Marina Dock Age

The company that operates the River Bend Marine Center in Fort Lauderdale, Fla., has been hit with a foreclosure action. This is the fourth such action against a company that is led by Palm Beach, Fla., Investor Robert V. Matthews, according to a May 14 South Florida Business Journal report.

Iberiabank, a New Orleans-based facility, filed the action on May 12 against Palm Beach Marina Holding Corp. concerning a leasehold mortgage on the six-acre marina. Orion Bank, which failed in 2009 and whose assets were acquired by Iberiabank, originally made the $13.5 million mortgage in August 2007.

The River Bend Marina has a travelift with a 165,000-lb. capacity, a 15-ton hydraulic yard crane, and 50-ft. boat transporter. It can dock vessels up to 150 feet long and has dry storage space for boats up to 80 feet long. The site also has an office building with 6,820 sq. ft. of office space.

The Florida Department of Environmental Protection’s newly streamlined Clean Vessel Act (CVA) Grant Program makes it easier and quicker for marinas and boatyards to obtain funding for pumpout projects. Grants for approved projects are readily available, and applications are accepted year-round so there is no restriction on when facilities can request assistance.

Facilities approved for funding are reimbursed 75 percent of the total cost of the project, only having to provide 25 percent of the total as a match.

The program now allows facilities to count in-house labor and vessel trade-in values as matching funds, significantly reducing the out-of-pocket expenses needed to meet the match requirement. If any local, state, or federal permits are required for the pumpout project, the program reimburses 75 percent of those costs as well.

In addition to reimbursing expenses for the purchase and installation of pumpout  systems, CVA grants provide funds for operating, maintaining, and repairing equipment, including pumpout vessels. The cost of holding tanks to contain or transport sewage to a proper sewage treatment facility is also covered by the grant.

For more information about Florida’s CVA Grant Program or to apply for a pumpout grant, e-mail CLEAN.VESSEL.ACT@dep.state.fl.us or call 850/245-2100.

An “active to extremely active hurricane season” is predicted for the Atlantic Basin this year, according to a seasonal outlook issued by the National Oceanic and Atmospheric Administration’s (NOAA) Climate Prediction Center, which is a division of the National Weather Service.

For the six-month hurricane season, which began on June 1, NOAA is projecting 14 to 23 named storms (with winds more than 40 mph), of which 8 to 14 will be hurricanes (with top winds of 74 mph or more), and 3 to 7 of the storms could be major hurricanes, that is, category 3,4, or 5 with winds of more than 111 mph.

“If this outlook holds true, this could be one of the more active on record,” said Jane Lubchenco, Ph.D., under secretary of commerce for oceans and atmosphere and NOAA administrator. “The greater risk of storms brings an increased risk of a landfall. In short, we urge everyone to be prepared.”

The current outlook exceeds the seasonal average of 11 named storms, six hurricanes, and two major hurricanes. NOAA said the factors supporting this outlook are upper atmospheric winds conducive for storms, warm Atlantic Ocean water, and the continuation of a high activity era for storms.

The Federal Emergency Management Agency (FEMA) is urging all state and local partners to be prepared for the upcoming season. Individuals can’t control when a hurricane or other emergency may happen, but they can make sure we’re ready for it, said Craig Fugate, FEMA administrator.

CNL Lifestyle Properties Inc., a real estate investment trust (REIT) based in Orlando, Fla., has acquired two Maryland marinas from Covenant Cove Marine Inc. The $7 million transaction increases the company’s portfolio of marinas to 21.

In addition to the purchase, CNL Properties entered into a strategic agreement with Aqua Marine Partners (AMP) to operate the two marinas under triple net leases.

The marinas purchased by the REIT are Bohemia Vista Yacht Basin and Hack’s Point Marina, which are located only two miles from each other by water. Both marinas are located in Cecil County, Md., which is in the Northern Chesapeake area.

The marinas offer customers a variety of year-round amenities, including a pool, bathhouse, launch ramps, ship stores, extensive winterization services, and winter storage. In addition, there is an onsite boat dealership, brokerage, and service yards. The two marinas will add 239 more wet slips to the CNL Lifestyle Properties portfolio.

Andrew Sturner, founder and CEO of AMP, said the new partnership is one that benefits both parties. “The investment in Bohemia Vista Yacht Basin and Hack’s Point Marina extends the reach of the Aquamarina portfolio up the east coast of the United States, providing boaters and their families with the opportunity to enjoy the highest quality marina experience,” Sturner said.

