Business

‘Falls of Clyde’ Goes on Auction Block

February 7, 2019, 2:22 PM HST
* Updated February 8, 8:03 AM
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The Hawai‘i Department of Transportation (HDOT) Harbors Division is notifying the public that the Falls of Clyde vessel is being offered for sale by auction, pursuant to Hawai‘i Revised Statutes 266-27. The 280’ steel-mast sailing vessel is currently docked at Pier 7 in Honolulu Harbor.

Falls of Clyde. Wikipedia image.

The auction process begins Feb. 7, 2019. Potential bidders may inspect the vessel and its contents at their own risk on Friday, Feb. 15, 2019, at 9 a.m. at Pier 7 in Honolulu Harbor. Sealed bids must be received no later than Feb. 28, 2019, at 11 a.m. Public announcement of the bids will be made later that day.

See the Notice of Public Auction for more information and details regarding the requirements for bidders by clicking here.

Background

HDOT Harbors Division has supported the Friends of Falls of Clyde by not charging any rent or fees for the use of Pier 7 since April 2009.

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On May 16, 2016, HDOT Harbors Division sent the Friends of Falls of Clyde a written 30-day advance notice of termination for its gratis (no rent) revocable permit for the berth at Pier 7; the permit terminated on June 15, 2016, and the Friends of Falls of Clyde were required to remove all its property from the premises, including its vessel by July 16, 2016.

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On Aug. 10, 2016, HDOT Harbors Division posted and personally served a notice of illegal mooring requiring the Friends of Falls of Clyde to remove it from Pier 7 within 72 hours; the notice also informed the Friends of Falls of Clyde that failure to remove the vessel within 72 hours would result in impoundment of the vessel.

On Aug. 13, 2016, as the Falls of Clyde remained moored illegally, HDOT Harbors Division posted and personally served a notice of impoundment of the Falls of Clyde.

On Aug. 16, 2016, the Friends of Falls of Clyde requested an administrative hearing to contest the basis of the impoundment; the hearing was held on Aug. 24, 2016. The hearings officer ruled in favor of the HDOT Harbors Division.

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In December 2018, the vessel began taking on water in the stern. A hole was discovered in the stern ballast tank causing it to flood. The hole was patched.

In early January 2019 the vessel began to list heavily to port. A hole was found on the port side, which began flooding the vessel. The hole was patched.

Later in January, HDOT observed the vessel beginning to sink. Further inspection revealed the vessel taking on water. HDOT received an emergency procurement to pump the water from the vessel and make repairs. Multiple holes and cracks in the hull were patched.

It is evident the vessel is deteriorating due to the lack of proper maintenance. The condition of the vessel is at a critical point which jeopardizes the vessel’s ability to stay afloat and threatens the safety of Honolulu Harbor.

For more than a decade, HDOT has supported the Friends of Falls of Clyde and its supporters on numerous attempts to raise funding and repair the vessel, all of which have been unsuccessful.

HDOT is moving forward with the auction proceedings, in part, to protect Honolulu Harbor, which is vital to the shipping and cargo industry delivering items such as food, medicine and supplies to the state. Hawai‘i imports more than 80% of all goods consumed by residents and visitors, and of that, more than 98% flows through Honolulu Harbor and the hub and spoke commercial harbor system.

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