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.
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