Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 9, 1990 TAG: 9005090225
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
SOURCE: SANDRA BROWN KELLY and DAVID M. POOLE STAFF WRITERS
DATELINE: MONETA LENGTH: Medium
First Community Bank of Princeton, W.Va., rejected the highest bid, electing instead to buy the property itself for $560,000 at a foreclosure auction.
The auction failed to resolve the fate of more than 130 people who bought time shares on five houseboats docked at Beacon Light Marina, at the end of Virginia 853 in Bedford County.
Mike Feola, vice president for First Community Bank, had no comment when asked if the 46-foot houseboats, which are owned by a separate company, would remain at the marina.
"We'll have to consider that," he said after the auction.
More than 75 people attended the auction on the marina porch. Most were curiosity seekers attracted by the publicized foreclosure of the marina property and the time share operation's recent bankruptcy petition.
About 10 people signed up to bid on the two acres of lakefront land, boat docks and restaurant.
The bidding started late as Feola waited for word that the marina's owners could find a buyer who would pay off a $625,000 note held by First Community Bank.
But the owners - David "Red" Dean, Dwight L. Dean, James "Jay" Deyerle and John Meteney - apparently could not put together a deal to avert the auction.
The bidding began shortly after 4 p.m., starting at $100,000 and quickly stalling at $300,000. Feola got things rolling again with a bid of $350,000, which one of the bidders topped with $360,000.
But when no one offered more, First Community Bank bought the property and contents for $540,000.
Deyerle, Meteney and the Deans bought the marina property in 1987 under the corporate name Tri-State Investors. They set up a separate company to sell time shares on one of five 46-foot houseboats.
The interval ownership agreements were sold for various amounts and various numbers of years, but many of the early buyers paid $8,500 for one week per year for 25 years.
The deal was outlined in brochures still on display at the marina's snack bar: "With one initial payment, together with a small maintenance fee, your future vacations are paid for and you can relax knowing that your investment is being maintained by experienced managers."
The buyers' future, however, was cast into doubt by Tuesday's auction. Substitute trustee Samuel Campbell said the new owner would not be bound by a lease for the five houseboats.
"He may honor them or he may not," Campbell said.
For now, First Community Bank still owns the marina. After the auction, several of the bidders slipped Feola their business cards and asked the bank to contact them if it was interested in selling.
by CNB