Planning on Purpose: A Guide to Marina Development

This White Paper, by Tim Keogh, was published in Boating Industry Magazine, January 2008, as a special insert on Water Access.

The future of water access depends on the usefulness of existing and new facilities. The success of these facilities relies heavily upon developing and maintaining the physical infrastructure. Therefore, preserving existing water access facilities and growing water access with new facilities require a well-thought-out plan for development.

Marine industry professionals must take the lead in the planning, development and operation of these water access facilities. Governments and private developers must reach out to marine professionals for assistance in the identification, design, development, and operation of such facilities. The goal must be to expand and improve access to our nation’s waterways through a deliberate process.

Clear identification of the parameters for the development and redevelopment of these facilities is critical to the future of water access. A poorly designed facility, with rough waters, silting issues, inadequate vehicle or pedestrian access will negatively affect the boating experience. A facility designed without understanding the market will be under-utilized and will eventually deteriorate.

In either scenario, a failed project leaves the owner with little incentive to maintain water access as a primary use; making other uses more attractive. Addressing the following topics will guide the planning process and maximize project success.

Select the right site
The requirements for successful water access facilities limit the amount of natural, suitable locations for development. These specific requirements include calm, deep water; adequate upland for parking and amenities; neighborhood compatibility; and a market that will support the facility. There are different approaches for identifying the development potential of existing and new sites.

For existing facilities, where the site is already suitable for water access, the challenge lies in altering the facility to meet changing markets. The strategy for redeveloping existing marinas must focus on maximizing the property’s footprint for water access.

New sites for water access present a unique set of challenges. Too often lands ear-marked for water access are poorly located — seemingly leftovers of the available waterfront. Local governments should be encouraged to conduct a systematic examination of potential sites for water access development — one that considers the requirements for such facilities, identifies suitable areas, and creates zoning codes that support development. It is important that government incorporate this information into the master plans.

Once the site is selected, the next step in the planning process is to gain a full understanding of the development potential of the site. The goal is to create a framework for all additional work in the planning process. This includes identifying realistic development opportunities that take into consideration the space available for development.

Work with experts
Don’t assume that personal boating experience or operating experience qualifies you to design and develop a new facility. The planning process is a collaborative process that should involve experts in their respective fields.

Depending on the size of the project, expert consultants are required to evaluate a variety of potential technical solutions and develop recommendations. Conducting workshops or “charrette” with all involved parties will provide the best opportunity to create a comprehensive plan. Roundtable discussions on issues including the market, physical limitations, permitting, local/regional zoning, regulatory compliance, operational design, and economic feasibility are all important topics for review.

The following disciplines are examples of those that should be involved in the planning process:

• Architects
• Civil engineers
• Land planners and landscape architects
• Coastal and environmental engineers
• Dock and building manufacturers
• Marina operation consultants
• Legal representation and local zoning experts

The goal is to produce an economically viable and profitable project without negatively affecting the opportunities for future development or neighboring property. This master planning approach helps avoid costly mistakes and problems in the future. Leaving any one discipline out can undermine the feasibility of the project.

I have worked on several projects that had difficulty expanding or reconfiguring because previous development decisions were made that restricted the property’s footprint. Because they developed without a master plan, buildings were placed in such a way on the site that new additions were difficult or impossible. Therefore, costly demolition had to be undertaken to accommodate the redevelopment.

Know the market
There should be a proportionate amount of market research conducted before making any development decisions. The focus is to identify if the project makes sense and adds value to the surrounding area.

There is a significant difference for research involved in putting in a picnic area as compared to building a dry stack storage building. Be realistic when conducting and reviewing the research.

The objective is to identify services and amenities that the market perceives to have value. Boaters don’t like to pay for amenities or services that they don’t use. If they feel that the dockage rates are helping to support amenities, like a pool, which they do not use, then eventually the boater will move on. Conducting market research should also identify unmet needs that represent new development opportunities for the market.

The first step in framing out a market for review is to identify the boating activities to which the facility will provide access. The boating activities in a particular area will not change with the addition of a new facility. If the marina is 1.5 hours to the nearest ocean inlet, then that facility will not cater to an active sport fishing community. If there are fixed bridges or restrictive waterways, then the size of boat will be determined by those limitations.

