Page
Fifty-Six
12
JANUARY 2006
Adventures in Idiocy.
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43º | Hi 59º /
Lo 38º |
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Do we owe Toronto $250,000 annually for 14 years?
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JAMIE
GERMANO staff photographer
The demise of the
ferry, at the Port of Rochester, will be a hardship for
businesses in the terminal, but city officials say they are
committed to waterfront development. |
(January 11, 2006) — Rochester City
Council members and former City Hall officials maintain that a 14-year
contract requiring a payment of at least $250,000 annually to the Toronto
Port Authority was simply the cost of doing business.
But Mayor Robert Duffy saw that expense
as another financial burden proving that the city was paying too big a
price for the high-speed ferry while receiving too little in return.
"We are paying Toronto to receive a
tremendous economic benefit," Duffy said about the contract, which he
highlighted in his announcement Tuesday that he will pull the plug on the
high-speed ferry.
The actual contract approached costs of
about $500,000 a year, because it also included a $1 surcharge per
passenger and $3 charge per vehicle, Duffy said.
Linda Kingsley, the city's corporation
counsel under former Mayor William A. Johnson Jr., said it "was widely
known" that the city had to pay Toronto for use of the port. She said
Johnson had talked publicly about the fee.
But Duffy and his corporation counsel,
Thomas Richards, contend that the contract was news to the incoming
administration.
"We're paying the whole ticket and most of the benefit is going to other
places," Richards said. "With all due respect, Rochester is not in the
position to subsidize Toronto's tourist trade."
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Rochester Ferry Co. (2005)
Benjamin Douglas, president.
Charles C. Barrentine, vice
president.
Karen Noble Hanson, secretary.
William J. Ansbrow, treasurer.
Managers: Edward J. Doherty,
Wade Norwood, Gladys Santiago, Loretta Scott, Linda Stango.
Ex Officio: Lois Giess, William
A. Johnson Jr.
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City Councilman Benjamin Douglas, the
ferry board president, said he disagrees that the costs served as a
subsidy for Toronto tourism.
"I would look at it with a broader viewpoint, as the cost of operations,"
he said.
Several City Council members who also
served during the Johnson administration said they were aware of the
contract.
"That wasn't hidden information," said City Councilman Adam McFadden.
"That was known information. Whether or not people agree with it, that's a
whole different question."
The most pressing question for the
current administration is this: Can the contract be broken, or will the
city be forced to make payments even after the demise of the high-speed
ferry?
Kingsley said the contract,
as she
recalls, would be broken if the Rochester Ferry Co. dissolved. That way,
she said, the city would not be liable for further payments in future
years.
Richards said Tuesday that he is still
reviewing the contract — which was signed by then-Mayor Johnson in late
2004 or early 2005 — to determine the impact.
"We may have to negotiate a resolution
with (the Toronto Port Authority)," he said.
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2006 board
Norwood, Doherty, Scott, Stango and
Johnson are replaced by Dana Miller, Paul Holaham, Patty Malgieri,
Gary Walker and Robert Duffy.
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City Council President Lois Giess said
the previous ferry owners, Canadian American Transportation Systems, also
had a similar contract with the Toronto Port Authority that was even more
costly.
The Rochester ferry board had a similar
contract requiring a $150,000 annual payment to dock at the Port of
Rochester, Richards said. That cost was supposed to be paid to the city
under the contract, he said.
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What's at stake
The high-speed ferry was envisioned
as an economic development tool, particularly for Charlotte. While
ending service brings spiraling debt under control, the city now
must figure out how to repay bills of the past year.
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The costs were not paid, he said.
GCRAIG@DemocratandChronicle.com
BDSHARP@DemocratandChronicle.com
Includes reporting by staff writers Joseph Spector and Steve Orr.
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Related articles:
On the Web:
What is a public authority?
Public authorities, like Rochester
Ferry Co., were created to finance, construct or operate
revenue-producing facilities for the public benefit. There are
more than 730 public authorities in New York.
Public authorities have the power to levy user fees and charges,
but not taxes. Most public authorities have the ability to borrow
funds by issuing debt. They are generally overseen by a board of
directors and managed by a full-time president and staff.
