By GEORGE SOUTHERN
Cape Charles Wave
January 13, 2014
Anyone want to buy a lighthouse? There’s a dandy one in Bay Creek, and it just might become available at the right price.
Bay Creek LLC had the lighthouse built in 2004 as an exact replica of the Old Plantation Flats Lighthouse that until 1962 stood two miles offshore in the Chesapeake Bay. The replica rises from a lake at the perimeter of the Bayside Village development.
As part of a tentative settlement agreement, Bay Creek LLC is giving Galloway Corporation, owned by Paul Galloway, the lighthouse along with a cash payment of $450,000. The settlement agreements were made available by Bay Creek attorney Jeff Hunn after the Wave published a letter to Bay Creek property owners (click to read) from their Community Association regarding a tentative settlement on their behalf in a lawsuit brought by Galloway and others against Bay Creek LLC.
The settlement terms were not fully revealed in the letter, causing a number of Bay Creek property owners to be concerned that they could lose any future legal right to bring grievances against the Association management.
The settlement letter only stated that Galloway and his associates had agreed to pay their back Association dues. There was no mention of any benefit to Galloway, causing property owners to press for more details. When it became apparent that a number of homeowners would object to the settlement, Bay Creek’s attorney released details of the “global” settlement.
In addition to the $450,000 cash and the lighthouse coming to Galloway from Bay Creek LLC, the settlement also awards him the balance of excess proceeds from the December 2012 foreclosure sale of Aqua Restaurant, Bay Creek Marina, and related properties, which were sold to Robert Occhifinto for $4.6 million. The bank got $3.3 million, leaving $1.3 million (minus fees). Under the settlement, $260,000 will go toward infrastructure improvements in Marina Village East, $50,000 goes to Bay Creek LLC, and the rest goes to Galloway — which should be a little under $1 million. [Read more…]