HomeMy WebLinkAbout1994-02-08; City Council; 12578; College Blvd AD No. 85-02 Delinquent AssessmentsW=Y OF CARLSBAD - AG’YDA BILL ”
TITLE:
COLLEGE BOULEVARD ASSESSMENT DISTRICT CITY ATTY
NO. 85-2 DELINQUENT ASSESSMENTS CITY MGti?@
RECOMMENDED ACTION:
Adopt Resolution No. 9 y- ‘? 5 authorizing the firm of Brown, Diven & Hentschke to
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 No. 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 is expected
to occur in April 1994.
Another property owner, YT Partners LP is now delinquent for the property tax year 1992-93
in excess of $4,964. The December installment for the tax year 1993-94 has now also become
delinquent in the amount of $3,722 (including penalties). The City has been in contact with
the property owner through the mail and by phone regarding the delinquency, and the
property owner has been advised that the City is required to file a lawsuit to foreclose the
special assessment lien against the property. We have not received payment to date, and
therefore, staff is requesting authorization to retain the firm of Brown, Diven & Hentschke,
who will file suit to foreclose the liens on the property. As part of the foreclosure suit, the
assessment will be taken off the County tax rolls.
FISCAL IMPACT:
YT Partners LP is responsible for approximately .5% of the College Boulevard debt service.
Only Carlsbad Airport Center and YT Partners LP are delinquent. At present, adequate
College Boulevard Assessment District reserves exist for payment of debt service, and all debt
service payments are current.
The delinquent property owner is responsible for all fees associated with the foreclosure after
the suit has been filed. If delinquent assessments are paid prior to initiation of the lawsuit,
costs will be funded by the College Boulevard Assessment District administrative fees.
EXHIBITS:
1. Resolution No. 9q- q$- ordering judicial foreclosure and removal from the tax rolls
of delinquent assessments.
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RESOLUTION NO. 94-42
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ORDERING JUDICIAL FORECLOSURE
OF DELINQUENT ASSESSMENTS PURSUANT TO THE IMPROVE-
MENT BOND ACT OF 1915, AND ORDERING THAT THE TAX COLLECTOR BE CREDITED WITH THOSE ASSESSMENTS
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 provisions 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 instahment 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 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
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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 City’s Finance Director, in cooperation and in
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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 FEBRUARY , 1994, by the following vote, 8th day of
to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila
NOES: None
LLtz%?L l3&?luti ALETHA L. RAUTENKMNZ, City Clerk
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EXHIBIT “A”
COLLEGE BOULEVARD ASSESSMENT DISI’RICX NO. 85-2
DELINQUENTPARCEL
PROPERTY OWNER: YT PARTNERS LP
DELINQUENCY DATE: DECEMBER lo,1992
APN#: 212-120-02-00
AMouNT*: $8,686
* Amount is approximate; new penalties may have accrued since the last report from the County Tax Collector.