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Abandoned amenities leave divot in covenants
By Jessica Johnson
Contributing Writer
Hundred year oaks, sunny days by the pool and perhaps a round of golf were among the reasons King’s Grant homeowners bought property in the subdivision built in the 1970s.
They also took comfort in their continuing control in the area surrounding them through restrictions and covenants homeowners say guaranteed them amenities.
But after the 177-acre golf course was sold to T2 Green in August 2002, the golf course, swimming pool and tennis courts are no longer usable.
T2 Green sought bankruptcy in May 2005 after homeowners said they would not allow the management company to build an upscale development on the 18-hole golf course, which runs along the Ashley River. In a separate bankruptcy filing, the corporation also filed to be relieved of covenants and restrictions that homeowners said guaranteed them specific amenities.
Bankruptcy Judge John Waits ruled that homeowners were guaranteed some amenities but said whether T2 Green would be allowed to change a portion of amenities will be decided at a later date.
Lynn Whitner, president of the King’s Grant on the Ashley Homeowners Association, said she believes she sees light at the end of the tunnel.
“We’ve won the battle.” Whitner said. “We might not have won the war yet, but we’ve won the battle.”
The issue could be moot. KG Golf Acquisition has filed with the court a request to buy out T2 Green. A hearing on the proposal will be held April 13. Homeowners had also sued T2 Green in 2004 because amenities such as the pool and tennis courts were not maintained.
“Whether the lawsuit continues is up in the air,” said Mark McKnight, an attorney representing KG Golf Acquisitions. “My client is stepping into the shoes of T2 Green.”
A partner in KG Golf Acquisitions is David Mikulski, also a King’s Grant resident.
The company has offered to purchase the deed to the 177-acre course for $250,000. Another company, KG Rescue, has already acquired loans and notes held on the property. Mikulski is also part of that corporation.
T2 Green has worked out 99.9% of the details, McKnight said. Impaired creditors will be able to vote on the proposal. In the agreement, filed in the U.S. Bankruptcy Court of South Carolina, KG Golf also agrees to assume the mortgages totaling $3.2 million.
The homeowner’s association has fought with the now bankrupt T2 Green owners since they took over the property and closed the pool in 2002, Whitner said.
T2 Green left the courts and pool in poor condition, which detracted from the course, she said. T2 Green has said in bankruptcy filings that homeowners stopped using the golf course as regular members, and therefore, the company lost money.
However, KG Golf Acquisitions alleged in its filings that T2 Green ran the course with the intent of making the course bankrupt so it would be allowed to develop the riverfront property, raking in profits.
Covenants such as those held by King’s Grant can protect homeowners from future buyer’s intentions. However, it’s not uncommon for amenities to be bought and resold. Two other nearby golf courses, Coosaw Creek Country Club and the course at Legend Oak Plantations, are also on the market.
A memo from the Coosaw Creek Country Club says amenities attached to residential developments typically resell within a three-year period.
Greenwood Development Corp. announced in January that a buyer showed interest in buying the Coosaw Creek Country Club and one of the company’s other courses. Coosaw Creek members are considering buying the course rather than letting it go to a third party.
A memo sent to members said they could purchase the course for $2.5 million. An acquisitions committee formed to investigate purchasing the course. Coosaw Creek members have until May 20 to buy the club and amenities.
Unlike the King’s Grant covenant, owners of Coosaw Creek homes are obligated to hold memberships with the Coosaw Creek Country Club, guaranteeing some revenues.
Covenants for Legend Oaks Plantation say that ownership of a lot will have no bearing on interest or rights in the golf course facility, including amenities. The 1994 covenant also says the golf course and other amenities may be sold or transferred without approval of the homeowners association.
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