Safety Harbor Spa Bankruptcy affects City

Safety Harbor is a small quaint historical landmark to the Clearwater, Florida area dating back to the 1500's when it was habitated by Indian shell mound builders, Tocobaga and Seminole Indian tribes who believed the mineral springs had magical healing powers for the sick. When Spanish explorer Hernando De Soto reached the shores of now Old Tampa Bay and discovered the springs, he believed he found the fountain of youth and named them "Espiritu Santo Springs". During the Second World War (1850's) Colonel William J. Bailey purchased the springs and surrounding land from the government, making him the first owner of the springs after the US bought Florida from Spain. The land was called "Bailey by the Sea". Many other names derived for this wonderful find that hold great tales and in the 1900's Safety Harbor became known as the "Health Giving City" with five springs used for specific healing purposes.

This attracted visitors from all over bring a commercialism to the city for international business. Spring water was bottled in jugs and then shipped around the world. Thereafter in the 1920's the land and springs were sold to Captain James Tucker who developed and erected the Espiritu Santo Springs a/k/a The Safety Harbor Sanitorium, the Espiritu Santo Springs Hotel n/k/a The Harbor House. These developments set the Tuckers later into hardship with back taxes and the springs and sanitorium were sold to the Jansik family who restored the resort and added a pool that housed nothing but flowing spring waters. This attracted people from all over the country including a Pioneer of Naturopathic medicine, Dr. Salem Baranoff who in 1945 purchased the springs and sanitorium and visualized a true health spa resort with accomodations. From Dr. Baranoff's vision, word rang out and sports athletes, including professional boxers would come from all over to utilize the facility as a training camp and injury healing center. This later set the path in the 1960's for its recognition by the US Department of Interior and in 1964 it was designated a historical landmark, later to be a Florida Heritage Landmark.

This history proceeded to set the pathway of vision for future owners of the springs and sanatorium. Very wealthy visitors from afar would see this site as their home away from home for its tranquility and serene water views, mineral healing springs and small town lifestyle.

As time evolved, changes in the Clearwater tourism and lifestyles shifted the Spa's visitation. As the tourism to the spa decreased, the spa suffered in maintenance and upkeep. In 2004, a real estate developer purchased the spa with new ideas to regain its beauty and history to the new generation of visitors. It was the intention to demolish the historical landmark and build condos, shops, residences and a new spa in its place. However the community declined this intent pushing forward a full inspection of the buildings which resulted in a plan to renovate and remodel. The Spa was renovated in stages and during this new ownership has encountered various staff reassignments resulting in operational shortfalls, many guest complaints of black mold in the guest rooms, mildew odored hallways, bats in two of the guest towers and that the historical bottled water that was supposed to be from the healing springs, was later found to be nothing more than tap water. Complaints like these listed on travel agency websites and commendation for tourist destination sites caused demise to the Spa's memberships, spa services and guest stays and corporate decisions turned away many business conferences, weddings and events that would otherwise book years in advance. To date many of this issues have been corrected, but in the midst of doing so, the Spa experienced a financial hardship in maintaining their mortgage debt which is listed to be around $30 million not including the unsecured debt to trade creditors. At the same time, declining real estate values and business has not helped and the resort has had to attempt in restructuring their loan. On October 28, 2010 the Safety Harbor Resort and Spa filed Chapter 11 Bankruptcy Protection in an attempt to pay down the debt and keep the resort open until the market improves. Because of its National Landmark status this resort is an important part of the Safety Harbor community. Without the Resort, Safety Harbor would not otherwise be on the map so it wouldn't be surprising to see the City step in to assist this Historical Landmark keep its national status. The mortgage on the Resort includes undeveloped land surrounding the resort along the waterline. This land has declined in value and owners feel has affected the overall operation of the resort, so the City has proposed to purchase this property from the Resort as of June 30, 2011. Ongoing negotiations for land restrictions continue between the Safety Harbor Resort and the City of Safety Harbor and to date a the City has placed a deposit in escrow for purchase of $100,000 deposit pending an appraisal ($13,500)and survey ($6,000) of the property. All monies of which are coming from property taxes generated from the city's community redevelopment area. The city has presented an offer to the Resort for $3.3 million subject to the appraisal. If the appraisal is below their offer, both parties will renegotiate the terms. Within the Plan terms of the Chapter 11 Bankruptcy, the secured debt for the spa was to reduce the $30 million to just under $14 million. In the plan part of the land sale proceeds to the city will go towards reducing that debt.

