This headline in Friday’s sports section caught my eye: “Ginn rejuvenates struggling team.”
But who, I thought to myself, infused new life into Bobby Ginn?
For the past 20 years, I’ve watched Bobby Ginn’s real estate development career. From 1986 to 1988, I was neck deep in it as I reported business news for The Island Packet.
Bobby was in the news because Hilton Head Island’s largest resort and development company was caught in a legal quaqmire that most thought at the time would bury his career. Ginn Holdings Corp., which in 1985 controlled the fate of Sea Pines, Wexford, Shipyard Plantation, Port Royal Plantation and Indigo Run, had come unglued in one short year.
By the time I started covering Bobby, the company’s name had been changed to Hilton Head Holdings Corp. and a colorful cast of characters out of Florida was driving it straight into bankruptcy.
I first met Bobby in the old Beaufort County courthouse, where a state lawsuit involving the company was under way. Bobby very nicely told this new reporter who the players were lined up at the tables facing Judge Clyde Eltzroth, who presided complete with favorite hound dog at his feet. Charming was the word used most frequently to describe Bobby.
A Cox News Service story published in 1989 included this quote from a former business associate, “Here’s a fellow who has given bankers blood baths. They’ll walk in the door and see Bobby standing there and turn around. He’ll stop them at the door and two hours later they will go for his deal. He can literally talk you out of your (shirt) and sell it back to you.”
He was also described this way in the same story: “He is just the finest person I ever met in my whole life,” said Noel D. Thorne, then chief executive officer of Wild Dunes Associates. “He is just solid gold.”
Bobby faced financial trouble on several fronts in the 1980s. In addition to his Hilton Head issues, he was wrangling with the FDIC over millions of dollars in Tennessee bank loans.
At one point during 1985 somebody printed up bumper stickers that read, “Honk — if Bobby owes you.” The horns trumpeted across Hilton Head.
The Hilton Head Holdings bankruptcy, which came about nine months after Bobby relinquished control of the company, was a $100 million affair, with 2,000 unsecured creditors owed about $10 million. The rest of the debt was held in mortgages on prime Hilton Head property. Most of the people owed money were local business people. Before the Packet’s day-to-day coverage of Bobby ended, he had filed for personal bankruptcy.
Today, you can Google “Bobby Ginn” to read about his resort and real estate development empire that stretches from Florida to South Carolina to North Carolina to Vermont to Colorado to the Bahamas to Saint Thomas in the U.S. Virgin Islands. You can even come up with an entry headed “Bobby Ginn quotes.”
Here are two of my favorites from the days I covered Bobby. On Nov. 19, 1986, a daylong hearing was held in Aiken in front of federal Judge Sol Blatt Jr. The hearing actually lasted only a short time. Most of the day we cooled our heels in the historic Aiken County Courthouse, while various parties paraded in out of the judge’s chambers. At the end of the day, John Curry was named receiver for the company’s Sea Pines operations and David Axene was in charge of the properties formerly controlled by Marathon Oil Co., which still held mortgages.
Standing in the corridor, Bobby said to me, “Janet, when you write about this today, put it on the obituary page. They buried me.”
Later he told me, “I’m no longer the king; I’m the kingmaker.”
That’s why I find his remaking so fascinating. Only in America could such a transformation take place. The development fraternity certainly seems to take care of its own.
Go to his company’s Web site and his development career is described this way:
“Ginn Resorts’ explosive growth in recent years has earned President Bobby Ginn recognition as one of the nation’s leading developers of high-end golf course communities. A South Carolina native, Ginn has been involved with almost every type of development -– residential, hospitality, retail and commercial -– for the past 30 years.
“Ginn, who began his career in construction working for his father in the small town of Hampton, S.C., started modestly, building four or five houses a year. Before long, he was building 700 houses annually. At the same time, he began developing apartment buildings, shopping centers and industrial warehouses.
“By 1971, Ginn was involved in his first golf club project, a South Carolina community called Pleasant Point. Later, he spent most of his time in Hilton Head, S.C., developing and operating golf courses and hotels.”
For those who watched and suffered through that time on Hilton Head, there’s a lot to read between the lines.
Janet Smith
Editorial page editor
OldDog wrote:
Those were fun times
We used to say that there was only $10,000 on the island, it just moved from one account to another. We'd wonder when our turn was going to come around!
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»ZakHHP wrote:
Fabulous editorial, Janet
And now that you mention it, my wife and I can still remember those bumper stickers in 1986. Do you remember the front page, above the fold photograph in the Packet when the great consolidation of properties took place? Somehow, things didn't feel right at the time.
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»KarenAndysMom wrote:
Yowzer! That old coot!
Can't believe he has 'turned' himself around! He did indeed owe everyone on HHI. We were so disgusted with how he milked SPP for his own benefit.
