Tag Archives: WTC Investments

City Government, July 2022, Project Pascalis 2022

The Cleaners: How Aiken City Council Got Taken to the Cleaners by the Wyatt Family

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by Don Moniak
Originally published July 21, 2022
Updated April 13, and April 15, 2023

(Update 4/13/23: Mayor Rick Osbon did recuse himself from the proceedings of the sale of the City of Aiken’s Laurens Street Building. Not known at the time was that this recusal was recommended by the State Ethics Commission in response to a request for an information opinion from City Attorney Gary Smith. In the response, found here, the Ethics Commission wrote:

“Here, it is the opinion of Commission staff that the Council Member has an economic interest in the sale of the property because the value of his property would increase by more than fifty (50) dollars if the property is sold….Accordingly, it is staff’s opinion that the Council Member should recuse himself from voting on the sale of the property.”

Summary

In early 2020 the City of Aiken sold property located at 135 Laurens Street SW and 130 Pendleton Street SW to WTC Laurens, LLC,(agent: Thomas Goforth) for $1.3 million. WTC Laurens, LLC is a firm owned by local investor and developer Weldon Wyatt and managed by his son, Attorney Tom Wyatt. In April of 2020, WTC Laurens, LLC sold half of the property for $1.3 million to SRP Credit Union; and in May 2021 sold the remaining parcel to R and O LLC (Agent Rick Osbon) for $500,000. 

This is the story of how the transaction proceeded, all but one city council member defied good advice from knowledgeable citizens, and Weldon Wyatt managed to turn a half million dollar profit at the city’s expense in just over a year’s time. 

The Finance Building

In December, 2011 the City of Aiken purchased the former First Citizens Bank and Trust property for $735,000. The 0.63 acre property was composed of two parcels, the two story building at 135 Laurens Street and a parking lot with a drive through outbuilding at 130 Pendleton ST, SW.  (see inset) 

The City then spent just over $900,000 on renovations and improvements to the building, which had sat vacant for six years. By the time finance and administration offices were moved into the building in January, 2013, the total investment was more than $1.6 million. Other departments remained at the old municipal building at 214 Park Ave, West. 

In 2017 the city embarked on the controversial “Downtown Renaissance” effort. A proposal to consolidate city offices into one location was in the works, although the specifics were not yet planned. According to a question and answer on the Renaissance, “The hope is to recoup much of the investment in 135 Laurens as possible through its sale to the private sector and to proceed with the original plan voters were briefed on prior to the 2010 vote.” The appraised value of the Finance Building at that time was $1.04 million. (1) 

The Wyatt Offer

Although the “Downtown Renaissance” failed to proceed, the city moved forward with plans to consolidate, and continued to receive offers for the 135 Laurens St. complex. First a plan to expand the municipal building at 214 Park Avenue emerged, but was dismissed due to costs and lack of feasibility.  That was followed by a final plan to purchase and renovate the former Henderson Hotel (most recently a Regions Bank Building) and consolidate into a new City Hall. (2)

In mid October, 2019 WTC Laurens, LLC, a Wyatt family firm, approached the City of Aiken with a $1.2 million offer on the property. At the time the Wyatt family’s WTC Investments, LLC (agent Ray Massey) was seeking final rezoning approval from city council to allow the demolition of the historic Aiken hospital at 828 Richland Ave, E; and convert the surrounding nine acre property to a complex of apartments, 100-room hotel, conference center, and parking garage. This plan was deemed by Tom Wyatt as a “home run for the city.” (3)

This was not the Wyatt’s first offer to buy 135 Laurens St property, and undisclosed offers from other parties had also been made. To prepare for a probable sale, the city had procured J. Marshall Vann of Vann Appraisal Services, Inc. of Augusta, GA in 2019 to conduct a new appraisal of the property. Vann had nearly forty years of real estate experience and been licensed by the State of South Carolina since 1993.  He submitted his appraisal of the property on September 23, 2019, delivering a bottom line “fee simple ‘as is’” $1.3 million appraisal of the property. (4) 

Photos courtesy of Terry Cooper
The building and parking lot in the parcel at 135 Laurens St SW and 130 Pendleton St SW

Vann described the building as “well maintained” and in good condition. His comparison to other sales included the Wells Fargo Building at 111 Laurens Street, which had sold for $750,000 in 2018 to another Wyatt family firm, WTC of Aiken, LLC (agent: Ray Massey). The Wells Fargo property was also divided into two properties and also occupied two-thirds of an acre. That property sold at a considerably lower per square foot value than six other area properties analyzed. 

Discussion and Advice: The First Hearing

Note: Text in bold print below is sourced from meeting minutes.

City Council held its first hearing on the proposed sale at its November 25, 2019 public meeting. City Attorney Gary Smith announced Mayor Rick Osbon was recusing himself from participating in any discussions or votes, because: 

“Mayor Osbon’s family operates the business which is located adjacent to the building that is being considered for sale. He is recusing himself to avoid the appearance of any impropriety that may be involved in the transaction since he owns property adjacent to 135 Laurens Street SW,” 

According to meeting agenda and minutes (5), the key issues included the possible future value of the property, selling below both the appraisal value and investment costs, the lack of additonal bids, and the possibility of paying rent if plans to move into a new, consolidated City Hall were delayed by more than two years. In regard to the prospect of paying future rent, the City Manager’s supporting memorandum read: 

“Until that time or any time earlier when the City is ready to relocate to the Chesterfield Street building, the City will continue to own the building. Should the City not be ready to move into the new building rent would need to be paid beginning February 1, 2022 to WTC Laurens, LLC.” 

During the meeting, Dr. Rocky Napier of Aiken asked about the city’s investment to date. City Manager Stuart Mr. Bedenbaugh responded that, between the 2011 purchase and subsequent improvements, the City “has $1,655,678 in the building,” and admitted the city “has put more money in the building than the appraised value.” 

