Projects in Fayette County near Atlanta and Columbia County, west of Augusta, GA, are benefiting from the program which pays the lender the loan balance if a borrower defaults on the contract. Although five years old, the program is fairly well-known for aiding residential and commercial development in rural locations throughout the US, but not well-known for its help in assisting recreational ventures, brokers say.
For example, it's doubtful if John Boykin of Roswell, GA, could have developed his non-profit Palmer Course at Starr's Mill in Fayette County without a guarantee from the Rural Development agency, brokers tell GlobeSt.com. Boykin borrowed $6 million from Heritage Bank to buy the 294-acre, 306-home Whitewater Creek community from Robert Brooks, chairman of locally based Hooters of America restaurant chain.
Boykin bought Whitewater for $20,408 per acre, or about 47 cents per sf, brokers in a position to know tell GlobeSt.com. To fund renovations and set up working capital, the entrepreneur then sold off 66 acres for $1.8 million, or $27,272 per acre (63 cents per sf).
Any profits from the project will go to area charitable undertakings such as the Friday and Asden Johnson Homes for abused children, the Joseph Sams School for children with special needs and Fayette Senior Services, Boykin has told associates and friends, brokers say.
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