2012 is the year of Palermo

2012 - or five years after the first souls moved into Palermo - appears ready to go down as the year of the great Palermo turn-around. The economy helped pull the rug from under many developments in Palm Springs. The adjacent Avalon residential and golf course development sits abandoned. At Palermo, home prices are going up for the first time ever, after years of falling, with real estate agents say the prices are still under-valued compared to similar modern-stytle developments such as 48@Racquet Club. They expect prices to continue to rise here, we are told. The HOA board is in settlement talks with the bank that owns the 30-something former condos that the Enterprise Cos. never sold. If a deal is reached, it will mean a large infusion of money into Palermo's HOA accounts over certain unpaid back expenses and other issues. A buyer could also take over those units later this year. Full-time owners became a majority of the HOA board this year and instituted major operational and management changes, winning praises and a recent overwhelming vote of confidence by owners. 2012 is the year of Palermo. Miss Penny Lane says: She loves sunny days.

Trump takes on Palm Springs wind power

The morning newspaper has this story: "Don’t count Donald Trump among fans of wind power. On Monday, the developer and “Apprentice” host went on the record — Twitter — with his thoughts about the wind turbines that line the roads leading to Palm Springs. “Ugly wind turbines have destroyed the entrance to Palm Springs, CA," he tweeted, “These monstrosities are ruining landscapes all over the globe—expensive; bad electric." And he meant it. In a follow-up interview with The Desert Sun, Trump confirmed his anti-wind power stance. “[It’s] like driving into a sad person’s version of Disneyland,” he said. “And of course [the turbines] kill all the birds in the area. A friend of mine said that an area that used to be so beautiful is now strewn with rusting hulks." The reaction to Trump’s tweet was swift — both on Twitter and in the Coachella Valley. “Tell him to look again at night. Also, tell him that only HE can afford the huge power bills we would have without them,” wrote David Ross on Facebook. “There are many uglier things that could be there.” Fred Bell of Noble & Company, a renewable energy firm based in Palm Desert, says he respects Trump’s business acumen, but disagrees with his comments. “We have two resources here in Palm Springs,” said Bell. “Wind and tremendous solar resources. Both are unequalled anywhere else in the United States. To not harvest those in a responsible manner and take advantage of the low cost of power would be irresponsible to the environment.” Miss Penny Lane says: Shes ready for the cool winds to blow in.

Signs come down at old Julian Market building

There's been some activity at the former Julian Market site on Indian Canyon and San Rafael, with crews cleaning up the lot and taking all the signage down for the market and car repair shop. Miss Penny Lane says: She's ready for a coffee shop to open once the College of the Desert arrives.

Wind-blown tree

The winds that swept through the valley tried to blow down this tree on Quiet Side. Miss Penny Lane says: Sometimes she feels a bit like that, too.

NEWS FLASH: All HOA board officers are re-elected in landslide vote rebuking the recall's takeover attempt

This just in from the HOA meeting tonight: In a rebuke of the attempt to oust the Palermo HOA board officers, the association president, vice president, secretary and treasurer all were returned to office in a landslide vote by owners, with not a single officer removed from their position. Homeowners give a vote of confidence to the board leadership and to the HOA's direction, and reject the recall's goals to takeover the HOA board. A clear "mandate" exists it appears. Miss Penny Lane says: Thanks to all who ran and give their time.

NEW INFORMATION: A total of about 450 votes were cast for 10 candidates. The top three vote-getters (the HOA president, secretary and treasurer) received nearly 300 of them (actually 288 votes). With not many votes left and the remaining seven candidates vying for the rest of the votes, some of the recall people received in the single digits. The candidate of the rental company received 15 votes. Thanks for the info.

UPDATE: We have learned more. It was reported that a festive, friendly atmosphere existed in the clubhouse as owners and renters gathered to support the board, demonstrating that the Palermo spirit is alive and well. Some of the so-called "recall candidates" did not show up for the meeting.

Palermo forward

Positively Palermo received this submission: "Hi Penny Lane. I took an image off the Internet and made this with it, all for you. Thought it might have some double meaning, with all the stuff going on with your board and how people want to move forward with them. Thanks for your work. You are a reason we rented at Palermo." Miss Penny Lane says: Her middle name is Hope, but how did you know?

