From the Key West Key Noter
Vandenberg' plans in disarray
By Sam Nissen
snissen@keynoter.com
Posted-Friday, April 4, 2008 10:01 PM EDT
Big shortfall puts scuttling into question
The USS Hoyt Vandenberg is making more waves without moving an inch.
While work to prepare the ship for its final mission as an artificial reef off Key West is proceeding, cost concerns have nearly sunk the project.
The project is 40 percent over 2006 cost estimates and time is running out to secure the added money, according to a project budget.
The new estimate of $8.45 million is 3.9 times more than the original estimate calculated in 2001, according to Monroe County Tourist Development Council records. Jeff Dey, whose company, Resource Control Corp., is part of the team scuttling the ship, filed that estimate - $2.18 million.
As the deadlines loom, BB&T Bank is considering pulling loans for the project, Key West City Commissioner Bill Verge said.
He said banks should see through their commitment, but that BB&T has reason to raise questions.
The bank and city became aware of millions of dollars in additional costs when the project manager, Reef Makers, used up bank allocations.
Verge described mounting costs as legitimate, and said they stem from various environmental concerns and unforeseeable variables such as the steep rise in gas prices the past few years. But, he added, Reef Makers should have warned the various governmental agencies involved in the scuttling for the 520-foot former military ship of the rising expenses.
Most of the unforeseen costs are in the removal and disposal of PCB-laced wiring, said Joe Weatherby, marketing director for Reef Makers. PCB is a toxic pollutant banned in 1979.
John McMahon, manager of the Key West branch of BB&T, said it is against company policy to comment on its relationship with clients.
Any pulled funding would add to the project's current $2.4 million shortfall. About $1 million of that is working its way through a legislative committee. Key West Mayor Morgan McPherson said he thinks the state's Office of Tourism, Trade and Economic Development can fund the rest.
This is going to be one of the most different summers ever, he said.
Asked if the TDC should pay more than the $1 million it already committed, he said: I'd love to see the TDC come out with something, but that would have to be an action that board would have to address.
At this point, the executive director, Harold Wheeler, has taken a pretty staunch position against extra monies being used. He hasn't been helpful up into this point, and I don't expect him to be helpful about it in the future, he said.
Placing explosives on the ship to sink it will take a month, Verge said. To make the U.S. Coast Guard deadline of June 1, brought about by the beginning of hurricane season, the ship must be in place by the end of April.
If the ship is sunk, benefits to the Keys are disputed.
The National Oceanic and Atmospheric Administration contends the ship will increase diving 10 percent in the county, according to a report authored by Bob Leeworthy, chief economist for that agency. Added visitors will spend an extra $7.5 million each year since divers spend on lodging and other tourism businesses, the report says.
Wheeler said he thinks the impact could hurt the Upper Keys, where diving is a big attraction, or dissipate quickly.
I believe if the ship goes down that it will have a very positive effect for at least a short period of time, he said. The question is after a about a year and a half or two years, what economic impact is it going to have in Key West?
Said Weatherby, This is the right thing for our economy and our environment, but I recognize that people feel differently.