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Friday, 19 June 2009 |
 Amador County – The Ione City Council on Tuesday discussed the defaulting of bond payments by local developers JTS Communities Incorporated at the Castle Oaks Subdivision, but dismissed it as not the same as the last Mello-Roos Bond situation. City Manager Kim Kerr said the city knew ahead of time that Sacramento-based JTS and its partners would pay the first half of the year’s special tax on the 99 parcels it owns, then miss the second half of the year’s payment. “We knew they weren’t going to pay,” Kerr said, so city staff worked to be prepared, and waited to hear a report that the taxes were not paid, so that paperwork would be ready to initiate foreclosures. JTS is owned by Jack Sweigart and Larry Carter, and its partners in the Castle Oaks Subdivision are Stone & Youngberg LLC of San Diego; S&Y Capital Group of Los Angeles; and Tower Investments LLC of Woodland. Kerr said the documented agreement would pay administrative expenses off the top. Kerr said “we are not concerned. There is enough money in reserve to make any payments on the bonds for 3 years.” She said JTS “just came and pulled 11 or 12 building permits in the last 2 weeks,” and “they are selling homes.” Though it was before her time, Kerr said “this is totally different than the way it was with the previous bonds.” In the past, the bonds were on the open market. This time, the developer owns most of the properties. Mayor Lee Ard, one of three council members who lives in Castle Oaks, said JTS and its partners were just building capital at the moment. Ard said it was worthy to note that people will not lose their homes as long as they pay their special taxes. Kerr said “there may be a deal worked out between the bold holders and the property owners.” She said any default on a parcel that is more than $5,000 dollars can be foreclosed. She said the parcel owners in default includes private residents, but it was too soon to tell exactly how many. Most likely were not past the $5,000-dollar threshold. She said Improvement Area 1 held large, commercial parcels, owned by JTS and its partners. It exceeded that threshold and would be subject to foreclosure. But it was expected, Kerr said. She also said the $5,000 dollar amount was “negotiated by the bond holders.” Story by Jim Reece
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