California Debt and Investment Advisory Commission

Draw on Reserve or Default Report

Wheatland CFD No. 1 Mello-Roos Community Facilities Districts

This report is based on unaudited information reported to the California Debt and Investment Advisory Commission pursuant to Government Code Section 53359.5(c) from sources considered to be reliable. The Commission is not liable for inadvertent errors or omissions that are reported as part of these reports.

Issuer:  Wheatland CFD No. 1
County:  Yuba
Project:  Multiple Capital Improvements
Original Sale Date:  11/1/1990
CDIAC Number:  90-1031
Type of Event:  Default
Date of Event:  11/1/2003
Contact:  Richard Shanahan
Phone Number:  (916) 446-4254

Comments:  
The City has not made regular principal and interest payment since its initial November 1, 1996 default. November 1, 2003 partial payment of $705,000 repaid past-due interest and some principal.
As of early 2001, four major land parcels were delinquent in their special tax payments (Yuba County Assessor Parcel Nos. 015- 140-046 (45.4 acres), 15-140-048 (7.6 acres), 15-360-044 (47.1 acres) & 015-500001 (52.5 acres)), with some of the delinquencies dating back to fiscal year 1992-93. After each parcel became delinquent, the City instituted foreclosure proceedings, obtained final judgment against the delinquent parcel, and proceeded to foreclosure sale by the Yuba County Sheriff s Office. There were no bidders at the statutorily required minimum bid price at any of the foreclosure sales.

Because of these and minor delinquencies on other parcels, and the resulting lack of special tax funds, the City depleted the bond debt service reserve account and under-funded the redemption account, resulting in defaults on the payments to the CFD No. 1 bondholders from November 1, 1996 to present.

U.S. Bank, the fiscal agent for the bonds, recently informed the City that it holds approximately $708,000 in the special tax fund. The City therefore authorized a distribution to bondholders in the amount of approximately $705,000, which was paid on or about October 28, 2003, to bondholders of record on October 15, 2003. The distributed funds are to pay all delinquent interest on the bonds, current interest due on November 1, 2003, principal of the delinquent bond maturities dated November 1, 1996, through November 1, 2000, and $45,000 of the principal of the bonds maturing on November 1, 2010 (with the 2010 maturity bonds paid to be selected by lot by the Fiscal Agent). If special tax payments by CFD No. 1 property owners continue in subsequent years without substantial new delinquencies, then the City should be able to make more regular bondholder distributions in the future.
 

Date Received:   11/13/2003
Date posted to this website:   Wednesday, January 07, 2004


Issuer:  Wheatland CFD No. 1
County:  Yuba
Project:  Multiple Capital Improvements
Original Sale Date:  11/1/1990
CDIAC Number:  90-1031
Type of Event:  Default
Date of Event:  11/1/2001
Amount of Default:  $1,640,000
Contact:  Richard Shanahan
Phone Number:  (916) 446-4254

Comments:  
The City made an interest only payment of $300,000 to bondholders in early November 2001. According to the City’s fiscal agent, Sheryl McMahon at US Bank Corporate Trust Services, the current principal amount of bonds outstanding is $1,640,000.

Two major parcels continue to be delinquent in their special tax payments for fiscal years 1992-93 through the present, resulting in a substantial delinquency in the collection of the special tax and bond delinquencies. The City has obtained judgments against the two delinquent parcels (Yuba County Assessor Parcel Nos. 015-140-046 & 015-500-001). Foreclosure proceedings relating to the two delinquent parcels have proceeded to final judgment of foreclosure, and foreclosure sale by the Yuba County Sheriff's Office. There were no bidders at the statutorily required minimum bid price at any of the foreclosure sales. There parcels were acquired recently by Tower Wheatland LLC (affiliated with Tower Investments, Inc.). At this time, the City cannot give assurances as to Tower's payment of delinquent or current special taxes; although, if Tower make payments, it is likely to pay by surrendering and canceling CFD No 1 Bonds that it has acquired in the market.

Because of the foregoing and other delinquencies and the lack of funds, the City has depleted the bond debt service reserve account and under-funded the redemption account, resulting in defaults on the payments to the CFD No. 1 bondholders from November 1, 1996 to present.

Date Received:   12/10/2001
Date posted to this website:   Wednesday, January 23, 2002


Issuer:  Wheatland CFD No. 1
County:  Yuba
Project:  Multiple Capital Improvements
Original Sale Date:  11/1/1990
CDIAC Number:  90-1031
Type of Event:  Default
Date of Event:  9/1/2000
Amount of Default:  $1,123,456
Contact:  Richard Shanahan
Phone Number:  (916) 446-4254

Comments:  
Major property owners within the City’s CFD No. 1 have been delinquent in their special tax payments for fiscal years 1992-93 through the present, resulting in a substantial delinquency. The City has pursued judicial foreclosure against the delinquent properties. Foreclosure proceedings against the delinquent property owner have proceeded to final judgment and auction, but there were no bidders at the minimum bid price. The City continues to investigate its options regarding continued foreclosure and delinquency collection efforts against the delinquent properties, and other financial work-out options and strategies. As of this date, the City has no firm work-out plan in place

Date Received:   12/26/2000
Date posted to this website:   Wednesday, February 28, 2001