Cross In Group c. Pert A -boy Waterfron Park. Market I Economic Feasibility Study. 90 Aberdeen Road, tvlatawan, New Jersey Q7747.

Transcription

1 Cross In Group c. Real Estate: Market Feasibility Financial Services Devdopment Consulnng. Pert A -boy Waterfron Park Market I Economic Feasibility Study roject. Prepared for: City of Perth Amboy New Jersey Prepared by: With: Cross Group Inc. Matawan, New Jersey Sasaki Associates, Inc. Watertown, IY1assachusetts July 1982 May 1983 Final Revision APPENDIX SECTION P.O. -Box Aberdeen Road, tvlatawan, New Jersey Q7747. ~ (201 )_ 583,6768

2 Cross Group Inc. Perth Amboy Waterfront Park Project Market/Economic Feasibility Study Appendix Section "This acknowledges the financial assistance provided by the coastal Zone Managanent Act of 1972, as amended, with funds administered by the National Oceanic and At:rrospheric Administration, Office of Coastal Zone Managem::mt. This study was prepared nnder the supervision of the New Jersey Coastal Energy Irrq;>a.ct Program of the New Jersey Department of Energy. However, any opinions, findings, conclusions or recomnendations expressed herein are those of the author(s) and do not necessarily reflect the views of NOAA or N1 OOE." Explanatory Note: The Appendix Section should be used in conjnnction with the main report of the Market/Econanic Feasibility Study and the Master Plan, by Sasaki Associates, dated July July 1982 Cross Group Inc., P.O. Box 575, 123 Main Street, Matawan, New Jersey 07747, (201)

3 TABLE OF CONTENTS Appendix #1 Regional Marina Survey Appendix #2 Marina Financial Analysis Appendix #3 Armory Building Financial Analysis Appendix #4 Master Plan Development Costs Budget Estimates

4 A P P E N D I X #1 Regional Marina Survey 1.1 Introduction 1.2 summary Findings 1.3 Smith Creek and the Arthur Kill 1.4 Raritan River 1.5 Staten Island 1.6 Raritan Bay 1.7 Sandy Hook Bay 1.8 Navesink River 1.9 Shrewsbury River

5 -1- APPENDIX #1 - REGIONAL MARINA SURVEY 1.1 Introduction The area north of Perth Amboy, along the Arthur Kill, has long been an intensively industrialized area with little or no boating except at Smith Creek in Woodbridge. Oil refineries, power plants, natural gas facilities, and a whole host of water-dependent industries crowd the water's edge, leaving little or no public access to the water. The Arthur Kill has also been heavily polluted and has been classified by the state as having little recreational value. To the south of Sandy Hook, the Jersey coastline is largely sandy beaches with few inlets or bays. The Shark, Manasquan, and Metedeconk Rivers are narrow and provide access only to the open ocean, with little bay sailing opportunity. Barnegat Bay, further south, has one of the worst reputations in the state as a dangerous boating inlet due to its narrow channel and shallow depths. The Perth Amboy waterfront and the proposed marina have direct and immediate access to the Raritan River, the Raritan Bay, and the Atlantic Ocean past Sandy Hook. Boating activity in the open areas of the bay, rivers, and ocean is a mixture of power and sail boating.

6 -2- The Perth Amboy location is nearer to the heavily populated northern Jersey urban areas where the majority of boat owners come from (Refer to Section 4.0- Boat Ownership Patterns). It has an excellent road network providing easy access from the northern and western areas of the state. A well-managed marina at Perth Amboy could attract new boat owners as well as draw those owners who may presently be berthing their boats further south in Monmouth and Ocean Counties. For purposes of this study, the region considered to be in competition with the Perth Amboy marina is the entire Raritan Bay area, its environs, and the New Jersey coastline, south of Sandy Hook. This includes the following sub areas: (Refer to Map #1) ~P# 2 Smith Creek and the Arthur Kill 3 4 Raritan River Staten Island & Raritan Bay 5 Raritan Bay (portion) 6 Sandy Hook Bay 7 8 Navesink River Shrewsbury River An owner could choose to berth his boat in any of these sub areas and have direct access to the open waters of the Raritan Bay. Each sub area is different, however, in its boating patterns and, commensurately, its boats. Some sub areas, such as the Navesink and Shrewsbury Rivers, have relatively shallow depths of 4 feet to 7 feet at low tide and attract only smaller sailboats (20'-25').

7 -3- Map #1 - Raritan Bay/Sandy Hook Region Index Map.Scale In ~Inc. P.O. Box Aberdeen Road, rvfatawan, New Jersey (201)

8 -4- The area chosen for study includes those marinas which provide river, bay, and ocean boating opportunities. Marinas in each sub region were surveyed to determine the number of slips and moorings available and the costs of summer rental and winter storage. Figures were then tallied for the total number of slips and moorings in each sub region and the region as a whole. Market pricing levels were also determined. The survey did not attempt to list services such as gas sales, repair, and supplies at each of the marinas, since this information is readily available in the Boating Almanac, Vol. ~, 1981 and the 1981 Waterway Guide (Refer to Bibliography). Slip sizing and width were not classified by marina or the region as a whole because many marina operators would not disclose the data. Also, it is a common practice to rent a larger slip to a smaller boat just to keep it filled. Estimates of the number of boats which could be winter stored varied with each operator who used the summer parking lot as his winter storage area. Finally, the listing of marinas in the region is by no means complete. Yacht clubs and boating clubs were listed but often not included in the numerical totals because the slip/mooring information was not available. The facilities of yacht clubs, particularly slips and moorings, are not open to the public. They represent a small portion of the boating activity, whereas the commercial, municipal, and state marinas represent, by a

9 -5- large margin, the greatest marina competition for the Perth Amboy location. 1.2 Summary Findings The seven sub areas of the region surveyed have a total of 83 marinas with 6,743 slips and moorings and 5,361 spaces for winter storage. Summer slip rental averages between $23-$25 per foot of boat, with winter storage rates averaging about half the summer rate, at $11-$12 per foot. There were very few empty slips available for summer rental, particularly in Matawan/Keyport, in the Cheesequake Creek area in Morgan (Raritan Bay), and the Great Kills area of Staten Island. These are the most accessible and preferred berthing areas for both motor and sail pleasure boating in the Raritan Bay. (Refer to Table #2). Interviews with marina owners and operators showed little or no new slip construction to meet what they felt was an increasing market demand for pleasure boating and slips. In the Cheesequake Creek area of Morgan, boats offered for sale were remaining unsold until the prospective owner obtained a slip or the seller guaranteed his present slip as part of the boat sale. Each sub area of the region had its own unique attractions, problems, and future potential. For purposes of this study, each sub area is discussed as it relates to the Perth Amboy location.

