Marina Property Focus Group. Prepared and Presented by the Long Range Planning Committee

Transcription

1 Marina Property Focus Group Prepared and Presented by the Long Range Planning Committee

2 Committee Members Bob Sadler DIOA Board Bill Weber DIC Board Marilyn Harris DIC Board John Cashen Peg Marty Scott Johnson Bryan Tuttle Financial Support Lori Murdaugh

3 Agenda Objectives Background Review Property Options Cost Summary for Options Questions/Comments

4 Objectives To Determine What The Dataw Community Really Wants Develop Possible Marina Property Usage Options and discuss the positives and negatives of those options Provide Range of Financial Benefits/Impacts of Options To Have Each of You Complete a Survey So We can Develop a Property Use Metric Provide Recommendation To The DIOA Board based on Community Input

5 The Property

6 Background Presently, the property continues to degrade Dataw Marina LLC has stated they will not rebuild or further improve the property. Bankruptcy is possible DIOA board commenced discussions with Dataw Marina LLC and a bid of $700,000 was accepted Subject to Island approval The LRP was requested to evaluate community interest for various property uses, so that DIOA can develop a detailed plan for presentation to the community.

7 Cost Considerations Capital Items Property Purchase Clean-up Water Side Clean-up Land Side Haul-out Pier Repair Option Costs Total Debt/Loan Amount Operating Income/Expense Net Annual Member Impact Variations

8 General Property Use Options 1. Do Nothing 2. Open Space/Park 3. Maintain or improve a Dry Stack/Boatyard/Restaurant/Dock and/or a Marina with some Wet Slips 4. Sell Land/Condos

9 Do Nothing

10 Do Nothing

11 Do Nothing

12 Do Nothing Positives No effort required by the Community No capital expenses No ongoing annual expenses

13 Do Nothing Negatives Property continues to degrade and become major eyesore in community Parking lot for gazebo and playground possibly inaccessible No control over use of property (i.e. Oak Island) Hazards in water and on land would remain (liability issue) Existing Marina permitting to rebuild under emergency permit expires in approx. 3 years. (Oct 2021) Potential loss of DIOA dues of over $30,000 per year Negative impact on number of new residents interested in Dataw and property values Negative impact on boaters

14 Open Space/Park Add picture gazebo, picnic table,?

15 Open Space/Park Positives Places current and future control of the property with the Dataw Community Provides usable free space for Community. Potential picnic tables, grills, small dock, community garden, observation tower, pickle ball; Expand family space for events, weddings, receptions, etc. Parking available for gazebo, playground, etc. Improved beauty for Community

16 Open Space/Park Negatives Expensive removal and clean up of dry stack, and boat yard and lift piers Expensive removal of building if not kept Limited to no revenue potential Loss of real-estate marketing and property values associated with marina amenity Loss of Dataw boating community, and boating market draw for Community real estate sales Loss of annual dues Variations Improve building continue existing restaurant space Remove pier Expand park for other uses

17 Dry Stack/Boatyard/Restaurant/Dock

18 Dry Stack/Boatyard/Restaurant/Dock

19 Dry Stack/Boatyard/Restaurant/Dock Positives Community controls use of property/maintain/improves/expands space to enhance Community Control parking for gazebo, playground, etc./control restaurant/bar Provides continued marina service for Dataw Community Provides substantial income to offset costs Provides capacity to dock larger boats and generate additional revenue, provides some transient boat access, expanding Dataw Island exposure Provides unique marine maintenance facility for increased revenue Provides waterfront access to all Dataw Residents Improves real-estate marketing and values with marina amenity

20 Dry Stack/Boatyard/Restaurant/Dock Negatives Does not accommodate all of the Community boaters, due to lack of wet slips Limited transient boater potential, no BIG Grant Capital cost for dock Variations Add dry stack capacity Expand unused space (park/additional haul out/parking) Improve building Add wet slips as demands warrant Leave pilings in Add mooring balls Lease marina operation

21 Marina With Some Wet Slips

22 Marina With Some Wet Slips

23 Marina With Some Wet Slips XXXXXXXX XXXXXF

24 Marina With Some Wet Slips Positives All the positives of dry stack Greater visiting boater traffic. Enhanced real estate market exposure Very limited Real Estate market competition for neighborhoods with wet slips and boat maintenance/haul-out facilities Enhances cash flow for greater overall potential profitability Existing Pilings available for cost savings Increases support and desirability for Dataw boating community Increases amenity options for the Community Dockage and slips can be added as demand is confirmed. No cost until revenue steam is confirmed.

25 Marina With Some Wet Slips Negatives Higher capital cost of construction and improvements Potential permitting concerns as time goes on Exposure to future storms Variations Dockage made by local labor, no power 47 Slip Marina Concrete Docks 59 Slip Marina

26 Sell Lots/Condos

27 Sell Lots/Condos Positives Increases potential membership for the Community Potential revenue on sale of property Limited involvement of the Community

28 Sell Lots/Condos Negatives Change Master Plan/re-zoning with the County, a process that could take years; high probability not be approved Expensive removal and clean up of piers, dry stack, boat yard and building Expense of installing infrastructure to support housing Loss of Dataw boating community, and boating market draw Loss of restaurant/bar for Community use Loss of land use for anything else ever Loss of parking for Gazebo, playground and other events Risk of development failure and another mess left behind Condo 26 units, $720, ,000 each, sell in <2yr.

