(from www.sec.gov)
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Interstate General Co. L.P. |
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From the April 28, 1997 Washington Post
| '96 (in $ 000s) | % Change From '95 | |
| Revenue | 54,374 | 44.2 |
| Net Income | 9,845 | -- |
Description:
Interstate General is a real estate investment and building company, specializing in community development, home building, investment apartment properties and asset management. Its operations are concentrated in the Washington region and Puerto Rico, where it was founded.
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IGC's 40th year may prove to be its most ignominious. If a federal appeals court declines to overturn a February 1996 conviction on four felony counts of criminally destroying wetlands, the company will owe $3 million in damages and its chairman, James J. Wilson, will owe $1 million and will have to serve a 22-month prison sentence. IGC expects a decision by early summer concerning the violations, which took place in the St. Charles community of Southern Maryland.
To increase shareholder value, the company announced a reorganization that will separate ownership of its apartment buildings and its undeveloped land. The reorganization also will transform IGC from its current status as a publicly traded limited partnership to a real estate investment trust. The REIT will hold the apartments, and the undeveloped land will go to Wilson and his family. No exact timetable is set, but the company hopes to be a REIT by the second half of the year.
IGC completed the second of five planned villages in its 9,000-acre St. Charles community. The company is now concentrating on the third sector—Fairway Village—which is being developed around an existing 18-hole public golf course. Financing for Fairway Village has proceeded slowly because of the wetlands case, but IGC plans to begin development by summer or early fall.
In June, IGC's president and chief operating officer, Gregory G. Kreizenbeck, resigned to "pursue other interests." He was succeeded by Edwin L. Kelly, who has been with the company for 23 years.
