[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