From Northwest Developers’ Port O’ Pines to Treasure Cove, our water and sports community of villas, timeshares and 2500+ lots slowly established itself as a place to live. By the early 1970’s, more than $1M worth of lots had been sold. In the mid 70’s, Treasure Cove became Fairfield Harbour, and its new developer, Fairfield Communities, Inc. continued selling timeshare units and lots for single-family homes. However, financed primarily by junk bonds, over-extended, and lacking an MLS (Multiple Listing Service), the company fell victim to the savings and loan crisis and credit crunch of the late 1980s. In October 1990, Fairfield Communities, Inc. filed for bankruptcy.
The community the bankruptcy left behind lacked the “developer buy-back” option of nearby competitors such as Greenbrier. Fairfield Harbour was a large development located across a bridge New Bern realtors avoided; property owners paid amenities fees as well as dues. Importantly, Fairfield Harbour lacked a local realtor to promote the sale of its high inventory of resale homes and lots.
Enter Margaret and Peter Rose, who purchased the Neuse Realty building and firm on Broad Creek Road. In 1988, it was the only sales and resale office in the area. By the 1990’s the local board of realtors had established an MLS, enhancing the awareness about FH in the business community at large. Using promotions and luncheons to bring realtors and buyers, Margaret and Peter Rose also incorporated nuanced pricing which valued Fairfield Harbour’s property on size and shape, market conditions, location, and available infrastructure.
After Fairfield Community’s Inc.’s bankruptcy, a few hundred homeowners formed the Harbour Recreation Club (HRC) selling charter memberships to raise the monies it needed to function. Although well-intentioned, HRC’s managerial inexperience and only partial support from property owners doomed the enterprise. Confronted with restoration costs, HRC sold its Recreation Center, but still struggled. In 1999, members voted to sell the amenities to MidSouth Golf, LLC.
In 2010, the POA’s community-supported attempt to use dues to purchase the amenities from MidSouth was frustrated by a few property owners on amenity-free lots who sued their POA, claiming the proposed one-time dues increase was really an amenity fee. Other, unrelated lawsuits also plagued the POA.
The resulting turmoil and an economic slowdown adversely affected property value. Ownership of dues-burdened undeveloped properties became less desirable, and local builders saw an opportunity to acquire them at a significant discount. When the slump persisted, investors began shedding their properties. Some owners defaulted on their POA dues, sending their properties into foreclosure. In other cases, the POA offered to accept deeds in lieu to avoid costly foreclosure procedures. Eventually, the POA found itself owning an abundance of non-dues-paying lots.
“Land-bank” organizations now stepped up to buy parcels from the POA and private owners at deeply discounted prices, adding dues-paying properties to the POA balance sheet. As the financial climate improved, the land-bank organizations could now offer residential builders a very favorable environment. Fairfield Harbour already had roads, electricity, water, and amenities — the perfect setting for home development! Inexpensive property in an established community with infrastructure and amenities in place offered an attractive opportunity for home builders such as Adams Homes, D.R. Horton and Treweek Construction and they purchased property blocks of varying sizes from the land-banks.
Thus – the present housing boom!
Through the years of ebb and flow, Fairfield Harbour continues to prosper, proving the resiliency of its residents.
When asked when the boom would end, Margaret Rose responded, “New construction will continue if lots are available. The new boom will come from the need for restoration of older properties utilizing innovative techniques and re-design. A thriving neighborhood such as Fairfield Harbour does not die; it reinvents itself. “
Your FACTS Reporter