Gov. Nathan Deal has sold the Habersham County property where his daughter's failed sporting goods store was once located to a California man for $750,000.
Deal's accountant Jimmy Allen said Thursday that the sale closed Monday and that the transaction will do wonders to settle the governor's debts.
"We're thrilled about it," Allen said.
The sale was first reported Thursday by The Associated Press.
Allen said the profit from the sale will lower Deal's overall debt to about $600,000, down from more than $2.4 million last year. The governor's private residence in Hall County is also for sale for just under $1 million, and Allen said Deal and his wife, Sandra, have about $800,000 in equity in the home, more than enough to wipe out the remaining debt.
Allen said the buyer, Steve Diamond of Santa Maria, Calif., is putting $150,000 down and will pay off the remaining $600,000 over 10 years. Deal is financing the sale, meaning Diamond will make payments directly to the governor, an arrangement Allen said the governor's bank approved. Diamond has not contributed to Deal's campaign or to other Georgia candidates, according to state records.
In 2009-2010, Deal had $2.4 million in debts, thanks in large part to the loan he guaranteed for his daughter and son-in-law to open the sporting goods store, called Wilder Outdoors. The store failed in 2009, costing Deal an additional $2 million in direct investment losses. When Deal's daughter and son-in-law filed for bankruptcy, the outstanding debt transferred to Deal.
The property has been under contract since late last year.
Deal was able to dramatically shrink the remaining debt last year by closing his individual retirement account, or IRA, and 401(k) retirement account, which netted him more than $700,000, Allen said. But that wiped out his retirement savings, although Deal now earns a salary of about $140,000 a year as governor and will be eligible as a former member of Congress for a federal pension of about $52,000 a year. He and Sandra Deal receive about $48,000 a year in Social Security and other benefits, and Deal will earn a state pension when he leaves office.
Deal last year promised to put his assets into a blind trust. Allen was named the trustee.
Allen said the sale of the Habersham County property is a relief for the governor.
"It’s a good situation," Allen said. "It’s not anybody who was a donor to his campaign or in any way related. Finally got it worked out. It’s been a real long process. It’s an outside party not related to anybody in Georgia."
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