29 Cost Considerations Capital Items Property Purchase $700,000 Clean-up Water Side Varies Clean-up Land Side Varies Haul-out Pier Repair/Remove Varies Option Costs Varies 10% Contingency Varies Total Debt/Loan Amount Varies Annual Operating Expense Varies Annual Operating Income Varies Annual Member Impact Varies

30 Financial Summary/Financing Options Acquire Property Water Clean Up Land Side Clean Up Pier Repair Restore Land (remove Pier) Option Improvements BIG Grant 10% Contingency TOTAL DEBT Do Nothing Open Space Dry Stack Shore Dock Wet Slips Sell Land Condos Annual Operating Expense Annual Operating Income Estimated Annual Impact on each Member (15 Yrs)

31 Financing Do Nothing Vote No Do Nothing Vote No Acquire Property $0 Water Clean Up $0 Land Side Clean Up $0 Pier Repair Restore Land (remove Pier) na $0 Option Improvements $0 BIG Grant na 10% Contingency $0 TOTAL DEBT $0 Annual Operating Expense $0 Annual Operating Income $0 Estimated Annual Impact on each Member Undetermined

32 Financing Open Space Open Space Acquire Property $700,000 Water Clean Up $516,000 Land Side Clean Up $150,000 Pier Repair Restore Land (remove Pier) na $750,000 Option Improvements $50,000 BIG Grant 10% Contingency $147,000 TOTAL DEBT $2,313,000 Annual Operating Expense $297,000 na Annual Operating Income $0 Estimated Annual Impact on each Member $297

33 Financing Dry Stack / Shore Dock Dry Stack / Shore Dock Acquire Property $700,000 Water Clean Up $300,000 Land Side Clean Up $213,000 Pier Repair $100,000 Restore Land (remove Pier) Option Improvements $150,000 BIG Grant 10% Contingency/Yr 1 Loss $76,000/$200,000 TOTAL DEBT $1,739,000 Annual Operating Expense $556,000 Annual Operating Income $531,000 na na Estimated Annual Impact on each Member $25

34 Financing Expense & Income Typical Expenses Items Typical Income Items Key Assumptions Payroll wgs, txs, ben Dockage fees Staff 3.5 personnel Office supplies Dry Stack rental Grow to 75% slips Licenses/Permits Yard Use fees Grow to 75 in Dry Stack Legal fees Transient dockage Dockage w/elec - $13/ft Small tools & equipment Boat Works Dockage wo/elec - $11/ft Utlty vehicle (fuel/maint) Utility revenue Transient dock - $1.80/ft Equip lease & maint Fuel revenue Dry stack - $13.75/ft Pest control Haul out fees Fuel - $1 > cost Janitorial srvc/trash Hurricane haul out Utilities Restaurant lease Building maintenance Cost of goods/fuel Advertising Taxes Insurance DIOA fees Debt Service

35 Financing Wet Slips Wet Slips Acquire Property $700,000 Water Clean Up $300,000 Land Side Clean Up $213,000 Pier Repair $100,000 Restore Land (remove Pier) Option Improvements $2,024,000 BIG Grant -$850,000 10% Contingency/Yr 1 Loss $179,000/$200,000 TOTAL DEBT $2,866,000 Annual Operating Expense $887,000 Annual Operating Income $765,000 na Estimated Annual Impact on each Member $122

36 Financing Land Sell/Condos Land Sell / Condos Acquire Property $700,000 Water Clean Up $516,000 Land Side Clean Up $150,000 Pier Repair Restore Land (remove Pier) Option Improvements BIG Grant na $750,000 Uncertain 10% Contingency Uncertain TOTAL DEBT >$2,116,000 Annual Operating Expense Annual Operating Income na Estimated Annual Impact on each Member Undetermined

37 Financial Summary/Financing Options Do Nothing Open Space Dry Stack Shore Dock Wet Slips Sell Land Condos Acquire Property $0 $700,000 $700,000 $700,000 $700,000 Water Clean Up $0 $516,000 $300,000 $300,000 $516,000 Land Side Clean Up $0 $150,000 $213,000 $213,000 $150,000 Pier Repair na na $100,000 $100,000 na Restore Land (remove Pier) $0 $750,000 na na $750,000 Option Improvements $0 $50,000 $150,000 $2,024,000 Uncertain BIG Grant na na na -$850,000 na 10% Contingency/Yr 1 Loss $0 $147,000 $76K/$200K $179K/$200K Uncertain TOTAL DEBT $0 $2,313,000 $1,739,000 $2,866,000 >$2,116,000 Annual Operating Expense $0 $297,000 $556,000 $887,000 Annual Operating Income $0 $0 $531,000 $765,000 Estimated Annual Impact on each Member (15 Yrs) Undetermined $297 $25 $122 Undetermined

38 Next Steps Complete Focus Group Discussions by Oct. 23, 2018 Develop Focus Group Recommendations based on Community Input Present Focus Group Recommendations to the DIOA Board by Oct 29, 2018 DIOA Board to Conduct Town Hall Meetings Nov. 5 8, 2018 DIOA Membership Vote Dec. 21, 2018

39 Questions/Comments/Survey

40 Thank you for your time and attention!