Dock your boat at a Miami city marina? Fee hikes and other changes could be coming
Miami commissioners have for years pondered how to squeeze bigger profits out of city-owned marinas, an exercise that has included failed redevelopment bids and questions of whether the city or private operators can yield more dollars for public coffers.
And once again, at the request of the city commission, administrators have produced a menu of potential options, this time including increased dockage rates at several city marinas, expanded capacity and a slew of physical improvements that officials estimated could yield about $13 million in new revenue from the city.
Commissioners got a first look at the marinas proposal Thursday. There was no vote, but the suggested changes could be considered at a later date by the commission.
Staffers said with increases to most dockage rates of about 50%, the city would see an estimated $7 million in new income. The suggested increases drew a reaction from Commissioner Ken Russell, whose district includes much of the city’s waterfront. The commissioner noted that the proposed monthly rate increase for people living aboard their vessels at Dinner Key Marina, from $24 per linear foot each to $39 per linear foot, could be heavy.
“Not all of these people are wealthy yacht owners,” Russell said. “Some people are just a local photographer who lives on his boat in this marina and pays us rent. There are people who run a small business or retirees. So some of them have fixed income and this is their home.”
Staffers proposed increasing the monthly transient rate at all marinas by $18, from $42 per linear foot to $60 per linear foot. The city also suggested the long-term monthly rate for commercial vessels should increase by $6, from $25 per linear foot to $31 per linear foot. Other increases are suggested for MiaMarina at Bayside Marketplace and the Dinner Key Marina.
Barcena said the suggested rates were the result of a market study that looked at city-run and private marinas in several South Florida counties, and that they are merely a starting point for the conversation.
“This is a living document,” said Anthony Barcena, the city’s marinas manager, who presented the analysis. “This can be changed. These are suggestions from our staff.”
The city staff suggested expanding dry storage and building a mooring field at the Miami Marine Stadium Marina on Virginia Key, a controversial idea that drew opposition from rowers and others who use the basin. The city projected about $2.6 million in revenue with 50 extra dry slips and 97 moorings. Russell suggested that cutting the number of moorings in half might be a fair compromise.
Overall, the city’s real estate department proposed about $3.5 million worth of physical improvements to four marinas. The improvements, together with rate increases and expanded capacity, would generate $19 million in revenue three years after the changes are made, according to city estimates. By comparison, the department reported $6 million in revenue in 2019.
Commissioners focused their discussion on the question of whether the city should privatize all or part of their marina operations. Several marinas are currently operated by private companies with long-term leases.
The Rickenbacker Marina, the subject of several scuttled redevelopment plans and legal battles, could be taken over by the city immediately, according to Miami City Attorney Victoria Méndez. She said the terms of a legal settlement allow the city to take over the property from the longtime operator, Aabad Melwani, but commissioners have decided to keep the status quo for the last few years.
She acknowledged that if the city were to do that, a lawsuit from the current operator would likely follow.
“We can take it over and run it ourselves,’” she said. “But of course, it will be an issue of litigation.”
Commissioner Manolo Reyes said the city should consider running its own marinas and putting restaurant and bar operations out to bid. Commissioner Joe Carollo said he doubted the city could do a better job than the private sector. The commissioners agreed to revisit the recommendations in the future, possibly with more analysis from an outside firm.
This story was originally published May 6, 2021 at 8:25 PM.
