News Room
Wheatland CFD Sees Some Movement
By California Municipal Bond Advisor
November 1, 2001
The defaulted $2.1 million Wheatland CFD No. 1 Special Tax Bond (1990) finally are producing enough fodder for an update. As we noted in April and in an earlier edition, the area around Sacramento has boomed (though sure to slow a bit with the economy), but not boomed quite enough to help Wheatland's district.
An affiliate of Tower Investment Inc.-a company we've mentioned before because it has scooped up delinquent land in other districts to seek development opportunities-recently acquired two major Wheatland parcels that have been behind on special tax payments for almost a decade. Tower may meet its obligations on the land by turning in bonds it acquired in the secondary market, a district release said.
Also, two other parcels that Tower acquired (and paid off delinquencies by turning in bonds) may be developed. One is being marketed to a potential buyer for commercial development, and an affiliate for Forecast Homes is starting to prepare a single-family home subdivision on another.
While it's too early to say how the increased development will benefit the remaining $1.64 million bonds outstanding, any progress is welcome to as an alternative to raw land and may spur more interest in the development. Also, $301,723 in a special tax fund from homeowner payments should be distributed to investors before year-end. As always, we don't give advice on speculative defaulted dirt bonds, just want to make sure the latest word gets out.