A riverboat company that formerly operated Arkansas River tours from North Little Rock filed a lawsuit Wednesday in Pulaski County Circuit Court claiming that the city wrongfully terminated its lease in December.
DAM Riverboat Co. was under lease to operate from the city's riverfront and to tie the riverboat Mark Twain to the city-owned tug Patriot that also served as the company's offices, gift shop and event rental space.
North Little Rock Mayor Joe Smith notified the company in December 2015 that the lease was being terminated because of the deterioration of the Patriot, built in 1939, and its risk of sinking. The company was given 30 days, until Jan. 16, to vacate the Patriot and to relocate the riverboat.
The lawsuit, filed by DAM Riverboat Co. and Greenway Dining Club, seeks "all direct and special damages," prejudgment interest, and attorney fees. Greenway is a company purchased by DAM Riverboat in order to obtain a license to serve alcohol and oversee a "nonprofit private club," according to the lawsuit.
The lawsuit states that for the riverboat company to begin operation in 2013, it had costs of about $30,000 in annual insurance, $33,000 annually for its lease-to-own agreement for the Mark Twain, almost $50,000 for equipment and furnishings, and payroll and other expenses.
Jason Carter, North Little Rock city attorney, said Wednesday afternoon that he hadn't reviewed the lawsuit and couldn't comment.
In December 2015, City Engineer Chris Wilbourn said the tugboat's steel hull was "not repairable," adding that its poor condition was due to its age of 76 years. It was later sold for salvage.
The city had granted the riverboat company exclusive use of a specific area of the riverfront in lieu of rent, according to the lawsuit. The city entered a lease agreement in March 2013 for two years, giving the riverboat company the right to extend the lease for three one-year terms. The riverboat and tug were adjacent to the Arkansas Inland Maritime Museum just east of the Main Street bridge.
The riverboat company -- which took its name from the initials of its three partners' first names -- was in its first year of renewal at the time it had to end operations.
Scheduled rentals of the Mark Twain and the adjoining tugboat for private events had to be canceled because of the city's termination of its lease, a company spokesman said in December. Riverboat operations had already been temporarily suspended at that time because of high river levels and rapid currents.
The city bought the Patriot tugboat and the Shipwreck Mary barge in December 2004 for $135,000 to provide a potential dock for river cruise boats. The Arkansas Queen riverboat operated for 61/2 years until January 2013. The Mark Twain began riverboat tours in May 2013. The Shipwreck Mary, having been renamed the Salty Parrot under the Arkansas Queen's operation, sank in March 2009 and was sold for salvage.
Metro on 08/25/2016