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Karl
Baker www.KarlBaker.info
Honesty. Integrity. Transparency. |
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A Tale of Two Developments---or,
At their last meeting in 2006 the DHS City council approved two Environmental Impact reports for two very large – each estimated at over $1 Billion – developments, I.) The Two Bunch Palms Real estate development company King Ventures acquired Two Bunch Palms last May from Sinclair Resorts & Hotels Management, which bought it in 1996. King Ventures, based in San Luis Obispo, now owns 14 resort, spa and hotel properties in California. John King, the company's president and chief executive officer, said, "The goal of our Health and Wellness Division is to help establish California's hot springs as credible and respected properties that can serve the growing interest worldwide in the health potential of a natural mineral spring." http://www.kingventures.net Each of these links sheds light on the proposed new project which will include the development of approximately 235 acres that will include 1,338 dwelling units, a 121,500 square foot commercial center, common areas and interior streets. The project is consistent with the current General Plan of the City – it will not require amendments. The ripple effect of this development will be felt by all of the many “natural mineral water” boutique resorts we presently have in the City. A Goggle search yields extensive information about “Spa Developments” and their positive economic impact in an area. II.) Palmwood The Palmwood Development is proposed for the City, but has several hurdles to overcome prior to getting approval.
Who is behind the Palmwood Project? Landmark Properties, LLC of Minnesota, Michael Crosby, president is the applicant. This company is not to be confused with Landmark developments in many parts of the country. A search of the web yields no projects even remotely connected or similar to this proposal by Landmark Properties of Minnesota. http://www.ci.annandale.mn.us/minutes/2004/063004R.htm There is not a website for Landmark (Minnesota), there is no financial information available, and it does not appear that the company has ever done ANY development. The company is a mystery. (Anyone can become a LLC (Limited Liability Corporation) in Minnesota by paying a fee of $185.00 and registering a name that is not already claimed or used.) The Palmwood Project proposes three golf courses, a 400 room hotel, and almost 2700 dwelling units. The presentation before the City Council was a wonderful video of Phil Mickelson playing golf. http://www.golftodaymagazine.com/0603/southland.htm (scroll down to Phil Mickelson) Mr. Crosby has committed to pay all costs (including staff time) for the annexation process as well as defending the city in court against the Sierra club law suit. However, it does not seem reasonable that – even if the City is compensated for its time – staff should take the time necessary to defend a lawsuit from the Sierra Club. The City staff is very lean and there are other priorities for their time. Lastly, what happens if Palmwood does not pay the costs? Unless a bond is posted to cover all City expenses related to the project it could be another financial drain on the City. All of this begs the question - which developer (emperor) is wearing no clothes?
Just because an entity that is a LLC, comes before the City with pretty pictures, nice drawings, and a suave attorney doesn’t mean that there is any substance to their proposal. The Council must have assurance (bonds) that a project will be completed by a capable company with the necessary financial and staff resources. Otherwise we are investing in a “suit of wonderful new clothes.” |
