A three-judge panel has rejected the Village of Bald Head Island’s request to beef up pricing protections and other safeguards for users of the only ferry service to the Brunswick County island.
In its Nov. 19 opinion, the North Carolina Court of Appeals kept in place regulatory conditions included in an October 2023 order by the North Carolina Utilities Commission approving the sale of the privately owned ferry system.
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In summer 2022, current owner Bald Head Island Limited petitioned the commission to approve the sale of the ferry and tram operation to SharpVue Capital, LLC, a Raleigh-based investment company.
The village, Bald Head Island Association and Bald Head Island Club intervened in the proceeding and, in August 2023, the commission approved the sale, subject to certain regulatory conditions meant to protect ferry customers.
The village appealed, arguing that the commission’s order did not go far enough in safeguarding customers into the future.
“The parties have a brief period of time to seek further review, should a party elect to do so,” Bald Head Island Mayor Peter Quinn explained in an email that went out Friday.
The case is one of a series of arguments being hashed out in courts in recent years since BHI Limited, which is owned by the family of the late George P. Mitchell, first sought to sell the only ferry operation that runs between the island and Southport.
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On Oct. 15, the appellate court affirmed the utility commission’s decision that it maintains regulatory authority over the parking lot used by ferry customers who go to the island, which does not allow private vehicles.
That same panel of judges, though, reversed the commission’s order that BHI Limited’s barge, which carries cargo, service and contracting vehicles, supplies and equipment to the island, falls under a regulated operation.
The decision was not appealed, Quinn wrote.
“These decisions clarify that parking is subject to (Utilities Commission) regulation and impose certain regulatory safeguards to protect the public, should there be a sale to SharpVue Capital,” he said in the email. “Determination of these matters was necessary, should there be a sale of the transportation system to a private buyer. Both decisions also emphasize that the regulatory status of the barge as a utility is unresolved at this time.”
In August, the village appealed a Brunswick County Superior Court judge’s ruling that invalidated the village’s right of first refusal agreement, recorded in 1999, which allowed the village to accept an offer from a third-party to buy the transportation system.
That case is pending.
“While we fortunately are drawing toward the end of legal considerations, we continue to work towards a transportation solution that is in the long-term best interests of all Islanders, the public and system users,” Quinn wrote. “This critical element of our future needs the continuous attention it has been given and should be given going forward.”
