The Real Estate Adventures of City Officials are Hazardous to the Financial Well Being of Aiken’s Taxpaying Citizens
There are two groups of people that are primarily at the helm of the shipwreck that Project Pascalis has become – (1) Aiken City Council, including the mayor, and (2) members of an organization that the Council established known as the Aiken Municipal Development Commission (AMDC). These groups {“city officials”) have been freely and carelessly spending tax revenue. A particular aspect of that spending is the subject of this piece.
by Don Moniak August 6, 2022 (Updated June 29, 2025)
In September 2021 Aiken City Council approved the sale of two undeveloped parcels of city-owned property in Kalmia Hills, running adjacent to the railroad tracks on Norfolk Southern Railroad property and east of its two acre Kalmia Hills City Park. The two parcels totaled four acres and were deeded to the City by the estate of Mattie C. Hall in 1973. No land or timber appraisal was conducted and the property was not put up for bid. The property was sold to a single offeror, Scott and Adrienne Patterson. Mr. Patterson is a lawyer employed by Smith, Massey, Brodie, Guynn, and Mayes; which was also the city’s agent for the sale of the property. Aiken City Attorney Gary Smith, who is a partner in Smith, Massey et al, was responsible for the preparation and review of the ordinance and purchase and sale agreement required for approval of the sale. The city sold the properties for $150,000, and today it is divided into four lots being offered for a cumulative $700,000.
(Update: As reported in The City of Aiken’s Law Firm: “although the sale was approved in September 2021, a title dispute created by a “scrivener’s error” prevented the closing until June 2022. During that time, Mr. Patterson represented the City of Aiken in court proceedings to rectify the title situation. In June 2023, half of the property was sold for $280,000; yielding a $130,000 profit in one year; with the western two-acre parcel still on the market.)
Deja Vu All Over Again
As reported in “How Aiken City Council Got Taken to the Cleaners by the Wyatt Family,” (1) in January, 2020, Aiken City Council approved the sale of property housing its former finance and administration building at 135 Laurens St, SW and parking lot/drive-up at 130 Pendleton St, SW. The sale was a no-bid deal, pursued by the city when Weldon Wyatt’s WTC Laurens, LLC offered $1.2 million dollars. Before voting to approve the sale for the increased, negotiated price of $1.3 million, Council person Kay Brohl stated that one lesson learned was “that everything we do should go out for bids.”
A month after the deal was finalized, WTC Laurens sold the 135 Laurens St parcel to SRP Credit Union for $1.3 million. In May, 2021, WTC Laurens sold the Pendleton Street parcel to R and O, LLC (Agent: Rick Osbon) for $500,000. Mayor Osbon had recused himself during the sale process from November 2019 to January 2020 due to the proximity of his business and property to the city’s property.
Two months after the Wyatt family realized a $500,000 return on this sale at the City of Aiken’s expense, another sole offer was presented to the Aiken City Council for city property — the Mattie C. Hall parcels.
The Mattie C. Hall Parcels in Kalmia Hills
On July 12, 2021, City Manager Stuart Bedenbaugh wrote to council in a supporting memorandum:
Scott and Adrienne Patterson have approached the City about purchasing two parcels owned by the City of Aiken located on Summit Drive and Burgundy Drive. The two parcels are TPN 105-05-15-002 containing 1.9747 acres and TPN 088-08-20-001 containing 2.0348 acres.
The Pattersons intend to purchase the approximately 4 acres to construct their residence on the property. They have offered $150,000 for the property. After discussion with Parks, Recreation & Tourism Director, Jessica Campbell, we would subdivide and maintain a portion of this property for future parking for the park.
If Council approves this transaction, it is recommended by staff that the net proceeds from the sale of this property be placed into the General Fund.
For Council consideration is first reading of an ordinance to sell approximately 4 acres on Summit Drive and Burgundy Drive to Scott and Adrienne Patterson for $150,000. (1)
The two parcels are within the relatively affluent Kalmia Hills subdivision, extending from the intersection of Summit and Burgundy Drive. The western boundary and part of the northern boundary are bounded by Summit Drive. The rest of northern boundary fronts on Laurel Drive and Highland Park Avenue. All of the land is backed to the south by the railroad, with much of the terrain relatively steep. All of the land is heavily forested with a loblolly and longleaf pine overstory. The tall Kalmia shrubs that give the area its name are scattered throughout the understory.