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The contract
In late 2004 or early 2005, the
Rochester Ferry Co. entered into a 14-year contract with the
Toronto Port Authority for docking the high-speed ferry in
Toronto. According to city officials the contract requires:
A payment of $250,000 annually to
the Port Authority.
A payment of $1 per person
traveling into Toronto on the high-speed ferry, a cost tied to
Canadian Customs.
A payment of $3 per vehicle
traveling into Toronto on the ferry, another Customs-related cost.
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Well now. Looks like overconfident arrogance did a
real number on the city's finances.
That supreme unjustified confidence caused the city of
Rochester to lease the ferry terminal to Maplestar -- a CATS offshoot -- for $1
per year for a term of FORTY YEARS. The success of a completely untested
ferry service was simply taken for granted.
Who in their right mind would offer such a
lease? Assuming the ferry would be around for a little of five years was
presumptuous...but FORTY YEARS?? Unreal.
Now we learn the city agreed to sweeten the
pot to the tune of a quarter million a year to the Toronto Port Authority for
FOURTEEN YEARS. Plus a buck a head and $3 a car. If such an
arrangement was proposed by TPA officials, Toronto really needs to think about
keeping THOSE folks around.
Honourable mention:
So much for the cockamamie scheme that was
the Rochester fast ferry – first called "The Spirit of Ontario", then
"The Breeze" and finally "The Cat" – as the city's new Mayor Bob Duffy
rejected an $11.5 million loan to keep the luxurious vessel
afloat. But it's not sailing away without one lingering insult to
taxpayers across the lake – the discovery of
a stealth contract that promised a $250K annual payment to Toronto
Port Authority for the next 14 years, in order to dock a ghost ship.
The ferry cost $42.5 million new in 2003, it was salvaged by the city
for $32 million a year ago, and whatever price they can unload it for
– combined with the operating losses of the
past year – won't pay off the full debt. Despite initial turbulence,
recently retired Mayor William Johnson insisted any further financial
influx was a safe investment, combined with improved pricing and
scheduling, a plan to ship the 774-passenger boat off to warmer climes
during winter months, and marketing slogans for the catamaran better
than "Treat someone to a purrrrfect travel experience."
Rochester can now stop waiting for GTA tourists to arrive at their
sparkling new terminal,
The Native Canadian website can wrap his
unhealthy obsession with the ferry's journey to oblivion,
and we can return to columns in The Buffalo News that
struggle to assert America's
moral superiority over the other side of the lake.
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'Obsession'? Sure, why not? Trust me, I've had
far worse. 'Unhealthy'?
You don't know the half of it. Let's leave it at that.
As for wrapping up this tempest in a teapot... not a
chance. I'll stuff this petulant exercise in governmental waste when
Canadians quit trying to overthrow the government for some $100 million
'scandal'. At a measly $4 a head, Conservative-minded Canadians should
thank their lucky stars for such a bargain.
Try $6 BILLION a MONTH for a so-called 'war', THEN
come crying to me about a government 'scandal'. Or a proposed $51.5
million debt on some superfluous boat for some small burg. THAT would cost
each Rochesterian far more than some 'sponsorship scandal' would cost each
Canadian. Yet Canadians are all hot 'n bothered about 'Liberal corruption'
chewing up their pizza budget? You wanna talk about "unhealthy
obsessions"?
$100 million for a entire COUNTRY? Are
you kidding me?? Two raised glazed and a large double-double amounts to
more than the per capita cost of some of the 'HORRENDOUS' Liberal scandals.
Wimps. Let's talk about some serious money here... not the
equivalent of dinner for four at Denny's.
Toss out the Liberals and vote in Harper's Bizarre; you think
THAT'S going to stop 'scandals'? The only difference will be right-wing
special interest groups get the goods instead of a left-wing special interest
groups. After the economy is slammed into reverse, Canadians will rear up
in feigned indignation and repeat the entire process all over again.
Brian The Hated passes the baton to Kim The Clueless who
makes way for Ti-Jean The Terrible who defers to Paul The Corrupt.
In due time, the next PM will be duly bashed and sent packing even though at the
time of their election, they were the antidote to all that ails Canada.
