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> Beachwalk common areas in dispute
Southsider2k12
post Mar 19 2012, 10:45 AM
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http://thenewsdispatch.com/articles/2012/0...83214433617.txt

QUOTE
Beachwalk homeowners express concerns about ownership of 'common areas' of development

By Tim Moran
Staff Writer
Published: Friday, March 16, 2012 5:07 PM CDT
MICHIGAN CITY — More than a dozen Beachwalk homeowners expressed concern about ownership issues of the “common areas” of the development during a Michigan City Plan Commission subcommittee meeting Thursday night at City Hall.

The meeting was organized by the plan commission to hear comments about the city’s agreement with Beachwalk developer Tom Moss. Beachwalk LP is a resort community of more than 150 homes located between U.S. 12 and Stop 7 on Lake Shore Drive, originally developed in the early 1990s.

According to residents there, homeowners have a vote in the association based on the number of lots owned. Moss previously owned 42 lots, according to resident Julie Grabowski, and currently owns 25 of the community’s 150 lots. Moss currently serves as president of the homeowner’s association, according to Mike Selfridge, a member of the association board.

Many claimed that the community’s Homeowners Association has been responsible for financing the continued maintenance of the “common areas,” of Beachwalk including Cason Park, the neighborhood’s lift station as well as the area’s tennis and basketball courts even though the areas are owned by Moss of the Beachwalk Property Association.

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Esther Epstein has resided in the Beachwalk community for nearly 20 years.

She says when the area’s lake, also considered a common area, flooded in 2009, Moss told her the water was the responsibility of the Homeowners Association, which paid for the required pumping of the lake.

“There was water in my basement for over a month,” she said.

But her son, Jim Epstein, says Moss recently declared the lake is his, and that the Homeowner’s Association must pay him $56,000 to be allowed to use it.

The inconsistencies do not end there, according to other homeowners.

Amy Itoka says the developer “can’t have it both ways.”

“I was told these amenities were common elements,” she said.

Itoka added that over the years, “Our Homeowners Association money has been used to maintain them. So either these are common elements belonging to the Homeowners Association by their money or the developer should be talking to the Attorney General on why he used the Homeowners Association’s money to maintain his private property.”

Real Estate agent Mike Conner says he sold properties for Moss for a number of years — all with the “premise” that the public areas were to be controlled by the Homeowners Association.

“When someone would pay $235,000 or more for a 35 foot lot — the reason they paid that amount of money was for those amenities,” he said. “The lake was assumed to be theirs as well as the roads, parks, courts and putting green. That’s the premise the developer sold by and that’s the premise by which all Realtors sold by.”

“We did not sell on the premise that they (the common areas) will be sold or you’d have to pay an undisclosed amount for that,” Conner added. “A number of people would not have bought their properties if that were presented to them.”

Matt Klein purchased a lot in Beachwalk in 2007, but said he would not have had he known Michigan City was unable to force Moss to live up to “agreements” he had signed when the development began. Had (Moss) adhered to his promises or had the city forced him to, we wouldn’t be here today,” he said.

Another concern regarding the condition of Childers Lane, the development’s “back road,” with access to U.S. 12, was presented by residents as well as Michigan City Fire Chief Ron Martin.

“That road is not adequate for our equipment,” Martin said, notifying committee members Tim Smith, Charles Peller and Jim Powers that he will not send trucks that way until the road is improved.

“We want the access road open,” Martin said, adding his concern is “speed” in getting to the properties quickly, “So I can get some sleep at night.”

But Beachwalk homeowner Bernard Edelman argued that if the parcels owned by Moss, which includes Childers Lane, are foreclosed — it “does not matter” if the road is improved.

“Then there won’t be access to anyone,” he said. “Someone in Michigan City needs to act immediately. If the road does not belong to the Homeowners Association or the city, it will be lost.”

Moss, who was seen in the parking lot of City Hall minutes after the meeting began, did not address the residents’ issues Thursday, instead providing reporters with a written statement that included the community’s accomplishments over the last 20 years.

“A former sand mining pit has been transformed into a thriving and vibrant community of Michigan City,” the statement read. “Our homes generate over $60,000,000 of assessed value.”

The statement did address “operating costs,” which Moss said “the vast majority of Beachwalk’s owners don’t use most of the municipal public services provided by the City of Michigan City and their children do not attend the Michigan City Area Schools.”

As the meeting concluded, Smith, who chairs the sub-committee, said this is “a serious issue, and we’ll take it as a serious issue.”

— Staff writer Ilene Haluska contributed to this report.
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Ang
post Mar 23 2012, 12:20 PM
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http://thenewsdispatch.com/articles/2012/0...4e503792974.txt

QUOTE
Commission committee has a plan on Beachwalk

By Ilene Haluska
Staff Writer
Published: Thursday, March 22, 2012 5:06 PM CDT
MICHIGAN CITY — Beachwalk subcommittee members agreed Wednesday to prepare a resolution for the Michigan City Plan Commission that the city take ownership of the sanitary lift station, have the Beachwalk homeowners board take ownership of an access road and keep the city’s Beachwalk subcommittee active to review common area issues.

Emergency access to the road has been temporarily resolved and it is better to allow fire trucks to use the road exercising caution, officials said.

The Plan Commission held a meeting last Thursday with about 20 people attending addressing issues related to the city needing to enforce planning requirements of the Beachwalk resort community of 150 homes located between U.S. 12 and Stop 7 on Lakeshore Drive. Beachwalk was developed in the early 1990s by Tom Moss of Beachwalk L.P.

