SS United States Conservancy claims pier landlord blocked sale of historic ship despite eviction

PHILADELPHIA (WPVI) -- READ LATEST: Hearing could chart new course for SS United States amid latest legal battle over ship's future

It was eviction day for the SS United States. The future of the historic ship remains unknown -- but the saga between the owner and its landlord continues.

The owners of SSUS said they filed an urgent motion on Wednesday with the U.S. District Court of Eastern Pennsylvania. They claim to have evidence that the vessel's landlord, Penn Warehousing, is trying to block the SS United States Conservancy's efforts to relocate from it's current pier in an "advanced scheme to seize America's Flagship for its own financial benefit."

The court filing also requests to extend the Conservancy's move deadline to December 5.

This comes as a proposed plan that could potentially turn the vessel into the world's largest artificial reef is on hold.

The Conservancy alleges that Penn Warehousing blocked the sale of the ship to Florida's Okaloosa County and attempted to negotiate its own sale of the vessel -- despite not owning it. The court filing also claims Penn Warehouse tried to extort $3 million from the nonprofit group, as well as Okaloosa County.

"We've been dealing with the impacts of Penn Warehousing's underhanded tactics for some time, but the revelation that they attempted to negotiate the sale of the ship without our knowledge or authorization is upsetting. It is more proof that Penn Warehousing has engaged in a deliberate pattern of behavior intended to force the Conservancy's default, and seize the SS United States, so that they can sell the historic ship for their own financial gain," the Conservancy said in a statement Thursday morning.

But in a response filed Thursday night with the court, Penn Warehousing claims that the involved parties haven't dealt in good faith to facilitate the removal of the ship in compliance with the court's order.

Craig Mills, who represents Penn Warehousing, said his response aims to address "numerous mischaracterizations and omissions in the Conservancy's Motion."

Penn Warehousing says it remains ready to reengage in good-faith negotiations with Okaloosa County over a reasonable berthing fee and the necessary repairs to Pier 82, where the ship is located.

A hearing is scheduled for Friday morning, during which Penn Warehousing will request a "court-supervised mediation" to reach an agreement on a reasonable lease for the pier and "clarify who is responsible for repairing that pier or bonding the cost of repair before the vessel leaves the pier."

Okaloosa County, along Florida's Gulf Coast, was scheduled to review the proposal last week, which asks for a $9 million budget, but County Administrator John Hofstad said there was a "wrinkle with pier operators." Hofstad then requested the vote be postponed until the next meeting on Sept. 17 to allow "time to work out the issues."

However, this postponement puts the SS United States Conservancy, which owns the Flagship vessel, in a bind.

The Conservancy was court-ordered to remove the ocean liner from its berth at a Philadelphia port along the Delaware River by Thursday, September 12 - five days before the commission's next attempt at a vote.

It still remains unclear how the deadline will impact the delayed vote.

"Okaloosa County is continuing to work with our partners at the SS United States Conservancy and until a deal is finalized it would be inappropriate to make any additional comment," a spokesperson for Okaloosa County told Action News after the delayed vote.

RELATED: Proposal could turn SS United States into world's largest artificial reef off the coast of Florida

The fate of the ship all stems from a years-long rental dispute with Penn Warehousing, who owns Pier 82 in South Philadelphia spot where the massive vessel -- which is over 100 feet longer than the Titanic - has been for nearly 30 years.

In August 2021, Penn Warehousing decided to double the ship's daily dockage to $1,700, an increase the conservancy refused to accept.

When the conservancy continued to pay its previous rate, set in 2011, Penn Warehousing terminated the lease in March 2022 and a judge ultimately ruled that the ship must be moved.

"At trial, Penn Warehousing admitted to doubling the ship's rent in a deliberate attempt to force the vessel off her pier. Now it appears they've been attempting to circumvent the court's most recent order by using a range of tactics to prevent the Conservancy from making any alternative arrangements with willing partners and seize the ship," the Conservancy said.

Just days before the eviction deadline, the Conservancy reiterated that they have been "actively engaging in outreach" in their urgent search for a new temporary or permanent location, saying said that "the next chapter of the ship's history is still being written."

"We must emphasize that this proposal remains subject to various contingencies, including a successful negotiation with pier operator Penn Warehousing to extend the ship's stay beyond the September 12 deadline, while the complex logistics of moving and reefing the ship are worked out," the Conservancy previously posted online.

Due to its size and condition, moving the SSUS would not be a quick or easy task, so what - if anything - will happen on Thursday is not yet known.

"Piers large enough to accommodate her are extremely limited. Nor is it possible to temporarily moor her at sea because she is lacking key equipment and such a plan would not be permitted by the Coast Guard," the Conservancy said in a recent email update to supporters.

They also said that since the contingent contract delay, alternative scenarios have been presented to the Conservancy, including the potential sale to private parties, but added they are doing their due diligence to make sure it is not bought just to then be sold for scrap.

"While we have very little time at hand, the Conservancy's leadership and staff continue to work tirelessly to save this iconic symbol of our nation," the Conservancy said.

Christened in 1952, the SS United States was once considered a beacon of American engineering, doubling as a military vessel that could carry thousands of troops. On its maiden voyage in 1952, it shattered the transatlantic speed record in both directions, when it reached an average speed of 36 knots, or just over 41 mph (66 kph), The Associated Press reported from aboard the ship.

On that voyage, the ship crossed the Atlantic in three days, 10 hours and 40 minutes, besting the RMS Queen Mary's time by 10 hours. To this day, the SS United States holds the transatlantic speed record for an ocean liner.

It became a reserve ship in 1969 and later bounced to various private owners who hoped to redevelop it but eventually found their plans to be too expensive or poorly timed.

Okaloosa County's artificial reef program includes more than 560 reef sites that not only attract marine life, but also fishers, divers and snorkelers to the Emerald Coast.

Currently, the largest international artificial reef is a short trip over on the panhandle in Pensacola, Florida, where the 888-foot-long USS Oriskany now sits on the Gulf floor.