To the citizens of Guilford County:

As you know, I am interested in purchasing your home.  I realize the house you are living in is in need of some repair, but you are living in the structure so it is obviously functional.  I have checked with the County and have found that it was assessed in 1991 for $7,075,000.  I am sure that over the last ten years your property has gone up in value and perhaps your property could be worth $8,200,000 today, probably closer to $10,000,000, but we'll use the low number for our negotiations.

As you are well aware, I have been desperately looking for a property that is suitable to build my new health club because the 1926 building I am presently in is in need of major renovation.  (I don't really dig old buildings anyway.)  I want to construct a brand new health club like one I saw in Chattanooga so I can maximize my return on my investment in the team of personal trainers that I control.  My other motivation for the new building is that several young professionals have threatened to leave Greensboro if I don't build the thing so I'm under a little pressure here.  As you have read in the paper, I have tried to find other locations and met with some difficulties, so now I find that your property is the only place in Greensboro that has enough land that is suitable for my needs.  I would appreciate it if you won't let those nasty "supply and demand" principles that we learned about in elementary school affect my purchase price.  Let me propose a simple land swap.

Because I want to build a new health club on your property, I have no interest in any buildings that are on your land.  To help me in my effort to get the health club built for a reasonable price, I would appreciate it if you would agree to deduct the value of your house and the detached garage from my purchase price.

If you don't mind, I also ask that you pay for, out of your own pocket, a demolition company to tear down your house and garage, otherwise I won't be able to construct my health club at a reasonable price.  So... if you agree to these two reasonable requests, my offer is as follows:

   $4,500,000  1991 value of your house and garage*

+ $3,700,000  2002 value of your land (I had it appraised to accommodate my health club)**

   $8,200,000  Total value of your property

 - $4,500,000   Deducted because I don't need your house and garage

= $3,700,000   Equals the land value

-  $   200,000   Deducted so you can demolish your house and garage***

 $ 3,350,000.00    My kind offer for your $8.2M property

Because I realize that you will need a new home in which to live after you have torn your house down for me, I will design and build you a new home as a part of my offer.  The new home I will build for you is on the other side of town (just a short bus transfer away).  Because I have a cousin in the construction business I will be able to construct your new home of the finest materials available for only $75.00 sq/ft.  I am as aware as you that all other new homes in Greensboro cost $125.00 sq/ft to construct, but I think you will be satisfied with the structure that $75.00 sq/ft will yield.  Cousin Vinnie knows what he is doing.  At least it will be new.

Your new home will be larger than the one you are in now so your entire extended family will be able to live in the same house.  It will be very flexible in its design in that it will have very few actual walls.  I realize that the home you are currently in has a security system and is wired for computers, telephones and the like but you will need to pay for such trivial things yourself.  I will also need for you to pay for any window treatments or other decor that you might require.  You will also be responsible for your own moving expenses and any other "extras" that you and your family might feel you need to be comfortable in the new home that I will build for you.

After I have built your new home, it will hopefully be worth $11,000,000, which is probably the current value of the home you are now in (but my appraisal of your property justifies only $8,200,000).  You will only have to pay $4,500,000 to make the swap. 

What I get: Your $8,200,000 home for $3,375,000 so you will only lose $4,825,000 on that portion of the deal.  And I will get to build my health club to keep those young professionals from leaving and my crack team of personal trainers in Guilford County.

You get:  A new larger $11,000,000 home, expertly designed and built of the finest materials that $75.00 sq ft can buy for only $4,500,000.  Of course you will have to incur a few expenses to get the place up to your standards and to move... say $1,000,000 more.  Total turnkey job for only $5,500,000!

Your total investment will only be $4,825,000 for your loss on selling me your current home and $5,500,000 for the total cost of your new home that I will graciously build for you. Envision yourself in your new $11,000,000 home across town for only $10,325,000... isn't that exciting?  (I am sorry that I confused you into thinking the swap would only cost $4,500,000... my PR people got a little carried away)

I realize you may have some questions about the contract I sent to your attorney about this deal, but he is on board so don't worry too much.  I also hear you may have some questions about land contamination and a few minor details about the whole deal and I hope you get them answered soon.  As you know, time is of the essence because I will lose my option on your new home site the first week of December and if that happens I won't get to build my new health club and my wonderful team of personal trainers will disperse to God knows where!

I know money is tight right now and your children need some new shoes, private tutoring and stuff like that, but I know you won't be able to pass up this "once in a lifetime" opportunity.  You are in the driver's seat.  Call my representatives with questions if you can figure out who they are,

Sincerely,

David Hoggard

*.  The $4,500,000 value was assigned to the DSS site in 1991 by the Guilford Co. Tax Department  Most Guilford County properties have risen in value since 1991.  Given a minimal 15% increase in 10 years, the property would be worth $5,125,000 today.  But we don’t know because the buildings were excluded from the May, 2002 independent appraisal of the DSS property.

** The $3,700,000 appraised amount for the DSS land is based on $11.75 per sq/ft.  The land for the new YMCA on Market Street sold for $21.87 per sq/ft in 2000.  Using only $20.00 per sq/ft, the County’s DSS site (land only) would be valued at over $6,350,000… not $3,700,000.  These amounts are cited in the May 2002 appraisal of the DSS site that assigned the DSS buildings NO VALUE.