Recall meeting is Monday evening

Tomorrow evening is when recall will come to an end. Meeting will be in the Palermo clubhouse. Miss Penny Lane says: Good luck to the candidates, and to Palermo.

Concrete decision to remove nuisance dumpsters

A week into being a "dumpsters free" community, all appears well at Palermo Palm Springs. Gone are the days seen in the picture above. The dumpster area walls have gone tumbling down and are history as well. Miss Penny Lane says: She's ready for a weekend of fun at the pool. Give her a wave when you see her there.

Trash and recycling pick-up today

Reminder that today is the trash and recycling pick-up day - delayed one day from Thursday due to the Labor Day holiday. Miss Penny Lane says: She's ready for the weekend.

Memory Lane: Remembering the Sales Center signs

Going down Memory Lane: Remember the sales signs on Indian Canyon Drive? They came down in May 2010, a year after the sales office closed, but only after residents took up the cause themselves to get them down. Miss Penny Lane says: She's seeing lots of signs of progress at Palermo these days.

Trash day is today

Remember it's trash day today, delayed one day because of Labor Day. Miss Penny Lane says: She's ready for her short week.

Salton Sea smell lingers

Positively Palermo notes that the foul odor from the Salton Sea is back in the air in the city. Miss Penny Lane says: She was away for the long weekend and missed Palm Springs, smell and all.

Happy Labor Day, Palermo

Positively Palermo wishes all a happy and safe Labor Day weekend. Miss Penny Lane says: She's all worked up over three days to rest.

What led up to the bank taking over the Enterprise units

Positively Palermo was asked to provide a history of what led up to a bank taking control of 34 condos at Palermo Palm Springs in 2010. Here is a timeline:

May 5, 2010: The developer misses a payment on the Palermo loan.

July 14, 2010: "Notice of Default" served on PS Venture Indian Canyon/San Rafael LLC. This is the Palermo LLC of the Enterprise. It owes $13,450,378.36 on a $30 million loan. The document states: "No sale date may be set until three months from the date of this notice of default may be recorded." That would be Oct. 14, 2010.

July 19, 2010: Five days after the serving of the "Notice of Default," Palermo residents first learn of Enterprise's troubles. Two Enterprise executives on the board — HOA President Ron Shipka Jr. and HOA Treasurer Gordon Camaresi — resign from the HOA board. They say in an e-mail that they "expect to lose interest in the property in the next 30 days."

Aug. 18, 2010: Crain's Chicago Business publishes an article titled, "Shipka sued over personal loan guarantees." The story by Thomas A. Corfman states that Ronald Shipka Sr. is being sued by MB Financial to collect $4.7 million on loans for two Palm Springs housing developments. The article reports: "In the larger of the two cases, MB Financial is seeking to collect $3.1 from Mr. Shipka, who guaranteed a portion of a construction loan used to build a townhouse project ... Called Palermo, only 117 of the proposed 211 units were completed, according to a Web site for residents of the development."

Oct. 14, 2010: The three-month period from the July 14 posting of the "Notice of Default."

Oct. 21, 2010: Crain's Chicago Business reports on more lawsuits against Ron Shipka Sr. One lawsuit concerns the nearby Murano Palm Springs development that Enterprise California also was building. The article states: "Combined with two cases filed in August, the Chicago-based bank is aiming to collect $7 million."

Nov. 9, 2010: The front doors of the 34 units owned by Enterprise are posted with a "Notice of Unified Trustee's Sale." The documents state an auction may be held on Nov. 30 in Corona.

Nov. 30, 2010: Group auction of the 34 condo is delayed until Dec. 13 to give time for a "settlement conference the parties are organizing."

Dec. 13, 2010: The bank auction of the 34 units is called off once again. Bank eventually moves the units in the LLC it owns.

Miss Penny Lane says: It all seems like ancient history to her.

What's that smell?

Positively Palermo has received a question about the strange smell outside at Palermo and elsewhere in Palm Springs. Any ideas? Miss Penny Lane says: She's indoors these anyway.

