CPA not jumping on marina contract
The Commonwealth Ports Authority will review the proposal of Marine Revitalization Corp. to take over operations of the Outer Cove Marina, said Carlos H. Salas, executive director.
With the financial crisis besetting the agency, Salas said the ports authority is not too keen on jumping at the offer immediately as it would have to look into the financial and legal implications of assuming the more than $4 million loan of MRC used to finance the construction of the marina.
“We want to know first the kind of liabilities that we would have to assume although assuming the marina’s management would enhance the areas where we can operate,” he said.
Since the land where the Outer Cover Marina was established is owned by the Department of Lands and Natural Resources, 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 turnover to the ports authority.
MRC has 11 years left of the 15-year land lease agreement with DLNR. 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 more than $4 million loan. It has to pay the bank some $30,000 to $35,000 every month.
The establishment of the controversial Outer Cover Marina was handled by MRC, a non-profit organization which aimed to convert the area into one of the world’s most beautiful marina.
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.
