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Article
Courtesy of The Tampa Tribune By Laura
Kinsler Published
January 12, 2013
As confident homebuilders start construction on the first new model homes at Connerton, details are beginning to emerge about the "obstructionist bondholder" who still is trying to scuttle development in the community.
When he announced the sale of 510 lots in Connerton last month, Hayman Woods Vice President Adam Krug said the Texas-based developer had resolved its issues with the bondholder. That bondholder is South Florida real estate tycoon Arthur Falcone, a name familiar in local real estate circles.
Community
Development District Chairman Stew Gibbons said Falcone's
shares involve undeveloped land in Connerton and will have no
effect on home construction this year. "It's really just
a distraction from the good things that are happening
here," he said.
Krug
said Hayman Woods paid the debt assessments on lots that were
sold to builders. "So activity is restarting, we're
making substantial community improvements, there is a couple
years' worth of developed lot inventory for them to sell
through, and the community will be very successful," he
said.
"Any
unresolved issue with a bondholder would pertain to certain
other undeveloped land parcels we own that would not affect
the current development whatsoever."
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This is Connerton, a Land O' Lakes work in progress. That's the community center in the distance. Homes by WestBay is breaking ground on a model home, the first construction there in two years.
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The builders are bullish on
Connerton. Several hope to have models open in time for the 2013 Parade of Homes
in March.
Luxury homebuilder Homes by WestBay,
which bought 45 lots, is the first to break ground, on a 3,900-square-foot model
home. Marketing Director Janice Snow said the builders were geared up to start
construction in the summer.
"We've been ready, and now it's
great because we're getting inquiries from buyers," Snow said. "It
felt like we were waiting for the kettle to boil, and all of a sudden it's
boiling."
WestBay, which bought the largest
lots, is offering six floor plans from its estate series homes. The houses will
start at $289,990 but will average in the mid-$300,000 range.
Gibbons said Connerton residents
finally have something to be excited about. "There's a lot of
enthusiasm," he said. "They've been waiting a long time for this to
happen."
Connerton had 256 completed homes
when construction stalled. Dozens of homes went into foreclosure or short sales,
which lowered everyone's property values, Gibbons said.
"The pricing on these new homes
is significantly higher than the foreclosure prices," he said. "It
should boost everyone's property values."
Taylor Morrison Homes paid $10.5
million for more than 200 finished lots, including all of the town house lots
near the clubhouse and dozens of single-family-home lots. MI Homes bought more
than 100 lots.
Ryland Homes bought 115 lots.
Florida Division President Joe Fontana said the homebuilder will start building
a model of its Frost II home as soon as the county approves the building permit.
"Connerton is going to be, in
my view, the largest, most destination-oriented community in that sector of
Pasco County," Fontana said. "The amenities are second to none. The
existing homes are very nice, and it has good schools. It has all things a
builder looks for."
The Frost II is a two-story,
2,273-square-foot home with four bedrooms and 2.5 baths. "It's a relatively
new design," Fontana said. "The only other one we have is at FishHawk
Ranch."
Fontana said he has been working
closely with Krug for two years as the developer struggled to close on a $40
million debt restructuring deal that cleared the way for homebuilding to resume.
Falcone was part of an investment
group that bought some $15 million of Connerton's bonds last spring — after
district managers approved the debt restructuring but before the deal closed.
Krug said the deal was held up by an "obstructionist bondholder."
"A year ago, we initiated a
process of restructuring all of the debt," Krug said. "We made
substantial progress in that effort. We were right on the goal line. The owner
of the bonds has stated explicitly that they have no interest in restructuring
of the bonds. It's unfortunate for the community and the district that this
foreclosure is going forward. It wasn't for lack of effort on our part."
At Monday's CDD meeting, a
representative of the Falcone Group pressed board supervisors to initiate
foreclosure on the community's unpaid debt on the bonds. Commissioners said they
were legally obligated to foreclose since the bondholder would not agree to a
restructuring deal.
Falcone could not be reached for
comment. He was the founder and chief executive of Transeastern Homes, which
launched New Tampa's Live Oak Preserve and previously owned Tampa Bay Golf &
Country Club.
Transeastern Homes was the
fastest-growing homebuilder in the United States before being acquired by TOUSA
at the height of the real estate bubble in 2005. TOUSA ended up going bankrupt
and was forced to sell its Florida assets at auction six years later.
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