Jacksonville, Florida Community Development District Sues Subdivision Developer
In 2005, when the real estate market was booming, Yellow Bluff Development LLC asked the Jacksonville City Council to create the Tison’s Landing Community Development District. In turn, the district issued nearly $40 million in bonds to pay for roads, drainage, water lines, streetlights and a neighborhood recreation center for the nearly 700 home community that Yellow Bluff planned to build at Tison’s Landing. Under Florida state law, the developer is responsible for repaying the bonds at first, but may shift responsibility to property owners via assessment over a thirty year period. Since home sales have not materialized, Yellow Bluff has now failed to pay its annual assessment to the district. Therefore the Tison’s Landing Community Development District has declared Yellow Bluff in default and filed a foreclosure suit in Duval County Circuit Court. The move by a development district to foreclose on a developer is very rare in Florida. The development district plans to foreclose on the land and find a buyer for the property. While Yellow Bluff did not file an objection to the foreclosure, Mercantile Bank, which holds a mortgage on the Tison’s Landing Property, filed a challenge, saying that Tison’s Landing Community Development District must wait a full year after a missed payment to foreclose. Read more at Community development district files suit after Florida developer doesn’t pay. If you live in the Jacksonville, Florida or Orlando, Florida area and have a business legal matter, please contact Wood, Atter & Wolf, P.A. for business legal counsel.
