Laurelmor - Looking for a 2nd home in the Mountains of North Carolina?

My husband and I have been looking for a great place to retire.  This community looks like an ideal location

This Ginn Resort Property, a 6,000 plus acre mountain residential/resort community, was approved in 2006 before its location could be mapped for landslide hazards. The Western North Carolina mapping program was mandated after the region was declared a federal landslide disaster area in September 2004.

In 2006 the North Carolina Geological Survey identified Watauga County, the primary location of Laurelmor, to be at extreme risk for future landslides. The landslide probability maps show that 20% of the county is rated high hazard and 41% of the land lies in the track of previous debris flows.

Considering the evidence, Laurelmor building sites should have been inventoried for landslides and other slope instability factors before the applicant received his permit. But since North Carolina has no regulations governing the development of hazardous land, this project was approved.

The Laurelmor web-site shows a site plan but it does not disclose the resort's location on the Watauga County landslide maps. Finalized hazard maps were released in January 2008.

Laurelmor/Ginn provides a list of featured home builders for their clients. These individuals are not qualified to assess the safety and stability of building sites. Anyone buying Laurelmor mountain slope property should visit the North Carolina Geological Survey and take a serious look at the Watauga County landslide maps. North Carolina geologists warn that all slope property should be investigated for landslide probability. The costs for a professional site specific study are reasonable, generally less than $2,000. Caveat: Slope stability tests should only be performed by independent state licensed geologists and engineers.

Laurelmor investors should note that they will be self-insuring for all earth movement property loss. Homeowner policies will not cover landslide damage, regardless of the cause.

Laurelmor and The Ginn Company Lawsuit History of the Ginn Company Lawsuit A class action lawsuit was filed against The Ginn Company on May 29, 2007. This nine-count lawsuit was filed in U.S. District Court in Michigan. The $60 million Federal lawsuit has been moved to the Middle District of Florida in Jacksonville. The following article from LawyersandSettlements.com provides a summary of the legal complaints: A class action lawsuit has been filed against the real estate venture for allegedly misleading and defrauding consumers in property purchases. The lawsuit was filed in the United States District Court for the Eastern District of Michigan on behalf of all those who purchased land an homes from The Ginn Company and alleges the company has breached agreements and violated several laws, including the Interstate Land Sales Full Disclosure Act and the Securities and Exchange Act of 1934. The suit claims Ginn solicited plaintiffs to purchase vacant residential lots in Florida by sending brochures and marketing materials advertising the lots. Purchasers were allegedly promised large returns for their investment and claim initial purchasers were actually paid the promised returns which attracted additional purchasers. The lawsuit alleges Ginn created a complicated web of companies to be used in marketing, soliciting, and promoting properties to potential purchasers in order to avoid scrutiny of US regulators. The case also claims Ginn perpetuated a ponzi scheme where returns to investors were not financed through the success of the underlying business venture, but were taken from principle sums of newly attracted purchasers. In all, the suit is alleging nine counts, namely violation of Interstate Land Sales Act failure to provide property report; violation of the interstate Land Sales Act Fraud and Deceit upon purchasers; violation of securities and exchange rules registration, reporting and disclosure requirement; false representation under Securities Exchange Act of 1934; "Ponzi Scheme" and violation of section 10(b) of the Securities and Exchange Act; violation of State Securities laws; fraudulent misrepresentation; innocent representation; and violation of Racketeer Influenced and Corrupt Organizations Act. For additional information please see the following articles: “The Ginn Co.’s federal suit moves to Fla.” Orlando Business Journal March 14, 2008 “Ginn fights lawsuits and other woes” Orlando Sentinel.com October 5, 2007 Will this lawsuit affect the financial well being of The Ginn Company and their plans for Laurelmor? Should this lawsuit be disclosed to current and future Laurelmor investors? For additional information please visit ginnlawsuit.com

2007 property taxes are listed as delinquent on 128 of 337 lots in The Conservatory. 2006 property taxes remain delinquent on 52 of them. Meanwhile, several lots (originally purchased for between $329,900 and $529,900) now listed between $100,000 and $200,000 remain unsold. Ten Conservatory lots are now bank-owned (foreclosed). Fifty more are in foreclosure.  

In Yacht Harbor Village, Ginn's marina community on the Intracoastal Waterway in Palm Coast, a handful of condominium units are still unsold. The building received its Certificate of Occupancy in 2006, but the lobby, restaurant, and ships store remain unfinished.  

At Bella Collina, Ginn's premier resort on Lake Apopka north of Orlando, 292 of 823 properties are listed on Lake County's 2007 delinquent tax roll. Foreclosures are increasingly common there also, as they are in Tesoro, another Ginn community in Port St. Lucie and Reunion near Orlando. The planned Tesoro Beach Club was never built. Nor was the planned equestrian facility at Bella Collina.  

Several lots reported as sold at a fall '07 release event at The BriarRose, a recently acquired Ginn property in Georgia, did not close. Jeff Davis, who recently headed Ginn's real estate sales division and originally developed The BriarRose is no longer with the company. BriarRose is now reportedly for sale.  

A lawsuit filed last year in Michigan by disgruntled Ginn property investors has recently been assigned to a Florida jurisdiction. Ginn states that he will vigorously defend against the suit. Two additional lawsuits were reportedly filed in April by Orlando based law firms representing Bella Collina property owners. Several Ginn property owners have indicated that they have been contacted by the same law firms about similar suits the firms plan to file related to Reunion, Tesoro, and The Conservatory.

All Ginn Communities have problems and it is almost impossible to find anyone who is happy living in a Ginn Community, it is difficult to find anyone living in a Ginn Community period. 

If you bought a property direct from Ginn you have an opportunity to join one of 2 Law Suits against the Ginn Company, for more information contact me at billboylan@mac.com