Working class boating crunch is here.

self | April 9, 2006 | Capt. Tom

[Capt. Tom]

Another working man's boating disaster is on the way.

The economy is good; but the high prices of marina fuel, marina slips, boat insurance, maintenance, is going to kill boating for a lot of working people starting this coming season.

I see a repeat of the early 1990s, when I moved from the Boston area to Boston's south shore. I went to a local marina and asked to get on a waiting list for a boat slip, I knew it would take years to get in. I was laughed at, the marina operator told me he had a waiting list for slips equal to all the boats in the marina and I was wasting my time-two years later in a bad economy, they had several empty slips for the entire season.

I see this happening again. When the people in the marinas bail out for economic reasons, as I expect will start this season, many people on the waiting lists will find out they can't afford the slips,and the fuel prices either.

Non-boat owners can't relate to filling up a boat fuel tank and spending between $100 and in the case of big twin diesels in a sportfisherman a thousand dollars a fillup.

I brought a 45 Cabo, twin 800 hp diesels up from the Bahamas last spring with the owner onboard. He put $8,700 of diesel into the tanks. Now most working men don't have boats that big, and with that much horsepower,or that kind of money for fuel. I am talking about working class boaters who don't have a lot of money left over each week to pay those really high fuel bills that started last season.

Boats use a lot of fuel (1-3 mpg). If you have $3.00/gallon to deal with ashore, the boat owner has $3.30 - $3.80 to deal with in the marina.

It's not just the fuel, the rising slip fees are another factor. In my area now, they are from $100/foot to $175/foot for a boat in a slip for the season. Usually May thru Mid October.

Last season was the economic handwriting on the wall, but most boaters toughed it out. The reality of economics will take its toll this season.

I see ancedotes indicating the boating problem right now. The boat I use on charter has been in the water since the end of March; at a year round, ice free marina, that usually has 30 or so boats there this time of year. I counted 13 today. We will move out of this marina to our regular marina in mid May when it opens for the season.

I just don't see fuel prices going down. China and India need more fuel. The mideast is shaky. Hugo Chavez (Venezuela) is a lose cannon. - tom

[Hatteras]

I agree, everybody has their price and when you open up an envelope and see a dollar figure worth more than you have ever made or even seen in your life... Well, personally, I'd have to pull out the old atlas and start researching where my next move will be.

I believe in most of these instance, the majority of the property owners are seniors whose roots are embedded deep in that soil. In most cases though, it won't take much of a salesman to inform them that they may have only 10 to 20 good years left and why not do some traveling, buy that big yacht, etc... Besides, that once, quaint little village turned popular resort has meant tax rates that compete with the average current mortgages.

One solution I have seen that I have some personal knowledge about is conservation easements giving the property owners tax breaks in exchange for agreeing not to develop the property (i.e. condos, etc). In the one instance I am familiar with, the owner of a large piece of property near St. Michael's Maryland (Eastern Shore) maintains all rights and privileges (hunting, fishing, farming, etc...) and has three parcels set aside for beneficiaries to build future homes. The land however, can not be subdivided and sold to commercial entities. This fellow bought the initial property on a point overlooking a scenic river years ago (late 1950s) and as the land surrounding him became available he bought all that up too. The environmentalists love this guy. His thinking was that he just wanted the ability to pick his neighbors. I guess he decided that he didn't need any neighbors after all and finally penned a deal with the World Wildlife Foundation. Now, I am not privy to his finances but he did say that he gets a substantial tax break.

He told me that he kept thinking that he felt as if he was making a deal with the devil but in the end he had to decide what was best for him and his family and when his days are over, if the family wanted to, they could sell the property privately and still make a few million even with an easement in place.

[Sam Cree]

Yes, I've heard of the conservation easements. I guess they are a good compromise, at least, and one that has the advantage of preserving something of the character of these old properties. Some folks are taking advantage of them where I grew up.

I wonder, do these easements trump condemnations by municipalities and local governments who wish to turn your property over to a developer, a la Kelo? I think they may.

[Capt. Tom]

All I can say is, I'm very happy I did not go for the 40' Searay.

Be even more happy now. Just in time for the upcoming boating season.

Iran fears push oil price above $70 RTE ^ | April 14, 2006

Posted on 04/14/2006 5:40:52 PM EDT by West Coast Conservative

The price of Brent North Sea crude oil broke through $70 a barrel for the first time on Thursday evening, fuelled by simmering tensions between Iran and the international community.