Happy Friday. This is The Shake 🤝: the weekly newsletter that won’t ever tread on our readers - more on this below…

Here’s what we got this week:

• Rezone Rampage 🚧 

• The Birth Of American Debt ⛓️ 

MARKET RADAR

Rezone Rampage 🚧 

Almost everyone in real estate would like to avoid rezoning a property in their lifetime. It’s typically nothing short of an amicable dogfight with city officials.

Sometimes the lengthy process of these approvals can create enemies, especially if the results directly affect their property.

In Colorado, there’s a small town of 2000 people called Granby where this tale of demolition took place in 2004.

A man named Marvin Heemeyer was in a sticky situation when the development of a concrete plant was approved next to his 2-acre muffler shop.

But long before the zoning approval, Heemeyer was in deep discussions to sell his shop to that exact concrete business owned by a local family named the Docheffs.

The two acres Marv purchased at auction in 1992 for $42,000 was an ideal parcel for the Docheffs. Turns out the family actually owned the land prior to it going to auction.

TLDR: They offered to buy it off Marv for a premium or trade it for a piece of their neighboring property on the highway, but he kept raising his price to the point where it was an unrealistic purchase. Or at least, that’s their side of the story.

Anyways, the Docheffs went ahead and submitted plans to rezone the nearby parcels to begin developing the plant. Marv immediately began opposing the rezone, filing lawsuits, and claiming the dust and byproduct could harm the surrounding area.

In parallel, Marv also had his own side battle with the city regarding a sewer line issue. The land he bought was never hooked up to public utilities, and to get an easement plus install a line cost him almost twice what he paid back in 92.

So without water or sewer, Marv was in violation of the town code and received countless fines from the city. He would attach notes saying “cowards” to the checks.

There are other publications that claim Marv never even entertained a sale from the Docheffs and the new plant cut access to the backroad he used to get to his shop.

On top of that, the land where a new utility line would be built was actually part of the plant, making it where the Docheffs would have to give permission to connect.

It appears they reached out to Marv during the rezoning process and said they would permit him to hook up to the line if he would drop the frivolous lawsuits that were delaying the approval and adding up legal fees. Marv refused.

Eventually, the city approved the rezone and development of the plant made way. Marv was stuck paying fines and his backroad shortcut was no longer there.

So what does he do? Buys a Komatsu D355A bulldozer to make way for a new road. During this time, a new idea must’ve popped into his head…

Marv soon did a sale-leaseback on his land for $420k and occupied a small warehouse where he would build a customized tank over the course of 18 months.

A master welder, Marv created a steel-and-concrete reinforced armor around the bulldozer. It was air-conditioned and equipped with several outside cameras so that he could see his surroundings while hunkering down in the cockpit. The cameras were protected by bulletproof Plexiglas.

Ready for revenge, Marv had a manifesto listing people who opposed him throughout the trials and tribulations of the past 10 years. The Docheffs were top of the list - authorities found he spelled their names “Doucheffs”.

On June 4th, 2004, Marv drove the tank out of his shop and began his rampage.

The first target? You guessed it… the Docheff’s concrete plant. He quickly flattened several of their buildings and then headed downtown at the speed of a snail.

Check out his full destruction

By the time he was finished, he had demolished 13 buildings, including the town hall and the library within it, the police station, the home of the ex-mayor, a bank, numerous vehicles, the local newspaper, and the local hardware store.

Marv caused a reported $7 million in damages but luckily, no one else was harmed. He ended up taking his own life when the “Killdozer” got stuck in the hardware store.

Today, many people look at Marvin Heemeyer as a folk hero who took justice into his own hands when a city council did him wrong. Netflix even made a documentary about the story called Tread.

One thing is for certain, rezones definitely raise everyone's blood pressure.

The Birth of American Debt ⛓️ 

The Year: 1626

The Place: New Amsterdam (Now New York City)

Picture this: a quaint Dutch colony where tulips were a hot commodity, and the real estate market was just heating up. Our story begins with a man named Peter Minuit, who, despite having no access to Zillow or a realtor named Bob, was determined to become a homeowner.

Peter Minuit, the Director-General of New Netherland, had a serious problem.

He wanted to own a piece of land in the bustling settlement of New Amsterdam, but his wallet was as empty as a Dutch cheese shop on a Sunday.

So, he did what any sensible person would do in such a predicament - he got creative.

Now, in today's market, we haggle over a few thousand dollars. But in 1626, Peter Minuit pulled off the deal of the century.

With a twinkle in his eye and a wallet filled with shiny beads and trinkets, he purchased the island of Manhattan from the local Lenape people. The price? A mere $24 worth of beads, textiles, and other items. 

Was This The First Mortgage Ever?

But here's the twist that makes this tale even more fascinating. To secure this bargain deal, Minuit might have employed a little financial wizardry.

There's speculation that he might have used a precursor to the modern mortgage to finance his purchase. Imagine trying to explain that to your bank today: "I'd like a loan for $24 in beads, please."

Now, let's talk about Manhattan in 1626.

It wasn't the glittering metropolis we know today. It was more like a sprawling DIY project with dirt roads and wooden shacks. Minuit probably spent the next few years trying to decide on paint colors and whether to go for a thatched roof or asphalt shingles.

And what about those tulips we mentioned earlier?

Well, it turns out that the Dutch were in the midst of a crazy tulip bubble. People were trading tulip bulbs for houses! Fortunately, Peter Minuit was more interested in beads than blooms, so he managed to avoid that particular economic disaster.

In the end, the purchase of Manhattan Island set a precedent for real estate deals that would follow in the United States.

It also left us with a quirky and slightly absurd origin story for the first mortgage in the country.

Who knew that a few shiny beads would be the foundation for the world's financial capital?

FIN 🤝 If you enjoyed this week's edition, don’t be selfish — share with a friend!

^{DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.}