Dr. Napier raised concerns about the lack of specificity in the rental agreement,  recommended the city not rely upon a single bid:

“Dr. Napier stated he would suggest since the Aiken City Council is stressed for funding to meet current obligations,that it put this property out for bid and see what the market will bear rather than taking at least a $100,000 loss on the front end of this agreement without getting any detailed due diligence as it relates to a transaction of this magnitude.” 

Councilperson Kay Brohl, who was newly installed, spoke in favor of the sale after asking a series of questions about the Chesterfield Street building: 

“Councilwoman Brohl stated she felt the proposal to sell the Laurens Street property is good because she feels the City owns too much real estate. She did not feel it is a healthy thing for a city to be in the real estate business, because the property is not on the tax rolls and not bringing in tax revenue for the city. She felt it is better not to have a huge inventory of real estate. She said she just wanted to be sure that we are doing the best for Aiken.” 

Councilman Ed Girardeau also advocated for the sale on the basis of future uncertainty, stating he had “been a real estate appraiser for 35 years” and “was certified to review the appraisal.” However, he offered no insights on the appraisal other than “he did study” it; and proceeded to state: 

“He said in his opinion we have already agreed we are going to buy another building and renovate it. He said theoffer to purchase the Laurens Street building is sort of a ‘bird in hand as to two in the bush.’ The risk we take is if we don’t agree to the sale of the Laurens Street building now, and we go forward who knows what will happen in two years. It may be worth more, or it may be worth less. It may not even be marketable.” 

Councilman Ed Woltz provided the lone council dissent. He raised numerous issues associated with the prospect of future rent, accepting a sole bid, the uncertainties surrounding the proposed consolidation, and the lack of specifics in the purchase contract: 

“He felt we are doing this too quickly. He pointed out that we are not paying rent now, so talking about not being charged rent is a ridiculous comment…. We would be entering into an agreement to sell something and then hope everything else works out well. We don’t know what our rent will be if we get stuck there.” 

The “Two Year Plan:” Weldon Wyatt Makes His Case

The issue was important enough to discuss at a work session before holding the required second hearing and final vote. Council met for a work session prior to its December 9, 2019 meeting.  Mayor Osbon recused himself from the discussions again. 

Attending the work session was Weldon Wyatt. who described a two year plan for his proposed investment. According to the minutes (6)  the “only comment he had” was an assertion of a two year plan for the property: 

“They are looking at something two years out, and they do not know what will happen in two years, but they are willing to take that risk…He said he would not be looking at buying it if he didn’t think they could use it, but they do not know what they would use it for right now. He noted that he had bought the Wells Fargo property for$750,000, and does not have a use for it at this time. He said when looking at something two years out, it is difficult to figure out what you will do with it. He said he could not do anything with it for two years.” 

He further made his case by stating “They have been around Aiken a long time; Council knows what he does and what he has done,” that “it is hard to imagine what the building will be worth in two years. It could be more or less. He said what he was agreeing to pay is something they are putting their faith in Aiken that it will be worth the $1.2 million two years from now.” 

A few councilmembers sounded very deferential to Mr. Wyatt, with Mayor Pro Tem Lessie Price stating “Mr. Wyatt has been very considerate,” and that “Council appreciates the patience of WTC Laurens, LLC.” Council person Kay Brohl stated that “she knows WTC does good work,” while claiming “Council has not had a good track record with property.” 

No record of any challenge or questions regarding Mr. Wyatt’s offer were recorded. 

The City Sells Its Finance Building 

On Sunday, January 12, 2020, The Wyatt family abruptly, and without a stated reason, exited its contract with Aiken County to purchase the old hospital, and the Wyatt’s “home run” proposal to reinvigorate the West entrance to the historic district ended. 

The next day Aiken City Council proceeded with its second hearing to sell 135 Laurens Street to a family that had the day before cancelled a major project that had consumed hundreds of hours of county and city time. The meeting minutes provide no indication of knowledge or concern for this development. 

The January 13th meeting was dominated by an annexation and apartment complex proposal on Owens Street off Daugherty Road. Another hearing with high interest involved the million dollar subsidy to the Steeplechase Foundation to purchase a new property. By the time the Finance Building reading arrived, only two citizens rose to speak. 

The sale price was now at $1.3 million, matching the appraisal value. The same key issues raised during the first hearing lingered into this second reading. Mayor Osbon again recused himself from the discussion and vote. 

Dr. Rocky Napier reappeared and repeated his numerous concerns and questions. The answer to his first question, was WTC Laurens, LLC registered with the state of South Carolina, was a sure sign that City Council was underprepared to handle all the sale issues. The answer from City Attorney Gary Smith was uninspiring: 

“Mr. Gary Smith, City Attorney, stated he could not answer that question at this time. Before any transaction is made with him,the closing attorney would confirm their existence before closing takes place.” 

(Update, 4/15/22: WTC Laurens, LLC incorporation date is shown as March 9, 2020 on the SC Secretary of State’s website, so it was not yet registered with the State of SC. The closing attorney for the sale was Mary O. Guynn, Mr. Smith’s law partner).

Napier went on for another eight minutes with questions and concerns, most of which the city could not fully answer. Among the issues was the presence of a concept plan for future use of the property. WTC’s representative stated there was no concept plan yet, this was “just a year end investment opportunity.” 

Adding to Dr. Napier’s concerns was Dr. Taylor Garnett, a long time downtown landlord and investor. According to the meeting minutes, he touched on every key issue: 

“Mr. Garnett said he did not feel that it was done in a very business-like manner. It should have been presented to the public and advertised for sale. He said he did not like taking the first buyer coming down the pipe. He said he did not think there was a solid plan for the Chesterfield Street building….there should not be a big rush to sell the Laurens Street building and worry about rent, late payment clauses, upkeep and maintenance, etc. It needs to be presented to the public. There could be a buyer out there who would pay more than$1.3 million for it. He said he understands the city has between$1.7 and $1.8 million in the Laurens Street building. If we take $1.2 million, we leave $500,000 on the table. He said he felt we need to back up. It needs to be done in a business-like manner.” (7)

Once again, Ed Woltz offered the only objections from Council, stating he “was opposed to the sale because it is a bad time and not in the best interest of the City.”