10 -6- TABLE # 2 REGIONAL MARINA SUMMARY No.of No. of No. of Winter ~ Marinas Slips _L Storage J_ Smith Creek & Arthur Kill Raritan River Staten Island 10 1, Raritan Bay 20 1, , Sandy Hook Bay 15 1, Navesink River Shrewsbury 18 1, , Total 83 6, ,

11 -7- Map #2 - Smith Creek & Arthur Kill ~Inc. P.O. Box Aberdeen Road, Matawan, New J=ey (201) 583~6768

12 Smith Creek and the Arthur Kill Map #2 (#1-#11) Smith Creek is a shallow, narrow inlet located in the Sewaren section of Woodbridge. There are 11 marinas along the creek (Refer to Map #2), with 180 slips and 45 spaces for winter storage. These slips represent 2.7% of the region. The shallow water depth, or less at low tide, restricts sailboats with large keels. With rare exception, almost all of the boats in Smith Creek are power. The mouth of the Creek is 3.2 nautical miles from the open bay water (Raritan Yacht Club site) which means a boat would take 45 minutes to an hour at 4.0 knots to reach open water. The area around the Smith Creek is heavily industrialized with the Hess and Royal oil refineries and tank storage facilities and the Sewaren Generating Station (Public Service Electric Company) The Arthur Kill has long had a reputation for being polluted and is heavily traveled by large oil tankers and barges. These generate a considerable wake for small boats traveling in the Arthur Kill. Despite its shallow depths, heavy industry, large ship traffic, and distance to open waters, Smith Creek has no empty slips. It is a good example of a berth area which caters to local residents who want to be near their boats. Most of the boat owners are from Woodbridge, Perth Amboy, Carteret, and Edison, all of which are within a 20 minute drive.

13 -9- Smith Creek is presently under study by Woodbridge for the possible location of a 265 slip marina as part of a 45+ acre mixed use recreational park. If this proposed 265 slip marina is built, it will directly compete with the Perth Amboy location. Perth Amboy, however, has two advantages which put it in a better competitive position than the Smith Creek location. Its greater depth of water will allow it to accommodate large sailboats and it has immediate access to open sailing waters.

14 SMITH CREEK AND ARTHUR KILL COMMENTS Map# Marina No. of Slips Summer Rental No. Winter St<D-rage Winter Rental Wait List % Pwr/Sail Other 1 Sewaren Marine Basin Sewaren, N.J Woodbridge Twp. Marina Sewaren, N.J Riley's Boat Yard Sewaren, N.J. Burkie's Swear en, N. J:. 6 I t--' 0 I 5 6 Jimmie's Service & Boat Landing 9 Idle Breeze Marina 21 Sewaren, N.J Richie Stacy Marina 6 Seawaren, N.J. 8 Walter Kutasy 5 Sewaren, N.J. 9 Woodbridge Marine Enterprises Sewaren, N.J

15 SMITH CREEK AND ARTHUR KILL CONTINUED COMMENTS Map# Marina No. of Slips Summer Rental No. Winter Winter Storage Rental Wait List % Pwr/Sail Other 10 Cliffside Marina Sewa:reh, N.J Chuck's Marina Sewaren, N.J. 13 Total I 1-" 1-" I

16 -12- Map =#=3 Raritan River ~Inc P.O. Box Aberdeen Road, Matawan, New Jersey (201)

17 Raritan River Map #3 (#12-#16) The Raritan River, from New Brunswick (at Johnson Park) to the mouth of the river at Perth Amboy, is approximately 12 statute miles (10.4 nautical miles). It takes a minimum of 1~ to 2 hours, depending on the tide movement direction, for a motorboat to reach open waters from New Brunswick. All boats in the Raritan River are power versus sail because of this long distance to open sailing waters. The Raritan River has only 0.2% of the region's slips and caters to the local power boater. There are two marinas with 60 slips and 215 dry storage spaces. Red's Marina in Highland Park is the largest with 45 slips, of which 10 were available for summer rental at $17/ft. The South River Boat Club has 15 slips which rent for $80 per season. Boats can be trailer launched at the Highland Park ramp at no charge and at the Sayreville ramp by permit only. Marina development along the River does not occur until South River which is 5 nautical miles from the mouth. There are few if any points of public access in these five miles in South Amboy and Sayreville along the south bank and the former Raritan Arsenal site in Edison on the north bank (presently being developed as the'raritan Center Industrial Park)

18 Map # Marina No. of Slips Surmner Rental RARITAN RIVER No. Winter Winter Storage Rental Wait List COMMENTS % Pwr/Sail Other 12 Red's Marina 45 Highland Pk.,N.J. $17/ft. 200 $10/ft. None All Pwr New Brunswick Boat Club N. Brunswick, N.J. 13 Highland Park Launching Ramp Highland Pk., N.J. Raritan River Boat Club Edison, N.J. 40'Concrete No Charge I... ""' I 14 Tower Marine Temporarily not in operation due to water control project E. Brunswick, N.J. 15 Sayreville Launching Ramp Sayreville, N.J. 2 Ramps 18' Concrete/20'asphak Permit Only 16 S.River Boat Cl. 15 s. River, N.J. Total 60 $80/Seas. 15 $80/Seas. S 215

19 -15- Map #4 Staten Island & Raritan Bay '.,.' '\.... ',5... -~--..I"....,, ''... ~Inc. P.O. Box Aberdeen Road,.Matawan, New Jersey ( 201)

20 Staten Island Map #4 (#17-#26) Staten Island along its southern shore has 10 marinas with 1,305 slips (19.4% of total) and 960 winter storage spaces (18.2% of total). The sheltered Great Kills Harbor Basin has 9 of these 10 marinas, with the last one at Princess Bay on the Lemon Creek. Much of the boating from these New York City marinas involves sailboats. Great Kills Harbor, along with Perth Amboy and the Cheesequake Creek in Morgan, New Jersey, is considered to be a sailboat berthing area. It is immediately accessible to the open waters, yet has a sheltered and protected anchorage. Low tide depths range between 8' to 24', which is sufficient for larger sailboats (35'+) to navigate. In addition to the commercial marinas, Great Kills Bay also has two yacht clubs (Great Kills with 60 slips and Richmond City with 55 slips). Comments from members of the Raritan Yacht Club (RYC) in Perth Amboy reveal that some boats were moved from the RYC moorings to Great Kills because of the availability of slips for sailboats. Part of the reason for the move appeared to be the desire for a dockside slip rather than a mooring which could only be reached by launch, as is the condition at the Raritan Yacht Club. Dockside entertaining is more conducive when a boat is anchored at a slip rather than to a mooring.

