The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, March 24, 1996                 TAG: 9603240065
SECTION: LOCAL                    PAGE: B8   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   54 lines

ALLEN ANNOUNCES SALE OF SHIP OF STATE N.C. BUSINESSMAN BUYS THE STATE YACHT CHESAPEAKE AS GOVERNOR FULFILLS PROMISE.

It's anchors aweigh for the state yacht Chesapeake.

Gov. George Allen on Friday announced the sale of the 28-year-old vessel to Raleigh construction executive J.W. Grand for $106,500. He was making good on a campaign promise to sell the yacht.

Grand will take immediate possession of the yacht and plans to use it for recreational purposes, said Allen spokeswoman Julie K. Overy.

Allen had depicted the Chesapeake - a gift to the state in 1974 from a retired northern Virginia banker - as a pricey and inappropriate nicety.

``We are pleased today to finalize the sale of this yacht and cast off this symbol of government excess and unnecessary perks,'' Allen said.

Allen never used the yacht, which was operated by the Virginia Marine Resources Commission. Under previous governors, the yacht was used to woo economic development prospects.

The 57-foot, aluminum-hulled Chesapeake is the third gubernatorial trapping sold off by Allen.

General Assembly Democrats, who tried - and failed - to block sale of the Chesapeake, forced Allen to dispose of a 1981 twin-engine Bell 222 helicopter. It went for $249,000 to a California doctor.

And the gubernatorial limousine - a 6-year-old black Lincoln Town Car - was sold to a Virginia Beach man for $28,000.

``He's lost his air force, and now he's lost his navy,'' Democratic spokeswoman Gail S. Nardi said of Allen. ``I guess that leaves him with his boots and saddle.''

Overy countered, ``It is obvious they are bitter that the governor has sold the last of the toys acquired under Democrat-controlled legislatures.''

Grand's secretary confirmed that he had submitted the winning bid.

Of 40 bids filed with the Department of General Services, Grand's was $16,000 better than the next highest. The state had hoped to get $100,000 to $500,000 for the yacht, which cost $58,000 to operate in 1993-94.

The Chesapeake was based on the Eastern Shore, but with the planned sale, was moved to a yacht club in Smithfield, where it was docked at no cost to taxpayers, Overy said.

The Chesapeake was formerly named the Virginia Belle III. Built by the Burger Co. of Wisconsin, it was a freebie from Edward Holland, former chairman of First Virginia Bank.

His son and namesake represented Arlington in the Senate until his retirement in January. by CNB