Here's why the Bald Head Island ferry dispute has turned into a court battle
The future ownership of the Bald Head Island Ferry remains in limbo as some parties in the five-year-long dispute head to court this week.
While the Bald Head Island Ferry has always been privately owned, an effort to make it a public operation began when the North Carolina Legislature created the Bald Head Island Transportation Authority in 2017.
“This was to keep the ferry system operating in the public interest for all users,” Susan Rabon, chair of the Authority, said in an email. “Only approximately 10 percent of the ferry ridership are permanent island residents.”
For years, that board of stakeholders has been in negotiations to purchase the ferry, but those negotiations stalled when the Local Government Commission refused to put the transaction on its agenda due to a dispute over market values.
Prior reporting:Bald Head Island ferry system sale stalls over appraisal issues
More:Bald Head Island says second ferry system appraisal is erroneous
In February, Bald Head Island Limited entered into a binding agreement with SharpVue, an investment firm based in Raleigh, which could keep the operation in private hands. The total purchase price was $67.7 million, which included $56 million for ferry and tram system and $11.7 million for the Mitchell family's supplement assets, which include the marina operation and some remaining boat slips on Bald Head Island, Deep Point Marina in Southport, and some commercial land on Bald Head Island.
That same month, the Village of Bald Head Island filed a complaint with the North Carolina Utilities Commission, which currently regulates the ferry service, asking that the barge and parking services also be regulated.
What happens next?
On October 10, the North Carolina Utilities Commission will begin hearing the Village's complaint.
As of now, the Bald Head Island Transportation Authority remains active, and Rabon said it is "waiting for the resolution of the current disputes between the VBHI and the sellers of the system.”
While she hopes the Authority will be able to accomplish its statutory mission, that won’t be determined “until the disputes between the other parties are resolved, and the BHITA continues discussions with the contracted buyer, SharpVue.”
Carin Faulkner, spokeswoman for the Village of Bald Head Island, said the Village “desires a transportation system that would provide a top-quality, reasonable priced transportation system” on behalf of all the ferry system’s users.
In addition, despite having two members − including the Bald Head Island Mayor − serving on the Bald Head Island Transportation Authority since its inception, the Village has since expressed a desire to purchase the ferry system through a "Right of First Refusal" (ROFR) document dated August 21, 1999.
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As the parties continue to dispute the sale, Paul maintains should SharpVue acquire the ferry system, it will remain accessible for the general public because it is regulated by the North Carolina Utilities Commission.
He also suggested SharpVue's acquisition of the system may not be the end of the road for the Bald Head Island Transportation Authority.
"I would suggest there is still an opportunity for the Authority," Paul said.
Bald Head Island Limited's deal with SharpVue has yet to be finalized. Because the ferry and tram service are regulated by the North Carolina Utilities Commission, the deal cannot close until a certificate of transfer is approved by the utilities commission. That hearing date is set for January 2023.
This article originally appeared on Wilmington StarNews: Bald Head Island ferry saga continues: Here's what you need to know
