new tax for homeowners
QQQ

Denver, CO

#21 Jan 19, 2010
I know that on January 12, 2009 the Commission voted to let Olivia Farms allocate $1,660,000 in special assessments to Lot 31 Block 12. That lot is 8 acres of wasteland. There are no improvements on this lot.

The two previous requests from Olivia Farms for allocation of special assessments did not have a Lot 31 Block 12.

They also allocated the remaining special assessments $24,551 to some lot and $37,000 to others. They are presently circulating a sales offering of the lots with the lowers special assessments.

The City may get stuck with $1,660,000 on Lot 31 Block 12 and the Lots with $37,000.
St Marys Road

Wichita, KS

#22 Jan 19, 2010
QQQ wrote:
I know that on January 12, 2009 the Commission voted to let Olivia Farms allocate $1,660,000 in special assessments to Lot 31 Block 12. That lot is 8 acres of wasteland. There are no improvements on this lot.
The two previous requests from Olivia Farms for allocation of special assessments did not have a Lot 31 Block 12.
They also allocated the remaining special assessments $24,551 to some lot and $37,000 to others. They are presently circulating a sales offering of the lots with the lowers special assessments.
The City may get stuck with $1,660,000 on Lot 31 Block 12 and the Lots with $37,000.
And now the taxpayers will get stuck with the special assessments on all these other subdivisions too.

Deer Creek, Micheals Run, Manns Ranch, Turkey Ridge and Turkey Hollow and all these others! The taxpayers shouldnt have to BAILOUT developers for profit business ventures.

Didnt Manns Ranch all get auctioned at a sherriff sale? I read that in the paper? If so who bought it?

"SAY NO TO BAILOUTS FOR DEVELOPERS"
QQQ

Denver, CO

#23 Jan 19, 2010
Corefirst Bank bid in Manns Ranch for what was borrowed on it. I think they have paid the taxes.

Deer Creek is with the FDIC. I dont think the taxes were paid.
Misconceptions

Andover, KS

#24 Jan 19, 2010
To: you will never get it
and
Newby

For the sake of disclosure you needed to add:

If vacant property (land) owners owe taxes for more than three (3) years and Home owners owe taxes for more than two (2) years the city/county takes action to sell the properties to recover the taxes owed.

It does not matter if the developer ever sold the land or not. The current owner of the property is liable for the taxes.

Either 3 years or 2 years, if taxes are not paid the city/county takes over.
QQQ

Denver, CO

#25 Jan 19, 2010
Misconceptions wrote:
To: you will never get it
and
Newby
For the sake of disclosure you needed to add:
If vacant property (land) owners owe taxes for more than three (3) years and Home owners owe taxes for more than two (2) years the city/county takes action to sell the properties to recover the taxes owed.
It does not matter if the developer ever sold the land or not. The current owner of the property is liable for the taxes.

Either 3 years or 2 years, if taxes are not paid the city/county takes over.
I think many of the Banks will step in and foreclose. If the Banks forclose they will probably pay the special assessments and taxes.

I know of one Bank that is not foreclosing because it does not want to be liable for the taxes and special assessments. Those lots will go to the sheriffs sale.

The lots with really high special assessments may not get any bidders at the sheriff sale and they will come back to the City.

The Federal Government is not paying the special assessments and taxes on Deer Creek.
QQQ

Denver, CO

#26 Jan 19, 2010
Misconceptions wrote:
There are some misconceptions going on here.
The city commission MUST set Specials so the cost of infrastructure can be paid.
Specials are set ONCE, normally to be paid by each property owner over a period of 15 years.
Once Specials are set they do not go up or down, rather remain the same for the predetermined period.
The Specials are paid by whom ever owns the property, whether it is a vacant lot, or a house, or other structure is built on it.
Specials are different from property tax.
Property tax is based on the valuation of the property and the adopted mill levy.
Specials are based on the cost of the infrastructure, divided by the properties served by this specific infrastructure. In some case Specials may vary according to the size of the property.
Example: a one acre property vs a two acre property, or by road frontage of the given property.
The longer the city commission waits to assess the Specials, the more interest will accrue on the loans the city took to built the infrastructure.
Therefor more money will have to be repaid and Specials will be higher the longer it takes to assess and start collecting Specials.
A very good explaination of how it all should work.

