House okays takeover of Outer Cove Marina

In a step to resolve the long-standing dispute on Outer Cove Marina, the House of Representatives yesterday passed legislation seeking takeover of its operations by the government and bail out for the financially-troubled Marine Revitalization Corp.

Passed by 14 members present with one abstention, the measure is the first concrete action taken by the government since the controversy surrounding the marina erupted nearly three years ago.

MRC president Anthony Pellegrino and some boat owners were present during the voting in an apparent attempt to lobby at the last minute for their causes. The two sides have been at odds over the operations of the marina since early 1998.

Rep. Rosiky F. Camacho, chair of the House transportation committee, said the measure would help “calm the tempest” brought about by the dispute.

If it becomes law, it will terminate the 15-year lease forged between MRC and the government, transfer its management to the Division of Fish and Wildlife, and regulate boat traffic in the Saipan lagoon.

HB 12-250, sponsored by Rep. Bobby T. DeLeon Guerrero, will also bail out MRC from its financial woes by acquiring the marina and paying its $3.5 million debt incurred from its construction.

An advisory board comprised of various government agencies and private sector groups shall also be established to assist the fish and wildlife division in the development of a marina management plan, including fee schedule and regulations.

A “Marina Fund” from income generated from the $2.50 departure fees imposed on passengers going to Managaha Island will be used to pay off the debt, according to the bill.

Slip rental fees and other income, on the other hand, will take care of the day-to-day operations of both the Outer Cove and Smiling Cove marinas, it added.

To regulate boat traffic, the legislation will prohibit use of other docking facilities being maintained by the Commonwealth Ports Authority, such as Charlie and Echo docks as well as the Sea Plane Ramp, by vessels less than 85 feet in length.

This will also address what lawmakers claimed as “inequity” issue in the controversy since CPA has cut down its slip rental fees to accommodate commercial boat operators who left Outer Cove Marina early this year.

These docks are undeveloped and in a “poor state of repair” and should be restricted from use by tourists, according to Mr. Camacho.

The final draft of HB 12-250 is different from the original proposal that had sought only to regulate the boat traffic by disallowing vessels, including jetskis, to dock in other facilities but the Outer Cove.

Public hearings conducted on the bill provided input to the House committee to craft a new proposal in order to address the concerns of MRC, the boat owners and the government.

It now heads to the Senate for action where its Committee on Resources, Economic Development and Programs will also release its findings of its investigation into the controversy.