Jim Grimes said Dec. 19 he is optimistic about the future of Duck Puddle Campground.
Grimes said he is in the middle of a Chapter 11 Bankruptcy reorganization and that his attorney has already submitted a plan to the bankruptcy court in Boston.
The Grimes family first saw Duck Puddle Campground more than 25 years ago, while traveling in Maine. Grimes said Oct. 4 his family loved the Nobleboro campground and soon became seasonal campers, little knowing that they would eventually own the place.
The Grimes family still owns a home in Carver, Mass., but spends much of the year at Duck Puddle, which they bought eight years ago.
An auction was scheduled for Oct. 26 but was canceled at the last minute, after parties were notified of the Chapter 11 filing.
“We took out a second mortgage and put $750,000 into the campground,” Grimes said. He used those funds to build a new cottage and bathhouse, as well as six new cabins.
In addition, Grimes added 25 new campsites and some septic systems, all part of a two-phase plan to add roads, a new pavilion building and a total of 70-80 new campsites and 12 new cabins.
“We did all the engineering and got all the approvals from the town,” he said. “The town of Nobleboro’s always been very good.”
Grimes said the first phase has been completed, but that he was unable to complete the project, in spite of the fact that all the permits were granted and the engineering has been done.
“No one knew we’d go through a seven-year economic slowdown,” he said. Grimes said the mortgage was amortized for 25 years but required refinancing every three years. He said the bank kept extending the term but a time came when he did not meet the requirements for refinancing.
He said revenue has covered the bills and the debt but did not cover what bankers call debt service coverage.
Grimes said The First bank has been very cooperative, but that despite his ability to pay the bills, the lack of additional revenue makes the note “non-performing.”
“They just decided to call the note,” he said. He said Duck Puddle has a good reputation, and that the bank was within its rights in its desire to clear the books.
On Dec. 19 Grimes said the reorganization plan would cover the next 3-5 years of the campground’s operation.
“We’re optimistic,” Grimes said. “I don’t know if the bank has an opposite view. We’re keeping our options open.”
“Obviously, we want to keep it as a campground,” he said. “We’ve been excited about some of the events we’ve had.”
He said the business has shown growth, although slow, in a very difficult economic environment.
Grimes said he would be willing to sell the property if the new owner would continue to run it as a campground. He said he was also willing to work as a partner in a joint venture.
“All the options are open,” he said. “We’re into trying anything that makes sense.”
Grimes said the bank might exercise its option to ask the bankruptcy court for relief. According to the website at www.nolo.com/legal-encyclopedia/bankruptcy-automatic-stay-foreclosure.html, termination of a stay would end the stay and allow the creditor to proceed in enforcing its claim. Grimes said he has not heard anything to indicate that The First is asking for such relief.
“The bank could fight this,” Grimes said. “It’s not certain. Any time there’s a stay on an automatic foreclosure, if you don’t follow the plan there’s a provision for the bank to gain relief.”
He said it was his intention to follow the plan now under the court’s consideration.
“We’re looking forward to the plan being accepted,” he said. Grimes said he is in constant contact with his attorney and the bankruptcy court.
“We love the place and want to keep it running,” Grimes said. “We’ve come over the hurdle. We never expected this seven-year economic cycle. We’ve paid the bills. We want to get it to the next level.”
Duck Puddle Campground comprises more than 47 acres of land with 1500 feet of frontage on Pemaquid Pond. Approximately 40 percent of the sites are held by seasonal campers, most of whom arrive in May and stay through Columbus Day.
Grimes said those campers tend to be self-contained, but more casual, short term visitors, who come from places as far away as Sweden and Australia, add to the local economy, shopping at the camp store, renting boats and spending time in nearby towns where they eat out and buy souvenirs.
For the past two years, Grimes has sponsored Puddle Palooza, a weekend in which local bands perform country and classic rock music all weekend.
“We did that on a bet,” he said. The challenge was to find a way to improve business on the slowest weekend of the year. The first year we broke even, with a hurricane (Hurricane Irene) behind us. The second year we did twice as well.”
He said he had hoped Puddle Palooza and other events he planned for the future would bring more local residents to the campground.
Grimes said he hopes that accomplishing the plan will encourage investment.
“We’re trying to keep positive,” he said.
Duck Puddle Campground can be reached at 563-5608.
