Marina Corporate Buy-out? Alternatives?

[CaptTom]

Today I was looking at some of the history of my marina, which is organized as a member-owned club. I also got some news about a local over-50 mobile home park which was trying to organize as a co-op to block a corporate buy-out of their park.

I realized that the same model could apply to marinas.

So many locally-owned marinas are being bought up around here. I imagine not all of the boat owners like the massive price increases and lack of local control which that brings.

So, why don't more of them band together and offer to buy the marina and run it as a member-owned club, or even docominiums?

I've been to a few marinas like this, including the one I've been at for over 10 years. Never had a bad experience.

Has anyone seen this done lately? Does anyone want to do that with their home marina?

[SailingHarmonie]

Not even remotely interested in being tied to one marina where I have to be an “owner” to get a slip. This is far worse for the average boat owner.

What do you do to boat owners who do not want to, or can not, raise the capital to buy in? Evict them? How are you then better than the evil corporation?

[rslifkin]

In many places, the marina land is valuable enough that it would be hard to come up with the money for this. That alone is a big barrier to entry.

[JBP]

Originally Posted by SailingHarmonie

Not even remotely interested in being tied to one marina where I have to be an “owner” to get a slip. This is far worse for the average boat owner.

What do you do to boat owners who do not want to, or can not, raise the capital to buy in? Evict them? How are you then better than the evil corporation?

Isn't that how most yacht clubs work?

[Pete7]

Originally Posted by JBP

Isn't that how most yacht clubs work?

Yes mine does and unlike a commercial organisation doesn't need to make a profit for share holders, just enough to ensure there is investments to cover future major expenditure. So we pay for electricity with new smart card readers being installed next month. However, the cost is the same price as the club pays for electricity, currently 40p per kWh.

The membership fee is a tiny peppercorn fee. Fees for moorings, pontoon and mooring balls pay for the existing infrastructure on going costs and a small amount each month to future replacements.

Maintenance is done in house if possible and with 400 members have a wide group of different trades. Two work parties a year spring and autumn ensure kitchens and loos deep cleaned, weeds dealt with and the marina kept spruce like.

The cost to yacht owners is 20% of the large commercial marinas nearby.

Unsurprisingly we have a waiting list and need to be a government employee or serve in the emergency services / forces.

The problem of buying a large plot of land may be daunting. However, for major expenses, the club can and does borrow money long term against the assets of the club eg: Land, new club room, plant equipment.

[CaptTom]

Originally Posted by SailingHarmonie

What do you do to boat owners who do not want to, or can not, raise the capital to buy in? Evict them?

Originally Posted by rslifkin

In many places, the marina land is valuable enough that it would be hard to come up with the money for this. That alone is a big barrier to entry.

All very valid questions.

Say a corporate buyer decides your marina is worth X amount and makes an offer to the Mom-and-Pop owners. You and a few of your dockmates form a co-op and go to a bank for a loan. The bank sees that the asset is worth X so they've got nothing to lose by loaning your co-op the money. All you have to do is convince Mom & Pop to sell to your co-op instead of the evil corporation.

Nobody gets evicted. Current slip renters can join the co-op for a nominal fee (usually around $100) or continue renting from the co-op.

Originally Posted by SailingHarmonie

How are you then better than the evil corporation?

Your not-for-profit articles of incorporation state your mission as supporting boaters and boating. There are no traditional stockholders looking for ways to squeeze more money out of the boaters or the property. And there's no incentive to tear it down and build something more profitable.

Originally Posted by SailingHarmonie

Not even remotely interested in being tied to one marina where I have to be an “owner” to get a slip.

And here's the best part. The marina continues to exist to support the boating community - including transient cruisers. Clubs and co-ops are a lot friendlier to cruisers than some land-based corporate overlords.

[CaptTom]

Originally Posted by JBP

Isn't that how most yacht clubs work?

Yes. At least, the ones which have marina facilities.

The problem is, no-one is building new marinas. Waterfront property is too valuable, and permitting hurtles too high.

My thought is we need to save as many existing marinas as possible. We all lose when all waterfront access is controlled by just a few giant for-profit companies run by investment firms. It's happening today, at a massive scale. We're running out of time.

I know it can be done. Our marina did it in 1987. @Pete7 offered another example. There are non-profit organizations in the US who work with mobile home park owners to do something very similar. It's kind of a "movement." It would be great to see the same effort for marinas.

[dannc]

Originally Posted by Pete7

... So we pay for electricity with new smart card readers being installed next month. However, the cost is the same price as the club pays for electricity, currently 40p per kW. ...

Does the 40p per KWh included taxes and fees?

