Jane Flasch (Rochester, N.Y.) - The new owner of Rochester's fast ferry, the German company FRS, has agreed to purchase the ferry for $30 million. The city expects to close the deal and have the cash by the end of April.
The ferry left the Port of Rochester for the final time in December, but the city actually broke off the deal with potential buyer Euroferries, six months earlier.
The following spring and the pending start up of the European ferry season prompted a bidding war of sorts.
Unlike start-up Euroferries, which had a previous deal for the ferry, FRS is an established player in the European ferry market. It runs ferries between Denmark and Germany, in Spain and Morocco.
The $3 million down payment from FRS has already cleared the bank; the remaining $27 million will be paid in cash.
The price is higher than the deal struck with Euroferries. However, the city will net at least $100,000 less after paying broker fees and costs for daily maintenance and insurance. That added up to $2,400 a day which first buyer Euroferries had agreed to pay.
Bottom line, the city expects to clear $20 million. That's enough to cover half the original loan that taxpayers are saddled with for the venture. Or, that $20 million could cover the entire projected deficit in the city's budget this year.
Mayor Bob Duffy said, "The most important thing is for us to pay down that debt."
The German company has the money. It has already taken the vessel on a sea trial and given an OK on final inspection.
FRS does get a final” walk-through” before the deal closes. Then they’ll take possession in Halifax. This is good because city won’t have to make the trek overseas to deliver the ferry, which limits the potential for mechanical or other issues.
Both the Ferry Board and City Council have to approve the deal. No problems expected with that, then FRS has to come up with the cash.