Problem: The lots in Olivia Farms are not divided as you describe the process. Olivia Farms has $1,660,000 allocated to Lot 31 Block 12. Lot 31 Block 12 is 8 acres of wasteland with no improvements.

Olivia Farms has Lots with special assessments of $24,551 and identical lots at $37,000. Olivia Farms is presently marketing only the $24,551 Lots.

The City Commission approved this on January 12, 2009. They will try and explain that Olivia Farms is in a PUD. Olivia Farms didnt pay their specials or taxes.
Misconceptions

Andover, KS

#27 Jan 19, 2010
QQQ wrote:
<quoted text>
A very good explaination of how it all should work.
Problem: The lots in Olivia Farms are not divided as you describe the process. Olivia Farms has $1,660,000 allocated to Lot 31 Block 12. Lot 31 Block 12 is 8 acres of wasteland with no improvements.
Olivia Farms has Lots with special assessments of $24,551 and identical lots at $37,000. Olivia Farms is presently marketing only the $24,551 Lots.
The City Commission approved this on January 12, 2009. They will try and explain that Olivia Farms is in a PUD. Olivia Farms didnt pay their specials or taxes.
I believe Fort Development still owns the lots in Olivia Farms. Correct me if I am wrong.

That means Fort Development owes the taxes.

There has been so much inequity in the entire process of building and paying for the infrastructure, it is an atrocity that the past city commission was permitted to get away with it.

Although the process is intended by law to work the way I explained in previous posts, it has not always been applied with legality in mind.

Just the fact that similar lots have such a huge difference in Special Assessments speaks volumes.

The fact that some banks will not foreclose on the developers is purely a financial decision, as the taxes owed on those properties are very high. You can refer to the delinquent tax list. You are right the city will probably end up owning those lots, unless they can find a developer that is willing to take it off their hands for
a bargain price, they will be stuck with it.

If the city was in a better financial position, it would be ok. Under the present circumstances it may be the last nail in the coffin called Junction City.
QQQ

Denver, CO

#28 Jan 19, 2010
I think Fort Development still owns Olivia Farms. I checked with the Corporation Commission and Fort Development is required to report owners of 5% or more.
It appears from the Corporation Commission information and a little Google research that some Fat Cats are the major investors in Fort Development.
I believe that Olivia Farms is financed by University Bank in Lawrence. The President and his brother a Bank Board member appear to be investors. The Sutherland Lumber Company in Kansas City. Penny Concrete owners and the Fritzel Development out of Lawrence. A Banker that owns a Bank in Lansing Kansas.
The citizens of Junction City need to get involved and find the truth. It is our money!
Newby

Junction City, KS

#29 Jan 20, 2010
QQQ wrote:
<quoted text>
I think many of the Banks will step in and foreclose. If the Banks forclose they will probably pay the special assessments and taxes.
I know of one Bank that is not foreclosing because it does not want to be liable for the taxes and special assessments. Those lots will go to the sheriffs sale.
The lots with really high special assessments may not get any bidders at the sheriff sale and they will come back to the City.
The Federal Government is not paying the special assessments and taxes on Deer Creek.
If you talk to your banker, I predicate that he will tell you that banks do not pay taxes on foreclosed lots. It represents sending good money after bad and also puts the bank into the status of an investor/developer in the unmarketable lots. Banks are lenders and not land speculators. The additional investment of the bank's money also would be unsecured, assuming that the money owed against the lots already is more than their worth.
QQQ

United States

#30 Jan 20, 2010
Newby wrote:
<quoted text>If you talk to your banker, I predicate that he will tell you that banks do not pay taxes on foreclosed lots. It represents sending good money after bad and also puts the bank into the status of an investor/developer in the unmarketable lots. Banks are lenders and not land speculators. The additional investment of the bank's money also would be unsecured, assuming that the money owed against the lots already is more than their worth.
You may be right I dont know for sure. I hope for Junction City taxpayers that the specials and taxes get paid. Right now there is about $4,000,000 in unpaid taxes for 2010 on lots. That extrapolates out to $80 Million Dollars over 20 years. That is about $10,000 per household in Junction City.
JCer

Gardner, KS

#31 Jan 20, 2010
After listening to discussions from the last commission meeting, something doesn't smell right concerning some developments. Promises made?
concerned

Wichita, KS

#32 Jan 20, 2010
What doesn't smell right is a HUGE conflict of interest.

