The Harbor Files Chapter 11, City of Rockwall Press Release

Press Release from the City of Rockwall, March 9th, 2010

The City of Rockwall has been notified that one of the companies associated with the Harbor development, Mariah Bay Leasing Corporation, has filed for reorganization under Chapter 11 of the federal Bankruptcy Code.  This property is located in the Harbor Tax Increment Financing (TIF) District that was created by the city to fund the public improvements the city constructed at the Harbor, including roads, utilities, spray fountains, walkways and other public enhancements located along the lake edge.

The City issued debt to pay for the public improvements and that debt is paid for through the property and sales taxes that are collected within the TIF.

This property owner is one of a total of 38 property owners that pay property taxes into the TIF, which incorporates a total of 113 acres.  The total property taxes owed to the city under the TIF equals $ 529,419.  This number includes taxes collected by Rockwall county and pledged to the city for the TIF.  The total collected in the TIF to date equals $300,050.  The Harbor development, which includes this property owner as well as several others, has paid a total of $256,061.  They still owe a total of  $223,063, only a portion of which is owed by this particular company.  Property taxes are still owed and payable even in the event of a bankruptcy.  These dollars will be collected by the city.  Sales taxes continue to be paid by the tenants and the businesses will continue to operate.

The developer, Rob Whittle  has indicated that they have every intention of addressing their financing issues and come out of this in a stronger and better position.  The city has every confidence that the long term prospects for the Harbor as a successful business development in the City of Rockwall are strong and this area will continue to be an asset to the community.