Jim Grimes first saw Duck Puddle Campground more than 25 years ago, while traveling with his family. They 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. On Fri., Oct. 26 at 11 a.m. Duck Puddle Campground will be placed on auction, the result, according to Grimes of a desire to improve the property at a time when economic forces were cutting back on the number of people traveling to the campground.
“We took out a second mortgage and put $750,000 into the campground,” he said Oct. 4. He said that involved building 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 more than 100 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.
“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.
“The problem was that a campground is only appraised for value by revenue,” he said. “We’ve only shown enough revenue to basically cover the bills and the debt.” He said there were not enough funds left over for what bankers call debt service coverage.
Grimes said The First bank has been very cooperative, but 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 the bank was within its rights in its desire to clear the books.
“When you run a campground you’re dependent on the weather and the economy.” Grimes said. “We’ve done a pretty good job developing it…Campgrounds, for commercial real estate, are probably at the bottom of the food chain.”
He said it is difficult in the current economy to come up with alternative ways to keep the property, but he will work until the last minute to find such an opportunity.
Grimes said he has listed Duck Puddle Campground for sale for the past year with an asking price of $2.1 million, but only one prospective buyer came forward to see the property.
“Between our first and second mortgages, we’re just trying to get our initial investment.” he said. “We’re not going to get it at that price.”
Duck Puddle Campground includes 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.
Grimes said his own experiences as a seasonal camper informed his decisions about improving Duck Puddle.
“It just looks like it isn’t enough,” he said.
For the past two years, Grimes has sponsored Puddle Palooza, a weekend long event in which local bands perform country and classic rock music.
“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.
While he understands the bank’s position, Grimes said it would be better to sell the property in the spring, when deposits for the coming season are coming in from seasonal campers. He said he and many of his seasonal campers, some of whom also work at the campground, are sad at the prospect of a sale and he hopes to find a way to resolve his issues with the bank. He said he was looking for an investor to help him stay on.
“It would be nice if the bank, by some miracle, decided they want to extend it another year,” he said. “I think we could make it work.”
“People come to stay overnight and end up staying longer,” Grimes said. “We love this place. Most people do.”
Bids will be accepted beginning at 11 a.m. on Fri., Oct. 26. All bidders will be required to deposit $50,000 in cash or certified check made payable to Tranzon. The property will be sold to the highest bidder, who must leave a non-refundable deposit and sign a purchase and sale agreement calling for a closing within 45 days. Other terms may be announced prior to or at the auction.
For further information regarding the property, the auction, legal and bidding details, and additional terms, contact the auctioneer, Tranzon, 93 Exchange St., Portland 04101 or call 775-4300.
Duck Puddle Campground can be reached at 563-5608.