“We’ve worked with the Plan Commission for several years,” Moss said, calling the process difficult. “I’m hopeful to come to a resolution.” He said he now lives above the Beachwalk office and would wait until the city addresses his property.

Michigan City Beachwalk committee member, Charles “Spike” Peller Jr., and Michigan City Engineer, called Beachwalk “a wonderful development and an asset to Michigan City.”

“It seems to me that all parties, including attorneys, have different opinions as to what the rules are. It’s my opinion that the property developer and owner need to settle as to what the rules are,” he said.

Peller noted that the access road maintenance can be simple asphalt. Beachwalk subcomittee member Jim Powers believes that a covenant agreement was not offered.

Tim Smith, chair of the subcommittee on Beachwalk and vice chair of the Plan Commission, said he recommends the city should address the two health and safety issues with the access road and the lift station first. Then the amenities could be addressed with the homeowners and the bank since the common areas are in foreclosure. He noted in the planned development agreement that these were common areas including the pool and tennis courts and are held in a lien by the bank.

Officials said the amenities and Beachwalk operations were not part of the city’s issue with the development of the property, and issues such as building standards were submitted but not recorded as planning documents.

It was revealed at the meeting that the property owned by Moss has structures on it that are not plotted or approved by the city, which would be addressed at a later time. Also, the home with the lift station located on it is up for sale.

Attorney for the Plan Commission and acting city attorney for this subcommittee Steve Hale added that taking the development out of a homeowners association would bring with it several other issues, but didn’t comment further on them.

Nevertheless, the subcommittee expects to recommend to the Plan Commission that the city acquire the lift station easement and have the Beachwalk association have an easement or license for the access road so they can maintain it.

“The easements in question are different from the easement that would be with the sanitary district so they can maintain the lift station versus the road, which would be an easement for the homeowners association so they can maintain the road,” Smith said.

Jim Epstein, who is representing his mother who lives in the development, said he is happy with the city’s progress in addressing the issues.

“I still think we have issue with the road. If homeowners are given an easement to access the road, it doesn’t resolve the issue because we don’t own it. The developer does.” He said if the common areas are foreclosed on, the road included could be sold off to anyone, fenced off and not repaired.

The resolution is expected to be presented to the Plan Commission at its next meeting Tuesday, March 27, at 7 p.m. at the Michigan City Council chambers.


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Southsider2k12
post Mar 29 2012, 08:11 AM
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http://thenewsdispatch.com/articles/2012/0...2a627971674.txt

QUOTE
Plan Commission approves four Beachwalk resolutions

By Ilene Haluska
Staff Writer
Published: Wednesday, March 28, 2012 5:06 PM CDT
MICHIGAN CITY — The city’s Plan Commission met Tuesday evening and approved four resolutions concerning the Beachwalk development.

The Beachwalk Resort Community has 150 homes in Michigan City and created over three phases in the last 20 years.

The Michigan City Plan Commission formed a subcommittee to evaluate the situation, where association common properties could be sold off in the developer’s foreclosure proceedings and other issues.

The first resolution that was approved includes that the community has 60 days to allow the city an easement to access and operate the community’s sanitary facilities, especially the lift station on a piece of property up for sale.

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The second showed that First Citizens Bank and the developer of Beachwalk make upgrades per the planned development to the access road from Beachwalk to Washington Park Boulevard, allow an easement for the road to the Homeowners Association and report to the city in 60 days. Thereafter the association would take on maintenance of the road.

Thomas Moss, Beachwalk Board secretary, believes that people are providing misleading information in regard to the planned development and common areas. Some areas are reportedly licensed for use by homeowners. He also believes the plan commission is enforcing the planned development, and all of the homeowners are not consulted on the situation with the association’s special committee.

The association hired an attorney to look out for its interests, so La Porte Savings Bank wouldn’t sell off common areas in a February sheriff’s sale of foreclosed property, according to a letter from the association’s special committee’s attorney and Moss, who is part-owner of Beachwalk Limited Partnership.

The foreclosed property is owned by Beachwalk Limited Partnership, which also named Horizon Bank and Moss in the foreclosure.

Beachwalk is a community of more than 100 acres and developed in several phases, said Michigan City Planning Director John Pugh. When the commission approved the development phases, a portion of a development phase wasn’t platted but it issued permits, so he said he isn’t aware of any building violations so far.

The third resolution passed by the commission Tuesday night, addresses this by stating the developer and owner of the common areas must correct the platting issues by the commission’s May meeting.

The fourth resolution expands the subcommittee of the Plan Commission to address, ensure compliance and follow up on the first three resolutions until the Beachwalk situation is resolved.

All commission members voted for the resolutions except for Commissioner Richard Murphy, who said he abstained from voting because he lives in Beachwalk.

“I’m encouraged that the Plan Commission is moving forward and looking at this,” Murphy, who is the city’s First Ward council representative, said.

In other news, the commission also approved a resolution expanding the South Side TIF area to include the Dunes Plaza shopping center, which was approved by the Redevelopment Commission last week. Taxes generated from the retail development would go into the TIF fund, and the development could bring more than 200,000 square feet of retail space to attract national retailers, officials said.

The commission also approved to form a Plat Committee to review plat and lot issues in the city, which is part of the city’s new zoning ordinance adopted in 2011 and allowed by the state. Plat Committee members are Pugh, Russ Hatfield, the city’s code enforcement officer, and Plan Commission member and City Engineer Charles Peller.
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