The Queen Mary, a renowned cruise liner, has recently made headlines again. According to the Long Beach Post, millions of dollars earmarked for repairing this luxurious vessel may have been lost after the city dropped its bankruptcy case against the ship’s former operator.
The former operator of the Queen Mary, Urban Commons, had made grand promises to the city of Long Beach about the ship’s future, including plans for a new entertainment experience. However, it soon became apparent that Urban Commons was involved in unethical activities. Long Beach city officials were convinced by Urban Commons’ $250 million restoration plan and issued $23 million in bonds for the ship’s repairs.
Unfortunately, Urban Commons went bankrupt, leaving behind unfulfilled promises. In 2021, Long Beach took over as the ship’s operator and sued Urban Commons in an attempt to recover the $23 million. However, the city couldn’t trace where the money had gone.
According to City Attorney Rich Anthony, there was no evidence to suggest that Urban Commons had misappropriated the funds. Through subpoenas, the city discovered that most of the money aligned with Urban Commons’ subcontracted work. However, City Attorney Dawn McIntosh noted that this didn’t absolve the company of any wrongdoing.
It is possible that Urban Commons underestimated the extent of the repairs or failed to secure competitive bids. City Auditor Laura Doud suggested that inflation over the years might have contributed to the increased costs. Additionally, Doud’s audit revealed “excessive markups” and management fees charged by Urban Commons, leading to inflated repair expenses.
Urban Commons reportedly inflated the costs of repair materials by 40% and billed $1 million for management fees. Out of the 27 critical repairs identified, Urban Commons completed only seven. As a result, the city has recovered a mere $200,000 of the lost funds, with numerous creditors still awaiting payment.
City Auditor Laura Doud, who previously expressed doubts about Urban Commons, expressed disappointment in the case’s outcome. She stated, “I’m still uncomfortable with the fact that the city did not receive work that we were promised, that we paid for.”
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