Joe Hardy wins in Pennsylvania Supreme Court
The Pennsylvania Supreme Court handed a victory to Nemacolin Woodlands Resort on Aug. 21 when it upheld the decision to grant a casino license to Joe Hardy, the founder of both Nemacolin and 84 Lumber.
The connection between the two businesses was factored into an objection raised by Mason-Dixon Resorts, which wanted to build its own casino but lost out when the Pennsylvania Gaming Board awarded Nemacolin the only slot machine license.
Mason-Dixon claimed that the close relationship of Nemacolin to 84 Lumber, which it accused of being financially unstable, made Nemacolin a poor choice for the license. The court disagreed.
Hardy also won the legal skirmish over background checks, which Mason-Dixon claimed were inadequate and “failed to reveal various problems.”
Without getting into specifics because of confidentiality, the appellate judges said they looked into the “allegations of wrongdoings by a principal of [Nemacolin], specifically Joseph Hardy, the crux of which was determined to be unsupported. All records of the alleged incident were expunged. No criminal prosecution was pursued and no conviction resulted.” Gaming board investigators examined other evidence, and the board heard testimony during closed sessions, the judges noted. “We find neither a violation of the “prudent man” rule nor a capricious disregard of the evidence.
The appellate judges also decreed that, although both Nemacolin and 84 Lumber are owned by a family trust, a financial review of the application was able to determine that “any alleged financial instability of 84 Lumber would not undermine the financial suitability of the proposed [Nemacolin] gaming facility.”
Barring any other appeals, the ruling clears the way for Nemacolin casino, which will feature 600 slot machines and 28 gaming tables, as well as a restaurant and lodge, to open in 2013. It will be named “Lady Luck.”
Former Stock executives form LBM holding company
Former Stock Building Supply executives Fenton Hord and Steve Short are among the industry veterans behind Cornerstone Building Alliance, LLC, a new holding company looking to invest in distributors, manufacturers and installers.
Cornerstone’s leadership team includes president and CEO Steve Short, former Stock Building Supply COO, and Fenton Hord, longtime president and CEO of Stock and current Board Member of Investors Management Corporation (IMC), Cornerstone’s parent company.
“The timing for Cornerstone is outstanding,” said Short. “The building materials industry has suffered through the worst housing depression in history. Many good businesses have survived and are in need of a partner such as Cornerstone to take advantage of the opportunities a recovering market will present.”
Cornerstone targets companies with annual revenues of $10 million to more than $100 million, including one-step manufacturers, distributors and installers of dimensional lumber, engineered wood, roof and floor trusses, wall panels, sidings, windows, exterior doors and millwork, roofing, drywall, interior doors and millwork, cabinets and countertops. The Raleigh, N.C.-based company expects to maintain local and regional brands, keep management teams in place and offer them operating autonomy.
While Cornerstone requires a majority position, they want management teams to retain ownership in the company. “This allows our partners to financially participate in the recovery of the market and the success of the business. It also encourages them to continue making the best long-term decisions,” Short added.
Hord grew Stock from seven locations with $98 million in sales in 1987 to more than 350 locations with more than $5 billion in sales via 68 acquisitions when he retired in 2007. “We know the business, we like the business and we’re excited about the prospects Cornerstone brings to the industry,” said Hord.
New-home sales continue to grow
Sales of new single-family houses in July 2012 rose 3.6% over the previous month, with a seasonally adjusted estimate of 372,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
This compares with a July 2011 estimate of 297,000, a jump of 25.3%.
The median sales price of new houses sold in July 2012 was $224,200; the average sales price was $263,200. The seasonally adjusted estimate of new houses for sale at the end of July was 142,000, a record low. This represents a supply of 4.6 months at the current sales rate.
Sales were up in the Northeast and Midwest by 76.5% and 7.7%, respectively. In the South, new-home sales dropped 1.6% in month-over-month figures. In the West, the sales decline was 0.9%.