Queen’s Gap Phase 3 Lot #299 pivotal to sale of county properties

County cannot execute sale contract without it

Queen's Gap PosterRUTHERFORDTON- The recent approval of a contract to sell 100 lots at Queen’s Gap owned by the county for $350,000 has several conditions attached to it.

Piper Investments LLC registered in the state of Georgia has made the offer to purchase based on the foreclosure by the county of lots #277 (Kevin Shanahan), and #284 (Stuart Knight), which is currently in process, and the acquisition of lot #299 (Peter and Amie Hatlovic), along with the acquisition of the roads and cemetery parcels still deeded to D.F. McCarthy Investments.

Piper Investments LLC, a limited liability corporation, does not identify the principals associated with the Queen’s Gap purchase.

Lot #299 in the Queen’s Gap development’s Phase 3 belongs to the Hatlovics of Ohio. In April of 2008 the Hatlovics paid $497,000 for their 3/4 acre lot in the newly started development. This price included access to all the amenities and enjoyment of the covenants promised by the developer. They have maintained their ties to the property and have paid all taxes and applicable fees due.

Keith Vinson
Queen’s Gap Developer Keith Vinson

The devaluation of this property since the recession and the personal and financial downfall of the developer of Queen’s Gap Keith Vinson has left the Hatlovics’ half a million dollar property currently valued at $11, 800. Even with this devastating development they held on to their property.

One of the conditions of the sale contract is that all homeowners will vote to remove the Declaration of the Queen’s Gap Subdivision. The dissolution of a subdivision removes the original covenants and legal obligations of the subdivision that may include the streets, amenities and plat divisions. The Hatlovics as property owners may see additional devaluation of their property.

According to the Hatlovics, Piper Investments LLC and the county entered into this real estate contract without contacting them concerning the sale of their property which is critical to the final closing of the contract. When the county was contacted, they stated they had not talked to the Hatlovics about the property as it was a matter between them and the buyer.

queens gap logoThe Queen’s Gap property county ownership is due in part to foreclosures and the failure of the developer’s company. In October 2012, Rutherford County received a settlement from Lexon Insurance Company that ended a claim against Devinshire Land Development, LLC for its alleged breach of contract for development of the Queens Gap subdivision. Under the terms of the settlement, the county was to receive $12.1 million from performance bonds issued by Lexon on behalf of Devinshire to finish infrastructure work at the development site, located off of U.S. 64/74 near Lake Lure.

The settlement included both Phase I and Phase II of the Queens Gap development. Under the settlement resolution approved by the former county commissioners, a trial date regarding Phase III bonds was postponed to determine if there is a potential settlement for that phase and whether the resolution for Phase I and Phase II  affected the county’s claims to Phase III.

The roads, right of ways, and cemetery plots of Phase 3 of the Queen’s Gap property are still deeded to D. F. McCarthy Investments. Currently the county has hired David Odom’s engineering firm  Odom and Associates to manage the road construction and inspections of the two initial phases of the project.

While Rutherford County will receive approximately $30,000 while the potential purchasers perform their due diligence on this property, the questions of defunct developer Keith Vinson trial outcome, road rights of way and roads ownership, and lack of communication with a fully vested property owner bring questions as to the identity of the buyer the county commissioners agreed to accommodate.