CSX Cancels Purchase Agreement With JoCo Landowner | Eastern North Carolina Now

 Publisher's note: The author of this post is Don Carrington, who is vice president at the Locke Foundation and Associate Publisher for the Carolina Journal, John Hood Publisher.

Railroad will not honor $5,000 promise

 RALEIGH — On Jan. 28, two days after a spokesman for Gov. Pat McCrory said a proposed 450-acre transit hub near Selma "does not appear to be a viable option," a CSX rail official sent a letter to Johnston County landowner Chuck Warren stating the purchase agreement he had signed on Jan. 17, "is hereby terminated and considered null and void." The letter came from CSX Director of Acquisition and Development Cameron Wilson, based in Jacksonville, Fla.

 Warren told Carolina Journal on Wednesday that the purchase agreement stated that he would sell CSX 4.47 acres for $40,000, and if the project did not go through, CSX would pay him $5,000 for signing the agreement. After receiving the termination letter, Warren contacted CSX about the $5,000 and was told he was not going to get it.

 "So it looks like CSX can change its mind, but I can't. Now I don't want to sell because CSX is deceptive," he said.

 Warren provided CJ with a copy of his purchase agreement. The agreement stated that if CSX fails to terminate the agreement before the closing date of July 1, 2016, then Warren would receive $5,000, completely releasing CSX of any liability. The agreement also stated that if Warren defaults on the agreement, CSX may seek monetary damages from Warren or "pursue any and all other rights and remedies available to it at law or in equity." Relevant portion below.


 Since CSX canceled the project before the closing date, Warren will get nothing.

 CSX spokeswoman Kristin Seay would not discuss Warren's purchase agreement cancellation with CJ. "We don't have any information to share beyond our most recent statement from Jan. 27," she said.

 In that statement, provided to CJ, CSX spokeswoman Caitlin Farhat said, "CSX is committed to this infrastructure project, which will create jobs, deliver a distinct competitive advantage for large and small businesses, and spur economic development. We look forward to working with all interested stakeholders to address concerns and move the project forward."


 Trent Lassiter, another property owner in the project area, owns The Farm, a special-event facility he completed in 2013. The Farm hosts wedding receptions, business meetings, parties, and concerts. Lassiter said on Jan. 14, the day McCrory announced the transit hub, CSX's Wilson told him the railroad would take The Farm for the project.

 Lassiter didn't sign an agreement with CSX and has made it clear that he doesn't want to sell his land for any price. Lassiter told CJ on Wednesday that other landowners told him they also had been promised $5,000 for agreeing to sell, but that CSX had canceled their agreements as well and the company would not honor the $5,000 agreed to.

 Lassiter said he is trying to get CSX to tell him the status of both his property and the project in general. "I have not heard from CSX since Jan. 14," he said.