Seven Lakes “Circa 1972″… And Now For The Rest Of The Story Part II

REPRINTED FROM SEVEN LAKES NEWS OCTOBER EDITION 2022

With the 50th birthday of Seven Lakes I had the opportunity to interview Mr. Alan Shaw, one of the original developers of Seven Lakes to enlighten residents to a factual version of our history.   

Through extensive interviews with the former President of Longleaf Incorporated and  General Partner in Peter V Tufts and Associates, the two original developers of Seven Lakes North, Seven Lakes South, and Seven Lakes West we were able to ascertain a history including the triumphs and tragedies at the commencement through fruition of the resort development. 

The headline was a quote that ended every broadcast of famous radio announcer, Paul Harvey.  This is the second segment in a five part series.

The first part explored the beginnings of Seven Lakes from the earliest vision  of a rustic weekend retreat, complete with dirt roads to the thriving community it is today. 

To  read Part I,  “And Now For The Rest Of The Story The 50 Year Saga Of Seven Lakes“ visit  SevenLakesNewsletter.com.

We ended the first segment by starting a discussion of the Seven Lakes Landowners Association.

As discussed, Longleaf Incorporated was highly undercapitalized. So, the developers decided to provide a safety net for current and future property owners by organizing an independent homeowners association we all know as the Seven Lakes Landowners Association, today. 

 Realizing conceptually that Seven Lakes would require future upkeep and operation. the founders felt it was vital that the community could operate regardless of any issues that may be on the financial horizon for the development company.

Options for community operations  included an association directed by the developer, directed by the landowners,  or no association at all. After visiting several resort communities to compare association concepts, it was clear to the incorporators that  the success or failure of property values should not be contingent upon the developer‘s financial health.   

With this in mind, The Seven Lakes Landowners Association was formed in May of 1973, by initial incorporators Fred Lawrence, Joe Cline and Alan Shaw.

As a point of interest, one of the original Board members Jeb Koury ultimately became the Sales Director for Real Estate operations for Longleaf and Peter V Tufts when the sales contract with Buddy Makepeace was terminated.

It should be noted that the Planned Community Act which governs Home Owners Associations was not enacted until January of 1999..   So, in effect, our homeowners association was breaking new ground.  When the General Statute 47F was enacted, Seven Lakes was  not bound by most of the laws in that act. 

Yet, the incorporators decided that the best form of government was to be placed in the hands of the property owners and not the developer. 

Only property owners would be able to cast a vote and the initial annual dues were only $60 /per annum for approximately 350 owners only producing $30,000 per year.   Hence, the development company  continued to subsidize the association for many years.

Randy Campbell, who became a very visible real estate salesman in the community,  was brought on board, initially to manage the association. Longleaf Inc., entered into a 99 year lease on all facilities and amenities with the SLLA. So, regardless of Longleaf‘s long term success or failure, the association could provide for the continuation of the operation and therefore property values would be consistently maintained.

After several years with various  managers a decision was made to hire Talis Co. a professional management organization.  Talis were ultimately replaced by the current management company, CAS.

The operation was  heavily subsidized by Longleaf up  to $150,000  per year.. 

In 1977, Longleaf laid out a three year plan which summarized their  financial exit strategy.  The planned  exit was to provide $150,00 the first year,  $100,000 the second year and $50,000 in year three. They would exit in 1979 with no future financial assistance. 

This stand alone concept turned out to be instrumental in maintaining the property valuation and assuring continued operation of the roads and amenities and facilities.

Alan Shaw wanted  to especially express his thank you to all of the residents of the community who voluntarily served on the Board of Directors of the Seven Lakes Landowners Association.  He acknowledged a rocky relationship where he often referred to the board as well intended amateurs, but, wants to acknowledge without their strong leadership and guidance the community would not be as successful as it has become.

Longleaf Incorporated and Peter V Tufts and Associates sold its interest in the Seven Lakes community in February of 1983.  Effectively with the sale of the community,  Longleaf Inc., et.al., divested their assets to the  new developer which immediately abandoned the North and South sides Real Estate operations to concentrate their sales efforts on the West side now named Beacon Ridge. 

Although the new owners the MOR Group and SLS Properties owned a few lots on the North and South sides their primary promotional efforts were based on success of Beacon Ridge, located at the Seven Lakes West golf course community.

Seven Lakes Landowners association ultimately purchased all of the facilities including the roads, clubhouse etc.  with the exception of the golf course while they were still under a valid leasehold interest with Longleaf Inc.

Without an independent and self-funded maintenance and facilities caretakers, the North and South Side would have been a “ship without a rudder“ struggling to stay afloat.

There was a second critical factor that my partner Fred Lawrence provided to Seven Lakes for its ultimate success.  Fred  had the genius idea of promoting and providing the development of a business footprint.

Fred recognized the need for retail activity and a business village concept to enhance the living characteristics of the community.   He formed a partnership to develop what was an abandoned sand pit located at the intersection of NC 211 and what is now Seven Lakes Drive.

 The first building was a convenient store where the Exxon station operated until recently ending with the future Hwy 211 road expansion.

This was followed by a restaurant, operated by  Dan and Evelyn Fazelle,  Lee Moore Insurance Agency by Joe Horney ,  a medical facility with the first local physician who was guaranteed a minimum income by  Longleaf Incorporated, First Bank,  Dr John Lawton’s dental office, Elaine Yow Gurgis’s accounting practice, Haney’s  tire store, and Lance Horney’s IGA grocery store with more business commitments.

More to come… Next the Seven Lakes Village Shopping story and the beginning of the Peter V Tufts golf course.

By:  Victoria Levinger Publisher