RES 88015 - Laserfiche WebLink

of the remaining unapproved buildings, sites and uses in the project and other discretionary approvals as may be required in the future by those governmental agencies. Failure to obtain any such approval would adversely affect land development operations. Moreover there can be no assurance that the land development operations within the Assessment District will not be adversely affected by future deterioration of real estate and economic conditions or future local, state and federal governmental policies relating to real estate development, income tax treatment of real estate, or the nanonal economy. A slowdown of the development process and the absorption rate could result in delin uencies in the payment of annual assessment installments and property taxes. In that event, ~ere could be a default in the payments in principal and interest on the Bonds. Concentration of Ownership A majority of the land within the Assessment District is currently owned by Patrician (50%) of the ownership thereof. (See 'TH~t ASSESSMENT DISTRICT - Land Ownership and Development" herein.) Under such conditions, the failure to pay installments of assessments when due could result in the rapid total depletion of the Reserve Fund prior to reimbursement from the resales of foreclosed roperty or delin uency redemptions. In that event, there could be a default in payments of tger principal of an~ interest on the Bonds. Payment of Assessments In order to pay debt service on the Bonds, it is necessary that unpaid installments of assessments on land within the Assessment District be paid in a timely manner. Should the installments not be paid on time, the City will draw on the Reserve Fund. If the Reserve Fund is depleted, there could be a default or a delay in payments to holders of the bonds pending proceeds, if any, from foreclosure sales. Un aid assessments do not constitute a personal indebtedness of the owners of the lots and parcels within the Assessment District. There is no assurance the owners will able to be pay the assessment installments or that they will pay such installments even though financially able to do so. Foreclosure Delays Foreclosure prosecution could take two years or more due to crowded local court calendars, legal delaying tactics, or bankruptcy. (See "Bankruptcy" and "SECURITY FOR THE BONDS - Covenant to Commence Superior Court Foreclosure" herein.) It is possible also that no bid would be received at the foreclosure sale. As a result, there could be a default in payment of the principal of and interest on Bonds, the curing of which would be dependent Upon resale of the property by the City or redemption of the property by the property owner. No assurance can be given that the City will be able to resell any such dehnquent parcel for an amount sufficient to pay all of the delinquent assessment installment amounts including the principal, interest, penalties, and costs due thereon. Tax Delinquencies Assessment installments, from which funds necessary for the payment of annual installments of principal of and interest on the Bonds are to be derived, will be billed to each property against which there is an unpaid assessment on the regular property tax bills sent to the owner of such property commencing with tax bills for fiscal year 1988/89. Such installments are due and payable, and bear the same penalties and interest for nonpayment, as do regular property tax installments. Assessment installment payments cannot be made