Turner resumes control of South Yard PJ still trying to reorganize in bankruptcy By Joe Knaapen For The News-Chronicle The Palmer Johnson logo will be coming off the old shipyard building at the east end of the Michigan Street Bridge in Sturgeon Bay. In its place will be a new sign declaring that Great Lakes Yacht Services is in the business of selling, servicing, repairing and storing yachts. "We now have an agreement, and I intend to operate the business," owner Sheila Haggerty Turner said in a telephone interview. "We are going to make this the absolute best sales, service, repair and storage facility in Northeast Wisconsin." The change, approved this week in U.S. Bankruptcy Court in Milwaukee, gives control of what commonly is known as the South Yard to Turner, whose father purchased the facility in 1960. At the same time, Turner is rebuilding 930 feet of seawall and installing new docks on the waterside of the property that extends between the bay and First Avenue from the wooden building at 61 Michigan St. east almost to Oregon Street. The Turner project includes repairs to 100 feet of city-owned wall at no cost to taxpayers. Turner inherited the South Yard and buildings, the original home of PJ dating to 1918, from her father, Texas Instruments founder Patrick Haggerty. She had leased the facility to PJ, a deal that soured earlier this year when the yacht builder, now owned by dot-com billionaire Andrew McKelvey, started fixing its financial problems. Among the first of the cost-cutting moves by PJ was the layoff of about 60 employees. Almost immediately afterward came the shutdown of the repair and service yard, layoffs of the dozen employees who worked there, and the removal of boats stored or being repaired there. Responding to the PJ actions, Turner went to court to terminate PJ's lease to her property. The local court action was blocked when PJ filed for reorganization under Chapter 11 of the bankruptcy code. Initially, other creditors objected to releasing the property from PJ, but the shipyard owners repeatedly said the repair and service business was not profitable, and they only leased - and did not own - the buildings and facilities there. The new operation - Great Lakes Yacht Services operated by SHT LLC - returns the repair and service operation to Turner, who said she will run the business with her husband, Scott Turner, and son, Martin Kelsey III. Details are being worked out for running the new business, and Turner said she does not know how many people will be employed. The planning is going forward under the direction of the Turners and their service manager, Pete Thayler, in cooperation with local managers at PJ. Kelsey, who is the third generation of his family to be engaged in the yacht sales, service and production business, is employed selling yachts for Timur Mohamed, a British businessman who is most often mentioned as the potential buyer for PJ's production yard in Sturgeon Bay. While committed to working for Mohamed as sales vice president, Kelsey said his boss has graciously "allowed me the time to help my family establish this great new venture." Part of the revival, Kelsey said, was the reconstruction of the seawall and installation of custom floating docks, a project contracted to Roen Salvage Co. of Sturgeon Bay. The repairs, initiated by Turner before PJ entered bankruptcy, will make the South Yard dock "the best deep-water facility around," Kelsey said.