21 -17- The Staten Island marinas are easily accessible from New Jersey via the Outerbridge Crossing at Perth Amboy, making this location desirable for New Jersey residents. The Route 440 connection to Interstate 287 at Perth Amboy has opened up the western New Jersey counties of Somerset and Hunterdon to these saltwater marinas. Staten Island will be a competing location with the Perth Amboy marina in the future. Slip rentals on Staten Island average $25/ft for summer slip rental. This is competitive with the marinas in the Raritan and Sandy Hook Bays.

22 STATEN ISLAND COMMENTS No. No. of Summer Winter Winter Wait Map # Marina Slips Rental Storage Rental List Pwr/Sail Other 17 Nichols Great 300 $28/ft. 200 $15/ft /50 Kills Pk.Marina Great Kills, S. I., N.Y. 18 Great Kills Yacht 60 Membership 5/25 Club S. I., N.Y. 19 I Mansion Marina 230 $ / S+W 100/0 1 Charter Boat ~ Great Kills, Seas. 00 I S.I., N.Y. 20 Richmond Cty 55 $6.60/ft 55 70/30 Yacht Club 21 Great Kill Boat Yard & Marina 150 $25-30/ft 110 N/A s 100/0 G.K., L. I. N.Y. 22 Schmidt's 40 $45/Seas :3o $12/ft s 100/0 20' Boats and under Marine Service only GR.K. S.I.,N.Y. 23 Staten Island 140 $ Party/Charter Boats Boat Sales 1500/Seas. GR.K. S.I.,N.Y.

23 STATEN ISLAND CONTINUED COMMENTS No. No. of Sununer Winter Winter Wait Map Marina Slips Rental Storage Rental List,_~ Pwr/Sail Other 24 Plum Island. 200 $20/ft 15 $12/ft S+W Marina Gr. K. S.I.,N.Y. 25 Shoal's Fishing 115 $ / 300 $ / S+W 75/25 Station. Seas. Seas. GR.K. S.I., N.Y. 26 Sandy's Fishing 15 0 Station Total I t-' ~ I

24 -20- Map #5 - Raritan Bay (portion) ~Inc. P.O. Box Abctdcen Road, Matawan, New Jersey (201)

25 Raritan Bay Maps #4 & #5 (#27-#46) The Raritan Bay sub area includes Perth Amboy and the southern shore to Port Monmouth, New Jersey and extends westerly into the mouth of the Shrewsbury River at the Route 36 bridge in The Highlands. There are 20 commercial marinas in the Raritan Bay sub area which house 1,747 slips (26.1% of the region's total) and 1,789 winter storage spaces (33.5% of the total). It is the largest sub area in the region in terms of slips, with Sandy Hook Bay and Staten Island ranking 2nd and 3rd respectively. Within the sub area the largest concentration of slips is in the Cheesequake Creek at Morgan and the Matawan Creek at Keyport with 1,193 slips (70% of the total). No. of No. of % of Area Marinas Slips Raritan Bay Perth & So. Amboy % Cheesequake Creek/Morgan % Matawan Creek/Keyport % Keansburg/Port Monmouth _3_ % 20 1, % Perth Amboy is dominated by the 200 moorings at the Raritan Yacht Club which are not dockside slips. Of these, 192 are for sailboats and 6 are for powerboats. The RYC facility is open to memberships as well as to transients, who can moor free of charge on a night-by-night basis.

26 -22- South Amboy has a relatively shallow anchorage which is used only by powerboats. There are 115 slips and 25 moorings available at the Morgan Marina. The Cheesequake Creek at Morgan has the largest concentration of large sailboats, which are primarily docked at Lockwood Boat Works (130 slips and 500 winter storage spaces). Many RYC and Staten Island boaters winter store at Lockwood's because of the large facility and full repair services (engine, hull, sail, and electronics). Once inside the Creek, the boater must wait for two bridges to open. The Route 35 bridge is high enough for powerboats, but most sailboats wait for the opening each 30 minutes to pass. The Conrail Railroad bridge is too low for both power and sailboats. It often remains open until a train passes. However, with the 1982 electrification of the Conrail line from South Amboy to Matawan, the increase in train traffic will no doubt keep the bridge closed more often than not. A boater docked upstream of these two bridges must wait for up to 30 minutes to move in or out of the bay. Interviews with marina operators and on site marina inspections show the Cheesequake Creek is a very popular berthing place for sailboats, particularly the larger ones. Lockwood's mix is 85% sail and 15% power, which has recently reversed from mostly powerboats five years ago. Comments from the Lockwood

27 -23- management personnel indicate the increasing popularity of sail over power boats since the gas crisis and the huge increases in gas prices. A large twin engine powerboat uses upwards of 20 gallons of gas per hour. At $1.50/gallon, the fuel costs alone amount to $30/hour. A one-day excursion of five hours would cost the owner $150. A few marina operators commented on the increasing tendency of the large powerboats to remain at dockside with the owner entertaining rather than setting out for several hours of boating. Further south, the Matawan Creek and Keyport Harbor have 7 marinas with 660 slips/moorings or 38% of the Raritan Bay total. Keyport Harbor is relatively shallow (2-4') with most sailboats moored at the Keyport Yacht Club (100 moorings). The Front Street Bridge along the Matawan Creek is fixed and sailboats must remain below the bridge. Keyport Marine Basin (247 slips), Snug Harbor Marine, Inc. (38 slips), and Wagner's Ramp (90 slips) are all located upstream of the bridge. They are all 100% power with no sailboats. Only Captain Fred's Marina {75 slips) handles sailboats since it is located downstream of the bridge. Hans Pedersen & Sons {90 slips), next to the Ye Cottage Inn restaurant, is 100% power. This condition indicates that the Matawan Creek/Keyport area is predominantly powerboats with the exception of the Keyport Yacht Club. The shallow harbor and channel restrict sailboat activity in this area.

