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Marina investor stepping down
Published November 7, 2009
FREEPORT — The Freeport marina’s major investor says he is stepping down as leader of the development’s parent company because of frequent communication breakdowns, but economic development officials say it is because they could not come to terms on a deal to sell him some waterfront property.
Walker Royall said he will still develop the marina, but Freeport Marina L.P. partner Sun Resorts Co. will handle talks with the Freeport Economic Development Corp. going forward. Sun Resorts Co. is expected to operate the marina upon its opening.
Economic development officials say they have never had dealings with Sun Resorts Co. officials before.
Royall, a Dallas developer, said the corporation has failed to transfer the old TriCo Marine property to his holding company, stopped paying rent on land required by a lease agreement and is two years and counting behind schedule on completion.
“I’ve tried to be a good citizen and a good partner on this deal for seven years, and it is true that I can’t work with the current EDC on this deal any further, I’m sorry to say,” Royall said. “I wish the current EDC the best in their endeavors to move this project forward, but they’ve put me into a box.”
Royall’s contention board members are uncommunicative comes amid a breakdown in negotiations over the sale of the old TriCo property, Tarver said.
Royall could not be reached Friday to confirm Tarver’s assertion.
The TriCo Marine property sits between Western Seafood Co. and the dry stack boat storage facility and is declared pivotal to the marina project’s success. Without the land, the forklift used to transport boats could not get out of the boat storage building, Tarver said.
Royall said Thursday the marina project’s agreement states the TriCo Marine property had to be in his company’s possession by September 2007. Tarver said the corporation did not take title of the property until 2008.
The marina survived six years of political power struggles, and numerous cost overruns and legal battles have pushed its expected cost to $10 million.
The agreement was the corporation would obtain and sell Royall waterfront property and pay rent on it during construction. Royall would turn around and lease the marina project from the corporation for 40 years.
The corporation purchased the property last year for about $500,000 as a move to end an almost six-year legal dispute. In 2006, the corporation agreed to pay to relocate Trico Marine to a new site inside the tidal gate on the Old Brazos River after receiving a $300,000 interest-free loan from City Council.
In October, the corporation transferred the former TriCo property to the city for $950,000 to obtain capital for the marina project’s completion, Tarver said. The city is holding the land as collateral and is expected to return it upon repayment by the corporation, Tarver said.
“We did exactly what Walker asked us to do,” Tarver said. “We went out and we got more money. We didn’t sell the property to someone else. We thought we were following what he wanted us to do.”
Even with the escalating price tag and Royall’s decision, the venture will continue, Tarver said.
“The truth of the matter is, the progress of the marina must go on,” Tarver said. “And we need money to finish the project.”
Royall wished the corporation luck in its efforts.
“I hope, for the sake of the citizens of Freeport, that this gets worked out and completed quickly and efficiently and that there’s no further waste of taxpayer money,” he said.
Nathaniel Lukefahr covers Freeport for The Facts. Contact him at 979-237-0151.
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