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Not sure where this goes but this should bring this tale to a end. Norfolk shipyard out $1.1 million after failed reef case
By Tim McGlone
The Virginian-Pilot
© July 7, 2011
NORFOLK
Colonna's Shipyard is out more than $1 million after a federal judge ruled
that the company isn't entitled to payment from Key West for work done on a
ship sunk to make an artificial reef off the Florida barrier island city.
Colonna's had received about $1 million for work on the Gen. Hoyt S.
Vandenberg but was denied an additional $1.1 million it says it was owed.
The 527-foot Vandenberg, a one-time James River Reserve Fleet - or "ghost
fleet" - ship, was purchased by Key West several years ago. The city hired a
contractor, Artificial Reefs of the Keys, or ARK, to get the ship ready for
sinking.
ARK subsequently hired a subcontractor, Reefmakers, which in turn hired
Colonna's to rid the ship of oil, asbestos and other toxic wastes so the
vessel could be sunk as a tourist attraction seven miles off the Key West
coast.
Colonna's completed the work on the Vandenberg, but Reefmakers failed to
complete payments to the Norfolk shipyard. Colonna's sued the company in
2008, forcing a sale of the ship on the courthouse steps. Colonna's said it
was owed $1.7 million.
A Florida bank won the bidding at $1.3 million and turned over the ship to
Key West. The Vandenberg has since been sunk as an attraction for divers and
anglers.
But Colonna's received only about $600,000 after other Reefmakers creditors
were paid. Colonna's also got about $300,000 from the U.S. Marshals Service
for keeping the vessel in storage and maintaining it during the initial
federal action.
The shipyard then sued Key West for the remaining $1.1 million, claiming the
city was reaping the benefits of the newly sunk reef. The company also
relied on statements made by a Key West commissioner who made assurances
that the shipyard would be paid.
The total cost of the project was around $8.6 million. Despite additional
millions from Florida to complete the project, Colonna's still wasn't paid.
U.S. District Judge Mark S. Davis, in a ruling made public Tuesday, said he
felt for the company but legally could not rule in its favor, in part
because the shipyard had already been paid after the auction of the vessel.
"The court is not without sympathy for the position in which Colonna's finds
itself," he wrote.
He said the company and Key West made good-faith efforts to settle the
matter.
"However, such good-faith efforts do not always result in entitlement to a
legal recovery," Davis said. "Such is the case here. There is no question
that Colonna's was treated shabbily in this deal."
Tim McGlone, (757) 446-2343, tim.mcglone@pilotonline.com
By Tim McGlone
The Virginian-Pilot
© July 7, 2011
NORFOLK
Colonna's Shipyard is out more than $1 million after a federal judge ruled
that the company isn't entitled to payment from Key West for work done on a
ship sunk to make an artificial reef off the Florida barrier island city.
Colonna's had received about $1 million for work on the Gen. Hoyt S.
Vandenberg but was denied an additional $1.1 million it says it was owed.
The 527-foot Vandenberg, a one-time James River Reserve Fleet - or "ghost
fleet" - ship, was purchased by Key West several years ago. The city hired a
contractor, Artificial Reefs of the Keys, or ARK, to get the ship ready for
sinking.
ARK subsequently hired a subcontractor, Reefmakers, which in turn hired
Colonna's to rid the ship of oil, asbestos and other toxic wastes so the
vessel could be sunk as a tourist attraction seven miles off the Key West
coast.
Colonna's completed the work on the Vandenberg, but Reefmakers failed to
complete payments to the Norfolk shipyard. Colonna's sued the company in
2008, forcing a sale of the ship on the courthouse steps. Colonna's said it
was owed $1.7 million.
A Florida bank won the bidding at $1.3 million and turned over the ship to
Key West. The Vandenberg has since been sunk as an attraction for divers and
anglers.
But Colonna's received only about $600,000 after other Reefmakers creditors
were paid. Colonna's also got about $300,000 from the U.S. Marshals Service
for keeping the vessel in storage and maintaining it during the initial
federal action.
The shipyard then sued Key West for the remaining $1.1 million, claiming the
city was reaping the benefits of the newly sunk reef. The company also
relied on statements made by a Key West commissioner who made assurances
that the shipyard would be paid.
The total cost of the project was around $8.6 million. Despite additional
millions from Florida to complete the project, Colonna's still wasn't paid.
U.S. District Judge Mark S. Davis, in a ruling made public Tuesday, said he
felt for the company but legally could not rule in its favor, in part
because the shipyard had already been paid after the auction of the vessel.
"The court is not without sympathy for the position in which Colonna's finds
itself," he wrote.
He said the company and Key West made good-faith efforts to settle the
matter.
"However, such good-faith efforts do not always result in entitlement to a
legal recovery," Davis said. "Such is the case here. There is no question
that Colonna's was treated shabbily in this deal."
Tim McGlone, (757) 446-2343, tim.mcglone@pilotonline.com
