I ended up doing a whole lot of research on this ship yesterday. It's probable history started becoming apparent.
From the Civil War Talk site.
Another person found two references to Civil War ships named Arctic. One was the CSS Arctic, a floating battery stationed at Wilmington, N.C. It was destroyed in December 1864 or early 1865 depending upon the source.
The other was the USS Arctic, commissioned by the U.S. Navy and having service with the U.S. Coast Survey. In 1859, it was transferred to the Lighthouse Board and saw duty as a lightship for twenty years.
Another person said the CSS Arctic was converted from a lightship and mounted three cannons.
It was possibly raised and put back into service again.
He believes the Confederate and Union Arctics were one and the same ship.