How Sea Island Became a Paradise Lost

A.W. "Bill" Jones III had an eye for the finer things. After taking over his family's sprawling golf resort on Sea Island, Ga., in 1992, he toured America's top clubs for a sense of what the competition had to offer. Soon Sea Island Co.'s clubhouse locker rooms boasted antique wood beams, overstuffed couches, fireplaces, libraries, and mounted game from Jones' hunting trips to Africa.

Had his ambition ended there, Sea Island Co. might still be profitable. But Jones was just getting started. In 2001 he launched a plan to turn his sleepy island retreat into the Pebble Beach of the East, a playground for the global elite. He would rebuild Sea Island's Cloister Hotel and beach club in five-star splendor, replete with fine dining, a luxury spa, squash courts, koi ponds, and, overlooking all the action, high-end condos. The project's price tag quickly swelled to $500 million, but getting the money wouldn't be a problem. Jones sat on the board of a thriving regional bank, Columbus (Ga.)-based Synovus Financial Corp. (SNV), and his old hunting buddy and family friend, James H. Blanchard, wasn't just the CEO of Synovus—Blanchard also sat on Sea Island Co.'s board.