There were more than one developers involved in early Tega Cay, more than one bankruptcies, more than one complaints or lawsuits filed by early Tega Cay residents that eventually led to municipal incorporation. Below is a newspaper article written by Kathy Doherty and published on November 5th, 1981 in the Evening Herald. The article begins with the 1981 bankruptcy trial by developer Point Wyle Company. The article also recaps a nice timeline of early Tega Cay, how it began , the changes and issues up to the point of the Tega Cay Property Owners Association petitioning for incorporation.
Evening Herald, November 5th, 1981 by Kathy Doherty – Owners of Tega Cay embarked on a homebuilding strategy in 1975. hoping to attract new residents quickly and to revive the community, according to testimony given this morning in U S Bankruptcy Court.
Nathan Shmalo. a former partner with Tega Cay Associates, now named the Point Wylie Co, was the first to testify today. Point Wylie Co. had its first chance today to offer testimony on Its motion that the bankruptcy court reject the company\’s obligation to provide recreation and utility services to all Tega Cay residents for a fixed monthly fee. Attorneys for Point Wylie Co. have not said just how those services would be provided, if the court grants the motion, but consider the sale of the water and sewer systems to be essential to reorganizing the company\’s finances.
Shmalo said the partnership invested $1.1 million in Tega Cay when it bought the development in 1975 from the bankrupt Ervin Co. the previous developer. By 1978, because of the high cost of delivering those services for a fixed monthly fee, the new owners had lost their investment and were in financial stress, Shmalo said.
Testimony will continue this afternoon The bankruptcy motion, being heard today, was filed in July. Company lawyers said approval of such a motion was necessary before the company could begin to reorganize. Some residents said the motion meant only that the company was trying to get out of its obligation to deliver what it had promised.
Today’s hearing climaxes more than a decade of controversy that started with the founding of Tega Cay in 1970 and has been marked by financial problems. bankruptcy and lawsuits.
Here’s a look at the highlights of that decade as reported in news stories and Point Wylie Co’s motion:
June 15,1970: The Ervin Co. said it would build a 1,587-acre, $24.5 million residential development on the shores of Lake Wylie that eventually would include a 36-hole golf course and swimming pools and would be home for an estimated 8,500 people. Tennis courts, pro shops, a marina, and an island of gardens and homes would only be accessible by boat. Charles C. Ervin, the developer In partnership with Crescent Land and Timber Corp . said construction had begun in May, eventually to comprise 1,500 individual homes in the $20,000 to $30,00 price range, 400 garden apartments and 250 condominiums.
June 30. 1970: The developers recorded, in Deed Book 404 In the York County courthouse, protective covenants and restrictions saying the developer would provide for property owners, for a monthly fee of $20 per lot, swimming pools, a clubhouse, tennis courts and a golf course, and, for $15 a month per lot would provide roads, water and sewer service and garbage pickup. Another contract filed in August 1971, provided for the monthly fees to be adjusted for Inflation within three years after the opening of Tega Cay.
June 29, 1971: The developer said two waterfront parks were open; stables, and riding trails were complete; other recreation facilities, including three pools, a marina and a $1.3 million clubhouse were almost complete; 19 homes were under construction and 52 more were planned. A Polynesian Theme Park with 40 resort rental homes was to be completed by August; and a boardwalk area of boutiques and shops would be ready by July.
December 1971: Crescent Land and Timber Corp. withdrew from its partnership with the Ervin Co and the Ervin Co. became sole developer and owner of Tega Cay, using the name Tega Cay Co.
Aug. 5, 1971: A complaint alleging Ervin Co. discrimination against blacks was filed in U.S. District Court The company was enjoined from discriminating In employment or housing and was told to make compensatory payments to blacks denied employment.
April 1972: Developers said 450 homesites were ready for sale in two new sections. 80 vacation homes were on the drawing board, 30 condominiums in Catamaran Village were ready for occupancy and homes worth a total of $2.8 million were under construction.
Spring 1972: Dissatisfied property owners formed the Tega Cay Property Owners Association (POA).
December 1972: Ervin told the property owners association he had spent $12 million developing Tega Cay and was heavily in debt. He said sales were down because of publicity over homeowners’ complaints. Homeowners had alleged lack of promised security, high insurance rates because of inadequate fire protection, no free lawn care as promised, lack of of a promised child care facility, use of the golf courses by non property owners and construction on land designated as park. ln June 1973: Ervin hired a new general manager, Roy Cawley. Under Cawley, lawn care was provided to those who promised It, a volunteer fire department was formed, ballfields were opened and a child care facility was planned.
Jan. 18. 1974: The Ervin Co. said a $6 million, 175-unit condominium would be completed in 18 months and $I million was to be spent on landscaping and streets to serve Tega Cay’s 250 families.