I cudda gone another decade or two without ever hearing or reading his name again *(
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»June wrote:
Another remarkable coincidence, Zak.
Despite his vast knowledge, 9 out of 10 tries, gonzo replies to the wrong person. See here, how you are talking to Janet, but replied to OldDog? I can certainly understand why Brezz is so suspicious, but obviously incorrect. Hi to the wife and kids :)
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»brezz2285 wrote:
Re: Another remarkable coincidence, Zak.
I can certainly understand why Brezz is so suspicious, but obviously incorrect. Hi to the wife and kids :)
;) Did you notice his recent post where he uses gonzo's very same words as he distorts a poll? Priceless...
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»ZakHHP wrote:
PMS perhaps?
My but aren't we feeling nasty this morning? Is that a female version of the AOWG syndrome? Pardon me for doing what lots of bloggers do by simply adding to a thread by taking my turn after the most recent post. I hope your day improves. Try a beach walk with the brezz. That should cheer you up. Hi to the Hubby :)
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»June wrote:
Okay, now I'm even more suspicious.
If you think that was even anything close to PMS or nasty, then I don't think it's very likely you've been married for many years and have grown children.
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»CO wrote:
Re: Okay, now I'm even more suspicious.
If you think that was even anything close to PMS or nasty, then I don't think it's very likely you've been married for many years and have grown children.
I can vouch for that.
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»carolinej wrote:
The Ginn Open
Golf Tournament was either held recently or is coming up soon down here in Florida where I live now. I've heard about it on the radio recently. He has several large, high-end developments in Florida that I've seen online.
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»ZakHHP wrote:
If I were a Bachelor
I would have been dead a long time ago. I'm simply a loving, sensitive guy, who knows Packet Mean Spiritedness (also known as PMS) when I read it.
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»CO wrote:
Re: Yowzer! That old coot!
Can't believe he has 'turned' himself around! He did indeed owe everyone on HHI. We were so disgusted with how he milked SPP for his own benefit.
I cudda gone another decade or two without ever hearing or reading his name again *(
Aw, c'mon. We all love a good comeback story don't we?
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»June wrote:
Okay, I give, Zak. You are ZakHHP.
But just the crazy image of gonzo saying "I'm simply a loving, sensitive guy who knows Packet mean spiritedness when I read it...." gave me the laugh I needed for the day. Thanks :)
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»ZakHHP wrote:
You're Welcome
but now how do I convince the brezz? waterboarding?
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»brezz2285 wrote:
Re: You're Welcome
but now how do I convince the brezz? waterboarding?
I suggest an extended period of time where you don't mirror his words, his pattern of comments and his common posting errors...
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»ralamaker wrote:
Sounds Familiar
After reading this blog, it reminds me of a very famous person...Donald Trump. Basically, Bobby Ginn is the Donald Trump of the golf real estate development industry. Like you said, only in America can someone borrow millions of dollars, fall flat on their face, declare personal bankruptsy, and make it back to the top in a few years while everyone else is left with empty wallets. If Donald Trump or Bobby Ginn were to do declare personal bankruptsy today, there rise to the top would not happen so easily due to the governments new regualtions implemented lasy year.
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»leitnerwp2 wrote:
How does a person make a small fortune?
Just a few thoughts about resurrection and the "small fortune"
question that I have heard asked by my friends and family.
Most local readers have heard an answer to the question in the subject line above:
"Move to Hilton Head Island with a large fortune."
This applies materially to real estate prices. Property values
rise and then fall for various time periods; however, we have been
fortunate that real estate prices have historically only flattened
for a year or two and then increased for two or three years. The up
then slightly down property value cycle appears to have repeated a
few times since 1991.
Perhaps recent history (20 years to yesterday) repeats itself with
only different people (names) involved. Some people happened to
purchase property at the right time and the right place to make
more than a small fortune monetarily during the real
estate "inflation" that peaked near the end of calendar year 2005.
Perhaps Bobby Ginn just happened to be in the right place at the
wrong time or perhaps in the wrong place at the wrong time.
Property is only worth what someone is willing to pay for it.
Also, it only takes one person with enough spendable income to agree
to pay a negotiated price for your property if you are selling.
I have heard that property values in the Low Country are still
relatively low when compared to other regions of our country even
though more properties are available for sale now versus last year.
Perhaps our real (large or small) fortune is to live in a community
that is relatively affluent and has abundant blessings in the form of
God believing people that generally love their Creator enough that
they care about other persons more than about just themselves.
That may be our good fortune ... and may be larger than we realize
or even recognize.
I pray that more of our island's citizens and visitors will count
their blessings and know that only one Man on this Earth
physically was resurrected (Christians know and believe this person
is their Savior and Lord). He is the only One who can rejuvenate
the human mind, body, and soul to be alive as God meant us to be.
