Living The Dream

Cardinal Hills / Maravilla saga continued ...

2012-09-12T14:52:00.000-06:00

The Austin American Statesman is following up on the story:

Statesman Watch: Your Eye on Public Services

By Ricardo Gándara

When Wes Mack steps out his front door, the eyesore across the street an uninhabitable, unfinished house frustrates him.

For about six years, there has been no progress on the wooden shell of a house with construction debris, trash and weeds covering the front yard. A developer in Mack's Cardinal Hills neighborhood, off RM 620 in the Lakeway area, stopped work on the house and four others and filed for bankruptcy in 2008, Mack said.

Now, Mack and area land developer James Duncan want Travis County Attorney David Escamilla and County Commissioner Karen Huber to condemn and raze the houses.

"They're a hazard, unsafe, and they are bringing down the property value of the whole neighborhood," Mack said. The area has many picturesque, neatly manicured and expensive homes. But on Canary Street, where Mack lives, and nearby Heron Drive, Meadowlark Street and Hummingbird Lane, the five dilapidated houses mar the view.

"It is very frustrating," said Duncan, who has a vested interest is seeing the houses razed. He owns 30 other lots in the area but can't find buyers. "I'm negatively affected like other property owners."

Duncan was one of several investors who helped build roads and infrastructure in the western Travis County neighborhood about 2005.

In early July, Duncan sent a petition signed by 18 affected homeowners to Huber asking the county to condemn the properties, saying they pose health and safety hazards. Mack said they are kindling for a fire.

The petition also asked the county to pursue "in-substance foreclosure," a type of legal action that is possible when the original debtor abandons a property and there is little or no equity accrued on it, according to the petition. In July, Huber wrote affected homeowners that her office was looking into the problem.

Duncan said one of the problems all along has been determining the legal owners of the houses. According to the Travis Central Appraisal District, the houses and lots are appraised at $53,000 to $65,000 and are owned by individuals who live in Austin, California and Alaska. However, the property taxes on each — about $1,000 annually — are paid by PNC Bank, headquartered in Pittsburgh, according to the Travis County tax assessor-collector's office.

PNC did not return requests for comment.

The Cardinal Hills neighborhood, once known as Maravilla Hills, has a troubled history. Duncan said that in 2006, he sold 40 lots to Primera Homes and its owner, Michael Kelly, for development. About 35 homes were in some phase of construction when Primera Homes filed for bankruptcy about 2007.

In 2008 the Texas Residential Construction Commission, a state agency that no longer exists, banned Kelly from working in the residential construction industry in Texas for 20 years, according to an American-Statesman report at the time. The agency action cited Kelly and Primera Homes for numerous violations, including misappropriating trust funds and using false advertisements, according to the Statesman.

Kelly agreed to the disciplinary action and gave up his right to appeal but did not admit to the findings, the Statesman reported.

Since July, neither Mack nor Duncan has received an update from Travis County officials. Duncan did learn on his own through an open records request that the county filed several notices of violations in 2010 for each address for tall weeds and grass and for substandard structures, and they were mailed to PNC. Also, one of the owners of record got a notice of violation for failing to abate a public nuisance, which Duncan said refers to "a building that is structurally unsafe."

Late Tuesday, however, Assistant County Attorney Gary Martin told Statesman Watch: "We're on top of it and monitoring this closely. We are in ongoing discussions with a lawyer representing PNC. PNC may take over the properties."

He said the fix won't come fast because PNC, which has a lien on the properties, must go through the legal process to become the owner.

"We consider the houses a health and safety issue," Martin said.

Contact Ricardo Gándara at 445-3632

Half-finished homes

The problem: Homeowners say vacant, unfinished homes devalue their neighborhood

Who is responsible: Travis County's transportation and natural resources and county attorney's departments

http://www.statesman.com/news/local/western-travis-residents-sick-of-looking-at-half-2455964.html

State revokes builder's license for 20 years

2008-03-05T19:43:00.002-06:00

Per the Austin American Statesman:

A state commission has banned Central Texas builder Michael Kelly from working in the residential construction industry in Texas for 20 years. It is the longest revocation ordered by the Texas Residential Construction Commission since it was created in 2003, said Patrick Fortner, the commission's director of communications and legislative affairs.

Kelly owns Primera Homes Ltd., an Austin-area building company, the commission said.

