Municipal Property Owners' Improvement Districts of Shannon Hills Arkansas: Difference between revisions

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On October 14, 2005 the Commissioners of Improvement District No. 53 purchased over 200 acres of land from a company owned by the Commissioners Hometex LLC for $2,740,000<ref>Saline County, Arkansas Assessor's Book 2005 Page 112886</ref>. Between 2008 and 2009 approximately $285,000 of the construction fund was spent on improvements to the Candice Cove Park, concrete walking trails, park pavilion, pool, bathhouse, parking area, and landscaping<ref name="2008 Annual Development Report">2008 Annual Development Report, Hometex LLC</ref><ref name=":2">2012 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 53 Of Shannon Hills, Arkansas </ref>.
On October 14, 2005 the Commissioners of Improvement District No. 53 purchased over 200 acres of land from a company owned by the Commissioners Hometex LLC for $2,740,000<ref>Saline County, Arkansas Assessor's Book 2005 Page 112886</ref>. Between 2008 and 2009 approximately $285,000 of the construction fund was spent on improvements to the Candice Cove Park, concrete walking trails, park pavilion, pool, bathhouse, parking area, and landscaping<ref name="2008 Annual Development Report">2008 Annual Development Report, Hometex LLC</ref><ref name=":2">2012 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 53 Of Shannon Hills, Arkansas </ref>.


Improvement District No. 53 held a public meeting on November 5, 2013 to reassessing property values. At the time the Improvement District had 596 lots of the 1,500 originally planned. The reason for the reassessment was the pressure sewer line within the district only had the capacity to handle a maximum of 800 to a 1,000 lots<ref>Municipal Multipurpose Property Owners' Improvement District No. 53 of Shannon Hills, Arkansas (Emerald Mountain Recreational Facilities Project) Notice, November 5, 2013.</ref>. The reassessment assumed only 800 more lots could be built and significantly reduced the assessed benefits to the undeveloped land owned by Hometex LCC. As a result of the reassessment homeowners in the district saw their tax bills raise from $228 to $429 a year and Hometex LLC assessed taxes on undeveloped land decreased from approximately $200,000 a year to $80,000 a year.
Improvement District No. 53 held a public meeting on November 5, 2013 to reassessing property values. At the time the Improvement District had 596 lots of the 1,500 originally planned. The reason for the reassessment was the pressure sewer line within the district only had the capacity to handle a maximum of 800 to a 1,000 lots<ref>Municipal Multipurpose Property Owners' Improvement District No. 53 of Shannon Hills, Arkansas (Emerald Mountain Recreational Facilities Project) Notice, November 5, 2013.</ref>. The reassessment assumed only 800 more lots could be built and significantly reduced the assessed benefits to the undeveloped land owned by Hometex LCC. As a result of the reassessment homeowners in the district saw their tax bills raise from $228 to $429 a year and Hometex LLC assessed taxes on undeveloped land decreased from approximately $200,000 a year to $94,000 a year.


As of the end of 2015 Improvement District No. 53 does not report any construction funds remaining and has $3,235,000 in bond debt remaining with a final payoff date of February, 1 2036<ref name=":0">[http://www.salinecollector.ar.gov/id/id53_municipal_property_owners_shannon_hills_16.pdf 2015 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 54 Of Shannon Hills, Arkansas]</ref>.
As of the end of 2015 Improvement District No. 53 does not report any construction funds remaining and has $3,235,000 in bond debt remaining with a final payoff date of February, 1 2036<ref name=":0">[http://www.salinecollector.ar.gov/id/id53_municipal_property_owners_shannon_hills_16.pdf 2015 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 54 Of Shannon Hills, Arkansas]</ref>.

Revision as of 13:42, 28 May 2016

Improvement District No. 10
Special-purpose district
CountryUnited States
StateArkansas
CountySaline
CityShannon Hills
Government
 • TypeMunicipal Property Owners' Improvement District
 • CommissionerRobert C. McClure
 • CommissionerJill Lasely
 • District AssessorAlan King
Improvement Districts No. 53 and 54
Special-purpose district
Approximate boundaries of Improvement Districts 53 and 54
Approximate boundaries of Improvement Districts 53 and 54
CountryUnited States
StateArkansas
CountySaline
CityShannon Hills
Government
 • TypeMunicipal Property Owners' Improvement District
 • CommissionerDoug Loftin
 • CommissionerCindy Loftin
 • CommissionerWesley Loftin
 • District AssessorAlan King

Municipal Property Owners' Improvement District No. 10, 53, and 54 are independent municipal governments formed under Arkansas Code §14.94-101 and located within the City of Shannon Hills, Arkansas. Arkansas Code gives the Board of Commissioners of the Improvement Districts broad powers to use eminent domain, to issue bonds, to assess and levy taxes, to sell or lease any improvements, to hire employees, and to sue[1]. Unlike other local municipal governments until reporting year 2012[2], Arkansas Code did not require the Municipal Property Owners' Improvement Districts to record or publicly disclose any financial information including total property tax income, spending, expenses, or debt.

