By FRANCISCO E. JIMENEZ
Staff Writer
reporter@sbnewspaper.com
The former Dolly Vinsant Memorial Hospital has changed hands from Southern Counties Investment Group, LLC to 4R Realty Investors, LLC. (Staff photo by Francisco E. Jimenez)
The facility formerly known as Dolly Vinsant Memorial Hospital may not see its doors open for at least another year, according to Eddie Lopez, principal owner of Southern Counties Investment Group, LLC.
The group acquired the building, which for over half a century served the San Benito area’s medical and hospital needs, following a unanimous decision by the San Benito City Commission on December 4 to accept its $10,000 bid. However, Lopez, citing lack of funding to pay for costs associated with Dolly Vinsant’s renovations and opening, said the group has transferred the property to another company.
“We already sold it to another company,” said Lopez on Tuesday. “We needed to add more investments, so we called another company. We did not have enough money to make renovations and do what we needed to do.”
According to the Cameron County Appraisal District, the original deed for Dolly Vinsant changed hands from Cameron County to Southern Counties Investment Group, LLC effective Dec. 6. Five days later, on Dec. 11, the deed once again exchanged hands from Southern Counties Investment Group, LLC to 4R Realty Investors, LLC.
Information regarding the amount that 4R Realty Investors, LLC paid for Dolly Vinsant has yet to be disclosed.
In the meantime, Lopez, who commented that his group was still involved in future plans for Dolly Vinsant, said he was unsure of what the building’s primary function will be once renovations are complete, but he did remark that it will continue to serve in a health-related capacity.
“Renovations will not be complete for some months now, maybe years, maybe more,” said Lopez. “There’s a lot of money that needs to be put there. We don’t know if it’s going to be a clinic or medical center. We’re not real sure if it’s going to be a hospital. It is very difficult because the government asks for a lot of permits.”
Lopez said that the company is collecting private investments from doctors in Mexico but it is going to take a lot more to get Dolly Vinsant back in operation.
“We spent money to get the property and pay the taxes,” said Lopez. “But it’s going to take a lot of money…and more investments because we don’t have enough.”
When last reported in December, back taxes owed on the facility, appraised at approximately $1 million, at that time was $284,000, based on fees from 2010-2012.
Last summer, Lionel Betancourt of the San Benito Rotary Club initiated a campaign later dubbed “Save Dolly” that enjoyed the volunteerism efforts of dozens of citizens of San Benito and residents of surrounding communities. Their goal was to restore the forlorn hospital following years of deterioration that included a flooded basement, dilapidated structural conditions and vandalization that included the theft of the facility’s copper wiring and other items.
The Save Dolly efforts have also helped to keep the facility’s grounds landscaped – efforts later continued by City of San Benito and San Benito CISD maintenance crews.
On Tuesday, Betancourt expressed skepticism regarding the building’s change of ownership. “I don’t believe anything until about two days after I see it,” Betancourt said. “This is total guesswork. There’s been so much said and rabbit trails that we’ve been taking on this thing. First we were given permission to go in and clean up the building and that was taken back, then highest bid had been accepted only to have that taken back for the lowest bid. We were delighted to see so many people have interest in [Dolly Vinsant], but it was all taken back. Why?”
Betancourt further remarked, “I am extremely disappointed, and it’s kind of a personal thing because so many people came forth and said they really wanted to do something with it as far as helping restore the facility.”
Attempts to gain comment from City Manager Manuel Lara and Mayor Joe H. Hernandez were unsuccessful as of presstime.
The hospital’s namesake, Wilma “Dolly” Vinsant, was a wartime nurse from San Benito who served and died during World War II.
Read this story in the Feb. 6 edition of the San Benito News, or subscribe to our E-Edition by clicking here.
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Prior to the sale of Dolly, the three taxing entities – Cameron County, SBCISD and City of San Benito — who are represented by the firm of Linebarger, Goggan, Blair, and Sampson, tax attorneys entrusted with the sale of Dolly for the taxes owed, met with a representative of the tax firm and, in at least the case of San Benito, did so in Executive Session, behind closed doors and out of the hearing of the public. Each of these taxing entities then voted to sell Dolly, a building appraised at $1,020,356 to “Southern Counties Investment Group, LLC,” for the sum of $10,000 plus $284,000 for taxes owed for the years 2010, 2011 and 2012.
On December 4, 2012 the City of San Benito Commissioners voted to approve the sale of Dolly, the last entity needed to finalize the sale. Since then we have learned that on December 6, according to the Cameron County Appraisal District, the deed for Dolly was transferred to Southern Counties Investment Group, LLC. According to this article, five days later Dolly was transferred from Southern Counties to its present owners, 4R Realty Investors, LLC because, as Eddie Lopez states, “We did not have enough money to make renovations and do what we needed to do.”
Could not find “Southern Counties Investment Group, LLC” registered with the Secretary of State, but did find “SCIG, LLC” registered to one Eduardo R. Lopez with addresses on N. 13th Street, Harlingen and West Price Road, Brownsville. The stated purpose of this LLC under “Article 4,” of the “Certificate of Formation Limited Liability Company” form filed May 27, 2011 is, “This company is organized for the conduct of any and all lawful affairs for which a limited liability company may be organized. This company may also engage in sales and finance of Real Estate.”
