Investigate CATALINA_OPTS in addition to or in place of JAVA_OPTS
As suggested by Chris Blackwell on the Railo List:
Do not use JAVA_OPTS to pass arguments to tomcat, use CATALINA_OPTS
for an explanation of why, see -> http://www.wellho.net/mouth/2163_CATALINA-OPTS-v-JAVA-OPTS-What-is-the-difference-.html
basically, if you set -Xms1024m in JAVA_OPTS the java process that is spawned to restart tomcat also uses that amount of memory, so only use global options in JAVA_OPTS, not per process stuff which for tomcat should be placed in CATALINA_OPTS.
Investigate using CATALINA_OPTS in addition to or in place of JAVA_OPTS in default config in an effort to decrease the number of problems occurring during shutdown of the Railo server Tomcat instance. I imagine replacing JAVA_OPTS completely would make the JVM use default options (which are really tiny) during shutdown so may need to customize those as well to avoid other potential problems with memory during shutdown.