Bald Head Island ferry sale: New government appointments draw suspicion
The N.C. local government commission will determine which of two applicants, both hoping to secure over $50 million in bonds, will ultimately be approved to purchase the Bald Head Island ferry system.
But according to N.C. State Auditor Elizabeth Wood, recent changes to the commission raises suspicions about whether its makeup will favor a particular outcome.
Just before adjourning for their Jan. 11 meeting, newly appointed commissioner John Burns asked whether the Bald Head Island ferry sale would be on February's agenda.
According to Wood, who serves on the commission as the state's auditor, the issue is not expected before the commission again until there is a "reliable and credible" evaluation of the ferry's assets.
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“I will fight that. I will take it to court. I will do whatever it takes,” Wood said, explaining legally, the commission must ensure a sale is not approved if its price tag is greater than the assets.
For more than a year the Bald Head Island Transportation Authority, a board created in 2017 by the state legislature to facilitate the ferry sale from its private owner, has been trying to get approval from the commission for $59 million in bonds to make the sale happen.
However, questions surrounding public support for the purchase and the ferry system's valuation, which came in much higher than its appraised value, have delayed the approval since January 2021. Since then, the commission has sought a new, third appraisal and sent the authority questions to answer before moving forward.
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The delays have allowed the village of Bald Head Island to submit a financing application of their own, seeking $52 million to purchase the ferry assets. But a letter from the ferry owner reiterated they have no interest in selling to the village after spending so much time and money working out a deal with the authority.
In November, N.C. Gov. Roy Cooper replaced three of the 11 commission members shortly after the village of Bald Head Island residents voted to approve a bond referendum to purchase the ferry system.
During the January commission meeting, Wood suggested the shake-up was done to avoid further delays and get the sale approved.
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“I knew that's what this whole re-appointment was all about," Wood said. "Getting somebody on here that would get it on the agenda.”
Burns said he hasn't decided either way on the ferry sale, and would like to review the materials and discuss whether the issue should be added to the agenda.
"I don't have anything to review, that's my point," he said.
Wood said it's not a matter of choice whether the item comes before the commission, but rather a matter of meeting certain criteria to move forward, including a new valuation.
"This is a transaction the likes of which has never occurred in North Carolina," State Treasurer Falwell said at the meeting, explaining toll payers who rely on the ferry to get to work outnumber the residents on the island who would be affected.
“When the governance, transparency and evaluation on this transaction all align, we’ll put this on the agenda as soon as possible."
Reporter John Orona can be reached at 910-343-2327 or jorona@gannett.com.
This article originally appeared on Wilmington StarNews: Bald Head Island ferry sale draws suspicion after appointments
