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Former sales manager says loop notice stifled by Keystone

Sunday, May 10, 2009
(Updated 3:00 am)

 

GREENSBORO — A former sales manager for Keystone Group says the company stopped her from giving potential customers an early warning of the Urban Loop’s impact on a town house community in northwest Greensboro.

Former Keystone employee Betsy Lamb was told to remove a “disclosure statement” about the road from sales packets given to first-time visitors at Keystone’s Liberty Square neighborhood off Old Battleground Road, she said.

Lamb inserted the statement after learning that recently updated plans for the Loop could take out three of Liberty Square’s 12 buildings, including six newly built town houses worth about $1.5 million, Lamb said.

“The statement just said the Urban Loop was coming through and it could affect the area. He made me pull that,” Lamb said of Keystone’s president,  Scott Wallace. “He thought that was a negative early on (in the sales process). He thought we should get them locked into the community first, then tell them.”

Keystone executive Wallace said Lamb’s charges are false but declined a request to address them specifically.

“Keystone vehemently denies her accusations, and is handing this matter over to our counsel for further review and appropriate legal action,” Wallace said by e-mail Friday afternoon. “We have never asked Ms. Lamb or any other Keystone employee to withhold Urban Loop information from our customers or potential customers.”

Keystone Group has been in the news recently because another of its developments, the Quail Oaks subdivision in northeast Greensboro, also is in the Urban Loop’s path.

In that case, the state Department of Transportation will have to spend millions of dollars buying about 15 new homes in Quail Oaks, relocating the displaced owners and rebuilding part of the new subdivision’s road system to make way for a newly expanded exit ramp.

Some residents of Quail Oaks said they were not fully informed by Keystone, even after Wallace and a partner in that project attended a January meeting at which DOT unveiled maps showing the larger ramp.

Several Liberty Square residents said last week they knew the Urban Loop would come through their part of town, but were not told how close it could be.

If the Loop continues on the course shown now in DOT’s construction-ready plans, taxpayers would have to buy the three duplexes, demolish them and help relocate any owners.

Five of the affected town houses remain unsold; neighbors said the sixth belongs to a disabled woman and her adult son, who lives overseas. Efforts to reach her for comment last week were unsuccessful.

Liberty Square is a development of 25 town houses on a small piece of land that housed the Battle Forest Friends Meeting until several years ago, just north of Guilford Courthouse National Military Park.

But like Quail Oaks:

l Liberty Square is being developed right next to land identified as part of the Loop as far back as 1996.

l It sits on property rezoned more recently by city officials with little, if any, discussion of the future interstate highway’s potential for disruption.

l It is now jeopardized by relatively recent changes in DOT’s 13-year-old plans for the last, three segments of the 44-mile Urban Loop to eventually encircle the city.

Plans for the Loop through northwest Greensboro veered into Liberty Square last spring as road engineers in Raleigh fine-tuned the design for that section of the Loop, which will go from Bryan Boulevard to Lawndale Drive.

That segment is not scheduled for construction until sometime after 2015. But it is often mentioned by local political, business and transportation leaders as a high priority they hope to put on a fast track.

In fact, money is about all that stands in the way, said Craig McKinney of Greensboro’s municipal department of transportation: “These plans have gone far enough, they are ready for construction as soon as funding becomes available.”

Lamb said she was picked to manage the sales effort at Liberty Square last fall after performing similar duties at another Keystone development.

She said it’s fair to describe her as a disgruntled former employee. She worked for Keystone from July through February, when she was fired for reasons that she said are not clear to her.

Lamb said she checked the status of Liberty Square with local transportation officials in October because she wanted to be knowledgeable.

Real estate agents must tell buyers of any significant fact, such as future road plans, if the issue is serious enough a reasonable person would want to know it before buying. Agents can lose their licenses if they don’t.

Another reason for putting the warning in sales packets was it allowed her to live with a clear conscience, Lamb said. “If I work in that community, I have to see these people on a daily basis. I have to live with whatever I’ve done.”

