Page Fifteen  

24 NOVEMBER 2004

The final days are upon us.

Wednesday, November 24, 2004
Home > News > Local News	Rochester Time: 11:50 am

My dear, the ferry has long since been deceased.  It's just that local interests are struggling through a denial period... completely incredulous that such a a passing were possible.  Don't worry; after the denial phase comes anger followed by the final phase, acceptance.

I believe we're entering the anger phase which should culminate right after the announcement that EFIC has taken the keys away from the kids and is putting the boat up for sale.  Then the accusations and lawsuits will start flying while the public seethes from having another multimillion dollar bill dumped in their lap as a direct result of a sheer lack of common sense.

Tranna... whatchu think?  Gonna play Toronto the Good and not file a lawsuit but quietly mutter "Never again with Rochester"?  That would be keeping with character but the residents of the GTA deserve some redress, doncha think?  I mean, it was the TPA which pushed for a project they darn well had reservations about (and City Council had total misgivings about).  I think that alone merits some wrist-smacking so the next time some fly-by-night American company tries to tap into the GTA market, Toronto organizations will have real reason to pause and reflect on the validity of the proposal.

At least the new Toronto terminal has more potential uses than as a large (and vacant) $16 million snack stand.

November 24, 2004 2:30 PM

City Hires Maritime Lawyer (Rochester, NY) 11/24/04 - The city is moving ahead with its plan to own and operate the fast ferry. Tuesday night, city council members approved $50,000 to hire a maritime lawyer to advise the city in its attempt to buy the ferry.  Ferry's lenders had filled out paperwork and were prepared to file a foreclosure notice December first. With the help of Senator Chuck Schumer and the US ambassador to Australia-- that date has been delayed.

Sounds like a plan, all right.  Not a very good plan mind you, but I suppose when tens of millions of dollars are about to sail away never to return it behooves political circles to at least put forth an effort to give the impression 'sumthin's bein' done'.

So they call Lawyers 'R Us and buy one with a knowledge of maritime law who'll scramble with as much busy work as possible before EFIC slams the door once and for all.  That way, the number of hours logged for the client are right up there and the lawyer gets to charge a bundle for a case which will never make it to court anyway.

A quick 'n easy billable for pulling together details only to be met with a "Sorry, it's in EFIC's hands now".

More cash down the crapper.  Clench-fisted Rochester area residents stamp their little feet, throw a tantrum and wind up paying for a service which they never voted for and have jack to show for their money.  Responsible government strikes again.

Here's a timely anecdote: this weekend is the annual Toronto Aboriginal Festival and Powwow being held at SkyDome;  I've attended every year since its inception and this year will be no different.  It's a pretty amazing sight, filled with dancers, music, vendors, food and enough entertainment to impress even the most jaded observer.  A great event... one which attracts participants and an audience from all over North America.

The question:  How many Rochester area residents would have attended this extravaganza if the Breeze were still in operation?  How many Rochester area residents will make the effort to drive up to Toronto to see what this is all about?

Scant few, either by ferry or by car.  Yet locals bemoan the loss of a service they don't use anyway... and if driving is the only impediment to visiting Toronto, then I'd have to say there wasn't all that much interest in the first place.  Rochester area residents need to ask themselves, "When was the last time I spent time in Toronto?"  And if the answer is something typical like 'one or two times a year' (a high estimate) they need to consider whether their one or two Toronto visits per year are sufficient support to keep the ferry profitable over the long term.

Now, I'm not suggesting locals should be making as many trips to T.O. as I do; after all, I have more of a vested interest in the GTA and don't expect Rochesterians to form a solid line of cars to Toronto every other weekend.

But when I hear locals whining about the loss of ferry service to a place they MIGHT visit once in a blue moon I have to question their angst... not to mention their hypocrisy.  And we won't even begin to imagine just how many local residents have NEVER been to Toronto, let alone those who have no desire to EVER go.  Those are significant numbers by themselves.

We've already established that Rochester isn't a Grand Destination for Toronto and Southern Ontario residents, so if (1) Rochesterians aren't the primary target of some tourist tempting venture and (2) Torontonians didn't and won't take the bait, then what's the point of stringing out this painful and costly experience?

