grails - Could not reserve enough space for object heap - grails

Question

I am getting this error running app:
BUILD SUCCESSFUL
| Compiling 5 source files
| Compiling 5 source files.....
***
Metrics servlet injected into web.xml
Metrics Admin servlet-mapping (for /metrics/*) injected into web.xml
***
| Running Grails application
Error occurred during initialization of VM
Could not reserve enough space for object heap
Error: Could not create the Java Virtual Machine.
Error: A fatal exception has occurred. Program will exit.
| Error Forked Grails VM exited with error
I looked over the same errors on Stack and made adjustments to the memory but I am still getting this error. I am new to Grails but I believe everything is setup correct and i can run a sample app (helloworld).
Here is the changes i made:
-Xms512m -Xmx1g -XX:PermSize=256m
This is the memory
free -m
total used free shared buffers cached
Mem: 2015 1297 718 56 169 859
-/+ buffers/cache: 267 1748
Checking if parameters are being read
$ ps -ef | grep java
tomcat7 32158 1 1 11:02 ? 00:00:10 /usr/lib/jvm/default-java/bin/java -Djava.util.logging.config.file=/var/lib/tomcat7/conf/logging.properties -Djava.util.logging.manager=org.apache.juli.ClassLoaderLogManager -Xms512m -Xmx1g -XX:PermSize=256m -XX:MaxPermSize=256m -Xms512m -Xmx1g -XX:+CMSClassUnloadingEnabled -XX:+CMSPermGenSweepingEnabled -XX:+UseConcMarkSweepGC -XX:MaxPermSize=256m -Djava.endorsed.dirs=/usr/share/tomcat7/endorsed -classpath /usr/share/tomcat7/bin/bootstrap.jar:/usr/share/tomcat7/bin/tomcat-juli.jar -Dcatalina.base=/var/lib/tomcat7 -Dcatalina.home=/usr/share/tomcat7 -Djava.io.tmpdir=/tmp/tomcat7-tomcat7-tmp org.apache.catalina.startup.Bootstrap start
I have this in my $HOME/.profile
export JAVA_OPTS="-Xms512m -Xmx1g -XX:MaxPermSize=256m"
in my setenv.sh for Tomcat7
export CATALINA_OPTS="-Xms512m -Xmx1g \
-XX:+CMSClassUnloadingEnabled \
-XX:+CMSPermGenSweepingEnabled \
-XX:+UseConcMarkSweepGC \
-XX:MaxPermSize=256m"
I am not sure what to change now - it seems the memory would be adequate? Please any thoughts would be great. thank you
Forgot to add if needed:
$ grails -version
Grails version: 2.4.5
$ java -version
java version "1.7.0_95"
OpenJDK Runtime Environment (IcedTea 2.6.4) (7u95-2.6.4-0ubuntu0.14.04.1)
OpenJDK Client VM (build 24.95-b01, mixed mode, sharing)