It caught her off guard, Lamb said, to learn the Urban Loop might intrude on the development. Before informing her superiors, she asked transportation planners to send her a copy of the official map showing the right-of-way’s new course.

She placed it in Wallace’s hands at an Oct. 10 sales meeting, Lamb said.

“When I approached Scott about the Urban Loop, he said we thought it was not affecting Liberty Square,” said Lamb.

So she added the disclosure statement to her brochures. She heard no more until Dec. 19, when another Keystone employee told her on Wallace’s behalf to remove it, Lamb said.

A different employee called several days later, again at Wallace’s behest, to remind her the warning needed to go, she said. She meant to follow the company president’s directive, Lamb said, but had not gotten around to it.

“He went by there (Liberty Square) that weekend and found that it had not been pulled,” Lamb said of the statement. “I didn’t understand how passionate he was about it. I didn’t understand the urgency he felt.”

The issue was not whether to disclose that the Urban Loop existed, but when to let the cat out of the bag, Lamb said.

Keystone preferred to do it as a sale moved forward, often when interested buyers met with company representatives to put together a contract to buy one of the units, Lamb said

In her opinion, she said, it was more fair and aboveboard if the issue was laid on the table right at the get-go.

Liberty Square residents Lester and Debbie Jones said they did not learn about the Loop until they were finalizing their purchase contract last May and noticed, among papers to be signed, a statement that the Loop would be “in the vicinity of Cotswold Avenue” nearby.

The Keystone representative did not volunteer an explanation, the Joneses said Friday.

“I asked,” Debbie Jones said. “She was like, 'No, I don’t think you have anything to worry about.’ ”

“It was just a brush-off comment,” Lester Jones said.

They went ahead and signed the statement acknowledging their awareness of the road, which will be Interstate 840 through that area.

Their neighbor, Rob Moore, remembers learning about the Loop not from Keystone but from a separate real estate agent who was representing him and his wife, Marcia, in their purchase.

Moore went to the state DOT’s local office and met with a highway planner who told him it would be years before the road is built and it would stay clear of Liberty Square.

That was about 18 months ago, Moore said Friday.

The information was accurate then, but the road’s path has changed because DOT engineers took the unusual step of routing it slightly outside the official corridor identified in 1996, said Mike Mills, DOT’s divisional engineer for Guilford and four other counties.

Highway designers almost always stay within such corridors, and he’s not sure why they didn’t this time, Mills said.

Meanwhile, Lamb said she is not cowed by the thought her former employer might take legal action against her.

“I have kept very accurate and specific notes,” she said.

 

Contact Taft Wireback at 373-7100 or taft.wireback@news-record.com

 

Accompanying Photos

Jerry Wolford (News & Record)

Photo Caption: Some Some Liberty Square residents say they did not learn about the loop until they were finalizing their purchase contract. The agent told them they had nothing to worry about.  

Liberty Square chronology

SUMMER 1996

  • Landowner Charles E. Nelson  deeds a 5-acre tract at the edge of the Battle Forest neighborhood to the Battle Forest Friends Meeting. 
  • NC DOT engineers file plans for the western Greensboro Urban Loop along the northern edge of the Friends’ property.

SPRING 2005

  • Would-be developer Dixie Hull  has a contract to purchase the land from the Friends group.
  • The Greensboro Zoning Commission approves Hull’s plan to build 25 town houses on the 5-acre site, over the objections of some nearby residents worried about traffic congestion. Vote: 8-1, with one abstention.
  • Site loses previously planned sound barriers under federal rules banning noise protection for new houses along a corridor for a future road.

FEBRUARY 2006

  • North Carolina Yearly Meeting of Friends,  recipient of land from discontinued Battle Forest Friends Meeting, completes sale of land to Hull for $375,000.

MAY 2006

  • Hull decides not to develop newly bought land, sells instead to Keystone Group for $512,500 .

2007

  • Keystone Group builds 25 town houses in a 12-building layout similar to original design, units selling $224,000 to $290,000 .

