Edenmoor: For Those Who Want the Details

Transcript of Mick Mulvaney's Comments 
to Lancaster County Council 
September 27, 2004:

Mick Mulvaney:  Mr. Chairman, there’s a couple of other items Mr. Ey asked me to speak to if that would be appropriate.  Given the fact that we’re coming to you folks next week for the sixth of the nine readings for our special improvement district, I thought it would be appropriate at this time to bring you folks up to speed with what’s happening with that district.  The permits were finally issued by the Federal Emergency Management Association , er Agency, to allow us to cross Delaney Creek.  It took us about a year and a half to get that approval.  We received that permit about 60 days ago.  We have made application to DHEC for an erosion control permit, which is the last non-county approval that think that we need before we can start.  We expect that approval this week.  They told us we would have it by the end of this month, so at that point we’ll be coming down to the County and asking for permission to start.  We owe Mr. Karress a detail of what we propose to do as far as buffers on 521 and once we receive that, we’re free to start.  We’d like to start the development of this in November of this year.  Um, as Mr. Ey mentioned, we are also moving forward on a special tax district.  I delivered to Mr. Hurst this evening our, uh, written consent to the establishment of that district and ask you folks to take that up next week on the first reading.  At the same time you’re having 6th reading on the creation of our special improvement district. 

We are big fans of this project.  We think that this is one of those government programs that actually makes sense.  Our analysis indicates that what y’all have come up with is a program that is going to cost the people $75 a year but may save them considerably more than that in lower, uh, fire insurance premiums so we are eager to see that system put into place.  We have some concerns about the implementation.  One of the concerns would be that, uh, the first time a person moves in, is that system going to be in place for that first person or do we need to wait for a bunch of people to get on line so that there’s enough $75's — I know Mr. Hurst is working on that so we’re eager to see that system put in place and I urge you folks to move quickly on that because it will be a benefit to the folks who live there. 

Uh . . . we’ve also, uh . .  understand that we’ve come to, uh, a final agreement with y’all on what the civic use would be.  You remember we’ve talked variously over the course of the last two years about a library and possible fire station.  Looks like those needs will be met elsewhere with other developments.  And our understanding now is that the County is asking us, uh,  – at no cost to the County – to install a state of the art soccer and softball facility, uh, at St. Katherine with all the improvements. Also EMS station with room for a police substation.  And if there’s money left over, which Mr. Hurst believes there is, given the cost of those projects, um, buying equipment for either the EMS station or possibly the fire station in Indian Land, so that is going to be part of our written proposal going forward starting with, I believe, the 7th reading on the special improvement district.

Um, you folks are going to hear some more in the next couple of weeks about our partner on this project.  About three months ago, we started looking for partners.  We looked to 2 or 3 of the largest homebuilders in the country and then also 2 or 3 private developers.  We have found, uh, we received, uh, interest and offers from 5 groups. . . and we screened those 5 groups and have settled on one. Uh, from now on, when you start seeing me coming down here, you will see me coming down here with a a partner, uh, who is going to be in charge of this development.  They are going to buy this piece of property from us, and they are going to hire us back to do the actual dirt moving development on that.  Um.  I didn’t want you folks to find out about that in a round about sort of way.  And I also wanted you to know about it because I didn’t want to spring it on you later on in the special, uh, in the special improvement district process.

The process takes 9 votes.  Ya’ll have given us 5.  We are asking for the 6th, as Mr. Ey says, next Monday.  Um, you always have until 9th to end the process if you decide not to go forward.

While these folks are. . . uh. . we’re not ready to have you t- t- t- to meet with these folks publicly yet because we’re at a very early stage in our negotiations, but I assure you, you will have ample opportunity to meet with them, uh, and get comfortable with them as our partner in this project going forward before we ask you for final approval of the - of the special assessment district.

We are 100% confident in their abilities given their track record.  We look forward to introducing them to you in the near future. 

Um.  Next week’s reading then is on the special tax district - the first reading of that, uh, district and the 6th of 9th readings on the special assessment district, or the special improvement district.  Mr. Ey tells me.  He told me the same things he tells you, which is the special assessment needs to go forward next week or else we go all the back to the beginning on the bond, which causes us all sorts of pain and consternation after waiting 3 years now to start this project.

