We have tried to remain silent in the ongoing war of words regarding the sale of the old BISCO building in which we, VIP Auction Company, represented the city, but feel that after substantial misrepresentation by both The Advocate-Messenger and one of its former employees, we have no choice but to respond.
1. The auction company that sold the property was Rector Hayden Realtors out of Lexington.
2. Rector Hayden, along with the seller, NOT THE CITY, established that the commission would be a 10 percent buyer’s premium, common in auctions, weeks in advance of the sale. This was non-negotiable by the buyer and was announced in writing and at the sale.
3. As stated in previous articles, the city asked the EDP in advance of the sale if it had any interested businesses and was told no.
4. VIP Auction Company was contracted with, in order to have a skilled bidder, by the city. VIP¿Auction Company registered the city in advance of the sale. All cooperating, registered brokers are offered a 3 percent commission paid out of the 10 percent buyer’s premium. Rector Hayden and the seller established this amount. It is paied to encourage participation amongst all real estate agents. This was well advertised. Any other broker/agent could have approaced the city to represent them in the upcoming weeks prior to the sale. No one but VIP Auction took this initiative.
5. VIP Auction Company, a Boyle County business will, at closing, receive 3 percent of the total 10 percent buyer’s premium. The remaining 7 percent will go to Rector Hayden. Had VIP not registered a bidder, Rector Hayden, a Lexington company, would have received the entire 10 percent commission, regardless of the buyer. Both partners of VIP Auction will received 1.5 percent commission and both will pay taxes locally.
While it is not our practice to comment on the nature of business transactions that we are involved in, it is our hope that this explanation of how the auction process works will help dispel any further rumors or innuendo regarding the sale of this particular property.
Johnny Durham
and Nina Kirkland
co-owners, VIP¿
Auction Company
