[Federal Register Volume 78, Number 225 (Thursday, November 21, 2013)]
[Notices]
[Pages 69932-69933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-27960]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. MCF 21056]
Tedesco Family ESB Trust, et al.--Purchase of Certain Assets and
Membership Interests--Evergreen Interests--Evergreen Trails, Inc. d/b/a
Horizon Coach Lines, et al.
AGENCY: Surface Transportation Board, DOT.
ACTION: Notice tentatively authorizing finance transaction.
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SUMMARY: On October 22, 2013, the Tedesco Family ESB Trust (Family
Trust), on behalf of Franmar Leasing, Inc. (Franmar), together with the
Francis Tedesco Revocable Trust and the Mark Tedesco Revocable Trust
(collectively, Applicants), all noncarriers, filed an application under
49 U.S.C. 14303 for approval of two companion transactions. The first
transaction involves Franmar's purchase of certain motor coach and non-
motor coach assets of Evergreen Trails, Inc. d/b/a Horizon Coach Lines
(Evergreen) from three garage and terminal facility locations in
Florida. The second transaction involves the purchase by the Francis
Tedesco Revocable Trust and the Mark Tedesco Revocable Trust of FSCS
Corporation's (FSCS) membership interest in Cabana Coaches, LLC
(Cabana). The Board is tentatively approving and authorizing the
transactions, and, if no opposing comments are timely filed, this
notice will be the final Board action. Persons wishing to oppose the
application must follow the rules set forth at 49 CFR 1182.5 and
1182.8.
DATES: Comments must be filed by January 6, 2014. Applicants may file a
reply by January 21, 2014. If no comments are filed by January 6, 2014,
the notice shall be effective on January 7, 2014.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21056 to: Surface Transportation Board, 395 E Street
SW., Washington, DC 20423-0001. In addition, send one copy of comments
to Applicants' representative: Fritz R. Kahn, 1919 M Street NW., 7th
Floor, Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Jonathon Binet, (202) 245-0368.
[Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.]
SUPPLEMENTARY INFORMATION: Family Trust owns and controls three motor
carriers of passengers, Academy Express, L.L.C. (MC-413682), Academy
Lines, L.L.C. (MC-41016), and Number 22 Hillside, L.L.C. (MC-413631)
(collectively, Academy Companies), through Academy Bus, L.L.C., a
noncarrier. Francis Tedesco is the sole manager of the individual
Academy Companies. According to Applicants, Academy Lines, L.L.C. and
Number 22 Hillside, L.L.C. are leading commuter regular route
transportation companies operating in the New York metropolitan area
and in New Jersey, respectively. Academy Express, L.L.C. operates
primarily in the Northeast.
Family Trust also owns and controls Franmar through two
noncarriers, Franmar Logistics, Inc. and Academy Services, Inc. Franmar
is primarily engaged in the purchase and leasing of motor coaches to
the Academy Companies. The persons who own and control the Academy
Companies are the trustees of the Francis Tedesco Revocable Trust
(Francis Tedesco, sole trustee) and the Mark Tedesco Revocable Trust
(Mark Tedesco, sole trustee), noncarriers, through Family Trust.\1\
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\1\ Francis Tedesco and Mark Tedesco are the settlors of Family
Trust.
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[[Page 69933]]
Francis W. Sherman owns and controls Cabana (MC-646780) through
FSCS. Evergreen, a charter bus operator, (MC-107638) is under the
common control of Francis W. Sherman through TMS West Coast, Inc., a
noncarrier, and operates in California, Maryland, and Florida, among
other states. Cabana is a charter bus operator in Florida, serving
Florida ports (including Port Everglades) and Florida airports
(including Fort Lauderdale-Hollywood International Airport).
Applicants propose that Franmar will purchase certain motor coach
and non-motor coach business assets of Evergreen from three garage and
terminal facilities located in Jacksonville, Fla., West Palm Beach,
Fla., and Miami, Fla., respectively. Applicants also propose a separate
transaction in which the Francis Tedesco Revocable Trust and the Mark
Tedesco Revocable Trust purchase 100 percent of FSCS's limited
liability membership interest in Cabana. If this transaction is
approved, Francis Tedesco, who is the current manager of the Academy
Companies, will become the sole manager of Cabana. This transaction
will, according to Applicants, permit Cabana to continue passenger
transportation services in Florida.
Under 49 U.S.C. 14303(b), the Board must approve and authorize a
transaction that it finds consistent with the public interest, taking
into consideration at least: (1) The effect of the proposed transaction
on the adequacy of transportation to the public; (2) the total fixed
charges that result; and (3) the interest of affected carrier
employees. Applicants have submitted information, as required by 49 CFR
1182.2, including the information to demonstrate that the proposed
transactions are consistent with the public interest under 49 U.S.C.
14303(b), and a statement that the combined 12-month aggregate gross
operating revenues of the motor carriers of passengers directly or
indirectly owned and controlled by Francis W. Sherman, and those
directly or indirectly owned and controlled by Applicants, exceeded $2
million. See 49 U.S.C. 14303(g).
Applicants assert that the proposed transactions are in the public
interest because Evergreen will be selling vehicles it no longer
desires to operate and the public will lose no service as a result of
the Franmar-Evergreen transaction because the same number of buses will
continue to operate. Applicants also assert that Francis Tedesco is a
``recognized leader in the motorbus industry'' \2\ and will be able to
procure equipment and fuel at lower prices thereby allowing Academy
Companies to maintain a high level of service while lowering rates on
charter bus operations to and from Port Everglades and Florida ports
and Florida airports. Applicants further state that the proposed
transactions would have no effect on total fixed charges and no effect
on the quality of the human environment and the conservation of energy
resources. Finally, Applicants state that the transaction would have no
adverse effect on Evergreen and Cabana's employees as Cabana will
retain its employees and will interview and offer employment to
Evergreen employees.
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\2\ Id. at 7.
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On the basis of the application, the Board finds that the proposed
transactions are consistent with the public interest and should be
tentatively approved and authorized. If any opposing comments are
timely filed, these findings will be deemed vacated, and, unless a
final decision can be made on the record as developed, a procedural
schedule will be adopted to reconsider the application. See 49 CFR
1182.6(c). If no opposing comments are filed by the expiration of the
comment period, this notice will take effect automatically and will be
the final Board action.
The application and Board decisions and notices are available on
our Web site at WWW.STB.DOT.GOV.
This decision will not significantly affect either the quality of
the human environment or the conservation of energy resources.
It is ordered:
1. The proposed transactions are approved and authorized, subject
to the filing of opposing comments.
2. If opposing comments are timely filed, the findings made in this
notice will be deemed vacated.
3. This notice will be effective on January 7, 2014, unless
opposing comments are filed by January 6, 2014.
4. A copy of this decision will be served on: (1) The U.S.
Department of Transportation, Federal Motor Carrier Safety
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590; (2)
the U.S. Department of Justice, Antitrust Division, 10th Street &
Pennsylvania Avenue NW., Washington, DC 20530; and (3) the U.S.
Department of Transportation, Office of the General Counsel, 1200 New
Jersey Avenue SE., Washington, DC 20590.
Decided: November 18, 2013.
By the Board, Chairman Elliott, Vice Chairman Begeman, and
Commissioner Mulvey.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2013-27960 Filed 11-20-13; 8:45 am]
BILLING CODE 4915-01-P