Topic:
GRANTS; HARBORS; STATISTICAL INFORMATION;
Location:
AUTHORITIES; HARBORS;

OLR Research Report


November 30, 2005

 

2005-R-0875

BRIDGEPORT PORT AUTHORITY

By: Kevin E. McCarthy, Principal Analyst

You asked for a history of the Bridgeport Port Authority. You specifically wanted to whether it was formed under the special districts statute (CGS § 7-324 to 7-329) or another law, and how it is funded.

SUMMARY

The authority was founded in 1993 under CGS § 7-329a et seq. , which deals specifically with port authorities, rather than the special districts law. Over the past 13 years, the authority has extensively redeveloped the port. Among other things, it has built new facilities for the Bridgeport-Port Jefferson ferry and redeveloped the former Carpenter Technology (CarTech) site. The authority has received capital grants from a wide range of state and federal agencies. It receives most of its operating funds from rents and charges it imposes on users of the port.

BRIDGEPORT PORT AUTHORITY

Bridgeport created the port authority in 1993 to develop the harbor into a port with a wide range of commercial, recreational, and industrial activities. The authority was created under CGS § 7-329a et seq. , which deals specifically with port authorities, rather than the special districts law. CGS § 7-329a et seq. allows the legislative bodies of Bridgeport, New Haven, and New London to establish port authorities. The law gives port authorities broad powers. Among other things, they can enter into contracts and leases; buy and condemn property; issue revenue bonds under the same statutory limitations as municipal bond issues; develop, own, and operate port facilities; and fix rates, fees, and charges for their use; hire staff; and apply for and accept federal funding. The law also exempts an authority's property and bonds from taxation.

In 1993, the city transferred ownership of Water Street Dock to the authority. The purpose of the transfer was to reconstruct the dock and build a terminal on the site for the Bridgeport-Port Jefferson ferry. In 1997-98, the authority built a new access road for vehicles using the ferry, using approximately $ 1. 5 million in state Department of Transportation funds. In 2000-01, the authority repaired and reconfigured the dock, using $ 1. 65 million in federal funding.

In 1999 the authority acquired the 48-acre CarTech property by eminent domain in order to develop a maritime complex. The site, a former steel mill, was polluted with arsenic, lead, chromium, nickel, and petroleum hydrocarbons from releases of fuel oil, among other things. Approximately 23 acres of the site was redeveloped into a shipbuilding facility under a lease agreement with Derecktor Shipyards. Redevelopment costs exceeded $ 18 million dollars, including $ 6. 4 million from the Department of Economic and Community Development, $ 2. 5 million from the Department of Environmental Protection, $ 2. 7 million from the Connecticut Development Authority, and $ 1. 25 million from the federal Economic Development Administration. Another $ 5. 3 million came from Derecktor Shipyards. Among the ships subsequently built at this facility have been six water taxis for use in New York Harbor, a freighter ferry, and two high-speed ferries for use in Alaska. In addition to construction, Derecktor is providing mechanical, interior and routine maintenance for all types of private and commercial vessels. In 2004, Derecktor added a dry dock to expand its ability to do repair work.

In 2001, the U. S. Department of Commerce designated the authority as the grantee for the Bridgeport Foreign Trade Zone (FTZ), which covers all of Fairfield County. Under federal law, FTZs are treated for tariff purposes as though they were located outside of the U. S. Foreign and domestic merchandise may be brought into an FTZ without payment of duty for the purposes of storage, display, manipulation, wholesale sale and manufacture into new and different articles. If the goods are then exported, there is no customs duty on them. FTZ grantees are required to advocate and promote the use of FTZs and subzones. They are also responsible for securing the area, to prevent the unauthorized removal of merchandise from the premises on which appropriate duties have not yet been paid.

In 2002, the State Bond Commission approved $ 2. 5 million in bond funds for the authority for further clean-up at the Derecktor site. In 2003, the authority received approximately $ 3 million in federal funding to improve security at the ferry terminal and at the maritime complex. Among the specific measures funded were new video surveillance systems, fencing, and increased lighting. The funds will also support coordination of security measures at other privately-owned terminals in Bridgeport's harbor.

According to Joseph Riccio, the authority’s executive director, the authority gets most of its operating funds from rents, a surcharge on ferry passenger tickets, and a tonnage fee imposed on freight going through the port. For example, the authority imposes a surcharge on ferry tickets that ranges from 60 cents to $ 2. 75, depending on the type of vehicle and number of passengers it carries. The surcharge generates approximately $ 1 million per year.

The authority is currently working on developing barge feeder service between Bridgeport and the ports of New York and New Jersey. (OLR Report 2002-R-0579 discusses this service. ) It is conducting a study on the feasibility of providing high speed ferry service between Bridgeport, Stamford, and New York. The study is being funding by the Federal Highway Administration. Further information about the authority is available at http: //www. portofbridgeport. com/.

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