Who Can You Trust? Could This Happen In Your Backyard?

WITH ANNEXATION, LAKE HAVASU CITY STANDS TO LOSE:

- Future Developers and Future Master-Planned Communities
- Future Home Builders and Property Investors

When a master-planned community is initially established, commitments and promises are made; agreements between developers, cities, state and/or federal entities and prospective home-land buyers are created.

This was the case when The Refuge community was developed in 2002.  Because of its unique location abutting the National Wildlife Refuge, even more stringent requirements were established (to be outlined in a future posting). 

Home builders and lot investors in The Refuge trusted that these agreements would “run with the land”, particularly with the very specific commitments outlined on the final plat map and original patent on this land.

In America, a “trust deed” is what you receive when you purchase land.  This “deed” holds within it the “trust” we all depend on as we move forward into otherwise uncertain futures.  For the home-land purchasers in The Refuge, these trust deeds included written assurances that now affect the very land attempting to be annexed and converted to an RV park. But those original assurances guaranteed that this particular land would remain an “open space” championship golf course and as such would remain an “enduring feature” of the community.  This was part of original commitment made by governmental authorities and Refuge home builders and investors relied on those “commitments.”

But what happens when an opportunistic and predatory investor comes along and changes a master-planned community by ignoring those original commitments?

In America, land use laws protect property owners from this type of shell game.  Investors and home builders must have assurances that their properties will remain intact…without that, future building suffers. If such builders sense that the rug could be pulled out from under them at any moment with governmental commitments simply set aside…who in their right mind would invest in such a place?

If Lake Havasu City officials agree to this partial annexation thus allowing the Aldridges to disregard these original commitments and replace an Arnold Palmer Signature Golf Course with an RV park, what happens to future developer’s or investor/home builder’s trust? What happens to our future? 

COULD THIS HAPPEN IN YOUR BACKYARD?

LHC Unified School District Funds In Jeopardy

WITH ANNEXATION, LAKE HAVASU CITY STANDS TO LOSE:

-AT LEAST $100,000 AND UP TO $500,000 IN BADLY NEEDED SCHOOL FUNDING

-HUNDREDS OF CONSTRUCTION AND LANDSCAPING JOBS

-MILLIONS IN RETAIL SALES TO HIGH-END HOMES THAT WILL NEVER BE BUILT

If The Refuge master-planned community is changed from an upscale home development to a combination home/RV park neighborhood, the impact to property tax revenues will be significant.  These property tax dollars have a direct impact to the funds that support the school district.

Currently approximately 150 homes have been built at The Refuge and approximately 200 lots remain vacant.  Property taxes on the 150 homes average $5,000/year and taxes on the vacant lots average $2,000/year.  Approximately 40% of these taxes go to fund schools.  

At the present time, approximately $460,000/year is paid into school funds by Refuge property owners, based on the current build-out.  If property values decline by 20% as a result of the RV development, as has been suggested by real estate appraisers, the amount of property taxes going to the schools will decline by $100,000/year-- just based on the current build-out.

Conversely, a large number of lot owners at The Refuge are ready to build if the RV park is not approved. Many property owners put their building plans on hold as soon as they became aware of the RV park proposal.  If the remaining 200 lots are built out over the next five years, the total increase to fund schools under this scenario would be approximately $650,000 over that five year timeframe.

Based on these assumptions, the portion of property taxes going to the school funds would increase from $460,000 to $1,110,000 over five years if houses continue to be built, versus an estimated $500,000 decrease for that same timeframe if the RV park impacts property values as suggested.

In addition, the construction of approximately 30 homes per year during the next five years would create a significant increase in contractor and construction activity, not to mention additional dollars spent to landscape and furnish the new homes. 

If this land is annexed, subdivided and changed into the RV park that is being proposed, not only is it likely that the property values will decrease directly impacting property taxes, but it is also safe to say that a very large number of the current property owners at The Refuge will decide NOT to build homes there. 

Trading property taxes paid on million dollar homes for property taxes paid on RV pads? Your City Council says "it's a wash".  That is just not true.  Do you really think that the property taxes paid on RV pads that MIGHT someday be built will equal property taxes paid on million dollar homes?  Do you really think that RVers will bring in the same type of revenue stream to the City as people who are building, landscaping and furnishing houses? Think again. 

If this ordinance goes through, there will clearly be long-term financial consequences to the school funds as well as to the economy of Lake Havasu City in general.