CNL Lifestyles Properties now owns 21 marinas in the United States located in strong recreational areas across the country. The company most recently acquired four marinas in California: Anacapa Isle Marina in Oxnard; Ventura Isle Marina in Ventura; Ballena Isle Marina in Alameda, which is near San Jose; and Cabrillo Isle Marina in San Diego.

Divers have found what appears to be an adult quagga mussel underneath a boat dock in Sand Hollow Reservoir, and it is changing the way boating will take place in Utah, according to a May 23 report in The Spectrum.

At press deadline, the Utah Division of Wildlife Resources (DWR) was awaiting test results from Colorado to determine whether the mussel was a quagga or another type. If it’s a quagga mussel, there’s a good chance there are more of them in the reservoir, said Douglas Messerly, regional supervisor for DWR.

Because the quagga mussels can do all sorts of damage to water and fish populations, DWR signed a legal rapid response plan notice on May 22. It requires any type of recreational equipment that had been in Sand Hollow during the past 30 days, including boats, to be decontaminated before launching at any water in Utah.

The notice requires all boaters leaving the reservoir to use one of six decontamination stations if they plan on visiting another body of water within the next 18 days. The decontamination service is free to all boaters using the Dan Hollow Reservoir, but they may have to wait several minutes to use the service. Decontamination is the only way to stop the spread of these mussels, said Lynn Chamberlain, Southern region conservation outreach manager for the DWR.

A marina worker at Geist Reservoir in Indianapolis found an adult zebra mussel in the reservoir, according to April reports in The (Fort Wayne, Ind.) Journal Gazette and The Indianapolis Star.

The finding of an adult-size zebra mussel indicates the species might have been in the reservoir for a number of years undetected, said Doug Keller, aquatic invasive species coordinator with the Department of Natural Resources’ Division of Fish and Wildlife.

Zebra mussels have been previously found in more than 65 bodies of water in 44 counties throughout Indiana, but the recent discovery was the first in the Indianapolis area. Geist is one of three water supply reservoirs for the Indianapolis area. Keller said that as zebra mussel numbers increase in Geist and downstream, there could be negative impacts to the water utility’s withdraw capacity.

“Zebra mussels can rapidly multiply and are known for clogging drainage and filtration pipes,” Keller said. “Besides pipes, they can attach to virtually anything in the water column, including rocks, limbs, piers, or boats.”

He said that few options for eradicating the mussels exist. The best means of control is by educating boaters about preventing further spread of the mussel. Typically, zebra mussels are transported by human recreational activities such as boating or fishing. Removing all aquatic vegetation, draining live wells, bilge, water lines, and boat trailers, and drying equipment completely after each use, will prevent transport to other waters.

“Letting all equipment dry for five days after a boating trip will prevent the spread of both adults and larvae,” Keller said. “However, if you plan to visit a body of water sooner, you can use a solution of 5 percent bleach and water to clean and disinfect all your equipment.”

The $1.85 million foreclosure sale on Flagship Marina in Sebastian, Fla., is scheduled for May 24, according to an April 22 report on the Treasure Coast Newspaper Website, www.tcpalm.com.

The property along the Indian River Lagoon was scheduled to be sold last November, but owner Damien Gilliams filed for Chapter 11 bankruptcy protection in an attempt to keep the property. He hand delivered his bankruptcy documents to the local courts just minutes before the auction on Nov. 6, and the foreclosure sale was cancelled.

A trustee of the U.S. Bankruptcy Court Southern District in Miami dismissed Gilliams’ case, and the court officially closed the case in April.

Public records show that the land housing Flagship Marina was purchased in 2003 for $800,000. Court records show Oculina Bank provided a mortgage on the property in September 2006 for $1.7 million. The documents state money was also to be used to repair boat docks at Paradise Marina in Sebastian, formerly owned by Gilliams.

Gilliams previously filed for Chapter 11 bankruptcy in 2008 to protect Paradise Marina Enterprises Inc., which sold at a foreclosure auction for $100 last October back to its original creditor.

In December, Gilliams paid $68,494.40 to the state, stemming from a plea deal that spared him a conviction and jail time. The Department of Environmental Protection had accused him of submitting fraudulent grant applications to the agency’s Clean Marina program. Adjudication of guilt was withheld in the case, but Circuit Judge Robert Hawley ordered Gilliams to pay back the grant money and investigative fees to the state.

The warm weather tornado season has already brought damage to two marinas, one in Missouri and another in Oklahoma.

An EF-0 tornado touched down over Table Rock Lake State Park Marina in Branson, Mo., on April 24, according to KSPR 33 News reports.

Damage to State Park Marina could be up to $200,000, but no one was injured.