It took action against Primera Homes for numerous violations, including misappropriating trust funds and using false advertisements. Kelly and Primera Homes, which are in bankruptcy proceedings, were involved with several Austin-area subdivisions, including Maravilla and Maravilla Hills off RM 620 in the Lake Travis area.....

Link to Statesman article.

Texas Residential Construction Commission press release.

Other blogs following the story.

KVUE follow up, part 2

2007-11-16T11:18:00.000-06:00

Per KVUE:
Homeowners face Mike Kelly

KVUE is there while homeowners ask home builder Mike Kelly tough questions, while he is under oath.

KVUE video link.

KVUE follow up story; Mike Kelly bankruptcy hearing

2007-11-14T23:34:00.000-06:00

Per KVUE:
State investigates business practices of homebuilder Mike Kelly

In February, we first told you about an Austin home builder who was under state investigation for questionable business practices. Since then, the builder has sold all 3 of his austin subdivisions, Maravilla, Maravilla Hills, and La Ventana in Marble Falls. But, as you're about to see, Mike Kelly's history continues to follow him and it's caught the attention of authorities.

KVUE video link.

KVUE story link.

Primera - Maravilla Homes bankruptcy hearing

2007-10-01T08:44:00.000-06:00

Ray Fisher representing Primera Homes Corporation (Debtor)
		Motion to Convert Case From Chapter 11 to Chapter 7 (20 Day Objection Language) ( Filing Fee: $ 0.01 ) filed by U.S. Trustee United States Trustee - AU12

Other opinions of Mike Kelly / Primera Homes

2007-09-28T11:21:00.000-06:00

Comments on the Texas Realty Blog

Rip Off Report

Bad Business Bureau

Primera bankruptcy details

2007-06-29T19:22:00.000-06:00

PRIMERA HOMES: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Primera Homes Corporation
dba Maravilla Homes
fka Primera Homes, Ltd.
12105 Bell Avenue
Austin, TX 78727

Bankruptcy Case No.: 07-11125

Type of Business: The Debtor develops real estate property.

Chapter 11 Petition Date: June 21, 2007

Court: Western District of Texas (Austin)

Judge: Frank R. Monroe

Debtor's Counsel: Ray Fisher, Esq.
Fisher Law Offices
P.O. Box 684565
Austin, TX 78768-4565
Tel: (512) 478-9810
Fax: (877) 346-2241

Estimated Assets: $100,000 to $1 Million

Estimated Debts: $1 Million to $100 Million

Debtor's List of its 20 Largest Unsecured Creditors:

Entity Claim Amount
------ ------------
Michael P. Kelly $1,973,684
12105 Bell Avenue
Austin, TX 78727

Mark Baxter $762,037
Baxter Family Trust
1-5-28 Motoazabu
Tokyo, Japan

First State Bank Central Texas $397,150
c/o Opper & Gambrell, PLLC
8582 Katy Freeway, Suite 200
Houston, TX 77024

JW Contracting LLC $282,499
c/o Jeff Wyss
5114 Balcones Woods Drive, Suite 307-244
Austin, TX 78759

Mindy Bakker & Jason Brown $124,930

RAM Foundation $123,982

Your Plumber, Inc. $105,237

John Jones $102,365

Siena Landscaping $88,897

Chasco Contracting $83,632

Diego Roofing $80,724

Security State Bank $74,362

Aya E. Tsuchimochi $63,158

Jimmy Evans Company $57,745

Leonards Electric $50,644

Allison Kelly $46,249

Infinity Design $45,824

Jerald Broussard $45,000

ECamSecure, Inc. $42,836

Rumgay dba C&D Bobcat $41,450

Primera - Maravilla Homes files for Chapter 11

2007-06-25T21:15:00.000-06:00

On June 21, 2007, Primera Homes Corporation filed a voluntary petition for bankruptcy protection under Chapter 11 reorganization with the U.S. Bankruptcy Court for the Western District of Texas, Austin.

Rep. Gallego files lien bill

2007-03-28T00:04:00.000-06:00

HB 2207 is a bill relating to the conveyance of certain residential real property encumbered by a lien. It is currently in the House Business & Industry committee. KVUE's story on Maravilla Homes brought Rep. Gallego's attention to the matter.

Text of the filed bill may be seen here.

