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Perry B. Owens
Chaimian and Chief Executive Officer
2335 Sanders Road
Northbrook, Illinois 60062*6196
The Honorable David E. Hasulak
The Town of Pine Knoll Shores
100 Munidpol Gicle
Pine KnoU Shores, NC 28512
Dear Mayor Hasulak:
I received the Town’s letter of June 29,1995. As you know, our water company has continued
to make a substantial investment in the.coiitinuuiiy since 1972 when dieie were only 25 homes. I
personally have been a homeowner for 13 years. Our ties to this community go back a long, long rimf*.
As such I feel I have a certain responsibility to make sure thaf the community’s best intRTRsfs are
The Town’s intention to either purchase our water utility or install a system is,
obviously, of concern to me. How can the Town possibly justify this involvement and investment for
a potmtial savings to homeowners of at most $2 to $3 per month while assuming the enormous
potential liabilities for providing this service? Especially when you, yourself, have indicated that
neither water quality nor customer service are at issue.
I would assume that, by now, the Town through its legal counsel,
Mr. Ken Kirkman, is aware th^ there are recorded enforceable legal covenants that would prohibit
most residents firom receiving water service from a supplier other than Carolina Water Service. In
addition, we have binding le^ agreements with the Episcopal Church and several condominium
developments that require them to take water service tom either our company or its assigns for a
stipulated period of time. Mr. Kirkman is also aware of several of these agreements since he
represented our company at the time. In order to avoid any future misunderstandings of the facts, I
have enclosed a copy of the original 1966 Roosevelt agreement and correspondence with Ken Kiikman
for your verification. We have yet to receive, however, even one letter from the Town either
acknowledging or disputing this fact
Please be advised that, if the Town proceeds with engineering and construction of a parallel
water system, wr company will seek immediate legal relief to prohibit connections. In action, as a
property owner, I would personally take action against the Town for the misuse of funds. X 5Tu Siirc
that you realize the initiation of litigation would have a serious impact on the availability of financing
for the Town.
^gardless, it is my sincere desire that this matter be brought to a timely and reasonable
conclusion. Accordingly, I am willing to recommend to my Board of Directors the sale of our water
system to the Town for a price of $3,750,000.
I await your response.
Perry B. Owens
cc: B. Gallo