Do you gentlemen have any questions about the project as we go through.  I know that was a bunch of information to throw at you at one time.  Better to do it now –

Councilman Jack Estridge: I’ve got one.  In reference to what Mr. Smith and Mr. Thomas was discussing — on Sun City .  Your bond issue and special tax district will be very similar, won’t it?

Mick Mulvaney: There’s two separate things you’ve just described the special tax district is one.  The bond is another, but the answer to both of your questions is –

Councilman Jack Estridge:
My question is – and they seem to disagree on some things – who is going to pay for the infrastructure?

Mick Mulvaney: The future homeowners. 

Councilman Jack Estridge: Not . . . It won’t be a burden on the taxpayers of Lancaster County?

Mick Mulvaney:
  Thats 100% correct.  That’s the advantage of this program.  The people who are buying the houses there will pay the additional level of tax that is used to fund those bonds – all the County does is administer the – property tax bills for which the county gets a fee.  I don’t know who raised tho issue earlier about the special tax district, but on the bond, the county does receive a fee for that district.

Councilman Jack Estridge: Thirty, uh Thirty Million Dollars. Is that what you’re –

Mick Mulvaney: Up to . . . up to that amount is what y’all approved on the first five readings.  Uh, it can’t go above that.  It can go below that.  And again you’re talking about the bond and not the Special tax district.  The special tax district is the $75 per years that’s going to go to fire and EMS, which is a separate issue. 

Councilman Jack Estridge: It’s somewhere between a windfall and a, uh – St. Katherine’s or Sun City, I don’t see where it would be a burden on the taxpayers.

Mick Mulvaney:
I consider the bond to be a windfall because it’s something for nothing for the County.  The county gets, uh, at . . at . . Sun City I think they’re doing the fire station?  The library over there?  Library.  And that we’re doing the EMS station now and the . . .and the . . and the park.  The athletic fields.  That all comes at no cost to the County 

Councilman Fred Thomas: Mr. Chairman, and Mr. Estridge, and and uh, you, Mick –  

Mick Mulvaney: Yes Sir Mr. Thomas –

Councilman Fred Thomas: Mulvaney –

Mick Mulvaney:  Yeah. Go ask me a -- 

Councilman Fred Thomas: Perhaps we’re getting involved in semantics here, but this term “windfall” turns my stomach –
Mick Mulvaney:  Eh –

Councilman Fred Thomas:  How about it’s advantageous to the County?

Mick Mulvaney: Eh – I’ve come – I’ve told– I’ve been doing – I’ve been, uh, I’ve been preaching this bond now for three years and I will tell you the same thing I told the folks three years ago before you on Council, which is it’s one of those win-win scenarios.  It helps the developer, it helps the home owner, it helps the County.  The County gets this for nothing.  Whether or not you want to call that a good deal, a windfall, I’ll leave it up to you gentlemen.  I think it’s a good deal for the County. 

Council Chair Rudy Carter: Mr. Thomas, if I may add.  And this question was raised during public hearing just a moment ago about the administering of the, uh, bond.  If Lancaster County incurs a ream of paper, the bond wouldn’t pay for it.  Lancaster County doesn’t pay for a DIME. I mean nothing from the taxpayers’ pocket. 

Councilman Fred Thomas:  As well we shouldn’t!

Council Chair Rudy Carter: As well we shouldn’t and you’re right –

Councilman Fred Thomas: And Mr Estridge, I think your constituents are going to be appreciative of the fact that we are posturing ourselves as a County finally to take advantage of some of the growth that’s coming into Lancaster County as opposed to having  – or getting shafted by growth. 

Councilman Jack Estridge: And what they’re doing and what Sun City’s doing is a whole lot better than what we’ve done in the past.

Mick Mulvaney: We’ve needed a library, fire station, EMS station, and ball fields here for a long time and we didn’t have any money to pay for it and now we’ve found a way to pay for it that doesn’t cost the taxpayers anything. 

