Marina Dock Age, May/June 2008

Marina development from a different perspective
by Dennis P. Kissman

I recently saw an article that caught my eye about a new marina being developed near Charleston, S.C. The article said that the marina was going to have a combination of about 550 wet slips and dry stack racks. The article went on to say that the marina development would include a restaurant, boat ramp, community fishing pier, and a waterfront park with an outdoor entertainment facility and scenic trails for a total cost of $20 million. Knowing the market where this marina was to be built, it made no economic sense. What the article did not say was that the marina was part of a large residential development and tourist area.

This is the dilemma the industry faces today; waterfront property and the cost to construct a new marina, especially when you have to add in all the non-revenue producing amenities, is becoming too expensive to be supported by just the income generated from the marina itself. Other revenue generating development must be part of the equation or at least the ability to spread the marina development cost over the entire project. Yet without increased water access, the entire marina industry will be facing more difficult times, than it already is facing.

One of the approaches to solve this problem in recent times has been the sale of individual racks and slips in a marina. This is a very viable solution in order to retain water access and has been very successful in selected markets. The problem is that oftentimes the cost to store or dock your boat exceeds the value of the boat. When this happens and there is no alternative in the marketplace, the boater is faced with the decision whether or not to stay in boating. Under these circumstances, the boater is no longer viewing the marina as a place to store his boat, rather whether or not he should make an investment with limited exit strategy if he changes his boat or retires from boating. Unfortunately, the boater will oftentimes get out of boating. When this happens, not only does the marina lose but also all the marine related businesses supporting that boater lose.   Continue »

Page 1 | Page 2 | Return to Articles Index