JDA: Developer in default on former Gilman paper mill loan; county may foreclose if debt not cured

James Coughlin, executive director of the Joint Development Authority, told the Camden County Board of Commissioners that a developer who planned to redevelop the former Gilman paper mill in St. Marys is in default on a loan secured by both the developer's company pledge and the property.

Coughlin said the borrower missed an interest-only payment due in February — about $182,000 — and has not cured the default. “The only way for them to cure this debt right now is to pay us off entirely,” Coughlin said. He said JDA counsel had accelerated the debt and that foreclosure advertising would begin April 3; the JDA planned a foreclosure sale on May 6 if the developer does not pay the full amount.

The JDA executive director gave financial details: the original loan principal and capitalization totaled $10.8 million, which included roughly $77 million in planned site take-down costs and about $1.5 million in predevelopment expenses capitalized as interest; Coughlin said the remaining figure is capitalized interest.…