Councilperson Brohl admitted to a lesson learned, “that everything we do should go out for bids,” and then offered a motion to approve and voted with the 5-1 majority to approve the sale. 

According to county records the sale to the Wyatts was finalized on March 26, 2020. Five days later Weldon Wyatt’s “two year plan” for the property ended.  (Updated 4/15/23 to change “less than one month later to “Five days later” and March 9, 2020 to March 26, 2020)

Acccording to Aiken County records, on April 1st, 2020, WTC Laurens, LLC sold 135 Laurens St., SW to SRP Credit Union for $1.3 million, but retained the parking lot at 130 Pendleton St, SW.  (Update 4/15/23: The closing attorney for the sale was City Attorney Law Partner Mary Guynn).

The unexpected sale to SRP Credit Union also cost the city at least $15,000 in moving costs when the finance department and city manager’s office temporarily relocated back to 214 Park Avenue, West in June of 2020. SRP Credit Union opened its new branch on November 20, 2020. 

Dr. Napier’s and Dr. Garnett’s assessment that a higher value for the property was likely and imminent proved to be accurate. WTC Laurens, LLC would, in essence, realize a profit of  $500,000 on the 130 Pendleton Street parking lot adjacent to Osbon Dry Cleaners.

Just over a year later WTC Laurens, LLC sold the 130 Pendleton St parking lot property. 

On May 27, 2021 R and O, LLC (agent/owner: Rick Osbon) purchased for $500,000 the 0.37 acre property adjacent to Osbon Dry Cleaners. The closing signature is Weldon Wyatt, who had departed from another major development earlier that month, the nascent Project Pascalis, after signing contracts to purchase more than two acres of downtown property for $9.5 million. 

(Update 4/15/23: Earlier in the month, on March 3, 2021, Mayor Rick Osbon had met with Weldon Wyatt and a hotel developer on another matter: the future of the Project Pascalis properties for which Mr. Wyatt had two contracts to purchase involving $135,000 in earnest money held in an escrow account by the law firm of Smith, Massey, Brodie, Guynn, and Mayes. The meeting was documented in a May 4, 2021 memo by Aiken Economic Development Director Tim O’Briant (excerpt below)

Conclusion

This story provides another example of Aiken city government officials making major financial decisions, involving large sums of taxpayer money, without a competitive bidding system. City Council disregarded the advice of knowledgable citizens looking out for the common good by insisting the city adhere to accepted and proven policies and procedures. 

Yet, a year later the city embarked down an even more expensive road called Project Pascalis, even teaming up with the same developer who had burned them on the old hospital redevelopment and took them to the cleaners on the Finance Building. 

_____________________

(1) https://www.cityofaikensc.gov/aiken-revitalization-project/

(2) Between land and improvements, the City of Aiken eventually spent $11.1 million on the Chesterfield St property; officially purchasing it from the Aiken Public Facilities Corporation on December 12, 2021. The move was completed in June of 2022. 

https://qpublic.schneidercorp.com/Application.aspx?AppID=844&LayerID=15264&PageTypeID=4&PageID=6879&KeyValue=121-21-05-002

(3) https://aikenchronicles.com/2022/06/21/project-pascalis-and-the-wyatt-factor/

(4) “AN APPRAISAL REPORT of a Municipal Building Located at135 Laurens Street SW & 130 Pendleton Street SW Aiken County
Aiken, South Carolina 29801.” September 13, 2021. 

J.Marshall Vann, MAI, SRA
Vann Appraisal Services, Inc. 

(5) November 25, 2019 Meeting Agenda: Pages 62-67

https://edoc.cityofaikensc.gov/WebLink/DocView.aspx?id=479198&dbid=0&repo=City-of-Aiken-LF

November 25, 2019 Meeting Minutes. 

https://edoc.cityofaikensc.gov/WebLink/DocView.aspx?id=481204&dbid=0&repo=City-of-Aiken-LF

(6) December 9, 2019 Work Session Minutes: 

https://edoc.cityofaikensc.gov/WebLink/DocView.aspx?id=483154&dbid=0&repo=City-of-Aiken-LF

(7) City Council meeting minutes for 1/13/20 

https://edoc.cityofaikensc.gov/WebLink/DocView.aspx?id=487473&dbid=0&repo=City-of-Aiken-LF

Inset: 

The Finance Building 

135 Laurens Street SW

County ID 105-28-030-012

0.26 Acres

Two story, 8,149 square foot building with 4, 197 square feet of “partially finished basement area” 

https://qpublic.schneidercorp.com/Application.aspx?AppID=844&LayerID=15264&PageTypeID=4&PageID=6879&Q=1513268534&KeyValue=105-28-03-012

The Parking Lot 

130 Pendleton Street SW 

0.37 acres

County ID 105-28-030-013

25 space parking area with a drive through

https://qpublic.schneidercorp.com/Application.aspx?AppID=844&LayerID=15264&PageTypeID=4&PageID=6879&Q=1356400372&KeyValue=105-28-03-013

130 Pendleton Street SW 

0.37 acres

County ID 105- 28- 03- 013 

25 space parking area with a drive through

(1) https://qpublic.schneidercorp.com/Application.aspx?AppID=844&LayerID=15264&PageTypeID=4&PageID=6879&Q=1513268534&KeyValue=105-28-03-012

(2) https://qpublic.schneidercorp.com/Application.aspx?AppID=844&LayerID=15264&PageTypeID=4&PageID=6879&Q=1356400372&KeyValue=105-28-03-013

Alley Series, July 2022, Project Pascalis 2022

Project Pascalis Includes the Alley (A Three Part Series): Part One

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The Wyatt-Boudreaux Agreement

Recently obtained documents confirm the evolution of the $75-100 million downtown demolition and reconstruction effort known as Project Pascalis. While one of the earliest project descriptions indicated a greater presence on Laurens Street, every conceptual design from the early days includes substantial development in The Alley, and an absence of options for renovating historic buildings such as the Hotel Aiken. 

