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Highlands Today

NRPI Seeks Escape From Sun 'N Lake

Jasmina Meyer/Highlands Today

Al Grieshaber Jr, General Manager of the Sun 'n Lake of Sebring Improvement District, shows an artist rendering of the new 19th Hole Clubhouse during an interview on Wednesday in Sun 'n Lake.

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By JOE SEELIG

Highlands Today

Published: October 16, 2008

SEBRING - The business relationship between National Recreational Properties Inc. and Sun 'n Lake of Sebring Improvement District continues to unravel.

The company's Vice President Greg Spiro reportedly told the district's attorney, John McClure, it was willing to return all of its unsold properties to the district.
Spiro said Wednesday that it's definitely something he's wanted to do for some time and that it's a bit premature to talk about it because he hasn't worked out the details yet with McClure.

"It's really just a matter of transferring the property back to the district," he said.

"So, I said OK," said district General Manager Al Grieshaber Jr. on Wednesday. "But, the devil is in the details and I'm not buying a pig in a poke."

There is no doubt that NRPI had a land-sale agreement with the district, Grieshaber Jr. continued.

"They were to buy all property (in foreclosure) at $250 per lot, plus foreclosure costs, when they came in under their sales development agreement," he said.

The district holds elections to its board of supervisors with three seats elected by landowner vote and two seats elected by popular vote.

In order for a landowner to vote they had to have all of their assessments current.

"In the 2007 elections (NRPI and their affiliates') assessments were current in over 4,000 lots in its 2006 assessments," said Grieshaber. "In 2007 the economy was not doing well, sort of tanking."

On Jan. 3, 2008 there were 94 lots that were foreclosed upon. By their agreement, NRPI should have paid the district $94,927.76 for those lots.

"They did not buy those lots, thereby breaching their agreement," he said. "We had a meeting with NRPI on March 20. They basically said they are experiencing an economic downturn and they can no longer buy lots from the district because there is no market for them.

"That it looks like they will be unable to pay assessments on lots they have in their name and have not sold to a third party. I don't know how many lots they have sold."

When the district planned its 2009 budget Grieshaber said there were 560 lots in NRPI's name, or its affiliates, sold to third parties for which the district received $245,000 in assessments.
Grieshaber said NRPI sells lots using a practice called contract for deed. This allows the buyer to pay NRPI over time, say, for example, 10 years. If, during the 10-year period, the buyer misses a payment or fails to pay his taxes, the property reverts back to the seller.

So Grieshaber said he is not sure how many properties the company sold, still holds or how many of those properties are current with the tax collector.

How many votes NRPI can cast remains subject to legal interpretation, he said.

"While the economy was doing well and NRPI were here, they did do good things for the district," he said. "They did make money. It's no doubt they were a profitable entity. It was good for them and it was good for the district in some respects.

"They were not a dead-beat partner. They just couldn't fulfill their agreements and obligations. The economy hurt land sales everywhere. Now the district is trying to make the best of an unpleasant situation."

And while this may sound like a wonderful deal, the district has a lot to think about before the lots are accepted back by the district.

"Once (the lots) go back to the district, the district is obligated to pay Highlands County real estate taxes to all property not dedicated to public use," Grieshaber said. "And we don't get the final say (if the property is for public use); it's the property appraiser, Ray McIntyre, who makes the final determination.

"There are financial considerations to be weighed and analyzed when you take back a piece of property, he said. "What are the taxes on it and have tax certificates been sold?"

As far as Grieshaber is concerned, NRPI's $1.225 million donation to the construction of the district's new clubhouse the 19th Hole is not a consideration.

It's spent, he said. The construction of the $3.6 million project is scheduled to begin January 2009 and occupancy is expected by Dec. 6, 2009, he said.

When he was asked what he thought about NRPI pulling out, resident Jerry Denstorff said Wednesday he really didn't know enough about it.

"That's the reason we elect a board of supervisors," he said as he sat in his golf cart. "I'm sure some people say they've done some good and some people may say they didn't. In this economic climate I don't think the good Lord could do much better. It's very complex."

He loves the community and its amenities, he said.

"The amenities are wonderful, but better than the amenities are the people, just beautiful folks," he said.

A man seated at the bar in the 19th-Hole trailer didn't want to give his name.

"Goodbye and good riddance," he said of NRPI. "You wouldn't want to print what I have to say."

Resident Pat Steele said it doesn't have any real effect on her.

"It just doesn't," she said. "I think Sun 'n Lake always has an opportunity to sell lots. We're a wonderful community with great amenities, two golf courses, and lots of wonderful people.

"I have a very positive attitude toward Sun 'n Lake. We've been here 12 years and there have been a lot of changes. Ultimately the changes have been for good."

Joe Seelig can be reached at (863) 386-5834 or jseelig@highlandstoday.com .

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