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Big foreclosures signal the burst bubble o fN. Ga. real estate
Hay pastures to upscale developments
and back to hay pastures
By Dan Pool
Earlier in September, legal no
tices printed in the Progress
showed what must be a record
dollar amount for property facing
foreclosure with more than $20
million in total loan value at
tached to more than 50 proper
ties.
Included in this mammoth
dollar value were five commer
cial/development loans going
bad. Together those loans totaled
$16,859,629. Companies in
volved were Gremlin LLC with
$1,301,186; Blackjack Invest
ments with a $4,275,000 loan;
2573 LLC with $5,373,430;
Northtrop, Ga with $2,628,639
and Big Sky Land and Cattle
Company, LLC with $3,381,372.
Although it is hard to track ex
actly what happened with these
properties, Roy Dobbs of the
county tax office said he had not
seen any property transfer forms
indicating any of these properties
had changed hands as of Monday.
While these collapses of fu
ture residential/commercial de
velopments may not directly
impact home owners in Pickens
County, they do clearly signal the
exploded bubble of North Geor
gia real estate, which expanded
here with quick growth during
the 1990s and early 2000s.
“Everyone said the bubble
was gonna burst,” said Chuck
Payne of Payne Appraisal Serv
ices. “Really everyone in the in
dustry said the bubble was going
to burst, but I thought Pickens
would be more insulated.
“I thought that Atlanta was
growing, and we would continue
to see growth coming up High
way 575.1 also thought we didn’t
see the prices here inflate to the
point they did in larger markets
around the nation such as Florida.
I was really surprised by the ex
tent that it did deteriorate. It is
honestly horrible.”
Payne was not alone in his dis
mal assessment of the real estate
industry here. Everyone from
bankers to real estate agents has
said it will be a long time before
this area sees anyone working to
convert raw land into residential
subdivisions.
The market here remains so
flooded with home sites from the
previous boom cycle that there
will be little need for new land
developments locally for years to
come, even if the number of will
ing buyers were to suddenly re
bound.
Paul Nealey, with Jasper
Banking Company, said that
when the more than $20 million
in foreclosures showed up, it rep
resented a final step in a long
process. He said a lot of work
took place behind the scenes in
weeks leading up to publication
of the legal foreclosure notices.
Nealey estimated the behind-
the-scenes activity may have kept
an equal amount of bad loans out
of foreclosure. The foreclosure
total for that month could have
been more like 35 to 40 million
dollars, he said, if banks had not
been diligent in working with the
parties involved and creative in
their approach to handling loans
heading into default.
The behind the scenes work
involved renegotiating payments,
extending the time frame of
loans, even selling off a portion
of assets to lower debt, plus any
other measures that could stave
off foreclosure, Nealey said.
“An astute banker has to try
anything in these trying times,”
he said. “A foreclosure is the last
option.”
Nealey said the amount
landed in foreclosure during that
period was troubling but not sur
prising when you consider the
state of North Georgia property
sales.
There are a lot of individual
reasons why a property ends up
in foreclosure, but they all boil
down to the fact a borrower has
lost hope they can continue mak
ing payments, ever make a profit,
break even, or even sell the prop
erty involved for enough money
to get clear without losing too
much, the banker said.
He said all across the country,
from large cities to small towns,
people simply paid too much for
property during the fast-growth
years. Now with the downturn in
real estate values, they owe much
more than the worth of what they
are holding. “It was like musical
chairs, and when they stopped,
someone gets caught standing up
[holding a property bought with a
loan that will no longer sell],” he
said.
Particularly troubling for the
future of real estate in North
Georgia is the over-supply of
available home sites. Many ex
perts say the flooded supply of
residential lots could take years to
clear out.
Both Payne and Nealey, along
with real estate agent Ron
Barnes, noted there are simply
too many lots ready for sale, and
too few buyers.
Barnes estimated there are 700
residential lots now available in
Pickens County, some more pre
pared than others. “Until that
[oversupply] is sucked up, no
body will start anything new with
raw land or be able to get a loan
Continued on Page 12A
Waist-high grass stands where high-end homes were planned at this de
velopment in the Jerusalem area.