EFIC may have seen that logic a while back.  Meanwhile, local interests are fixated on the means instead of the end.... and in this case, the end most certainly can't justify the means.  It's a totally moot aspect at this point as EFIC is about to derail any plans for a ferry between Rochester and Toronto for good.

That's not hard to see coming... and soon, very soon.  EFIC's in the business of making money and if locals can't see the ferry restarting any sooner than five months from now... at the earliest... that means EFIC's supposed to quietly sit tight until the client decides they can get their act together?  I don't THINK so.  They've been far too patient already and can't be expected to hold on with no firm commitments made by either CATS or the City of Rochester.  "We're working on it" just doesn't cut it; either the money's there or it's not.  It's that simple.

Either EFIC loses Big Money or local concerns lose Big Money.  Considering EFIC holds the title to the boat, it's their call as to whether to bleed red ink for a bunch of hayseeds who got in over their heads... or simply say "YOUR loss is not about to become OUR loss".  That's not ill will, that's just good business and something anybody with a scrap of business acumen knows is necessary.  EFIC has no intention of carrying the weight of poor planning by a bunch of locals who were clueless about running a ferry service.  Why should they?

Had CATS paid cash for the ferry, few in Australia would be even concerned with whether the thing moved or was used as a giant geranium planter.  If the City of Rochester steps in and pays cash for the thing, nobody in Australia would care what happens to the boat either.  That's the rub; in order to get the cash, the City has to sell bonds which have to be approved by the bond backers, the State of New York and local governments.  EFIC knows the chances of that happening are slim to none in light of no private investors having enough confidence to Save The Day.  The only thing EFIC sees now is a gigantic squabble between CATS and the City and a very long, difficult road ahead to get approval to sell bonds.

They're not going to wait around for THAT issue to be resolved which could just as easily end up being denied as it could be approved after months of negotiation and pleading.

You locals better run down to Charlotte to get your final photos of the Breeze 'cause it ain't gonna be the Breeze for much longer.  There's going to be a big empty space soon enough.  Don't believe me?

Ignore At Your Own Peril.

Remember this patriotic welcome to Rochester?  How sentimental.

Think there'll be a similar send-off as the ship heads out for the last time?  Frankly, there just might be some effigy-burning at the pier given some of the feedback this section of the Native Canadian has received.  Yes, there are some pretty P.O.'d locals who're screaming mad at the blatant irresponsibility of a project which should have never gotten off the ground.

Dominick Delucia and his CATS crew notwithstanding, city officials should have been able to smell a skunk when it was presented to them.

At the very least, local government should have thrown more responsibility on CATS instead of assuming the risk itself.  A private company should be willing to fully accept the consequences for failure... something I'm still waiting to hear.   Should CATS be sued out of existence?  In my mind, without haste they should.  But given the size of the debt load, it would be like expecting some Burger King employee would be able to pay for the Bentley they signed for.  Mean-spirited SOB that I am, I'd at least grab Dominick's personal assets and apply it to the final tab.... it is, after all, his insouciance which led to this mess.

But 'we' can't do that as personal property is off-limits in a corporation demise.  Sort of a pity, that.  Might cause some other pie-in-the-skyers to REALLY stop and think if they want to assume that sort of risk.  No guts, no glory... that sort of thing.

In other times and places, Delucia and CATS would be run out of town on a rail.  Less enlightened societies would simply stage a quickie court, followed by carrying out the sentence at the end of a rifle.  Don't think THAT is called for, but there needs to be some very serious personal financial consequences paid by Delucia and CATS.   And for that matter, the local politicians who cheerfully bought into it as well.  It would send a very sober message: "What you do with YOUR money is YOUR business; what you do with the PUBLIC'S money is most assuredly the PUBLIC'S business".  Anti-entrepreneurial rhetoric?

Maybe.  But it sure would give reason for some longer, harder consideration than was afforded to the Great Fast Ferry Debacle.  If I knew I could lose everything I owned - including my home - perhaps I'd be more cautious about diving headfirst into unknown and untested waters.   Simply shrugging with a "Oh well, it didn't work" and going on with my life is a real miscarriage of justice and completely ignores accountability.  I doubt I'd get off that easily.

And nether should those involved with this fiasco.

