Lender foreclosing on Watson Hill
Both sides of annexation battle over 6,600-acre parcel near Middleton Place stunned by news of filing
Watson Hill Timeline
August 2004: Copper Station Holdings of Beaufort buys the 6,600-acre Watson Hill tract from MeadWestvaco, sparking widespread concerns over the possible development of thousands of acres of former timberland between Charleston and Summerville.
October 2004: Fears are confirmed when Copper Station files plans with Dorchester County for up to 5,000 houses and hotel rooms around a golf course at Watson Hill.
December 2004: Dorchester County Council gives first-reading approval to a historic-overlay district to limit development in the Watson Hill area. Copper Station Holdings bails out, selling Watson Hill to S.C. Property Holdings, a joint venture between Core Development of Wichita, Kan., and Property Markets Group of New York.
March 2005: The developer starts talking with North Charleston about annexation to allow more houses. North Charleston annexes King's Grant golf course, to clear the way to Watson Hill, which is just across the Ashley River from the golf course.
April 2005: Summerville tries to block North Charleston by annexing a strip of properties between Watson Hill and the river. North Charleston annexes one of the same parcels, along with Watson Hill. The municipalities sue each other. The development is stalled until the annexation lawsuit can be resolved.
March 2006: A circuit judge rules that Summerville missed a deadline in its annexation hearing. Summerville appeals to the state Supreme Court.
May 2007: Dorchester County Council approves the historic-overlay district.
May 2008: Supreme Court backs North Charleston in the annexation deadline dispute. Circuit court will decide if that's a deal breaker or not.
Dec. 22, 2008: Summerville drops its lawsuit against North Charleston, after North Charleston agrees not to annex more land near Watson Hill. North Charleston still faces another citizen lawsuit over Watson Hill.
Dec. 31, 2008: The lender calls in the overdue loan.
Previous Story
Watson Hill battle is over; Town to quit trying to keep North Charleston from annexing tract, published 12/23/08
The hammer has dropped on Watson Hill, the proposed development near a historic plantation that sparked a public outcry.
Just as a four-year annexation battle over the 6,600-acre parcel near Middleton Place seemed to be ending, the lender called in the loan, another apparent casualty of a faltering economy.
S.C. Property Holdings, the developer, didn't make a required interest-only payment on the $28.6 million loan by the December deadline, according to papers filed Wednesday in Dorchester County court. This was the second time Principal Commercial Acceptance, the lending group, had extended loan payments, according to the foreclosure filing.
"The borrower has failed to make the required payments as they have fallen due," the filing reads. The filing doesn't make clear exactly how much is owed, but it said the developers owed $72,792.88 in interest accrued between Dec. 1 and Dec. 10, as well more than $27 million left on the loan and other penalty payments.
The foreclosure doesn't necessarily kill the plans for Watson Hill, but it certainly raises a big question mark. The company could still sell the land or find a way to make payments the lenders would agree to. But if neither side makes another move, the property could be put up for sale after several months to recoup the loan, interest and penalties.
Richard Lam, one of the developers, didn't return phone calls asking for comment.
Thomas Waring, the lenders' attorney, said he was not able to talk about the case.
S.C. Property Holdings bought Watson Hill four years ago and filed plans for up to 5,000 houses and hotel rooms around a golf course, although 1,200 houses were more likely without a major new road being built there. Dorchester County started drafting an ordinance that would limit the number of houses on the two-lane scenic highway to about 800.
The developer approached North Charleston for annexation to allow more houses. Summerville annexed a line of properties between Watson Hill and the Ashley River to keep Watson Hill in the county. North Charleston annexed Watson Hill anyway. The municipalities sued each other.
Just last week, Summerville dropped the annexation lawsuit. North Charleston still had to settle a suit by a group of residents.
News of the foreclosure stunned parties on both sides of the battle.
North Charleston Mayor Keith Summey was silent for a few seconds after hearing about it.
"No, it doesn't change (the city's interest)," he said. "It's been annexed. If the court finds (the annexation) legal, it'll be in the city." Summey said the tract would eventually be developed one way or another. "Times are tough for developers. But that doesn't mean (development of) the property won't move forward."
Dorchester County Council Chairman Larry Hargett, who pushed to downsize Watson Hill, said he hopes the property will stay under the county's control.
"This is shocking," he said. "It's going to be interesting to see who the new owners will be and if they will try to be annexed into North Charleston."
Sue Wehman, who lives near Watson Hill on Ashley River Road, was relieved.
"Hopefully this will present an opportunity for the conservation community to extend the area in the Ashley River historic corridor which is under easement," she said.
Summerville Town Councilman Howard Bridgman, who tried to block North Charleston from Watson Hill, expressed the same sentiment.
"I hope it's an opportunity for the conservation community," he said.
But conservationists are having the same problem finding money as developers.
"There's always an interest, but getting the funds to buy a piece of property that huge is a big challenge," Lowcountry Open Land Trust Executive Director Will Haynie said.
Reach Bo Petersen at bpetersen@postandcourier.com or 937-5744.
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Comments
Grinder (anonymous) says...
Support the conservation community! Conservation easements are the way to keep historically green Charleston the way it is. The greater Charleston Area, from the Battery on up through the Neck, has been allowed to develop with a horrendous lack of infrastructure accompanying it. "Build it now, we'll bring in the roadways and parking later" say the politicians. Thanks, Mayor Riley, but I liked Charleston the way it was, say about 28 years ago.
January 3, 2009 at 8:26 a.m. ( permalink | suggest removal )
Native_Ink (anonymous) says...
