A few more pieces to add to the puzzle: http://www.capefearmuseum.com/index.php?flag=collection&cat=Play&id=218
Seems "The Ark" was "The Fergus Ark". The restaurant didn't get destroyed but it did get damaged...and the owner sued the Battleship Commission for $25k. I remember one of this gentleman's "landlocked" restaurants on Carolina Beach Road in the Sunset Park area. It's now a used car lot.
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