HomeMy WebLinkAboutSS4 - Commerical Marina Rates - PowerPointMarch 14, 2017
Item No. SS4
City Council Study Session — March 14, zoi7
Update to
Commercial Marinas Rates
• How Many Marinas?
• History and Act,lonsTaken in2012 & 2013
• Staff Actions Ta ken i n 2014, 2015, 2o16
• Recommendations for201-7
• Next Steps
'4
Lido Marina Village
How Many marinas'•
ercial
Marinas
60 comm
LMarinas —10
arge
. Smaller Marnas
' 3°
. Other u5es � 20
.
Fuel Docks
Shipyards
• Yacht Clubs
H< 15,ppo5�
Op,
Boat Rentals
• ReSta rant-5
Charter
.
Vessel,
0 All Other
3
M
#IM
6703 sf
r 4L
Permit# CP112D4UG1
Ukcthrr IDt3 (Per Resufutnn 2012 98)
41e n� � j~4• �r �!
I S,b9b sq. fe. x Curren. Rate I
Restaurant Gues7 Strp Rate
13,9$1 sq. 1t x Curren: Rate
Gay-U!;t+ RFntal Rite
16.763 Sq- ft. x Cwwl: Rate i
Spor7fishirg Charter Rate
12.835 Sq, ft x iurren: Hatet
Building UsF eyes Tidelands
113.196 sq. Ft. x C` ITer;
History and Actions Taken in Zola & 201
A Lot of Public Outreach in
zolz & 2ol�
Stakeholder Meetings with Council Committee
Committee Members Public Speaking Events
ommunication Material Distribution
Feb. 23, 203.2
April 5, 2012
June 13, 2072
August 1, 2012
August 15, 2013
August 21, 2013
April 5, 2012
April 10, 2012
August 22, 2012
August 29, 2012
19
September 12, zoiz
Council Ad Hoc Committee on Harbor Charges
recommendation to City Council - Rates for
Commercial Marinas:
• Increase rent from $0.361 sgft to $1.4.5 / sgft
- Up to 20% of Gross Revenue
• Rent to be phased after one-year to year 2020
11
October 21 zoiz
The Committee modified the recommendation to
City council:
• Establish a 9 -Marina Index
— "Up to 18.5% of Gross Slip Revenues"•
• Approve model lease template and permit
• Set rent for largecommercial marinas
Phase increases over six periods
9
November i
The Committee further modified the recommendation to
City Council:
• Continue to use the Marina Index
--"up t0 3.6.o% of Grass Slip
Revenues"
• Index made up of nine marinas
• Phase increases over six steps
i
Beginning Marchi, 2013 rent isat$0.36/sgft
Starting Marchl, 203.4 reach full fair market value on
March 1, 2018
F Rent established for other harbor uses:
01
Large Commercial Marinas
Small Commercial Marinas
Fuel Cocks
Shipyards
HOA marina 1 docks for
member's use
Yacht Clubs
- Guest Slips @ Yacht Clubs
Any free public access dock
Boat Rentals
Sport Fishing Charters
Restaurants' guest slips
essel Charters
.11 Others
• Rent established for
$7.68 other harbor uses
$1.26
$0.50
$0.50
$1.02
so-so
$0.35
$1.02
$1.02
$1.02
$1.02
$1.02
10
r
i
Staff Actions in Zoi
2014 - Index dropped to $0.351 sft
zoi
Zoi6
2015 — Further discussion at City Council Study Session
2015- Staff paused rates at $0.351 sft
2o16 —Appraisal by George Hamilton Jones Inc.
