Edgar, a local investor, e-mailed me three questions that local media outlets ought to be asking about Biscuit Run:
- Did the original Biscuit Run owners get paid in full?
- Did Hunter ever really sign a deal with Ryan Homes, or was that just talk to sell shares?
- Does the bank involved—at least the one bank that has been identified—have a lien on the property for the loan, and if so, how can someone “donate” land to the state if a lien is on it, unless the state or Hunter or someone has made some collateral guarantee to the bank?
I’m not smart enough to know how to get answers to these questions, but here’s hoping that somebody does. There might be a story here.
My guesses:
1. No. It was said many times “investors were not made whole and lost money.”
2. No idea.
3. The bank would have had to have been at the negotiating table and involved in whatever deal was made. Pretty sure the lien would trump ‘land donation’.
1) Gman: “It was said many times ‘investors were not made whole and lost money.'”
The original owners wouldn’t be investors, investors are the people who put up money to buy the land. The original owners would have to be paid in full, otherwise they could rescind the sale.
3) There may not have been a bank involved – see #1. Private investors wouldn’t have a lien on the property.
I would think that the original owners were paid in full at the time of the purchase unless they chose to become investors or “owner financed” a portion of the sale. If they chose to do that they took a risk in order to make even more money and probably would not be “made whole” by this transaction.
According to the hook article
“… and an estimated carrying cost of more than $300,000 per month— Forest Lodge seemed to be running out of money back in November when Bluefield-based First Community Bank told shareholders a $34 million loan was in “early stage delinquency.”
So with $46.2 million price tag, it looks like Forest Lodge LLC raised about 12 million from investors, or in other words put about 26% down.
By “original owners” I assume “the Breeden Family […]have kept a chunk of land for themselves to continue to live on” are who is meant?
I can’t imagine why they wouldn’t have been paid in full. But I guess it’s a good setting the foundation type of question.
I’d love to know the answers to questions 2 and 3. But based on the local media’s past track record the only news outlet I would expect to attempt to find those answers is “The Hook.”
It’s a tribute to this great country that Virginia’s poorest and most undeserving are on an even playing field with our wealthiest and most honorable, so far as eligibility to buy tax credits.
Wow what lucidity. Thanks so much for all the speculation, conjecture, and assumptions in response to the request for answers. ~sheesh~