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Unexpected findings stall marina takeover

Officials are told the city would make millions more by extending a lease.

By AARON SHAROCKMAN
Published April 15, 2007

ST. PETERSBURG - A city plan to take over a privately managed, municipally owned marina stalled late last week after a consultant said the city would make more money if the business remained in private hands.

The city would earn $11-million if it continued to lease management of Harborage Marina through 2031, according to the consultant's study.

It would make only $7.5-million running the marina itself.

The revelation, which was detailed during a City Council work session Thursday, shocked city officials. They believed that they could make more money running the 291-slip marina vs. collecting just a percentage of the profit.

Mayor Rick Baker asked council members for more time to review the study before making a final decision.

"But it's obvious to me," said council member Earnest Williams. "If this study is correct, let's look at a long-term lease."

The city owns the waterfront where the Harborage sits, but the docks and the landside facilities are owned by the private manager, Marinas International.

If the city were to take over the facility, near the Port of St. Petersburg, it would have to find a way to buy or build both.

That would cost at least an additional $15-million.

Don Mastry, an attorney representing Marinas International, said the expenses are unjustifiable in the current tax climate.

Under the current lease, which expires in 2011, the city receives 8 percent of the marina's revenues.

Marinas International has agreed to offer 10 percent in a new lease, though the city has suggested it may want even more.

While the city's plans to take over the Harborage took a step back, a similar plan at a smaller marina appeared to move forward.

Officials reviewed preliminary drawings for a redevelopment of O'Neill's Marina at the south end of St. Petersburg.

Like the Harborage, the O'Neill's waterfront is owned by the city, but is privately run.

It's lease expires in June, but city officials are considering a two-year extension while they detail the marina's future.

Under the conceptual plan, the 108 boat slips currently available would be converted to about 40 slips that would accommodate larger boats.

The city would also consider building a 50-boat mooring field offshore and potentially a 600-boat high and dry at nearby Maximo Park.

The city, with Pinellas County as a potential partner, also would improve the boat ramp facilities already in place.

The cost of the total redevelopnment could reach $18.5-million, according to a consultant's estimate, and take up to five years to build.

Grants could offset some construction costs, according to a consultant, and revenues - from $1- to $1.5-million a year - could make up for the rest.

Aaron Sharockman can be reached at asharockman@sptimes.com or (727) 892-2273.

[Last modified April 14, 2007, 20:06:25]