2016—Continue to hold rates atso.�,;Isft
11
2017 Recommendations
*Appraisal conducted by George H Jones (Apri12016)
(Available on the Crept. of Public Works webpage 1 Harbor Charges)
New appraised rate is $1.17 l sft /year for large marinas
(no longer indexed)
Phased approached to raise the rent:
- April 2017 - Immediately raise to $0.76 / sft
- April 2018 - raise to $1.171 sft
• Establish a Medium Size Marina for 54,999 to 15,001 sft
Adjust every year by Consumer Price Index CPI
Re -appraise the marinas every tenYears (2027)
12
ommercial Use Category
Large Commercial Marinas
Small Commercial Marinas
Fuel Docks
Shipyards
HOA marina 1 docks for
member's use
Yacht Clubs
-Guest Slips @Yacht Clubs
Any free public access dock
Boat Rentals
Sport Fishing Charters
Restaurants' guest slips
Vessel Charters
All Others
Current
Rent
s/sft
$0.35
$0.26
$0.35
$0.35
$0.26
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
Current
Rates
13
Commercial Use Category rr7"
_ s/sft
Large Comm. Marinas $0.3.5
Medium Comm. Marinas
Small Comm. Marinas
Fuel Docks
Shipyards
HOA marina J docks for
member's use
Yacht Clubs
-Guest Slips @Yacht Clubs
Any free public access dock
Boat Rentals
Sport Fishing Charters
Restaurants' guest slips
Vessel Charters
All ethers
April
2017
$0.76 X54,999 sft
so.E2 54,999-15,001 sft
$0.26 $0.53 <15,000 sft
$0.35 $0.36
$0.35 $0.36
X0.2+5 $0.53
Immediate
0.35 $0.76
Increase
$0.35 $0.36
$0.35 $0.53
$0.35 $0.53
$0.35 $0.53
$0.35 $0.53
$0.35 $0.53
14
Commercial Use Category
Large Comm. Marinas
Medium Comm. Marinas
Small Comm. Marinas
Fuel Docks
Shipyards
HOA marina 1 docks for
member's use
Yacht Clubs
-Guest Slips @a Yacht Clubs
Any free public access dock
Boat Rentals
Sport Fishing Charters
Restaurants' guest slips
Vessel Charters
All Others
Current
April
April
s/sft
2017
2018
$0.3.5
$0.76
$1.17
]54,999 sft
$0.35
$0.62
$o.$8
54,999 - 15,001 sft
$0.26
$0.53
$0.70
<15,00o sft
$0.35
$0.36
$0.36
$0.35
$0.36
$0.36
$0.26
$0. 53
o.
o � 7
I
Phased.
$0.35
$0.76
$1.17
$0.35
$0.36
$0.36
$0.35
$0.53
$0.70
$0.35
$0.53
$0.70
$0.35
$0.53
$0.70
$0.35
$0.53
$0.70
$0.35
$0.53
$0.70
15
Commercial Use Category
NIL
Large Comm. Marinas
Medium Comm. Marinas
Small Comm. Marinas
Fuel Docks
Shipyards
HOA marina 1 docks for
member's use
Yacht Clubs
- Guest Slips �7a Yacht Clubs
Any free public access dock
Boat Rentals
Sport Fishing Charters
Restaurants' guest slips
Vessel Charters
All Others
Current
April
April
s/sft _..: _
2017
2018
$0.35
$0.76
$1.17
$0.35
$0.62
$0.88
$0.26
$0.53
$0.70
$0.35
$0.35
$0.26
$0.35
$0.35
$0.36 $0.36
$0.36 $0.36
$0.53 $0.70
$0.76 $1.17
$0.36 $0.36
April
2039 -CPI
$1.19
$0.90
$7.72
$0.37
$0.37
$0.71
$1.19
$0.37
$0.35
$0.53
$0.70
$0.71
$0.35
$0.53
$0.70
$0.71
$0.35
$0.53
$0.70
$0.71
$0.35
$0.53
$0.70
$0.71
$0.35
$0.53
$0.70
$0.71
z6
12
tlhe Olaf loas
ears (207
every ten
a7
Next Steps
• Receive Further Direction from the City Council on
proposed rates.
Return on March 28, 201.7 with a Resolution on the revised
fees.
T
Questions ?
Sg