Click here to view. Research Series Natalie Adams and Michael Trinkley. Michael Trinkley and Natalie Adams. Michael Trinkley. Research Contribution Natalie Adams. The Art is the Thing by H. Morgan Haskell. Morgan Haskell, Athens: University of Georgia Press, Martin, editor. Beaufort, S. Notes: Letters written by Eliza Ann Summers. Hilton Head Island, S. McCracken and Faith M. Columbia : University of South Carolina Press, Charleston S. Columbia, S. Cornelia; Written by Porter M. Thompson; Designed by Richard H. History in Development: — to present by Thomas C. Barnwell, Jr.
Barnwell, [no date].
Hilton Head Island
An Island named Daufuskie by Billie Burn. Spartanburg, S. Orangeburg, SC : Williams Associates, n. Winston-Salem, N. Blair, Publisher, c Includes bibliographical references p. Martin, edited by Robert B. Cuthbert and Stephen G. Danielson; with the assistance of Patricia R. Notes: Includes bibliographical references p. Charleston, SC: History Press, c, Canada : D. Friesen, Moore edited by W. Jeffrey Bolster.
The Story of Cotton by Richard D. Porcher and Sarah Fick. SC Washington, D. Panel members: Charles Frazier, Jr. Hilton Head Isl. Columbia, SC : Chicora Foundation, Wilson, Jr. South Carolina: Chicora Foundation c At the same time, land prices soared. But in , the expansion caught up with Mr.
Our Favorites on Hilton Head
Fraser and with the rest of the American real estate industry. The oil crisis and a sudden change in monetary policy sent interest rates soaring, forcing Sea Pines and most other large-scale developers throughout the country into a nose dive. After several brushes with bankruptcy, however, Mr.
Fraser and Sea Pines tiptoed out of the woods in with the original portion of his organization intact. By , with 25 years of development behind him, Charles Fraser was tired. He went looking for a buyer and found one in Vacation Resorts Inc. Fraser's organization, the Sea Pines Company. The buyers also agreed to pay Mr. Meanwhile, a similar sequence of events had taken the island's other major development, Port Royal Plantation, out of the hands of its founders, the family of Frederick Hack Sr.
The Hacks had undertaken their smaller scale project on the northeastern end of the island shortly after Mr. Fraser formed Sea Pines. In , the Hacks and other stockholders sold their interests to Oxford First Corporation of Philadelphia. In , Oxford sold out to Emro Land Company, a subsidiary of Marathon Petroleum Company, then riding the crest of the surge in oil prices. Marathon doubled its investment in the island by buying additional land to the north and east of Sea Pines to launch Wexford Plantation, a new development built around a canal.
When the steel industry renewed its decline in , Marathon's parent decided to shed its real estate operations. Curry, a former Sea Pines executive and owner of his own resort management company. To get it, Marathon had to provide financing for the deal, Mr. Curry said. The buyer was E. Ginn 3d, a year-old land developer from Hampton, S. Ginn said. The other partners in the hotel, among them The Robinson-Humphrey Company, the Atlanta-based brokerage house, were so worried about his financial stability that they sued to block the sale.
They lost. According to the financial statements the company was required to supply to Mr.
According to Mr. Fraser, management salaries jumped percent. Ginn, already trying to buy the Marathon properties, was interested in acquiring Sea Pines, as well. As a legacy of its troubles in the 's, Sea Pines had accumulated tens of millions of dollars in losses that it was carrying forward to offset future gains for tax purposes. Ginn formulated a leveraged buyout plan. He would buy both companies and merge them into a new holding company.
He expected to sell off assets of the new holding company to raise cash, using Sea Pines tax losses to offset any profits. At least that is Mr. Ginn's explanation of the deal. With Marathon willing to sell him its properties on credit, Mr. Ginn found a New York investment banker, B.
Roy Norton 3d, willing to help him obtain the money to add Sea Pines to the deal. SFB of Riviera Beach. They were ready to lend him the rest of the cash he needed in exchange for a 50 percent stake in the deal, Mr.
see url Norton had good reason to recommend Intercapital. He owned the controlling interest in it, though Mr. Ginn says he did not know it at the beginning. Ginn sold and sometimes leased back land, buildings and other assets of his company, Ginn Holdings. SFB even opened an island office to lend buyers the money they needed to take over Ginn Holdings properties. To lend to that extent, they had to skirt banking regulations that usually prevent a lender from placing more than 10 percent of its net worth with any one customer.
They also received extraodinary fees. In one transaction, Intercapital and its principals charged Mr. Meanwhile, Intercapital owned 25 percent of Mr. Ginn's holding company, as did SFB. Both of these savings and loans had a short history. In fact, federal regulators have closed Intercapital and sued its former owners, including Mr.
Norton, for fraud. Neither Mr. Schwab after the loans had been made to Mr. Schwab - who did not respond to inquiries made last week about his involvement in the Hilton Head deals -and his principal business, Cuyahoga Wrecking Company, have left a year trail of bankruptcies and lawsuits stretching from Detroit to Buffalo to southern Florida. With the backing of these two financial institutions, Mr. Ginn was able to buy the Vacation Resorts and Sea Pines properties, placing control of more than one-third of the island under his flag.
Bobby Ginn was no stranger to big lending by small institutions. Ginn in and had participated in a scheme with C. Butcher to raid banks in eastern Tennessee of millions of dollars under the pretense of developing Mud Island in the Mississippi River near downtown Memphis. Ginn and a partner last summer that they had skimmed off a large share of the loans for themselves, then let the companies that had borrowed the money slide into bankruptcy. According to the complaint, Mr. Ginn and the partner, Earl D. Hewlette Jr. Ginn said last week that the charges ''are without merit.
Among the items mentioned in the complaint as being improperly converted to Mr. Ginn's personal use from his operations in Tennessee and Floria were wine, silverware and a condominium. Ginn said he bought the house in and renovated it before he had any involvement with the Butcher banks. As part of what the FDIC described as his ''extravagant lifestyle,'' he also docked a foot yacht, ''Motivation,'' at a pier on the property.
Ginn said he owned only 25 percent of a partnership that owned the boat. A real estate developer who had dealt with Mr. Ginn before his purchases on Hilton Head suggested to a banker that he not lend money to Mr.
Ginn, ''even if he offers you gold as collateral. The round-faced, 5''' Mr.
Ginn arrived on Hilton Head in late to assemble the deal. Ginn began the buyout, the FDIC had prepared its complaint against him but was holding off filing it to see what he might try next. Ginn and his companies actually owned only about five percent of the island's assets, but they were Hilton Head landmarks: the lighthouse at Harbour Town, the golf course where the Heritage Golf Classic was played, the brokerage company and reservation service that carried the island's toniest name - Sea Pines.
FROM the start it was a jerry-built empire, according to Mr. Fraser's extensive financial and real estate records. Even Mr. Ginn later admitted that his complex assembly of the companies was ''held together with peanut butter. By the time Mr. Fraser sued Mr. Ginn 14 months later because of his failure to provide timely financial data to creditors -Mr. Fraser said, ''but he told me he was using the plane to pick up cash from his other ventures on the mainland to bring everybody current on Hilton Head.