June 2—TRAVERSE CITY — Earlier this month, a 37-foot dock at Harbor West Marina in Elmwood sold for $130,000, according to a listing on Realtor.com. That’s nearly six times the average cost of a new two-car garage, according to industry estimates.
This posh price for a private slip is a reflection of a much larger challenge: the chronic shortage of boat slips in northern Michigan, especially those that are seasonally rented rather than owned.
The Record-Eagle surveyed the availability of slips in more than a dozen locations, from Petoskey and Charlevoix to Traverse City and Frankfort. The answer was almost always the same: ‘You’ll have to wait. Now enter your name and cross your fingers.’
Boaters in the area can wait up to 10 years for a slip in many locations, depending on location and slip size.
LOCAL EXAMPLES
Consider the “lower harbor” public marina in Elk Rapids, which connects to Lake Michigan. It has 213 slips, the vast majority of which are used for larger powerboats. The waiting list currently has almost 700 people.
“You’ll be lucky if you get one in eight years,” said Lori Smith, who works in the harbor master’s office. “Boat lengths have increased over time, but we have very few slips in the 42- to 45-foot range.”
Clinch Marina in Traverse City is another example. The public marina has 119 berths, of which 71 are seasonal rental contracts. The waiting list for seasonal rental certificates is “over a decade,” said Harbormaster Shane Dilloway.
“It can be a bit of a ‘sticker shock’ for new people coming to the area and wanting to reserve a slip. Some boaters have been on the list for a long time.”
Another 48 slips at Clinch are reserved for transient boats, a set-aside required by the Michigan Department of Natural Resources for certain grant-supported marinas. At such marinas, boaters can stay for a maximum of 7 to 14 nights before having to leave the marina for a minimum of 48 hours.
East Bay Harbor Marina in Acme Township currently has a waiting list of about 150. Slip turnover is relatively rare and is only four or five this year, officials said.
The three major marinas in Elmwood Township – CenterPointe, Harbor West and Elmwood Township Marina – are reporting similar problems with wait lists up to 270 names long.
GEOGRAPHIC CHALLENGES
“There is definitely a mooring shortage in northern Michigan, and part of that is due to our geography,” said Clem Thompson, harbor master of the Elmwood Township Marina. “We don’t have a lot of natural inlets and small harbors like in places like the Chesapeake Bay and parts of New England.
“Building a new marina in our area often means building a large breakwater. That can be very expensive, not to mention all the necessary permits and environmental permits.”
Developers Patrick Johnson and Ron Walters worked with Elmwood Township officials to build a new 64-boat marina at M-22 at 13380 Southwest Bay Shore Drive. A 146-room, three-story hotel was planned for the 27-acre site directly across the street.
Pandemic delays and Johnson’s death ultimately scuttled the project, local officials said, and the property is now back on the market.
“If those slips were built, they would be demolished almost immediately,” said Sam Bender of the nearby Grand Traverse Yacht Club. “We’re seeing the same slip shortages in places like Frankfort and Boyne City. It’s definitely a problem.”
THE BROADER IMPACT
The problem has a broad impact on the entire boating economy, and not just on boat owners. Companies that sell, maintain and repair boats are also affected.
Jack Hodge is vice president of sales for Irish Boat Shop. Founded in 1961 in Harbor Springs, the family-owned business now operates in Charlevoix and Traverse City.
“We’re actually at a stage now where people interested in buying bigger boats don’t have a place to put them,” he said. ‘And it’s not just big boats. Unless you own a dock or shore station, you may be out of luck.”
Irish Boat Shop has two marinas with a total of around 300 berths, but these have all been allocated today.
The problem that started a decade ago became much worse during the pandemic, Hodge said.
“I received hundreds of calls from people looking for a mooring for larger boats that they wanted to use as a ‘floating house’.
“I don’t know what the solution is other than a major recession,” he added. “Prices keep rising, but people are still renewing season after season and not giving up on their season tickets. I worry about the younger generation who may be priced out.”
SHIFT TO OTHER AREAS
Jeff Kern, owner of HarborView Yacht Sales in Traverse City, maintains close contact with marinas and docks throughout Michigan. Using those contacts, he helps new boat buyers locate slips in other parts of the state, such as Cheboygan and the Upper Peninsula.
“There are certainly more boaters in the state now, but the number of slips has not been kept up,” Kern said. “That’s why we’re moving boaters to other markets in the state. Some of those owners hope to move their boats to the Traverse City area as slips become available.”
Seasonal moorings – temporary buoys with mooring lines and/or clips – are sometimes mentioned as a solution to the slip shortage. Such moorings can be seen today in West Bay and in the Northport area.
However, these moorings have two major disadvantages: No. 1: They can infringe on the bottom rights of a nearby property owner or boating organization with a breakwater or pier, and No. 2: They can be less than reliable in a major storm. .
“We have a phenomenon in West Bay and Northport called ‘fetch’: large overturning waves (swell) that can be dangerous to moored boats,” Kern said. “Sailboats usually do better in those storms, but motorboats are more difficult to moor safely. It has to be a professional mooring system, and even that would worry me a little.”
AN EXPENSIVE HOBBY
Sailors sometimes say that ‘a boat is a hole in the water into which you pour money’.
In addition to the costs of actually buying a boat, there are several other factors at play in 2024 that could influence affordability. This includes financing costs (higher interest rates), unpredictable fuel prices, rising insurance rates and slip leasing costs.
At Clinch Marina, for example, seasonal lease rates vary depending on slip length, ranging from $2,640 for 24-foot slips to $6,600 for 60-foot vessels.
Water and electricity connections are generally included.
At the Frankfort Municipal Marina, 2024 rental rates range from $2,856 to $4,950. Prices tend to be higher at private marinas.
But money doesn’t matter much if people can’t find available panties – at any price. The aftershock of the slip shortage is that the market value of many used boats in the area, especially used sailboats, is plummeting.
“A used 30-foot sailboat sitting on a cradle inland is very expensive to store and maintain,” said Hodge. “Without a slip assigned to it, that boat is essentially worthless. If you can’t use it, what’s the point of owning it?’
Will the state or federal government help fund the construction of more boat ramps in northern Michigan?
“I wouldn’t count on it,” Hodge said. “If they do that, they’ll have to make all these new slips for transient boaters, not seasonal rentals.”