There is justice in this world after all. After years of being under the heel of greedy developers, we can actually watch them begin to receive their just deserts.
It's just too bad real estate speculators brought the rest of us down with them. I hate how the hardworking people of America are tied at the hip to the greedy gamblers that run our economy. I guess that's just the American way, George W. Bush style. Hopefully, when things begin to turn around, real estate speculators will stay down in the mud a little longer than everyone else. That would be real justice.
January 3, 2009 at 8:43 a.m. ( permalink | suggest removal )
dawhetsell (anonymous) says...
I liked Charleston ,but moved away 35 years ago. All the northerners have moved down from wall street with all the money they stole from the investors from their BAD advice. The northerners are now leaving becaused they invested their own moneny in their on lies. Charleston will never be the same anymore.
January 3, 2009 at 8:46 a.m. ( permalink | suggest removal )
a_set_love (anonymous) says...
"Dorchester County Council Chairman Larry Hargett, who pushed to downsize Watson Hill, said he hopes the property will stay under the county's control.
-> "This is shocking," he said. "It's going to be interesting to see who the new owners will be and if they will try to be annexed into North Charleston."
Sue Wehman, who lives near Watson Hill on Ashley River Road, was relieved." <-
What an amazing concept when I purchase property I can decide if I want it to remain in the city its' already annexed into.
Earth to Larry, that's not how it works - thanks to mayor riley and the city of charleston - but then you are only the Dorchester County Council Chairman, no one expects you to know this.
When the creditors come after Dorchester County, maybe you can sell off to the city of charleston.
After all weren't you promised millions in charleston money to fight the annexation of Watson Hill?
Which is now part of the City of North Charleston.
January 3, 2009 at 9:52 a.m. ( permalink | suggest removal )
YankeeLady (anonymous) says...
I realize that this is not the crux of the article, but let's stop blaming all the Northerners for the problems down here. As you can see by my nom de plume, I came here from the North without any Wall Street ill-gotten gains, because I wanted to become part of a lovely community, and have worked to contribute to it. The land that was sold off, and sometimes stolen for developers, was sold off by y'all down here. It may be no consolation, but the same sentiments are felt in so many parts of the country, where folks have seen their beautiful and unique cities and neighborhoods deteriorate from overdevelopment. I certainly hope that the Watson Hill foreclosure presents an opportunity for conservation. I'd like to see that happen to a few smaller tracts here on James Island, where plans for previously planned developments have crashed and burned.
January 3, 2009 at 10:54 a.m. ( permalink | suggest removal )
Zod (anonymous) says...
Do not fret Yankeelady. It's just more from the ill informed. I've seen more "Wall Street" land placed in conservation easement than any other ever considered. I guess dawhetsell missed the part of the article that plainly stated that the original developer was based in Beaufort.
New York money?:
http://query.nytimes.com/gst/fullpage...
More New York money?:
http://www.rootsweb.ancestry.com/~usg...
Did ya see all that New York money? That there is damn near 10,000 acres bordering the Cooper River folks!
Meanwhile, a few bozos from Beaufort started developing Watson Hill.
January 3, 2009 at 11:45 a.m. ( permalink | suggest removal )
mkris (anonymous) says...
My experience is that "northerners" truly understand the problems of over development. They've seen them and the early political and development decisions. Yankeelady has it right ... the "old charleston families" are selling grandma's farm for development and calling on thier "ol' boy's" to make the profits on the sale of the ol' family silver just that much sweeter by cramming a couple more houses in with out any thought for congestion or quality of life.
January 3, 2009 at 1:10 p.m. ( permalink | suggest removal )
mkris (anonymous) says...
My experience is that "northerners" truly understand the problems of over development. They've seen them and the early political and development decisions. Yankeelady has it right ... the "old charleston families" are selling grandma's farm for development and calling on thier "ol' boy's" to make the profits on the sale of the ol' family silver just that much sweeter by cramming a couple more houses in with out any thought for congestion or quality of life.
January 3, 2009 at 1:10 p.m. ( permalink | suggest removal )
Native_Ink (anonymous) says...
Zod- Not that I really care about this North vs. South debate, but the developers are based in New York City and Kansas City. The Beaufort boys just flipped the property.
January 3, 2009 at 1:10 p.m. ( permalink | suggest removal )
kerwandstarks (anonymous) says...
If y'all wasn't so damn dunb, us Yankees wouldn't have to come down and take your jobs, amongst other things.
January 3, 2009 at 1:12 p.m. ( permalink | suggest removal )
affy01 (anonymous) says...
"If y'all wasn't so damn dunb,"
LOL
January 3, 2009 at 2:29 p.m. ( permalink | suggest removal )
LEYH (anonymous) says...
I can only hope this happens to the Angel Oak Village development. This property must go into conservation in order to save the life of the Angel Oak.
www.savetheangeloak.org
January 3, 2009 at 5:33 p.m. ( permalink | suggest removal )
didder2 (anonymous) says...
Watson Hill is almost on top of Midelton Plantation and other national historical landmarks.I hate to see anyone lose their property to foreclosure but you would have to be high or something to spend that kind of money on swampland that probably should not be developed in the first place.
January 4, 2009 at 12:04 a.m. ( permalink | suggest removal )
rollo (anonymous) says...
It may be swampland now, but you use it as a landfill for 15 or 20 years, then cover it up with clay, a layer of topsoil, sod, some new trees, and PRESTO! You got yourself a pretty attractive landscape there!
January 4, 2009 at 10:42 p.m. ( permalink | suggest removal )
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