Chapter 3. Mayor Waters Sees an Opportunity

The sly Paul Waters is sitting in his paneled law office. His secretary opens his office door and says, “Mayor, Carson Crenshaw is here for his appointment. Shall I show him in?”

“Yes, Marylynn, show him in.” Waters gets up and greets the distinguished looking Carson, “Come in and have a seat, Mr. Crenshaw.”

“Thank you Mayor. I understand you’re a lawyer as well as mayor. I have something to discuss.”

“Is it something for me as a lawyer or as the mayor? And call me Paul.”

“Both actually, Paul. I’m a developer and I’m negotiating with David Wellborne to buy the vacant beachfront he owns adjacent to city property. We’re discussing an arrangement requiring a carefully crafted sales contract. That’s why I need a lawyer. If I’m successful in buying the property I intend to develop it. I’ll need your support as mayor to help me convince the townspeople it’s in their interest to have the Wellborne beach developed.”

“Tell me what you intend for the property, Carson? That may help in crafting the necessary contract.”

“It’s pretty simple. I intend to build 20, two and three-bedroom cottages suitable for people who want an affordable place on the lakefront. Being adjacent to the city makes it convenient to extend city water and sewer to the cottages. I expect the townspeople will need convincing the taxes on these cottages will more than pay for the cost of extending water and sewer in the long run. That’s where your support as mayor is vital. I’m confident the village businesses and service people will realize they’ll benefit from both the construction jobs and from spending by the cottage owners. But other taxpayers may need convincing. From what I’ve heard the City Council does pretty much what you want.”

“I see. I do have a good relationship with the City Council. I intend to keep it, so I’m careful to use my influence only when necessary. There’s a way to handle this I think will satisfy both our needs. We have a Chamber of Commerce in Sturgeonville. Bill Taylor, the owner of the IGA is the current Chamber President. If you join the Chamber and lay out your plans for Bill I’m sure he’ll support you. He listens to the other Main Street business owners, at least talk to Peter Brown, the plumber, and Erin O’Shea, the owner of Erin’s Cut and Curl salon. Get them on your side before talking to Bill Taylor. That will get the Chamber’s backing for your plan.  As mayor, I support what’s good for the town, but I have to listen to all of the taxpayers. I can tell Bill privately I think your plan is good for the village. I’m sure you are aware there are some locals who will be opposed to the Wellborne beachfront being developed. David’s grandfather and David have let the locals use the beach as if it is public land. They may try to claim their long term use gives them the right to continued use. That won’t hold up in court. It’s not like using a private road for access to the property they own. But a court case could take time and money.”

“I thought about that possibility and checked with a law firm downstate. They agree with you, any such claims wouldn’t hold up. Still, I will be counting on you to help ensure no such case goes to court.”

“I can try to convince people it wouldn’t be worth their time or money to bring a suit to prevent the property owner from developing it, but I can’t ensure they won’t find a lawyer somewhere that’ll take their case. Now, tell me about the contract you and David Wellborne want crafted?”

“Wellborne won’t sell the property at a price making development profitable. So, we came up with a plan where he sells it for a lower price now with an additional payment of $10,000 when each cottage is sold. Payments for the 20 cottages I’m planning plus the initial payment we have agreed on will satisfy Wellborne. The difficulty is in the details. Wellborne wants a contract provision that returns the property to him if the development isn’t completed and the cottages sold within two years when he plans to retire. I’ll agree to that only if there are provisions that nullify returning ownership to him if there are unforeseen problems that delay construction or sales. I think that’s fair. If any unforeseen problems arise that delay or stop the development we share in the economic loss. He’ll have the first payment, which I think is nearly a fair price for the land. I’ll have ownership in the land and the opportunity to overcome my losses. Neither Wellborne nor I are lawyers, so we need your help in crafting a contract that is legally binding and meets the spirit of our verbal agreement.”

“I understand. I’ll write up a draft contract then the three of us should set down and review it. When you and Wellborne reach an agreement I’ll create the formal contract for your signatures. Marylynn, my secretary is a notary and I can witness your signing. You understand there are fees for this work. Are you going to pay my fees?”

“Yes, I agreed to pay the legal expenses up to $1000. After that we split the cost 50/50, if we want to continue.”

“Unless you two can’t come to an agreement in a reasonable time it shouldn’t cost more than a few hundred dollars. Leave your phone number with Marylynn and I’ll contact you as soon as I have the draft contract language. Marylynn can get the legal property description from the Assessor’s office. Nice to meet you, Carson. I hope your development is successful.”

“Pleasure to meet you, Paul. I’m looking forward to working with you.”

Waters gets up and ushers Carson to the door. He watches out the office window and waits until he sees Carson get in a large BMW and drive off towards town. Then he calls his secretary into his office. He says, “Marylynn, call Glen Lund, the tax assessor and ask him to come to see me now.”

“Yes, Sir. What shall I tell him you want to talk about?”

“Don’t give him a subject, just tell him to get over here. I want to speak to him.”

Twenty minutes later the secretary shows the tax assessor into the mayor’s office and closes the door.

“Thanks for coming right away, Glen. We may have the opportunity we’ve been looking for.”

“What opportunity is that, cousin?”

“The Wellborne beachfront. David Wellborne is negotiating with Carson Crenshaw, the rich young man who came to Sturgeonville a few years ago, on selling the property we’ve had our eyes on for years.”

“I heard at an Art Society meeting Crenshaw is negotiating to buy the property. How does that create an opportunity for us?”

“They want a complex sales contract with a lot of special provisions. I’m pretty sure I can create a contract that, with your help, will give us the opportunity to buy the property for well under the market value. You know I have an old fraternity brother who’s the CEO of a motel chain downstate. He and I have a plan for that property if we can get it cheap enough.”

“What’s your plan, Paul?”

“The motel chain will build a motel and a water park on the beach. That’ll bring in tourists in the summer. They’ll build a snowmobile track on the back half of the property and hold snowmobile races in the winter. In the fall the motel will cater to hunters and fishermen in the spring when the steelhead are running. They believe they can keep the tourists coming for all but a few weeks a year.”

“Sounds great, but how do we benefit?”

“If we buy the property cheap enough they’ll pay us a fair price that’ll give us a fat profit.”

“I don’t see why you need me, Paul.”

“You are the tax assessor and fiddling with the assessed value of that property is the key to getting it on the cheap.”

“Do I have to do anything illegal?”

“Of course not. Well, nothing that I can foresee now.”

“It sounds like it could become risky but if the payoff is big enough I’m in. Tell me what you want me to do and when you want me to do it.”

“I will. For now keep this conversation to yourself. If any word of this gets out it’ll destroy our plans.”

“I’ll keep quiet.”

“Good, I know I can count on you, Glen.”