| Description of Prop: |
300 acres partially wetlands, undeveloped raw land on north side of the road to San Luis Pass. It is across the street from Kahala Beach development on the ocean.
All of Division Two (2) of Section Eleven (11), of the Hall and Jones Survey of Galveston Island, in the City and County of Galveston, Texas, SAVE AND EXCEPT the "Termini Road" right-of-way, being that certain tract described by instrument recorded in Volume 1103, Page 55, and SAVE AND EXCEPT all of "Kahala Beach Subdivision", according to the map thereof recorded in Volume 18, Page 443, all in the Office of the County Clerk of Galveston County, Texas. According to the Money Mortgage "Borrower Payoff Quote" this property equals approximately 300 acres. This is consistent with the tax records for the plat. A letter from SWCA, Inc. Environmental Consultants indicates that approximately 200 of the 300 acres are wetlands suitable for sale as mitigation wetlands.
300 acres in Terramar Bay was conveyed to Premiere in an arbitration in 2001 with Jim Rutherford. The collateral for the Midtown Mortgage/Domain Developers loan (2720 & 2706 Baldwin) was sold and approximately $420,000 was realized and paid to certain Midtown/Domain investors. The collateral was a 14 unit town house built by Jimco Builders. Jimco built the slab and defaulted. The 300 acres was given by Premiere as collateral for St. John, the refinanced investors from Midtown Mortgage/Domain.
10/14/02 An agreement has been reached between the partnership and the trustee to dismiss the law suit and turn the property over to the partnership. When this occurs, the partnership will put the land up for sale.
12/2/02 We have a final agreement with the Estate related to St. John. First and foremost, there is no need to answer the lawsuit. The estate has agreed to hand over the property to St. John's partnership. The board of directors has approved to giving all those that are in St. John, a pro rata share of the proceeds upon the sale of the property. Hopefully, the property is worth at least $500,000 of the $1,500,000 outstanding. The Estate has agreed to allow all St. John partners a total of $1,000,000 in class 8 claims. If the property sells for more than $500,000, your claim will be in excess of the amount of your shortfall. We will soon turn the property over to Situs to sell.
8/3/04 About a month ago, the trustee transferred the St. John property over to the partnership. Ronnie Spolane has taken on the role of committee chair and has been working with a group to auction the property. Marc Deer, a developer, has inquired about the property and asked for a 90 day listing prior to auctioning the property. Marc has been to the property many times and has brought to my attention that over 200 head of cattle are grazing on the property. After a little research and changing a few locks, Marc found the owners of the cattle. They claim that the owner of the property gave them grazing rights. I told Marc that we would charge them $10,000 for the last three years and $500 per month for future grazing rights. I will let you know the outcome of our negotiations.
Marc feels that Galveston is ripe for development on this property. I listed the property with Marc for $1,000,000. If the property does not sell within 90 days, we will look at auctioning again or possible joint venture with a developer.
12/10/04 The property is under contract, which details have been emailed to the partners.
1/23/05 The property is still under contract, and the closing was delayed for 30 days due to a problem with the survey (surveyor did not have capability to go into water). The closing is scheduled for Feb 21, 2005. The buyer has agreed to pay the property taxes due on Jan 31.
3/30/05 After the discovery that the 300 acres originally reported was substantially less, the Buyer still wanted to purchase the property. The final selling price is $1MM.
5/1/05 The property has been sold.
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