Councilman Fred Thomas: And it’s going to be good for the new residents moving in and it’s going to be good for te residents here right now because they’re going to have access to lots more programs and it’s going to be good for everybody South of Highway 75 and South of Highway 5 because we are not going ot have to fund as much as we would have had we not gone this route.  Is that true or false?

Mick Mulvaney: That, I believe that to be a true statement.  I believe that to be the reason behind the legislature approving the bond structure. 

Councilman Stanley Smith: –

Mick Mulvaney: Well, I’m not going to get between you and Mr. Thomas on this, Mr. Smith.

Councilman Jack Estridge: That would be a bad place to get.

Councilman Stanley Smith: Now we do know that business brings more taxes and industrial and commercial-type property.  Now, taxes is the thing.  But now also, even without going to the tax records, you can turn around and look and say the per student cost in Indian Land is high.  Six thousand, five hundred dollars per student.  But if your total amt is around $9M for 1800 students for high school K-12.  Take into consideration it’s only $9M and you turn around and say 60% of that comes from the state, that doesn’t leave you very much. And I’m talking about today.  If there was 3,000 houses in Del Webb and about taxes today for what goes into the school today and that’s why I say I disagree about .  I think it’s a win-win like you said.  The program we’re doing today is serving much better because there is more money.  And that’s why I call it a windfall.  Because any time that your taxes in a certain area becomes obvious is a lot more than what’s going to be spent in that area, — -and it’s at this level here, so you’re actually taking away from the panhandle  – that’s why this is great because — any time you start talking about taxes and about houses and the value that the property is assessed at, you need to do the numbers before you start saying that that part of the County is paying for — the park in Indian Land.

Council Chair Rudy Carter: Any other questions?

Councilman Fred Thomas: Mr. Mulvaney, I share your concerns with any all that’s taking place with St Katherine’s.  We all do, but I um, I hope to have an opportunity to meet your, um, you new . . . partners?  Um.  Individually.  I would also like.  I think it’s only fair to us all that um that in the interest of openness and open government. . . that before it becomes last reading on the last night, your partner needs to come and present to us.  And not us in Special Session.  But to Lancaster County.

Mick Mulvaney: I fully expect to do that Mr. Thomas.  We um we had hoped to do it tonight, but we were very early on and just didn’t feel it was appropriate yet, but that will happen long before the 9th of the nine readings.

Councilman Fred Thomas: And I think that it is important if you could at least pass on to him that you have made an investment in the County, not only of buying property to um build homes on, or to develop, but also having bought property and moved your family here.  Um, that to me, made you one of us.

Mick Mulvaney: Not one of the North Carolinians who moves down here to sleep?

Councilman Fred Thomas: Um, right.  And I understand and don’t expect him to move here from his home.  And we would like to hear him say some of the wonderful things that you said and we would also like for him not only to say them, but share in some of the philosophies that you have.

Mick Mulvaney: I - I - I appreciate that Mr. Thomas.  And I can tell you than when we had – like I said, we had 5 groups to approach us about participating in this project and I was in charge of picking the one person who was going to be our partner going forward and our first question was could we count on somebody to do a development that would allow me to come down here and show my face.  And we went with these people because we were absolutely sure of their ability to do that.  So, I look forwrad to bringing them down at a future date.  But that won’t happen before the 6th reading.  And again, the 6th reading, which is next Monday, is time-sensitive.  So again, I wanted you folks to know about this before you did the reading, but I’d like you - if you can - to please proceed in a timely fashion because we don’t want to start from scratch again.

Council Chair Rudy Carter: Thank you Mr. Mulvaney.     

