The Sturgeon Law Firm
Buckhead Centre
2970 Peachtree Road
Suite 225
Atlanta, GA  30305

Telephone: (404) 419-0800
Fax: (404) 419-0808

Liberty Harbor, Brunswick, GA

Liberty Harbor was an ambitious planned multi-use project along the Inter-Coastal Waterway in Brunswick, Georgia.  Its developers suggested that it would be a $2 billion project when completed.  Like all real estate projects, recent financial conditions have had an adverse effect and a January 12, 2009 article in the Jacksonville Times-Union quoted its spokesman, Paul Levine, to say “We’re just basically waiting out the recession.”

 

Liberty Harbor was to include an hotel, townhouses, single family houses and condominiums.  To date, only one structure has been built on the project, a waterfront home.  Levine suggested to the Times-Union reporter that construction would soon start on two condominiums, half of which he suggested were already sold.  That was January, 2009.  No condominiums have ever been built.

 

Indeed Liberty Harbor had Agreements involving a number of condominium units for which it took deposits.  The Agreements required the purchasers to place an earnest money deposit equal to ten percent (10%) of the purchase price in escrow with the expectation that an additional earnest money deposit of ten percent (10%) would be due “within ten (10) days after Purchaser receives notice from Seller that construction of the Condominium has commenced.”  In August and September, 2008 and again in January, 2009, the developer sent notices to certain purchasers suggesting that “construction of the Condominium has commenced” and that the additional deposit was due.  When certain purchasers declined to send deposits on the basis that there was, in fact, no construction activity, the developer notified them that they were in breach of contract. 

 

In addition, all contracts required closing of the units to occur not later than December 31, 2010.  That date has now passed and not a single unit has been built.  Now the developer suggests that he be allowed an additional two years to complete the project as “force majeure” has prevented it from obtaining “services and materials.”

 

For those of us with more than a passing memory of past real estate crashes, it seems highly unlikely that financing for this project will ever be found by this developer.  Many of the lots that the principals owned have been sold for back taxes.  The lots on which the condominiums were to be built were saved from tax sales by last minute tax payments.  Nonetheless, the developer stands ready to “modify” the existing contracts as it has plans to complete the project.  If you believe that one, I have a bridge I’d like to sell you.

 

The Sturgeon Law Firm represents several individuals who made deposits for the purchase of Liberty Harbor condominium units.  If you made a deposit for the purchase of one of these units in this phantom construction project, and would like us to review your options, please contact us.