CORRECTION: Reynolds Plantation Must Pay Lenders $45 Million by the End of April 2011 originally reported the payment was due by the end of 2011. Read Mercer Reynolds’ letter to property owners.

Palm Coast, FL – February 8, 2011 – On February 3rd, broke the news story that Reynolds Plantation had placed its club assets for sale to satisfy lenders’ demand to pay down a credit line by $45 million. The original story (now corrected) stated that the payment was due by the end of 2011. The story has been corrected to reflect the due date for the $45 million payment by "the end of April 2011."
Mercer Reynolds letter to property owners:
Dear Property Owner:
Over the last several years, our management team has worked diligently to make appropriate decisions which have made it possible for Reynolds Plantation to move forward through the worst real estate downturn since the Great Depression. Historically, acquiring land in the Lake Oconee area to ensure that Reynolds Plantation continued to grow has been a reliable business strategy. However, with this downturn we found ourselves in the position of having acquired more real estate, and debt, for Reynolds Plantation than is supported by recent demand.

As is common in our industry, the company has operated with a line of credit financed by a group of banks. With the support of these banks, we have been able to operate within this credit line even during this soft real estate market. The question has been asked often, and we think it is important for you to know, this credit line is for use only by Linger Longer Development Company (LLDC), its joint ventures, affiliates, and the businesses owned by LLDC and its subsidiaries, namely Reynolds Plantation, Great Waters, The Landing, and Achasta. As mentioned previously, other projects which are either owned or managed by Reynolds Companies outside of the Lake Oconee area are completely separate from the ownership and management of LLDC and are not financed or otherwise funded by LLDC.

The line of credit was up for renewal at the end of 2010. In order to be granted a three year renewal of our credit line, Jamie and I have pledged a number of additional assets (totaling approximately $60 million) to the banks. In addition to our contribution, a significant paydown of $45 million is required within our debt structure by the end of April 2011.

Knowing this line of credit was going to be up for renewal, the company pursued a number of different alternatives over the past year to generate the funds needed to satisfy the paydown requirement. These options included selling off non-core property, raising funds through 3rd party investments into LLDC, and a host of other alternatives. After reviewing these alternatives, we concluded the best way to generate the $45 million paydown in this tight market is the sale of the Club assets and amenities (golf courses, clubhouses, marinas, Lake Club, pools, tennis facilities, etc.). 

Given the significance of this decision, we have spent a considerable amount of time evaluating a number of purchasers; these include:

* The Property Owners Association
* An independent third party, which has made an offer
* A smaller group of property owners  
All of the options above are being actively evaluated. No decisions have been made. Attached you will find a set of questions and answers developed to give you a basic understanding of how this change might affect you. This correspondence may not answer all of your questions, but at this stage we want to communicate what we can about the decisions ahead. Additional communication will follow as more details become available. Please direct any comments or questions you have to:

We are proud of all that has been accomplished here at Reynolds Plantation over the past twenty plus years. There is no doubt the success we have enjoyed to date and the future successes of this community are heavily dependent on the satisfaction and support of our property owners. Our decisions will be based on what best preserves your property values, lifestyle, environment, and the character of the community.By working together, we are convinced we can accomplish all of our mutual goals.

Mercer Reynolds                                                         
The Club at Reynolds Plantation
1.  How do you expect the sale of the Club to affect my membership or my use privileges?
A:   Linger Longer Development Company (LLDC) will place restrictions in the purchase and sale agreement to protect the existing members use and privileges in the Club.

2.  What happens to my initiation deposit paid to the Club?

A:   There are no plans to change refund policies. LLDC will continue to have the refund liability for all initiation deposits paid to date and into the future.

3.  What is the financial status of the Club operations?

A:   LLDC has made significant progress in reducing the operational deficit of the Club over the past several years. As we sell out the balance of the available memberships over the next several years, the Club is expected to become profitable.

4.  What will happen to my membership dues when the Club is sold?

A:   LLDC will place restrictions in the purchase and sale agreement to limit dues increases.

5.  How will you ensure the quality of Club services is not affected after the sale?

A:   Club purchaser will be required to maintain the Club amenities in a first class condition with operating standards comparable to those that currently exist. In addition, we expect to preserve the continuity of Club services with existing Club employees and management.

6.  What is being done to ensure the long term stability of LLDC?

A:   Here are several examples of what is being done to enhance our financial stability:
  • The long term extension of the line of credit by the banks which shows strong support for the viability of our business.
  • The recent contribution of an additional $60 million in assets by the Reynolds family demonstrates their continued confidence and commitment.
  • There will be a substantial reduction in debt with the sale of the Club amenities.
  • We have significantly reduced cost to improve the ongoing operational efficiencies of the company while maintaining the Reynolds Plantation lifestyle.
7.  What is included in the sale of “Club assets and amenities”?
A:   Golf courses, clubhouses, maintenance facilities, marina facilities, pools and cottage rental operation, The Lake Club, the Jackson House, the Nature & Heritage Center, Administration Building, Central Services Building and furniture, fixtures and equipment related to such facilities.

