OXNARD : City to Foreclose on Town Center Parcels

The Oxnard City Council agreed Tuesday to begin foreclosure on eight undeveloped parcels at the Oxnard Town Center on which two Solvang development firms had stopped paying improvement taxes.

The action will not affect four other parcels at the office development. River Edge Development Co. of Oxnard has constructed the only office building on the site so far.

But the Santa Clara Development Ltd. and Oxnard Town Center limited partnership were unable to pay $1.04 million in special taxes that were due April 10 and Dec. 10 last year, prompting the city to initiate foreclosure.

The taxes were owed to service $14.77 million in bonds sold in 1988 by the Oxnard Town Center Community Facilities District, which used the money to install roads and utilities for the unimproved parcels.

Under terms of the special tax bonds, Oxnard was required to begin foreclosure proceedings within 150 days after it was notified that the parcel owners were in default.

At Tuesday’s council meeting, Oxnard Finance Director Rudy Muravez said the quick action would “put the city in the driver’s seat” in its effort to attract a replacement developer for the vacant parcels.

If approved, the foreclosure would give the city an advantage over any other debtors that the Solvang firms might have, Muravez said.

He added that the city would put the property up for auction once the foreclosure is approved.

A reserve fund created as part of the bond arrangement will allow the city to continue payments to bondholders until the foreclosure becomes final, Muravez said. City Atty. Gary Gillig estimated that it will take a year before the foreclosure is approved.