'Happy pappy' at Palermo

Positively Palermo received this e-mail: "Hi Penny. First of all, love your informative blog. Second of all, must write to say life is pretty good at Palermo these days with the landscaping looking fab and pool nice and clean, no parking in the streets. The management changes has paid off in spades I say. I am a happy pappy. Peace." Miss Penny Lane: She's happy too these days because the triple digits give her an excuse for more DQ runs.

Melody mishap?

Positively Palermo received this question: "Hi. Does anyone know why the No Parking sign on Melody Lane was knocked over and there were black marks over the payment ....?" Miss Penny Lane says: She's signing the praises of Palermo these days.

Model question

Positively Palermo received this question: "Hello, Ms. Penney, I saw much activity (cars, people) at the model units today. Is anything going on, anyone know? Thanks." Miss Penny Lane says: She'd like answers too.

Lost ipad

Signs are up in the community about an iPad lost at the front pool. Info to return it if found is on the signs, or post here. Miss Penny Lane says: Her favoriie tablet still is of the pen and paper variety.

Pet food needed

Positively Palermo received two different e-mails on this. The first one: "Hello Penny, I haven't been in contact for awhile...hope all is well. Save-A-Pet in DHS was vandalized and all dog and cat food was stolen on Saturday. This compounds an already awful situation at this shelter as it depends on 100% donations to keep it open. There are over 100 dogs and approx. 150 cats that are at this shelter.  So, was wondering if you could post this on Positively...and if anyone cares to donate food, they simply need to drop it at my doorstep - 3545 Sunburst - and I'll make sure they receive it. Thanks Penny!" The second one: "I heard on the news this morning that someone robbed the Save-A-Pet or all its pet food in Desert Hot Springs.  They only have enough food to last threw tomorrow.  So I am sure they would appreciate any help from our community." Miss Penny Lane says: Please help if you can.

Sale prices, rents going up up up with the Palermo turnaround

Of the many improvements witnessed at Palermo Palm Springs has been home and rental prices. A wave of short sales and foreclosure brought down prices for two-bedroom town homes to the mid and even lower $100,000s. According to our emails and "intell" from real estate sources, we think a few more short sales and foreclosures will hit this year still. But we have learned that the first non-distressed homes on the market and have offers in the low to high $200,000s — which represent huge increases if they go through. It will be interesting if these go through how this will have an impact when the banks take control of the expected few forecloses to come and set prices. On the rental side, units are snapped up quickly and prices have a record of steadily going up. At one point, two-bedroom units were going for less than $1,000 but now are anywhere between $1,200 and $1,450. There rarely are empty units, although with the slow season of summer, and unusual situation in which all month-to-month tenants of all the 34 bank-owned former Enterprise units were made to sign long-term leases or leave, there is a unit or two available. We are told that the macro factors for the big improvements include the overall economy and the Palm Springs real estate market and inventory shortage. The micro factors include the buzz in the community about the change in the Palermo management situation, resolution of the bank-owned situation for the old Enterprise units and vacant land, a settlement from the bank that will give the HOA the ownership to the clubhouse and pool and a financial settlement for reserves and operating costs, and general "feeling" of the community, including not having vehicles parked in fire lanes and beautiful grounds and pools. Miss Penny Lane says: She's been waiting for these days for a long time. Life is good for the jolly crew of good spirits at Palermo.

Palm Springs Marilyn

Positively Palermo wishes Marilyn Monroe a happy birthday, Palm Springs-style. Miss Penny Lane says: She'll be at the Village Fest this Thursday so please wave hello.

More dumpster blues

Positively Palermo received this comment and picture: "Miss Penny, Thanks for you good works. If you need more reasons to get rid of those pest-attracting dumpster-bins here is snapshot of one this a.m. A new resident on Penny Lane just merrily put all these oversize boxes here (ever here of recycling??) where they will stay for weeks now since they are (not)  in the dumpster-bins. When we people move in are they told the rules of the community? I'd like to know. Yes, I know there is a sign on the dumpster-bin walls too! Thanks." Miss Penny Lane says: She's boxed in how to respond.