Early voting underway
Ballot is long with amendments,
referendums, low-profile races
Drug Task Force busts high
grade marijuana operation
What’s Inside
Homecoming Queen
crowned
Steven Wilkie / Photo
Jade Stancil was crowned
Homecoming Queen Friday dur
ing annual festivities. Dragons
fought a tough loss. See sports
for details. Page 1B
Groundhog Saga, Part II
The Envi
ronmental
Health
Manager
for Pick
ens com
ments on
the groundhog incident reported
in last week's edition. After an
injured groundhog was picked
up from Hwy 53, the animal
went ballistic in a woman’s car,
ultimately forcing a lane of traffic
to be closed. Page14A
Mortgage Burning
In celebration of the pay off on
the Jail and the Administrative
Office Building, Commissioner
Rob Jones and Sheriff Donnie
Craig will hold a “Mortgage
Burning” Friday, Sept. 24, 2010
at 2 p.m. at 1266 East Church
Street in front of the Administra
tive Office Building. Everyone is
invited to attend.
See a sample ballot
inside on page 14A
By Dan Pool
Early voting began Monday
for the November 2 general elec
tion, which includes the gover
nor’s race as the prime statewide
draw. And the increasingly de
bated option of moving to a
multi-member commission from
a sole commissioner in this
county fronts a second important
decision.
Early voters may vote during
regular business hours at the
County Admin office until Octo
ber 29th from 8 a.m. until 5 p.m.,
Monday through Friday.
In addition to the higher pro
file races, the ballot for this elec
tion is lengthy, containing numer
ous statewide posts, judgeships,
uncontested races, five state con
stitutional amendments, one
statewide referendum, and the
multi-person versus sole com
missioner vote with its two sepa
rate questions. See sample ballot
on page 14A.
On computer voting machines
at the polls, the ballot will require
nine pages to include all ques
tions and offices up for decision.
The hotly contested multi-mem
ber versus sole commission ques
tion does not appear until the last
page.
Julianne Roberts, the elections
supervisor for Pickens County,
suggested all voters study a sam
ple ballot before they come to the
Continued on Page 20A
Emergency crews celebrate
station’s grand opening
In a ribbon cutting ceremony at the new county EMS/Fire station, crews
ran an ambulance and fire truck through ribbons attached to the bay doors.
Commissioner Robert Jones
along with county fire and EMS
crews were in high spirits last
week at the grand opening cere
mony of Pickens County Fire
Station 11 and EMS Station 1.
The building on Upper Salem
Church Road houses both Station
11 and Station 1, one of just three
emergency facilities in the county
with both fire and EMS person
nel working out of the same
building.
With remodeling of the re
cently purchased metal ware
house building into a firehouse
now complete, crews invited
members of the public to tour the
new facility.
Jones said when he entered of
fice in 2004 the county had no
full-time fire crews, relying then
on volunteer firefighters only.
All EMS personnel and fire
fighters working out of the Upper
Salem facility are paid full or
part-time crewmembers.
According to Jones, the
EMS/fire station is county-
owned free and clear, paid for
mostly from monies collected
from the SPLOST passed back in
2003.
“This thing is paid in full—all
but the new fire truck,” Jones told
the crowd of uniformed fire and
EMS crews last Friday. The
building was purchased in Octo
ber of 2009 for $598,719.
Photo supplied by Drug Task Force
On September 10, Drug Task Force agents along
with Pickens County Sheriff’s Deputies executed a
search warrant at a residence on Moores Gin Road.
This search warrant was a result of a two-month
undercover operation involving the distribution of
high-grade marijuana, according to a press release
from Commander Brandon Owens with the task
force.
Seized at the residence were approximately six
and one-half poimds of marijuana, 93 Hydrocodone
tablets, and four firearms. The marijuana seized is
considered Sinsemilla and has a street value of ap
proximately $5,000 a pound. The marijuana was
packaged separately and labeled with different
names, Owens stated in the release.
