The stubborn cloud of stalemate has yet to lift from Portland’s waterfront. Two companies — Olympia Cos. of Portland and Ocean Properties of Portsmouth, N.H. — continue to bid for the Maine State Pier project, and in a surprise move in mid-October both were asked to quickly come up with “options” that would build a cruise ship “mega berth,” yet to be built for lack of funds. On Oct. 15, the Portland City Council couldn’t make a decision for lack of quorum (one councilor recused himself due to conflict of interest, another was home for medical reasons). The Nov. 6 council election might shuffle the deck, but the current prediction is that Olympia has won the hearts and minds of a majority.
For the council to not come to a conclusive vote after almost two years was stunning.
What remains are irrefutable financial facts. The seven-acre Maine State Pier site, owned by the city, desperately needs $17 million to shore up pilings, according to Councilor Jim Cloutier. The City of Portland needs $6 to $12 million to complete the mega berth. One developer, Ocean Properties, offers to hold $100 million in escrow to guarantee completion of the project. “We have cash,” says Bob Baldacci, Ocean Properties’ vice president. Olympia Cos. offers two “letters of interest” from TD Banknorth and Bank of America that were written several months ago, according to Sasa Cook, Olympia Cos.’ project manager.
“Clearly, one of the parties is subject to financing and there is no guarantee that the city will benefit if the financing falls through — that is a major objection to Olympia’s proposal,” says Councilman Jim Cloutier. “The other major objection to Olympia’s proposal relates to their marine use plans — the DEP [Maine Department of Environmental Protection] has said they would not approve the project as proposed because, for example, their hotel plan would require they fill an acre of the ocean bottom.
“And,” adds Cloutier, who anticipates losing his council seat in the upcoming election, “Olympia proposes general retail use in an area which is restricted to marine only uses.”
Ferries and Financial Facts
Olympia Cos., with no prior experience either building or managing a large cruise-ship berth, speaks disdainfully of Ocean Properties’ proposal to put two acres of blacktop near the city-owned Ocean Gateway — a configuration Ocean Properties regards as an essential part of a fixed “mega berth” operation. If more people are sailing on mega-cruise ships and Portland wants their business, Ocean Properties reasons, they need a place for them to dock.
“Does the city really want a mega berth facility?” ponders Cook of Olympia Cos. “Wouldn’t you rather have a waterfront park there?”
When asked what would sit on this theoretical park, Cook demurs over specifics. “We’re simply presenting options that we’ve heard as visions of the citizens.” Of course, citizens could want a working waterfront without the cruise ship business.
But cruise ships sail in with tourist dollars itching to be spent. No blacktop, no tour buses, notes Jeff Monroe, Portland’s head of ports and transportation. Ocean Properties, which proposes a fixed mega berth, has a track record in building and operating mega berths in Key West. It tried a floating berth (Olympia is proposing one for Portland), and after expensive crash-and-flood damage, laid out double the money to build a fixed mega berth. Furthermore, without a fixed berth, Ocean Properties’ Bob Baldacci argues that fuel and grocery deliveries would be impossible, not to mention ambulance service. “On these ships you have three-to-four thousand people over 55, and in Key West the ships need at least one ambulance a day,” he declares.
Another financial fact: The City currently collects about $70,000 annually in fees from Bay Ferries, the company that runs The Cat. “Olympia’s plan would be fatal to the long-term plans of Bay Ferries,” asserts Baldacci, who has been negotiating with Mark McDonald, president of the Canadian company, on a collaborative plan that would be linked to the schedule for his proposed 400-passenger coastal ferry operation with the future operations of The Cat.
Cook, speaking for Olympia, asks if this international ferry really needs a dedicated queue. “They come three days a week, four-to-five months a year — does that promote good value for the citizens?” Cook asks.