HomeMy WebLinkAbout98-269 MIt]ROFILMI-U
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OFFICIAL RECORDS OF IIOHAYE O0!JNTY~ AZ
JO/~N I1(: CALL~, rlOHAVE COUNTY RECORDER
08/12/98 04:29F' PAGE 1 OF 3
IIOHAVE COUNTY [',O¢~RD OF SUF'EF:"¢ISOR8
RECORDING FEE
RESOLUTION NO. 98-269
A RESOLUTION SETTING FORTH THE CONCEPTUAL USE OF AN ALTERNATIVE FORM
OF ASSURANCE FOR THE COMPLETION OF SUBDIVISION IMPROVEMENTS FOR THE
UNRECORDED PORTION OF THE FORMER LAKERIDGE ESTATES, TRACT 3035, BEING
A DEVELOPMENT OF A PORTION OF THE NORTH HALF OF SECTION 21, TOWNSHIP 14
NORTH, RANGE 20 WEST, IN THE LAKE HAVASU CITY AREA, MO}lAVE COUNTY,
ARIZONA.
WHEREAS, at the regular meeting of the Mohave Comity Board of Supervisors held on August 10,
1998, a public hearing was conducted to determine whether conceptual approval should be granted to an
alternative form of assurance, under Article V of the Mohave County Subdivision Regulations, as requested
by Steve Palazzola, represented by his attorney, James F. Byme, Jr, and
WHEREAS, Mr. Palazzola is proposing a "third party trust" agreement as an alternative form of
assurance in lieu of the standard types. Under this form of assurance, the entire subdivision would be
recorded once the final plat was approved. Liquid assurances covering the approved engineer's estimate
would be posted for a portion or phase of the subdivision. The entire subdivision would be placed in a trust
with Mohave County named as a party to the trust. A trust agreement would define the functioning of the
trust and ensure that lots are not transferred until the county authorizes such transfers. Transfers would not
be authorized until the subdivision improvements are completed or an acceptable liquid assurance posted
for the phase containing the lot, and
WHEREAS, should the subdivision fail, the county would have liquid assurances to complete
improvements in the phase(s) in which lots had been sold. The county would replat or abandon and revert
to acreage the remainder of the subdivision, and
WHEREAS, a number of Arizona counties and cities use this type of assurance including Pima
County and the City of Kingman. This is a popular form of assurance in other parts of the state. There are
increasing expectations on the part of the developer that the county accept the third party trust, and
WHEREAS, the trusts have not been without problems in other areas of the state, including
premature releases by the trust company. Such occurrences have been relatively rare, however. The largest
issue for Mohave County is administrative costs. The trust agreement proposed by Lakeridge Estates will
not have a measurable effect on the department's resources. However, should these agreements become
popular, the administration of several trusts will tax the department beyond its capacity. A separate fee
structure or administrative cost may have to be imposed on the applicants in the future, and
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RESOLUTION NO. 98-269 Page 2
WHEREAS, the department has identified certain areas that need to be revised before they will
recommend approval of the document:
1. The agreement refers to required improvements. Proposed improvements included in the
Arizona Department of Real Estate (ADRE) report must be referenced also.
2. The agreement allows contracts of sale to occur for lots in trust, provided the contracts
clearly state that the conveyance of title is subject to the limitations contained in the
agreement. Allowing contracts of sale may seriously damage the county's ability to replat
or abandon and revert the subdivision to acreage.
3. That the final agreement state that contracts of sale ,vill take place only in those areas
covered by standard assurances.
4. That the County Attorney's office approve the final trust agreement and the standard
assurance.
WHEREAS, the Board will be approving the actual assurance document before the subdivision
receives final approval, and
WHEREAS, the following are Findings of Fact for the above-captioned item:
a. Article V of the Mohave County Subdivision Regulations allows for alternative forms of
assurances.
b. The county will have adequate liquid assurances for those portions of the subdivision where
the trust company allows transfer of title.
c. The county will have additional administrative responsibilities.
WHEREAS, at the public hearing before the Mohave County Plarm/ng and Zoning Commission on
July 8, 1998, the Commission recommended APPROVAL for this request for a conceptual approval ora
third party trust agreement for the former Lakeridge Estates subject to the following:
1. That the final agreement clearly states that any improvements noted on the ADRE public
report are included in the assurance package.
2. The final agreement states that real estate will not be accepted as a substitute assurance.
3. An opinion from the County Attorney's Office that the contracts of sale will not interfere
with the county's ability to replat or abandon the subdivision and revert it to acreage.
WHEREAS, the notice of hearing was published in The Standard, a newspaper of general
circulation in Kingman, Mohave County, Arizona, July 25, 1998, and posted on July 24, 1998, as required
by Arizona Revised Statutes and the Mohave County Zoning Regulations.
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RESOLUTION NO. 98-269 Page 3
NOW THEREFORE BE IT RESOLVED, that the Board of Supervisors, at their regular meeting
on Monday, August 10, 1998, APPROVED this request for a conceptual approval of a third party trust
agreement for the former Lakeridge Estates as recommended by the Mohave County Planning and Zoning
Commission and outlined herein.
MOHAVE COUNTY BOARD OF SUPERVISORS