CAVE CREEK – During the May 30 special meeting, council voted unanimously to approve a resolution to rescind two prior resolutions concerning a special assessment on eight properties along Cave Creek Wash that would have involved improvements to the wash to mitigate flooding.
Interim Town Manager Carrie Dyrek explained there was a flood in 2010, after which the town applied for a grant from FEMA.
Although FEMA approved the proposed project, it was unable to come up with the money to fund the grant.
The balance of the funding was going to be accomplished through either bonds or a WIFA (Water Infrastructure Finance Authority) loan to be reimbursed to the town by the eight property owners with assessments recorded against each of the properties.
Planning Director Ian Cordwell explained one of the properties is being sold with a lot split with the owner donating one parcel to the Desert Foothills Land Trust and was scheduled to close escrow the next day.
However, the title company discovered the encumbrance against the property and the
property owner requested the town remove it.
Vice Mayor Ron Sova asked Cordwell if it shows up as a lien on their property.
Cordwell said it does.
Councilwoman Eileen Wright asked, “What about the other seven property owners? We’re denying them the right to
weigh in on it.”
Mayor Ernie Bunch stated two of the other properties have previously sold but apparently the title companies didn’t notice.
Dyrek explained to Wright there was never any FEMA funding, which would have been hundreds of thousands of dollars.
The town would have been required to technically fund the balance of the project and recorded the special assessments to assure the property owners would reimburse the town.
Without FEMA funding, the project was unable to move forward and the time constraints to complete the project had long expired.
Sova asked if there was a sunset clause in the resolution as it was recorded.
Wright said she had a copy of the resolution and there was no sunset clause.
With Councilman Thomas McGuire absent, Councilwoman Susan Clancy’s motion to approve the resolution carried unanimously.
