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What Are The Three Biggest Issues Facing Boating Today?
Access. Access. Access.
While that may just sound like a
new take on the old real estate industry bromide, "location, location, location," boating's
problem actually does have a lot more to do with real estate
than it does with boats. Just ask Florida's Diane Fredianni.
"We've had to move our boat three times since last
August because of marinas converting to condominium developments," she
reported in early January. "And we may have to move
again if this keeps up."
Until last summer, Fredianni and her husband Jim had kept
a sailboat at Club Continental Marina on the St. Johns River
near Jacksonville since moving to the Sunshine State from
New Jersey in 1984.
But three years ago, the 82-slip
public marina changed hands, along with an adjacent 100-unit
apartment complex, and shortly thereafter, word began
to spread that the place might "go condo."
Sure enough, marina maintenance began to slide and services
dwindled until last July when the Fredianni's got an eviction
notice. The owners intended to convert the apartments as
well as the slips to condominium ownership, just as had
already happened at many other marinas throughout Florida.
"South Florida has been going through this condo conversion
thing for a number of years but its finally reached us up
here in Jacksonville," Fredianni says. "It's fierce
and if you don't have the money to buy your own slip, I
just don't know where people with boats are going to go."
Once the conversion and new construction
is completed, slips at the Continental Yacht Club and
Marina reportedly will sell for $80,000 to $100,000. But
that's considered reasonable compared to places like Clearwater
in Southwest Florida, where a wet slip can cost $250,000,
and Jupiter where one reportedly sold for double that.
Even dry-stack storage slots now are being sold - often
as "rackominiums" -
with South Florida prices for a slot for a 30-foot boat
hitting six-figures.
For their part, the Frediannis felt
fortunate to find a rental slip for their Hunter 34 a
few miles away in a marina on the Ortega River. But no
sooner had they settled in than "condo
creep" struck again.
"We were there for two weeks when we got this beautiful,
two-page letter from a lawyer saying that the marina would
be closing and we had to move out," Fredianni says. "That
one was going condo, too."
The Big Picture
When Will Rogers said, "Buy land, they ain't making
any more of it," he was right, in spades. But when
it comes to waterfront, Rogers was right in spades, clubs,
diamonds and hearts since developers - in Florida and across
the country - have gambled on the public's desire to live
by the water by gobbling up ocean, bay, lake and riverfront
land at a high-stakes pace.
While many of the stories about marina operators selling
out at formerly undreamed of prices to condo developers
come from this big boating state, this is by no means solely
a Florida phenomenon, according to Dr. Edward Mahoney, director
of the Recreational Marine Research Center at Michigan State
University.
"It's becoming harder and harder for small marinas
to survive," reports Mahoney. "The marina situation
is similar to the family farm problem. Marina owners often
view their properties as a retirement nest egg and when
they sell out, a marina's upland area is often converted
to residential uses and the slips to condominium ownership."
The result, Mahoney says, is that not only are rental slips
lost, leaving boaters of more modest means high and dry,
but fuel docks, haulouts and other service facilities like
pumpout stations are going by the wayside as well. His home
state of Michigan is losing marinas at a rate of 3-5% percent
annually, he says.
In addition, in many marinas, whether condominiums or public
rentals, operators are reconfiguring for boats 35 to 40
feet and larger, eliminating less profitable smaller slips.
This trend is pushing more people into trailer boating,
Mahoney and others in the industry say, taxing ramp capacity
and parking facilities in many areas, one more piece of
the water access conundrum.
Indeed, whether it's the loss of wetslips to condos, permit
delays for new drystack construction, outmoded launching
areas, threatened and endangered species restrictions or
impasses over dredging recreational marinas and channels,
boaters are losing working waterfronts big time, Mahoney
says.
In North Carolina, the state's Marine
Services Center reports in its TradeWinds newsletter that
the trend is hurting efforts to attract marine businesses
and related jobs. Says director Mike Bradley, "The resale value of working marinas
and yards that provide haul-out and repair services is becoming
so high, the only valid decision for the owner is to sell
out to high density uses like retirement and second home
condominiums and condo slips." Once those service facilities
are gone, Bradley says, there's no way to get them back.
The West Coast is by no means immune, either. Residential
units going up around Marina del Rey, the 4,000-slip marina
owned and operated by Los Angeles County, is cutting into
the number of slips and in turn squeezing boaters out of
the market, according to Southern California's BoatingNews.
"If you reduce the number of boat slips, you have
more parking spaces for your apartments," charges Emilio
Basile who keeps his 47-foot sailboat there. That has led
to lawsuits from boater groups at the marina, which has
lost over 1,000 slips in the past decade, the newspaper
reports.
On the Gulf Coast, natural disaster is the culprit now
putting boating access at risk. Last year's back-to-back-to-back
hurricanes, Katrina, Rita and Wilma, hung a $1.2 billion
price tag on rebuilding the Gulf fishing industry and its
infrastructure alone, William Hogarth, head of the National
Marine Fisheries Service told the Fisheries Subcommittee
of the House Resources Committee in January. That includes
lost boats, gear, marinas, seafood landings, charter boat
docks and vessel launching areas.
Congress has since approved $62 billion for Gulf Coast
restoration but as yet, little has gone to rebuild waterfront
infrastructure.
Unless federal, state and local
governments do something, Hogarth said, the fishing towns
and their historic waterfronts will become attractive
real estate targets for condominium and casino developers. "That would be, in my opinion,
a very big mistake," he told lawmakers.
