Bid dispute on Lake Pleasant marina intensifies
Complaint made to feds
Scott Wong
The Arizona Republic
Jul. 5, 2006 12:00 AM
A drawn-out legal battle is being waged over whether Maricopa County properly chose the builder and operator of a second marina at Lake Pleasant, threatening to stall the $20 million project.
The developer of the planned Scorpion Bay Marina & Yacht Club says that by January, hundreds of boat slips, a waterfront restaurant, business center and convenience store will dot the western shore of Arizona's second-largest lake.
But the project likely will face delays because of litigation from the owner of a rival marina that claims the county illegally barred it from bidding for the job. advertisement
The county, which runs Lake Pleasant Regional Park in far north Peoria, denies any wrongdoing.
County supervisors approved the privately financed project in December, handing Illinois-based Skipper Marine Development and other investors a long-term deal to build and manage the 146-acre marina.
But because the park sits on federal land, the Bureau of Reclamation - the arm of the U.S. Department of the Interior that manages regional dams, power plants and canals - still needs to give its stamp of approval.
Earlier this year, a county Superior Court judge threw out an appeal by the rival marina that challenged the county's handling of the bidding process. Lawyers for Pensus Group, the Phoenix-based investment firm that owns and operates the 13-year-old Pleasant Harbor Marina, have appealed that decision to a state appellate court.
Meanwhile, another Pensus lawyer, who formerly served as the Bureau of Reclamation's chief of staff, is raising the issue with federal officials.
In an 18-page letter to the bureau, Washington, D.C.-based attorney Steven Richardson contends that a clause in the county's request for proposals for Scorpion Bay violated federal laws that require full and open competition.
The provision banned Pensus and other potential bidders that had any business interests next to or around the park.
"For us, not being able to bid was unfortunate," said Cris McSparen, vice president of operations for Pleasant Harbor. "It just sat wrong with everyone."
But Assistant County Manager Bill Scalzo, who heads the Parks and Recreation Department, maintains that his agency has done nothing improper in submitting its request for proposals and that it has been vindicated by the lower court's decision.
He says that the competition clause was included to prevent the monopolization of boating services at the 10,000-acre lake, such as docking fees and watercraft rentals.
"A sore loser who can't compete doesn't want competition," said Scalzo, who worries that Pensus' persistent legal efforts could stall the project. "Competition is the American way."
The Bureau of Reclamation will be addressing comments from Pensus, the city of Peoria and others in a preliminary environmental review that will be released later this month, says Sandy Eto, who is overseeing the project for the bureau. But she says that any issues regarding the bidding process are beyond the scope of the review.
After local agencies and residents comment on the draft document, the bureau will determine if a more in-depth review is needed or if the project can move forward.
While the county and Skipper Marine butt heads with Pensus, all parties agree that the new marina will provide more services and amenities to keep up with the region's booming population and the lake's growing popularity.
During the fiscal year that ended in June 2002, the park saw 529,366 people pass through its gates.
Last year, it had 586,235 visitors. And while figures haven't been tallied for fiscal 2006 yet, park officials expect the number of visitors to eclipse the 600,000 mark for the first time.
Scorpion Bay will benefit all county residents, Scalzo says. The county's 35-year agreement with Scorpion Bay ensures the county will receive at least $4 million in revenue over the life of the deal.
Mike Pretasky Sr., chief executive of Skipper Marine, says Scorpion Bay will be an upscale development with reasonable pricing and broad appeal to families.
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