Wednesday   November 24, 2004

CATS Still Won't Sell Ferry to City   by Stephanie Dusek Published Nov 24, 2004 CATS founder Dominick Delucia is closer than he's ever been to losing the ferry service he spent five years and $2 million of his money to build. Not even foreclosure makes him want to accept the city's offer to buy the ferry. "Selling the boat to the city as the city has proposed just doesn't work. Not only is it not reasonable. It doesn't take into consideration the rights of unsecured creditors, the shareholders of CATS or the employees of CATS," Delucia said. Foreclosure comes after CATS latest plan to restart the ferry was rejected by the two lenders who now want the boat back. “They've been asking us to wait, suggesting we're not giving them time. We kept saying there isn't time and the senior lenders proved that this (Wednesday) morning when they filed their papers," city attorney Linda Kingsley said. Delucia isn't just at risk of losing the ferry. CATS could also lose its workspace. The city is preparing to evict cats from the Port of Rochester terminal. "They are the tenants in the terminal but it requires them to run a ferry operation. Obviously they're not doing that any more," Kingsley said. Delucia says even the lenders who filed the foreclosure want to see the ferry stay in Rochester. "Everybody should remember nobody wants to take this boat out of Lake Ontario, not CATS, not the city and not the senior lenders. They're in the business of keeping ferry businesses in business," Delucia said. The Breeze

Uh, once again Dom, you're wrong.

Lending businesses are in the business of making money... not leading some backwater bumpkins by the hand as they try to figure out how the ferry business works.

The proof?  Read on:

Wednesday   November 24, 2004

Ferry Foreclosure Underway   by Seth Voorhees Published Nov 24, 2004 Two of the fast ferry's main lenders began foreclosure proceedings Wednesday, according to papers filed in U.S. District Court. The lenders are seeking $31.5 million, money owed to them. They're also asking that the ferry be sold. The two lenders, ABN AMBRO Bank and the Export Finance & Insurance Corporation (EFIC) provided a large chunk of the loans CATs needed to bring the ferry to Rochester According to the paperwork filed today in U.S. District Court, CATS has missed close to $1 million in scheduled payments to lenders since the end of September. Those two lenders are asking for a judgment from CATS totaling close to $31.5 million. They also asked that the ferry be condemned and sold and that the proceeds go to pay off the debt. Rochester's city attorney says the start of foreclosure proceedings is not unexpected. Linda Kingsley says if the ferry goes up for auction, it very well could leave Rochester. “I hope this creates the sense of urgency we have not been able to see from CATS,” Kingsley said. “They've been asking us to wait, suggesting we're not giving them time, and we kept saying there isn't time. The senior lenders proved that (Wednesday) morning when they filed their papers." In making his proposal last week for the city to buy the ferry, Rochester Mayor William Johnson said the foreclosure process could happen at any time. The ferry has sat in dock at the port of Rochester since the end of September. That’s when CATS shut down ferry service, citing more than $1.7 million in debt. Mayor's Fast Ferry Plan The Breeze

Now, let's take a closer logical look here.

CATS buries itself in tens of millions of dollars of debt citing everything from 'bad luck' to no terminal in Toronto.  Not enough income (ie passengers) to pay the monthly ferry payment to the lenders causes them to shut down.  Temporarily.  Just until they can con some more cash out of private lenders.

The City of Rochester thinks it can do better by selling bonds, eliminating the monthly ferry payment... yet not addressing the REAL reason the ferry had to shut down which is not enough income (ie. passengers) to offset paying the monthly bill.  Not the 'monthly bill' to commercial lenders, but the 'monthly bill' to repay the bond holders.

The difference?  There is none, except whose name is now on the title.  A band-aid approach to a massive wound which can do nothing but bleed red ink.  Why, you may ask?

  "There aren't enough passengers to keep the Ferry profitable over the long term".

This really isn't a complex concept to grasp but that's not stopping both CATS and the City of Rochester from maintaining theirs' is the plan to salvation for the Spirit of Ontario.  What's unbelievable is neither side sees their position as an exercise in futility since restarting the service, only to have it fail again, is madness indeed.  There's a real probability that EFIC understands that and filed for foreclosure as a matter of putting an end to the pointless back and forth between CATS and the City.