Edenmoor / St Katherine Timeline
9-15-99    Mick Mulvaney’s parents's company, K&J Properties – bought the first 178 acres from Roy C. Walker for $4,000 per acre (Lancaster County Tax Map 0015-00-011.00)

6-4-01        St Katherine Properties, LLC was created

1-11-02    Mulvaney Properties of Lancaster, LLC (of which Mick Mulvaney owned a 100% interest) closed on 291.24 acres from Wedgewood Properties (also owned by Mulvaney) and a 56.37 acres from the Mason Estate

1-11-02    Mulvaney Properties of Lancaster, LLC obtained a mortgage in the amount of $2 Million with Wachovia Bank (this mortgage was extended to $2.51M on 8-28-03)

6-3-02        First Reading of St Katherine’s PDD – Passed Unanimously – Ordinance 504
        *    Owners Listed as Mulvaney Properties of Lancaster LLC
        *    Here’s the Rezoning and Density info Mick Mulvaney gave:
            Commercial: 41.4 acres (including a 200-room hotel
            Business Park: 32.5 acres
            Town Center: 25.4 acres (including 200 apartments)
            Low Density Residential: 267.9 acres:1072 dwelling units (4 du/acre)
            Medium Density Residential: 68.3 acres: 820 dwelling units (12 du/acre)
            Rural Residential: 140.5 acres: 211 dwelling units (1.5 du/acre)
            Common Open Space and Parks: 250.8 acres (the park will be 40 acres)
6-17-02    Second Reading of St Katherine’s PDD – Passed 6-0 – Rudy Carter Absent – Ordinance 504

7-28-02    Third Reading of St Katherine’s PDD – Passed – Ordinance 504

9-20-02    Charlotte Business Journal Reports: “Mulvaney plan will blend uses over 803 acres” by Jennifer Boyd Sidden
        *    Development calls for: 2,300 for-sale homes, 250 apartments and a 200 room hotel, 32-acre business park, 25-acre town center, 41 acres of dense commercial buildings and 227 acres of open space, according to Mick Mulvaney, vice president of Mulvaney Properties.
        *      “The development group is working to establish a special tax district for the property, which would allow it to use bonds to pay for infrastructure costs such as water, sewer, and roads.  That’s an option available to developers in South Carolina, but not in North Carolina.”
        *    “‘We think we’re in the right place at the right time,’ Mulvaney says.”

12-20-02    Charlotte Business Journal Reports: “High-Profile Residential Growth Spills Over Into Lancaster County” by Jennifer Boyd Sidden
        *    “‘It’s an important development for us, and it’s an important development for Lancaster County, so we’re going to do it right,’ says Mick Mulvaney.”

7-29-03    Mulvaney Properties of Lancaster, LLC conveyed the properties to St Katherine Properties, LLC.

8-28-03    Mulvaney Properties of Lancaster, LLC buys another 174.67 acres and gets an Assumption, Modification and Extension of the 1-11-02  $2M Mortagage, making it a $2.51M Mortgage, which is due to be paid in full on August 27, 2004
9-29-03    Lancaster County Council Meeting
        *    It was explained that Mick Mulvaney wants to do a special assessment tax district called St Katherine, which would be commercial, residential, and potential for a retirement community - decided to consider a Memorandum of Understanding at the following Council Meeting

10-6-03    Lancaster County Council Meeting
        *    Resolution #482 - Authorized execution of a Memorandum of Understanding - Noted that Mick Mulvaney was there to answer any questions

5-3-04     Lancaster County Council Meeting
        *    Bond Attorney said that there are 800+ acres on Hwy 521 for mixed use development, which will require $60 Million in infrastructure improvements.  Approximately half of that – or $30 Million - would be paid for with bonds.  
        *    Resolution #476 for rezoning was adopted unanimously and a public hearing on the matter was set for June 7, 2004 - on the date of the regular Council meeting.

6-7-04        Lancaster County Council Meeting
            *    Ordinance #623 – First Reading - St Katherine Improvement District – First reading passed, but they didn’t have an ordinance yet, so there was a provision to have a “workshop” with Mulvaney before second reading and it would be crafted then.  Passed Unanimously.

6-28-04    Lancaster County Council Meeting
        *    Ordinance #623 - Second Reading - St Katherine Improvement District - Still no ordinance. 

            Meeting began with a 1.25 hour closed door executive session with Mick Mulvaney, the details of which were not revealed.

            Council approved second reading without an ordinance with plans to complete it in time for the third reading - Referenced a  “work session.” to be held with Mick Mulvaney.