2008

  • May 15, roadway engineers in Raleigh finish construction-ready design for Western Urban Loop.
  • New right-of-way line runs south of original plans, cutting through six units of Liberty Square development.

Sources: Guilford County Register of Deeds, N.C. Department of Transportation, City of Greensboro, Interviews
 

Completing the loop

About 25 miles of the Greensboro Urban Loop’s 44 miles  have been built. Here’s the outlook for the last three segments:

  • Next, from U.S. 70 to U.S. 29 on the city’s eastern side: Final land purchases start this year, construction beginning in 2012. Estimated cost: $132 million. 
  • From Bryan Boulevard to Lawndale Drive, the last leg on the loop’s western side: Final land purchases and construction sometime after 2015. Estimated cost: $213 million .
  • From U.S. 29 to Lawndale Drive across northern Greensboro. Likely last section built, not scheduled. Estimated cost: $115 million .

Big Changes Ahead

  • The area north of Guilford Courthouse National Military Park  will see some of the Urban Loop’s most profound changes in local traffic patterns. When built the project will:
  • Turn the lower part of Old Battleground Road into a cul-de-sac, just south of what is now Cotswold Avenue .
  • Link the northern part of Old Battleground to extended Lake Brandt  Road, which will go over the Loop on a bridge and link with what remains of Cotswold Avenue on the other side.
  • Provide a pedestrian bridge over the new road network for the Bicentennial Greenway  through that area.

 

Comments

This article has been closed to new comments. Comments are generally closed after 14 days. However, comments may be closed earlier at the discretion of the News & Record.

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Norm*

May 10, 2009 - 6:41 am EDT

Great reporting, a couple steps beyond the last story and a thank you to Ms. Lamb for coming forward.

Illiterati

May 10, 2009 - 8:52 am EDT

I agree. Very well reported. This property is precisely the one I was alluding to in my comment on the Quail Oaks story, where I expressed hope for a follow-up on other new construction in the Loop's way. Glad to see Taft Wireback on this beat.

During construction of Liberty Square, which I lived near at the time, I wondered if the buyers knew that the Loop was going to either cut through it or run right next to it. Now we know. Those aren't inexpensive townhomes either. I believe they start in the $200k range.

That neighborhood is so quiet and pleasant now. The Loop is going to destroy it. Plus, Battleground Park won't be the same quiet refuge from the city that it is now.

Panacea

May 10, 2009 - 9:21 am EDT

I had no idea the loop was going so close to the battleground. That sucks: it's a great, peaceful area. I lived near there for about a year--nice neighborhood. I agree: the Loop will ruin it.

Glad this lady came forward. Sounds like someone's going to end up in court, but it won't just be Lamb.

ncb

May 10, 2009 - 10:07 am EDT

Sounds like Ms Lamb is trying to save her own hide by throwing Wallace under the bus. You people call this courageous, I call it slimy

Norm*

May 10, 2009 - 1:16 pm EDT

I only know from experience that slimy is hard to judge when not in the person's shoes. Mea culpa: I've done sales and I've taught school, and frankly you have to dance on the border of unethical behavior at the request of supervisors in both instances. I also chose to leave both as soon as I could financially afford to move up and out. But, she has come forward and I have not so, I guess I'm slimier than she. Therefore, I guess I'm fine with complimenting Ms. Lamb, having walked down a difficult path and saved no one but myself.

ncb

May 10, 2009 - 8:21 pm EDT

I dunno, but its a similar pattern of behavior displayed for thousands of years: Get caught doing a no-no, blame someone else. And in this case, Ms Lamb gets to blame one of those evil, monstrous developers. Sounds to me like she found a captive audience in the N&R. Shocking, I know

betsylamb

May 10, 2009 - 10:24 pm EDT

I would like to know what it is that I have gotten away with or how and why I would be throwing someone else under the bus....I was and am not in trouble. I was in no way doing a "no-no". Even though I was asked to pull the written disclosures, I was disclosing. Sounds like you work for Keystone. I tried to do the right thing and did not bring this to light until after the article was released last week.