Wednesday, November 24, 2004
Home > News > Local News	Rochester Time: 3:17 am

Ferry foreclosure begins WILL YURMAN staff photographer The fast ferry remains docked at the Port of Rochester. The City of Rochester is hoping to establish a public authority to purchase and run the ferry. Related files: U.S. District Court document Rick Armon Staff writer (November 24, 2004) — The Spirit of Ontario may soon end up on the auction block — but not before a stop in federal court. ABN AMRO Bank and the Export Finance and Insurance Corp. — two of the primary lenders that funded the $57.7 million high-speed ferry project — started foreclosure proceedings against the ship today in U.S. District Court in Rochester. They are seeking $31.5 million from Canadian American Transportation Systems, the private Rochester-based ferry company. The document also asks the court “that the vessel be condemned and sold.” CATS already has missed about $1 million in payments since Sept. 28, according to the paperwork. The attorney representing the bank and EFIC could not be reached immediately for comment. The $42.5 million ship — one of the most anticipated projects in recent Rochester history — was in operation less than three months before it shut down. CATS said it ran out of money. The vessel made its last voyage between Rochester and Toronto on Sept. 7. Since then, CATS, political leaders and financial lenders have been trying to figure out how to resume the service. ABN AMRO, a Netherlands-based bank with an Australian branch, loaned CATS $33 million for the project last year. EFIC, an arm of the Australian government, and MTU Friedrichshafen GmbH, the engine builder, provided $22.5 million and $6.3 million finance guarantees, respectively, leaving the bank responsible for only $4.2 million. The other secured lenders in the deal are the city’s Rochester Urban Renewal Agency, which steered a $6.6 million state loan to CATS; and the city of Rochester ($1.3 million). Mayor William A. Johnson Jr. and other city officials have floated the idea of buying the ferry and turning it into a publicly run operation. Johnson wants the state to create a public authority to issue $40 million worth of bonds to buy the ship and run the service. Johnson and CATS officials have traded barbs over the plan. RARMON@DemocratandChronicle.com

Like legal stuff?  No?  Well here's a clip from the intervening complaint ABN AMRO N.V. Bank and EFIC lodged against CATS:

So what we have here is this:  CATS legally needed to ask their lenders if it was OK to stop operations... not simply tie up at port and turn out the lights through some decision of CATS' executives.

#20 is the paranoid factor.  It's saying the lenders are afraid some other creditors is going to get their pound of flesh first and they'll lose possession of the boat to Amarada Hess, the fuel people who were stiffed along with others.  Meanwhile, back at City Hall the eviction orders are being drawn up to give CATS the boot from the terminal.

The point?  Does any of this sound like the workings of a responsible corporation?  Is there any doubt such a bumbling company was grossly presumptive on its projected numbers of passengers?  Which brings us back to... you guessed it:

  "There aren't enough passengers to keep the Ferry profitable over the long term".

The City of Rochester seems to think CATS was just a tad over-optimistic (450,000 per year) and drops the projected passenger figure by 14.29% to 385,705 annually (about 416 per trip).   Closer to reality, but still  w a y  off in terms of actual numbers of residents on both sides of the Lake who'll use the service.

What do I base that conclusion on?  A provincially-minded town in Upstate New York and a world-class city which has far more attractions.  Where's the interest?  It's no secret Rochester stood to gain more from a ferry service than Toronto did.  Yet Canadians merely had a marginal interest in signing up and Rochesterians, while taking great delight in such a service, by and large didn't use it.

Rather unfortunate timing of filing the foreclosure papers by ABM AMRO Bank N.V. and EFIC.  Unless the courts pull off a record in expediency, the Seaway will close to traffic in a few weeks and the escape route to whisk the ship out of an Upstate winter will no longer be possible.  The legal system rarely works miracles in speed, so we'll most likely have to have the hulking reminder of The Inept sitting around for the winter.  The natural degrading features of our climate combined with clouds of street salt and a Genesee River which become a saline bath from the runoff, the Breeze should be taking on the same qualities of the typical body-rotted cars which are de rigueur around here.  They don't call it a Rust Belt for nothing.