Bitch, bitch, bitch. Canadians ought to try living on THIS side of the
dotted line to find out they've got a pretty damn good thing going. Tell
you what: Canada can have George Bush if the States can have Paul Martin.
Deal?
Appreciate the mention, Paved. But the
story doesn't end here. More Smug Ones need to be pie'd, the status
quo has got to go and there are a slew of axes which need grinding. What
fun's a website if not to hold up a cyber-mirror to the irritating warts of
life? Sometimes vindication for vindication's sake is reward enough.
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41º | Hi 59º /
Lo 38º |
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Toronto diner owner: 'I'm sad....I saw the
potential'
(January 11, 2006) — The gates to
Toronto's fast ferry terminal were padlocked Wednesday.
The sign said that the ferry was closed for the season but the wording may
be revised, now that Rochester Mayor Robert Duffy has announced that the
problem-plagued ferry service between Rochester and Toronto is shutting
down.
Ken Lundy, spokesman for the Toronto Port
Authority, said he was surprised and disappointed at the news. "We did
over a quarter-million people," said Lundy, chief of operations and
engineering for the Port Authority. "I cannot argue with the economic
benefits to our area."
Lundy said the terminal also was used
during the boating season for charter boats that went around the Great
Lakes, as well as for offices for Bay Ferry personnel.
Lundy said he had planned to meet in
December with Mayor-elect Duffy and outgoing Rochester Mayor William A.
Johnson Jr. about marketing plans for the ferry, but that the meeting had
been canceled due to a snowstorm.
He said he planned to discuss the
contract between the ferry board and the Port Authority — he called it a
lease agreement — with Rochester officials. "We're more than happy to do
that."
Meanwhile, news of the ferry's demise
was barely mentioned in Toronto newspapers.
(The Star had a story out at 1:00am on Wednesday morning. You
expected screaming headlines like today's Democrat and Chronicle?
We're talkin' HUGE letters readable from across the street.)
Mary Jatto, who owns Cherry Street Diner near the terminal, said she saw
an increase in business from ferry riders. "I'm sad," she said. "I
expected it to do better. I saw the potential."
Richard Van Boxmeer, 47, of Toronto
didn't know the ferry had been shut down until he was told by a reporter
as he walked his dog.
"I was surprised that it lasted as long as it did," he said.
Van Boxmeer said he had never ridden on
the ferry.
GLIVADAS@DemocratandChronicle.com
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Sheesh. Just what did this D&C reporter expect?
A massive blue funk descending upon Greater Toronto over the sorry demise of the
ferry? Sullen street crowds shuffling quietly along Yonge Street wistfully
kicking themselves for not taking the ferry when they could? All along,
Toronto has been obliviously indifferent to the thing, so there really shouldn't
be any expectations of mourning on the part of Torontonians.
A sly grin or two at pulling off a fast one on some Upstate
NY city... maybe. But I think 'indifferent' pretty well sums it up, don't
you?
"I was surprised that it lasted as long as it did," he said.
I heard that more than once today while
hanging out in Cabbagetown. The folks in St.Catharines were a bit more
sympathetic -- the Niagara side of the QEW has always been a little more
diplomatic than the other end -- but the general consensus was it's better to
cut the losses now rather than later.
An editorial lament:
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42º | Hi 59º /
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Well-reasoned call
The ferry became a drain on finances that
the city couldn't afford
(January 11, 2006) — Rochester's ill-fated
flirtation with the high-speed ferry business is over, and the breakup, as
painful as it is, is the right decision for city taxpayers and the
community.
New Mayor Robert Duffy and his team pored
over the books, tested possible scenarios and came away with an
inescapable conclusion:
This isn't working.
And it won't work, even with an
additional $11.5 million of borrowed capital. If the ferry had a flawless
2006 season, if ridership doubled in spite of increased fares, if nothing
broke down or fell off, the city would still have a shortfall coming into
2007.
The deficit would rise if the city
committed to $2 million in marketing needed to improve ridership.
This decision leaves many in its wake, including this page. We
supported the ferry. We accepted the business plan assumptions, first from
private owners Canadian American Transportation Systems and then from the
William Johnson administration.
The assumptions were built on hope,
which was like building them on air.
Duffy and his team — corporation counsel Tom Richards was the chief myth
buster — replaced air with the ground of reality.
