KINGWOOD — A year after the Waterfront Group WV LLC came to Preston County to create a high-end housing development, the company has added another civil lawsuit to the stack of actions both from it and against it.
Whether any homes have been built on the property is unclear. Preston County Assessor Connie Ervin’s office is making inquiries. She told the Preston County Commission, as it struggled to find funds when budgeting for the 2021-22 fiscal year, that she hopes growth in the area of the development will put more taxes into county coffers.
A year ago, Steve Wolford, mid-Atlantic sales director for the Waterfront Group, said 64 lots, ranging in size from two to about 20 acres, were up for sale at $30,000 to $190,000 in what the company is calling Whitewater Preserve. They expected construction on homes to begin this spring.
The Waterfront Group, based in Cornelius, North Carolina, was founded by brothers from Huntington. They also formed Waterfront Group WV LLC. According to records at the Preston County Clerk’s office, the company bought 1,806.5 acres in Pleasant and Grant districts from Allegheny Wood Products for $5,115,126.25.
The land lies “along the waters of the Big Sandy Creek, Little Sandy Creek, Laurel Run, Joe’s Run, Hazel Run, Parker Run and others, lying south of Interstate 68 on the eastern side of County Route 14/1 and both sides of County Route 14 [Mount Nebo Road].”
Most of the homes are expected to be second homes or vacation homes, with some retirement homes and full-time dwellings. The development will include parks open only to property owners. Stacked stone entrances will mark the entrances, and 20-foot gravel roads will be present throughout. Buyers were promised utilities.
The latest lawsuit, filed last month in Preston County Circuit Court, was filed by Waterfront Group WV LLC against David L. Hough and Cynthia F. Graves, and Allegheny Wood Products Inc.
“This dispute concerns a right of first refusal” of real estate, according to the lawsuit, which was filed by attorney Michael C. Cardi of Bowles Rice LLP on the company’s behalf.
According to the lawsuit, on Oct. 5, 2004, Allegheny Wood Products granted Hough and Graves first right of refusal to buy 2.98 acres in Grant District. It was part of Parcel 22 in Grant District.
On Nov. 26, 2007, Allegheny conveyed 1.15 acres of Parcel 22 to Friends of the Cheat Inc.
Hough and Graves “were also grantors in and to the Release, and thereby released their right of first refusal ‘to purchase the aforesaid parcel of land,’” according to the suit.
It was March 3, 2020, when Allegheny conveyed the more than 1,000 acres to Waterfront, which developed portions of the property. Waterfront says that one of the lots under contract was subject to the right of first refusal.
After Waterfront developed the land and sold the lot, Hough and Graves “came forward and demanded that they be sold a portion of the lot at a price calculated upon the price at which [Waterfront] purchased the AWP property.”
Hough and Graves were aware that Allegheny would only sell the 1.15 acres to Friends of the Cheat if they released their right to first refusal of the entire 2.98 acres, Waterfront alleges.
Waterfront seeks a declaratory judgment. The right of first refusal “is derogatory to Waterfront’s title and has caused it damages, including ... delayed lot sales,” Waterfront says.
No court date has been set.
Earlier lawsuits
In September, Aaron and Elvia Sanders of Virginia sued in Preston County Circuit Court and asked for a temporary restraining order to stop the sale of lot 33 at Whitewater Preserve. They alleged the company did a bait-and-switch tactic in the sale of their land. The suit is still pending.
Another couple, Caryn and Stephen Chernicky, later filed a motion to intervene in the suit, saying the Sanders’ actions restricted the closing of their purchase for the same acreage that the Sanders couple believe they purchased.
Also in September, Waterfront Group WV LLC sued DTEC Services LLC, a Kingwood firm, alleging it did not fulfill a contract to prepare the land for sale. That came a month after DTEC Services filed mechanics’ liens against Waterfront totaling $592,769.98 in the Preston County Clerk’s office for alleged nonpayment.
Waterfront deposited $620,926.55 — the total of the liens plus one year of interest at a rate of 4.75%, the rate set by statute — so that the liens could be released. This was not an admission of guilt or liability, but while the liens were in place, title insurance couldn’t be issued, according to Waterfront’s attorney. The suit is still in court.
In late 2020, Waterfront Group also sued Black Diamond Equipment, which was involved in the site prep work. That suit is also pending in Preston County Circuit Court.
Staff Writer Kathy Plum may be reached at 304-290-4805 or kplum@prestonnj.com.
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