PHILADELPHIA (AP) — The conservancy that oversees a storied but aging ocean liner and its landlord have resolved a years-long lease dispute, allowing a Florida county to transform the historic ship into the world’s largest artificial reef.
A federal judge in June had ruled that the SS United States Conservancy had until Sept. 12 to present plans to move the ship, a 1,000-foot ocean liner that still holds the transatlantic speed record it set more than 70 years ago. That deadline came and went after the conservancy filed a lawsuit accusing Penn Warehousing of sabotaging its efforts to sell the ship.
The conservancy had reached a tentative agreement with Okaloosa County on Florida’s Panhandle coast earlier this month, a deal that was contingent on resolving the lease dispute through court-ordered mediation. The deal resolving that dispute was announced Friday.
On Saturday, officials from the Conservancy and the county gathered at the pier in Philadelphia where the ship is moored for a small ceremony to transfer title. The deal with Okaloosa County, however, still needs final approval from a federal judge, the Philadelphia Inquirer reported.
Okaloosa officials plan to sink the ship and create what supporters hope will be a barnacle-covered star in the county’s constellation of more than 500 artificial reefs, making it a signature dive attraction that could generate millions of dollars a year in local tourism spending for dive shops, charter fishing boats and hotels.
“We can tell you that you will not be lost, you will not be forgotten, you will no longer be neglected and mistreated,” said Thomas Watkins, a conservancy board member, as he bid the ship farewell. “You will be rightly honored, cherished and loved in a new home and in a new dimension. You will no longer sail the seas, but you will be surrounded and cherished by them.”
Officials have said the deal to buy the ship could cost more than $10 million. The lengthy process of cleaning, transporting and sinking the vessel is expected to take at least 1.5 years.
The lease dispute stemmed from a decision by Penn Warehousing in August 2021 to double the ship’s daily berth fee to $1,700, an increase the conservancy refused to accept. The company, through its lawyers, said it wanted access to the berth again so it could replace the ship with a commercial client that would bring jobs and tax revenue to the city.
When the conservancy continued to pay the previous fee, set in 2011, Penn Warehousing terminated the lease in March 2022. After much legal wrangling, U.S. District Judge Anita B. Brody held court in January but also encouraged the two sides to settle rather than leave it to her.
Ultimately, she ruled that the conservancy’s failure to pay the new rate did not constitute a breach of contract or entitle Penn Warehousing to damages. However, she ruled that under Pennsylvania contract law, the mooring agreement could be terminated at will with reasonable notice.
The SS United States, christened in 1952, was once considered a beacon of American engineering, and also served as a military ship capable of carrying thousands of troops. On its maiden voyage in 1952, it broke the transatlantic speed record in both directions, when it averaged 36 knots, or just over 41 mph (66 km/h).
During that voyage, the ship crossed the Atlantic Ocean in three days, 10 hours, and 40 minutes, beating the RMS Queen Mary by 10 hours. To this day, the SS United States holds the transatlantic speed record for an ocean liner.
The SS United States became a reserve ship in 1969 and later passed to several private owners who hoped to redevelop it. But they ultimately found their plans too expensive or poorly timed, leaving the ship stranded for years on the Delaware River south of Philadelphia.