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stay in business. Boaters can continue to access Cabrillo Boat Shop at 1500 Pier C Street in Long Beach; the boat- yard has been there since 1998. “Tesoro Oil Co. took the lease away
Cabrillo Boat Shop will continue to haul boats out of the water as the boatyard was allowed to continue operating its business in the Port of Long Beach.
Donald Holland of Cabrillo Boat
Shop said Curtin Maritime, the new owner of the water rights in front of the boatyard, agreed to let the company
from my landlord and gave it to a marine construction company. Since [then] I have been informed that I will be allowed to access the water and remain in business,” Holland said. Holland said he was prepared to
move and fi nd a way to keep his boat- yard in business somewhere else. He had been forced to move before and managed to fi nd a place to operate at Pier C Street. Cabrillo Boat Shop needed to main- tain its waterside lease in order to lift
boats from the water. Saving Cabrillo Boat Shop means
recreational boaters in Long Beach, Wilmington and San Pedro will have access to a 30-ton Travelift. Holland told The Log in December 2015 had his boatyard been shut down then recreational boaters would have only had access to a yard with a 6-ton lift- ing capacity. Boater requiring a larger Travelift could have faced the prospects of navigating 3 hours each way. An estimated 400 boaters patron-
ize the haulout venue annually to have their respective vessels lifted for bottom paints and other boatyard services. “Many people believe that we have
The Log • Apr. 22 - May 5, 2016 • 15
closed our doors,” Holland said in an email of how events have transpired since The Log’s coverage of his busi- ness’s potential closure. Holland noted a representative with
Curtin Maritime worked with him to ensure the shop remained in busi- ness because their fathers were friends many years ago. “We are in business and will remain in business in the foreseeable future,” he added. Information about Cabrillo Boat
Shop can be found online at cabrillo-
boatshop.net, by calling 562-951-5768, or via email at cabrilloboatshoplb@
gmail.com.
to develop a solution to this issue using the San Diego model,” port staff stated. The Port of San Diego experienced
struggles in the 1990s which led to port lowering percentage rents to allow marina operators to gradually make improvements. Demand for slips soon caught up with improvements, accord- ing to Port of L.A. staff. “A similar positive effect may occur
for the Wilmington marinas should the Harbor Department initiate simi- lar measures,” said Port of L.A. staff. “Without action to remedy the current situation it is anticipated that the mari- nas will continue to deteriorate and the revenue will continue to decline.” Marina operators could receive a
credit of up to 25 percent of its per- centage rent. The windfall for marina operators could be $250,000 per year, allowing them to improve their respec- tive boating venues during the next few years. “Funding of these improvements is intended to stem the tide of deteriora- tion and allow the Harbor Department time to evaluate the long-term devel- opment plan for the East Basin/ Cerritos Channel,” according to Port of L.A. staff. The board’s separate approval of an economic performance methodology as the standard to collect annual rents from marinas allows the port to keep up with other harbors and fairly assess how it collects its compensation. “The current minimum fi xed annual compensation [used, most recently, from 2010 to 2015] was based on a modifi ed land and water value,” Port of L.A. staff explained. “This method results in disproportionate minimum rent totals for marinas with larger foot- prints even though the water area is the primary economic driver for marinas. “In many of the marinas, the current method effectively made the fi xed rent exceed 20 percent of the gross receipts, stressing marina viability and reducing capital available for maintenance of long-term improvements.” Resetting the minimum annual compensation would result in a poten- tial loss of revenue (roughly $50,000 per year) for the port. Wilmington’s marinas are home to
more than 1,400 slips and about 87 liveaboards.
Parimal M. Rohit photo
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