Senate’s backing sought to bail out Outer Cove

The House Transportation Committee chair urged the Senate yesterday to approve the proposed takeover and bailout by the government of the Outer Cove Marina, saying this is the “best and only” solution to the controversy surrounding its operations.

Rep. Rosiky F. Camacho said, however, if others can come up with ways to resolve the issue, he’s willing to reconsider the legislation to reach a compromise.

“This is the best and only solution that we can come up with right now unless they have other solution that the committee needs to know,” he told in an interview.

The lower house cleared this week HB 12-250, otherwise known as the “Saipan Marina Act,” and is now up for Senate voting.

The Senate Committee on Resources, Economic, Development and Programs, which conducted a series of public hearings last September on the long-standing dispute, is expected to release its findings.

But the House proposal is the first concrete action taken by the CNMI government to address the squabble between Marine Revitalization Corp. on one side and boat owners as well as tour operators on the other side.

If it becomes law, it will allow the government, through the Division of Fish and Wildlife, to take over the marina’s operations, while bailing out the financially-troubled MRC for paying the $3.5 million cost it had incurred for its construction.

According to Mr. Camacho, the two schemes are necessary to ensure that tourists taking boat rides to Managaha island or around the Saipan lagoon use only first-class facilities to embark and disembark.

Outer Cove and Smiling Cove marinas are two of the best docking facilities on the island, although the latter is only restricted for use by pleasure boat owners.

Because of the dispute over fees and safety of Outer Cove, many tour operators have transferred to the facilities of the Commonwealth Ports Authority, such as the Charlie and Echo Docks as well as the Sea Plane Ramp, that Mr. Camacho maintained are not safe.

“Tour operators don’t want to pay high fees, but they want to make more money off the tourists in those third-class facilities,” he said.

While MRC has claimed pumping $3.5 million for the construction of Outer Cove, the Saipan lawmaker said the bailout amount could be less than the amount.

He added portion of the loan the government will take from the Marianas Public Land Trust to pay off the debt can be used instead for further improvement in the marina.

“There will be enough money to operate the marina if the boat owners will go back, use the facilities and pay the fees,” explained Mr. Camacho. “The government can’t always subsidize their business operations.”

MRC, a non-profit corporation, forged an agreement for a 15-year lease with the Department of Lands and Natural Resources and the U.S. National Parks Service during the previous administration to build and operate the marina.

The lease covers 16,394 square meters of submerged lands with the marina initially estimated to cost $1.2 million. But the project ballooned to $3.6 million which MRC is now trying to recover through rate and fee increases.

Boat owners and tour operators have opposed the hikes due to the slowdown in the tourism economy and have repeatedly asked intervention by the CNMI government. MRC President Anthony Pellegrino have refused to give in to the demand.