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Bankers Life and Casualty Company LAWRENce

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KENNLt ....

Chicago. l1linois May 9,

1966

Dear Investor: In my letter of February 11 I briefly outlined how we became involved in Rocket City. To refresh your memory, \lJe loaned the All-S ta te Development Corporation $1,500,000 on the land. {{hen they defaulted on their loan we took possession and paid off the mortgages so we could give you clear title to your property when you finish paying for it. I pointed out that All-State had filed an application to reorganize but Judge Young had questioned the ir good fa' th. HmlJever, All-State had so many creditors they threw themselves into voluntary bankruptcy. I told you \,le had filed a petition in the Orange County Circuit Court asking it to declare once and for all that Bankers Life and Casualty Company is the lawful owner of the Rocket City property. The Referee . n Bankruptcy has consen ted and the way is now clear for the Circuit Court to make a finding. Howev r. the other side has 2D days to answer our suit before it can be set down for a hearing. The time for filing a claim with the Refere in Bankrupt y has been extended to June 28. It would be most unlikely if we would get a decision prior to that date. I alJl a layman but I knOl" AIl-S1 ate said they 路.,~re un Ll t pay us t"he interest -- they didn't pay the taxes -- and most of th mortgages were in default when we took the property over. Their furniture was rented and the owners took the desks and chairs when All-State didn't pay their ren. Local merchants who had sold them stationery and office suppl' s were unabl to collect the'r bills. Unl ss All-State has some mon y buried some plac I don't ee how they could pay your claim if you filed it. I cannot give you legal advice but I promis d to keep you inform d. The only significant thing that has happened since I wrot you \.oJas the extension of the time for filing claims and the fact that Judge Paskay ha allowed ou motion. Filing a laim against All-State in the bankruptcy will in no way jeopClrdize your Rocket City property. The litigation is an 'mposition on all of us. It is delaying the development of your City, but I am sure in the long run you will con ider yourse f fortuna te . Again I say, cont"nue making your paym n ts to u -- th \"01."5 t thing that could possibly happen would be that we would return your money should the Court conclude that All-State was only fooling when they gave us a deed to the Rocket City property. I am mor optimistic than I have ever been about th futurl:: of Rock t City. I don't want you to lose your investment and I am sure you won't. truly yours JDtvl: gew

'-<- (~~~ V\~ Jcl\rthur


Bankers Life and Casualty Company .JOHN D. M ... cARTHUR,

P~ÂŁS'OÂŁ:t.lT

Chicago, Illinois Oc tober 15,

1965

Dear Friend: I have received a number of letters from investors wanting to know just what is happening in Rocket City. You probably know the All-State Development Corporation failed to repay their loan to us. To protect our interest we took title to the real estate as provided in our loan agreement. In the process we protected every bona fide purchaser of land in Rocket City. We assured the Florida Installment Land Sales Board, the official agency of the State of Florida, that every investor would receive a warranty deed giving him clear title to his property in accordance with the written contract he had with the All-State Development Corporation. Therefore, you now have a guarantee direct from this Company that when you have paid tor your land you will receive the deed free and clear of all indebtedness. Deeds and title policies are now being prepared and will be mailed shortly to all bona fide purchasers who have paid the full amount of their contracts. However, there are a great many legal complications which have delayed the revitalizing of the property. While these complications are irritating and time consuming, they do not in any way affect you. However, they do prevent us from going full speed ahead on the devel0pl"1en t. The shopping center is still owned by All-State, as is the motel. Both of these structures were built prematurely and operated at a big loss. They put the cart before the horse. You must have people living in the city to support a shopping center. Eventually both of th~se properties will be needed and undoubtedly they will be profitable. None of us need worry about them because they are not owned by us. We are working on the storm drainage. We hav(: already installed hundreds of feet of 48 t steel culvert. The golf club is open and doing a land office business. The road leading to it has been completed and paved. Many of the golfers have expressed interest in buying homes in Rocket City but we are not yet ready to sell any home sites. We are in the process of re-engineering the project and undoubtedly will make many changes. This will delay the construction of some of the roads but you are again assured that before your last payment is due under your contract the roads will be built and built properly.


The Bee-Line Highway which is to connect Gape Kennedy wi.th Orlando will bound oun property on the'south. Construction will definitely st"art within ao few days. We have agreed to donate the land for the right-of-way and in return the Express Authority has agreed to build two access roads. This will give the residents of Rocket City convenient accessibility to the Expressway. Without a doubt the Expressway will greatly enhance our values. In 路addition, Route 520 bordering our property on the north will be four-Ianed, giving us easy access to Cocoa. Route 50 which goes directly to Titusville is also recommended for four-Ianing but must be submitted to the voters in November for their approval. A visit to Rocket City today might discourage you if you did not know all the facts. As I explained, the shopping center and the motel were built by All-State. In addition t they built some twenty houses. These were tlsold" to their employees and mortgaged to a local building and loan association for $380,000.00. All the mortgages were in default but inasmuch as the houses were "within the city" we have purchased the mortgages and are now perfecting title. We will be able to offer these hous~s for sale within a few weeks. One builder purchased twenty lots and is planning to start building shortly. Several other builders have approached .U5 and I am sure Rocket City will be back on the track before many weeks go by. I am very sold on Rocket City. I have personally inspected it many times. It is well located, midway between Cape Kennedy and Orlando. With the completion of the Bee-Line Highway and the four-Ianing of Routes 520 and 50, we should be the hub of the area. Rocket City is certainly in the pattern that must grow and I plan to do everything I can to make i"t grow. \~hen the Expressway is open, we will be fi fteen minutes from the Martin plant in Orlando and McCoy Air Field. With the "mystery" plant which allegedly is to be built on the of acres of land recently purchased south of Orlando, we will be in the thick of it. However, I know nothi.ng about this plant except what I read in the newspapers. A formal announcement has been promised in three months. Allegedly the plant will employ 5,000 people and if so they must have a place to live. If they can drive to work from Rocket City in fifteen minutes they certainly will take a good look at our property. t~ousands

The State has authorized funds to start construction of the new "space" university on a site six miles north of Rocket City. What effect this will have upon our growth is anyone's guess. However, you know it will not hurt the area.


Bankers Life and Casualty Company is committed to spend several million dollars in the next few years on this development. While I had nothing to do with your original purchase, I congratulate you upon your judgment. From time to time I will keep you posted on the progress. Very truly yours.

JDM/gew

John MacArthur


1965 - 1966 Rocket City Development Updates Letters