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.