CPA fears losses on proposed marina transfer

The Commonwealth Ports Authority stands to lose thousands of dollars in revenues if legislation seeking to terminate the submerged land lease contract with the Marine Revitalization Corporation is enacted into law.

An analysis by the CPA of the proposed measure revealed the Committee Substitute version of House Bill 12-250 would prohibit any 85-foot boat from mooring, loading or unloading passengers, as well as rent slips operated by the ports authority.

The legislation, which passed the House of Representatives on Tuesday, calls for the termination of all existing leases on Charlie Dock, Echo Dock and the Seaplane Ramp 90 days after it is signed into law.

CPA can only carry out slip rentals on a temporary basis and are limited to dry-docking or boat-repair activities on these docks while the legislation completely spared Delta Dock from any of its provisions.

If this is the case, the ports authority would be forced to terminate its lease agreements with Tinian Shipping, Pacific Development Inc., Islands Cruise Lines, Pacific Subsea, JM and Associates, and other tenants.

CPA’s review of the legislation also disclosed the absence of a concrete explanation on why passenger embarkation and disembarkation are limited to only the Outer Cove Marina and Smiling Cove Marina.

“If passenger safety is the underlying consideration, there is no question that Charlie Dock is much safer to pick up passengers from than the Outer Cove Marina,” the document reads.

It is also not clear why Delta Dock is being exempted from the several CPA-operated docks that are prohibited by the proposed legislation from being used for passenger loading and unloading, it added.

The document, underscoring the fact that the Committee Report is deficient in many respects, also suggested that CPA should make its views known to the Legislature.

“It failed to address why the Commonwealth Government believes that acquiring the MRC debt obligations would further the best interest of the public. It failed to adequately address the numerous complaints made by commercial boat operators that Outer Cove Marina is unsafe, particularly during inclement weather,” it said.

CPA has consistently opposed the passage of the legislation since it is anticipated to suffer substantial financial losses House Bill 12-250 is passed on its present form.

CPA wants the proposed legislation be drafted in a way where the Saipan harbor, the Seaplane Ramp, the Echo Dock and the Sugar Dock will be included within the exclusive sites where passengers may embark and disembark.

The revenue generated from the existing tour boat operators at CPA facilities represents about 19 percent of the total seaport revenues. The ports authority will not be able to meet the required debt service coverage on the $33 million bond without the fees collected from harbor operations.

“In addition, without the passenger fee, CPA would have to increase wharfage fees on both inbound and outbound cargo to cover operational expenses, an increase which would directly drive up prices of goods shipped into the CNMI,” said Board Chair Roman S. Palacios.

Earlier, boat owners have expressed opposition to the proposed legislation citing adverse impacts it may have on the tourism industry as well as potential traffic congestion both in land and in the lagoon.