28 f~ ~ I I ' -24- The 3 marinas farther south in West Keansburg and Port Monmouth contain 290 slips (17% of the Raritan Bay total). The pattern of marina slip user trends which emerges in the Raritan Bay is a distinct concentration of large sailboats in the Cheesequake Creek and Great Kills Bay in Staten Island. Except for these two, there are no other protected inlets. which do not have bridge or shallow depth constraints. The significance of this trend in relation to Perth Amboy is that Perth Amboy has the potential of capturing the larger boat, particularly sailboats, at the proposed marina facility. Though no specific sail versus power boat counts were made in this study, the trend toward sailboats, accompanied by the lack of slips in both competing locations, shows the larger sailboats (35+) have few choices of marina location in the sub areas.

29 RARITAN BAY COMMENTS No. No. of Summer Winter Winter Wait % Map # Marina Slips Rental Storage Rental List Pwr/Sail Other Raritan Yacht Cl. 200 Moor. $95/yr. 50 s 6 Pwr Perth Amboy, N.J. launch 192 Sail $265/yr. dues So. Amboy Boat Cl. So. Amboy, N.J. 0 Shallow 3' Fritzies Boat Rent. 12 $300/Seas. 0 8 $10/Day Lockwood Boat Works 130 $ / 500 $11- S+W 15/85 26 Acres for storage Morgan, N.J. Seas. 15/ft. 31 Browns Boat Yard 53 $22/ft. 75 $8/ft. s 75/25 Morgan, N.J. 32 Warrens Boat Yard 14 Morgan, N.J. I N Ul I 33 Baron's Boat Yard 14 $375/Seas. 110 $8/ft. Morgan, N.J Morgan Marina 115 Slip $22/ft. 100 $8/ft. S+W 75/25 So. Amboy, N.J. 25 Moor. Zubacks Boat & 20 $23/ft. 75 $10/ft /10 Motor Works Calls/ week Sum. Sub-total

30 RARITAN BAY (CONTINUED) Map # Marina No. of Slips Summer Rental No. Winter Winter Storage Rental COMMENTS Wait % List Pwr/Sail Other 36 Viking Marina Morgan, N.J. 175 $22/ft. 165 $ /ft. S+W 75/25 37 Keyport Marine Basin Keyport, N.J. 247 $396+/ Seas. 200 $9/ft. s 100/0 38 Snug Harbor Marine, Inc. Keyport, N.J. 39 Wagner ' s Ramp Cliffwood, N.J $20/ft. 40 $9.50/ft. 30 s 100/0 S+W 100/0 20' $7 I N 0'1 I 40 Captain Fred's Marina Keyport, N.J. 75 $25/ft. 30 $10/ft. S+W 75/25 30' Ramp 41 Hans Pedersen & Sons Keyport, N.J. 42 Keyport Yacht Cl. Keyport, N.J. Sub-total 90 No slips 100 rroorings $22/ft. 200 $10.50/ft.S+W 100/0

31 RARITAN BAY (CONTINUED) No. No. COMMENTS of Sununer Winter Winter Wait % _Map# Marina Slips Rental Storage Rental List Pwr/Sail Other 43 Olsen Boat Works 20 Moor. 50 $8/ft. 15' $5 Keyport, N.J. 44 Crosbie's Marine 50 $175+/ w. Keansburg, N.J. Seas. 45 Lentze Marina 75 $18.50/ft. 125 $8/ft. None 80/20 w. Keansburg, N.J. 5 Avail. 46 Gateway Marina Port Monmouth, ' Concrete Ramp N.J. Total I N --.) I

32 I -28- Map #6 - Sandy Hook Bay., NOT FOR USE IN NAVIGATION ~ c~ ~ REPRODUCTION OF A PORTION 'o.\l.. '.. ' OF NATIONAL OCEAN SURVEY -~ \ CHART NO \\..;. ' NP,UTICAL MILES (1 :40,000) ~ :. :c. 0 \~:~,/' ~......:===~=====-~!i;;,$...&... =;;2;= "1\:-'lo, \ <: : J - 0 ~ { 4.-;f" ~a.., _... rr-.,::; ~ ~: ~~;!=" ' '. ~~~~~~o:.,:t:;"> ~- -:..._. -,.... " '. ' ' ! ~.. '.. ~ ". ~--,.~"', ' -;...., "/. - ;, -.., ;~ ~--"1'- - ~ "!: :6J 4 ".II> ~ ~ _,.,., ~ " c. ~... ('... ~ ~-, ~-.. ' '< ~ 0 ~..., ~. ADJOINING CHART N ;,.. I. "; ;. I ' "l' I ~ /.I' I 0:: I.:t' f ~ I. I : I ' ~Inc. P.O. Box Aberdeen Road, Matawan, New Jersey ( 20 l)

33 Sandy Hook Bay Map #6 (#46-#54) Sandy Hook Bay starts from the Naval Ammunition Pier at Leonardo and includes those marinas in Atlantic Highlands up to the Route 36 Bridge at Bahrs Landing on the Shrewsbury River. This sub area consists of 15 marinas with a total of 1,513 slips (22.5% of the region) and 780 winter storage spaces (14.7%). Summer slip rentals start at $22/ft and increase to $27.50 and $30/ft at choice locations. Winter storage rates average one half of summer rentals ($8-$13.50/ft). Sandy Hook Bay itself is not considered a power or sail boating area per se, but is the access to the Raritan Bay and open ocean beyond Sandy Hook. The Shrewsbury River empties into Sandy Hook Bay at Highlands and is the avenue of access to the ocean for boats moored in both the Navesink and Shrewsbury Rivers of Monmouth County. Since 1975, the edge of the Shrewsbury River at Highlands has experienced a resurgence of good restaurants overlooking the water along Shrewsbury Avenue. The presence of these restaurants make it a favorite docking spot for both local and transient boaters. The Sandy Hook Bay is the first area where boating can be combined with swimming beaches in Sea Bright and Monmouth Beach. This area has long been a summer vacation area. Recently, erosion of ocean beaches has decreased its importance as a