4R Realty Investors, LLC, is located at 185 E. Ruben Torres Blvd., Brownsville, TX 78520. The corporation was filed with the Secretary of State on November 30, 2012 and the “registered agent” is Ryad Bakalem. It lists 4 “Managing Members,” of which Ryad Bakalem is one. The others are listed as “Jose Luis Rodriguez, Jr.,” “Jesus Roberto Rodriguez,” and “Jose Luis Rodriguez Berlanga.” All managing members use the above address in the filing. Their stated purpose is “The purpose for which the company is organized is for the transaction of any and all lawful business for which limited liability companies may be organized under the Texas Business Organizations Code.” There is no hint in their purpose statement of what they intend to do with Dolly.
Which brings me to the following questions:
* Did the three taxing entities and tax attorney not do their due diligence on “Southern Counties Investment Group, LLC” to determine its financial viability to afford Dolly Vinsant so that it does not return to the tax delinquency in the future?
* Did Southern Counties misrepresent themselves, their financial resources and their intentions to mislead the entities into approving the sale?
* How is it possible that within 2 days after SB, the last taxing entity to approve the sale, that Southern Counties was able to determine they had insufficient funds to carry through on their representations and sell to 4R Realty Investors, LLC?
* How is it possible that the three taxing entities could approve the sale of a building appraised at over one million dollars, taking that money out of the coffers of the taxpayers, to a company who could not deliver on its representations?
* Or did Southern Counties Investment Group, LLC deliver on its representations? Did the taxing entities, or some of the members of the entities, know that SCIG was just a shill, a decoy, a hustler for 4R all along?
* Has a fraud been committed here? Were the taxpayers fleeced out of hundreds of thousands of dollars of assets that could benefit a community? Is this why none of the elected officials talk about it publicly?
In just about every city anywhere not named San Benito, elected officials hold press conferences, photo ops and make public spectacles to welcome and tout new business when it comes to town. Not here. Everything here is done in secrect by our elected officials, unless they want to scream for transparency when it’s convenient for them. It’s a crying shame.
Someone needs to look into the facts surrounding this fleecing of taxpayers.
Give then time they are trying to get investors.
Fed up, I agree. I don’t neccessarily agree with Mr. Betancourt’s affilations, but I do appreciate his efforts in rallying the community to “Save Dolly.” He, as well as all the others involved, should be commended for their efforts. Regardless of personal differences or the now suspect circumstances surrounding Dolly, give the man his due respect in this instance. This is an example of the type of vision and initiative this community needs.
According to the tax attorney that was involved in the sale of Dolly, if it had not been for the Save Dolly effort spearheaded by Lionel Betancourt, the hospital would still be sitting there “unsold.” So, Mr. or Ms. “We, the People,” why are you being so negative? Get with the program or step aside!!!
But why bash Lionel? He, & many others, put their heart & soul into Saving Dolly. He tried, that’s what’s important. He gets an “A” in my book.
So long as taxes are now paid up and kept current, they can do what they wish.
This whole deal,from square one reeks of corruption,keep it up San Benito.
Online poll suggestion: “It is going to be knocked down and something else rebuilt.”
What was the estimate by a former investor to rehabilitate the current structure, $7,000,000? If the current Stonewall guestimate is $3.5M, will probably take at least that to bring Dolly up to current hospital codes. The real value is in the 7.1 acres. Probably more cost-effective to knock down the existing building and build a 2-story structure on the land. Since the taxing entities were more concerned with collecting the $284,000 in back taxes than the historical value of the building, that will probably be Dolly’s eventual fate.
WTG, Commissioner TONY Gonzales, for being the only commissioner voting against this sale!
Remember several years ago when there was a lot of hoopla surrounding the Stonewall as a potential site for several ideas including Chamber offices, City facilities, etc? Not sure who started that movement, but the idea was immediately abandoned when it was determined that the hotel would be an endless money pit.
Maybe Betancourt should get involved on a “Save the Stonewall” movement…on second thought, that might be the worst thing that could happen.
Reforming SB:
There is a Southern Counties Investment Group, LLC registered in New Jerseywith a register date of 02/01/2012. I wonder if this is the same company?
According to the Cameron County Appraisal District database, the local company by the same name owns primarily residential and small commercial properties including lot(s) in Green Valley Farms. The CCAD database currently lists a total of 5 properties under that name but does not show the Dolly Vinsant transaction. The transactions listed appear to be properties purchased from tax deed sales.
If one queries under the business name ‘Southern Counties Investment Group, LLC’ in the Texas Comptroller of Public Accounts Taxable Entity search it comes back ‘was not found”.
References:
Cameron County Appraisal District
http://propaccess.cameroncad.org/clientdb/?cid=1
Texas Comptroller of Public Accounts Taxable Entity
https://ourcpa.cpa.state.tx.us/coa/Index.html
Sounds pretty shady. They take possession and 5 days later sell it because they don’t have the money to fix it? They didn’t know that when they bid?! Sounds like South Counties Investment Group, LLC was a front company to purchase the property for 4R Realty Investors, LLC, so that the agreement would not attract scrutiny from the taxing authorities for some of the principles. Who are either of these LLC’s? Goggled both and didn’t come up with either as a current legitimate company.
The “Save Dolly” backfired, eh Lionel?