Something Must Be Done About Appomattox County (Part 1)

There’s some confusing legal news about the deal for the old school, and I want to make it crystal clear. What sounds like good news is actually the worst-case scenario.

The Analogy: The Town’s Community Farm 

Imagine a local farmer, “Mr. Smith,” who has a special deal to use some vacant county owned farmland. His plan is to turn it into a community farm: a place where families can get fresh food, kids can learn about agriculture, and everyone benefits. The county supervisors love the idea. They lease the land to Mr. Smith’s non-profit for $1 for 7 years and sign a deal that says he can buy it later for $250,000, but only if he wants to. That means the land isn’t sold yet, but he has the first chance to buy it.

After the deal is signed, the county finds out that Mr. Smith has actually filed for bankruptcy. The county board is concerned, but they think since the option is held by a non-profit, it would be completely separate from Mr. Smith. The county opts to “wait and see.” They hear that two lawsuits against Mr. Smith from people he owes money to have been “dismissed.” They announce this as great news, thinking, “Wonderful! Mr. Smith’s problems are over, and our community farm is safe!”

But that’s a dangerous misunderstanding. Here’s what’s really happening:

Mr. Smith’s main business has completely collapsed because he owes money to over 100 people and businesses. Two private lawsuits against him were dropped only because the debts were moved into his bankruptcy case, where he has already admitted he owes millions of dollars.

Now, the Department of Justice has stepped in. The United States Federal Government is suing Mr. Smith, not for money, but to declare him financially irresponsible due to alleged fraud. This is the worst possible news for the community farm.

If the government wins, a federal Trustee is appointed. This Trustee’s only job is to sell off everything Mr. Smith owns to pay back the 100+ creditors. The Trustee will look at that valuable land option and say: “A community farm doesn’t pay creditors. I am legally required to seize this deal.”

He will then force the purchase of the land and immediately sell it at auction to the highest bidder. A housing developer may outbid everyone, and our community farm will be replaced by a subdivision.

This is exactly the situation with our school.

The man with the purchase option is “Mr. Boone” His business has failed, and the government is now involved. The “dismissed” lawsuits are not victories; they are proof of his deep financial trouble.

A federal Trustee is about to be empowered to seize the option to purchase the school, ignore the community benefit, and sell our property to the highest bidder for development. The school’s future is in more danger than ever. Our leaders must understand this reality and act to protect our community’s asset.

Want to Learn More? Click Here for Part 2.

Something Must Be Done About Appomattox County

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