Tuesday, December 6, 2011

Vivian Armstrong gets the (one word) facts

From an email received from Vivian Armstrong (posted with permission, although I have rearranged it for easier reading):
Below is a question I posed to Commission O'Connor and his one-word reply:
Bill,

Gary Glancy has reported that the county paid a $5K deposit at execution of the contract to purchase the Highland Lake Golf Course. If that's accurate, does the contract agreement provide that the deposit will be refunded if certain contingencies weren't satisfied?

Thanks,

Vivian
Commissioner O'Connor's answer:
No

Respect and Affection,

Bill O'Connor
Commissioner, District 5
There are seven full-time employees in the county legal department at an average annual cost to the taxpayers of $81,449 EACH. Assuming they were involved in vetting the Highland Lake Golf Course transaction, two questions come to mind:
  1. Why didn't they research land use regulations in Flat Rock before the Contract was signed?
  2. Why wasn't there a provision allowing for the return of the $5K deposit if certain conditions weren't satisfied?
This stuff isn't rocket science!
Posted by at

4 comments:

  1. AnonymousDecember 7, 2011 at 9:45 AM

    Because, they never intended to vacate the option, "It was a Done Deal..." whoops, did these guys show how incompetitent they are?

    ReplyDelete
  2. Keith KennedyDecember 10, 2011 at 3:48 PM

    My understanding was that the $5 thou. was not a deposit - rather it was the purchase price for an option to purchase the land for a stipulated price within a specified time. As the price for an option, it should not be returnable. The county got what it paid for - the right to buy the land. The fact that it chose not to doesn't change the value of the opportunity it purchased.

    ReplyDelete
  3. Anne ColettaDecember 10, 2011 at 10:17 PM

    When all else fails, go back to the actual contract!
    From pages 1 and 2 of the August 26 signed "Option Agreement for Purchase of Real Property":
    1. Definitions
    (ii) "Option fee" shall mean the total sum of Five Thousand Dollars (US$5,000.00)
    2. Exercise of Option. Purchaser may exercise its exclusive right to purchase the Premises pursuant to the Option, at any time during the Option Term, by giving written notice thereof to Seller. In the event the Purchaser does not exercise its exclusive right to purchase the Premises granted by the Option during the Option Term, Seller shall be entitled to retain the Option Fee, and this agreement shall become absolutely null and void and neither party hereto shall have any other liability, obligation or duty hereunder or pursuant to this Agreement."

    So Keith Kennedy is correct that the $5,000 was not a deposit but a fee to hold the property for possible purchase. And Vivian is correct that perhaps the county should have thought about whether or not losing $5,000 was a reasonable chance for the county to take. And I think I'm correct in wondering whether the county considered this possibility or not--it's a reasonable business decision, but of course, it's always easier when it's someone else's money.

    ReplyDelete
  4. JaneDecember 11, 2011 at 11:17 AM

    Go Vivian! They do not represent us. Their behavior is a symptom of the arrogance of power.

    ReplyDelete

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