The Virginian-Pilot
©
PORTSMOUTH
A planned purchase of the Ocean Marine Yacht Center has fallen through, the former suitor said Friday.
John S. Johnson said his investment group could not obtain the final $10 million to purchase the 19.5-acre mega-yacht repair center and 122-slip marina from Norfolk ship repairer Marine Hydraulics International Inc., known as MHI.
"We've made every effort we possibly could to try to find the money," said Johnson, chief executive of James River Ventures, an investment consortium formed for the acquisition. "Our funding efforts have come up dry in this investment climate that we're all going through."
Johnson would not disclose the proposed purchase price. Shortly after Ocean Marine opened about seven years ago, MHI officials said it cost about $23.5 million to build.
The sale, announced as a done deal in October, was to bring big changes to the facility, situated along the Portsmouth waterfront just south of City Hall. James River Ventures planned to spend $1 million on a riverfront welcome center, a new ship's store and landscaping. It also
had visions of tripling the facility's annual revenue to $30 million within three years by attracting luxury yacht owners from as far away as Europe.
The group had established an agreement with Colonna Yachts, a division of Norfolk ship repairer Colonna's Shipyard. The aim was to expand the reach of both companies in the mega-yacht service market.
MHI had first set a Dec. 31 deadline to complete the purchase, a date that was later extended to April 15, Johnson said Friday. James River Ventures' last chance at getting the $10 million was through a New England shipyard operator that visited Ocean Marine last week. The company, which Johnson would not name, told him Monday that it would not be investing in the project.
It would not be fair to MHI to ask for any more extensions, said Johnson, also the chief executive of Thames River Properties, a real estate company in New London, Conn.
Jim Bento, president of the Ocean Marine subsidiary, would not comment on Johnson's remarks. Asked if Ocean Marine was still for sale, he said the operation never was marketed. Rather, he said, Johnson approached the business wanting to buy it. The facility remains operating, he said.
Gary Brandt, Marine Hydraulics' president and chief executive officer, did not return calls on Friday.
Gregory Richards, (757) 446-2599, gregory.richards@pilotonline.com
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too bad...
Would've been really cool to see the welcome center and the addtional landscaping added. Waht it really needs is a "Shooters" or some other waterfront establishment to steal the sport boat traffic revenue from Waterside.
Next thing ya know
The next thing the City Council will do (if not done already) is to levy personal property tax on boats. THAT will drive boat owners to moor thier boats elsewhere - a PP tax free locality - like FLA in the winter. Thus reducing dollars spent in our local cities.
Vote them ALL out. Vote in people that want to do the right thing for "we the people" instead of what is good the city council members.
VOTE EM OUT!!!!!!!
This is Typical....
If Portsmouth City government was truely competent, they would have been supporting their local "Chamber of Commerce" to resolve these kinds of economic development situations by ensuring enough capital was available to make these kinds of potential investment-employment situations happen. Instead, YOUR city government decides to raise US$10million+ to renovate a Holiday Inn hotel that will generate little income-employment for local residents. Making matters worse, you have a Mayor and City Council members relying on residents to spend their US$600-1200 federal rebate checks at your local Walmart.
More reasons why Portsmouth residents should start voting out all city INCUMBENTS from public office this May. VOTE FOR LOCAL CHANGE! Thank you.
it's over
behind that tent they put up downtown. It's a nice place, to good for P-town
where
where is this marina exactly??