One commisioner working to profit from a new city street while bashing his competion. It is not right to be speaking on any city projects that benifit yourself. It is not right to speak out against a competitor while holding public office.

Someone at the state needs to look into this! The elected official seems more concerned about protecting his for profit developments than protecting the people.
QQQ

Denver, CO

#33 Jan 21, 2010
Olivia Farms Building Permits should be revoked for not paying taxes!!! JC Law

SECTION 500.060: PERMITS
Permits for the erection, alternation or enlargement of any building may be issued by the City
Manager or his/her representative, provided that the applicant first signs, upon a form provided by the
City Manager or his designated representative, a document acknowledging that the applicant is
current in his payments of all property taxes and assessments on all properties owned by the applicant
within the corporate limits of the City of Junction City. If it is subsequently determined that the
foresaid acknowledged document is false, said applicant's permit shall be immediately revoked and a
stop work order shall be issued until the deficient property taxes and/or deficient special assessments
are satisfied. Such revocation and stop work order shall be in addition to any criminal or civil penalty
authorized by State law or municipal ordinance. The person issuing said permit may require that there
first be filed by the applicant therefore a plat in duplicate drawn to scale and in such form as may be
prescribed by the City Manager correctly showing the location and actual dimensions of the lot to be
occupied, the dimensions and location on the lot of the building to be erected, altered or enlarged. A
true statement, in writing, signed by the applicant, must be submitted showing the use for which such
building is arranged, intended or designed and furnishing such other information as the City Manager
may require for the enforcement of the provisions of this Section. Any failure to comply with the
provisions of this Section or any other ordinance shall be good cause for the revocation of any such
building permit by the Governing Body. A record of such applications and plats shall be kept in the
office of the Fire Department/Inspection Department.(R.O. 1956; CC 1965 §17-214; Ord. No. G-985
§§1&#9472;2, 9-6-05; Ord. No. G-1032 §1, 9-18-07)
Newby

Junction City, KS

#34 Jan 21, 2010
Misconceptions wrote:
To: you will never get it
and
Newby
For the sake of disclosure you needed to add:
If vacant property (land) owners owe taxes for more than three (3) years and Home owners owe taxes for more than two (2) years the city/county takes action to sell the properties to recover the taxes owed.
It does not matter if the developer ever sold the land or not. The current owner of the property is liable for the taxes.
Either 3 years or 2 years, if taxes are not paid the city/county takes over.
My larger point is that the city will have to pay any special assessments not paid by the property owners. Some people don't realize that property owners have no personal obligation to pay the special assessments. The city can't file suit and get a money judgment against the property owner and then, for example, garnish the owner's wages. The taxes are only a claim/lien against the property itself. The owner can refuse to pay the assessments and walk away at any time, subject to losing the land in a foreclosure sale. If the foreclosure sale price is less than the special assessments, the city pays the difference. I fear that the discussions that emphasize the property owner's duty to pay the taxes (or lose the property) may tend to obfuscate the real problem, which is the burden the city has and must impose on the taxpayers to retire the special obligation bonds over the next several years.
JCer

Junction City, KS

#35 Jan 21, 2010
Watch at next city commission for Olivia Farms. Think won't enforce the law or city ordinace. Life goes on as usual. Will have a pocketful of excuses for why not and reasons to extend. Vote on issue will be 3-2!
To QQQ

