MIYC October 2019

Marco Island Yacht Club

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The Riverside Marina Project

This is the most current column about the Riverside Marina Project. Previous columns can be found on the Club website under MEMBER CENTRAL and then the KEY DOCUMENTS tab. Riverside Marina Project Revenue Projections September 29, 2019 Dear MIYC Members, In the previous update, we reviewed costs associated with the Marina Project. This update covers the revenue streams we project. Revenue Streams: • Wet Slip Member Deposits • Marina Operating Fees from Wet Slip Members • Fees from leasing Club-owned slips and our transient operations • Wet Slip Membership Annual Club Dues As noted previously, a prospective Wet Slip Member will gain exclusive access to a Riverside Marina slip by paying a refundable deposit. This approach is similar to other marinas, notably Hamilton Harbor in Naples. The value of the deposit is determined by market values of similar sized slips in the local market area. The data presented in Table 1 indicates the deposit value of each slip, the projected number of deposits anticipated and the total amount of deposits from Wet Slip Memberships.

Table 1. Wet Slip Deposit Projections

In the initial phase of the project, a prospective Wet Slip Member will pay 10% of the deposit value into an escrow account. An additional 20% may be required as part of the construction funding plan on which interest will be paid. Final payment will be due upon completion of the Marina. During the construction phase the prospective Wet Slip Member will have access to the Club. When the Wet Slip Member no longer needs their slip and wishes to terminate, they will receive 90% of the deposit that a new Wet Slip Member pays for their slip. That will terminate their Wet Slip Membership, but they may still maintain Club Membership in another category, such as Full Member. Wet Slip Members will pay an operating fee to offset costs of operating the Marina. Operating costs include labor and related taxes, maintenance, utilities, general & administrative costs, and taxes. Annual projected operating costs are approximately $200,000, based on the above items. The operating assessment will be based on the linear proportion of dock space each slip represents in the marina. The operating assessments will recover the annual operating costs for the Marina except for those slips retained by the Club. The current analysis projects recovering 80% of the operating costs, or approximately $160,000, through the operating assessments, as eight slips will be retained by the Club. Operating assessments are expected to be billed quarterly. (Continued on next page)

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