Kalakala auction goes awry

On Saturday, everyone thought the rusting, retired ferry Kalakala, which means "flying bird" in Chinook, had been sold to a California man who wanted to take it to San Francisco and transform it into a waterfront attraction there.

But the bid of Charles Medlin of Porterville, Calif., was ruled in default after he failed to send the cash to the James G. Murphy Co. of Kenmore, which sold the boat at a bankruptcy auction.

A second bidder that seemed destined to be the new owner ran afoul of the auctioneer yesterday after the members of the bidding group said they would offer only $60,000 to buy the vessel for restoration, instead of the group's final bid Saturday of $135,000.

But the auction house and bankruptcy trustee weren't in a dealing mood and said no. So the Kalakala remains loved by many but the new possession of no one.


	Bob Hopper admitted he bid more than some of his investors expected.

Bob Hopper, one investor with the group, told a news conference that he had bid around $60,000 on behalf of his group Saturday. Then he began competing with Medlin as the bids went higher and higher.

The $60,000 was "what we feel we'd won it at" before the final competition began, said Hopper, who appeared with two of his investors at the site where the old ferry is moored.

"This is worth a fight."

It was the only the latest strange turn of events for the 68-year-old ferry. The vessel operated between Seattle and Bremerton and Port Angeles and Victoria for 32 years before it was towed to Alaska and converted to a fish processor.

It was rescued from an Alaska mud flat and returned to Seattle in a brief burst of glory five years ago. Efforts to restore the old craft have failed as the region's economy lagged.

Yesterday's development stunned auction-house officials, who seemed certain that Hopper's group would pick up the boat after Medlin's bid was rejected. But Hopper said it wasn't clear that Medlin's deposit check of $25,000, which he had to provide to bid, was good. He said his investors could pay the full $135,000 bid they originally made but are not willing to do so as long as the question is unresolved.

Hopper also admitted that he had bid more at the auction for the boat than some of his investors expected but said the lower offer isn't designed to cover his tracks.

He and co-investor Kim Vielma said their group still wants to buy the vessel, moor it somewhere on Puget Sound and restore it to operating condition, remodeling it to house a museum, a cafe and shops.

But they may not get the chance.

Murphy auction officials said the $60,000 bid isn't enough. The trustee appointed in the bankruptcy, sought by a local foundation whose restoration effort ran out of cash, has so far said that bids must be for at least $135,000, said Julie Murphy, a co-owner of the auction house.

Asked about Hopper's statements, she said Medlin presented a check for the required $25,000 deposit and a letter from another investor providing financial backing of "millions of dollars," before he began bidding.

Medlin forfeited the deposit after submitting the apparently successful bid. It wasn't known if the check had cleared yesterday afternoon, but Murphy said Medlin "appeared to be a legitimate bidder on Saturday. There was nothing wrong with the sale or the documents."

Medlin did not return telephone messages yesterday. In earlier interviews he has said he is determined to buy the boat, even if he has to go to court.

He tried to buy the boat for $2 million from the Kalakala Foundation a year ago and made a similar offer before the auction but was turned down.

With the Hopper-Vielma group momentarily out of the picture, the auction company said it began searching yesterday for the Seattle-area man who submitted the apparent third-highest bid. Julie Murphy estimated his bid at $130,000. He would have to increase his bid by $5,000 to get the ferry.

She could not identify the third bidder, who had not been reached as of yesterday afternoon. It's not clear what happens if the third bidder can't be found or won't buy. If so, Murphy said the auction company will consult the bankruptcy trustee, Nancy James, about what do next.

P-I reporter Larry Lange can be reached at 206-448-8313 or larrylange@seattlepi.com

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