Dear Toby - August 2008

Your Comments and Questions - My Replies

I receive several comments and questions from website visitors. To many, I responded individually. It occurred to me that some of these questions and answers would be of interest to all of you. I publish selected input and replies under the “Dear Toby” banner, with a new page each month to keep the pages short and readable. The most recent entry is at the top of the page.

Feel free to use the “Contact Us” button to send in your comments or questions. Your name will not be disclosed. Due to volume, I may be unable to reply to everyone.

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Question: I would like to know why a few of the same units in the tidelands are listed as being sold for 2 totally different prices...i.e. November 2007.

Toby Says: Both transactions were recorded at the Flagler County Clerk's website and the Property Appraiser's website. I suspect a flip was involved with a simultaneous closing.

Question: Who owns the bulk of the lots in Conservatory? Are the lots held by individual owners or by Ginn Company?

Toby Says: There are 340 lots platted in The Conservatory. 337 were purchased from Ginn by individuals. Ginn still holds title to 3 lots, but to the best of my knowledge, they are not on the market. Currently there are 13 lender-owned lots (from foreclosure). Additionally, 2 other lender-owned lots were recently sold. 61 more lots have had foreclosure proceedings initiated against them.

Question: Do you know anything about Bobby Ginn trying to sell out Ginn Sur Mer and other assets to Jorge Perez of the Related Group?

Toby Says: I've heard other rumors, but none naming Perez. Ginn is in default of his $675 million credit facility with Credit Suisse since June 30 (see story). The 30-day forbearance has expired and they are "still negotiating." It wouldn't take this long to simply restructure the debt, so my conclusion is that they are negotiating the disposition of assets and/or realignment of equity (which may bring Credit Suisse in as a partner on some of Ginn's projects). These negotiations could very well include discussions with third parties.

Question: Do you have any idea what that huge mound of dirt at the Roberts Rd/SR100 site of the future Publix is for? I have seen construction equipment there, but it doesn't look like Publix will start to build until the mountain is moved!

Toby Says: The dirt came from a lake which was dug in the back (northwest) corner of the property. Permits to clear the land and prepare the site were issued, but no building permits have been issued. Publix will build they feel market conditions warrant it. The dirt pile is not what is holding them up.

Question: The Flagler Airport is expanding and a control tower is being added. There is also an industrial park to be developed adjacent to the airport. Will it ever be a commercial airport with large planes? Cypress Knolls and the Z section, Quail Hollow, and Seminole Woods are not far from there. What effect will the airport changes have on these neighborhoods?

Toby Says: Flagler is already a busy airport with an average of 520 take-offs and landings daily. The new tower will make it safer (good for neighbors). The extended runway will not necessarily encourage larger planes, but it will let smaller planes, including executive jets, take off with more fuel, extending their range from Flagler. As the area grows, more business jets will use the airport, but I doubt it will ever be more busy than during the recent Ginn golf tournament when several pros brought their own planes. Any potentially negative effect on nearby property will more than be overcome by the proximity to Town Center. The industrial center development will also result in more jobs within a short commute from these neighborhoods.

Question: I'm looking at a house and they are three years behind in their taxes. How long to they have before the city acts?

Toby Says: Taxes, including city taxes, are collected by the county. Each year taxes are overdue, the county holds a tax certificate sale. Individuals, LLCs, banks, etc. buy the certificates. They pay the taxes due and bid an interest rate (lowest rate wins). When taxes are paid, they get the tax money back plus interest. When a certificate is at least two years old, the holder can apply for a tax deed sale. The sale is open to the public and held at the courthouse. The winning bidder gets the property via a tax deed.

If the house in which you are interested has three years of taxes, the holder of either of the first two year's certificates can request a tax deed sale. Tax certificates can be bought and sold. Check the tax collector's office to determine the status of any outstanding certificates. You might be able to buy one of the certificates and apply for a sale yourself but remember, as holder of a certificate, you have no preferred standing at the resulting tax deed sale. You will be just on e of the bidders.

Question: I read about this new company coming to Palm Coast. Jim Landon is calling it Project Continental with up to 700 new jobs. Do you have any more information about this company? What kind of company is it? Will it be corporate? Any information would be greatly appreciated.

Toby Says: First, there is only a possibility of the company Landon referred to as "Continental" coming to Palm Coast. We are competing with at least two other states to attract Continental. At this time, no information about the company has been released. The officials who are in contact with the company are under a non-disclosure agreement. Stay tuned to GoToby for information as it becomes available.

Question: I just wanted to let you know how much i appreciate your website and all the great information that you provide. Curious, do you know anything new on developments with the Ginn- Credit Suisse dealings? You reported that Ginn had struck a deal with an atlanta based production builder to build out BriarRose.. I have been over there several times in the last few weeks and still not a single machine is moving. Not a single thing has been done there since that "mini launch" you attended. Any word on the street as to what's going on with that project?

Toby Says: As of 8/12/08, there is no update on the Ginn/Credit Suisse issue. The forbearance expired over a week ago but the two parties are still negotiating. Closings on any contracts at Ginn sur Mer have been put on hold until a deal is reached.

BriarRose is on the move. They are bringing in a large developer/builder from Atlanta who was successful w/ 17 communities around Atlanta to finish out the project and manage the affairs. He already has a relationship w/ Lubert-Adler. Plans are to get the back 9 open before year's end along w/ major infrastructure. March 09 is a big target for going vertical w/ amenities.

Question: What is available for sale in the main resort building at Hammock Beach?

Toby Says: There are currently 16 units listed for sale through MLS. (see listing report) Ginn has recently joined the MLS system in order to post listings (their words, not mine). Clearly, they have listings, but none are posted on MLS.

Question: I am curious. Of the recent sales of Intracoastal waterfront properties on Riverwalk Drive in Palm Coast Plantation, how many, if any, were distressed properties, foreclosure, short sales etc.

Toby Says: Of 9 Intracoastal properties sold on Riverwalk Drive in Palm Coast Plantation in the past year (8 lots and one residential), two were short sales. Both of the short sales were in 2008. (See MLS Report)