Published: July 22, 2008 04:06 pm            

Lot owner unsettled about project’s future

Alan Kuhlman speaks of the future with a guarded and cautious optimism. One can sense in his voice a combination of frustration and a determination to hold on through the best and worst of economic times.

The Elkview man and his wife, Carol, are among dozens of would-be homeowners who purchased lots at what was once aiming to become the largest housing development ever along the rim of the New River Gorge.

The Kuhlmans and others are now left with a situation where they own plots of land but may not enjoy — at least for the time being — infrastructure amenities such as roads, electricity, water and sewer services.

“I was taken aback. It just came out of the blue,” said Kuhlman, 58, who purchased two lots two years ago in Phase One of the three-phase housing development known as Roaring River.

“Actually, I was contacted by one of the people who was laid off. He called me as soon as it happened. My gut was churning on it. It still is.”

Roaring River and its parent corporation, Land Resources Companies of Orlando, Fla., appear to have fallen victim to a nationwide housing slump. It was discovered last week that Roaring River closed its Fayetteville office and laid off all of that office’s employees.

According to Kuhlman, a groundbreaking ceremony for water and sewer services had been scheduled for Saturday but has been canceled. “What does that mean to us who have invested millions of dollars (among all lot owners) in this? There’s not a lot of value to that property. What are we supposed to do,” Kuhlman queried aloud.

Kuhlman commended LRC CEO Mike Flaskey for his timely responses to Kuhlman’s phone calls and e-mails. The disappointed lot owner only longs for more clarification and elaboration in Flaskey’s answers.

“I haven’t gotten a response to that e-mail yet,” the account manager and former school teacher said Thursday, referring to the question above that he said he sent to Flaskey on Wednesday. “I’m communicating from my end and hope it’s reciprocated from those in the (LRC) corporate office.”

He also wishes Roaring River would at least keep a sales and marketing presence in Fayette County. With whom, Kuhlman asked, are you going to inquire about property if there’s no project manager or sales representative?

“We’ve made an investment in this property for our retirement. We ideally wanted to retire a number of years down the road.” To that end, the Kuhlmans decided in 2006 to diversify their nest egg by investing part of their 401(k) money in real estate.

“Real estate is a pretty solid investment,” he added, noting most people he talked to from other LRC-developed properties spoke highly of their experiences with the company.

“Most were pretty satisfied. It looked very solid. They had capital behind them to do what they promised they were going to do. A lot of stuff has happened in the last two years.”

Kuhlman expressed hope for an economic turnaround and — like any shrewd investor — is not going to be tossed about by the constantly shifting economic winds of fortune. He is holding on to the property but has resigned himself to the reality there is truly nothing he can do about the situation.

“What the hell are you going to do? There’s not a lot we can do. I hope the economy turns around, for so many reasons. I hope things turn around and they (LRC) get the loans they need to proceed with infrastructure. I’m sitting tight and hoping for the best.

“It’s a pretty place, and I hope it comes to pass as they’ve planned. Worst-case scenario? You end up with a class-action lawsuit or the company goes bankrupt. God, I don’t want to think about it.”

— E-mail:

mhill@register-herald.com

        

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