Pelican Marina Tenants Blindsided by New Ownership and Rent Increases
On May 18 we reported that the Sausalito City Council had blocked the sale of Pelican Yacht Harbor to Cameron Razavi, the owner of neighboring Bridgeway Marina. This was a relief to the almost 100 berthers at Pelican Marina who feared significant changes under Razavi, including significant rate hikes. That all changed on July 2 when Pelican Yacht Harbor learned from a notice at the marina office that Razavi had completed the purchase. This was accompanied by letters to the tenants raising the rates by more than double.
The city council thought that they had the ability to block the sale by not approving the tidelands lease under the marina. Apparently, Razavi shifted to buy the company, Flynn Family Holdings, which owned the tideland lease, in such a way that there was no change in the tidelands lease.
The Marin IJ reported that marina tenant Dane Farber received a rent increase letter raising the rent for his vintage wooden trawler from $1,000 to $2,600 per month and raising the assigned parking space rent from $100 to $200/month. We’ve heard from tenants and from other marinas that many tenants are looking for alternative berthing as they are unable to afford these increases.
We also spoke to our friend, James Dilworth, who has kept his colorfully painted Santana 22, Pip, there for over a decade and he was notified that his rent is rising from $310/mo to $1200/mo.
We’re in an era where everyone is experiencing challenges in the cost of living on all fronts, but the scale of the increase for Pelican Yacht Harbor is way out of line with what anyone might reasonably expect. The cost of slip fees has been rising up and down both coasts, including south of the border.
Sausalito mayor Steven Woodside told the IJ that they will be referring the situation to the Sausalito city attorney to see if they have any recourse.
The situation at Pelican Marina is reflective of the broader issue of keeping sailing accessible and affordable to the public. The Bay and oceans are open to everyone, but the access points are narrowing, causing the price of access to increase to the point where far fewer people will be able to get out to participate in recreational boating. The situation at Pelican Yacht Harbor will have a huge impact on the 100 slipholders in the marina, and we’ll have to wait to see if city councils and communities can have any say in how the scarce land and tidelands along their waterfronts serve the public interest.
Good for the new owners. Just because the slip fees were cheap doesn’t mean they were fair. With increased rents maybe there will be some openings for other people.
That’s ridiculous. Hoping bad fortune on others because of someone’s greed and lack of compassion is egregious.
Will be interesting to see how this property evolves in respect to their anticipated revenue vs site maintenence and/or improvement
Once again ,unbridled capitalism rears it ugly head ! I hope the millionaire class enjoy a world populated by only Richey McRich folks !
Out right greed, capitalism run amuck. No sense of community.
Somewhat myopic point of view. Possibly you have some experience on the waterfront in Sausalito or other longstanding harbors of the California coast? Doubtful, that comment belies otherwise… It is also sad the Armchair Sailor is no longer with us either, as you might have gained insight to some of Sausalito’s history in their books. Raising the cost of access to boating has never been to the benefit of either boating or those who enjoy and participate. Wishing you fair winds and great wealth so you too can enjoy the waterfront now….
On the east coast they have mooring fields and engineered permanent anchorage systems.
every eelgrass is sacred
GREED, GREED AND MORE GREED!
Um, CaptainJohn49. I would not say that $1000 a month is cheap, and frankly $2600 a month is insane.
Still cheaper than a home on land if this marina is full of liveaboards.
Will Anderson I would not argue against every eelgrass being sacred. Do what it takes to mitigate the problem.
So what happens to the property if all slip holders relocate and the marina is empty? Can the new owner then develop the property for other use?
Psssst: lots of berths available at Point Richmond- still a good value.
Replying to myself: Ignore my previous comment with extreme prejudice! Coincidentally, I received my annual Unsecured Property Tax bill from Contra Costa county yesterday. Not only did they appraise my boat’s value more than 20% higher than the most expensive sister ship on the market, but the 1% tax rate is only the beginning. The county then adds no less than 7 additional items (BART, BART 2018 Bond, East Bay Regional Parks bond, Richmond Employees’ Pension Fund, plus 3 additional bond measures, all totaling an additional 0.42% to the bill! Thus, breaking down the tax bill month to month, this added an additional $404 to my monthly cost to have a berth in Brickyard Cove. Truly, Contra Costa county hates boat owners and is inflicting a severe financial punishment, and why I was easily convinced to move the boat to So Cal. This will facilitate avoidance of the tax for at least 15-20 months, and allow me to enjoy a warmer climate.
The phrase that immediately comes to mind: Predatory Pricing.
Might make good sense, if this is to stay logical rather than emotional, to relate the fees, both old and new, to alternatives around the bay. Also, what does the new owner have to say about his business strategy, such as it is. What is the end game here?
I hope they get a negative return on investment forever.
This purchase of marina properties by investment companies is increasing at a phenomenal rate. What is their payback? I can’t imaging that they see this as a viable path. My guess is that the plan is to sell these properties to developers for condos. They will force out as many boats as possible before selling to developers to make the property as attractive as possible.
We lived in the best yacht harbor in Sausalito-indeed, the entire Bay Area- 1986-2002 aboard our 55′ Trumpy. We were young and the slip rent was very reasonable with no liveaboard or parking fees. Marina owner was a local legend. We were out with friends cruising the bay in that fine boat every weekend. There were fun places nearby to eat and drink all over town. Interesting neighbors in the marina community. There were several good boat yards then and you could DIY. And the Cafe Trieste was right at the head of our dock! Unique yachts filled the harbor with historic and colorful histories. What a golden era to live in Sausalito! I think most all of this is now gone…..replaced by an entirely different scene.
Marinas in pricey urban areas are treated like apartment rentals. Probably makes some sense because many (most) larger boats in those marinas now primarily serve as floating condos or pied de terres…seldom if ever getting underway.