Thus the legal matters, the Safety Harbor Resort and Spa continues to remain open for business and is honoring all reservations, spa services, etc. As we all know businesses alike all have suffered a great deal with our residential and commercial real estate value decline and rather than shunning away from contributing to a business in hardship, its important to embrace and assist because in the long run, these businesses are what continue to help our economy run and keep our housing values stabilize. And regardless of how the real estate market has been, it has not discontinued the overwhelming interest to purchase a home or open a business in this quaint city.

While the spa may have had some concerns in the past, it is handling them appropriately in the present and in doing so, hopefully we can continue to keep this beautiful landmark on the Historical Register for the future.

@Copyright 2011/HatfieldHomes

Information provided herein was obtained for this article from the following locations:
1. Safety Harbor Resort and Spa, History
2. St. Pete Times Article, October 29, 2010 -
3. St. Pete Times Article, June 30, 2011
4. St. Pete Times Article, August 17, 2011

Comments of guest services retrieved from Expedia, Trip Advisor and Safety Harbor Resort and Spa Comments.

HOMES AFFORDABLE PROGRAMS

In 2010 the HAFA and HAMP programs were implemented to assist a homeowner, where in turn many homeowner's were turned away and the programs became stagnate as no guidelines were in place. As of February 1, 2011 the government as re-implemented both programs with new rules and actual policies and procedures so we as real estate agents can assist our borrowers/homeowners better. If you are in a financial situation that may affect your homeownership, contact an agent today that is specialized in the HAFA, short sales and foreclosure arena. While we can not provide legal advice we can help guide you into starting the process to work with your lender so you can stay in your home and save your credit. We'll talk more about this subject in this month's ongoing blogs as information is made readily available.

FTC guidelines and HAFA restrictions may apply.

NEW FHA Changes that can affect you as a Borrower

As FHA makes their changes we are one step in line with them in letting our client know what to expect. Here is a message from Brian P Forester, a mortgage officer we work with at Tri-County Mortgage to catch you up to speed on what will happen with FHA loans effective September 7, 2010.



Should you have any questions concerning this message and currently are working with a lender for FHA financing, please contact your lender for more information.

The information provided herein is a consumer message and not for the promotion of any lending products. Dawnmarie Hatfield,Keller Williams Realty and/or its affiliates can not guarantee the validity of this message and defer said information or inquiry of such to a licensed professional mortgage lender to discuss with any borrower.

NEW HAFA RULES TAKE EFFECT

HOMES FOR HOMETOWN HEROS- Price Reduced

PASCO COUNTY, FLORIDA (HUDSON)

GREAT LOCATION!

Price Reduced

Shadow Lakes Community- Minutes from Golf Courses

$164,999

MLS#7422067 See our Virtual Tour .....................................

For a Podcast of this Property .........................

For More Information please contact:

Dawnmarie Hatfield,TRC,AHWD,SFR,REOs, Realtor (Keller Williams Realty)

(727) 772-8919 ext 149 or hatfieldhomes@tampabay.rr.com

*Address is protected for seller's security. If you do not have a real estate license with authority to show property, you must make an appointment with a licensed party to preview this property. Safety for all is of upmost importance and all parties that preview this property must be registered prior to show. Thank you for your understanding and cooperation.

Foreclosures and Short Sales

• 

  5 Tips for Buying a Foreclosure

  Get prequalified for a loan and set aside funds, and you’ll be ready to purchase a foreclosed home. Read
• 

  6 Tips for Buying a Home in a Short Sale

  By preparing for a real estate short sale, you can emerge with a great home at a favorable price. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

HOMEOWNER ASSISTANCE PROGRAM FOR OUR MILITARY

The Department of Defense (DOD) is now offering the Homeowners Assistance Program (HAP) to eligible service members and federal civilian, including non-appropriated fund, employees. The program is to assist eligible homeowners who face financial loss when selling their primary residence homes in areas where real estate values have declined because of a base closure or realignment announcement.

The American Recovery and Reinvestment Act of 2009 (ARRA) has also temporarily expanded the HAP to assist service members and DOD employees who are wounded, injured or become ill when deployed, surviving spouses of service members or DOD employees killed or died of wounds while deployed, service member and civilian employees assigned to BRAC 05 organizations, and service members required to permanently relocate during the home mortgage crisis. For more information go to www.hatfieldhomes.org

NEW GUIDELINES FOR FHA –APPROVED CONDOMINIUMS

Finally, the Community Association Institute (CAI) has made a difference. New guidelines call for FHA-approved condominiums to be financially stable and require the mortgage lender to approve the association budget, reserve account and more.

The negative is that we may see Lenders resist it because it will be more work for them, but overall it is a great idea.

Condominium buyers can now purchase knowing that their lender has reviewed the association's financials and found them to be mortgage worthy.