34 -30- beach area, with much of the beach swimming now occurring to the south of Asbury Park. The major attraction to boaters is the nearness and direct access to the open Raritan and Sandy Hook Bays, with their fishing and sailing opportunities. The majority of the fishing party boats are berthed in Atlantic Highlands and provide the first fishing opportunity for North Jerseyans along the shore. Other party boats leave from the Shark~ Manasquan, and Metedeconk Rivers, but these are one hour's travel further south. The New Jersey State Marina (called the Leonardo Marina, with 150 slips) is the only state-managed marina in the area. The Atlantic Highlands Municipal Marina is run by the municipality and has a total of 429 slip/moorings, making it the largest in the sub area. Interviews with marina operators and boaters indicated a somewhat negative attitude toward this municipally run marina. The most common complaint was lack of service and attention. Boaters felt they did not receive adequate dockside help and were treated in an indifferent manner. The Atlantic Highlands Municipal Marina has a launch ramp service for $75/season, where a boater can launch a boat and park his car and trailer an unlimited number of times. The launch ramp activity, according to the marina personnel, was becoming more popular with boaters who did not want or could not afford a slip. Larger size boats (above 19') were being

35 -31- launched at the site. In the State of New Jersey, any size boat can be trailered providing it does not exceed 8 1 in beam (width). If wider than 8 1, it must be trailered on a flatbed truck. The Atlantic Highlands Municipal Marina is presently planning to install more floating docks to accommodate boats. They see a trend toward smaller boats. At present, they have a three year waiting list for slips and a two year waiting list for moorings.

36 SANDY HOOK BAY COMMENTS Map # Marina No. of Slips Summer Rental No. Winter Winter Storage Rental Wait % List Pwr/Sail Other 47 Leonardo Marina Leonardo, N.J Frank's Boats, Atl. Highlands, N.J. 36 $ /ft.S.e9S I w tv I 50 Atl. Highlands Yacht Club Atl. Hlnds., N.J. 49 Atl. Hlnds. Muni.Marina Atl. Hlnds. 315 Slips 104 Moor. $25/ft.Avg. 200 $12/ft. Avg... S+W 75/25 Party Boats Charter Boats 51 Sandy Hook Bay Marina Highlands, N.J. 200 $27.50/ft./ Pwr 30/ft.Sail 225 $13.50/ft. 52 Captains Cove Highlands, N.J. 97

37 SANDY HOOK BAY CONTINUED COMMENTS Map# Marina No. of Slips Summer Rental No. Winter Winter Storage Rental Wait List % Pwr/Sail Other 53 Hlnds. Marina, Inc.l05 Hlnds. N.J /0 Jack's Landing Hlnds. N.J. 0 0 RWBT Rental 13@ $12/Day 54 Bahr's Pier Seven Highlands, N.J Bahr's Landing Highlands, N.J. 40 I w w I 56 Machays Landing Sea Bright, N.J. 27 $8/ft. 57 Tropical Inn Marina Sea Bright Mountain View & Malabu, Sea Bright, N.J The Quay, Sea Bright Sea Bright Marina, Not in operation 12/80 60 Sea Bright 61 Ocean Marina Rumson, N.J. Total

38 -34- Map =#=7 - Navesink River ~Inc. P.O. Box Aberdeen Rca~ Matawan, New Jersey (201)

39 -35- i' \ I 1.8 Navesink River Map #7 (#56-#67) The Navesink River extends from Red Bank to Sea Bright. It is a relatively shallow river which provides excellent sailing for smaller sailboats. It is, however, too shallow for large sailboats which use the Raritan Bay. Six marinas located along the south bank of the river contain 505 slips/moorings (7.7% of the region's total} and 193 dry storage spaces (3.6%). Summer rental rates average $16-$18/ft for slips and $125-$435 per season for moorings. Since the Navesink River is relatively shallow (average 7' depth at low tide), it is used by smaller sailboats. Most marina operators surveyed commented they berth mostly smaller sailboats which primarily use the river as a sailing area. The marinas at Red Bank are located 5 nautical miles from the mouth of the Shrewsbury River and the Sandy Hook Bay. This distance is acceptable to power boaters going out into the open ocean, but is marginal and too far for sailboats. Of the six marinas surveyed, each had waiting lists for summer rental, with the only available slips being in the Red Bank area. The Navesink River and its marina facilities should not be competition for the Perth Amboy location. Rather, the river appears to be preferred by Monmouth County boaters with predominantly smaller boats.

40 NAVESINK RIVER COMMENTS No. No. of Summer Winter Winter Wait % Map # Marina Slips Rental Storage Rental List Pwr/Sail Other 62 Barnacle Bills 80 Slips $250+/Seas. s 90/10 Marina, 6 Moor. Rumson, N.J. 63 Fair Haven Yacht 52 Slips $18/ft 100 $9.5/ft s 40/60 Works 70 Moor. $ / Fair Haven, N.J. Seas. 64 Irwins Yacht 105 Slips $16/ft 93 $10/ft S+W 90/10 Works, Inc. 100 Moor. $125+/Seas. Red Bank, N.J. 65 Red Bank Muni. 30 Basin Red Bank, N.J. I w 0'1 I 66 Molly Pitcher - 40 Red Bank, N.J. 67 Sealand Marina Red Bank $8.50/Day Total

41 -37- I..... ~ ~-~ Map #8 Shrewsbury River -~- -I ~..:.1 1 I....I I.19..,..., P.O. Box Aberdeen Road, Matawan, New Jersey (201)

42 Shrewsbury River Map #8 (#65-#85) The Shrewsbury River lies south of the Navesink River and its mouth is the entrance to Sandy Hook Bay and the open ocean. It is a relatively shallow river (1'-4'depth) except in the channels. There are many creeks emptying into the river which provide many more marina berths than on the Navesink River. Eighteen commercial marinas have 1,433 slip/moorings (21.4% of the region's total) and 1,379 winter storage spaces. Summer slip rentals range from $16/ft to $25/ft. Five marinas are larger than 100 slips while the balance are smaller, averaging slips in size. The largest marina is Nauvoo's Marina in Sea Bright with 165 slips (all power). Most marina operators surveyed estimated their marinas were used 80-90% by power boats, with very few sailboats. Again, like the Navesink, the shallow water and long distance to open bay sailing were constraints to sailboats. The Shrewsbury River and its many creeks used primarily by power boaters for access to the open ocean via Sandy Hook Bay. Most marina operators commented that their customers were local boaters. One particular operator commented that a few of his customers were not renewing slip leases and were moving to slips

43 -39- further north and closer to home. He also commented that these slips were quickly filled by boaters who had previousiy berthed farther south (Brielle along the Manasquan River} and desired to be further north. Of the 18 marinas surveyed, each had a waiting list with few or no empty slips open for summer rental.

