THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, January 6, 1995 TAG: 9501060508
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 45 lines
A bidding war has erupted for a parcel of property pivotal to the construction of the second span of the Chesapeake Bay Bridge-Tunnel.
F. Wayne McLeskey Jr., a Virginia Beach developer, has submitted a higher bid than the Chesapeake Bay Bridge and Tunnel Commission, which needs the 36-acre site as a construction staging area. The parcel on Little Creek belongs to Jonathan Corp., a ship-repair company undergoing Chapter 11 bankruptcy proceedings. The property is being sold as part of the bankruptcy proceeding.
The commission had agreed in mid-December to pay $4 million for the land. McLeskey offered $4.2 million for the property. His bid was filed with the court Dec. 30.
Because Jonathan's sale of assets must be approved by the bankruptcy court - to ensure that debtors and creditors recover as much money as possible - a hearing has been set up for Wednesday. Federal bankruptcy Judge Hal J. Bonney will be asked to decide whether to honor the purchase offer from the commission or to accept new bids for the property.
``Obviously the tunnel commission would prefer that their contract be accepted,'' said C. Grigsby Scifres, who represents Jonathan. ``The debtor has a fiduciary obligation to get the best price for its property.''
James K. Brookshire, executive director of the Chesapeake Bay Bridge and Tunnel District, which operates the tunnel for the commission, said Thursday, ``We still expect to obtain the property.'' When asked how much the commission was willing to pay for the property, he said: ``No limit.''
The counterbid of $4.2 million was not a spontaneous decision, said McLeskey, who owns Lynnhaven Marine and Boatel, as well as other property. He had talked to Jonathan Corp. President Gary Bowers six months ago about the property. He made his bid upon learning of the commission's offer.
``I'd like to see the property stay on the tax rolls in Virginia Beach if possible,'' McLeskey said. ``We have enough property not producing any taxes for the city.''
He said he did not have any plans that he could reveal for the property's use. by CNB