Here is a first. Joe Weatherby has no comment
Judge orders 'Vandenberg' to be auctioned to pay unpaid bills
Federal jurist sides with shipyard, contractors on Reefmakers' $1.6 million debt
By SEAN KINNEY
skinney@keynoter.com
Posted - Saturday, November 08, 2008 07:01 AM EST
Plans to sink the USS Hoyt Vandenberg as an artificial reef off Key West appear to be capsizing.
On Oct. 27 in Norfolk, Va., U.S. District Court Judge Mark Davis ordered the 520-foot former military vessel to be auctioned in late December to recoup the $1,639,457.97 owed to Colonna's Shipyard and various subcontractors for cleaning and storing the ship.
The city of Key West owns the Vandenberg. The city contracted with Artificial Reefs of the Keys to transform the vessel into an artificial reef to be sunk seven miles off Key West. Artificial Reefs, in turn, contracted with Reefmakers LLC to get the ship cleaned.
Colonna's, W3 Shipyards, Venture Dynamics Enterprises and Canadian Artificial Reef Consultants are suing the New Jersey-based Reefmakers to get the money Davis has ruled they're owed.
Joe Weatherby, a Key West-based employee of Reefmakers, had nothing to say about the auction. He said only, "You can call Bill."
He was referring to City Commissioner Bill Verge, who is the city's point man on the project.
Verge, who has championed the Vandenberg scuttling, said a bank consortium led by BB&T that includes Orion and First State banks has already paid out $3.2 million of a pledged $4.6 million to have the vessel towed from the James River in Virginia, cleaned of contaminants and readied for scuttling.
When the banks cut funding at $3.2 million, the project stalled. "They pulled the plugs," Verge said.
BB&T officials did not return calls for comment. Don Lanman, a vice president at First State, said, "We're not allowed by contract [to enumerate financing] because we're not the lead lender."
Key West officials are awaiting word from Gov. Charlie Crist's office about whether $1.6 million from the Florida Office of Tourism and Economic Development will come through to pay off the lien.
"Nothing's come to conclusion yet," Crist spokesman Sterling Ivey said. "We don't have a definitive timeline on when funds will be released. It's a shame and we're trying to get resources before the auction."
"The hope right now is the governor allocates the money," said Key West City Attorney Shawn Smith, who was in Norfolk last week participating in arbitration that led to the court-ordered auction.
Smith also said the city is awaiting word from Crist's office before accepting another $1 million for the project to be channeled through the state Florida Fish and Wildlife Conservation Commission: "We have not accepted that money. It's there for us. We want to make sure that the funds from the state are adequate."
One of the city's arguments in the Colonna's lawsuit is that the Vandenberg isn't a ship because it can't operate under its own means. The judge, Davis, disagreed when the city brought that up in discussing maritime law.
He wrote that "a vessel is defined as any watercraft practically capable of transportation of goods or persons on water. The fact that a barge, dredge or damaged vessel cannot operate under its own power and must be towed does not make such watercraft any less of a vessel for jurisdictional purposes, as it still may be used to transport goods or persons on water under tow."
Even Verge seemed to concede that point.
"It's sitting up there and ready to go," Verge said.
To get the ship down to Key West -- if it's not bought at auction -- a towboat hookup needs to be installed, a tugboat hired to pull the ship and an explosives team hired to plant and detonate charges; those steps hinge on the release of the state tourism money, Verge said.
"If it all fails and it went to sale for scrap, the city wouldn't be out any money, the county wouldn't be out any money and the TDC wouldn't be out any money," Verge said.
But apparently the banks would.