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. He said the current payoff figure for the borrower to "get a hold now" would be about $9.3 million. County property appraisers had recently valued the parcel at roughly $11 million, Coughlin said.

Why it matters: the mill property is large and complex, with development and environmental constraints, and it drew interest because of a marina permit that covers the southern end of the site. Coughlin told commissioners the JDA still holds a marina permit issued by the Georgia Department of Natural Resources in 2019 and renewed in 2022; that permit he said would expire in 2027 but would be eligible for a five-year renewal at that time. He added that several developers and real-estate investment groups had contacted the JDA about acquiring the site if foreclosure proceeds.

Coughlin described JDA options if the developer does not cure the loan: either a third-party buyer would acquire the property at foreclosure, or the JDA would take title and subdivide and sell parcels consistent with Saint Marys zoning. “Our debt will be paid off. So that will not be the responsibility of the county to step in,” Coughlin said.

Coughlin also used the JDA quarterly update to summarize Camden Forward, the JDA’s five-pronged operations and business plan for the fiscal year: product development, nontraditional economic development (film and tourism), combating blight, supporting entrepreneurs, and purposeful intergovernmental collaboration. He said the Camden County Industrial Park is effectively full, with one roughly four-acre parcel remaining under contract, and that the JDA is pursuing a new industrial site west of Highway 17 (a proposed initial 50 acres with an option on a further 100 acres) where wetlands permitting and zoning “are already in place,” but an access road is needed.

On small-business assistance, Coughlin reviewed the Targeted Investment Program (TIP), a loan product for commercial property owners inside downtown development districts (Woodbine, Kingsland, and parts of St. Marys). The program offers up to $25,000 over 10 years at 2 percent interest; underwriting is conducted by the Coastal Area District Development Authority. Coughlin said one applicant had received the full $25,000 and that others had not qualified.

He described the JDA’s work with the Lucas Center for Entrepreneurship at the College of Coastal Georgia to expand local entrepreneur supports, and he said the JDA maintains FilmCoastalGeorgia, a website that helps film producers register projects and navigate permitting in county cities. Coughlin also summarized other site activity: an Italian waterfront company (identified as CJ) had poured foundations at the industrial park and another substation project was underway with Okefenokee EMC.

Ending: Coughlin said he wanted the public record to reflect the JDA’s current position on the mill property because the matter had appeared in social media and publications. He asked commissioners to note that, if the borrower cures the debt, development could proceed; if not, foreclosure and resale are the JDA’s remedy.