Bidder backs out of deal to turn Taku into hotel

JUNEAU, Alaska (AP) – The bidder who planned to purchase Alaska’s ferry Taku and turn it into a waterfront hotel and restaurant in Oregon has backed out of the deal.

The sale of the 352-foot surplus vessel was expected to close in early December.

But the winning bidder withdrew, citing factors such as regulatory problems in Portland, said Aurah Landau, a spokeswoman for the Alaska Department of Transportation and Facilities.

Portland resident Jonathan Cohen offered $300,000 for the ferry on behalf of KeyMar LLC in September, the Juneau Empire reported Friday. The group of investors planned to transform the mothballed ferry into a floating hotel at a pier in northwest Portland. Their bid was six times higher than the next bid.

The newspaper was unable to reach Cohen for a comment this week.

The state offered the ferry to the second and third highest bidders after the Portland group withdrew in November. The new winning bid of $171,000 was from Jabal Al Lawz Trading Est. of

Dubai, Landau said. The deal is still being worked out as the final sales terms and agreements are negotiated, Landau said.

A company spokesman said Wednesday that the state had not given official notice on accepting their bid. The spokesman said the company plans give the ferry a new life in the Philippines.

The ferry, built in 1963, part of Alaska’s ferry system for more than 50 years. It was taken out of service in June 2015 and moored in Ketchikan.

 

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