Sale of Georgetown steel mill canceled, placing major redevelopment effort in jeopardy

SEATTLE (Scrap Monster): A contract to sell Georgetown's crumbling steel mill has been terminated, jeopardizing plans for a major waterfront redevelopment in a city devastated by the loss of heavy industry in recent years.

A spokesperson for Liberty Steel, which owns the 66-acre site, told The Post and Courier in an email that a deal to sell the property to River Development Equities had been canceled and that Liberty was "actively engaged with other parties on a potential transaction."

The agreement with River Development was significant because the New Jersey firm also plans to redevelop the former International Paper site. Combined with the county's port, local officials have hoped all three properties could be part of a cohesive revitalization effort. 

"They're all tied together," said state Rep. Lee Hewitt, R-Murrells Inlet. "To all of a sudden have this property kind of thrown into the flux of where it is just sets everything else back. For the city, it's a terrible blow for them."

Warren Waters, River Development's principal and founding member, confirmed the status of the deal and said he would be addressing the situation at a public meeting that his company has scheduled for next week. That meeting is set for 5:30 p.m. Sept. 24 at the Winyah Auditorium in Georgetown. 

Waters noted that his company's plans for the International Paper property are still progressing, but it's unclear what will happen with the former steel mill.

"The project is in jeopardy," he said.

The deal hit a roadblock when Liberty pushed to close on the property before River Development's plans for the site could be approved by the city, said Hewitt, who has been monitoring the sale.  

"I hope that they're able to come back to terms on extending the contract," Hewitt said of Liberty and River Development. "I know Warren has spent a lot of money, and he's got a history of cleaning properties up. ... Here he is about to cross the finish line in what could be a transformative project for the city of Georgetown."

The two mill deals marked a major step in planning the next chapter of a community that was left reeling from losing its mills in recent years.

The paper mill was Georgetown's economic engine for nearly 90 years, and its late 2024 closure eliminated nearly 700 jobs. The nearby Liberty mill was idled in October 2024, and the city announced last year that it would be demolished.

Although the steel mill has long been an industrial site, River Development officials had said they would like to see the property redeveloped as a waterfront hub with shops, bars, restaurants, a hotel, an amphitheater and an extension of the city's Harbor Walk.

"No one had this kind of vision," Waters said.

What happens to the cleanup?

River Development specializes in revitalizing old industrial sites, and a key part of its Liberty Steel plan has been the environmental cleanup that would happen first. 

A Department of Environmental Services spokesperson told The Post and Courier last month that site assessments were underway and typically take weeks to months to complete. The state agency did not have a timeline for when the steel mill work would be finished at that time, and a DES representative could not be reached late Sept. 16.  

Hewitt said he's spoken with state environmental officials who have reviewed Waters' plans for the property and they were pleased with the work the company has proposed.

"As somebody whose plan is to own the property — he's not there to try to flip it — it was in his best interest to do what was best for the property and best for the city of Georgetown," he said.

Should another company buy the site, Hewitt fears that could cause delays.

"You've got to reset the clock and start all over again," he said. "That just sets Georgetown back that much further."

Georgetown Mayor Jay Doyle echoed those concerns.

"I'm surprised, and I'm not," Doyle said of the sale falling through. "I thought that they would work it out. But I've also heard that Liberty Steel can be difficult, so it's disappointing. River Development is a good group, and I thought they would be able to get it done."

Doyle said he's sure a buyer will eventually come along to acquire the property.

"In the long run, it’s a good thing, and it's going to improve the city," Doyle said of the mill redevelopment.

Liberty Steel owes Santee Cooper

The contract termination comes just weeks before Liberty is required to pay more than $1 million as part of a legal settlement. 

The company and Santee Cooper finalized the agreement in July after the state-run utility sought more than $7 million from the mill owner for allegedly breaching an agreement to pay for electricity.

Liberty must pay the Moncks Corner-based power provider $1.1 million from the sale of the property by Oct. 30, according to a copy of the agreement obtained by The Post and Courier through a public records request. A $5 million judgment would be entered against the steelmaker if it doesn't make the payment on time, according to the agreement. 

Santee Cooper isn't the only organization to take Liberty to court over the Georgetown mill.

A Connecticut gas supply company sued Liberty last year, alleging the local mill had racked up over $10 million in unpaid invoices. That case is still pending, according to court records.

And in June, an Indiana company that did demolition work at the mill site filed a complaint against Liberty. GMI Services alleges it is owed nearly $1.6 million for additional work it had to complete on the property.

GMI maintains Liberty did not initially obtain the permits needed for the demolition and there were additional delays because of asbestos removal and issues with rail traffic.

What will be discussed next week?

During the Sept. 24 meeting, Waters and his team plan to provide an overview about the work they've completed thus far as well as answer questions from the public after their presentation.

The meeting is expected to last until 7:30 p.m.

Courtesy: www.postandcourier.com