“By all accounts and eyewitnesses, it looks like we had a small tornado come across the lake and hit three of our large docks,” said marina co-owner Patrick Cox.

The major damage was done to Dock L, where heavy winds ripped the metal roof off. The dock was also pushed by heavy winds. Typically, the pier going out to the dock is aligned with its concrete base onshore, but it was completely pushed off that base. Other piers were under water.

Cox said the damage was minimal, compared to what it could have been. Ninety percent of the marina was unharmed, he said.

On May 10, a tornado destroyed Little River Marina in Norman, Okla., according to a report in The Oklahoman.

Owner Bob Davis said his marina, worth about $2 million, is a total loss. “It was direct hit,” Davis said. “The whole marina is wrapped tight into a cluster. I can’t even identify one dock from another.”

Davis said that unlike a weekend day, nobody was at the marina when the tornado hit, according to a May 13 report in The Norman (Okla.) Transcript.

When Davis arrived the day after the tornado, he said, “It was a real mess. I was just amazed.”

The marina housed about 470 boats, and Davis said all of them received some degree of damage.

“Right now, we’re just getting the stuff out the water to avoid any environmental problems,” Davis said. He said it could be a year before the marina is operational again.

The state of Washington’s waterways have more than 200 abandoned vessels, according to an April 15 Three Sheets Northwest report.

Local marina operators and government agencies inherit the headaches from derelict and abandoned boats that create environmental hazards and a costly mess to deal with them.

The Department of Natural Resources (DNR), which runs Washington’s Derelict Vessel Removal Program, has disposed of 22 boats this fiscal year as of mid-April, compared with 17 or 18 boats total each of the previous three years. DNR expects that number to reach almost 30 by the end of the fiscal year in June.

Melissa Ferris, who runs the program, attributes the increase to a combination of factors, including additional funding that has made it possible to deal with more boats, the economy, and the weather over the winter.

More boaters are anchoring their vessels to save on moorage costs, but those anchored vessels tend to be checked on less often and are more exposed to the elements, Ferris said. Consequently, higher numbers of boats run aground over the winter due to windstorms.

Since the program’s inception in 2003, 250 decrepit boats have been removed from the waterways. Boaters fund the Derelict Vessel Removal Program through a $3 annual boat registration fee and a fee of $5 charged to owners of boats that are registered out of state but kept in Washington.

Boats dealt with in the program are usually demolished after being stripped of metal and any other materials that can be recycled or sold.

With unregistered boats, DNR will put a notice on the boat, as required by law, and place notifications in the newspaper and on its Web site. If the owner doesn’t come forward in a certain designated time period, the boat becomes the property of the state.

When an abandoned boat owner is known, attempts are made to contact the owner, as is the case with a 40-foot sailboat dumped at the Port of Brownsville Marina. Its owner will likely do nothing to retrieve the vessel, and the port authority will have to pay the $14,000 cost to remove and dispose of the boat. It will submit a bill to DNR for a 90 percent reimbursement.

DNR can then go after the boat’s owner to recoup expenses, but Rowland said, “Whether the Derelict Vessel Program will ever recover its money from these people is very doubtful.”

The City Port Authority in Ashland, Tenn., voted to terminate its lease agreement with Harpeth Shoals Marina, effective June 1, according to a May 5 report in The Tennessean.

Late last year, the port authority gave the marina’s lender, Bank of America, time to address several issues that were required by the U.S. Army Corps of Engineers, which granted Harpeth Shoals a permit to operate the marina.

Harpeth Shoals had previously defaulted on payments to Bank of America, and a receiver was appointed for the marina last May.

“Harpeth Shoals has not performed the covenants in the lease agreement such as not paying its taxes, not paying its insurance, and not managing it,” said Jerry Hamlin, the port authority’s chairman.

The port authority has petitioned the court to keep the marina open by asking the receiver to appoint a temporary manager to operate it until Bank of America can work out a permanent sale. The case will go before the courts in late May, and Hamlin hopes the court will approve a temporary manager so more slips can be rented out.

The Corps had indicated that if the port authority terminated the lease agreement, the PSLs (permanent slip lease) for boat slips would not be recognized. About 50 boaters currently have PSLs.

In late April, the port authority received a letter from the Corps saying that boat slips can only be rented for a year, and no existing PSLs would be honored.

“We are not unsympathetic to the plight of those members of the public who were induced to purchase PSLs by the unauthorized promises and grandiose representations of Harpeth Shoals Marina,” the letter from the Corps stated.

Hamblin said he couldn’t say what that will mean for the PSL holders. He said whatever happens will be between PSL holders and Harpeth Shoals, John Rankin, the marina developer, or the bank.