Carrington Place Improvement District No. 10

Doug Loftin, John D. Torney Sr., and Robert O. Smith filed a petition with the City Council of Shannon Hills to form the Carrington Place Municipal Recreational Improvement District. The petition was approved on September 28, 1998 by Mayor Harold MacIntire using an emergency order as there was an “immediate need for the formation of the District to promote and protect the health, safety and welfare of the citizens of Shannon Hills"[3].

Doug Loftin, John D. Torney Sr., and Robert O. Smith were the original members of the Board of the Improvement District. By 2011 the Commissions of Improvement District No. 10 included Doug Loftin, Cindy Loftin, and Bob McClure[4]. In 2013 Doug Loftin and Cindy Loftin stepped down and were replaced by Jill Lasely as Commissions of Improvement District No. 10[5]

Improvement District No. 10 and Improvement District No. 53 are in an agreement which allows property owners in both districts to utilize both improvement district facilities and improvements. In exchange Improvement District No. 10 collects property taxes and pays directly for the maintenance of facilities located within Improvement District No. 10 and sends additional funds to Improvement District No. 53 for management of activities and development of Improvement District No. 53 facilities[5]. As of the end of 2015 Improvement District No. 10 has no debt, property, facilities, it has 7 vacant lots, and 233 home completed[6].

Improvement District 10 Transfers to Improvement District 53[6]
Fiscal Year Amount
2007 $45,000
2008 $35,000
2009 $65,000
2010 $55,000
2011 $50,000
2012 $55,000
2013 $60,000
2014 $60,000
2015 $44,000

Emerald Mountain Improvement Districts No. 53 and No. 54

During a Special City Council Meeting[7] on May 19, 2005 the Shannon Hills City Council passed two ordinances[8][9] to approve petitions[10][11] presented by the owners of Hometex LLC Doug Loftin, Thomas Cunningham, and Travis Bull to form and be the sole members of the Board of Commission for Improvement Districts No. 53 and 54 on Emerald Mountain. Improvement District No. 53 and 54 have the same geographic area, but are operated as independent municipal governments. Both Improvement Districts were given the power to build sanitary waterworks, sewer collection system, green areas, landscaping, lighting, playgrounds, swimming pools, tennis courts, and roads. District No. 53 was proposed to be established for recreational property and improvements and the Improvement District 54 for the construction of utilities and access to other residential subdivision infrastructure. The original ordinances were not published in the legal time frame and the City Council re-approved the ordinances[12][13] during the September 13, 2005 Regular City Council Meeting[14].

Doug Loftin, Thomas Cunningham, and Travis Bull were the original members of the Board of both Improvement Districts. On September 30, 2009 Travis Bull resigned as commissioner of Improvement Districts No. 53 and 54, Thomas Cunningham and Doug Loftin appointed Wesley Loftin as a Commissioner of Improvement Districts No. 53 and 54, Thomas Cunningham resigned as a Commissioner of Improvement Districts No. 53 and 54, and Doug Loftin and Wesley Loftin appointed Cindy Loftin as a Commissioner Improvement Districts No. 53 and 54. Doug Loftin has ignored multiple requests from the public to disclose what improvements the construction funds for Improvement Districts No. 53 and 54 were spent on.

Improvement District 53

Property Owned by Improvement District 53

On October 1, 2005 Bank of the Ozarks was the Bond Trustee in issuing $3,770,000 worth of bonds to Improvement District 53 with a construction fund of $3,110,000 to purchase 200 acres to be dedicated as a public park and for facilities including hiking trails, horseback riding stables and trails, swimming pools, tennis courts and other amenities[15]. Per the provisions of the bond any property tax collections are required to be used to service the bond debt and administrative cost.

On October 14, 2005 the Commissioners of Improvement District No. 53 purchased over 200 acres of land from a company owned by the Commissioners Hometex LLC for $2,740,000[16]. Between 2008 and 2009 approximately $285,000 of the construction fund was spent on improvements to the Candice Cove Park, concrete walking trails, park pavilion, pool, bathhouse, parking area, and landscaping[17][18].

Improvement District No. 53 held a public meeting on November 5, 2013 to reassessing property values. At the time the Improvement District had 596 lots of the 1,500 originally planned. The reason for the reassessment was the pressure sewer line within the district only had the capacity to handle a maximum of 800 to a 1,000 lots[19]. The reassessment assumed only 800 more lots could be built and significantly reduced the assessed benefits to the undeveloped land owned by Hometex LCC. As a result of the reassessment homeowners in the district saw their tax bills raise from $228 to $429 a year and Hometex LLC assessed taxes on undeveloped land decreased from approximately $200,000 a year to $94,000 a year.

As of the end of 2015 Improvement District No. 53 does not report any construction funds remaining and has $3,235,000 in bond debt remaining with a final payoff date of February, 1 2036[20].

