The city's vision of income and tourists vanishes. The cruise company can't afford to fix the ship. Workers fear for their jobs.
By ALEX LEARY, Times Staff Writer
Published August 25, 2005
ST. PETERSBURG - The city was abuzz last summer when the Ocean Jewel poked its bright blue bow around the corner and steamed into the Port of St. Petersburg.
The startup venture promised city officials a novel attraction to fill downtown with tourists - a floating entertainment mecca for all ages.
"A lot of naysayers said it would never get here," declared Howard Steffes, president of Titan Cruise Lines. "But it's here. And it's gorgeous."
But after little more than a year, the company faces total wipeout: Titan Cruise Lines began notifying 415 employees this month they could be soon out of a job.
The 457-foot Ocean Jewel needs more than $1-million in repairs, but Titan doesn't have the money to pay for the work, the company revealed Wednesday. Barring a last-minute bailout, all the jobs will disappear when the boat is drydocked Oct. 16.
"My only remorse is some good people are going to be out of work," City Council member Bill Foster said Wednesday. "But I'm not sorry to see Titan leave. We basically bent over backwards for them and they took advantage of our goodwill."
Beset with financial problems and embarrassing mishaps, including the broken shuttle that stranded gamblers for 24 hours this week, Titan discontinued St. Petersburg operations in July. Days later, it filed for bankruptcy protection.
In an Aug. 15 letter to employees, Titan wrote it "cannot say with certainty that funds will be available to complete the repairs and maintenance or whether Titan will have the financial strength to survive the additional financial losses associated with downtime."
Dennis Shepard, the executive brought in to turn around the company, maintained an optimistic view Wednesday.
"We are running on a profitable basis today," he said. "Anybody that looks at the situation will tell you this is a fantastic market. There's tremendous demand."
Even so, the company has not secured the funding it needs, and time is running out.
The ship needs an overhauled air conditioning system along with other repairs. It also must undergo inspection during the docking, expected to last 14 days.
The letter sent to employees is required under the federal Worker Adjustment and Retraining Notification Act and Shepard called it a "formality."
Employees, however, are not counting on their jobs.
"Most people are upset," said Bonnie Blackford, a deckhand who, like many workers, moved from another state for the job.
The 27-year-old said people with families are particularly worried.
Titan already pared its workforce by 200 workers after abandoning St. Petersburg in favor of an operation in John's Pass.
Shuttle boats there take gamblers to the Ocean Jewel, anchored 9 miles off the coast.
The current 415 employees include card dealers, chip handlers, bartenders, cocktail waitresses, cooks and deckhands. Most rely on tips for a profitable evening.
"What's going to happen to all those people?" wondered City Council member Virginia Littrell. "Is (Titan) going to help them find other employment?"
City officials once warmly embraced the idea of a casino boat.
Mayor Rick Baker said it would erase the $150,000 annual subsidy the port costs taxpayers and attract hundreds of tourists to the city's downtown.
Fees were expected to generate $800,000 a year for the city.
Instead the city has joined many other creditors, with an unpaid bill of at least $116,000 in passenger, docking and port fees.
Littrell said the Ocean Jewel was initially billed as far more than a casino, with entertainment opportunities for the entire family. "It's a big disappointment," she said.
