Downtown marina faces choppy water

With a budget of about $1 million, the city plans to build an additional 65 boat slips on the Tennessee River next to Ross's Landing in the next year.

But not all city officials are sure this is the time or place to spend that money.

"Is it the highest priority this city needs to focus on?" Councilwoman Deborah Scott asked Thursday. "I don't think so."

The money was in the 2010-11 capital budget that council members approved last week, which includes a $16.2 million bond issue. The slips will be built next to Ross's Landing and serve the city and the new $80 million Cameron Harbor development. City records show 37 slips will serve Cameron Harbor, which will include a condominium complex and mixed-use spaces, and the rest will handle Chattanooga boat traffic.

Buck Schimpf, developer of Cameron Harbor, said he worked hand in hand with the city. He said he remembered reading in the newspaper a few years ago how there was a need for boat slips in the downtown area and that the city could not provide enough for events such as the Riverbend Festival.

Schimpf owns the shoreline where the slips will be built and said he's obtaining the required permit from TVA that will allow the city to do the expansion.

City records estimate the slips could earn about $121,380 a year for city coffers. Schimpf said he thinks it could be more.

"I firmly believe that's conservative in numbers," he said.

He said other marinas in the area charge more than the city's estimated lease price. And having those boats tied up could mean additional sales tax revenue as well, he said.

"The tangible is there will be revenue for the city," he said. "The intangible is the excitement and energy created."

Larry Zehnder, the city's Parks and Recreation director, said construction should start within the year on dredging the space and building the slips.

He said the estimated revenue should pay off the loan within seven to eight years.

"At that point, it will become a plus," he said.

He also said the slips are projected to presell before the marina addition opens.

Scott didn't dispute that the deal could earn money for the city, but she said the city needs to focus on needed infrastructure rather than using borrowed bond money for this project.

Councilwoman Pam Ladd said Thursday she had no objections to the marina, saying the slips should stay rented and generate revenue.

Interest rates also are low on bonds and builders are looking for work, she said. There is no better time for trying to build money-generating slips, she said.

"Right now is the time," she said.

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