Queen’s Gap Phase 3 Purchase Proposal

Multiple "conditions" listed in contract

Queen's Gap signRUTHERFORDTON- Last month Rutherford County Commissioner’s accepted a bid on 100 lots at Queen’s Gap for $350,000 from Piper, LLC with “conditions”.

These conditions were as follows:

1) Buyer (Piper LLC) will obtain Phase 3 roads and cemetery parcel with the help of D.F. McCarthy Investments XVIII, LLC to foreclose on Phase 3 roadways and the cemetery plot.

The buyer shall reimburse the county for all their expenses incurred in the foreclosure. The county will bid on the foreclosed property at the foreclosure sale. The buyer has agreed to pay no more than $50,000 to the county for the property regardless of what the county must pay for it. The county then plans to sell the property to Piper LLC for no more than $50,000.

If this sell falls through the county could possibly incur up to an additional $50,000 or more expense on the Queen’s Gap development that is not covered by “bond” money. The deposit of $30,000 by the buyer still could potentially leave the county $20,000+ in the red at the taxpayers’ expense.

2) Buyer (Piper LLC) will acquire Queen’s Gap Phase 3 lots #277 and #284.

The county must issue a tax foreclosure on these two lots and then sell them to Piper LLC. If the owners of these lots pay their taxes to the county or files bankruptcy, then the buyer (Piper LLC) must make their own arrangements to buy the lots.

3) Buyer (Piper LLC) will acquire Queen’s Gap Phase 3 lot #299.

This lot is owned by P.D. and Amie Hatlovic of Cleveland, Ohio who were planning to build a 9,000 square foot home on it as it would have sat between three holes on the 18 hole golf course originally planned there.  The golf course currently has 14 of the 18 holes already completed in Queen’s Gap Phase 3 per Hatlovic.

As of the date of this article Mr. Hatlovic stated that “no one has contacted him in any way about the purchase of his lot.”

4) The Queen’s Gap Phase 3 property will be removed from the Declarations of the Queen’s Gap Subdivision.

The county will propose an amendment for removal and present it at the Queen’s Gap Homeowners Association meeting. The county must vote in favor of the amendment and the contract says that the county will encourage other members to vote in favor of the amendment.

This brings up the question of a government body possibly attempting to unduly influence a contract in favor of a private entity.

The buyer (Piper LLC) and seller (the county) has up to twelve months to meet the conditions of the contract. If conditions are not met by either party the county will keep the $30,000 deposit by the buyer.

The actual people behind Piper LLC are not listed and the county will not disclose their names. The contact listed on the contract is David Hansen of Shumaker, Loop and Kendrick, LLP located in Charlotte, NC.

County Seal March 2015This contract is on the agenda of the County Commissioners regularly scheduled meeting for Monday August 4th. If you would like to see the agenda click here.

As always if there are any public comments on this or any other county matters they can be presented at the beginning of the meeting with a 5 minute time limit. Please sign up for public comments on arrival to the meeting. The meeting begins at 6 p.m. at the annex in Rutherfordton.