What to do?

[hillsatthebeach]

Any suggestions what to do if we bought a lot that was supposed to be developed into a community but it never happened and now we have heard that the developer is being foreclosed on? We did not buy from the developer. It's off of 393. There is no access to the lots at this time so we can't sell it, build on it, etc.

 

[Smiling JOe]

I don't understand how that happened since the County now requires infrastructure such as roads, utilities, etc to be in place prior to selling lots. Can you be more specific about the development name and location?

 

[hillsatthebeach]

It's called Hampton Creek and it's as soon as you turn north on 393 on the right. At first the delay was because of the DEP but now I think it's just a money issue. The devleoper is Summit and I think they are the ones who also developed the townhomes in Freeport that are now being rented out. I think I need to try and get all of the owners together to make a case for the fact that we can not sell or build on the property we purchased but I don't know what good it will do if the developer is going belly up.

 

[hillsatthebeach]

To be more specific it is the Summit Development Group

 

[ckhagen]

I suppose you're talking about that parcel right behind the gas station where the mobile home park used to be? The place where the little road caved in over the ditch? I was wondering what was ever going to happen to that spot. Now... why did I think it had something to do with the whole HopeTown thing?

 

[pete23]

In order to sell lots without completing the infrastructure the developer had to provide the county with a letter of credit from the bank to insure that the funds were available to complete the project if the developer did not. I would check with the planning department at the county as to the status the letter of credit. If the county dropped the ball and the letter of credit has expired thenI would be asking the county to get the roads built so you can get to your property.

 

[hillsatthebeach]

So could we technically have a case against the county?

 

[AAbsolute]

So could we technically have a case against the county?

I understand that in order to file the plat and sell individual lots either the improvements would have to be in order and complete or a bond would have to be posted to complete the improvements which would be posted in cash or credit from a bonding company. Either way, the improvements would be gauranteed to be completed as platted.
Did they close on divided deeds? I was looking at the appraiser's site of the maps and don't know yet which property this is. There may be a value to property behind Ace.

 

[sell30a]

County commissioners are incompetent

I have developed several neighborhoods in this area which most of you are familiar with. One problem with a Bank Letter of Credit: THEY EXPIRE

Here's how it works:
The County accepts a Letter Of Credit that can be drawn on if the developer doesn't do the work per the approved development order. With that the developer can record the Plat and sell and CLOSE the lots. These lots dont exist yet but a piece of paper recorded at the county says the county can draw funds from the developers bank if the developer doesnt finish the project.

GUESS WHAT? if the County commissioners arent on top of every letter of credit, and every failing project, they dont draw on the letter in time and the letter becomes worthless. .

Concerened Citizens need to bring this up in the next county commissioners meeting and request that the county attorney pull every one of these open letter of credit that the county is holding and draw on them before they expire (typically after one year from issuance). Otherwise its going to be taxpayer dollars finishing these projects out.

A developers friend of mine went bust before his neighborhood was developed and the County let his letter expire. There is now an unfinished development that will never be completed with a few lots sold and closed.... Sounds like your situation.

Attorneys will be very busy over the next 5 years.

 

[ClintClint]

Some developers have a sense of "gotcha" if somehow the letter of credit expires and the county doesn't catch it??? Well, guess what else expires if the project goes unfinished-----the developer's reputation.