8-27-2004    This is the date Mulvaney’s $2.51 Million mortgage on the property is due to be paid in full!

9-20-04    Mulvaney entered into a Contract for Purchase and Sale of Real Estate with GS Carolina and Lawson’s Bend, the fact of which was not made public until the Memorandum of Exclusive Option to Purchase was Recorded a year later on 9-14-05 (DB 299/71).  The agreement itself has never been made public, and a big question would be whether the Sandler’s purchase was contingent upon Mulvaney securing the $30M bonds.  The way he spoke at the Council meeting, he sure sounded desperate to get them.

9-26-04    Report of the Civil Engineer for the St Katherine Improvement District, prepared by Hussey, Gay, Bell & DeYoung.
        *    Preliminary Opinion of Cost to Construct Improvements by Development Phase
                Phase 1        $11,330,698
                Phase 1a        $12,031,308

                Phase 2        $  2,222,874
                Phase 2a        $12,178,540

                Phase 3        $  6,743,101
                Phase 3a        $18,577,656

                TOTAL        $63,084,177

9-27-04    Lancaster County Council Meeting
        *    Ordinance #623 – Still no ordinance, even though first and second reading had been approved.  It was noted that St Katherine Improvement District would have to be approved in third reading by October 4 because state law provides that the ordinance must be enacted within 120 days of the public hearing, which was held on June 8th
        *    Minutes say the ordinance will provide for the geographic boundaries of the district for the improvement plan (permanent improvements that will be paid for with those monies raised from the special assessments), provide for the approval of the assessments within the district, and it will state that up to $30 million of bonds will be issued to pay for those permanent improvements.
          *    St Katherine Special Tax District –  Bonds cannot be issued for St Katherine’s until County Council adopts a different ordinance dealing with the details of the bond issue.  Therefore, another ordinance will be brought to Council for first reading on October 4.  This will establish the St Katherine Special Tax District.  It will be very similar in structure to the Sun City Special Tax District (a $75 to $90 uniform service charge to be used to provide enhanced fire protection and emergency medical services).
          *    Mick Mulvaney spoke about the progress of St Katherine, as follows:
            *    Permits were issued by FEMA to allow them to cross the creek - process took 1½ years.
            *    Applied to DHEC for erosion control permit, which is the last non-county approval needed before they start development.  They expect approval by the end of the week.
            *    They want to start development November 2004 and will soon come to Council to ask for permission to start
            *    Also moving forward on the special tax district
            *    A final agreement has been reached on what the civic use would be and that would be incorporated into their written proposal on the Special Improvement District.
            *    The County has asked them to install a “state of the art soccer and soft-ball facility at St Katherine’s with all the improvements at no cost to the County and an EMS station with room for a Sheriff’s substation, and if there is more left over, buying equipment for either the EMS station ro the fire station in Indian Land.”
            *    He also noted that he has taken on a partner who will be in charge of the development and would be buying the property from him and would hire Mulvaney back to do the development and Council would meet his partner soon.
                (This was 7 days after he had entered into a contract of purchase and sale with Lawson’s Bend.  They were bound by contract, so there was no reason not to disclose who they were).

9-29-04    This is the date on Exhibit C to the Assessment Report in the Ordinance Creating the St Katherine Improvement District; Rate and Method of Apportionment of Assessments – Prepared by MuniCap, Inc.

         The MuniCap reports show how the bond funds were allegedly spent

10-4-04    County Council Meeting (special meeting just for this purpose)
            *    Ordinance #623 - 3rd reading - passed – ordinance authorized the creation of St Katherine Improvement District by assessment, issuance of bonds, or other revenues, ordering the preparation of an assessment roll and the sending of a notice of such assessment to property owners; authorizing reimbursement of expenses incurred prior to issuance of bonds.  Passed unanimously.  Stanley Smith made the Motion –passed unanimously.
        *    Ordinance #639 – 1st reading - Established St Katherine Special Tax District – set boundaries of the district, establish the nature of services to be rendered, to set the maximum level of the uniform service charge in the district, to provide for the operation of the district.  Stanley Smith made the Motion –passed unanimously.

