Did you know that WVID owns 10.57 acres of prime Gran Paradiso development land? The district also owns the partially completed $8 million dollar amenity center located just inside the main gates of Gran Paradiso. That building sits on the 10.57 acres the district bought. Why you ask?
In 2008 things weren't going well for any of the builders here, especially for Gran Paradiso. They thought that having their crown jewel amenity center built would attract buyers; but they were out of money and out of credit. Solution; they went to the WVID and said please build this with district bond money. Done deal.
On 9/19/2008 WVID purchased Tract 600, Gran Paradiso, Phase 1, (Parcel ID 0780-02-0013) as recorded with the county clerk at http://www.clerk.co.sarasota.fl.us/oprapp/cache/2008130903.pdf. This warranty deed shows the purchase price as "$10 and other good and valuable consideration". The county property report for this parcel shows the sale price as "NON-SALE TRANSFER". However......the last paragraph on page 18 of the independent auditors Financial Report of WVID for the fiscal year ending September 30, 2008 states that a purchase price of $581,350 was approved by the district for this land. So...who's right here; a non-sale transfer, or more district bond money going to another developer in trouble?
WVID hired a contractor and ground was broken for construction of the amenity center in late October, 2008. Later in 2008 the builder at Gran Paradiso filed for bankruptcy protection. On May 1, 2009, Gran Paradiso I, LLC defaulted on their annual $2.2 million WVID non-ad valorem tax assessment payment to the district. Shortly thereafter, construction on the amenity center stopped. I think the developer and Gran Paradiso I, LLC are now in bankruptcy too. Whose left holding the bag? Yup, us property owners!
What do you think? Bad real estate market, Bad economy, Simple bad judgement, or something else?
2 comments:
I've formally requested an agenda item for the 9/28/2010 WVID district meeting to discuss and answer my questions about the three "hinkey" land deals being discussed on this blog. Click this link to read the email: www.home.comcast.net/~paul9aber/land-deal-questions.pdf
In an email dated 9/17/2010, WVID has provided what I consider to be a satisfactory answer as to the nature of this purchase:
Dear Mr. Nienaber,
This transaction was for the District's acquisition of the Gran Paradiso Community Center site which is identified as "Tract 600, Plat of Gran Paradiso, Phase 1, of PB 47, Page 6, Public Records of Sarasota, County, Fl."
In answer to the questions posed:
(1) There is a Sale and Purchase Agreement, dated March 4, 2008, between the District and Gran Paradiso l , LLC. and the acquisition closed on Sept. 24, 2008.
(2) The Purchase Price was $100.00, subject to a potential Conditional Supplemental Payment of $581,250.00. The Conditional Supplemental Payment has not been paid since the Funding Conditions Precedent for such a payment have not been satisfied as of today's date. The Funding Conditions Precedent are: (a) another Series of Bonds for Unit No. 3 would have to be sold, (b) the additional Series of Bonds, when and if sold, would have to be sufficient to complete construction of the Unit's entire Plan of Improvements and leave enough left over to pay the Conditional Supplemental Payment and (c) the Board has to approve a budget for such Payment. Finally, if the Funding Condition Precedents are not satisfied by January 31, 2013 then this Conditional Supplemental Payment terminates unless the parties agree to an extension.
(3) The Clerk's records are correct…so a correction is not necessary.
Regards,
Todd Wodraska
District Manager
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