European Stars and Stripes (Newspaper) - May 15, 1990, Darmstadt, Hesse Page 8 a a a the stars and stripes tuesday May 15,1990 a amps special report gds dream deals turning to nightmares continued from Page 1 was that the company systematically priced its residential property Well above Market rates and made unsubstantiated claims that All Florida real estate was increasing in value when it Wasny to prosecutors said. Developments in which gds is accused of Selling property at inflated prices include port Labelle port Charlotte North port port St. Lucie Vero Beach Highlands and Vero shores port Malabar Sebastian Highlands Silver Springs shores and jul Lington Creek. The Sites stretch from near Jacksonville in Northeast Florida to near fort Myers on the Southern Gulf coast. According to the recent Federal indictment in Miami the scheme was supported by a gds sales Force around the world that preyed almost exclusively on out of state buyers ignorant of property values in Florida. The company had numerous sales agents working in military communities around the Globe including West Germany Britain Japan South Korea and Guam. Wragg said All sales offices outside Florida were closed in Early april resulting in 1,100 layoffs. There arc no plans to reopen sales offices in Europe he said. The company a problems have alarmed some Servic members in Europe. They Are continuing to make monthly payments on gds Home Sites in Florida even though the land May be Worth Only a fraction of what they re being charged. A my concern is was i charged too much and can i get some of that taken off a asked sgt. James Becker a military policeman in Karlsruhe. Becker paid $16,000 Cash for a lot in Vero Beach and put $5,000 Down on a $31,000 Home site in port St. Lucie. He said the More expensive lot was advertised by gds salesmen As a one acre estate lot but a relative in Florida who saw the property told him its Only one Quarter of an acre. Becker like most service members bought his property sight unseen. Bryant put $3,500 Down on a Small lot in port Charlotte last december. He continues to make payments of $217 a month to gds even though he says he s afraid his property is Worth Only half the $22,500 he has agreed to pay. Gds salesmen made the Purchase seem like a Deal that be missed Bryant said. A they show you charts where land values in Florida have increased 15 percent a year a he said. A they say this is no guarantee but Here a the track record. Then they push you toward a Home Purchase through i \7ucy show you ? video in your Home with their land being turned into a Well planned Community with a yacht club and racquetball courts. It All sounded Good to me a said Bryant who bought the property without seeing it. Service members who have done business with gds face a number of problems. Even if they sue and prove wrongdoing on the part of the company they might never collect a dime in damages because of the bankruptcy Case. A be company has filed for bankruptcy it halts All the lawsuits said Richard Joel an attorney in new Jersey who represents hundreds of gds lot Home and condominium buyers. Gds did much a amps Dave Stdio sgt. James Becker and his wife Jeanine review their sales contract with general development corp. Of its business in the Northeast Selling property to people keen on retiring to Florida. Instead of filing a damage suit Joel suggested that lot owners file a proof of claim with the . Bankruptcy court in Miami showing How much they paid for a lot and its location. But he said even that does no to offer any guarantee. When the bankruptcy is worked out lot owners will be a Way Down in priority a he said. Lot owners who done to file suit and keep making payments might end up losers As Well Joel said. In some cases gds Home Sites done to have roads sewer lines or electric service and the company a financial state is such that some lots might never be developed he said. A we be got a super mess right now a Joel said. The question becomes Are you throwing Good Money after bad by continuing to Send in monthly payments he said some lot owners might never get any use out of their land a unless they want to pitch a tent on Douglas Lyons a Miami attorney who represents Many gds customers suggested that property owners Stop paying their monthly instalments under certain conditions. Lot owners should have their property appraised and if its Worth less than the amount they still owe on it Stop payment and seek a full refund he advised. Mark Binstein a real estate investigator working on a Federal lawsuit against the company said Many of go cd slots Are virtually worthless. A i pay a dime for some of these lots you a need the 82nd airborne to find some of these areas. The streets Are overgrown with Jungle in some cases. And