Over the past few weeks, the City of Aiken has fielded several legal questions regarding the proposed Downtown Revitalization Project. Below is a compilation of those questions and responses from the city’s legal counsel and real estate professionals:

Q: Did City Council follow all requirements under South Carolina law each time executive sessions were held to discuss option agreements related to the Shah and Anderson properties?

A: Yes

Q: On what grounds were executive sessions called?

A: Section 30-4-70 of the South Carolina Code of Laws dictates when City Council legally can discuss matters behind closed doors. In these particular cases, Council was allowed to discuss the Anderson and Shah property options during executive session because several matters covered under the rules of executive session were to be debated, including proposed contractual arrangements, the proposed sale or purchase of property and the receipt of legal counsel related to matters protected by the attorney-client privilege.

Q: What does the public have a right to know about what transpired in those meetings?

A: The specific purpose of the meeting.

Q: Why are executive sessions typically held?

A: An executive session is essentially a meeting within a meeting — a special closed session of Council in which more candid, confidential conversations can take place. It may occur before, in the middle or at the end of a regular Council meeting. Select senior staff members may be invited to join for part or all of the session. Outside advisers (e.g., lawyers, auditors, consultants) also may be invited to issue findings or to provide professional guidance.

Q: What specific topics are often discussed during executive sessions?

A: Various matters allowed by state law including:

• Current pending legal matters

• Consultations with the auditors and compensation consultants

• Property acquisitions or property disposals, including options

• Personnel issues and actions

Q: Did the City Manager have the authority to sign the options and provide the payments required?

A: Yes

Q: What funds were used to pay for the property options?

A: The City’s Economic Reinvestment Fund, money intended for projects of this nature

Q: Was Mrs. Anderson legally bound to the city as soon as she signed the option agreement?

A: No, the option was not a binding agreement without a city signature, and Mrs. Anderson could have sold the property at her discretion without notice.

Q: Did legal and real estate professionals draft and approve the language for the options of the Andersons and Shahs?

A: Yes, an option is a legally binding document, and it was drafted and approved by our legal team.

Q: What experience does the legal staff have in real estate law?

A: The lawyer who drafted the agreement has 15 years of real estate experience and is fluent in residential, commercial, and municipal real estate law. The City Attorney, who has 25 years experience and has served as City Attorney for 21 years, reviewed the agreement. Members of the City’s legal team who are assisting with the Downtown Revitalization Project also reviewed the agreement.

Q. Why was there such a long stretch of time between the City purchasing the options and public notification exclusively to the Aiken Standard?

A: Full appraisals on both properties were required, which took several months to complete.

Q: Did the property owners require anything of the City before signing the options other the modest fee?

A: No

Q: What happens if the city does not transfer its option to a developer?

A: The option expires and the City has no further obligation.