We’ll get Chico, our investigative reporter, to sniff this out. Blogfinger photo.
Paul,
May 24, 2016: I am sure you are busy today but I just heard that there is to be a meeting today with the CMA and interested parties to discuss and negotiate the new ground rent fees.
Apparently the Carriage Inn was surprised at the closing of their purchase by the cost increase of ground rent and givebacks which were required.
Seems like a gag order is in place.
Might be worth checking with the Chamber or local realtors
Seems like an important story for Ocean Grove.
Anybody out there know what’s going on?
From Curious Lately
Editor’s Note: We know that these increases pertain to commercial real estate and not to private homes. Of course, any new homes including condominiums are subject to substantial land lease increases on top of their real estate taxes. –Paul @Blogfinger
6/3/16 Because of renewed interest in this subject, we have moved this post to near the top.—PG
JULIE LONDON:
OhGee is right. The CMA needs money, and raising homeowners’ ground rent (only upon sale of a house, of course) would be a legal way for them to get that money.
I really don’t think that the CMA cares one bit about how such an action would depress house values in OG. Although Neptune Township might (since depressed home values will depress tax revenues from OG). Which I think is why they are following this situation closely.
“It currently doesn’t effect the vast majority of homeowners who have enjoyed a $10.50 yearly lease thanks to the CMA honoring its 99 year leases.” Perhaps not, but when you go to sell your house, look out!!! If the CMA is willing to play games with the sale of a B&B, the residents aren’t far behind.
As a homeowner I am totally opposed to a boycott of the CMA. It is not our fight at this time. I am paying my lease bill today—$10.50.
There should be serious discussion about a movement by ALL lessees in Ocean Grove to boycott the payment of Ground Rent; universally, residential and commercial alike, until the issue is resolved.
The CMA does not have an active enforcement mechanism and this will force the issue much quicker if it is town-wide. The question is whether or not the master leasehold has an escalation clause. If it doesn’t, there is an argument for invalidity of escalation, among other things…
Or you can sit on your porches complacently and wait for your increases to occur…. Better to act now, rather than later.
Editor’s note: This issue has gotten the Chamber out of its rocking chair. The CC is joining together with the HOA. The land lease matter is mostly now about businesses and condos. It currently doesn’t effect the vast majority of homeowners who have enjoyed a $10.50 yearly lease thanks to the CMA honoring its 99 year leases.
Why the HOA is joining now with the CC is unclear. When was the last time the Chamber concerned itself with the problems of homeowners? Once again the Home Groaners are focusing on the wrong side of the tracks. —–PG
The $$ amount of increased ground rent presented at the Carriage Inn closing was ABSURD. All hotel and business owners are up in arms about this—–and rightfully so.
Perhaps on a happy note: if the ground rent is no longer stable between sales, this will significantly lower the value of OG properties, resulting in lower property taxes 🙂
1. Ralph del Campo is negotiating the rent.
2. Case by case basis for as much as they can get. The increases may be substantial.
3. Not homeowners’ leases yet; only commercial leases
4. President OGCMA noncommittal on when and if homeowners will have ground rent changed with new lease.
5. Gag order seems still to be in effect
6. Attorneys are being hired for clarification and protection.
All I know so far, folks are very concerned. Chamber of Commerce is involved.
…Chico is awesome! Loved the picture !