The two Mattie C. Hall-Kalmia Hills parcels, approx. 2 acres each, sold by the City in June 2022. Click photos for larger view,
In the July 12, 2021, agenda packet was the proposed ordinance prepared and reviewed, as customary, by City Attorney Gary Smith, who is also a partner in the law firm of Smith, Massey, Brodie, Guynn, and Maynes. One of the purchasers, Scott Patterson is an attorney in the same law firm. (3) According to his Linked In profile, Mr. Patterson has been an associate lawyer at Smith, Massey et al since 2008.
Also in the July 12th agenda packet was the purchase and sale agreement (PSA), also the responsibility of the City Attorney. The PSA required a $2500 earnest deposit with the “Agent,” Smith, Massey, et al and contained the following disclosure:
(d) Disclosure Regarding Escrow Agent: Purchaser is aware that Agent serves as counsel to Seller in this and other transactions. Purchaser agrees that the duties of Agent here under are ministerial in nature and shall not disqualify Agent from representation of Seller in connection with this Agreement or any dispute that may arise hereunder.
The minutes of the July 12, 2021 public hearing (4) note that “the Pattersons had reached out to (City Manager Bedenbaugh) some time ago,” and that “the City has owned this property since the early 1970s. The deed basically says the property may be used for residential or recreational purposes.”
Mr. Bedenbaugh did not disclose that the property had been deeded to the City of Aiken by the estate of Mattie C. Hall (1885-1961). In addition to being one of the original developers of the Kalmia Hills subdivision, Mattie Chafee Hall was a prominent local citizen, antiques dealer, businesswoman and realtor who gave generously to the Aiken community throughout her life. She is perhaps best known for the million dollar trust she left to the Aiken County hospital to fund indigent patient care, her trust ultimately going to a new nursing home for Aiken County — the Mattie C. Hall Nursing Home, (now Pruitt Health) on Laurens Street North.
Specifically, the deed for the Kalmia Hill parcel from Mattie C. Hall’s estate reads:
This real estate is conveyed subject to the restrictions that same is sold for recreational use or residential use only and shall not be used for any commercial or industrial purpose.
Click image for larger view.
The only significant issue was raised beforehand by the City’s Parks and Recreation Department, which sought to keep some of the parcel to expand parking at Kalmia Hills Park. The seller and purchaser eventually agreed to the city keeping 0.12 acres for parking purposes.
No Appraisals, No Bids
Two council members spoke on the matter. Ed Woltz asked if the property had been appraised, and in response, according to the minutes:
Mr. Bedenbaugh stated it is an offer based on the value the Tax Assessor has for the property. The Tax Assessor has it valued at $120,000. The Pattersons offered more than the value listed by the Tax Assessor. He felt the offer was fair.
It is unclear where this figure derived. According to County Assessor records, the appraised property value for the easternmost property in 2020 was $80,000, which rose to $492,500 in the 2021 assessment. (5) The westernmost portion, which is narrower and steeper, has been valued by the assessor at $48,960 since 2019. (6) The rise in value of the eastern parcel may be related to the $210,000 sale in January, 2021 of a nearby 1.6 acre parcel, on Dibble Road on the south side of the Norfolk Southern property and also adjoining the tracks.
According to the meeting minutes, Council Member Ed Girardeau spoke to these higher land values, stating:
he was very familiar with the property, as he grew up in the area. He noted the best part of the property is where it is proposed to put the parking lot He pointed out that the property is very thin in the area between Laurel Drive and the railroad track. He pointed out that an area near there flooded in 1969 as there was not proper drainage in the area. He pointed out the area is in a flood zone. Mr. Bedenbaugh stated the Pattersons are aware of that. Councilman Girardeau stated he had looked at the sale of some lots in the area and some have sold for $160,000 an acre.
In spite of this knowledge that the city was selling its Mattie C. Hall gifted land at one quarter of the values he described, at less than $40,000 per acre, Girardeau made the original motion to approve the sale. Council voted unanimously to approve the sale. On September 13, 2021; Council voted unanimously again at the second and final hearing on the sale, following a motion again made by Girardeau and minimal discussion. (8)
No members of the public spoke at either meeting, and no councilmember suggested the city keep the property for recreational use to compliment adjacent Kalmia Hills Park.
The city did not close on the sale until June 23, 2022. On July 1, 2022, the properties were listed by the Carolina Real Estate Company and for sale signs were posted along their length.
While the land itself is not on the land page of the carolinacompany.com website, it is referenced in numerous real estate sites, including Zillow, Remax, Coldwell Banker, and Weichert. They all show the two properties have been further subdivided into four properties with a cumulative sale price of $700,000. (See Table 1)
Table 1: Subdividing a $150,000 sale into $700,000
Each listing states “Beautiful lot with mature trees. Build your custom dream home.”
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Investigation into the details of the sale, the property appraisal, the “flood plain” claim, and deed restriction continue.
