Chad Paul doesn’t believe lawsuits associated with the sale of the Bald Head Island ferry system will wrap up before the end of 2026.
Paul, CEO of the island’s development firm, Bald Head Island Limited, said he was tasked with selling the ferry to a private party after the village of Bald Head Island “scuttled” a public option of selling and transferring the transportation system to the Bald Head Island Transportation Authority (BHITA), a state agency.
Passenger vehicles are not allowed on Bald Head Island, a jut of land that’s home to some of the highest-priced real estate in North Carolina and reachable by ferry. Ferries leave from Deep Point Marina, 1301 Ferry Road SE, in Southport on a schedule that has to be approved by the N.C. Utilities Commission, the current regulatory and governing body of the island’s ferry and tram services.
The ferry sale saga dates back to the BHITA’s creation and includes multiple lawsuits over ownership concerns and disagreements.
In 2022, Raleigh-based private equity firm SharpVue Capital entered into a contract with Bald Head Island Limited and Bald Head Island Transportation Inc. to purchase the transportation system assets and other property from the company for a total of $67.7 million, with $56 million of that for the transportation system and related assets.
If the SharpVue sale falls through because of legal wrangling, Paul said he expects the $56 million sale price for the transportation system and related assets could increase into the $60 million range.
The village of Bald Head Island has taken issue with the sale through the years, but the local government’s top elected official indicated that some cooperation between the village and Bald Head Island Ltd., which is owned by the Mitchell family, has been ongoing.
“The litigation around a final outcome is still outstanding,” wrote Bald Head Island Mayor Peter Quinn in a statement to the Business Journal in May. “While framed as a dispute, the village recognizes its responsibility to ensure the best outcome for all those employed on the island, visitors and full- and part-time residents. Both parties of the litigation have kept communication open, knowing that their relationship is critical to the success of the transportation system’s future regardless of the litigation outcome.”
On Nov. 19, 2024, the N.C. Utilities Commission unanimously approved the sale of the ferry components to SharpVue. But the village of Bald Head appealed that decision to the N.C. Court of Appeals, which unanimously upheld the utility commission’s decision and order. The village has appealed the state appeals court decision to the N.C. Supreme Court.
Another issue still going through the courts is the village’s contention that it had the right of first refusal regarding the transportation system.
According to a Coastal Review article, the village in August 2024 had appealed a ruling by a Brunswick County Superior Court that invalidated a purported 1999 right-of-first refusal agreement. The village has also appealed that ruling to the N.C. Court of Appeals.
“We believe we will hear back from the N.C. Supreme Court, N.C. Court of Appeals and the N.C. Utilities Commission regarding several different litigation matters in the next 60 or 90 days,” Paul said in May.
SharpVue has already closed on about $10 million of Bald Head Island Ltd.’s assets that were supplemental to ferry system sale.
The legal issues have “made it very difficult for the Mitchells to exit gracefully,” Paul said, “but on all fronts, we are going to continue to focus on the legacy benefit of the island.”
