The conservancy that
oversees a storied but aging ocean liner and its landlord have resolved a
years-old rent dispute that will clear the way for a Florida county
to turn the historic ship into the world’s largest artificial reef.
A federal judge had ruled in June that the SS United States
Conservancy had until 12 September to present plans to move the ship, a
1,000-foot ocean liner that still holds the transatlantic speed record it set
more than 70 years ago. That
deadline, though, came and went after the conservancy filed a lawsuit that
accused Penn Warehousing of sabotaging its efforts to sell the vessel.
The conservancy had
reached a tentative agreement earlier this month with Okaloosa County on
Florida’s coastal Panhandle, a deal that was contingent upon the rent dispute
being settled through court-imposed mediation. The deal resolving that dispute
was announced Friday.
Conservancy and county
officials gathered Saturday 12 Oct at
the Philadelphia pier
where the ship is berthed for a small transfer of title ceremony, although the deal with Okaloosa County still needs
final approval from a federal judge, the Philadelphia Inquirer reported
Okaloosa officials plan to sink the ship and create
what supporters hope will be a barnacle-encrusted star in the county’s
constellation of more than 500 artificial reefs, making it a signature diving
attraction that could generate millions of dollars a year in local tourism
spending for scuba shops, charter fishing boats and hotels.
“We can tell you that you will not be lost, you
will not be forgotten, you will no longer be neglected and abused,” conservancy
board member Thomas Watkins said in a farewell to the ship. “You will be
rightly honored, cherished, and loved in a new home and in a new dimension. You
will no longer be sailing the seas, but you will be surrounded and caressed by
them.”
Officials have said the deal to buy the ship could
cost more than $10 million. The lengthy process of cleaning, transporting and
sinking the vessel is expected to take at least 1.5 years.
The rent dispute
stemmed from an August 2021 decision by Penn Warehousing to double the ship’s
daily dockage to $1,700, an increase the conservancy refused to accept. The
firm had said through its attorneys that it wants to regain access to the berth
so it can replace the ship with a commercial customer that will provide jobs
and tax revenues to the city.
When the
conservancy continued to pay its previous rate, set in 2011, Penn Warehousing
terminated the lease in March 2022.
After much legal wrangling, U.S. District Judge Anita B. Brody held a bench
trial in January but also encouraged the two sides to reach a settlement
instead of leaving it up to her.
She ultimately
ruled that the conservancy’s failure to pay the new rate did not amount to a
contract breach or entitle Penn Warehousing to damages. However, she found that under Pennsylvania contract law, the berthing agreement is terminable at will with
reasonable notice.