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Investment Service Cuts Port District Credit Rating

December 03, 1987|DENISE HAMILTON | Times Staff Writer

Harbor Village has posted increasing revenues each year, with gross sales hitting $9.7 million in the calendar year ended September, 1987, Parsons said.

But that hasn't represented enough revenue to Ocean Services for the company to pay off its bond debt, company officials have said.

To keep operating and complete construction plans, Ocean Services borrowed an additional $8 million from Great Western Savings & Loan Assn. and Security Pacific National Bank, which have become its two largest creditors.

The two banks foreclosed in October. Since then, Security Pacific has continued to pay some Ocean Services employees, including Jenks, to manage the property while it sorts out what it has inherited.

"We're still trying to get a handle on what we have here. Our forte is probably not running marinas," said Gerald P. Gamble, a Security Pacific vice president.

Gamble says the bank is seeking a "top-notch manager" to run the harbor. Ocean Services is not a candidate, he said.

Bank officials say they are committed to stimulating tourism at Harbor Village and have hired a public relations firm to hold special events during the Festival of Lights boat parade Dec. 12.

Gamble said the banks must decide whether to take over payment on the certificates of participation and spruce up the harbor for eventual sale or to allow the certificate trustees to foreclose on the property and divide the property up piecemeal.

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