Saturday, January 28, 2012

RNCIC Board discusses making offer for yellow house with large adjacent lot where Hill Avenue turns into Ellis Avenue at 11th Street intersection

SUBJECT: Negotiations for Lots 20 & 20A
TO: 2012 Board of Directors
At the January 2012 RNCIC meeting, I received the board’s approval to begin
negotiations for the subject properties and subsequently called the principal owner, Mr. David Brantley. He affirmed that both he & his sister (the only heirs) wish to sell the lots as soon as possible. I requested an “asking price” and his response was $60,000.00.
I asked if there was anyone locally who had access to the house; he did not know of anyone. Some time ago, he had given a key to a person who was interested in buying the property but never got the key back. He described the house as two bedrooms, built on a cement block foundation with foam insulation under metal siding and a crawl space, but no central air or heat. Reportedly, there are some items of property remaining in the house to include gas space heaters, maybe a refrigerator, plumbing fixtures, a ‘spool bed’ & buffet that his sister has an interest in, and perhaps more items.
His local representative will be the Niblock Law Firm, that he will soon hire to handle the sale of the property. However, I would like to purchase directly from the owners, as we did when we bought Lot 18, without incurring the extra cost of an attorney. A person who has previously done these direct buyer-to-seller transactions for the RNCIC thinks it can easily be done again.
I request approval of the Board of Directors to make an offer of $52,500.00 cash, plus a Letter of Donation-in- Kind, in the amount of $7,500.00, for a total offer of $60,000.00.
The RNCIC presently has a bank balance of $37,500.00. If Mr. Brantley accepts our offer of $52,500.00, we will have a deficit of $15,000.00. Although this deficit is significant, I have been assured that the RNCIC can obtain a $15,000.00 loan from a private
individual, renewable for up to three years, for interest of just $1.00 per month.
Obviously, the stated interest amount is very good for the RNCIC.
In the event our offer is not accepted, negotiations should take place until both the seller & RNCIC arrive at an agreeable price. Any agreed upon purchase price greater than $37,500.00 will result in a larger shortfall than the $15,000.00 stated above and will require discussions with the private individual to obtain the necessary funds.
In summary, the owners are very interested in selling the property to save their continuing costs of taxes, insurance, and property maintenance. I sincerely doubt that the RNCIC will ever again have the opportunity to obtain this much property for this price.
We will also need to investigate selling and moving the house, rather than demolishing it. It is in good condition compared to the others that we have purchased, and even if we have to donate the house, we can significantly reduce the cost of clearing the lots.
If you agree with the process outlined above, please send your ‘YES’ vote, or if you disagree, your ‘NO’ vote to Lorna at . Your questions and/or comments are also welcomed. Please reply no later than Friday, 3 February 2012.
If there are sufficient ’YES’ votes to further pursue this matter, I will call a Special Board Meeting as soon as possible to finalize this action and continue negotiations for the purchase of Lots 20 & 20A.
Thank You for Your Consideration,
Ronald L. Butler
President, RNCIC

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