Florida R.E. Boom Not Limited to Dry Land
Rob Quinlivan of Miami has lived in his personal paradise for eight years… living on a 40-foot power boat docked in a public marina.
It’s easy to see why he loves it. The lifestyle has given him adventure, freedom and a chance to experience the region has to offer — minus the runaway prices of the South Florida real estate market.
“Where else can you get living on a waterfront property, you know, some of the best climates in the world?”
The 60-year-old engineer makes a great point. But his slip fees — what he must pay for his spot in the marina, as people often do for parking spots in older, bigger cities — have jumped to $700 a month over the past two years, an increase of more than $200. He and other boaters are finding out the hard way that the real estate boom isn’t limited to dry land.
MARINA OWNERS LOOKING TO SELL
Public places to dock are getting harder to come by, for one, as developers buy up marinas to convert them into private slips for luxury condominiums in popular areas. According to the Boat Owners Association of the United States, development is a constant threat and serious concern for the nation’s estimated 13,000 public marinas, 11,000 of which are mom and pop operations.
“These owners have put a lot of “sweat equity” into their facilities. They’re getting up there in years, and a developer comes along and offers them a big check, and it’s attractive,” said Scott Croft, a spokesman for the association, which is based in Alexandria, Va.
Also, slips are getting more competitive. The real estate boom in some of the country’s prime waterfront areas has been accompanied by a surge in boat ownership. There were 12.78 million boats registered nationally in 2004, according to the most recent U.S. Coast Guard figures available. That is down slightly overall, from a peak of 12.87 million in 2001, but top-ranked Florida’s registrations rose by 79,900 over the same time, and third-ranked California’s climbed 61,700 last year alone.
Pineda Point Marina in Melbourne on Florida’s central Atlantic coast has witnessed the boom since the family-owned business started about 15 years ago. The marina’s 100 slips are always full, and developers have casually the owners about selling.
“I’m not saying that we’re going to stay here no matter what,” manager Scott Jordan said. “If someone was to come around and offered the kind of money that was a ridiculously high price … ”
Jordan said that the rising insurance rates and taxes that accompany the real estate boom have also made the business less profitable. Florida property taxes are soaring all over the place, and jumped 28 percent last year in Jordan’s case, from $11,713 a year to more than $15,000.
The Florida Fish and Wildlife Conservation Commission, a state agency that handles boating access, is concerned about the marina situation and is awaiting the results of a study that will gauge the exact number of facilities lost to development.
“There is, at this point, little that we can do,” said commission spokesman Willie Puz. “Because it’s private property, we can’t regulate it.”
PASSING PRESERVATION LEGISLATION
All hope is not lost. Lawmakers plan to introduce a bill in the state Legislature this year that would encourage local governments to preserve public marinas. Florida Association of Counties spokeswoman Kriss Vallese said that some counties are also taking steps to keep marinas open. As part of its ongoing effort to ease its affordable housing and real estate shortage, Palm Beach County recently approved $15 million to preserve one of its marinas.
Developers say the shortage of marina space is simply another part of the boom. Jim Cohen of Boca Developers said that developers provide a service by modernizing some public marinas that have fallen into disrepair. His Deerfield Beach-based company has set aside about 10 percent of the marina space at one of its properties for public use. But for some boaters, that is just not enough.
“[Florida] is a place for the wealthy who have the money to enjoy the waterfront,” said Jim Edwards, 39, who has lived on his 41-foot sailboat for 10 years. “It has changed from an affordable place for boaters. If you don’t have, you know, a big boat and a lot of money, they don’t really want you.”
The impact of such an incredible surge in real estate prices (due in part to historically low Florida home loan rates) is far-reaching. Florida’s agricultural real estate prices have gone through the roof, putting many small businesses in financial jeopardy. The cost of land has also made life difficult for the state’s ongoing conservation efforts and, perhaps most importantly, rising housing costs and taxes have left many fixed- and lower-income residents at risk.