Today, The Alley is in the midst of the project area, yet city officials have denied or downplayed any plans that may impact the popular gathering area and its businesses, just as officials withheld conceptual designs from 2021—just four years removed from the multi-million dollar renovation that disrupted local businesses for more than a year. 

For example, at the Aiken Municipal Development Commission’s (AMDC) April 20, 2022 public “design review” meeting, the following submitted question was read aloud by the meeting’s Zoom moderator: 

How much more will the Project Pascalis footprint grow? In 2020 downtown redevelopment only included properties fronting Richland and the new municipal building. The most recent online map includes Newberry. Now with the addition of the (old) Municipal building the project (area) has grown threefold and an (private) ownership island occupies the middle. Are there any plans for this existing private property?

The answer from AMDC executive director and meeting moderator Tim O’Briant was: “there are none.” (1) 

One of the earliest Project Pascalis documents is the Wyatt-Boudreaux Group letter of  agreement, recently obtained from the City of Aiken via a Freedom of Information Act request. 

Wyatt-Boudreaux Group Letter of AgreementDownload

On March 12, 2021 Boudreaux Group of Columbia President Heather Mitchell signed an agreement to complete  “Downtown Development Project Conceptual Design Services” on behalf of Wyatt Development (GAC, LLC) (2) for an unnamed project involving a 100 room hotel, 125 unit apartment complex, conference center with a 450 seat capacity, upscale retail space, and a parking garage large enough to complement the development. 

The Wyatt-Boudreaux agreement was finalized ten days after Weldon’s WTC Investments, LLC had signed a contract to purchase three downtown properties—collectively referred to later as the “Shah Property”—for $7.5 million. (3) WTC’s involvement came only one year after it backed out of a similar project at the “old hospital” and Aiken County office complex at 828 Richland Ave E. (4) Its “agent” in both the downtown Aiken deal and the failed old hospital venture was Aiken Attorney Ray Massey, whose law partner Gary Smith has served as Aiken City Attorney for more than twenty years. 

The Wyatt-Boudreaux agreement described the project as encompassing everything from The Antique Mall on Laurens to the Hotel Aiken, wrapping east around Richland Avenue to Newberry Street, south to The Alley, and north up Bee Lane. The description clearly includes buildings in The Alley as well as the eastern portion of the Aiken Municipal Building on The Alley’s south side. 

Aiken Antique Malll
Aiken Antique Mall, Candidate for Demolition in March 2021

Three days after the agreement was signed by Boudreaux and sent to Wyatt for his signature and Tim O’Briant for his records, Ray Massey’s “Aiken Alley Holdings, LLC” moved forward on procuring a key portion of The Alley for the project.  On March 15th his investment firm—registered with the SC Secretary of State only a month prior—closed on a $2.025 million deal for 200 The Alley and 214 The Alley, parcels housing TakoSushi, Aiken Taproom, and several other businesses.  The deal also included a parking area behind 214 The Alley on Bee Lane. 

Three days after the closing, the AMDC publicly announced Project Pascalis. Few details were announced beyond the news of a commission resolution allowing AMDC Chair Keith Wood and O’Briant to pursue an agreement with an “experienced and well-capitalized” private developer the commission had “recruited and identified.” 

In a subsequent interview, Tim O’Briant told the Aiken Standard  “transparency is key” and promised additional pubic information within a few months. The Boudreaux/Wyatt agreement specified a timeline of April 12, 2021 for a presentation to City Council and “invited stakeholders.” The terms “public meeting” and “public hearing” are absent from the agreement. 

That schedule was never met. No public meetings or presentations to council were held in April, 2021.  However, the AMDC did meet behind closed doors in Executive Session on April 13th; a habit the commission would undertake during more than sixty percent of its meetings in the next six months. (5) 

Coming Soon: Project Pascalis Includes The Alley (A Four-Part Series) Part Two: Option 2.

References

(1) April 20, 2021 AMDC “Design Workshop,” 5:30 meeting to 7:00 pm meeting that extended into a scheduled City Council work session. Listen to question/answer at 2:56:07 in the video below.

Review design and parking presentations made Wednesday, April 20

(2) Weldon Wyatt signed the agreement on March 23. The words “Wyatt Development Company” are crossed out below the letterhead and on the signature page, and  “GAC, LLC” is handwritten in their place.  This typo may have foreshadowed Wyatt’s early exit from the project; as well as the general lack of attention to detail that has plagued the project. The last version of Wyatt Development, LLC was actually dissolved in April, 2013. 

(3) From: “Resolution Authorizing Acceptance of Assignments

Adopted November 9, 2021” Aiken Municipal Development Commission: 

“In anticipation of the Commission’s efforts to consolidate ownership of real property in connection with Project Pascalis, the Greater Aiken County Chamber of Commerce (the “Chamber of Commerce”) has entered into the following purchase and sale agreeme for the acquisition of such real property: (i) a Purchase and Sale Agreement by and between Myrtle H. Anderson, seller, and WTC Investments, LLC, as purchaser, dated April 15, 2021 (the “Anderson Agreement”), for the purchase ofreal property identified as TMS# 121-21-08-004(the “Anderson Property”) for the purchase price of $2,000,000; and (ii) a Purchase and Sale Agreement by and among Historic Hospitality, LLC, S&N Hospitality, LLC, Shah Enterprises, LLC, and Paresh Shah, LLC, collectively as sellers, and WTC Investments, LLC, as purchaser, dated March 2, 2021 (the “Shah Agreement” and together with the Anderson Agreement, the “Agreements”), for the purchase of real property identified as TMS# 121-21-09-002, 121-21-08- 001, 121-21-08-002, 121-21-08-003, 121-21-08-009, and 121-21-09-001 (the “Shah Property” and collectively with the Anderson Property, the “Properties”), for the purchase price of $7,500,000. (5) Pursuant to a bond ordinance of City Council enacted August 23, 2021, the City issued its $9,600,000 General Obligation Bond, Taxable Series 2021.” 

