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HomeMy WebLinkAbout1995-06-13; City Council; 13176; College Blvd AD No. 85-02 Delinquent Assessmentsp Y d f 8 CV--- OF CARLSBAD - AGEN-4 BILL s-@ Q, ll% _- . AB# i3:/70 TITLE: MTG. 6/l 3/95 COLLEGE BOULEVARD ASSESSMENT DISTRICT DEPT. FIN NO. 85-2 DELINQUENT ASSESSMENTS RECOMMENDED ACTION: Adopt Resolution No. 4 5- j 50 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. There are two property owners currently delinquent for the property tax year 1994-95 in excess of $27,000, including penalties. The Finance department has contacted the property owners in writing and by phone, however, taxes remain unpaid. Staff is requesting authorization to retain the firm of Brown, Diven & Hentschke, who will file suit to foreclose the liens on the properties. As part of the foreclosure suit, the assessments will be taken off the County tax rolls. FISCAL IMPACT: YT Partners LP and Rancon Financial are-responsible for approximately 2.8% 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 owners are 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, 95- I SO ordering judicial foreclosure and removal from the tax rolls of delinquent assessments. 2. Map of College Boulevard Assessment District and delinquent parcels. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 95-150 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 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 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 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 '27 28 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 mday of JUNE , 1995, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall NOES: None ABSENT: None ATTEST: 3 ,A--. EXHIBIT “A” COLLEGE BOULEVARD ASSESSMENT DISTRICT NO. 85-2 DELINQUENT PARCELS PROPERTY OWNER: DELINQUENCY DATES: ASSESSOR’S PARCEL NUMBER: DELINQUENCY AMOUNT*: . . . ..*.............*....* PROPERTY OWNER: DELINQUENCY DATES: ASSESSOR’S PARCEL NUMBER: DELINQUENCY AMOUNT*: YT PARTNERS LP DECEMBER 10, 1995 APRIL 10, 1995 2 12- 120-02-00 $7,833 *....*.,.........*.......*.......*. RANCON FINANCIAL CORP. DECEMBER 10, 1995 APRIL 10, 1995 212- 120-33-00 ’ $19,310 * Amount is approximate; additional penalties may have accrued since the last report from the County Tax Collector. 4 - EXHIBIT 2 City of Carlsbad College Boulevard Assessment District No. 85 -2 Delinquent Parcels 3 1995 City of Cadsbad GIS