How could this be? So claims an unnamed bank security rep in Davis who used to be a police sherrif. It would seem that one of the partners pulled out and the property is presently in play at some level. When buyers purchased their lots the bylaws and covenants spell out the terms associated with the lodge, and as I recall it was one sweet deal for the Homeowners Association. So why is there financing on the lodge if the homeowners own it?
As you may know North American Land marketed Tuscan's lots for 90-125K each for Phase 1. Tuscan Ridge was to be annexed to the Town of Davis in consideration of the tax revenues and Tuscan's willingness to fund the expansion of the Town's sewage treatment plant. No sewage plant expansion is in sight at this time.
Fire sale prices. Today there are dozens of lots on the market for as little as 40% of thier original sales prices. Nothing in Canaan compares with this implosion. There have been no resales that I am aware of, even at the low resale asking prices.
Encumbered proposition. How does a seller or an agent explain to a potential buyer that the expanded sewage treatment plant is an unfulfilled promise?...that the lodge -- its central amenity -- is in bank hands?
Comps in downtown Davis for a standard lot -- if you can find one to buy -- are about $22K, or $40k for a corner. That comes with sewer, water, and town services -- but no fancy Owner's Lodge;). Tuscan would be about where it should be for about $35k average price per lot -- but that would require solving the sewer plant issue and making sure the Homeowner's Association isn't upside down.
I would guess that any buyer who had financing for their lot purchase will consider walking away from the properties. Quite a few have already turned them back over to the banks. If you own a Tuscan lot or know more about the status of this development please share.
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