8.  What is the company’s investment in the Club amenities?

A:   The cost of construction of the Club amenities was approximately $136 million.

9.  How will the sale of the Club affect the construction of the Richland Golf Course?

A:   The start of the golf course construction will be based on the pace of real estate sales and is not affected by the sale of the Club. Our current projections reflect the course beginning construction by 2013.
 10.  How does the sale of the Club affect those that have committed to the Richland level membership?
A:   This transaction has no affect on those who have committed to this level of membership. LLDC is planning to issue another 10% ($1,000) club credit to those who have paid their $10,000. We will also continue to allow those who have chosen the $15,000 deferred option to leave the Club without having to pay this amount until such time as the construction of this course begins.
 11.  Will any of the proceeds of this club sale be paid to Linger Longer Development Company or its stockholders?
A:   No. The proceeds from the sale are going to the banks to reduce debt and to pay for closing costs.
7 replies
  1. sam johnson
    sam johnson says:


    Toby. Great job reporting on this story. These are the new crooks on the block who are leading reunion into the toilet. These crooks are in charge of hoa money here and also are the frauds behind ginn/adler who owe millions to the cdd which operates pools,landscaping and security which ginn owns. The sad part of all of this toby is a couple of us warned the reunion people for the past 3 years and were told how beautiful reunion was and that we were nuts. And they are still paying DUES to a fraud membership.

  2. Frank
    Frank says:

    Blah Blah

    Words are just that…blah…blah!
    And why did LLDC purchase Ginn’s failed development in Boone, NC?
    It is not that the real estate market has inproved since that purchase – not too smart on their part.
    If LLDC cannot manage their own developments, how are we to believe their management practices with former Ginn communities is any better?
    Another example of arrogance, stupidity and high flyin’ developers. When is this going to end?

  3. Jim Nesbit
    Jim Nesbit says:

    Lets Move On

    Come on now, how stupid our your readers, Reynolds is trying to salvage a tough note and your readers draw a line to Reynolds and say we are somehow being poorly served at reunion and hammock beach.

    It is time to get your head out of the sand and realize reynolds brought us stability and has solved problems, if you hate Ginn than say so, but stop throwing out the baby with the bath water.

    As far as my wife and I can see reynolds has helped us here at hammock and from our neighbors we understand reynolds Blue ridge is selling again with plans to begin the first 9 holes of golf. So why do we need to continually have those who know nothing talk like they are somehow being violated?

    It is time to move forward and if you cannot, it is probably time for you to move somewhere else where you feel somehow more appreciated? In any case drop the wounded routine, it is getting far too old……in my opinion!

  4. Larson
    Larson says:


    Yuo are corrrect on that one….it seems the difference between Ginn and Reynolds is the way this all went down. Ginn members got the screws up to them, and it seems like here that they are trying to keep the members fully engaged. If the members buy it and LLDC keeps selling, it could turn out to be a huge win win for all

  5. sam johnson
    sam johnson says:


    what are you guys agreeing with
    1 ginn/adler hired a company to run the club at reunion which is not a club but a threat tied in to your home
    2 hired a company to run reunion which does not know how to run their own and will lose it by march
    3 hire a company to run reunion by the same owner that screwed it up and now has screwed it up more
    4 look ahead to what? the same owners who lied to everyone are still here behind the scenes
    if you believe bobby is still not calling the shots with adler you also think the ttoth fairy is real

    guys open your eyes

  6. frankie coconote
    frankie coconote says:

    sammy ,where were u

    sammy, where have u been, haven’t heard from u in a while.Looks like jim from hammock is lost in space. reunion still sucks. They throw out every outing they can out there they possibly can, regardless of members.[ i hate useing that word]. At the member/guest, they had outside outing on same course as members event. how stupid.Group was hitting into last members group. f&b still is the worst. Managers could get job at Mcdonalds. Still paying the threat game. Rather turn away golfers money at pro shop if not staying in designated renting unit. And refuse people/ revenue at water park, in the name of members. "members" would love extra revenue from F&b from private renter. Just ask them

  7. Mike Larson
    Mike Larson says:


    Sam J- I can’t argue your point in regards to the management of Reunion. That is my point, i guess. I see the difference bewteen these two deals to be that at Reunion the members didn’t get chance to decide their fate while at Reynolds they have an opportunity to control it. If they have truly been considered a potential buyer, I am sure they will jump at a chance to own it themselves- this type of member purchase happens all the time in the golf course community development world….now a third party buying it would be a whole different situation…

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