Officials with the Augusta Canal Authority say they were forced into litigation with Cape Augusta, the one-time owner of King Mill and lessee of Sibley Mill.
One suit alleges that before Cape Augusta sold King Mill to new owner Cross Gate Partners, construction work left the part of the complex still owned by the Canal Authority, which is used for hydroelectric power generation, open to the elements.
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Water seeping into the building damaged the equipment and caused a switchgear fire that destroyed the transformers which, according to Canal Authority Chairman Richard Isdell, cost over $500,000 in physical damage and an untold amount of money in power generation profits.
Isdell says that the building has not been able to generate power for the past two years.
The second legal matter pertains to the lease agreement Cape Augusta signed for Sibley Mill.
According to the lease agreement, Cape Augusta was to sublet the building for use as a cyber center. However, it was later determined that the building was inadequate for such use, and Cape Augusta decided instead to renovate the building to house residential tenants.
Instead of consulting with the Canal Authority, Isdell says Cape Augusta’s Chairman Wayne Millar, a native of South Africa, attempted to have the zoning for the building changed from industrial to residential without the authority’s knowledge.
“He actually tried three times to have the zoning changed and had to be told each time that only the owners of the building can petition for a change,” Isdell said.
Isdell says that on one attempt, Millar was almost successful in getting the zoning hearing, but Canal Authority staff noticed a sign placed in front of the Sibley Mill property and were able to prevent the hearing from occurring.
According to the lease, Cape Augusta is only being charged $22,000 annually for rent, with the rent payments starting five years after the lease was signed, and Isdell says that figure was based on the original conceptual use of the building.
The lawsuit also contends that Cape Augusta has not completed any of the needed renovations and maintenance as agreed and the neglect has allowed for the roof to leak and cause damage inside the historic structure.
According to Isdell, the National Park Service has cited Cape Augusta for not properly mothballing the building.
Mediation has failed to bring the parties a workable solution.
“We spent eight hours trying to come to a compromise, but they are just not willing to mediate on anything. They haven’t had to pay a dime in rent, and they are neglecting the building,” Isdell said.
Millar could not be reached for comment.
Scott Hudson is the Senior Investigative Reporter and Editorial Page Editor for The Augusta Press. Reach him at scott@theaugustapress.com
