The Pacific Board of Aldermen unanimously approved an agreement with a successor developer to resume building homes at Eagles View subdivision on Thornton Road.
City Administrator Harold Selby said Jack Davis, owner of BJP Pacific, LLC, had bought the remaining lots that were forfeited to the Bank of America last year by the original developer, McBride and Son.
Eagles View was put on hold last year after McBride closed its office and sold its last display home at a reduced price, due to a dip in the real estate market. The developers said in an earlier article in The Missourian that they would look at the market again in 12 months and determine at that time whether they could sell homes again or wait another year.
Selby said although BJP Pacific is a separate company, McBride would be buying lots from BJP and building the homes.
“Isn’t this like the shell game?” Alderman Mike Pigg asked Selby. “Where under what shell has got the nut in it?”
Selby said BJP Pacific is a “shell corporation” that is separate from McBride.
“McBride is simply building the homes,” Selby said. “They are coming in, but they don’t want to be the developer anymore. They are going to resume building the homes by buying them from BJP, who is essentially an individual named Jack Davis.”
Selby said developers generally set up shell corporations that don’t have assets, but in this case the city demanded a letter of credit from BJP Pacific so they couldn’t “just walk away” from the project.
Pigg said he understands the city needs to protect itself, but questioned whether there would be any risk to homeowners if McBride continued building the homes.
That’s why we’re at where we’re at,” Pigg said. “When this first happened the residents that just bought houses with the insurance and the warranties came through with their lists of stuff they were having problems with and well, lo and behold, McBride went out of business so they couldn’t go after them to fix the problems with their houses.
“I want to know if McBride is back to building these houses, are we going to instill the same problems? Is there anything we can enforce with this that will help protect their money? I understand we’re watching our money and protecting the city, but what about the people who are buying their house?”
Selby said McBride did not go “out of business” and that they have been in business for the last 70 years.
“Based on that statement, homeowners should enforce their rights on the company that is still in business,” Selby said.
Linda Shelby, who works for Community Managers Associates, Inc., a St. Louis based company that manages the Eagles View Homeowners Association, said a representative from McBride recently met with subdivision homeowners, who were excited McBride would be once again building homes in Eagles View.
“McBride’s project manager met with homeowners and answered their questions, and they were happy (McBride) was building again,” she said.