            Note: This was the last meeting Mulvaney attended regarding this development.  He never came back.  BUT he was in the audience for the Public Hearing on the Edenmoor bonds.  He just didn’t speak.

10-25-04    Second reading of Ordinance 639 – St Katherines Special Tax District and Public Hearing for the Ordinance (Mulvaney did not attend).

10-25-04    Lancaster County Council Meeting
            *    Ordinance #639 – 2nd reading - Establishment of St Katherine Special Tax District –  The fees for St Katherine will be capped at $90 per unit per year.  The initial fee will be $75 per year.  These monies will be used to provide the cost of enhanced fire protection and emergency medical services.

January 2005     A new County Council is sworn in – three council members were replaced.

1-5-05        Mulvaney bought the final Morgan estate’s 38 acres to complete the property

1-31-05    Resolution 484 – Postponing the hearing on objections regarding the St. Katherine’s Improvement District until a future date  (Apparently to postpone third reading of Ordinance 639 - Establishment of St. Katherine Special Tax District). – This “future date” never came.  Mulvaney did not attend.

5-5-05        On this date St Katherine and K&J Properties sold all but the Morgan 38 acres of this property to GS Carolina -- for a purchase price of over $14 Million

5-5-05        Bank of America loaned Lawson’s Bend, LLC $14,000,000.00 so they could pay Mulvaney the purchase price of the property – and Bank of America recorded a mortgage on the property (Lancaster County Mortgage Book 1337 at Page 64) – It was later amended several times as noted below

7-6-05        R Joe Harris and Associates of Ft Mill, an engineering firm, prepares the proposal for Civil Engineering and Surveying for Phase I of Edenmoor – original contract amount $356,275.  (they weren’t paid and later filed suit for work performed in the amount of $60,375.29) – however, the information the Company filed with Municap shows that they paid their engineers this and more from the bond.

7-22-05    GS Carolina and Lawson’s Bend as buyer and Mulvaney Properties of Lancaster, LLC, and St Katherine, LLC as seller, entered into an Exclusive Option to Purchase Property (applying to just the remaining Morgan 38 acres) (oddly, not recorded until  9-14-05 in Deed Book 299 at page 71)

8-1-05        County Council discusses a Memorandum of Understanding (MOU) between the County and Lawson’s Bend.  This is the first mention of Lawson’s Bend on the County  record.  Bond attorney Mike Ey said that the development would be different from St. Katherine’s.  Councilman Fred Thomas asked for a copy of what the County had been promised by St. Katherine’s so that they could see the differences.

9-6-05        County Council enacts Resolution 502 describing Lawson’s Bend Improvement District, project schedule, cost of improvements, source of funds, rates, and assessments, and orders a public hearing.

9-8-05        Fort Mill Times Reports “1,900-home mixed use project underway for Indian Land” - by Jason Reynolds
        *    Now the project is: “1,900 new homes with some retail and commercial space and a 40-acre park.. . . The project, previously known as St Katherine’s, has been in limbo since 2004.”
        *    GS Carolina wants to link this development to a Union County, NC development via walking trails

10-3-05    A public hearing is held on the Edenmoor Improvement District, but nobody shows up to speak.  Curiously, Mick Mulvaney is in attendance.  He had been appointed by Council Chairman Rudy Carter as a sub-committee chair to examine how to handle the growth in Indian Land and he was there to present his findings to the Council.  When the public hearing was held on the Edenmoor Improvement District, however, he did not speak.

12-5-05    Ordinance 710 – First Reading – Rezoning areas of Hancock Road and Hwy 75 for Edenmooor.  This Ordinance had been tabled because the new owners had not be notified.  They were here this evening to present their plan to County Council.  They said this would be added to the St. Katherine’s PDD Council had already approved.  Passed unanimously. 

January, 2006    Mulvaney announces his run for SC House District 45

1-9-06        Council held a Special Meeting for the Edenmoor Special Tax District
        Ordinance 710 - Second Reading on Rezoning passed
        Ordinance 713 – First Reading on Edenmoor Bonds passed

1-23-06    Ordinance 713 – Second reading on the Edenmoor bonds passed.