Click to access Municipal-Development-Commission-Agenda-Packet-Updated.pdf

(4) https://aikenchronicles.com/2022/06/21/project-pascalis-and-the-wyatt-factor/

(5) https://aikenchronicles.com/2022/07/01/project-pascalis-transparency-index/

July 2022, Laws & Bylaws, Project Pascalis 2022

Project Pascalis Transparency Index

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Click above of view full size

The City of Aiken’s Project Pascalis was announced to the general public on March 17, 2021 when the Aiken Municipal Development Commission (AMDC) authorized “its chairman and the city’s development director to negotiate and execute, when the time comes, a cost-sharing agreement for ‘Project Pascalis,’ a potentially massive commercial-development venture.” (1) 

In its announcement, the AMDC wrote it had “identified and recruited a well-capitalized and successful real estate investor interested in partnering and exploring one or more potential commercial development projects.” (2) AMDC officials told the Aiken Standard “a Project Pascalis plan for the public to review and critique is expected within months, after the cost-sharing agreement is finalized and the ball gets rolling;” and AMDC Director Tim O’Briant told the paper, “Transparency is key.”

Between March 16, 2021 and May 10, 2022, the AMDC held seventeen scheduled meetings during which they entered into private, Executive Session sixteen times. In total, the Commission spent just over fifty percent of its time in secret deliberations. Between March 16, 2021 and December 3, 2021, just before the first announcement of a developer, the Commission spent close to two-thirds of its meetings in secret deliberations. Prior to this, the percentage of time spent in Executive Session was just under forty. 

While some meetings were held where parts of the project were discussed and debated, public input was not sought until April of this year; with the first meetings involving the entirety of the proposal being held on April 20th. At both meetings, the project presentation lasted for all but fifteen minutes of the scheduled two hours. Public input was abruptly cut off an hour later during the first meeting because of “prior engagements” of the primary developer. 

The AMDC and City of Aiken never publicly announced its “well capitalized and successful investor” of 2021.  We now know the investor was Weldon Wyatt, whose WTC Investments, LLC (agent: Attorney Ray Massey) had abruptly withdrawn, following months of great fanfare, from a similarly size project at the old Aiken hospital. Not surprisingly, Wyatt and his fellow investors in GAC, LLC and WTC Investments, LLC abruptly dropped out of Project Pascalis two short months later, and the cost sharing agreement  was cancelled.(3) 

Instead of announcing Wyatt’s second withdrawal in two years from an anticipated public-private partnership with the City of Aiken, the AMDC secretly solicited other developers, without any public notice as required by law. The Aiken Chamber of Commerce, whose President is an AMDC Commissioner, secretly took “assignment” of the seven downtown properties proposed for the project, and for which WTC Investments, LLC had a purchase and sale agreement with the property owners. 

Three months later, Aiken City Council approved a $9.6 million bond issuance to finance AMDC property purchases. In early November, 2021, the AMDC finalized those purchases; and the Chamber of Commerce was reimbursed $135,000 of nonrefundable earnest deposits, just as it had reimbursed WTC’s earnest money in May when it took “assignment” of the properties. 

Throughout most of 2021, the AMDC and the City of Aiken never publicly disclosed that: 

  • Weldon Wyatt and his fellow investors were involved in Project Pascalis and were planning to demolish the Hotel Aiken and adjacent properties; 
  • the AMDC was involved with negotiations with a second developer 
  • the Chamber of Commerce held nearly $10 million in property while the AMDC sought funding for the properties. 

That is how much “Transparency is Key” to the City of Aiken as it pertains to Project Pascalis. 

_____________________

(1) https://www.postandcourier.com/aikenstandard/news/financial/aiken-panel-moves-forward-with-major-development-endeavor-dubbed-project-pascalis/article_209074f6-8760-11eb-ad67-2f45ba848325.html

(2) https://aikenmdc.org/2021/10/18/amdc-announces-work-on-project-pascalis/

(3) https://aikenmdc.org/wp-content/uploads/2022/05/Pre-development-cost-sharing-GAC-LLC-pascalis.pdf

*Credit due to “Harper’s Index” 

June 2022, Project Pascalis 2022

A Project Pascalis Timeline

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This is “a timeline,” regarding the creation, promotion, and stealth of the $100 million dollar plus downtown Aiken demolition and redevelopment endeavor known as Project Pascalis from February 2019 through June 2022. 

It is not “the timeline.” Due to the City of Aiken’s continued secrecy surrounding key aspects of Project Pascalis, gaps in knowledge remain. For example, the city still refuses to release its full May 2021 solicitation for a Request for Proposals. 

Therefore, it is unknown whether any option to renovate the Hotel Aiken was offered to prospective developers; although the evidence to date strongly suggests the only option was demolition. The importance of this key issue cannot be overstated: if the solicitation dictated what the city wanted, then Project Pascalis is a homegrown project and its developers are mere contractors undertaking the wishes of its client. 

February 2019 

February 1: : Weldon and Tom Wyatt of “Wyatt Development” (which was dissolved in 2013) meets with Aiken Mayor Rick Osbon to discuss his $1.1 million offer to Aiken County to purchase the 9.3 acre “old hospital” and county administrative building property at 828 Richland Avenue, E. for $1.1 million 

February 5: Mayor Osbon sends letter to Aiken County Chairman Gary Bunker describing his meeting with Wyatt executives and expressing his support for their vision for the old hospital property. 

February 19: WTC Investments, LLC is registered as doing business in South Carolina with the Secretary of State. Attorney Ray Massey is the listed agent. (Unknown: presence of absence of Mr. Massey at February 1 meeting with Mayor.)

