SSA Questions & Answers

SSA Rumor # 7: The Neumann Homes bankruptcy at the Meadows of West Bay (MOWB) is going to increase the cost of lake restoration to the rest of us.

SSA Fact # 7: All calculations for the proposed SSA are based upon the current (2007) land use / Equalized Assessed Value of the Meadows of West Bay, and not the “built–out” or projected Equalized Assessed Value (EAV). To date, only 38 out of 581 proposed Meadows of West Bay residences have been completed. At the time it filed bankruptcy in Fall 2007, Neumann Homes apparently owned only 104 of the platted lots in the Meadows of West Bay. 

Neumann Homes Parcels - Meadows of West Bay

Of the 104 Neumann owned lots, 24 lots are improved (houses completed or under construction, but not yet sold by Neumann).  The 24 improved properties have a 2007 Equalized Assessed Value of $1,822,811.  The 80 undeveloped lots owned by Neumann Homes have a 2007 EAV of $ 924,384.  

Therefore, the total Equalized Assessed Value for all 104 Neumann Homes properties is $ 2,747,195.  The EAV that is assigned to the Neumann Homes lots represents only 1.3 % of the total EAV for all properties included in the proposed SSA. 

Even in bankruptcy, and under an SSA, these 104 Neumann parcels will continue to be taxed and if unpaid, the County will place the properties into a delinquent tax sale.  The taxes will continue to be paid, either by Neumann Homes, or whoever purchases and pays the taxes through the sale administered by McHenry County.

Other Parcels - Meadows of West Bay

Of the remaining Meadows of West Bay parcels, Lo-Land Assets owns an additional 178 undeveloped lots.  The 2007 equalized assed value of these properties is $ 466,835.

There are also 14 developed MOWB properties that are privately owned (Neumann built homes sold to purchasers).  The 2007 equalized assessed value of these properties is $ 1,195,585.

These properties that are not owned by Neumann Homes will continue to be assessed, and are not involved in the bankruptcy proceedings.  The EAV on these properties is $ 1,662,420.

In summary, the total 2007 EAV of all the properties that comprise the Meadows of West Bay is $ 4,409,615.  This represents only 2% of the total $ 210,000,000 EAV of all properties within the proposed SSA.