Austin Real Estate Blog mention

2007-03-09T17:41:00.000-06:00

More news on Maravilla and KLBJ ads

KVUE story on Maravilla Homes

2007-03-08T16:59:00.000-06:00

KVUE link

http://www.youtube.com/watch?v=w8W-qmidUeQ

Maravilla Homes response to KVUE story

2007-03-06T13:28:00.000-06:00

Maravilla's public response to the KVUE story from their website, which has now been removed:

Maravilla's Response to KVUE's Report

As per the story airing on February 28, 2007, Maravilla wishes to
respond to the Negative journalism depicted by KVUE Defenders and their
reporter Christine Haas. While Ms. Haas and her team have succeeded in
their sensationalistic journalism in a one-sided consumer report, we
feel that there are more pieces to the story that were neglected in the
broadcast.

These willfully neglected pieces of the story will now be brought to
light below. We have a responsibility to our homeowners and the
community to tell the story accurately, and unveil all facts associated
with this matter.

Here are the facts:

In response to the liens by Jimmy Evans and Chasco:

- These companies were hired to do the development for this subdivision,
i.e. cutting in roads. These liens are for some previous work as well as
the retainage amount for the job which is commonly paid at acceptance of
the Subdivision. There is a bond in place for the subdivision to assure
the finish-out of the development. Chasco and Jimmy Evans have placed
liens on the Subdivision and not individual lots. As Chasco and Jimmy
Evans have made no improvements to individual lots. These liens are in
process of being dealt with.

In response to drainage issues within the neighborhood:

- When the plans for the subdivision were completed, culvert sizes were
specified on an individual lot basis per engineering plans. When each
individual job was permitted, 18" culverts were specified per Travis
County. The 18" culverts were installed as specified, but did not match
the engineering plans. Once the discrepancy between the culvert sizing
were brought to our attention, Travis County was consulted and it was
decided that the original engineering specifications were to be met.
Maravilla Homes is moving forward in replacing these culverts as
necessary. In addition, there are also some concerns on drainage in the
subdivision. The original drainage was done per engineering plan, with
the exception of the culverts which are being modified. A new engineer
has been brought on board by Maravilla Homes to address the outstanding
issues within the subdivision. Travis County and Maravilla Homes are
working together diligently to address this issues. (Please see the
e-mail below for details.) Regarding the flooding comments, to our
knowledge, there has been no incident of water entering into any home in
our community.

Not only have several of our residents e-mailed and spoken to Ms. Haas
in efforts to stop this story from airing, a petition has circled the
neighborhood as well. In addition to drawing negative attention to our
community, this story could potentially decrease the property values for
everyone in the neighborhood. The negative depiction of all Maravilla
homeowners is false. There are many homeowners that love their homes and
whose opinions were of no interest to Ms. Haas. (Please see customer
comments below on the joy and contentment in living in a superior-built,
Maravilla Home.) The desire of homeowners to uphold the prestige and
their property values is also of no concern to Ms. Haas. The prejudiced
opinion from a minority has spoken, and KVUE Defenders feels this makes
for the most compelling journalism.

Travis County's Response to Maravilla's Outstanding Issues:

-----Original Message-----

Paul, thank you for meeting with us yesterday to discuss a plan of
action to address the issues in Maravilla.

As per our discussion yesterday:

Ed Moore will assess the current construction and submit a signed and
sealed letter attesting to either that the improvements were built as to
the original construction plan or listing the improvements that deviate
from the original construction plans.

Ed Moore will also submit a new set of construction plans (to amend the
original construction plans) to address the drainage issues in
Maravilla.

Based on discussions at our meeting I am anticipating receiving those
plans in about a month.

Dennis Case (Travis County inspector) will contact Ed Moore and together
they will perform a final construction inspection walk-thru of the
project.

Dennis Case will prepare a new punch list that details the remaining
work that has to be done for compliance with Travis County requirements,
allowing acceptance of the street and drainage improvements on the
original construction plans (including any items not completed, and
items that need to be fixed).

Once the punch list is prepared and the new set of construction plans
are submitted and approved, we will work together on creating a schedule
for the all the required improvements.

We look forward to working with you and getting this project completed.

Thanks,

Anna Bowlin, AICP
Development Services Program Manager
Travis County
854-7561
Maravillahomes.com lake travis primera homes austin texas homebuilders mike kelly KVUE TV story unpaid vendor liens maravilla lakeway tx