MEMORANDUM
To: The County of XXXX
From: XXXX
Date: ________________, XXXX
ATTENTION
This Memorandum serves as a formal notice to tThe County of XXXX (the “County”) is
reminded thatregarding the approximately 66 lots held by XXXX Properties, LLC (herein,
“Birchwood”) in the Green Spring District of Louisa County, in the resort generally referred to
as Shenandoah Crossing Country Club (herein, the “XXXX Resort”). The said lots have been
and continue to be systemically rendered at times unbuildable due to lack of sewer, in a long-
term pattern that has undermined the public’s perception, marketability, and lot values of the
HOA lots composing the private residential section of the XXXX Resort.
For reasons below, XXXX requests that the County do its due diligence in recalculating any
and all current, past, and ongoing real estate taxes regarding the approximately 66 Birchwood
lots.
Not known to Birchwood is the definitive identity of the “Sewer Owner” of the sewer treatment
facility (herein, the “STF”) in the XXXX Resort, where the Sewer Owner may be Bluegreen
Corp (herein “Bluegreen”) and/or Leisure Capital, which is a holding company used by
Bluegreen., Also, and not known to XXXX is does not know to whatever extent, if any, that
Bluegreen may own or control Leisure Capital.
The County long ago approved the subdividing of the approximately 336 residential lots in the
resort proper, a recorded subdivision represented to the public to have sewer and water. As the
County is aware, the STF issues likely date back to the days of the County’s role in approval
process of the of resort proper. There are tThree pertinent points regarding the STF in the
Bluegreen Resort: ONEFirst, the STF (its original construction), having been built prior to the
DEQ statutory exemption date for STFs in the Commonwealth, is said to be “grandfathered.”
However, TWO, the grandfather exemption is NOT a free pass for the County. The County’s
fiduciary role remains to protect consumers and the public; more specifically, an obligation to
protect the interests of the HOA lot owners in the privately owned single-family residential
section of the Bluegreen Resort. Moreover, THREE, the exemption is NOT a free pass for
Bluegreen, the Bluegreen Resort, or the Sewer Owner.
The lots were represented to have water and sewer 1 . Notably, at the time Birchwood bought the
lots, Leisure Capital represented in the HUD report to lot buyers that water and sewer were
1 Please review representations made to the County by the developer, to the public, and please review how any
subsequent developer may have taken steps to modify, undo, and replace those representations.
available to an enumerated group of lots. Birchwood then purchased 72 (currently down to 66) of
the lots two decades ago.
Please review representations made to the County by the developer. Please review
representations made by the County, in effect, to the public. Please review how any subsequent
developer may have taken steps to modify, undo, and replace those representations.
The individual who was responsible for handling the dissemination of the HUD report to lot
buyers and who oversaw many of the sales of the lots listed in the HUD report has reappeared
after over 20 years. It appears that Bluegreen has rehired the said individual as a “consultant” to
gather all the information he can in the sale of the lots to Birchwood. Birchwood has high hopes
that the result will be that Bluegreen simply buys back the lots, However, Birchwood’s concern
is the market value that Bluegreen may buy back the lots. Accordingly, Birchwood has provided
several write-ups regarding Birchwood’s experience, and has included several settlement options
in the event Bluegreen (or its Leisure Capital) is actually interested. The settlement options
suggested by Birchwood include paying damages; and buying back the lots. Birchwood still
awaits the response from the Consultant who has volunteered several times over the past months
that he would soon be submitting his findings. Interestingly, the Consultant made it clear that the
sewer treatment plant NEVER operated properly while he was involved, even though he tried to
have it fixed time and again. He further expressed his shock that the sewer issue still remained
within more than 20 years,
Representations made to the public and to HOA lot owners, including, for example, what is
generally referred to as the “HUD Report,” disseminated and presumed to have been prepared by
Leisure Capital.
