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Banner file photo/Sowers
Chuck Lagasse |
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Wharf sale is off
By Pru Sowers
Banner Staff
PROVINCETOWN — A deal by a major developer to purchase Fisherman’s Wharf — a deal the town had been hoping would stimulate much-needed economic development — is dead.
The developer, New England Development, issued a short statement Tuesday saying the company, led by Steve Karp, had decided to pull out of a purchase and sale agreement signed back in February. The wharf was on the market for $8 million and the negotiated purchase price with New England Development was $6.5 million, according to one of the wharf owners, Vaughn Cabral.
“In light of the current economic environment and after an extended period of due diligence on the potential expansion of the marina on Fisherman’s Wharf in Provincetown, New England Development has decided not to pursue the purchase and redevelopment of Fisherman’s Wharf,” according to a press release sent by Deborah Black, vice president of marketing and public affairs for New England Development.
“It was a casualty of the economy,” said John Ciluzzi, a broker from Commercial Realty Advisors representing the seller, Cabral Enterprises. “Unfortunately, when you’re dealing with a transaction of this magnitude, you’re pretty vulnerable to the front lines of the economy. The sale of Fisherman’s Wharf needs pretty substantial capital to deal with the permitting process in a difficult credit market.”
The evolving redevelopment plan had called for expanding the facility into a 350-slip marina, with the possibility of adding ancillary services related to recreational boating. A team led by Newburyport developer Chuck Lagasse had spent the last several months doing due diligence on the feasibility of the project, including meeting with numerous town boards to see if they would support it. The department of public works had also worked closely with the project team to assure them the wharf could hook into the municipal sewer system.
Town Manager Sharon Lynn said Lagasse called her Monday to give her the bad news. She said it was “extremely disappointing” because the town had been looking forward to having more visitors to the town’s harbor.
“The numbers didn’t work and [New England Development] couldn’t go forward. It’s not the right time,” Lynn said, adding, “It’s not totally unexpected with the economic conditions. It’s hitting not just us but everyone else.”
Board of selectmen chair Michele Couture called the deal cancellation “hugely disappointing.” The increase in visitors the expanded marina could have brought to Provincetown would have been an economic shot in the arm for this vacation resort, which has struggled over the past several years to compete with other tourist destinations.
“It would have been extremely beneficial to the town,” Couture said. “It would have been very complimentary to MacMillan Pier,” the town-owned commercial wharf.
Cabral Enterprises, which is owned by Vaughn and Robert Cabral, had originally hoped to sell Fisherman’s Wharf to the town. However, a $3 million bid put together by former town manager Keith Bergman was too far below the asking price for any negotiations to continue, the Cabrals said at the time.
Vaughn Cabral said he was notified Monday about the project cancellation. He said he and his father would continue to operate the mostly recreational seasonal wharf as they have in the past but they are unsure whether to keep it on the market at this point in time.
“It’s all economics, where the economy is. We can thank George W. Bush for that,” he said.
New England Development also recently stopped construction on a high-end residential complex on Nantucket. Exterior construction on the White Elephant Hotel Residences on South Beach Street had halted for the summer so as not to affect tourists. However, when that permit prohibition was lifted in September, construction did not resume.
In addition, the general contractor on the job, Statewide Construction Group, asked to be removed from the building permits for the project on Oct. 6 because, “the owner has opted to delay the completion of [four] buildings at this time.”
psowers@provincetownbanner.com
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Nov 20th, 2008