A proposed settlement might move the stalled Lost Rabbit development
forward if all parties agree to its terms. The development at the end
of Hoy Road in Madison has been bogged down in lawsuits after the Lost
Rabbit Public Improvement District (PID) dissolved and defaulted on $18
million in bonds sold to Allstate Insurance Company. No properties have
been sold in Lost Rabbit during the last five years. County officials stressed the study did not include any plans for the construction of apartments in Lost Rabbit. The parties agreed to the settlement in principle subject to final approval by their respective legal counsel.
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| Captain America addresses crowd |
Several homeowners in Lost Rabbit and developer Terry Lovelace sued the county, former PID, and Allstate in an effort to stop the levying of assessments as they claimed the PID itself was null and void. The parties have filed over 175 documents in the lawsuit. The Madison County Board of Supervisors hired consultant Steve Rogers to study the development and recommend how the county could “jump-start” the project towards completion and forge a settlement between all parties.
Mr. Rogers presented his report at the boardroom for the county Monday afternoon.* He is the President of Rogers and Associates and former CEO of Parkway Properties. Supervisors Gerald Steen and John Bell Crosby were present. The reports executive summary made six findings:
- Abandon the PID.
- Create an urban renewal district to sell urban renewal bonds.
- Repayment of such bonds is viable. Development should generally follow the original (DPZ) plan but offer a product line.
- There is a strong demand for mid-priced residential housing, very little for commercial development.
- Lost Rabbit needs a leader. There is no leader right now. Mr. Rogers said there was no developer currently filling the role and thus the county was an “acting leader” until the parties could drain the legal swamp.
- Lost Rabbit needs a leader. There is no leader right now. Mr. Rogers said there was no developer currently filling the role and thus the county was an “acting leader” until the parties could drain the legal swamp.
The report states the development can support the sale of a $5.235 urban renewal bond.** Mr. Rogers recommended dissolving the Lost Rabbit PID. He said the PID special assessments made Lost Rabbit the most expensive neighborhood in the area. He presented one chart that stated the combined HOA dues, assessments, taxes, and other assorted fees made Lost Rabbit cost twice as much per home as compared to similar fees in Reunion and Gray Hawk subdivisions. Those two subdivisions averaged approximately over $4,000 per year while Lost Rabbit cost over $8,000 per year due to the special assessment.
County Attorney Mike Espy said the 17.19 mills of the incremental ad valorem taxes from future sales renewal (1% of lot value) would be diverted to paying off the bond. The renewal fee will replace the special assessments. The renewal fee will apply only to new development or purchasers but not current homeowners although Mr. Espy recommended they “voluntarily” pay the renewal fee. Mr. Espy told this correspondent there will be no professional service fees on the sale of the bonds as all parties agreed to "eat" the fees. Allstate will purchase the new issue of bonds (KF note: Thus no bond counsel fee, no underwriter fee, financial adviser fee, etc.).
He said the special assessments were dissolved with the PID. He said Allstate agreed to a new bond sale with a principal of $5.2 million at a 7.875% rate for 20 years in exchange for a $13 million haircut on its current bonds ($18 million). He said all parties agreed to drop this lawsuit although the settlement does not involve the legal fight between Metropolitan Bank and Allstate (that involves the $2 million reserve meant for Lovelace Construction.). He said the projected bond sales and future ad valorem tax revenue were based on Lost Rabbit selling two lots per month.
Mr. Rogers said current homeowners will benefit from “resolving the cloud over the neighborhood” and some portion of the excess reserve would go to the HOA and could fund amenities. The county would maintain the roads in Lost Rabbit.
Terry Lovelace. Mr. Rogers said the settlement will remove the "negative pledge" on his option to develop part of Lost Rabbit. His part of the plan calls for the development of "288 lots". The total size of Lost Rabbit will be 500-600 lots if the study is followed. Mr. Rogers said the "sweet spot" of the market were homes valued at $350,000 to $425,000 and 2,400 to 2,800 square feet. He said the market was "$140 per square foot". 63% of the homes are projected to be in the sweet spot. He said research showed the next "sweet spot" was in the $425,000 to $500,000 range for home sales.
