Wednesday, April 4, 2012

Stennis Study Of The PRVWSD Part 4

Continuation of excerpts from the Stennis Report  - details here:

The Pearl River Valley Water Supply District:
An Overview For Decision Makers
The John C. Stennis Institute of Government
Mississippi State University

Pages 12 through 14
Link to full report HERE
Previous section HERE

Bottom of Page 12

In compliance with state law, the District procured contracts with real estate consultants without advertising or competitive bid; beginning in 1985, contracts by state agencies for

Page 13

consulting services have been required to be reviewed and approved by the State Personnel Director prior to the disbursement of funds (MS Code § 25-9-107). From 1986 through June 1992, all District contracts with real estate consultants were reviewed and approved by the State Personnel Director. In June, 1992, the State Personnel Director, Dr. Robert L. Robinson, and its board members disapproved the District’s contract with H.C. Bailey Management Company, stating: “A review of job descriptions for positions within your agency indicates that there are personnel available who could be assigned to provide the services to be rendered by Bailey Management Company as indicated in the contractual services agreement.” The State Personnel Director and board members subsequently reversed this decision, and on March 24,1993 approved a new contract between Eastover Realty Corporation and the Pearl River Valley Water Supply District.

In November 1964, the District’s first offering of sites for lease and development was for a lease to Lakeview Marina, Inc. to operate a Marina on the Rankin County side of the lake and a lease with the Jackson Yacht Club on the Madison County shore just above the main dam.

The first single family lots were offered by the District in April 1965 in the Bay Park, Turtle Creek, and Lake Harbor Subdivisions. At this time, residential lots offered by the District were not developed, they were offered with staked corners and rough graded streets with the District contractually bound to complete the streets and utility service after a sufficient number of lots had been leased and economic justification existed to complete development. Early leases during this period stipulated “the Lessor has agreed to make water and sewerage utilities available to said lot and hard surface the street in front of said lot. The beginning term and effective rental shall be adjusted to the date the sewerage and water line are made available to said lot and ready for use.” By the end of 1965, 115 lots had been leased and development began on the first single family residential developments. Lots were marketed and leased individually.
Undeveloped lots were offered in 1966, 1967, and 1968 with the addition of Forest Point, Arrowhead Point, Twin Harbor, and Tavern Hill.

According to a June 1992, New Board Member Orientation document, the initial offering

Page 14

price and annual rentals for residential developments were:

Subdivision          Development Fund       Annual Rental

Bay Park
Waterfront               $3,750                 $360
Other                    $1,950                 $120

Turtle Creek
Waterfront               $3,200                 $360
Other                    $1,600              $84 ‐ $120

Lake Harbor
Waterfront               $1,300                 $150
Other                      $790                  $75

Forest Point
Waterfront               $3,750                 $360
Other                    $1,800                 $120

Arrowhead Point
Waterfront             $4,500 ‐ $6,850      $600 ‐ $1,650
Other                    $2,900                 $420

Tavern Hill        
Waterfront             $7,500 ‐ $15,000     $900 ‐ $1,650
Other                    $3,750                 $360
Source: Pearl River Valley Water Supply District, Real Estate Consultant Summary for New Member Orientation, June 3, 1992.

In 1965, there were 115 lots leased and in 1966, 194 lots were leased. A commission of 7.5 percent was paid on leases; of this amount, five percent was as a selling fee and two and one-half percent was paid as a managing fee.

In 1969, FHA and VA approved the Pelahatchie Bay subdivisions, thereby easing
financing and increasing market acceptance of the District’s residential developments. At the end of 1969, lots in the Bay Park, Turtle Creek, and Forest Point subdivisions had been almost completely sold and a total of 483 of the 534 residential lots offered for development by the District had been leased.

From 1970 through 1978, additional single family lots were developed in Audubon Point, Audubon Point part II, Glen Cove, Harbor View, Pelahatchie Woods, Sunrise Point, Paradise Point, and an additional 143 interior lots in Forest Point. Starting in 1972 with 143 additional interior lots in Forest Point, demand for residential lots exceeded the pace with which the District could develop residential lots.

The Rez News
Barnett Reservoir

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