Shelter Bay Marina a community asset

Shelter Bay community residents learned about their marina’s history, structure and financials at the second “Know Your Community” class held Dec. 12 at the clubhouse.

The class began with interim community manager Pat McGarry saying he was “drafted” to the volunteer marina committee after moving here in 2010 based on his marina construction experience. The marina’s story started with Axel Osberg negotiating a lease agreement with Dewey Mitchell of the Swinomish Indian Tribal Community in the 1960s to dredge a harbor and create a development to provide income for the Tribe. The marina, built and controlled by the Osbergs, was built in 1970.

In 2004 a group of residents purchased the lease and marina from the Osbergs. As a community, Shelter Bay agreed, for the marina would pay 10% of the lease. The borrowed funds were then repaid by marina revenue. This entity – lease and marina – became Shelter Bay Company.

In 2007 an engineering assessment estimated the marina’s lifespan to be 5-10 years. A finance team presented the 2013 Marina Business Plan with two options; 1) take no action and let the facility deteriorate to failure, or 2) rebuild the marina and dredge community waters. The decision to rebuild increased property values, allowed raise moorage fees, built an asset to borrow against to attain a commercial loan for future work and realigned boat slip lengths to market demand which increased marina occupancy and revenue.

Reconstruction shifted smaller slip lengths to larger; to 50 feet from below 40 feet. This brought much higher, year-round occupancy and additional revenue. “Larger slips are occupied year-round – you can’t pick’em up and put’em in your backyard,” McGarry said.

In 2016, the board transferred marina ownership from the for-profit Shelter Bay Company to the non-profit Shelter Bay Community.

Between 2017-2020, docks A-E were replaced funded by borrowed community reserves, repaid by marina revenues and lease contributions made. This year, replacing docks F-I, along with the dredging work, “are the biggest thing we’ve done,” McGarry said. “It’s been 40 years since any major dredging.”

Harbormaster Vanessa Finch outlined the physical plant, tenants, vessel slips and rates ending with budget and financials. “The marina exists because volunteers have committed to preserving it,” she said.

The harbor committee is 11 volunteers plus a strategic marina business and implementation task force of 10. The marina employs one full time harbormaster (Finch) and a half-time person. Nearby La Conner Marina, slightly larger, has nine full time summer employees.

Finch is accountable for day-to-day marina functions, maintains the physical plant and supports the safety/security of tenants/vessels. She also ensures compliance and seeks maximum profitability.

Shelter Bay residents comprise 36% of the marina tenants. Most of the remaining 64% are from nearby counties.

Slip sizes are up from less than 32 feet in 2013 to over 36 feet in 2022 and over 42 feet projected for 2023 including 60 slips 48 feet and larger.

Obtaining a slip requires a signed lease, proof of $500,000 liability insurance, current registration and, if not a resident, a paid security deposit equivalent to one month’s rent. “It’s also going to require going on a wait list,” said Finch. Community members “go to the top of the list,” said Finch giving a thumbs up.

Moorage rates for residents through June 2023 are discounted 10% and range from a per feet cost of $8.27/month ($9.18/month for non-residents) for slips less than 38 feet to $10.79/month ($11.98/month for non-residents) for slips 60 feet and up and end ties. There are no liveaboards.

Marina revenue sources are 60% from non-residents, 34% residents’ moorage fees and 6% other. The marina pays $204,400/year towards the master lease and continues to be profitable with net income upwards of $500,000 for fiscal year 2022. Marina profits are typically transferred to the community’s capital reserve. Complete financial information is at shelterbay.net.

The next class, on community leases and taxes, is presented by Rod Proctor Jan. 10 at 6:30 p.m.