Jessica

May 10, 2009 - 11:24 pm EDT

I happen to know Ms. Lamb and can speak for her character as an agent and I can tell you that the assumption that she is simply trying to cover her but is simply not true. The real estate comunity is a very tight knitted community and it could be possibly a disadvantage for Ms. Lamb to come forward with any negative information about a builder she was previously employed by. She could very well stand the chance of being labeled a problematic employee and have a hard time finding employment. I praise Ms. Lamb for comming forward and I know that she did have the customers' interest in mind. The comments do seem to appear to come from a current Keystone employee in an attempt to protect the company. So lets not burn her at the stake for doing something that I know was very difficult for her to do. Let's just wait and see how this thing spins out, however being a tax payer in Guilford County, I do not believe the tax payers should have to foot the bill. I believe whomever is found to be responsible needs to foot the bill. Times are hard enough for tax payers!

ncb

May 11, 2009 - 7:33 am EDT

It seems like you were more interested in making a sale than informing buyers. Now that some homeowners have come forward and are peaed off, youre taking cover and passing the buck under the pretense of 'doing the right thing' and exposing one of those evil developers. You got caught with your hand in the proverbial cookie jar and do not want to face the consequences for your actions

betsylamb

May 11, 2009 - 7:45 am EDT

You clearly don't know what you are talking about. I made no sales after the disclosure was removed from my packets, therefore my hand is not in the cookie jar. My last sale at Liberty Square was in late November, when the urban loop was still disclosed at first contact. I also personally discussed it with the purchaser. I am not in jeopardy in any way from this. I was the one more interested in disclosing at first contact so that if it compromised the sale it did so prior to the buyer investing time in Liberty Square, and my time as well. I have no reason to pass the buck because I never made a sale there after the disclosures were removed. Maybe you should read the article again. I say again that your negativity leads me to question your motivation in these posts. The only consequences I may face in this situation is from coming forward. If I had kept my mouth shut there would be no consequences at all for me, but certainly more for the potential homeowners at LS.

Jessica

May 11, 2009 - 9:57 pm EDT

ncb is definitely a Keystone Home employee. They know if Keystone Homes look bad they won't make no money because people will not buy from them, all of the sales agents on their staff will recieve a backlash from what they see as bad publicity. So lets ask honestly who is trying to cover their butt. This article and similiar articles hopefully will force developers to be more honest and provide their agents with the most updated information so that home buyers may make a wise decision. That is one of the good things that I see that can come out of this.

Deloris

May 11, 2009 - 10:03 am EDT

I live in a development (Meadow Oaks) built by Keystone Group, and I and other residents know first hand about misleading information from this company. We had a rezoning issue with this company, and went before the City Council last year, and won the first hearing. Scott Wallace filed for a reconsideration and won the second hearing, and nothing had changed from the first hearing. We are still trying to figure out what happened! Betsy, I know what you are up against, and I applaud you!

Paul J

May 10, 2009 - 3:48 pm EDT

I wonder where the lawyers are?

Wally43

May 10, 2009 - 6:55 pm EDT

"Caveat emptor" ...."Let the buyer beware". A local mover told me about the urban loop 4 years ago that would come through Cotswold Ave because he was hoping to get moving contracts for affected residents. It is a shame that new residents to our community can be mislead about an issue as serious as an urban loop being built in the back yard of their newly built home. All in the name of corporate profit. I have seen to many times where the seller side answers a direct question with an "I do not know anything about that" and "it is just a document that needs to be in the file, just sign it". When the buyer is that far into the transaction (closing and moving day), the buyer signs a critical document that was convenlently not disclosed by the seller anywhere else in the buying process. It is a shame that the person who buys once every 10 or 20 years has to be "buyer beware" of the person that deals in that process every day of their working life.

Panacea

May 10, 2009 - 7:10 pm EDT

I agree. Slipping a document in at the last minute like that may fill the letter of the disclosure laws, but it sure misses the spirit.

