Thursday, December 31, 2009

$9.8M: Biscuit Run Sold to Virginia For 78% Less Than 2005 Price...But Story's Not Over

*Updated at bottom

The PR rep for Hunter Craig and Forest Lodge LLC stated,  “the investors will not come out whole and no one is getting a windfall,” after the announcement that the Commonwealth paid $9.8M for the property for which Forest Lodge LLC paid $46.2M in 2005, $36.4M or 78+% less.

However, the issue of tax credits, which may be sold, remains to be determined in the future.  From the DP:

“This is what is known legally as a ‘bargain sale,’ when there is a reduced cash payment and the seller applies for tax credits,” said Bryant in an interview. “We have determined that this project is eligible for land preservation tax credits. The seller will have to apply in the 2010 calendar year and it will be up to the state Department of Taxation to act on their application.”

 The story's not over: 
1. The information about tax credits will not be available to the public.
2. The State, and the County, both of which are suffering from massive deficits, will now have to find $ in their respective budgets (and/or donors) for infrastructure improvements to get folks in and out of that park, among other expenses. 
3.   How does 2015 sound for a park opening?  Conservative estimate, or not enough time?

 Read more by Brian Wheeler of Charlottesville Tomorrow here.  

Previous posts on Biscuit run here and here.

January 1 Update: 

Courteney Stuart at The Hook reports that the loan for the property was already delinquent to Bluefield, WV's First Community Bank, and selling to the Commonwealth is technically a "short sale."  Additionally, "Some details of the loan settlement between Forest Lodge and First Community Bank may be revealed in a January filing by the publicly held bank holding company..."   Read all here. 

RealCentralVA has additional coverage as well.


Ted said...

Righteously good news -- for area residents who will be able to access this land, for the County which now has a FRACTION of the infrastructure bill to face, and as for the credits -- do you think you would have had a clue about how much Forest Lodge would have made had they dotted BR with homes?

Jerome said...

Hunter Craig gets his bailout.

Anonymous said...

What's the reputation of this First Community Bank that loaned the money for Biscuit Run?

Real C'ville - The Bubble Blog said...

Another question: what's the loss impact?

The bank doesn't appear on Calculated Risk's Unofficial Problem Bank List:

Digby said...

$8,100 an acre? Is that now the going rate for undeveloped land in the County? Thanks, Hunter! ;0)

Anonymous said...

Rumor has it that Forest Lodge LLC has claimed somewhere around $30 million in tax credits for the remainder of the "donation" value. If true, this would mean they claimed a market value of Biscuit Run in 2009 of around $90 million and basically broke even on the deal in the worst real estate downturn in a generation! Virginia's own version of a bailout.

last thing this place needs is a state park said...

yeah, Tim Kaine did his broheems a solid. now we know why Boyd Tinsley had such a big grin at the official annnouncement, he knew what was coming