Corps Revokes Leases at Tucker Hollow, Sugar Loaf Harbor Marinas

LITTLE ROCK, Ark., Sept. 24 – The Little Rock District of the Army Corps of Engineers has revoked the leases at Sugarloaf Harbor Marina and Tucker Hollow Boat Dock on Bull Shoals Lake because of repeated lease violations.

The owner of both marinas, Golf Hills & Country Club Development, LLC, has held the leases on both facilities since June 2005 and has committed multiple lease violations since that time. In a May 23 letter from the Corps, the owner was put on notice of the agency’s intent to revoke both leases upon the next incident of non-compliance. The current non-compliance stems from the fact that the firm did not pay its May, June or July rent until September.

The owner has the option to sell the facilities to new owners during the next six months. Corps officials said they believe there are responsible companies willing to purchase and run these facilities for the public’s benefit. If the facilities are successfully sold, there may be no noticeable interruption for customers and local communities.

If the marinas are not sold within six months, the Corps will require the owner to remove the facilities to protect the lake environment from abandoned docks. Marina customers will have the opportunity to retrieve their boats and belongings beforehand should this occur. Slip rental, if owed, is still payable to the current owner of the facilities.

Corps officials said they are sensitive to the impacts their action could have on marina customers and local economies, and they revoked the leases as a last resort. They said they consider most marina owners on their lakes to be good partners who provide a valuable service to the public.

The Corps does not own the marinas. The Corps leases space on the lake (usually at a park that provides full public access) to companies that install and maintain the facilities and run the marinas as businesses. As with any business, marina operators expect to make a return on their investments.

At the same time, the public is provided with marina services, and a percentage of sales is paid to the Corps as rent. The Corps returns 75 percent of the rent money to local governments for schools and roads. The remaining 25 percent is divided between the U.S. Treasury and the Corps.