Overdue assessment payment gives HI breathing room
HOLIDAY ISLAND -- Sighs of relief might have been heard issuing from the Holiday Island Suburban Improvement District (HISID) office Friday as nearly a quarter of a million dollars came flowing into the district's coffers by wire.
The $228,660 came from National Recreational Properties, Inc.'s (NRPI) financier, Capital Source, to cover assessments and penalties owed for 2008, reported District Manager Kevin Crosson.
The annual assessments were due by Oct. 10, but NRPI had been making quarterly payments until last year when slowing lot sales forced the real estate marketing firm to pull out of the information center in Holiday Island and concentrate their efforts elsewhere -- namely Hot Springs and Bella Vista.
When they missed their spring and summer quarterly payments, Crosson and his staff prepared a 2009 budget that slashed expenses by about $200,000. Included in those painful tightening measures were reducing 11 employees across departments to part-time status and postponing some capital projects.
The lump assessment payment represents monies owed on different types of lots, including more than 400 R-1 residential lots, six R-3 lots and more than 100 lots that had partial payments on them.
The lump sum also included a 25-percent late payment penalty of $55,000.
"That's everything they owe for 2008 for assessments and penalties," Crosson said. "They are paid in full. We're tickled to death."
He said Capital Source did not want to foreclose on NRPI's lots.
"They wanted to make sure their mortgages were solvent. I want to congratulate our staff for staying after it until we finally got this resolved with NRPI. We'll continue to work with them and with Capital Source, and hopefully this won't happen this year."
He said he will not recommend the board adjust the budget yet, except perhaps to suggest purchasing some unbudgeted capital items like a generator for the Rocky Top well booster station, which was offline due to a power outage during the recent ice storm. Because of that, people atop that hill had no water.
The payment of monies due brings assessment collections for 2008 to normal levels, Crosson said.
"We've committed to not change anything in the budget immediately but will evaluate our financial position mid-year."