Ferry owners sue Bald Head Island government

First, Limited wants the court to declare that the village’s 1999 right of first refusal agreement for purchase of the ferry system is not effective, in part because that document was never approved by the state Utilities Commission.

Second, Limited wants the court to declare that the village has forfeited any rights it might have had under the right of first refusal. In seeking to acquire the ferry system for itself, the village failed to act within the 60-day window specified in the right of first refusal, the lawsuit claims.

Third, Limited wants the court to “award plaintiffs such other and further relief as the court deems just and proper.”

The village’s actions are precluding the potential buyer from obtaining title insurance, which is required, Limited stated. A draft agreement ratifying termination of the right of first refusal offer is included in the 59-page filing.

Village spokeswoman Carin Faulkner said on Tuesday, January 24, it wasn’t known when the village would file a response.

“The village will review the declaratory judgment claim and timely respond,” Faulkner said in a prepared statement.

Limited announced five years ago the ferries were for sale as part of the settlement of the estate of the late developer George Mitchell. The Bald Head Island Transportation Authority was established by state law to buy and run the system. The commission’s offer to buy the system for $47.7-million never received a final decision from state officials and was opposed by the village government. Village voters, meanwhile, approved issuance of up to $54-million in bonds for the village to buy the system.

Last year, Limited stated it had reached a deal with private investment company SharpVue to pay $56-million for the system, plus another $11.4-million for land located at Deep Point Marina and on the island. The village has objected at every juncture.

State authority status

“We’re still in a waiting pattern,” said Susan Rabon, a Southport attorney and chair of the Authority. “The frustrating thing to me is that we’re going into the sixth year of this … there are so many things, improvement to the system, good things, that could have happened. Instead, we’re caught in a turf battle.”

In a related matter, the Utilities Commission has delayed a decision on whether to approve a transfer of certification of the system from Limited to SharpVue. A certificate is required when a public utility changes owners.

Now, the Commission has scheduled a hearing with expert witnesses at 2 p.m. on March 7. The deadline for interested persons to intervene is February 15.