Not only can the qualified buyer purchase with only a 3.5 percent down payment, the mortgage lender must review the reserves, and make sure the insurance policy is current.

CAI is the national voice of association-governed communities, which include homeowners associations, condominiums, cooperatives and other planned communities.

If you are an FHA Buyer and are interested in condos, talk to your real estate agent and lender to see how this may assist in your home search.

HOMEOWNERS IN MORTGAGE DISTRESS

If your mortgage payments are delinquent and you have not contacted your bank, you should do so immediately. I have worked with several sellers that have the idea they can't afford the house, nor the real estate commission, to sell the house with a Realtor, so they would rather just walk away from their home and abandon the house. What homeowners do not realize, is the mortgage that you obtained to finance that house remains attached to you even if the bank that takes over the home sells the property. The contract was between you and the bank and most likely was not transferrable. So if you walk away from the home, you not only look at a future judgment being placed against you (if not tended to can end up costing you far more than the loan did itself) but also a lien on any other property of asset value. It also reduces your chances in obtaining another loan and can cause damage to your credit rating.

As a homeowner in distress, contact your lender. Tell them your financial situation has changed. If you have made your payments on time and are in good standing and still have your job, you may qualify for a loan modification so you can stay in the home. If you have missed payments or the bank does not find you to qualify for a loan modification you may have the option of selling your home in a short sale process, which really isn't short at all.

A short sale involves a lender or investor agreeing to collect less than the balance owed on a mortgage debt out of the proceeds of a negotiated sale of the property. Often, a short sale is the last alternative to foreclosure available to distressed homeowners and banks. If your bank agrees to accepting a short sale, you need to hire a realtor familiar with the short sale process. Then you must wait for a buyer who has financing to close the deal and will make an acceptable offer to the bank. If your property has a second mortgage or home-equity credit line, you also need to negotiate how much that lender will receive from the sale proceeds. Sometimes that second mortgage lien may be worthless, but that bank has a legal power to block the short sale by refusing to sign on the deal. And we have come to find that banks, mortgage providers and bond investors are conflicting in their requirements.

But Homeowners may be in for some relief. Believe it or not the first choice for lenders was to keep borrowers in their homes by offering loan modifications as an alternative to foreclosure. According to the Office of the Comptroller of the Currency on September 30, 2009, more than half of those modifications of delinquent mortgages re-defaulted within a year.

Because of this, Obama's administration has now implemented a new standardized short sale plan that is scheduled to roll out in April 2010 which will require lenders to consider borrowers for a short sale on their primary residence 30 days after missing two consecutive payments on a modified loan or after a borrower requests a short sale.

With this plan, the Department of Treasury's program will pay up to $1,500 for a homeowner to relocate, $1,000 to loan servicing companies that accept a sale and a maximum of $1,000 to help settle a second mortgage or subordinate lien. And the lender must agree to release the borrower from all liability for repayment of the mortgage.

Now if I was a Homeowner In Distress, I would think twice about abandoning my home and do whatever it took to communicate with my lender. Whether it be a loan modification or a short sale, in the end I would have saved my credit and my sanity.

Homeowners could find liens against property with bad contractors

If you've been in the market to purchase a property in short sale, you may want to read this article (Click here) released by the Tampa Tribune concerning properties with liens pending against properties as a result of contractor non-payment to their construction vendors. While this article shares an incident with one bay area contractor, you buyers of short sales out there need to be aware that along with those amazing prices on properties deficient in their mortgage payments, comes possible tax liens, construction liens, attorney's fees, court costs, past due Homeowner's Association Fees, delinquent Homeowner Association Assessments and more.

The market may be pleasing for buyers, but remember "Caveat Emptor" (let the buyer beware). Examine the property and buy at your own risk, that would include not only include a full inspection of the home itself, but of its court and title records to verify what history you will be purchasing along with the home.

GREAT TIME FOR VETERANS TO BUY

VA Loan Still Good Option in a Challenging Economy

More service members and veterans are using their Department of Veterans Affairs (VA) home loan guaranty benefit, as VA's loan program remains a strong option in today's housing market. No-down payment loans are increasingly difficult to obtain with conventional financing. Under recently enacted legislation, VA now uses a locality-based approach in determining ceilings on its no-down payment home loans. VA no-down payment loans are available for as much as $729,000. Larger VA loans may be obtained with relatively small down payments. See full article.Visit the Military.com PCS/Home Buying Guide. It will help you sort through the moving process and ease your PCS. This guide offers moving checklists, articles about finding homes in the right neighborhood, tips for selling your home fast, and much more.