THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, July 6, 1995 TAG: 9507060365
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY LANE DEGREGORY, STAFF WRITER
DATELINE: WANCHESE LENGTH: Long : 113 lines
North Carolina's seafood park never has been able to support itself.
Taxpayers subsidized the Outer Banks-based facility with $45,782 last year. In 1993, the state spent $59,662 bailing out the waterfront property. Legislators have appropriated $216,800 for the park over the next two years.
But with three new businesses coming aboard, two additional buildings under construction and at least one more contract pending, the leader of the Wanchese site said Wednesday that business just might break even this year.
Instead of being scorned as a monetary sink hole, the 69-acre park finally may be able to turn the tide toward financial independence.
``I don't see any reason why we couldn't bring in enough money to meet our expenses this year,'' Seafood Industrial Park Director Rodney Perry said outside his Wanchese office, where workers were constructing the park's first new buildings since 1990.
``We're very close to being able to support ourselves now. We only used $4,631 in state funds this year. The rest of the bills, we paid ourselves.
``Our goal is to not use any state money unless we absolutely have to,'' Perry said. ``I feel great that the state has given us an appropriation. It's sure nice to have those funds as a cushion.
``But we hope - and plan - to be able to support ourselves with all this additional rental income. We want to be able to send the state money back to the state.''
North Carolina Senate President Pro Tem Marc Basnight of nearby Manteo was instrumental in getting state funds reallocated for the seafood park. His spokesman, Bret Kinsella, said Basnight hoped the facility could become self-sufficient. But he also realized the need for continued state support.
``It's going to take longer than one year for them to be self-supporting,'' Kinsella said Wednesday from his Raleigh office. ``The key thing is to keep that park up and going.''
Built in 1980 with $8.1 million in federal and state funds, the Wanchese seafood park was touted as the hope for the future of the area's commercial fishing fleet - and the provider of hundreds of seafood processing jobs.
State lawmakers authorized the project in preparation for two rock jetties that Congress had been expected to authorize at Oregon Inlet. The seawalls were expected to slow shoaling at the treacherous entry to the Atlantic. Their addition was projected to attract dozens of new fishing trawlers.
But the proposed jetties were swept away in a tide of red tape.
The commercial fishing fleet continues to flounder around the ever-shallowing inlet.
Almost 15 years after its initial construction, the park remains about half full.
That, Perry said, is the best it's ever been.
``We've had three new businesses sign on since spring. And two new buildings began being constructed this week,'' Perry said from in front of a wooden-framed warehouse workers spent the past four days erecting.
``All this recent activity is very encouraging. One of the best things that can happen out here is for building to continue. There's no question that this is the most full we've ever been.''
Of the 29 lots available for leasing, all but eight are spoken for, Perry said. By summer's end, 13 businesses will be operating from the state seafood park. About 70 people - 20 more than six months ago - will be employed at the facility full-time.
Seafood Park Authority member Russ Langley predicted that the park will operate in the black for the first time this year.
``We've rented all our harbor-front properties. Now, they're beginning to build in new areas,'' Perry said proudly. ``We're going to work hard to keep this momentum going.''
None of the three new businesses that have signed up for park space since spring sell seafood. In 1993, the General Assembly passed a law expanding the scope of the park to try to attract new tenants. Instead of just leasing land to seafood processing plants, park officials can now rent to marine industries, too.
The seafood park leases waterfront dock space for 26 cents per square foot. Nonwaterfront property rents for 20 cents a square foot. Businesses build and own their buildings. They lease only the land. If they leave, they can sell the buildings to another owner or back to the state. If they fail to pay rent, their buildings revert to the state.
Top Fin Ltd., which opened in December 1993, is the lone seafood enterprise at the 69-acre facility.
Other renters include an engine and propeller shop, marine maintenance center, welding business and a commercial fishing supply.
Bay Country Industrial Supply of Easton, Md., is scheduled to open a retail shop and warehouse at the seafood park next month. Owners began erecting a 4,000-square-foot wood and metal building last week near the park's administrative offices. They plan to sell waxed seafood packing boxes, construction fasteners and nail guns from their new outpost.
``We've been doing business on the Outer Banks for years. And we finally decided we needed a closer location to that area to service some of the fishermen we deal with in Wanchese and Hatteras,'' Bay Country President Kim Kaestner said from her Maryland office Wednesday.
``This will be our first outlet in North Carolina. We've been shipping fish boxes by truck down there. But there's a real need for a local warehouse.''
The seafood park's other new building is owned by Mike Keller, who runs a rope, fishing net and marine supply shop in Manteo. His Wanchese facility will primarily be a warehouse, Perry said. The 10,000-square-foot structure will be near the park's wastewater treatment plant.
Coastal Contractors, an Outer Banks business that moved into the state seafood park in May, is shipping concrete from the former King Crab Seafood building.
An additional renter, Perry said, signed a contract to lease the old ship lift.
``More tenants means more credibility for this park,'' Perry said. ``We're getting there, at last. We're just thrilled with all this recent growth.'' ILLUSTRATION: Color photo
DREW C. WILSON/Staff
Rod Perry, above, executive director of the Wanchese park (below),
says additional tenants mean the park is close to being able to
support itself.
by CNB