1-30-06    Ordinance 713 – Third Reading on Rezoning passed
        Ordinance 710 - Third Reading on Rezoning passed (developer asked to delete tax map 15 number 17.01)

3-6-06        County Council Meeting
        Council meeting began with an Executive Session at 5pm – results of discussion not reported.
        Edenmoor Development Agreement approved - first reading Ordinance 732 (this ordinance was added at the meeting with no prior notice)

        Edenmoor Improvement District Assessment Revenue Bonds - first reading Ordinance 733

3-27-06    Public Hearing on Edenmoor Development Agreement w/ Lawson’s Bend and Second Reading - Ordinance 732
        Second Reading on Ordinance to Approve $30M Bonds to Lawson’s Bend - Ordinance 733

4-24-06    Third Reading on Edenmoor Development Agreement w/ Lawson’s Bend - Ordinance 732
        Third Reading on Ordinance to Approve $30M Bonds to Lawson’s Bend - Ordinance 733

4-25-06    Lawson’s Bend added 45 additional lots for subdivision design to its contract with R Joe Harris and Associates, raising the total contract amount to $368,650 (they weren’t paid and later filed suit for work performed in the amount of $60,375.29) – although in the Municap report, Lawson’s Bend Reports that they paid all of the engineering costs

5-2-06        GS Carolina and Lawson’s Bend enter into a Release of Rights under the Option to Purchase, whereby GS Carolina Releases its Right to Purchase to Lawson’s Bend

5-2-06        Mulvaney sold them the final Morgan 38 acres to complete the property

5-19-06    Lancaster County filed its Public Offering, whereby the County issued for sale $30 Million of bonds for the Edenmoor Improvement District

6-14-06    Lancaster County filed its Notice of Assessment Lien for the Edenmoor Improvement District

10-25-06    Bank of America and Lawson’s Bend filed an amended mortgage adding $4,000,000.00 more to the original for a total of $18,000,000.00 (Book 1610/13)

11-7-06    Mulvaney wins SC House Seat 45

11-8-06    Bank of America and Lawson’s Bend filed another amended mortgage (Book 1610/96)

12-5-06    Bank of America and Lawson’s Bend filed another amended mortgage (Book 1625/168)

5-30-07    Lawson’s Bend, through their attorneys, file with the Lancaster County Clerk of Court several Consents for Road Closings in the development

Summer ‘07    DHEC inspects work site and finds problems
        Another problem - twleve-mile creek bridge was built at the cost of $1 Million - without a state permit (The Lancaster News - 2-5-08)

January 2008    Mulvaney announces his run for SC Senate

1-16-08    R Joe Harris and Associates provides Lawson’s Bend with a quote for Civil Design Services and Construction Administration for Phase 2 of Edenmoor  (they weren’t paid and later filed suit for work performed in the amount of $60,375.29)  (Case No 2009-CP-29-0184)
2-5-08        Lancaster News Reports: “DHEC Fines Housing Developer $15,000” - by Jonathan Ryan
        *    Lawson’s Bend, LLC was fined $15,000 after conferences last year with DHEC regarding inspections at the work site
        *    A $4.2 million public recreation complex has been started and should be ready for use by August 2008 (didn’t happen).  It will be given to the county and the county required to maintain it.

3-13-08    Lancaster News Reports: “County at Fault for Park Delay” - by Jenny Hartley
        *    GS Carolina says 17 lots are under contract now.  When Phase I is complete, there will be 399 homes at Edenmoor, which will eventually have 2,000 homes.
        *    “No earth work remains at the entrance on 521. . . this is why you do not see any equipment at the 521 frontage.”
        *    “Work on the much-anticipated park has begun with fine grading 80 percent complete and park storm drainage under construction.  The company will be sodding all playing fields at the park with Bermuda grass.”
        *    GS Carolina says the County is to blame for delaying the permitting process for Phase II and that delayed the park’s completion.