The Aiken Chronicles appreciates citizen tips, leads and insights into investigations. Information is held in strict confidence. Appreciation is also extended to the hardworking team of proofreaders and fact-checkers.
FOR REFERENCE
(1) The Cleaners: How the Wyatt Family Took Aiken City Council to the Cleaners.
At the beginning of the April 20, 2022 public meeting on Project Pascalis, the City of Aiken’s Zoom moderator wrote:
“TRANSCRIPTS WILL BE MADE AVAILABLE AT A LATER TIME.”
Three months after these meetings, the city has still not issued transcripts, nor has it fully answered the questions posed during those meetings. A Freedom of Information Act request for transcripts, Zoom call notes, and a compilation of questions and answers yielded a fragmented YouTube transcript of the first meeting, a transcript of the second meeting devoid of public comment, and no question and answer compilation.(1)
Today, Aiken resident and concerned citizen Tori McQuinn downloaded and posted the complete You Tube transcripts from both meetings in less than ten minutes.
Ms. McQuinn’s posting of the first meeting is posted here:
The YouTube translations are of low quality and could never be used as a deposition. They illustrate how difficult it is for real court reporters to capture the essence of testimony. But in this case they are better than the promised alternative of nothing, while still serving as a repository of oral history for present and future interpretations of events.
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(1) See “When No Info is Good Info: A City Not Listening, the Aiken Antique Mall, and Newberry Hall”
On April 20, Chamber of Commerce President failed to identify himself as an AMDC Commissioner. The first public comment on Project Pascalis. Note weaker quality of the city’s transcript.
Yesterday the AMDC issued a list of “25 public meetings and hearings held on Project Pascalis over the last 24 months.” This assertion is false at worst and disingenuous at best, but that did not stop Aiken Economic Development Director Tim O’Briant from repeating this distorted reality to reporters.
Here are just a few general ways in which this document is highly misleading:
First, Project Pascalis was not publicly announced until March 18, 2021. Eight of the meetings occurred before this date. One of these merely involved a potential letter to the existing Hotel Aiken owners. Three others were workshops that discussed downtown development in general.
Second, there were no conceptual designs for Project Pascalis available for public inspection prior to March 1, 2022. Sixteen of the meetings cited by the AMDC occurred prior to this time. Of the nine meetings that have occurred since the first drawings of Project Pascalis was revealed, two of them involved a narrow ordinance pertaining only to Newberry Street; and two were mere updates as part of larger meetings.
The fact is City of Aiken agencies have held only two public meetings, both on April 20, 2022, during which the entirety of the Project Pascalis proposal was presented and discussed. The Aiken Downtown Development Association held a public workshop on June 7th that did not include the entirety of the proposal.
Most important is what meetings have not been held. As of May 9, Aiken City Council had not met as a group with the AMDC and its development team to review and discuss Project Pascalis. For a public body that intends to spend $20-25 million dollars of federal funds from the Plutonium Settlement on this project, this is a disturbing abdication of responsibilities.
The City of Aiken has also not adopted a legally binding redevelopment plan nor held a public hearing to discuss one for Project Pascalis. The July 2020 “redevelopment plan” cited by the AMDCpreceded Project Pascalis and bears no resemblance to it. It does not involve demolition, an apartment complex and garage at Newberry and Richland, a conference center on Park Avenue, or the forced relocation of eight to ten businesses. By law, that redevelopment plan must be amended or replaced, with subsequent public hearings on the updated product.
In fact, according to the minutes from May 16, 202 AMDC meeting, Tim O’Briant commented, quite appropriately:
“If this group has any thoughts about Hotel Aiken, it would be appropriate to have those discussions. Whether we come up with anything or not, we can’t really get into it if we don’t have a plan that encompasses that area.”
In other words, if part of the downtown was not in the redevelopment plan, it was not a part of the redevelopment plan. Newberry Street and the Park Avenue properties were not a part of the 2020 plan. (The AECOM plan is not a legally binding redevelopment plan, it is a well-written strategic guidance plan.)
Mayor Osbon, City Council and the City Manager should request that this highly misleading document be removed from the AMDC website. It serves no purpose other than to further inflame public opinion. In this regard, the words of Robert Stack written in a letter to the editor a week ago are even more pertinent:
““…the Four Way Test is Rotary’s unique approach and process to address conflicts, solve problems and make decisions to achieve desired outcomes and mutually beneficial solutions. That being said, the currently proposed Pascalis project has, to date, achieved the opposite effect by not being fair to all, creating bad will, stressing long-standing friendship and not being beneficial to all.”
The City of Aiken has done better than this and can do better than this.