The ferry operation was poisoned by
secrecy and obfuscation that reflect badly on the Johnson administration.
For instance, Duffy discovered a 14-year contract with the Toronto port
authority that basically had Rochester paying for Toronto's terminal. Who
knew? Not the community. (Undeniable truth.)
The city, of course, doesn't get off
scot-free. City Council will be asked to withdraw $9.5 million from its
limited reserve to liquidate the operation and pay creditors. If the $40
million boat is sold for $20 million — that's the basement price — the
city will have to make up the difference.
But this decision, as the mayor said,
stops the bleeding. Another season would leave more losses and, at the
end, the same problem only deeper, only worse.
As a gleaming symbol of promise, the
ferry worked. As a business, it was a failure. Duffy looked past the
promise to the business, and he made the right call.
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Which drama queen died and passed the tiara
to THESE guys? "The
assumptions were built on hope.." and "As a
gleaming symbol of promise, the ferry worked."
Break out the Wellies, boys; it's gettin' deep in
here.
It was never the ferry 'hope' or the ferry
'promise'. It was the ferry 'business'. Any other half-hearted stab
at defining what the ferry was supposed to be is pointless and gutless.
When tens of millions of dollars are involved, flowery sweet sentiments are best
left to church prayer groups and manic-depressive workshops.
The D&C editors had the same
opportunities to rationally and realistically look at the ferry project as
anyone else. Instead, they gushed enthusiastically about how Happy Days
Are Here Again and maintained the ferry could work up until the very last days.
The D&C had control of the only soapbox in town and could have just as
easily skewered the idea from the first days of CATS as I did. Their
staff, such as writers Mark Hare and Ben Rand, pumped the pulp with saccharine
platitudes of the joys of lake cruising and visions of some sort of morale boost
even in the face of utter failure.
Even the progressive (by Rochester standards
anyway) City Newspaper waxed eloquently about how the ferry would be a
boon to the Rochester and surrounding areas. Editor Mary Anna Towler
prattled on glowingly of the ferry and offered more They Should's than They
Shouldn't's.... as in "They shouldn't be pursuing a dead route which doesn't
have enough demand". Towler has written only one article about the ferry
since December 21, 2005 -- which basically droned on endlessly about the sanctity of
'marketing campaigns'.
Initially, City Newspaper was hurling
the confetti with wild abandon when the ferry's outlook rose, then fell, then
rose again. Since the ferry was thrown into ICU, Towler retreated and kept
mum on the ferry progress... possibly because even she could read the writing on
the wall.
Now that the life support has been switched
off, look for City to stick to its guns and slam... somebody... about how
better promotion would have been the needed salvation to keep the service alive.
That's complete crap of course; there's scant little which would have compelled
Torontonians and Canadians to consider dropping on down for a day or two in the
Homicide Capital of New York State.
As for me, I found today's drive up and back
from Toronto to be pretty routine. Clearing Customs in both directions
took less than a grand total of two minutes and even the slowdowns around Ford
Drive kept moving along nicely.
Looks like the local QEW haters will have to
decide between bus or rail for the next trip now that their joy ride's been
torpedoed.
A cynic's dream come true:
Hovercraft
proposal still alive
1/11/2006 10:00 PM
(Rachel Barnhart, WROC-TV)
Mayor Bob Duffy says if a private company wants to start a
Rochester-Toronto ferry service, he's all for it. For the past two years,
News 8 Now has been following a company that's been waiting to step in,
should the ferry flop.
Mark Chapell, of Hover Transit Services, long ago predicted the fast
ferry would be a fast money-loser. He encouraged the previous City Hall
administration not to buy the ferry, and to allow his company to pick up
the pieces. His company did not get a warm reception.
Chapell, of East Rochester, proposes a hovercraft. It's a cross
between an airplane and a boat, and can travel up to 80 m.p.h. Chapell
says it would use 80 percent less fuel than the ferry, tickets would cost
about $10 less, and it would get to Toronto in little more than an hour -
twice as fast as the ferry.
"It's going to carry about 100 to 140 people, 10 to 12 cars and do it in
an hour," Chapell said.
Perhaps the best selling point in a ferry-weary city is that the $10
million hovercraft would be privately-funded. Chapell says HTS has lined
up half of the financing it needs.
