67-Acre Town Center Commercial Parcel Scheduled for April 8th Tax Deed Sale

An enema for relief of constipated real estate development, the catharsis of tax deed and foreclosure sales makes room for new capital, replacing tired or expired capital at market appropriate prices.

Palm Coast, FL – April 4, 2014 – An enema for relief of constipated real estate development, the catharsis of tax deed and foreclosure sales makes room for new capital, replacing tired or expired capital at market appropriate prices. A case in point is the April 8th scheduled tax deed sale for a vacant 67.81-acre commercial parcel in Town Center. The parcel is across Town Center Blvd from the Imagine Charter School.

This parcel was purchases by A&M Global LLC from Palm Coast Holdings in 2005 for $3,150,000. Nine years later, the parcel owner ows nearly $775,000 for delinquent property taxes, interest and fees, as indicated by the estimated opening bid of $774,376.17. The 2013 Just Value is $1,228,752. The maximum Just Value was reached in 2008 at $3,493,115.

A&M Global filed for protection from creditors under Chapter 11 of the U.S. bankruptcy laws in September, 2010. Chapter 11 allows the debtor and creditors to present a reorganization plan for Court approval. Under the settlement agreement, the Flagler County Tax Collector’s claim received priority over other secured creditors, thus the sale.

Presumably the party that prevails at the tax deed sale will take ownership at a price that allows profitable development. Clearly, it was not likely that A&M Global would ever break even or profit from their investment once the market collapsed.

There are several local examples of development constipation finding relief through the injection of fresh capital at market appropriate prices. Sunset Inlet north of Flagler Beach on A1A, Hidden Lakes on Old Kings Road and Brookhaven in Town Center are but a few.

AT the same time, Palm Coast Resort/hotel, The Gardens (former Ginn development on John Anderson) and Grand Reserve have yet to find their financial rescuers.