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March 9, 2010 Portlandbiz

Businessman renews pitch for floating marina

Rendering/Courtesy Ocean Marine LLC A proposed $3 million floating marina near the Ocean Gateway terminal would hold up to 168 boats, including some luxury yachts

Alan Graves still sees opportunity when he surveys Portland harbor just east of the Ocean Gateway International Marine Terminal. His company, Ocean Marine LLC of Portland, has repeatedly approached the city and sought permission to privately develop a $3 million floating marina that would accommodate luxury yachts and other recreation boaters.

The 36,000-square-foot marina would have up to 168 slips that could accommodate 60- to 100-foot luxury yachts, attracting boaters looking for a weigh station as they pass by the area or those looking to forgo the hotel room as they visit the greater Portland area. As many as 73 companies in Portland alone would benefit from the proposed marina, which would generate $20 million a year in revenue for the city and the state, according to Graves.

The proposed marina would be located just east of where the city hopes to build a second, $8 million mega berth for the $20.5 million Ocean Gateway facility. The recent loss of The CAT high-speed ferry service to Nova Scotia and the federal government's decision not to give the city stimulus funds for the berth may give his project new life, he says.

But city officials are still not receptive to Graves' project.

In a letter dated Feb. 4, Portland City Manager Joe Gray informed Graves that neither the administration nor the city council is interested in pursuing a floating marina project in the eastern waterfront district at this time.

"At some unknown point in time, the city may issue an RFP for an economic development proposal that involves the city's upland real estate and adjacent properties. We will let you know when and if an RFP issues so that you can partner with any proposer who may want to include a marina within the context of their proposal," Gray wrote.

Nicole Clegg, a city spokeswoman, says even though Graves submitted his plans to the planning department, the city is not obligated to go through a planning process because Graves does not own the property in question. She says the city owns it and has the right to refuse any proposal for future development.

But Graves remains undeterred from his quest to bring this project to Portland. He has two partners, Sebago Technics of Westbrook and attorney Randy Hitchcock of Salisbury, Mass., who have raised the money needed to build the project. Kleinschmidt, a float design consultant in Pittsfield, is also involved with the project. "I've got a ready-made engineering project," says Graves.

Despite the recession, Graves maintains high-end recreational boaters' demand for such marinas in destination communities like Portland are strong. "They're thousands of them." Graves says marinas located in Camden, Rockport, Rockland and Boothbay Harbor are full year-round.

Portland is one of the few coastal communities south of Bar Harbor that has the capacity for such a project, as well as the amenities like restaurants and shops that would lure boaters, Graves says. The marina's lower mooring fees compared with Massachusetts and southern Maine locations like Kennebunkport would help him attract yachters. And for boaters looking to moor their vessels year-round, Graves would also provide fractional ownership -- similar to a timeshare where people own a piece of a given boat and reserve it for a few weeks at a time.

Jan Beitzer, executive director of the Portland Downtown District, says she was not that familiar with Graves' proposal, but says she always favor any project that will benefit downtown businesses. "Any new business is good," says Beitzer. The downtown district also invited Graves to make a 10-minute presentation on March 11.

But Steve DiMillo, whose family owns DeMillo's Floating Restaurant and DiMillo's Marina on Long Wharf, says he's "not a fan of the project."

His family's marina has 130 slips and caters to some luxury yachts, including a 280-foot yacht that is scheduled to arrive in April. He says he is skeptical that Graves could attract enough mega yachts to Portland to make the business viable. He says the proposed location also has rough waves that might not work well for floating breakwaters.

DiMillo says Portland already has seven marinas that have available docking space and he does not think the city of Portland should permit another marina on city-owned property.

But attorney Chris O'Neil, who represents the Portland Regional Chamber of Commerce, says the proposal should pique the city's interest, especially given the recent setbacks at the Ocean Gateway terminal.

"We say, let's hear the guy out," says O'Neil, also a lawyer at Drummond Woodsum.

Since Graves wants to fund his project with private money, the project will not interfere with the city's plan to build the second mega berth at Ocean Gateway, according to O'Neil, and Graves could create a high-end marina that could deliver some real economic benefit to downtown merchants, restaurants and hotels.

O'Neil says he can understand why the city might want to put Graves on hold until they exhaust all of their options to pursue federal funding for the Ocean Gateway terminal mega berth. But he doesn't believe the city should just refuse to look at his project. He says Graves needs to lobby more to city councilors because they, not the administration, are the policy makers.

"I advised Alan [Graves] that he has not turned over all of his stones," says O'Neil.

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