For about three months now, local taxpayers have been the proud owner of the Chestertown Marina, which is so far operating just slightly in the black. But that could change with unexpected repairs due to a lack of much needed maintenance, said Chestertown Town Manager Bill Ingersoll.
“We’re at just a little better than the break-even point if you don’t allow for capital improvements…the numbers just barely work,” Ingersoll said. “But the marina is suffering from deferred maintenance.”
He said revenue from slips and launch fees just cover the operational costs and the debt service — but an unexpected repair or emergency could easily put the current operation in the red.
The town was just awarded a grant of $2,500 from DNR for emergency repairs to docks in front of the Fish Whistle Restaurant. The dock there is currently closed to foot traffic.
Ingersoll said the long term outlook for the marina will rely on three other grants valued at $740,000 from the Waterway Improvement Fund, which is administered by the Maryland Department of Natural Resources.
The biggest grant of $500,000 has been applied for and would pay for dredging – with the hope of attracting larger boats to the marina. Ingersoll said fees associated with larger boats visiting the marina could be significant.
“Dredging will make a lot more slips available than there are now for larger boats,” Ingersoll said.
There is also no matching requirement to secure the dredging grant.
Another grant of $200,000 has been applied for to cover bulkhead replacement and repair, but the grant requires matching funds within a year of the award.
These two major grants are awarded annually and rely on appropriations from the Maryland Legislature in DNR’s budget.
The third critical grant of $40,000 for engineering was just awarded and will pay for the design and planning of the marina.
“Now we have the funds to start designing,” Ingersoll said. “Our plan all along was to get grants, which is the biggest advantage of the public owning the Marina.”
Ingersoll challenged the notion that local governments should not be involved in operations that private companies can do more efficiently — an argument that was echoed many times by opponents when the town was considering the marina purchase.
“We have a better standing to apply for these grants because we are the owner now,” he said. “The marina is suffering from deferred maintenance because the numbers didn’t work for private operators. One good owner after another tried.”
He said the town was in a position to apply for and win grants and also weather the lengthy permitting and approval processes.
“The availability of grant funds…in the future is the key to this,” Ingersoll said. “It’s a lot of work and we’re going to do it.”
He said the outlook is to upgrade and expand the Marina over the next 3-5 years.
The town bought the marina in April with a short-term loan from Peoples Bank of $2 million. The loan was paid off two months later with a bond from the Maryland Infrastructure Bond Program. The bond rate is at 3.4 percent.
Keith Thompson says
“The availability of grant funds…in the future is the key to this,” Ingersoll said. “It’s a lot of work and we’re going to do it.”
It’s just one of the keys to it. Just as important (if not more so) is the economic development of the riverfront, based on preservation of public access due to the town’s marina ownership, that will make the riverfront an economic hub as well as build the business revenue to cover what the grants won’t cover. Simply getting the grants to improve the property isn’t enough; it’s what you do with the investment that counts.
fletcher r. hall says
The marina could be an atrractive addition to the Chestertown waterfront if promotrd and manageded efficiently, professionally and effectively. The marina and indeed Chestertown must become a destination for both to be ecnomically healthy.
There is a need to entice boaters to make the treck up the besutiful Chester river to the port of Chestertown. They deserve and desire well maintained slips, shower facilities and easy assess to the commercial establishments they wish to frequent and utilize.
I is easy to understand, that in these unstable economic times that the vast amount of funding will not be totally dependent on grants. Both state and federsl grsnts are problsmrtic in today’s economic climste. Developing any project based significantly on anticipated government grants is indeed a risk.
In the case of the marina, the risk takers are the taxpayers of Chestertown.
joe diamond says
Fletcher,
I’m with you……..whatever it takes to get those cruse boats to anchor off Chestertown! I is a beautiful river in each direction and the town could off much more than is here now. Since the river rarely freezes this could be a year round deal; think Tolchester +.
Joe
Ken Noble says
I would love to pull my boat our here for the winter like I used to before it was purchased and the price for a winter pull out nearly DOUBLED. What will the price of a winter haul out be….? Is this going to be a little more favorable for the 99 percent sailor? Do the more than $6800 in property taxes that I pay withing the municipality of Chestertown put me in a position to exercise a lower rate than….say the guy from Wilmington and Philly pays in Rock Hall for these services? It would be very nice to work on my boat in the Chestertown Marina and HAVE LUNCH in Chestertown and….go read the L.E.D. sign to see what I am missing at the Garfunkle Theatre and maybe even come back to town and start to understand how y’all retirees enjoy evenings in the placed ville, you know? So. how much for a winter haul out….34 footer? Be glad to come back…give you all some MORE business perhaps.
That would be good, but what would be better is the establishment of a real public sailing instructional program for ALL local kids. We now have the requisite community swimming center to achieve swimming skills. The next thing would be to acquire four to six small keelboats (BULLSEYES…Twinky, you reading this?).
The river is very narrow, shallow and tricky for sailing instruction, but given the right boats at the right place and the right instructors (still looking for a JOB here after 21 years)…we could have our juniors taking the juniors from the Baltimore Sailing Center, an excellent model to follow in this regard. Look them up. Utter and pure SOCIALISM. Let’s go for it!
\
Ken Noble
US Sailing Keelboat Instructor…USNA, Washington College
eliott bruce says
.Having represented many water front projects along delaware river water front [Ikea, Foxwood .waterfront sq.]have a way to turn around the projects of marina.The town made two major mistakes1]paid $500,000 to much {was it a purchase or bail out for owners?]2] had to include resturant so have additional source revenue.The owner of marina also owned resturant and town should have said include resturant or no sale..Reposition resturant by 1]take down store ,move store to full line marine store to empty building next to Imperial Hotel.2] take out wall from bar fronting water to give great water view.3] Build out deck over where store was. 3] Put in upgraded showers and bath room on lower level.4] have chester river ass.[have lot of funding] buy a river boat that is used as water taxie for boats anchored out.There is major funding in market place to do this.If want to think out of box have river boat in large dock to do river tours may be even have some slots;after all owner of Kent News one biggest casino owners in world.
S Pennington says
So what we’re saying is the town didn’t do even the most basic due diligence to discovered and assess deferred maintenance before completing the purchase. All I had to do was walk by the yard and look at all the junk boats sinking on land to know that this was a money pit.
The fun is only beginning. Chestertown residents, watch your wallets! I guess the same goes for us Maryland taxpayers as well.
Zach MIlash says
To quote various boaters I interact with in St. Michaels every day at work when they find out I live in Chestertown “Oh you live in Chestertown? We went there once but didn’t like it. There is no where to dock, and nothing to do in town!” Fixing the marina for larger boats and better services is key, but that alone wont bring people into town.