Newspapers / The Shore Line (Pine … / Sept. 1, 1995, edition 1 / Page 5
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Mr. David E. Hasulak Mayor Town of Pine Knoll Shores IW Municipal n^T»|e Pine Knoll Shores, NC 28512 Dear Mayor Hasulak: I received your Icitei of July 11,1995 and rcniain puzzled by dis comments and/or positions that both you and Robert Gallo have apparendy ralcen. Enforceahilitv of rnntr^,^ Olmously, we would not have referred to our “recorded enforceable legal ravenants” and *iMnding legal contracts” with numerous developers and land owners if we had not discussed these matters thoroughly with our attomeys. Many months ago, I rcceiv^ the written opinions of the Sidley & Austin and McDermott, ^^11 & Emery law firms in Chicago, as well as Hunton & Williams in Raleigh. They have advised us that the OTvenante and contracts arc clearly enforceable and would, in fa^ prohibit most customers from taking service from a compding water utility — whether private or municipal, ft is puzzlmg that the Town has still not even requested copies of all relevant agreements. . . We have bwn advised by our counsel that the .Town has the right to secure a ■j? n as to the oiforceability of all such contracts. We also realize that a final legal determination could take over thrw years and cost our company over;S250,000 m legal and court related costs. Sales Pnce of WatPT Fadlities Prior to our letter of June 30,1995, we had not given the Town a proposed sales pnce for the w^r facilities —either verbsilly or in writing. Accordingly, we do not consider the price of $3,750,000 an increase. Perhaps you are refening to previous rarrespondence and financial projecdons reflecting financial feasibilitv and coverage of a $3,500,000 bond issue by die Town. Qearly, we would like to avoid the time, effort and significant legal costs involved m protraaed legd disputes with the Town. For this reason, I am willing to recommend a reduced sales price of $3^00,000, subject to approval by our Board of Directors and the execution of a mutually acceptable purchase i^reement prior to October 1, 1995. Sayings Accniingfo the Townes Residents • insinuation that our Company is price-gouging the residents of Pine Knoll Shores is most disappointing. Our rates to the Town’s residents are higher than they would otherwise be, solely due to the North Carolina Utilities Commission’s refusal of our request to charge rates on a system-specific basis in Pine Knoll Shores. FinaHjr, I again point out that Commissioner Gallo is again quoted in the papers as stating that the Town “can offer water service to town residents at costs at least 30 percent lower than those charged by the private firm”. These statements are cleariy misleading and untrue. The ntmmi savings, assuming all of your construction and legal cost projections are accurate, would amount to a reduction of approximately 10 percent or $2 per month. We look forward to the Town’s response which should be directed to our legal counsel, Edward Hnley, Jr., Hunton & Williams, One Hanover Square, Suite 1400, Raleigh, North Carolimu 27601. Sincerely, Perry B. Owens pas cc: R. Gallo K. Kirkman E. Finley
The Shore Line (Pine Knoll Shores, N.C.)
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Sept. 1, 1995, edition 1
5
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