Thursday, January 22, 2004 Lawsuit filed against city, Queen Mary   By Jason Gewirtz Staff writer Activist says public funds given to company running ship. LONG BEACH Saying the city has given away public funds to the company that runs the Queen Mary, activist Traci Wilson-Kleekamp on Thursday sued the city, the company and its operator, Joseph Prevratil. The civil lawsuit, filed in Los Angeles Superior Court, says the city has failed to produce public records and cannot document at least $1 million in rent credits Prevratil's company has applied for since 2000. The suit seeks a ruling that says the parties "have no right or authority to use or expend public funds for private purposes' to support the ship's operators. Any undocumented or ineligible rent credits should be returned to the city, the suit states. The lawsuit also seeks an order for the city to produce public records Wilson-Kleekamp has sought for more than two years. Wilson-Kleekamp said she still is awaiting the majority of the records she requested. "There's nothing going on about the Queen Mary that should be a secret,' she said. "If that is a public icon, they will tell the truth about it.' City Attorney Bob Shannon said he had not yet seen a copy of the suit and could not comment about its contents. But he said the city has provided the records it has based on Wilson-Kleekamp's past requests. "We have nothing to hide,' he said. Prevratil said he, too, had not seen the lawsuit and could not comment. "When we get the lawsuit,' he said, "we'll answer it.' Wilson-Kleekamp's suit comes as the city and Prevratil are locked in a stalemate regarding nearly $2 million in rent credits Queen's Seaport Development Inc. has sought from the city since 2000. City Auditor Gary Burroughs is reviewing the eligibility of those credits and expects to complete his audit in coming weeks. Also, the city manager has hired a consultant to review the history of the city's Queen Mary lease and clarify the rent credit language in the document. QSDI pays $25,000 per month in rent to run the Queen Mary, plus a percentage of its annual gross receipts. But it can apply for rent credits equal to 9 percent of whatever money it spends to develop land around the ship. Wilson-Kleekamp's lawsuit claims the city can document only $982,343 of the nearly $1.9 million in rent credits Prevratil's company has applied for since 2000, based on the records she has received. The suit also claims QSDI failed to pass along revenue due to the city related to the Catalina Express operation adjacent to the historic ship. Prevratil said the company passed along all the revenue owed.