Once upon a time, there was a Dam. The Dam was in Non-Compliance. The Community leaders mocked allegations that it might be anything. A nothing burger they all said. So this Newspaper went to work getting the records, and then brought in the State Agency responsible for the Dam – Georgia Safe Dams (“GSD”). Bringing in a 3-Letter Agency seemed to get the attention of the gaggle of laughing Hyenas commonly referred to as the Big Canoe POA Board of Directors. FOBC is doing that again – bringing in the IRS to investigate a Tax Scheme regarding a § 1.170A–14 Conservation Easement, on the property that an illegally operating UIG Pumphouse withdraws all its water from.
Because there has been NO Transparency over the years regarding Big Canoe’s Water and Sewer System, and because the community has had no Watchdog (i.e. no real Investigative Newspaper) to keep the BCPOA, Management, the Developer, and the Water Utility honest…. we have arrived at a situation where our Land Records are in disarray; our Water & Sewer Utility Bills are skyrocketing, and Property Owners can’t trust their leaders anymore.
The Factual News that you are about to read, will most likely be mocked by the BCPOA and Management – because they will not be able to recognize that this is actually a gift… a tool…. a bit of leverage to use when negotiating with Utilities Inc of Georgia (UIG).
Here is the short version of the situation we find ourselves in:
- UIG believes that the BCPOA gave away all of the communities rights, and they are leveraging that commonly held belief to raise rates at will, and take advantage.
- BCPOA is negotiating behind closed doors. The last time they did that, the community lost control over it’s water system.
- UIG withdraws all of it’s water from a specific Parcel of land (Pickens Parcel 049A 046). That Parcel of land is allegedly owned by the BCPOA (we supposedly got it in the 2016 Land Deal). This land is located on Blackwell Creek, just before the Creek flows under Cove Rd and exits the lands of Big Canoe. This Property (hereafter the “CE Property”) is home to a Pump Station that withdraws the water from Blackwell Creek, and an Access Road. The water is piped up into the Reservoir on Cove Rd, and then withdrawn to the Water Treatment Plant at the corner of Whitley Rd. and Cove Rd. From there it distributed to Big Canoe Homes, and the balance sold to the Pickens County Water System; tied directly into their water pipe system, and then delivered all over Eastern Pickens County. Estimated volume is as high as 1 Million Gallons per day. A lot of money is being generated through this one piece of land – the CE Property.
- The CE PROPERTY was placed under a permanently restricted Conservation Easement (“CE”) in 2001. The Developer (Owner at the time) sucked out a lot of Tax benefits.
- Three (3) years affter the the CE was entered into – the Big Canoe Water Utility (predecessor to UIG) was granted an Easement (2004) that violated the CE. Those violations are still ongoing, and according to the legally filed CE (See Article 2 for Restrictions), the following restrictions are in place:
(a) You cannot withdraw ground or surface water (Strike One)
(b) No building (Pumphouse – Strike Two)
(c) No Road Cutting or Land Clearing (Strikes Three, and Four)
(d) Property to be used for Public Access and Other Violations (No Trespassing Signs By UIG – Strikes Five, Six) - According to Federal Statute “26 CFR § 1.170A-14 – Qualified conservation contributions” the Conservation Easement will now have to be Extinguished – and all Tax Liabilities arising from the violations to be paid. This could be in the Million$.
FACTS THAT THE VARIOUS ATTORNEYS WILL MOST LIKELY FIND INTERESTING, and that are sure to play out as the IRS begins investigations into this (which they most likely will do – as a comprehensive 101 Page IRS WhistlesBlower Complaint, with Exhibits A-F; Exhibits G-J; and Exhibits K-N has been sent to the Internal Revenue Service):
(A) The 2004 Easement to Big Canoe Utility (transferred to UIG) had an indemnification clause that seems to put them in the hotseat for the violations. Here is an excerpt:
¶4 “Grantee shall maintain the improvements within the Easement Area and hold Grantor, its successors and assigns, harmless from any occurrence and liability because of the construction and maintenance of the improvements within the Easement Area.”
The fact that Big Canoe Utilities, and subsequently UIG, are the Entities that have enormously profited from the activity leading to the violations, seems to further accentuate their liability. It also sounds suspiciously like C.Y.A. language – and that someone (Developer) knew damn well that they were violating the CE, when they granted the easement.
(B) This CE Property was allegedly deeded to BCPOA in 2016 as part of the Land Deal. We received the Warranty Deed from “Main Investors at Big Canoe, LLC”. Problem is that they didn’t actually own the CE Property (having deeded it back to Big Canoe Company in 2002) – at the time they deeded it to BCPOA in 2016. Does this reopen issues regarding the 2016 land Deal? The REAL Owner of the CE PROPERTY may be the entity holding the bag when the IRS comes knocking, asking for it’s money – but who is the Owner? Or will it be the Water Utility that indemnified the actions that led to the CE Violations that is on the hook for payments and penalties?
All of this is laid out much more clearly, and with all supporting documentation, in the 101 Page IRS Whistleblower Report that was sent to the Internal Revenue Service on Oct. 5, 2022. Complete with all of the historical Deeds, Easements, Plats and Communications listed in the Exhibits: Exhibits A-F — Exhibits G-J — and Exhibits K-N.
Regardless, the bringing in of this 3-Letter “I.R.S.”Agency should finally cause some seriousness to be added to this negotiation process with the Water Utility. Hopefully, the BCPOA Board of Directors will realize that they are being handed a gift of potential leverage and control.
Unfortunately I have little faith that the Board and management will act responsibly, but instead will follow their traditional playbook:
- Laugh at and mock the FOBC Reporting.
- Call it lies and fake news.
- Try to ignore it.
My guess is that those tactics won’t work with the IRS Investigators, just as they didn’t work with Georgia Safe Dams. What is likely is that somebody will be stuck holding the bag, and will pay the IRS a LOT of Money for violating the § 1.170A–14 Conservation Easement Restrictions.
Hopefully the BCPOA Board of Directors can play this new hand it has been dealt – wisely. ??? Does the Community trust them to be able to handle this ???
For a better grasp, read the 1st Eight (8) pages of the Whistleblower Report, recently filed with the IRS.
CORRECTION (Oct 9, 2022): The Whistleblower Report erroneously refers to “Main Investors at Big Canoe, LLC” as – “Main Gate Investors (MGI)”. “Main Investors at Big Canoe, LLC” is the correct name of the subsidiary of Big Canoe Company that was being used in the referenced deeds, and is what is referenced when you see “MGI” or “Main Gate Investors”. This will be corrected with IRS.
This Article Shareable Online at our FOBC Public News Group:
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Peace,
– david / publisher
Focus on Big Canoe, GA
* a publication of The Mountains Voice
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