In what local brokers and marketers tell GlobeSt.com is an unusual offer, St. Marys Redevelopment Group LLC proposes to pay Bridge Associates LLC, the court-appointed trustee for the Chapter 11 Durango estate, $15 million in cash at closing. In addition, the developer would pay 18.5% of all future gross revenue from development sales and from the sale of equipment at the closed paper mill.
The bid deadline is Dec. 1. Besides the marsh and riverfront land, St. Marys is bidding on about 3,400 acres of timber tracts near or abutting Interstate 95 in southeast Georgia, about 35 minutes north of Jacksonville, FL.
An involuntary bankruptcy petition was filed against Durango Georgia Paper Co. on Oct. 29, 2002, according to St. Marys Redevelopment Group sources. The case was converted to a Chapter 11 in November of that year. A court-supervised auction to determine the ultimate owner of the Durango estate assets is scheduled for Dec. 6.
If St. Marys Redevelopment Group's bid is accepted, the company's tentative plans for the site are the development of 1,100 residential units, a hotel, several restaurants and possibly a marina, J.B. Holeman, project manager for the developer says in a prepared statement.
Anthony Schnelling of Bridge Associates is trustee; Ward Stone Jr. of the Stone & Baxter LLP law firm in Macon; and Hilco Real Estate LLC of Northbrook, IL, real estate advisor, represent the estate.
Already developing or planning to develop large projects in and around St. Marys are Land Resource Cos. of Sandy Springs, which is building the 1,014-acre Cumberland Harbour, and WWW Group Holdings of Cleveland, which plans to create Liberty Harbor, a $1-billion mixed-use venture in Brunswick, GA, 40 miles north of St. Marys, as GlobeSt.com previously reported.
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