Sept 10, 1974: The company laid off 190 employees.
Oct 21, 1974: The company, unable to get financing, delayed groundbreaking on the condominiums blaming the 1974 recession for its troubles and showing a $3 million loss for the third quarter. New at Tega Cay was a second golf course and an interdenominational church.
Dec. 7, I974 Ervin Co. dismissed 41 employees, said it was writing off $14 million invested in Tega Cay and said there would be no new home construction for an indefinite period.
December, 1974: The POA sold golf coupons to raise money to cover Ervin Co expenses for the first three months of 1975. By March 1975, the POA had raised $20.000 and promised $16.000 of It to the Ervin Co.
May 21. 1975: Private firms were building 15 new homes in Tega Cay.
Aug. 27, 1975: Two women filed a $200.000 suit against the Ervin Co. claiming the company promised water, sewer and electricity service to their lot and didn’t provide it.
Christmas Eve, 1975: The Ervin Co prepared to file bankruptcy and sold Tega Cay for $14 million to a three-man partnership known as Tega Cay Associates. Terms of the agreement included assumption of a $12.1 million mortgage held by Chase Manhattan Mortgage and Real Estate Trust CMRRT, assumption of a $1 3 million note held by Crescent Land and Timber Co. and a $600,000 debt to North Carolina National Bank for homes left unsold .The new owners said they would build 2,500 new homes and complete recreation facilities and waterfront shops.
June 15, 1977: Tega Cay Associates said work on condominiums had started.
March 11, 1978: Sales of $1 million between Jan. 17 and the end of February were announced. Home prices ranged from $35,000 to $160,000.
On Aug. 14, 1978: POA sued Tega Cay Associates to block development of an acre lot designated as “green space”.
Jan. 25, 1979: POA said it would consider incorporating Tega Cay to give it more power in negotiations with Tega Cay Associates.
May 16, 1979: POA had begun negotiations with Tega Cay Associates to buy recreation facilities and utilities. The monthly assessment fee adjusted several times. stood at $65.03 a month. During 1978, Tega Cay Associates had sold 90 lots many of them to its creditors, had quit building new homes and had laid off about 20 employees.
June 26, 1979: POA again protested the selling of green space to private developers and announced an agreement in principle to buy recreation facilities.
July 16, 1979: POA said it wouldn’t buy water and sewer systems because of the cost of maintaining them. Some wells weren’t working and surface water was leaking into sewer lines, POA said.
Dec. I6, 1979: POA members voted to buy all recreation facilities from Tega Cay Associates for $3.27 million, pending approval from CMRRT, which held the mortgage on Tega Cay.
March 27. 1980: The state Department of Health and Environmental Control called a conference to discuss residents’ complaints about water and sewer system and what DHEC inspectors called operation and maintenance deficiencies in the systems. The talks were closed to the public After the talks, DHEC recommended improvements, giving Tega Cay Associates several days to consider the orders.
April 1980: A Chicago-based firm said it would consider buying Tega Cay’s water and sewer systems if the state Public Service Commission would allow monthly fees, which
now stood at $73.25 to be raised.
June 26, 1980: Tega Cay Associates had not complied with DHEC’s utility improvement list and DHEC Issued orders requiring the improvements and stopping all new building until they were made.
Aug 2, 1980: Tom Hartigan, a New York and Chicago businessman named trustee for the Tega Cay mortgage after CMRRT’s bankruptcy, asked for changes in the agreement between POA and Tega Cay Associates for POA purchase of recreation facilities.
Aug 26, 1980: DHEC threatened to sue Tega Cay Associates because utility improvements hadn’t been made.
Oct. I0, 1980: The Chicago firm said it wouldn\’t buy the utilities.
Jan. 9, 1981: DHEC filed suit against Tega Cay Associates alleging the water and sewer systems weren’t properly maintained and were inadequate to serve the more than 800 families living at Tega Cay.
Jan. 31, 1981: Point Wylie Co, the new name of Tega Cay Associates, filed for bankruptcy under chapter 11 of the U.S. bankruptcy code, asking that the firm retain control of Tega Cay as It reorganized and paid its creditors.
Feb. 27, 1981: Spratt told the bankruptcy court Point Wylie Co had to sell its utilities as part of it’s reorganization.
June 1981: POA resurrected its idea of incorporating to give it more leverage in dealing with Point Wylie Co. In August the Rock Hill City Council told POA it had no interest in annexing Tega Cay. a necessary prelude to Incorporation proceedings. In September, the Fort Mill City Council balked at P0A plans because a bout 30 families outside Tega Cay were included in proposed town limits.
Oct 4, 1981: POA. members revised incorporation plans to keep the proposed town within existing Tega Cay boundaries.
Now read the article on our history page about The Incorporation of Tega Cay
See where this story fits in the Tega Cay History Complete Timeline.
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