Recognizing that different boaters have different needs is an important step in the planning process. For example, a fishing customer base and a family cruiser customer base will drive activity to the property at different times of the day. The services provided and the hours of operation must be matched to the customer base.

Having an existing customer base in the market makes research much easier than targeting potential customers in an emerging market do. To identify demand in emerging markets, those with limited or no water access infrastructure, that takes qualified expertise. There are a number of empty, dilapidated marinas in obscure locations that were developed on unrealistic market expectations. A proper amount of research may have shown that resources should have been spent in better locations or targeted to a different market.

The best ways to conduct research is to assume that you don’t know anything about the customer or the market. Let the market tell you what it wants. Don’t try to force personal expectations or ideas out into the market. It will not work. Projects are often hampered when decision-makers impart their concepts of boating or the market onto the facility.

For example, we once worked with owners who were having a problem with their restaurant tenant. The owners had solicited an upscale restaurant operator to sign a long-term lease based on the owners’ preference for dining. The restaurant was failing.

After reviewing the market and speaking with boaters, it became clear that there was more demand for a casual dining experience than a high-end restaurant. The owners’ expectations were not in line with the market, and the restaurant struggled to survive. If the market had been systematically reviewed with an open mind, the marina could have avoided a costly mistake and delivered the services demanded. The lesson here is: Don’t assume you understand the market and, in some cases, hire an unbiased party to review the market.

Conducting market research goes beyond asking the marina across the lake what the cost of dockage is this season. Take an inventory of the services provided in the market and identifying the services that the facility could provide to the overall market. Take some time to identify any new marina developments, or the expansion and reconfiguration of existing facilities. Keep in mind that no two marinas are alike — and that the services and amenities that the neighbor offers, or is adding, may not be what every marina needs. The goal is to identify where the facility fits in, or will fit in, to the overall market.

Some items to look for on the waterways include the location of fuel docks, haul out and service facilities, successful restaurants and popular destinations.

Once you have identified these items, some important questions to ask are: What makes this property different? What are the limitations of the property that become clear during the market assessment? Are there services that every marina is providing that you are not?

Start to think about what should be provided to meet the demands of the market.

As mentioned earlier, it is important to match the level of research to the size of the project. Large projects should conduct a full, formal feasibility study that can be used as the tool to make informed decisions. Some banks, lending institutions, or investors will require a full market feasibility study. If this is the case, it is important to utilize a firm with hands on experience with marinas and water access facilities. For smaller projects, a less formal approach to reviewing feasibility can be utilized.

In any scenario, the approach to reviewing the market should incorporate the following components:

• Talks with marina owners, boaters, and other marine industry professionals. Boat dealers and brokers can be great resources of information, if they are willing to talk.
• A review of boat registration statistics for the area.
• Talks with dock manufacturers and marine contractors in the area.
• Visits to other marinas to review services and amenities offered and how they conduct business.
• Participation in local and national industry associations. These are great opportunities to find out what is going on in the market — and in other comparable markets.

Be systematic about the data collected; take notes during conversations, and immediately follow up with a summary of the findings. Knowing the market will help you make informed decisions.

Identify goals and objectives The opportunities for development and redevelopment are limited, which makes it essential that projects are built with a clear set of goals and objectives. Take some time to ask yourself what you are trying to accomplish as a developer, a business operator, or a government agency. To expand the business? To maximize return on the investment? To create a greater good for the community?

Whatever the answer is, create a well-thought-out business plan that identifies specific goals and objectives; benchmarks for analysis. Don’t set objectives for specific development programs that may limit the openness for new ideas. Committing to a launch ramp or dry stack before knowing if it works on all levels may steer the project in a wrong direction. Researching to a specific end is a recipe for disaster. A well-written, specific statement of goals will guide implementation and provide a clear map for decision-making as the project progresses.

The final water access facility may end up different from the original concept or goal for the project. Realize that going through a thorough investigative process may yield results different from the initial opinion of the project. A comprehensive review of the project may uncover new and unique opportunities. Take a feeling of comfort in moving forward with the project, knowing everything was analyzed in an educated and efficient manner. You will be armed with the facts and data to ensure that the project makes sense and will efficiently provide access to the water.

Tim Keogh, Director of Business Services of Marina Management Services, Inc. in Boca Raton, FL can be reached by phone at 561-338-5800 or via e-mail: tim@marinamanagement.com