America’s Cup Navigates Charter Boat Squall : Tourism: Organizing committee tries to calm charges that a former official was steering tourists to select companies at the expense of other operators.

The problem-plagued America’s Cup Organizing Committee is scrambling to defend itself against allegations that former committee executive Warren Pateman is steering Cup tourists to a handful of local charter boat companies, including a business in which Pateman holds a financial interest.

Pateman, who on Friday declined any wrongdoing, said a “resolution” has been reached that will eliminate concerns about a possible conflict of interest.

Committee Vice President Jay Belby said Friday that Cup officials have reached a “verbal agreement” that should allay boat operators’ concerns.

Pateman, the former publicity director for America’s Cup Services, the Cup’s nonprofit marketing arm, said the agreement should eliminate concerns that he is not “spreading the (Cup) business around as equitably as I can.”

Belby also said the agreement will bring Pateman’s charter boat operation “into line with specifications of (an operating) license issued” by the San Diego Unified Port District.

The latest Cup flap involves charges by some hotel owners and passenger vessel operators that Pateman has used his for-profit travel business to improperly steer Cup tourists to a select number of companies.

Pateman blamed the charges on the disappointing Cup-related tourism business.

“I can’t make people happy if the business isn’t there,” he said. “And right now the business isn’t there.”

Pateman’s business, America’s Cup Travel Services Desk, shares office space with the nonprofit committee and marketing arm. While the travel business has its own paid staff, it shares some telephone numbers with the Cup organization.

Pateman served as America’s Cup Services publicity director until last summer, when a highly publicized cash shortage forced the organization to spin off several of its operations. To cut costs, the organization licensed several tourism-related activities to Pateman, who now operates the for-profit business.

In addition, the organizing committee and America’s Cup Services have canceled some Cup-related events, spun off a downtown Cup festival to another private firm and turned over worldwide television rights to a group of foreign racing syndicates that are competing for the Cup.

During a Wednesday meeting with America’s Cup Services and Pateman, Phil Lobred, general manager of Point Loma-based H&M; Landing, complained that his operation has received “absolutely nothing” in the way of referrals from America’s Cup Services.

Lobred also said that several charter boats that operate from landings around the city also have yet to see any business. Yet, boats associated with Pateman seemed to be relatively crowded, Lobred said.

He also charged that organizing committee volunteers who answer telephones have been improperly transferring calls from tourists to Pateman’s operation. Lobred said volunteers transferred repeated calls made this past week by local boat operators who were masquerading as tourists.

“They try desperately to get you down (to committee headquarters) so they can sell you a ticket” to boats Pateman has a financial interest in, Lobred said.

Belby defended Pateman’s operation, noting that, until recently, no local boat operators were willing to make a charter boat available for daily trips. Only Pateman’s company was making regular trips, Belby said.

Local boat operators acknowledged that, because business was so slow, it didn’t make economic sense to make the trips. However, they maintain that they are now sending boats out every day.

“The big concern right now is that (Pateman) is acting in the best interest of people who (made donations to) America’s Cup Services,” said Eric Lund, a spokesman for San Diego Harbor Excursions, which operates charter and tour boats in San Diego. “What Warren needs to do is educate everyone as to exactly how he’s treating referrals.”

The tentative agreement reached Friday is designed to placate local boat operators who said there was a conflict of interest between Pateman’s tourism business and Observations Unlimited, a charter boat operator in which Pateman owns an interest.

Pateman acknowledged that he has a financial interest in the company that brought in Gold Rush and Victoria Star, two out-of-town boats, to carry spectators to the America’s Cup race course. Lund said Observations Unlimited irritated some boat owners and operators by importing boats when local charter and tour boats are sitting idle.

Gold Rush is the official media boat for the Cup races, while Victoria Star is docked at the San Diego Princess Resort, where the Spirit of Australia syndicate is headquartered.

Tom Vincent, general manager of the Princess resort, also serves as president of the America’s Cup Services Advisory Board.

Vincent said America’s Cup Services and America’s Cup Operating Committee officials knew of his charter-boat business and his relationship with Pateman before he assumed the committee presidency.

Friday’s tentative agreement will allow a local boat operator to “participate in the operation” of Gold Rush, Belby said. The local operator, whom Belby did not identify, will be allowed to sell Gold Rush tickets to accredited members of the media and to the general public.

Belby also said that Pateman and America’s Cup Services have “taken a big step” toward improving relationships with local boat operators by creating a committee that will be allowed to review Pateman’s records. The committee members, who have not yet been named, “will have the right to come in and look over the distribution of tickets,” Belby said.