ANASQUAN,
N.J. - Tony Sa considers himself lucky to have a spot for his boat this
summer at Hoffman's Marina, which is next door in Brielle and is one of
the Jersey Shore's legendary sports fishing marinas. But he knows what
is waiting for him next spring: a night on the floor of the Manasquan
Township municipal building with all the other boaters hoping to snag
a scarce municipal boat slip.
Next summer
or soon after, Hoffman's will become the latest in a long line of Jersey
Shore marinas to rip out the boat sheds and machine shops and storage
yard to make way for a waterfront luxury condominium development.
"It's
all the condos," Mr. Sa said as he pulled his boat, the Three Amigos,
out of the water to have the motor serviced. "Every year, there's
less and less boat slips and more and more people who want them. And next
year I'm going to be one of them."
Recreational
boating is a major part of the summer scene along the Jersey Shore, on
Long Island, in Connecticut and along the Hudson River. But with federal
excise taxes on yachts repealed and sales representatives reporting more
people buying with a post-9/11 "live for the moment" eagerness,
a common complaint is that places to keep, fuel, repair and store boats
over the winter are being eaten up by the boom in waterfront real estate.
In Florida,
where so many boating trends begin, the problem is so acute that yacht
sales representatives report buyers putting down a deposit on Friday and
demanding it back on Monday, after a fruitless weekend search for dock
space.
"The tough
thing is, this isn't a business you can make a lot of money in, but you're
sitting on a gold mine in terms of the value of the land," said Tom
Kowalsky, a dockhand at Oceanic Marine on the Navesink River in Rumson,
N.J.
No one knows
how many boat slips there are in the New York region, or how many fewer
there are than before, but the complaints have become so loud that the
New Jersey Marine Trades Association has started a survey of member marinas
to find out.
"Obviously,
I've seen and heard the same thing," said Melissa Danko, executive
director of the association. "So it's on our radar screen and we
are trying to reach out and find out what's what."
One
response has been the rise of the dockominium, an idea that started in
Florida's year-round boating environment. Marinas sell boat slips like
real estate, assuring the owner perpetual ownership, tax write-offs for
interest paid if the boat docked in the slip is used as a second home,
and, the idea's promoters say, a chance to cash in on the shortage.
"There's
a huge shortage of slips, especially deep-water slips," said Steve
Plotkin, an owner of Half Moon Bay Marina, a 173-slip dockominium marina
in Croton-on-Hudson, N.Y., about seven miles north of the Tappan Zee Bridge
on the Hudson River, where boat owners buy dock space by the linear foot.
"Real
estate along the river is just hotter than ever, and a lot of these developers
are buying marinas and just phasing things out. So there are many more
boats than there are boat slips."
Mr.
Plotkin was shy about giving his prices, but he said that as an example,
the owner of a 27-foot boat would pay $36,000 to buy a dockominium, a
figure that works out to $1,333 a foot. He charges a flat fee of $800
a year for water and electricity, and, he pointed out, town taxes are
$117 a year, which are tax deductible.
Kevin
Cassidy, an energy broker who lives in Briarcliff Manor, N.Y., is one
of his customers.
"It
was an easy decision for me because there just aren't any others, especially
with any depth of water," Mr. Cassidy said. He said he paid $59,000
for his first dockominium at Half Moon Bay, to dock his 47-foot yacht,
Orion, and then $65,000 for a second one, which he is reselling at a huge
profit.
"The
prices are incredible because, believe me, there are just so few of them,
and they're not making any more," Mr. Cassidy said.
Pete Pawlikowski,
the owner of Oceanic Marina in Rumson, tried to convert his marina to
a condo project without losing his boat slips. He received clearances
to build seven condos where his yard is and hoped to keep his 110-slip
marina open. But zoning rules require two parking spaces for each boat
slip, and he soon realized he would not have room for both condo and marina
parking.
Other condo
developers retain only enough boat slips for a few of their condo owners,
reasoning that the owners do not want to share their backyards with transient
boaters.
In the end,
Mr. Pawlikowski decided to keep the marina as it was, comforted by the
fact that the slip scarcity was keeping rental prices high. "I charge
$160 a foot for a year, and I could double that price and still have every
spot filled," he said.
Christopher
DeFilippo, the owner of River Plaza Marina on the north shore of the Navesink
in Middletown, N.J., said no to condos. He said that a developer had offered
him $12 million for his deep 12-acre lot with its long stretch of waterfront
but that he had turned the offer down in favor of a $4.2 million deal
from town, which will preserve the land as open space - and a marina.
"This
used to be the Garden State, and now it's the condo state - that's why
there are no slips," Mr. DeFilippo said when asked by what logic
he could turn down almost $8 million. "Besides, I'm 82. What am I
going to do with more money?"
Marina owners
also complain that stringent coastal environmental rules governing even
seemingly trivial matters like boat washing make the prospect of cashing
out to a developer tempting. But after a decade of booming coastal development
and diminishing public access, some towns want to protect their remaining
marinas and their crucial boat storage space on land by putting a stop
to further developments.
Brick Township,
in Ocean County, N.J., rezoned all 53 miles of waterfront on Barnegat
Bay two years ago to exclude condo developments. But town planners decided
recently on an exception for Traders' Cove Marina, a rundown wreck of
a place where Jeffrey Fernbach, the president of Paramount Homes, hoped
to build a 52-condo, restaurant and marina complex.
"This
wasn't a case of removing boat slips," Mr. Fernbach said. "We
were going to add 50 of them - it was one of the first things the Department
of Environmental Protection wanted to know about." Yet an outcry
from environmentalists over yet another shoreline condo development prompted
the town board to reverse itself and deny a permit for the project.
Paramount is
suing the town to win its permit, while other developers are looking for
other marinas that might make likely condo sites. Kevin Burns, who operates
Strictly Marine on land he rents by a small cove on the Manasquan River,
said he hoped to buy out the landlord, to assure that he could stay in
business. But he is worried.
"I made
an offer for a fair price and we had a kind of old-fashioned handshake
deal, you know?" Mr. Burns said. "But now the landlord is saying
he's got someone else interested, and that can only mean someone's looking
to bulldoze this place and put condos on it."
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