BACKGROUND: A Short Primer on the Bay Creek Lawsuits
(EDITOR’S NOTE: In response to numerous questions and some misinformation, the Wave provides below a synopsis of the lawsuits concerning Bay Creek developers, the Bay Creek Community Association, and its members.)
CAPE CHARLES WAVE
January 10, 2014
The original Galloway lawsuit was filed in Virginia Beach Circuit Court on January 24, 2012, by Galloway Corporation, plaintiff against Bay Creek, LLC, defendant. Galloway complained that in 2011, Bay Creek LLC failed to honor an agreement to buy Galloway Corporation’s share of Bay Creek Marina and Resort property that Paul Galloway and Richard “Dickie” Foster held in partnership.
Paul and Robert Galloway said they stopped paying their assessments because Foster did not fulfill his purchase agreement. Bay Creek Community Association filed a collection action in Northampton County District Court after the first Galloway lawsuit. The court ruled in favor of the Association. The Galloways appealed and were required to post a bond for the amount of assessment due.
The second Galloway lawsuit, which was addressed in the “Notice of Settlement,” was entered in Virginia Beach Circuit Court June 14, 2012, with the Galloways and their companies as plaintiffs and the Bay Creek Community Association officers and Bay Creek companies as defendants. On behalf of the members of Community Association, the complaint concerned the makeup and management of the Community Association Board as well as debt collection and disclosure concerns. It went to mediation December 3-4, 2013.
The third and final Galloway lawsuit was entered in Virginia Beach Circuit Court August 23, 2012. It is almost identical to the June 14, 2012, lawsuit, except that it names only the Galloways and their companies as plaintiffs and Richard S. Foster as the defendant. It raises the same derivative counts as the second lawsuit and demands a jury trial. A footnote (page 5) says, “Plaintiff will seek to consolidate [the two cases]. . . to ensure that all parties are properly before the Court.” If the settlement is approved, this lawsuit will be dismissed as well. [Read more…]
2nd Bay Creek Letter Clarifies (?) Deadline for Response
CAPE CHARLES WAVE
January 9, 2014
The Wave published January 7 a copy of a letter mailed to Bay Creek property owners from their Community Association regarding a proposed settlement between the Association and Paul and Robert Galloway. (Click here for story.) The letter informed property owners that “All objections [to the settlement] must be received within 30 days of the date of this letter.” But the letter had no date.
A followup letter from the Community Association dated January 2 advises Association members that:
“On December 18, you were provided a Notice of Settlement pertaining to cases pending in Virginia Beach Circuit Court. Please note that any objections to the settlement must be received by the Association before January 17, 2014.” [Read more…]
Lynwood Lewis Can Thank Cheriton, Nassawadox,
and Cape Charles for Senate Lead
Lewis leads by 9 votes (Wave photo)
CAPE CHARLES WAVE
January 8, 2014
(Updated January 10 to reflect a 9-vote lead.)
Lynwood Lewis can thank Cheriton, Nassawadox, and Cape Charles for his 9-vote lead over Wayne Coleman in yesterday’s special election for State Senator. Because that’s where his percentage wins were the largest.
Lewis lost his home county of Accomack. He lost in Virginia Beach, and he lost Mathews County. His only wins were Northampton County and Norfolk.
In Norfolk he received 52% to Coleman’s 48%, but in Northampton it was a resounding 59% to 41%. [Read more…]
Bay Creek Lawsuit Settlement Terms Questioned
Click above to read the Notice of Settlement sent to Bay Creek property owners.
By DORIE SOUTHERN
Cape Charles Wave
January 7, 2014
Bay Creek property owners were sent a letter (click to read) last month from the Bay Creek Community Association informing them that a mediated settlement agreement has been reached to the lawsuit brought against the Community Association management and Bay Creek companies by Paul and Robert Galloway and their companies.
No property or homeowner should accept this settlement based on blind faith . . . . JOHN C. BOYTOS (Click to read full statement)
The terms of the settlement agreement were only partially revealed in the letter. The Class “A” Unit owners were told that they could object to the settlement and dismissal of the derivative counts by contacting the attorney for the Association.
The lawsuit raises derivative counts concerning the management of the Bay Creek Community Association including the constitution of its Board, its organization, breaches of the declaration and by-laws, breaches of fiduciary duties and loyalty, breach of Declarant Assessments, failure to complete and to maintain common areas, failure to exercise good judgment, violation of Fair Debt Collection Practice Act, and Violation of the Interstate Land Sales Full Disclosure Act. [Read more…]
New Town Website Looks Great but Erases History
Official Town of Cape Charles website got a makeover for 2014, which included deletion of some important Town documents as well as some “dirty laundry.”