"The business model is hands down better than the fast ferry," Chapell
said. "Ours is the true fast ferry."
Chapell says HTS would need the city to commit to modest infrastructure
improvements at the terminal and the port.
(Sounds familiar.)
His biggest immediate challenge appears to be getting an audience with
Mayor Duffy. "We desperately want to get in front of Mayor Duffy
personally and discuss with him in private or public what our plans are."
City Hall did not return a call for comment Wednesday.
HTS would like Toronto to serve as a hub for several of its routes around
Lake Ontario and Lake Erie, which would be used for cargo only. The
company envisions using five hovercraft for its routes.
Chapell says once HTS gets the green light to run the ferry between
Rochester and Toronto, service could start within 18 months. The
company would have to build the vessel. (Ditto.)
To learn more about hovercraft, click on the link below.
Related Link:
http://www.jameshovercraft.co.uk/hover/m... |
Could it be? Have we finally answered WHY there's a
need for a maritime link from Toronto to Rochester? Is a hovercraft the
magic spell we've all been waiting for? Bring it on, I say!!
Let's not be content with merely being regional Gullibility Chumps; let's
go for the International Cup.
"What do you think of
Mayor Duffy pulling the plug on the fast ferry?"
59% were "Unsure". Proving once again, there's
no such thing as a stupid question -- but Lord Have Mercy, some of the responses
show a frightening lack of intellectual prowess.
Mayor
Duffy "surprised" about deal with Toronto Port Authority
1/11/2006 6:00 PM
(Cathy Orosz, WROC-TV)
"It was not widely known by me," Rochester Mayor Bob Duffy said Wednesday
about a deal the previous administration struck with Toronto's Port
Authority. "It was not part of any briefing that I had."
But Duffy is getting up to speed quickly on a deal that still has the City
of Rochester paying a quarter million dollars a year for space at
Toronto's Terminal. An official with Toronto's Port Authority says the
fee is nothing more than a property lease based on a certain cost per
square foot.
"Quite frankly we're quite surprised that there's this buzz about it,"
said the Port Authority's Chief of Operations, Ken Lundy. "It's a
commercial lease that's in place."
Above and beyond that, the City was also paying a fee for each passenger
and car coming out of Toronto.
"That is actually common," said Lundy. "We charge that within the Port of
Toronto to other users and it goes to harbor maintenance costs."
The deal amounted to hundreds of thousands of dollars for Toronto; a city
Duffy says was already raking in more ferry revenue than us.
"Their hotels, their restaurants, their theaters are benefiting. I
think that's benefit enough," said Duffy. "I guess what I would question,
why are we going to pay and keep paying extra?"
Officials from the former administration are on the defensive. The City
attorney who helped negotiate the deal says it was "very much known."
"The Mayor spoke about it several times in public," said former
Corporation Counsel, Linda Kingsley. "It was not a secret deal."
Lundy agrees. "I'm still sort of taken back that there seems to be some
idea there's a smoking gun in all of this," said Lundy. "I can assure you
there is not. All deals were on the up and up. All deals were negotiated
in a fair manner."
How can the City get out of the deal? The Toronto Port Authority is
planning to meet with Duffy's administration and hammer out a solution.
Both sides have talked, but so far there's no firm date for a meeting. |
"Their hotels, their
restaurants, their theaters are benefiting. I think that's benefit enough,"
said Duffy.
OK. That's one way of looking at it.
Another might be that Toronto really never benefited all that much and the city
needed to have a source of revenue from the ferry company itself to ensure the
deal was semi-profitable for the GTA. Sort of a insurance policy.
It's hard to imagine the King Edward
was selling out of rooms due to the crush of ferry passengers flooding the
streets. I don't think the Novotel at The Esplanade had to hire
extra staff to deal with the Louis Vuitton-toting tourists from Rochester.
The Spaghetti Factory didn't seem to have lines snaking along the sidewalk
during the times the ferry pulled into the Port of Toronto.
In short: the benefit to Toronto was
marginal at the very best. Slamming a $250,000 'rental fee'
along with a per-head charge may have been the biggest chunk of 'benefit'
Toronto saw. We'll never know.