Nice mess.  Gives new meaning to and sets a new standard for Civic Embarrassment.  Mayor Bill Johnson just lost any hope of re-election and the Rochester area just gained another line item in the Debt column.  Delucia whines he's got $2 million of his own cash tied up in this failed venture, but does anybody think someone who can come up with $2 million in cash for an untested scheme will have trouble making the car payment?  Or mortgage?

This guy's a former Wall Street trader?  Scary thought, that.

And in another series of local gaffes not dissimilar to the fast ferry debacle:

November 23, 2004

High Falls: Broken promises? Rochester's High Falls entertainment district is twelve years old and it's having growing pains. The city cut the ribbon this fall on a new State Street gateway to High Falls but it was too late to help Carleen Wilenius of the Creator's Hands on Arnett Boulevard. She operated a second store in High Falls for eight years, and saw the area change. “The Creator's Hands: it's definitely not family-oriented. And there's nothing happening during the day.” The city put an interpretive museum in the Old Water Works Building at High Falls.   The adjacent building that now houses a restaurant and nightclub was used for public gatherings, and for events too small for the convention center. The name Browns Race Market is still on the façade. “And they really were talking at that point about having it become a market with a lot of different shopping type venues. So all the time we were down there people were always coming in and saying 'so what else is here. We understand there's a lot of shops, well, there never were a lot of shops,” said Wilenius.   Wilenius has not been able to sell the building she bought. “I still love it down there. I still think the area should have a lot of potential.”   The city has a big investment in High Falls, by some accounts about $25 million. “I think that High Falls was a victim of an economic malaise that was hitting a lot of other commercial ventures around town,” said Mayor William Johnson.   The City of Rochester is paying the Cordish Company of Baltimore $2.4 million over five years to operate the Center at High Falls.   So far, Cordish has brought in Tiki Bob's Cantina and McFadden’s Restaurant.  (ed.  Whoa, guys!  Slow down!)   The mayor says Cordish is operating at a lower cost than the previous operator.  And that Cordish has national connections.  “I can say right now we are really re-examining that entire area and we have a very production meeting with both David and Reed Cordish back in August. They are working with us on several ideas for implementation.”   The old factories and warehouses by the falls became a city development project in the early 1990's.   Former city councilman and vice-mayor Chris Lindley was a prime mover behind creating High Falls under Mayor Tom Ryan. He says part of the original vision was to use the gorge. “The city was absorbing a pretty substantial cost with Browns Race Market. So I can understand the appeal of turning it over to people who want to operate different types of entertainment venues. Probably not terribly attractive to families.”   High Falls was part of the state urban cultural park system focusing on the area's rich history and the water that powered the industrial revolution in Rochester and Lindsey thinks the quality of the laser light show originally designed to highlight Rochester’s history has declined over time. “The last time I saw it, it was a series of fairly boring cartoons.”   The laser light show attracted many people including families but Mayor Johnson says now it's only used sporadically. “Cordish has talked about bringing some different kind of activities down there which might include resuming a more frequent schedule for the laser show. But that's still not be determined.”   The mayor says the laser light show is expensive and the city and Cordish are trying to find some private underwriting for it.   Jillians, now closed, has an uncertain future. Lindley is pleased to see many new offices in the old buildings at High Falls but he's disappointed that High Falls, as a place to celebrate Rochester’s rich history, has not been been as valuable an addition to the city's tourist and cultural resources as he had hoped.  “That really depended on a good deal of private sector support. And these have not been in the intervening years good years for Rochester industry.”   Reed Cordish, vice-president of the Cordish Company, did not return several phone calls to his office over a two-week period.   The city says it does not know how Cordish uses the average half-million dollars a year it gets from the city to manage High Falls.  (ed.  Well THAT'S a relief.  Wouldn't want to give anyone a brain cramp from having to keep track of where the money's going.)   High Falls apparently pays just one person to staff the museum, art gallery and visitors' center. “And then the gift shop is something that i took over to keep it open and viable because why not have the gift shop open when I’m operating the switch board 20 feet away,” said Sally Wood Winslow from the Center at High Falls.  (ed.  Good move, Sally!  Wouldn't want to be overstaffed to meet and greet the hoards of tourists which are no doubt swarming the area.)   The big unknown is the future of the old Beebe Station power plant and its commanding site in the gorge.   RG&E doesn't want to pay for a potentially costly environmental cleanup.  Neither does City Hall.   Is the city getting its money's worth at High Falls? “Yes, i think so. Understand what the option is. Otherwise it would be boarded up,” said Johnson.  (ed.  I see. Costly renovated old buildings with an operating budget deficit are better than old UNrenovated buildings with no operating budget deficit.  O-kayyy.)   “I think it's the most fabulous view in the city. And I want everybody to come take the stroll because that's the key to really appreciating this district,” said Winslow.