Norm*

May 10, 2009 - 7:33 pm EDT

Well, I guess then I'd like the someone to get a word from the local real estate folks at http://www.grra.org/ or perhaps the North carolina real estate commission http://www.ncrec.state.nc.us/. This is an ethical issue which our government has either passed on to the professional association or should be handling themselves. Not that real estate folks aren't ethical, but someone here should make a statement to the paper regarding the level of ethical behavor this example represents. They either have to say "this is within the ethical behavior" or " this steps over the boundary". If they say nothing, then we know how to treat real estate folks from now on. Like they're thieves. And if the real estate folks in town reading this don't step up to the plate on this one, even anonymously on this forum, then like they say, if it looks like a duck. . . .

gsoagt

May 10, 2009 - 7:54 pm EDT

I agree with you Wally. When I was shopping for my home 7 years ago, I worked hard to be an informed consumer. If I am not mistaken, the map of Greensboro I got from the Chamber even showed the future route of the Urban Loop. Knowing that could change, I steered clear of it. I also used the City of Greensboro Website to explore the Noise Cone from the Airport. That changed too, but I am just on the edge and not bothered by the noise.

Wally43

May 10, 2009 - 8:41 pm EDT

I typed in "Greensboro Urban Loop Map" on Google and got a link to the Urban Map with interchanges. Then I expanded to 200% and I could see the intended direction of the Loop at Cotswold and Old Battleground Rd.. I always wondered how the 4 lane road would affect the homes on Cotswold that were on the right as you headed from Lawndale to Old Battleground Rd especially after hearing a moving company tell me about the proposed loop path 4 years ago. Then I wondered much later why a developer would build on a tract in the path of a 4 lane urban loop road. Now you have to wonder why a developer bought 2 tracks that both lie in the proposed urban loop path (One at US 29 and one at Old Battleground Rd and Cotswold Ave). Now you have two stories in two weeks about incidents where the developer alledgely withheld the proposed urban loop road disclosure from prospective new home buyers. Many buyers by personality will not want to pursue calling off a transaction when they are at a closing table. The closing package has 90 plus pages and it is easy to push one disclosure document for signatures when the frame of the mind of the buyer is getting the process over with and the real estate purchase mortgage loan closed. It takes a strong direct personality to stand up and hold their ground on one document that discloses the urban loop and say they are walking out and obtaining legal counsel. The seller can play the percentages on the hope that 9 out of 10 buyers will not object and will not walk at closing. They will move into their new home that afternoon and deal with the urban loop later on.

Laura

May 11, 2009 - 8:18 am EDT

Some of the comments here in defense of this developer seem to be from people who are suspiciously familiar with the ins and outs of predatory practices in lending and real estate. Not every consumer is as knowledgeble about the potential slimy practices of this unsavory business. We hope that the law will protect us. And honest developers and agents want regulation too, because they know it engenders trust in the system and protects the whole industry. Now everyone is suspicious. Who does that serve?

I don't think many people want to live in a society where it's "winner take all" and where "caveat emptor" means that those in the know get to screw those who are less informed of very compllicated legal and financial matters. Housing finance is very complicated and there are lots of opportunities to take advantage of consumers who don't spend every waking moment living and breathing real estate. That's why there are laws and we need more of them -- not less.

Norm*

May 11, 2009 - 1:01 pm EDT

I agree with you Laura. I hear a whole bunch of quacking going on. If I had to do that much work to guarantee a home is worth the price, what was the real estate agent getting 6% for? Do lies of omission cost that much?

kwalk34

May 12, 2009 - 5:31 pm EDT

I previously worked for Keystone. I think it a shame that such a company committed to its customers, and also to that of its employess to be put on the front page of the news with a "disgruntled" employees comments. I witness this employer go above and beyone to make sure there was customer satisfaction. A director with the company purchased a home in the Liberty Square development. This was proposed, and like the post earlier it had been proposed over 15 years ago, with nothing definite until recently. I think this was a biased story, and I think it is awful that this company which is dedicated to its employees and to its customers. I have the seen the company build homes for Habitat for Humanity. It was a great company to work for. Perhaps, I view them differently since I was not fired. I just feel that this company is not just out for themselves, but is actually trying to build homes at a great value, and are always willing to go above and beyone. This company even offers lease to home plans for those unable to buy, and have credit programs to help the consumer prepare to buy. A shame that a great company is tarnished.

