The failure to initiate the new ferry service as recently announced by the City of Glen Cove Mayor Pamela Panzenbeck will eventually result in the city having to pay back the Federal Highway Administration for $16.6 million in grant funding.  These dollars were approved in 2003 for construction of a new ferry terminal. It was to support a new ferry service from Glen Cove to the downtown Manhattan financial district ferry landing at Pier 11.

Under the Master Grant Agreement between the City of Glen Cove, the Federal Highway Administration and New York State Department of Transportation, Washington has no choice but to ask for its money back since the investment did not go into transit service as intended.  The federal and state Offices of Inspector General will be monitoring both the FHA and NYS DOT to insure that they enforce this language contained in the Master Grant Agreement, which includes the return of the funds for a project that did not meet its intended purpose.

Congress member Tom Suozzi, Sen. Chuck Schumer and Sen. Kirsten Gillibrand are not transit priests.  They cannot offer absolution to the City of Glen Cove in not paying the $16.6 million back to the federal government.  Suozzi, Schumer and Gillibrand can’t use the powers of their office to make FHA or NYSDOT an offer they “can’t refuse” and forgive the $16.6 million.

Since the City of Glen Cove has a limited budget and cash reserves, it would be a major burden to pay back the $16.6 million out of the current or next year’s adopted budget.  It may be necessary to float a 20-year bond to raise the $16.6 billion.

Once paying back FHA and NYSDOT, the City of Glen Cove is free to do what they want with the facility.  Why not afford private ferry operators who offer sightseeing, lunch, dinner and wedding cruises on Long Island Sound an opportunity to rent this facility?  The same holds true for fisherman and small cargo ships.  Revenues generated could help offset the annual bond service payments.

The The buck stops at the desk of Mayor Pamela Panzenbeck’s Office.  It is time to bite the bullet and resolve this issue in 2024.  Do not kick the can down the road for the next mayor to resolve as your predecessors have done.

Sincerely,

Larry Penner

Larry Penner is a transportation advocate, historian and writer who previously served as a former Director for the Federal Transit Administration Region 2 New York Office of Operations and Program Management.