Capital City Bank reclaimed land mortgaged by the Port St. Joe Port Authority last Thursday during a foreclosure auction at the Gulf County Courthouse.
Three parties signed up to bid on the parcel, roughly 60 acres along the Gulf County Canal on which a barge terminal bulkhead was constructed.
However, after a representative of Capital City Bank started the bidding at $5 million there were no other bids.
The parcel was owned by the Port Authority, which lost foreclosure litigation to Capital City Bank earlier this year.
A final judgment against the Port Authority in the case was for $5.3 million and it is unclear if Capital City Bank might pursue the Port Authority for a “deficiency judgment” given the price the land brought at auction was under the judgment amount.
The Port Authority had hoped to secure an agreement with Capital City about the land with the carrot of a rail easement.
However, it turned out the board provided that rail easement on the old Arizona Chemical property, how owned by the Port Authority, as part of concessions made in 2011 as the Port Authority first experienced issues with loan payments.
“We still have the Arizona Chemical site and we still have our missions to create jobs,” said Port Authority chair Leonard Costin.
The property was appraised late in the prior decade by the St. Joe Company. That appraisal pegged the land’s value at under $4 million.
Capital City Bank subsequently funded another appraisal but the land’s value stemming from that appraisal was never shared with the Port Authority.