The new plan does not call for the construction of apartments or multi-family dwellings but it does not expressly bar them either. Mr. Rogers said the original Lost Rabbit plan did not bar such development either. Mr. Crosby, Mr. Espy, and Mr. Rogers were all emphatic in stating the proposed settlement did not establish apartments in Lost Rabbit. They also stated the district would have to approve any apartment proposals (KF note: There is a serious doubt that the district will ever do such a thing.). There is no minimum square footage project in the plan. Mr. Rogers said the original plan had no such requirement as well. Mr. Espy said Allstate "did not care" about what was built as long as it got out of the lawsuits and resolved its bond problem.
A Mrs. Shirley strongly objected to the settlement (51:00) as she said 11 homes were replacing a park that was supposed to be built on her street. She said she would be placing her home up for sale and would be "taking a huge loss on it." Another homeowner objected to the removal of tennis courts. Several audience members said such amenities were expected in such a high-end development. One homeowner said he placed his home for sale as he was not provided the "lifestyle experience" he was promised.
The county will release a copy of the study to those who submit a public records request and pay a $25 fee. JJ filed a public records request for the study. Mr. Rogers repeatedly referred to the DPZ (original) plan but JJ does not have a copy of that plan.
*The county gave a private briefing to the Madison County Journal, Northside Sun and this correspondent last Thursday on the condition we did not publish any details until today.
**Urban renewal allows the county to sell bonds without the threat of a bond election if voters gather enough signatures. The same maneuver was used to sell bonds to finance the Sulpher Springs project.
45 comments:
Ironic that the same guy who took Parkway into the tank is suddenly the water walker behind this resurrection.
Parkway was impacted by the recession not Steve Rogers.
Sorry Sparky. The problems with Parkway's business began well before the recession.
What a mess....I personally like the concept and the Development Idea but in my line of work (Real Estate)it has been called Dead Rabbit for several Years now. Greedy Builders killed it with the anticipation of $200+ per SF asking prices when they should have stayed in the $130's - $150's per SF. All there is now is foreclosures and rentals....so sad
Was Lost Rabbit at one time a darling of Todd Stauffer?
7:46 = wrong, unfortunately.
we looked at homes at lost rabbit - lots of them- and found them all to be beautiful- unfortunately the floor plans were hard to actually live in! and the parking seemed difficult if you had children at home. too much like a vacation spot! the larger homes were very expensive and two had apts over the garage for live in nannys- not exactly what we had in mind! beautiful area though.
Doesn't help when you have part-time developers or people who were playing at developing. Heard some houses were built that normal furniture would not fit in the rooms. That tidbit came from several realtors.
'Yes Kingfish..we found that to be true. you could get a kingsize bed in but there would be no room for bedside tables unless you could not shut the door?? or a dining table would have to pulled out from the wall when needed?? and a family room so narrow you could not get more than one sofa and a chair in it and had to watch tv with a neck brace to see it!
Drug reps make great developers
Terry Lovelace?
So where does Terry Lovelace fit in this?
Have all the plaintiffs agreed in principle to this settlement plan?
Looks like it's time for a payday. Notice all the names in this article. I don't think it's irony! http://kingfish1935.blogspot.com/2010/07/madison-county-shenanigans-spill-over.html
Oh, what do you know Google reveals another one. Look at the last developer's name on the list....hmmmm http://www.msnewsnow.com/story/7488250/homeowners-hot-over-undisclosed-tax
Read the Clarion or Herald for info on 'agreement in principal'. Those two tabloids are absent the sniping and peanut gallery experts pretending to be developers.
I suppose if a blog writer can be an expert on retirement plans, law enforcement and amphi-theatre design, then a drug rep might be able to lay out some lots on paper.
February 4, 2014 at 7:29 AM = loyal JJ reader
Has the "new urbanism" or "town center" type development like LR was supposed to be ever actually worked anywhere?
7. Create Office of Redundancy Department
Everyone who got tired of Bagboy saying it "was a report" please stand up.
Why hasn't he put a fire station out there in the Wabbbit since he was so intent on putting one in Madison.
Everyone who is thankful that he is not the Mayor of Madison, please kneel at your pew and praise God.