April 2019 

April 16: WTC Investments, LLC enters into a purchase and sale agreement (PSA) with Aiken County to purchase the “old hospital” property at 828 Richland Avenue, E. for $1.1 million dollars.  

WTC manager Tom Wyatt, son of Weldon Wyatt, announces plan to demolish existing historic structures and construct a new hotel, apartment complex, conference center, and parking garage. 

August 2019

Ordinance establishing the Aiken Municipal Development Commission (AMDC) passed by Aiken City Council and governed by South Carolina Community Development Law. Citizens told Commission will enable increased public input and participation in planning process. 

November 2019: 

Aiken City Council passes rezoning ordinance approving the Wyatts’ concept plan for the old hospital/County complex site. 

January 2020

January 12: WTC Attorney Ray Massey informs Aiken County officials they are withdrawing from the old hospital purchase contract.

May 2020

May 26, 2020 First meeting of the AMDC. Commissioners receive tutorials on the Freedom of Information Act, Ethics, and South Carolina Community Development Law. (In the next twenty four months the Commission, always meeting at 3:30 pm, would enter into closed executive sessions forty percent of their meeting time. During the Pascalis planning and negotiations this figure increased to more than sixty percent.) 

July 2020 

July 15: The Aiken Municipal Development Commission submits a “Redevelopment Plan for Downtown Aiken” to the City of Aiken. The plan does not include properties on Newberry Street currently inhabited by Newberry Hall and Warneke Cleaners. No public hearing is held by the Commission as required by community development law. 

August 2020

August 31. Attorney General Alan Wilson announces a $600 million dollar settlement to more than four years of litigation with the Department of Energy regarding storage of surplus nuclear weapons plutonium at the Savannah River Site. Wilson states that after attorney fees of $75 million, $525 million remains for the legislature to allocate. 

August 2020. Aiken City Council approves first reading of the downtown redevelopment plan. 

September 2020

September 14: Aiken City Council amends the AMDC ordinance, replacing three City Council members with three new voting members, and reclassifying council members as ex-officio. Chamber of Commerce President J. David Jameson, former city councilperson Philip Merry, and Second Baptist Church pastor Douglas Slaughter are added as voting commissioners. 

Second reading of minor redevelopment plan passes. 

September 2020 to December 2020: AMDC discusses plutonium funding lobbying efforts. A letter requesting $30 million for redevelopment purposes is sent to the legislative delegation and other officials. 

January 2021. 

January 4: WTC Investments, LLC dissolves. 

Unknown date in early 2021: WTC Investments, LLC signs contract to purchase Hotel Aiken, and the adjacent motel, 106 Laurens Street, the former Johnson Drug Store, and Warneke Cleaners from Shah Investments and other Shah family holdings. 

March 2021: 

March 15: Royal J. Robbins and Garnett Family Holdings sell 210 The Alley to Aiken Alley Holdings LLC for $2,025,000. Ray Massey is agent for Aiken Holdings LLC. (This property was adjacent to the original Project Pascalis footprint, but is now within it). 

March 18, 2021: AMDC first announces the existence of Project Pascalis. City of Aiken Development Director Tim O’Briant tells the Aiken Standard “Transparency is key” and promises more pubic information within a few months. (Although details are not released, even the initial plan was to demolish Hotel Aiken and surrounding properties and construct a new hotel, apartments, parking garage, and conference center complex similar to that originally proposed at 828 Richland Ave. E, the old hospital). 

O’Briant and Chair Keith Wood authorized by the Commission to execute an agreement with an unnamed, “experienced and well-capitalized” private developer that was “recruited and identified” by the AMDC. (public learns in 2022 that developer was Weldon Wyatt’s GAC LLC; and only in the November 4,  2021 meeting minutes is it revealed that WTC, Investments, LLC was involved with property purchases). 

April 2021

April 13: Aiken Standard reports AMDC meeting behind closed doors to discuss Project Pascalis, indicating it involves downtown properties. 

April 15: WTC Investments, LLC signs purchase and sale agreement with Newberry Hall property owner Myrtle Anderson to buy the property for $2 million. Modified lease agreement provides Newberry Hall business operators options to negotiate repurchase the new building, operate the new conference center, and receive compensation for lost income during construction stages. 

Vampire Penguin opens for business at 106 Laurens Street, while planning to demolish the building proceeds in secrecy. 

May 2021:  

May 5: WTC Investments, LLC re-registered to do business in South Carolina. Agent: Attorney Ray Massey. 

May ?? 2021. WTC Investments, LLC withdraws from its contracts to purchase downtown properties. The Chamber of Commerce takes “assignment” of the property contracts while the AMDC seeks funding to purchase them on behalf of the city. This all occurs behind closed doors. 

May  19, 2021. The AMDC sends solicitations for Requests for Proposals to continue the new hotel/apartments/garage/conference center project to select developers. In the solicitation, the AMDC offers to privatize a part of Newberry Street. (The entire solicitation remains secret to this day, withheld under a FOIA exemption by the City of Aiken, despite fact that FOIA clearly states the city “may” release the documents. The AMDC does not deny the solicitation is only for demolition, not renovation of Hotel Aiken and surrounding properties.) 

June 2021 

June 8: Longtime State Farm agent Joseph Harrison sells his office property at 121 Newberry Street SW—adjacent to Newberry Hall—to Aiken Alley Holdings LLC (Ray Massey, agent) for $675,000. 

July 2021: 

July 12, 2021. AMDC Chair Keith Wood sends letter requesting $10 million in city funds from Aiken City Council to purchase “Parkway area properties” between Morgan and Williamsburg Street. 

August 2021

August 25: City of Aiken approves $10 million in funding for the AMDC to purchase properties in the “Parkway District” bounded by Morgan Street, Hampton Avenue, Park Avenue, and Beaufort Street. Exact properties remain unspecified. 

September 2021

September 20, 2021: AMDC announces it will conduct a fact finding trip to review the redevelopment of downtown Florence. 