Andover, KS

#36 Jan 21, 2010
QQQ wrote:
Olivia Farms Building Permits should be revoked for not paying taxes!!! JC Law
SECTION 500.060: PERMITS
Permits for the erection, alternation or enlargement of any building may be issued by the City
Manager or his/her representative, provided that the applicant first signs, upon a form provided by the
City Manager or his designated representative, a document acknowledging that the applicant is
current in his payments of all property taxes and assessments on all properties owned by the applicant
within the corporate limits of the City of Junction City. If it is subsequently determined that the
foresaid acknowledged document is false, said applicant's permit shall be immediately revoked and a
stop work order shall be issued until the deficient property taxes and/or deficient special assessments
are satisfied. Such revocation and stop work order shall be in addition to any criminal or civil penalty
authorized by State law or municipal ordinance. The person issuing said permit may require that there
first be filed by the applicant therefore a plat in duplicate drawn to scale and in such form as may be
prescribed by the City Manager correctly showing the location and actual dimensions of the lot to be
occupied, the dimensions and location on the lot of the building to be erected, altered or enlarged. A
true statement, in writing, signed by the applicant, must be submitted showing the use for which such
building is arranged, intended or designed and furnishing such other information as the City Manager
may require for the enforcement of the provisions of this Section. Any failure to comply with the
provisions of this Section or any other ordinance shall be good cause for the revocation of any such
building permit by the Governing Body. A record of such applications and plats shall be kept in the
office of the Fire Department/Inspection Department.(R.O. 1956; CC 1965 §17-214; Ord. No. G-985
§§1&#9472;2, 9-6-05; Ord. No. G-1032 §1, 9-18-07)
Having provided this to everyone, have you contacted the City Manager and ask him what he is going to do about this issue?
Misconceptions

Andover, KS

#37 Jan 21, 2010
Newby wrote:
<quoted text>My larger point is that the city will have to pay any special assessments not paid by the property owners. Some people don't realize that property owners have no personal obligation to pay the special assessments. The city can't file suit and get a money judgment against the property owner and then, for example, garnish the owner's wages. The taxes are only a claim/lien against the property itself. The owner can refuse to pay the assessments and walk away at any time, subject to losing the land in a foreclosure sale. If the foreclosure sale price is less than the special assessments, the city pays the difference. I fear that the discussions that emphasize the property owner's duty to pay the taxes (or lose the property) may tend to obfuscate the real problem, which is the burden the city has and must impose on the taxpayers to retire the special obligation bonds over the next several years.
Of course; Property owners have an obligation to pay property taxes and special assessments!

That is why after either two or three years the property is sold by the city/county in a sheriffs sale to recoup the delinquent taxes and special assessments.

The city does not pay special assessments, rather, the city pays debt service on the loans and bonds they took in order to built the infrastructure. Regardless of where the money comes from, be it what is collected from property owners direct or through sheriffs sale or from other available funds.

You are right in the respect that the taxpayer is responsible for the debt that was created through the poor judgment of the past city commission.

However, you are wrong about the property owner not being obligated to pay for property taxes and/or special assessments.

Although there is no garnishment of pay for this, or confiscation of personal property other then the land or house involved.

I guess it is a matter of perspective.
Newby

Junction City, KS

#38 Jan 21, 2010
Misconceptions wrote:
<quoted text>
Of course; Property owners have an obligation to pay property taxes and special assessments!
That is why after either two or three years the property is sold by the city/county in a sheriffs sale to recoup the delinquent taxes and special assessments.
The city does not pay special assessments, rather, the city pays debt service on the loans and bonds they took in order to built the infrastructure. Regardless of where the money comes from, be it what is collected from property owners direct or through sheriffs sale or from other available funds.
You are right in the respect that the taxpayer is responsible for the debt that was created through the poor judgment of the past city commission.
However, you are wrong about the property owner not being obligated to pay for property taxes and/or special assessments.
Although there is no garnishment of pay for this, or confiscation of personal property other then the land or house involved.
I guess it is a matter of perspective.
Iagree.
QQQ

Denver, CO

#39 Jan 21, 2010
To QQQ wrote:
<quoted text>
Having provided this to everyone, have you contacted the City Manager and ask him what he is going to do about this issue?
The issue has been raised with Mike Guin. I understand there is a meeting with the City Attorney next week on the issue.
developments

Lawrence, KS

#40 Jan 22, 2010
Drive out to the developments on the north west side of town. There has got to be at least 100 lots just sitting vacant. The city streets continue on and on with nothing but roads and pipes.

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