Arborwood district files lien foreclosure suit following bond default

By Caroline Salls

Pittsburgh, June 24 - Arborwood Community Development District has filed a lawsuit against KCS Plantation, LLC and Regions Bank in connection with the foreclosure of special assessment liens on property in Lee County, Fla., according to a disclosure release.

According to the complaint, the district mailed a demand letter in April to KCS requesting payment for past due assessments for Arborwood's 2005 school site bonds.

However, Arborwood said KCS has not made any payments on the assessments for fiscal year 2009, triggering a default on its obligations to the district.

As a result, the district said it has a right to foreclose on the related special assessment liens.

Arborwood is asking the Circuit Court of the 20th Judicial Circuit of the State of Florida to grant foreclosure on the liens.

In addition, Arborwood is seeking a judgment that it is entitled to a total of $31.07 million in debt assessments plus interest, $25,572 in operations and maintenance special assessments, plus interest and $20.81 million for breach of a related true-up agreement.

The district is also seeking reimbursement of its attorneys' fees and lawsuit costs.

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