Geez, they actually put this stuff online for the world to see???

Hey, we get mail!!

Seems to be something missing here; I think it's called 'logic'.

"You slam the Rochester area left and right, yet you don't seem to be coming up with anything constructive to improve anything."

Actually, on 08 August 2001, I began writing a warning that a fast ferry project would be a financial burden and ultimate failure.  Fifteen pages and three years later, I still maintain my original premise.  Perhaps if more locals had had the cojones to speak up at the time and say the same thing, they wouldn't be facing international embarrassment and a multimillion dollar bill for some three-month service which was trumpeted as the economic engine to revive the local economy.

I'd say I did my share... even though it was ignored for the most part.

"I took the ferry and it was great!  Much more convenient and relaxing than having to drive your beloved QEW like some maniac.  Maybe you're used to Canadian drivers, but the rest of us aren't."

My 'beloved QEW"?  It's a limited access divided highway.... nothing more, nothing less.  Instead of being called the 'Thruway', it's called the 'Queen Elizabeth Way'.  The only difference is there isn't a toll and it has one extra lane in each direction... both of which are somewhat appealing to drivers for some reason.

As for driving 'like some maniac' having to contend with the dreaded 'Canadian drivers', may I suggest venturing out more often?  Defensive driving is defensive driving no matter whether it's in Rochester, Toronto or on the Long Island Expressway.  Can't handle it?  Don't blame the roads or the other drivers for your own shortcomings.

"You also seem to overlook the price of gas in Canada is alot more even after the exchange... so much for your 'economical' way of getting to Toronto."

Oh my stars!  You're right!!  Gas IS more expensive in Canada even after the exchange.

But it's STILL a helluva lot cheaper than some ferry which charged US$ 136 (C$ 184) for a round-trip fare for a single driver and their car (toss on another US$ 40/C$ 54 for each adult passenger in the car).  'Cheaper', by definition, implies 'more economical' so I stand by my claim that driving was more economical than taking the ferry.  Anyone whose vehicle uses US$ 136 worth of gas for a trip up and back from Toronto couldn't be all that worried about fuel costs in the first place.

Yanno... it doesn't take a MENSA member to figure out one tops off the tank BEFORE crossing into Canada if saving a few bucks in gas is an overriding concern.  I know that's a pretty complex concept to grasp, but it really DOES work.  However, in my estimation, someone who took the ferry wasn't particularly concerned with saving money.

"It's people like you who didn't use the ferry which caused CATS to suspend operations.  Just how many times did YOU take the ferry?  Yet you slam the people who want to keep the ferry around."

I guess I deserved that.  I never took the ferry for all the reasons contained in the previous tens of thousands of words and by some scant chance, it's conceivable neither did hundreds of thousands of other residents on both sides of the Lake.  Hate to be the bearer of bad news, my thrill-seeking friend, by you and your kind are very much in the minority.  That means you didn't go along with Popular Opinion.... best wishes in finding some support group to help you cope with your alienation.

"Maybe you ought to take some of your own advice and quit telling others what to do."

Hey, knock yerself out, Festus.  If the primary reason you took the ferry was for the ride, you got what you wanted didn't you?  Just don't expect others to be so preoccupied with your simple but expensive pleasures.   And definitely don't expect others to pay for your amusement just so you can go for some joy ride when bored.

Simple minds, simple pleasures.  "Next caller, please?"

So...  who's got an office pool going on for the date when CATS files for Chapter 11 bankruptcy?  It's gotta be pretty soon as every possible option to pull the rabbit out of the hat has been exhausted.

The Ultimate Corporate Admission of Failure.  Wicked case of schadenfreude goin' on around here...

