Economic Development and Housing

Downtown Boat Slips Project - FAQs and Costs

Review a spreadsheet detailing the expected operating results for the proposed downtown boat slips over 40 years (PDF file)

• What process was used to determine the feasibility of the project?
• How much will the project cost?
• How can the city ensure that the projected costs are accurate, and that the actual construction costs won't be higher?
• What protects taxpayers from paying cost overruns? How has the city ensured that the numbers will work?
• How can a boating facility like this really benefit the downtown business district?
• If the average rates in the region are higher, why not raise them?
• Did the city spend taxpayer funds to influence the public's votes?
• What about other improvements to Coachman Park?
• Will this project eliminate future opportunities to make Coachman Park green to the waterfront, without streets and parking?
• Won't the boat slips affect the views from Coachman Park and the waterfront?
• Did you look at the option of placing slips only in the area south of the bridge?
• Has the city obtained the permits and approvals to build the slips at this site? Is it too close to the channel?
• What about hurricanes?
• How will the wave attenuators affect the water quality near Coachman Park?
• What if the facility is destroyed by a hurricane or other disaster?
• Is this project going to be vulnerable to wind and waves from the north?
• What is the potential for oil and gas spills?
• What about other effects on the environment?
• How will the city decide who gets a slip at the new facility?
• What's the timeline for the project?
• Is the water deep enough?
• What are the expected operating results for the proposed downtown boat slips over 40 years?

Q: What process was used to determine the feasibility of the project?

A: The city hired a national firm to conduct a market study and financial feasibility analysis of the project. Engineering experts have examined everything from the wind and wave effects in Clearwater Harbor to the sea grasses along the waterfront.

Q: How much will the project cost?

A: The project will cost $11 million.

Q: How can the city ensure that the projected costs are accurate, and that the actual construction costs won't be higher?

A: Even with an unprecedented spike in construction costs over the last three years, Clearwater has completed the majority of its construction projects on time and under budget. To ensure that the construction figures were conservative, we asked two companies to provide estimates based on their projected costs to build the facility in 2007. A third consulting company also provided estimates based on the costs of other, similar projects. The Finance Department then used these figures and increased them by 7% annually, then added a 15% contingency.

Q: What protects taxpayers from paying cost overruns? How has the city ensured that the numbers will work?

A: Finance officials, industry professionals and expert consultants have all participated in the feasibility study for this project. In all cases, the numbers used have been extremely conservative to ensure that they will be accurate.

• Construction prices have stabilized considerably since the unprecedented run-up in material costs seen from 2003 to mid-2006.
• Construction costs were projected by two builders and a consultant, then increased 7% per year and a 15% contingency was added.
• Projected bond rates were increased by 1% over current market rates. Finance professionals expect the actual rate to be much lower.
• NEW! - Projected financing does not include the $1.2 million state/federal grant the city has just received.
• Slip rates are well within the regional average for a facility of this kind.
• The city always reserves the right to adjust slip rates accordingly in order to meet revenue objectives.

In every step of the process, Clearwater officials have been cautious and conservative in its projections. As with any venture, there is always some level of risk. Every effort has been made to plan for the uncertainties that come along with a new project like this.

Q: How can a boating facility like this really benefit the downtown business district?

A: Dr. Ed Mahoney of Michigan State University recently has presented findings that, nationwide, the average boater spends $103 per day for day trips and $588 for overnight trips. Mahoney is one of the preeminent scholars on the marine trade. Last year, the Beach Marina recorded more than 4,500 overnight stays. Many of these boaters spent multiple nights at the Marina, exploring the area and visiting local restaurants and shops. These overnight visitors, along with daytime visitors who can use the facility for free, will also be contributing to the downtown economy. Look at areas like Dunedin, St. Petersburg, Sarasota and Baltimore, and you’ll see how downtown boating facilities can make a positive impact on the overall downtown experience.

Q: If the average rates in the region are higher, why not raise them?

A: The $15.50 per foot/per month rate is consistent with the local market, and the $2 per foot/per night rate for visitors is the same as the Beach Marina. At this rate, the facility is projected to operate at a profit. Because this is a new product in a new location, our interest is in setting a price that is reasonable and fair. As with any business enterprise, if demand outpaces supply, the city reserves the right to adjust rates upward accordingly.

Q: Did the city spend taxpayer funds to influence the public’s votes?

A: After the last referendum, voters were polled about their opinions on waterfront improvements. Specifically, Clearwater voters asked for a single-subject referendum with specific visuals and financial information. $62,000 was budgeted to provide information about the proposal, but the city spend only $53,000 of it. Half of that amount was used to create animations and visuals from multiple angles, so that voters could clearly see what the project would look like. The remainder was used to provide details specifically to people like you who are interested in the project.

Q: What about other improvements to Coachman Park?

A: Any major improvements to Coachman Park must be approved by Clearwater voters in a referendum. Twice, plans have been brought forward which some groups actively opposed and were ultimately rejected. As a result, the city has followed the will of the voters and decided to bring forward one improvement at a time, allowing for full and meaningful public discussion of each issue. The boat slips project, because it can be self-sufficient, was brought forward as the first part of that plan. Proposals for expanding the green space in Coachman Park and making other park improvements will follow.