Elmer

May 13, 2009 - 4:17 pm EDT

"....this company which is dedicated to its employees and to its customers. I have the seen the company build homes for Habitat for Humanity. It was a great company to work for."

I'm sure. Probably Christians too.

Illiterati

May 14, 2009 - 8:36 am EDT

I wonder how much you would love Keystone if you were a buyer at Liberty Square or Quail Oaks who was told that the loop would "maybe be built someday," but then found out either that your new home was to be razed or that the loop was on the verge of being in your backyard. I bet you'd be plenty disgruntled then. If you were my agent and had sold me one of these homes, you can bet I'd express my disgruntlement toward you in the form of a nice fat lawsuit.

weatherwithyou33

May 11, 2009 - 4:59 pm EDT

When we moved here some 15 years ago our realtor told us of the proposed "Urban Loop" and directed us to stay away from certain areas that could be in the potential path. I can't believe that at this day in time that any realtor would risk the fallout of not disclosing such an issue very early on but it does sound like it was disclosed at some point which should be all that was needed. Certainly if is was presented to the buyer, and not in micro print on the last page of the contract, then the buyer had a choice to say no.

While it sounds like this developer was attempting to be deceptive and probably was deceptive I think the real problem falls within our city council and city planning committee. How can these people continue to give the okay to developers who want to develop in close proximity to the Urban Loop. Specifically, residential developments should not be allowed along this path until the project is finished in order to minimize the impact to potential buyers. I guess this is what happens when tax revenue is king and the same old politicians run the government year in and year out.

NRay

May 12, 2009 - 7:49 am EDT

In real estate titles, as is the case with every other commodity, you generally get what you pay for. The real estate sales game is for the most part rigged for sellers. The seller pays almost all of the cost of moving a title from itself to a buyer. Notice on the settlement statement that the party paying that 6% is the seller. That means the real estate agent works for the seller. That's right, the agent is not working for you, Buyers. You are not paying that agent. The agent owes you some duties of honestly responding to your questions, but the duties are quite limited. And Buyers, your lender is even less concerned. The lender approves the loan. That's all. You may protect yourselves by hiring your own professional, whether that's your own real estate agent or attorney, and paying them yourselves. This is not cheap. Ask any commercial property buyer and they will tell you that they spend large amounts of up-front money on "due-diligence" before they will close. Buyers, your problem is that you want all of the protections without paying for them. You won't hire a buyer's agent and you absolutely won't hire an attorney to look into matters such as Liberty Square and give you an opinion before you are ready to sign a contract to purchase. Commercial property buyers would not dream of behaving so recklessly. Instead, you chose to sit down at a table with a Seller party possessed of all the information, and obligated to disclose only that information the law strictly requires. (And all being good free-marketeers, we do despise "the government getting involved in our lives" through regulations anyway, don't we?) They will always find a loophole for non-disclosure, regardless of legal requirements! In the current system, you have to hire, and pay, your own gun.

Newspaper Reader

May 16, 2009 - 8:15 pm EDT

We got a heads-up on the loop when we were looking for some property in Greensboro about 14 years ago. The first thing the Realtor did was give us a map of Greensboro and point to an obvious double dotted line that circled Greensboro. She told us that the double dotted line eventually would be a major interstate-type highway and that neighborhoods close to it might be heavily impacted. We found it hard to believe that a major highway would be going through all those quiet neighborhoods! I also remember our second-guessing ourselves and wondering if we were being over-cautious nixing neighborhoods just because of a simple double dotted line on a map. Fortunately, we decided to buy away from that double dotted line and, after watching the loop brouhaha over the years, we consider ourselves very lucky to have had the benefit of an honest, knowledgable and professional real estate agent in our property search.

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