September , 2021: AMDC and several officials, joined by Attorney Ray Massey and representatives of Rainesco hold a “public meeting “ at a Florence restaurant. Meeting minutes are noticeably short. 

October 2021 

October , 2021. RPM Development Partners, LLC registers with the SC Secretary of State. Agent: Ray Massey. Key Players: Rainesco and Lat Purser (RPM likely to represent Raines, Purser, and Massey).  Story not reported. 

October , 2021: City of Aiken signs contract with Attorney Gary Pope for assistance with legal counsel. (This agreement cited in May 2021 as evidence of City Attorney Gary Smith’s “recusal” from all things Pascalis, but no such recusal is in document). 

November 2021

November 5: In an Aiken Standard article, Development Director O’Briant again emphasized the need for transparency, and stated the AMDC would soon have a website to share information. 

November 6: Project Pascalis is discussed at a Design Review Board meeting. Responding to a question about the future of Hotel Aiken, City Manager Stuart Bedenbaugh states a decision is still pending. 

November 9: AMDC announces the purchase of several downtown properties for a total of $9.5 million, including Newberry Hall and Warneke Cleaners. The information is shared on the AMDC’s website, aikenmdc.org: 

Click to access Municipal-Development-Commission-Agenda-Packet-Updated.pdf

Aiken Standard fails to report involvement of the Chamber of Commerce. 

According to County Records and the AMDC report, the purchases were: 

106 Laurens St SW for $1 Million from Shah Enterprises. 

235 Richland Ave (Hotel Aiken) and 112 Bee Lane/219 Richland Ave (The motel portion of Hotel Aiken) for $4.25 million from Historic Hospitality LLC (which had “purchased” the hotel in 2017 from Shah Enterprises for $5). 

211 Richland Ave West, 203 Richland Ave West, and 113 Newberry Street (Warneke Cleaners) for $2.25 million from S & N Hospitality LLC (which had purchased the properties in 2018 for $ 1 million from Myrtle Anderson). 

111 Newberry Street (Newberry Hall) for $2 million from Myrtle Anderson. 

December 2021

December 3, 2021. RPM Development Partners announced as Project Pascalis developer. Purchase and Sale agreement made between RPM . Aiken Standard reports that AMDC owned properties scheduled to be “razed.” (Document released in April 2021 shows that one developer rejected in part for only offering $1 million for Hotel Aiken). 

December 13 and 20; 2021. AMDC advertises for Requests for Proposals for Project Pascalis, as required by community development law, but after choosing a developer. 

December 26-December 31: At the urging of the AMDC, Rainesco CEO Grey Raines hosts five private meetings organized by Aiken Chamber of Commerce President and AMDC Commissioner J. David Jameson. AMDC Director Tim O’Briant attends every meeting with Commissioner Jameston. (City of Aiken denies the meetings qualify under Open Meetings clause of FOIA). 

January 2022

January 4: : Rainesco engineers conduct structural assessment of Hotel Aiken, even though decision to demolish building was made behind closed doors in early 2021. 

January 22: Aiken Standard reports that “CTR, LLC, a group of local investors led by attorney Ray Massey, has offered $800,000” for two city-owned properties: the east half of the 214 Park Avenue municipal building and the parking lot across from the Hotel Aiken. Council meets in Executive Session to discuss the offer, no results are reported. Attorney Massey’s law partner, City Attorney Gary Smith, does not recuse himself from the proceedings. 

February 2022

Feburary 17: DRB tours Hotel Aiken during a “special work session.” 

March 2022

March 1: DRB approves demolition of Hotel Aiken and 106 Laurens Street by a vote of 6-1. Vice-Chair Lucy Knowles casts sole dissenting vote. (Councilperson Andrea Gregory withdraws support for Ms. Knowles within a month of the vote, and nominates non-resident Laura Blessing to the Board to replace Ms. Knowles at the end of her term). 

March 28: Ten months after AMDC offered part of Newberry Street to interested developers, Aiken City Council conducts first public hearing (reading) of ordinance to privatize  0.6 acres of Newberry Street, in exchange for 123 Newberry St. SW and parking area behind 210 The Alley. Council unanimously approves first reading of ordinance despite nearly 100 percent of comments being against the proposal.  City Attorney Gary Smith acts in usual parliamentarian role. 

April 2022

April 15: Aiken Standard reports unilateral AMDC decision to repurpose soon to be vacated 214 Park Avenue municipal building into the new conference center. Tim O’Briant credits DRB Chairman McDonald Law with the suggestion. (Mr. Law later denies this was an “ex-parte” communication that violates FOIA Open Meetings law). Aiken County Chair Gary Bunker expresses concern about stalled negotiations with city to utilize the building for office space for county judicial functions. 

April 20: AMDC holds first public meetings to discuss entirety of Project Pascalis. RPM Development Partners, LLC and City contractors devote 85% of the scheduled meeting time to presentations before accepting a single comment or question. Public comments at the first meeting is suspended after an hour due to “prior engagements” of Raines representatives. Two AMDC Commissioners, Keith Wood and Chris Verenes, speak in favor of the project without disclosing their affiliation. 

Attorney Gary Pope sits at a city meeting for the first time, in place of City Attorney Gary Smith. Mr. Pope offers the information that Mr. Smith called him at “an early point in the project” to recused himself; but provides no date. (No written recusal documentation is offered in response to subsequent FOIA requests). 

May 2022

May 9: Aiken City Council votes 6-1 on second reading 6-1 to approve Newberry StreetOrdinance, with councilperson Ed Woltz the lone dissenting vote. Among other falsehoods, Councilperson Kay Brohl supports her yes vote by describing The Alley as an unlively place prior to the city’s 2016 renovation. AMDC Commissioner Philip Merry speaks in favor of the proposal without revealing his affiliation. Attorney Gary Pope sits in place of City Attorney Gary Smith. 

May 10: Lawsuit filed by area resident and Aiken property owner Drew Johnson documenting conflict of interest violations by City Attorney Gary Smith due to the role of his law partner Ray Massey in Project Pascalis. (In subsequent response, defendants do not deny the allegations but call for dismissal on jurisdictional grounds). 

