HomeMy WebLinkAbout1994-02-08; City Council; 12579; PALOMAR AIRPORT ROAD ASSESSMENT DISTRICT NO. 86-1 DELINQUENT ASSESSMENTSDA BILL LI
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MTG. 02/08/94
RECOMMENDED ACTION:
Adopt Resolution No. 94- q3 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 1992-93 property tax year, one property owner, MorgWPalomar Industrial, is
delinquent in the amount of $25,042, plus penalties and interest. In addition, the 1993-94
December 10 installment became delinquent in the amount of $26,798, plus penalties. 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,
Dhen & 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
MorgarUPalomar 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
1. Resolution No. 9 L/- q.? ordering judicial foreclosure and removal from the tax rolls
of delinquent assessments.
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RESOLUTION NO. 9 4 - 4 3
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, 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 ("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 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 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 fkm 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
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 8th day of - 1994, by the following vote,
to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finni
NOES: None
ABSENT: None
ATTEST:
- ALETHA L. RAUTENKRANZ, City Clerk ) (SEAL)
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EXHIBIT "A"
PALOMAR AIRPORT ROAD ASSESSMENT DISTRICX NO. 86-1
DELINQUENT PARCEL
PROPERTY OWNER MORGAN/PALOMAR INDUSTRIAL
DELINQUENCY DATE: APRIL 10,1993
APN#: 212-040-25-00
AMOUNT*: $51,840
* Amount is approximate; new penalties may have accrued since the last report
from the County Tax Collector.