Something tells me Louisianan CATS President Cornel Martin can't wait to ditch this project, this city, this weather and get back to Southern Gentility.  Considering his spreading girth, he hasn't gone hungry or wasted away from worry but he's definitely out of his element.  Those are the breaks for applying to some amateurish startup company where some ex-Wall Street trader claims his idea is the economic shot in the arm for a region which can't even run a ballpark at a profit.

I dunno, in a way Martin has been the Fall Guy all along since he took over for Howard Thomas.  I could almost have a scrap of sympathy for the guy.  Almost.   Martin still should have been able to recognize a White Elephant when he saw one and - minus the dollar signs in his eyes - backed away very quickly and decisively.  Instead, fame and fortune beckoned and Cornel wound up being Crap's Ground Zero.  Not really an asset on the résumé, the Rochester fast ferry episode just might prove the guy can weather some pretty tough storms without falling apart or losing any weight.  I guess that's admirable if somewhat whorish.

Delucia, on the other hand, is a total Corporate Slut (in the best sense of the expression, of course).  Anyone who parades around hawking the merchandise in a bid for needed cash with a promise of a 'good time for all' can only be described as prostituting themselves for personal gain.  That's pretty much what a whore does regardless of wearing a leather bustier or a monogrammed Ralph Lauren.  In Rochester, the World's Oldest Profession is alive and wearing tailored Armani's.

November 25, 2004  9:58 AM

Ferry Foreclosure Becomes A Possibility  Jane Flasch (Rochester, NY) 11/24/04 -- The fast ferry's primary lender has taken the first steps to foreclose on the boat. EFIC and ABN AMRO accuse CATS of defaulting by not making $1 million in mortgage payments in September. The lenders are calling in their loan for $31.5 million. Rochester Mayor Bill Johnson is currently out of town. Rochester city attorney Linda Kingsley said, "We didn't think it would happen this quickly. If we're not on the way to resolving this by the end of December, we're going to lose this boat." The city of Rochester and CATS now have competing plans to revive the ferry. Both plans to bail out the fast ferry require taxpayers to assume new risks. The mayor's plan calls for the sale of $40 million in bonds to purchase the boat. CATS' proposal seeks a $6 million loan from the city. If the ship fails again, city taxpayers would be liable in each case. Though in the city's case, the boat could be sold to pay off the debt. The city deal contains no new private investment. CATS has come up with $4 million. RIT's Robert Barbato, who assesses management risks for a living, has looked at both plans. He said the CATS plan doesn't appear to address what went wrong in the first place. He also says the city's analysis based on a lower number of riders is more realistic. But, there are other potential problems.  (ed. Gloat Time.  'Doesn't appear to address what went wrong in the first place' followed by 'lower number of riders is more realistic' would seem to correlate with The Native Canadian's maxim "There aren't enough passengers to keep the ferry profitable over the long term".) Both plans count on revenue from commercial trucks. CATS' plan figures in 10 per day, the maximum the ferry can carry. The city's plan figures in eight. However, even if customs issues and costs are worked out--American Rock Salt--a company cited by the city as a possible ferry user says it won't work. Both plans rely on income from ads placed on-board the ship as much as a million dollars a year. A spokesperson for the state subsidized ferry service in Maine tells NewsSource 13 that the figure is "on the high side," but could not elaborate without more details. City councilman Brian Curran said miscalculations about trucks, ticket revenue, and advertising put into question $4 million a year included in the city's plan. "If we don't make the money we hope to make, what would happen? The annual losses would arrange from a few hundred thousand up to $4 million a year. If that's the case you can't justify an on-going taxpayer subsidy of this organization," Curran said.  (ed.  That's odd; seems like Bill Johnson can.) The CATS' plan--also involved video lottery terminals--and has been rejected by the Australian lender twice. The company says it is working on a new plan. Some members of city council are calling for an independent audit of the mayor's plan by someone familiar with how ferries operate. Wednesday's court filings make the situation more urgent. There is a federal order baring the boat from being taken out of the port of Rochester until February 10. So far, the Australian lenders haven't asked for that to be lifted, which gives both the city and cats three months to work something out. However, in a few weeks, the St. Lawrence Seaway closes until March and the ferry cannot leave until that’s open.

So what's new here?  Well, nothing really.  Just wanted to show a few more pitfalls of restarting the service.