4-10-08    Homebuilder Gandy @Lancaster, Inc. notified Lawson’s Bend that it was terminating its agreement with Lawson’s Bend for several reasons, including (1) the fact that the lots it had purchased at the December 2007 closing were “defective” because they did not have water or sewer; (2) the infrastructure in the development is rapidly deteriorating; and (3) conditions on the property pose a threat to safety.  The letter demands reimbursement of expenses in the amount of $1,789,401 (no response from Lawson’s Bend)

5-6-08        The MuniCap Report is issued: “Development Activity and Disclosure Report” that allegedly shows how the bonds were spent in paying contractors etc, but liens filed weeks later indicate that the contractors were not paid.

6-3-2008    Rosewood Construction Corp d/b/a Monroe Roadways filed a Mechanic’s Lien against Lawson’s Bend in the amount of $2,012,034.18 – Lien Book Ref: Mech H /135-141

6-15-08    Lawson’s Bend defaulted on its Bond Payments to Bank of America

6-24-08    Apparently afraid of being sued, Mulvaney conveys all of his interest in his home to his wife, Pam.
7-16-08    R. Joe Harris & Associates, LLC (the engineering firm) filed a Mechanic’s Lien against Lawson’s Bend in the amount of $74,017.79 – Lien Book Ref: Mech H / 159-163

8-11-08    Crowder Construction Company, Inc. filed a Mechanic’s Lien against Lawson’s Bend in the amount of $81,185.57 – Lien Book Ref: Mech H / 233-243

9-10-08    Homebuilder Gandy @Lancaster, Inc. had received no response from its 4-10-08 demands and sent Lawson’s Bend another letter regarding the termination of their contract, and demanding reimbursement of expenses in the amount of $1,789,401 (again, no response)

Sept, 2008    Lawson’s Bend notified Lancaster County Council of a “Material Event” in that it has received notice from Bank of America that it is in default on its bonds as of June 2008.

10-2-08    County Council was notified of the three Mechanics Liens on the property, totaling nearly $2.2 Million and that the ballfields and EMS station cannot be completed or conveyed until such liens are satisfied, and that no more lots may be sold.

10-7-08    Rosewood Construction d/b/a Monroe Roadways (a grading contractor) filed suit against Lawson’s Bend in the amount of $2,012,034.18 plus $15,397.64 attorneys fees – Lawson’s Bend defaulted (Case No: 2008-CP-29-1148)

10-8-08    Gandy @ Lancaster, Inc. filed suit against Lawson’s Bend (Lawson’s Bend defaulted in that it failed to respond)

11-7-08    Bank of America made an appearance in the Rosewood Construction v. Lawson’s Bend lawsuit through its attorney Ted VonKeller

11-7-08    Mulvaney was elected to SC Senate

11-11-08    Crowder Construction files suit for Mechanics Lien Foreclosure in the amount of $81,185.57 (Case no: 08-CP-29-1316) – Lawson’s Bend defaulted in that it did not answer

1-15-09    2008 Property taxes in the amount of $2.278M were due and not paid by Lawson’s Bend

1-21-09    Crowder Construction recorded a Default Judgment against Lawson’s Bend in the amount of $81,185.57 (Case no 2008-CP-29-1316) – (Odd - original name of the case was Crowder v. Sandler at Doby’s / GS Carolina)

2-24-09    DHEC issued a Warning Notice of Non-Compliance with Permit conditions related to Sediment and Erosion Control
        *     instructed to discontinue development and asked Lancaster County to cease issuing building permits or certificates of occupancy

3-31-09    Rosewood Construction d/b/a Monroe Roadways (a grading contractor) filed a Motion to Compel against Bank of America re Lawson’s Bend’s Default Judgment for over $12 Million.  The Motion states “Bank of America provided funding for the project and recorded mortgages securing promissory notes in the principal amount of $18,000,000.00.” and “Upon information and belief, Lawson’s Bend is insolvent.”

3-31-09    MuniCap Report: “Developers Continuing Disclosure Statement.”
5-5-09        Lawson’s Bend entered a Confession of Judgment in favor of Gandy @ Lancaster, Inc. (fka Gandy Communities, Inc.), in the amount of $2,083,040.26 (Case no 2008-CP-29-1182) Lawson’s Bend was in default because they had not answered the Complaint

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