Crescent City Times

More Woes for the Harbor

C
Crescent City Times
January 6, 2022 at 11:14 PM
5 years ago
By Samuel Strait – Reporter at Large – January 6, 2022 While "Eye On Del…
By Samuel Strait – Reporter at Large – January 6, 2022 While "Eye On Del Norte" has been keeping us up to date with the recent troubles that are occurring down at the harbor, dredging, the RV parks, and perhaps a future test to revoke the harbor's two percent dip into the bed tax. The fact that the harbor district's problems do not end with a change in leadership, or their testy relationship with the public. The much touted solar panel project has run into a few speed bumps along the way. Hopefully the landing fees were adequate this crab season, as it seems that the harbor is headed right back into red territory with their profligate spending that centers around their association with Alex Lemus of Renewable Energy Capital. Not only has his contribution to land redevelopment stirred up a hornet's nest at the harbor owned RV parks, but his ADE-Crescent City LLC seems to be in some financial difficulty. The company owes the harbor district nearly $300,000 in an up front leasing arrangement for twenty five years. Now barely into the arrangement with ADE, "cash flow" issues have made the company unable to honor the agreement. In addition, the harbor was projected to save $70,000 in electricity costs from using the solar grid. Earlier the the district's commission was told that the savings was not as generous as projected coming in at $35,000 without factoring in the heavy power usage of the harbor's freezers which likely wiped out much of that savings during overcast winter conditions in Del Norte County. Welcome to well thought out decision making from the Commission. Fortunately the harbor isn't on the hook for the Solar Panel's construction costs, that is all ADE's problem. Yet it does call into question whether or not ADE will be able to properly maintain its project and whether or not the harbor is going to be on the hook for the Solar Panel Project if ADE goes under from "cash flow" problems. Looks like that is something "Eye On Del Norte " might want to keep track of in the future. In the meantime, Lemus is proposing a way for REC to assume the $288,000 ADE debt from the Solar Project lease in his redevelopment project. Kind of looks like a "rob Mary to pay Paul" kind of scheme. In any event the new REC redevelopment plan calls for more leasing of harbor property in which the harbor is hoping that the ADE debt will be paid. The development phase I is according to Lemus going to require a $10 million dollar investment and who knows how much more as the project unfolds. Due to the risky nature of what Lemus is proposing and the problems with ADE, of which Lemus is a managing partner, might it be in the harbor's best interest to do a bit of due diligence. Likely not even considered by the harbor's "brain trust". In any event, it is probably safe to say that sound decision making and due diligence is not one of the forte's of the current harbor commission and it's hired harbor master, both current and past. One can only hope that further disasters are not generated in the future. Except past experience is a mighty good predictor of the future. Harbor dredging anyone?

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Article Details

Published January 6, 2022 at 11:14 PM
Reading Time 0 min
Category general