SEPTEMBER 2009 - Association of Marina Industries

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Industry News Continued from Page 4
Hair said “allowing a private business (to run the marina) is a
travesty ... this is where our local boats conduct their business.”
“With any privatization there are no guarantees for slips,”
Hair went on. “This could cause even more hardship ...
I refuse to go the way of the shrimp boats. Our fleet has
dwindled down to a handful of captains.”
Westrec of Encino, Calif., which opted for a management
rather than a lease option, was founded in 1987 and is the
largest marina operator in the United States, with seven
marinas in Florida.
Westrec’s proposal summary for marina management includes
a five-year contract that does not address extensions.
Allen Mills of AC Charters was not as pessimistic as Hair.
“It’s time for new ideas downtown,” Mills said. “I think we
need something different. We need to make a gem out of
the marina.
“You hold a lot of the future for us,” Mills said. “Please realize
you can’t afford (to charge) $15 a foot (per boat.) Drop
it to $12 or $10 a foot and fill all the slips.” Mills also expressed
hope that an empty kiosk on the waterfront could
be used for a charter association office.
Westrec representative James Frye said the city would have the
final say on slip rental rates and where vessels are located.
“We’re not in the business of managing charter fleets,” Frye
said. However, he also said he recognized the importance
of charter operations because they are good contributors
and help bring activity and business to marinas. Frye added
that he was willing to work with charter captains.
City Marina Director Coleman Langshaw said after the
meeting that the privatization would not affect the BigP, or
federal Boating Infrastructure Grant Program, which is to
cover $1.6 million of an estimated $5.6 million in marina
improvement costs.
Langshaw said 60 percent of boat slip space would still be
used by transient boaters, as specified by the grant.
“Sixty percent transients will make more money,” Langshaw
said, “if (Westrec has) the advertising and marketing
to push up the occupancy.”
Langshaw said Westrec offers “new opportunities and challenges”
for the marina, and that he believes “they probably
will be able to do what they set out to do, although they
may be a little ambitious because of the economy ... (but)
they see our operations more positively than the community
... they understand the business.”
The company’s major change to the marina would be to
renovate the dockhouse to support a retail store with a possible
bike rental. The renovation would be funded entirely
by Westrec. The company also plans to share 50 percent
of the retail profit with the city, an amount estimated at
$50,000 annually.
The company also plans to charge the city 6 percent of fuel,
boat slip and mooring incomes. It will bring all current city
employees into the company, though there are no permanent
job guarantees.
Westrec will be responsible for marketing and public relations
to attract customers.
The proposal also recommends a 10 percent increase in
slip rental fees.
With a management option, all marina facilities remain the
property of the city and any property improvements remain
off of city or county tax rolls. The city also will continue to
pay all operating expenses and is responsible for any current
marina debt, as well as any future capital expenditures,
including dredging and facility maintenance.
According to City Finance Director Patti Clifford, the marina
carries an annual debt of about $560,000, which is included
in the marina budget. The marina’s entire debt is
about $4 million, which was borrowed for the city’s share
of improvements to the marina, said Clifford.
According to Frye, Westrec is able to buy fuel much less
expensively than most companies, but marina fuel prices
will not be the lowest in the marketplace.