Town of SaltAire must refinance

By Rob Holbert Managing Editor

Town of SaltAire must refinance

By Rob Holbert

Managing editor

The recent “unpleasantness” in the global financial community has indeed found its way into our neck of the woods, as those planning the Town of SaltAire in south Mobile County have found out.

It seems the project, which has received much coverage in this and other publications, is currently having to restructure its financing after some of its major backing has come under stress from the economic downturn. And while there have been some setbacks that have even included liens of more than $470,000 by some creditors, the project’s majority owner says the troubles should soon be behind them and SaltAire will get back on track.

“We’re in discussions with several parties and it’s pretty sensitive right now. We’re hoping for a quick resolution,” said Logan Gewin. “And we need a quick resolution. But we’re not a project that’s upside down.”

SaltAire was originally designed as a 1,200-home “complete town” concept in the south part of the county and was announced with great fanfare at a time before the real estate bubble had burst. Gewin insists the project’s problems are temporary and have nothing to do with the basic underpinnings that drove it to be created in the fist place. He also stressed that it is a long-term project, and as such is designed to grow slowly and methodically.

“This project isn’t going to go out. It’s just a question of how it goes forward and how rapidly it goes forward,” Gewin said. “We all know how the real estate market is in the tanker. Mobile has been remarkably insulated from this. This is the same problem all over the country.”

George Jones, who is managing partner for the project communicated via e-mail only that he thought a solution was at hand.

“Unfortunately, the current world, national and local economic slowdown has placed funding for real estate development projects at a stand still. SaltAire, as is the case with all other large real estate developments in the country, is not immune to these difficulties,” he wrote. “Any real or perceived difficulties we have encountered will be satisfactorily disposed of accordingly. We are very optimistic regarding our plans for the future; in fact, we have had enjoyed sales activity in both our completed housing as well as our lots. We expect additional capital infusion as well as conventional financing to be forthcoming and to continue with full development of The Town of SaltAire.”

Johnny Roberts, CEO of Roberts Brothers, Inc., which serves as SaltAire’s marketing and realty agency, said his company remains firmly behind the project. However, they too are waiting for the financial restructuring to take place, he said.

Originally Regions Bank was one of the main financial backers of the SaltAire project. Calls to Regions to discuss their involvement in the deal were not able to be returned prior to deadline for this story.

Gewin said the basics of the project remain sound – 500 acres of pristine land in south Mobile County. He said they are still selling land and houses and are working with creditors to clear up any problems. Gewin also said they are still actively working to sell houses and lots and looking to a future free from financial clouds. Houses being built are in the $500,000 to $800,000 range and planned amenities include two stocked lakes, a kayak launch, restaurant and fitness center.

“I feel totally confident and comfortable it’s going to work out,” Gewin said.

Rob Holbert is Lagniappe managing editor. Contact him at rholbert@lagniappemobile.com.

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