Fontenot represents the Buller family of Ville Platte, which owns the 177-acre tract near Acadian Hills Golf Course. The Bullers sued Couret Place Inc. for breach of contract in September but have not pursued the litigation because of Cal-Bay's interest in taking over the project.
"[Cal-Bay] had a deadline to do certain things, and they did not do those things," says Fontenot, who declined to discuss any financial details of the negotiations. However, a source close to the proposed deal says the Buller family was requesting a $100,000 good faith deposit, which Cal-Bay failed to produce.
Cal-Bay representatives did not respond to phone and e-mail requests seeking comment for this story.
In early December, Cal-Bay Vice President Bill Sickert told The Independent Weekly the company planned to purchase Couret Place Inc., pay the Buller family for the land and proceed with plans to develop the real estate project into a mixed-use, traditional neighborhood much like south Lafayette's River Ranch. Based on the Bullers' asking price and the debt that accumulated Â' a number of contractors who did work on the site are owed several thousand dollars each, one as much as $437,000 Â' it's estimated that Cal-Bay would have had to invest from $9 million to $12 million just to get into the project. Subsequent development costs would have drastically increased that initial investment.
On Jan. 18 Cal-Bay, a publicly traded real estate development group based in Carlsbad, Calif., announced that it had secured funding for what it called a $400 million "residential/commercial golf course development project" in Lafayette. The Buller family property is next to Acadian Hills Golf Course, but the course is not part of the deal. "It really upset me when I saw that in print," says Acadian Hills General Manager John Guilbeau. "We don't know those people."
But the major red flag raised by the announcement was that the Bullers, who still have title to the property, had yet to finalize the deal with Cal-Bay. In mid-January, Fontenot said the company had missed a deadline to respond to the Bullers' offer. "There is no deal with Cal-Bay," Fontenot now says.
Cal-Bay International is a "penny stock" that does not trade on a major exchange. As of late last week, Cal-Bay's stock price had dropped to 2 cents per share, and the company had a market value of $824,800. The stock is down 98 percent from a high of $1.10 in March 2006.
Other parties not related to Cal-Bay or Couret Place Inc. Â' it is widely speculated that John Royston or his partners brought the California company to the table ' have expressed interest in the property, and the Bullers want to sell the beautiful tract. The problem is that the property is now tied up in a legal quagmire of lawsuits and liens filed by local companies that did work on the site. An undetermined number of people also put money down on lots in the residential portion of the proposed development.
In their lawsuit, the Bullers say they were unaware that local contractors had begun working on the property because Couret Place Inc., led by John Royston, who over the years has had numerous financial disputes with local companies, was continually trying to renegotiate the deal, and the two parties had yet to come to an agreement. The Bullers claim Couret Place Inc. did not have the financial wherewithal to meet the original agreement and disguised a new revenue sharing program as a better deal for the family in order to delay payments.
When Couret Place began asking the Bullers for money to pay for the infrastructure, which the Bullers say was Couret Place's responsibility, a Buller family member went to the site June 29 and told the contractors to go home; the legal problems started soon after. "All along, Couret Place did not have and knew it did not have money to pay the contractors and engineers as per the agreements, but still went ahead and engaged the services of engineers and contractors on its own," the Bullers say in their suit.
Fontenot says Cal-Bay told him during earlier negotiations that it had purchased Couret Place Inc., which could add yet another layer of legal complications. "Later on in our negotiations, they said they were negotiating to acquire it, so I don't know [the status]," he says.
Since Fontenot called off the deal, however, Cal-Bay has a new legal problem. On Feb. 6 real estate appraiser Lane Godshall's company, hired by Cal-Bay to appraise the property in October, filed suit in state district court seeking $4,500.
Godshall says he was unfamiliar with Cal-Bay when asked to appraise the property, so he requested up-front payment for his services. "They sent me a check via FedEx," he says. Godshall conducted the appraisal, sent it to his client in mid-November and deposited the check. He then went out of town for a week.
"I came back, and it had bounced," Godshall says. When Godshall called the company, vice president Sickert blamed an administrative error. Recalls Godshall, "He said, 'We have like six bank accounts and are always moving money around.'" After that initial conversation, Godshall says Cal-Bay representatives stopped taking his calls.
When his demand letter was also ignored, Godshall filed suit. "That hasn't happened to me in a number ' a number of years," the appraiser says.
The Board of Elementary and Secondary Education has stalled action on a $3.5 billion annual school funding formula due to state lawmakers by March 15.
The New Orleans Saints have yet to make it official as of this writing, but popular wide receiver Lance Moore has reportedly been cut by the team to free up salary-cap space on the roster.
While two medical marijuana bills are slated for the upcoming legislative session, what some Louisianans might not know is that the plant was approved for therapeutic use by state lawmakers in 1991.
The agenda is shaping up to be lighter than in previous years. But Jindal is term-limited, with fewer than two years remaining in office, and he saw his last big initiative — a proposed rewrite of Louisiana tax law — collapse without getting a vote in 2013.
Sharper has been held without bail because of an arrest warrant issued by Louisiana authorities accusing him and another man of raping two women.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, March 07, 2014:
Two Lafayette men have been revealed by police as the infamous duo behind a caper that shook our fair city to its core.
The Lafayette Parish School Board has received a second letter of demand related to last year’s insurance debacle, this time from Key Benefit Administrators claiming it’s owed $93,000 from the school system.
The Louisiana coastline is vanishing faster than mappers can keep track.
A bill that would have overridden local ordinances prohibiting public and private employers from discriminating against lesbian, gay and transgender people has been pulled within less than a week of being filed.
The panel that selects nominees for a controversial New Orleans area flood control board — a board that is suing more than 90 oil, gas and pipeline companies — is set to discuss legislation affecting its independence.
State prison officials cannot keep secret the seller and manufacturer of the two drugs purchased for executions at the Louisiana State Penitentiary, a federal judge ruled Wednesday.
State lawmakers will not appeal a judge's ruling that it was improper to use $3.7 million from a probation and parole officers' retirement fund to balance the state's operating budget.
Conservatives have been losing their minds over this satirical bit on the Colbert Report.
The Lafayette Parish School Board leaves a lot to be desired, but is scrapping the election process in favor of an appointed board the answer?
The House approved legislation Tuesday night to roll back a recently enacted overhaul of the federal flood insurance program, after homeowners in flood-prone areas complained about sharp premium increases.
The NFL has formally designated New Orleans' Jimmy Graham as a tight end for the purposes of his franchise tag value, which is now set at $7.05 million next season unless Graham and the Saints subsequently agree on a long-term deal.
A federal appeals panel ruled Monday that businesses don't have to prove that they were directly harmed by BP's 2010 Gulf Of Mexico oil spill to collect settlement payments.
The Louisiana Department of Transportation and Development has closed Interstate 10 from I-49 in Lafayette to Seigen Lane in Baton Rouge.
Jim Bernhard, who engineered the sale of The Shaw Group for $3 billion, recently has told several people involved in Democratic politics that he intends to run for governor in 2015.
A New Orleans levee board wants to hold the oil and gas industry accountable for decades of damage to our state’s coastline, but the Legislature may be poised to put the kibosh on the suit.
New standards curb elective induction
CVS stops tobacco sales
If an Acadia Parish fiddler misses a note while swatting a fly, will a St. Martinville accordionist learn “Ma ‘Tite Fille”?
(It's good, it's bad and it's just crazy)