The affordable housing project slated for the old Bailey Street School property has been terminated.
The unanimous decision rendered by Waycross Ware County Land Bank Authority (WWLBA) came during a Wednesday, December 18 monthly meeting.
The Bailey Street Redevelopment Project proposed by Legacy Ventures, USA (aka Legacy Ventures, DC Corp and Legacy Ventures, LLC) Founder/Chief Executive Officer Lenwood Coleman was to have brought 16 new affordable single family owner occupied homes to the area.
“The board’s reason to terminate was for unreasonable delays and failure to provide obligations of the contract,” wrote Land Bank Executive Director Marc Hawkins in a Friday, December 20 email. “The land will revert back to the Land Bank.”
Some of the delays were out of Coleman’s hands while others were not.
The original August 2023 application made to the WWLBA by Legacy Ventures included the Rev. Fer-Rell Malone and his company FRESH, and relied heavily on the experience and personnel of TYCO Construction and Industrial Services, Inc. functioning as general contractor.
Coleman stated at the December 18 meeting one of the delays was caused by a request Legacy Ventures not have a joint venture with FRESH and “not to let their brand be beside ours. We honored it, but it meant losing $450,000. And, we had to cut away from the contractor after we did our due diligence. That was another delay.” Coleman is referring to $450,000 he says FRESH promised to bring to the venture. Coleman also falsely claims the licensing of TYCO Construction was found to be subpar to that of Horace Taylor, the contractor hired to replace TYCO.
“We did not know the relationship of what FRESH had done with this city,” continued Coleman. “We were informed after you all approved us to have the land and we took the appropriate steps.”
Coleman did not say who had made the allegations regarding FRESH.
A large cause for delays was due to the delay in the release of funds from the government.
Before demolition of the Bailey Street School building can begin, asbestos abatement must be completed.
Coleman applied for and received $500,000 grant from the Southeast Crescent Regional Commission (SCRC) for asbestos remediation and demolition. The SCRCC warned Coleman no abatement or groundbreaking could begin until the grant monies were officially dispersed or he risked forfeiture.
Because of disbursement delays Coleman asked for and was granted several extensions from the WWLBA.
The funding was officially approved July 17, 2024 and the notice to proceed was issued October 30, 2024.
A November 20, 2024 email from Hawkins confirmed Legacy Ventures had submitted Abeska Remediation of Lawrenceville for asbestos abatement and Masterful Enterprise for demolition despite months of assuring the WWLBA local contractors would be hired.
In another email dated November 27, Hawkins stated Legacy Ventures submitted a demolition permit, but the permit could not be issued until a letter of asbestos abatement clearance was submitted.
As of the December 18 meeting, a clearance letter had not been submitted.
A November 21, 2024 letter to Coleman from WWLBA Attorney Huey Spearman wrote the original time table for the project required Legacy Ventures to “have completed 3-4 houses by May, 2024, including infrastructure and construction” followed by “3-4 more houses by September, 2024, including infrastructure and construction, for a total of 6-10 houses.”
The total cost of the project was projected to be $5,831,4000, according to Spearman’s letter specifically requesting written financial assurances beyond the $500,000 grant money being provided to the WWLBA prior to the December 18 meeting.
Over the past 17 months, Coleman has appeared before the city commission requesting Waycross partner with Legacy Ventures and underwrite expenses ranging from paving and curb and gutter, infrastructure, to rodent removal.
He also requested $900,000 in Special Purpose Local Option Sale Tax (SPLOST) funding for the project.
“SPLOST funds cannot be diverted for purposes not stated on the ballot at the time of the referendum,” stated Spearman.
In the November 21, 2024 letter, Spearman outlined the WWLBA’s concerns.
“The WWLBA deems itself insecure at this juncture with your ability to perform your obligations under the contract goingforward. Furthermore, the WWLBA does not want to see your project partially started, and abruptly stopped, due to lack of funding to continue.”
In addition to concerns about funding, there is a $15,000 lien on the property filed October 11, 2023 by TYCO Construction & Industrial Services, Inc.
“The existence of a lien against the property even before you get started is very concerning to the WWLBA Board and suggests potential management problems with future vendors and contractors for a project of this size,” wrote Spearman in the November 21, 2024 letter.
“It’s a frivolous lien,” said Coleman at the December 18, 2024 meeting. “We have no problem putting $15,000 in escrow until this project is done. We’re taking them to court. There is no contract with TYCO Construction, never was. He’s claiming consulting fees. The chances of him getting two cents from us is almost absurd. We are not paying them $15,000 unless the Superior Court says so.” The letter of termination was sent December 23.
“You failed to produce written documentation of where the additional funding will come from to finance and complete the project as specifically demanded in my letter of November 21, 2024,” wrote Spearman.
“Instead, you have continued to make unverified oral representations of support that you allegedly have from certain individuals and financial institutions without any written evidence of financial commitment to Legacy Ventures, and the project.”