By GEORGE SOUTHERN
Cape Charles Wave
January 6, 2014
(EDITOR’S NOTE: This story was updated at 12:15 p.m. today to reflect that the Comprehensive Plan and one of the six Annexation Agreement documents may be found on the new Town website.)
The Town of Cape Charles has ushered in the new year with an impressive-looking new face to the Town’s website (capecharles.org). At first glance, the new design looks a lot like the Cape Charles by the Bay tourism website, which launched last year. Both websites feature alternating scenic photos on the home page.
On the Town website, five drop-down tabs across the top of the page display links to information such as tax rates, a list of Town departments, and forms — for example, to apply for permission to hold a yard sale.
One tangible improvement over the old website is a staff directory of every Town employee, shown by department. (Although one longtime member of the waterworks staff is missing — an apparent oversight.)
But while the website includes a lot of information previously not posted, it also leaves out some crucial information and documents that previously were available. Previously the Town website posted the 1991 Annexation Agreements between the County, the Town, Bayshore Concrete, and most importantly, Brown & Root, initiator of the development that later became Bay Creek. These documents form the basis for the legal argument that the Bay Creek South developer, Baymark, is responsible for sharing the cost of the expanded Town sewer system. As the Wave has documented, the Town demanded payment by Baymark several times, but ceased its demands around the time that then-Baymark official Steve Bennett was elected to Town Council. [Read more…]
Still No Police Chief — Maybe Monday?
Sgt. Jim Pruitt
UPDATE: Just before noon today (Friday), the Wave was notified by Town Hall that Sgt. Pruitt informed Town Manager Heather Arcos late yesterday afternoon that he would accept the position of police chief. The effective date is Tuesday, January 7.
CAPE CHARLES WAVE
January 3, 2014
Cape Charles Chief of Police Charles “Sambo” Brown retired December 31. Two weeks earlier, on December 16, Cape Charles Town Council appointed Sgt. Jim Pruitt to replace him — “with caveats.”
The appointment was made in open session, as required by state law, but the “caveats” were not disclosed. Nor, apparently, had they been discussed with Pruitt, who almost two weeks later has still not accepted the appointment.
When asked yesterday if the Town had appointed a police chief, Town Clerk Libby Hume said “not yet — he [Pruitt] needs to sign the papers but he’s on vacation.” She said she expects that Pruitt will come in on Monday to sign the papers.
Asked if anyone was serving as interim chief in the meantime, Hume said, “not so far as I know.” [Read more…]
Model Revealed for Waterman’s Memorial at Town Harbor
Memorial would be in parking lot in front of Shanty Restaurant. After the above model was built, the format was changed to be circular rather than a rectangle.
CAPE CHARLES WAVE
January 2, 2014
The model depicted above of a Waterman’s Memorial proposed for the parking lot in front of the Shanty Restaurant at the Town Harbor has been submitted to Town authorities. After the model was built, plans were modified from a rectangular layout to a circular one.
According to Virginia Waterman’s Memorial President Edward L. Lewis, the memorial will contain three elements inside a 38-foot diameter circle:
— A bronze statue of a young boy standing beside an empty pair of boots;
— A 16-foot-tall replica of the Cape Charles Lighthouse; and
— A three-section black granite wall displaying the name of the memorial and, on the back side, the names of all lost watermen from the State of Virginia.
The Cape Charles Harbor Area Review Board meets today (January 2) at 6 p.m. at Town Hall to decide whether to issue a Certificate of Appropriateness for the plans. The meeting is open to the public, but there is no provision for comments. [Read more…]
HOOPS: Town Taketh Away but the Lord Giveth
Local youths take advantage of the Baptist Church basketball court on the last day of 2013. (Wave photo)
By GEORGE SOUTHERN
Cape Charles Wave
January 1, 2014
Here’s some good news to start off the New Year: Thanks to Cape Charles Baptist Church, local youths’ prayers have been answered — there is now a place in town to shoot hoops.
The church has installed two temporary-type goals on an asphalt pad beside the church edifice. While not offering regulation play, it’s a lot better than nothing, and nobody is complaining.
The Town had been hoop-less since December 26, 2012, when Assistant Town Manager Bob Panek gave orders to Town maintenance workers to remove the hoops and backboards at the Central Park basketball court. The court no longer belonged to the Town, having been sold along with the former Cape Charles High School building to real estate developer J. David McCormack a few days earlier for the price of $10. The terms of sale did not give the Town rights to the basketball goals, but McCormack clearly did not mind that the Town took them down at taxpayers’ expense. [Read more…]
