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Supply and demand are two of the first things we learn about economics. Supply speaks to the quantity of something available for sale while demand refers to the willingness to purchase it. If the supply exceeds the demand, the market is thrown off balance and costs typically decrease…..except in Dana Point Marina.
It is estimated between 700 to 800 boaters (33%) have vacated Dana Point Marina since the exorbitant slip rate increase in October 2021. In fact, in the DPHP proposed Five-Year plan for slip rate increases they report 2038 current tenants. If you double-check their math the correct number is 1690. This is a loss of 719 boaters from the original 2409 occupied slips. Click here for a copy of the referenced page.
Dana Point Harbor Partners wants you to believe that the demand for slips is so great because a 1/15/24 waitlist shows 2251 people on it. How many of us know people who are on more than one size waitlist in the marina? How many of us know people who are on waitlists in multiple marinas? How many people on the current waitlist would accept a slip if offered one by the Marina office? If there is such demand, why are there so many empty slips? Click here for a current view of the marina.
Speaking of the waitlist, wouldn’t it be prudent for the County to audit it as part of the review process of the methodology used to justify slip rate increases? Shouldn’t the County also demand it be updated at least quarterly? Are decisions being based on inflated numbers?
The 12/31/2022 audited financial statement for DPHP shows $21,584,314 in gross receipts for boat slips. Click here for a copy. The 12/31/2023 audited financial statement for DPHP shows $20,059,143 in gross receipts for boat slips, a decline of $1,525,171 in boat slip revenue. Click here for a copy. Numbers don’t lie. Demand is down, yet DPHP uses an inflated waitlist to justify slip rate increases. In a quote from an article in the May 10th DP Times, Joe Ueberroth stated “We’ve been funding the development ourselves as partners, but as we move forward, specifically with the land-side, we need to enhance our cash flow to be able to get funding from lenders”. If DPHP continues to drive out boaters because of exorbitant slip rate increases who will pay for the funding of the marina?
As a reminder, Dana Point Harbor is a public Tidelands marina governed by the Public Trust Doctrine. To quote the CA State Lands Commission, “The hallmark of the Public Trust Doctrine is that trust lands belong to the public and are to be used to promote publicly beneficial uses that connect the public to the water.” We ask, should standard supply and demand even be a factor in fair and reasonable pricing for Tidelands property?
Anecdotally at least, virtually all the boater friends we have talked to who have left the harbor in the last three years have done so because of the Marina’s massive slip fee increases. They are giving up their boats or moving to Long Beach, San Pedro or San Diego County because they can’t afford Dana Point slip fees. It is imperative that the DPBA continue to receive your contributions so we can press the County and in the courts for reasonable market pricing.
#dpboaters
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