Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, May 25, 1990 TAG: 9005260465
SECTION: SMITH MOUNTAIN TIMES PAGE: SMT-5 EDITION: BEDFORD/FRANKLIN
SOURCE: DAVID M. POOLE STAFF WRITER
DATELINE: ROCKY MOUNT LENGTH: Medium
Williams, then looking for a site for a retirement home, was assured by a salesman that developer Dave Wilson had posted a $60,000 letter of credit with Franklin County to ensure the roads would be built to state specifications.
"That sounded good to me," Williams recalled.
The letter of credit, however, failed to protect Williams and 39 other people who bought lots in sections 3 and 4 of Stripers Landing.
Wilson filed for bankruptcy in 1985, wiping away his responsibility to complete the roads. The letter of credit should have remained in force despite Wilson's financial woes, but Franklin County apparently allowed it to expire.
The upshot is that the Stripers Landing property owners have impassable roads and no money with which to improve them. No roads means that no bank will lend money to build houses on the lots.
"There isn't a lender around who is going to put out money for their subdivision until the roads are paved," said David Helscher, a Roanoke attorney retained by the property owners association.
Helscher and several Stripers Landing property owners appealed for relief earlier this week to the Franklin County Board of Supervisors. Helscher told the supervisors that property owners bought land from Wilson on the assurance that money had been set aside to complete the roads.
Careful not to assign blame for the expiration of the letter of credit, Helscher said it had been the county's responsibility to make sure the letter was renewed or called in. "They [property owners] depended upon your promises to protect them," Helscher told the supervisors.
County Administrator Richard Huff II acknowledged that he had been the county's subdivision officer, responsible for overseeing road bonds, when the letter of credit expired in 1984 or 1985. "My memory does not serve me to what happened six years ago," Huff said.
The county's records do not show whether the county let the bond "fall through the cracks" or whether Wilson had failed to meet his obligations with the bondholder, Colonial American Bank, which has since been acquired by Crestar. "Our files are incomplete," Huff said, adding the the bank's files also failed to shed any light on the situation.
Road problems are nothing new at Stripers Landing. Wilson also failed to complete roads in sections 5-8. Those property owners finally got roads built to state specifications last year with money from a separate bond Wilson had posted.
Helscher said it would serve the county's best interest to appropriate money for state-maintained roads in the remaining sections. Several property owners are ready to build houses, which will increase the county's tax base, he said. "Both the county and the property owners have something to gain if those roads are paved."
Board Chairman Wayne Angell noted that the county may not have the legal authority to appropriate money that will help only a few dozen property owners.
Helscher replied: "We're asking you to do the right thing."
Angell directed County Attorney Jim Jefferson to meet again with the Stripers Landing property owners to see if an agreement could be reached. Helscher said the group was not eager to sue the county, but it left that option open.
Retiree Chester Williams said the Stripers Landing roads already were costing the county tax revenues. Williams' tax assessment on his waterfront lot was lowered from $35,800 to $26,900 because of the poor roads.
"You'll get your money back," Williams said. "If Franklin County has any responsibility, I would certainly like to see you somehow get involved and rectify the situation."
Several other property owners who spoke at Monday's meeting complained that Wilson did nothing to improve the roads yet has continued to collect annual $60 fees for the subdivision's water system.
In fact, Wilson has taken several Stripers Landing property owners to court because of alleged late payment of the fees. A hearing is scheduled for June 15 in Franklin County General District Court.
by CNB