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    Wednesday, May 08, 2024

    Amistad transfer bill foundering

    A plan by seven New Haven-area legislators to have the state Department of Transportation oversee the operation and maintenance of the schooner Amistad appears to be in jeopardy following opposition to the idea by both DOT Commissioner James Redeker and the state Office of Policy and Management.

    HB 6712, "to ensure that the Amistad, Connecticut's official state flagship be operational and maintained in excellent condition," has now been transferred from the General Assembly's Transportation Committee to the Appropriations Committee for consideration.

    In written testimony before the Transportation Committee on Feb. 25, Redeker pointed out that last year the General Assembly approved a measure that transferred DOT maritime functions to the Connecticut Port Authority as of Oct. 1, 2015. At that point, he said, the DOT will not have the maritime staff to maintain the Amistad.

    OPM submitted testimony that said while it recognizes "the immense cultural and historical importance of Connecticut's official state flagship," it cannot support the bill.

    It pointed out that the Amistad "has been embroiled in significant financial and legal controversy for a number of years, and Amistad America Inc. is currently involved in bankruptcy litigation and in receivership."

    "What remains unknown, is how much debt and other monies are - or will be - owed by Amistad America Inc. once legal proceedings and overall financial calculations have concluded," it stated.

    Questions have been raised about how the ship's financially troubled owner, Amistad America, spent more than $9 million in state funding and lost its tax-exempt status for failing to file taxes for three years. The ship has $2 million in debt and the maritime liens placed on it could make it difficult to transfer ownership to a new entity. The state continues to give the ship about $400,000 a year in funding.

    OPM added that it is possible additional parties could file new grievances against Amistad America, "adding to its already substantial financial liability."

    The OPM letter also pointed out that the ship's court-appointed receiver, Katharine Sacks, currently is working with a panel of experts to come up with a plan for the future of the ship. It said those recommendations should be taken into account.

    OPM said the "most prudent course of action" would be to clearly identify and resolve the ship's debt and consider Sacks' recommendations before "burdening the Department of Transportation with unknown debt and additional maintenance costs."

    The Amistad is currently at Mystic Seaport for maintenance but is slated to be docked at the Custom House Pier in New London this summer and fall, and be on hand at key maritime festivals.

    j.wojtas@theday.com

    Twitter: @joewojtas

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