Did any businesses ever move out there or is it just residential properties that are occupied?
There are several business buildings, partially occupied, at LR. Get off your computer and take a ride.
Mrs. Shirley did NOT object to the settlement at all. She simply objected to the Terry Lovelace phase 3 land use plan in which a scenic waterside park designed for the use and enjoyment by all Lost Rabbit homeowners is replaced with with private homes.
Madison Co treasury will be thoroughly looted and hamstrung with big-time debt by the time we send JBC packing next year. Griffin and Banks know the gig is up and they'll be gettin' fast before their lackey hits the showers.
8:55, a couple of places in the country where land is very limited and there are several million people in a small area. Around here is just another con-game.
Kingfish isn't just a "blog writer". He attended law school and knows a thing or two about research.
Kf is the best investigative reporter in the metro area.
New urbanism typically works in a place where old urbanism once existed and left. You can't go out into the boonies and create a 1920's style urban feel from the ground up....unless you have more density than this state will ever have.
Climate change will increase the value of all Mississippi land and the political leadership will also undergo a major revolution. The notion of 'born in Mississippi' will be like an American Indian. Many natives and neo-confederates will move away. "Lost Rabbit" could become like Santa Monica after the Californians abandon the fires, drought, and quakes.
@1:26 Actually, you are talking about revitalization, often controversially called gentrification. New Urbanism is an attempt to create neighborhoods that are self-contained and therefore walkable. You might have to drive to get to the neighborhood, but once you are there, the idea is that you work/live/shop/play etc. as much as possible in the area. Therefore, the "boonies" is actually the perfect area for a fully realized "New Urbanism" development. If Lost Rabbit had gotten to the stage that a town like Seaside enjoys, it could be great. Unfortunately, there are a LOT of reasons it is not there.
"Kingfish isn't just a "blog writer". He attended law school..."
And that qualifies him as an expert on law enforcement, retirement plans and neighborhood construction and development?
I attended two semesters of Spanish and one of biology but the Departments of State or Interior won't hire me.
The notion that Lost Rabbit could be another Seaside should have been dispelled when people realized there was no sea. The reservoir, however pleasant, is not the Gulf of Mexico. No parking, goofy design, difficult location...there are lots of reasons that Lost Rabbit didn't work out.
At the same time, there are only two reasons the supervisors would agree to a settlement that allows everyone to be paid in part by the taxpayers - either they are being told that the county is at risk for losing even more in a lawsuit, or there are shenanigans going on among the politicians and the developers that will result in positive feedback, er, good publicity...no, that's not it. Campaign contributions? Yes, that sounds better. This should provide the supervisors and other officials with a rich source of campaign donations from people who wish to build small floor plans and multi-family dwellings. Why else commit the county to spending money we otherwise don't have to spend?
I attended two semesters of Spanish and one of biology but the Departments of State or Interior won't hire me.
That is because you are overqualified.
If you are interested in seeing Traditional neighborhood developments that have worked go to DPZ's website. See what you get if you follow their design. Habersham is out in the middle of the country near Beaufort SC. Get in the car and drive to Memphis. On Mud island you will find harbourtown. Great development.
Heard the man hired to plan Lost Rabbit was hired afterwards to plan a similar development in Vicksburg area. Heard they haven't sold many lots there either and their houses are odd. Heard you can shake your neighbors hand in the house next door if you reach out your window. Heard they aren't even on the city sewage system and their sewage goes into a sewage lagoon across the street from the property.
Last year there was a fellow on the dock at Lost Rabbit who commanded me to move on when I dropped a cork in the area of the exclusive docking area. He didn't look at all like Burwell but had the same errant thoughts on who owns the water. And he was just as wrong as Burwell is.
Feb 4, 7.44PM: DPZ DID design Lost Rabbit. Design is not the problem.
Feb 4, 1.26PM has it right - it's a density problem. New urbanism works, but you've got to have enough population to fill up the developments. The Jackson metro in total is not big enough to support one, and a remote spit of land in Madison County certainly was not going to work.
The exceptions would be developments in resort areas - like Habersham and Seaside. On this point, Bill (@ Feb 4, 4.49PM) has got it right - Madison County is NOT a resort area, despite what Mary Hawkins would like us to believe.