Operational and Maintenance Reported Cost of Facilities
Fiscal Year Improvement District
No. 53 No. 10
2008 $71,127[17]
2009 $75,627[17]
2012 $30,069[18] $3,769[21]
2013 $0[22] $4,705[23]
2014 $0[22] $5,214[5]
2015 $0[20] $8,369[6]

Improvement District 54

Between 2005 and 2006 Bank of the Ozarks was the Bond Trustee in issuing $3,075,000 worth of bonds[24][25] to Improvement District 54 with a total construction fund of $2,723,000 to use for subdivision infrastructure construction cost for an 204 lots including costs of streets, water and sewer, curb and gutter, lighting and other amenities. As of the end of 2012, Improvement District No. 54 had paid Hometex LLC $2,473,669 and only received $1,172,715 worth of improvements[26]. Per the provisions of the bond any property tax collections are required to be used to service the bond debt and administrative cost.

As of the end of 2015 Improvement District 54 does not report any construction funds remaining and has $1,655,000 in bond debt with a final payoff date of February, 1 2037[20].

Hometex, LLC

With the possible exception of Wesley Loftin, all other current and former members of the Board of Commissioners of Improvement Districts No. 53 and 54 were owners of Hometex, LLC[7][27]. In 2013 Hometex became delinquent on its property taxes owed to both Improvement District 53 and 54. On June 23, 2015 Doug Loftin, Cindy Loftin, and Hometex LLC file for Chapter 7 bankruptcy. The filing included $267,566 in property taxes owed to Saline County, Arkansas and an undisclosed amount of debt owed to both Improvement Districts No. 53 and 54. In 2015 Bank of the Ozarks acquired most of the undeveloped land previously owned by Hometex LLC and paid $250,000 of back taxes owed to Improvement Distirct 53[28].

References

  1. ^ Arkansas Code Title 14 - Local Government Subtitle 5 - Improvement Districts Generally Chapter 94 - Municipal Property Owners' Improvement District Law (2015)
  2. ^ The improvement district transparency act (PDF). 23 February 2011. Retrieved 24 April 2016.
  3. ^ Shannon Hills Ordinance Number 98-05. 28 September 1998.
  4. ^ 2012 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 10 Of Shannon Hills, Arkansas
  5. ^ a b c 2014 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 10 Of Shannon Hills, Arkansas
  6. ^ a b c 2015 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 10 Of Shannon Hills, Arkansas
  7. ^ a b "City of Shannon Hills, Arkansas Special City Council Meeting May 19, 2005" (PDF). City of Shannon Hills. Retrieved 25 May 2016.
  8. ^ Shannon Hills, Arkansas Ordinance Number 2005-07,19 May, 2005
  9. ^ Shannon Hills, Arkansas Ordinance Number 2005-08, 19 May, 2005
  10. ^ Petition for Formation of Municipal Multipurpose Property Owners Improvement District No. 53 Of Shannon Hills, Arkansas. 2006.
  11. ^ Petition for Formation of Municipal Multipurpose Property Owners Improvement District No. 54 Of Shannon Hills, Arkansas. 2006.
  12. ^ Shannon Hills, Arkansas Ordinance Number 2005-11 Establishing Property Owner’s Improvement District # 53, 13 September, 2005
  13. ^ Shannon Hills, Arkansas Ordinance Number 2005-12 Establishing Property Owner’s Improvement District # 54, 13 September, 2005
  14. ^ "City of Shannon Hills, Arkansas Regular City Council Meeting September 13, 2005" (PDF). City of Shannon Hills. Retrieved 25 May 2016.
  15. ^ Municipal Multipurpose Property Owners' Improvement District No. 53 of Shannon Hills, Arkansas Improvement Bonds (Emerald Mountain Recreational Facilities Project), 13 October 2005
  16. ^ Saline County, Arkansas Assessor's Book 2005 Page 112886
  17. ^ a b c 2008 Annual Development Report, Hometex LLC
  18. ^ a b 2012 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 53 Of Shannon Hills, Arkansas
  19. ^ Municipal Multipurpose Property Owners' Improvement District No. 53 of Shannon Hills, Arkansas (Emerald Mountain Recreational Facilities Project) Notice, November 5, 2013.
  20. ^ a b c 2015 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 54 Of Shannon Hills, Arkansas
  21. ^ 2012 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 10 Of Shannon Hills, Arkansas
  22. ^ a b 2014 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 53 Of Shannon Hills, Arkansas
  23. ^ 2013 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 10 Of Shannon Hills, Arkansas
  24. ^ Municipal Multipurpose Property Owners' Improvement District No 54. of Shannon Hills, Arkansas Improvement Bonds (Emerald Mountain Residential Subdivision Project) $1,030,000 Series A and $465,000 Series B, 12 October, 2005
  25. ^ Municipal Multipurpose Property Owners' Improvement District No 54. of Shannon Hills, Arkansas Improvement Bonds (Emerald Mountain Residential Subdivision Project) $1,030,000 Series C and $550,000 Series D, August 31, 2006
  26. ^ 2012 Transparency Report for Municipal Multipurpose Property Owners Improvement District No. 54 Of Shannon Hills, Arkansas
  27. ^ "Search Incorporations, Cooperatives, Banks and Insurance Companies Hometex, LLC". Arkansas Secretary of State. Retrieved 27 May 2016.
  28. ^ Statement of Account for Period 01/01/15 - 12/12/15 for Municipal Multipurpose POID No. 53 of Shannon Hills, AR
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