Schumer: Feds Should Give Profit From Ferry Sale Back to Creditors

SCHUMER: FEDS SHOULD GIVE PROFIT FROM FERRY SALE BACK TO CREDITORS

US Marshals Slated to Receive Hundreds of Thousands of Dollars for Auctioning Ferry Vessel

Schumer Urges US Marshals To Turn Funds Back Over To City of Rochester, Ferry Customers

US Senator Charles E. Schumer sent a letter to the Director of the US Marshals Service, Benigno Reyna, today urging him to return any profit collected from the sale of the Fast Ferry to local creditors, including the City of Rochester and ticket holders who may not have been reimbursed for their purchases. Schumer's letter follows recent reports indicating the US Marshals Service stands to receive a substantial auction fee of over $338,000.

"We have fought to get Fast Ferry service restored as soon as possible," Schumer said. "The next step is to ensure that the Marshals do not receive money that could be refunded to customers who bought tickets for the ferry but were unable to use them. These funds could also be allocated to the City of Rochester, which will try to revive the ferry route to Toronto. We should ensure this money is spent where it is needed most: returning it to paying customers and helping to get the ferry up and running again."

According to published reports, the ferry vessel will be auctioned on February 28th, with a minimum bid of $22.5 million. The U.S. Marshals Service, which will conduct the sale, is entitled to an auction fee. The agency will make 3 percent on the first $1,000 and 1.5 percent after that, meaning that if the ship sold for the starting bid of $22.5 million, the Marshals Service would get nearly $338,000. In his letter, Schumer asked that any profit made by the Marshals Service for conducting this sale be made available to creditors, including ticket holders who have not been reimbursed for their purchase, and the City of Rochester.

Schumer has long been an advocate for a successful fast ferry in Rochester. Schumer has weighed in with federal customs officials on issues ranging from truck transport to staffing. He has helped to secure $6.6 million for the ferry project, including $4.5 million from the 2002 federal Ferry Boat Discretionary Fund that was used for infrastructure improvements to the river wall, the terminal, and the area around the terminal. Last month Schumer went to Rochester and urged the City Council to act swiftly to approve Mayor Johnson's plan to get the ferry up and running and said that he would provide whatever help and support necessary from Washington. Schumer will continue to work with the Australian lender to ensure the two countries are working well together and the fast ferry plans stay on course.

http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2005/PR40065.Ferry11105.html