May 11, 2022: Formation of the Do It Right! Alliance is announced, with the goal of preserving historic properties and holding city officials accountable to the law. 

May 15: AMDC releases “Just the Facts…,” revealing its intent to resell city properties to developers at a discounted price. 

June 2022

June 7, 2022: Aiken Downtown Development Association sponsors public “design workshop” to solicit comments on modified design of Hotel Aiken facade. AMDC Director Tim O’Briant tells WJBF News in Augusta that appraisals were unnecessary because the property is like gold. 

June 21, 2022. Design Review Board holds “design workshop.” Attendees not told until beginning of the meeting of a no public comment policy. City officials summon a police offer 

June 24, 2022: City of Aiken posts 45 notices announcing DRB public hearing on proposed demolition of Newberry Hall, Warneke Cleaners, Motel portion of Hotel Aiken, Johnson Drug Store, Taj Aiken Restaurant, and adjacent businesses. 

June 27: Historical Aiken Foundation, which is identified as a key city partner in its strategic development plan, releases fact sheet documenting concerns that support its opposition to Project Pascalis.

Next: August to September, 2022.

June 2022, Money Trails, Project Pascalis 2022

Reminder of the Day: Project Pascalis and the Wyatt Factor

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by Don Moniak
June 21, 2022

While the exact origins of Project Pascalis are unknown, the first prominent actor was local developer Weldon Wyatt.  Here is a brief update, with new information provided by Aiken County via a FOIA request, on how Wyatt burned the City of Aiken not once, but twice, which raises serious questions about the judgment behind Project Pascalis decision making. 

The “First Home Run for the Community” Lands in Foul Territory

On February 5, 2019, Mayor Rick Osbon wrote to Aiken County Council Chair Gary Bunker to endorse the sale and development of the county’s old hospital and administrative building to Wyatt Development Company (which had actually dissolved in 2013). Osbon, who had met with Weldon Wyatt and his son, Tom, four days earlier described their vision as “compelling” and urged a collaboration between county and city: 

I hope the City of Aiken and Aiken County can collaborate on this project; one that promises to create an exciting and engaging property at a critical gateway to Our Downtown.

Two months later the County and the latest Wyatt firm, WTC Investments, LLC, reached a purchase and sale agreement for $1.1 million with Aiken County. WTC then pursued a plan for the old hospital that included a 100 room hotel, conference center, 400 space parking deck/garage, and a 150-unit apartment building. 

After the City of Aiken Planning Commission approved the concept in May, 2019, WTC Manager Tom Wyatt told the Aiken Standard: “We think this is a home run for the community, for the city.”

In November, 2019, Aiken City Council approved the concept and rezoned the property. Two months later the deal was all but dead, when WTC attorney Ray Massey wrote to county attorney Jim Holley: 

After much discussion, we will not be moving forward with contract on the old hospital. We still want to move forward on old county office building with no conditions as we discussed.

The decision took county officials, who were still negotiating in good faith with WTC, off-guard. As County Attorney Holley wrote to Aiken County Council:  

We were surprised to learn late Sunday through a very brief email to me from WTC’s attorney that WTC had decided to end the Agreement.

While Massey did not divulge any rationale for the withdrawal, Holley speculated to Council that: 

We believe the factors that contributed to WTC’s decision were its failure to obtain economic incentives from the City of Aiken for its original hotel/apartments project; how the revised plan to build apartments only impacted the project; the length of time needed to remove the SCETV tower; the possibility other competing apartment projects could surface in the meantime; its desire to engage in demolition of the Hospital Building and other site improvements before the SCETV tower is removed; and the likely poor reception of Council to its proposal for the County to repurchase the Hospital Parcel, purchase the Council of Aging site, and pay most of  WTC’s costs if the SCETV Tower was not removed in the time frame of November 2020 to January 2021.

Fool Me Twice….

One year later Weldon Wyatt and Attorney/Investor Ray Massey were back in the hotel/conference center/apartments/garage business, this time in downtown Aiken.

Their second foray came just four to five months after the announcement of a $600 million Plutonium Settlement between the State of South Carolina and the U.S. Department of Energy, of which Aiken officials soon sought $30 million for Downtown and Northside redevelopment. For a man who had reportedly chased $12.5 of city funds for his old hospital misadventure, this must have been an alluring prospect. 

On March 18, 2021, the Aiken Municipal Development Commission announced Project Pascalis, describing how its chair Keith Wood and Aiken Economic Executive Director Tim O’Briant were authorized by to execute an agreement with an unnamed, “experienced and well-capitalized” private developer that had been “identified and recruited” by the AMDC. We now know that developer was a combination of Wyatt firms, GAC, LLC and WTC Investments, LLC (although the first WTC dissolved in January 2021, a second one was registered in May 2021). 

Not coincidentally, Attorney Ray Massey’s Aiken Alley Holdings also closed on a deal to purchase 200 and 210 The Alley for $2 million just three days before the Project Pascalis announcement. 

Once again, two months after a grandiose Wyatt plan to change Aiken for the better was announced or approved, Wyatt withdrew without providing a motive.  Unlike his exit during the old hospital fiasco, this departure was never announced or reported by the AMDC. 

Why did the City of Aiken pursue a major redevelopment project with Weldon Wyatt just one year after he and his associates abruptly withdrew from another major project and left Aiken County high and dry? And why did the City of Aiken and the AMDC choose to keep secret the details of his latest plan? 

Why did the Aiken Chamber of Commerce and the AMDC choose to bail out WTC Investments, which stood to lose $135,000 in nonrefundable earnest money, instead of pursuing public input while renegotiating with the Hotel Aiken and other property owners? 

Aiken officials can answer these questions, but have chosen not to, even as the decision to continue to do business with Wyatt, and now Ray Massey,has already left Aiken taxpayers indebted to the tune of $10 million plus.