Marina Dock Age, July/August 2007

By the numbers:
What marinas should consider when building dry stack storage
by Dennis P. Kissman

In our consulting business, we have had many opportunities to review a client’s financial modeling for the development of a new marina, and it never ceases to amaze me at how many of those financial projections are made based on permitting constraints without regard for the local market demand for dry stack. When a decision to build is based on such financial models, the finished facility actually turns out to be far different from what was originally projected. The reason? The primary focus of the permitting agencies is the number of boats being stored or berthed at the marina. What they often overlook is the size of those boats. Although this phenomenon applies to both wet slip and dry stack marina development, this article will focus only on the dry stack aspect.

The process
Permitting agencies permit dry stack marina projects based on the total number of boats to be stored. There are some thresholds for the number of new boat storage units that can trigger additional permitting requirements, specifically a Development of Regional Impact (DRI). A DRI is a government-based method to refer to large-scale developments, such as complicated marina developments, that are likely to require input from several agencies besides the local government jurisdiction in which they are located.

In some instances, there are restrictions based on the carrying capacity of the lake, which would limit the maximum number of boat storage racks that can be built. Regardless of the reason, marina owners and managers must be aware of this factor and consider it in any development plan.

Smart planning
When approaching a rack manufacturer to design a dry stack storage structure for one’s development, the manufacturer will look at the physical size that can be developed, based on the marina’s site plan, and come up with the maximum number of racks that will fit into the structure. The rack manufacturer is very familiar with the typical rack sizes that are required for today’s boat market and, using that knowledge, will come up with a rack size mix that will fit the site. Keep in mind, however, that the rack manufacturer is basing his/her work on boat sizes that exist in general market conditions, and this may have little or no bearing on what the local boating market demands in dry stack.

It is at this point, for example, when trying to determine the economic return on the development, that confusion and conflict set in. Consider some hypothetical situations that show how the same structure can have different economic results.

For example, let us assume the physical limitations for an enclosed building are 300-feet long and 145-feet wide with an eve height of 55 feet. With a building of this size, the rack manufacturer will most likely show a plan for a building that will accommodate approximately 300 boats, 150 on each side of the center isle.   Continue »

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