I wish each reader of this reply success in their efforts to
cause God joy in all they think, say, and do... 7 x 24
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»landman wrote:
Ginn Subject of Land Fraud - Michigan Residents File Class Actio
Below is an article I found in the Freeport News - Grand Bahama Island
Ginn Sued
By LEDEDRA MARCHE
Senior FN Reporter
lededra@nasguard.com
While construction is under way for its $4.9 billion mega-mix resort in West End, The Ginn Company is facing allegations of fraud, one of many claims cited in a class-action lawsuit filed in Michigan.
The suit names 99 plaintiffs from four of Ginn's affiliates and was filed in the United States District Court for the Eastern District of Michigan nearly five weeks ago.
The Ginn Company, one of the largest privately-held real estate development and management firms in the Southeast, signed a deal with the government in December 2005 to develop the mega-mix Gin Sur Mer Resort on nearly 2,000 acres in West End.
Ginn Sur Mer is the largest single investment in the region and involves 870 single family residential home sites, two championship ocean-front golf courses and clubhouses, 4,400 condominium hotel units two large marinas, 130,000 square-foot casino, swimming pools and water park facilities, tennis complexes, beach clubs and spas and a private airport.
The Ginn Company also currently has land under development in Florida, South Carolina, North Carolina, Vermont, Colorado and St. Thomas in the U.S. Virgin Islands.
The lawsuit cites a number of Ginn's properties, namely Bella Collina, Reunion, Tesoro and Hammock Beach, and alleges Ginn has breached agreements and violated several laws including the Interstate Land Sales Full Disclosure Act and the Securities and Exchange Act of 1934.
The Ginn Company, Ginn Real Estate Company, LLC, Cameron, Davis, & Gonzalez, Suntrust Bank, Ginn-LA Wilderness Ltd. LLLP, Ginn-LA Hammock Beach Ltd., LLLP, Ginn-LA Gi Orlando Ltd., LLP, and Ginn-LA Pine Island Ltd., LLP are the named plaintiffs in the suit.
The lot owners — who are being represented by Mekani, Orow, Mekani, Dhallal, Hakin & Hindo, P.C. out of Southfield, Michigan — say they have been defrauded. And, they say they are entitled to and they are demanding rescission of the contracts and that Ginn repurchase the properties and reimburse them for all carrying costs.
The suit also explains that the complaint is primarily due to the defendants' alleged use of the means and instrumentalities of interstate and foreign commerce, including the United States' mail, under 15 United States Codes.
The group is alleging that Ginn solicited plaintiffs in Michigan to purchase vacant residential lots in Florida, sent brochures and marketing materials advertising the lots and the opportunity to own lots in one more of the following: Ginn-LA Wilderness Ltd.
It is further being alleged that the defendants sent a pricing list for the lots to plaintiffs via federal express mail in Michigan and other states; hosted seminars in Michigan regarding purchasing Florida property in the Ginn Developments, one which was held as recently as March 2007.
The plaintiffs believe all Ginn affiliated entities were set up and run for the exclusive purpose of raising money from unsuspecting purchasers, like plaintiffs, for the benefit of Ginn and its affiliates.
The suit further alleges that Ginn created a complicated maze of companies to be used in marketing, soliciting and promoting properties to potential purchaser in order to avoid scrutiny of U.S. regulators.
According to the suit, Ginn, at the same time, perpetuated a "ponzi scheme" in which returns to investors were not financed through the success of the underlying business venture, but were taken from principal sums of newly attracted purchasers such as plaintiffs.
The plaintiffs were allegedly promised large returns for their investment and they say initial purchasers were actually paid the promised returns which attracted additional purchasers such as the plaintiffs.
According to the claims, while it was set up as a regularly operating business, the suit alleges that Ginn's purpose was to lure plaintiffs into the scheme knowing that the units being sold were never worth the purchase price paid by the plaintiffs.
In all, the suit is alleging nine counts namely violation of Interstate of Interstate Land Sales Act failure to provide property report; violation of the interstate Land Sales Act Fraud and Deceit upon purchasers; violation of securities and exchange rules registration, reporting and disclosure requirement; false representation under Securities Exchange Act of 1934; "Ponzi Scheme" and violation of section 10(b) of the Securities and Exchange Act; violation of State Securities laws; fraudulent misrepresentation; innocent representation; and violation of Racketeer Influenced and Corrupt Organizations Act.
The plaintiffs, among other things, are requesting they be granted judgment against all defendants in the total amount of all damages suffered by it as a result of Ginn's alleged wrongful acts and, they are demanding a trial by jury.
The Ginn Company offered no comment yesterday on the class action suit.
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