Previous Story
CPA weighs takover of Outer Cove Marina
|
Posted on May 25 1999
The Commonwealth Ports Authority board has directed its legal counsel and financial consultant to study the offer of Marine Revitalization Corp. to takeover the operations of the controversial Outer Cove Marina.
This will allow the management and board members to make a decision on whether or not the project would help the ports authority in generating the much-needed revenue.
Some $4 million was spent by the MRC in establishing the marina which has become the subject of a dispute among boat owners who have criticized the safety issue.
Since the land where the Outer Cover Marina was established is owned by the Board of Public Lands, the ports authority would have to study the legal effects of assuming the land lease. A new law would have to be passed if land ownership would be turned over to the ports authority.
MRC still has 11 years left of its 15-year land lease agreement with BPL. Since the property would be turned over to the government after the lease agreement ends, MRC president Tony Pellegrino said it might be better if a government agency like the ports authority would assume operation this early.
MRC could barely earn enough funds from the $4 passenger fee to repay the $4 million loan. It has to pay the bank some $30,000 to $35,000 every month.
Pellegrino clarified that MRC is not desperately looking for an agency that is willing to assume operations immediately saying it will continue managing the marina if no government or private agency would takeover.
