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Bankruptcy Looms Over Live Oak Preserve

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By KENNETH KNIGHT

kknight@tampatrib.com

Published: April 1, 2009

NEW TAMPA - Bankrupt TOUSA, the parent company of the home builder that developed Live Oak Preserve, is wrapping up all of its construction projects, selling off its inventory of homes and not planning to build any new ones.

The South Florida-based developer, which filed for bankruptcy protection in 2008, released a statement last week that said it is in the process of winding down operations. The company also plans to lay off 200 of its remaining 700 employees.

TOUSA subsidiary Engle Homes is the primary developer of Live Oak Preserve, and its neighboring town house community, The Hammocks.

The move by TOUSA is frightening to Live Oak Preserve homeowner Zuriel Cabrera, who worries he and his neighbors may get stuck paying the bills alone if Engle shuts down. Cabrera said Engle contributed more than $800,000 to the community's $3.2 million operating budget in 2008.

"This is a grave, grave situation," Cabrera said.

The community may have to make some unwanted service cuts if Engle is no longer in the picture, he said.

He cited a 15-year cable agreement with Bright House Networks as a major reason for concern. The cable company is required to provide cable, Internet and home security monitoring services to as many as 1,590 homes. The community must pay for the services, regardless of whether the houses are occupied.

The master homeowners association budgeted $1.14 million for this year's annual bulk cable contract.

"I am very fearful the cable agreement is going to push us into the red if Engle stops contributing to the deficit funding," Cabrera said.

Cabrera, who is president of the Weatherwood Village association, said he plans to contact representatives from the neighboring associations to schedule a meeting to discuss the matter.

Engle Homes Vice President Rick Feather, who also serves as the master association president and a supervisor on the three community development district boards, said last week his company remains in charge of Live Oak Preserve and The Hammocks for now.

"For the time being, we are still in control, after that, it will be up to the courts," he said.

Reporter Kenneth Knight can be reached at (813) 865-4842.

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