Published: June 16, 2008 09:31 am      

PK Lake lessee writes large check as interest in purchasing properties

Authority returns note as being too early in the process

By Libby Cluett
lcluett@mineralwellsindex.com

POSSUM KINGDOM - When he heard Brazos River Authority directors wanted staff to research the idea of an all-inclusive leased properties sale, Michael Patterson said that - combined with receiving his tax notice - was “the one-two punch that woke me up.”

Lessee Patterson, an attorney with Arlington-based PeirsonPatterson LLP, which specializes in preparing residential real estate documents, drafted a proposal and sent a $100,000 check to the BRA on June 2. He wrote that the check was, “evidence my intent, effort and confidence of organizing such an entity and to raise the necessary funds to organize, evaluate and bid on the BRA properties.”

Accompanying the check was an offer of $75 million “on behalf of a 'to be formed' BRA PK lessee-owned entity.”

The Staubach Report, a study presented to the BRA in April 2006, estimated the value of 2,802 leased acres and unencumbered land at $158 million to $200 million. However, they also identified that selling this in a lump sum to a third party might generate $60 million to $75 million.

Patterson's check was returned with a letter from Government and Customer Relations Manager Matt Phillips explaining, “Per board direction, staff is currently in the process of working to obtain real estate expertise to assist us in developing a global sale option package for the board's consideration. We are not currently in a position to accept bids or offers for BRA property; therefore we cannot act on your request at this time. However, we are certainly pleased with your interest and are encouraged to see a proposal that might be amenable to the lessees.”

“Some people have interpreted that the check was returned to me because there was no interest,” said Patterson, “but the attitude seems like everybody is heading in the same direction on this. I took the BRA response as positive. I'm getting a lot of cooperation from the BRA and Palo Pinto County Appraisal District.”

On Friday, Patterson sent a 15-page letter and packet of information to the 1,567 BRA lessees. In it he said, “I certainly do not want to wake up one day to find myself dealing with a hedge fund or some other distant third party regarding my lake house and its future.

“If there is a another realistic solution out there working, I will gladly step aside and assist with the effort, but until then, as an interim measure … I would like to explore the possibility of putting together a 'lender group' and an 'equity group' to become a bidder for the all the properties the BRA is putting up for sale, including those BRA assets that are subject to the BRA leases,” he said.

Patterson set up a Web site “to accommodate and encourage discussion (the good and the bad)” at www.heritagerockbuilding.com/pk.aspx. “There's a blog in there too,” he said, adding that he hopes people will show their interest by returning a survey he included in the mailing.

“I'd like everybody to look at the survey and questionnaire attached to the letter and kick the tires on it and see if it works,” he said. “I'm trying to see what people want.”

“I wish none of this was happening,” he added. “Since the BRA is apparently intent on selling the properties, it's my hope we can organize and be the purchaser.”