44 SHREWSBURY RIVER COMMENTS No. No. of Surruner Winter Winter Wait % Map # Marina Slips Rental Storage Rental List Pwr/Sail Other 68 The Yacht Shop 12 $16.50/ft Sea Bright, N.J. 69 Tosel Marine Basin /Seas. 90/10 Sea Bright, N.J. 70 Covesail Marina Sea Bright, N.J. 71 Chris' Landing / $7/ft S+W 98/2 ~ 0 Sea Bright, N.J. Seas. I 72 Anglers Marina 55 $16/ft 60 16/ft s l00/0 Sea Bright, N.J. 73 Surfside Marina 71 $25/ft S+W 99/1 Sea Bright, N.J. 74 Trade Winds Marina 100 $23/ft S+W 90/10 Sea Bright, N.J. 75 Nauvoo Marina 165 $ / 250 $1.10/sf 100/0 Sea Bright, N.J. Seas. 76 Weston Marina Monmouth Bch., N ~ J /0 I

45 SHREWSBURY RIVER CONTINUED COMMENTS No. No. of Summer Winter Winter Wait % Map# Marina Slips Rental Storage Rental List Pwr/Sail Other. " 77 Channel Beach 110 Sea Bright, N.J. 78 Atlantis Yacht Cl. 65 Membership 100/0 Sea Bright, N.J. 79 Channel Club 150 $ / 200 $17.50/Wet S+W 80/20 I ~ Sea Bright, N.J. Seas /Dry 1-' I 80 Mihm Boat Works 75 Sea Bright, N.J. 81 Monmouth Sailing 85 $17/ft /ft 0/ Dry Trailer Center $160/seas. Sea Bright, N.J. 82 Patten Ave. Marina Hi & Dry Long Branch, N.J. Slips 83 Sea Bright Marina 70 $200/Seas. L. Branch, N.J. 84 Wilson Boat Works, L. Branch, N.J. 85 Pleasure Bay Yacht Basin 90 $17/ft 100+ s+w 70/30 Oceanport Total

46 A P P E N D I X #2 Marina Financial Projections Slips 2.1 Revenues Slip Income Gas & Oil Sales Ice Sales Restaurant Lease Boat Maintenance & Repair Miscellaneous Income Revenue Income Summary Expenses Cost of Goods Sold- Gas & Oil, Ice Undistributed Expenses Expense Summary 2.3 Net Income Available for Land Lease Payment

47 -1- APPENDIX #2 -.MARINA FINANCIAL PROJECTIONS- 200 SLIPS 2.1 Revenues The revenue inflow for the proposed 200 slip marina will consist of slip rental; sales of gas, oil, and ice; lease income from a restaurant; repairs; and miscellaneous income. The total income, when the marina is fully occupied, is projected at $318,725 per year which represents $1,593 per slip (Refer to Table #1). Winter storage and hauling are not included in the income stream since there is a lack of available space for winter storage or summer hauling facilities for repair at the Perth Amboy location. Thus, the repair income is limited strictly to operational repairs that can be performed in the water and does not include yard repair items. A full-service marina which has winter storage capabilities can expect to increase its repair income since many of the more expensive repair items, such as hull and engine overhaul, are done during the winter months on a scheduled basis while the boat is out of the water. Additionally, many repairs required in the summer, such as replacement of water pumps in inboard/ outboard or outboard engines, require hauling of the boat. Since this capability will not exist at Perth Amboy, the income will be lost. These items are considered yard repair and are outlined in more detail in the following discussion. Operational repairs consist only of those minor engine and electronic repairs which can be done while the boat is in the water during the boating season.

48 -2- TABLE #1 200 SLIP MARINA PERTH AMBOY, NEW JERSEY PRO-FORMA FINANCIAL PROJECTIONS INCOME: 1. Slip Income Summer Slip Rental $140,305 Resales & Transient Slip Rental 11,500 Party & Head Boat Income 3, Gas & Oil Sales 3. Ice Sales 4. Restaurant Lease 5. Repairs 6. Miscellaneous Total Income $155,405 88,740 12,700 10,000 19,080 32,800 TOTAL $318,725 PER SLIP ( 200) $ $1, LESS:. Cost of Goods Sold: Gas & Oil Ice Undistributed Ogerating Expenses Total Expenses $ 74,660 6, ,150 $190,160 $ Net Income Available for Land Lease $128,565 $

49 Slip Income Summer slip rental is projected at a base of $140,305 per year for 95% of the slips (190 slips). These slips will be rented on a seasonal basis, and it is expected that the boat owners will keep their boats there during the full season. The remaining 5% of the slips (10 slips) will be reserved for transient boaters on a daily or weekly basis. The 200 slips have been sized to accommodate boat lengths ranging from 20 feet to those in excess of 41 feet. The distribution of these slip sizes are based on findings of the Market Analysis section and marina operating statistics publishished by industry sources. 53% of the slips are sized to accommodate boats under 30 feet in length,while the remaining 47% are for boats longer than 30 feet. The average slip size is feet, with 5,470 rentable slip footage in the entire marina (not considering head boats). SLIP SIZING DISTRIBUTION Range Avg. Slip Rentable No. Slips % of Length Length Footage '-25' , '-30' , '-40' ,890 AQ lq 41' % 5,470

50 -4- Summer slip rental rates are projected at $27/foot/boat for the 1982 summer season. The market analysis findings indicate a 1981 rate of approximately $25/foot at competing marinas in the market area, with marina operators projecting to increase to approximately ~26 to $27 for the 1982 season. The average summer slip rental cost is $ per season. Average Slip Size = = 27.35' Average Summer Rental = 27.35' x $27/ft = $738.45/season Summer slip rental income, based on 95% of the slips for all-season boaters, is projected at $140,305. 5,470 Rentable Footage x 95% x $27/ft = $140,305 Additional slip income will be generated from utilization of 10 slips (5% of total} for transients, as well as resales that will occur in the 95% base slip population. The 10 slips reserved for transient boaters are projected to rent at a rate of $20/night. Based upon a two month peak season and a 66% occupancy rate for an average of 40 days' use by transients, these 10 slips yield $8,000 per season. If rented on a seasonal basis, these slips would produce an income of $7,384. ($738.45/slip x 10 slips - $7,384/year). Transient Income: 10 slips x $20/night x.66 occupancy x 60 days = $8,000.

