Long Beach Takes Control of Queen Mary in Bankruptcy Court • Long Beach Post News


The move means Long Beach will have complete control of the ship and will be tasked with deciding how much to invest in critical repairs for the aging ship. An April inspection report found the ship would require at least $ 23 million in critical repairs to remain viable for the next two years.

Long Beach City Council on Tuesday will consider immediate approval of $ 500,000 in Tideland’s Critical Infrastructure funds to begin testing and designing security projects. Officials said the city will work to find other funding options to cover at least $ 5 million for immediate repairs.

“We will do our utmost to preserve this historic landmark and are incredibly grateful for this opportunity,” said Mayor Robert Garcia in a written statement.

The lawsuit comes when the current tenant filed an application with the bankruptcy court to reject the lease on Friday.

Ship operator Eagle Hospitality Trust filed for Chapter 11 bankruptcy in January with a total of more than $ 500 million in debt. The lease for the ship was due to be auctioned but received no bidders, while the city was embroiled in a lawsuit with former operator Urban Commons over a litany of failed leases.

Among the problems, the city said Urban Commons failed to complete more than $ 40 million in critical repairs, causing “significant problems and damage” to the historic ship. The company also owes the city nearly $ 1 million in fees and unpaid rent.

Long Beach deputy city attorney Richard Anthony said Friday that the handover of the lease will not affect the city’s claims for damages against the former operator and that potential damage the former operator owes the city is still under scrutiny by the bankruptcy judge.

Long Beach owns the Queen Mary, but has leased the ship to a number of operators for decades who failed to make the ship profitable and went bankrupt.

A marine survey published in 2017 found the ship could need nearly $ 300 million in critical repairs to remain viable for the next several years. The city this year issued $ 23 million in bonds and Tidelands funds to ex-operator Urban Commons to repair some of the most critical repairs listed in the marine survey, but the funds ran out before many the repairs were complete, and now the latest report says most of the urgent structural work has not even started as the ship continues to deteriorate.

The report from a city-hired shipbuilding and shipbuilding company called Elliott Bay Design Group, which inspected the ship on April 28, says the ship is prone to flooding or possibly even capsizing if critical work is not addressed.

While advice on Tuesday become Consider an emergency $ 500,000 in funds that city will need significant financing repair critical Repair including Repair of bulkheads, removal of lifeboats, temporarily Bilge pumps and the installation of an emergency generator.

The ship will remain closed to the public while repairs are complete, officials said. The city council will hold a study session at a later date on options and other strategies for preserving the ship.

As part of the deal, Long Beach Likewise take control of the Surroundings 40 hectares Properties that officials said have great potential for development.

“We know this is a big endeavor and we are committed to doing what is right for our community that has the Queen Mary in their hearts,” said Councilor Cindy Allen, District 2 of whom the ship is part of, said councilor Cindy Allen in a letter Explanation.

The city will also consider a $ 2 million contract with Evolution Hospitality, a third party provider who managed the ship is daily Operations of the past decade.

Long Beach last had control of the Queen Mary in 1978, while Long Beach harbor was owned until 1993.

Long Beach may be exploring now Control of the Queen Mary shifted and the surrounding land back to the city’s Harbor Commission, which oversees the port of Long Beach.

The Queen Mary has served as a tourist attraction and hotel since arriving in Long Beach in 1967.


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