Marina Dock Age

The City Port Authority in Ashland, Tenn., voted to terminate its lease agreement with Harpeth Shoals Marina, effective June 1, according to a May 5 report in The Tennessean.

Late last year, the port authority gave the marina’s lender, Bank of America, time to address several issues that were required by the U.S. Army Corps of Engineers, which granted Harpeth Shoals a permit to operate the marina.

Harpeth Shoals had previously defaulted on payments to Bank of America, and a receiver was appointed for the marina last May.

“Harpeth Shoals has not performed the covenants in the lease agreement such as not paying its taxes, not paying its insurance, and not managing it,” said Jerry Hamlin, the port authority’s chairman.

The port authority has petitioned the court to keep the marina open by asking the receiver to appoint a temporary manager to operate it until Bank of America can work out a permanent sale. The case will go before the courts in late May, and Hamlin hopes the court will approve a temporary manager so more slips can be rented out.

The Corps had indicated that if the port authority terminated the lease agreement, the PSLs (permanent slip lease) for boat slips would not be recognized. About 50 boaters currently have PSLs.

In late April, the port authority received a letter from the Corps saying that boat slips can only be rented for a year, and no existing PSLs would be honored.

“We are not unsympathetic to the plight of those members of the public who were induced to purchase PSLs by the unauthorized promises and grandiose representations of Harpeth Shoals Marina,” the letter from the Corps stated.

Hamblin said he couldn’t say what that will mean for the PSL holders. He said whatever happens will be between PSL holders and Harpeth Shoals, John Rankin, the marina developer, or the bank.