Q: Will this project eliminate future opportunities to make Coachman Park green to the waterfront, without streets and parking?

A: Absolutely not. It actually would do the opposite. Long-term plans for Coachman Park would eliminate the Drew Street "loop" and replace the Harborview Center parking with expanded green space. Access to the boat slips would be routed to Pierce Street, and Cleveland Street from Osceola Avenue to the waterfront would become a pedestrian promenade. Parking would be relocated to another location, either under the bridge (where parking currently exists) or at the top of the bluff. Everyone shares the desire to expand the green space in Coachman Park, which will likely be brought forward in a future referendum.

Q: Won't the boat slips affect the views from Coachman Park and the waterfront?

A: The question of views from the waterfront is a subjective one. Many people enjoy looking out over a marine facility, or walking along the waterfront where boat slips exist. In Clearwater, the majority of the slips will be located south of Coachman Park (see figure 1) where they will not interfere with an open view. Based on our renderings, the view will not be significantly interrupted by the facility (see figures 2 & 3).

Q: Did you look at the option of placing slips only in the area south of the bridge?

A: When this idea was brought forward, it was reviewed to determine the financial feasibility of doing so. It was found that placing slips only to the south of the bridge would reduce the amount of available space for overnight visitors by more than 50%, would virtually eliminate the available free space for daytime visitors, and would reduce the available for-rent slips by more than 30%. These reductions would make the project operate at a cash deficit. In addition, it would eliminate the connection to the public promenade and the existing Drew Street Pier building, which will be used as a security office and restroom facility. When all these factors were considered, it was found not to be a viable option.

Q: Has the city obtained the permits and approvals to build the slips at this site? Is it too close to the channel?

A: Clearwater's engineers have discussed the location of the docks with the appropriate permitting authorities. All are comfortable with their location in relation to the Intracoastal Waterway channel. A host of permits and/or approvals will be required from city, county, state and federal agencies during the final permitting and design of the project.

Navigational safety is of particular concern to several of these review entities and will be thoroughly reviewed during the final permitting process. A setback variance from the Intracoastal navigational channel will be requested during the permitting phase. We expect the variance to be granted given the existing channel width and depth, the minimum wake zone for the area, the absence of significant commercial boat traffic (i.e. barges) and the history of similar agency approvals. There are no plans to request that the channel be moved.

Q: What about hurricanes?

A: The facility is being built to withstand the effects we may see if directly hit by a high Category 2 storm. The floating concrete construction allows the docks to rise and fall with the tides, greatly increasing their durability in storm events. The exterior sections of the docks are protected by “wave attenuators,” specially designed to reduce wind and wave impacts in the facility.

Q: How will the wave attenuators affect the water quality near Coachman Park?

A: The wave attenuators planned for this facility circulate far more water than traditional, fixed wave attenuation or closed basins. They are floating concrete structures, which allow water to flow freely underneath with the tides, constantly refreshing the water along Coachman Park. In addition, the floating structures provide surface area for the growth of shellfish, sponges and other natural biological filters.

Q: What if the facility is destroyed by a hurricane or other disaster?

A: Clearwater facilities are currently self-insured for the first $500,000 in losses. The city has more than $20 million in reserves set aside to pay such losses. In addition, Clearwater purchases more than $400 million in additional insurance coverage. For the boat slips, the city has included $95,000 in its financial projections for purchase of insurance, which increases 3% annually over the life of the project.

Q: Is this project going to be vulnerable to wind and waves from the north?

No. The facility is clearly protected from the west, northwest and southwest by the proposed wave attenuator docks on the perimeter of the facility. The final design may use a combination of fixed and floating dock structures to protect the facility from wind and waves. Additional shoring (rip rap) will be placed on the west and north sides of Pierce 100 to further reduce waves, providing additional protection to the docks, boats and seawalls. The floating structures also allow for a free flow of water underneath the facility, which aids in filtering the water and keeping the facility clean (unlike most closed basins).

Q: What is the potential for oil and gas spills?

A: There will be no fuel docks, eliminating the potential for spills associated with such a facility. At its closest point to Coachman Park, the facility is more than 100 feet from shore. The closest permanent slips are even further from the park.

Q. What about other effects on the environment?

A. The new facility will actually help to protect sea grasses both north and south of the Memorial Causeway Bridge. Boaters will no longer be able to pull in to the sea grasses on the shore, which has been a primary source of damage.

Q: How will the city decide who gets a slip at the new facility?

A: Those interested in renting a slip are being asked to register their interest in advance. The city will then hold a random "lottery" drawing for slip selection. First priority will be given to residents of Clearwater.

Q. What's the timeline for the project?

A. The goal is to begin construction in October 2008 with completion by the end of 2009.

Q. Is the water deep enough?

A. Yes. As part of the study, engineers looked at mean low tides at the project site. These tides range from 4.5 feet at the smallest slips (closer to shore) up to 15.5 feet where the larger slips are located.

Q. What are the expected operating results for the proposed downtown boat slips over 40 years?

A. Review a spreadsheet detailing the expected operating results for the proposed downtown boat slips over 40 years (PDF file)