According to the Drug Task Force, Barbra
Rastellini was arrested and charged with possession
of marijuana with the intent to distribute and pos
session of a firearm during the commission of a
felony. Erik Latorre was arrested and charged with
distribution of marijuana, distribution of a Schedule
II drug, possession of marijuana with the intent to
distribute, possession of a firearm during the com
mission of a felony, and possession of a firearm by
a convicted felon.
To date, this is the largest seizure of Sinsemilla
marijuana by the Drug Task Force, Owens said.
This investigation is ongoing, and more arrests will
be made in the Iliture.
The Zell Miller Mountain Parkway Drug Task
Force is supported by the Pickens County Sheriff
and the Office of the District Attorney. If you have
any drug information, please call 1-866-920-6384.
All calls are anonymous.
Properties with ‘06- ’09 back taxes to be sold at auction
First of three tax sales scheduled for Oct. 5
Live music at Cruise-In
Jasper’s monthly Main Street
Cruise-In turns up the volume
this weekend with a perform
ance by The Dashcrackers, a
local cover band playing every
thing from classic rock to R&B
to pop. There is no fee to attend,
so bring out the entire family
and your vintage vehicle for a
revving good time.
Page 3A
Cheese, if you please
A Ball Ground resident has
turned her passion for cheese
making into a part-time career,
teaching students the “whey” to
prepare Ricotta, Camembert
and feta at her home cheese
making classes. Grab some
foodie friends and curd-tail it on
over. Page 10A
Troubled boys ranch
now completed
Good Shepherd Ranch founder
Jim Smith expects the 5,000-
square foot home he built in
west Pickens for troubled boys
will begin housing kids as early
as this autumn. The faith-based
ranch aims to provide a loving,
safe and nurturing environment
for boys ages 6-18 years.
Page 18A
Deaths
Timmy Brookshire
Helen Evans
Chad Eubanks
Ollie Mullinax
Steve Martin
Gene Roland
Olen Parker
OBITUARIES, Page 16A
By Christie Pool
Despite a stagnant economy. Tax Commissioner
Sharon Troglin said last week that this autumn’s
scheduled tax sales will see only a few more prop
erties on the block than is typical during any other
year.
The first tax sale, scheduled October 5, will sell
off properties owned by people whose last names
begin with letters “A” through “G”. The second
sale, on November 2nd, will auction properties
owned by people whose last names begin with let
ters “H” through “M”. The December 7th sale will
put up properties owned by people with last names
that begin with letters “N” through “Z”.
Troglin said owners often pay back taxes at the
last minute to save parcels from going to auction,
but as things stand now, 78 properties are slated for
sale in two weeks on the courthouse steps. Of those
78 properties, 44 are being sold for 2009 back
taxes; 24 for taxes due in 2008 and 2009; eight for
taxes uncollected in 2007-2009; and two for 2006-
2009 taxes.
“With the economy the way it is, that has a lot
to bear on the number of sales,” Troglin said. “We
might have issued a few more FiFas than in previ
ous years, but it’s running about the same really.”
After property taxes are levied and a due date
set each year, taxpayers have 90 days after that
deadline to pay up before a 10 percent penalty is
assessed, Troglin said. If taxes still go unpaid, her
office issues a letter of intent to FiFa, followed later
by the actual FiFa or lien against the property. If
taxes remain unpaid, the county can sell the prop
erty at public auction in order to collect the taxes
owed.
For the 2009 tax year, Troglin said her office has
collected 87 percent of taxes for mobile homes, 97
percent of taxes Continued on Page 20A
Weather
By WILLIAM DILBECK
HI
LOW
RAIN
Tuesday
86
54
.00
Wednesday
87
61
.00
Thursday
85
64
.22
Friday
85
61
.00
Saturday
86
61
.00
Sunday
87
61
.00
Monday
89
62
.00
The Progress is
printed, in part, on
recycled newsprint
and is recyclable.
Letters to the Editor 13A
People 19A
Sports 1B
Legals 7B
Classifieds 12B
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