That said, it appears that post-grandfathering, at the time that Bluegreen and/or the Bluegreen
Resort made application to expand, developing new corporate projects such as its RV park and
yurts, it was publicly known and known to the County was that HOA owners of unimproved lots
already had long-standing concerns about the sewer treatment plant capacity and sewer
connections., Further, where denials and equivocation in the granting of rightful connections was
impacting the buildability of subdivided, recorded lots purchased by consumers or being offered
for resale by those consumers. The most recent demonstration of this behavior is the Sewer
Owner’s requirement that HOA lot owners in selling a lot must have the new purchaser sign a
form provided by the Sewer Owner that among other things, warns that a sewer connection is not
guaranteed. (Of interest to Birchwood is the attachment, “Judge calls DR Horton ‘greedy
corporate giant’ in HOA lawsuit.”)
To further provide clarity of the subject matter herein, the following questions are crucial for the
County to answer:
1. ● Question: During the RV and yurt application process, for example, what
representations were made to the County by the Bluegreen Resort, Bluegreen, or the
Sewer Owner regarding sewer in the Bluegreen Resort in general and the HOA lots in
specific?
2. Which Bluegreen-Bluegreen Resort-Sewer Owner entity executed those representations?
3. What records does the County have of any of those Bluegreen-Bluegreen Resort-Sewer
Owner entities (as well as the County itself) interacting with other government entities
during the RV and yurt application and development process regarding such
representations?
4. At the time of the development applications, what was the status and operating record of
the STF in the Bluegreen Resort with other government agencies and departments?
5. What is that status today?
6. As part of the County’s responsibility to the public, and knowing the already-dire
situation of HOA lot owners regarding sewer, did the County condition the Bluegreen
Resort expansion requests on sewer connections to the HOA lot owners being made
immediate and upon request?
7. Whether Bluegreen, the Bluegreen Resort, or the putative Sewer Owner controls the
operation of the STF is of no concern to Birchwood. What is of concern is that it appears
that the County may have approved the applications for the development of the
Bluegreen Resort’s corporate projects without protecting the right of HOA lots to have
immediate, upon request, sewer hookups. The County’s responsibility to the HOA lot
owners was and remains paramount. This is not a DEQ issue. How did the County
address its responsibility during the abovesaid application process?
8. What requirements did it impose?
9. What representations were made to the County by the Bluegreen Resort or Bluegreen?
10. Were those representations violated?
The County understands that the STF has been replaced over the past two decades, the central
system being removed, and a new modular system said to be state-of-the-art installed. (The
County has access to the replacement records). Nonetheless, while use of the replacement STF
has enabled new corporate projects to thrive, use by private HOA lot owner applicants seeking
reasonably immediate connections has remained arbitrary, unpredictable, and injurious, all the
while as the County has taken foreclosure actions on HOA parcels for which HOA owners have
suffered the misrepresentation of sewer.
In the eyes of the public, families, and consumers, lots in the beautiful, value-added Bluegreen
Resort, with the Bluegreen Resort’s unparalleled, off-the-charts amenities available to otherwise
ordinary lots in the Louisa-Charlottesville-Richmond region, the HOA lots cannot be trusted to
have sewer connections, and lots without sewer are not building lots. In this veritable bedroom
community to Charlottesville, a lot in the Bluegreen Resort may be deemed a superb alternative,
all the more so as compared to lots in a subdivided “field.” Countering that choice have been the
long-term actions and conduct by the Sewer Owner or whoever may control the Sewer Owner,
and by whoever represented the lots as having sewer, and by the County to the extent it may
have neglected its duty.
For aforesaid reasons, XXXX requests that the County recalculates any and all current, past,
and ongoing real estate taxes regarding the approximately XXXX lots. Birchwood further
requests the County to engage and work proactively in addressing the aforesaid concerns.
● The most recent lot sales (further red flags to the County and to the public) have included lots
in the $10,000 to $15,000 range, excellent lots that absent radically skewed marketability should
arguably be selling for 10 to 15 times that amount.
● Bluegreen and its Leisure Capital can be reached in Boca Raton, XXXX
Conference Way N). Birchwood can provide specific contacts, including state and federal.
XXXX Properties, LLC
XXX, Jr, Managing member
(540) 644-1776
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