulevard Assessment District administrative
fees.
1. Resolution No. 013 -q? ordering judicial foreclosure and removal from the tax
rolls of delinquent assessments.
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RESOLUTIONNO. 93-49
RESOLUTIONOFTHECITYCOUNCILOFTHECITYOF CARLSBAD,CALIFORNIA, ORDERINGJUDICLALFORECLOSURE OFDELINQUENTASSESSMENTSPURSUANTTOTHEIMPROVE- MENTBONDACTOF1915,ANDORDERINGTHATTHETAX COLLECTORBECREDITEDWITHTHOSEASSESSMENTS
WHEREAS, the City of Carlsbad (“City”) has conducted special
assessment proceedings from time to time, resulting in the issuance and sale
of improvement bonds pursuant to the pro&ions of the Improvement Bond
Act of 1915 (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 penalties 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 instalhnent 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
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WHEREAS, in the event of assessment delinquency, the City
covenanted with bondholders to foreclose within 150 days of the
delinquency; and
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.
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3. The Cit@ 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 16th day of March , 1993, by the following vote,
to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard and Finn
NOES: None
ABSENT: None
ATTEST:
R. 6?*, ALETHA L. RAUTENKMNZ, City Clerk (SEAu
EXHIBIT “A”
COLLEGE BOULEVARD ASSJZSSMENT DISI’RICX NO. 85-2 DEXINQUENT PARCEL
PROPERTY OWNER: MI1 PARTNERSHIP
DELINQUENCY DATE: APRIL 10, 1992
Al’N# : 212-091-06-00
AMOUNT* : $5,740
* Amount is approximate; new penalties may have accrued since the last report from the County Tax Collector.