Gov’t. weighs Outer Cove Marina takeover

The controversy over the Outer Cove Marina may soon come to an end as the government is expected to decide in two weeks whether it has a stake in its operation in partnership with the Marine Revitalization Corporation.

Gov. Pedro P. Tenorio pledged to come up with the decision after meeting yesterday with MRC President Anthony Pellegrino and other government officials in an effort to resolve the long-standing dispute that has heightened in recent weeks.

Mr. Pellegrino described his audience with the governor as his “last resort” following what appeared to be irreconcilable differences with boat owners and tour operators who use the Outer Cove.

“I trust that the governor will make a decision whether MRC is a partnership with the government or a private corporation without government relationship whatsoever,” he said in an interview after the meeting at the Capitol Hill.

He stressed he is optimistic of finally reaching a settlement on the squabble. “I’m not asking for favor. I’m just asking for fair evaluation. If I’m a partner of the government, let me know,” added Mr. Pellegrino.

The Attorney General’s Office is expected to issue the decision within the next two weeks, according to Lands and Natural Resources Sec. Joaquin A. Tenorio who was part of the one-hour discussion.

He also expressed hope of a resolution to the problem, although he is not ruling out the possibility of the government taking over management of the marina as proposed by Mr. Pellegrino.

“[Takeover] is still very unclear. I don’t think we should go into that yet because the governor’s finance advisor is looking into that,” Mr. Tenorio told reporters in a separate interview. “It may be a possible solution.”

MRC, a non-profit corporation, entered into an agreement with the Department of Lands and Natural Resources during the previous administration, and the U.S. National Parks Service to build and operate the marina where it was granted a 15-year lease on some 16,394 square meters of submerged land.

Under the partnership agreement, both the local and federal governments will assist in ensuring the smooth operation of MRC — a deal that Mr. Pellegrino has claimed the CNMI broke.

Partners

Noting the documents he signed with DLNR, the MRC president has reason to believe that it is a partnership agreement, although that determination will still be up to the Tenorio administration.

“The partnership that Mr. Pellegrino always mentions is the fact that part of the marina is actually going to be a government facility,” Mr. Tenorio explained.

“The lease is for the submerged lands and that’s where the CNMI government has jurisdiction… The ramp is the park’s jurisdiction,” added the DLNR chief.

Boat owners and tour operators using Outer Cove have been asking assistance from the Legislature and the administration since early 1999 when the dispute was first raised over fees and safety of the marina.

MRC, which invested $4.1 million into its construction, has argued that it may eventually go bankrupt with the failure by the CNMI government to comply with the agreement to make sure that users are fully paying their fees.

Last month, busloads of Japanese tourists on a day-trip to Managaha island were stranded after Mr. Pellegrino blocked access to the marina because of refusal by Tasi Tours to pay higher departure fees.

To help resolve the problem, the Commonwealth Ports Authority eventually agreed to lower its fee to $2.25 per passenger at its facility at the Charlie Dock as an incentive to tour operators, including Tasi Tours and Sea Ventures owned by Mr. Pellegrino.

But Mr. Pellegrino slammed the CPA’s move during his meeting with the governor, saying that his company and even Tinian Shipping had been knocking on ports authority’s door to reduce its fees for the past few years and yet it was only decided when Tasi came into the picture.

“I find it very unfair,” he said.