Gwinnett DA Danny Porter will have a Grand Jury look into four land purchases where the County purchased the land at a price higher than the County’s appraisers valued the land. Here’s a bit of the article:
The purchase of 33.2 acres south of Dacula from developer Hewatt this year stands out in a number of ways.
County officials say they bought the land to settle a lawsuit with Hewatt.
Hewatt, whose primary business is developing gas stations and convenience stores, originally wanted to build a 91-home subdivision.
But the county, led by Commissioner Beaudreau, who represents that district, voted on Nov. 18 to allow him to build only 33 homes.
Records show the county’s efforts to buy the property began the next day when it sent out a request for bids to appraise the land.
The lawsuit was filed Dec. 2, almost two weeks later.
The appraiser hired by the county estimated the land to be worth a little over $1 million. At the time, the recession was in full swing, pushing property values throughout the metro area downward.
The county appraisal didn’t sit well with Chairman Bannister.
According to Beaudreau, Bannister brought a copy of the developer’s appraisal to a closed-door commission meeting for his colleagues to consider. That one, based on 2006 land sales, was for $2.42 million.
Bannister, in an interview with the AJC, didn’t deny bringing the higher appraisal to the meeting. He said he believes it was the more accurate of the two.
The county agreed to buy the land soon after for $2.29 million — more than twice the county’s appraisal price and just under the price suggested by the developer’s appraisal.
The property will expand an adjacent 294-acre property that the county bought in 2001 but has yet to develop into a park. It is not open to the public.
Beaudreau opposed the purchase, saying the county didn’t need more undeveloped parkland there. He also questioned the use of the developer’s appraisal.
Beaudreau said he confronted Bannister about why he pushed so hard for the purchase when Beaudreau — the commissioner who represented the district — adamantly opposed it. The board usually defers to the wishes of the district commissioner in such matters.
Bannister made no apologies for championing the purchase.
“I simply replied that the entire county was my district,” said Bannister, who is elected county-wide.
Bannister says the county got a good deal.
“I believe we obtained the land at the best price negotiable,” he wrote in an e-mail to the AJC last week. “As a matter of fact other properties within the area have been purchased for more.“
“The value of a piece of property is based on what a willing seller is willing to accept and an able buyer is willing to pay. “
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Memo to Chairman Bannister about how the free market works: the value of something is set by what people are willing to pay with their own money. When government officials buy land from political cronies at inflated prices with tax dollars, it’s called government distortion of the market. Well, actually the more plain word is “corruption”… but distortion is what an economics professor might tell you.
Glad to hear that Porter is at least making noise about it… many DA’s wouldn’t. I can’t believe that Bannister hasn’t even batted an eyelash after his close call against Lorraine Green just months ago.
Kevin Kenerly isn’t getting off scot-free here….and WHEN is his next election?
I think three folks in particular should be worried; Bannister, Kenerly, and former Commissioner Lorraine Green. They were the three who pushed these four deals.
Kenerly says he’ll announce whether or not he runs again in September.
This sounds just like the land purchase State Senator Jim B. “Buyer’s Market” Butterworth orchestrated for Habersham County, one week after his election to the Georgia State Senate in August of 2008.
-Prominent local developer/seller…known to be in financial trouble…check
-Lone appraisal supplied by the seller…check.
-Paid double county-assessed value and triple area values…check
-Deal questioned by another county commissioner, now State Representative Rick Austin (Austin is the Beaudreau in the Habersham version) …check
-The single appraisal used was done by shady appraiser using questionable methods…check
This is an epidemic in north Georgia and we are all going to pay for it.
My only question is… which banks got saved in the Gwinnett County cases? This should be called…Bank bailout, Georgia style.
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