January 6, 2008

Beard Group Expected to be New Owner of VG East

In an email today from Homer Tompkins, President of CPDC explains that Pete Scherer will not be the new owner of the remaining VG East lots in the Single Family Village.  Another developer “The Beard Group” will purchase the lots.  Mr. Tompkins email is reprinted below:

“Mark, the new owner for VG East (26 lots) will be The Baird Group and not Pete Scherer.  The Baird [Beard] Groups offer has been accepted by the Bank and closing is tentatively scheduled for the 7th of February but no exact date has been set.  I am not authorized to represent them as the new owner of these lots but I have taken the liberty to provide them the letter you sent to me with questions in hopes that I could get them to attend any meeting requested prior to closing.  At this point, they are still in their due diligence of their contract.  On Friday, they met with Pat Brinkman, our HOA attorney to gain an understanding of VG’s Master and Single Family Traditional neighborhood HOA and how its run.  I will visit with them on Monday as well as our attorney to make sure we all understand how a new owner of 26 lots is affected by the existing agreements. 


We are proposing to the Baird Group a 60 day turnover transition to help assist them in gaining a full understanding of all responsibilities and on going obligations to the community and the City.  They are excited about owning these lots and are appreciative of the opportunity and very respectful.  I know they have had conversations with several of our existing and previous builders so indications are that they will continue the traditional neighborhood vision that we began.  But I would like to introduce them to the community as soon as possible so everyone can hear from them directly.  In regards to HOA shortfall, I do believe they will help contribute to back due amounts and honor the responsibilities moving forward but they can not be responsible for all shortfall because they are only purchasing 26 lots and should only be held responsible for their pro rata share.  We will need a meeting with them, Len Pratt and ourselves to address the balance of HOA shortfall and commitments moving forward. 


I have no control over the Banks decision on who they sell the lots to that were foreclosed upon.  The bank bids in the debt at the amount owed and then sells the Sheriff Certificate to the new buyer.  Even though there is a redemption period for me and any mortgage/lien holders affected by the foreclosure, it is virtually impossible to believe that anyone will repurchase the lots for the amount bid in at the Sheriff sale, so therefore I believe The Baird Group will become the new owners of these lots.  At this point, we are early in our understanding of their firm but they represent themselves as knowledgeable developers who understand and appreciate the value of Victor Gardens and are excited about being apart of it.  Nothing at this point has raised any red flags and I believe they will continue the vision of housing styles but obviously, they are at a much lower cost point than we were in the lots and could offer the lots for less money if they wanted.  The important thing in my mind is not the price of the lots but the architectural consistency of maintaining values in the neighborhood. “


- Homer Tompkins