Rolling Up the Sleeves
While BoatU.S. and others in the boating industry have grappled
with the access issue in its many manifestations for years,
last summer the National Marine Manufacturers Association
created a Water Access Task Force, putting muscle and
money behind it. The 21-member team includes representatives
of the boatbuilding and marina industries but also the
States Organization for Boating Access, the Recreational
Boating and Fishing Foundation and BoatU.S.
The Task Force developed a nine-point plan to, among other
things, inventory the scope of the problem nationwide, identify
common obstacles to boater access and develop strategies
to combat these impediments, and in the end, actually increase
access to the water.
"This is a major undertaking for all of us because
the access issue is so complex, it usually surfaces as very
local problems and it often deals with private property," says
BoatU.S. President Jim Ellis.
"The good news is that because of industry efforts
in the past few years, local governments in Florida are
waking up to just how important recreational boating is
to their economies and to the way of life of their constituents," Ellis
adds. "At the same time, the Florida State Legislature
enacted the landmark Working Waterfront bill in 2005. This
is a tool that we want other states to model."
That law requires municipalities
on the water to encourage the preservation of recreational
and commercial "working
waterfronts" in their comprehensive land use plans
and it also provides tax relief measures for marine businesses
that stay in operation. A second Florida bill, eases permitting
requirements for public boat ramps and marinas.
"These are measures that the Water Access Task Force
can take on the road to states and communities that are
just starting to grapple with this issue," Ellis noted.
Other potential remedies in the Task Force toolbox include:
- Encourage counties and local governments to create waterfront
commissions or citizen task forces to preserve boating access.
- Pass bond issues allowing local jurisdictions to buy development
rights of existing marinas and boatyards, and build new
launching ramps with adequate parking.
- Provide economic impact data on boating and the marina industry
that will justify public investment in boating infrastructure.
- Direct boaters' taxes and fees, like state gasoline and
sales taxes and boat registration fees, to programs that
preserve and increase access.
Those are potential state or local solutions to the access
problem - some already in use, others not yet ready for
prime time. There are positive developments at the national
level as well. Last year, BoatU.S. and a coalition of organizations
convinced Congress to put more money - $55-$60 million over
five years - into the Boating Infrastructure Grant program
that provides facilities for transient boats. Congress also
boosted funding for another federal boating access grant
program that by next year will be providing about $54 million
annually for states to build, upgrade and maintain launching
areas.
Furthermore, a bill now in Congress, the Working Waterfront
Preservation Act, sponsored by Sen. Susan Collins (R-ME),
could direct more federal money into rescuing water access.
Collins' bill, S. 1723, would establish a $50 million annual
grant program to be administered by state fishery agencies
- much as the Boating Infrastructure Grant program is managed
- to assist local governments, non-profits, and fishermen's
cooperatives in purchasing property and easements, or to
maintain commercial facilities.
But many of the same marinas, service yards and on-the-water
repair business that cater to commercial fishermen also
serve recreational boaters. Thus, there should be justification
for amending the bill to include recreational waterfront
facilities. S. 1723 was still in committee at press time.
Boaters in Maine who want to help BoatU.S. get the Working
Waterfront Preservation Act amended to include recreational
boating facilities can send a message to Sen. Collins by
going to BoatUS.com/gov/workingwaterfronts.
By Ryck Lydecker
©BoatUS Magazine,
March 2006
The Maine Event
Sen. Susan Collins' Working Waterfront Preservation Act
has its roots deep in a local issue of the Pine Tree State.
Like many coastal states, Maine is losing its waterfront
to residential development but Down East it's the seafood
industry that's suffering, the independent lobsterman, in
particular.
“Small owner-operators were getting taxed off their
wharves,” reports Robert Snyder of Maine's Island
Institute. “At the same time, boatbuilders and others
in the marine trades were having a harder and harder time
staying on the coast.”
As in Florida, a second-home/retirement
home boom is driving up land values and pushing the “working” off
Maine's waterfront, Snyder says. To deal with the issue,
the Institute joined forces with Maine's Lobstermen's Marine
Trades and Fishermen's Wives Associations and Coastal Enterprises,
Inc. to form the Maine Working Waterfront Coalition, which
has become a significant political force in the state.
To make a three-year-long story
short, the coalition, now numbering 100 organizations,
worked with the state legislature to pass a tax relief
measure – similar to that already
enjoyed by farming and forestry – last November. And
by a 73% margin, Maine voters also passed a $2 million bond
issue the coalition drafted. That money is earmarked to
help small fishing and marine businesses purchase waterfront
sites for their operations.
In getting its arguments lined up, the coalition commissioned
an economic study by the University of Southern Maine which
shows that the working waterfront contributes anywhere from
$15 million to $168 million more per year to the gross state
product than does coastal residential construction. (For
more information go to BoatUS.com/workingwaterfronts)
“it's been hard work to bring together so many constituencies,” says
Snyder. “But when everyone understands that there
is a common threat to their history and economy, you can
motivate people who aren't even part of that industry, and
who might actually be adversaries in another situation.”
If access to the water is becoming
a problem where you boat, consider forming a local or
state alliance to preserve your working waterfront. Go
to BoatUS.com/gov and click on “Grassroots
Toolbox” for
how-to information.
By Ryck Lydecker
©BoatUS Magazine, March 2006
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