A potential buyer is kicking the weather-beaten lifeboats of Captain John’s Restaurant on behalf of a group of U.S. investors who think the rusting relic could be revived as a key Toronto-area waterfront attraction.

Entrepreneur John Scales plans to return to the city at the end of July to scout out two possible spots for relocating the ship, both within 40 kilometres of the downtown core.

They have great views of the city and show what he says is the ship’s best face — from the side rather than the bow.

“It does not belong where it is,” says Scales, 67, who says he has been involved in four other efforts to revive and repurpose old ships.

“We have a business plan that we think could work quite well: It could be a convention centre, a restaurant, an intimate theatre or any number of things.”

But the Yugoslavia-built ship, the Jadran, is being hobbled by a few challenges, quite apart from more than $1.7 million in outstanding mortgage, realty taxes, insurance, berthing and other fees that its owner, “Captain” John Letnik has amassed since 2002.

The largely gutted, 90-metre ship — now technically considered a barge — can’t be towed outside of the Great Lakes because of insurance and maritime restrictions.

Plus there seems to be little enthusiasm among waterfront officials for doing more than just scrapping the ship, says Scales, who was here June 23 with a ship’s surveyor, trying to assess the feasibility of a fix-up.

Since returning to his home in the Boston area, Scales has been trying to get blueprints of the Jadran from Lloyd’s ship registry in London in preparation for making an official offer for the ship and then getting it right into dry dock for repairs and restoration.

But a lot has to fall into place before that: Scales said investors have to be sure they have a firm lease on an alternative waterfront location before spending $3 million to $5 million to breath new life into the 56-year-old ship. They also need assurances that hydro, water and waste removal system can be put in place.

So far, they’ve only scouted out alternative locations via Google Earth.

“I’m having some difficulty with people who are sick and tired of this ship and just want it gone. Their frustration and aggravation is, in my opinion, clouding the imagination and conceptual vision that could go into making it good for the investors and for the city,” he said in a telephone interview Tuesday.

There are other issues, as well: The ship was arrested by a sheriff last spring and a Federal Court has ordered that it be advertised for sale. That just got underway this week with a July 31 deadline for bids, said Toronto Port Authority spokesperson Erin Mikaluk in an email to the Star.

“We’ve recently been in contact with a potential buyer, and have and will continue to work with all buyers who express a genuine interest in purchasing the ship.”

Port Authority officials “have worked very hard” since last May to provide Scales with any information he needs, with the exception of queries around alternative locations because those are outside the authority’s control, said communications vice president Deborah Wilson.

It’s been two years now since city officials turned off water to the long-time waterfront attraction and shut down the restaurant, on which Letnik owed more than $1 million in taxes and other fees as of last December.

He also has $650,000 worth of mortgages outstanding, according to a statement of claim filed by the Port Authority with the Federal Court last December.

Any sale would likely be contingent on waiving those liabilities.

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In the meantime, 75-year-old Letnik is pressing ahead with a $1.2 million lawsuit he launched against the Port Authority in January, claiming it has effectively sabotaged his efforts to find a buyer by refusing to provide a long-term lease on its current water slip at the foot of Yonge St. or another site nearby.

Port Authority officials have said there are no sites under their control on Toronto’s waterfront that could accommodate the parking and other services needed.

Waterfront Toronto declined comment saying that the Port Authority is acting as the lead agency in the sale.