Our power costs about 15/16 cents per KWH but that includes all taxes, fees, and charges. The power company has gotten some price increases approved lately but they are spending it on infrastructure upgrades. Really shocked at how much work they are doing. They were even working last night.

Later,
Dan

[Pete7]

Originally Posted by dannc

Does the 40p per KWh included taxes and fees?

Our power costs about 15/16 cents per KWH but that includes all taxes, fees, and charges. The power company has gotten some price increases approved lately but they are spending it on infrastructure upgrades. Really shocked at how much work they are doing. They were even working last night.

Later,
Dan

Dan, yes includes VAT and a standing daily charge to the supplier for providing it. This should be compared with the domestic rate we pay at home of 28.8p kWh plus 50p per day standing charge, inclusive of VAT at 5%. The club may be on some sort of commercial deal due to size of the demand compared to a domestic residence. Same goes for gas and water, they have often cheaper tariffs. However, we don't need air conditioning

Energy prices in Europe have more than doubled in the last two years thanks to Mr Putin Needless to say domestic solar panels are becoming even more popular despite being at least 50'N.

We are able to measure electrical generation as a country and these are todays stats, all be it late winter so little solar and rather cloudy plus rain. A big push to get rid of coal and invest in clean supplies, again Europe is doing the same. Last of the oil powered stations switched off and pulled down a couple of years ago. However, this comes at a cost somewhere.

https://www.energydashboard.co.uk/live

[dannc]

Originally Posted by Pete7

Dan, yes includes VAT and a standing daily charge to the supplier for providing it. This should be compared with the domestic rate we pay at home of 28.8p kWh plus 50p per day standing charge, inclusive of VAT at 5%. The club may be on some sort of commercial deal due to size of the demand compared to a domestic residence. Same goes for gas and water, they have often cheaper tariffs. However, we don't need air conditioning

Energy prices in Europe have more than doubled in the last two years thanks to Mr Putin Needless to say domestic solar panels are becoming even more popular despite being at least 50'N.

We are able to measure electrical generation as a country and these are todays stats, all be it late winter so little solar and rather cloudy plus rain. A big push to get rid of coal and invest in clean supplies, again Europe is doing the same. Last of the oil powered stations switched off and pulled down a couple of years ago. However, this comes at a cost somewhere.

https://www.energydashboard.co.uk/live

Thanks. It is interesting to see other's power bills. The power cost across the US is vastly different from state to state.

The daily charge is interesting too. Does that mean one can disconnect the house from the grid to save some money? We have a basic charge which is $14 a month so pretty close to $.50 a day.

The power cost either .$11 or $.12 per KWH. 29 cents out of a dollar of the power bill are taxes and fees.

Thanks,
Dan

[Benz]

I've wished we could do this with a small local boatyard that recently sold, but the sale was made before we knew it even was for sale and could organize a confederacy.

[CaptTom]

Originally Posted by Benz

I've wished we could do this with a small local boatyard that recently sold, but the sale was made before we knew it even was for sale and could organize a confederacy.

This is part of the problem. There's not much awareness of this option, among the boat owners or the marina owners.

[GreenWave]

Liability. That’s the key thing preventing this concept of “member owned”. And don’t think formation of some LLC will avoid the true costs to cover liability.

[Ixium]

Originally Posted by CaptTom

Yes. At least, the ones which have marina facilities.

The problem is, no-one is building new marinas. Waterfront property is too valuable, and permitting hurtles too high.

My thought is we need to save as many existing marinas as possible. We all lose when all waterfront access is controlled by just a few giant for-profit companies run by investment firms. It's happening today, at a massive scale. We're running out of time.

I know it can be done. Our marina did it in 1987. @Pete7 offered another example. There are non-profit organizations in the US who work with mobile home park owners to do something very similar. It's kind of a "movement." It would be great to see the same effort for marinas.

My city just built a new 350+ slip marina. New main building with showers/laundry/lounge. New dockage, new fuel/waste pumps.

Great Lakes area though. Fairly cheap. Paid 2200 for 40ft, including water and power.

[CaptTom]

Originally Posted by GreenWave

Liability. That’s the key thing preventing this concept of “member owned”. And don’t think formation of some LLC will avoid the true costs to cover liability.

Our marina (member-owned club) has no trouble getting liability insurance. We recently re-negotiated our insurance and had multiple options to choose from.

Originally Posted by Ixium

My city just built a new 350+ slip marina...

I did think twice about claiming that "no one" is building marinas. I figured a blanket statement like that would be challenged.

It would have been more accurate to say that the obstacles to building a new marina in any populated seacoast region are overwhelming. But I went with the more provocative phrasing anyway. Thanks for keeping me honest!