51 -5- Turnover in base slips will create additional income. Boats are sold during the season, and most marina contracts state that slips are not transferable. Contracts on slip rentals usually require a deposit. In the event the agreement is not consumated, the deposit is nonrefundable. Many owners take their boats on extended cruises or long-term vacations. The marina is free in the interim to use these vacant spaces for re-rental or resale to transients. Once the marina has established a reputation and filled to capacity, the foregoing situations will result in additional income to the operator. One marina surveyed indicated a minimum of 2.5% above maximum possible base slip income being derived from this source. This is a common occurrence in areas where slips are at a premium, such as is forecast at Perth Amboy. Considering a base income of $140,305, double slip utilization will create an income of $3,500 per season. Slip Resale Income: Base slip income of $140,305 x 2.5% = $3,500. This amount, added to the transient sales, totals $11,500. The projected plan, based on the Market Analysis, shows two party boats at Perth Amboy. Rental income for party and head boats is usually determined by flat fee per season or a percentage of gross income. Industry practices at New England marinas show some marinas charging up to 10% of gross income for party boat slip rental. The fiture of $1,800 per boat per season is used in these projections and is competitive with the Atlantic

52 -6- Highlands Municipal Marina rates for party and head boat slip rental. The total of $3,600 per year is projected. Party & Head Boat Income: 2 $1,800 = $3,600. Total slip income is projected at $155,405 per year on a fullystabilized occupancy basis; i.e., Base slips Transients & Resales Head & Party boats Total $140,305 11,500 3,600 $155, Gas & Oil Sales Gas and oil will be sold to boats at the marina as well as to transient boats in the Raritan Bay. The nearest gasoline sales facilities to Perth Amboy are at Zuback's in the Cheesequake Creek and at the Lockwood Marina in the Morgan Creek. Boats docked at Sewaren, Perth Amboy, South Amboy, and other points in the Raritan River have to go across the Bay to the Morgan Creek to buy gas. It is expected that a significant portion of these boaters, because they are nearer to Perth Amboy, will utilize the gas facilities that will be established there. Gas and oil sales have been allotted at 77% to the boats docked at Perth Amboy, including the head boats. sales will be made to the general public. The remaining 23% of The majority of all sales is expected to occur on weekends. Sixty percent of the boat slips that will be available at Perth Amboy are projected to be rented to sailboats(120 boats) since this

53 -7- is the only sheltered berthing area in the Bay, aside from Morgan Creek. Gasoline sales to sailboats are expected to be small, due to proximity of open water where they can set sail. Their auxillary engines, or even outboard engines, require small amounts of fuel. Gas sales to this type of boat have been projected at 24 gallons per boat for the season. Based upon a 12-week season, this represents 2 gallons per boat per week, at a cost of about $3.00 per boat. The remaining 40% of the slips will be rented to 80 power boats. It is expected that 50% (40 boats) of_these will use their craft primarily as a weekend cottage, being content to stay at dockside _most of the time, with an occasional nearby trip. Assuming six trips per season, at 30 gallons per trip, seasonal gasoline consumption for each boat will be 180 gallons. The balance of the boats will be more active, probably going around Sandy Hook into the ocean on fishing trips. Considering once a week for such use, plus vacation days, it is estimated that each boats will make 15 annual trips, utilizing 45 gallons per trip, for a seasonal consumption of 675 gallons. Gas consumption for these two types of activities, per boat, is therefore 428 gallons per season. On a 12-week basis, this represents 36 gallons per boat per week, at a cost of $ Hence, gasoline sales are projected at 3,000 gallons to sailboats, 34,200 gallons to power boats, 10,000 gallons to the head boats, and 14,000 gallons being sold to the general public, for a total of 61,200 gallons. At a sale price of $1.45 per gallon, based on

54 prices, this represents total sales of $88,740 per season. Oil sales are considered negligible for the purposes of this analysis, since most complete oil changes will be made during winter overhaul. Of course, there will be occasional motor oil, as well as outboard oil sales, but this income is not considered significant. Gas and Oil Income Power boat sales from marina 80 boats x 428 gal/season/boat = Sailboat sales from marina 120 boats x 25 gal/season/boat = Headboat sales from marina 2 boats x 180 days x.7 weather factor x 40 gal/day. Approximately = Public gasoline sales = 34,200 gallons 3,000 gallons 10,000 gallons 14,000 gallons Total Gasoline Sales 61,200 gallons Gross Sales Revenue: $1.45/gallon x 61,200 gallons - $88, Ice Sales The marina will have ice available for sale to boaters as well as the general public in both block and bag form, through two machines at dockside. The average ice sale per boat is projected at $2.00/day for 28 days during the season. Ice sales to the boats at the marina totals $11,200. (28 days x $2/boat x 200 boats = $11,200). Some of the boats at the marina will have refrigerators and may not be potential

55 -9- customers for ice sales. Much of the sale of ice at marinas is used for cooling and storage of fish that are caught, as well as for keeping beverages and food cold aboard smaller craft, where it may also be used for drinking purposes. Refrigerators aboard larger boats are usually too small to provide the amount of ice needed for fish cooling and storage, and many of the boats 25' and under have no refrigeration capabilities. Sales of ice to the head boats is projected at $1,575 per year. Head boats = 50 people/day x (.70)1/ x (1801/ days x 50%!/) x $.50/person= $1,575. Ice Sale Revenue: Head Boats $ 1,575 Marina Slips 11,200 Total Ice Revenue $12,775 Rounded to $12,700 ll 70% weather discount factor - cross Group, Inc. ll Head boat fishing season - 6 months (May thru October, 180 days); Source: Marty Haines, Captain of Sea Pigeon, Perth Amboy. il 50% market factor: only 50% of people on the boat purchase ice - Cross Group, Inc.