in other cases there Are no utilities and there May never be any. A ninety percent of what service members Over seas own is undeveloped not marketable and Thev ought not want to own he suggested that property owners sue gds Quot if people Stop paying on their lots it will have Zero Impact on their lawsuit a Binstein added. A if someone sues they re saying a keep your. Lot. I want recovery of what i paid plus interest and punitive a warning joining Binstein a lawsuit Isnit free it costs Between $300 and $650 to join his lot owners association depending on the Type and value of property owned. If any settlement is reached with gds or a monetary judgment is lodged against the company lawyers will keep 20 percent of the take. Not everyone is pessimistic. Some Florida real estate professionals and county officials said go cd a bankruptcy will result in a fair shake for property owners. And gds officials have asked lot owners to continue making monthly payments so that the company can live to develop another Day. A something will come out of the bankruptcy proceedings to wrap things up without harming the people who bought land a said Newt Jones a tax collector in Brevard county where gds owes $2 million in delinquent property taxes on about 18,000 residential lots. Gene Morris the tax collector in Indian River county agreed. Gds owes the county More than $680,000 in delinquent taxes on 2,400 residential lots but Morris said he thinks everything will work out in the Long run. A exactly How that will happen depends on How the company comes out of chapter 11. They May be allowed to reorganize and pay off their debts or they May just liquidate and let other developers take Over a he said. Mac Olsen the tax collector in Marion county Isnit As confident. He suggested that property owners get in touch with the county tax office where they own land to learn whether gds is behind on taxes tied to their lots. Gds lot sales were structured in such a Way that the buyer pays monthly instalments and builds equity Little by Little but he does no to receive the deed to his property until its paid for. Gds is supposed to pay the taxes during this period. Under Florida Law a county is allowed to auction property to Settle unpaid taxes but that process can take two years or More. Still Olsen said service members should be on guard. He suggested they Check on the tax status of their property and provide government officials with an accurate mailing address so that correspondence can be sent to them in an emergency. One option service members might consider is paying the taxes themselves. At least one real estate expert in South Florida said he thinks its Worth keeping a firm hold on property bought from gds. A there Are some areas where the roads Are not yet in. And there Are some sewer systems and water lines not in. But on the whole these areas Are being developed a said John Svec who owns a real estate sales office near port St. Lucie. If you re a customer of general development corp., Here Are a few tips forgetting help. Property owners living overseas who think they might have paid gds too much for a residential lot or House might want to get their property reappraised k an Independent appraiser can be found by writing the state Agency that issues licenses for that profession. Ask for companies working in the county where your Home or lot is located. Expect to pay $175 for the appraisal. Write to another Issue that May be of concern is the $12 million m delinquent property taxes that general development owes to several county governments. Although Florida officials say it would take at least two years for any service members to lose property via a tax auction you still might want to Check on your lot. Here Are phone numbers for Many of the Florida counties where gds is known to have tax problems a port St. Lucie county a tax collector Dorothy Conrad phone 407-468-1650. A Romy a apartment of professional regulation 2223 Rob non St., Orlando Fla. The zip code is ys�5u6n a collector Liz Klaber 32801. Phone 813-951_____ a Charlotte county a tax collector Victor Des Guin phone 813-743-1350. A Brevard county a tax collector Newt Jones phone 407-269-8173. A Hendry county a tax collector Peggy Hampton phone 813-675-5280. A Indian River county a tax collector Gene moms phone 407-567-8180. A St. Johns county a tax collector Dennis Hollingsworth phone 904-824-8131. A ,�0ou�?ojsyft a tax collector Mac Olsen phone 904-368-8200. Finally if you re of a mind to sue general development you might want to Contact the North port tout of state lot owners association which already counts about 7,500 gds property owners As clients. The association filed a lawsuit against the company is Rar Federal court. Call 201-261 1549 for information. A