All of that being said, Lost Rabbit might have had a fighting chance if it had not launched into one of the worst economic meltdowns in our nation's history. People have been willing to pay close to $200/foot for houses in Madison County. However, the competition was/is largely Bridgewater and Reunion. LR's really nice houses tightly spaced have a hard time competing with the sprawling lots and McMansions of those neighborhoods.
As a commercial or multi-unit development, it would have never worked. Pinnacle Trust is the only business that every occupied any significant space at LR, and I believe that they might have subsequently sued either the developers and/or the contractor that built their building. I am sure that they would like to have a do-over on that decision. As for the multi-unit buildings, I think that those builders have had a hard time selling anything. $200/foot for a kick-ass, beautiful house is one thing, but $200/foot for a townhouse -- not what people in Madison County are looking for.
11:41 Lost Rabbit was/is a congame and there is another one starting on 463.Congame!!
@11:41 ~ Newsflash! Not many these days are looking for "sprawling lots and McMansions". Some are, but most are not. Lost Rabbit is the only place in the county featuring five ceiling fans on the porch of the second floor.
Just try to overlook that total eyesore property on the left as you enter the wooded area on the way under the Trace. That babe belongs to Mary.
All of that being said, Lost Rabbit might have had a fighting chance if it had not launched into one of the worst economic meltdowns in our nation's history.
In other words, had the bubble real estate Ponzi held up Lost Rabbit could have soaked more suckers.
None of the richsters living there were forced to buy property. They all can afford lawyers and advisors. Please stop with the effort to have it appear the area is somehow saturated with victims.
There is one difference between the developers at LR and the developer at the exact opposite end of 463. That difference is that Landrum knows it will fail, embraces that knowledges and doesn't shiv a git.
Thursday, Feb 6 edition of The Journal (news stands in Madison County) is slap full of so much crap about LR that one cannot absorb it all at one sitting. It's a beautiful development. Hate to see it lambasted and would hate to see it completely fail. Nobody planned LR failure, intentions were good and now efforts are underway to salvage the whole thing.
Meanwhile, you ignore a well known shyster who is intentionally planning failure at the corner of 22 & 463.
My understanding is that homeowners at Lost Rabbit do not truly own the land beneath their homes (This, I have been told, is the case elsewhere around the Reservoir.) Additionally, my source mentioned a hefty yearly assessment or fee associated with the landholding arrangement. The fee was quite a lot, and I, personally, would never pay that kind of money to keep a home on land I did not truly own.
...UNLESS the development were gated - really gated, with guards, privately-owned streets, and access denied to unauthorized persons. THEN, I'd feel I was getting something for all that extra money.
Sorry, but fantastic views, a great waterside microclimate, and intimidatingly excellent architectural standards are NOT ENOUGH.
Whether it's Hilton Head or the gated & guarded Malibu Colony, people will pay a premium to be in a place inaccessible to the general public. And they will be more apt to overlook the looming inevitability of Malibu's vulnerability to tsunamis and wildfires, or Hilton Head's vulnerability to catastrophic hurricanes - IF they are sheltered from dangerous and annoying PEOPLE.
Exclusivity commands premium prices. Lost Rabbit would have done splendidly, if they had just put in a staffed gatehouse and adequate fencing. Canebrake, outside Hattiesburg, did that, and the community has attracted some serious money, along with the usual run-of-the-millionaires.
Why didn't this controlled access happen at Lost Rabbit? "New Urbanist" idiocy? "Connectivity"? Developers too cheap to pay for private streets?
Lost Rabbit is developing into the most wonderful neighborhood in Mississippi. Sure, it has been through the wringer with everybody and his brother trying to carve up a piece of it. But now that the lawsuits are gone, families are building new homes along the waterfront. There may be a couple of bank-owned homes still around, but those are going fast. As long as all you guys stay on your computers and don't actually set foot in the neighborhood, it will remain Mississippi's best-kept secret - on the Reservoir and only 7 minutes from the Madison Interstate exit. Have a good day.
Maybe 7 minutes on an early Sunday morning. Have a good day and enjoy your secret.
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