La Ventana homeowners face huge, unexpected payments in 2033

La Ventana homeowners could be on the hook for thousands of dollars more in 2033 when a $2.18 million bill is due for public infrastructure built when the Marble Falls neighborhood was developed in 2005.

The city is currently caught between the LLC that holds the rights to the yearly payments and the homeowners who are responsible for them, and officials are seeking the best path forward.

Property owners in the neighborhood located south of the U.S. 281 bridge are obligated to pay the combined $2.18 million to the La Ventana Public Improvement District LLC by the end of the contract date in 2033 to satisfy the developer’s initial investment. The developer fronted the money to install streets and utilities under the condition that future homeowners would gradually pay it back. 

The city is responsible for collecting and managing La Ventana PID payments and ensuring the full amount is repaid. The yearly payments are passed on to whomever owns a home in the PID. Sellers are legally required to inform buyers of the payments.

A public hearing on proposed changes to the payments is 6 p.m. Tuesday, Sept. 3, at City Hall, 800 Third St. in Marble Falls.

A recent analysis of the La Ventana PID payment plan determined the full $2.18 million would not be paid back by the end of the contract. To remedy this, the city and its contracted public improvement district administrator, P3 Works, proposed adding large, one-time payments at the end of the terms of the contract in 2033.

In total, property owners currently owe $229,312.25 to La Ventana PID LLC. Some owe as little as $35, others as high as $24,957.52, depending on the size and purpose of their property. These amounts are to be paid back in installments leading up to 2033.

Many homeowners saw large “balloon payments” tagged on to the end of their terms after making consistent payments at much lower rates for years. These balloon payments can be several thousand dollars, depending on the circumstances of each property owner.

The Marble Falls City Council held a previous public hearing on the annual PID payments on Aug. 20 but delayed a decision due to concerns of residents who felt blindsided by the proposed changes.

La Ventana homeowner Randy Kruger explained to DailyTrib.com that he was only notified about major changes to his PID payment six days before the hearing. His annual payment had been $536.67 for years, but the council added a $11,032 payment for 2033 into the proposed plan.

“I didn’t have much time to figure out what was going on,” Kruger said. 

He’s not the only one dealing with a balloon payment. Many property owners are facing swollen payments in 2033, including:

• The owner of Parcel 82660 will go from an annual payment of $571.67 to $6,381.39 in 2033.
• Lot Class A-2026 CO’s annual payment of $536.67 balloons to $7,492.43 in 2033.
• The owner of Parcel 70703 has paid an annual installment of $536.67 but will face a $6,819.03 payment in 2033.

According to Marble Falls Deputy City Manager Caleb Kraenzel, the city is legally obligated to satisfy the terms of the 2005 La Ventana PID contract and ensure the full $2.18 million is paid back. He said that without these proposed balloon payments, that can’t happen and it could open up the city to legal consequences.

“The City understands that this situation has a real financial impact on La Ventana owners, especially those that may not have been aware for whatever reason that their property was subject to (PID payments), but the City has worked hard to minimize the financial impacts of these changes to the (payment plan) on owners while still upholding its obligations under the ordinance and the (public improvement district’s) creation documents,” reads a written response to DailyTrib.com from Kraenzel. 

dakota@thepicayune.com