Fish Island foreclosure renews focus on site

A new future could be taking shape for St. Augustine's Fish Island.

Some are asking what foreclosure proceedings for part of Fish Island could mean for the land's future. Local residents have been pushing for the area to be preserved.

The area came in focus when developer D.R. Horton, which was under contract to buy part of Fish Island, sought to rezone part of the land to bring up to 170 homes to the site. The city's planning board rejected that move in August, but that didn't remove the opportunity for development from the property.

At Monday's City Commission meeting, Commissioner Nancy Sikes-Kline asked for an update on the property because people have asked her to look into a possible change in status.

"I don’t know if there’s a foreclosure going on. ... What is up with that and how does that affect us in our interest in it? Does it or doesn’t it?” she asked.

City Manager John Regan said more information could be coming this week.

“I expect to hear some information on Wednesday from representatives of Fish Island," Regan said. "I’m not sure what they’re going to tell me. I can tell you this, that I’ve been told it’s not under contract with any developers.”

Regan declined to provide more information at the time.

D.R. Horton officials didn't immediately respond to a question Tuesday about whether the company has abandoned plans to buy the property.

Planning board member Carl Blow reported the foreclosure proceedings at the board's meeting this month. The board was reviewing a tree-removal request for a water detention system for a commercial development on Fish Island.

Court records show that Atlantic Coast Bank, now known as Ameris Bank, is seeking a final judgement of foreclosure for parts of of Fish Island in a case involving Fish Island Development, Harbour Island South Property Owners' Association and Fish Island Property Owners Master Association.

Fish Island Development is the borrower and property owner, but the other entities may have an interest in the property, according to the original complaint.

Case documents say that the bank filed a complaint in January 2017 but then entered into an agreement in August with Fish Island Development LLC and Fish Island Property Owners Master Association to give Fish Island Development through Dec. 1, 2018, to sell the property and pay its obligations.

Atlantic Coast Bank was seeking more than $5.5 million from the sale, which includes attorneys' fees and other costs.  Because the sale didn't happen, the bank is seeking $6.5 million as part of the terms of the August agreement.

The case reopened in December, and a judge was assigned to the case this month. People connected to the case didn't return calls for comment on Tuesday afternoon.