56 Restaurant Lease A small restauraut capable of serving breakfast, lunch, and snacks would be desireable at the marina location, and many marinas have such profitable facilities. Many of the boater~ sleep aboard or arrive early at dockside and seek a nearby restaurant which can serve breakfast or a sandwich to take to sea and eat aboard. While many of the boats would have galleys onboard, many boaters cannot be bothered to cook aboard, and can afford to eat out frequently, which they do. In addition to the boaters, the general public at the marina and the surrounding community are a potential market for a small restaurant having a waterfront view for its breakfast and lunch patrons. The existing restaurants along the waterfront, The Barge and the Harbor Light Tavern, are full-service, sit-down restaurants which are open only for full lunch and dinner and are not open for breakfast. A small restaurant can be located in the Armory Building at dockside and will need approximately 500-1,000 square feet of space for preparation and serving. This restaurant can be open on a year-round basis if sufficient market demand is created at the waterfront by the marina. The Armory Building, when it is rehabed to retail, commercial,

57 -11- or residential use, as well as the local community, are additional sources of patrons for this type of restaurant. Restaurant lease income is projected at $10,000 per year after it has established a reputation. This figure is based on interview comments of marina operators who presently own and rent restaurant space at their marinas. It should be noted, however, that further study based on the specific restaurant operation should be done in the future as part of the Armory development financing plan. Additional lease income from this restaurant is possible by structuring a lease as a percentage of gross income rather than a flat fee during later years. It is assumed that the marina operator will have responsibility for the restaurant located in the Armory Building as part of the over-all marina operation, and thus will realize the lease income as part of the marina. A sublease arrangement between the marina operator and the operator or owner of the Armory Building can be structured. The marina operator will then either lease the space to a restaurant operator or may choose to operate it himself.

58 Boat Maintenance & Repairs Boat maintenance and repairs generate a substantial portion of the income stream to a full-service marina, approximating 20% to 25% of the total income or more. This profit center generates a high margin for work done to customers' boats, both during the summer slip rental period and the winter storage period. In this analysis, the projected Perth Amboy Marina does not have the land space available for wi~ter storage or the capability to haul boats during the summer season. Thus, they cannot capitalize on yard maintenance and repair income. To illustrate this point, we have divided potential maintenance and repair income into two categories. Full-service yard and maintenance repairs are those that can only be performed on boats that are taken out of the water. In contrast, operational repairs are those which can be made to boats while still in the water. Perth Amboy will only be capable of performing operational repairs. An example of yard storage, maintenance, and repair costs charged to a boat owner in a full service marina is outlined in the following table. This example indicates the type of income which will be lost to Perth Amboy. Table #2 outlines only the major cost items charged when a boat is launched in the spring and taken out in the fall.

59 -13- TABLE #2 YARD REPAIR REVENUE: Yard Maintenance and Repair based on ft. Average Boat Length END OF SEASON SERVICE 1. Haul & Store ($11/ft).ll = $ Power Wash Bottom ($1. 50/ft) = Winterize Engine (Inboard) AVG = (Inboard/Outboard) $ SAY $ BEGINNING OF SEASON SERVICE 1. Paint Bottom $2.50/ft X = $ $30/qt X 4 qts = Tune up - Labor $40 + Parts Change Oil $20 + Oil =SAY SAY $ YARD BILL $ End of season service includes hauling and storing, power washing the bottom, and winterizing the engine; and this portion totals $ per boat. Beginning of season service includes painting of the bottom and a tune up at a cost of $310 per boat. These two services alone total $730 per boat. In addition, a full-service marina performs a myriad of other services on boats hauled for the winter; i.e., sales and installation of winter covers, lowering and raising sailboat masts, major engine.ll 1982 rate.

60 14- overhauls, electronic updating, winterizing of toilets and fresh water systems, battery storage, etc. Also, a fullservice marina can provide summertime repairs on boats that must be hauled into the yard to perform that particular repair. An instance of this is replacement of a water pump in inboard/ outboard or outboard engines, which cannot be done in tl">.e water, yet is a common occurrence. Considering these factors, added to the $730 above, a $1,000 yard bill per boat per season is considered conservative. Thus, the lack of winter storage and hauling capability at Perth Amboy is a significant constraint to the income stream. In this case, operating as a full-service yard, the Perth Amboy facility could generate an additional $200,000 income at a 40% profit factor. The lack of these capabilities could also lead to the problem of finding and keeping skilled mechanics. While a full-service yard/marina is capable of employing such individuals on a year-round basis, Perth Amboy will have to resort to part-time help, available only during the summer season. They may not have the experience to produce the quality work needed, although perhaps the marina operator may have this capability himself. Operational repair items are those items which are performed during the boating season while the boat is in the water. These include engine and electronic repair, as well as sail and canvas repair to both power and sailboats. Per~h Amboy is projected to have this capability.

61 -15- REPAIRS 1/ (Op~rational Only) Repair Items to Marina Boats: Engine, Electronic, Some Hull (Operational vs Yard Bill) Power: 80 boats Sail: 120 boats Power: Engine Canvas Repair 80 boats x $90/boat, Netl/ 80 boats x $25/boat ~ = = $ 7,200 2,000 ~: Sail 120 boats x $25/boat/seasonl/ = 3,000 Both Power & Sail: Electronic 200 boats x $20/boat/season~= 4,000 Ma~ina Repair Sub-Total $16, Due to lack of space for winter storage or hauling, only operational repairs can be done while the boat is in the water. These include fuel, engine, and electronic repairs, but not hull, propeller, or shaft work. Approximately $100/boat/ season is spent in yard maintenance and repairs. See detail for Yard Repair Revenue (Table #2) ll This figure represents Net to the operator. The average bill would be $125, including $25 of parts at wholesale purchase cost. l/ Average Canvas Cost - $600 each 5 years - 20% profit = $25/boat/year. ~ Average Repari Bill - 20% profit = $20/boat/year. 21 While considerably higher mark-ups are possible, it is expected at the outset that the marina operator will contract this work to outside shops for 20% of gross bill.